CDM Feasibility Study for Rice Husk-based Power Generation in the Philippine

Global Environment Centre Foundation(GEC)

Reports of CDM/JI Feasibility Studies

Title of Feasibility Study (FS)CDM Feasibility Study for Rice Husk-based Power Generation in the Philippine
FYFY 2008
Main Implementing EntityJapan Engineering Consultants Co.,Ltd.
FS Partner(s)Isabela La Suerte Rice Mill Corporation, and Tranzen Group Inc.
Location of Project ActivityPhilippines (Isabela Province)
Summary of FS ReportSummary (PDF738KB)
Description of Project ActivityIsabela La Suerte Rice Mill Corporation a rice mill company has three rice mill factories located in San Manuel in the center of the Luzon.
The rice husk will be collected from 3 rice mill factories whose annual total amount is about 47,000t. 2MW power generation is planned for this project.
Currently the rice husk is not utilized. It is abandoned, or used as landfill. The proposed project will utilize the husk as a carbon neutral fuel of energy. This energy can substitute the electric supply from the diesel electric power and the public grid currently used for rice polishing. The project will also avoid the current methane emissions from the landfilled rice husk.
Targeted GHGCO2, and CH4
Category of Project ActivityBiomass Utilisation
Duration of Project Activity/ Crediting Period2010–2019 / 2010-2019
Baseline Scenario (including Methodology to be applied)In this project, "power generation" will be carried out through "controlled combustion" of rice husk from rice mill factories. The decay and methane generation from rice husk at the final landfill sites now are avoided by the project activity now. Since the power generation capacity of this project is 2MW, and is less than 15MW, this project is classified into a small-scale CDM project and this project can be applied to a small-scale methodology AMS-I.C and AMS-Ⅲ.E.
Demonstration of AdditionalityThis project is classified into small-scale CDM. Demonstrations of additonality need to prove one or more barriers relevant to project implementation can be overcome. As a result, when the profit on the sale of CERs is not obtained (a CDM project is not carried out). It is deficient in the chain of investment. It is proved that economic efficiency is greatly improved by the profit on the sale of CERs.
Estimation of GHG Emission ReductionsAnnual average: 18,675tCO2. In total: 186,756tCO2 (10years)
Monitoring Plan (including Methodology to be applied)In this project, parameters required for verification of the amount of emission reduction are monitored based on the AMS-I.C and the AMS-Ⅲ.E. Monitoring is based on the direct measurement for the amount of rice husk combustion and generated electricity in each part of the plant and dynamo, etc. In the monitoring plan, the method of measuring those values by instrumentation apparatus is adopted.
Environmental Impact AnalysisThe laws about the environmental impact assessment in the host country, and the standards, etc. were researched. Based on the plant scale (2MW) of this project, Environmental Compliance Certificate (ECC) are required by submission of Initial Environmental Examination (IEE), for the implementation. This project is classified into a generation from waste to power generation project. As the environmental impact and social influence, greenhouse gas emission reduction, waste reduction, electric power supply, job creation, consciousness of environmental preservation, etc. are all expected from this project.
Issues and Tasks for Project MaterialisationFor the implementation of the project, some parts of the introductory technology are dependant on overseas technology, but the existing plant is working. There is also an accumulation of working skills. The feasibility of this project is judged to be high.
A global monetary crisis may affect financing of the equity participants of the Philippines. On the other hand, Japanese equity participants should be care about the risk of exchange fluctuation. There is an uneasiness felt by the protraction of the examination procedure of the CDM executive board until it results in CDM registration. And depending on the trend in 2013 and afterwards, there is an uneasiness felt by the fall of the CERs profit on the sales.
Co-benefits EffectsThrough the project activities, dumping of rice husk as waste is avoided. 39,270t/year of rice husk can be consumed as fuel in the 2MW rice husk power generation plant. The amount of waste reduction can be quantified as a pollution control effort.
This project has mentioned the effects of the declining water quality because of the bad smell cased and the burning of rice husk in the fields as are partially being carried out. Moreover, the air pollution prevention effect by reduction (use reduction of a fossil fuel) of the power generation shares by the fossil fuel by biomass energy power generation, etc. This may also be able to indirectly improve pollution, such as air pollution.