|Title of Feasibility Study (FS)||Feasibility Study on CDM Project for Pineapple Waste-to-Energy in Mindanao Island, Philippines|
|Main Implementing Entity||Eight-Japan Engineering Consultants Inc.|
|FS Partner(s)||Del Monte Philippines, Inc., EJ Business Partners Co., Ltd.|
|Location of Project Activity||Philippines (Mindanao Island)|
|Category of Project Activity||Waste Management|
|Targeted GHG||CO2, CH4|
|Duration of Project Activity/ Crediting Period||2011 – 2022/ 2013 - 2022|
|Summary of FS Report||PDF (331KB)|
|Description of Project Activity||Large volume of wastewater with high organic content are continuously generated from the cannery of Del Monte Philippines Inc., (DMPI) in Mindanao, Philippines. Also, large amount of solid pineapple fruit waste (hereafter called as "pineapple pulp"), and solid waste of papaya and other fruits( hereafter called "other fruit pulps") are produced. |
In this project, the methane is captured from the anaerobic fermentation of pineapple pulp (220t/day), other fruit pulps (50t/day), and wastewater (11,000m3/day). In addition, the methane generation from an aerobic wastewater treatment facility is avoided by improvement of overloaded condition This project will capture the methane which will be fed into gas generators to produce electricity.
Power generation capacity is projected at 10MW (6MW using wastewater; 4MW using pulps).
|Methodology to be applied||AMS-I.D. (Grid connected renewable electricity generation), and AMS-III.H. (Methane recovery in wastewater treatment)|
|Baseline Scenario||Approximately 50t/day of the pineapple pulp is used as cattle feed and the remaining pineapple pulp and other fruit pulps (hereafter called as "pulps") are mixed in the soil within the plantation. Thus, it is deemed not used effectively considering that there are alternative uses for these pulps such as for the production of methane (as a fuel source) to run a generator to produce electricity.|
The power requirements of DMPI in its plantation and cannery facility are supplied by a local electric distribution company whose supply in turn is sourced from the national grid. Its wastewater treatment facility is in overload condition.
The baseline scenario is, "the power consumption from the public grid which is substituted by power generation from this project" and "methane generation from the water treatment facility in overload condition". The project set-up will involve anaerobic fermentation of pulps and wastewater and production of biogas containing methane which will then be used as an alternate fuel to generate power. Power generated by this project will be sold to DMPI and the local grid through the local power utility company thereby reducing the use of fossil fuel for power generation. Other benefits of this project include improvement of the wastewater treatment facility where its overload condition is addressed or improved and that the methane produced will be put into better use.
Not only wastewater but the pulps can also be used to generate methane which will be used as an alternative fuel for power generation. There is no other case in the Philippines in which these kinds of biomass are utilized effectively and converted to power.
|Demonstration of Additionality||This project is classified as a small-scale CDM. To demonstrate its additionality, it needs to hurdle one or more investment barriers, the technological barrier, the common practice barrier and other barriers relevant to project implementation.
- Existence of the investment barrier:
In the economic efficiency analysis of this project, great improvement is found in comparing the IRR without CERs profit on sale and IRR with CERs profit on sale at 12 U.S. dollars/tCO2. The potential of this project to be classified as a CDM project is high.
- IRR without CERs profit on the sale = 6.6% (eight years: recovery of investment)
The investment benchmark for this project is determined to be 11.0%, based on the long-term interest rate of the Development Bank of the Philippines. Since the IRR (6.6%) without CERs profit on the sale is less than the benchmark, the feasibility of this project is judged to be low if this is not a CDM project. Otherwise, as shown in the previous section, this project may be feasible if this will become a CDM project and CER sales will be at 12 U.S. dollars/tCO2.
- IRR with CERs profit on the sale = 12.1% (six years: recovery of investment)
- Existence of the technological barrier and the common practice barrier:
This potential CDM project will be the first of its kind in the Philippines where pulps will be used to produce an alternative fuel source for power generation. As such, investment, technological and common practice barriers exist. Thus, the additionality of this project is proven.
|Estimation of GHG Emission Reductions||106,654tCO2/year|
|Monitoring Plan||Based on AMS-I.D and AMS-III.H, a plan which can collect and record required monitoring data synthetically is adopted.|
|Environmental Impact Analysis||According to the standard procedure concerning the environmental impact, this project is classified into a waste power generation project. Since power generation capacity is projected at 6MW using wastewater and 4MW using pulps, both biomass power generation plants do not need enforcement of Environmental Impact Statement (EIS). It will only require submission of an Initial Environmental Examination (IEE) Report for the issuance of Environmental Compliance Certificate (ECC).|
The environmental impacts of the project during its implementation are air pollution coming from the exhaust gas of the engine, plant noise and the dust during the construction stage, among others. However, these can be minimized by doing high level exhaust management and the operation and maintenance of suitable apparatus.
|Project Feasibility||The methane fermentation technology and methane gas electrical power generation technology to be adopted for this project are technically highly feasible, because many proven technologies will be introduced from overseas (from Europe in particular).|
The economic viability of the project should be high for this to be feasible. In the future, as this technology evolves, it is necessary to increase its economic viability by making improvements in various stages and parameters of the project. For example, reduction of initial capital cost, reduction in operating and maintenance expenses, higher electricity price (sales to utilities) and many other parameters. Another important parameter that is worth special mention is the foreign exchange risk. This is especially true considering the repercussions in the instability of the US dollar as demonstrated during the previous monetary crisis that greatly affected the global economy but particularly Asia in 1997.
|"Co-benefits" (i.e. Improvement of Local Environmental Problems)||The implementation of this project will contribute to the following “Co-benefits”.
- Reduction of the chemical oxygen demand (COD) load flowing into the plantation
- Reduction of the COD load flowing into the aerobic wastewater treatment facility in overload
|Contribution to Sustainable Development in Host Country||The implementation of this project will not only lead to the reduction of GHG emission of the host country but also contribute to the reduction in the share of fossil fuel to the power generation mix thereby contribute to the reduction of air pollution as a result of the reduced fossil fuel use, address issues regarding the stability of the local power supply and creation of job opportunities during the construction period and operations period of the fermentation and power plants.|