|Title of Feasibility Study (FS)
|CDM Feasibility Study on Biomass Cogeneration using Pelletized Agricultural Residues in Jiangsu, China
|Main Implementing Entity
|Japan NUS Co.,Ltd.
|CDM R&D Center of Tsinghua University; Beijing CDM Science & Technology Consulting Company; and Xuzhou Yifeng Sanpu Environmental Heat and Power Co,Ltd
|Location of Project Activity
|China (Jiangsu Province)
|Summary of FS Report
|Description of Project Activity
|The project plans to introduce 50MW Biomass Co-generation Plant in Tongshan Xian, Jiangsu Province to generate both heat and electricity using agricultural residues collected from surrounding farmlands as a fuel. The project will install three 130t/hour boilers, two 25MW steam turbines and two 30MW generators (total output: 50MW). Activities which will lead to reduction of GHG emission include replacement of grid electricity and utilization of agricultural residues currently being left to decay. The crediting period is 10 years (2012-2021) and the expected emission reduction is approximately 270,000tCO2/year.
|Category of Project Activity
|Duration of Project Activity/ Crediting Period
|Methodology to be applied
|ACM0006(Version 09) and ACM0002(Version 10)
|Methodology applied to the project is ACM0006 "Consolidated methodology for grid-connected electricity generation from biomass residues" (Version 09). Baseline scenario of the project is Scenario No.2 in ACM0006 which is the combination of (1) the generation of power in the grid （P4）, (2) the use of heat from external sources, such as district heat (H7), and (3) the biomass residues are dumped or left to decay under mainly aerobic conditions (B1).
|Demonstration of Additionality
|Additionality was demonstrated in accordance with "Combined tool to identify the baseline scenario and demonstrate additionality". In the investment analysis, IRR of the project without CER income was 4.51% which is lower than benchmark IRR of 8%. However, sales of CER （9 Euro/CER） will greatly improve profitability of the project and IRR become 12.03％. In addition, the common practice analysis revealed that all similar biomass power generation projects in Jiangsu Province need support from CDM. Therefore, the proposed project activity is not common practice in Jiangsu Province.
Thus, it is possible to say that the project has additionality.
|Estimation of GHG Emission Reductions
|Monitoring will be carried out in accordance with ACM0006 and other relevant tools. Parameters to be monitored include (1) Consumption of biomass residue, (2) Quantity of biomass residue transported to the project site, (3) Net Calorific Value of biomass residues, (4) Average return trip distance between pellet production stations and the project site, (5) Average load of the trucks, (6) Quantity of diesel combusted, (7) Electricity delivered to grid、(8) On-site electricity consumption, (9) Quantity of available biomass residues in the region, etc.
|Environmental Impact Analysis
|Environmental impact assessment was carried out in 2006. In the assessment, environmental impact was evaluated for air, water, solid wastes and noise. As a result of the assessment, it was revealed that the project has little impact to surrounding environment and also the effective countermeasures will be implemented to reduce wastewater and solid wastes. As for atmospheric pollution, the project will install fluidized-bed boiler which has high desulfurization efficiency as well as dust collecting equipment. No other indirect impacts are expected.
|As a result of the feasibility study, it was confirmed that the project has additionality and large GHG emission reduction (270,000tCO2/year) is expected. The result of economic analysis also showed that the project can be profitable if it was implemented as CDM project.
Finding appropriate investment partner is the most important issue for the project at present. Currently disscution regarding termes of contract is underway.
|Pollutants Emissions Reduction
|Co-benefits of the project evaluated in this study are reduction of air pollution by replacement of grid electricity and reduction of wastes by utilization of biomass residues. Reduction of "SO2" and "Wastes" are quantitatively evaluated. The result showed that replacement of grid electricity will result in 1,464t/year of SO2 emission reduction. In addition, about 420,000t/year of agricultural residues can avoid disposal.
|Contribution to Sustainable Development in Host Country
|The project will contribute to the sustainable development of the project area and China by: (1) Utilization of agricultural residues and improvement of energy self-sufficiency, (2) Improvement of living standard of farmers by provision of new income source, (3) Creation of employment opportunity, and (4) Development of local industry by stable centralized heat supply.