The document discusses implementing a Clean Development Mechanism (CDM) project at a natural gas combined heat and power (CHP) plant in Serbia. It analyzes the energy requirements of an existing soybean processing plant and proposes expanding with a new CHP plant. Methodology AM0014 is selected as applicable for the project. Applying this methodology, the CDM project is estimated to achieve annual CO2 emissions savings of 51,034 tons, worth approximately 360,000 euros. However, a techno-economic study finds the CHP plant would currently be unprofitable due to electricity prices in Serbia being too low.

1. EEESD’08 The 4th IASME/WSEAS International Conference Algarve, Portugal, June 11-13, 2008 IMPLEMENTATION OF CLEAN DEVELOPMENT MECHANISM (CDM) METHODOLOGIES IN NATURAL GAS CHP PLANT

5. Analysis of energy requirements in “Sojaprotein” Annual energy consumption and energy costs in Sojaprotein. Basic units Conversion factor Energy consumption Energy costs [GJ] [€] Natural gas 10412213 [m 3 ] 0,0342 355995,72 2 825 669,2 Electricity 24867840 [kWh] 3.6 x 10 –3 89524,22 856 495,8 Total: 445 519,9 3 682 165

8. Cogeneration plant selection Nominal Operation Characteristics of Cogeneration Plant . Load [%] 100 100 100 100 100 Inlet Air Temperature [°C] 11 -20 0 10 20 Power [MW] 10.5 5 11. 90 11.1 8 10.6 1 9.9 4 Efficiency Factor, Electric [%] 31.9 5 32.4 8 32.3 1 31.9 6 31.5 0 Combustion Products Quantity [kg/s] 41.80 46. 20 43.6 7 41.9 8 40.0 6 Outlet Combustion Products Temp. [°C] 487 459 477 486 494

9. Cogeneration plant selection

10. Techno – economic study Costs = investment + maintenance + additional quantity of gas for cogeneration plant Income = generated electricity UNPROFITABLE (annual profit < annual costs) Actual electricity price for industry, being significantly lower from electricity price in neighborhood countries! ( Hungary 0,1012 e/kWh, Romani a 0,0894 e/kWh, Bu lgaria 0,0588 e/kWh the price include all taxes 2007.) Investment Cost O&M Cost Gas price Electricity price 5000000 [e] 15 [e/h] 0,29 [e/m 3 ] 0,0366 [e/kWh]

12. Selection of CDM methodology Applicability of the mentioned methodologies is influenced directly by the conditions defined within each methodology. Based on the analysis carried out on the applicability of methodologies, AM0014 was selected. Methodology AM0014 enable its application for combined heat and power generation, using natural gas as a fuel, with certain limitations.

13. Application of CDM methodology Baseline Scenario – Power and Heat Energy Supply Through applied methodology AM0014 for the selected CHP plant in Sojaprotein, the achieved savings could be 51,034.5 eq/year or approx. 360,000 €/year , using equivalent emission value for 1t CO 2 eq = 7 euro . Heat Energy Supply Power Supply Existing facility From existing boiler house using natural gas as a fuels Grid-connected New SPI Plant Construction of a new boiler house, using natural gas as a fuel Grid-connected

14. Application of CDM methodology ABEC BF - Annual baseline scenario energy consumption [GJ/year] 455,600 CAHO - Annual heat energy production in a combined plant [GJ/year] 410,040 e b - Coefficient of efficiency for boilers in industrial facilities (proposed value for calculation) [-] 0.9 AOH - Annual operation hours of facility [h/year] 6700 NoWD - Number of working days [w.d./year] 335 Baseline scenario TBE th - Total equivalent emission of CO 2, produced by natural gas combustion in baseline scenario t CO 2 /year 103,591 Project scenario TPE th Total equivalent emission of CO 2, produced by natural gas combustion in project scenario t CO 2 /year 52 556,5 Achieved savings through CDM project application: t CO 2 /year 51 034,5

15. Conclusion Based on the results obtained from techno-economic study, it could be concluded that the construction of selected cogeneration plant is unprofitable one in this moment, due to an actual power cost . Referring the selection of CDM methodology for combined power and heat energy, the analysis of approved methodologies was done . O nly the technical analysis of CDM project application is shown in this paper, without any financial analysis, as well as any analysis of the project “supplementary“ .