The proposed project, Wulashan Line 2 N2O Abatement Project (hereafter, the Project), is being developed by EcoSecurities Group Plc and the Inner Mongolia Wulashan Chemical Fertilizer Co. Ltd (hereafter referred to as the Project Developer). The purpose of the Project is to reduce the current levels of N2O emissions at the Project Developer’s fertilizer plant during the production of nitric acid (HNO3).

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 2-19 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, through the 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 will be transferred to the Host Country, reflected in the installation of a N2O abatement technology, which will include a novel N2O abatement catalyst and monitoring system/equipment. Furthermore, the local plant staff will be trained to operate this new • The awareness of local residents regarding environmental protection will enhance through a series of training sessions to plant staff, whose family members are local residents; • The applied monitoring system for N2O emissions will follow the European Standard EN 14181, which is not only new for the Project Developer and for the Host Country, but also novel in Europe. By following the quality assurance of the automated measuring systems, the local CDM – Executive Board

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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 existing production unit at the Project Developer’s nitric acid plant was designed by the Inner Mongolia Chemical Engineering Design Institute. It is a type of Medium Pressure Unit and it started operations on 31st August 2005. In December 2006 a SCR unit was installed as a result of the risen environmental awareness of the plant. Some information about this plant is shown in Table 1.

Table 1. Information about the production unit at the nitric acid plant

Design capacity                            104,000 tHNO3(100%) per year Reactor pressure                           Medium pressure

Number of burners                          1

Historical data collected from previous 07/09/2005-21/11/2006* historical campaigns* (These were the only available campaigns prior to the completion of the PDD for the GSP. Therefore data from that period were collected and analysed; however, it can be subject to change according to the recommendation of the verifying DOE, who will verify the determination of the operation ranges. )

The training of the plant staff has been undertaken in order to ensure the proposed project is in compliance with the methodology AM0034 VER 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.