CDM-SSC-PDD Profertil 04.04.2012

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PROJECT DESIGN DOCUMENT FORM


FOR SMALL-SCALE CDM PROJECT ACTIVITIES (F-CDM-SSC-PDD)
Version 04.0

PROJECT DESIGN DOCUMENT (PDD)

Title of the project activity

Version number of the PDD


Completion date of the PDD
Project participant(s)
Host Party(ies)
Sectoral scope(s) and selected methodology(ies)
Estimated amount of annual average GHG
emission reductions

Urea Yield Boosting in Profrtil SA


Conventional Ammonia-Urea production
Facility
01.0.0
01/04/2012
Profrtil S.A.
Argentina
A new small scale methodology type III, is
being proposed to this project activity.
32 216 tCO2/y

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SECTION A. Description of project activity


A.1. Purpose and general description of project activity
>>
The proposed CDM project activity involves the implementation of boosting yields of conventional
ammonia-urea production in Profrtil SA facility, using an external source of CO2 to react with the
surplus ammonia produced as a result of the conventional natural gas reforming process in the ammonia
production plant.
In Profrtil SA conventional ammonia-urea production facility, ammonia (NH3) and CO2 are produced as
a result of the natural gas reforming process and both are used later on at the urea production process. In
the natural gas reforming process, the natural gas reacts with water and air (mainly O2 and N2), to produce
NH3 and CO2. As mentioned before, these two products are used as feedstock at the urea production plant,
but in this chemical reaction a small NH3 surplus is produced. This NH3 surplus can be sold as a byproduct, or can be combined with extra CO2 to produce more urea.
Moreover, the extra CO2 mentioned before can be obtained from an external source, or by reforming an
extra amount of natural gas. If the second option is chosen, the reforming of this extra amount of natural
gas will also require extra thermal energy and another ammonia surplus will be generated. So, instead of
reforming an extra amount of natural gas to use the ammonia surplus to produce urea, the objective of the
project activity is to use an external source of CO2 from another facility - located near Profrtil- that was
emitted to the atmosphere prior to the implementation of this Project activity.
Emission reduction of the Project is based on the use of an external source of CO2 (CO2no-captive) in the
yield boosting process that replaces natural CO2 reservoir CO2 (from natural gas); and on the minor
production of thermal energy that would have been needed in absence of the project activity, in order to
obtain the same amount of CO2no-captive (external sourced) through an additional natural gas reforming
process.
The scenario existing prior to the implementation of the project activity is the Profrtil SA conventional
ammonia-urea production facility, without urea yield boosting.
The baseline scenario is the production of urea implementing conventional technology comprised by the
production of NH3 and CO2 through natural gas reforming process. In this scenario, only gas natural is
used as feedstock to obtained CO2 (from reforming process).
The estimate of annual average and total GHG emissions reduction for the crediting period of 10 years
fixed choose in this Project activity, are 32 216 tCO2/y and 322 160 tCO2 respectively.
The project will contribute to an overall sustainable development avoiding the use of fossil fuels for urea
production from the ammonia surplus produced at the reforming process.
The implementation of the activity is furthermore expected to have several other positive impacts that
support a sustainable development. These impacts are listed below here under three dimensions:
Sustainable Development Benefits of the Project
The proposed project activity is first of all in line with the policies and strategies promoted by the
Argentinas Government within the field of environment and energy efficiency and energy saving. The
project is also expected to support the development in several other dimensions, which are further
elaborated on in the following sections.

Environmental Dimension
The proposed project will result in a carbon dioxide emissions reduction due to the use of external
sourced CO2 that will avoid additional natural gas consumption in the reforming process, in which natural

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gas is used as a feedstock and as a thermal energy source. Therefore the implementation of the project
activity will conserve non-renewable natural resources (natural gas), and will reduce the impact in air
quality produced by the combustion of fossil fuels such as natural gas.
Socio Economic Dimension
The avoidance of additional natural gas consumption given by the implementation of the project activity
will contribute its scale to reduce natural gas eventual imports, facilitating foreign exchange savings for
the country and reduces the risks of fluctuating natural gas prices (energy security). The project will also
contribute to reduce the growing natural gas demand, in a context of sustained declination of natural gas
production at a national level.
Based on the implementation of the project activity under CDM, and the consequent additional income
generated by selling the CERs in the carbon market, Profrtil S.A. will develop a fund orientated to
contribute to the sustainable development of the local community.
This CERs fund will be coordinated with the actions implemented in our Corporate Social Responsibility
strategy, based mainly in 5 lines of action: health, culture, sports, quality of life, health and
communication with the community1.
A.2. Location of project activity
A.2.1. Host Party(ies)
>>Argentina

A.2.2. Region/State/Province etc.


>>Buenos Aires Province

A.2.3. City/Town/Community etc.


>> Ingeniero White City, Bahia Blanca Department

A.2.4. Physical/ Geographical location


>> Profertil S.A. production facility is located at the area called Cangrejales in Ingeniero White
Harbour, 10 km. away from Bahia Blanca City. At the same time, as it is shown in the following maps,
Bahia Blanca City is located approx. 650 km. to the south west of Buenos Aires City

Please, for more information about our CSR actions see our web http://www.profertil.com.ar/responsabilidad.html
Our 2010 CSR Report is available at http://www.mgconsultora.com.ar/RSEProfertil/

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Map 1 Geographical location

A.3. Technologies and/or measures


>>Overview
Urea accounts for almost 50 per cent of the worlds nitrogen fertiliser production. It is produced by
combination of ammonia and carbon dioxide at high pressure and temperature.
CO2 is sourced from the process of reforming natural gas (or a similar feedstock) to produce ammonia. In
this regard, urea production can predominantly be considered a captive use of CO 2 (i.e. CO2 is produced
and then used within the same industrial process).
process
However, when natural gas is the feedstock for urea production, there is typically a small surplus of
ammonia (approximately 5 to 10 per cent), which could be reacted with externally supplied (non
(non-captive)
CO2 to produce additional urea.
The proposed CDM project activity involves the implementation of boosting yields of conventional
ammonia-urea
urea production in Profrtil SA facility, using an external source of CO 2 to react with the
surplus ammonia produced as a result of the conventional natural gas reforming
ref orming process in the ammonia
production plant.
Emission reduction of the Project is based on the use of an external source of CO2 (CO2no-captive) in the
yield boosting process that replaces natural CO2 reservoir (from natural gas); and on the minor prod
production
of thermal energy that would have been needed in absence of the project activity, in order to obtain the
same amount of CO2no-captive (external sourced) through an additional natural gas reforming process.

Baseline scenario technology

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The baseline
seline scenario is the production of urea
u implementing conventional technology comprised by the
production of NH3 and CO2 through natural gas reforming process. In this scenario, only gas natural is
used as feedstock to obtained CO2 (from reforming process).
The scenario existing prior to the implementation of the project activity is the Profrtil SA conventional
ammonia-urea
urea production facility, without urea yield boosting.
Profrtil SA is a fertilizer production facility which produces
produces solid granulated urea through the
conventional method which is the reforming of natural gas to produce NH 3 and CO2 which are then
combined to produce Urea.
The conventional method to produce urea is identified as baseline scenario for this Project activity, to
obtain the same quantity of CO2 that is captured from an external source to produce more urea.
Urea production2
Urea is produced by combining ammonia and carbon dioxide at high pressure and high temperature to
form ammonium carbamate, which is then dehydrated by heat to form urea and water, according to the
following reaction:
2NH3 + CO2

NH2COONH4

CO(NH2) 2 + H2O

Diagram 1 Urea fertiliser production overview3

Urea yield boosting


The project activity consists of implementing boosting yields of conventional fertilizer production
facilities, so that an external source of CO2 from an external source (Mega facility) reacts with the small
surplus of NH3 produced in the natural gas reforming process.
Profrtil
rtil SA is a conventional integrated ammonia-urea
ammonia urea production facility which is located next to Mega
production facility, which is a natural gas fractionators.

United Nations Environment Programme 1996, Technical Report No. 26: The Fertilizer Industrys
Manufacturing Processes and Environmental Issues, United Nations Environment Programme, Paris,
France.

Global CCS Institute (March 2011) "Accelerating the uptake of CCS: Industrial use of captured carbon dioxide"

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Profrtil SA carries out the natural gas reforming process to obtain CO2 (CO2 captive) and NH3 (ammonia)
at the ammonia production plant, for the urea production. However, after the implementation of this
project activity Profrtil SA will capture from Mega production facility an external sourced CO2 (CO2nocaptive), that was emitted to the atmosphere prior to the implementation of the Project activity.
Mega is located at 500 meters of Profrtil S.A. The CO2 is transported through pipeline of 800 meters and
a diameter of 16. There is not any additional energy required for CO2 transport from Mega to Profrtil,
because the CO2 is under pressure and is transported through the pipeline.
When natural gas is used as the feedstock for urea production, surplus ammonia is usually produced. A
typical surplus of ammonia may be 5 per cent to 10 per cent of total ammonia production.
If additional CO2 can be obtained, this can be compressed and combined with the surplus ammonia to
produce additional urea.
In Profrtil SA conventional ammonia-urea production facility, ammonia (NH3) and CO2 are produced as
a result of the natural gas reforming process and both are used later on at the urea production process.
In the natural gas reforming process, the natural gas reacts with water and air (mainly O2 and N2), to
produce NH3 and CO2. As mentioned before, these two products are used as feedstock at the urea
production plant, but in this chemical reaction a small NH3 surplus is produced. This NH3 surplus can be
sold as a by-product, or can be combined with extra CO2 to produce more urea.
Moreover, the extra CO2 mentioned before can be obtained from an external source, or by reforming an
extra amount of natural gas. If the second option is chosen, the reforming of this extra amount of natural
gas will also require extra thermal energy and another ammonia surplus will be generated. So, instead of
reforming an extra amount of natural gas to use the ammonia surplus to produce urea, the objective of the
project activity is to use an external source of CO2 from another facility - located near Profrtil- that was
emitted to the atmosphere prior to the implementation of this Project activity.
The following diagrams show the baseline and project scenario:

Profertil Facility Baseline Situation


Simplified Ammonia Production Process
Natural Gas
(feedstock)
Reforming

CO2
NH3

Natural Gas for thermal


energy input

NH3
Surplpus

Imput for Urea


production

Simplified Urea Production Process


CO2
NH3

Urea Reactor

Urea

Diagram 2 Profertil Facitility Baseline situation

Extra
CO2

NH3
More
Ammonia
Surplus

Additional Natural
Gas (feedstock)
Reforming
Natural Gas for thermal
energy input

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Profertil Facility Project Situation


Simplified Ammonia Production Process
Natural Gas
(feedstock)
Reforming

CO2
NH3

NH3
Surplpus

External
sourced CO2

MEGA Facility

Natural Gas for thermal


energy input

Imput for Urea


production

Simplified Urea Production Process


CO2
NH3

Urea Reactor

Urea

Diagram 3 Profertil Facility Project Situation

A.4. Parties and project participants


Party involved
(host) indicates a host Party
Argentina (host)

Private and/or public


entity(ies) project participants
(as applicable)
Profrtil SA

Indicate if the Party involved


wishes to be considered as
project participant (Yes/No)
No

A.5. Public funding of project activity


>> There is no public funding from parties included in Annex I involved in this proposed project activity.
.

A.6. Debundling for project activity


>> The Guidelines on assessment of de-bundling for SSC project activities specified at EB54 Annex13
(Ver03.0)4 define debundling project activities as the fragmentation of a large project activity into smaller
parts. According to the mentioned document, this project activity is not a debundled component, since
there is no other CDM project activity:
-

By the same project participants;


In the same project category and with the same technology,
Registered within the previous 2 years; and
Whose project boundary is within 1 km of the project boundary of the proposed small-scale
activity at the closest point

http://cdm.unfccc.int/Reference/Guidclarif/ssc/methSSC_guid17.pdf

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This is the first and single CDM project in the Profertil Plant. The proposed project activity is not a
debundled component of a large scale project activity. Profertil is not planning to implement another
project activity in the same site of this project activity, with the same technology and with the same
project category.

SECTION B. Application of selected approved baseline and monitoring methodology


B.1. Reference of methodology
>>
In the absence of an approved methodology, a new baseline methodology has been proposed; this PDD is
completed in support of that new small-scale methodology.
Title: Urea yield boosting of conventional ammonia-urea production facilities
Project category: Type III Others project activities

B.2. Project activity eligibility


>> The project activity conforms to the proposed type III new small-scale methodology Urea yield
boosting of conventional ammonia-urea production facilities since:
1.

The integrated ammonia-urea manufacturing plant is an existing complex with a


historical operation of at least three years prior to the implementation of the project
activity;

Profrtil ammonia-urea manufacturing plant exists since 2001.


2.

The source of thermal energy for processing the feedstock is the combustion of natural
gas in the steam reformer, both in the baseline scenario as well as in the project activity.

Profrtil SA obtains the thermal energy needed in the reforming process from the combustion of natural
gas, both in the baseline as well as the project activity scenario.
3.

Prior to the implementation of the project activity, no urea yield boosting has been
implemented in the integrated ammonia-urea manufacturing plant

Profrtil SA ammonia-urea integrated manufacturing plant prior to the implementation of the project
activity uses conventional technology.
4.

Capture and use of CO2no-captive from an external source does not involve any additional
increase of energy consumption (electricity and/or thermal)

There isnt any additional increase of energy consumption (electricity and/or thermal) compared to
baseline scenario due to the project activity. Emissions from fuel used in boilers and electricity
requirement for urea production through yield boosting are not included because are expected to be the
same or lower as compared to the project scenario.
Mega is located at 500 meters of Profrtil S.A. The CO2 is transported through pipeline of 800 meters and
a diameter of 16. There is not any additional energy required for CO2 transport from Mega to Profrtil,
because the CO2 is under pressure and is transported through the pipeline.
5.

The contracts between the producer of the external source of CO2no-captive and the
producer of urea in the integrated ammonia-urea facility specifying that only the project
proponent can claim CERs.

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Profertil and Mega have signed a letter of agreement that stated that both companies will procure the
CERs emission (and the CDM project cycle procedures) together. Then Mega S.A. authorized Profertil to
proceed on behalf of both organizations to manage all the necessary documentation to get the
corresponding approvals and to register the proposed project as a CDM project activity.
6.

The external CO2no-captive source was emitted to the atmosphere prior to the
implementation of the Project activity.

Before the implementation of the project activity Mega S.A. emits the CO2 that would be used by Profrtil
SA after the implementation of the project activity to the atmosphere.

7.

Measurement are limited to those that in emissions reductions of less than or equal to 60
ktCO2 equivalent annually

Emission reductions that occur as a result of the implementation of the project activity are 32 629 tCO 2/y,
which is within the eligibility limit of maximum 60 ktCO2 /y for type III small scale project activity.

B.3. Project boundary


>>
The spatial extent of the project boundary is the site of the project activity where urea yield boosting takes
place and the pipeline used to capture and transport the CO2no-captive from the external source.
This includes the facilities involved in Natural Gas Reforming process detailed in Figure 3.
Emissions from fuel used in boilers and electricity requirement for urea production are not included
because are expected to be the same or lower as compared to the project scenario.
The project boundary does not include the facility where is generated the external source of CO2no-captive
that was emitted to the atmosphere prior to the implementation of the Project activity.
The GHG included in or excluded from project boundary are shown in Table 1.
Table 1 Summary of gases and sources included in the project boundary, and

justification/explanation where gases and sources are not included.

Baseline Scenario

Source

Processing
of feeedstock
(natural gas)

Gas

CO2

Included

Yes

CH4

No

N2O

No

Justification/Explanation
Main emission source. CO2 is produced in the reforming
of the natural gas and is partially recovered for use in the
production of urea.
Negligible fugitive CH4 emission may occur during the
processing of the feed. These emissions (if any) would be
essentially the same as in project activity. Therefore they
are excluded for simplification.
Not Applicable

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Natural gas
reforming
(thermal
energy)

Page 10

CO2

Yes

CH4

No

N2O

No

Excluded for simplification, this is conservative

Yes

CH4

No

Negligible fugitive CH4 emission may occur during the


processing of the feed. The project activity will result in
lower thermal energy required. These emissions (if any)
would be essentially the same as in project activity.
Therefore they are excluded for simplification.

N2O

No

Not Applicable

Yes

Main emission source (flue gas) due to the combustion of


natural gas to provide thermal energy for feed treatment
(natural gas reforming process). The project activity will
result in lower thermal energy required.

No

These emissions are expected to be the same or lower as


compared to the project scenario. Excluded for
simplification and because this is conservative

No

These emissions are expected to be the same or lower as


compared to the project scenario. Excluded for
simplification and because this is conservative

CO2

Project Scenario

Excluded for simplification, this is conservative

Main emission source. CO2 is produced in the reforming


of the natural gas and is partially recovered for use in the
production of urea.

Processing
of feeedstock
(natural gas)

Natural gas
reforming
(thermal
energy)

Main emission source (flue gas) due to the combustion of


natural gas to provide thermal energy for feed treatment
(natural gas reforming process).

CO2

CH4

N2O

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Diagram 4 Project Boundary

Page 11

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Diagram 5 Natural gas reforming

B.4. Establishment and description of baseline scenario


>>The
The Baseline scenario is the production of urea implementing traditional technology comprised by the
production of NH3 and CO2 through natural gas reforming process.
In this scenario, the feedstock (natural gas) is reformed and combined
combin ed with air, steam and thermal energy
(obtained by the combustion of natural gas), resulting in CO2 and NH3 that are used as inputs for the urea
production process.
However, urea production plants using natural gas as a feedstock tend to produce a small ssurplus of
ammonia,, so in order to generate some extra CO2, more natural gas would need to be reformed, with the
consequent thermal energy consumption increase.
This means that, in the absence of the current CDM project activity, the installa
installations for the production of
urea would use the baseline conventional technology for the production of extra CO2 with the specific
energy consumption associated to such technology (SECreforming, in GJ/t CO2captive
captive) which would mean an
increase in CO2 emissions,, compared with Project activity scenario.
Profrtil SA produces solid granulated urea through a conventional integrated ammonia
ammonia-urea production
facility where a yield boosting of conventional urea production will be implemented. As a result and
according
ing to the new methodology proposed, the emissions reduction occurs due to:

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a. The use of an external source of CO2 (CO2no-captive) in the yield boosting process that
replaces natural CO2 reservoir CO2 (from natural gas);
Profrtil SA before the implementation of the project activity uses natural gas as a source of CO2 captive
and after the implementation of the project activity Mega S.A. will be the external source of CO2 (CO2nocaptive) for Profrtil SA.
b. The minor production of thermal energy that would have been needed in absence of the
project activity, in order to obtain the same amount of CO2no-captive (external sourced)
through an additional natural gas reforming process.
In absence of the project activity, the same quantity of CO2 that is captured from an external source would
be produced thought the natural gas reforming. This scenario would need to consume more thermal
energy to reform more natural gas in order to obtain more CO2.
In Project scenario this thermal energy would not need to be produced; therefore CO2 emissions will be
reduced

B.5. Demonstration of additionality


>> Paragraph 43 of Decision 17/C.P.7 indicates that A CDM project activity is additional if
anthropogenic emissions of greenhouse gases by sources are reduced below those that would have
occurred in the absence of the registered CDM project activity.
In accordance with this paragraph, this CDM project activity reduces anthropogenic emissions of
greenhouse gases that would not have occurred if it had not been implemented.
The instructions provided in Attachment A to Appendix B of the simplified modalities and procedures for
small-scale CDM project activities have been followed in this section. The barriers faced by the proposed
activity and how they otherwise would have obstructed the implementation of the activity are identified
and elaborated in the following parographs:

Barrier due to prevailing practice: prevailing practice or existing regulatory or policy


requirements would have led to implementation of a technology with higher emissions.
The guidelines stated in the Tool for the demonstration and assessment of additionality and in
Guidelines on Additionality of first-of-its-Kind Project Activities5 were followed to
demonstrated existence of Barriers arising from prevailing practices.
On the following pages there is an explanation detailed that shows that this project activity would
not have been implemented, unless CDM is applied.

Other barriers: The others barriers associated with the deployment of urea yield boosting
technology include:
Volatility in the relative price and demand for urea and ammonia making long
term appraisal difficult.
The high capital costs of CO2 capture infrastructure.

Barrier due to the prevailing practices


Traditional technology is the prevailing practice in the production of urea in the Argentine Republic. As
explained in the preceding sections, if the surplus NH3 is exploited to produce urea without applying the

http://cdm.unfccc.int/Reference/Guidclarif/meth/meth_guid43.pdf

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yield boosting process it would have caused a higher level of emissions of GHG in comparison to the
baseline scenario.
Analysis of the common practice in the production Urea in Argentina
The proposed project activity is not a common practice in Argentina, because this a novelty process
developed by Profertil in this CDM project.
Profrtil SA is the main Urea producer in Argentina. According to the National Institution of Statistics
and Census (INDEC due to its initials in Spanish) the national production of urea during 2010 was 941
549 t 6. Profertil contributes to the national urea production with 3 250 t of granulated urea per day in its
Bahia Blanca production facility, while its nearest competitor Bunge Argentina produces 580 t 7of prilled
urea per day in its fertilizers production facility in Campana.
These two manufacturers use conventional technology in their integrated ammonia-urea production
process. However, the project activity consists of applying yield boosting of conventional urea production
facilities.
Moreover, according to paragraph 47, for measures that are listed in paragraph 6 of Tool for the
demonstration and assessment of additionality there are 4 steps that need to be followed in order to
calculate F, Nall and Ndiff.
Measure of this project activity Urea yield boosting is cover under paragraph 6, as Fuel and feedstock
switch

Step 1: Calculate applicable output range as +/-50% of the design output or capacity of the proposed
project activity.
The output capacity of the proposed project activity is 3.250 t Urea/day, so the applicable output range
would be between 1 625 and 4.875 tUrea/y.
Install Capacity
3 250 t Urea/day

Output range (+/-50%)


1 625 4 875 t Urea/day

Step 2: In the applicable geographical area, identify all plants that deliver the same output or capacity,
within the applicable output range calculated in Step 1, as the proposed project activity and have started
commercial operation before the start date of the project. Note their number Nall. Registered CDM
project activities and projects activities undergoing validation shall not be included in this step;
The applicable geographical area for the assessment corresponds to the host country, Argentina.
As it was previously stated, there is no urea production facilities who deliver the same output or capacity
with the applicable output range calculated in Step 1. This means that Nall is 0
Nall = 0

Step 3: Within plants identified in Step 2, identify those that apply technologies different that the
technology applied in the proposed project activity. Note their number Ndiff.

6
7

http://www.indec.gov.ar/
Profiles of Companies in the Petrochemical Sector . Argentine Petrochemical Institution, October 2011.

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As it was previously detailed, there are no urea producers whose output or capacity equals the applicable
output range calculated in step 1, consequently there are no urea manufacturers who apply technologies
different from the proposed project activity. This means that Ndiff is 0
Ndiff = 0

Step 4: Calculate factor F=1-Ndiff/Nall representing the share of plants using technology similar to the
technology used in the proposed project activity in all plants that deliver the same output or capacity as
the proposed project activity.
According to the guideline, the proposed project activity is a common practice within a sector in the
applicable geographical area if the factor F is greater than 0.2 and Nall-Ndiff is greater than 3.

F= 1-Ndiff/Nall = 1-0/0 = 0
Nall-Ndiff=0 - 0=0

According to the analysis developed for this project activity neither of these conditions is fulfilled. For
this project activity both parameters F and Nall-Ndiff are zero and therefore the project activity is not a
common practice.

Moreover, to demonstrate that this project activity is the First of its Kind in Argentina the Guidelines on
Additionality of first-of-its-Kind Project Activities8 were applied.
I.

Definitions
1. Applicable geographical area: covers the entire host country as a default; if the technology
applied in the project is not country specific, then the applicable geographical area should be
extended to other countries. Project participants may provide justification that the applicable
geographical area is smaller than the host country for technologies that vary considerably from
location to location depending on local conditions.

The geographical region applied to the Project activity is Argentina Republic due to the fact that in
Argentina there are 2 urea production facilities, both located at Buenos Aires province. One of them is
Bunge Argentina in Campana, and the other one is Profrtil SA in Bahia Blanca.
2. Measure (for emission reduction activities) is a broad class of greenhouse gas emission
reduction activities possessing common features. Four types of measures are currently covered
in the framework:
o Fuel and feedstock switch;
o Switch of technology with or without change of energy source (including energy
efficiency improvement);
o Methane destruction;
o Methane formation avoidance.
The proposed Project activity falls into measure Fuel and feedstock switch, since the project activity
consist of changing the source of the CO2 input, which prior to the implementation of the project activity
was generated as a result of the natural gas reforming process, and the NH3 surplus was unexploited; and
through the implementation of the project activity this NH3 surplus is combined with an external sourced

http://cdm.unfccc.int/Reference/Guidclarif/meth/meth_guid43.pdf

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CO2 from Mega production facility to produce urea.


3. Output: is goods or services with comparable quality, properties, and application areas (e.g.
clinker, lighting, residential cooking)
The project urea has a comparable quality, properties and application equal to the baseline urea.
4. Different technologies: are technologies that deliver the same output and differ by at least one of
the following (as appropriate in the context of the measure applied in the proposed CDM project
and applicable geographical area):
o Energy source/fuel
o Feed stock
o Size of installation (power capacity):
Micro (as defined in paragraph 24 of Decision 2/CMP.5 and paragraph 39 of
Decision 3/CMP.6);
Small (as defined in paragraph 28 of Decision 1/CMP.2);
Large.
As mentioned before the output delivered by the Project activity is the same as the output delivered by the
baseline scenario. But in the context of the mentioned measure the difference lies in the feedstock used in
both scenarios, since in the Project activity scenario the CO2 comes from an external source (Mega
production facility) and in the baseline scenario the CO2 is produced by an extra natural gas reforming
process.

II.

Identification of first of it kind project activities


5. A proposed project activity is the First-of-its-kind in the applicable geographical area if :
(a) The project is the first in the applicable geographical area that applies a technology that is
different from any other technologies able to deliver the same output and that have started
commercial operation in the applicable geographical area before the start date of the
project; and

As previously stated Profrtil SA is the main urea producer in Argentina. According to the National
Institution of Statistics and Census (INDEC due to its initials in Spanish) the national production of urea
during 2010 was 941 549 t 9 . Profertil contributes to the national urea production with 3 250 t of
granulated urea per day in its Bahia Blanca production facility, while its nearest competitor Bunge
Argentina produces 580 t 10of prilled urea per day in its fertilizers production facility in Campana.
These two manufacturers use conventional technology in their integrated ammonia-urea production
process. However, the project activity is the first that applies yield boosting of conventional urea
production facilities.

(b) Project participants selected a crediting period for the project activity that is a maximum of
10 years with no option of renewal;
The selected crediting period for the Project activity is 10 years.
III. Additionality of the First-of-its-kind project activity
9

http://www.indec.gov.ar/
Profiles of Companies in the Petrochemical Sector. Argentine Petrochemical Institution, October 2011.

10

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6. A proposed project activity that was identified as the First-of-its-kind project activity is additional.
As mentioned in the preceding section there is no other Urea producers who use the yield boosting
measure at a local or national level, so it can be called the first of its kind.
As it has been shown, the project activity is additional.
Prior consideration
According to the paragraph 6 of point III, of the Guidelines on the demonstration and assessment of
prior consideration of the CDM, Profrtil S.A. can demonstrate that it was completely aware of the CDM
prior the project activity start date (01/12/2010). This is evidenced in paragraph 9 of the contract signed
between Profrtil SA and Mega where it is shown that CDM was seriously considered at the moment of
the decision making to implement the project activity. The mentioned contract was signed on 01/12/2009.
After that, Profrtil SA took actions to secure CDM status in parallel with its implementation. This is
evidenced by the fact that Prior Consideration Forms were sent on 5/05/2011 to the DNA and to the
UNFCCC. Moreover, taking into account that at the moment there was no approved baseline and
monitoring methodologies applicable to the proposed project activity, Profrtil SA proceeded to hire
consultants for CDM/PDD/Methodology services.
B.6. Emission reductions
B.6.1. Explanation of methodological choices
Baseline Emissions
The baseline scenario is the production of the same amount of project urea produced by the project
activity, using the conventional process (natural gas reforming).
The baseline emissions are calculated based on the specific thermal energy consumption at the natural gas
reforming process (SECreforming)11 and the CO2 captive content present in the baseline urea (CONTBS,Urea)
according to the following equation:

BE y CONT BS ,Urea SEC refor min g FE fuel CONT BS ,Urea PPJ ,Urea , y

Parameter
BEy
CONTBS,Urea
SECreforming
FEfuel
PPJ,Urea,y

Description
Baseline emissions
CO2captive content in baseline urea
Specific thermal energy consumption in the
natural gas reforming process.
Emission factor of the natural gas used at the
natural gas reforming process.
Production of urea in year y

Project emissions

11

Please, see diagram Natural Gas Reforming

Unit
tCO2/y
tCO2captive/tUrea
GJ/tCO2captive
tCO2/GJ
tUrea/y

(1)

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Project emissions are calculated based on the specific energy consumption for the reforming process and
the amount of CO2 captive contained in project urea (CONTPJ,Urea), as detailed at the following equation:

PE y CONTPJ ,Urea SECrefor min g FE fuel CONTPJ ,Urea PPJ ,Urea, y

(2)

Where:
Parameter
PEy
CONTPJ,Urea
SECreforming
FEfuel
PPJ,Urea,y

Description
Project emissions
CO2captive content in project urea
Specific thermal energy consumption in the
natural gas reforming process
Emission factor of the natural gas used at the
natural gas reforming process
Production of urea in year y

Unit
tCO2/y
tCO2captive/tUrea
GJ/tCO2captive
tCO2/GJ
tUrea/y

CONTPJ Urea
The amount of CO2captivepresent at the project urea (CONTPJ,Urea), is the specific CO2captive content per ton
of project urea. This factor is smaller in the project urea than in the baseline urea, because the project urea
also contains some CO2 no-captive from an external source.
CONTPJ,Urea is calculated based on the CO2no-captive captured from the external gas stream as a ratio of
CO2non captive and CO2captive. This estimation is detailed at the following equation:
Where:

Input CO 2 non captive

CONTPJ ,Urea CONTBS ,Urea


CONTBS ,Urea
Input CO 2captive

Parameter
InputCO2non-captive
InputCO2captive
CONTPJ,Urea

Description
CO2 stream from an external source
CO2 stream from the reforming process
CO2captive contained in the project urea.

(3)

Unit
tCO2/y
tCO2/y
tCO2captive/tUrea

Leakage
If the project technology is the equipment transferred from another activity or if the existing equipment is
transferred to another activity, leakage effects are to be considered (LEy)
LEy = 0

Emission Reduction
The Project emission reductions are calculated as the difference between the baseline emissions, and the
project emissions and leakage.

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ER y BE y PE y LE y

(4)

Where:

Parameter
ERy
BEy
PEy
LEy

Description
Emission eeductions
Baseline emission
Project emission

Unit
tCO2/y
tCO2/y
tCO2/y

Leakage emissions

tCO2/y

B.6.2. Data and parameters fixed ex ante


SECreforming
Data / Parameter
GJ/tCO2
Unit
Default value for the specific consumption of thermal energy used at the
Description
natural gas reforming process to obtain one CO2 tone.
The emission factor was calculated based on the default values included in
Source of data
the United Nations Environment Programme 1996, Technical Report No.
26 Part 1, pages 12 and 17: The Fertilizer Industrys Manufacturing
Processes and Environmental Issues, United Nations Environment
Programme, Paris, France12. To calculate SECreforming, the lowest values
were used, applying conservative criteria (8 GJ/tNH3 divided per 1.3 tCO2/
tNH3 = 6.15 GJ/tCO2
6.15
Value(s) applied
Default value
Choice of data
or
Measurement methods
and procedures
Calculation of baseline and project emissions
Purpose of data
Additional comment

12

This report mentions that during the natural gas reforming process, the resulting pure CO2 (1.3-1.4 t per
t of NH3) is used for the manufacture of urea, dry ice, or in other applications; and later on includes a
table with the typical inputs, outputs and atmospheric emission levels in modern ammonia plants where
the total energy used at the furnaces per ton of NH3 is between 8 and 10 GJ/tNH3.

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Data / Parameter
Unit
Description
Source of data
Value(s) applied
Choice of data
or
Measurement methods
and procedures
Purpose of data
Additional comment
Data / Parameter
Unit
Description
Source of data
Value(s) applied
Choice of data
or
Measurement methods
and procedures
Purpose of data
Additional comment

Page 20

CONTBS,Urea
tCO2captive/tUrea
Default value for the specific CO2 content per ton of urea
Global CCS Institute (March 2011) "Accelerating the uptake of CCS:
Industrial use of captured. Page 20.
0.735
Default value.
CO2 utilization per tonne of product output: For every tonne of urea
produced, 0.7350.75 tonnes of CO2 will typically be consumed. The
lowest value was used, applying conservative criteria.
Calculation of baseline emissions
FEfuel
kgCO2/TJ
Natural gas emission factor used as energy source at the natural gas
reforming process
IPCC 2006 Guidelines for National Greenhouse Gas Inventories
56 100
Default value.

Calculation of baseline and project emissions


-

B.6.3. Ex-ante calculation of emission reductions


>>
Baseline Emissions
The baseline scenario is the production of the same amount of project urea produced by the project
activity, using the conventional process (natural gas reforming).
The baseline emissions are calculated based on the specific thermal energy consumption at the natural gas
reforming process (SECreforming)13 and the CO2 captive content present in the baseline urea (CONTBS,Urea)
according to the following equation:

BE y CONT BS ,Urea SEC refor min g FE fuel CONT BS ,Urea PPJ ,Urea , y

Parameter
BEy
CONTBS,Urea
SECreforming
FEfuel
13

Description
Baseline emissions
CO2captive content in baseline urea
Specific thermal energy consumption in the
natural gas reforming process.
Emission factor of the natural gas used at the

Please, see diagram Natural Gas Reforming

(5)

Value
Unit
980.699 tCO2/y
0.735 tCO2captive/tUrea
GJ/tCO2captive
6.15
0.0561 tCO2/GJ

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natural gas reforming process.


Production of urea in year y

PPJ,Urea,y

991.863 tUrea/y

For ex ante emissions reduction calculation PPJ,Urea,y was used an average of the last 7 years
urea production.
Project emissions
Project emissions are calculated based on the specific energy consumption for the reforming process and
the amount of CO2 captive contained in project urea (CONTPJ,Urea), as detailed at the following equation:

PE y CONTPJ ,Urea SECrefor min g FE fuel CONTPJ ,Urea PPJ ,Urea, y

(6)

Where:
Parameter
PEy

Description
Project emissions

CONTPJ,Urea
SECreforming

CO2captive content in project urea


Specific thermal energy consumption in the
natural gas reforming process
Emission factor of the natural gas used at the
natural gas reforming process
Production of urea in year y

FEfuel
PPJ,Urea,y

Value
Unit
948.483 tCO2/y
0.71295 tCO2captive/tUrea
GJ/tCO2captive
6.15
tCO2/GJ
0.0561
991.863 tUrea/y

For ex ante emissions reduction calculation PPJ,Urea,y was used an average of the last 7 years
urea production.

CONTPJ Urea
The amount of CO2captivepresent at the project urea (CONTPJ,Urea), is the specific CO2captive content per ton
of project urea. This factor is smaller in the project urea than in the baseline urea, because the project urea
also contains some CO2 no-captive from an external source.
CONTPJ,Urea is calculated based on the CO2no-captive captured from the external gas stream as a ratio of
CO2non captive and CO2captive. This estimation is detailed at the following equation:
Where:

Input CO 2 non captive

CONTPJ ,Urea CONTBS ,Urea


CONTBS ,Urea
Input

CO 2 captive

Parameter
InputCO2non-captive
InputCO2captive
CONTPJ,Urea

Description
CO2 stream from an external source
CO2 stream from the reforming process
CO2captive contained in the project urea.

Value
26 280
800 000
0.71295

(7)

Unit
tCO2/y
tCO2/y
tCO2captive/tUrea

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Leakage
If the project technology is the equipment transferred from another activity or if the existing equipment is
transferred to another activity, leakage effects are to be considered (LEy)
LEy = 0

Emission Reduction
The Project emission reductions are calculated as the difference between the baseline emissions, and the
project emissions and leakage.

ER y BE y PE y LE y

(8)

Where:

Parameter
ERy
BEy
PEy
LEy

Description
Emission reductions
Baseline emission
Project emission

Value
32 216
980 699
948 483

Unit
tCO2/y
tCO2/y
tCO2/y

Leakage emissions

tCO2/y

B.6.4. Summary of ex-ante estimates of emission reductions

Baseline emissions
Year

Emission
reductions

2013

(tCO2 e)
980 699

2014

980 699

948 483

32 216

2015

980 699

948 483

32 216

2016

980 699

948 483

32 216

2017

980 699

948 483

32 216

2018

980 699

948 483

32 216

2019

980 699

948 483

32 216

2020

980 699

948 483

32 216

2021

980 699

948 483

32 216

2022

980 699

948 483

32 216

9 806 990

9 484 830

322 160

Total

(tCO2 e)
32 216

10 years

Total number of crediting years


Annual

Project
emissions Leakage
(tCO2
(tCO2 e)
e)
948 483
0

980 699

9 484 830

322 160

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average over the crediting period

B.7. Monitoring plan


B.7.1. Data and parameters to be monitored
PPJ,Urea,y
Data / Parameter
tUrea/y
Unit
Production of urea in year y
Description
Urea stock verification records
Source of data
991 863
Value(s) applied
Measurement methods The urea production is calculated through the cross checking between
theoretical and real urea production, through the periodic urea stock
and procedures
verification records.
The real urea production is measured in the following equipment according
to the mean of transport used to dispatch the urea:
Dock scale:
Hopper scale, class III, electronic (Hopper scale HERWEG model 28-l-80
series number TO 124, weight t indicator HERWEG model AN 3060
series number A 093801 approval code of hopper and indicator BF 501901), maximum capacity 5000 Kg. minimum capacity 250 Kg. per hopper
(4 hoppers) , sequential operation.
The data recording is performed manually in SAP system.
The verification of calibration is annual (performed by Instituto Nacional
de Tecnologa Industrial)

Truck and train scale:

Platform scale, Max 60000 kg. min. 500 kg. ,class III , electronic, platform
supplier SCHENCK, model 28-l-24/26 series number CO 111, brand
indicator SCHENCK model DISOMAT series number 002ETJ approval
code of platform model and indicator, respectively BF 80-1902.
The data recording in SAP system is automatic

Monitoring frequency

QA/QC procedures
Purpose of data
Additional comment

The verification of calibration is annual (performed by Instituto Nacional


de Tecnologa Industrial)
The theoretical urea production is calculated daily.
The real urea production is monitored every time urea is dispatched.
Periodic urea stock verification records are performed twice a year (cross
checking)
The expanded uncertainty of measurement associated with the loop through
01-FI-006 is 0.75%.
Calculation of baseline and project emissions
-

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Data / Parameter
Unit
Description
Source of data
Value(s) applied
Measurement methods
and procedures

Page 24

InputCO2non-captive
tCO2/y
CO2 stream from an external source
On site measurements
26 280
The InputCO2non-captive is measured by an ultrasonic meter set as custody
transfer. The data is sent to a flowmeter where it is automatically recorded.

Purpose of data
Additional comment

The measurement includes a chromatography analysis of the stream (ABB


chromatograph on line).
Continuously
The frequency of calibration is twice a year.
According to the suppliers specifications.
Calculation of project emissions
-

Data / Parameter
Unit
Description
Source of data
Value(s) applied
Measurement methods
and procedures

InputCO2captive
tCO2/y
CO2 stream from the reforming process
On site measurements
800 000
The InputCO2captive generated in the ammonia plant, is measured with the
instrument FI-3011.

Monitoring frequency
QA/QC procedures

Continuously
The expanded uncertainty of measurement associated with the loop through
02-FI-3011 is 0.6%.
Calculation of baseline emissions
-

Monitoring frequency
QA/QC procedures

Purpose of data
Additional comment

B.7.2. Sampling plan


>> The parameter monitored in section B.7.1 is not determinate by a sampling approach, because this
parameter will be continuously measured by the electricity meter.

B.7.3. Other elements of monitoring plan


>> Monitoring procedures
Monitoring involves an annual assessment of the produced urea (PPJ,Urea,y) and the input of CO2non-captive for
the external source and CO2captive for natural gas reforming (InputCO2non-captive and InputCO2captive
respectively).
The following diagram shows the monitoring point for the parameters detailed above:

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Diagram 6 Monitoring Point

1. Urea production (Purea,y)


The urea production is calculated through the cross checking between theoretical
t heoretical and real urea
production,, through the periodic urea stock verification records.
Theoretical urea production
The urea production is calculated based on the specific CO2 content in urea and the CO2 consumption
(both InputCO2captive and InputCO2non-captive
). This CO2 is measured with the flowmeter FI
FI-006.
CO2non
Then, this figure is multiplied by the stoichiometric relation ammonia/urea (0.567) to calculate the
theoretical ammonia consumption.
After that, the losses occurred in the process are added. Finally, the obtained fi
figure is divided by the real
specific consumption of ammonia per tone of urea (0.575 NH3/Urea), to obtain the urea production.
Real urea production:
The urea is dispatched by ship, train and truck.
Every time the urea is dispatched, it is weighted in different
different scales according to the mean of transport
used.
The obtained mass values are recorded in the SAP system.

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The real urea production is measured in the following equipment according to the mean of transport used
to dispatch the urea:
o Dock scale:
Hopper scale, class III, electronic (Hopper scale HERWEG model 28-l-80 series number TO 124,
weight t indicator HERWEG model AN 3060 series number A 093801 approval code of hopper and
indicator BF 50-1901), maximum capacity 5000 Kg. minimum capacity 250 Kg. per holpper (4 hoppers)
, secuencial operation.
The data recording is performed manually in SAP system.
The verification of calibration is annual (performed by Instituto Nacional de Tecnologa Industrial)
o Truck and train scale:
Platform scale, Max 60000 kg. min. 500 kg. ,class III , electronic, platform supplier SCHENCK, model
28-l-24/26 series number CO 111, brand indicator SCHENCK model DISOMAT series number 002ETJ
approval code of platform model and indicator, respectively BF 80-1902.
The data recording in SAP system is automatic
The verification of calibration is annual (performed by Instituto Nacional de Tecnologa Industrial)

2. InputCO2captive
The InputCO2captive generated in the ammonia plant, is measured with the instrument FI-3011.
3. InputCO2non-captive
The InputCO2non-captive is measured by an ultrasonic meter set as custody transfer. The data is sent to a
flowmeter where it is automatically recorded.
The measurement includes a chromatography of the flow (ABB chromatographer on line).

Personnel training
Plant personnel are in charge of registered the parameters to be monitored, who in turn send data to the
Plant Manager, who then delivers the data to the E&HS Manager, responsible for the CDM preparation
and the calculation of emissions reductions.

Operation and
Monitoring team

Plant Manager

SECTION C. Duration and crediting period


C.1. Duration of project activity
C.1.1. Start date of project activity
>> 01/12/2010

E&HS Manager
( CDM Manager)

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C.1.2. Expected operational lifetime of project activity


>>16y-0m
C.2. Crediting period of project activity
C.2.1. Type of crediting period
>>Fixed

C.2.2. Start date of crediting period

>>01/01/2013 or the date of registration, whichever is later.


C.2.3. Length of crediting period
>>10y-0m
SECTION D. Environmental impacts
D.1. Analysis of environmental impacts
>>Not applicable because this F-CDM-PDD was completed in support of a new methodology.

SECTION E. Local stakeholder consultation


E.1. Solicitation of comments from local stakeholders
>> Not applicable because this F-CDM-PDD was completed in support of a new methodology.

E.2. Summary of comments received


>> Not applicable because this F-CDM-PDD was completed in support of a new methodology.

E.3. Report on consideration of comments received


>> Not applicable because this F-CDM-PDD was completed in support of a new methodology.

SECTION F. Approval and authorization


>> Not applicable because this F-CDM-PDD was completed in support of a new methodology.

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Appendix 1: Contact information of project participants

Organization
Street/P.O. Box
Building
City
State/Region
Postcode
Country
Telephone
Fax
E-mail
Website
Contact person
Title
Salutation
Last name
Middle name
First name
Department
Mobile
Direct fax
Direct tel.
Personal e-mail

Profertil S.A.
Avenida de las Colectividades Extranjeras y Ernesto Pilling
Planta Cangrejales
Ingeniero White
Buenos Aires Province
8103
Argentina
+54 291 459 8000
+54 291 259 8036
profertil@profertil.com.ar
www.profertil.com.ar
Claudio Pajean
E&HS Manager
Sr.
Pajean
Jos
Claudio
Environment Health and Security
+54 291 156493915
+54 291 4598066
+54 291 459 8000 ext: 8127
cpajean@profertil.com.ar

Appendix 2: Affirmation regarding public funding


Appendix 3: Applicability of selected methodology
Appendix 4: Further background information on ex ante calculation of emission reductions
Appendix 5: Further background information on monitoring plan
Appendix 6: Summary of post registration changes

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History of the document


Version
04.0

Date
EB 66
13 March 2012

03

22 December 2006

02

8 July 2005

01
21 January 2003
Decision Class: Regulatory
Document Type: Form
Business Function: Registration

Nature of revision
Revision required to ensure consistency with the Guidelines for completing
the project design document form for small-scale CDM project activities
(EB 66, Annex 9).
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.
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>.
Initial adoption.

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