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Reports of CDM/JI Feasibility Studies: FY2006

Title of the researchProduction, Sale and Use of Philippine Sunflower Biodiesel as a CDM Project: a Feasibility Study
FYFY 2006
Main research orgnisationSun Care Fuels Corporation
Research partner(s)University of Tsukuba, Climate Expert、HAVILAH BIODYNAMIC FARM SYSTEMS, INC., CENTRAL LUZON STATE UNIVERSITY
Location of the projectPhilippines (Central Luzon)
Summary of the research report (PDF)Summary_SunCare.pdf(PDF 405KB)
Description of the projectThis project is to contribute to the reduction of GHG emissions in the Republic of the Philippines though planting sunflower as a project biomass feedstock in the Central Luzon region, making sunflower seed oil, producing BDF (38,000 t/yr) at the Subic Special Economic and Freeport Zone , blending it with petrodiesel oil in Manila City, selling as B1 (volume ratio 1:99 of BDF and petrodiesel) in Metro Manila, and as a result displacing fossil fuel by biomass fuel.
GHGCO2
Sector of the projectBiomass Utilisation
CDM/JICDM
Duration of the project activity/ crediting period7years/
25years
Baseline methodology/additionalitySun Care Fuels Corporation and Mr. Matsuo of Climate Experts have written and submitted a new baseline and monitoring methodology NM0129 "Generalized baseline methodology for transporation Bio-Fuel production project with Life-Cycle-Assessment" to the CDM Executive Board on July 2005.
Description of how the baseline scenario is identified and description of the identified baseline scenario:
As the baseline scenario of Stage 2 [Bio-Fuel production] is Option 2-1 Continuation of current practice, the baseline scenarios of stage 1 and 3 are also the continuation of current practices.

Additionality
(Step 2 of the Additionality Tool
The calculation of IRR shows that IRR is around 5.51% (with tax) without CER revenue. The hurdle rate for investment decision-making by SCF Philippines is 15%.. Therefore, it concludes that the project is not an economically attractive course of action.

IRR (without CER revenues)
5.51%
IRR (with CER revenues)
18.4%

Step 3 of the Additionality Tool
Although BDF from coconuts are produced in the Philippines, there is no BDF made from sunflower seeds. This means the project case is the 斗ochfirst of its kind罵och in Philippines and the barrier due to prevailing practice exists.

Common Practice Analysis (Step 4 of the Additionality Tool)
Although penetration of BDF produced from coconuts is about 1%, as mentioned above, penetration of BDF produced from sunflower seeds is almost 0 % in Philippines at the time of PDD preparation. Therefore, it does not need to explain the barriers anymore. (Evidences are to be prepared)
Estimation of GHG emissions
tonnes of CO2e
2008
2009
2010
2011
2012
2013
2014
Total
2,894
14,197
65,347
69,075
69,075
69,075
69,075
358,738
Total number of crediting years
7 years
Annual Average over the Crediting Period of Estimated Reductions
51,248
Monitoring methodologyBDF manufacturing plant
FPBDF,y:BDF produced [kL/yr ]
FCBDF,y:BDF sold and/or consumed by the specific consumers or in domestic market [kL/yr ]
DENBDF,y :BDF density [ton/m3]
NCVBDF,y :Thermal content of BDF [TJ/Gg = MJ/kg]
FCPHFO,y:Heavy Fuel Oil combusted at the BDF production factory [ton/yr]
ECPBDF,y:Electricity consumption at the plant [MWh/y]
FSMe,y: Electricity consumption at the plant [kL/yr ]

The sunflower plantation
WSF,y:Sunflower seeds as feedstock [ton/yr]
Afield,y: Area of the project sunflower fields[ha]
Yy:Yield of sunflower seeds [ton/ha]
WSN,y :Synthetic fertilizer applied per area [kg/ha/yr]
Fracremoved,y:Fraction of above-ground residues of crop removed annually for purposes such as feed, bedding and construction.[No dimension]
Aburnt,y:Area burnt [ha]
Environmental impactThe BDF production facility is planned to be constructed at the Subic Special Economic and Freeport Zone where it is already prepared as an industrial zone, i.e., there is no need for deforestation neither for the use of existing farmlands.
Raw glycerin produced as a by-product of the BDF production is sold to chemical companies after refining, and does not flow out from the production facility and has no negative environmental impact.
The wastewater from the BDF washing process contains a high density of organic matters.
Common technology for waste water treatment such as lagoon is sufficient to satisfy the requirements of regulation.

Therefore, the impact on environment and ecosystem is minimal.
Issues and tasks for project implementationEstablish Sun Care Fuels Philippines in 2007.
Explore sunflower cultivation sites.

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