FY 2018 Project for Ministry of the Environment, Japan FY2018 Study of City-to-City Collaboration Project for Low Carbon Society Study on feasibility of the building of low-carbon industrial area and promotion of activities in Ayeyarwady region Project Report February 2019 Mitsubishi Research Institute, Inc. Fujita Corporation Table of Contents Table of Contents ............................................................................................................ i List of Abbreviations...................................................................................................... ii List of Figures ............................................................................................................... iii List of Tables ................................................................................................................. iii 1. Purpose and Implementation Arrangement .......................................................... 5 1.1 Project Objective ................................................................................................ 5 1.2 Survey Items ...................................................................................................... 5 1.3 Survey Arrangement ........................................................................................... 5 1.4 Overview of City-to-City Cooperation .................................................................. 8 2. Overview of the area and Finding the conditions of local related regulations . 11 2.1 Overview of the area ........................................................................................ 11 2.2 Finding the condition of local related regulations .............................................. 14 3. Project Feasibility Study ...................................................................................... 16 3.1 Project Formulation of Rice Husk Power Plant ................................................. 16 3.1.1 Project Overview ....................................................................................................... 16 3.1.2 Project Site ................................................................................................................ 16 3.1.3 Applied Technology ................................................................................................... 16 3.1.4 Project Scheme ......................................................................................................... 21 3.2 Project Formulation of Heat Utilaisation ............................................................ 24 3.2.1 Plan for Low-temperature Storehouses .................................................................... 24 3.2.2 Projcet Site ................................................................................................................ 26 3.2.3 Sellection of Technology ........................................................................................... 27 3.3 GHG Emission Reduction ................................................................................. 31 3.3.1 Power supply to industrial parks by biomass power generation projects utilizing rice husks ......................................................................................................................... 31 3.3.2 Emission Reductions ................................................................................................ 33 3.3.3 Heat supply to rice cold storage and/or food factory by biomass boiler ................... 33 4. Low-carbon society development support ......................................................... 36 4.1 Policy Development Support ............................................................................ 36 4.1.1 Fukushima Program ............................................................................................... 36 4.1.2 Joint Workshop in Myanmar (Jan. 2019) .............................................................. 42 5. Summary and Futer Direction .............................................................................. 49 Appendix i List of Abbreviations This report uses the following standardized units and abbreviations. Units T ton Kg kilogram MJ Megajoule MW Megawatt kW Kilowatt kWh Kilowatt hour GWh Gigawatt hour TWh Terawatt hour MPa Megapascal Ha Hectare Km kilometers m2 Square meter m3 Cubic meter t-CO2 Carbon dioxide emissions (t) kg-CO2 Carbon dioxide emissions (kg) MMK Myanmar kyat USD U.S. dollar JPY Japanese Yen Abbreviations BTG Boiler, Turbine, Generator CDM Clean Development Mechanism COP International Conference of the Parties EIA Environmental Impact Assessment EIAP Environmental Impact Assessment Procedure EMP Environmental Management Plan EPC engineering, procurement, construction FY Fiscal Year GHG greenhouse gas IEE Initial Environment Examination IFC International Finance Corporation INDC Intended Nationally Determined Contributions JCM Joint Crediting Mechanism JICA Japan International Cooperation Agency LDC Least Developed Country MAPCO Myanmar Agribusiness Public Corporation MESC Mandalay Electricity Supply Corporation MIC Myanmar Investment Commission MIMU Myanmar Information Management Unit MRV Measurement, Reporting and Verification PV Photovoltaics SPC Special Purpose Company ii List of Figures Figure 1-1 Organizational Structure ...................................................................................... 7 Figure 3-1 Boiler Turbine Generator (BTG) Power Generation Flow ................................ 17 Figure 3-2 Project Organizational Structure (Proposal) ...................................................... 22 Figure 3-3 Integrated model of “Rice husk power generation" & "Biomass boiler heat supply system" at Rice milling facility ................................................................................... 28 List of Tables Table 1-1 Overview of Ayeyarwady Region and Sagaing Region ........................................ 9 Table 3-4 Project Scheme .................................................................................................... 21 Table 3-5 Specifications of the Rice Husk Power Plant ...................................................... 21 Table 3-1 Grid Emission Factor based on IEA Data (t-CO2/MWh) ................................... 31 Table 3-2 Result of Emission Reductions Calculation (Biomass Power Plant Project) ...... 33 iii (余白頁) iv Study on feasibility of the building of low-carbon industrial area and promotion of activities in Ayeyarwady region Executive Summary Through city-to-city collaboration with Ayeyarwady Region and Sagaing region, under "Partnership for Low-Carbon Initiative," feasibility of business using energy saving and renewable energy technologies, such as power plant and heat utilization using biomass resources (e.g. rice husks) was examined, for realizing a low-carbon, resilient and sustainable rural city. Additionally, activities for low-carbonization of industrial zones and was supported. 1. Background of the project Through city to city collaboration between Ayeyarwady Region, Sagaing Region and Fukushima City, "Partnership for Low-Carbon Initiative (with Ayeyarwady region: starting from in 2015, and with Sagaing Region: starting from Aug. 2017)" was established. Under the initiative, workshops were held in Monywa, Sagaing Region and Yangon, in which through discussions on policy trends, current situation and local needs of the region, activities in Fukushima City, and relevant technologies (e.g. waste treatment) were introduced. Possibility for JCM project formulation and collaboration for low-carbon development in waste treatment and renewable energy area was discussed. <Overview of Ayeyarwady Region, Myanmar> Ayeyarwady Region is the largest agricultural area in Myanmar, and the region has been promoting new initiatives in recent years, including the development of new industrial parks (new industrial park in Pathein city, industrial park in Myaunmyau, Maubin industrial park etc.), in order to promote the industrialization of the region. The area is one of the most promising rural regions for future economic development. <Overview of Sagaing Region, Myanmar> Sagaing Region is located in the north western part of Myanmar, with large amount of rice production. Large number of rice mills exist in Shwebo District, located in the eastern part of the region and in the north western part of Mandalay (the second largest city after Yangon), making the district one of the most populated area of rice mills in the region. The quality of rice is higher than that of Ayeyarwady Region; rice mill business management is well done in the area, with construction of new rice mills, expansion and renewable of rice mills expected in the future. The area is one of the rural regions for future economic development. <Overview of Fukushima City> Fukushima City, while putting the utmost importance on the introduction of renewable energy sources through cooperation among the municipal governments, citizens and 1 business operators, has also been engaged in various initiatives and activities such as “creation of a low-carbon, circular-type society with effective global-warming preventive measures and low burden on the environment”, “restoration from nuclear disaster”, “revitalization of local areas” and “promotion of the building of townships resistant to disasters and emergencies”, aiming at making “Fukushima” a vigorous and environmentally most advanced city, based upon well advanced local production and consumption features, as well as safe
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