PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03
CDM – Executive Board
CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) Version 03 - in effect as of: 22 December 2006
CONTENTS
A. General description of the small scale 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 proposed small scale project activity
Annex 2: Information regarding public funding
Annex 3: Baseline information
Annex 4: Monitoring Information
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Revision history of this document
Version Date Description and reason of revision Number 01 21 January 2003 Initial adoption
02 8 July 2005 The Board agreed to revise the CDM SSC PDD to reflect guidance and clarifications provided by the Board since version 01 of this document. As a consequence, the guidelines for completing CDM SSC PDD have been revised accordingly to version 2. The latest version can be found at
03 22 Dec 2006 The Board agreed to revise the CDM project design document for small-scale activities (CDM-SSC-PDD), taking into account CDM-PDD and CDM-NM.
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SECTION A. General description of small-scale project activity
A.1 Title of the small-scale project activity:
Composting of solid biomass waste separated from the Palm Oil Mill Effluent (POME) through the use of AVC Sludge Dewatering System at Taclico Company Sdn. Bhd. Version 01.1 01/10/2007
A.2. Description of the small-scale project activity:
Malaysia is the largest palm oil exporter in the world with a total 4.3 million hectares of palm oil plantations and around 400 palm oil mills spread over the country. The palm oil sector provides a very important element in the rural economy of Malaysia by providing a very significant source of employment – not only in agriculture, but also in down stream industries like mills, local services and support to the plantations and mills as well as providing the local source of economic development especially in those remote and rural areas.
The palm oil mills process 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, mesocarp fibre and shell) and waste water or Palm Oil Mill Effluent (POME).
The POME stems from the sterilizer condensate during the sterilisation of the FFB and hot water for dilution. Further, waste water stems from the juice squeezed from the empty fruit bunch. For every tonne of FFB processed at the mill, approximately 0.6 – 0.8 m3 of POME is produced. The POME has a high content of organic matter with levels of Chemical Oxygen Demand (COD) of 50,000-70,000 ppm on average and in some mills the COD could be as high as 100,000ppm. Conventionally the POME is treated in an open lagoon system using anaerobic and facultative ponds. Methane is formed during the anaerobic conditions in the ponds and emitted directly to the atmosphere.
Taclico Company palm oil mill has processed 150,000 – 190,000 tonnes of fresh fruit bunch (FFB) per year over the last three years, generating approximately 0.6 m3 of POME per-tonne of FFB processed. Thus, an average of 105,000 m3 of wastewater is produced per-year. The wastewater from mill is treated through the conventional ponding system including mixing ponds, anaerobic ponds, facultative pond, aeration pond and settling ponds. With regular desludging of the pond system and sufficient retention period, the treated water complies with the host country environment requirements.
The CDM project activity will replace the existing anaerobic ponds with a mechanical separation of the organic material from the POME. The POME will be separated into a water fraction and a sludge fraction with the sludge containing more than 90% of the organic material.
The sludge fraction will be transferred to a compost site at the palm oil mill where it will be treated aerobically together with a smaller amount of solid biomass waste – typically mesocarp fibre or shredded Empty Fruit Bunch (EFB) Fibres – from the palm oil mill. The compost will be utilised as fertiliser in the nearby palm oil plantations.
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The treated water will have a low content of organic material and will be treated in the existing aerobic ponding system (facultative, aeration and settling ponds) at the palm oil mill before discharged for land disposal.
The AVC Sludge Dewatering System is a proven technology from Denmark with many references for effective sewerage treatment of high organic loading effluents. In Malaysia, Brite-Tech Ventures had set- up AVC Sludge Dewatering System pilot plant for POME treatment.
Brite-Tech Ventures provides the investments for the implementation of AVC Sludge Dewatering System and also owns and operates the project activity during the crediting period. This means that the operation will be coordinated with other similar projects implemented by Brite-Tech Ventures Sdn. Bhd. The operation will thus be more consistent and with the support of experts in operating the AVC system.
Through the implementation of the project activity, the AVC Sludge Dewatering System will contribute to sustainable development in the following ways: a. It reduces air pollution from the anaerobic treatment of the POME. The emissions to air include methane, volatile fatty acids and hydrogen sulphide (H2S). These emissions contributes to global climate change, acid rain and offensive smell in the local area. b. It reduces water pollution from the POME as the AVC Sludge Dewatering System will provide better, controlled and more efficient process for removal of the organic content of the POME. c. Through the use of the AVC System, less land area is needed for the open lagoons and this 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. d. It creates new employment for managing effluent treatment and composting plant. e. It contributes to the transfer of technology based on Danish experience to be implemented in palm oil mills in Malaysia and other countries. f. It produces organic fertilizer (compost) from dewatered sludge from POME treatment and 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 overall timeline of project implementations will be as follows:
Item Description Date
1. Date of signing an Term-sheet with the buyer 30 - 09 - 2007
2. Date of Board approval starting the implementation of 27 - 04 - 2007 the project
3. Stakeholder meeting 16 – 08 - 2007 4. On site validation of PDD xx – xx – 200x 5. Date for start of construction at site xx – xx – 200x 6. Date of expected commissioning xx – xx – 200x 7. Date of commercial operation xx – xx – 200x
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Table A.1. : Overall timeline of project implementation A.3. Project participants:
Name of Party involved Private and/or public entity(ies) project Kindly indicate if the Party (*) ((host) indicates a host participants (*) involved wishes to be Party) (as applicable) considered as project participant (Yes/No) Malaysia, (host) Private entity: No Brite-Tech Ventures Sdn. Bhd. (Project Developer) Hungary Private entity: No Vertis Environmental Finance Zrt. (*) 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
Vertis Environmental Finance is an investment and financial advisory firm specialized in emissions trading and environmental markets. The Company has headquarters is in Budapest, Hungary, and it has offices in the Czech Republic and Poland. Vertis has concentrated on emissions trading in Central and Eastern Europe since 2001 and was one of the first companies to execute Joint Implementation transactions, broker deals in the EU Emission Trading Scheme, and sell VERs in this region. The Company is privately owned and the management team comprises professionals with international experience in investment banking, asset management, risk management, sales and engineering.
The joint venture between Brite-Tech Group and Aquakimia Sdn. Bhd. establishes Brite-Tech Ventures Sdn. Bhd., hereafter referred to as „project developer‟. Brite-Tech Ventures is the provider of integrated water purification and wastewater treatment solution “Simon Moss AVC Dewatering System” for the palm oil industry. The new technology offers palm oil mills with a new solution to treat POME through a new and innovative concept in contrast to the conventional open lagoon/pond system.
Brite-Tech Group is listed under the nation‟s stock exchange market (Mesdaq Market of Bursa Malaysia Securities Berhad) since year 2002. Established in collaboration of twelve subsidiaries, Brite-Tech Group acts as one-stop centre for water and wastewater treatment by providing its expert assistance in the analytical testing, formulated chemical products, overall system, equipment and services to provide cost- effective solution for its customers.
Aquakimia Sdn. Bhd. was founded in 1989 and has vast experience in Process Equipment and Water Treatment. Aquakimia expertise in turnkey projects; establishing raw water, process water, ultrapure water and wastewater treatment systems including chemicals and equipment supply services throughout the South-east Asia region.
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Brite-Tech Ventures provides the investments for implementation of AVC Sludge Dewatering System and also owns and operates the project activity during the crediting period. Brite-Tech Ventures also have the right to handle the carbon assets from the project activity. This means that the palm oil mill where the project is implemented is not a project participant in relation to the UNFCCC or other parties.
A.4. Technical description of the small-scale project activity:
A.4.1. Location of the small-scale project activity:
A.4.1.1. Host Party (ies): Malaysia
A.4.1.2. Region/State/Province etc.: Kedah,
A.4.1.3. City/Town/Community etc: Padang Serai
A.4.1.4. Details of physical location, including information allowing the unique identification of this small-scale project activity: The project activity will be implemented at Taclico Oil Palm Mill, Lot No. 20, 21 & 29, Mukim Padang Meha, 09400 Padang Serai, Kedah, Northern Peninsular Malaysia(5°30‟ 100°37‟).
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Figure A.1.: Location map of the project site
A.4.2. Type and category (ies) and technology/measure of the small-scale project activity:
The project comes under Type III.F – Avoidance of methane production from biomass decay through composting as per Appendix B of the simplified modalities and procedures for small-scale CDM project activities (version 05).
According to Annex A of the Kyoto Protocol, this project fits in Sectoral Scope 13: Waste handling and disposal category.
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The CDM project activity will replace the existing anaerobic ponds with a mechanical separation of the solids and organic material from the water. The sludge from the process will be composted together with solid biomass waste from the palm oil mill. The treated water will be polished through the existing aerobic ponding system (facultative, aeration and settling ponds) to comply with the environmental standards. Figure A.2. gives an overview of the activities in the project activity and it is described in more details as below.
Flocculants
POME AVC Sludge Dewatering Unit Inline Mixer
Pre- treated POME
Sludge
Sludge to Compost Plant
Figure A.2. : Operation of AVC Sludge Dewatering Unit (Simplified Version)
The raw POME is pumped from the first anaerobic pond (converted as holding or buffer pond) into one of the several enclosed AVC containers. A flocculant is added to increase the efficiency of the sedimentation in the container. The flocculant is environmentally friendly1, consisting organic compounds without any heavy metal content.
The AVC container is equipped with a set of special dewatering screens along the sides of the container and one set in the middle. The filtration screens drain and dewater the flocculated sludge inside the container. The rear of the container is equipped with a full width door, through which the dewatered sludge will be emptied. A ladder mounted at the front of the container allows for quick and easy access to the top of the container where the inspection hatches are installed. The reject water is discharged at the side of container and piped to the facultative pond for further reduction in remaining organic content.
The containers are normally placed on the ground or onto a special platform. When the AVC Sludge Dewatering Containers are full, a roll-on-roll-off vehicle will be used to transport the containers to the
1 Chemical Safety Data Sheet
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composting site and the solids inside the containers would be emptied through the lifting facility on the vehicle. During the dewatering process, a great concentration of suspended solids is removed, thus reducing the BOD and COD content. Pilot studies have achieved reduction up to 90 – 95% in COD and BOD and 90 – 99% reduction in suspended solids from AVC sludge dewatering system. The dewatered sludge is converted into compost by co-composting the wet-sludge and a portion of fibre waste from solid biomass waste. The composting plant consist an area of about 2 acres of land. The composting process takes approximately one month and additional one month for stabilisation. Initially, the blended sludge and biomass waste shall be piled into windrows. The windrows are regularly turned for proper mixing and to improve aeration. The windrows would have compost covers and the rain water run-off would not generate excessive high loading leachate. As the composting process does not involve the addition of any free water but only using the moisture content present in the dewatered sludge, there would not be any leachate run-off from the composting plant. The rain water from the compost plant will flow to surrounding perimeter drain and routed back to facultative pond.
The organic material will undergo significant weight reduction, up to 25% dry weight loss due to organic degradation during the composting process. Substantial water losses through evaporation also reduce the initial weight. The final total composted material weight is estimated to be around 3,400 t/year.
The composted material can be applied back to the nearby plantation. Thus, the project activity prevents anaerobic decay through aerobic treatment by composting and proper soil application of the compost.
The wastewater from the AVC systems will be treated further in the existing facultative pond, aeration pond and finally through settling ponds before discharged for land disposal according to the local discharge standards. For Taclico Company palm oil mill, the discharge limit is 5,000 ppm Biological Oxygen Demand (BOD) and discharged as land disposal.
As the discharge point of the project activity will be into the aerobic ponding system for further treatment and not into the water ways, further treatment of the POME to fulfill the effluent standard will thus be the responsibility of the palm oil mill and not of the project proponent, Brite-Tech Ventures.
The AVC system lifetime is expected to run well beyond the proposed 10 years crediting period.
A.4.3 Estimated amount of emission reductions over the chosen crediting period:
The total estimated emission reduction over the ten years crediting period is estimated as follows:
Years Estimation of annual emission reductions in tonnes of CO2e 2008 23,113 2009 23,113 2010 23,113 2011 23,113 2012 23,113 2013 23,113 2014 23,113 2015 23,113
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2016 23,113 2017 23,113
Total estimated reductions (tonnes of CO2e) 231,130 Total number of crediting years 10 Annual average over the crediting period is 23,113 estimated reductions (tonnes of CO2e) Table A.3.: Estimated Amount of Emission Reductions from Project Activity
In conclusion, the project activity falls in the small scale category, since the emission reduction is less than 60 ktCO2 per year.
A.4.4. Public funding of the small-scale project activity:
There is no public funding involved in this project.
A.4.5. Confirmation that the small-scale project activity is not a debundled component of a large scale project activity:
Based on Appendix C of the Simplified Modalities and Procedures for small scale CDM projects, a proposed small-scale project activity shall be deemed to be debundled component of a large project activity if there is a registered small scale CDM project activity or an application to register another small scale project activity: With the same project participants In the same project category and technology/measure; and Registered within the previous 2 years; and Whose project boundary is within 1 km of the project boundary of the proposed small-scale activity at the closest point.
There are no similar projects with the same project participants and same technology with 1 km from this project location and the project is thus not debundled according to the definition of Appendix C.
SECTION B. Application of a baseline and monitoring methodology
B.1. Title and reference of the approved baseline and monitoring methodology applied to the small-scale project activity:
Methodology Applied is AMS III.F - Avoidance of methane production from biomass decay through composting (Version 5, Scope 13) from Appendix B of Simplified Modalities and Procedures for small scale CDM projects.
B.2 Justification of the choice of the project category:
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The methodology is applicable to the project activity as it complies with all the applicability requirements required by AMS-III.F. Justification of the project activity to the applicability conditions of AMS-III.F methodology is shown in Table B.1.: Applicability Criteria Project conditions i. Project category is also applicable for co- i. This project activity shall use all the composting wastewater and solid biomass, dewatered sludge (wet sludge) as a source where wastewater would otherwise have of moisture and/or nutrient combined with been treated in an anaerobic wastewater a fraction of fibre waste. Fibre waste is a treatment system without methane residue from palm oil production recovery. The wastewater in project (commonly used as fuel for biomass plant) scenario is used as source of moisture for the composting process. It is and/or nutrients to the composting process anticipated that the mill should be able to e.g. composting of empty fruit bunches allocate approximately 10 tonnes of wet (EFB), a residue from palm oil production, fibre waste daily for compost plant. with the addition of palm oil mill effluent (POME) which is the wastewater co- produced from palm oil production.
ii. The anaerobic lagoon should be more than ii. The anaerobic lagoons at the mill are x m 2 metres deep. deep >2 m depth required by methodology.
iii. The overall emission reductions from the iii. The overall emission reduction from the project activity does not exceed 60 ktCO e project activity will not exceed 60 ktCO2e 2 per year in any year of crediting. as shown in Table A.3. of Section A.4.3.
Table B.1.: Comparison of the project to the applicability conditions in AMS III.F
The project attends to all of the applicability requirements required by AMS-III.F.
B.3. Description of the project boundary:
The project boundary is the physical, geographical site: a. where the solid waste would have been disposed and the methane emission occurs in absence of proposed project activity, b. in the case of project co-composting wastewater, where the co-composting wastewater would have been treated anaerobically in the absence of project activity, c. where the treatment of biomass through composting takes place, d. where the soil application of the produced compost takes place, e. and the itineraries between them (a, b, c and d), where the transportation of waste, wastewater or compost occurs.
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Final Discharge (Land Facultative Pond Aeration Pond Settling Pond 1 & 2 Disposal)
Project Boundary
Effluent Compost Electricity distribution to Mill back to plantation
AVC Sludge Dewatered Additional Dewatering sludge Materials System
Steam turbine & generator Mixing Pond 1 & 2 Composting Plant
Fibre/ EFB De-oiling Waste Biomass Process Fuel Waste to Landfill Boiler
+
Effluent Biomass Waste Product Waste Processing
Palm Oil Plantation Fresh Fruit Bunch Collection Palm Oil Mill
Figure B.1. : Project Boundary
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Final Discharge (Land Facultative Pond Aeration Pond Settling Pond 1 & 2 Disposal)
Baseline Boundary Effluent Electricity to Mill
Anaerobic Pond 1 - 4 Secondary Anaerobic Pond
Steam turbine & generator Mixing Pond 1 & 2
De-oiling Biomass Process Fuel Waste to Landfill Boiler
+
Effluent Biomass Waste Product Waste Processing
Palm Oil Plantation Fresh Fruit Bunch Collection Palm Oil Mill Figure B.2.: Baseline Boundary
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Sources and types of GHG emissions in baseline and project scenarios are summarised in Table B.2. Source Gas Included? Justification/Explanation
POME treatment CO2 No Emissions originating from biogenic sources are considered carbon-neutral.
CH4 Yes Emissions from anaerobic ponds.
Baseline N2O No Excluded for simplification. Expected to be minimal.
Renewable CO2 No Use of electricity generated by the biomass plant electricity to run the treatment equipments e.g. pumps and generation mixers is considered carbon neutral
CH4 No Excluded for simplification. Expected to be minimal.
N2O No Excluded for simplification. Expected to be minimal.
Incremental use of CO2 Yes Emissions are expected from vehicles used to fossil diesel for transport compost to plantation site for soil
ProjectActivity compost application. distribution CH4 No Excluded for simplification. Expected to be minimal.
N2O No Excluded for simplification. Expected to be minimal. Table B.2.: Sources and types of GHG emissions in baseline and project scenarios
Conforming to the guidelines and rules for small-scale, project boundary of the project activity is based in the guidance of the applicable project category.
B.4. Description of baseline and its development:
Under the business as usual scenario, there would be continuation of current practice (existing lagoon based waste water treatment system) as the baseline. The present system of open ponds is the most common wastewater treatment system for palm oil mills in Malaysia, whereby 85% of the palm oil mills use open ponds. A further 5-10% use open tanks, while the rest use composting and others (Eco-Ideal 2004; Yeoh 2004a).
The treated POME can be applied either to land (with a BOD [300C for 3 days] requirement of 5,000 mg/L) or directed to water ways (with a BOD requirement of 100 mg/L) (ILBS 2004; Shamsudin 2006). The anaerobic ponds are necessary in both cases to reduce the BOD level from around 25,000 mg/L in the raw POME.
For land disposal, Taclico Company palm oil mill has aerobic ponding system to meet the land disposal requirement of 5000 mg/L BOD discharge limit.
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Leakage For Taclico Company palm oil mill, processing about 175,000 t/year of FFB, it is expected to generate roughly 12.7%2 or about 22,225 t/year of Mesocarp fibres and 21.1%3 or about 36,925 t/year of Empty Fruit Bunch. Small amounts (2 - 3,000 t/year) of biomass consisting mesocarp fibres or shredded EFB will be added to organic material from the AVC to stabilise the compost. There is in general a surplus of biomass resources at the palm oil mills4 so there is no risk of replacing biomass resources from competing uses with emission effects. In the baseline case the small amount of fibre used in compost would most likely be dumped in an informal dumpsite, but no CERs are claimed for methane avoidance. If there is a scarcity of fibre in the mill, EFB will be used instead of fibre.
Shredded EFB may be used for the compost. The EFB is typically either used for mulching in the plantations or dumped in landfills. If the EFB had previously been used for mulching, the use for composting is hardly a competing use since the compost will also be able to bring nutrients back to the plantation and even in a much more useful form than the untreated EFB. If EFB had been dumped, the use for compost will avoid some methane emissions.
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 small-scale CDM project activity:
Based on Appendix B of the Simplified Modalities and Procedures for small scale CDM projects, evidence as to why the proposed project is additional can be shown by conducting an analysis of the following factors:
Project initiation (As indicated in Table A.1. of Section A.4.3)
The start date of the project was xx xxx, 200x, when the work started at the site.
A CDM consultant was engaged in May 2007 and negotiations with the buyer on an ERPA started in June 2007. The term-sheet was signed on 30th Sep, 2007 after the Board of the Taclico Company Palm Oil Mill gave the final consent for project developer to manage its POME treatment.
The stakeholder meeting in relation to the CDM project was held on 16th Aug, 2007 and site validation of the PDD was conducted by xxxxx on xx xxx, 200x.
Thus CDM was clearly taken into account before the start date of the project.
Financial barrier
The main issue for demonstration of additionality of the project is the financial barrier. This project is conducted as a Build – Own – Operate basis. This means that Brite-Tech Ventures will make the full investment in the technology and undertake the operations including costs of staff, maintenance and additives. Table B.3. illustrates details on project capital investment and annual operational costs.
2 Danida, EPU and MECW: Renewable Energy Resources in Malaysia, 2004. p 7 table 2.1 3 Danida, EPU and MECW: Renewable Energy Resources in Malaysia, 2004. p 7 table 2.1 4 Danida, EPU and MECW: Renewable Energy Resources in Malaysia, 2004 p 21 table 2.5
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Assumption for Financial Analysis Project Investment Cost Annual Operation Cost 2007 (2008 – 2018)*
1. AVC Sludge Dewatering System with Composting Plant (RM) a. Capital Cost 3,600,000 b. Annual Operational & Maintenance Cost 432,000 c. Annual Labour Cost 74,000 d. Annual Other Costs 40,000 e. Fees to owner for land rental, water 87,500 and electricity utilization
2. CDM Development Costs CDM Consultation Fee, Validation & 100,000 Registration Fee Annual Verification Fee 15,000 Total 3,700,000 648,500
ANNUAL INCOME CER sales @ 10 Euro/ ton Compost Sales @ 150.00 RM/ton
* The annual operational cost is subject to 5% inflation Table B.3.: Project Capital Investment and Annual Operational Costs
The calculation of the financial benchmarks will thus take a starting point in this setup. The implementation of the project demands an investment of 3.6 million RM (Malaysian Ringgit) in the AVC Sludge Dewatering units and composting equipments. The annual operation costs on the first year of operation, year 2008 is 633,500, 000 RM and increases the consequent years based on 5% inflation annually.
The expected income from the sale of the compost will be 150 RM/ton. With an expected compost production of 3,400 t/year this gives an annual income of 510,000 RM. The income from the sale of compost is less than the expected operational costs. It will thus not be possible to repay the capital outlay and operational cost.
The project expects to generate 23,113 t CERs/year. With an expected sales price of 105 Euro/ton CER this gives an income of 1,063,211 RM. The combined income from the sale of CERs and compost will allow the project to be profitable.
The calculation of the internal rate of return (IRR) shows the following results as shown in Table B.4. 5 years 7 years 10 years Base case with CERs 6 % 14 % 18 % Base case without CERs IRR cannot be IRR cannot be IRR cannot be calculated calculated calculated
5 1 Euro = 4.6 RM
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Table B.4.: Calculation of the Internal Rate of Return (IRR)
With the sale of CERs the base case gets acceptable returns in a 5-10 years time horizon.
In the base case, without CERs there is a negative income in all years and thus the IRR can not be calculated.
Sensitivity Analysis
A sensitivity analysis was undertaken using assumptions that are conservative to indicate that the project is not viable without CDM revenues. The scenarios were evaluated, i) increase of compost price to 300 RM/ton, ii) increase of compost production by 25% and iii) reduction of operational cost by 50%. The above scenarios are unlikely to happen (increase of price/production or decrease of operational cost) to the extent of figures assumed in the sensitivity analysis.
5 years 7 years 10 years Compost price is increased to 300 – 22 % – 13 % – 8 % RM/ton Compost production increased 25% IRR cannot be IRR cannot be IRR cannot be calculated calculated calculated Operational price cost 50% IRR cannot be IRR cannot be IRR cannot be calculated calculated calculated Table B.5.: Sensitivity Analysis Results
To conclude, the project will not be financial viable without the sale of CERs.
The simple cost/investment analysis clearly shows that the project is viable only if the incomes from the sale of carbon credits are included. The project activity is not economically and financially viable without the revenue from the sale of certified emission reductions (CERs).
Technology barrier
The AVC system combined with composting is a totally new technology for Malaysia. It has been developed in collaboration with Simon Moss from Denmark and has been adapted for use in the palm oil sector. This technology development has only been feasible because the CDM would give incentive to implement the technology in full scale in Malaysia. Without the incentive from the sale of carbon credits, the technology would not have been developed.
There is also a barrier from the prevailing practice since the technology is new for the palm oil sector. It is difficult to make the palm oil miller invest in environmental friendly technology. The CDM helps overcoming barrier by allowing the implementation of the project as Build, Own and Operate scheme where Brite-Tech Ventures makes the investment in the implementation and get the income from the sale of CERs. The conclusion is that the project is highly additional since the CDM is crucial in overcoming the following barriers:
Financial barrier – by providing the main income stream to pay for the investment
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Technological barrier – by providing the incentive for transfer of technology from Denmark Barrier due to prevailing practice – by allowing the project to be organised as a Build, Own Operate structure where the palm oil miller will not have to undertake the initial investment.
B.6. Emission reductions:
B.6.1. Explanation of methodological choices:
Based on methodology applied, AMS III.F – Avoidance of methane production from biomass decay through composting (Version 5, Scope 13), the emission reductions achieved by the project activity will be measured as difference between the baseline emissions and the sum of the project emission and leakage.
ER y = BE y – (PE y + Leakage) (1) where,
ER y Emission reduction in the year, y (tCO2e)
BE y Baseline emissions in the year, y (tCO2e)
PE y Project activity emissions in the year, y (tCO2e)
Leakage Project leakage in the year, y (tCO2e)
The baseline emissions of the project are calculated as
BE y = BE CH4, SWDS, y - MD y, reg * GWP_CH4 + MEP y, ww * GWP_CH4 (2) where,
BE CH4, SWDS, y yearly methane generation potential of the solid waste composted by the project during the years “x” from the beginning of the project activity (x = 1) up to the year, y estimated as described in AMS III.G (tCO2e)
MD y, reg amount of methane that would have to be captured and combusted in the year, y to comply with the prevailing regulation.
MEP y, ww methane emission potential in the year, y of the waste water.
GWP_CH4 Global Warming Potential for methane (the default value of 21 is used)
For this project there is not expected any baseline emissions from solid waste disposal. The mesocarp fibre/shredded EFB used in the compost process is not assumed to be dumped in the baseline situation and will thus not have given any methane emissions. This means that BE CH4, SWDS, y = 0 and MD y, reg = 0.
Thus, the only element contributing to the baseline emissions is the methane emission potential from the waste water:
MEP y, ww = Q y, ww * COD y, ww, untreated * B o, ww * MCF ww, treatment (3) where,
MEP y, ww Methane emission potential of the waste water in the year, y (tCH4)
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3 Q y, ww Volume of wastewater co-composted in the year, y (m ) 3 COD y, ww, untreated Chemical oxygen demand of the wastewater in the year, y (tonnes/m )
B o, ww Methane producing capacity for the wastewater (The default value of 0.21 kg CH4/ kg COD)
MCF ww, treatment Methane correction factor for the wastewater treatment system in the baseline scenario (MCF higher value as per table III.H.1).
The following parameters and data are assessed and used to determine baseline emissions:
Variables Parameters/Data Unit Value Data Source Annual FFB production tons/y 175,000 Project Proponent Mill Operation days/y 303 Project Proponent Effluent Generation Factor m3/tFFB 0.60 m3/tFFB Project Proponent 3 Q y, ww Volume of POME m /hr 105,000 Calculated 3 COD y, ww, untreated Concentration of COD kg COD/m 50 Default Value (Chemical Oxygen Demand) in the raw POME
Bo Maximum methane generation kg CH4/kg 0.21 AMS III.F potential COD
MCF ww, treatment Methane correction factor for 1.0 AMS III.F wastewater in anaerobic lagoons (depth more than 2 metres
GWP_CH4 Methane emissions potential in tCO2e/ tCH4 21 AMS III.F the year "y" of the wastewater Table B.6.: Data for Baseline Emissions Calculation
The project emissions are calculated based on the following:
PE y = PE y, transport + PE y, power (4) where;
PE y Project activity emissions in the year, y (t CO2e)
PE y, transp Emissions from incremental transportation in the year, y (t CO2e)
PE y, power Emissions from electricity or diesel consumption in the year, y (t CO2e)
PE y, transp = (Q y/CT y) * DAF w * EF CO2 + (Q y, comp / CT y, comp) * DAF comp * EF CO2 (5) where;
Q y Quantity of waste composted and/or wastewater co-composted in the year, y (tonnes)
CT y Average truck capacity for waste transportation (tonnes/truck)
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DAF w Average incremental distance of solid waste and/or wastewater transportation (km/truck)
EF CO2 CO2 emission factor for fuel use due to transportation (kgCO2/km, IPCC default values or local values may be used).
Q y, comp Quantity of final compost product produced in the year, y (tonnes)
CT y, comp Average truck capacity for final compost product transportation (tonnes/truck)
DAF comp Average distance for final compost product transportation (km//truck)
PE y, power = PE y, diesel + PE y, electricity (6) where;
PE y, diesel = V y, diesel * EF CO2 (7)
V y, diesel Volume of fuel used in the year, y (litres/y)
EF CO2 CO2 emission factor for fuel use due to power generation (kgCO2/lit, IPCC default values or local values may be used). and;
PE y, electricity = EG y * CEF elec, y (8) where;
EG y Amount of electricity consumed in the year, y (MWh)
CEF elec, y CO2 emission factor for electricity consumed (tCO2/MWh)
Project emission from transportation is using the following assumptions: 1. The composting plant and solid biomass mill shall be within the same vicinity. No additional transportation shall be used to transport the excess fibre/EFB from mill to composting area.
2. Q y is total POME wet solids (sludge) from AVC Sludge Dewatering System, estimated as 10,500 tonnes per year. The sludge from POME treatment area shall be transported to compost plant by using a 25 ton capacity “roll-on-roll-off” truck. Since the POME treatment area and compost plant are within the same vicinity, total distance travelled by truck per-day is approximately 0.5 km.
3. Average truck capacity used for compost distribution to the plantation is 10 ton trucks. Estimated distance travelled by each truck for compost distribution is within the 50 km radius from the mill. Total distance travelled by each truck is assumed to be 100 km maximum.
4. CO2 emission factor from diesel used for transportation purpose:
Based on IPCC default value, 1litre diesel consumption contributes 2.7 kg CO2 emission and estimated that a 10 ton truck can travel approximately 3 km6 using 1 liter diesel. Thus,
EF CO2 = 2.7 kgCO2/lit. diesel / 3 km/litre diesel
6 University of Malaya (2005) “Energy Used in the Transportation Sector of Malaysia”, Page 230, http://www.eib.org/
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= 0.90 kgCO2/km
= 0.0009 tCO2/km
5. Q y, comp is total sludge composted in project activity originated from dewatered sludge from the AVC Sludge Dewatering System and fraction of biomass waste. The estimated production of ready compost will be 3,400 tonnes compost per year.
Project emission from power use is using the following assumptions: 1. Diesel is used as fuel source for operation of tractor (combined with turner) to turn the compost piles/heaps. Each compost plant will have 1 no. tractor to turn the windrows (compost heaps) alternately. Total diesel consumption of tractor in operation for one hour is 5 liters. It is assumed that each tractor will operate approximately 12 hours per-week or 624 hours per-year. Thus, total diesel consumption per-year is 3,120 liters per-year.
2. The electricity consumed by the project will all be from the palm oil mills own biomass plant fuelled by the biomass waste. As the biomass waste is source of renewable energy, it is considered as biogenic source and considered carbon-neutral. This means that CEF elec, y = 0 and no emission is accounted from this source.
The following parameters and data are assessed and used to calculate ex-ante project emission PE y: Parameter Value
Q y (tonnes/year) 10,500
CT y (tonnes/truck) 25
DAF w (km/truck) 0.5
Q y, comp (tonnes/year) 3,400
CT y, comp (tonnes/truck) 10
DAF comp (km/truck) 100
V y, diesel (litres/year) 3,120
EF CO2 (tCO2/km) 0.0009
EF CO2 (kgCO2/lit) 2.7 Table B.7.: Data for Project Emissions Calculation
Leakages
No leakages are anticipated from the project activity as it is a complete new project. All the default values used from IPCC 2006 Guidelines for National Greenhouse Gas Inventories.
B.6.2. Data and parameters that are available at validation:
Data / Parameter: GWP _CH4 Data unit: t CO2e/t CH4 Description: Global Warming Potential (GWP) of methane, valid for the relevant
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commitment period Source of data used: Decisions under UNFCCC and the Kyoto Protocol Value applied: 21 Justification of the Value of 21 is to be applied for the first commitment period of the Kyoto choice of data or Protocol description of measurement methods and procedures actually applied : Any comment:
Data / Parameter: B o, ww Data unit: kg CH4/kg COD Description: Methane producing capacity of the treated wastewater Source of data used: IPCC 2006 Guidelines for National Greenhouse Gas Inventories. Decisions under UNFCCC and the Kyoto Protocol Value applied: 0.21 Justification of the A conservative value obtained from the approved methodology AMS III.F choice of data or description of measurement methods and procedures actually applied : Any comment: -
Data / Parameter: MCF Data unit: Fraction Description: Methane correction factor Source of data used: IPCC 2006 Guidelines for National Greenhouse Gas Inventories. Decisions under UNFCCC and the Kyoto Protocol Value applied: 1.0 Justification of the According to the Table III.H.1, AMS III H (Version 5) methodology, the value choice of data or to be used is the MCF higher value for anaerobic lagoon (depth more than 2 description of metres). measurement methods and procedures actually applied : Any comment: -
Data / Parameter: EFCO2 Data unit: kg CO2/litre Description: CO2 emission factor for diesel Source of data used: IPCC 2006 Guidelines for National Greenhouse Gas Inventories. Decisions under UNFCCC and the Kyoto Protocol Value applied: 2.7 Justification of the The net-emissions from diesel are expected to be low. The uncertainty choice of data or incurred by using default values will thus be minimal and not justify spending
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description of resources on measurements measurement methods and procedures actually applied : 3 Any comment: With a density of 0.84 t/m , NCVdiesel = 43.33 & EFCO2,FF,diesel = 74.1 tCO2/GJ the EF per litre diesel can be calculated as: Density*NVC*EF/1000 = 2.7 kg CO2/litre
Emission factor per litre diesel can be calculated as 2.7 kg CO2/litre & distance travelled per litre diesel shall be determined in project monitoring.
B.6.3 Ex-ante calculation of emission reductions:
Baseline Emissions The ex-ante calculation of baseline emission is calculated as follows:
BE y = MEP y, ww * GWP_CH4 and
MEP y, ww = Q y, ww * COD y, ww, untreated * B o, ww * MCF ww, treatment
Baseline Assumptions taken in accounts for ex-ante calculation is: 1. The average amount of fresh fruit bunch (FFB) processed by palm oil mill is estimated as 175,000 tFFB/y.
2. The average amount of POME generated by FFB processing at the mill is 0.6 m3/t FFB (as per information obtained from the mill).
3 3 3. POME volume, Q y, ww to be treated is estimated as 105,000 m /y (175,000 tFFB/y * 0.6 m /t FFB)
3 4. Raw POME COD concentration, COD y, ww, untreated is 50,000 mg COD/ (0.05 tCOD/m ).
5. Parameter values used to calculate ex-ante baseline emission BE y: Parameter Value 3 COD y, ww, untreated (tCOD/m ) 0.05 3 Q y, ww (m /y) 105,000
B o, ww ( tCH4/tCOD) 0.21
MCF ww, treatment 1.0
GWP_CH4, (tCO2e/ tCH4) 21 Table B.8. : Parameter values used to calculate ex-ante baseline emissions
MEP y, ww = Q y, ww * COD y, ww, untreated * B o, ww * MCF ww, treatment * GWP_CH4 = 105,000 * 0.05 * 0.21 * 1.0 * 21
= 23,153 tCO2e/y
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Year Baseline Emission (tCO2e/y)
2008 23,153
2009 23,153
2010 23,153
2011 23,153
2012 23,153 2013 23,153 2014 23,153 2015 23,153 2016 23,153 2017 23,153
Total estimated reductions (tCO2e) 231,530 Table B.9. : Summary of the ex-ante baseline emissions
Project Emissions
As a methane avoidance project, the project emissions are calculated as CO2 emissions due to incremental distances between collection point of AVC Sludge Dewatering System and composting site, incremental distances between composting site and the soil application sites and CO2 emissions from energy used by the project activity facilities.
PE y = PE y, transport + PE y, power where,
PE y, transp = (Q y/CT y) * DAF w * EF CO2 + (Q y, comp /CT y, comp) * DAF comp * EFCO2
= (10,500/25) * 0.50 * 0.0009 + (3,400 /10) * 100 * 0.0009
= 0.19 + 30.60
= 30.79 tCO2e/y and
PE y, power = PE y, diesel
PE y, diesel = V y, diesel * EFCO2 = 3,120 * 0.27
= 8,424 kgCO2e/y
= 8.424 tCO2e/y
PE y = (31 + 8) tCO2e/y
= 41 tCO2e/y
Year Project Emission (tCO2e/y)
2008 39 2009 39
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2010 39 2011 39 2012 39 2013 39 2014 39 2015 39 2016 39 2017 39
Total estimated reductions (t CO2e) 390 Table B.10. : Summary of the ex-ante project emissions
B.6.4 Summary of the ex-ante estimation of emission reductions:
Total Emission Reduction from project activity is calculated as follows:
ER y = BE y – (PE y + Leakage)
ER y = [23,153 - (39 + 0)] tCO2e
ER y = 23,113 tCO2e
Summary of emission reduction throughout the crediting period is as follows:
Year Estimation of Estimation of Estimation of Estimation of baseline project activity leakage overall emissions emissions (tCO2e) emission (tCO2e) (tCO2e) reductions (tCO2e) 2008 23,153 39 0 23,113 2009 23,153 39 0 23,113 2010 23,153 39 0 23,113 2011 23,153 39 0 23,113 2012 23,153 39 0 23,113 2013 23,153 39 0 23,113 2014 23,153 39 0 23,113 2015 23,153 39 0 23,113 2016 23,153 39 0 23,113 2017 23,153 39 0 23,113 Total (tCO2e) 231,530 390 0 231,130 Table B.11. : Summary of the ex-ante estimation of the emission reductions
B.7 Application of a monitoring methodology and description of the monitoring plan:
B.7.1 Data and parameters monitored:
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ID No.: 1
Data / Parameter: Q y, ww Data unit: m3/hr Description: Volume of POME entering the AVC Sludge Dewatering System Source of data to be used: Continuously measured Value of data applied for the 105,000 m3/y. The actual POME volume generated will be purpose of calculating expected monitored during the project implementation. For present emission reductions in section B.5 estimation purposes, the amount of POME generated is estimated based on the FFB processed in the Mill, i.e. 0.60 m3 POME/t FFB. The present annual FFB production level is 175,000 tonnes. Description of measurement Flowmeter will be installed at the inlet to the AVC System for methods and procedures to be measurement of the influent. Continuous measurements are carried applied: out using the flow meter and the measurements will be recorded daily by the plant technician. When the meter is removed for off- site calibration, which will take place for several days, the POME will be channelled through bypass piping. The volume of POME during these few days will be calculated based on the average daily flow of the previous 3 month record. QA/QC procedures to be applied: The flowmeter is subject to annual calibration that will be done by the manufacturer in accordance to appropriate industry standards to ensure accuracy. Therefore the uncertainty level of the data is expected to be low. Records of calibration will be kept at site. All data will be archived for at least 3 years. Any comment: All data recording shall be counter checked by project engineer monthly (totalizer verification).
ID No.: 2
Data / Parameter: COD y, ww ,untreated Data unit: tCOD/m3 Description: COD of POME entering the AVC Sludge Dewatering System Source of data to be used: Default Value Value of data applied for the 0.05 purpose of calculating expected emission reductions in section B.5 Description of measurement Weekly sampling and testing using in-house laboratory analyzer. methods and procedures to be Once every month, sample will be collected and analysed by a applied: SAMM accredited laboratory using the Department of Environment (Malaysia) Revised Standard Methods (1985) for Analysis of Rubber and Palm Oil Mill Effluent. The analysis results will be forwarded to the plant engineer for comparison, verification and record keeping. The data will be compared for consistency of results in the systematic in-house laboratory testing. QA/QC procedures to be applied: If the results between the in-house lab sampling and the accredited laboratory significantly differs, trouble-shooting e.g. re-sampling
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and re-testing will be carried out. The laboratory equipments shall be calibrated according to the service schedule. The appointed laboratory will be a SAMM accredited facility. The uncertainty level of the data will be low. All data will be archived for at least 3 years. Any comment:
ID No.: 3
Data / Parameter: Q ,y Data unit: t/y Description: Quantity of sludge produced by the AVC sludge Dewatering System in year „y‟ Source of data to be used: Weighbridge records Value of data applied for the 10,500 purpose of calculating expected emission reductions in section B.5 Description of measurement Records from the weighing control room shall be updated monthly methods and procedures to be applied: QA/QC procedures to be applied: Weighed on calibrated scale; also cross check with sales of compost. The maintenance, frequency of calibration and control procedures are established by the QA/QC team. Calibration and maintenance are carried out periodically in accordance to appropriate industry standards to ensure accuracy. Therefore the uncertainty level of the data is expected to be low. Records of calibration will be kept at site. All data will be archived for at least 3 years. Any comment: Parameter monitored whenever a AVC truck carrying sludge crosses the weighbridge, but aggregated monthly
ID No.: 4
Data / Parameter: Q compost, y Data unit: t/y Description: Quantity of final compost produced in year „y‟ Source of data to be used: Weighbridge records Value of data applied for the 3,400 purpose of calculating expected emission reductions in section B.5 Description of measurement Records from the weighing control room shall be updated monthly methods and procedures to be applied: QA/QC procedures to be applied: Weighed on calibrated scale; also cross check with sales of compost. The maintenance, frequency of calibration and control procedures are established by the QA/QC team. Calibration and maintenance are carried out periodically in
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accordance to appropriate industry standards to ensure accuracy. Therefore the uncertainty level of the data is expected to be low. Records of calibration will be kept at site. All data will be archived for at least 3 years. Any comment: Parameter monitored whenever a truck carrying compost crosses the weighbridge, but aggregated monthly
ID No.: 5
Data / Parameter: CT y Data unit: tonnes/truck Description: Average truck capacity for sludge transportation Source of data to be used: Recorded Value of data applied for the 25 (typical capacity for AVC Sludge Dewatering units “roll-on-roll- purpose of calculating expected off” truck emission reductions in section B.5 Description of measurement The operator will record the truck‟s capacity used for transportation methods and procedures to be of sludge from the AVC Sludge Dewatering System applied: QA/QC procedures to be applied: Data from weighing bridge measurement can used to reconfirm the recorded data accuracy. The weighing scale is to be regularly maintained and calibrated according to ISO standards. All data will be archived for at least 3 years. Any comment: The scales are subject to annual calibration that will be done by the manufacturer in accordance to appropriate industry standards to ensure accuracy. Therefore the uncertainty level of the data is expected to be low. Records of calibration will be kept at site.
ID No.: 6
Data / Parameter: CT y, comp Data unit: tonnes/truck Description: Average truck capacity for compost distribution Source of data to be used: Continuously recorded Value of data applied for the 10 (typical truck capacity at plantation) purpose of calculating expected emission reductions in section B.5 Description of measurement The operator will record each truck‟s capacity used for compost methods and procedures to be distribution to plantation area. applied: QA/QC procedures to be applied: Data from weighing bridge measurement can used to reconfirm the recorded data accuracy. The weighing scale is to be regularly maintained and calibrated according to ISO standards. All data will be archived for at least 3 years. Any comment: The scales are subject to annual calibration that will be done by the manufacturer in accordance to appropriate industry standards to ensure accuracy. Therefore the uncertainty level of the data is expected to be low. Records of calibration will be kept at site.
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ID No.: 7
Data / Parameter: DAF w Data unit: km/truck Description: Average distance travelled by truck for from AVC Sludge Dewatering System to the composting area Source of data to be used: Truck‟s speed/distance recording meter Value of data applied for the 0.5 purpose of calculating expected emission reductions in section B.5 Description of measurement The truck driver will record the meter reading prior to trip and after methods and procedures to be the compost distribution trip to measure distance travelled by the applied: truck for each distribution trip. QA/QC procedures to be applied: Confirmation by supervisor & Bills/invoices for fuel purchased from fuel suppliers. All data will be archived for at least 3 years. Any comment: The AVC Sludge Dewatering System location and composting plant is within the same vicinity
ID No.: 8
Data / Parameter: DAF comp Data unit: km/truck Description: Average distance travelled by truck for compost distribution Source of data to be used: Truck‟s speed/distance recording meter Value of data applied for the 100 purpose of calculating expected emission reductions in section B.5 Description of measurement The truck driver will record the meter reading prior to trip and after methods and procedures to be the compost distribution trip to measure distance travelled by the applied: truck for each distribution trip. QA/QC procedures to be applied: Confirmation by supervisor & Bills/invoices for fuel purchased from fuel suppliers. All data will be archived for at least 3 years. Any comment:
ID No.: 9
Data / Parameter: V y, diesel Data unit: litres/year Description: Diesel fuelled tractor attached with turner to turn the compost piles/heaps Source of data used: Measure volume of diesel consumed by tractor Value of data applied for the 3,120 purpose of calculating expected emission reductions in section B.5 Description of measurement Measurements will be continuous based on the volume of diesel methods and procedures to be used for the tractor operation daily. applied: QA/QC procedures to be applied: Confirmation by supervisor & Bills/invoices for diesel purchased
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from fuel suppliers. All data will be archived for at least 3 years. Any comment: ID No.: 10 Data / Parameter: Moisture content in the compost Data unit: % Water content Description: Composition/Moisture content of compost produced Source of data to be used: On-site measurements Value of data applied for the N/A purpose of calculating expected emission reductions in section B.5 Description of measurement Measurements are undertaken for representative samples of the methods and procedures to be compost, mean values calculated at least annually applied: QA/QC procedures to be applied: Comparison with other measurements and default values from literature Any comment:
ID No.: 11
Data / Parameter: Q ww, runoff Data unit: m3/hr Description: Volume of run-off water from the composting site. Source of data to be used: Continuous measurement Value of data applied for the N/A purpose of calculating expected emission reductions in section B.5 Description of measurement The project activity using the moisture content present in the methods and procedures to be dewatered sludge, thus no leachate run-off from the composting applied: plant. The rain water (unroofed site) will flow to surrounding perimeter drain and routed back to facultative pond. Flowmeter will be installed at the inlet pipe to the facultative pond for measurement of the run-off water. Continuous measurements are carried out using the flow meter and the measurements will be recorded daily by the plant technician. When the meter is removed for off-site calibration, which will take place for several days, the volume of run-off water during these few days will be calculated based on the average daily flow of the previous 3 month record. QA/QC procedures to be applied: The flowmeter is subject to annual calibration that will be done by the manufacturer in accordance to appropriate industry standards to ensure accuracy. Therefore the uncertainty level of the data is expected to be low. Records of calibration will be kept at site. All data will be archived for at least 3 years. Any comment: All data recording shall be counter checked by project engineer monthly (totalizer verification).
ID No.: 12
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Data / Parameter: COD ww ,runoff Data unit: tCOD/m3 Description: COD of run-off water entering the aerobic pond Source of data to be used: Sampling Value of data applied for the N/A purpose of calculating expected emission reductions in section B.5 Description of measurement Once every month, sample will be collected and analysed by a methods and procedures to be SAMM accredited laboratory using the Department of Environment applied: (Malaysia) Revised Standard Methods (1985) for Analysis of Rubber and Palm Oil Mill Effluent. The analysis results will be forwarded to the plant engineer for record keeping. QA/QC procedures to be applied: The appointed laboratory will be a SAMM accredited facility. The uncertainty level of the data will be low. All data will be archived for at least 3 years. Any comment:
ID No.: 13 Data / Parameter: Sales/delivery of compost final product Data unit: - Description: Proper soil application of the compost to ensure aerobic conditions for further decay Source of data to be used: In-situ verification Value of data applied for the N/A purpose of calculating expected emission reductions in section B.5 Description of measurement Verification shall be done at representative sample of user sites methods and procedures to be applied: QA/QC procedures to be applied: All bills/invoices of compost sale will include information about compost end-use destination. All data will be archived for at least 3 years. Any comment:
B.7.2 Description of the monitoring plan:
Introduction The monitoring of emission reductions generated by the project activity will be carried out systematically according to the monitoring plan.
Objective The monitoring plan is important as it shall establish a reliable and accurate monitoring system. The skilled and semi-skilled workers employed would follow the outlined monitoring plan, regular
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maintenance and calibration schedule, data verification and troubleshooting methods. The monitoring plan shall serve the purpose of being a guide to meet the yearly verification and certification of CERs.
Person In-charge Specific personnel will be assigned to be responsible for project management as well as for all the different parameters to be monitored and reported. Specifically, the following roles and responsibilities will be assigned: Managing Director – Financial and policy matters General Manager – Overall support and operation of all the CDM Projects in Malaysia Regional Managers – Regional Managers would be responsible for the localized CDM Projects in their area. Project Coordinator – Design, training, system establishment and managing the CDM project Project Engineer – Construction, operation and maintenance of the CDM project Technicians/Supervisors – Daily operations including sampling, recording of readings and filing of records.
Testing & Commissioning Period Before commencement of the O & M phase, a training and quality program will be enacted to ensure that good management practices are ensured and implemented by all project operating personnel in terms of record-keeping, equipment calibration, overall maintenance, and procedures for corrective action.
This will provide an opportunity to correct any mistakes and upgrade the monitoring and recording procedures. It will also be a training period for all personal involve in monitoring plan.
Quality Assurance In order to lower the uncertainties and to produce accurate data, the following measures will be introduced: Appointment of accredited laboratories, purchase good quality measurement devices; Appropriate training for staffs handling the monitoring; Clear procedures and guidelines for conducting the monitoring, including sampling and measurement methods, clear scheduling, recording, reporting and others; All reports, data, communications and information shall be centralized through the use of a computer network server and the various regional centers shall be connected through the internet to the Head Office so that the information can be captured promptly and accurately. Provision of internal review, quality check and assurance procedures with a quality assurance manager appointed. Regular calibration; Clear preventive and corrective actions to be prepared.
Data Storage All data monitored shall be archived for at least three (3) years from data of measurement.
B.8 Date of completion of the application of the baseline and monitoring methodology and the name of the responsible person(s)/entity(ies)
Date of completion of baseline study:
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12 September 2007
Name of person(s)/entity (ies) determining the baseline: Mr. Soeren Varming Managing Director SV Carbon Sdn Bhd
Office: 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: 01/01/2008
C.1.2. Expected operational lifetime of the project activity: 10 – 15 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:
C.2.1.2. Length of the first crediting period:
C.2.2. Fixed crediting period:
C.2.2.1. Starting date: 01/01/2008. The crediting period only starts after registration of the project. C.2.2.2. Length: 10 years
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SECTION D. Environmental impacts
D.1. If required by the host Party, documentation on the analysis of the environmental impacts of the project activity:
The project does not require an Environmental Impact Assessment according to Malaysian legislation.
The main environmental impacts are: a. It reduces air pollution from the anaerobic treatment of the POME. The emissions to air include methane, volatile fatty acids and hydrogen sulphide (H2S). These emissions contributes to global climate change, acid rain and offensive smell in the local area; b. It reduces water pollution from the POME as the AVC Sludge Dewatering System will provide better, controlled and more efficient process for removal of the organic content of the POME. c. It contributes to the transfer of expert knowledge on effective composting to be implemented in palm oil mills in Malaysia and other countries. d. It produces compost which will substitute significantly the use of chemical fertilizer in plantation. This indirectly reduces energy used for chemical fertilizer production and N2O pollution caused by nitrogen based chemical fertilizer usage (Avoidance of GHG which was not accounted in project activity). e. The compost produced is rich with micronutrients and macronutrients. Able to condition the soil to promote better quality and quantity of yields in agricultural crops. f. Application of compost to plantation, it suppresses plant diseases and pests. It is better alternative than mulching which is prone to diseases exposure. g. Reduces waste dumping at mill. This initializes a clean technology which can be implemented by other mills in POME management. h. It creates new employment for during construction and operating the compost plant
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:
A stakeholder meeting was held for the above project on 16th Aug 2007 at Bukit Jawi Golf Resort meeting room for Taclico Company Sdn. Bhd. (Palm Oil Mill) located at Mukim Padang Meha, Lot 20,21 & 29, 09400 Padang Serai, Kedah. In addition to the mill management and staffs, there were representatives of the nearby oil mills and plantations, government officers and local residents. An advertisement was placed in two local newspapers “New Straits Times” and “Berita Harian” on 2nd Aug. 2007, which was approximately 2 weeks before the stakeholder meeting to provide sufficient time for the related parties to attend the meeting. Letters were also sent out to the stakeholders that had been
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identified earlier. The invitees were followed up with calls to confirm attendance. The meeting was attended by 22 participants.
Opening speech was presented by Ir. Lim Thuan Swee (Taclico Company Consultant). He informs about the mill‟s intention to in-corporate Clean Development Mechanism (CDM) project at the mill by collaborating with Brite-Tech Ventures Sdn. Bhd.
Ms. Jeyashri introduced participants to the Clean Development Mechanism as one of the mechanisms to address the reduction of greenhouse gas emissions to atmosphere. She informed effects and consequences of global warming. She also explained advantages of CDM projects, how it works and support by Malaysian government in establishing CDM projects as a sustainable development project and process of CDM project registration.
Ms. Chow then proceeded to explain more details on greenhouse emission, mechanism of occurrence and its threat globally. She also elaborated global warming effects generally to our local community.
Ms. Low then discussed on current stereotype perceptions on palm oil industry by international NGO‟s and highlighted their misconception. She identified the many advantages and disadvantages e.g. effluent generation with high organic content from the industry. Then, she explained more on project description and activities which eventually put good use of the effluent generated. The proposed project is composting of solid biomass waste and palm oil mill effluent (POME) through use of AVC Sludge Dewatering System. Topics explained included the drawbacks of the existing system and the expected results from the new system.
E.2. Summary of the comments received:
The following issues were raised by the participants. They were addressed by Ms. Chow, Mr. Tan and Ms. Jeyashri.
En. Hasbullah Hamzah, Officer (Department of Environment) 1a. I am thanking the organizing committee for implementing project addressing the global warming issue. What is the advantage of implementing the AVC Sludge Dewatering System (CDM Project) to the mill? An agreement was made between Brite-Tech Ventures and Taclico Company. Brite-Tech Ventures will pay for land rental and utility consumption for operation of AVC and compost plant. In addition a portion of compost produced will be given back to mill as additional income. It also helps to overcome ponds desilting problem. The COD and BOD in the reject water from AVC System reduced up to 90%. As it avoids anaerobic digestion in effluent, it avoids emission of methane, a greenhouse gas that causes global warming and emission of hydrogen sulphide which causes bad odour.
1b. Does addition of polymer has any implication to the sludge; e.g. convert it as scheduled waste? No, the dewatered solid from the AVC system will not turn back to slurry (like the decanter cake) when exposed to rain pour. It is because we are using polymer to flocculate and bind-up the fine solids to become a bigger solid; so that the water can be easily separated out in the AVC. The dewatered sludge which in about 20%-30% dry solid contents will be piled out like normal soil when it dumped out from the AVC container. Eventually, the solid will be further composted in
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the composting plant. The organic polymer used is same type as used in water treatment plant. It does not have any toxic content, thus the sludge is not scheduled waste.
1c. How many percentage of methane reduction with implementation of project? The AVC Sludge Dewatering System replaces anaerobic process for the existing effluent treatment. The project avoids methane production. There is a methodology to calculate avoided methane based on COD reduction in the project. Thus parameters e.g. flowrate and COD will be continuously monitored to calculate quantity of methane avoided.
1d. What is finding from the pilot test carried out in term percentage of methane reduction? The pilot test was done in year 2005. It was meant to reduce suspended solids and organic loading in the water to reduce pond silting problem and improve water quality in palm oil mill. Thus, no monitoring for methane emission was done.
En. Amirul Hidayah, Assistant District Officer (Kulim District Office) 2a. What is the project cost and which party is responsible to pay for the project? No cost will be borne by the mill. All the initial setting up investment, operating and distribution cost of the AVC Sludge Dewatering System and compost plant will be borne by Brite-Tech Ventures. This is a CDM project implemented as an outcome of Kyoto Protocol. The monetary funding is obtained from Carbon Emission Reduction (CER) credits sales to Annex 1 Party after the system run continuously for one year and verified by internationally accredited independent auditor recognized by CDM EB.. The mills responsibility is only to supply some land for composting process and utilities e.g. electricity and water. The mill will not bear any cost in fact as the land rental and utility usage will be paid.
2b. Is there any success in implementing CDM projects? Yes. So far 673 projects worldwide has been approved and registered by CDM Executive Body. Out of the projects, 15 projects are registered in Malaysia. The number will double up by end of this year as the implementation of Kyoto Protocol’s first commitment starts next year 2008 - 2012.
En. Mohd. Zaini, Officer (Malaysian Palm Oil Board) 3. The proposed project sounds good. Can you brief more on the project funding and how it can be implemented effectively? Clean development mechanism (CDM) is an alternative for developed (Annex 1) countries which are legally binded under Kyoto Protocol to reduce greenhouse gasses (GHG) emission to implement GHG reduction projects in developing countries. Project development cost in developing countries are cheaper so it attracts Carbon Emission Reduction (CER) credits buyers to fund projects in developing project e.g. Malaysia. As a return, Malaysia able to bring in advanced technology which is impossible without any funding aid. To ensure all the 17 projects implemented by Brite-Tech works effectively, almost 200 staffs will be recruited all over Malaysia.
En. Amirul Hidayah, Assistant District Officer (Kulim District Office) 4a. Why doesn‟t they implement the project in their homeland?
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The European or developed countries government has imposed regulations for pollution reduction at their own factories through emission reduction and joint implementation projects. In the event that they still could not reduce it as per Kyoto’s committed limit, they have option to buy CER credits from CDM projects. For instance, power plants in Denmark will only be able to renew their permits based on higher GHG emission reduction commitment. To achieve this, the power plant either has to reduce production, adapt more efficient technology or fund a CDM project in a developing country.
En. Mardzuki Ismail, Officer (Department of Environment) 5. What is the guarantee that the sludge does not emit bad odour? The polymer dosed in will encapsulate the sludge and in composting plant, the sludge will composted in aerobic process. For instance our recent unit for sewage treatment in Pantai Dalam, Kuala Lumpur has proved it. Initially the plant operator will get 8 – 9 complaints everyday of bad odour from residents and nearby highway (NPE) users. With installation of the AVC Sludge Dewatering units, no more complains are recorded.
Mr. Toh Hock Seng, School Representative (Sek. Men. Padang Serai) 6. So far how many mills in our state has signed out this project with you? At the moment, only one in Kedah. Taclico together with other 16 mills all over Malaysia will be registered as our first batch CDM project. Maybe more mills will take part in our project for next batch or join other CDM projects.
En. Mohd. Zaini, Officer (Malaysian Palm Oil Board) 7. Is this project compulsory for all mills? No. Implementation of project depends on mills willingness. They can take part in our project or other CDM projects e.g biogas capturing for power generation. Our project is an additional to improve current effluent treatment system, not avoidance of entire effluent treatment system.
En. Muhamad Adi, Asst. Manager (Guthrie Group) 8. As palm oil business haven‟t capture good market in Europe, does CDM projects help to remove the existing red-tape to penetrate to their market? Many non-governmental body claims palm oil industry is a non-sustainable industry. But statistics shows Malaysia still has big portion of forest and existing palm oil plantation are planted at existing rubber plantation. Moreover, carbon absorbed for photosynthesis process is many folds higher than carbon/methane emitted in the open effluent ponds or EFB landfill. By implementing the project, we can avoid methane production and improve water quality. Thus, it helps to provide palm oil business as a sustainable development.
The meeting was adjourned around 12.15 noon and participants were informed that they could also submit questions on the project to Taclico Company within a week.
General Observation Participants did not raise any objections to the project and demonstrated a keen interest in its environmental and social impacts.
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E.3. Report on how due account was taken of any comments received:
Since there were no objections, there was no need to change the project or the project implementation.
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Annex 1
CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY
Organization: Brite-Tech Ventures Sdn. Bhd. Street/P.O.Box: Lot 14, (PT 5015), Jalan Pendamar 27/90, Seksyen 27 Building: City: Shah Alam State/Region: Selangor Postfix/ZIP: 40000 Country: Malaysia Telephone: FAX: E-Mail: [email protected] URL: Represented by: Title: C.E.O. Salutation: Mr. Last Name: Boon Ping Middle Name: First Name: Chow Department: Mobile: +016-338 3078 Direct FAX: 603 -5633 5948 Direct tel: 603 -5633 2688 Personal E-Mail: chow b.p. @ gmail.com
Organization: Vattenfall Europe Generation AG & Co. KG Street/P.O.Box: Chausseestrasse 23 Building: City: Berlin State/Region: Postfix/ZIP: 10115 Country: Germany Telephone: FAX: E-Mail: URL: www.vattenfall.com Represented by: Title: Salutation: Ms. Last Name: Buder Middle Name: First Name: Antje Department: Generation Strategy
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Mobile: Direct FAX: 0049-30-8182 4015 Direct tel: 0049-30-8182 4031 Personal E-Mail: [email protected]
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Annex 2
INFORMATION REGARDING PUBLIC FUNDING
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Annex 3
BASELINE INFORMATION
Annex 4
MONITORING INFORMATION
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