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Reports of New Mechanisms Feasibility Studies: FY2011

Title of Feasibility Study (FS)New Mechanism Feasibility Study for Development of Castor Seed Industry Cluster in Sri Lanka
FYFY 2011
Main Implementing EntityPEAR Carbon Offset Initiative, Ltd.
FS PartnersUniversity of Wayamba
NPO Agro Biodiversity Communion of Sri Lanka
Coal & Environment Research Laboratory, Idemitsu Kosan Co., Ltd.
Location of Project ActivitySri Lanka
Category of Project ActivityBiomass Utilisation
Summary of FS ReportPDF (364KB)
Description of Project/ ActivityThe project aims to cultivate castors in 13,000ha farmland in the northern part of Eastern State and Northern State, to produce 37,000t/y of biomass pellets.
Case 1 partially replaces coal by mixed-combustion with biomass pellets at Puttalam coal-fired power plant or Sampur coal-fired power plant now being under construction near Trincomalee (replacement of coal). Case 2 constructs a new biomass power plant adjacent to a caster seed oil mill, to supply clean electricity to the local grid (power source replacement with biomass fuels in the grid).
Reference Scenario and Project/ Activity BoundaryThe reference scenario for Case 1 is “business-as-usual”, that is “the continuation of current practice”, where electricity is generated from coal only. The reference scenario for Case 2 is power supply from the existing grid.
The project boundary is “biomass-derived electricity replacing fossil fuel-derived electricity”. Therefore, the boundary covers only the electricity generation from biomass for Case 1, while it covers the whole plant for Case 2.
Monitoring Methods and PlanThe limited cover of boundary releases project participants from monitoring of fossil fuel consumptions in the project, minimizing monitoring requirement for emission reduction calculation.
As for biomass consumptions (t/y), both cases require the measurement of fuel input using weight scales.
Monitoring of NCV for biomass fuels (TJ/t) and CO2 emission factor of replaced fossil fuels is only required for Case 1, while that of the replaced power in the grid (MWh/y) and the grid CO2 emission factor (tCO2/MWh) is only required for Case 2. The replaced power in the grid in Case 2 is the “net power supply to the grid”, calculated as the measured total power generation in the project plant minus the power use for auxiliary equipment.
In addition, Case 1 requires monitoring of vehicle type (t/vehicle), the number and the distance of round trips per year by vehicle type (times/y and km), fuel economy (km/liter), and NCV (TJ/liter) and CO2 (tCO2/TJ) emission factor of the vehicle fuel.
GHG Emissions and ReductionsCase 1: (Coal replacement by biomass)
Reference Emissions: CO2 emissions from coal to be replaced by biomass fuels.
Leakage Emissions: CO2 emissions from the use of grid electricity for pellet production and the vehicle fuel for transportation
ERy= REy – LEy = 61,585−(2,347+1,684)= 57,374 tCO2/y

Case 2: (Power source replacement by biomass in the grid)
Reference Emissions: CO2 emissions from the coal-fired power plant to be replaced by a 10MW biomass fired power plant.
ERy= REy – LEy=41,083 – 0 = 41,083 tCO2/y
MRV System for GHG ReductionsMeasurement: Implement the measurement of parameters and data management to calculate emission reductions. The monitoring requirement is simplified compared with that of CDM methodologies for the relevant project.
Reporting: Like PDD and monitoring report for CDM, ex-ante and ex-post reporting is required. The content of ex-ante report is expected to be equivalent to that of CDM-PDDs, which should include the estimates of the parameters and the estimated emission reductions.
Verification: Verification of monitoring report is required. However, it should not be too strict and time and cost consuming like that for CDM.
Analysis of Environmental, Socioeconomic and other Impacts (including Securement of Environmental Integrity)The project utilizes wasted castor seed residues as biomass fuels to be combusted in a coal-power plant that is well addressing environmental problems or in a newly constructed power plant fueled 100% by biomass. Therefore, it will not increase, or rather decrease, the emission of soot, NOx, and SOx, contributing to the air quality improvement.
Financial PlanningSupport fund from the Japanese government for climate change mitigation for developing countries provided through BOCM, such as yen loans or overseas loans and investment by JICA, can be utilized for micro-finance for castor cultivation, the construction of the oil mill, and the formation of the coordinating company.
Introduction of Japanese TechnologyMixed-combustion technology of coal and biomass
Production technology of sebacic acid
(i.e. Improvement of Local Environmental Problems)
Case 1: (Coal replacement by biomass)
  • SOx emission reduction potential : High Score: 5
  • NOx emission reduction potential : High Score: 3
  • Soot emission reduction potential : High Score: 3
Case 2: (Power source replacement by biomass in the grid)
  • SOx emission reduction potential : High Score: 5
  • NOx emission reduction potential : High Score: 3
  • Soot emission reduction potential : High Score: 3
Contribution to Sustainable Development in Host Country
  • Provide jobs for internally displaced people belonging to BOP500, increasing their farming income as well as promoting re-settlement;
  • Provide brick houses, medical services, child education and electricity;
  • Decrease dependence on coal import, enhance energy security of the non coal-producing country, decrease current account deficit, and mitigate air pollution, and
  • Contribute to the increase of electrified population.

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