Programmatic CDM Feasibility Study for Biomass (Gliricidia) Utilisation for Thermal Energy to Be Used at Industrial Facilities

Global Environment Centre Foundation(GEC)

Reports of CDM/JI Feasibility Studies

Title of Feasibility Study (FS)Programmatic CDM Feasibility Study for Biomass (Gliricidia) Utilisation for Thermal Energy to Be Used at Industrial Facilities
FYFY 2010
Main Implementing EntityEX Corporation
FS Partner(s)Bio Energy Association of Sri Lanka, Lion Brewery Ceylon Limited., Ener Fab (Pvt)Ltd., Det Norske Veritas Certification AS, Fujii Consultant Office, Hokkaido Electric Power Co., Inc.
Location of Project ActivitySri Lanka
Category of Project ActivityBiomass Utilisation
Targeted GHGCO2
Duration of Project Activity/ Crediting PeriodThe project span for the PoA is to be 28 years. The final decision on credit acquirement time for the respective CPA is 10 years without renewal. Further, the project start date is set as the date of purchase order of gasifier facility which is a date when a large amount of cost will be generated in the project implementation phase.
Summary of FS ReportSummary(PDF 311KB)
Description of Project ActivitySri Lanka is a fossil fuel importing country whose energy demand is on the rise in recent times resulting in a large pressure to the financial state of the country. This project aims to use collected wood chips of Gliricidia (Gliricidia sepium), a fast growing tree, and use it as a source of industrial heat under the framework of Programmatic CDM as an alternate to fossil fuel (furnace oil, diesel). Utilization of Gliricidia in the way described results not only in the reduction of GHGs, but also helps in prevention of atmospheric pollution and also contributes to self reliance in terms of energy usage and development of rural areas in Sri Lanka.
Taking into account the results of a study conducted in 2009, this study focused on conducting validation and formulating the implementation framework of the proposed Programme of Activity (hereafter referred as PoA). This was done in order to achieve an early registration of the PoA and the CDM Programme Activities (hereafter referred as CPA) whose responsible and implementing entity is Lion Brewery Ceylon Limited (hereafter referred as Lion Brewery).
Methodology to be appliedThe methodology to be applied is AMS-I.C. (Ver.18). AM0042 is applied to the leakage part of biomass.
Baseline ScenarioThe baseline of the proposed project is that the industrial thermal energy is continued to be supplied by the usage of fossil fuels such as furnace oil and diesel. Biomass, mainly Gliricidia branch, which is pruned periodically, is left at backyards of farms or farmlands to decay and is not sold or utilized. In cases where biomass such as Gliricidia (which can be harvested on short rotations) is newly grown in unutilized land and the harvested biomass is supplied to industry for thermal purpose, the baseline scenario is the continual soil degradation due to the unused state of the land to be continued.
Demonstration of Additionality(1) For project activities up to 15 MWth:
    • The CPAs equal to or below 15 MW thermal energy can establish additionality using "Guidelines for Demonstrating Additionality of Renewable Energy Projects =< 5 MW and Energy Efficiency Projects with Energy Saving <= 20GWH Per Year". According to the guideline, project activities employ specific renewable energy technologies/measures recommended by the host country DNA and approved by the Board to be additional in the host country is regarded as additional.

(* 5MW of electricity is equivalent to 15 MW for thermal energy.)(2) For project activities beyond 15MWth:
    The CPAs beyond 15MWth shall establish additionality in line with Attachment A of Appendix B of the Simplified Modalities and Procedures for Small-Scale CDM project activities and Methodological tool; "Tool for the demonstration and assessment of additionality (Version 05.2)"(EB39, Annex10).
Estimation of GHG Emission Reductions10,868tCO2/year
Monitoring PlanAs this Programmatic CDM will involve the switching of source of energy by utilizing renewable biomass, both coordinating/managing entity (C/ME) and CPA(s) are requested to conduct monitoring activities on biomass in addition to those on facility(ies) operation. Consequently, for facility operation, monitoring will be conducted in accordance with AMS-I.C. (Ver.18) and for biomass procurement, in accordance with the definition provided by AM0042 and EB23 Annex1. The C/ME in cooperation with CPA(s) shall conduct monitoring activities.
Environmental Impact AnalysisRegarding the EIA for this project, it is necessary to determine the need of EIA for both of a) Procurement of biomass resources and b) Biomass utilization (building and operating biomass based thermal energy generating facilities).
  • Biomass procurement:
    Regarding the procurement of biomass resources, the project proponent must conduct EIA when using biomass from new plantations which meets a certain criteria of land development.
  • Biomass utilization:
    This project is excluded from the EIA requirements of the Host Country and EIA at the CPA level is not required as elaborated in CDM SSC-PoA-DD.
The items listed above are not applicable to the Lion Brewer's CPA, and hence, EIA is not necessary for this CPA since the biomass resources to be procured for the CPA are biomass residue that are currently abandoned and not utilized effectively.
Project FeasibilityLion Brewery is very positive to the idea of switching energy source from fossil into biomass and has shown their keen interest in joining the programmatic CDM. They are still under investigation on a facility supplier, which might cause a delay in the future. This year, validation was implemented and the DOE conducted site visit. C/ME has already submitted Prior Consideration to DNA in the host country as well as UNFCCC.
"Co-benefits" (i.e. Improvement of Local Environmental Problems)In the last yea's study, co-benefit quantitative evaluation was conducted regarding SOx, NOx, dust and CO2. The result shows that emission reduction was expected for all the evaluated items.
Contribution to Sustainable Development in Host CountryThe following contributions to sustainable development are expected from this project.
    • Soil protection and derived effects from soil protection in the host country.
    • Environmental improvement and pollution prevention measures in the host country.
    • Improvement of energy self sufficiently.
    • Support to the war-ravaged areas and areas affected by natural disasters.