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Reports of CDM/JI Feasibility Studies: FY2010

Title of Feasibility Study (FS)Feasibility Study of Achieving CDM Using Electric Power Generated by Waste Disposal Site Gas and Sewage Sludge Treatment Gas in Amoy City in China
FYFY 2010
Main Implementing EntityEJ Business Partners Co., Ltd.
FS Partner(s)Shanghai Weitai Environment Co.,Ltd., Xiamen Perfect New Energy Co.,Ltd., Xiamen Municipal Economic Development Co., Ltd., General Water of Xiamen Sewage Co., Ltd., Eastern Landfill site
Location of Project ActivityChina (Amoy City)
Category of Project ActivityWaste Management
Targeted GHGCO2, CH4
CDM/JICDM
Duration of Project Activity/ Crediting Period2013-2022/ 2013-2022
Summary of FS ReportPDF (344KB)
Description of Project ActivityThis project will produce methane from gas recovered from anaerobic fermentation of sewage sludge discharged in Amoy City in China, and which until now has not been recoverable and usable as a resource, and gas recovered from a landfill site in the eastern part of the city, use the methane to generate electric power, and use waste heat to dry the sludge. The electric power capacity of the project will be 6MW.
Methodology to be appliedThis project will produce methane from gas recovered from anaerobic fermentation of sewage sludge discharged in Amoy City in China, and which until now has not been recoverable and usable as a resource, and gas recovered from a final disposal site, generate electric power using a gas engine powered by the methane, and use waste heat produced by the gas engine to heat sludge digestion tanks.
The baseline methodologies applied will be the existing approved methodologies:
  • ACM0001 "Integrated Methodology for Landfill Gas Project Activities"
  • AMS-I.D "Grid Connected Renewable Electricity Generation"
  • AMS-III.H "Methane Recovery in Wastewater Treatment".
Baseline ScenarioThe base line scenario is "methane is produced from city garbage disposed of at the disposal site", "methane is produced from sewage sludge also disposed of at the disposal site", and power consumption supplied by the grid is replaced by power supplied through this project.
The project scenario is obtaining methane by anaerobic fermentation of sewage sludge and recovery of gas from a disposal site and supplying electric power generated using this methane as fuel to the grid, reducing the use of fossil fuels. And preventing the generation of methane by avoiding disposing of sewage sludge as fill, and using waste heat from a gas engine to dry the sludge.
In China, the use of energy from sewage sludge is not widespread, but rather disposing dewatered sludge as landfill is the commonly used method. It is, therefore, appropriate to set this as the baseline.
Demonstration of AdditionalityThis project is categorized as a large-scale CDM project, so if possible, additionality should be proven by verifying that the project cannot be implemented without measures to deal with existing barriers, which include investment barriers, technological barriers, barriers due to prevailing practice, and other barriers.
There are now technological barriers because at this time, energy is not recovered by sewage sludge digestion at wastewater treatment facilities, making this project the first such case.
The following investment analysis of the investment barrier is performed. The economic efficiency of this project was determined to be potentially high as a CDM project, because a comparison of a case without profits from CERs sale with a case of profits from CERs sale at US$10/tCO2, showed a sharp increase in the IRR.
    • Without CERs credit: IRR = -0.9% (recovery impossible)
    • With CERs credit: IRR = 19.5% (recovered in 6 years)
The benchmark for investment in this project is set at long term interest of 6.0% by the People's Bank of China. Without profits from sales of CERs, it would be impossible to recover the investment, so this project is judged impossible without CDM.
The above proves that there are technological barriers and investment barriers, and also verifies the additionality of this project.
Estimation of GHG Emission Reductions298,610tCO2/year
Monitoring PlanThis project monitors parameters considered necessary to confirm the quantity of reduction of emissions in line with ACM0001, AMS-I.D. and AMS-III.H. The monitoring, which is based on direct measuring of gas consumption and electric power production at each location and electric power generator in the power plant, measures these values using measuring instruments.
Environmental Impact AnalysisThe environmental impact of implementing the project includes atmospheric pollution by fine particles caused by operation of the gas engine, plant noise, and dust during construction, but an environmental impact assessment will be done, and in response, high level exhaust control, monitoring, and maintenance will be carried out.
Project FeasibilityThe sludge digestion 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 efficiency of the project exceeds the benchmark if CER income is earned. So carefully watching international negotiation trends in post-Kyoto Japan and China, we put top priority on treating the emission reduction effects of this project as the economic value of credit etc. In the future, it will be necessary to further lower costs and improve its economic efficiency as an electric power sales project.
"Co-benefits" (i.e. Improvement of Local Environmental Problems)The project deals with sewage sludge disposal and electric power generation, which are particularly serious problems in China, and the implementation of this project can contribute to pollution prevention and waste reduction by using energy from sewage sludge now disposed of in large quantities as landfill and preventing offensive odors caused by its decay.
Contribution to Sustainable Development in Host CountryIn China, national development is accompanied by increasing energy consumption. Because this is also increasing the consumption of fossil fuels, utilizing waste and sludge, which have not been used effectively in the past, as energy, will make a very big contribution to the environment and the economy, and can also contribute to sustainable development by transferring technology from advanced countries.

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