Case Study: Gemina Rice Husk Project Nicaragua (Scenario Analysis and Small-Scale Simplified...
description
Transcript of Case Study: Gemina Rice Husk Project Nicaragua (Scenario Analysis and Small-Scale Simplified...
![Page 1: Case Study: Gemina Rice Husk Project Nicaragua (Scenario Analysis and Small-Scale Simplified Methodologies) Carbon Finance Unit The World Bank](https://reader036.fdocuments.us/reader036/viewer/2022062521/56816849550346895dde3676/html5/thumbnails/1.jpg)
Case Study: Gemina Rice Husk
Project Nicaragua
(Scenario Analysis and Small-Scale Simplified Methodologies)
Carbon Finance UnitThe World Bank22 October 2002
www.CarbonFinance.org
(Revised by CCIC, 17 July 2003)
![Page 2: Case Study: Gemina Rice Husk Project Nicaragua (Scenario Analysis and Small-Scale Simplified Methodologies) Carbon Finance Unit The World Bank](https://reader036.fdocuments.us/reader036/viewer/2022062521/56816849550346895dde3676/html5/thumbnails/2.jpg)
Contents
• Introduction to the Gemina Rice Husk Project
• Elements of the baseline
• Applicability of the Meth Panel’s recommendations for simplified methodologies for Small-Scale CDM projects
![Page 3: Case Study: Gemina Rice Husk Project Nicaragua (Scenario Analysis and Small-Scale Simplified Methodologies) Carbon Finance Unit The World Bank](https://reader036.fdocuments.us/reader036/viewer/2022062521/56816849550346895dde3676/html5/thumbnails/3.jpg)
Introduction to the Project • Current practice
– Gemina produces 18,000 tons of rice husk yearly, increasing to 25,000 tons after expansion in 2003
– Rice husks are dumped in open piles– Periodic burning of piles to reduce
volume
• Rice husk to electricity project– Construction of ~1.6 MW power plant– Plant consumes 2.75 t rice husk per hour– Ash used to substitute for cement
![Page 4: Case Study: Gemina Rice Husk Project Nicaragua (Scenario Analysis and Small-Scale Simplified Methodologies) Carbon Finance Unit The World Bank](https://reader036.fdocuments.us/reader036/viewer/2022062521/56816849550346895dde3676/html5/thumbnails/4.jpg)
Introduction to the Project • Technology: Conventional
boiler/steam turbine– Rice husks are fed to the combustor and
burned to produced to produce heat– Steam generated is passed to steam
turbine which drives an electrical generator
• Rice Husk Power Plant– To cover electricity demand for rice and
flourmill complex– And sell the excess electricity to third
parties
![Page 5: Case Study: Gemina Rice Husk Project Nicaragua (Scenario Analysis and Small-Scale Simplified Methodologies) Carbon Finance Unit The World Bank](https://reader036.fdocuments.us/reader036/viewer/2022062521/56816849550346895dde3676/html5/thumbnails/5.jpg)
Introduction to the Project • Main sources of emission reductions
– Displacement of electricity from fossil fuel
– Methane reduction from avoided rice husk decomposition
– CO2 reduction from substitution of cement
0 / 2,712 t CO2eCO2 cement2,338 / 2,338 t CO2eMethane from husks
7,418 / 11,144 t CO2eCO2 energy
•Projected reduction 21 years: 212,395 t CO2e (low)
•Yearly reductions 2003-2012 (low/optimal)
![Page 6: Case Study: Gemina Rice Husk Project Nicaragua (Scenario Analysis and Small-Scale Simplified Methodologies) Carbon Finance Unit The World Bank](https://reader036.fdocuments.us/reader036/viewer/2022062521/56816849550346895dde3676/html5/thumbnails/6.jpg)
Elements of the Baseline
• Baseline– Electricity would otherwise be produced using
fossil fuels– Dumping of waste husks from Gemina rice
mill in open piles
• Gemina project is small-scale– Renewable energy component less than 15MW– Rice husk power plant directly emits less than
15,000 t CO2e
If biomass is counted as renewable energy direct emissions from the project are zero
![Page 7: Case Study: Gemina Rice Husk Project Nicaragua (Scenario Analysis and Small-Scale Simplified Methodologies) Carbon Finance Unit The World Bank](https://reader036.fdocuments.us/reader036/viewer/2022062521/56816849550346895dde3676/html5/thumbnails/7.jpg)
Elements of the Baseline• Approach for calculating baseline
emissions selected by Gemina– Marrakech Accord 48 a): Existing or
historical emissions, as applicable• Justification of selected approach
– 48 a) defines Business-as-usual as baseline scenario
– PCF interpretation: BAU can be justified by(a) using historic or current information
(control group) or (b) showing that barriers impede other options.
- especially relevant for small scale investments
![Page 8: Case Study: Gemina Rice Husk Project Nicaragua (Scenario Analysis and Small-Scale Simplified Methodologies) Carbon Finance Unit The World Bank](https://reader036.fdocuments.us/reader036/viewer/2022062521/56816849550346895dde3676/html5/thumbnails/8.jpg)
Elements of the Baseline
Barriers to investment identified for Geminaa) Regulatory barriers to access the market for
electricity- Smallest block of electricity that can be
offered on the Nicaragua wholesale market is 5 MW (Gemina 1.6 MW)
b) Competitive disadvantage of non-traditional projects- Lack of precedents regarding integration of
small generators of renewable energy created problems with concessionaire
c) Limited access to credit- Gemina could not attract financing due to
inter alia absence of long-term PPA, high country risk for Nicaragua
![Page 9: Case Study: Gemina Rice Husk Project Nicaragua (Scenario Analysis and Small-Scale Simplified Methodologies) Carbon Finance Unit The World Bank](https://reader036.fdocuments.us/reader036/viewer/2022062521/56816849550346895dde3676/html5/thumbnails/9.jpg)
Elements of the Baseline
• Indicator for restrictive nature of identified barriers:– Gemina rice husk generator is first-of-a-
kind technology in all Central America
• PCF assistance to overcome the barriers– Carbon purchase agreement is secure
revenue stream– World Bank involvement may trigger the
interest of other financial institutions
![Page 10: Case Study: Gemina Rice Husk Project Nicaragua (Scenario Analysis and Small-Scale Simplified Methodologies) Carbon Finance Unit The World Bank](https://reader036.fdocuments.us/reader036/viewer/2022062521/56816849550346895dde3676/html5/thumbnails/10.jpg)
Applicability of Meth Panel’s recommendation for simplified methodologies
• Gemina project falls under category I. D. “Renewable Electricity Generation for a Grid”
• Recommended simplified methodology:– Technology/Measure:
25. Biomass combined heat and power (co-generation) systems that supply electricity to a grid
– Boundary:26. Physical, geographical site of the
renewable generation source
![Page 11: Case Study: Gemina Rice Husk Project Nicaragua (Scenario Analysis and Small-Scale Simplified Methodologies) Carbon Finance Unit The World Bank](https://reader036.fdocuments.us/reader036/viewer/2022062521/56816849550346895dde3676/html5/thumbnails/11.jpg)
Applicability of Meth Panel’s recommendation for simplified methodologies
• Recommended simplified methodology:– Baseline:
28. For a system where all fossil fuel fired generating units use fuel oil or diesel oil, the baseline is the annual kWh generated by the renewable unit times an emission coefficient for a modern diesel generating unit of the relevant capacity operating at optimal load
– Leakage:30. If the renewable energy technology is
new equipment being installed for the first time, no leakage calculation is required.
![Page 12: Case Study: Gemina Rice Husk Project Nicaragua (Scenario Analysis and Small-Scale Simplified Methodologies) Carbon Finance Unit The World Bank](https://reader036.fdocuments.us/reader036/viewer/2022062521/56816849550346895dde3676/html5/thumbnails/12.jpg)
Applicability of Meth Panel’s recommendation for simplified methodologies
• Recommended simplified methodology:– Monitoring:
31. Shall consist of metering the electricity generated by the renewable technology. In the case of co-fired plants, the amount of biomass input and its energy content shall be monitored.
![Page 13: Case Study: Gemina Rice Husk Project Nicaragua (Scenario Analysis and Small-Scale Simplified Methodologies) Carbon Finance Unit The World Bank](https://reader036.fdocuments.us/reader036/viewer/2022062521/56816849550346895dde3676/html5/thumbnails/13.jpg)
Thank you !
Department of Environment and Natural Resources
CDM Training WorkshopNovember 4-6, 2003
Climate Change Information Center Conference Room