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Reports of CDM/JI Feasibility Studies: FY2006

Title of the researchFeasibility Study of the Landfill Methane Gas Utilization Project in Semarang, Indonesia
FYFY 2006
Main research orgnisationThe Chugoku Electric Power Co., Inc.
Research partner(s)Shimizu Corporation, BPPT, Municipality of Semarang City
Location of the projectIndonesia (Central Java)
Summary of the research report (PDF)Summary_ChugokuE.pdf(PDF 147KB)
Description of the projectThis project centers on the Jatibarang landfill waste disposal site, located in Semarang, the capital city of Central Java province in Indonesia. At this site, landfill gas (LFG) that is created by fermenting organic material will be collected and supplied as fuel to gas engine power generation facilities and thereby suppress the release of methane gas (a contributing factor of the greenhouse effect) into the atmosphere. Additionally, this project seeks to substitute the electric power system in order to reduce the amount of CO2 emitted by thermal power plants.
GHGCO2, CH4
Sector of the projectWaste Management
CDM/JICDM
Duration of the project activity/ crediting period2008-2022 /
2008-2017
Baseline methodology/additionality・Baseline methodology
Currently, there are no established laws in Indonesia that require landfill waste disposal sites to collect LFG during active operation or after closure, and there are no actual examples of other Indonesian landfill waste disposal sites that utilize LFG. The procedures for the closure of landfill waste disposal sites in Indonesia basically involves only the covering of the waste with soil and no other specialized treatment. For these reasons, the status quo scenario in which LFG is not collected at the Jatibarang landfill waste disposal site but rather is released into the atmosphere has been established as the baseline.
・Additionality
The “Proof of Additionality/Tools for Evaluation” approved by the CDM Executive Board has been applied to this study and proof of additionality has been achieved. Since this project presents an IRR with a weak 2% in which no CER income is expected, there is no attractiveness for investment and practicality is low.
Estimation of GHG emissionsThe estimated reduction of GHG emission is 605,729 tons of CO2 for the credit period (2008 to 2017) according to the calculations using premised conditions attained from the results of the study carried out according to consolidated methodology ACM0001.
Monitoring methodologyDue to the fact that consolidated methodology ACM0001 is used as the baseline methodology for this project then the monitoring methodology must be used in conjunction with such baseline methodology. For this reason, consolidated methodology ACM0001 shall be applied for the monitoring methodology of this project. Accordingly, the monitoring items shall be established according to consolidated methodology ACM001.
Environmental impactThis project is expected to be effective in improving the environment in aspects related to sanitation, ecology and disaster prevention as it will suppress odors, reduce insects such as flies, prevent animal communities (birds, etc.) from forming, prevent embankments from collapsing among other positive effects.
Additionally, while the gas engines introduced by this project produce exhaust gas, technology of developed countries to suppress SOx and NOx emissions will be adopted in order to reduce the environmental impact on the atmosphere. Soundproof covers and vibration-proofing bases shall be installed as measures against noise and vibration caused by the engines, blowers and other components.
Issues and tasks for project implementationPaperwork regarding registration of this project with the CDM Executive Board is being prepared with a target date of September 2007, and construction is scheduled to be launched in the second half of 2007 with flare operation due to be initiated in the first half of 2008. After that the emission status of LFG will be assessed in order to plan for the soonest possible introduction of gas engine power generation facilities.
If the investing country from a cost-benefit performance standpoint views the value of this project, it appears to be at a level that will permit the project to proceed as a CDM project. However, the following risks and challenges in regards to the tangible operation of the project exist, and, with the mutual acknowledgement together with the counterparts, their future resolution in a manner that provides success to both parties.
  • Risk of landfill gas emissions amount
  • Partner-related risks
  • Completion Risk of Construction works
  • Risk of fluctuation in electricity per unit costs based on long-term electricity sales contract
  • Risks arising from differences in laws/tax practices between the two countries
  • Risks related to the system after the secondary commitment period
  • Challenges regarding implementation of a CDM project in Indonesia
*Effect of planned compost project at Jatibarang landfill waste disposal site

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