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Reports of New Mechanisms Feasibility Studies: FY2011

Title of Feasibility Study (FS)New Mechanism Feasibility Study for Avoidance of Peat Aerobic Degradation by Peatland Rewetting and Rice Husk-based Power Generation Associated with Rice Production Increase in Jambi Province, Indonesia
FYFY 2011
Main Implementing EntityShimizu Corporation
FS PartnersIndonesia:
Ministry of Public Works, Jambi Provincial Government, East Tanjung Jabung Regency Government, University of Jambi, Sriwijaya University
Japan:
Geosphere Environmental Technology Corporation, Sakate Corporation, Polytech Add, Inc., University of Tokyo Institute of Industrial Science, Deltares
Location of Project ActivityIndonesia
Category of Project ActivityREDD+, and Biomass Utilisation
Summary of FS ReportPDF (1.5MB)
Description of Project/ ActivityProject Site:
Approximately 10,000 ha of irrigated land in the regency of East Tanjung Jabung in Jambi, Sumatra

Project Content:
    - Restoration of the water table in the peatland by means of upgrade/construction of water gates and improved management of existing ones to inhibit aerobic decomposition of peat and reduce carbon dioxide emissions
    - Increasing of rice production through raising of the water table, thereby contributing to sustainable development with major benefits for the host region
    - Supply of electric power to non-electrified areas by means of biomass power generation using rice husks, thereby helping to raise rural living standards
Reference Scenario and Project/ Activity Boundary"Business as usual" (BaU) is adopted as the reference scenario on the basis that non-conservation of peatland will continue if the project is not implemented.
The project boundary is the hydrologically and administratively distinct delta formed between the Batang Hari and Berbak Rivers.
Monitoring Methods and PlanReference level measuring points will be established on the peatland to measure water levels, peat settlement, etc. in order to determine reference emissions. The reduction in emissions will be determined from the difference between the rise of the water table where the project is implemented and emissions calculated from peat settlement. Hydrologically modeled data will be interpolated with the measuring point data to determine the average water level.
GHG Emissions and Reductions(1) Reduction potential at the site
    The reduction potential of the 10,000 ha assuming a 0.5 m rise in the water table is 345,000 tCO2e/y.
(2) Reduction potential in Indonesia as a whole
    Estimating the area of irrigated peatland located in tidal areas in the host country to be approximately 280,000 ha, the reduction potential is 280,000 ha x 34.5 tCO2/y = approximately 9,700,000 tCO2/y.
MRV System for GHG ReductionsThe above CO2 emissions have to be measured by dividing the site into a number of hydrological distinguishable plots of terrain that may be regarded as having a uniform average water table, and then aggregating the measurements for each of these units to determine emissions from the approximately 10,000 ha site as a whole. This will be achieved by the following process:
    1) Topography, weather conditions, and water level are measured at representative points around the site.

    2) Land-observation and weather satellite data on the site are obtained.

    3) A GIS database is created containing information on the conditions for each plot scale by means of comparison and correction of the above data.

    4) Water level fluctuations across the site as a whole are calculated mathematically using the hydrological model in order to determine the average water level increase (ΔGWT) in each plot.

    5) The emission reduction in each plot is calculated from ΔGWT and the resulting total treated as the reduction for the site as a whole.

    6) Carbon biomass is assessed from the carbon measurements and settlement measurements taken at the representative points in order to confirm the calculated emission reduction in each plot.

    7) Following the above process, reliable emission reductions can then be reported and verified.
Analysis of Environmental, Socioeconomic and other Impacts (including Securement of Environmental Integrity)The purpose of the project activities is to raise the water table above its current level by introducing water level management so as to restore water levels to something approaching what they were prior to development. As conditions will therefore more closely resemble the original natural conditions, there will be hardly any negative impact on the environment, including ecosystems.
Financial PlanningThe project is estimated to require an initial investment of approximately 900 million and incur annual running costs of \70 million. Financing is likely to require not only private finance premised on revenue from the sale of credits, but also funding from sources including direct injection of public funds by the Japanese government and injection of funds by the Indonesian government covered by lending received by it. The cost of the latter should be countable as GHG mitigation by NAMA by the Indonesian government.
Introduction of Japanese TechnologyThe Japanese technologies that might be used in the project include water system management, monitoring technologies and biomass (rice husk) power generation technologies.

Japan's experience gives it an advantage in water/monitoring system technologies (including hydrological modeling) and rice husk gasification power plants. Implementation of the project by Japanese firms is not expected to require special measures to encourage adoption of Japanese technologies. Development of MRV methods in a manner that makes use of advantages of Japanese technologies would, however, serve to encourage their use.
"Co-benefits"
(i.e. Improvement of Local Environmental Problems)
In light of empirical evidence indicating that virtually no fires occur provided that water levels can be kept within 50 cm of the surface by means of water table management, the project activities can help prevent air pollution if implemented in areas where fires occur.
Contribution to Sustainable Development in Host CountrySustained water level management on existing farmland not previously subject to such management is highly likely to produce increased rice yields per unit of land area, thereby contributing to increased food production and improvements in rural living standards.

Supplying electricity to non-electrified regions by means of rice husk power generation should raise rural living standards and at the same time increase soil fertility and raise productivity through use of burned rice husk ash as a soil stabilizer.

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