Feasibility Study for Biomass High-Efficiency Power Generation Project | CDM/JI | Global Environment Centre Foundation (GEC)

Reports of CDM/JI Feasibility Studies

Title of the research	Feasibility Study for Biomass High-Efficiency Power Generation Project
FY	FY 2004
Main research organization	JFE Engineering Corporation
Research partner(s)	Kulim (Malaysia) Berhad
Location of the project	Johor, Malaysia
Summary of the research report (PDF)	Summary(75kb)
Description of the project	Biomass Power Generation Project used Empty Fruit Bunch produced at palm oil mills as fuel in Johor, Malaysia and sell electricity to Tenaga National Berhad, a power company in Peninsula Malaysia, under Small Renewable Energy Programme
GHG	CO₂
Sector of the project	Biomass Utilisation
CDM/JI	CDM
Duration of the project activity/ crediting period	2008 to 2029
Baseline methodology/additionality	In this project, the power generation plant capacity is expected 3.8MW, and it satisfies the criteria of Small Scale CDM. As the baseline of this project, the "weighted average emission of current generation mix" is selected among the simplified baselines applicable to the small-scale CDM type I.D. In other words, the weighted average emission of generation mix which is the latest as of start of the operation (value obtained when the power sold under this project is multiplied by the weighted average emission coefficient of the grid power source) is taken as the baseline.
Estimation of GHG emissions	According to the estimated data on emission unit requirement of the power supply grid in Peninsular Malaysia, it is estimated that the weighted average emission (average emission unit requirement of all power sources) of the current generation mix is 0.595 kg CO₂/kWh. Accordingly, when the power amount (25,664,000 kWh per annum) equivalent to that to be sold under this project to the Peninsular Malaysia power supply grid is supplied by use of a power source having the above average emission unit requirement of all power sources (0.595 kg CO₂/kWh), the greenhouse gas emission can directly correspond to the baseline emission. The following result is obtained: Annual baseline emission = 25,664,000 kWh/year × 0.595 kgCO₂/kWh = 15,270,080 kg CO₂/year There is almost no greenhouse gas emission source to be recorded within the project area concerning this project activities, where the project emission is regarded as zero. Greenhouse gas emission reduction by this project = 15,270 t CO₂/year - 0 t CO₂/year = 15,270 t CO₂/year Therefore, Greenhouse gas emission reduction by this project for the total credit period (21 years) is estimated as stated below; 15,270 t CO₂/year x 21 yrs =320,670 t CO₂)
Monitoring methodology	With regard to the monitoring methodology and plan of the small-scale CDM project Type I.D in which this project falls, a simplified specified procedures are useable as in the case of the baseline methodology. The items subject to monitoring under this project only includes power amount sold to TNB which is, in other words, only power supply amount to the electric power grid of Peninsular Malaysia. The amount transmitted from this project site and the amount received on the TNB side (Peninsular Malaysia power grid) are each monitored by a watt-meter mounted on each side and by means of the fiscal statement.
Environmental impact	Whenever an operation falls into any of the 19 areas stipulated under the Environmental Quality (Prescribed Activities) (Environmental Impact Assessment) Order 1984 based on the Environmental Quality Act 1974, the Environmental Impact Assessment (EIA) report needs to be prepared, submitted to the Director of Division of Environment, and approved in the specified procedure. This project is considered to fall into the "power generation/transmission" among the 19 areas. Although there is no item which specifically provides biomass generation, the regulations regarding thermal power plants using fossil fuel should be applicable as the closest in terms of the conditions concerned. In that case, the conditions applicable to the operation subject to EIA are the following: "Construction of a thermal power plant which burns fossil fuel, having power generation capacity of 10 MW or more" This project, whose power generation capacity is less than 10 MW, does not fall into an operation subject to the Environment Impact Assessment. Therefore, we understand EIA is not necessary for the Project.
Issues and tasks for project implementation	The Project is to be executed under SREP, the application to Energy Commission and negotiation with TNB for Power Purchase Agreement are needed. Also, This project concerns a power generation project using EFB as fuel, for which stable supply becomes most important. Especially in this project, because enough amount of EFB cannot be secured from the palm oil plant close to the Project site alone, supplies from neighboring plants are expected, whose fuel supply system should require attention from reliability point of view, It is very important to discuss with Kulim about various factors including the supply of EFB. Finally, even though the income of US$ 10 /tCO₂ is assumed, the pay back period shall be more than 10 years, the possibility of the project materialization is still not so high. The activity for cost reduction is necessary.