Development of CDM Project Idea Notes in Yemen...Furthermore a CDM capacity building workshop was...

Development of CDM Project Idea

Notes in Yemen

Mission Report

Dr. Abdelmourhit LAHBABI [email protected]

September 7 – 13, 2007 On behalf of:

World Bank Institute World Bank MNA Region

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Mission report: Development of CDM PINs in Yemen

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Abstract

In Mai 2007, a World Bank mission consisting of Jaafar Friaa from the MNA Region and Samira El Khamlichi from WBI, was organized under WBI CF Assist program for MNA region with the objectives of i) organizing a CDM training workshop and ii) identifying a preliminary pipeline of CDM projects. The WB mission identified eight promising CDM projects in different sectors that can be developed and made a preliminary emissions reduction evaluation based on the available information gathered during the mission. Following this pre-identification mission, the WB decided to hire a short term international consultant to assess the CDM pre-identified projects and develop the PINs for the promising ones. The Terms of Reference (TORs) of the consultant assignment is provided in annex A of this report. The eight CDM projects pre-identified covered three main sectors: i) Energy sector (Renewable Energy, Natural Gas, Energy Efficiency, and Fuel Switching) ii) Urban Development (Municipal Waste, Wastewater treatment) and iii) Rural Development (Animal Waste to Biogas; Photovoltaic for Rural Electrification). Besides CDM projects development in Yemen, the scope of the assignment comprises as well CDM national capacity building and awareness raising on the economical and environmental benefits of the CDM. In this regard, a half-day training workshop targeting potential projects’ promoters and consulting firms was organized during the mission. The field mission was carried out in close cooperation with the DNA and with a local consultant recruited by the World Bank to assist in the completion of the assignment. The local consultant helped collect the data during the field trip, curry out the interviews of the concerned stakeholders, assess the projects and help identify pertinent recommendations for CDM reinforcement in Yemen. Yemen offers high potential of rapid CDM development benefiting from a very active DNA, a high political motivation for clean technologies and clean projects development, and various international assistance partnerships programs that can facilitate projects financing. The eight pre-identified projects were assessed for their technical CDM potential based on the data and information collected during the field mission. On the eight potential projects, the PINs of the following four promising projects were developed:

Al Mokha wind project ; Methane capture and flaring at Sana’a landfill ; Methane capture and flaring at Aden Waste Water Treatment Plant ; Rural electrification by solar PV installations.


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The four PINs are provided respectively in annexes E, F, I and H. Assessment notes of the four remaining projects justifying the reasons for not recommending their CDM development are presented in the report and in annexes G and J. Provided financing, the four selected projects could be implemented rapidly. The emissions reduction that can be generated from their activities has been estimated at 257 000 t CO2/year and the total investment required at 120 M$. Besides the considered projects and sectors, Yemen offers many other CDM opportunities. In this regard a sectoral approach is recommended for future WB interventions. These interventions should focus on the promising and unexplored following sectors:

Natural gas Cement sector Oil installations Energy efficiency and fuel switching programs


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Table of Contents

Abstract ..................................................................................................................2 Table of Contents ...................................................................................................4 Abbreviations..........................................................................................................5 1 Introduction .........................................................................................................7 2 CDM workshop.....................................................................................................7 3- CDM projects evaluation ...................................................................................10 3-1 Introduction…. ......................................................................................10

3-2 Al Mokha Wind farm ............................................................................ 11

3.3 Mocha Electric Production Station....................................................... 13

3.4 Marib gas power plant ......................................................................... 14

3.5 Photovoltaic for rural electrification ..................................................... 16

3.6 Biogas from animal waste ................................................................... 18

3.7 Sana’a municipal waste landfill............................................................ 19

3.8 Sana’a wastewater treatment plant ..................................................... 21

3.9 Aden wastewater treatment plant ........................................................ 24

3.10 Other potential projects ..................................................................... 26

Annexes................................................................................................................ ..28

Annex A: Terms of reference

Annex B: Main stakeholders met during the mission

Annex C: Workshop participants

Annex D: Workshop presentations

Annex E :PIN of Al Mokha Wind Farm project

Annex F :PIN of the Sana’a landfill Methane Recovery and Flaring project

Annex G : Evaluation of the biogas recovery and energy co-generation in Sana’a waste water treatment plant project

Annex H: PIN of the Decentralized Rural Electrification by PV project

Annex I : PIN of Biogas Recovery and Flaring project at the Aden WWTP

Annex J: Evaluation of Biogas Recovery from Animal Waste project


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Abbreviations

ACF : Aden Cleaning Fund

AWSLC : Aden Water and Sanitation Local Corporation

BOD5 : Biological Oxygen Demand

CDM : Clean Development Mechanism

CER : Certified Emissions Reduction

CF : Carbon Finance Unit – World Bank

CHP : Combined Heat and Power

DNA : Designated National Authority

PV : Photovoltaic

EE : Energy Efficiency

EPA : Environment Protection Authority

ER : Emissions reduction

EU : European Union

FAO : Food and Agriculture Organization

GHG : Green House Gases

GWh : Giga Watt hour (109 Watt hour)

Ha : Hectare or 10 000 m2

KP : Kyoto Protocol

kt : kilo ton (1000 tons)

LCWSSA : Local Corporation for Water Supply and Sanitation for Aden

LFG : LandFill Gas

LNG : Liquefied Natural Gas

m3 : Cubic meter

MNA : Middle East and North Africa region

Mg : Milligrams 10-3 grams

MW : Mega Watt (106 Watt)

MWE : Ministry of Water and Environment

MWh : Mega Watt hour

NGO : Non Government Organization

NWSA : National Water Sanitation Authority

PDD : Project Design Document


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PEC : Public Electricity Corporation

PIN : Project Idea Note

RE : Renewable Energy

RES : Renewable Energy Source(s)

SFD : Social Fund for Development

SHS : Solar Home Systems

SVS : Sana’a Veterinary School

SWSLC : Sana’a Water and Sanitation Local Corporation

TSS : Total Suspended Solids

UNESCO : United Nations Educational, Scientific and Cultural Organization

UNFCCC : United Nations Framework Convention on Climate Change

WB : World Bank

WBI : World Bank Institute

WHO : World Health Organization

WWTP : Waste Water Treatment Plant

y : year

YCC : Yemen Corporation for Cement industry and marketing

YECO : Yemeni Economic Corporation

YGC : Yemen Gas Company

YPC : Yemen Petroleum Company

YR : Yemeni Rial

Currency exchange rate: 1 $ = 198.8 YR


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1- INTRODUCTION

The World Bank mandated Dr. Abdelmourhit Lahbabi, as team leader, and Dr. Omar Al-Sakaf as national consultant, to assess the CDM potential in Yemen and develop the PINs for the most promising projects identified. The mission took place during the period of September 7 – 13, 2007. The designated consultant team visited all major administrations and corporations concerned with the development of the potential CDM projects pre-identified by the WB mission. Meeting were organized with the DNA, the Ministry of Water and Environment (MWE), the Environment Protection Authority (EPA), the Public Electricity Corporation (PEC), the Social Fund for Development (SFD), the Sana’a Water and Sanitation Local Corporation (SWSLC), the Sana’a Cleaning Fund (SCF), the Yemen Gas Company (YGC), the Sana’a Veterinary Secondary School, the Aden Governorate, the Aden Cleaning Fund (ACF) and the Aden Water and Sanitation Local Corporation (AWSLC); (See annex B). The meetings with the main stakeholders focused on potential CDM projects development and required data/information gathering. Special attention was given to the scope of projects activities, projects objectives, projects status, expected implementation schedule, cost and financing, potential emissions reduction and projects’ CDM additionality. A one day visit was devoted during the mission, to Aden. The trip included meetings with the Governor and the managers of the Aden landfill and waste treatment plants. The Aden trip was concluded by a visit to the Aden Ash Shaab WWTP. Furthermore a CDM capacity building workshop was organized for more than thirty local consultants and potential projects’ holders. The presentations provided a general overview on the national and international CDM contexts and covered the following topics: CDM cycle, PINs and PDD development, methodologies, additionally concept etc. Two group working sessions were held for interactive exercises on PINs development. The local consultant helped collect the data during the field trip, curry out the interviews of the concerned stakeholders, assess the projects and help identify pertinent recommendations for CDM reinforcement in Yemen. This report summarizes the results of the mission tasks, presents the CDM projects assessment and PINs and highlights the recommendations for further development of CDM activities in Yemen.

2- CDM workshop The objective of the workshop was to raise the awareness of the potential projects promoters on the benefits of CDM, help identify projects ideas and develop the capacity of local consultants. Overall, some thirty public and private sectors stakeholders and consultants have participated in the workshop (see annex C for the participants list) The workshop agenda is provided in the following page and the presentations are given in appendix D.


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Under the auspices of the

Minister of Water and Environment

HE Abdul Rahman F. Al-Eryani

Training workshop for national consultants and experts on:

“Clean Development Mechanism (CDM)”

September 12th, 2007 (09:00-13:00)

PROGRAMME

8:30-9:00 Registration

9:00-9:15 Welcome opening session His Excellency the Deputy Minister of Water and Environment

9:15-9:30 1- Kyoto Protocol, CDM State of the carbon market

Dr. Lahbabi Consultant for the WB

9:30-10:00 2- Role, organization and operation of the Yemeni CDM DNA

Dr. Lia Sieghart EPA DNA Sec

10:00-10:30 3- CDM Project Cycle: How to identify and develop a CDM project. Example of CDM projects. Dr. Lahbabi

10:30-10:45 Discussions

10:45-11:00 Coffee Break

11:00-11:30 4- How to write a PIN - Technical aspects of CDM (Additionality, Baseline methodologies) Dr. Lahbabi

11:30-11:45 Discussions

11:45-12:15 5- Interactive exercise on how to develop a PIN for a CDM project in Solid waste sector Dr. Lahbabi

12:15-12:45 6- Interactive exercise on how to develop a PIN for a CDM project in Renewable energy sector Dr. Lahbabi

12:45-13:00 Closing


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Workshop minutes: The workshop has attracted a good participant turnout from various backgrounds. Attending participants consisted of more than thirty public institutions and private companies’ stakeholders, university professors, consultants etc. Two presentations covering the national and international contexts of the CDM were offered as introduction to the workshop. They outlined the modalities and requirements of the UNFCCC, Kyoto Protocol (KP), Marrakech accords and the CDM. On the national level, the role of the DNA and the local procedures for CDM projects approval were presented. An overview of carbon finance and CDM market was offered during the first session of the workshop. The second session of the workshop focussed on the CDM rules, modalities and procedures. The CDM projects’ development cycle was presented and explained step by step. CDM methodologies and additionally were illustrated with many examples from various sectors: solid waste, renewable energy, energy efficiency, fuel switching, waste water treatment, etc. Two interactive exercises were carried out in working group sessions. They illustrated CDM projects PIN development through two practical cases: Sana’a landfill and Al Mokha wind farm projects. The discussions held were mainly focussed on the CDM procedures, methodologies and additionally. Despite the fact that the presentations made clear the main roles of the DNA and the project proponents, it was perceptible from the discussions that some participants still expect the DNA to initiate and take in charge the development of their CDM projects. Clarifications have to be made that the CDM is voluntary and the project development is the full responsibility of the promoter. The role of the DNA is to set up the enabling environment for the CDM development, raise the CDM national awareness, facilitate partnership, mobilize additional resources, set the approval modalities and procedures etc. Some participants’ questions were very focussed on the CDM development on specific sectors namely cement industry, oil and gas industry and municipal waste. These questions highlight the rise of the participants’ interests from the general CDM issues to the specifics of particular sectors. They also underline the need for future capacity building workshops targeting these sectors. The overall appreciation of the workshop is very positive. The participants had the chance to get exposed to all aspects of the CDM projects development. Special attention was given in the workshop presentations to practical examples, illustrations and interactive participation. The following practical recommendations should improve the organization of future CDM workshops in Yemen:

English understanding in Yemen is limited. The presentation should be done preferably in Arabic. The slides should be prepared in Arabic or English/Arabic


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A larger and more comfortable workshop location would have help accommodate more participants and facilitate the presentations and discussions1

A workshop evaluation sheet should be provided for the workshop assessment by the participants

Organization of sectoral CDM workshops with the active participation of the Ministries and the professional associations concerned. The three following workshop topics are recommended: 1) CDM in practice: how to implement CDM projects in the industrial sector (EE, cogeneration, fuel switching, clean technologies, etc.) 2) CDM for the gas and oil industries (in collaboration with Yemen Gas Corporation and Yemen Petroleum Company) 3) CDM projects in the cement sector (with the Yemen Corporation for Cement Industry and Marketing YCC and the new cement private companies).

3- CDM projects evaluation 3-1 Introduction The main objective of the mission is the assessment of the CDM potential in Yemen and the development of the PINs for the most promising CDM projects identified. The CDM projects to be considered were first identified by a previous mission of the WB (See TORs in annex A). The eight CDM projects hence pre-selected and considered for the assessment mission are as follows:

1. Al Mokha wind farm ; 2. Mocha electric production station ; 3. Marib gas power plant ; 4. PV photovoltaic for rural electrification ; 5. Biogas from animal waste ; 6. Sana’a municipal waste landfill ; 7. Sana’a wastewater treatment plant ; and 8. Aden wastewater treatment plant.

The pre-selected projects are analyzed below for their CDM feasibility and PINs for four promising CDM projects are presented in annexes E, F, H et I. Besides the PINs, financial analysis based on a WB financial model should have been carried out for the selected projects. Due the fact that most selected projects are at the preliminary study stage, the required projects’ financial data are not available. The financial analysis at this projects’ development stage, has to be limited to the preliminary cost estimation required by the PINs template.

1 The workshop was held in the EPA building


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3-2 Al Mokha Wind farm The PIN of the Al Mokha Wind Farm is provided in annex E and summarized below. Project description and objectives The project consists of a 50 MW wind farm erection in Al Mokha Yemen designed to provide electricity for the national grid. The main objective of the project is to help promote the use of renewable energy in Yemen and reduce its heavy dependence on fossil fuels for electricity generation. With an average wind velocity of 7.5 m/s at 40 m and 6 m/s at 20 m, the site is considered very favorable for wind farms implementation. Project status A detailed feasibility study has been carried out for a 15 MW wind project in Al Mokha. Wind data are available. The measurement campaign has been carried out during one year (December 2005 to December 2006). Design studies have not been done and financing has not been secured yet. Project Participant The project is to be developed and managed by PEC Project context Many studies have shown that Yemen is endowed with significant renewable energy resources such as wind, solar and geothermal energies. These resources can help sustain large-scale commercial power development as well as small-scale decentralized system to meet the energy needs of rural and remote communities. To develop these resources and stimulate private investments in RE, a national renewable strategy has been recently adopted and a renewable energy contribution target of 8% of the total grid-based electricity generation in 2018 has been proposed. To date, all grid-based electricity is generated in fossil fuel powered plants. The project will help kick-off the action plan for the RE development strategy in Yemen. It should have a tremendous leverage effect on the RE sector development. Apart from the mentioned RE strategy set objectives, there is no legal obligation for the participant to implement the project. Also, to date, there is no incentive or preferential tariffs for renewable energy based electricity. Expected emissions reductions Expected annual emissions reductions: 120 000 tCO2


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Baseline, methodology and additionality In the absence of the project, which is the business as usual scenario, all the electricity distributed through the grid will continue to be generated by fossil fuel combustion associated with GHG emissions. The approved CDM consolidated methodology for grid-connected electricity generation from renewable sources ACM0002, can be used. The additionality of the project can be justified by the investment and technological barriers. Estimated cost The total investment cost has been estimated at 102 millions $. Benefits The project will help enhance the local air quality, reduce the dependence of Yemen on fossil fuel and demonstrate the sustainability of RE based power plants in a region dominated by the use of fossil fuels. As a first CDM project, Al Mokha wind farm should have an inducing effect on the development of other CDM clean projects in Yemen Potential risks Potential risks associated with the project activity: technical limit to the wind farm integration to the existing electricity grid and PEC’s lack of experience in wind farm implementation and management. Overall appreciation and recommendations The overall appreciation of the project is very positive. There should be no problem in validating and registering the related CDM project. The following recommendations should help mitigate the project risks identified above:

A technical study on the optimum capacity of the wind farm with respect to the technical constraints of the distribution grid should be carried out.

The project activity should comprise a comprehensive capacity building

program for PEC’s staff and an operational management and maintenance contract for at least two years.


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3.3 Mocha Electric Production Station Project description and objectives The Mocha project is an innovative wind alternators based power station consisting of towers producing electricity by using the air stream generated by air temperature difference at the bottom and the top of the tower. Mocha is located at the southwest coast of Yemen. The location of the new power plant is planned in the close vicinity of the existing Mocha 130 MW thermal power plant. The new tower wind power station would benefit from the existing switching installation and interconnection distribution line. The new power station will consist of 24 towers with a total capacity of 20 MW. According to the feasibility study done by the promoters, the electricity produced does not depend on the local wind conditions and the station will produce continuously, with a minimum maintenance work, around 480 MWh/day. Project status The feasibility study has been carried out. Financing of the project has not been secured and PEC did not approve the project yet. Project Participant The project is to be financed and implemented by a private Turkich company “Micro Ceramic Turk” in collaboartion with PEC probably on kWh selling basis. Project context All grid-based electricity is generated in fossil fuel powered plants. The new power station would be the first project to generate electricity at an industrial scale for the national grid. It would also be the first major RE project. Expected emissions reductions Based on the electricity generation estimated in the project feasibility study the emissions reductions are evaluated at around 115 000 tCO2/year2. Baseline, methodology and additionality In the absence of the project, which is the business as usual scenario, all the electricity distributed through the grid will continue to be generated by fossil fuel combustion associated with GHG emissions. The approved CDM consolidated methodology for grid-connected electricity generation from renewable sources ACM0002, can be used.

2 Based on a 330 days/year power station operational rate.


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The additionality of the project can be justified by the investment and technological barriers. Estimated cost The total project cost has been estimated by the promoters at 30 millions $. Benefits As a renewable energy source based, the project will help reduce the emissions of GHG and air pollutants associated with electricity generation in Yemen. Potential risks The technology used by the project is not mature and it’s still at its experimental stage. The project has a high technological risk. Overall appreciation and recommendations For a first major project in RE and CDM, Yemen should not embark in a “to be proven technology” or innovative projects. It is recommended to concentrate the development efforts on the identified other promising projects that offer a better implementation chance with minimum technological and CDM registration risks.

3.4 Marib gas power plant Project description and objectives The project aims at the construction of a 730 MW natural gas fired power station in Marib. The main objective of the project is the use of a clean technology to meet the increased electricity demand of Yemen and help reduce the impact of the Yemen economic development on GHG emissions. Project status The project of the Marib Gas Power Station is implemented into two phases:

A first 340 MW power plant Marib 1 is currently under construction. The start of the electricity production is planned in mid 2008.

A second Marib 2 power plant with a nominal capacity of 400 MW will be

commissioned in 2008. Project Participants The Public Electricity Corporation (PEC) and Yemen Gas Company (YGC)


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Project context Electricity access in Yemen is limited to about 40% of the total population. In rural areas, the electrification rate is very low at around 20%. The low access and the absence of reliable electricity supply constitute major constraints to industrial development and economic growth in Yemen. PEC is responsible for the production and supply of about 80% of the electricity consumed in Yemen. The rest is generated by local community cooperatives, private industries, hotels, and individual private operators. The total annual electricity generated in 2004 was 3 707.3 GWh. The average growth rate of electricity generation by PEC over the past six years was about 7% per annum. Electricity is generated by three steam turbine-generator units in Ras Katnib, Al Mokha and Hiswa and by nine diesel power stations, with a total installed nominal capacity of 783.4 MW. The current power production park is thus dominated by fossil fuels use namely fuel oil and diesel Concerning natural gas, Yemen’s reservoir has been estimated at 16.34 trillion cubic feet, and its reservoir of liquefied gas at about 43 million metric tons. According to officials, the proven gas reserves are sufficient to produce around 6.2 million metric tons a year of LNG for a period of more than 25 years. A private consortium has been commissioned to build a 220 km pipeline from Marib to Mabar region. A total of 1 trillion cubic feet of the gas production has been allocated to the domestic market. Despite the fact that the new natural gas based power plants in Marib will double the installed capacity of the plants feeding the grid and help offset the power deficiency situation, the use of fossil fuel in the power sector will still remain dominant. Thus, the power sector will continue to be one of the first sources of GHG emissions in Yemen. Baseline, methodology and additionality The CDM additionality of the project will be very hard to justify as the natural gas is now the prevailing technology around the world for power stations. About 64% of the power generated in the oil producing countries of the Middle East is based on natural gas firing. Also, the gas utilization project looks very profitable. According to its feasibility study, the project’s internal rate of return exceeds 40%. Overall appreciation and recommendations For the above mentioned reasons, the project’s CDM development is not recommended. However, the natural gas sector comprises various promising CDM projects, namely:

Switching from fossil fuels to natural gas ( Approved Methodology AM0009) Natural gas based cogeneration systems ( AM0014) Flare reduction and gas utilisation in natural gas facilities ( AM0037)


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For these projects, feasibility studies are needed to better define the projects scopes and activities and to help assess their CDM potential.

3.5 Photovoltaic for rural electrification The PIN of the PV project for rural electrification is provided in annex H and summarized below. Project description and objectives The purpose of the project is to provide access to renewable electricity to some 20000 rural households living in remote villages in Yemen. The project will help meet the basic electricity needs of the targeted villages through the installation of PV based individual Solar Home Systems (SHS) or collective systems with local distribution grids Project status The project is at its early design phase. Project Participant Public Electricity Corporation Project context Yemen is the least electrified country in the MENA region, with only about 40% of the total population having access to electricity. 75% of the population lives in rural areas with a concentration in the coasts and the prairies. The climate is very variable and the access to most villages is difficult. In rural areas, the electrification rate is very low at only about 20%. More than half of the rural power supply comes from cooperatives, the private sector, and auto-generation. The low access and the absence of reliable electricity supply have been recognized as severe constraints to economic growth in Yemen, and to the achievement of the Government of Yemen’s poverty alleviation objectives. A national renewable strategy has been recently adopted and a renewable energy contribution target of 8% of the total grid-based electricity generation in 2018 has been proposed. Three reference studies pertinent to the project activity have been recently carried out:

1-National Rural Electrification Strategy Study, 2-Market Study and Pipeline Development for Solar PV 3- Solar Energy resource assessment, Lahmeyer, June 2006.

The total technical potential of SHS in Yemen has been evaluated at some 43.4 MW


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Expected emissions reductions Based on a national electrification program of 160 villages, the annual average emissions reduction is estimated at 2 300 tCO2. Baseline, methodology and additionality In the absence of the project activity, which is the business as usual scenario, the targeted villages will either continue to do without electricity or use the prevailing electrification option of diesel generators. The additionality of the project can be justified by investment, financial and technological barriers. The approved small scale CDM methodology AMS IA for electricity generation by the user from renewable sources could be used, but the project should certainly be developed as a CDM program of activities. Estimated cost The total project cost has been estimated at 13.3 million $ corresponding to an average cost of 692 $/household for a capacity of 8.4 kWp per village. Benefits The project will help provide electricity access to household living in rural isolated villages. The use of solar energy will help enhance the local air quality, reduce noise nuisance and help reduce the dependence of Yemen on fossil fuel. Access to electricity has a tremendous potential social and economical role in transforming peoples’ lives in rural villages, particularly for women and children. It can help reduce drudgery and enable poor households to engage in, and extend, activities that generate income. Electric lighting extends the working day, increase productivity and help reduce illiteracy. Besides households’ applications, access to electricity can help provide energy for quality community services (education, health, clean water supply) as well as help create basic income generating activities in rural areas. Potential risks The PV technology is mature and does not entail any technological risk and the maintenance of the SHS is easy. Overall appreciation and recommendations Despite the fact that the emissions reduction related to the project activities is not very important the project has a tremendous social impact on the quality life of rural households.The project should not have any problems for registration as CDM project.


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3.6 Biogas from animal waste Project description and objectives Conversion of animal waste to biogas through anaerobic digestion processes can provide added value to dung as an energy resource and reduce environmental problems associated with animal wastes. The objective of the project is to help implement a program of family/cooperative size biodigesters in rural areas to produce biogas for cooking and lighting. The use of rich methane biogas (around 60%) will help reduce the consumption of fuel wood and kerosene associated with deforestation, atmospheric pollution and GHG emissions. Project status Many small scale projects biogas digesters have been carried out and recently a 10 m3 pilot project has been implemented at the Sana’a Veterinary School (SVS). According to PEC the Social Development Fund has agreed to finance a national program for the implementation of 600 family size biodigesters over a period of three years: 2008-2010. Also the Ministry of Agriculture and Yemeni Economic Corporation (YECO; www.yeco.info) seem to be interested in the implementation of one or two biodigesters in cattle industrial farms (500 to 700 heads). A detailed feasibility and design Study has been carried out by Pr. Moslih of the Sana’a Veterinary School for a biodigester at Rosaba farm located in Dhamar. Project Participants Social Development Fund and YECO Project context The first biodigeters in Yemen were implemented by the World Health Organization in the nineties. They ranged from cooperative size biodigeters 100 m3 to a volume of more than 1000 m3 for industrial cows and poultry farms, fish wastes factories, etc. Most of these installations did not last more than two to three years for among others reasons, poor design, lack of maintenance and technical capacity deficiency. Since 2002, some 200 biodigesters have been constructed in Yemen under different programs: Ministry of Agriculture and the Arab Center for the Studies of Arid Zones and Dry Lands, Care NGO and the Social Development Fund. Given the cumulated operational experience and the various training and technical assistance programs implemented by the Social Development Fund, the Ministry of Agriculture and the Sana’a Veterinary School, many biodigesters are still operational. An interesting 10 m3 pilot project based on a mixed Egyptian/Chinese model design has been implemented at the Sana’a Veterinary School (SVS)3. 3 See annex J for more details


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Expected emissions reductions In theory the capture and use of rich methane biogas should result in GHG emissions reductions and benefit from CDM. In practice the CDM certification of biodigeters activities is more complex. Unless there is an industrial activity involving 5 000 cows or more, the capture of biogas from anaerobic digestion of animal waste does not generate much CERs! Emissions reduction evaluations are done as illustration, for a dairy farm with 1000 cows and a typical biodigester for rural family. The calculation results are provided in annex J. The two examples show that the potential emissions reductions are very limited: 380 t eq. CO2/y for a farm of 1000 cows and an insignificant 0.38 t eq. CO2/y for a typical rural family. Overall appreciation and recommendations Given the fact that i) there is no commitment from either Social Development and YECO to finance and carry out a national program of biodigeters development in rural villages and in industrial farms and ii) that the potential of emissions reductions of biodigesters use is very low, it is recommended that this project should not be considered for CDM development.

3.7 Sana’a municipal waste landfill.

The PIN of the Sana’a municipal waste landfill project is provided in annex F and summarized below: Project description and objectives The project activity consists of biogas recovery and flaring at Sana’a landfill. The main objectives of the project is to reduce the GHG and other odorous emission from the landfill, avoid the fires and explosion hazards in the site and help ensure a cleaner air quality in the area surrounding the landfill. Project status The project is at early stages of development. There are no feasibility or biogas assessment studies done yet. Measurement are currently carried out to help characterize the municipal waste Project Participant Cleaning Fund, Sana’a Governorate


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Project context The Sana’a landfill site opened in 1980 with an initial area of 350 000 m2. It is used for municipal waste disposal of Sana’a municipality, part of Sana’a governorate and Amran city. Some 1000 t/day of municipal waste are deposited in the landfill. In 2004, the site area was extended to 144 ha by acquiring some 114 ha of neighbouring land. According to the landfill manager, with this extension the site can meet the needs of the concerned districts up to 2050. The site access is controlled. Waste received is weighted at the gate, compacted and covered daily. The coverage practice started in 2001 to reduce the LFG emissions and fire hazards. The total landfill surface currently used is estimated at 280 000 m2. The total cumulated waste in the landfill has been estimated at 7 millions tons with an average height of 30 m. The legal requirements for the disposal of waste in landfills are defined in “Law N°39/1999 on regard of the public cleaning”. A by-law for Law N°39 which further specifies the legal requirements for solid waste disposal has been elaborated based on the detailed guidelines for municipal waste disposal adopted in a workshop held in Sana’a in September 2001. It seems that the by-law draft has not been approved yet. It’s important to note though that the waste guidelines have recommended that disposal sites serving a population of 500.000 or more have to install a gas collection and incineration system if the height of the disposed waste exceeds 10 m. If approved, these guidelines could affect the additionally of the Sana’a landfill project. Expected emissions reductions Based on the conservatives assumptions detailed in annex F, the emissions reduction resulting from the project activities is evaluated at 92 000 t CO2/year. Baseline, methodology and additionality In the absence of the project activity, emissions of methane associated with the anaerobic organic waste fermentation will continue since there is no reinforced regulation or incentive scheme in place for landfills capturing and flaring or using. The approved CDM consolidated methodology for landfill gas project activities ACM0001, can be used. Estimated cost The total development and implementation cost of the project has been estimated at 1.95 million $. Benefits LFG capture and flaring in Sana’a landfill has several positive social and environmental benefits. Besides the GHG emissions reduction, it will help:


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Reduce the risks associated with fires and explosions in and around the landfill.

Improve the local environment by reducing the amount of noxious air pollution arising from the landfill, resulting in a considerable reduction of nuisance caused by the odours and also health risks associated to these emissions.

Improve the quality of life of the neighbouring communities (reduction of fire hazards, explosion hazards, improvement of air quality, reduction on noxious air pollution and odours nuisance etc.)

Provide a model for managing LFG throughout Yemen Reinforce Yemen capacity in municipal waste management; also With the reduction of the air pollution and odours, the prices of the nearby real

state should increase resulting in a positive economic effect on the owners. Reducing the noxious odours can also help improve the status of the land in the vicinity of the landfill and help create new economic development projects.

Potential risks Capture and flaring of biogas is basic technical activity. With a well designed capture network and flare system, the project activity should not present any technical risk. The CDM approved methodology associated with the project activity has been largely used. The project CDM additionally is obvious. Overall appreciation and recommendations The overall appreciation of the project is very positive. The emissions reduction evaluation is conservative and thus, the CERs should meet easily the estimated target.

3.8 Sana’a wastewater treatment plant

Project description and objectives The main objective of the project is the extraction of the methane rich biogas from the sludge of the Sana’a Waste Water Treatment Plant (WWTP). The biogas collected is to be used as fuel in a Combined Heat and Power (CHP) installation to generate thermal heat and electricity. The recovery of the biogas from the sludge digestion will help avoid the direct emanations of methane in the atmosphere from the WWTP sludge and reduce the plant electricity consumption. Project status A project for the WWTP extension and upgrade is envisaged by the Sana’a Water & sanitation local Corporation. The project consists of the installation of three additional settling tanks, new grit removal chamber, 4 sludge thickeners, 3 anaerobic closed digesters and 4 CHP units.


22

The project activity of methane capture and electricity generation is part of the WWTP extension project. The feasibility study of the project has been carried out and part of the project financing has been secured. Project Participant The project will be implemented and managed by the Sana’a Water & Sanitation Local Corporation. Project context The Sana’a WWTP started in Mai 2000. The plant was designed for the treatment of 50 000 m3/day of waste water characterized by a BOD5 of 500 mg/l and a TSS of 750 mg/l to be abated to a BOD5 of 30 mg/l and a TSS of 30 mg/l. Given the current high pollution load of water influents (BOD5 of more than 1200 mg/l) the WWTP cannot achieve an adequate water treatment as designed. The BOD5 of the actual effluent treated water is in the range of 150 to 200 mg/l. This high organic pollution of Sana’a waste water reflects a relatively low water usage which contributes to a high pollution load affecting the treatment performance of the WWTP. The WWTP disposes of eight aeration tanks with a total capacity of 96 000 m3 (12000 m3 each tank). A project for the WWTP extension and upgrade is envisaged by the Sana’a Water & sanitation local Corporation. The aim of the project is to ensure an organic pollution abatement level to 30 mg/l in terms of BOD5 for the water effluents, to help reduce the CH4 atmospheric emanations from the sludge and reduce the WWTP’s electricity consumption. Energy consumption The actual electricity consumption of the WWTP is estimated at 22.56 GWh/year. It’s mostly used by the treatment tanks aerators of the sludge thickeners. The project will require more power for the additional installations and thermal energy for the anaerobic closed digesters to maintain the sludge optimum temperature in the digesters. The expected energy consumptions of the plant after its upgrade and extension are estimated at:

Electricity: 38.53 GWh/y Thermal energy: 4.95 GWh/y

The energy produced by the biogas fired CHP unit is estimated at:

Electricity: 14.31 GWh/y Thermal energy: 19.71 GWh/y


23

Accordingly the energy generated at the WWTP will cover 37% of the electricity required for the plant operation. The rest, estimated at some 24.22 GWh/y, should be provided from external sources (PEC). This is slightly higher than the actual electricity consumption of the plant: 22.56 GWh/year. Concerning thermal energy produced by the CHP unit, on a total of 14.31 GWh/y generated, 4.95 GWh/y will be used in the digesters and the rest can eventually be exported to neighboring facilities (nearby Sana’a Airport for example). With regards to GHG emissions associated with the plant energy consumption, unless there is a useful use for the thermal energy in excess, the WTPP upgrade and extension project will result in more emissions associated with the plant energy consumption Expected emissions reductions The project activity consisting of the introduction of anaerobic sludge treatment system with methane recovery and combustion to an existing wastewater treatment plant without sludge treatment, is conform with the requirement of the approved small scale methodology AMS III-H : Methane Recovery in Wastewater Treatment The part of the project activity related the valorization of the recovered methane for heat and electricity generation can use a corresponding category under type I, namely AMS I-C Thermal energy for the user with or without electricity These two methods have been used to assess the potential emissions reduction associated with the project activity. For the energy part, the above paragraph establishes clearly that the project will actually generate more GHG emissions unless the excess thermal energy can be used in the plant or in another neighboring facility. The results of the approved methodology AMS III-H application to the project activity to evaluate the GHG emissions reductions are presented below for the baseline and project activity. Here also, for a baseline estimated GHG emissions of 54.8 kt CO2 eq/y, the expected project’s GHG emissions have been evaluated at 83 kt CO2 eq/year ! Given the fact the project activity entails the methane recovery and use, this result seems contradictory! In fact, the increase of the emissions can be explained by the following underlying two factors:

The energy generated compensates more or less, the additional project’s energy needs; and

Sludge emissions when used for soil application are considered

insignificant for both the baseline and the project.


24

Of course one might argue that methane rich sludge of the baseline will emit more during drying than the project’s digested sludge, but this has to be established by measurement and will certainly require the approval of a new CDM methodology. Overall appreciation and recommendations In conclusion, this project, as designed, is not interesting from the CDM point of view. It should not be considered for CDM development.

3.9 Aden wastewater treatment plant ; Project description and objectives The main objective of the project is the extraction and flaring of the methane rich biogas from the anaerobic ponds of Aden Waste Water Treatment Plants (WWTP). The recovery and flaring of the biogas will help avoid the direct emanations of methane in the atmosphere from the WWTP ponds and hence reduce the plants GHG emissions. The project is to be carried out in the sites of Aden’s two WWTPs: the Ash Shaab treatment plant located on the road passing southwards to Little Aden and Al Arish plant located at some 11 km from Aden on the coastal road to Abyan. Project status The project is at the idea concept stage. No development studies have been done yet. Project Participant The project will be managed and implemented by the Aden Local Water & Sanitation Corporation (ALWSC ) the public operator of both Aden’s WWTPs. Project context Aden city, the capital of the Aden Governorate, is located at the Gulf of Aden. It is the most important economic centre in Yemen due to its sea port and industrial free zone area. The population of Aden Governorate is 1.5 million, of which almost half live in the city of Aden. The city benefits from a well developed water supply and sewerage system with high connections rates compared with other communities in Yemen. The water supply and wastewater systems are operated by the Local Corporation for Water Supply and Sanitation for Aden (LCWSSA), which was created as an independent utility in 2000 from the former National Water Sanitation Authority (NWSA) branch.


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Aden Governorates waste water is treated in two WWTPs: Ash Shaab and Al Arish WWTPs servicing respectively the Governorate north region and south region. The total waste water treated is estimated at 42 000 m3/d corresponding to a generation ratio of 77 l/capita/day. A feasibility study, funded by kfW was carried out in 2003 for the reuse of treated effluent and sludge from the wastewater treatment plants in Aden, Amran, Hajjah, Ibb and Yarim. The study analyzed the operating and local conditions of Aden’s WWTPs and proposed specific recommendations for the stations capacity extensions and the enhancement of the effluent and sludge quality. Concerning policies and legal requirements with regard to wastewater, up to date the focus has been put in Yemen on improving sanitation services and on appropriate treatment for the effluent safe discharge as means of reducing the impact of waste waters on health and environment. A proposal for a National Wastewater Strategy was developed by the FAO in 2000 under the ‘Watershed Management and Wastewater Re-use in Peri-urban Areas of Yemen’ project. The proposed strategy has not been adopted by the government of Yemen. Wastewaters norms in Yemen are defined in the Yemeni Standards No.149 of 2000 on Industrial and Commercial Wastewater. There are no directives in Yemen on urban wastewater treatment and no legal obligation for WWTP biogas capture or flaring Expected emissions reductions The project’s emissions reductions have been evaluated at around 42 600 t eq. CO2 eq./y. An additional reduction of 5 400 t eq.CO2 per year could be achieved if the option of using electricity is retained instead of flaring. Baseline, methodology and additionality The project activity involves the biogas recovering and flaring for the sole objective of GHG emissions reduction and malodors control. In the absence of the project, which is the business as usual scenario, there will no biogas recovering and CH4 emissions will continue. There is no legal obligation for the project proponent to invest in recovering and flaring installations. The additionality of the project can be justified by the following arguments/barriers:

(i) there is no regulation or incentive scheme in place covering the project

(ii) the project is implemented for the sole purpose of GHG reductions (iii) the project activity has no financial benefits nor incentives other than (iv) the CDM revenue (v) no other WWTP in Yemen is recovering nor flaring the biogas


26

For the electricity generation alternative, iii won’t be valid and technological and investment barriers should be invoked for the additionality justification. Estimated cost The total cost of the capture and gas flaring of both WWTPs has been estimated at 2 millions $. Benefits Besides reducing GHG emissions, methane capture and flaring in Aden’s WWTPs has several positive social and environmental benefits:

Reducing the malodors associated with biogas emanations in the sites vicinity.

Improving the local environment by reducing the amount of noxious air pollution arising from the biogas emanations in the plants, resulting in a considerable reduction health risks associated with these emissions and the nuisance caused by their odors.

Providing a model for managing of biogas in WWTPs throughout Yemen;

Reinforcing Yemen capacity in waste water management

Potential risks The capturing and flaring of biogas in WWTP is basic process that does not entail any technical risk. The CDM additionality can be readily established for the flaring option. Electricity generation and use option should be profitable and could pose a CDM additionality risk that can hinder the project development. Overall appreciation and recommendations The overall appreciation of the project is positive. It is recommended to limit its activity to biogas capture and flaring.

3.10 other potential projects Aden landfills: Aden’s old landfill has been closed since 2006. A total of 700 to 800 t/day of municipal waste is collected and disposed of in a new landfill. The emissions reduction potential of the old landfill is very limited due the non covering and major fires that the site has experienced. It is recommended that this project should not be considered for CDM unless site measurements can show that sufficient biogas exists and can be collected.


27

Windfarm in Socotra. Socotra Island has a very exceptional rich biodiversity. It has benefited from an EU preservation master plan and should be declared next year a world heritage site by the UNESCO (http://www.socotraisland.org). It has two local grids providing electricity for around 18 000 inhabitants of the main two governorates: Hadibu and Qalansya. The grid electricity is produced by two diesel engines based power plants. The island coast is very windy and should be ideal for a small scale wind farm (around 5 MW, to be confirmed). This project if implemented will have a high visibility considering the importance of the site biodiversity. It will have also significant social and economical impacts on the local population. Feasibility study of the project should be first carried out before considering the CDM project development.

Annexes


Annex A

Terms of reference


MNA Region - Carbon Finance Activities Support to the development of CDM Project Idea Notes in Yemen

Terms of Reference for a CDM Consultant

I. INTRODUCTION 1. The Kyoto Protocol (KP) to the UN Framework Convention on Climate Change (UNFCCC) was agreed upon in December 1997. The Protocol commits industrialized (“Annex I”) countries to reduce their carbon emissions by an average of 5.2 percent below 1990 levels in the first commitment period (2008-2012). To meet these commitments in the most cost-effective manner, the Protocol’s Article 12 established the enabling industrialized countries to receive credits for financing emissions reduction (ER) projects in developing (host) countries. While host countries have no commitments or emission reduction targets under the Protocol, they can benefit from activities under the CDM, so that they could maximize their sustainable development gains along with global environmental benefits. 2. CF-Assist is a capacity building and technical assistance program established by the World Bank in fiscal year 2005 to enable the full engagement of developing countries and economies in transition in the carbon market so that they could maximize their sustainable development gains along with global environmental benefits. 3. In this context, the World Bank Institute (WBI) responsible of managing this program has allocated resources and a budget on request of the MNA Regional Carbon Finance coordinator that would be used for CF-Assist activities in Yemen. In June 2007, a specific country capacity building program has been prepared for Yemen in order to build the national capacities on CDM as well as to enable them to participate in the carbon market and benefit from this mechanism CDM. 4. The World Bank is seeking the consulting services to develop PINs of CDM projects and conduct a half day training workshop on technical issues related to CDM projects targeting national consultants in Yemen. To this end, the present Terms References detail the scope of work of the required consulting services for this assignment. II. OBJECTIVES 5. The objectives of the proposed assignment are (i) to prepare Project Idea Notes (PINs), PIN

financial analysis, and Risk Assessment for seven CDM projects and (ii) to build national capacities of relevant experts in different economic sectors in order to be able to develop a stream of CDM projects in the future in Yemen. Such assignment will adopt a hands-on, learning by doing approach in which local experts are giving the opportunity to participate in developing CDM projects.

6. The CDM projects that would be developed were pre-identified during the Bank mission carried

out in May 2007 and covered three sectors: i) Energy sector (Renewable energy, Natural Gas power plant, Energy efficiency, and Fuel switching) ii) Urban development (Wastewater) and iii) Rural Development (Animal waste to biogas; Photovoltaic for rural electrification, and Afforestration with reuse of treated wastewater). Annex 1 provides background information regarding these CDM projects.

III. MAIN TASKS 7. Consistent with the above objectives, the main tasks of the consultant work will include, but not limited to:


(i) Prepare and carry out a country mission to Yemen in order to conduct interviews and field visits and consult stimulatingly with concerned authorities and local stakeholders as appropriate,

(ii) Meeting with the developers of the seven pre-identified CDM projects and collect all

available information regarding the scope of work and the objectives of; the cost estimate and financing scheme, the implementing agency (ies), etc. in order to validate the eligibility of these projects to CDM.

(iii) Developing Project Idea Notes (PINs), PIN financial analysis, and Risk Assessment for

CDM projects listed in Annex 1;

(iv) Using the templates provided by Carbon Finance Unit of the World Bank4 for each project listed in annex 1. Information in the PINs should comply with the UNFCCC and CDM Executive Board criteria.

(v) Working, in close cooperation, with local consultant recruited by the Bank to assist in the

completion of this assignment. The consultant will provide guidance and work as a team with the local consultant. Tasks of local consultant are described in Annex -2-

(vi) Carrying out a half-day training workshop targeting no more than 10 individual

consultants or consulting firms. The consultant will prepare the agenda, make presentations and facilitate the workshop. Workshop’s topics will cover, but not limited to, the CDM project cycle, introduction to methodologies and additionality, PIN and PDD… Participants will be identified by the WB in collaboration with the DNA. The venue will be located in the Environmental Protection Agency in Sana’a.

(vii) Preparing and revising PIN drafts and annexes, seeking and incorporating comments –

including from the World Bank as appropriate. The consultant will complete the final version of the documents above at the satisfaction of the World Bank, and prepare a final completion report.

IV. WORK ORGANISATION & REPORTING

8. The Consultant will report to the MNA-Regional Carbon Finance Coordinator at the World Bank. He/she will work closely with the DNA, the local consultant recruited by the WB, the identified project developers and others local/national concerned institutions in Yemen as required.

9. Under the proposed assignment, the consultant will prepare and submit the following documents:

- Draft version of the seven PINs no later than six weeks after the signature of his/her contract.

- Final version of the PINs, two week after receiving comments from Project developers and the Bank

- Completion Report summarizing the key results and findings of the provided TA as well as recommendations for the preparation of further steps toward the preparation of these CDM projects.

10. All documents should be produced in English and submitted in electronically and hard copy.

4 The templates provided by WB are commonly used by most private and public buyers in the carbon market, with minor differences.


V. REQUIRED QUALIFICATIONS 11. The required main qualifications of the individual consultant are:

• Formal educational background in a directly related technical field at the engineer or masters level

• At least 5 years work experience in CDM project development particularly in solid energy and wastewater sectors

• Fluency in English required with excellent written and oral communication skills. Arabic will be an asset.

VI LEVEL OF EFFORT 12. The proposed assignment is expected to require 30 days of full-time work. 13. The proposed assignment is expected to be carried between 20 July and 30 September 2007.


Annex 1- Pre-identified CDM projects in Yemen The mission identified 7 promising CDM projects in different sectors that can be immediately developed. Emission reduction have been estimated roughly and based on the available data/information provided by project developers. Estimations will be reviewed later during the preparation of the NIPs by the consultant. 1- Power Generation Sector: The electricity in Yemen is, at present, mainly generated from diesel based power plants. Currently, there are 25 diesel or kerosene based power plants. The power sector is facing a rapid increase in electricity demand, power supply shortage, low energy access in rural areas and high costs of power generation. However, with the abundance of renewable energy resources, renewable power generation from geothermal, solar, wind energies are found to be economic in Yemen but not financially competitive with alternative diesel power generation. Also, Yemen has considerable potential as a natural gas producer and exporter, which is considered as a cleaner fossil fuel compared to conventional fossil fuels. However, only one natural gas power plant is under construction because of the high costs associated with gas power plant such as long pipeline. Therefore, Carbon finance could be used as an instrument to leverage financing projects in this sector. 100 MW AL MOKHA Wind Power Project: Al Mocha site has favorable wind conditions with high capacity factor and provides great potential for power generation. Public Electricity Corporation is currently considering several wind projects. The most advanced is Al Mocha wind farm:

Capacity to be installed is 60-100MW. Project will be operational in 2010. Estimated Investment: $150 Million will be provided by the World Bank. Project Developer: Public Electricity Corporation Emission Reductions: 2,5 Million de TCO2 for 10years.

MOCHA Electric Production Station: This project is financed by a private company Turk “Micro Ceramic Turk” and will use the innovative Solar Tower Technology. The pre-feasability report is completed and construction will start by thhe end of 2007.

Capacity to be installed is 20MW. Project will be operational in 2008. Estimated Investment: $30 Million. Project Developer: Public Electricity Corporation Emission Reductions: 500,000 TCO2 for 10years.

MARIB Gas Power Plant : This project aims to build the Marib Gas Power Station with a total capacity of 740 megawatts. The implementation is broken down into two phases:

Phase 1: Commissioning of Marib 1 in 2007.The capacity of the Marib 1st stage gas power plant is 340MW. The construction of the plant has started already and will begin commercial operation in 2008 to feed power into the Yemeni grid. In terms of CDM, the financial additionality of this project will be tough to demonstrate.


Phase 2: Commissioning of Marib 2 in 2008. The capacity of the Marib 2nd Stage gas power plant is 400MW. The project will displace electricity generated from oil-fired plants and combust 34.164 million cubic feet of natural gas annually.

Project financing will be secured through the Arab Fund for Economic and Social Development

Project Developer: Public Electricity Corporation Emission Reductions: 7 Million TCO2 per 10 years.

PV Photovoltaic for rural electrification:

At present, only 39% of the national households have access to grid electricity. Around 1.7 million households throughout the county are not connected to the national grid.

PEC launched a rural electrification program in 2004. This ongoing program intends to provide electricity services in remote and isolated rural areas where households and public service centers use kerosene for cooking and lighting. A number of Photovoltaic (PV) systems have so far been installed under this program in different parts of Yemen. 160 villages are targeted by the program for the next 5 years as the following:

2007 2008 2009 2010 2011 8 12 20 40 80

The minimum size of each village consists on 120 households. Each household is using 3 lighting bulbs of 11watts and one color TV of 65watts. 10 bulbs of 80 bulbs are used for lighting the streets in the village. The lighting needs of the Service Center are 750watts. The estimated amount of power consumed by each village is: 1648watt.

Capacity to be installed is 270 kwatt. Estimated Investment: 20.000$ pour each village. Financing is secured through

private companies. Technical studies were financed by WB/GEF. Project Developer: Public Electricity Corporation Emission Reductions: 300.000 TCO2 for 10years.

Biogas from animal waste: An interesting pilot demonstration project has been brought to the attention of the mission by representatives from PEC in order to follow up with appropriate counterparts in Yemen. The project consists of the installation of biogas digesters for individual families in a number of Yemeni villages. Animal waste is collected and fed into the biodigestor (anaerobic digestion) and generates methane. The biogas produced is used for domestic cooking. Since 2002, at least 265 digesters have been installed and evaluated, and some are planned for installation in the near future. The pilot project will be completed in 2007. Digesters have a capacity of 4.7 cubic meters and using the Egyptian-Chinese design which is the most appropriate for the village conditions. The biodigestor costs 1.000$.The use of biogas, which is a clean energy source, will replace direct burning of fuel wood and kerosene. This will lead to generate Emission Reductions of GHG and benefit of CDM revenues (The


amount of ER cannot be determined because of the lack of data re the consumption of kerosene and fuel wood by each household). CDCF Fund has supported similar projects in Nepal, Gambia,… It will be useful to discuss with CDCF Funds the possibility to support the extension of the program to other villages using carbon finance. 2- Wastewater treatment: In an average, Yemeni wastewater treatment plants process 14 million m3 every year. The Government of Yemen installed several integrated wastewater treatment system in different cities. Aden wastewater treatment plant: In Aden, the treatment system is anaerobic digestion lagoon that generates methane during the process, especially in the high temperature climate area like Yemen. Such methane emission could be avoided by covering the pond to capture the methane and flare or produce electricity. The CDM project would consist of covering the anaerobic lagoon with geo-membrane sheets which will block the release of the methane to the atmosphere. The methane produced will be collected and flared. Based on the following assumptions: The treatment capacity is 70,000m3/day, COD= 1.95Kg/m3.

Emission Reductions: 490,000 TCO2 for 10years. The project developer in collaboration with the MoEW, are planning to reuse the water treated from this plant to irrigate a forest project The afforestation project could be also developed as a CDM project. Sana’a wastewater biogas project: Sana’a Waster and Sanitation Local Corporation (WSC) will install a new treatment system using bioreactors to improve its efficiency while increasing its capacity. The project will collect biogas generated from the system and while using it to generate electricity and thermal. At present, the power used at the plant is produced from diesel generators.

Electricity generated: 41,160 kWh/day and thermal 57,154 kwh/year. Estimated Investment: 800.000$. Financing is secured through private /year. Year of start operation: 2008 Project Developer: Sana’a waste and Sanitation Local Corporation. Emission Reductions: 287,000 TCO2 for 10years.

3- Solid waste management: Based on available data and information, only Sana’a landfill has a large potential of generating carbon emission reductions. Taiz has very limited ERs potential because of the existing poor disposal practices (no soil daily coverage of waste, frequent fires were observed, etc.) With a production of about 1250 tons of municipal waste per day, Sana’s city has a large potential of mobilizing additional financial resources under the CDM-Kyoto Protocol framework. The total Emission Reductions potential of Sana’a landfill (LFG collection and flaring option) is estimated to 600,000 tons of CO2e over a period of ten years. Based on the current market price, the total revenue is estimated to US$ 6-7 million.


Annex 2

MNA Region - Carbon Finance Activities Support to the development of CDM Project Idea Notes in Yemen

Terms of Reference for CDM Local Consultant

I. INTRODUCTION 1. The Kyoto Protocol (KP) to the UN Framework Convention on Climate Change (UNFCCC) was agreed upon in December 1997. The Protocol commits industrialized (“Annex I”) countries to reduce their carbon emissions by an average of 5.2 percent below 1990 levels in the first commitment period (2008-2012). To meet these commitments in the most cost-effective manner, the Protocol’s Article 12 established the enabling industrialized countries to receive credits for financing emissions reduction (ER) projects in developing (host) countries. While host countries have no commitments or emission reduction targets under the Protocol, they can benefit from activities under the CDM, so that they could maximize their sustainable development gains along with global environmental benefits. 4. CF-Assist is a capacity building and technical assistance program established by the World Bank in fiscal year 2005 to enable the full engagement of developing countries and economies in transition in the carbon market so that they could maximize their sustainable development gains along with global environmental benefits. 5. In this context, the World Bank Institute (WBI) responsible of managing this program has allocated resources and a budget on request of the MNA Regional Carbon Finance coordinator that would be used for CF-Assist activities in Yemen. In June 2007, a specific country capacity building program has been prepared for Yemen in order to build the national capacities on CDM as well as to enable them to participate in the carbon market and benefit from this mechanism CDM. 4. The World Bank is seeking the services of a local consultant to support the development of PINs of CDM projects and assist in conducting a half day training workshop on technical issues related to CDM projects targeting national consultants in Yemen. To this end, the present Terms References detail the scope of work of the required consulting services for this assignment. II. OBJECTIVES 5. The objective of the proposed assignment is to develop a number of CDM projects and to build

national capacities of relevant experts in different economic sectors in order to be able to develop a stream of CDM projects in the future. Such assignment will adopt a hands-on, learning by doing approach in which local experts are giving the opportunity to participate in developing CDM projects.

6. Consequently, the local consultant will support the international consultant in the preparation of

the Project Idea Notes (PINs), PIN financial analysis, and Risk Assessment for at least seven CDM projects in Yemen. These CDM projects were pre-identified during the Bank mission carried out in May 2007 and covered three sectors: i) Energy sector (Renewable energy, Natural Gas power plant, Energy efficiency, and Fuel switching) ii) Urban development (Wastewater) and iii) Rural Development (Animal waste to biogas; Photovoltaic for rural electrification, and Afforestration with reuse of treated wastewater). Annex 1 provides background information regarding these CDM projects.


III. MAIN TASKS Consistent with the above objectives and under the guidance of the international consultant recruited by the WB – see TORs in Annex 2-, the main tasks of the local consultant work will include, but not limited to:

(viii) Prepare and arrange meetings with concerned authorities and local stakeholders as appropriate;

(ix) Participate with the international consultant in meetings with the developers of the pre-

identified CDM projects;

(x) Provide and collect all available information regarding the scope of work and the objectives of; the cost estimate and financing scheme, the implementing agency (ies), etc. in order to validate the eligibility of these projects to CDM.

(xi) Assist in developing Project Idea Notes (PINs), PIN financial analysis, and Risk

Assessment for CDM projects listed in Annex 1;

(xii) Assist in carrying out a half-day training workshop targeting no more than 10 individual consultants or consulting firms. The local consultant will support the preparation of the agenda and make presentations during the workshop. Workshop’s topics will cover, but not limited to, the CDM project cycle, introduction to methodologies and additionality, PIN and PDD… Participants will be identified by the WB in collaboration with the DNA. The venue will be located in the EPA.

(xiii) Provide inputs and assist in the finalization of the documents above at the satisfaction of

the World Bank, and prepare a final completion report. IV. WORK ORGANISATION & REPORTING

8. The Consultant will report to the MNA-Regional Carbon Finance Coordinator at the World Bank. He/she will work closely with the international consultant recruited by the WB, DNA, the identified project developers and others local/national concerned institutions in Yemen as required.

9. Under the proposed assignment, the consultant will assist the international to prepare and submit the following documents:

- Draft version of the seven PINs no later than six weeks after the signature of his/her contract.

- Final version of the PINs, two week after receiving comments from Project developers and the Bank

- Completion Report summarizing the key results and findings of the provided TA as well as recommendations for the preparation of further steps toward the preparation of these CDM projects.

10. All documents should be produced in English and submitted in electronically and hard copy. V. REQUIRED QUALIFICATIONS 11. The required main qualifications of the individual consultant are:

• Formal educational background in a directly related technical field at the engineer or sciences at least at masters level

• At least 3 years work experience in climate change and energy sector • Fluency in English and Arabic required with excellent written and oral communication

skills.


VI LEVEL OF EFFORT 12. The proposed assignment is expected to require 15 days of full-time work. 13. The proposed assignment is expected to be carried between 20 July and 30 September 2007.


Annex B

Main Stakeholders met during the mission

CONDUCTED MEETINGS WITH CDM STAKEHOLDERS IN YEMEN

DURING WB MISSION 7. - 13. SEPTEMBER 2007

Name Tel. Fax e-mail Potential Projects

His Excellency Eng. Abdul Rahman Fadh Al-Eryani

Minister of Water and Environment

00967-328164 or 65 00967-328150 or 51 [email protected]

Dr. Lia Carol Sieghart

International Advisor

Ministry of Water and Environment

Mob.

00967-711789994

00967-1418296

[email protected]

[email protected]

Eng. Hassan Abbas Zabarah Sana'a Wastewater Treatment Plant Manager

00967-1- 344 183

Mob. 777 413 100

00967-1- 344 369

[email protected]

Eng. Munier M. Al-Gehafy

Wastewater Plant Extension Project Deputy Director

00967-1- 344 183

Mob. 733 216 703

00967-1- 344 369

[email protected]

Eng. Abdulwahab I. Salah

Wastewater Plant Extension Project

00967-1- 344 183

Mob. 777 457 545

00967-1- 344 369

[email protected]

• Sana’a wastewater biogas project



Eng. Abdul Moati Al-Jonaid

Public Electricity Corporation (PEC) Managing Director

00967-1- 328 164/5

Mob. 733 795 066

00967-1- 328 150/1

[email protected]

Eng. Abdussalam Aljanad

Public Electricity Corporation Renewable Energy Department Manager

00967-1- 329 019

Mob. 777 200 449

00967-1- 329 019

[email protected]

• 100 MW AL MOKHA Wind Power Project

• PV Photovoltaic for rural electrification

• Biogas from animal waste

Eng. Musleh Ali Al-faqeh

Sana’a Veterinary Secondary School Pilot biogas plant

Mob. 777 466 729 [email protected]

• Biogas from animal waste

Dr. Nageeb M. Aloj

Yemen Gas Company Deputy Executive Managing Director

00967-1- 213 117/202

Mob. 711 115 000

[email protected]

Dr. Ahmed S. Al-Shamiery

Yemen Gas Company Head of Scientific Committee

Mob. 733 621 658

00967-1- 213 121

• Marib gas power station

• Pipeline construction for natural gas supply

• Flare reduction and gas utilisation at oil and gas processing facilities



Khalid Salih Al-Obaidy

Assistant Deputy for Cleaning and Environment Department Executive Manager of Cleaning Fund, Sana'a

00967-1- 535 772

733 246 574 733 710 068/777 710 068

00967-1- 219 534

Sadiq A. Asker

Director Environment Protection Authority –Branch Sana'a City Sana'a Capital City Secretariat

Mob. 777 603 109 00967-1- 219 534 [email protected]

Sana'a Landfill

Mr. Ahmed M. Al-Kuhlany

Aden governor:

Tel. 00967-2- 246 913 00967-2- 246 969

Mr. Kaid Rashed Anaam

Cleaning Fund, Aden Executive Director

Tel. 00967-2- 247 671

Mob. 733 246 574

00967-2- 248 880 [email protected]

Eng. Farouq M. Zaid

Consultant, Cleaning Fund, Aden

Tel. 00967-2- 247 671

Mob. 733 777 342

00967-2- 248 880

Aden Landfill

Eng. Nasser Mansour Shadadi Aden Local Water & Sanitation Corporation (Wastewater treatment plant), Manager of Treatment Plant & Laboratories

00967-2- 821 621

Mob. 777 104 340

Aden wastewater biogas project



Dr. Paul Scholte

Chief Technology Advisor Socotra Archipelago Conservation and Development Program

00967-425310

Mob. 00967-77727763

00967-1- 328 150/1

[email protected] • Wind Farm project

Annex C

Workshop participants

Annex D

Workshop Presentations

Annex E

PIN of the Al Mokha Wind Farm Project

PROJECT IDEA NOTE (PIN) Name of Project: AL Mokha Wind Farm - Yemen Date submitted: October 1st , 2007 Description of size and quality expected of a PIN Basically a PIN will consist of approximately 5-10 pages providing indicative information on:

• the type and size of the project • its location • the anticipated total amount of greenhouse gas (GHG) reduction compared to the

“business-as-usual” scenario (which will be elaborated in the baseline later on at Project Design Document (PDD) level)

• the suggested crediting life time • the suggested Certified Emission Reductions (CERs)/Emission Reduction Units

(ERUs)/Verified Emission Reduction (VERs) price in US$ or € /ton CO2e reduced • the financial structuring (indicating which parties are expected to provide the project’s

financing) • the project’s other socio-economic or environmental effects/benefits

While every effort should be made to provide as complete and extensive information as possible, it is recognised that full information on every item listed in the template will not be available at all times for every project. NOTE: For forestry projects, please use the PIN Template for LULUCF projects available at www.carbonfinance.org.


A. PROJECT DESCRIPTION, TYPE, LOCATION AND SCHEDULE OBJECTIVE OF THE PROJECT Describe in not more than 5 lines

The project consists of a 50 MW wind farm erection in Al Mokha Yemen designed to provide electricity for the national grid. The main objective of the project is to help promote the use of renewable energy in Yemen and reduce its heavy dependence on fossil fuels for electricity generation.

PROJECT DESCRIPTION AND PROPOSED ACTIVITIES About ½ page

The project activity involves the implementation of a wind power plant located in the windy city of Al Mokha located South West of the Republic of Yemen on the Red Sea coast at around 5 km from Al Mokha power plant. The site is a semi-desert with rare vegetation and a low population density. A wind resource assessment of the site was performed by Lahmeyer in the mainframe of the project feasibility study. The measurement campaign has been carried out during one year (December 2005 to December 2006). With an average wind velocity of 7.5 m/s at 40 m and 6 m/s at 20 m, the site is considered very favourable for wind farms implementation. The expected capacity factor has been evaluated in the range of 30% to 35% depending on the type of turbines used. The electricity generated by the wind farm is to feed Yemen national electricity grid located at a distance of 5 km from the site.

TECHNOLOGY TO BE EMPLOYED5 Describe in not more than 5 lines

The technology used for wind farms is a mature technology and it is largely available from well established turbines manufacturers around the world. Concerning the choice of the turbines, 850 kW turbines were mostly used in the nineties. Considering the technological progress of the last five years, the capacity of a typical wind turbine is currently in the range of 1,5 to 2 MW. Turbines of a 5 MW have been recently used but they are still not very common. For Al Mokha Wind farm a set of 25 wind turbines of 2 MW capacity each is recommended.

TYPE OF PROJECT Greenhouse gases targeted CO2/CH4/N2O/HFCs/PFCs/SF6 (mention what is applicable)

CO2

Type of activities Abatement/CO2 sequestration

Renewable

Field of activities (mention what is applicable) See annex 1 for examples

Wind (1-d)

LOCATION OF THE PROJECT Country Yemen City Al Mokha Brief description of the location of the project No more than 3-5 lines

The site is located in Al Mokha, South West of the Republic of Yemen on the Red Sea coast

PROJECT PARTICIPANT Name of the Project Participant Public Electricity Corporation (PEC) Role of the Project Participant a. Project Operator ( to be confirmed)

b. Owner of the site or project c. Owner of the emission reductions d. Seller of the emission reductions______________

Organizational category a. Government agency________________

5 Please note that support can only be provided to projects that employ commercially available technology. It would be useful to provide a few examples of where the proposed technology has been

employed.


Contact person Mr. Abdul Moati Al-Janaid Eng.

Managing Director For technical matters and additional information contact: Mr. Aljanad Abdussalam Renewable Energy Department Manager

Address P.O. Box 178 Sana’a –Res., Sana’a, Yemen Telephone/Fax Tel. 967-1-328164/5 Fax. 967-1-328150/1

Mobile Mr. Aljanad Abdussalam: 967 777 200 449 E-mail and web address, if any [email protected]

Mr. Aljanad Abdussalam: [email protected] Web Site: www.pec.com.ye

Main activities Describe in not more than 5 lines

The PEC is the sole Yemen public utility in charge of the management and development of the electricity sector. In 2002 the General Authority for Rural Electrification and Water Supply (GAREWS) was dismantled and the rural electrification activities of GAREWS were assigned to PEC. PEC is responsible for the production and supply of about 80% of the electricity consumed in Yemen. The rest is generated by local community cooperatives, private industries, hotels, and individual private operators. Following the unification in 1994, the power systems of the north and south were interconnected into the present national electricity grid. PEC owns, develops, and operates the interconnected power grid, and the few isolated power grids in the rural areas. Community cooperatives and the individual producers operate mostly in rural areas.

Summary of the financials Summarize the financials (total assets, revenues, profit, etc.) in not more than 5 lines

Summary of the relevant experience of the Project Participant Describe in not more than 5 lines

Experiences in Yemen with wind energy use are very limited and scattered. The project will be the first major renewable energy plant to feed the grid. PEC has no experience in the management of wind farms. The project activity should comprise a comprehensive capacity building program for PEC’s staff and an operational management and maintenance contract for at least two years.

Please insert information for additional Project Participants as necessary.

EXPECTED SCHEDULE Earliest project start date Year in which the plant/project activity will be operational

2010

Estimate of time required before becoming operational after approval of the PIN

Time required for financial commitments: 3 months Time required for legal matters: 1 months Time required for construction: 20 months

Expected first year of CER/ERU/VERs delivery

2010

Project lifetime Number of years

20 years

For CDM projects: Expected Crediting Period 7 years twice renewable or 10 years fixed

10 years


For JI projects: Period within which ERUs are to be earned (up to and including 2012) Current status or phase of the project Identification and pre-selection phase/opportunity study finished/pre-feasibility study finished/feasibility study finished/negotiations phase/contracting phase etc. (mention what is applicable and indicate the documentation)

Finished feasibility study Ref. Feasibility Report on Wind farm development at Al Mokha, Lahmeyer, April 2007*. This study should be updated to the actual capacity of 50MW The feasibility study summarizes in its executive Summary the issues that should be tackled before the project could implemented. * The feasibility study was done for a wind farm capacity of 15 MW.

Current status of acceptance of the Host Country Letter of No Objection/Endorsement is available; Letter of No Objection/Endorsement is under discussion or available; Letter of Approval is under discussion or available (mention what is applicable)

Considering the political backup that the project enjoys and the public status of the project’s participant, the Letter of No Objection/Endorsement should be obtained rapidly from the DNA without any problem.

The position of the Host Country with regard to the Kyoto Protocol

Has the Host Country ratified/acceded to the Kyoto Protocol? YES, ratified September 2004 Has the Host Country established a CDM Designated National Authority / JI Designated Focal Point? YES, DNA established in August 2003

B. METHODOLOGY AND ADDITIONALITY ESTIMATE OF GREENHOUSE GASES ABATED/ CO2 SEQUESTERED In metric tons of CO2-equivalent, please attach calculations

Annual (if varies annually, provide schedule): 60 000 tCO2 in 2010 and 120 000 tCO2-equivalent there after Up to and including 2012: 300 000 tCO2-equivalent Up to a period of 10 years: 1.2 millions tCO2-equivalent Up to a period of 7 years: 840 000 tCO2-equivalent Calculations: Simulations were done on RTScreen assuming an average velocity of 7.5 m/s at 40 m and a total losses of 14% ( Array losses, airfoil soiling losses, downtime losses, etc.). The total expected average production is evaluated at 164 GWh/year. With an average of build margin and operational margin emissions factor of 0.73 tCO2e /MWh, the total emission reduction is established at around 120 000 tCO2e/year.

BASELINE SCENARIO CDM/JI projects must result in GHG emissions being lower than “business-as-usual” in the Host Country. At the PIN stage questions to be answered are at least:

• Which emissions are being reduced by the

The project activity involves the use of wind power which is a clean and renewable source of energy, to produce electricity and supply it to the fossil fuel intense grid. The electricity produced will thus displace the electricity generated currently by the fossil fuel power plants feeding the grid. In the absence of the project, which is the business as usual scenario, all the electricity distributed through the grid will continue to be generated by fossil fuel combustion associated with GHG emissions.


proposed CDM/JI project?

• What would the future look like without the proposed CDM/JI project?

About ¼ - ½ page

The approved CDM consolidated methodology for grid-connected electricity generation from renewable sources ACM0002, can be used.

ADDITIONALITY Please explain which additionality arguments apply to the project: (i) there is no regulation or incentive scheme in place covering the project (ii) the project is financially weak or not the least cost option (iii) country risk, new technology for country, other barriers (iv) other

The additionality of the project can be justified by the following arguments/barriers: (i) there is no regulation or incentive scheme in place covering the project (ii) the project is financially weak or not the least cost option (iii) country risk (iv)new technology for country

SECTOR BACKGROUND Please describe the laws, regulations, policies and strategies of the Host Country that are of central relevance to the proposed project, as well as any other major trends in the relevant sector. Please in particular explain if the project is running under a public incentive scheme (e.g. preferential tariffs, grants, Official Development Assistance) or is required by law. If the project is already in operation, please describe if CDM/JI revenues were considered in project planning.

Yemen is the least electrified country in the MENA region, with only about 40% of the total population having access to electricity. In rural areas, the electrification rate is very low at only about 20%. More than half of the rural power supply comes from cooperatives, the private sector, and auto-generation. The low access and the absence of reliable electricity supply have been recognized as severe constraints to economic growth in Yemen, and to the achievement of the Government of Yemen’s poverty alleviation objectives. Despite the fact that the new natural gas based power plants in Marib will double the installed capacity of the plants feeding the grid and help offset the power deficiency situation, the use of fossil fuel in the power sector will still remain dominant. Thus, the power sector will continue to be one of the first sources of GHG emissions in Yemen. Many studies have shown that Yemen is endowed with significant renewable energy resources such as wind, solar and geothermal energies. These resources can help sustain large-scale commercial power development as well as small-scale decentralized system to meet the energy needs of rural and remote communities. To develop these resources and stimulate private investments in RE, a national renewable strategy has been recently adopted and a renewable energy contribution target of 8% of the total grid-based electricity generation in 2018 has been proposed. To date, all grid-based electricity is generated in fossil fuel powered plants. The project will help kick-off the action plan for the RE development strategy in Yemen. It should have a tremendous leverage effect on the RE sector development. Apart from the mentioned RE strategy set objectives, there is no legal obligation for the participant to implement the project. Also, to date, there is no incentive or preferential tariff for renewable energy based electricity.


C. FINANCE TOTAL CAPITAL COST ESTIMATE (PRE-OPERATIONAL) Development costs 0.35 S$ million (Feasibility and development studies, etc.) Installed costs 94.95 US$ million (Property plant, equipment, etc.) Land ___ US$ million Infrastructure off site 0.5 US$ million Interests during construction 3.4 US$ million Miscellaneous 2.9 US$ million (Legal, consulting, etc.) Total project costs 102.1 US$ million SOURCES OF FINANCE TO BE SOUGHT OR ALREADY IDENTIFIED Equity Name of the organizations, status of financing agreements and finance (in US$ million)

Debt – Long-term Name of the organizations, status of financing agreements and finance (in US$ million)

Debt – Short term Name of the organizations, status of financing agreements and finance (in US$ million)

Carbon finance advance payments6 sought from the World Bank carbon funds. (US$ million and a brief clarification, not more than 5 lines)

SOURCES OF CARBON FINANCE Name of carbon financiers other than any of the World Bank carbon funds that your are contacting (if any)

INDICATIVE CER/ERU/VER PRICE PER tCO2e7 Price is subject to negotiation. Please indicate VER or CER preference if known.8

6 Advance payment subject to appropriate guarantees may be considered. 7 Please also use this figure as the carbon price in the PIN Financial Analysis Model (cell C94). 8 The World Bank Carbon Finance Unit encourages the seller to make an informed decision based on sufficient understanding of the relative risks and price trade-offs of selling VERs vs. CERs. In VER contracts, buyers assume all carbon-specific risks described above, and payment is made once the ERs are verified by the UN-accredited verifier. In CER/ERU contracts, the seller usually assumes a larger component - if not all – of the carbon risks. In such contracts, payment is typically being made upon delivery of the CER/ERU. For more information about Pricing and Risk, see “Risk and Pricing in CDM/JI Market, and Implications on Bank Pricing Guidelines for Emission Reductions”.


TOTAL EMISSION REDUCTION PURCHASE AGREEMENT (ERPA) VALUE A period until 2012 (end of the first commitment period)

___ US$ / €

A period of 10 years ___ US$ / € A period of 7 years ___ US$ / €

Please provide a financial analysis for the proposed CDM/JI activity, including the forecast financial internal rate of return for the project with and without the Emission Reduction revenues. Provide the financial rate of return at the Emission Reduction price indicated in section “Indicative CER/ERU/VER Price”. DO NOT assume any up-front payment from the Carbon Finance Unit at the World Bank in the financial analysis that includes World Bank carbon revenue stream.

Provide a spreadsheet to support these calculations. The PIN Financial Analysis Model available at www.carbonfinance.org is recommended. D. EXPECTED ENVIRONMENTAL AND SOCIAL BENEFITS

LOCAL BENEFITS E.g. impacts on local air, water and other pollution.

Generation of electricity by Al Mokha wind power farm will offset the fossil fuel use in Yemen. Thus the project will help:

Reduce the local gas pollutants such as SO2, NOx and PMs; Enhance the local air quality Reduce the dependence of Yemen on fossil fuel.

GLOBAL BENEFITS Describe if other global benefits than greenhouse gas emission reductions can be attributed to the project.

Help demonstrate the sustainability of RE based power plants in a region

dominated by the use of fossil fuels Help preserve the fossil fuel resources;

SOCIO-ECONOMIC ASPECTS What social and economic effects can be attributed to the project and which would not have occurred in a comparable situation without that project? Indicate the communities and the number of people that will benefit from this project. About ¼ page

The Al Mokha wind farm will help provide to electricity consumers 3.6% of the total electricity produced by PEC from a clean renewable source*. While the social impact is limited to the few created jobs, the project should have a positive impact on the technology transfer and building of the RE capacity of the local technical staff. It could help also extend the electricity grid to local communities. *Based on a project expected electricity generation of 164 GWh/year and a a PEC production of 4 548 GWh in 2006.

What are the possible direct effects (e.g. employment creation, provision of capital required, foreign exchange effects)? About ¼ page

Direct and indirect jobs creation

What are the possible other effects (e.g. training/education associated with the introduction of new processes, technologies and products and/or the effects of a project on other industries)? About ¼ page

Introduction of new technology Technology transfer and local capacity building in RE The project could encourage private sector promoters to participate in the

development of RE sector in Yemen.

ENVIRONMENTAL STRATEGY/ PRIORITIES OF THE HOST COUNTRY A brief description of the project’s consistency with the environmental strategy and priorities of the Host Country

The projects activity is considered the first concrete action toward the achievement of Yemen RE development Strategy. The project is expected to trigger the initiation of industrial scale RE projects. Also, as a first CDM project, Al Mokha wind farm should have an inducing effect on the development of other CDM clean projects in Yemen.


Annex F

PIN of the Sana’a landfill Methane Recovery and Flaring Project

PROJECT IDEA NOTE (PIN) Name of Project: Sana’s Landfill methane recovery and flaring- Yemen Date submitted: October 1st , 2007 Description of size and quality expected of a PIN Basically a PIN will consist of approximately 5-10 pages providing indicative information on:







E. PROJECT DESCRIPTION, TYPE, LOCATION AND SCHEDULE OBJECTIVE OF THE PROJECT Describe in not more than 5 lines

The project activity consists of gas recovery and flaring at Sana’a landfill. The main objectives of the project is to reduce the GHG and other odorous emission from the landfill, avoid the fires and explosion hazards in the site and help ensure a cleaner air quality in the area surrounding the landfill.


The project aims at investing in a biogas collection system, a blower and flaring system at the landfill site. The capture and flaring of the landfill gas will avoid emissions of other gases such as hydrogen sulfide (H2S), mercaptans and other odorous compounds, therefore positively affecting investment in the surrounding communities.


Gas recovery is a low-cost and relatively low-technology option. The technology used for LFG recovery and flaring is well-defined and proven. Recovery efficiencies are typically around 50% and can reach 75% for a well designed-system. A typical landfill gas collection and flaring system consists of the following components:

Vertical wells drilled into the landfill once areas reach their final elevation and final cover has been applied. The wells are be equipped with wellheads that enable monitoring of gas flow and quality and valves to allow vacuum adjustment.

A collection piping system is installed to convey the landfill gas from the well network to the blower/flare.

Condensate extraction and storage systems located at low network points.

A flare unit for the LFG destruction and a blower to create the required vacuum in the collection network to extract the LFG.


CH4


4- Waste Management


4a. Landfill Gas recovery/utilization

LOCATION OF THE PROJECT Country Yemen City Sana’a Brief description of the location of the project No more than 3-5 lines

The site is located in the Sana’a landfill located 20 km north the Sana’a city on Amran road.


employed.

PROJECT PARTICIPANT Name of the Project Participant Cleaning Fund, Sana’a Governorate Role of the Project Participant e. Owner of the site or project

f. Owner of the emission reductions g. Seller of the emission reductions

Organizational category b. Public institution Contact person Mr. Khalid Salih Al-Obaidy

Assistant Deputy for Cleaning and Environment Department Executive Manager of Cleaning Fund, Sana'a For technical matters and additional information contact: Mr. Sadiq A. Asker Director Environment Protection Authority –Branch Sana'a City

Address P.O. Box xxxxxxxxxxxx., Sana’a, Yemen Telephone/Fax Tel. 967-1-4419620 Fax. 967-1-419621 Mobile 967-73710068 or 77710068

Mobile Mr. Sadiq A. Asker: 967 - 777 603 109 Fax 967-1- 219 534 E-mail and web address, if any Mr. Sadiq A. Asker: [email protected] Main activities Describe in not more than 5 lines

The cleaning law passed in 1999 allowed the local governments to charge citizens indirectly for the collection of garbage through taxing all products imported to cities. The revenues of these taxes were used to establish a Cleaning Fund for municipal waste management. The Cleaning Fund is responsible for street cleaning and municipal waste collection, transport and transfer to the landfill. The cleaning fund is also responsible for the operational management of the Sana’a landfill.


Annual budget of the cleaning fund for waste collection and disposal: 4.5 M$ The central government contributes 3 M$ to the annual budget and the rest comes from municipal taxes revenues. The cost of the clean fund municipal waste management is around 12 $/t ( including street sweeping, transport etc.)


The Cleaning Fund has a fairly good experience with municipal waste collection, transport and disposal. Given the limited available resources, the landfill is adequately managed. There is no experience in Yemen with LFG collection and flaring. But the technology is basic and provided a well designed system, the technical staff of the cleaning fund should not have problems running and maintaining the LFG collecting and flaring unit.



2009


Time required for financial commitments: 3 months Time required for legal matters: 1 months Time required for construction: 8 months


2009


20 years With the extension of the landfill area to 150 ha in 2004, the landfill is expected to cover the Governorate needs for waste disposal till 2050.

For CDM projects: Expected Crediting Period 7 years twice renewable or 10 years fixed For JI projects: Period within which ERUs are to be earned (up to and including 2012)

10 years

Current status or phase of the project Identification and pre-selection phase/opportunity study finished/pre-feasibility study finished/feasibility study finished/negotiations phase/contracting phase etc. (mention what is applicable and indicate the documentation)

Waste characterisation underway (financed by UNDP) A first project NIP was established by Mitsubishi for UNDP and the DNA ( see http://www.cdm-yemen.org/) No feasibility study yet.


Considering the political backup that CDM projects enjoy in Yemen and the public status of the project’s participant, the Letter of No Objection/Endorsement should be obtained rapidly from the DNA without any problem.



F. METHODOLOGY AND ADDITIONALITY ESTIMATE OF GREENHOUSE GASES ABATED/ CO2 SEQUESTERED In metric tons of CO2-equivalent, please attach calculations

Annual (if varies annually, provide schedule):

Year ton CO2e/yr 1 2009 50 422 2 2010 60 047 3 2011 69 504 4 2012 78 810

258 782

5 2013 87 979 6 2014 97 026 7 2015 105 965 8 2016 114 811 9 2017 123 575

10 2018 132 271

661 627

Total 920 409 920 409

Up to and including 2012: 258 782 tCO2-equivalent Up to a period of 10 years: 920 409 tCO2-equivalent Up to a period of 7 years: 749 753 tCO2-equivalent Calculations: Simulations were done on the following conservative assumptions:

Although the landfill opened in 1980 and the covering of the waste started in 2001, only the LFG emitted by the waste deposited since 2005 was considered

According to the data collected gathered, the landfill received 364 898 t of municipal waste in 2006. An increase rate of 2.5% a year was assumed for the estimate of the future waste quantities

A very conservative value of 0.05 was considered for the decay factor k (dry temperate, according to IPCC classification)

A LFG recovery rate of 50% was assumed The emission reduction were evaluated using a first order decay model conform with the IPCC 2006 guidelines for the national inventories establishment of GHG emissions. http://www.ipcc-nggip.iges.or.jp/public/2006gl/vol5.htm


• Which emissions are being reduced by the proposed CDM/JI project?


About ¼ - ½ page

The project activity involves the LFG recovering and flaring for the sole objective of GHG emission reductions and fire and explosion hazards control. In the absence of the project, which is the business as usual scenario, there will no LFG recovering and CH4 emissions will continue. There is legal obligation for the project proponent to invest in a LFG recovering and flaring installation. The approved CDM consolidated methodology for landfill gas project activities ACM0001, can be used.


The additionality of the project can be justified by the following arguments/barriers: (i) there is no regulation or incentive scheme in place covering the project (ii) the project is implemented for the sole purpose of GHG reductions (iii) no other landfill in Yemen is recovering nor flaring the LFG

SECTOR BACKGROUND Please describe the laws, regulations, policies and strategies of the Host Country that are of central relevance to the proposed project, as well as any other major trends in the relevant sector.

The Sana’a landfill site opened in 1980 with an initial area of 350 000 m2. It is used for municipal disposal of Sana’a municipality, part of Sana’a governorate and Amran city. Some 1000 t/day of municipal waste are deposited in the landfill. In 2004, the site area was extended to 144 ha by acquiring some 114 ha of neighbouring land. According to the landfill manager, with this extension the site can meet the needs of the concerned districts up to 2050.

Please in particular explain if the project is running under a public incentive scheme (e.g. preferential tariffs, grants, Official Development Assistance) or is required by law. If the project is already in operation, please describe if CDM/JI revenues were considered in project planning.

The site access is controlled. Waste received is weighted at the gate, compacted and covered daily. The coverage practice started in 2001 to reduce the LFG emissions and fire hazards. The total landfill surface currently used is estimated at 280 000 m2. The total cumulated waste in the landfill has been estimated at 7 millions tons with an average height of 30 m. A private company Yemeni Zenat Recycling company is recovering recycling materials (paper, plastics, metals, glass) from the landfilled waste. Around 10% of the waste is recovered, cut, pressed and exported to, among others countries, China, Bangladesh and Malaysia. The typical waste composition is given in the table below: The legal requirements for the disposal of waste in landfills are defined in “Law N°39/1999 on regard of the public cleaning”. A by-law for Law N°39 which further specifies the legal requirements for solid waste disposal has been elaborated based on the detailed guidelines for municipal waste disposal adopted in a workshop held in Sana’a in September 2001. It seems that the by-law draft has not been approved yet. It’s important to note though that the Guidelines have recommended that Disposal sites serving a population of 500.000 or more have to install a gas collection and incineration system if the height of the disposed waste exceeds 10 m. If approved, this could affect the additionally of the Sana’a landfill project.

Food Waste 49.0%

Plastic 9.0%

Glasses 3.0%

Metal 5.0%

Other 25.0%

G. FINANCE TOTAL CAPITAL COST ESTIMATE (PRE-OPERATIONAL) Development costs 0.35 S$ million (Feasibility and development studies, etc.) Installed costs 1.50 US$ million (Property plant, equipment, etc.) Miscellaneous 0.10 US$ million (Legal, consulting, etc.) Total project costs 1.95 US$ million SOURCES OF FINANCE TO BE SOUGHT OR ALREADY IDENTIFIED Equity Name of the organizations, status of financing agreements and finance (in US$ million)







___ US$ / €



Provide a spreadsheet to support these calculations. The PIN Financial Analysis Model available at www.carbonfinance.org is recommended. H. EXPECTED ENVIRONMENTAL AND SOCIAL BENEFITS


LFG capture and flaring in Sana’a landfill has several positive social and environmental impacts:

Reduce the risks associated with fires and explosions in and around the landfill. This is particularly important as the LFG collection system will minimise the potential for LFG migration, which can infiltrate zones outside of the landfill’s

The destruction of the LFG will improve the local environment by reducing the amount of noxious air pollution arising from the landfill, resulting in a considerable reduction of nuisance caused by the odours and also health risks associated to these emissions.

The project activity should provide local employment opportunities



Besides reducing GHG emissions, global benefits of the projects are:

Provide a model for managing LFG in landfills throughout Yemen Reinforce Yemen capacity in municipal waste management


In the absence of the CDM the project would not have been implemented due the required investment. The economical benefits of the project result from the CERs selling to compensate for the investment in the project activity. Also with the reduction of the air pollution and odors, the prices of the nearby real state should increase resulting in a positive economic effect on the owners. Reducing the noxious odors can also help improve the status of the land in the vicinity of the landfill and help create new economic development projects. On the social aspect, the project will help improve the quality of life of the neighboring communities (reduction of fire hazards, explosion hazards, improvement of air quality, reduction on noxious air pollution and odors nuisance etc.)




Introduction in Yemen of an exemplary new façon de faire in waste

management ; Technology transfer and local capacity building

ENVIRONMENTAL STRATEGY/ PRIORITIES OF THE HOST COUNTRY A brief description of the project’s consistency with the environmental strategy and priorities of the Host Country About ¼ page

The project activity will help demonstrate the social and environmental benefits of the gas capture and utilization or flaring in landfill’s in Yemen. Also, as a first CDM project, the Sana’a landfill gas capture and flaring could have an inducing effect on the development of other CDM clean projects in Yemen.

Annex G

Evaluation of the Biogas Recovery and Energy co-Generation in Sana’a Waste Water Treatment Plant Project

BIOGAS RECOVERY AND ENERGY CO-GENERATION IN SANA’A WASTE WATER TREATMENT PLANT

PROJECT EVALUATION NOTE

I. PROJECT DESCRIPTION, TYPE, LOCATION AND SCHEDULE OBJECTIVE OF THE PROJECT

The main objective of the project is the extraction of the methane rich biogas from the sludge of the Sana’a Waste Water Treatment Plant (WWTP). The biogas collected is to be used as fuel in a Combined Heat and Power (CHP) installation to generate thermal heat and electricity. The recovery of the biogas from the sludge digestion will help avoid the direct emanations of methane in the atmosphere from the WWTP sludge and reduce the plant electricity consumption.

PROJECT DESCRIPTION AND PROPOSED ACTIVITIES

The project aims at investing in a closed anaerobic digestion system and a CHP installation to capture biogas from the sludge produced in the exiting Sana’a WWTP. The biogas collected is to be used as fuel in a CHP installation to generate thermal heat and electricity. The energy thus produced will be utilized directly in the plant. The Sana’a WWTP started in Mai 2000. The plant was designed for the treatment of 50 000 m3/day of waste water characterized by a BOD5 of 500 mg/l and a TSS of 750 mg/l to be abated to a BOD5 of 30 mg/l and a TSS of 30mg/l. Given the current high pollution load of water influents (BOD5 of more than 1200 mg/l) the WWTP cannot achieve an adequate water treatment as designed. The BOD5 of the actual effluent treated water is in the range of 150 to 200 mg/l. This high organic pollution of Sana’a waste water reflects a relatively low water usage which contributes to a high pollution load affecting the treatment performance of the WWTP. The WWTP disposes of eight aeration tanks with a total capacity of 96 000 m3 (12 000 m3 each tank). A project for the WWTP extension and upgrade is envisaged by the Sana’a Water & sanitation local Corporation. The project consists of the installation of three additional settling tanks, new grit removal chamber, 4 sludge thickeners, 3 anaerobic closed digesters and 4 CHP units. The aim of the project is to ensure an organic pollution abatement level to 30 mg/l in terms of BOD5 for the water effluents, to help reduce the CH4 atmospheric emanations from the sludge and reduce the WWTP’s electricity consumption.

TECHNOLOGY TO BE EMPLOYED

The anaerobic treatment of sludge is very common. It can take place in simple decantation basins or lagoons or in the especially conceived digesters. In most the industrialized countries, sludge are extracted of decantation basins and are treated in separated digesters. More of 1000 facilities of this type are functional in the world. The anaerobic treatment of sludge proves to be an efficient technique to reduce loads in pollutants and pathogens concentrations. Contrary to the aerobic treatment, it permits a rapid digestion that stabilizes quickly the sludge while reducing the required installation volume and providing a rich methane biogas (around 75% to 80% in comparison to a typical 50% methane concentration in landfill biogas). The thermal energy needed for sludge heating (required temperatures of 55°C) will be provided by a biogas fuelled CHP unit. The electricity cogenerated in the CHP unit will be used in the WWTP. The technical specifications of the digesters and the CHP unit are provided in the project feasibility study.

GHG EMISSIONS ASSOCIATED TO ENERGY USE

The actual electricity consumption of the WWTP is estimated at 22.56 GWh/year. It’s mostly used by the treatment tanks aerators of the sludge thickeners. The project will require more power for the additional installations and thermal energy for the anaerobic closed digesters to maintain the sludge optimum temperature in the digesters. The expected energy consumptions of the plant after its upgrade and extension are estimated at:

Electricity : 38.53 GWh/y Thermal energy: 4.95 GWh/y

The energy produced by the biogas fired CHP unit is estimated at:

Electricity : 14.31 GWh/y Thermal energy: 19.71 GWh/y

Accordingly the energy generated at the WWTP will cover 37% of the electricity required for the plant operation. The rest, estimated at some 24.22 GWh/y, should be provided from external sources (PEC). This is slightly higher than the actual electricity consumption of the plant: 22.56 GWh/y. Concerning thermal energy produced by the CHP unit, on a total of 14.31 GWh/y generated, 4.95 GWh/y will be used in the digesters and the rest can eventually be exported to neighboring facilities (Airport for example). With regards to GHG emissions associated with the plant energy consumption, unless there is a useful use for the thermal energy in excess, the WTPP upgrade and extension project will result in more emissions associated with the plant electricity consumption!

J. METHODOLOGY AND ADDITIONALITY ESTIMATE OF GREENHOUSE GASES ABATED/ CO2 SEQUESTERED In metric tons of CO2-equivalent, please attach calculations

The project activity consisting of the introduction of anaerobic sludge treatment system with methane recovery and combustion to an existing wastewater treatment plant without sludge treatment, is conform with the requirement of the approved small scale methodology AMS III-H : Methane Recovery in Wastewater Treatment The part of the project activity related the valorization of the recovered methane for heat and electricity generation can use a corresponding category under type I, namely AMS I-C Thermal energy for the user with or without electricity These two methods have been used to assess the potential emissions reduction associated with the project activity. For the energy part the above paragraph establishes clearly that the project will actually generate more GHG emissions unless the excess thermal energy can be used in substitution of fossil fuel based thermal energy usage in the plant or in another neighbouring facility. The results of the approved methodology AMS III-H application to the project activity to evaluate the GHG emissions reductions are presented below for the baseline and project activity. Here also, for a baseline estimated GHG emissions of 54.8 kt CO2 eq/y, the expected project’s GHG emissions have been evaluated at 83 kt CO2 eq/y ! Given the fact the project activity entails the methane recovery and use, this result seems contradictory! In fact, the increase of the emissions can be explained by the following underlying two factors:

a. The energy generated compensates more or less, the additional project’s energy needs; and

b. Sludge emissions when used for soil application are considered insignificant for both the baseline and the project.

Of course one might argue that methane rich sludge of the baseline will emit more during drying than the project’s digested sludge, but this has to be established by measurement and will certainly require the approval of a new CDM methodology. In conclusion, this project, as designed, is not interesting from the CDM point of view. It should not be considered for CDM.

K. ALTERNATIVE BASELINE ESTIMATE OF GREENHOUSE GASES ABATED/ CO2 SEQUESTERED In metric tons of CO2-equivalent, please attach calculations

An alternative approach is to consider the new baseline as: Plant extension with biogas recovery and flaring. The project activity will then be limited to the biogas use in a CHP unit generating electricity and heat energy needed for the digesters; The resulting CERs are computed as follows:

Electricity: 14.31 GWh/y * 730 t/GWh = 10 500 T eq. CO2/year Thermal energy use: 4.95 GWh x 86/0.8*3= 1600 t eq. CO2/year

Total CERs around 12 000 t eq CO2/y But here the problem of the project profitability (CHP unit) could be raised. Investment in CHP unit: 2.5 M$ (should take out the flare and the boiler) Savings on electricity: 14.31*17*1000000/200= 1.22 M$/y. Thermal energy: 4.95*0.086/0.8*250$/TEP=0.14 M$/Y Total savings: 1.36M$ Pay out time 2 years Given the marginal price of the fuel (null for biogas), the project activity is very profitable. The additionality will be very hard to prove (technical barrier? risk new technology, etc.

1

Influents WW50 000 m3/dDBO5 = 1200 mg/l

Drying beds during 30 days or more Soil

applicationEmissions : 0

WWTP effluents59 900 m3/dDBO5 = 170 mg/l

Water treatment

Sludge treatment

Electricity consumption 22.6 GWh/y

Emissions:

16.47 ktCO2eq/year

BASELINE EMISSIONS:

54.8 kt CO2/y

Aerobic activayed sludge treatment

Baseline Emissions

Dissolved 38.32 kt CO2/y

2

WW influents

Sludge Soil application

Emissions:

0

Water Treatment

Sludge treatment

Electricity Consumption

39.53-14.31=25.42 GWh/y

PROJECT EMISSIONS:83 kt CO2/y

Aerobic activated sludge treatment

Digestion Drying

Project emissions

Biogas

Emissions:

17.7 kt CO2/y

Treated water effluents

Fugitive emissions

Biogas valorization

Emissions:23.18 kt CO2/y

Emissions 3.86 kt CO2/y+ Dissolved

38.32 kt CO2/y

Annex H

PIN of the Decentralized Rural Electrification by PV project

PROJECT IDEA NOTE (PIN) Name of Project: Decentralized Rural Electrification by PV - Yemen Date submitted: October 4, 2007 Description of size and quality expected of a PIN Basically a PIN will consist of approximately 5-10 pages providing indicative information on:







L. PROJECT DESCRIPTION, TYPE, LOCATION AND SCHEDULE OBJECTIVE OF THE PROJECT Describe in not more than 5 lines

The purpose of the project activity is to provide access to renewable electricity to some 19 200 rural households living in remote villages in Yemen. The project will help meet the basic electricity needs of the targeted villages through the installation of PV based individual Solar Home Systems (SHS) or collective systems with local distribution grids.


Yemen enjoys a very favourable environment for solar renewable energy development. Besides a high insolation that ranges from 5.2 to 6.8 kWh/m2/day, the availability of solar energy is also high in Yemen. The average sunshine hours in the country, varies from 7.3 hours to 9.1 hours per day. In addition, electrification rate is still very low in Yemen (less than 40%) and many small villages are scattered in isolated areas with a very low or no chance to be serviced by the national grid. Currently, there are more than 1 million households in Yemen without access to electricity. The project activity entails the installation of Solar PV systems to provide renewable electricity to rural households living in remotes villages. Depending on the households’ density, the rural electrification could be ensured either by solar PV home systems or by micro solar PV stations equipped with a local grid for the electricity distribution. The project power capacity is based on the following typical households electricity needs:

Description Capacity Hours of use

per day (h/d)

Days of use per week

(d/wk) Households lighting 3x11W 4.00 7 Colour TV 15 W 3.00 7 Radio 10 W 3.00 7 Street lighting* 10x80 W 4.00 7

* For a village The project aims at the electrification of 160 rural villages comprising an average of 120 households per village.


The technology used for PV installations is a mature technology and it is largely available from well established international manufacturers around the world. Current estimates of worldwide production of solar photovoltaic cells and modules for 2004 has reached 1 100 MWp increasing at an average annual rate of 30% since 2000. At this rate, the world annual production capacity would reach 5 000 MWp by 2010. Solar PV systems are thus well-established and reliable option for electricity supply especially for households living in remote areas, where grid extension is not viable. SHS installations are available in the local market with typical sizes of 40 Wp and 70 Wp.


CO2


employed.


Renewable


Photovoltaic (1-g)

LOCATION OF THE PROJECT Country Yemen City Villages scattered across Yemen Brief description of the location of the project No more than 3-5 lines

PROJECT PARTICIPANT Name of the Project Participant Public Electricity Corporation (PEC) Role of the Project Participant h. Project Operator ( to be confirmed)

i. Owner of the site or project j. Owner of the emission reductions k. Seller of the emission reductions______________

Organizational category c. Government agency________________ Contact person Mr. Abdul Moati Al-Janaid Eng.

Managing Director For technical matters and additional information contact: Mr. Aljanad Abdussalam Renewable Energy Department Manager

Address P.O. Box 178 Sana’a –Res., Sana’a, Yemen Telephone/Fax Tel. 967-1-328164/5 Fax. 967-1-328150/1

Mobile Mr. Aljanad Abdussalam: 967 777 200 449 E-mail and web address, if any [email protected]

Mr. Aljanad Abdussalam: [email protected] Web Site: www.pec.com.ye


The PEC is the sole Yemen public utility in charge of the management and development of the electricity sector. In 2002 the General Authority for Rural Electrification and Water Supply (GAREWS) was dismantled and the rural electrification activities of GAREWS were assigned to PEC. PEC is responsible for the production and supply of about 80% of the electricity consumed in Yemen. The rest is generated by local community cooperatives, private industries, hotels, and individual private operators. Following the unification in 1994, the power systems of the north and south were interconnected into the present national electricity grid. PEC owns, develops, and operates the interconnected power grid, and the few isolated power grids in rural areas. Community cooperatives and the individual producers operate mostly in rural areas. PEC is also in charge of the implementation of the rural electrification strategy of Yemen.



Experiences in Yemen with solar energy based rural electrification are limited. Given the low price of the subsided diesel, most electrification projects of rural villages, including the isolated ones, are using diesel generators. With the integration of the Rural Electrification Department (RED) of the ex

General Authority for Rural Water Supply GAREWsn, PEC has accumulated a good experience for large villages electrification (more than 1000 households per village). Typical PECs electrification projects are based on diesel generators with a local distribution grid. After completion, the generation installation is handed to the local council for total management. The initial contribution of the population is around 120 $/household (20% of the total cost). The billing system is defined by the RED according to the expected running costs and maintenance. The capital cost is not covered. Despite the fact that Rural Electrification Department of PEC has a limited experience with PV systems, the experience of diesel based generators should be valuable and PEC’s technical staff should have no problem implementing the PV based electrification projects..



Mid 2008


Time required for financial commitments: 3 months Time required for management and financial schemes establishment : 3 months Time required for implementation start up : 3 months


2010


20 years


10 years


Three reference studies pertinent to the project activity have been recently carried out: 1-National Rural Electrification Strategy Study, 2-Market Study and Pipeline Development for Solar PV 3- Solar Energy resource assessment, Lahmeyer, June 2006. The project is currently at the conception stage and financial resources mobilization


Considering the political backup that the project enjoys and the public status of the project’s participant, the Letter of No Objection/Endorsement should be obtained rapidly from the DNA without any problem.



M. METHODOLOGY AND ADDITIONALITY ESTIMATE OF GREENHOUSE GASES ABATED/ CO2 SEQUESTERED In metric tons of CO2-equivalent, please attach calculations

The project implementation schedule is summarized in the following table:

Year 2008 2009 2010 2011 2012 Number of

villages 8 12 20 40 80

The nominal PV array power has been estimated at 8.4 kWp for each village. The expected renewable energy that will be delivered by the PV installation has been evaluated for each village at 10.21 MWh/year. The evaluation of the emissions reductions are detailed in the following tables.

Year Unit 2010 2011 2012 2013 2014

Number of villages 20 40 80

Cumulated Number of villages 40 80 160 160 160

Number of households 4 800 9 600 19 200 19 200 19 200

Electrcity generation MWh/y 409 817 1 634 1 634 1 634

Avoided GHG emissions t CO2 eq/y 573 1 146 2 291 2 291 2 291

* 20 villages will be electrified in 2008 and 2009 before the crediting period start.

Year Unit 2015 2016 2017 2018 2019

Number of villages

Cumulated Number of villages 160 160 160 160 160

Number of households 19 200 19 200 19 200 19 200 19 200

Electrcity generation MWh/y 1 634 1 634 1 634 1 634 1 634

Avoided GHG emissions t CO2 eq/y 2 291 2 291 2 291 2 291 2 291

Annual average emission reductions over crediting period: 2 005 tCO2/y Up to and including 2012: 4 010 tCO2-equivalent Up to a period of 10 years: 20 050 tCO2-equivalent Up to a period of 7 years: 13 176 tCO2-equivalent Simulations were done on RETScreen assuming the following:

The monthly average temperatures and daily radiations for Yemen have been extracted from the Nasa database

Default emission factor of diesel power engines recommended by methodology AMS IA completed by AMS 1D was used: 1.402 kg CO2 eq/KWh.




About ¼ - ½ page

The project activity involves the use of solar power which is a clean and renewable source of energy, to produce electricity and supply it to households living in isolated rural areas. The electricity produced will displace the current practice largely used in Yemen that consists in generating electricity using diesel engines. It is estimated that half the rural households that have access to electricity are using diesel engines. The rest is connected to the PEC’s grid. In the absence of the project activity, which is the business as usual scenario, the targeted villages will either continue to do without electricity or use the prevailing electrification option of diesel generators. The approved small scale CDM methodology AMS IA for electricity generation by the user from renewable sources can be used.


The additionality of the project can be justified by the following arguments/barriers: (i) The project activity in expensive and financially not attractive (ii) The prevailing practice of diesel generators benefit from heavy subsidies and is financially attractive (iii) PV based electrification option is not common in Yemen.


Yemen is the least electrified country in the MENA region, with only about 40% of the total population having access to electricity. 75% of the population lives in rural areas with a concentration in the coasts and the prairies. The climate is very variable and the access to most villages is difficult. In rural areas, the electrification rate is very low at only about 20%. More than half of the rural power supply comes from cooperatives, the private sector, and auto-generation. The low access and the absence of reliable electricity supply have been recognized as severe constraints to economic growth in Yemen, and to the achievement of the Government of Yemen’s poverty alleviation objectives. � Many studies have shown that Yemen is endowed with significant renewable energy resources such as wind, solar and geothermal energies. These resources can help sustain large-scale commercial power development as well as small-scale decentralized system to meet the energy needs of rural and remote communities. To develop these resources and stimulate private investments in RE, a national renewable strategy has been recently adopted and a renewable energy contribution target of 8% of the total grid-based electricity generation in 2018 has been proposed. An assessment of the PV potential and market has been carried out in a recent study entitled The Market Study and Pipeline Development for Solar PV in Yemen. The study developed five replicable project pipelines. It provided broad design of technical details; investment requirements and institutional arrangements for the PV based electrification projects. It worth mentioning that Lahmeyer study on RE resources assessment has evaluated the potential of the SHS at 53.2 MW. In comparison the installed capacity of the proposed project is 1.34 MW representing less than 2.5% of the potential capacity of PV based rural electrification projects in Yemen. Apart from the mentioned RE strategy set objectives, there is no legal obligation for the participant to implement the project.

N. FINANCE TOTAL CAPITAL COST ESTIMATE (PRE-OPERATIONAL) Development costs 0.64 S$ million (Feasibility and development studies, etc.) Installed costs 12 US$ million (equipment, etc.) Land ___ US$ million Infrastructure off site US$ million Miscellaneous 0.63 US$ million (Legal, consulting, etc.) Total project costs 13.3 US$ million SOURCES OF FINANCE TO BE SOUGHT OR ALREADY IDENTIFIED Equity Name of the organizations, status of financing agreements and finance (in US$ million)







___ US$ / €




Provide a spreadsheet to support these calculations. The PIN Financial Analysis Model available at www.carbonfinance.org is recommended. O. EXPECTED ENVIRONMENTAL AND SOCIAL BENEFITS


Generation of electricity by PV systems will limit the use of diesel generators in rural villages and help offset the heavily subsidized diesel use in Yemen. The diesel generators have typically an efficiency limited to 16% to 25% depending on the size. Their use is associated with gas pollutants emissions such as CO, SO2, NOx and PMs and engine noise. The use of solar energy will help enhance the local air quality, reduce noise nuisance and help reduce the dependence of Yemen on fossil fuel.


Help demonstrate the sustainability of RE based electrification systems in a

region dominated by the use of fossil fuels Help preserve the fossil fuel resources;


The project will help provide electricity access to household living in rural isolated villages. Access to electricity has a tremendous potential social and economical role in transforming peoples’ lives in rural villages, particularly for women and children. It can help reduce drudgery and enable poor households to engage in, and extend, activities that generate income. Electric lighting extends the working day, increase productivity and help reduce illiteracy. Besides households’ applications, access to electricity can help provide energy for quality community services (education, health, clean water supply) as well as help create basic income generating activities in rural areas.




Help develop solar and in general renewable energy, widespread use in Yemen;

Local capacity building in RE The project could encourage private sector promoters to participate in the

development of RE sector in Yemen.

ENVIRONMENTAL STRATEGY/ PRIORITIES OF THE HOST COUNTRY A brief description of the project’s consistency with the environmental strategy and priorities of the Host Country

The project activity is considered one of the first concrete actions toward the achievement of Yemen RE development Strategy. Through the establishment of a reference model for rural electrification with renewable source, the project will help disseminate RE based electrification alternatives and help electrify thousands of poor rural households that cannot afford a diesel generator and that have no chance to electricity access through the grid.

About ¼ page Also, as one of the first CDM projects, the PV project should have an inducing effect on the development of other CDM clean projects in Yemen.

Annex I

PIN of the Biogas Recovery and Flaring project at Aden WWTP

PROJECT IDEA NOTE (PIN) Name of Project: Biogas recovery and flaring in Aden Waste Water Treatment Plant Date submitted: October 8, 2007 Description of size and quality expected of a PIN Basically a PIN will consist of approximately 5-10 pages providing indicative information on:







P. PROJECT DESCRIPTION, TYPE, LOCATION AND SCHEDULE OBJECTIVE OF THE PROJECT Describe in not more than 5 lines

The main objective of the project is the extraction and flaring of the methane rich biogas from the anaerobic ponds of Aden Waste Water Treatment Plants (WWTP). The recovery and flaring of the biogas will help avoid the direct emanations of methane in the atmosphere from the WWTP ponds and hence reduce the plants GHG emissions.


The project aims at the capture and flaring of the biogas from the anaerobic ponds of the two Aden WWTPs: Ash Shaab and Al Arish WWTPs servicing respectively the Governorate north region (Sheikh Othman, Al Mansoura, Al Qahira, Dar Saad and Ash Shaab areas ) and south region (Khormaksar, Al Tawahi, Ma’alla and Crater areas). The Ash Shaab plant comprises two parallel trains of waste stabilisation ponds. Each train consists of one anaerobic pond, two in-parallel facultative ponds followed by two in-parallel maturation ponds. The outlets from the two trains are joined downstream of the ponds and the effluent is discharged by a single pipeline to a wetland area. The total treated effluent is estimated at 20 000m3/d with an average inlet DBO5 of 650 mg/l. With a depth of 3 m, the first anaerobic pond has a volume of 21,500 m3 and water surface area of 8,840 m2. The volume and the water surface of the second anaerobic pond are evaluated respectively at 35 200 m3 and 12 750 m2. Al Arish WWTP was commissioned in 2002 with a design capacity of 70,000 m3/d and at an assumed BOD concentration of 312 mg/l. The plant consists of two in-parallel trains of waste stabilization ponds; each train consisting of a series of one anaerobic pond, one facultative pond and two maturation ponds with a design capacity of 35,000 m3/d. The present flow to the plant is estimated at 23,000 m3/d at a BOD concentration of 650 mg/l. According to the design, only one pond train was to be used currently. But given the high organic pollution load, the first anaerobic pond is used with the two facultative and all four maturation ponds. The anaerobic pond has a total volume of 130 000 m3, a water depth of 3 m and a water surface of around 36 000 m2. The average DBO5 of all the effluents of anaerobic ponds is estimated at 300 mg/l corresponding to an organic pollution abatement efficiency of 54%. Visual examination of the anaerobic ponds during a visit to the Ash Shaab plant has shown that the biogas emissions are important and clearly visible.


The proposed project involves a biogas recovery system which covers the three anaerobic ponds of the two WWTPs with floating plastic membranes. This system captures the biogas, which is flared on site.


employed.

Covers for the ponds should be manufactured with adequate liner that resist rough weather and provides a system to evacuate accumulated rainwater. The anchoring of the cover should be made along the ponds perimeter to guarantee that it is hermetically sealed. A piping system has to be installed for the gas evacuation and feeding of the flare.


CH4


4- Waste Management


4x. Biogas flaring

LOCATION OF THE PROJECT Country Yemen City Aden Brief description of the location of the project No more than 3-5 lines

The project is to be carried out in the sites of the Aden’s to WWTPs: the Ash Shaab treatment plant located on the road passing southwards to Little Aden and Al Arish plant located at some 11 km from Aden on the coastal road to Abyan.

PROJECT PARTICIPANT Name of the Project Participant Aden’s Local Water & Sanitation Corporation Role of the Project Participant l. Owner of the site/project

m. Owner of the emission reductions n. Seller of the emission reductions

Organizational category d. Public institution Contact person Mr. Abdullah Abdulfatah

General Director of Aden LWSC For technical matters and additional information contact: Eng. Nasser Manssoor Ahmed Shadadi Manager of Treatment Plant and Laboratories

Address Local Water and Sanitation Corporation, Aden Telephone/Fax Tel. 00967-2- 254 272

Mr. Shadadi: Mobile: 967 - 777 104340 Office: 967 - 821621

E-mail and web address, if any


Aden LWSC is one of the seven public utilities in Yemen in charge of the local water and sanitation services for domestic, industrial and commercial use. Each local corporation is run under the management of a Board of Directors, with representatives from Ministry of Water and Environment, Ministry of Finance, Ministry of Planning and Development, National Water Resource Authority, Local Corporation.



Aden Local Water & Sanitation Corporation (ALWSC ) is operating both Aden’s WWTPs since 2000. The WWTPs are relatively well managed and ALWSC should have no problem carrying out the implementation and operation of the capture and flaring installations. Despite the fact that there is no experience in Yemen with biogas recovering from waste water and flaring, provided a capacity building training program, the technical staff of the ALWSC should have no problems running and maintaining the new installations



2009


Time required for financial commitments: 3 months Time required for construction: 9 months


2009


20 years


10 years


The project is at the concept definition stage. No feasibility study has been done.


Considering the political backup that CDM projects enjoy in Yemen and the public status of the project’s participant, the Letter of No Objection/Endorsement should be obtained rapidly from the DNA without any problem.



Q. METHODOLOGY AND ADDITIONALITY ESTIMATE OF GREENHOUSE GASES ABATED/ CO2 SEQUESTERED In metric tons of CO2-equivalent, please attach calculations

The annual GHG emission are evaluated using defaults values of 2006 IPCC Guidelines for Greenhouse Gas Inventories- Volume 5- Chapter 6 related to Waste Water. http://www.ipcc-nggip.iges.or.jp/public/2006gl/pdf/5_Volume5/V5_6_Ch6_Wastewater.pdf

Year ton CO2e/yr

1 2009 42 600

2 2010 42 600

3 2011 42 600 170 400

4 2012 42 600

5 2013 42 600

6 2014 42 600

7 2015 42 600

8 2016 42 600 255 600

9 2017 42 600

10 2018 42 600

Total 426 000 426 000

Up to and including 2012: 170 400 tCO2-equivalent Up to a period of 10 years: 426 000 tCO2-equivalent Up to a period of 7 years: 298 200 tCO2-equivalent Calculations: Simulations were done using the following data and assumptions:

Waste Water DBO5 load 28,6 t/d ( 44 000 m3/d x 650 g/m3) Fraction DBO5 that settles in the anaerobic pond 50% ( IPCC default

value) Fraction of the DOB in the sludge that degrades anaerobically, 80%

(IPCC default value) Emission factor kg CH4/Kg DBO5, 0.6 (IPCC default value) Assumed collecting efficiency 90% Enclosed flaring efficiency 90% (Annex 13, Methodological “Tool to

determine project emissions from flaring gases containing methane”, Meeting report EB32 UNFCC).

An alternative to gas flaring is its combustion for electricity generation. Given the fact that the electricity consumption of the Aden’s WWTPs is low ( lagoons based treatment plants don’t require much energy) the electricity produced should be sold to PEC or to a local community. The annual electricity production is estimated at 7.7 GWh/y requiring 3 generators with a nominal capacity of 550kw each (1 on stand by). The additional emission reduction from the electricity generation is evaluated at : 5 400 t/y. The total emission reduction of the methane recovery and electricity production are summarized below:

Year ton CO2e/yr

1 2009 48 000

2 2010 48 000

3 2011 48 000 192 000

4 2012 48 000

5 2013 48 000

6 2014 48 000

7 2015 48 000

8 2016 48 000 288 000

9 2017 48 000

10 2018 48 000

Total 480 000 480 000 Up to and including 2012: 192 000 tCO2-equivalent Up to a period of 10 years: 480 000 tCO2-equivalent Up to a period of 7 years: 336 000 tCO2-equivalent This electricity option has a good profitability (expected pay out time is around 3.5 years). Its CDM additionally will be hard to justify.




About ¼ - ½ page

The project activity involves the biogas recovering and flaring for the sole objective of GHG emission reductions and malodors control. In the absence of the project, which is the business as usual scenario, there will no biogas recovering and CH4 emissions will continue. There is no legal obligation for the project proponent to invest in recovering and flaring installations.


The additionality of the project can be justified by the following arguments/barriers: (i) there is no regulation or incentive scheme in place covering the project (ii) the project is implemented for the sole purpose of GHG reductions (iii) the project activity has no financial benefits nor incentives other than the CDM revenue (iv) no other WWTP in Yemen is recovering nor flaring the biogas For the electricity generation alternative, iii won’t be valid and technological and investment barriers should be the invoked for the additionality justification.


Aden city, the capital of the Aden Governorate, is located at the Gulf of Aden. It is the most important economic centre in Yemen due to its sea port and industrial free zone area. The population of Aden Governorate is 1.5 million, of which almost half live in the city of Aden. The city benefits from a well developed water supply and sewerage system with high connections rates compared with other communities in Yemen. The water supply and wastewater systems are operated by the Local Corporation for Water Supply and Sanitation for Aden (LCWSSA), which was created as an independent utility in 2000 from the former National Water Sanitation Authority (NWSA) branch. Aden Governorates waste water is treated in two WWTPs: Ash Shaab and Al Arish WWTPs servicing respectively the Governorate north region and south region. The total waste water treated is estimated at 42 000 m3/d corresponding generation ratio of 77 l/capita/day. A Feasibility Study, funded by kfW was carried out in 2003 for the reuse of treated effluent and sludge from the wastewater treatment plants in Aden, Amran, Hajjah, Ibb and Yarim. The study analyzed the operating and local conditions of Aden’s WWTP and proposed specific recommendations for the stations capacity extensions and the enhancement of the effluent and sludge quality. Concerning policies and legal requirements with regard to wastewater, up to date the focus has been put in Yemen on improving sanitation services and on appropriate treatment for the effluent safe discharge as means of reducing the impact of waste waters on health and environment. A proposal for a National Wastewater Strategy was developed by the FAO in 2000 under the ‘Watershed Management and Wastewater Re-use in Peri-urban Areas of Yemen’ project. The proposed strategy has not been adopted by the government of Yemen. Wastewaters norms in Yemen are defined in the Yemeni Standards No.149 of 2000 on Industrial and Commercial Wastewater. There are no directives in Yemen on urban wastewater treatment and no legal obligation for WWTP biogas capture nor flaring.

R. FINANCE TOTAL CAPITAL COST ESTIMATE (PRE-OPERATIONAL) Development costs 0.15 S$ million (Feasibility and development studies, etc.) Installed costs 1.70US$ million (Equipment, civil engineering, etc..) Miscellaneous 0.15 US$ million (Legal, consulting, etc.) Total project costs 2.0 US$ million

The project investment covers the capital cost of both WWTPs installations: three anaerobic ponds floating membranes covering systems, two flaring installations, civil engineering, PVC piping for biogas transport, blowers, flow and pressure measurement devices etc.

SOURCES OF FINANCE TO BE SOUGHT OR ALREADY IDENTIFIED Equity Name of the organizations, status of financing agreements and finance (in US$ million)







___ US$ / €



Provide a spreadsheet to support these calculations. The PIN Financial Analysis Model available at www.carbonfinance.org is recommended. 18 Advance payment subject to appropriate guarantees may be considered. 19 Please also use this figure as the carbon price in the PIN Financial Analysis Model (cell C94). 20 The World Bank Carbon Finance Unit encourages the seller to make an informed decision based on sufficient understanding of the relative risks and price trade-offs of selling VERs vs. CERs. In VER contracts, buyers assume all carbon-specific risks described above, and payment is made once the ERs are verified by the UN-accredited verifier. In CER/ERU contracts, the seller usually assumes a larger component - if not all – of the carbon risks. In such contracts, payment is typically being made upon delivery of the CER/ERU. For more information about Pricing and Risk, see “Risk and Pricing in CDM/JI Market, and Implications on Bank Pricing Guidelines for Emission Reductions”.

S. EXPECTED ENVIRONMENTAL AND SOCIAL BENEFITS


Methane capture and flaring in Aden’s WWTPs has several positive social and environmental impacts:

Reduce the malodours associated with biogas emanations in the sites vicinity. This is particularly important that the extension of residential zones has reached the vicinity of the treatment plants

The flaring of the biogas will improve the local environment by reducing the amount of noxious air pollution arising from the biogas emanations in the plants, resulting in a considerable reduction health risks associated with these emissions and the nuisance caused by their odours.


Besides reducing GHG emissions, global benefits of the project are:

Provide a model for managing of biogas in WWTPs throughout Yemen Reinforce Yemen capacity in waste water management


In the absence of the CDM the project would not have been implemented due the required investment. The economical benefits of the project result from the CERs selling to compensate for the investment in the project activity. Also with the reduction of the air pollution and odors, the prices of the nearby real state should increase resulting in a positive economic effect on the owners. Reducing the noxious odors can also help improve the status of the land in the vicinity of the plants and help create new economic development projects. For the social aspect, the project will help improve the quality of life of the neighboring communities (improvement of air quality, reduction on noxious air pollution and odors nuisance etc.)




Introduction in Yemen of an exemplary new façon de faire in waste water

management ; Technology transfer and local capacity building

ENVIRONMENTAL STRATEGY/ PRIORITIES OF THE HOST COUNTRY A brief description of the project’s consistency with the environmental strategy and priorities of the Host Country About ¼ page

The project activity will help demonstrate the social and environmental benefits of the gas capture and utilization or flaring in WWTPs in Yemen. Also, as a first CDM project, Aden’s WWTPs gas capture and flaring could have an inducing effect on the development of other CDM clean projects in Yemen.

Annex J

Evaluation of the Biogas Recovery from Animal Waste and Energy Generation project

of 98

BIOGAS RECOVERY FROM ANIMAL WASTE AND ENERGY GENERATION

PROJECT EVALUATION NOTE

1- THE PROJECT OBJECTIVE Conversion of animal waste to biogas through anaerobic digestion processes can provide added value to dung as an energy resource and reduce environmental problems associated with animal wastes. The objective of the project is to help implement a program of family/cooperative size biodigesters in rural areas to produce biogas for cooking and lighting. The use of rich methane biogas (around 60%) will help reduce the consumption of fuel wood and kerosene associated with deforestation, atmospheric pollution and GHG emissions. 2- EXPERIENCE OF BIODIGESTERS IN YEMEN The first biodigeters in Yemen were implemented by WHO in the nineties. They ranged from cooperative size biodigeters 100 m3 to a volume of more than 1000 m3 for industrial cows and poultry farms, fish wastes factories, etc. Most of these installations did not last more than two to three years for among others reasons, poor design, lack of maintenance and technical capacity deficiency. Since 2002, some 200 biodigesters have been constructed in Yemen under different programs: Ministry of Agriculture and the Arab Center for the Studies of Arid Zones and Dry Lands, Care NGO and the Social Development Fund. Given the cumulated operational experience and the various training and technical assistance programs implemented by the Social Development Fund, the Ministry of Agriculture and the Sana’a Veterinary School, many biodigesters are still operational. An interesting 10 m3 pilot project based on a mixed Egyptian/Chinese model design has been implemented by a professor at the Sana’a Veterinary School (SVS). During the field trip, a visit to the SVS was organized and a very instructive meeting was held with Pr. Mosleh Ali Al Faqeh who had designed the pilot digester and supervised its construction. The main features of the digester are summarized in the table below.

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Size 10 – 11 m3

Model Chinese - Egyptian

Total construction cost YR 400 000,- (roughly US$ 2000,-)

In operation since 4 – 5 months

Daily feed-in 70 kg ( Three cows)

Water feed Proportion 1 to 1 (Dung/water)

Construction materials Cement bricks

Biogas pipelines Total 120 m, half inch

Application of produced biogas For cooking (1 household + 1 nutrition lab)

Operation By the beneficiary (the guard of the school)

Project evaluation Working fine

Contact

Pr. Mosleh Ali at the Sana’a Veterinary School,

Tel. 967 777 46 6729

Email: [email protected]

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3- BIODIGESTERS IMPLEMENTATION PROGRAM According to PEC the Social Development Fund has agreed to finance a national program for the implementation of 600 family size biodigesters over a period of three years: 2008-2010. Also the Ministry of Agriculture and Yemeni Economic Corporation (YECO; www.yeco.info) seem to be interested in the implementation of one or two biodigesters in cattle industrial farms (500 to 700 heads). A detailed feasibility and design Study has been carried out by Pr. Moslih of the Sana’a Veterinary School for a biodigester at Rosaba farm located in Dhamar. 4- POTENTIAL EMISSION REDUCTIONS OF BIODIGESTERS In theory the capture and use of rich methane biogas should result in GHG emissions and benefit from CDM. In practice the CDM certification of biodigeters activities is more complex. Unless there is an industrial activity involving 5 000 cows or more, the capture of biogas from anaerobic digestion of animal waste does not generate much CERs! To illustrate this, let’s take for example a dairy farm with some 1000 cows and a typical rural family and evaluated the yearly potential of methane production of the two projects. The calculation results are summarized in the tables below.

In rural areas animal waste is used in sol application and thus, given the aerobic environment, it does not generate biogas emissions. So, the emissions reduction potential of animal waste is limited to the biogas energy use. The two examples show that the potential emissions reductions are very limited: 380 t eq. CO2/y for a farm of 1000 cows and an insignificant 0.38 t eq. CO2/y for a typical rural family. In fact for a rural family it’s even less since the computations have been made assuming that the use biogas will replace the use of a fossil fuel such as diesel or kerosene. Given the fact that biomass is considered carbon neutral, the part of biomass use should have been omitted from the emissions computations. 5- RECOMMENDATION Given the fact that i) there is no commitment from either Social Development and YECO to finance and carry out a national program of biodigeters development in rural villages and in industrial farms and ii) that the potential of emissions reductions of biodigesters use is very low, it is recommended that the CDM development of this project be dropped out.

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EMISSION REDUCTION FOR TYPICAL DAIRY FARM

Unit Value

Number of cows 1 000.00

Daily waste produced kg/cow/d 4.00

t/y 1 460.00

Biogas production m3/kg 0.20

m3/d 812.00

Methane biogas content % 60%

Methane density kg/m3 0.716

Methane production m3/d 487.20

m3/y 177 828.00

Electricity generation ratio kWh/m3 3.00

Electricity generated MWh/y 533.48

Emission reference ration T CO2/MWh 0.71

Potential emission reduction t eq CO2/y 380.37 t eq CO2/y/cow 0.38

EMISSION REDUCTION FOR A TYPICAL RURAL FAMILY Unit Value Daily waste produced kg/d 3.00 t/y 1.10 Biogas production m3/kg 0.203 m3/d 0.61 Methane biogas content % 60% Methane density kg/m3 0.716 Methane production m3/d 0.37 m3/y 133.37 kg/y 95.49 Net heating value MJ/m3 35.00 Total heating value MJ/y 4 667.99 Emission factor tCO2/TJ 73.30 Emissions Reduction potential tCO2/y 0.34

Development of CDM Project Idea Notes in Yemen...Furthermore a CDM capacity building workshop was...

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