PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-PDD) Version 03 - in effect as of: 28 July 2006
CONTENTS
A. General description of project activity
B. Application of a baseline and monitoring methodology
C. Duration of the project activity / Crediting period
D. Environmental impacts
E. Stakeholders’ comments
Annexes
Annex 1: Contact information on participants in the project activity
Annex 2: Information regarding public funding
Annex 3: Baseline information
Annex 4: Monitoring Plan
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SECTION A. General description of project activity
A.1. Title of the project activity:
Ejuara Melaka Composting Project at Ejuara Fertilisers Sdn. Bhd. (Formerly known as Eureka Juara Sdn. Bhd.) Version 5 28/03/2008
A.2. Description of the project activity:
Malaysia is one of the largest palm oil exporter in the world which provides a very important element for the country’s rural economy development; significantly as a source of employment not only in agriculture sector, but also in down stream industries like palm oil mills, local services and support to the plantations.
The palm oil mills processes the Fresh Fruit Bunches (FFB) into the main products Crude Palm Oil (CPO) and palm kernels. In the process, a number of waste streams are produced including solid biomass waste (Empty Fruit Bunches (EFB), mesocarp fibre and shell) and wastewater or Palm Oil Mill Effluent (POME).
The CDM project activity comprises the design of a composting plant to minimize solid waste dumping, especially EFB into landfill. Few palm oil mills in the surrounding vicinity of the composting plant have been identified to supply excess EFB to the composting plant. The annual input capacity of the composting plant is 150,0001 tonnes/a EFB.
Apart from producing compost fertilizer, the project activity avoids formation of methane gas which is considered as a green house gas (GHG) by diverting the high organic content EFB waste from dumping at unmanaged solid waste disposal sites (SWDS) with depth greater than 5 meter which is similar to the landfills (where anaerobic process occurs) to a composting plant (aerobic process). Most SWDS and landfills in Malaysia are poorly controlled sites with no coverage or landfill gas extraction. It is a common practice for mills to dispose EFB waste in SWDS located adjacent to palm oil mills owned by third parties that are not affiliated with this Project’s owners.
The mesocarp fibre and shells wastes are commonly used as fuel source for biomass boilers; producing sufficient thermal heat and generating electricity for overall mill operation; thus does not cause dumping issues. The EFB waste has high moisture content, making it heavy and unsuitable as fuel source for biomass boilers in the mill or long-distance transport as it contains substantial amount of degradable organic carbon (DOC). The high moisture content and carbon- nitrogen ratio of 35-502 is optimum for aerobic composting. As such, composting of EFB waste is an attractive option for resource recovery and environmental improvement.
1 Source of EFB supply shall be available during validation 2 Ir.N.Ravi Menon, ‘Biomass from Palm Oil Industry and Their Utilization Potential’ for PIPOC 2007 by Malaysian Palm Oil Board & Vijaya Subramaniam, Chow Mee Chin & Ma Ah Ngan (n.d.) Energy Database of the Oil Palm, for Palm Oil Engineering Bulletin No.70 by Malaysian Palm Oil Board. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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Earlier, the EFB produced in abundance in mills were generally incinerated or open burned. Since open burning is prohibited by local regulation, EFB is dumped in SWDS to decompose as a disposal option. EFB dumping is avoided by the Project activity and highly demanded compost is generated that combats soil degradation that is a severe problem in palm oil plantations. The project shall adapt Bio-PLUS Activator 3 advanced nitrogen-fixing microbes sourced from Philippines. The project therefore contributes to sustainable development of the agricultural sector in the region and will increase reuse of wastes from palm oil processing.
Through the implementation of the project activity, it contributes to sustainable development in Malaysia in the following ways: a. It reduces air pollution from the anaerobic treatment of the EFB. The emissions to air include methane, volatile fatty acids and hydrogen sulphide (H2S). These emissions contribute to global climate change, acid rain and offensive smell in the local area. b. Through the composting project activity, less land area is needed for the EFB dumping, means that more palm oil trees can be planted to absorb more carbon dioxide from the atmosphere as well as to increase the yield in the oil palm plantation. c. The composting project activity prevents anaerobic decay of the EFB through aerobic treatment by composting and proper soil application of the compost (Avoidance of GHG which was not accounted in project activity). d. It produces organic fertilizer (compost) from biomass waste that will partly replace the existing use of chemical fertilizer and/or increase the harvest of Fresh Fruit Bunches from the palm plantations. The compost is rich in micronutrients and macronutrients. The compost will condition the soil to promote better quality and quantity of yields in agricultural crops. e. The project activity reduces the risk of methane ignited fires at SWDS. f. This initializes a clean technology on solid biomass waste management.
The composting plant will be semi-mechanized, but will still create a large number of jobs, in particular for less educated workers especially in packing and distribution area.
Composting might cause some local environmental impact, mainly odour emission. The composting plant is located in a roofed building in industrial park and odour filters will be applied if necessary using biofilters that need to be replaced twice per year and can contribute to the compost generation.
Item Description Date 1. Date of Board approval starting the implementation of 03 – 10 – 2006 the project 2. Stakeholders Meeting 06 – 11 – 2006 3. On site validation of PDD xx – 04 – 2008 4. Date for start of construction at site 15 – 01 – 2008
3 Eliseo L.Ruiz, Ph.D.(n.d.) “The Bio-PLUS Activator: Its Discovery and Application” PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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5. Date of expected commissioning 01 – 05 – 2008 6. Date of commercial operation 01 – 07 – 2008 Table A.1. : Overall timeline of project implementation
A.3. Project participants:
Name of Party Private and/or public entity(ies) Kindly indicate if the Party involved (*) ((host) project participants (*) (as involved wishes to be indicates a host Party) applicable) considered as project participant (Yes/No) Malaysia, (host) Private entity: No Ejuara Fertilisers Sdn. Bhd. (Formerly known as Eureka Juara Sdn. Bhd. (Project Developer) Private entity: United Kingdom Grey K Environnemental No (Europe) II Ltd (*) In accordance with the CDM modalities and procedures, at the time of making the CDM-PDD public at the stage of validation, a Party involved may or may not have provided its approval. At the time of requesting registration, the approval by the Party(ies) involved is required. Table A.2. : Details of project participants
A.4. Technical description of the project activity:
A.4.1. Location of the project activity:
A.4.1.1. Host Party (ies): Malaysia
A.4.1.2. Region/State/Province etc.: Melaka
A.4.1.3. City/Town/Community etc: Merlimau
A.4.1.4. Detail of physical location, including information allowing the unique identification of this project activity (maximum one page):
The project activity will be implemented at JA 911, Jalan Usaha 5, Fasa 2, Kawasan Perindustrian Merlimau, 77300 Merlimau, Melaka. (N 02° 10’03”, E 102° 25’47”). PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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Figure A.1. Project Site in Malaysia
A.4.2. Category (ies) of project activity:
The avoided emissions from organic waste through composting process fall under the “Scope 13 - Waste handling and disposal”.
A.4.3. Technology to be employed by the project activity:
The technology proposed for the composting plant is proven technology but relatively new to Malaysia. A number of similar plants exist in Malaysia, Philippines and China, but none using PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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EFB waste and advanced microbes to enhance the performance of the organic fertilizer. International standards and good labour conditions will be taken into account, with the processing equipment sourced either locally (with proven records) or from Germany and USA, and the microbes imported from Philippines. Technological or technical constraints are not expected.
The composting plant is designed for a processing capacity of 500 tonnes/day (2008)4. An overall scheme of the process is presented in Figure A.2. as following:
4 One tonne of net input will result in approximately 500 kg of compost. These figures are continuously monitored (see monitoring plan). PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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COLLECTION & TRANSPORTATION OF SOLID WASTE TO THE COMPOSTNG PLANT
Residue removal from the composting plant
AEROBIC COMPOSTING PROCESS
SHREDDING PRE-PROCESSING
Recording of data FILLING OF ORGANIC WASTE PROCESSING
TURNING PROCESSING Temperature & Integrated moisture content quality monitoring control MOISTURE CONTROL PROCESSING
MATURING PROCESSING
SCREENING POST PROCESSING
ENRICHMENT (POST PROCESSING)
PACKAGING AND STORAGE (POST PROCESSING)
MARKETING
Figure A.2. Different steps in the composting process PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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I. Collection and transportation of EFB to mill
The EFB supply to initiate the project activity shall be procured from surrounding mills within 40 – 65 km radius from composting plant.
During the crediting period, the composting plant shall be supplied with total of 150,000 t EFB/annum.
The EFB from trucks shall be transferred from reception area to pre-treatment area using conveyors and front-loaders. The collected EFB will be stored in roofed pre-treatment area prior to composting for approximately 7 days. During this stage, all foreign residues will be removed manually.
II. Overview of Composting Process
Table A.3. summarizes briefly the overall composting process:
Stage Duration Function Equipment/Microbes Shredding 2 days Automatic shredding. EFB will Second cutter (Pre-treatment be shredded to smaller pieces, < Area) 5 inches to accelerate the decomposition process. The lumped EFB will be loosen Hammer mill into smaller fraction. Fine- grained elements of the material handling and transferring will be semi-mechanically. The conveyor system shall be Conveyor used to transport the EFB within the reception area and pre- treatment area. Static Piling 30 days The composting microbes will Bio-PLUS Activator 5 (Composting be added onto windrows. The Advanced Microbes Hall) microbial activity will raise the pile temperature to thermophilic stage (65 – 70 °C) during the first 10 – 15 days. The following days, the temperature will drop to mesophilic stage (45 – 55 °C) enabling the aerobic microorganisms to multiply. This will include the nitrogen fixing bacteria, fungi and other microbes. The roofed composting hall Roofed building
5 Specially designed microbes used to compost EFB produced based on past composting experience on high content organic wastes PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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avoids extensive moisture loss due to sun exposure and from rainwater seeping into windrows Natural aeration will provide aerobic condition in the windrows; oxygen seeping into and breathing out of excess carbon dioxide from the windrows. To ensure the process is fully in Windrow Turner aerobic condition; the windrows Air blower will be turned and aerated using air blower daily. The compost turner will thrust the cutting end into the heap with the hinged paddles open out referred as reverse throw aerating. The automatic turning process will provide improved aeration, homogeneity of the compost, mixing and maintaining optimal moisture content and temperature for microbial activity. The combined action of the Spray Jet temperature increase and the turning of the windrows will lead to substantial water losses through evaporation. Water will be sprayed to add moisture onto windrows. The excess water applied onto windrows/spillage will flow back to concrete drain, collected in a pit and reused (pumped) back to windrows. The composting process ends Roofed building when the temperature drops and remains at ambient, indicating that there are no more microbial activity in the windrows. Maturing 15 days At this stage, compost has Spray Jet (Extended reduced the initial weight by Piling) 50%. It shall be transferred to maturing hall. Suitable humidity in the windrows will be maintained by adding moisture (water) if necessary. The ideal moisture content in final compost is 25%. The excess PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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water applied onto windrows/spillage will flow back to concrete drain, collected in a pit and reused (pumped) back to windrows.. Screening 2 days The fine compost will screened Grading screen to ensure the mesh size of particles are within the grade. Packing, 2 days The fine compost will be packed pH meter c/w storage & and distributed partially to palm temperature distribution oil plantations in within 200 km indicator out radius from composting plant in Dissolved oxygen Peninsular Malaysia and the meter remaining to be shipped to Tawau district in Sabah, East Malaysia Monitoring Throughout of The composting process will be the static piling monitored continuously to & maturing ensure the particle size, period biological activity mixing, aeration, pH, moisture content, temperature, stability and maturity to produce good quality compost (with nutritional balance). Table A.3. : Summary of Process and Equipments Installed to Facilitate the Composting
III. Setting up Composting Plant i. The composting plant set-up is based on the following solid biomass waste inputs:
Total EFB used for composting = 150,000 tEFB/a Total water used for composting = 30,000 m3/y Final compost produced = 75,000 t compost/a
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ii. Composting Area Information6
Size of Each Hall = 200 mL * 30m W
Dimension of Composting Line = 130 mL * 4.3 mW * 2.1 mH = 1173.9 m3 = 1174 m3 130 m Total EFB composted each month = 2.1 m 12,500 tEFB [Note : Bulk density of raw EFB = 0.5 mt/m3 & Bulk density of mature compost = 0.5 mt/m3]
4.3 m Mass of a windrow (EFB = Mature Figure A.3. Specification of a windrow Compost) = Volume of Each Line * bulk density = 1174 m3 * 0.5 mt /m3 = 587 mt compost per windrow
Composting Area Required
Amount of EFB required per month = 12,500 mt / month Composting Duration = 30 days
No. of windrow required = 12,500 mt / Mass of a windrow = 12,500 / 587 = 21.29 windrows Windrows Required ~ 21 windrows/month No. Windrows per-hall = 3 No. of halls required = 7
IV. Composting Technology
The microbes used for composting project are based on Bio-PLUS Activator technology. It’s formulation and application was developed by a world-renown scientist, Dr. Eliseo L. Ruiz.
The Bio-PLUS Activator inoculates mixture of microorganisms which are nutritionally fortified with essential nutrients, substances and cultured to enhance microbial growth and proliferation. The Bio-PLUS Activator shall adapt groups of different functioning types of bacteria’s and fungi’s. All these microorganisms were considered for further adaptation and propagation works relative to the formulation of the Bio-PLUS Activator and eventual production of organic fertilizer.
The inoculated microorganisms from the Bio-PLUS Activator will be mixed onto windrows containing EFB at specific concentration. The mixing process is manual.
6 Refer to layout of Composting Plant PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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During the turning process, the moisture content of the windrows is maintained at 50%. The number of turnings and days of composting is subject to biodegradability of the material to be decomposed.
The composted EFB shall be further allowed to mature/become stable. The maturation period also allows beneficial microbe to proliferate.
The advantages of using the Bio-PLUS Activator in Composting Process inclusive producing compost that has stable putrescible matter, enhances decomposition process, eliminates weeds and pathogenic microorganism, produces uniform and homogenous product, enriches the finished product nutritionally, production of humus and removal of foul odor.
A.4.4. Estimated amount of emission reductions over the chosen crediting period:
The total emission reduction over the crediting period is calculated as follows: Year Annual estimation of emission reductions in tonnes of CO2e Year 1 4,518 Year 2 15,314 Year 3 25,739 Year 4 35,806 Year 5 45,526 Year 6 54,912 Year 7 63,975 Year 8 72,726 Year 9 81,777 Year 10 89,337 Total estimated reductions 489,029 (tonnes of CO2e) Total number of crediting years 10 Annual average over the crediting period of 48,903
estimated reductions (tonnes of CO2e) Table A.4.: Estimated Amount of Emission Reductions from Project Activity
A.4.5. Public funding of the project activity:
There is no public funding in this project. This project will be fully private funded by Grey K Environnemental (Europe) II Ltd and will not involve any public funding or Official Development Assistance (ODA) diversion. SECTION B. Application of a baseline and monitoring methodology:
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B.1. Title and reference of the approved baseline and monitoring methodology applied to the project activity:
This project will apply the following approved baseline and monitoring methodology (AM) and tools:
AM0025: “Avoided emissions from organic waste through alternative waste treatment processes”.
The methodology also draws upon the following applicable tools in the case of this project: • “Tool for the demonstration and assessment of additionality” (Version 4.0);
• “Tool to determine methane emissions avoided from dumping waste at a solid waste disposal site” (Version 2).
B.2. Justification of the choice of the methodology and why it is applicable to the project activity:
AM0025 (Version 10), an approved baseline and monitoring methodology is most applicable and appropriate to this project which applies an alternative waste treatment process; composting as option to avoid methane emissions from organic waste (EFB) disposed in solid waste disposal site (SWDS) in the baseline scenario.
As the baseline scenario is the total atmospheric release of methane and the project activities (as in Section A.2 and A.4.3. above) describes the following situations in regard to composting activities: i.) The project activity involves composting process in aerobic conditions. The composting process using daily produced EFB wastes generated from palm oil processing in a given year which would have otherwise disposed in a SWDS and goes through anaerobic degradation; ii.) The characteristics of the organic waste used in the project activity can be determined to calculate amount methane that would have been generated in the absence of the project activity; iii.) Waste handling in the baseline scenario shows a continuation of current practice of dumping in SWDS. The EFB wastes are currently dumped at SWDS to a depth of more than 5 m. This project will divert these wastes to a modern composting plant utilizing a customized mix of aerobic microbes to accelerate the composting process and yield a high quality compost fertilizer that assists in fixing nitrogen in the soil, thus avoiding N2O emissions and enhancing the growth promotion of the nutrient program. iv.) The produced organic fertilizer (compost) will partly replace the existing use of chemical fertilizer. It also helps to condition the soil to promote better quality and quantity of yields in agricultural crops.
In addition, the applicability under the relevant tools mentioned is also met as demonstrated below: i.) Tool for the demonstration and assessment of additionality (Version 4.0) – The project activity can be assessed using step by step approach to demonstrate additionality.
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B.3. Description of how the sources and gases included in the project boundary:
The project boundary is the composting site where waste is treated. CO2 emissions resulting from fuel combustion, electricity consumption and emissions during the composting process in the operation of the project activity will be accounted as project emissions. Methane emissions during composting process include methane produced from anaerobic pockets in the compost and N2O emissions produced during the composting process.
The flow chart in Figure B.1 shows the main components and connections including system boundaries of the project.
Waste Shredding Landfill Production
Aerobic conversion On site use Electricity from of grid or local electricity generation
On site use Fuel (Diesel) Compost by dozers
Boundary limit End user (Land Application
Figure B.1. Material Movements Within and Without the Project Boundary
7 Please refer to photos of SWDS. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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Source Gas Included? Justification / Explanation The major source of emissions in the CH Included 4 baseline. Emission from N2O emissions are small compared to decomposition of N2O Excluded CH4 emissions from the dumping site. waste at SWDS Exclusion of this gas is conservative. CO2 emissions from the CO2 Excluded decomposition of organic waste are not accounted.
Excluded since no electricity CO Excluded 2 consumed in the baseline scenario. Emissions from Excluded for simplification. This is electricity CH Excluded Baseline 4 conservative. consumption Excluded for simplification. This is N O Excluded 2 conservative. Excluded since no thermal energy CO Excluded 2 consumed in the baseline scenario. Emissions from Excluded for simplification. This is thermal energy CH Excluded 4 conservative. generation Excluded for simplification. This is N O Excluded 2 conservative. May be an important emission source. It includes vehicle used on-site and CO Included 2 auxiliary machineries used to facilitate the composting project. On-site fossil fuel Excluded for simplification. This consumption due to CH Excluded emission source is assumed to be very the project activity 4 small. Excluded for simplification. This N2O Excluded emission source is assumed to be very small. CO2 Included May be an important emission source. Excluded for simplification. This CH Excluded emission source is assumed to be very Emissions from 4
Project Activity small. onsite electricity use Excluded for simplification. This N2O Excluded emission source is assumed to be very small. Direct emissions CO2 emissions from the from the composting CO2 Excluded decomposition of organic waste are processes not accounted..
CH4 Included The composting process may not be completely aerobic; probably PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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anaerobic pockets formed in the windrows. May be an important emission source N O Included 2 for composting activities. Table B.1.: Summary of Gases and Sources included in Project Boundary
B.4. Description of how the baseline scenario is identified and description of the identified baseline scenario:
The latest version of “Tool for the demonstration and assessment of additionality (Version 04”).
The step-wise approach to demonstrate additionality includes: • Identification of alternatives to the project activity; • Investment analysis to determine that the proposed project activity and/or • Barriers analysis; • Common practice analysis
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Figure B.2.: Step by step path in demonstrating that this project is additional8
Step 1: Identification of alternatives to the project activity
To identify all realistic and credible baseline alternatives taking in account relevant policies and current regulations.
Step 1 a. Define alternatives to the project activity:
The project activity involves the composting EFB waste. Alternative scenarios were identified with the following main considerations: • These scenarios must be available options to the project participants; • Current regulation on SWDS management in Malaysia
The alternative scenarios for SWDS management are:
Alternative 1 The proposed composting project using EFB waste undertaken without being registered as a CDM project. Continuation of the current scenario whereby EFB waste is dumped in Alternative 2 SWDS EFB waste used a fuel for biomass energy plant to produce heat and Alternative 3 electricity
Alternative 4 EFB waste disposed to SWDS with methane gas captured from the dumping site and used for electricity generation. EFB waste disposed to SWDS with methane gas captured from the Alternative 5 dumping site supplied to nearby industry for heat generation. EFB waste disposed to SWDS with methane gas captured from the Alternative 6 dumping site is flared Table B.2.: Step 1: Identification of alternatives to the project activity
Outcome of Step 1a: Identified realistic and credible alternative scenario(s) to the project activity
• Alternative 1: Methane production would be avoided by breaking down organic matter through aerobic processes.
• Alternative 2: Currently EFB waste is dumped onto piles or valleys adjacent to the mills where organic matter is broken down through uncontrolled anaerobic processes, releasing all provided methane into the atmosphere.
• Alternative 3: The biomass energy plant is possible for the EFB, but difficult because of the high moisture
8 Source of tool: “Tool for the demonstration and assessment of additionality (Version 04” approved by CDM Executive Board at EB 36. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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content. However, this is a remote area so the energy from the plant does not have a viable market. The RDF option is not used in palm oil sector since there is existing supply of heat energy. In the baseline scenario, the mesocarp fibres and shells are used as base fuel for biomass energy plant in the palm oil mills generating sufficient steam and electricity for the mill consumption.
• Alternative 4: None of the SWDS sites collects the methane gas produced from the dumping site. The amount of waste treated by this project is not enough to establish a standalone biogas – to – energy plant, so this option is not realistic.
• Alternative 5: Most of them mills are located in relatively remote area, surrounded mostly by palm oil plantations. No industry exists near the SWDS that can accept the methane gas and the mill does not have enough organic waste to be able to generate the volume of gas needed to justify collection, treatment, compression and distribution to pipelines to deliver the gas to an end- user.
• Alternative 6: There are no EFB dumping sites in the entire region that capture and flare the gas, unless done under the CDM Program.
Analysis of each of the above alternatives show different difficulty levels in terms of different barriers faced. The only realistic and credible alternatives for this area are the continuing dumping of the EFB wastes in SWDS without any methane recovery or the aerobic composting of the fresh EFB to convert into compost fertilizer, which is the Project Activity.
Sub-step 1b. Consistency with mandatory laws and regulations:
The most relevant laws related to this project activity in Malaysia would include Environmental Quality Act 1974 (Act 127) and subsidiary legislations.
The Environmental Quality Act 1974 is the main legislation governing the environmental management in Malaysia. Under the regulations set under this act, there are no specific requirements outlined to set a SWDS and its management at palm oil mills. Environmental impact assessment is also not required for establishing a SW DS.
Step 2. Investment Analysis
Sub-step 2a: Determine appropriate analysis method
According to the methodology for determination of additionality, if the alternative to the CDM project activity does not include investments of comparable scale to the project, then Option III (of the methodology tool) must be used. As this is the case for the project, Option III is applied here.
The Alternatives presented are not commercially used in the area, or not common in Malaysia, so were not included in the analysis.
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Sub-step 2b: Option III - Application of benchmark analysis
The likelihood of development of this project, as opposed to the continuation of its baseline will be determined by comparing its NPV and IRR with the benchmark of interest rates available to a local investor; i.e., those provided by local banks in the Host Country, which averages .8.8% for year 2008. .
Financial analysis conducted for the Project (see Annex 3 for the input details and Tables showing the results of the Financial Analysis) using assumptions that are the best cases from an investment decision point of view, shows that the Internal Rate of Return of the project without carbon finance is negative.
A financial analysis was undertaken using assumptions that are highly conservative from the point of view of analyzing additionality; i.e., the best case scenario IRR was calculated. It was assumed that the average waste rate at the project site was equal to 500 tonnes per day. Sales of compost product were assumed to be at current market prices (USD$85/ton), so the increased supply would not depress prices. These best case assumptions were inputted into the model and financial analyses to calculate the IRR. In addition, a sensitivity analysis was conducted that increased the selling price by 10% and also on that reduced operating and maintenance costs by 10%. Both cases still resulted in an unattractive or negative IRR, since the cash flow does not offer any positive investment returns for either case.
The base lending rate of 6.8% as quoted by Citibank, Malaysia which was effective from 29th April 2006 and is still valid as at February 20089. . A conservative risk factor of 2% would bring the project rate of return required to 8.8 %. This would be the minimum hurdle rate for the Project.
Sub-step 2c: Calculation and comparison of financial indicators
Table B.3. indicates the financial analysis for the project activity. As shown, the project IRR (without carbon) is negative, lower than the interest rates provided by local banks or government bonds in the Host Country.
Without CER Net Present Value (US $) (3,321) IRR (%) - 7.2 Discount rate 5% Table B.3: Financial results of the project (Alternative 1) without carbon finance. NPV uses 5% discount rate.
Summary of results of project analysis. Details in Annex 3 and will be made available to Validator.
9 Citibank Loans & Deposits. Base Lending Rate : 6.80% (Effective Date : 29 April 2006). Source http://www.citibank.com.my
11 See Project Investment Calculation PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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With CER Net Present Value (US $) (1,711) IRR (%) 11 Discount rate 5% Table B.4: Impact of CDM registration
Assumptions: • Discount rate: related to historical commercial lending fees are approx 6.8 %. In addition a technology risk factor of 2% is taken into account, since the composting on such large scale and the associated technology used is new to the country and to local operators. These two factors add up to a 8.8% discount rate.
• Inflation: based on historical data (Source: World Economic Outlook (WEO)) -- September 2004 -- Statistical Appendix) an average inflation rate of 3% has been assumed. • Project duration: 2008 -2018. • Revenue streams: Taken into account are the expected revenues: sale of compost fertilizer. Investments: Taken into account are the composting plant, equipment and working capital. • Costs: Taken into account are the associated operational expenses (mainly labour, energy costs, microbes, additives, etc.). Details are in Annex 3.
Sub-step 2d: Sensitivity analysis
A sensitivity analysis was conducted by altering the following parameters:
• Increase in project revenue – Compost fertilizer selling price of 10% • Reduction in running costs (Operational and Maintenance costs) of 10% Those parameters were selected as being the most likely to fluctuate over time. Financial analyses were performed altering each of these parameters by 10%, and assessing what the impact on the project IRR would be (Table B.5.). As can be seen, the project IRR remains lower than its alternative even in the case where these parameters change in favour of the project.
Scenario % change IRR (%) NPV $US Original with CER 11 (1,711) Increase in project revenue without 10 11.5 (786) CER Reduction in project costs without 10 (3.3) (3,186) CER Table B.5: Sensitivity analysis
Note: NPV use 5% discount rate
Outcome of Step 2: PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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Without the additional revenue from sales of carbon credits, the project would not proceed. In conclusion, without the revenue from CER sales, the project would not be viable.
Step 3: Barrier analysis
This step is used to determine whether the project activity proposed faces any barriers that: i.) Prevents the implementation of this type of proposed project activity ii.) Do not prevent the implementation of at least one of the alternatives.
Step 3a. Identify barriers that would prevent the implementation of alternative scenarios:
Categories of Barriers Types of Barriers High implementation cost, • Preference of chemical fertilizer compared to organic fertilizer limited returns in Malaysia (Resistance to experiment).The market potential (Investment barriers) and the acceptability of compost fertilizer are yet to be proven in Malaysia, drawing uncertainty on sales price. • High capital investments11 to set-up composting plant • Project financing – insufficient equity, difficult to obtain loans etc.12 • Lack of effective financial incentives13 • Lengthy application process and licensing conditions14 Legislative barriers • No policy and regulation imposed or incentives given to mills to treat solid biomass waste to alternative source e.g. renewable energy or compost. Technological barriers • Lack of technological know-how and suppliers locally15 • No proven success stories • Need of skilled or trained personals to operate and maintain the composting facility. Lack of prevailing practices • Nobody taking the initiatives since there is no legal requirement. • Business cultural – resistance to change16 Table B.6.: Overview of barriers preventing the implementation of alternative scenarios
Sub-step 3b. Eliminate alternative scenarios which are prevented by the identified barriers:
12 ??// 13 See Shigeoka, Hitoshi. (2003). 14 Ministry of Energy, Water and Communication/Malaysia Energy Centre/DANIDA (2004). Study on the Clean Development Mechanism Potential in the Waste Sector. 15 See Ministry of Energy, Water and Communication/Malaysia Energy Centre/DANIDA. (2004). 16 See Ministry of Energy, Water and Communication/Malaysia Energy Centre/DANIDA. (2004). PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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Scenarios Assessment of Barriers This alternative will be mainly prevented by investment, technological and lack of prevailing practices barrier. This alternative will require Alternative 1 significant investment in composting equipments as well as The proposed land/building. composting project using EFB waste The income generated from compost sales is lower and could not pay undertaken without back the investment made to set-up the plant. being registered as a CDM project. There is lack of technological provider for this EFB composting system within Malaysia. This will present itself as a technical barrier. Alternative 2 None of the above identified barriers will prevent this alternative. This Continuation of the is the prevailing practice in most of palm oil mills in Malaysia. current scenario whereby EFB waste is Moreover it is the cheapest and easiest waste disposal alternative to dumped in SWDS palm oil mills. Thus, none of the barriers above prevents this practice. Alternative 3 The biomass energy plant is possible for the EFB, but difficult because EFB waste used a fuel of the high moisture content. It shall incur a high technology biomass for biomass energy boiler causing investment barrier. Moreover situated in a remote area, plant to produce heat the energy produced from the plant does not have a viable market. and electricity Alternative 4 EFB waste disposed to The same barriers identified in Alternative 3 apply to this alternative. SWDS with methane Although extra revenue can be generated by reducing electricity gas captured from the consumption from the grid, the additional investment for additional gas dumping site and used engines and connection to the grid far outweigh the revenue from the for electricity sales to grid. generation. Alternative 5 EFB waste disposed to SWDS with methane The same financial and technical barriers for alternative 3&4 apply to gas captured from the this alternative. Furthermore, there are no demands of heat energy in the dumping site supplied as the biomass energy plant provides sufficient heat for mill processing. to nearby industry for heat generation. Alternative 6 EFB waste disposed to The same financial and technical barriers for alternative 3&4 apply to SWDS with methane this alternative. gas captured from the dumping site is flared Table B.7.: Alternative scenarios which are prevented by the identified barriers
Outcome 3b: The Baseline Scenario
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Based on the above assessments, the only plausible baseline scenario (business-as-usual) identified for this project is the “Continuation of the current scenario current scenario whereby EFB waste is dumped in SWDS.
The project activity (as per-alternative 1 registered as a CDM project activity) would allow the project to be implemented. The revenue from carbon credits will make the project viable and make it possible to attract implementation of high –technology for EFB waste composting in Malaysia.
Step 4. Common Practice Analysis
Sub-step 4a. Analyze other activities similar to the proposed activity
In Malaysia, open dumps (SWDS) and landfills are the most common disposal method for solid waste. Most of these SWDS are not engineered, merely a stock-pile type or dumped into deep valleys/ravine.
To date there has been limited development of composting projects in Host Country. Table B.8. below summarizes the activities that could be identified for compost and organic fertilizer activity in Malaysia.
Sub-step 4b Discuss any similar options that are occurring
There are a number of small composting operations in the area, but none are very profitable and have only sporadic operations. This is the reason that EFB was only open burned a few years ago. The only commercial operation utilizing EFB as the primary composted material is the Asia Green plant in Sedenak, Johor. This plant was operating since 2003 and the company has actively promoted the business as a technology transfer, but has not succeeded in developing any other production plants. This operation is not necessarily a fully aerobic compost plant, and does not appear to have any ability to collect and treat excess water, even though they say that Palm Oil Mill Effluent is also treated in their facility. This plant is also integrated into an existing Palm Oil Mill and the compost is returned to the plantation if it cannot be sold on the market.
The Project does not have integration with a mill, nor is the ability to send the compost that not sold to a plantation. It is, rather, an arms-length operation that must take the risks of acquiring the EFB, producing and marketing the compost fertilizers. The mill owner has the option of buying back all the compost fertilizer at a reduced price, but need not do this if the market price is too low.
The other two major organic fertilizer manufacturers uses mostly chicken dung in one case (Zenxin) and a mixture of animal wastes, seafood processing by products and seaweed (All Cosmos), so are not comparable to using only EFB as the compost material for commercial operations. The compost fertilizers from these two companies command a much higher price than the level that is achievable for the compost from this Project. These products have a niche market, in contrast to the mass market that must be established for large scale production of EFB compost. Table B.8. below identifies composting projects utilizing the CDM Program/without CDM Program to produce these compost products, so the anticipated price for the products will not be a premium.
Outcome of Sub-step 4a & 4b:
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From the common practice analysis, it is concluded that EFB waste dumping is a common practice in palm oil mills in Malaysia.
Most of composting projects that are implemented commercially and in bigger scale with consideration of CDM.
With Sub-steps 4a and 4b satisfied, therefore this project activity is additional.
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Production Company Name Location Current Status Rate (tones/a)
Golden Hope Plantations Berhad (CDM Project) Registered to develop 5 compost plants under the Sabah None (http://www.goldenhope.com) CDM Program. All compost for internal use.
On the process of developing 12 co-composting Peninsular Britetech Sdn Bhd (CDM Project) wastewater and solid biomass plants at individual Malaysia & TBA palm oil mills based on Build, Own and Operate Sabah Scheme (BOO) under the CDM Program.
Company started 2002, patent for compost system MG BioGreen Sdn. Bhd. (CDM Project) Selangor Not mentioned 2004, and trying to sell technology, but the only sale (http://www.microgreen.com.my) seems to be the CDM Project in Sabah.
SEN Tech Sdn. Bhd. Announced a large plant for Selangor in March Selangor None (http://www.sentech.com.my/Home/Profile.asp) 2003. Nothing has transpired since then.
The pilot plant was constructed in Proton City, Tanjong Malim producing organic compost using available organic wastes, i.e. empty fruit bunches (EFB). The company’s novel waste management system was noticed by Bertam Holdings Plc by September 2001. In the year 2002, another listed Asia Green Environment Sdn. Bhd. (CDM Project) Kuala company, Kulim (M) Berhad, one of the major 18,000 (http://www.asiagreen.com.my/corporate_company.htm) Lumpur, plantation holder in Johor, acquired a sizable stake in Asia Green. With this partnership, Asia Green was able to build and operate its very first EFB & POME Waste Management Plant, adjacent to a 30mt/hr palm oil mill, in Sedenak, Johor, under the banner of Kulim. This plant uses open windrowing, no cover, no hardening of surface, so leachate water is not collected and full aerobic composting may not PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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be achieved.
The plant was established in 2001 for a production rate of 30,000 t/a compost using rice husk and molasses. The company has lost money every year OrganicGro Sdn. Bhd. (CDM Project) Perlis 5,000 and was restructured to invest in an EFB compost extension to their plant in 2006, utilizing the CDM Program to increase revenue, as trying to survive from only organic fertilizer revenue was impossible.
Reco Bio-Tech (M) Sdn. Bhd. Selangor, No compost Produced soil conditioner, no compost. (http://www.recobiotech.com)
Produced agricultural chemicals cotton, paper Halex (M) Sdn. Bhd. Kuala None disposable and horticulture, may have some (http://www.halex-group.com/halexm/mmain.htm) Lumpur compost from the disposable paper products.
Farmcochem Sdn. Bhd. It was founded in 1984. The main products which Selangor None (http://www.farmcochem.com/) they produce are paraquat and glyphosate.
It was established in 1999. The factory is sited on 6 acres of land in Pasir Gudang Industrial Estate in Johor, Malaysia and has a built-up area of some 10,000 square metres. Also, there are 2 plants in China. The annual production capacity is around All Cosmos Industries Sdn. Bhd. 300,000 tonnes of bio-organic fertilizer. Through (http://www.allcosmos.com/) About 50,000 Johor, extensive research and development, they have in Malaysia created a series of bio-organic fertilizers that are available in pellet, powder and liquid form. Known as Real Strong bio-organic fertilizer, they are suitable for a broad spectrum of vegetables, fruit trees, oil palm trees, turf and paddy, among others. In September 12, 2002, they announced to invest to set up 2 bio-organic plants. To date, no additional PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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plants are invested or even planned. Stated on website that Cosmos “Operates the only bio-organic fertilizer plant in Malaysia”
Zenxin Agriculture Sdn. Bhd. Fertilizer division was set up in year 2000. The build-up area of the Zenxin Agri-Organic Food (JB) Sdn. Bhd. Selangor Unknown factory is 10000 m2 and it produces organic (http://www.zenxin.com.my/html/company.php) fertilizer from chicken dung using anaerobic process. No more plants were built after 2000.
Kenso Corporation (M) Sdn. Bhd. Selangor, Appears to be only a distributor of agricultural None (http://www.kensocorp.com) Malaysia chemicals and fertilizers.
The oil palm plantation operations are held through PPB Oil Palms Berhad (PPBOP), a 55.7% PPB Group Berhad Kuala subsidiary of PPB. PPBOP currently own a total (http://www.ppbgroup.com/ppb/2_business/22_1palm.ht Lumpur, None stated land bank of 363,238 hectares and nine palm oil ml) Malaysia mills in East Malaysia and Indonesia. Have quoted for supply of compost, but no mention of compost production on their website. Table B.8. Summary of activities that could be identified for compost and organic fertilizer activity in Malaysia.
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B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the registered CDM project activity (assessment and demonstration of additionality):
Based on latest version of “Tool for the demonstration and assessment of additionality (Version 04”), the additionality of this project will be demonstrated. The conclusion from B.4 is that this project is not a baseline scenario.
B.6. Emission reductions:
B.6.1. Explanation of methodological choices:
The following equation based on methodology AM 025 (Version 10) was used to calculate the emissions reductions:
ERy = BE y – PE y – L y
Where: ER y is the emissions reductions in year y (tCO2e)
BE y is the emissions in the baseline scenario in year y (t CO2e)
PE y is the emissions in the project scenario in year y (tCO2e)
L y is the leakage in year y (t CO2e)
If the sum PE y and L y is smaller than 1% of the BE y in the first full operation year of crediting period, the project participants may assume a fixed percentage of 1% for PE y and L y combined for the remaining years of the crediting period.
Determination of Project Emissions (PE y) Based on methodology, the project emissions in year y are:
PE y_ = PE elec, y + PE fuel,on-site, y + PE c, y + PE a, y + PE g, y + PE r, y + PE i, y + PE w, y Where :
PE y is the project emissions during the year y (tCO2e)
PE elec, y is the emissions from electricity consumption on-site due to the project activity in year y (tCO2e)
PE fuel, on-site, y is the emissions on-site due to fuel consumption on-site in year y (tCO2e)
PE c, y is the emissions during the composting process in year y (tCO2e)
PE a, y is the emissions from anaerobic digestion process in year y (tCO2e)
PE r, y is the emissions from the combustion of RDF/stabilized biomass in year y (tCO2e)
PE g, y is the emissions from the gasification process in year y (tCO2e)
PE i, y is the emissions from waste incineration in year y (tCO2e)
PE w, y is the emissions from waste water treatment in year y (tCO2e) Emission from PE a, y + PE g, y + PE r, y + PE i, y + PE w, y
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Not applicable to project activity.
Emission from electricity consumption on-site (PEelec,y) The project activity involves electricity consumption imported from the grid (for operation machinery used in composting). The CO2 emissions are calculated as follows:
PE elec, y = EG PJ, FF, y * CEFelec where:
EG PJ, FF, y is the amount of electricity generated consumed from the grid as a result of project activity, measured using an electricity meter (MWh)
CEFelec is the carbon emissions factor for electricity generation in the project activity (tCO2/MWh)
Emissions from fuel use on-site (PE fuel, on-site, y)
The project activity shall account CO2 emissions from any on-site fuel combustion (other than electricity generation, e.g., vehicles used on-site and fossil-fuel operated auxiliary machineries used by the composting project). The CO2 emissions are calculated as follows:
PE fuel, on-site = Fcons,y * NCVfuel * EF fuel * D fuel where:
PE fuel, on-site is the CO2 emissions due to on-site fuel combustion in year y (tCO2)
Fcons,y is the fuel consumption on site in year y (l)
NCV fuel is the net caloric value of the fuel (MJ/l)
EF fuel is the CO2 emissions factor of the fuel (tCO2/MJ)
D fuel is the density of fuel (kg/l)
Emissions from composting (PE c, y)
The project activity shall account CO2 emissions from N2O emissions and CH4 emissions. The CO2 emissions are calculated as follows:
PE c, y = PE c, N2O, y + PEc, CH4, y where :
PE c, N2O, y is the N2O emissions during the composting process in year y (tCO2e)
PE c, CH4, y is the emissions during the composting process due to methane production through anaerobic conditions in year y (tCO2e)
N2O emissions (PE c, N2O, y)
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During the storage of EFB, as part of the composting process itself, and during the application of 17 compost, N2O emissions might be released. Based upon Schenk and others, a total loss of 42 mg N2O-N per kg composted dry matter can be expected (from which 26.9 mg N2O during the composting process). The dry matter content of compost is around 50 - 65%.
Based on these values, a default emission factor of 0.043 kg N2O per tonne of compost for 18 EFc, N2O, y was used . The emissions of N2O are estimated as follows:
PE c, N2O, y = M compost * EFc, N2O * GWP N2O where:
PE c, N2O, y is the N2O emission from composting in year y (tCO2e)
M compost is the total quantity of compost produced in year y (tonnes/a)
EFc, N2O is the emission factor for N2O emissions from the composting process (tN2O/t compost)
GWP N2O is the Global Warming Potential of nitrous oxide, (tCO2/tN2O)
CH4 emissions (PEc, CH4, y) Not applicable to project activity. The project ensures the process is fully in aerobic condition with the windrows to be turned and aerated using air blower daily. Furthermore the dissolved oxygen monitoring shall further ascertain to maintain 15% content oxygen in the composting windrows.
Determination of Baseline Emissions (BE y) To calculate the baseline emissions project participants shall use the following equation:
BE y = ((MB y – MD reg, y) * GWP CH4 ) + BE EN, y where:
BE y is the baseline emissions in year y (tCO2e)
MB y is the methane produced in the landfill in the absence of the project activity in year y (tCH4)
MD reg, y is methane that would be destroyed in the absence of the project activity in year y (tCH4)
BE EN, y Baseline emissions from generation of energy displaced by the project activity in year y (tCO2e)
GWPCH4 is the Global Warming Potential of methane (default value of 21 used) (tCO2e/ tCH4) Emission from methane produced in the landfill (MB y)
17 Manfred K. Schenk, Stefan Appel, Diemo Daum, ”N2O emissions during composting of organic waste”, Institute of Plant Nutrition University of Hannover, 1997 18 Assuming 650 kg dry matter per ton of compost and 42 mg N2O-N, and given the molecular relation of 44/28 for N2O-N2, an emission factor of 0.043 kg N2O/tonne compost results.
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The amount of methane that is generated each year (MB y) is calculated based on the latest version of the approved “Tool to determined methane emissions avoided from dumping waste at a solid waste disposal site”, considering the following equation:
MB y * GWP CH4 = BE CH4,SWDS,y and; y
–kj(y-x) –kj BE CH4, SWDS, y = ϕ * (1 – f) * GWP CH4 * (1 – OX) * 16* F * DOCf * MCF * Σ Σ A j, x *DOCj* e * (1 – e ) 12 x=1 j Where:
BE CH4, SWDS, y is the methane emissions avoided during the year y from preventing waste disposal at the solid waste disposal site (SWDS) during the period from the start of the project activity to the end of the year, y Φ is the model correction factor to correct for the model-uncertainties f is the fraction of landfill gas captured at landfills in the Country to observe regulations or for safety reasons F is the fraction of methane in the landfill gas
GWPCH4 is the Global Warming Potential of methane OX is the Oxidation Factor, reflecting the amount of the methane from SWDS that is oxidized in the soil or other material covering the waste
DOCj is the per cent of degradable organic carbon (by weight) in the waste type j
DOCf is the fraction of DOC dissimilated to landfill gas MCF is the Methane Correction Factor
Aj, x is the amount of organic waste type j prevented from disposal in the landfill in the year x (tonnes/year)
kj is the decay rate for the waste stream type j j is the waste type distinguished into the specific type of three waste categories x is the year during the crediting period: x runs from the first year of the first crediting period (x = 1) to the year for which emissions are calculated (x = y) y is the year for which methane emissions are calculated
The total EFB collected in the year x is :
Aj, x = A EFB, x
MD reg, y and Adjustment Factor (AF)
In cases where regulatory or contractual requirements do not specify MD reg, y, an Adjustment Factor (AF) shall be used and justified, taking into account the project context. In doing so, the project participant should take into account that some of the methane generated by the landfill or dumping sites may be captured and destroyed to comply with other relevant regulations or contractual requirements, or to address safety and odour concerns.
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MD reg, y = MB y * AF
Where:
AF is Adjustment Factor for MB y (%)
AF is defined as the ratio of the destruction efficiency of the collection and destruction system mandated by regulatory or contractual requirement to that of the collection and destruction system in the project activity.
The ‘Adjustment Factor’ will be revised at the start of each new crediting period taking into account the amount of GHG flaring that occurs as part of common industry practice and/or regulation at that point in the future.
At the present time, most dumping sites and landfills, in Malaysia does not collect biogas, and consequently does not flare it, so the AF is considered zero.
Thus as for project activity MD reg, y is zero.
Determination of BE EN,y To calculate the baseline emissions from generation of energy, the following equation shall be applicable :
BE EN, y = BE elec, y + BE thermal, y where:
BE EN, y Baseline emissions from generation of energy displaced by the project activity in year y (tCO2e)
BE elec, y is the baseline emissions from electricity generated utilizing electricity exported to the grid displacing onsite/offsite fossil fuel captive power plant in year y (tCO2e)
BE thermal, y is the baseline emissions from thermal energy produced in project activity displacing thermal energy from onsite/offsite fossil fueled boiler in year y (tCO2e) In the baseline no electricity or heat was consumed as the composting site does not exist and built specifically to implement project activity. Moreover being a composting project, the project activity will not displace any electricity or heat energy.
Determination of Leakage (L y)
The sources of leakage are CO2 emissions from off-site transportation waste in addition to CH4 and N2O emissions from the residual waste. The following factors contributes to leakage emissions estimated as following : L y = L t, y + L r, y + L a, y Where,
L y is the leakage in year y (t CO2e)
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L t, y is the leakage emissions from increased transport in year y (t CO2e)
L r, y is the leakage emissions from the residual waste from the anerobic digester, the gasifier, the processing/combustion of RDF/stabilized biomass, or compost in case it is disposed of in landfills in year y (t CO2e)
L a, y is the leakage emissions from end use of stabilized biomass in year y (t CO2e)
Determination L r, y and L a, y Not applicable to project activity.
Determination L t, y The project may result in a change in transport emissions. This would occur when the waste is transported from waste collecting points, in the collection area, to the treatment facility, instead of to existing dumping sites. When it is likely that the transportation emissions will increase significantly, such emissions should be incorporated as leakage. In this case, project participants shall document the following data in the CDM-PDD: an overview of collection points from where the waste will be collected, their approximate distance (in km) to the composting site.
For calculations of the emissions, IPCC default values for fuel consumption and emission factors may be used. The CO2 emissions are calculated from the quantity of fuel used and the specific CO2 emission factor of the fuel for vehicles i to n, as follows: n
LT,y = ∑ NO vehicles,i,y * kmi,y * VFcons,i * CVfuel * Dfuel * EFfuel i where :
NO vehicles,i,y is the number of vehicles for transport with similar loading capacity kmi, is the average additional distance traveled by vehicle type i compared to baseline in year y
VFcons,i is the vehicle fuel consumption in litres per kilometre for vehicle type i (l/km)
CVfuel is the Calorific value of the fuel (MJ/Kg or other unit)
Dfuel is the fuel density (kg/l), if necessary EFfuel is the Emission factor of the fuel (tCO2/MJ)
For transport of compost to users, the same formula applies,
B.6.2. Data and parameters that are available at validation:
Data / parameter: Φ Data unit: - Description: Model correction factor to account for model uncertainties Source of data: Tool to determine methane emissions avoided from dumping waste at a solid waste disposal site (Version 02) Value to be applied: 0.9
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Measurement - procedures (if any) Any comment: Oonk et el. (1994) have validated several landfill gas models based on 17 realized landfill gas projects. The mean relative error of multi- phase models was assessed to be 18%. Given the uncertainties associated with the model and in order to estimate emission reductions in a conservative manner, a discount of 10% is applied to the model results.
Data / parameter: OX Data unit: - Description: Oxidation factor (reflecting the amount of methane from SWDS that is oxidized in the soil or other material covering the waste) Source of data: IPCC 2006 Guidelines for National Greenhouse Gas Inventories Value to be applied: 0 (zero) Measurement Use 0.1 for managed solid waste disposal sites that are covered with procedures (if any) oxidizing material such as soil or compost. Use 0 for other types of SWDS. A site visit at the solid waste disposal site shows that no oxidizing material is used for cover of the landfill. Any comment:
Data / parameter: f Data unit: - Description: Fraction of methane captured at the SWDS and flared, combusted or used in other manner Source of data: Malaysian environmental law & regulation Value to be applied: 0 Measurement procedures (if any) Any comment: No regulation/pre-vailing practice to capture and flare/combust/ or used in other manner methane at SWDS
Data / parameter: F Data unit: - Description: Fraction of methane in the SWDS gas (volume fraction) Source of data: IPCC 2006 Guidelines for National Greenhouse Gas Inventories Value to be applied: 0.5 Measurement procedures (if any) Any comment: This factor reflects the fact that some degradable organic carbon does not degrade, or degrades very slowly, under anaerobic conditions in the SWDS. A default value of 0.5 is recommended by IPCC.
Data / parameter: DOCf Data unit: - Description: Fraction of degradable organic carbon (DOC) that can decompose
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Source of data: IPCC 2006 Guidelines for National Greenhouse Gas Inventories Value to be applied: 0.5 Measurement Default value procedures (if any) Any comment:
Data / parameter: MCF Data unit: - Description: Methane correction factor Source of data: IPCC 2006 Guidelines for National Greenhouse Gas Inventories Values to be applied: 0.8 Measurement For unmanaged SWDS with depth greater than 5 m. procedures (if any) Any comment:
Data / parameter: kj Data unit: Description: Decay constant for the Empty Fruit Bunches Source of data: IPCC 2006 Guidelines for National Greenhouse Gas Inventories (adapted from Volume 5, Table 3.3) Values to be applied: 0.035 Measurement Default value for wood waste (slowly degrading) in a wet and procedures (if any) tropical country Any comment: The latest version of the Tool prescribes that EFB must use parameters for wood waste. This has been disputed in clarification requests to the CDM Meth Panel and the project proponent may change the values if the tool is changed
Data / Parameter: DOCj Data unit: Description: Fraction of degradable organic carbon (by weight) in the EFB in wet condition Source of data used: IPCC 2006 Guidelines for National Greenhouse Gas Inventories (adapted from Volume 5, Table 2.4 and 2.5) Value applied: 0.43 Measurement The latest version of the Tool prescribes that EFB must use procedures (if any) parameters for wood waste. This has been disputed in clarification requests to the CDM Meth Panel and the project proponent may change the values if the tool is changed. Any comment:
Data / Parameter: EF diesel Data unit: tCO2e / MJ Description: CO2 emission factor of the diesel Source of data used: IPCC 2006 Guidelines for National Greenhouse Gas Inventories (adapted from Volume 2, Table 3.5.2)
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Value applied: 0.0000741 Measurement procedures (if any) Any comment: With a density of 0.84 t/m3 the EF per litre diesel can be calculated as Density*NVC*EF/1000 = 2.7 kg CO2/litre
Data / Parameter: EF residual fuel oil Data unit: tCO2e / MJ Description: CO2 emission factor of the diesel Source of data used: IPCC 2006 Guidelines for National Greenhouse Gas Inventories (adapted from Volume 2, Table 3.5.2) Value applied: 0.0000774 Measurement procedures (if any) Any comment:
Data / Parameter: EFc,N2O Data unit: tN2O / tones of compost Description: Emission factor for N2O emissions from the composting process Source of data used: Research literature Value applied: 0.000043 Measurement procedures (if any) Any comment: Default value of 0.043 kg-N2O/t-compost, after Schenk et al., 1997. The value itself is highly variable, but reference data shall be used.
Data / Parameter: GWP N20 Data unit: tCO2 /tN2O Description: Global warming potential of nitrous oxide Source of data used: Methodological tool “Estimation of direct nitrous oxide emission from nitrogen fermentation Value applied: 310 Measurement procedures Value of 310 valid for 1st commitment period of Kyoto Protocol (if any) Any comment:
Data / Parameter: GWPCH4 Data unit: tCO2e/tCH4 Description: Global Warming Potential (GWP) of methane, valid for the relevant commitment period Source of data used: Decisions under UNFCCC and the Kyoto Protocol Value applied: 21 Measurement procedures Value of 21 is to be applied for the first commitment period of the (if any) Kyoto Protocol Any comment:
Data / Parameter: NCV diesel
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Data unit: MJ/kg Description: Net calorific value of fuel Source of data used: IPCC 2006 Guidelines for National Greenhouse Gas Inventories Value applied: 42.7 MJ/kg Measurement procedures (if any) Any comment:
Data / Parameter: D diesel Data unit: kg/l Description: Fuel density Source of data used: IPCC 2006 Guidelines for National Greenhouse Gas Inventories Value applied: 0.85 Measurement procedures Default value (if any) Any comment:
Data / Parameter: NCV residual fuel oil Data unit: MJ/kg Description: Net calorific value of fuel Source of data used: IPCC 2006 Guidelines for National Greenhouse Gas Inventories Value applied: 41.50 MJ/kg Measurement procedures (if any) Any comment:
Data / Parameter: D diesel Data unit: kg/l Description: Fuel density Source of data used: IPCC 2006 Guidelines for National Greenhouse Gas Inventories Value applied: 0.85 Measurement procedures Default value (if any) Any comment:
Data / Parameter: AF Data unit: % Description: Adjustment factor for methane destroyed due to regulatory or other requirements Source of data used: Local/national regulation Value applied: 0 Measurement procedures No regulatory applied (if any) Any comment:
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B.6.3. Ex-ante calculation of emission reductions:
Ex-ante calculation of Project Emissions
Emission from electricity consumption on-site (PEelec,y) Table B.9. enlists major machineries operating at the composting project activity. Total Number Operating Electricity Electricity Machinery electrical Diversity of hours consumption consumption Type capacity factor machines (hr/day) (kWh/day) (MWh/year)19 (kW) Second Cutter 2 150 60% 20 1,800 540 Hammer 2 186.5 60% 20 2,238 671 mill/Pulvizer Grading 2 22 60% 12 158.4 48 Screen Conveyor 6 24 60% 20 288 86 System Air Blower 4 30 60% 12 216 65 Turner 4 373 60% 12 2,685.6 806 Lighting etc. 1 lot 2 100% 12 24 7.2 Total 2,223 Table B.9. List of Major Machineries and Electricity Consumption
Hence the estimated electricity consumption is 2,223 MWh/year. This value multiplied by the baseline emission factor (default value of 0.63120 is used) results in a project specific emission of 1,407.26 tonnes of CO2 per year off-site due to its electricity consumption for each composting line.
Emissions from fuel use on-site (PE fuel, on-site, y) Table B.10. enlists vehicles (auxiliary machineries) to facilitate the composting project activity. The type of fuel consumed is diesel.
Diesel Vehicle Number consumption/ Hours of Total Total Type of vehicles vehicle Operation (l/day) (l/yr)21 (l/h) Wheel 2 4 12 96 28,800 Loader Forklift 2 3 12 72 21,600 Total 50,400 Table B.10. List of Major Vehicles and Diesel Consumption
19 Based on 300 days of composting plant operation per-year 20 Based on Local figure extracted from Compared Assessment of Selected Environmental Indicators of Photovoltaic Electricity in Selected OECD Cities and Malaysian Cities 21 Based on 300 days operation/year
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To calculate the CO2 emissions from fuel use on-site :
Parameter Description Value
Fcons,y Diesel consumption on site in year y 50,400 l
CVfuel Caloric value of diesel 42.7 MJ/kg
D fuel Density of fuel 0.85 kg/l
EFfuel CO2 emission factor of diesel 0.0000741 tCO2/MJ
Project emission from diesel consumption PE fuel, on-site, y on-site due to the project activity in the 135.55 tCO2e year,y Table B.11.: Values for emissions calculation related to vehicles used on-site
Multiplying all the above values results in a project specific emission of 135.55 tonnes of CO2 per year from fuel use on-site.
Emissions from composting (PEc,y)
The emissions from composting is contributed by emission of N2O :
Parameter Description Value is the total quantity of compost M 75,000 t/a compost,y produced in year, y Emission factor of N O during 0.0000430 tN O/tcompost EF 2 2 c,N2O composting process in year, y
GWP N2O Global Warming Potential of N2O 0.0000741 tCO2/tN2O
Project emission from N2O during PE 999.75 c,y composting process in year, y Table B.12.: Values for emissions calculation related to composting
Multiplying all the above values results in a project specific emission of 999.75 tonnes of CO2 per year from composting emissions.
Total Project Emissions = 1,407.26 + 135.55 + 999.65 = 2,542.55 tCO2e/y ~ 2,543 tCO2e/y
Ex-ante calculation of Baseline Emissions (BE y) Based on the latest version of the approved “Tool to determined methane emissions avoided from dumping waste at a solid waste disposal site”, considering the following equation:
MB y * GWP CH4 = BE CH4,SWDS,y and;
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y
–kj(y-x) –kj BE CH4, SWDS, y = ϕ * (1 – f) * GWP CH4 * (1 – OX) * 16* F * DOCf * MCF * Σ Σ A j, x *DOCj* e * (1 – e ) 12 x=1 j The baseline emission calculated for the project is based on the following figures. Model correction default ϕ factor 0.9
Fraction of methane f captured at 0 SWDS and flared, combusted or used in other manner OX Oxidation factor 0.00
F Fraction of methane in landfill gas 0.50
Fraction of DOC disassimilated to landfill DOCf gas 0.50
DOCj Fraction of degradable organic carbon (by weight) 0.43
MCF Methane correction factor 0.80
GWP_CH4 Global Warming Potential for methane 21
A j,x Amount of organic waste type j prevented from landfill A EFB,x disposal in the
kj Decay rate for waste stream type j 0.035
Waste type distinguished into the waste j categories (A to D) Type A
is the the year during the crediting period : x runs from x the 1st yr x = 1 of 1st crediting to the year emissions are calculated x = y
is the the year methane emissions are y calculated
Based on the first order decay model and the following yearly input of EFB into landfill22, the baseline emissions are as following :
Year A EFB (t/a) BE SWDS,y (tCO2e)
22 Refer to Baseline calculation sheet for more detailed calculation.
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Year 1 150,000 11,181 Year 2 150,000 21,977 Year 3 150,000 32,403 Year 4 150,000 42,469 Year 5 150,000 52,189 Year 6 150,000 61,575 Year 7 150,000 70,638 Year 8 150,000 79,390 Year 9 150,000 87,840 Year 10 150,000 96,000 Table B.13.: Values for baseline emissions
Ex-ante calculation of Leakages (L y)
Leakages consist of four components, as explained below23: n
LT,y = ∑ NO vehicles,i,y * kmi,y * VFcons,i * CVfuel * Dfuel * EFfuel i
For project activity calculation, the Leakage were calculated based on emissions produced from leakages produced from EFB transportation from mill to compost plant, Compost Distribution by Land and Compost Distribution by Shipment (Water).
The leakage emissions for transport shall be calculated based on: i. Transportation of total 150,000 t/a EFB from various mills using 35-ton trucks to the composting site, the leakages contributed due to EFB transportation is tabulated in table B.14. ii. Compost distribution of total 75,000 t/a by land (using 35-ton truck). A total of 35,000 t/a compost shall be distributed within 200 km radius of composting site in Peninsular Malaysia. The balance 35,000 t/compost shall be shipped to Tawau, Sabah, East Malaysia. For shipment purpose, the land transportation used shall be 35-ton trucks from composting site to Malacca- port and 35-ton trucks from Tawau-port to nearby plantations site. iii. Shipment of compost of total 37,500 t/a using barge to Tawau, Sabah, East Malaysia.
Table B.14 summarizes total emissions due to leakages from the project activity:
Description Parameter Parameter Values used in Calculation
23 Refer to Leakage calculation sheet for more detailed calculation
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EFB NOtruck,y Total number of 35-ton 4,286 transportation truck used for EFB from mill to transportation (trucks) compost plant DT truck,y Total distance travelled by 130 (150,000 tEFB/a) truck from mill to composting site 2-way (km)
VFcons diesel Diesel consumption per 0.333 kilometre of vehicle 24 (ltr.)
Dfuel Density of diesel (kg//ltr.) 0.85
NCVfuel Caloric value of 42.7 diesel25(MJ/kg)
EF diesel Diesel Emission Factor 0.0000741 (tCO2e/MJ) according IPCC
LT EFB,transp.y Leakage from EFB 499.47 transportation from mill to compost plant (tCO2e/y) Compost NOtruck,y Total number of 35-ton 2,000 Distribution by truck used for EFB Land ((70,000 t transportation (trucks) compost/a) DT truck,y Total distance travelled by 400 truck from composting site to Malacca-port & from Tawau-port to nearby plantations site, 2-way (km) VFcons diesel Diesel consumption per 0.333 kilometre of vehicle 26 (ltr.)
Dfuel Density of diesel (kg//ltr.) 0.85
NCVfuel Caloric value of 42.7 diesel27(MJ/kg)
Description Parameter Parameter Values used in Calculation EF diesel Diesel Emission Factor 0.0000741 (tCO2e/MJ) according IPCC
24 University Malaya (2005) “Energy Used in the Transportation Sector of Malaysia” Page 230, htpp://www.eib.org.my 25 IPCC 2006, Volume 2 26 University Malaya (2005) “Energy Used in the Transportation Sector of Malaysia” Page 230, htpp://www.eib.org.my 27 IPCC 2006, Volume 2
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LT compost land, y Leakage from compost 717.19 distribution by land from mill to compost plant (tCO2e/y) Compost NO barge,y Total barge shipments to 15 Distribution by send 2,500 tonnes Barge (Ship) compost/batch (37,500 t DT truck,y Total distance travelled by 5,055.96 compost/a) barge from Melaka-port to Tawau-port 2-way (km)
VFcons diesel Residual Fuel Oil 11.29 consumption (kg/km)28
NCVfuel Caloric value of residual 41.50 fuel oil29(MJ/kg)
EF diesel Diesel Emission Factor 0.0000774 (tCO2e/MJ) according IPCC
LT EFB,transp.y Leakage from EFB 2,904.17 transportation from mill to compost plant (tCO2e/y)
Table B.14.: Values for leakage emissions calculation related to transport of EFB and of compost
Total Leakages = (499.47 + 717.19 + 2,904.17) = 4,120.83 ~ 4,121 tCO2e/y
B.6.4. Summary of the ex-ante estimation of emission reductions:
Year Estimation of Estimation of Estimation of Estimation of project activity baseline leakage overall emission emissions emissions (tonnes of reductions (tonnes of CO2e) (tonnes of CO2e) CO2e) (tonnes of CO2e)
Year 1 2,543 11,181 4,121 4,518 Year 2 2,543 21,977 4,121 15,314 Year 3 2,543 32,403 4,121 25,739 Year 4 2,543 42,469 4,121 35,806 Year 5 2,543 52,189 4,121 45,526 Year 6 2,543 61,575 4,121 54,912 Year 7 2,543 70,638 4,121 63,975 Year 8 2,543 79,390 4,121 72,726
28 IPCC 2006, Volume 2, Table 3.5.6 29 IPCC 2006, Volume 2, Table 3.5.2
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Year 9 2,543 87,840 4,121 81,177 Year 10 2,543 96,000 4,121 89,337 Total (tonnes of 25,426 555,663 41,208 489,029 CO2e) Table B.15. Summary of Emission Reduction
B.7. Application of the monitoring methodology and description of the monitoring plan:
B.7. 1 Data and parameters monitored:
ID No.: 1
Data / Parameter: EG PJ,FF,Y Data unit: MWh Description: Amount of electricity consumed from the grid as a result of the project activity Source of data : Electricity meter Value of data applied 10,864 for the purpose of calculating expected emission reductions in section B.6 Measurement The electicity consumed will be registered continuously through procedures (of any): electricity meter. QA/QC procedures : Electricity meter will be subject to regular (in accordance with stipulation of the meter supplier) maintenance and testing to ensure accuracy. The readings will be double checked by the electricity distribution company. Therefore the uncertainty level of the data is expected to be low. Records of calibration will be kept at site. All monitoring data will be electronically archived for a period of 2 years after crediting period. Any comment: Meter owned and maintained by grid electricity supplier
ID No.: 2
Data / Parameter: CEF elec Data unit: tCO2/MWh Description: Emission factor for the production of electricity in the project activity Source of data : Pusat Tenaga Malaysia; Compared Assessment of Selected Environmental Indicators of Photovoltaic Electricity in Selected OECD Cities and Malaysia Cities Value of data applied 0.63 for the purpose of calculating expected emission reductions in section B.6 Measurement procedures (if any):
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Monitoring frequency : Annually (based in latest PTM assessment reports)
QA/QC procedures : Not applicable. Any comment: Local default value based on figures for gas fired power plants (Page 8) in Peninsular Malaysia
ID No.: 3
Data / Parameter: F cons,y Data unit: liter Description: Fuel consumption on-site during year ‘y’ of the crediting period Source of data to be Purchase invoices used: Value of data applied 50,400 for the purpose of calculating expected emission reductions in Section B.6 Measurement Measurements will be continuous based on the volume of diesel used procedures (of any): by each machinery operation daily. Monitoring frequency : Annually
QA/QC procedures : The amount of fuel will be derived from the paid fuel invoices (administrative obligation). Therefore the uncertainty level of the data is expected to be low. Records of calibration will be kept at site. All monitoring data will be electronically archived for a period of 2 years after crediting period. Any comment:
ID No.: 4
Data / Parameter: M compost, y Data unit: tonnes/y Description: Total quantity of compost produced in year Source of data to be Plant records used: Value of data applied 75,000 for the purpose of calculating expected emission reductions in Section B.6 Measurement Weighing-bridge procedures (of any): Monitoring frequency : Annually QA/QC procedures : Weighbridge is subject to periodic calibration (in accordance with stipulation of the weighbridge supplier). Also cross check with sales of compost. Therefore the uncertainty level of the data is expected to be low. Records of calibration will be kept at site. All monitoring data will be electronically archived for a period of 2 years after crediting period.
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Any comment: The produced compost will be trucked off from site. All trucks leaving site will be weighed. Possible temporary storage of compost will be weighed as well or not used in the back-up calculation.
ID No.: 5
Data / Parameter: MB, y Data unit: tCO2/y Description: Methane produced in the landfill in the absence of the project activity in the year ‘y’ Source of data to be Calculated as per the “Tool to determine methane emissions avoided used: from dumping waste at a solid waste disposal site”.
Value of data applied Crediting Period MB y (tCO2e/y) for the purpose of Year 1 11,181 calculating expected Year 2 21,977 emission reductions in Year 3 32,403 Section B.6 Year 4 42,469 Year 5 52,189 Year 6 61,575 Year 7 70,638 Year 8 79,390 Year 9 87,840 Year 10 96,000 Measurement As per the “Tool to determine methane emissions avoided from procedures (of any): dumping waste at a solid waste disposal site”. Monitoring frequency : As per the “Tool to determine methane emissions avoided from dumping waste at a solid waste disposal site”. QA/QC procedures : As per the “Tool to determine methane emissions avoided from dumping waste at a solid waste disposal site”. Any comment:
ID No.: 5
Data / Parameter: NO truck, EFB, y Data unit: Number Description: Vehicles per carrying capacity of 35 ton truck Source of data to be Counting used: Value of data applied 4,286 for the purpose of calculating expected emission reductions in Section B.6 Measurement Counter should accumulate the number of trucks per carrying capacity procedures (of any): Monitoring frequency : Annually QA/QC procedures : Number of vehicles must match the total amount of procured EFB. Procedures will be checked regularly by DOE. Therefore the uncertainty level of the data is expected to be low. Records of
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calibration will be kept at site. All monitoring data will be electronically archived for a period of 2 years after crediting period. Any comment:
ID No.: 6
Data / Parameter: DT truck,EFB, y Data unit: km Description: Average additional distance traveled by 35 ton truck compared in baseline in year y Source of data to be Estimation based on the average difference of distances from used: collection points to landfill versus distances from collection points to composting site Value of data applied for the purpose of 2-way distance from mill calculating expected Mill*30 to composting site (km) emission reductions in Mill 1 82 Section B.6 Mill 2 130 Mill 3 120 Mill 4 130 Measurement procedures (of any): Monitoring frequency : Annually QA/QC procedures : Assumption to be re-evaluated annually and verified by DOE Any comment:
ID No.: 7
Data / Parameter: NO truck, compost, y Data unit: Number Description: Vehicles per carrying capacity of 35 ton truck Source of data to be Counting used: Value of data applied 1,071 for the purpose of calculating expected emission reductions in Section B.6 Measurement Counter should accumulate the number of trucks per carrying capacity procedures (of any): Monitoring frequency : Annually QA/QC procedures : Number of vehicles must match the total amount of sold compost. Procedures will be checked regularly by DOE. Therefore the uncertainty level of the data is expected to be low. Records of calibration will be kept at site. All monitoring data will be electronically archived for a period of 2 years after crediting period. Any comment:
30 Refer to information sheet on EFB supplying mills and address
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ID No.: 8
Data / Parameter: DT truck, compost, y Data unit: km Description: Average additional distance traveled by 35 ton truck for compost distribution Source of data to be Estimation based on the average compost distribution used: Value of data applied 400 for the purpose of calculating expected emission reductions in Section B.6 Measurement procedures (of any): Monitoring frequency : Annually QA/QC procedures : Assumption to be re-evaluated annually and verified by DOE Any comment:
ID No.: 9
Data / Parameter: NO barge, compost, y Data unit: Number Description: Barge per similar carrying capacity to ship the compost Source of data to be Counting used: Value of data applied 15 for the purpose of calculating expected emission reductions in Section B.6 Measurement procedures (of any): Monitoring frequency : Annually QA/QC procedures : Number of shipments must match the total amount of compost shipped. Procedures will be checked regularly by DOE. Therefore the uncertainty level of the data is expected to be low. Records of calibration will be kept at site. All monitoring data will be electronically archived for a period of 2 years after crediting period. Any comment:
ID No.: 10
Data / Parameter: DT barge , compost, y Data unit: km Description: Average distance traveled by barge. Source of data to be Estimation based on the average compost distribution ratio used: Value of data applied 5,055.96 for the purpose of calculating expected
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ID No.: 11
Data / Parameter: VF cons,diesel Data unit: L/km Description: Vehicle diesel consumption in litres per kilometer for 35 ton truck Source of data to be Fuel consumption record used: Value of data applied 0.333 for the purpose of calculating expected emission reductions in Section B.6 Measurement procedures (of any): Monitoring frequency : Annually QA/QC procedures : Any comment:
ID No.: 12
Data / Parameter: VF cons, residual fuel oil Data unit: Kg/km Description: Residual fuel oil consumption in kg per kilometer for barge Source of data to be used: Value of data applied 11.29 for the purpose of calculating expected emission reductions in Section B.6 Measurement procedures (of any): Monitoring frequency : Annually QA/QC procedures : Any comment: Based on IPCC 2006, Volume 2, Table 3.5.6. Fuel Consumption for General Cargo adapting (9.817 + 0.00143*Volume of compost shipped)
ID No.: 13
Data / Parameter: A EFB,Y Data unit: tonnes/y Description: Amount of EFB prevented from disposal in the landfill in the year x
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Source of data to be Project Participants used:
Value of data applied Year A EFB,x (tonnes/y) for the purpose of Year 1 150,000 calculating expected emission reductions in Year 2 150,000 Section B.6 Year 3 150,000 Year 4 150,000 Year 5 150,000 Year 6 150,000 Year 7 150,000 Year 8 150,000 Year 9 150,000 Year 10 150,000 Measurement Weighbridge procedures (of any): Monitoring frequency : Annually QA/QC procedures : Weighbridge is subject to periodic calibration (in accordance with stipulation of the weighbridge supplier). Therefore the uncertainty level of the data is expected to be low. Records of calibration will be kept at site. All monitoring data will be electronically archived for a period of 2 years after crediting period. Any comment:
ID No.: 14 Data / Parameter: Amount of compost produced Data unit: tons Description: Project proponent shall monitor the amount of compost produced from the composting produced from the composting treatment process Source of data to be Project Site used: Value of data applied 75,000 for the purpose of calculating expected emission reductions in Section B.6 Measurement Sales invoices of the compost should be kept at the project site. They procedures (of any): should contain customer contract details, physical location of delivery, type, amount (in tons) and the use of compost. A list of customers and delivered SD amount should be kept at project site. Monitoring frequency : Weekly QA/QC procedures : Any comment: B.7.2. Description of the monitoring plan:
Refer to Annex 4
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B.8. Date of completion of the application of the baseline study and monitoring methodology and the name of the responsible person(s)/entity(ies)
Date of completion of baseline study: 18/03/2008
Name of person(s)/entity (ies) determining the baseline: Mr. Soeren Varming Ms. Jeyashri Kisna Managing Director CDM Consultant SV Carbon Sdn. Bhd. SV Carbon Sdn. Bhd.
Office: SV Carbon Sdn. Bhd. 609 Block E, Phileo Damansara 1 9 Jalan 16/11 Off Jalan Damansara 46350 Petaling Jaya Selangor, Malaysia
Phone : + (6) 03 7665 0140 Fax : + (6) 03 7665 3799 Hand phone : +(6) 019 262 7970 Email : [email protected] Url : www.svcarbon.com
SECTION C. Duration of the project activity / Crediting period
C.1 Duration of the project activity:
C.1.1. Starting date of the project activity:
The time line of the project is as follows:
• Procurement of Project Site = January 2008 • Start of installation of Equipments/Machineries = April 2008 • Starting of Test Operation = May 2008 • Start of Full-scale Operation of Project Activity = Upon Project Registration
C.1.2. Expected operational lifetime of the project activity: 20 years
C.2 Choice of the crediting period and related information:
C.2.1. Renewable crediting period
C.2.1.1. Starting date of the first crediting period: Not Applicable
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C.2.1.2. Length of the first crediting period: Not Applicable
C.2.2. Fixed crediting period:
C.2.2.1. Starting date: 01/07/2008. The crediting period only starts upon registration of the project.
C.2.2.2. Length: 10 years
SECTION D. Environmental impacts
D.1. Documentation on the analysis of the environmental impacts, including transboundary impacts:
The project involves the implementation and operation of a composting plant in Melaka. It does not use any scarce resources (like water); it doesn’t produce any solid waste nor emissions to water and soil. The (limited number of) vehicles (one dozer and a shared front – end loader) do produce local combustion gases. The main environmental negative component can be the minimal amount of NOx that is an acidifying gas released.
Compost can improve the soil condition and will improve crop production. Compost fertilizer is therefore in demand and contributes to a better environment for the agriculture run-off, as it will be greatly reduced compared to chemical fertilizer use.
The letter to indicate the project does not need environment impact assessment been obtained on 22nd October 2007 and will be available during the Validation.
D.2. If environmental impacts are considered significant by the project participants or the host Party, please provide conclusions and all references to support documentation of an environmental impact assessment undertaken in accordance with the procedures as required by the host Party:
SECTION E. Stakeholders’ comments
E.1. Brief description how comments by local stakeholders have been invited and compiled:
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The Public Forum was held at Dewan Putra 4, MITC Hotel, Melaka, Malaysia on Nov 6, 2006.
E1.1 Official reports announcing a Public Forum of the project in the local newspaper: 1. Oct 23rd, 2006: “NANYANF SIANG PAU”, “Eureka Juara Sdn. Bhd. Public Forum for building organic fertilizer plants” 2. Oct 23rd, 2006: “New Straits Times”, “Public Forum for Clean Development Mechanism (CDM) for Eureka Juara Sdn. Bhd.’s Organic Fertilizer Plant Project” 3. Oct 23rd, 2006: “THE STAR”, “Public Forum for Clean Development Mechanism (CDM) for Eureka Juara Sdn. Bhd.’s Organic Fertilizer Plant Project” 4. Oct 30th, 2006: “NANYANG SIANG PAU”, “Eureka Juara Sdn. Bhd. Public Forum for building organic fertilizer plants” 5. Oct 30th, 2006: “New Straits Times”, “Public Forum for Clean Development Mechanism (CDM) for Eureka Juara Sdn. Bhd.’s Organic Fertilzier Plant Project” 6. Oct 30th, 2006: “THE STAR”, “Public Forum for Clean Development Mechanism (CDM) for Eureka Juara Sdn. Bhd.’s Organic Fertilzier Plant Project”
E1.2 There were 11 participants at the Public Forum. The attendee list is available at validation.
No ORGANIZATION NAME CONTACT 1 Vichitbhan Plantation Co, Ltd Poonphunchai Sanit 662-314-4101-5 (Vichitbhan Group, Thailand) 2 Vichitbhan Plantation Co, Ltd Nuntana T. 662-314-4101-5 (Vichitbhan Group, Thailand) 3 Rajawali Seroja Sdn Bhd Monica Wong 03-78043881 4 Rajawali Seroja Sdn Bhd Lee Mei Wun 03-78043881 5 Kim Chow Communicators Sdn Bhd Kim Chow 019-3373849 6 Pakatan Teknik Sdn Bhd Tai Foot Sik 019-3332019 7 LFGC Corporation Patrick Chew 012-2999599 8 Price WaterHouse Coopers Punudorai 016-2022812 9 Bebas Kekal Sdn Bhd Azlan Yaacob 012-2189903 10 Bebas Kekal Sdn Bhd Lim C. S. 012-2100848 11 Emxis Agroscience Sdn Bhd Lee Ah Kian 019-5708558 12 BioOrganic Lim Hoe Beng 012-3893127 13 Terra Bioplus Corporation Lo Haw Ru 012-3998020 14 Bio-Organic Systems & Services Dr. Eliseo L. Ruiz 0917-5663155 15 PJ Indah Sdn Bhd Steven Tanivill 019-5519934 16 LFGC Corporation Li Yun Jie 012-8629718 17 MIDA (Malaysian Industrial May Lim 03-22673597 Development Authority) 18 MIDA (Malaysian Industrial Ahmad Asfiya 03-22673703 Development Authority)
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19 Nam Bee Co Yeo Kian Huat 012-6061813 20 Majlis Daerah Jasin (Jasin District Hj Ghazale Muhammad 012-6065256 Council) 21 Public (Melaka Tengah) Dr Tay Yew Seng 012-6308633 22 Department of Inland Revenue Gan Tiang Siong 012-3385654 23 KRL Holdings Sdn Bhd Gan Bee Na 012-3091035 24 Public (Melaka Tengah) Kamal Usok 013-2589141 25 Kilang Sawit Bukit Pasir (Bukit Pasir M C Lee 012-6815022 Palm Oil Mill) 26 Public (Kluang) Kong Chang Sang 019-7320366
E.2. Summary of the comments received:
Question 1 Is there any noise pollution from the plant?
Question 2 Will the activity of the plant have any ill effects to the surrounding area in terms of schools, school children, etc? Question 3 Are the microbes used in the fertilizers hazardous to the earth and environment?
Question 4 Will the plant be generating other types of pollution like air, etc.?
Question 5 How about the pathogens in the fertilizers? Will it become harmful?
Question 6 What about the assurances as in the project success like approvals and others?
Question 7 How does the product improve the fertility of the soil?
Question 8 I still can’t digest how GHG reduction is done by this project. How about the GHG through the fossil fuel, electricity used in the plant? And for CDM, the participation of an Annex 1 country is needed?
Question 9 Are there any effluents generated from production?
Question 10 The leachate will be smelly?
Question 11
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If without CDM, is this project viable?
E.3. Report on how due account was taken of any comments received:
For Question 1 The organic fertilizer plant will generate noise through the mechanical operations of the equipments but tolerable in a sense that an open factory will dissipate noise within a 20-30 m radius thus reducing noise pollution surrounding the area.
For Question 2 The activity of the plant is in the vicinity of plantations and chicken farm and it is far from schools thus it doesn’t bear much of an issue but as usual precautionary measures are taken to ensure that the traffic conditions are managed.
For Question 3 The advanced microbes used are environmental friendly and it is not hazardous to the earth.
For Question 4 The process of bio fermentation uses specific nutrients by the microbes and it takes in CO2 and methane breaking it down thus producing Oxygen and Hydrogen and this eliminates the smell.
For Question 5 The microbes are mutated and specifically engineered to be super strained and environmental friendly rather than hazardous. Pathogenic agents exist everywhere (in the EFB, air, etc). Once it starts to compost, pathogens are exterminated because of the high temperatures and only the microbes will exist and continue to work. The fertilizers are guaranteed to generate no pollution to the soil and air.
For Question 6 The project will get the approval from Department of Environment and other relevant authorities like the municipals. The machineries will have the approval from the Department of Health & Safety, Fire & Safety Department (Bomba), local electricity supplier, Tenaga Nasional Berhad. We will comply to all the necessary process for approval. Operation manuals will be used to keep compliance as well.
For Question 7 The use of chemical fertilizers turns soil acidic in a range of pH < 4, the assimilation of nutrients is very minimal and this is true to Malaysia and other ASEAN countries like Thailand, Vietnam. Organic fertilizers rehabilitate the soil increasing it to pH > 6 or neutral, the assimilation of the nutrients increase enabling crops and plants to absorb more nutrients. Yield increases by 20%-40% in oil palm plantations through results with our fertilizers. Lab results and analysis show more nutrient absorption after application of the organic fertilizers.
For Question 8 The project qualifies through adaption of Bio-PLUS Activator technology and imported composting equipments from Annex 1 country. The emission reduction is applied through the converting of the EFB and POME which produces methane into fertilizers and this reduces the GHG. It depends on the biomass being used and all details will be made readily available through
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For Question 9 There will be some leachate as water may be used during the process of composting. If DOE approval for POME usage is not given for the plant, we will only use water for the composting. The leachate will not leak into the ground because it is concrete floor. All leachate or liquid waste will be collected and reuse. The liquid waste will be managed within DOE standards and regulations.
For Question 10 There will be no smell or odour from the spill over leachate and it will be re-routed back for windrows sprinkling system.
For Question 11 This project will not be viable without CDM program. Currently acceptance for organic fertilizers are still low compared to chemical fertilizers. The end user price is around the range of RM900- 950/ton and it is slightly lower compared to chemical fertilizer. With CDM, it helps reduces the price and thus promoting more demand in the future. We hope that this provides a beneficial demand in 2-3 years for the organic fertilizers with CDM bringing down the cost of producing.
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Annex 1
CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY
Project Participates Organization: Ejuara Fertilisers Sdn. Bhd. Street/P.O.Box: B 501, 5th Floor, Kelana Square, Jalan SS7/26, Kelana Jaya Building: City: Petaling Jaya State/Region: Selangor Darul Ehsan Postfix/ZIP: 47301 Country: Malaysia Telephone: 6012-288 3282 FAX: 603-78043882 E-Mail: [email protected] URL: Represented by: Title: Executive Director Salutation: Mr. Last Name: Looi Middle Name: First Name: Jerry Department: Mobile: Direct FAX: Direct tel: Personal E-Mail: [email protected]
Organization: Grey K Environment (Europe) II Ltd. Street/P.O.Box: 100 St. Paul’s Churchyard Building: Juxon House City: London State/Region: Postfix/ZIP: EC4M 8BU Country: United Kingdom Telephone: +44 20 7367 0230 FAX: +44 20 7367 0220 E-Mail: [email protected] URL: Represented by: Sean Harrison Title: Salutation: Last Name: Koltun Middle Name: First Name: Robert Department: Mobile:
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Direct FAX: Direct tel: Personal E-Mail:
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Annex 2
INFORMATION REGARDING PUBLIC FUNDING
This Project has not and will not receive public funding from Annex 1 countries of any kind.
Annex 3
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BASELINE INFORMATION
Baseline emission calculation is shown in section B.6.3
Annex 4
MONITORING INFORMATION
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This section details the steps taken to monitor on a regular basis the GHG emission reductions from the Project. The main components covered within the monitoring plan (MP) are:
1. Parameters to be monitored, and how the data will be collected 2. The equipment to be used in order to carry out monitoring 3. Operational procedures and quality assurance responsibilities 4. Operational management structure
The requirements of this monitoring plan (MP) are the information routinely collected by companies managing industrial compost systems, so internalizing the procedures should be simple and straightforward. If necessary, the MP can be updated and adjusted to meet operational requirements, provided that a Designated Operational Entity approves such modifications during the process of verification.
Monitoring for the Project will begin with the start of operation. The monitoring plan details the actions necessary to record all the variables and factors required by the methodology AM 0025, as detailed in Section B.7.1 of the PDD. All data will be archived electronically, and data will be kept for the full crediting period, plus two years.
Quality Control (QC) and Quality Assurance (QA) Procedures will be available for validation