Project full name

Switching of fuel from Naphtha  to Natural gas at United Phosphorus Limited (UPL)

CDM Project number

0437

Description

The project activity aims at reducing GHG emissions through switching from Naphtha to Natural gas as a fuel source for the United Phosphorus Limited (UPL) power plant.  GHG emissions will be reduced due to the use of Natural Gas.

Report summary

Key promises made by project proponents:

• natural gas use produces less GHG into atomsphere in comparison to Naptha
• projet activity increases safety of operations and hazard potentials
• analysis of the environmental impacts:
• no significant environmental impacts are expected from this project activity
• no impact on surface and groundwater sources was anticipated

Situation on the ground:

The project activity generates carbon credits for switching the source of fuel for the UPL Dahej power plant from Naphtha to Natural gas. However, Naphtha gas is still used as fuel for this plant, not Natural gas, which as a logical consequence does not correspond to the reduction of GHG as indicated in the Project Design Documents (PDD). Moreover, health impacts of the local population have been reported caused by frequent releases of harmful gas. The discharged gas provokes eye and skin irritation as well as lung problems. The gas releases also impact the agricultural productivity, thus lowering the level of income of the local population.

 Fossil fuel switch

Project participants

• India: 
• United Phosphorus Limited

• UK:
• Noble Carbon Credits Limited

• Switzerland:
• Mercuria Energy Trading SA

Registration date

28 July 2006

Carbon credits issued to date

442.187

Exact location

Jhagadia

Gujarat
India

Relevant links at UNFCCC website

PDD
host country letter of approval
validation report

Sustainable development benefits

social well-being

sustainable development benefits according to claims made by project developers:

• by demonstrating feasibility of adoption of a cleaner fuel, by taking recourse to innovative finance mechanism (CDM), the project helps diffusion of use of clean fuel in an industrial project

sustainable development benefits according to reports:

Jobs

• permanent jobs:
• only 1 local person given permanent employment

• non-permanent jobs:
• a number of local people are employed on contractural basis

Health and safety 

• health damaging pollution: 
• harmful gases are frequently discharged by company
• gases cause eye and skin irritation and lung problems

Welfare

• community upliftment: 
• no comunity welfare work has been carried out by company

• poverty alleviation:
• negative impacts on agricultural production due to project activity causing a decrease income security of local people

economic well-being

sustainable development benefits according to claims made by project developers:

• project activity results in direct and indirect employment generation due to lay down of pipeline for gas transport in the regions

environmental well-being

sustainable development benefits according to claims made by project developers:

• natural gas use produces less GHG into atomsphere in comparison to Naptha
• project activity reduces GHG emissions to local and global environment
• project activity reduces GHG emissions per unit of electricity generation

sustainable development benefits according to reports:

Water

• accessibility to water: 
• decrease of ground water levels due to a number of project activities in the region
• high power pumps used by company to withdraw ground water
• the ground water highly polluted

Land

• tillage:
• agriculural productivity decreased due to lower ground water levels
• highly polluted ground water has negative impacts on agricultural production

technological well-being

sustainable development benefits according to claims made by project developers:

• project activity involves implementation of newly built infrastructure using state-of- the-art technology for transmission and distribution of natural gas
• projet activity increases safety of operations and hazard potentials

Sources and Materials

Sources

• Glimpse from Ground: Analysis of selected CDM projects by Gujarat Forum on CDM

Organisations working on project

• Gujarat Forum on CDM
• Paryavaran Mitra

Last update

03.12.2014