Feasibility Study for CDM Project to Utilize Effectively the Biogas at the Swine Farms in Thailand

Global Environment Centre Foundation(GEC)

Reports of CDM/JI Feasibility Studies

Title of Feasibility Study (FS)Feasibility Study for CDM Project to Utilize Effectively the Biogas at the Swine Farms in Thailand
FYFY 2008
Main Implementing EntityChuo Fukken Consultants Co., Ltd.
FS Partner(s)[Host country]: Charoen Pokphand Northeastern Public Co., Ltd.; B.P. Food Products Co., Ltd.; Rajburi Foods Co., Ltd.; and Bangkok Food Products Co., Ltd.
{Japan}: Sumitomo Mitsui Banking Corporation; and The Japan Research Institute, Limited
Location of Project ActivityThailand (Northern part of Thailand)
Summary of FS ReportSummary (PDF140KB)
Description of Project ActivityThe project sites are eleven swine farms (five existing and six new farms) owned by 'Project Owner', Charoen Pokphand Northeastern Public Co., Ltd. and other three companies as shown Table 1.3.1. It is producing the methane gas CH4 that is released into the atmosphere at the project sites – swine farms under the current situation where the swine manure is treated by the anaerobic digestion system in the open lagoon.
Since there is a concern about the air (odor) pollution to the nearby communities by the emission of the CH4 from open lagoon, it is in great demand to review the present open lagoon system at on-site.
In consideration of the current condition, the project is to recover methane gas by installation of the bio digester without the emission into the atmosphere. It is also to utilize the methane gas recovered as fuel for generation by installation of the biogas power generator and the sludge after fermentation of methane gas as the organic fertilizer.
Targeted GHGCH4, and CO2
Category of Project ActivityWaste Management
Duration of Project Activity/ Crediting PeriodThe starting of the project activities : August 2009
The crediting period : 2010-2019
Baseline Scenario (including Methodology to be applied)The project activities conform to project category approved simplified methodology for small-scale CDM project activities, AMS-III.D "Methane recovery in agricultural and agro industrial activities" and AMS-I.D "Grid connected renewable electricity generation". The project boundary is identified at the anaerobic open lagoon where the methane gas is released into the atmosphere and swine farm office and barn where the grid connected electricity is consumed.
Demonstration of AdditionalityThe proposed project shall be earned an income from the electricity generation (the effect to save the electricity cost), it cannot be realized the project with that revenue only because the expense shall exceed the revenue annually and it shall not be returned the investment. In other words, it can be demonstrated the additionality based on the investment barrier, since the project cannot be secured economically without revenue from trading CERs.
Estimation of GHG Emission ReductionsApproximately 24,000tCO2/year
Monitoring Plan (including Methodology to be applied)The parameters monitored at the project activities are composed of the biogas amount captured and used as fuel for the generator, the methane concentration level, the number of swine, the average weight, the generator combustion efficiency, the amount of electricity generated at the project activities, the consumption of electricity at project sites and the amount of electricity from the grid connected.
Environmental Impact AnalysisThe implementation of the project activities is conducted the Initial Environmental Evaluation (IEE) which is required by the DNA validation in host country, which shall be studied, predicted and assessed impacts to the global environment and communities of the designed project location.
Issues and Tasks for Project MaterialisationIt is not decided yet who will bear the cost for monitoring instruments, monitoring operation and other CDM project activities at the moment, it is required to secure for the profitability urgently.
It is required to sell the credit with over US$13.00 per ton during ten years (from 2010 to 2019) in order for IRR to be over 10%. In order to secure for the investor and the project feasibility even if the credit price is lower, it is required to examine to reduce the cost in compared with various manufacturers regarding the purchase, installation and maintenance of the power generators.
Co-benefits EffectsIt is concerned about the air (odor) pollution to nearby communities because the swine manure is treated by the anaerobic digestion system in the open lagoon and methane gas CH4 is producing at certain amount there then released into the atmosphere at the project sites – swine farms. It is required to cover the current open lagoon (to install the bio digester) and recover the methane gas as the countermeasure for odor pollution.
The method to prevent from pollution with the proposed project is to install the closed lagoon system (bio digester) in order to reduce the emission of the methane gas into the atmosphere in line with the needs of the mitigation measure for the offensive odor problem.