The City of Decin

The Center for Clean Air Policy (CCAP)

Wisconsin Electric Power Company (WEPCO)

Commonwealth Edison Company

NIPSCO Development Company Inc.

Item

Name of organization (original language)

Name of individual if unaffiliated with any organization

The City of Decin

Name of organization (English)

The City of Decin

Acronym (original language)

None

Acronym (English)

None

Department

Function(s) within the AIJ project activities

Project development, project administration

Street

Mestsky urad, Mirove nam

City

405 38 Decin

State

Post code

Country

Czech Republic

Telephone

Fax

E-mail

World Wide Web-URL address

Surname

Kunc

First name, middle name

Milan

Job title

Mayor

Direct telephone

420-412-27660

Direct fax

420-412-24005

Direct e-mail

Surname

First name, middle name

Job title

Direct telephone

Direct fax

Direct e-mail

Item

Name of organization (original language)

Name of individual if unaffiliated with any organization

The Center for Clean Air Policy

Name of organization (English)

(Same as above)

Acronym (original language)

CCAP

Acronym (English)

(Same as above)

Department

Function(s) within the AIJ project activities

Project development, project administration

Street

750 First Street, NE Suite 1140

City

Washington

State

District of Columbia

Post code

20002

Country

U.S.A.

Telephone

202-408-9260

Fax

202-408-8896

E-mail

general@ccap.org

World Wide Web-URL address

Surname

Helme

First name, middle name

Edward A.

Job title

Executive Director

Direct telephone

202-408-9260

Direct fax

202-408-8896

Direct e-mail

nhelme@ccap.org

Surname

Koenick

First name, middle name

Mary-Bittle

Job title

Program Coordinator

Direct telephone

202-408-9260

Direct fax

202-408-8896

Direct e-mail

mbkoenick@ccap.org

Item

Name of organization (original language)

Name of individual if unaffiliated with any organization

Wisconsin Electric Power Company

Name of organization (English)

(Same as above)

Acronym (original language)

WEPCO

Acronym (English)

(Same as above)

Department

Function(s) within the AIJ project activities

Financing

Street

231 West Michigan Street

City

Milwaukee

State

Wisconsin

Post code

53203

Country

U.S.A.

Telephone

Fax

E-mail

World Wide Web-URL address

Surname

Abdoo

First name, middle name

Richard

Job title

CEO

Direct telephone

414-221-2118

Direct fax

414-221-2172

Direct e-mail

Surname

Schumacher

First name, middle name

Paul

Job title

Environmental Process Manager

Direct telephone

414-221-2449

Direct fax

414-221-3985

Direct e-mail

Item

Name of organization (original language)

Name of individual if unaffiliated with any organization

Commonwealth Edison Company

Name of organization (English)

(Same as above)

Acronym (original language)

None

Acronym (English)

None

Department

Function(s) within the AIJ project activities

Financing

Street

P.O. Box 767

City

Chicago

State

Illinois

Post code

60690

Country

U.S.A.

Telephone

Fax

E-mail

World Wide Web-URL address

Surname

O'Connor

First name, middle name

James J.

Job title

Chairman

Direct telephone

312-394-3224

Direct fax

312-394-7799

Direct e-mail

Surname

O’Toole

First name, middle name

Mary

Job title

Environmental Services Manager

Direct telephone

312-394-4430

Direct fax

312-394-4466

Direct e-mail

Item

Name of organization (original language)

Name of individual if unaffiliated with any organization

NIPSCO Development Company Inc.

Name of organization (English)

(Same as above)

Acronym (original language)

None

Acronym (English)

None

Department

Function(s) within the AIJ project activities

Financing

Street

5262 Hohman Avenue

City

Hammond

State

Indiana

Post code

46320-1775

Country

U.S.A.

Telephone

Fax

E-mail

World Wide Web-URL address

Surname

Adik

First name, middle name

Stephen P.

Job title

President

Direct telephone

219-647-6012

Direct fax

219-647-6061

Direct e-mail

Surname

Smith

First name, middle name

Art

Job title

Director, Environmental Affairs

Direct telephone

219-647-5252

Direct fax

219-647-5271

Direct e-mail

Sector(s)

Energy

Primary activity(ies)

Fuel-switching, energy efficiency improvements, cogeneration

Country

Czech Republic

Exact location (city, state, region)

Teplicka 31/45, 405 22 Decin IV

Project starting date (month/year)

January 1995

Project ending date (month/year)

August 2021

Project lifetime (years)

26 years + 8 months

Current stage of project

In progress

The project involves construction of a new facility next to the existing Bynov District Heating Plant (site 1). This facility, which became operational in September 1996, houses two gas engines with a combined capacity of 10.6 megawatts (MW) and a combustion efficiency of 90%, plus a peaking gas boiler. Water used to cool the engines supplies apartment blocks with hot water for heating and drinking. The engines also generate 25 gigawatthours (GWh) of electricity per year. Natural gas for the facility is supplied via a pipeline from Russia.

In addition, the existing steam distribution system has been replaced with a new, more efficient hot water delivery system, improving the network’s overall efficiency. The city is installing meters in each building to measure heat and hot water delivery and controls in each apartment to provide efficient regulation of service delivery. These energy efficiency improvements, as well as the switch from lignite coal to natural gas, will reduce GHG emissions at the Bynov Plant.

The new Bynov cogeneration facility, with the ability to produce electricity as well as heat, offsets electricity, and associated GHG emissions, from the national power utility grid (CEZ) (site 2).

This information is not yet available.

Party(ies) that will be monitoring project activities

City of Decin

Party(ies) that will be externally verifying project results

Czech Hydrometeorological Institution

Date when the monitoring plan became (or will become) operational (month/year)

September 1995

Types of data that will be collected

Consumption of natural gas and annual electricity production

To monitor the project, natural gas annual consumption data will be drawn from the natural gas monitor used to determine payments for the gas supply. Using a fixed carbon content for natural gas of 33,000 lbs per million cubic feet (mcf), CO₂ emissions and emissions reductions will be calculated for each engine and boiler at the plant.

In addition, data on total annual energy produced by the project will be collected and the resulting GHG emission reductions will be calculated according to the calculation methodology for the project scenario of site 2 outlined in section E of this report.

The CO₂ emissions will be monitored periodically throughout the year and an annual report will be completed at the end of each year of the project. The annual CO₂ emissions will be certified by the Czech Ministry of Environment. In addition, the Czech Hydrometeorological Institution will develop and implement a monitoring and verification program.

The Czech Hydrometeorological Institution will review and assess: the historic CO₂ emissions baseline for the Bynov Plant, the projected CO₂ emissions under the reference and project scenarios, a report on potential leakage problems and shift of existing load to other sources of heat supply, the Czech government policy on scoring of CO₂ emission reductions from the Bynov Plant relative to the Czech national plan, and the monitoring strategy and techniques proposed. The above assessments will be summarized in a brief report for submittal to the USIJI Secretariat.

The Czech Hydrometeorological Institution will assess and certify in writing the environmental performance (reported CO₂, SO₂, and NO_x emissions) after the end of the first year of operation.

Please check one of the following.

This report is a first report.

This report is an intermediate report.

This report is a final report.

Please check one of the following:

This report is a joint report. Letter(s) of approval of this report from the designated national authority of the other Party(ies) involved in the activity is(are) attached in Section J, Annex.

This report is a separate report.

Additional comments (if any):

The Decin project is consistent with national goals to both reduce air pollution and enhance energy efficiency. The project will use imported gas engines of higher quality and efficiency than those produced domestically. Installing such engines will demonstrate the economic feasibility of such projects for other municipalities and companies.

By switching from coal to natural gas, the project will reduce other air pollutants, especially sulfur dioxide and particulate matter, which will have significant public health benefits in one of the most polluted cities in Northern Bohemia. In addition, the lignite presently used at the Bynov District Heating Plant is transported by truck from the town of Most, 75 kilometers from the city. Elimination of this fuel source will reduce transportation-related air pollutants in the region. This will help the city reduce tropospheric ozone, and will decrease coal dust in the air.

This information is not yet available.

In the short run, there has been increased employment in Decin as construction crews were hired to build the new facility. However, while the cogeneration facility will have a positive impact on economic development in the city of Decin, there will be some negative impact at the coal mines in Most. Because of the small size of the plant, it is not expected to cause layoffs of coal miners.

Site number (order of presentation in this report)

1 of 2

Site name/designation

The Bynov District Heating Plant, Decin

Project sector

Energy

Primary activity(ies)

Use of lignite to fuel the Bynov District Heating System

Has the reference scenario changed since the last report? (If yes, explain any changes below.)

Yes

No

This is the first project report.

Description:

Decin is a heavily industrialized center with a population of 55,000 located at the bottom of a deep valley in the northwestern corner of Northern Bohemia in the Czech Republic. Due to the deep valley, high levels of air pollution accumulate over the region. Heat production is the largest contributor to the air pollution. The greater part of the city’s housing units are heated by lignite, either directly by burning the coal in individual homes, or indirectly by being linked to the district heating plant, which is fueled with lignite.

The Bynov Plant is a 19.6 MW facility that burns 12,800 tonnes of local lignite annually. The coal has a carbon content of 41.8% and emits 19,582 t CO₂ annually. Without the project, the Bynov Plant would continue to use lignite, and plans for installing the capacity for cogeneration and improving the efficiency of the heat distribution network would not have been initiated. With an annual heat production of 107,000 gigajoules (GJ) and an annual heat combustion (input) of 170,000 GJ, the combustion efficiency is approximately 63%.

Primary activity(ies)

Fuel-switching, energy efficiency improvements, cogeneration

Description:

The project scenario involves converting the Bynov District Heating Plant from coal-fired boilers to natural gas engines, installing capacity for cogeneration, and improving the efficiency of the heat distribution network. A new facility, which houses two gas engines and a peaking gas boiler, has been constructed next to the existing Bynov Plant. This facility became operational in September 1996. Natural gas for the facility is supplied via a pipeline from Russia.

The converted Bynov Plant has a capacity of 10.6 MW and an approximate efficiency of 90%. The existing steam distribution system has been replaced with a new, more efficient hot water delivery system, improving the network’s overall efficiency. In addition, meters have been installed in each building to measure heat and hot water delivery. These conversion and efficiency improvements will allow the Bynov facility to continue to provide 107,000 GJ of heat while reducing energy consumption from 170,000 GJ to 117,000 GJ.

Primary activity(ies)

Fuel-switching, energy efficiency improvements, cogeneration

Description:

The Decin Project was commissioned on September 13, 1996, and is achieving concrete emission reductions of local and global pollutants:

• Ash - 100% reduction
• CO₂ - over 30% reduction
• SO₂ - 100% reduction

Site number (order of presentation in this report)

2 of 2

Site name/designation

CEZ, National Grid, Czech Republic

Project sector

Energy

Primary activity(ies)

Coal-generated electricity

Has the reference scenario changed since the last report? (If yes, explain any changes below.)

Yes

No

This is the first project report.

Description:

GHG emissions occur off-site at the national power utility grid (CEZ). Electricity generated by the CEZ supplies over 80% of the country’s electricity. The CEZ national grid’s fuel mix includes nuclear, coal, and hydro. The coal units within the CEZ grid are primarily used to meet mid-load and peaking power demands.

Primary activity(ies)

Cogeneration

Description:

The new Bynov cogeneration facility, with the ability to produce electricity in addition to heat, will offset electricity from the CEZ national grid. The new Bynov plant will generate over 25 GWh of electricity each year which will produce a net CO₂ savings by backing out CEZ electricity. Since CEZ’s fuel mix is nuclear, coal, and hydro, the emission reductions achieved are calculated based on the average emissions rate for the system.

Primary activity(ies)

This information is not yet available.

Description:

This information is not yet available.

Site number

1 of 2

Project sector

Energy

Site 1 (on-site) emissions for the reference scenario were estimated based on projections that energy demand decreases approximately 12% at the Bynov plant between 1996 and 2002 and remains steady thereafter. This explains the initial decrease in emission estimates for the reference scenario. The projected decline results from a combination of three assumptions:

• 1) heat demanded by existing households will decline by approximately 20% over the period 1996 - 2001 as a result of the installation of thermostats and other energy efficiency improvements;

  2) demand for heat will increase by approximately 8,000 GJ (7%), as additional one- and two-family houses are connected to the system;

  3) heat demand will remain steady after 2001 because Decin is located in a small valley; therefore, it is unlikely that housing will increase or that new commercial facilities will locate there.

Site 1 reference scenario annual emissions were estimated by multiplying the estimated coal consumption (t) of the old Bynov plant for a given year by the carbon content of lignite (41.8%). This amount was then converted to CO₂ using a conversion factor of 3.66. For example, in 1997 (year 3) site 1 reference scenario emissions are 19,177 t CO₂ (= 12,535 t of coal * 41.8% C * 3.66 CO₂/C).

Site 1 project scenario annual emissions were calculated by multiplying the new Bynov plant natural gas consumption for a given year by the carbon content of natural gas. The estimate was converted to t CO₂ by dividing by 2,200 lbs per metric ton and multiplying by the CO₂ conversion factor. For example, in 1997 (year 3) site 1 project scenario emissions are 13,309 t CO₂ (= (242 mcf natural gas * 33,000 lbs. C/mcf) / 2,200 lbs./t * 3.66 CO₂/C).

Projections of annual natural gas consumption decline by approximately 12% between 1996 and 2002, as in the reference case. Also, the project scenario emission estimates for year two and year 27 are correspondingly pro-rated to reflect the September 1996 plant start date and anticipated August 2021 plant end date.

This information is not yet available.

Site number

2 of 2

Project sector

Energy

The calculation of off-site CO₂ emissions published in the report is preliminary. A more precise calculation will be published in the next report.

Site 2 (off-site) emissions were based on projections that energy demand for electricity generated at the CEZ grid decreases by approximately 12%, relative to 1996 levels, by the end of 2001 and remains steady thereafter. This explains the initial decrease in emission estimates for the reference scenario. For a list of the assumptions which result in the projected decline, please see methodology for site 1.

Site 2 (off-site) GHG emission reductions occur because the new Bynov cogeneration facility offsets electricity from the CEZ national grid. Site 2 reference scenario annual emissions were calculated by multiplying the estimated electricity production (MWh) of the new Bynov plant in a given year by the CO₂ emission factor for the CEZ grid system, 0.79 t CO₂/MWh. For example, in 1997 (year 3) site 2 reference scenario emissions are 20,362 t CO₂ (= 25,775 MWh * .79 t CO₂/MWh).

The CO₂ emission factor for the entire CEZ system of 0.79 t CO₂/MWh is the weighted average of the emission factors for the two types of coal used by the CEZ system. It is derived in four steps:

• 1) multiply the amount of lignite used by CEZ by its carbon content of 32.9%;

  2) multiply the amount of hard coal used by CEZ by its carbon content of 67.4%;

  3) add the results from the first two steps, to derive total CEZ emissions;

  4) divide this sum by the total CEZ electricity production and convert to CO₂.

(t lignite coal * 32.9% C) + (hard coal * 67.4% C) * 3.66 CO₂ / C = CEZ CO₂ emissions factor

CEZ total electricity production

(29 x 10⁶ t * 32.9% C) + (0.6 x 10⁶ t * 67.4% C) * 3.66 CO₂ / C = 0.0079 x 10⁶ t CO₂ / GWh

46,300 GWh = 0.79 t CO₂ / MWh

Because there are no off-site project emissions, annual project scenario emissions at site 2 equal zero. Annual project net carbon benefits at site 2 represent the annual emissions avoided at the national utility (CEZ) grid by the electricity production of the new cogeneration Bynov plant.

Because the plant did not begin operation until September 1996, the project scenario emission estimates for year two and year 27 include emissions from the grid during the months when the plant was not operational.

This information is not yet available.

Possible secondary effects exist in the form of emissions associated with the construction of the new facility, such as mobile source emissions. However, these emissions are likely to be small.

Given the nature of this project—substitution of coal generated power with natural gas power—loss or reversal of benefits that have been achieved is not possible. However, if the City of Decin were to opt to shut down the Bynov plant and shift the heating load to a coal-fired facility, the projected GHG emission reductions would be lost.

The construction of the new facilities and connection to the gas pipeline represent a substantial capital investment. The project also has significant local and federal political support. Therefore, the project's GHG reductions will likely be continued well into the future. Even if the project were abandoned at some point, the reductions achieved up to that point would not be reversed. Nevertheless, the U.S. participants included a provision in their final agreement with the City of Decin that will prevent such a loss in the future.

Funding Source

Amount

($US)

Czech Savings Bank

6,600,000

Danish Government

800,000

WEPCo

200,000

NIPSCO Development Co.

200,000

Commonwealth Edison Co.

200,000

Total

8,000,000

This information is not yet available.

The Decin Project has laid the groundwork for future JI project development by building the capacity of the local and federal government officials to identify, develop, and finance similar projects with GHG reductions. Further, the project serves as a model to demonstrate how inefficient and environmentally damaging district heating plants may be upgraded with both economic and environmental benefits.

In addition, the project will augment technology transfer. The cogeneration facility is expected to be the most advanced technology of its kind in the Czech Republic. Contract bids for the project were sent to manufacturers of gas engines and boilers world wide.

This information is not yet available.

Although the plant was expected to be operational by October 1995, construction delays postponed start-up until September 1996.

None.

Country/Project Title

Date of Approval(day/month/year)

Czech Republic / The City of Decin: Fuel-Switching for District Heating

Vladislav Bizek, Deputy Minister, Ministry of the Environment of the Czech Republic