Part III: Flare Reduction Project Family - IPIECA

Section 7. Flare Reduction Project Family
Table 7-11. Applicability and History of Approved CDM Baseline Methodologies for Flare Reduction Projects,
continued
Methodology
AM0009
(continued)
Version
Date
Approved
History of Methodology
Development
and Revisions
Notes
The explicit prohibition against the use of AM0009 for projects
involved with gas lift could exclude a fairly high fraction of oil wells
from CDM consideration.
A clarification was requested (AM_CLA_0073) as to whether
projects that replace non-associated gas with previously flared gas
would qualify under Version 03. This was denied by the
Methodology Panel on the grounds that associated gas and its
products can only be used for energy purposes.
A revision was proposed to: (1) expand AM0009 activities to include
projects where captured associated gas is compressed and transported
by trucks to end-users (i.e., CNG); and (2) allow for mixing of
associated and non-associated gas while ensuring that only emissions
from flaring of associated gas are counted in the baseline emissions.
The request for revision was not approved for the following reasons:
• The baseline selection should include a procedure to identify
baseline scenarios for end-user facilities (What fuel would be
used in the absence of the project?)
• At its 36th meeting, the CDM EB clarified that project
activities that result in emission reductions due to the use of a
product produced in the project activity are only eligible as a
CDM project activity if: (1) the users of the product are
included in the project boundary; and (2) monitoring takes
place of the actual use and location of the product used by
consumers. This means end-user facilities must be included
in the project boundary.
In response to this guidance from the EB, the Methodology Panel
determined that procedures for monitoring the final use of CNG at
end-user facilities needed to be developed.
03 30
November
2007
Revised methodology: Amendments
expanded applicability to include project
activities where associated gas is vented in
the baseline. Other changes included the
following:
• The term “gas recovered at oil
wells” used in previous versions of
the methodology was changed to
“associated gas.”
• A restriction prohibiting the use of
the methodology for recovered gas
streams used for gas lift was
added, as was a direction to
evaluate project additionality using
a new “Additionality Tool”
developed by UNFCCC.
• Changes were made in the
algorithms for calculation of
project emissions to rely more
heavily on measurements.
• A new limitation was added to
limit changes in the production of
high pressure gas extracted at the
production site.
October 2009 58