CDM Feasibility Study on Bio-diesel Production in Mozambique | CDM/JI | Global Environment Centre Foundation (GEC)

Reports of CDM/JI Feasibility Studies

Title of Feasibility Study (FS)

CDM Feasibility Study on Bio-diesel Production in Mozambique

FY 2008

Main Implementing Entity

Sinanen Co.,Ltd

FS Partner(s)

Petróleos de Moçambique, S.A.,
Association of African Economy and Development Japan ECA Committee,
Mitsubishi UFJ Securities,
Kimura Chemical Plants Co., Ltd, and
Japan Highway Landscape Association

Location of Project Activity

Mozambique

Summary of FS Report

Summary(PDF 418KB)

Description of Project Activity

The study is for the biodiesel fuel (BDF) production using Jatropha in Mozambique. The Project is planning to conduct contract farming and new plantation for Jatropha farming in Gaza Province and to construct BDF plant using Jatropha. Petromoc S.A., the project partner in Mozambique, will blend biodiesel fuel with diesel oil at the rate of 20% and supply the blended oil to bulk consumers such as public buses company in Maputo City.
The government of Mozambique has the policy to promote reforestation, involvement of private sector investment, and introduction of renewable energies. This project matches those strategies. The project will contribute to sustainable development of Mozambique in terms of :

Stable supply of energy and abatement of foreign currency outflow by supplying domestic alternative fuels;
Mitigation of urban air pollution by alternative fuel application;
Improvement of rural living by supply of alternative solid fuel for firewood; and
Mitigation of gap between urban and rural area by creating employment in rural villages.

Targeted GHG

CO2

Category of Project Activity

Biomass Utilisation

CDM/JI

CDM

Duration of Project Activity/ Crediting Period

2010-2032 / 2011-2032

Baseline Scenario (including Methodology to be applied)

The methodology applied to this project is the revision of "AM0047 Production of biodiesel based on waste oils and/or waste fats from biogenic origin for use as fuel (Ver. 02)". The baseline scenario is (i) Jatropha farming is not conducted, (ii) BDF plant is not constructed, and (iii) Consumers continue to use diesel fuel. The baseline emissions are applied from the most conservative value among production of biodiesel (PBD,y), consumption of biodiesel (CBD,y), and consumption of blended biodiesel by the captive consumer times blending fraction (CBBD,y*fPJ,y). The calculation is as follows:
BE_y = BD_y*CF_PD*EF_CO2,PD x NCV_PD = 33,000 * 0.937 * 0.0741 * 43 = 98,546

Demonstration of Additionality

In Mozambique, production and utilization of BDF is limited to pilot scale and large commercial scale production is not conducted. The BDF market has not been grown yet. BDF production using coconut oil is already conducted, but most of plants are stopped or reduce its production scale due to current hike of food oil price. Meanwhile, there is no indication of new investment for energy crop near the project areas and large energy crop cultivation has never been conducted in the area. Thus, the area will not have the introduction of fund, techniques, and training to farmers required for energy crop cultivation. Accordingly, barriers for investment, technology, and prevailing practice have been identified as the realistic and credible barriers that would prevent the implementation of the proposed project activity from being carried out, in a CDM project activity. This accounts for the additionality.

Estimation of GHG Emission Reductions

The estimated emission reductions are shown below.

Year	Year 1 20%	Year 2 40%	Year 3 60%	Year 4 80%	Year 5 100%	Year 6 100%	Year 7 100%
								Production of BDF (ton)	6,600	13,200	19,800	26,400	33,000	33,000	33,000
Total (ton-CO2)	12,867	26,338	39,507	52,676	65,847	65,847	65,847

Monitoring Plan (including Methodology to be applied)

The project owner will prepare a monitoring manual and conduct monitoring under supervision of responsible manager for items stipulated in the methodology to be applied to the project. Monitoring items especially important are (i) production of biodiesel required for estimation of baseline emissions (PBD y), (ii) consumption of BDF (BDy), and (iii) consumption of blended biodiesel times blending fraction (CBBD,y*fPJ,y). It is necessary to establish systems so that BDF produced in the project is consumed by end users who will not claim CER.

Environmental Impact Analysis

The project is Category A, which needs to conduct environmental impact assessment (EIA). It needs to study the environmental impacts of multiple sectors including both farming activities and plant facilities. EIA needs to examine the impact especially for the effect of large-scale monocultivation on ecology and possible depletion of land fertility in the farm areas. By-product treatment and waste water from BDF plant also needs to be assessed.

Issues and Tasks for Project Materialisation

Issues for the project implementation are as follows:

1. Jatropha farming: It is necessary to establish organization of contract farmers and systems for instruction of farming techniques;
2. Reduction of transportation cost and consideration of farm location: It is important to plan the positional relationship of Jatropha farm lands and BDF plant considering best economic efficiency. It is better to secure other farmland in Maputo Province or Gaza Province;
3. BDF promotion system: Policy for incentives of BDF production such as target setting and mandatory blending should to be monitored; and
4. BDF demand and consumption: Other than petrol station, the identifiable consumer of BDF is public transportation services such as buses, minibuses, and freight trains. Blending ratio of B5 or B10 will not be enough for the consumption of BDF produced by the project and B20 needs to be introduced. If the BDF amount is too large for the domestic consumption, it needs to consider regional supply to SDAC and export to European countries.

Co-benefits Effects

In Maputo City, air pollution is becoming more and more serious. Exhaust gas from many diesel cars with poor maintenance such as old buses, minibuses, and trucks is a serious problem. The amount of sulfur (source of SOx) contained in Jatropha BDF is less than 1/10 compared to that of diesel oil. Accordingly, it is expected that the use of BDF for diesel cars contributes to the reduction of air pollution.
University of Eduardo Mondlane is currently measuring the values of air pollutants. When the data is published, it can be used as the default values of air pollution. If the concentrations of pollutants are measured continually during project period, those can be used as the indicator to assess the effect of co-benefits with comparison of before and after the introduction of BDF.