Feasibility Study on Organic Waste Treatment and Methane Power Generation Project in Anhui, China

Global Environment Centre Foundation(GEC)

Reports of CDM/JI Feasibility Studies

Title of Feasibility Study (FS)Feasibility Study on Organic Waste Treatment and Methane Power Generation Project in Anhui, China
FYFY 2008
Main Implementing EntityJAPAN NUS.Co.,Ltd.
FS Partner(s)Tsinghua University CDM R&D Center; Beijing CDM Science & Technology Consulting Company; and Nanjing Linhui Environment Protection Tec.Co.,Ltd
Location of Project ActivityChina (Anhui Province)
Summary of FS ReportSummary (PDF275KB)
Description of Project ActivityThe proposed project plans to collect and sort municipal wastes and agricultural wastes generated in Guoyang County, Bozhou City, Anhui Province and will implement anaerobic treatment of organic wastes to produce methane gas which will be collected and used for power generation. This project can thus prevent methane emission from landfill sites and reduce damage to the environment through reduction of wastes. In addition, generated electricity will be supplied to the local grid.
Targeted GHGCH4, and CO2
Category of Project ActivityWaste Management
Duration of Project Activity/ Crediting Period2009-2025 / 2011-2020
Baseline Scenario (including Methodology to be applied)The baseline methodology applied to the project is AM0025 "Avoided emissions from organic waste through alternative waste treatment processes(Version. 10.1)". As a result of the investigation following the procedure of methodology, the selected baseline scenario is "the disposal of the waste in a landfill without capture of landfill gas" which is the continuation of the current status.
Demonstration of AdditionalityAdditionality was investigated based on "Tool for the demonstration and assessment of additionality". As a result of the investigation analysis, IRR of the project without revenue from the sales of CER was 7.38%, which is lower than the sectoral benchmark IRR against total investment for electricity generating industry. On the other hand, the revenue from the sales of CER (9Euro/CER) improves IRR of the project to 13.69%. In addition, AM0025 requires performing barrier analysis including Investment barriers, Technical barriers and Common practice barriers. The result of analysis has shown that except for the scenario of the status quo, all three barriers make the implementation of project difficult.
Estimation of GHG Emission Reductions225,461tCO2e/10years
Monitoring Plan (including Methodology to be applied)Monitoring will be carried out according to the methodology. Principal monitoring items include
(1) Amount of waste treated,
(2) Composition of organic waste,
(3) Amount of methane generated through anaerobic treatment,
(4) Constituent and amount of stack gas emitted from power generator,
(5) Input and output of electricity, and (6) Oxygen concentration in the residual waste.
Environmental Impact AnalysisBiogas produced and collected from anaerobic treatment of organic wastes contains CH4 (about 55%), CO2 (about 44%) and H2S (about 0.034%). Collected methane will be stored in the storage tank and managed to prevent leakage until used as fuel for power generation. H2S will be removed by desulfurization equipment. Wastewater will be treated aerobically and reused in the project site and for agriculture and it will therefore minimize wastewater discharged to the environment. Consequently, impact of the project to the environment is expected to be negligible.
Issues and Tasks for Project MaterialisationIn the estimation of greenhouse gas emission reduction, it is required to choose most applicable values for the parameters provided by the methodology and "Tool to determine methane emissions avoided from disposal of waste at a solid waste disposal site". Amount of emission reduction varies significantly with the value selected. The largest estimated amount of reduction for the project is 282,899tCO2e/10yrs and the least reduction is 76,433tCO2e/10yrs. Considering the cost of validation, registration and other expenses, cost-effectiveness of the project should be seriously considered especially for those scenarios with small expected reduction.
Co-benefits EffectsWhile China is experiencing rapid economic growth in late years, "Three wastes problem" i.e. wastes, waste water and waste gas (atmospheric pollution) has been becoming serious issue. The project would contribute to solve this problem by utilizing organic wastes for methane power generation and composting. Proper implementation of separate collection of waste could also prevent accumulation of harmful materials in the landfill site and promote recycling of wastes. As a result, landfill wastes could be less harmful and the total amount of waste sent to the landfill site would be reduced.
Therefore, the project is expected to generate following co-benefits:
(1) Prevention of environmental pollution (e.g. damage to the landscape, odor, air/soil/water pollution),
(2) Convenient collection of illegal dumping,
(3) Recycling of wastes,
(4) Reduction of waste sent to the landfill site, and
(5) Contribution to the local farmers through supply of compost.