PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03
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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 1 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board 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 <http://cdm.unfccc.int/Reference/Documents>. 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. 2 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board 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. 3 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board 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 4 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board 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.