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Reports of CDM/JI Feasibility Studies: FY2004

Title of the researchProject Study for Cogeneration Using Biomass in Industrial Estate Located in Eastern Coast Thailand
FYFY 2004
Main research organizationHokkaido Electric Power Co., Inc.
Research partner(s)Shimizu Corporation, Hokuden General Engineering Design and Consulting Ltd., Kurita Water Industries Ltd., Amata Corporation PCL, Amata Facility Service Co., Ltd., United Analyst and Engineering Consultant Co., Ltd.
Location of the projectKingdom of Thailand, Chon Buri and Rayon Provinces
Summary of the research report (PDF)200401.pdf(664kb)
Description of the projectBiomass (food wastes, waste paper, etc) is currently emitted from industrial estates in areas along the eastern coast of Thailand. The project aims to separate and collect this biomass at the Amata Nakorn Industrial Estates in Chon Buri Province, with a view to using it as raw materials for conducting methane fermentation in order to treat waste and produce biogas, and to use the collected biogas as fuel for generating power and recovering thermal energy.
As a result, the project will reduce emissions of landfill gas (mainly comprising methane gas) through the landfill disposal of organic waste products, and it will also lead to reduction of CO2 emissions through utilizing alternative energy.
Moreover, in compiling the waste utilization plan, two cases were examined assuming, 1) the current generated amount of waste (Case I: 39 t/day), and 2) the projected amount of waste based on the estimated scale of the industrial estates in 2010 when project profitability can be expected (Case II: 94 t/day).
GHGCH4
Sector of the projectWaste Management
CDM/JICDM
Duration of the project activity/ crediting periodCrediting period: 7 years between 2004~2010 (renewal to be reviewed)
Baseline methodology/additionality- Baseline setting
The baseline shall be business as usual according to the results of barrier analysis as shown below.


- Demonstration of additionality
Since the project (Scenario 5) entails technology that will be used in Thailand for the first time, and the project participants will implement it with the aim of acquiring CERs in spite of the risks of climate, solid waste composition and health environment, etc., the project is additional.
Estimation of GHG emissionsGHG emission reduction in the project is as shown below.

Item
CASEⅠ
CASEⅡ
Reduction in landfill GHG emissions resulting from reduction in organic waste (t-CO2/y)
27,300
79,800
GHG reduction resulting from sale of power (t-CO2/y)
1,100
2,000
Increase in GHG resulting from use of compost(t-CO2/y)
(-) 100
(-) 400
Total
28,300
81,400
Monitoring methodologyMonitoring items in the project are as follows.

Data variable
Data source
Data unit
Recording frequency
Weight of industrial estate waste
Truck scale
t/day
Every day
Weight of organic waste
Scale
t/day
Every day
DOC of organic waste
TOC/
DOC gauge
%
Every day
Generated biomassGas flowmeter
Nm3/day
Every day
Methane gas contentMethane gas analyzer
%
Every day
Sold powerWattmeter
kWh/y
Every month*
Produced compostScale
t/day
Every day
Compost compositionGermination test
%
4 times/year
Composted crops
-
-
4 times/year
Grid emission factor
EGAT
kg-CO2/kWh
Every year

*Continuously measure, and record every week or month.
Environmental impactThe main environmental impacts resulting from project implementation will be improvements in air pollution and greenhouse gases. Moreover, through manufacturing and reusing biogas and compost, the useful life of the landfill disposal site, which is becoming more and more constricted, will be extended. Concerning water pollution too, reduction in the amount of organic waste on the landfill disposal site will contribute to mitigation of the pollution load.
In terms of negative impacts, operation of the gas engine will lead to noise and vibration. However, because the engines to be installed are relatively small, and these will be housed in an enclosure and so on, it will be relatively easy to take countermeasures. Moreover, since the plant construction site is located within an industrial estate, noise and vibration shouldn’t present any problems, providing that levels are within standards.
Issues and tasks for project implementation● Cost effectiveness
○ Initial investment Case I: 1.01 billion yen, Case II: 1.49 billion yen
○ CO2 reduction effect        (Unit: thousand t-CO2,$/t-CO2)


(1$=105yen)
○ IRR (%, after-tax)

● Prospects for actualisation
Although issues remain in terms of the thorough implementation of separation, securing of compost purchasers, and reflecting comments by stakeholders, it is deemed these can be examined and resolved in the project actualisation stage. Concerning state approval, this is somewhat influenced by international trends, however, with the Kyoto Protocol came into effect, it is anticipated the domestic set-up will be established at a relatively early stage.
In this FS, the amount of waste discharged from the industrial estates is less than projected, and the project is not very appealing for investors at the present time (Case I); however, it is proved that if raw materials (waste) can be efficiently collected, the project can be commercially feasible.
Validation
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