CDM Feasibility Study for Methane Recovery from Palm Oil Mill Effluent, North Sumatra Province, Republic of Indonesia

Global Environment Centre Foundation(GEC)

Reports of CDM/JI Feasibility Studies

Title of Feasibility Study (FS)CDM Feasibility Study for Methane Recovery from Palm Oil Mill Effluent, North Sumatra Province, Republic of Indonesia
FYFY 2009
Main Implementing EntityRecycle One Inc.
FS Partner(s)PT Indonesia Indah Lestari (IIL), and PT Perkebunan Nusantera III (PTPN III)
Location of Project ActivityIndonesia (North Sumatra Province)
Summary of FS ReportSummary(PDF 137KB)
Description of Project ActivityThe purpose of this CDM project is to collect the biogas, generated from open anaerobic ponds of Sei Silau Palm Oil Mill, which is located in North Sumatra Province, Indonesia. The project activity is to recover methane-rich biogas, emitted from the existing anaerobic lagoons by introducing methane recovery and combustion system to the existing anaerobic effluent treatment system (lagoons). Benefits of the project are preventing the global warming by reducing greenhouse gas (methane gas) through flaring of the methane-rich biogas with High Density Polyethylene (HDPE) sheets. The project will result in the estimated GHG reduction of 17,738t-CO2 per annum. The project operation will be started from May 2011.
Targeted GHGCH4
Category of Project ActivityWaste Management
Duration of Project Activity/ Crediting Period2011 to 2021 (10 years)/ 2011 to 2021 (10 years)
Methodology to be appliedAMS-Ⅲ.H. ver.13
Baseline ScenarioMethodology AMS-Ⅲ.H. (ver.13) is applied to the project.
The baseline scenario without project activity is a continuation of current practice, that is, the existing anaerobic wastewater treatment system without methane recovery and combustion. In current practice, the biogas containing methane is emitted from the anaerobic lagoon to atmosphere directly.
Demonstration of AdditionalityInvestment Barrier:
The current waste water treatment system satisfies the wastewater regulations. Utilization of the collected methane gas as energy will be financially unprofitable, and the POM has no intension to do so. Moreover the income of the project activity will be CER sales revenue only.
Therefore, it will be difficult to replace the existing waste water treatment system if the project is not formed as CDM project
Estimation of GHG Emission Reductions17,738tCO2/year
Monitoring PlanMonitoring plan was developed as per methodology AMS-III.H (version 13) and "Tool to determine project emissions from flaring gases containing methane (version 01)". Monitoring items are volume of the wastewater, COD, methane fraction of the residual gas, volume of the residual gas, temperature, etc.. These items will be measured periodically.
Environmental Impact AnalysisAccording to the government, AMDAL is not necessary for the project activity.
Project FeasibilityThe possibility of commercialization is high at the current situation because the site owner, PTPN III, is very positive to the CDM projects, and the technologies to be applied to the project have been applied to other CDM projects already.
CER price trends and the Post-2012 situation can influence the commercialization of this project .
Pollutants Emissions ReductionN/A