Project Design Document

Transcription

THE GOLD STANDARD MICRO-SCALE SCHEME PROJECT DESIGN DOCUMENT
FORM - Version 2.2
CONTENTS
A.
General description of the micro scale project activity
B.
Application of an existing or new baseline and monitoring methodology
C.
Duration of the project activity and crediting period
D.
Stakeholders’ comments
Annexes
Annex 1: Contact information on participants in the proposed micro scale project activity
Annex 2: Information regarding Public Funding
SECTION A.
A.1
General description of micro-scale project activity
Title of the micro-scale project activity:
Recycling Used Cooking Oil into Biodiesel in Bali
13/11/2014
Version 3.0
A.2.
Project participants:
Name of Party involved
((host) indicates a host
Party)
Private and/or public
entity(ies) project
participants (as
applicable)
Kindly indicate if the Party
involved wishes to be
considered as project
participant (Yes/No)
Indonesia (host)
Yayasan Lengis Hijau
No
Switzerland
Foundation myclimate –
The Climate Protection
Partnership (private entity)
No
Switzerland
Caritas Switzerland (private No
entity)
Switzerland
Kuoni Travel Holding
Limited (private entity)
No
Under the Gold Standard VER scheme no letter of approval from the DNA is required. However, the
DNA of the host country was notified about the existence of the project.
A.3
Description of the micro-scale project activity:
A.3.1. Location of the micro-scale project activity:
A.3.1.1.
Host Country:
A.3.1.2.
Region/State/Province etc.:
Indonesia
Bali (province of Indonesia)
Recycling Used Cooking Oil Into Biodiesel
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(Source: http://en.wikipedia.org/wiki/Bali)
A.3.1.3.
City/Town/Community etc:
The province of Bali is divided into 8 regencies and 1 city. The project activity will include the whole
province as the hotels and restaurants, which are both the waste oil providers and the biodiesel
consumers, are spread all over the island. However, as the main touristic region is in the south and
southeast of Bali most of the expected participants are situated there.
(Source: http://en.wikipedia.org/wiki/Bali)
A.3.1.4.
Details of physical location, including information allowing the
unique identification of this micro-scale project activity:
See A.3.1.3. for information on the geographical boundaries of the project.
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The biodiesel processing plant, the biodiesel and waste oil storage and offices of the project managing
entity are located in a warehouse in Denpasar, the capital of Bali in the south. The coordinates of the
warehouse are:
Latitude: -8.620625
Longitude: 115.188669
A.3.2. Description including technology and/or measure of the micro-scale project activity:
With around 4 million visitors per year Bali is the largest tourist destination in Indonesia and one of the
largest and most popular in the world. Waste disposal is one of the major problems in Indonesia and
Bali.
One aspect of the waste problem relates to cooking oil. In hundreds of hotels and restaurants,
primarily in the touristic centers of the island, large quantities of cooking oil are regularly used and
waste oil is produced. A study carried out by Caritas Switzerland in 2010 showed that there is no
systematic way to handle waste oil in Bali. Waste oil is filled in canisters and disposed together with
solid waste, is disposed with wastewater or get to the informal economy where it is cleaned and
reused for cooking in small kitchens.
The disposal of used cooking oil in such an unsustainable manner results in pollution of water bodies,
freshwater resources, soil and contributes to global warming. In addition to the unsustainable disposal
practice, reusing it in food stalls leads to significant health risks.
By initiating the project activity Caritas Switzerland, Kuoni Travel Holding Ltd. and Foundation
myclimate want to contribute to better conditions of health and of the environment. The waste oil
shall be collected, processed and used as biodiesel for transportation, electricity and heat generation.
It is planned to recycle at least between 400 and 600 m3 of used cooking oil per year into biodiesel. By
replacing fossil-based fuel the project activity will also lead up to 1500 tonnes of GHG emission
reductions.
The main principle of the project activity can be shown in the following graph:
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Organizational Structure
The project started as an initiative of Caritas Switzerland, one of Switzerland’s most respected and
influential development and humanitarian organizations. They planned and implemented the project
and managed all operational activities during the start phase such as the collection and processing of
waste oil into biodiesel until Lengis Hijau (see next section) took over the management of the project
at the beginning of August 2013.
Within the first part of the operational phase (start phase), the social enterprise Lengis Hijau (which
means “Green Oil” in Balinese) have been founded and finally took over the operational management
from Caritas when it was legally registered as a local Yayasan according to Indonesian law, which is
similar to non-profit organizations (see the planned structure of Lengis Hijau in the picture below). It
will be the managing entity of the project.
The Foundation myclimate is responsible for the development of the project as a GS micro-scale
project and will be the purchaser of the carbon credits. The carbon revenues are crucial for the
financial feasibility and they also help to pre-finance the project activity.
Kuoni Travel Holding Ltd. will offset part of their emissions through the carbon credits of this project
and will support the project financially. In addition, as one of the world’s leading globally-active leisure
travel organizations cooperating with about 60 different hotels and resorts in Bali, their environmental
and social commitment is an important example for the hotels and restaurants and is crucial for
bringing the hotels and restaurants behind the project.
Collection of waste oil
The waste oil is mainly collected by the drivers employed by the managing entity. The drivers will
collect the waste oil directly at the hotels and the restaurants or the waste oil is delivered by someone
else to the recycling plant. Lengis Hijau will collect and record all information such as the name of the
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oil supplier, date of the delivery, price paid for the waste oil, amount of oil and other information.
Several vans will be used for the transportation of waste oil, which is filled in jerry cans.
Processing
Biodiesel is produced through the chemical reactions transesterification and esterification as it is
shown in the diagram below. Due to security and quality reasons, potassium methoxide instead of KOH
is used in the project.
(US Dep. of Energy)
After evaluation of technical solutions for biodiesel processing equipment it was decided to work
together with Greenfuels Ltd., Gloucestershire, GB (greenfuels.co.uk/home.html). Greenfuels arranged
the production in Europe and installation of the bulk tanks and piping systems in Indonesia. The tanks
and pipes have been installed through PT Meco, an Indonesian subcontractor from Surabaya. In the
start phase, after the installation in January 2013 and commencement of the processor, the workflow
for oil processing has been optimised and processing staff has been trained to operate and maintain
the system.
The plant is installed in a building that has been leased in the north-west of Denpasar. The layout of
the production hall is shown in the picture below.
(Caritas Switzerland)
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Beside the raw material and product bulk tanks an air compressor which is required for the processing
plant as well as vehicles and jerry cans for oil collection have been purchased in Indonesia between
October and November 2012.
The technical drawing is also shown in Annex 3 of this PDD.
Sale/Distribution/Consumption
As fuel for vehicles is subsidized in Indonesia the resulting biodiesel is probably mainly used for
industrial purposes, power stand-by units or other transportations such as by ships as it is competitive
there. Generally the biodiesel is distributed again by the plant operator/managing entity and therefore
delivered directly to the different commercial and industrial customers or picked up by them. The
details such as the name, date of the delivery, price for the biodiesel, amount of biodiesel and other
information are recorded by the operator.
A.3.3 Estimated amount of emission reductions over the chosen crediting period:
The chosen crediting period for the project activity is 10 years. It is estimated that the project activity
will generate emission reductions over a period of 10 years. Annual estimations of emission reductions
are given in the table below and are calculated ex-ante as described in Section B.
Years
2014
Estimation of annual emission
reductions in tonnes of CO2e
217
2015
435
2016
653
2017
762
2018
871
2019
980
2020
1089
2021
1089
2022
1198
2023
1307
Total estimated reductions
(tonnes of CO2e)
Total number of crediting years
8601
Annual average of the estimated
reductions over the crediting
period (tonnes of CO2e)
860
10
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A.3.4. Public funding of the micro-scale project activity:
The project is mainly financed by carbon revenues and sales of biodiesel but also includes some public
funding and grants from private foundations. The carbon credits are not paid by public funding and
such funding is not linked anyhow to the receipt of carbon credits. Therefore, the project does not
result in a diversion of Official Development Assistance. An Official Development Assistance
Declaration as requested by the Gold Standard guidelines is provided.
SECTION B. Application of an existing baseline and monitoring methodology or of a new
methodology submitted as part of this project activity
B.1. Title and reference of the existing or new baseline and monitoring methodology applied to
the micro-scale project activity:
This micro-scale project applies the Gold Standard methodology “Voluntary Gold Standard
Methodology for Biodiesel from waste oil/fat from biogenic origin for use as fuel”, Version 1.0, dated
on 06/08/2009.
B.2
Justification of the choice of the methodology and applicability:
Applicability
The methodology is applicable because the project activity reduces emissions through the production,
sale and consumption of blends of petrodiesel with biodiesel to be used as fuel. For the avoidance of
doubt, in this project activity petrodiesel will include also heating oil, which has the same chemical
structure as diesel. The biodiesel in the project is produced from waste cooking oil from biogenic origin
according to the biogenic definition in the GS methodology. The biodiesel is 100% trans-esterified
biofuel diesel.
According to the methodology the emission reductions can only be issued to the producer of the
biodiesel, which is the operator of the plant and managing entity according to A.3.2. The legal rights on
the emission reductions are secured by written confirmation of the biodiesel consumers.
Project eligibility under Micro-Scale Scheme
a) The annual emission reductions are far below 10’000 tonnes of CO2e in each and every year of
the project (see ex-ante calculation in Section B). The planned amount of waste oil is between
400 and 600 m3 per year.
b) The project type is eligible as it corresponds with the GS eligibility criteria in GS Annex C and
with the applicability criteria in the used GS methodology.
c) As the project is located in Indonesia it will not benefit from simplified rules.
Feedstock inputs
a) The waste oil used in the project activity is mainly a residue from restaurants, hotels and other
applications in the food sector and therefore according to the feedstock requirements.
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However, waste oil from biogenic origin from households shall be part of this project as well as
it may be collected at a later stage of the project as well.
b) The waste oil is only sourced in Indonesia and therefore within the boundaries of the host
country.
c) The biodiesel is produced from waste oil from the food sector or households (according to the
explanations under point a)). Even though different cooking oils are bought on the local,
national and international market and are used in the food sector in Bali only non-fossil oil is
used for cooking. Therefore the biodiesel is produced from renewable biomass resources as,
according to EB 23, Annex A, “The biomass is the non-fossil fraction of an industrial or
municipal waste. “ The origin from the food sector or households is shown by the recorded
waste oil suppliers.
d) A study carried out by Caritas Switzerland in 2010 showed that there is no systematic way to
handle waste oil in Bali. In Bali used cooking oil is commonly discharged directly into the
environment and causes pollution of water bodies, groundwater and soil. A large part of it will
also get to the informal economy where it is cleaned and sold via middlemen and local markets
to consumers, which use it in food stalls. The end users of the waste oil in the baseline are not
known and can’t be addressed. More than that, they often don’t even know that they buy used
cooking oil as they are not informed and are often from the lower social strata. The reuse of
cooking oil as foodstuff can be very harmful to human health (e.g. cancer, see for example the
workshop presentation from Dr. I Wayan Weta from the Medical Faculty of Unud Denpasar).
The practice of selling waste oil as food stuff can be categorised as highly critical and at least
close to illegality since the origin of the oil is often not disclosed to customers and its
consumption is health hazardous. Therefore, the project will at most be a shift away from an
intransparent and very harmful practice.
Product outputs
a) The petrodiesel, the biodiesel and their blends fully comply with national regulations. The
project owners received all necessary confirmations and authorization from the regional and
national government. The biodiesel quality will be assessed in official analysis and independent
laboratories. First analytic results from own tests indicate good biodiesel quality.
b) The by-product glycerol is collected and will not be disposed. Different sales and usage options
are currently under discussion.
Consumption of biodiesel
a) The blended or pure biodiesel is supplied to consumers only in Indonesia and is used in existing
stationary installations, for industrial purposes and in vehicles or ships.
b) If the biodiesel is used in the transport sector it will be used for captive fleet. The purchaser of
the biodiesel are commercial and industrial customers and not private.
c) All waste oil suppliers and biodiesel buyers are recorded by the operator/producer. This record
together with the confirmed receipts (and/or long-term agreements in some cases) will allow
the producer to monitor the consumption of the blended biodiesel. By confirming the
purchased amount the consumers also confirm that they shall not claim any emission
reductions resulting from its consumption.
d) Neither in stationary installations nor in the vehicles/ship engines major modifications are
deemed necessary to combust the biodiesel. According to the GS methodology “if the project
participants use a blending proportion more than 20%, and they wish to claim VERs, they shall
justify in the PDD that the technical performance characteristics of the blended biodiesel do
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not differ significantly from those of pure petrodiesel”. According to technical assessments, oil
analysis and long-term expertise from biodiesel experts there is no technical reason to limit the
blending fraction if the biodiesel is handled properly. In the project activity the biodiesel will
mainly be used as pure biodiesel (with a blending fraction of 0%). The consumers are informed
about the correct handling and the technical risks. The biodiesel is produced according to legal
requirements and therefore meet all regulatory requirements.
e) As shown under point d) the biodiesel performance characteristics do not differ from those of
petrodiesel. Therefore the monitoring of the blending proportion is not necessary and all
consumed biodiesel will lead to substituted petrodiesel. The total amount of biodiesel
purchased and consumed by each customer is monitored in order to have a complete balance
of production and consumption.
Activities for which emission reductions are claimed
Emission reductions are only claimed from the displacement of petrodiesel by biodiesel for energy
purposes (heat and power generation and transport). By-products such as glycerol are handled in a
sustainable way but, even if, they are processed in biogas plants no emission reductions are claimed
for these activities. In addition, the avoided methane emissions due to the reduction of waste oil in
wastewater are not included.
B.3.
Description of the project boundary:
The project boundary is defined as required in the GS methodology. It encompasses the transportation
of the waste oil to the plant and the biodiesel from the plant to the end-user, the production site
(esterification, storage,...) and vehicles/ships and existing stationary combustion installations where
the biodiesel is consumed. According to the explanations in Section B.2., there is no facility where the
biodiesel is blended and therefore can’t be considered.
All relevant emission sources are considered:
o
Emissions from combustion of petrodiesel and biodiesel, taking into account the fossil
carbon contained in methanol used in biodiesel production;
o
Emissions from fuel and electricity consumed in the production of biodiesel;
o
Emissions from the transport of waste oil to the biodiesel plant;
o
Emissions from the transport of biodiesel to the end-user.
B.4.
Description of the baseline and its development as per the chosen methodology:
According to the GS methodology the baseline scenario is separately determined for the following
elements:
a) Production of fuels (P): What would have happened at the production level in the absence of
the project activity?
b) Consumption (C): Which fuel would have been consumed in the absence of the project activity?
c) Material (M): What would have happened to the material used as input for production of
biofuel in the absence of the project activity?
The assessment in Section B.5. shows that the situation in the absence of the project activity, the
baseline, would be the use of fossil fuel instead of biodiesel and that the waste oil would still be
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disposed together with solid waste, with wastewater or get to the informal economy where it is
cleaned and reused for cooking in small kitchens.
B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below those
that would have occurred in the absence of the registered micro-scale project activity:
In addition to the baseline requirements in the GS methodology, as listed in Section B.4. and in this
Section B.5., following CDM tools are used for the assessment of the baseline and additionality:
- Tool for the demonstration and assessment of additionality, Version 7.0
- Combined tool to identify the baseline scenario and demonstrate additionality, Version 5.0
The baseline and additionality have been assessed according to the following procedure.
a) Production of fuels (P)
At the production level following alternatives have been considered;
P1
Continuation of current practices with no investment in biodiesel production capacity;
P2
The project activity implemented without carbon revenues;
P3
Investments in any other alternative fuel replacing partially or totally the baseline fuel.
P1
There are no barriers to continue the current practice and not to invest in biodiesel production
capacity in Bali. As is shown in P2, biodiesel production from waste oil faces several significant
barriers and, even if neglecting them, it is far away from being economically attractive, the
more so without grants and carbon finance. In addition, fossil fuels for vehicles are still
subsidized in Indonesia. There are no regulations or laws that would require such an
investment in biofuel production.
P2
There is no other production of biodiesel from waste oil in Bali and the project participants are
not aware of a similar planned project. The financial plan of the project shows significant
financial and economical risks, which makes it very difficult to find investors or financial
support.
The project was only feasible as around 900’000 CHF investment and implementation cost have
been paid by grants and upfront payments for carbon credits, of which the latter will cover
around one third of the cost. The income from biodiesel sale shall cover the operating costs but
only if at least 1 m3 biodiesel per day is produced, which is very ambitious and can only be
ensured if enough hotels and restaurants participate in the program.
This financial analysis does not include political and technical barriers, which would make the
project even less attractive.
P3
There are no investments in other alternative fuel to substitute fossil fuels in Bali. The project
participants are not aware of any plans to start the production of an alternative fuel in Bali. The
main barrier is the lack of an alternative fuel, which could be financially and technically
attractive.
Therefore P2 and P3 as possible alternatives to the project activity can be neglected.
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b) Consumption (C)
Step 1 – Identify alternatives
At the consumption level following alternatives have been considered:
C1
C2
C3
C4
C5
Continuation of petrodiesel consumption;
Consumption of biodiesel from other producers;
Consumption of other single alternative fuel such as CNG or LPG, etc;
Consumption of a mix of above alternative fuels;
Consumption of biodiesel from the proposed project plant.
Step 2 – Eliminate alternatives that are not complying with laws and regulations
All of the alternatives C1 to C5 are complying with applicable laws and regulations.
Step 3 – Eliminate alternatives that face prohibitive barriers
C1
There are no barriers for the alternative C1.
C2
There is no biodiesel production in Bali known to the project participants. Therefore biodiesel
has to be imported from other parts of Indonesia or from other countries. Even though
biodiesel is produced in Indonesia, based on palm oil to a very large extent, it is mainly
exported to other countries such as those in the European Union. “Current growth of domestic
biodiesel consumption is slow and therefore, Indonesia’s biodiesel producers have a strong
incentive to export” (USDA, Jonn P Slette/Ibnu E Wiyono; « Indonesia Biofuels Annual 2012 »,
2012). The government has been trying to increase biodiesel consumption and production by
defining long-term road-maps and different initiatives and policies. However, “in 2009, national
biofuel consumption in Indonesia accounted for less than 1 percent. The target is to replace 20
percent of the national diesel consumption with biodiesel and 15 percent of all gasoline
consumption with bioethanol by 2025... Since the subsidy payments for biofuels depended on
rising or falling oil prices, most of the biofuel producers, either stopped or reduced their
production in 2008, because the costs couldn’t compete with the falling fossil oil prices after
the global financial crisis. At the beginning of 2009, there was reportedly only one biodiesel
production plant still operating.” (Jakarta Post Weekender; Friday 22.1.2010)
Even though it is theoretically possible to buy biodiesel from other provinces or from other
countries, it is very unlikely in reality because of a lack of accessibility, knowledge and higher
prices. “...and it shows that biodiesel has remained relatively expensive: biodiesel feedstock
costs have generally been higher than petroleum diesel prices.“ (Goto, S., M. Oguma, and N.
Chollacoop; EAS-ERIA Biodiesel Fuel Trade Handbook: 2010, 2010).
C3
The biodiesel from waste oil is used in existing stationary installations or vehicles/ships, which
have used diesel in the past. LPG and CNG are not common in Bali in general and would require
significant modifications of stationary plants and engines. There is no incentive at the moment
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to switch to new energy sources. This is even more a significant barrier as they are not readily
available as opposed to gasoline and diesel.
C4
The same argumentation as for the single alternative fuels in C3.
C5
As the production of biodiesel without carbon finance is already prevented by barriers shown
under P2 there cannot be any consumption from the specific project plant.
Therefore C2 to C5 as possible alternatives to the project activity can be neglected.
Step 4 – Compare economic attractiveness of remaining alternatives
Step 4 is not necessary as there is only one remaining alternative.
c)
Material (M)
Step 1 – Identify alternatives
For the material level following alternatives have been considered:
M1
M2
M3
M4
M5
Use of material for production of biofuels (by the project proponent or by others);
Use for material production of substances other than fuel;
Incineration of material for the purpose of energy recovery;
Incineration of material without energy recovery;
Disposal of material in an anaerobic or aerobic manner.
Step 2 – Eliminate alternatives that are not complying with laws and regulations
There are national regulations regarding waste disposal only since 2006. The practical realization has
to be defined and conducted by the local governments and is not far advanced up to now. A policy
research paper by the Kyoto and Wageningen University describes that “currently, the implementation
of MSW management in Indonesia does not refer to any specific guidelines or require any regulations
compliance since the policy formulation is still at infancy stage. The follow up of the laws that should
be translated into regional policies are still underway.” (Aprilia et al.; “Municipal Solid Waste
Management and Waste-To-Energy in Indonesia: A Policy Review”). The “State of Waste Management
in South East Asia” report by the UNEP shows that in Indonesia 60 percent of the solid waste is
disposed in open dumpings and 10 percent in landfills.
Even if regulations and guidelines exist, all scenarios M2 to M5 are existing practices in Bali and in
Indonesia. A study carried out by Caritas Switzerland in 2010 showed that there is no systematic way
to handle waste oil in Bali. Waste oil is filled in canisters and disposed together with solid waste, is
disposed with wastewater or get to the informal economy where it is cleaned and reused for cooking
in small kitchens.
Only M1 can be neglected as there is no other biofuel production in Bali and the proposed project
activity cannot be built and maintained without carbon finance according to the description P2 and C5.
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Baseline and Additionality Conclusion
The analysis of the three parts Production, Consumption and Material showed that the baseline is
defined by the scenarios P1, C1 and M2 to M5. Therefore, in the baseline:
- the biodiesel production plant is not built (without carbon finance) and the current situation of
diesel import remains the common practice.
- petrodiesel is consumed in the absence of the project, as it actually was before the project
started.
- the waste oil will still be disposed with solid waste, disposed in the river and as wastewater and
will be sold to the informal economy where it is used again for cooking in small kitchens and
food stalls, which is harmful for public health.
The different steps of the analysis already included barrier, investment and common practice analysis
requested by the Tool for the demonstration and assessment of additionality, Version 7.0. However,
the argumentation shall be shown according to the defined steps in the tool.
Step 1: Identification of alternatives to the project activity consistent with mandatory laws and
regulations
Pre-announcement and prior carbon consideration:
The project has never been publicly announced without carbon finance. The Previously Annuoncement
Statement has been provided to the validation entity.
Discussions between myclimate and Caritas regarding funding this project go back to 2010, the first
budget was generated and several meetings hold. The partner and buyer of the carbon credits Kuoni
Travel agreed to support the project and buy the carbon credits in October 2010. The project start can
be defined as in June 2012 when the purchase agreement for the plant was concluded. The installation
took place in January 2013.
See following timetable including all actions and milestones for GS application:
Activity
Project Plan / Design /
Contracts
Carbon Feasibility Assessment
and Due Diligence
Stakeholder Workshop: Main
announcement of the project
and the carbon revenues
MoU on cooperation between
myclimate, Caritas and Kuoni
Contract between myclimate,
Caritas and Kuoni
Installation of biofuel
production plant
Yayasan Lengis Hijau (YLH)
founded
Handover of the project
Date
Evidences/Milestones/Remarks
2010
2010-2011
16th Nov 2011
7th Feb 2012
12th Dec 2012
- Several Carbon Feasibility Discussions (meeting minutes)
- Carbon credits client found (including advance finance):
October 2010
- Initial Due Diligence Dec 2010
- Main Due Diligence March 2011
- Presentations, attendees list, agenda and minutes available
- Carbon credits and carbon revenues were clearly
announced as essential part of the project
- Memorandum of Understanding and meeting minutes
available
- Contract on purchase and sale of carbon credits, roles and
obligations of both parties.
Jan 2013
30st April 2013
26th July 2013
- YLH foundation certificate
- Z:\10_COP\1 COP List\1_Portfolio\7163 Biofuel Waste Oil
Bali Indonesia\Annexes 5-8.zip\Annexes 5-8\A7 YLH
founding cert
- Agreement of Cooperation available
14
management from Caritas to
YLH
myclimate started fast-track
pre-feasibility assessment
Start Crediting Period
GS Stakeholder Feedback
round initiated
GS Micro-scale Validation
initiated
17th Dec 2013
1st Jan 2014
13th March 2014
24th April 2014
- MoU between GS and myclimate
- See Section C.
- See Section D.
- GS Internal Validation start confirmed by email from Gold
Standard
Sub-step 1a: Define alternatives to the project:
In the absence of implementing the project as a GS VER project, there are several alternatives in terms
of consumption, production and waste oil use. All alternatives are listed in the baseline analysis above
and are credible scenarios.
Sub-step 1b. Consistency with mandatory laws and regulations:
All alternatives comply with all mandatory applicable legislation and regulations. In case of the waste
oil handling in the baseline, see also the explanations in Section C (Material) above.
Step 2. Investment analysis
Since a barrier analysis is conducted, step 2 is not required by methodology.
Step 3. Barrier analysis
This step is conducted in order to determine whether the proposed project activity faces barriers that:
a) prevent the implementation of this type of proposed project activity; and
b) do not prevent the implementation of at least one of the alternatives.
Sub-step 3a. Identify barriers that would prevent the implementation of the proposed project
Activity:
Investment/financial barrier:
In the baseline assessment above, different barriers are listed that prevent the implementation of the
project without carbon financing. Without carbon financing, and also other grants, the project was not
feasible. The financial risks of the project are very high. A financial break even, even with carbon
revenues, is expected only after several years and only if the ambitious goal of 1 m3 of produced
biodiesel per day can be reached. The investment cost and the costs arising in the pilot phase and start
phase are completely paid by upfront carbon revenues and grants from other foundations.
An investment report from KPMG show that investors are reluctant to do business in Indonesia, which
is even more the case for such projects with high risks and very low rentability:
“Indonesia continues to be a difficult country to do business, relative to Western or more developed
Asian markets. Whilst many of the country risks that prevailed in the 10 year period following the 1997
Asian Economic Crisis have now gone away or are manageable, regulatory risk around foreign
investment laws, underpinned by legal uncertainty from conflicting or unclear laws, regulations and
decrees as well as the need for ongoing government reforms to the judicial system are major factors
that need to be carefully considered in evaluating investment opportunities.” (Investing in Indonesia –
15
2013 KPMG p.23 (http://www.kpmg.com/Ca/en/External%20Documents/investing-in-indonesia2013.pdf)).
The report “Indonesia Biofuels Scoping Exercise” from Engineers against Poverty shows that “In
Indonesia, biofuels cannot yet compete with petroleum-based fuel. It is often assumed that
biodiesel can be competitive and profitable when international CPO prices are on par with crude oil.
However, in 2008, although crude oil prices rose dramatically to US $145 a barrel, biofuels were still
more expensive than petroleum-based fuels and required heavy government subsidies.” (Indonesia
Biofuels Scoping Exercise, 2012, http://www.odi.org/sites/odi.org.uk/files/odi-assets/publicationsopinion-files/8796.pdf)
On the other hand, there are no barriers to keep the pre-project situation of using petrodiesel and not
investing in biodiesel production plants in Bali. See also the description of barriers for baseline M2 to
M5 in the baseline assessment above.
Technological barrier:
There is no other production of biodiesel from waste oil in Bali and the project participants are not
aware of a similar planned project. The project technology was imported from Europe as this was
considered the best solution for the type of project as there was no comparable technology in the
project region. Even though Indonesia has the knowledge and the engineers to manage such projects,
they are not common, especially in such places as Bali and there is a lack of skilled and properly trained
labour to operate and maintain the plant. In Bali all the project staff had to be trained in health and
safety measures, plant operation and maintenance and quality control. In addition, the collection,
distribution of oil and biodiesel and the communication and legal work required completely new and
uncommon job profiles. The combination of these reasons and the investment and financial risks are
clear barriers preventing such a project without additional funds.
Sub-step 3 b. Show that the identified barriers would not prevent the implementation of at least one
of the alternatives (except the proposed project activity):
The barriers discussed above do not affect the alternative scenario P1, C1 and M2 to M5, which are the
continuation of the current situation as no investments and new technologies are required.
Step 4: Common practice analysis
The common practice analysis shall show the extent to which the proposed project type has already
diffused in the relevant sector and region.
As shown in the baseline analysis above, waste management and regulations on waste disposal are
very new in Indonesia and, if existing, not very developed so far. The waste situation in the baseline
reflects still common practice. In addition, to the knowledge of the project participants, there is no
other biodiesel production plant in Bali and hardly any based on waste oil in whole Indonesia. The
technology is considered as not being common practice, there is no diffusion in the relevant sector and
region noticeable.
Conclusion
16
For all the reasons in the baseline analysis and in the additionality assessment the project activity is
considered additional.
B.6
Emission reductions:
B.6.1. Explanation of methodological options or description of new proposed approach:
1) Emission Reduction
The emission reductions of the Project Activity are calculated as follows:
(1)
ERy = BEy - PEy - LEy
where:
ERy:
BEy:
PEy:
LEy:
Emission reductions during the year y (t CO2)
Baseline emissions during the year y (t CO2)
Project emissions during the year y (t CO2)
Leakage emissions during the year y (t CO2)
2) Baseline Emissions
(2)
BEy = BDy * NCVBD * EFCO2,PD
where:
BEy:
BDy:
NCVBD:
EFCO2,PD:
Baseline emissions during the year y (t CO2)
Most conservative value among production of biodiesel, consumption of biodiesel and
consumption of blended biodiesel times blending factor during the year y (l) (see also
explanations in Section B.7.1),
Net calorific value of biodiesel (GJ/l)
Carbon dioxide emission factor for petrodiesel (t CO2/GJ)
17
3) Project Emissions
(3)
PEy = PEfuel,y + PEelec,y + PEMeOH,y + PETr,y
where:
PEy:
PEfuel,y:
PEelec,y:
PEMeOH,y:
PETr,y:
3.1
Project emissions during the year y (t CO2)
Project emissions from combustion of fuels in biodiesel production (t CO2)
Project emissions from electricity consumption in the biodiesel plant in year y (t CO2)
Project emissions from combustion of fossil fuel derived methanol in the biodiesel ester
in year y (tCO2)
Project emissions from transport of waste oil and biodiesel in year y (t CO2)
Emissions from fossil fuel consumption
(4)
PEfuel,y = ∑i (FCBDP,i,y * NCVi * EFCO2,i)
where:
PEfuel,y:
FCBDP,i,y:
NCVi:
EFCO2,i:
3.2
Project emissions from combustion of fuels in biodiesel production (t CO2)
Fuel of type i consumed on-site for biodiesel production in year y (l)
Net calorific value of fuel type i (GJ/l)
Carbon dioxide emissions factor for fuel i (tCO2/GJ)
Emissions from electricity consumption
(5)
PEelec,y = ECy * EFCO2,elec
where:
PEelec,y:
ECy:
EFCO2,elec:
Project emissions from electricity consumption in the biodiesel plant in year y (t CO2)
Electricity consumption at project site in year y (kWh)
Emissions factor for grid electricity (tCO2/kWh)
18
3.3
Emissions from fossil carbon content in methanol
(6)
PEMeOH,y = MCMeOH,y * EFC,MeOH * 44 / 12
where:
PEMeOH,y:
MCMeOH,y:
EFC,MeOH:
44/12:
3.4
Project emissions from combustion of fossil fuel derived methanol in the biodiesel ester
in year y (tCO2)
Mass of methanol consumed in the biodiesel plant in year y (t)
Carbon emissions factor of methanol, based on molecular weight (tC/tMeOH) (=12/32)
Molecular weight factor to convert tonnes of carbon into tonnes of CO2 (tCO2/tC)
Transport emissions
Option 2 of the GS methodology has been chosen. In addition, as there is no blending station involved,
only the transport of waste oil is considered:
(7)
PETr,y = FCTr,y * EFTr
where:
PETr,y:
FCTr,y:
EFTr:
Project emissions from transport of waste oil in year y (t CO2)
Fuel consumption of transport vehicles in year y (l)
Carbon dioxide emissions factor for fuel (tCO2/l)
4) Leakage
(8)
LEy = LEMeOH,y + LEWOF,y
where:
LEy:
LEMeOH,y:
LEWOF,y:
Leakage emissions in year y (tCO2)
Leakage emissions associated with production of methanol in year y (tCO2)
Leakage emissions from displacement of existing utilization of waste oil in year y (tCO2)
19
4.1
Leakage from methanol production
(9)
LEMeOH,y = MCMeOH,y * 1.95
where:
LEMeOH,y:
MCMeOH,y:
1.95:
4.2
Leakage emissions associated with production of methanol in year y (tCO2)
Methanol consumed in the biodiesel plant in year y (t)
Leakage emissions from displacement of existing utilization of waste oil in year y (tCO2)
Leakage from the displacement of existing uses of waste oil
According to the GS methodology the project participants shall demonstrate for material scenarios M1,
M2 and M3 that the use of the waste oil does not result in increased fossil fuel consumption elsewhere.
As already written in Section B.5., Caritas Switzerland carried out a questioning in 2010, which showed
that there is no systematic way to handle waste oil in Bali. Waste oil is filled in canisters and disposed
together with solid waste, is disposed with wastewater or get to the informal economy where it is
cleaned and reused for cooking in small kitchens. But substituting all these alternatives by the project
activity will not lead to any increased fossil fuel consumption. The waste oil is collected only from the
food sector, where it is replaced with new cooking oil from biogenic origin. If the waste oil is sold to
the informal sector it is used in small kitchen, which will, in the project scenario, replace it by other
waste oil or new cooking oil from biogenic origin.
In addition, the GS methodology requests that applicants demonstrate that there is a surplus of waste
oil in the region, which is not currently recovered or used for any purpose where fossil fuel could be
used as an alternative. For the purpose of the methodology, surplus is defined as the quantity of
available waste oil produced in the region being at least 25% larger than the quantity of waste oil that
is recovered, including the project activity. In the project activity it is planned to recycle between 400
and 600 m3 of used cooking oil per year. The project participants estimate that they need around 100
hotels with an average of 130 rooms to achieve the specific amount. Only in the near vicinity of the
plant the amount of hotels might be 5 times higher let alone within the project boundaries. As the
biodiesel plant in the project activity is the only significant consumer of waste oil for energy purposes
the available waste oil will be much more than 25% larger than the quantity used for energy
generation or as feedstock.
LEWOF,y is therefore considered as neglectable.
20
B.6.2. Data and parameters that are available at validation:
Data / Parameter:
NCVPD
Data unit:
GJ/l
Description:
Net calorific value of petrodiesel
Source of data used:
2006 IPCC Guidelines for GHG Inventories
Value applied:
0.035776
Justification of the
choice of data or
description of
measurement
methods and
procedures actually
applied:
The value is used in equation (4) only in case monitoring is showing that
petrodiesel has been used in the project activity. In the ex-ante calculation it
will be neglected.
The IPCC NCV of 43 GJ/t was multiplied with the density of petrodiesel of
0.000832 t/l (Source: http://en.wikipedia.org/wiki/Diesel_fuel)
Any comment:
Data / Parameter:
EFCO2,PD
Data unit:
t CO2/GJ
Description:
Carbon dioxide emission factor for petrodiesel
2006 IPCC Guidelines for GHG Inventories
Value applied:
0.0741
choice of data or
description of
measurement
methods and
procedures actually
applied:
The value is used in the equations (3) and (4).
Any comment:
Data / Parameter:
EFCO2,elec
Data unit:
t CO2/kWh
21
Description:
Emission factor for grid electricity
DNA Indonesia
Value applied:
0.000823
choice of data or
description of
measurement
methods and
procedures actually
applied:
The value is used in the equation (5).
The Indonesian DNA has published updated emission factors for the JawaMadura-Bali (JAMALI) grid, which were calculated in 2013 using the latest
available data from 2011 and 2012.
(http://pasarkarbon.dnpi.go.id/web/index.php/dnacdm/read/24/updates-ongrid-electricity-emission-factors-calculated-in-year-2013.html). To be
conservative the higher value was taken.Furthermore, the electricity
consumption in the project will be marginal.
Any comment:
Data / Parameter:
EFC,MeOH
Data unit:
tC/tMeOH
Description:
Specific emission per tonne of produced methanol
Apple 1998: http://edj.net/sinor/SFR4-99art7.html and 2006 IPCC Guidelines
Value applied:
1.95
choice of data or
description of
measurement
methods and
procedures actually
applied:
Based on 30 GJ/t energy requirement and average of IPCC emissions factors for
natural gas and diesel oil.
The value is used in the equation (6).
Any comment:
Data / Parameter:
EFTr
Data unit:
t CO2/l
Description:
Emission factor for transport fuel
Value by the Federal Office for the Environment, Switzerland.
Value applied:
0.00263
This is the emission factor of fossil based diesel. Even if the biodiesel consumed
22
choice of data or
description of
measurement
methods and
procedures actually
applied:
by the trucks were from biogenic origin this assumption would be conservative.
Any comment:
Find the document “Anhang B: Emissionsfaktoren und Heizwerte” under:
www.bafu.admin.ch/publikationen/publikation/01725/index.html?lang=de
B.6.3 Ex-ante calculation of emission reductions:
The emission reductions are calculated by using the equations in Section B.6.1., the values in B.6.2 and
the values in the table below. The values in the table will be monitored during the crediting period and
are estimated by the project participant for this ex-ante calculation based on technical studies and
results from the start phase.
Parameters
Unit
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
BD
l
100000
200000
300000
350000
400000
450000
500000
500000
550000
600000
NCVBD
GJ/l
0.033
0.033
0.033
0.033
0.033
0.033
0.033
0.033
0.033
0.033
FCBDP,PD
l
0
0
0
0
0
0
0
0
0
0
EC
kWh
1089
2177
3266
3810
4355
4899
5443
5443
5988
6532
MCMeOH
t
12.5
25
37.5
43.7
50
56.2
62.5
62.5
68.7
75
FCTr
l
775
1100
1520
1735
1985
2190
2430
2430
2617
2855
23
B.6.4 Summary of the ex-ante estimation of emission reductions:
Year
Estimation of
project activity
emission (tCO2)
Estimation of
baseline
emissions (tCO2)
Estimation of
leakage (tCO2)
Estimation of
overall emission
reductions (tCO2)
2014
3.005
244.530
24.367
217
2015
4.826
489.060
48.734
435
2016
6.898
733.590
73.102
653
2017
7.947
855.855
85.285
762
2018
9.087
978.120
97.469
871
2019
10.110
1100.385
109.652
980
2020
11.224
1222.650
121.836
1089
2021
11.224
1222.650
121.836
1089
2022
12.200
1344.915
134.020
1198
2023
13.309
1467.180
146.203
1307
Total (tCO2)
91.497
9781.200
974.688
8601
B.7
Application of a monitoring methodology and description of the monitoring plan as per the
existing or new methodology applied to the micro-scale project activity:
B.7.1 Data and parameters monitored:
Data / Parameter:
Compliance of biodiesel production with national regulations
Data unit:
Various data units
Description:
Compliance of produced biodiesel with national regulation, biofuel properties
Source of data to be
used:
Measured
Description of
measurement
methods and
procedures to be
At least once per year an accredited laboratory will check and verify the
biodiesel according to quality standards from Indonesia.
24
applied, inc.
frequency:
QA/QC procedures
to be applied:
Any comment:
Data / Parameter:
MPGly,y
Data unit:
l
Description:
Amount of byproduct glycerol produced during plant operation
used:
Measured (volumetric)
Description of
measurement
methods and
procedures to be
applied, inc.
frequency:
The amount of glycerol produced in the plant will be measured by using
standardized containers (IBCs).
QA/QC procedures
to be applied:
Measured amounts to be crosschecked against mass balance of the biodiesel
production unit.
All quantity of produced glycerol will be recorded.
Any comment:
Data / Parameter:
MUGly,y
Data unit:
l
Description:
Amount of byproduct glycerol sold/handed over or used
used:
Sales data and internal records in case of use inside the plant
Description of
measurement
methods and
procedures to be
applied, inc.
frequency:
All produced glycerol will be recorded including sales data or internal records
or its mode of disposal.
QA/QC procedures
to be applied:
25
Any comment:
Data / Parameter:
BDy
Data unit:
l
Description:
Quantity of sold biodiesel from waste oil
used:
According to Formula (1) in the methodology, the most conservative value
among production of biodiesel, consumption of biodiesel and consumption of
blended biodiesel times blending factor must be taken.
As there is no blending station and therefore no blending operation in the
project activity, the fraction of biodiesel in the blended biodiesel (f%) is 1. In
addition, as the sold biodiesel is always more conservative than the produced,
the sold biodiesel is monitored and included in the calculation of emission
reductions.
For crosschecking, the amount of biodiesel produced by the operator is
measured by a flow meter and by using standardized canisters. The biodiesel
produced is recorded.
The biodiesel sold to customers during a specific time period will be measured
and recorded. The biodiesel is filled in containers (IBCs) with a standardized
and fix volume.
Both the biodiesel stock and the biodiesel sold is monitored continuously and
recorded in specific tables. The sold biodiesel is also confirmed by the receipt
from the customers.
Description of
measurement
methods and
procedures to be
applied, inc.
frequency:
All sold biodiesel is metered by using standardized canisters and is confirmed
by the receipt from the customers. In addition the consistency is checked by
comparing with the amount of produced biodiesel, which is measured with a
flow-meter and is recorded in databases.
QA/QC procedures
to be applied:
Cross check production and consumption data.
Any comment:
Data / Parameter:
NCVBD
Data unit:
GJ/t
Description:
Net calorific value of biodiesel.
26
used:
Laboratory analysis.
Description of
measurement
methods and
procedures to be
applied, inc.
frequency:
Measured according to relevant national or international standards regulating
determination of NCV by calibrated equipment.
QA/QC procedures
to be applied:
Check consistency of measurements and local / national data with default
values by the IPCC. If the values differ significantly from IPCC default values,
possibly collect additional information or conduct measurements.
Annually.
Any comment:
Data / Parameter:
FCBDP,i,y
Data unit:
l
Description:
Fuel consumption of fuel type i for biodiesel production
used:
The quantity of fuel consumed for the production of biodiesel is monitored
and recorded by the operator.
Description of
measurement
methods and
procedures to be
applied, inc.
frequency:
Even though, no significant fuel consumption is expected all consumed fuel is
recorded.
QA/QC procedures
to be applied:
Crosscheck with fuel purchase data.
Any comment:
Data / Parameter:
ECy
Data unit:
kWh
Description:
Electricity consumption at project site
used:
Electricity meter.
Description of
measurement
Use calibrated measurement equipment that is used by the grid electricity
27
methods and
procedures to be
applied, inc.
frequency:
provider.
QA/QC procedures
to be applied:
Can be confirmed with the electricity sale receipts.
Monitored continuously.
Any comment:
Data / Parameter:
WOFtr,y
Data unit:
l
Description:
Waste oil used as biodiesel feedstock
used:
The amount of waste oil during a specific time period will be recorded. The
waste oil is filled in canisters with a standardized and fixed volume.
Description of
measurement
methods and
procedures to be
applied, inc.
frequency:
The waste oil is monitored continuously and recorded in specific tables. The
waste oil quantity is confirmed by a receiving note signed by the waste oil
provider.
QA/QC procedures
to be applied:
production unit.
Any comment:
Data / Parameter:
FCTr,y
Data unit:
l
Description:
Fuel consumption of transport vehicles
used:
The amount of fuel consumed by the cars is monitored continuously and
recorded in specific data tables.
Description of
measurement
methods and
procedures to be
applied, inc.
The amount of all fuel consumption is measured and confirmed by the the
receipts from petrol stations and the driver’s logbooks.
28
frequency:
QA/QC procedures
to be applied:
The consumption is confirmed by receipts of the purchase.
Any comment:
Data / Parameter:
MCMeOH,y
Data unit:
l
Description:
Methanol consumed in the biodiesel plant
used:
Measurements
Description of
measurement
methods and
procedures to be
applied, inc.
frequency:
The volumes of methanol and methylate added are measured by flow meters.
QA/QC procedures
to be applied:
production unit.
Any comment:
Data / Parameter:
MCCat,y
Data unit:
l
Description:
Potassium methylate consumed in the biodiesel plant
used:
Measurements
Description of
measurement
methods and
procedures to be
applied, inc.
frequency:
The volumes of methylate added are measured by flow meters.
QA/QC procedures
to be applied:
production unit.
Any comment:
29
B.7.2 Description of the monitoring plan:
The biodiesel is produced according to all legal regulations in Indonesia, got all necessary official
confirmations and therefore apply all national standards on QA/AC.
At least one person from Lengis Hijau is appointed as responsible person for monitoring data collection
and quality control. He also ensures that the monitoring procedures are established and that they
meet the requirements as specified in the monitoring plan. The quality manual shall include a section
describing the elements of the monitoring procedures and how to assure and control their quality.
According to the GS methodology a mass balance serves as a QA/QC instrument to crosscheck results
of monitoring parameters. The following parameters shall be considered according to the
methodology:
GS methodology
In the project
Explanations
Amounts of waste oil
purchased and processed
Monitored: WOFtr,y
See Section B.7.1
Amounts of catalysts
purchased, processed and
recovered
Monitored: MCCat,y
See Section B.7.1
Amounts of methanol
purchased and processed
Monitored: MCMEOH,y
See Section B.7.1
Amounts of glycerol
produced and incinerated
and/or sold for utilization
Monitored: MPGly,y
See Section B.7.1
Amounts of blended biodiesel Sold biodiesel monitored: BDy
delivered to consumers and
consumed.
See Section B.7.1
The mass balance therefore will be:
WOFtr,y + MCCat,y + MPGly,y = MPGly,y + BDy
As can be seen in Section B.7.1 both the collected waste oil and the produced is measured and
recorded.
Waste Oil Collection:
The waste oil is collected by the operator or is brought to the plant by the suppliers. Following
information are recorded and confirmed by the supplier:
-
Name and address of the waste oil supplier
30
-
Amount of waste oil in l
Purchase price
Biodiesel Sale:
The biodiesel is sold to the different consumers. Following information are recorded and confirmed by
the consumers:
-
Name and address of the consumer
Amount of biodiesel in l
Purchase price
Information on the use of biodiesel
Confirmation that the legal rights on the emission reductions go to the operator
Applied industry standards and Standard Operation Procedures
The documents on Standard Operation Procedures containing all processes and technical manuals in
order to meet all QA/QC requirements of Indonesia. The produced biodiesel has to fulfill the national
quality standard for biodiesel (SNI 7182:2012). Samples of the produced Biodiesel are regularly
analyzed in accordance with this standard In addition, the requirements of the biodiesel plant
manufacture Green Fuel for operation of the plant are considered and included in the Standard
Operation Procedure. The plant layout has been developed together with Green Fuel in accordance
with international safety and quality requirements. Among others the following standards are applied:
EN 14214 and ASTM D6751 for the produced Biodiesel Quality, the EC-Machinery Directive (Directive
89/392/EEC - Machinery) for technical rules and the Directive 94/9/EC–ATEX as regulation on Explosive
Atmospheres. Furthermore valid technical rules for pressure tanks, piping, combustible liquids and
hazardous materials as well as basic rules for the assembly installation of the plant are applied. The
monitoring plan is a separate addendum to the Standard Operation Procedures.
B.8
Date of completion of the application of the existing or new baseline and monitoring
methodology and name of the responsible person(s)/entity(ies)
Date of completion: 13/11/2014
Responsible person(s)/entity(ies): Foundation myclimate – The Climate Protection Partnership (see
contact details in Annex 1)
31
SECTION C.
C.1
Duration of the project activity / crediting period
Duration of the project activity:
C.1.1. Starting date of the project activity:
Even though the project has been planned since January 2011 and a large workshop has been
organized by Caritas Switzerland together with Kuoni, myclimate and the Balinese environmental
authority in November 2011, the project start can be defined as in June 2012 when the purchase
agreement for the plant was concluded. The installation took place in January 2013.
C.1.2. Expected operational lifetime of the project activity:
According to the technical specification and the technical expert the lifetime should be at least 20
years.
C.2
Choice of the crediting period and related information:
C.2.1. Renewable crediting period
C.2.1.1.
Starting date of the first crediting period:
C.2.1.2.
Length of the first crediting period:
C.2.2. Fixed crediting period:
C.2.2.1.
Starting date:
01/01/2014 (Lengis Hijau was founded in April 2013 and took over the management of the plant in July
2013. However, the first half year until end of 2014 is considered as start phase)
C.2.2.2.
Length:
10 years
32
SECTION D.
D.1.
Stakeholders’ comments
Brief description how comments by local stakeholders have been invited and compiled:
As the project registration at the Gold Standard will be after the project start the project seeks
retroactive registration and will apply to the Gold Standard for a pre-feasibility assessment. Hence, no
stakeholder consultation according to the GS guidelines has been carried out.
However, the project participants have already carried out a lot of activities to address all relevant
stakeholders. It has always been a clear objective to involve stakeholders in the project planning as
soon as possible.
There were several meetings and exchanges of ideas with relevant stakeholders. As the main event
was the workshop on the 16th of November 2011, arranged by Caritas Switzerland together with Kuoni
Travel Ltd. and myclimate, it shall be described in the following. It was held at the Meeting Room of
the governor office in Denpasar, the location already shows the broad support from the politics.
Workshop 15/11/2011
The workshop, which was arranged by Caritas Switzerland, was held at the Meeting Room of Governor
Office (Wiswasabha Hall) in Renon, Denpasar. From 250 invited hotels and restaurants about 100
participated in the event. More than 250 people were invited, 150 participants took part in the
workshop. They represented the government, hotels and restaurants (which are the waste oil suppliers
and biodiesel buyers), NGOs, media representatives.
The invitation for the workshop contained a summary of the project and the agenda. Where necessary
the invitees were also contacted or re-contacted by telephone to underline the importance of their
participation. In the following table the stakeholder invitation and participation is compared with the
requirements for the Local Stakeholder Consultation of the Gold Standard according to the Toolkit.
33
The workshop was held in Balinese and English presentations were translated. The project activity was
explained to the participants in terms of technical implementation, health and sustainability impacts,
carbon revenues and certification, influence on the touristic sector, governmental support and
regulations. All the different aspects were presented and represented by the speakers and were
discussed in the discussion at the end of the meeting.
All presentations, reports, minutes and pictures are available and can be requested from the project
participants.
A broadcasted program in the television on the workshop can be watched here:
http://www.youtube.com/watch?v=O-F7wgnYaGQ
D.2.
Summary of the comments received:
List of the attendees at the workshop:
34
No
Name
1 Ketut E Paranta
2 Ngurah Gde
3 Putu Wiadyana
4 Ratnasari
5 Peter Christian
6 Wira
7 Bagus Made Parwata
8 Made Sulasa Jaya
9 IB Purna Sidemen
10 Wedastra Putra
11 I Ketut Windra
12 I Ketut Tresna
Position
Wakil ketua
Direktur Utama
Reporter
GM
Business Development
Journalist
Ketua umum
Ex Direktur
Dir Eksekutif
Staff
Staff UPL
Sekretaris
Company/Organization
ASITA Bali
Alam TV
Alam TV
Asiantrails/KUONI
Asiantrails/KUONI
Bali Post
BPD ICA Bali
BPC PHRI Badung
BPD PHRI Bali
BTDC
BTDC
Gahawisri
Kasi Pengkajian Data
Disperindag Prov. Bali
I G Ag Suwartini
14
15 W Swenten
16 Endang Kusumawati
17 Yogianti
Kabid
Disperindag Badung
Ni made Sirammini
18
19 I N Sukerena
20 IGN Gurantaja
Staff
Sri Harwati
21
22 Arya
23 I Wayan Arka
24 AA Sudharsana
25 AA
26 Dewa Wisrawan
27 Diyah Ayu
28 Made Aripta Wibawa
29 Teddy B
Kasi Akomodasi
13
Ni Made Dewiratni
Staff
Ka BLH Kota Denpasar
staff
QA
Office Manager
Agus Putra
32
AHRM
37 I B Arsana
38 Sujati
39 Sajab Mustika
40 Sukasada
41 Nyoman Sukiawati
42 Candra
43 Gatot S
44 Budidarma
45 Aviadi Purnomo
46 IB Wira
47 Mikael Yanei
GM
EAM
Juliwanto
48
49 Kadek Rohita
50 Gusti Oka S
51 Ing Ardhana
52 N. Sumardana
53 Eka Parwata
54 Nungki S
55 Rustamaya
56 Alex Wiwoho
57 Hery Andian
58 Joseph Karundeng
59 Felicia
F&B Association
60 Wiarsa
61 Trisna Ari W
Environment Manager
63
SOME
FBM
GA
Acc
Manager
EAM
Operation Manager
E. AM
HRD
Supervisor
Spa Manager
Asst CE
Property Op Manager
EAM
GM
QA Manager
I Ketut …
HRD
A. Razak
HRM
64 Suastama
65 Wayan Sukaratu
66 Bobby Kurniawan
67 Aristhana
68 K Mudi
69 I Wayan Buda
70 Gede Gunawan
Dipada Denpasar
BLH Kota Denpasar
BLH Kota Denpasar
BLH kab Gianyar
Bappeda
JAS Catering
Bali Green Community
Bali Focus
Eco Bali Recycling
General Manager
Bagus Surya
33
34 M Rasyidi
35 NW Handayani
36 Adnyana
62
Diparda Badung
Bali Focus
30
31 Ketut Mertaadi
I Gusti Made
Diperindag Gianyar
Dispar Prov. Bali
Dinas Kesehatan Prov Bali
Dinas Kesehatan Kota
Denpasar
Dinas Kesehatan Kab Gianyar
Dinas Kesehatan Kab Badung
CE
Operation Manager
Property Op Manager
ACE
Chief Engineering
Hotel Ratna Kuta
Sanur Beach Hotel Bali
Melia Bali Villas & Spa Resort
Peneeda View Hotel
Inna Shindu
Parigata Hotel Sanur (4
outlests)
The Grand Santhi
Griya Santrian, Sanur
Inna Bali
Sanur Paradise Plaza
Sativa Sanur Cottage
Sativa Sanur Cottage
Hotel Nikki
Tandjung Sari Hotel
Gazebo Cottages
Bali Hyatt
Bali Dynasty Resort
Adi Dharma
Rama Beach Resort & Villa
Inna Putri Hotel Bali
The Flora Kuta Bali
The Bale Hotel
HARRIS RIVERVIEW
HARRIS RIVERVIEW
Conrad Bali
Alam Kul-Kul
The Losari Hotel & Villa Bali
Padma Resort
Four Season Resort Bali,
Jimbaran & Four Season
Sayan
The vira bali Hotel
Wina Holiday Villa
Ramada Resort Camakila
Santika Premiere Beach
Resort -Bali
Adi Jaya Hotel
The Bali Khama
Novotel Nusa Dua
The Legian Bali
Jayakarta Hotel
The Royal Santrian
35
71 Agung Mahayana
72 Ketut sunarta
73 K Lias W
74 Maik K
75 W Kalen
76 Virda
77 M
78 Pande Kt Budiasa
79 I B Putra
80 Michele Greggio
81 Ria
Asst HRM
Asst HRM
GM
Reservation Manager
SMM
GM
CE
Staff
Staff
Executice Chef
FC
The Royal Santrian
Club Bali Mirage
Dhyana Pura
Blue Point Bay Villas
Blue Point Bay Villas
Vilarisi Hotel
Harris Resort Kuta & Spa
The Royal Seminyak Bali
The Royal Seminyak Bali
Jimbaran Puri Bali
Bali Mandira
Agung Rainata
82
83 Darmika
84 Kristanto
85 Made Subiata
86 I Nengah Parwiasa
87 K
88 Benny M
89 IGN Adi Putra
90 Made Aryana
91 R Johan
92 Ketut Suarjana
93 IGB Wiriadi
94 Sigit Sugiyanto
95 Agung Yoga
96 Ambara
97 Darma KS
98 Tiorida Hart
99 I Putu Budiarta
C/E
100 Sunset Hotel
FBM
Resident manager
RDM
Environment Manager
HRM
CE
HRD
FBM
General Manager
FC
Chef
FBM
CIC
HRD
HRD
Executive Office
F & B Coordinator
Padma Resort
Goodway Hotel
Conrad Bali
Nusa Dua Beach Hotel
Jimbaran Puri Bali
Alila Villas Soori
Kuta Paradiso Hotel
The Oberoi Bali
Banyan Tree Ungasan
Barong Bali Hotel
Tugu Hotel
Mercure Kuta Bali
MELIA BENOA
Kuta Station Hotel
Adi Dharma
The Westin Resort Nusa Dua
The Lokha Legian
Made Suardana
100
101 A.A Istri Listasari
102 I.B
103 I Made Suriana
104 M M …?
105 Agus S
106 Andy
107 I KG Sukardha
108 Muliarta
109 I Nyoman Sudana
110 IK Sirna
PHMM
111 Nurpujiwati
S&M Manager
112 Maria Junita
113 Darmawan
Direktur
GM
Dewa Putra
114
115 Gede Parta
116 I Wayan Darmayasa
117 Farid Chamril
118 Muri
Personel
CE
RDM
CE
DOE
MPM
CE
General Manager
Risata Bali Resort & Spa
Dewi Sri
J Boutique Resort
J Boutique Resort
NRG Technology
Novotel Bali Benoa
Hard Rock Hotel
Inna Kuta beach
Inna Kuta Beach
Bali Tropic Resort & Spa
The Patra bali
Palm Beach International
Hotel
Palm Beach International
Hotel
Kamandalu
Kupu Kupu Barong Villas &
Tree Spa
The Royal Pita Maha
Pitamaha Resort and Spa
Champlung Sari
Bali Safari and Marine Park
Widia I Made
119
120 I Made Suartika
121 I Ketut Tusan Aryasa
122 Bambang Budi W
123 Juliana MS
124 W. Widono
125 Wayan Sukaratu
HRM
126 Wahyu R
127 Nani Darmawati
128 Donny
129 W Suwarta
130 Nyoman Ronald
131 Komang Sri
132 Anggia I
133 Mulyawan
134 I Wayan Budiarta
135 I Made Suadnyana
136 Virgorito
137 Uday Ahmad
138 Rai Sentani
139 Gde Darmaya
140 K. Trisnawati
141 K. Sutini
Staff office
HRM
Restaurant Manager
Accounting
Operation Manager
ACE
HRD
Personel
Accounting
Operation Manager
Como Shambala Estate
Como Shambala Estate
Ubud Hanging Garden
Puri Wulandari
Puri Wulandari
Elephant Safari Park
Imperial XIFU Restaurant
(Fave Hotel)
Imperial XIFU Restaurant (Fave Hotel)
Mang Engking
Restaurant Hongkong Garden
Ikan Bakar Cianjur
Planet Hollywood
Planet Hollywood
Made's Warung, Kuta
Bubba Gump
Rumah Bali
Pawon Pasundan
IFIORI
Bubba Gump
Nero Bali Restaurant
The Tree
The Tree
142 Made Dana
143 Wayan Toya A
144 ?
145 IB Gunasan
GM Rest
Tropical Bali Group
Marketing
Manager
The Pond Restaurant
The Pond Restaurant
Casa Luna Ubud
146 I Nyoman Suardana
147 Hendri Kurniawan
148 Ida Bagus B
149 I Gede Sudarsana
Manager
Batan Waru Ubud
Staff
Anantara ULUWATU
BLH Bali
Disperindag Denpasar
Ex Hr
HRD
HRD (UHA member)
FBM
Humas
Manager
Staff restaurant
Kitchen manager
Amandari
36
Minutes of the meeting:
37
38
39
40
41
42
43
D.3. Report on how due account was taken of any comments received and on measures taken to
address concerns raised:
The results of discussions with experts and stakeholders have been leading to continuous
improvements in the project design. The concerns regarding the production plant and its
environmental impact were taken into account when the location of the plant was decided and lead to
the initiative to find the best-possible solution for an oil quality control and to handle the effluents.
Additionally it was asked why the waste oil is not paid for and if this could be an option. Indeed, after
the meeting this point was discussed and the initial approach was changed. The waste oil suppliers
shall also be paid in the project activity what is also in line with the world wide development.
D.4.
Report on the Continuous input / grievance mechanism:
Different methods of continuous input and grievance expression shall be established.
Method Chosen (include all known Justification
details e.g. location of book, phone,
number, identity of mediator)
Continuous Input /
Grievance
Expression Process
Book
Location: Production site
Address:
Jl. Cargo, Denpasar
A comment book will be made available
at the project site and stakeholders will
be informed about this option. This log
book will mainly be a possibility for
neighbors to address their concerns and
complaints as they often lack internet
access (compared to other stakeholders
such as hotels and authorities).
Therefore they shall be separately
personally informed about the book.
The format will be according to the GS
requirements. The entries will be
checked regularly.
Telephone access
Internet/email
access
+62 361 8443217
Yayasan Lengis Hijau
Caritas Switzerland
Stakeholder can reach the project
responsible at the project site.
All comments received by phone are
entered in a book in the same way as in
the Grievance Expression Process Book,
with date, comment, action requested
and project response.
All comments received by email are
entered in a book in the same way as in
the Grievance Expression Process Book,
with date, comment, action requested
44
and project response.
Emails to Lengis Hijau and Caritas
myclimate
thomas.finsterwald@myclimate.org Switzerland can be in English, Balinese or
Indonesian, emails to myclimate and The
Gold Standard in English.
The Gold Standard
annyta@cdmgoldstandard.org
Nominated
Independent
Mediator (optional)
Not chosen
All issues identified during the crediting period through any of the Methods shall have a mitigation
measure in place that should be added to the monitoring plan.
D.5.
Report on stakeholder consultation feedback round:
Stakeholders were addressed in two phases;
1. Previous consultation
As described in detail under D.1 and D.2 among other activities, a comprehensive workshop arranged
by Caritas Switzerland together with Kuoni Travel Ltd. and myclimate was held on the 16th of
November 2011.
2. Stakeholder Feedback Round
The Stakeholder Feedback Round was initiated from the 13th of March 2014. The PDD, the Appraisal
Report and the Feedback Form were made publicly available for more than 60 days. The invitation for
the SFR was sent to all GS Supporters including the call with the non-technical summary in English and
the feedback form. The DNA of Indonesia was informed about the project on the 13 th of March 2014.
All relevant stakeholders in Bali were contacted by YLH and were invited to give their feedback and
comments to the project. They received the call with the non-technical summary and the feedback
form in Indonesian or in English.
The following stakeholders have been contacted directly in the course of the feedback round:
Name
Institution
Anantara Seminyak
Hotel
Padma Resort Hotel
Hotel
Bali Mandira
Hotel
Melia Benoa
Hotel
Samaya Benoa
Hotel
Aston Denpasar
Hotel
45
BLH Denpasar
Environmental Authority of Denpasar District
BLH Badung
Environmental Authority of Badung District
Bappeda Denpasar
Regional Authority for Planning and Development of
Denpasar District
Bappeda Badung
Badung District
BLH Propinsi Bali
Environmental Authority of Bali Province
Bappeda Propinsi Bali
Bali Province
Bali Fokus Foundation
Environmental NGO from Bali
Mr. Imam Paryanto, BPPT
National Agency for Assessment and Application of
Technology
Prof. Haruhiro Fujita
Niigata University for International and Information
Studies, Japan
Further, all buyers of Biodiesel are actively invited to give their feedback as a routine by adding the
following on their receipt/confirmation: As always, YLH would love to hear input and feedback from
all partners and stakeholders. Should you and/or hotel management and staff ever have any
questions, problems about using the service or ideas on ways we can improve, please feel free to call
upon our team.
None of the users have made any critical comments on the project to this point.
The project participants received only positive feedback from policy makers who support the project.
Several supporting letters have been received from different regional and national authorities.
As part of the stakeholder feedback round the following comments from four of the contacted
Stakeholders were received:
There is overall consensus that the project is good for the region, reduces environmental pollution and
is a source of economic activity. Prof. Fujita and Mr. Paryanto both mention the huge potential of the
project as it is located in the tourism center of Indonesia. Mr. Nurisa of the Padma Resort Bali
recommends intensifying waste cooking oil collection. Mr. Paryanto further mentions the potential to
develop other waste utilization activities, such as paper waste, plastic etc. Prof. Fujita recommends
raising public awareness by school education to stop hotels from smuggling waste cooking oil. He also
suggests collection of waste cooking oil from households via schools.
Concerns raised:
Both Mr. Brahmanca, Bali Fokus Foundation, as well as Mr. Nurisa, Padma Resort Bali, do not see any
issues that need to be addressed.
Concerns from the other stakeholders are summarized and responded in the following table.
Stakeholder
Concern raised
Response
Prof. Haruhiro
Missing social and
The current budget restrictions of the
46
Fujita
educational activities
as well as
commitment to local
people
project do not allow for more social and
educational activities that are not directly
linked to the project activity. The project
already contains several social benefits such
as the improvement of people’s health and
shall lead to higher sensitivity for waste and
health problems in Indonesia and to
environmental protection. The project
participants and YLH established a social
enterprise that will not focus on financial
profitability but on social and
environmental goals. There is a clear goal to
intensify the activities, to reach more
people and to include additional social
initiatives.
Prof. Haruhiro
Fujita
No legislative plan
and action
collaborating with the
city council of
Densapar to stop the
waste cooking oil
smuggling
By initiating the project, Caritas and YLH
raised awareness for a problem that was
barely on the political agenda so far. The
project participants expect that the project
leads to broader discussions about waste
management and waste oil disposal and will
put pressure on the local and national
government to also put legislative measures
in place. In the course of the stakeholder
activities, many authorities could be
confronted with the existing situation.
These discussions will not end with the start
of the project but will be continued. The will
for a policy change seems to be indicated by
the support of the project by different
regional and national authorities.
Prof. Haruhiro
Fujita
Lacking scientific
evidence shown on
GHG reduction as well
as health risks by
waste cooking oil
The PDD shows how greenhouse gases are
reduced by the project. GS certification
requires strict calculations and monitoring
of greenhouse gas reductions. The waste oil
is from biogenic origin and will substitute
fossil based fuels. The project participants
are not aware of any scientific analysis that
questions the health risk of cleansed waste
oil. As can be seen in the PDD and in the
presentation of the workshop in 2011, Dr. I
Wayan Weta from the Nutrition Unit of
Sanglah Hospital and Lecturer at Medical
Faculty of Udayana University,Denpasar
demonstrates how harmful waste oil is to
47
human health.
Mr. Imam
Paryanto, BPPT
Lacking assistance of a
technical biodiesel
expert, therefore the
quality of the
biodiesel is not
guaranteed.
Experts from Greenfuel Ltd, an international
producer of biodiesel processing plants,
assisted the setting up of the plant and the
training of personnel. The monitoring as
described in the PDD and YLH procedures
defines strict QA/QC procedures to
guarantee a high standard of the biodiesel
according to European and Indonesian
biodiesel standards.
Mr. Imam
Paryanto, BPPT
Technology and
equipment was
imported, despite the
technology already
being available in
Indonesia.
The technology and equipment imported by
the project participants represents the
newest standard of technology and
matched best with the requirements of the
project. Locally built small scale systems are
not able to produce biodiesel which fulfills
international biodiesel quality standards.
48
Annex 1
CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY
Organization:
Foundation myclimate-The Climate Protection Partnership
Street/P.O.Box:
Sternenstrasse 12
Building:
City:
Zurich
State/Region:
Zurich
Postfix/ZIP:
8002
Country:
Switzerland
Telephone:
+41 44 500 43 50
FAX:
+41 44 500 43 51
E-Mail:
thomas.finsterwald@myclimate.org
URL:
myclimate.org
Represented by:
Thomas Finsterwald
Title:
Deputy Head of Department
Salutation:
Mr.
Last Name:
Finsterwald
Middle Name:
First Name:
Thomas
Department:
Carbon Offset Projects
Mobile:
Direct FAX:
Direct tel:
Personal E-Mail:
thomas.finsterwald@myclimate.org
49
Annex 2 - Information regarding Public Funding
An Official Development Assistance Declaration as requested by the Gold Standard guidelines will be
provided and attached here.
50
Annex 3 – Technical Information
51

Project Design Document

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