PDD_Varela Hermanos V1 0
Transcription
PDD_Varela Hermanos V1 0
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-SSC (CDM SSC-PDD) Version 03 - in effect as of: 22 December 2006 CONTENTS A. General description of the small scale project activity B. Application of a baseline and monitoring methodology C. Duration of the project activity / crediting period D. Environmental impacts E. Stakeholders’ comments Annexes Annex 1: Contact information on participants in the proposed small scale project activity Annex 2: Information regarding public funding fun Annex 3: Baseline information Annex 4: Monitoring Information Annex 5: Tables and Figures. 1 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Revision history of this document Version Number 01 02 03 Date Description and reason of revision 21 January 2003 8 July 2005 Initial adoption 22 December 2006 •The Board agreed to revise the CDM SSC PDD to reflect guidance and clarifications provided by the Board since version 01 of this document. •As a consequence, the guidelines for completing CDM SSC PDD have been revised accordingly to version 2. The latest lates version can be found at <http://cdm.unfccc.int/Reference/Documents http://cdm.unfccc.int/Reference/Documents>. •The Board agreed to revise the CDM project design document for small-scale activities (CDM-SSC-PDD), PDD), taking into account CDM-PDD and CDM-NM. 2 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board SECTION A. General description of small-scale project activity A.1 Title of the small-scale scale project activity: Varela Hermanos. S.A.- Methane recovery & energy generation project Version 1.0 14/11/2011 A.2. Description of the small-scale project activity: The proposed project activity will be carried out in the Hacienda San Isidro distillery of Varela Hermanos. S.A., which is near the Pesé village, village province of Herrera in Panamá. Its main purpose is to avoid avoi methane emissions from anaerobic degradation of vinasse that is produced as a result of the distillery process. process With a current ent annual production higher than 8 M litres of ethyl alcohol from sugar cane juice and molasses, molasses Varela Hermanos generates as a result of its production process, up to 12.65 litres of vinasse per litre of alcohol produced. This vinasse is sent into open anaerobic lagoons before it is finally irrigated on nearby plantations. The vinasse is a spent wash with an extremely high pollution on load. Indeed, given the use of molasses as a source of raw material for alcohol production, itss chemical oxygen demand (COD) is close to 59,000 mg/l resulting in high methane (CH4) emissions which are currently released to the atmosphere. atmosphere Through the CDM project, Varela Hermanos H seeks to replace the current wastewater treatment trea by the installation of a low rate anaerobic digestion system. This digestion system will have ha a COD removal efficiency of 65%. Afterwards, the spent-wash will be applied as fert-irrigation irrigation to the nearby agricultural crop lands. The project activity will generate 12,696 Nm3 of biogas per day during zafra (harvest) whereas during nonzafra (non-harvest),, this amount will raise to 21,273 21 Nm3/day. The biogas will be filtered and then used to satisfy the distillery’s energy requirements. During zafra season the biogas will be used to generate electricity, which will be used on-site, on the surplus of electricity will be fed into the national grid. Out of the zafra season, the biogas will wi replace 100% of the current use of heavy fuel oil,, and the excess of electricity will also be exported into to the grid. The project activity will reduce GHG emissions in two ways, first by avoiding methane emissions from anaerobic lagoons and second, by displacing energy generation from the use of heavy fuel oil and fossil fuel based grid-connected connected power plants. plants As a result, it is expected to provide yearly average emissions reductions of 33,331 tCO2e and 233,320 tCO2e over the first seven-year crediting period. Main sustainable development benefits In addition to emission reductions, the contribution to the host country’s sustainable development is significant in terms of environmental and technical well-being. well Environmental impacts The project will contibute ontibute to the preservation of natural resources and the environment. enviro Specifically the project: • Reduces the unpleasant odour from the existing open lagoons, lag • Conserves non-renewable renewable natural resources (fossil fuels) by reducing on-site on fossil fuel consumption and by displacing cing fossil fuel based grid electricity generation, and 3 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board • Reduces educes other local air pollutants such as CO, SOx, PM and NOx associated with the burning of fuel oil. Social impacts The social development benefits that arise from the implementation implementation of the proposed project activity include: • A contribution to increase the stability and security of the local power supply, which in turn supports support an improved standard of living; • The creation of new local jobs for the construction and the operation of the plant; • The impovement of technical knowledge and skills of the plant operators and, • The closure of the gap between the supply and the demand of electrical power at the national level. Economic impacts The project activity provides the following benefits in terms of promoting sustainable economic development: • Stimulation of employment/earning opportunities for the local people by creating new local jobs; • Support the increase of power/energy security to the Panamenian grid; • A decrease of the outflow of foreign foreign exchange capital by reducing the import of fossil fuels; fuels and, • The catering for the growing power demand that is being forecast for Panama. Panama Technological impacts The technology implementation will be developed by UEM Group, an international multi-disciplined multi environmental services company specialized in providing turnkey design and construction services in water and wastewater treatment for industries and municipalities. It has installed over 40 anaerobic wastewater treatment systems for spent wash treatment treatment for sugar cane molasses based distilleries. Therefore, this project will result in the promotion of technology transfer to Panama and will be an example and a CDM reference for other distilleries and industries interested to develop similar projects. projec Conclusion The proposed project activity will contribute to sustainable development by avoiding methane emissions from anaerobic lagoons and by substituting a fossil fuel based energy system by a renewable biogas bio based energy system. It will generate environmental benefits not only by reducing greenhouse gas emissions but also by reducing other local air pollutants associated with the burning of fuel oil. In addition, the project will contribute to the creation of new jobs and will involve the training of the staff in the operation and maintenance of new green technologies. A.3. Project participants:: Private and/or public entity(ies) Kindly indicate if the Party involved project participants (*) wishes to be considered as project (as applicable) participant (Yes/No) Panama (host country) Varela Hermanos S.A. No (*) In accordance with the CDM modalities and procedures, at the time of making the CDM-PDD CDM public at the stage of validation, a Partyy involved may or may not have provided its approval. At the time of requesting registration, the approval by the Party(ies) involved is required. Name of Party involved (*) (host) indicates a host Party) Please refer to Annex 1 for more detailed contact information. 4 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board A.4. Technical description of the small-scale project activity: A.4.1. Location of the small-scale project activity: A.4.1.1. Host Party(ies): A.4.1.2. Region/State/Province etc.: A.4.1.3. City/Town/Community etc: Panama Herrera Pesé Details of physical location, including ncluding information allowing the A.4.1.4. unique identification of this small-scale project activity : The CDM project activity will take place in the Hacienda San Isidro of Varela Hermanos H S.A. in Chitré, province of Herrera, approximately 250 km away from Panama Pana City. Precise GPS coordinates for the project are 7°53’57.50”N and 80°35’43.12”W. (Please refer to Figure 1 and Figure 2¡Error! ¡Error! No se encuentra el origen de la referencia.) referencia. Figure 1: Map of Panama 5 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Anaerobic Lagoons Figure 2: The project’s location A.4.2. Type and category(ies) and technology/measure of the small-scale small project activity: Type and category he simplified modalities and procedures for small-scale small scale CDM project activities, According to Appendix B to the the project type, category and sectoral scope are determined as follows: Methane recovery component: Type III: Other project activities Category III.H: Methane Recovery in Wastewater Was Treatment Sectoral Scope 13: Waste handling and disposal Energy generation component: Type I: Renewable energy projects Category I.C: Thermal energy production with or without electricity. Sectoral Scope 1: Energy industries (renewable /non-renewable /non sources) 6 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Technology of the small-scale scale project activity Current situation and project activity specifications are detailed below: Ethanol production Varela Hermanos produces ethanol from cane juice and molasses. The distillery is operating around 200 days per year and has a production capacity of 50,000 5 litres of ethanol/day. As a result of its production process, Varela Hermanos H generates 12.65 litres of vinasse per litre of alcohol produced. The volume of vinasse associated with the ethanol production is expected to rise in the future due to plans for increased alcohol production at the distillery; the forecast estimation is presented in Table 1¡Error! No se encuentra el origen de la referencia.: Alcohol Prod. (M l/year) Vinasse (m3/year) 2011 2012 2013 2014 2015 2016 2017 2018 2019 8.76 9.23 9.79 10.44 10.44 10.44 10.44 10.44 10.44 110,814 116,765 123,849 132,066 132,066 132,066 132,066 132,066 132,066 Table 1: Planning data for alcohol production Existing wastewater treatment The effluent of the distillery, the vinasse, vinasse is a highly polluted wastewater, which is currently treated as follows: first vinasse is directed to a storage lagoon from which it is disposed in four identical anaerobic a lagoons (please refer to Table 2).. Finally, vinasses are used as fertilizer on nearby plantations. plantations The specific amount of vinasse is 12.65 litres/litres of ethanol with a very high COD concentration. Below are some pictures res of the current anaerobic lagoons: 7 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Figure 3: Vinasse anaerobic lagoons The following table describes the current anaerobic lagoons lagoon characteristics: Lagoon Area (Ha) Max. Depth (m) Type 1 2.2 Approx. 3.0 Anaerobic 2 1.2 3.0 Anaerobic 3 1.2 3.0 Anaerobic 4 1.2 3.0 Anaerobic 5 1.2 3.0 Table 2: Current anaerobic ponds characteristics Anaerobic Current energy situation During the zafra afra season, which goes from January to May, Varela Hermanos H s uses bagasse and biomass residues from the sugar cane plantations1 as fuel in two boilers of 21,500 lbs/hr at 150 psi. Whereas, out of the zafra season (June-December), December), the distillery uses bunker fuel as fuel in a boiler of 21,000 lbs/hr at 150 psi. The amount of bunker used is 5,000 litres/day. The electricity consumption by the distillery d is: 2011: for 7 months period average electricity use is 1,085 kW k 2010: for 12 month period average electricity use is 485 kW k 2009: for 12 month period average a electricity use is 476 kW Project activity description The project activity involves the installation of a biogas plant for power generation based on a low rate anaerobic digester; this plant will replace the current wastewater treatment based on anaerobic lagoons. The new process is shown in the following figure: 1 The emissions reductions due to the use of biomass for energy requirements are not claimed as part as the proposed project activity. 8 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Figure 4:: Flow diagram of the biogas digester system The spent wash from the distillery will be taken as currently to one of the lagoons sized to provide 1,500 m3 retention ntion time at 1.5 meter depth (to be provided by distillery) or alternatively UEM will build a cooling system to bring down the temperature from 80 °C to 40 °C. C. The cooled vinasse is then th conveyed via pumps to the digester. The cooled spent wash will then then be pumped via stainless steel (wetted parts) transfer pumps into the Low Rate Anaerobic Digesters. The technology provider, UEM, proposes the following configuration of the anaerobic digesters: two digesters or one digester with a total capacity of 17,143 m3. The digesters shall be in bolted steel design with a concrete foundation and floor design and will have durable floating membrane covers. The inlet distribution header will be spread over the entire width of the reactor on the inlet side. Slow speed spee mixing will be provided in each digester to keep the digester contents well mixed and in suspension. Each digester will be designed for a large HRT (Hydraulic Retention Time).. The large volume allows the digester to handle large organic loads and to digest digest accumulated sludge, resulting in a higher biogas generation. Sludge will be recycled from the bottom of the digester from the end to the inlet header, where it will mix with the incoming spent lees. This serves to recycle the alkalinity created in the digester digester and to neutralize the incoming spent wash. The sludge recycle system provides improved biomass-substrate biomass substrate contact. It also provides for positive sludge removal; however; this is an infrequent operation, operation, since the digesters design’s provides long solids retention times (SRT), and therefore, the quantity of excess sludge generation is low. The large volume of reactor coupled with the very large mass of sludge, helps in handling shock loading. There shall be no sludge removal on a daily basis since most of the organic volatile solids will be digested in the digester to help produce additional biogas. 9 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Treated wastewater will be withdrawn from the reactor through a Gas Liquid Solid Separator system via an outlet header. Biogas is removed via a duplex blower blower system that applies a slight negative pressure beneath the floating membrane cover while discharging the biogas under pressure to be used either in the boilers or in the biogas engines. Electricity shall be supplied in the distillery for its captive use use and balance electricity shall be supplied to the grid for sale by the distillery. No separate gasholder is required, as excess biogas can be temporarily stored under the large floating cover if required for a few hours duration. It is worth mentioning that in case of emergency, the biogas will be sent to an enclosed flare system. The Anaerobic Digester treatment is expected to provide the following removal efficiencies and performance: Parameter % Removal Expected 90% 65-67% during Non Zafra COD 70% during Zafra TSS (organic volatile) 70% Table 3: The digesters removal efficiencies BOD The pH of the digestate will be neutral and the temperature of the the digestate will be around 40 °C. ° All other parameters will remain similar to the influent which will be discharged for fert-irrigation. irrigation. The process can be summarized as follows: 1. Preliminary treatment: - Cooling of the spent wash via a cooling tower or cooling/settling tank - Transfer of the cooled spent wash into the low rate anaerobic anaerobic digester by digester feed pumps 2. Anaerobic biological treatment system: - Anaerobic biological treatment in a large volume low rate anaerobic digester - Sludge recycle system to increase solids retention time and recycle alkalinity - Methane-rich rich biogas generation generation and collection in the low rate anaerobic digester - Biogas pressurization and transmission to point of utilization or to a flare via a biogas pipeline and safety system 3. Biogas treatment and power generation. Gas utilization/energy saving The recovered and cleaned biogas will be used in a power plant comprised of two internal combustion engine generators that when operating at 100% load shall provide approximately 1,192 KW of gross electricity at 3 phases.. The power plant shall be pre-packaged pre and modular ar in nature to allow for a minimized site installation. It will be comprised of modules that when re-assembled re assembled on site will comprise a fully operational plant. The plant has been configured to separate the mechanical and electrical spaces and allows for maximum m accessibility for maintenance within the plant enclosure. enclosure It shall include all required equipment to allow for the proper operation of the internal combustion engine-generator engine generator sets operating on biogas. The biogas and power plant’s captive electrical consumption shall be utilized from the electricity generation and net exportable electricity to the grid during the zafra and Non zafra season. Environmental aspects This is a new and environmentally safe technology that will lead to a sound wastewater treatment t and a significant reduction of greenhouse gas emissions, odours and pollutants associated with fossil fuel combustion. Indeed, the design of the digestion system allows the treatment of the vinasse in a much more efficient way. 10 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Technology transfer The he technology implementation will be developed by UEM Group, a Florida-based based (USA) engineering firm which has installed over 40 anaerobic wastewater treatment systems for spent wash treatment for sugar cane molasses based distilleries. The materials and labour used in the project activity will be sourced from the host country whenever economically and technically feasible. When not feasible, the materials and labour will be sourced from Annex 1 countries. A.4.3 Estimated amount of emission reductions reduction over the chosen crediting period: period Once implemented, it is estimated that the Project will reduce 33,331 tCO2e annually, generating an expected total of 233,320 tCO2e for the duration of the first renewable seven year crediting period. period The Project’s estimated annual emission reductions over the first crediting period are as follows: Years 2013 201 201 2014 201 2015 201 2016 201 2017 201 2018 2019 Total emission reductions (tonnes of CO2) Total number of crediting years Annual average over the crediting period of estimated reductions (tonnes of CO2) Annual estimation of emission reductions in tonnes of CO2 32,092 33,538 33,538 33,538 33,538 33,538 33,538 233,320 7 33,331 A.4.4. Public funding of the small-scale project activity: This project will not receive any an public funding from Annex I Parties. A.4.5. Confirmation that the small-scale project activity is not a debundled component of a large scale project activity: As per Appendix C of the Simplified Modalities and Procedures for Small-Scale Small Scale CDM Project Activities - “A proposed small-scale scale project activity shall be deemed to be a debundled component of a large project activity if there is a registered small-scale scale CDM project activity or an application to register another small-scale small CDM project activity: (a) With the same project participants; (b) In the same project category and technology/measure; (c) Registered within the previous 2 years; and (d) Whose project boundary is within 1 km of the project boundary of the proposed small-scale small activity at the closest losest point.” point 11 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board The proposed project activity is not a debundled component of a large project activity as there is no small-scale small CDM project activity or an application registered in the same project category and technology/measure in the last two years within thin 1 km of the project boundary of the proposed small-scale small scale project activity. SECTION B. Application of a baseline and monitoring methodology B.1. Title and reference of the approved baseline and monitoring methodology applied to the small-scale project activity:: The following approved baseline and monitoring methodologies and relevant tools are applied to the proposed CDM project activity. • Methane recovery component: Title of the approved baseline and monitoring methodology: AMS-III.H. III.H. “Methane Recovery in Wastewater Treatment” (Version 16, 16 EB 58) • Energyy generation component: Title of the approved baseline and monitoring methodology: AMS-I.C. “Thermal Thermal energy production with or without electricity” (Version 19, EB 61) References: Approved baseline ine and monitoring methodology AMS-I.D AMS (Version 17, EB 61), used to calculate the baseline for supply of electricity and/or displacement electricity from the national grid “Tool Tool to calculate the emission factor for an electricity system” (Version 02.2.1, .1, EB E 63), used to calculate the emission factor. “Tool to determine project emissions from flaring gases containing methane” (Annex 13, EB 28), used to calculate methane emissions due to incomplete flaring. “Tool to determine methane emissions avoided from disposal disposal of waste at a solid waste disposal site” (Version 04, EB 41), this tool is not applicable since the project activity does not involve the disposal of waste at a solid waste disposal. “Tool to calculate project or leakage CO2 emissions from fossil fuel combustion” (Version 2, EB 41), this tool is not applicable since the project activity does not involve any fossil fuel combustion. B.2 Justification of the choice of the project category: AMS-III.H (Version 16)) is applicable to the methane recovery component of the project activities as shown in the following table. Ref.1 (*) AMS-III.H “This methodology comprises measures that recover biogas from biogenic organic matter in wastewater by means of one, or a combination, of the following options: … (d) Introduction of biogas recovery and combustion to an anaerobic wastewater treatment system such as anaerobic reactor, lagoon, septic tank or an onsite industrial plant.” 12 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Project Activity AMS-III.H Ref.2 (*) Project Activity Ref.3 (*) Ref.4 (*) AMS-III.H “The recovered biogas from the above measures may also be utilised for the following applications instead of combustion/flaring: (a) Thermal or mechanical, electrical energy generation directly;…” Project Activity The project proj is covered under paragraph 3(a). The recovered recove methane is utilized directly for thermal and electrical energy generation. AMS-III.H “If the recovered biogas is used for project activities covered under paragraph 3 (a), that component of the project project activity can use a corresponding methodology under Type I.” Project Activity The approved baseline and monitoring methodology AMS I.C. I. is used for the energy generation component of the project activity. AMS-III.H Ref.5 (*) Project Activity “For project activities covered covered under paragraph 3(b), if bottles with upgraded biogas are sold outside the project boundary, the end-use end use of the biogas shall be ensured via a contract between the bottled biogas vendor and the end-user. end user. No emission reductions may be claimed from the displacement of fuels from the end use of bottled biogas in such situations. If however the end use of the bottled biogas is included in the project boundary and is monitored during the crediting period CO2 emissions avoided by the displacement of fossil fuel can be claimed under the corresponding Type I methodology, e.g. AMS-I.C AMS I.C .Thermal energy production with or without electricity”. This condition is not applicable to the project activity since it is covered under paragraph 3(a) and not n covered under paragraph 3(b) AMS-III.H “For project activities covered under paragraph 3(c)(i), emission reductions from the displacement of the use of natural gas are eligible under this methodology, provided the geographical extent of the natural natural gas distribution grid is within the host country boundaries.” Project Activity This condition is not applicable to the project activity since it is covered under paragraph 3(a) and not under paragraph 3(c)(i). AMS-III.H “For project activities activities covered under paragraph 3(c)(ii), emission reductions for the displacement of the use of fuels can be claimed following the provision in the corresponding Type I methodology, e.g. AMS-I.C.” AMS Ref.6 (*) Ref.7 (*) The project activity consists in the substitution of the existing open anaerobic lagoons by the installation of an anaerobic digestion system that will allow capturing the methane emissions. “In cases where baseline system is anaerobic lagoon the methodology is applicable if: (a) The lagoons are ponds with a depth greater than two meters, without aeration. The value for depth is obtained from engineering design documents, or through direct measurement, or by dividing the surface area by the total volume. If the lagoon filling level varies seasonally, the the average of the highest and lowest levels may be taken; (b) Ambient temperature above 15°C, at least during part of the year, on a monthly average basis; (c) The minimum interval between two consecutive sludge removal events shall be 30 days.” The baseline system is an anaerobic lagoon with a depth greater than two meters (Please refer to SectionA.2Table 2). The ambient temperature is above 15°C; and the interval between two consecutives sludge removal is greater than one month. 13 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Project Activity This condition is not applicable to the project project activity since it is covered under paragraph 3(a) and not under paragraph 3(c)(ii). AMS-III.H “In particular, for the case of 3(b) and (c) (iii), the physical leakage during storage and transportation of upgraded biogas, as well as the emissions emi from fossil fuel consumed by vehicles for transporting biogas shall be considered. Relevant procedures in paragraph 11 of Annex 1 of AMS-III.H AMS III.H “Methane recovery in wastewater treatment” shall be followed in this regard.” Project Activity This condition condition is not applicable to the project activity since it is covered under paragraph 3(a) and not under paragraphs 3(b) and (c) (iii). AMS-III.H “For project activities covered under paragraph 3 (b) and (c), this methodology is applicable if the upgraded upgraded methane content of the biogas is in accordance with relevant national regulations (where these exist) or, in the absence of national regulations, a minimum of 96% (by volume).” Project Activity This condition is not applicable to the project activity activity since it is covered under paragraph 3(a) and not under paragraphs 3(b) and (c). AMS-III.H “If the recovered biogas is utilized for production of hydrogen (project activities covered under paragraph 3(d)), that component of project activity activit shall use corresponding category AMS-III.O AMS “Hydrogen production using methane extracted from biogas”. Project Activity This his condition is not applicable to the t project activity since it is covered under paragraph 3(a) and not under paragraph 3(d). AMS-III.H “If If the recovered biogas is used for project activities covered under paragraph 3 (e), that component of the project activity shall use corresponding methodology AMSAMS III.AQ “Introduction of Bio-CNG Bio in road transportation”. Project Activity This his condition is not applicable to the t project activity since it is covered under paragraph 3(a) and not under paragraph 3(e). 3 AMS-III.H “New facilities (Greenfield projects) and project activities involving a change of equipment resulting resulting in a capacity addition of the wastewater or sludge treatment system compared to the designed capacity of the baseline treatment system are only eligible to apply this methodology if they comply with the requirements in the General Guidance for SSC methodologies4 methodologies4 concerning these topics. In addition the requirements for demonstration of the remaining lifetime of the equipment replaced as described in the general guidance shall be followed.” Project Activity The project is not a Greenfield project and it does not result in a capacity addition of the wastewater or sludge treatment capacity. Ref.8 (*) Ref.9 (*) Ref. 10 (*) Ref. 11 (*) Ref. 12 (*) Ref. 13 (*) AMS-III.H Project Activity “The location of the wastewater treatment plant shall be uniquely defined as well as the source generating the wastewater and described in the PDD.” PDD The location of the wastewater treatment plant as well as the generation source of the wastewater are uniquely defined and described in this PDD. (Please refer to Section A.4.1.4.) 14 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Ref. 14 (*) AMS-III.H “Measures are limited to those that result in aggregate emission reductions of less than or equal to 60 ktCO kt 2 equivalent annually from all Type III components of the project activity.” Project Activity The ex--ante annual emission reductions achieved by the methane recovery component of the project are estimated to be 23 ktCO2e, which is less than 60 ktCO2e. *Reference paragraph number in “technology/ “technology measure” section (AMS-III.H .H methodology) Table 4:: Assessment of applicability criteria for the methane recovery component. AMS-I.C (Version 19)) is applicable to the energy generation component of the project activities as shown in the following table: AMS-I.C “This methodology comprises renewable energy technologies that supply users with thermal energy that displaces fossil fuel use. These units include technologies such as solar thermal water heaters and dryers, solar cookers, energy derived from renewable biomass and other technologies that provide thermal energy that displaces fossil fuel”. Project Activity The project consists in the use of biogas to replace fossil fuel consumption used to satisfy the thermal energy requirements of the distillery. distillery AMS-I.C Biomass-based Biomass based cogeneration systems consisting are included in this category. For the purpose of this methodology “cogeneration” shall mean the simultaneous generation of thermal energy and electrical energy in one process. Project activities that produce heat and power in separate element processes (for example, heat from a boiler and electricity tricity from biogas engine) do not fit under the definition of cogeneration project. project Project Activity This condition is not applicable to the project activity as it does not involve the installation of a biomass-based biomass cogeneration system. AMS-I.C Emission reductions from a biomass cogeneration system can accrue from one of the following activities: a) Electricity supply to a grid; b) Electricity and/or thermal energy (steam or heat) production for on-site on consumption or for consumption by other facilities; ities; c) Combination of (a) and (b). Project Activity This condition is not applicable to the project activity as it does not involve the installation of a biomass-based biomass cogeneration system. AMS-I.C The total installed/rated thermal energy generation generation capacity of the project equipment is equal to or less than 45 MW thermal. 2 Project Activity The total thermal capacity of the boiler is 6.3 MWth and has been determined by taking the difference between enthalpy of total output leaving the project equipment and the total enthalpy of input of feed water entering the boiler. Ref.1 (*) Ref.2 (*) Ref.3 (*) Ref.4 (*) 2 Thermal energy generation capacity shall be manufacturer’s manufacturer’s rated thermal energy output, or if that rating is not available the capacity shall be determined by taking the difference between enthalpy of total output (for example steam or hot air in kcal/kg or kcal/m3) leaving the project equipment and the total enthalpy of input (for example feed water or air in kcal/kg or kcal/m3) entering the project equipment. For boilers, condensate return (if any) must be incorporated into enthalpy of the feed. 15 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board AMS-I.C Ref.5 (*) Project Activity AMS-I.C Ref.6 (*) For co-fired -fired fired systems, the total installed thermal energy generation capacity of the project equipment, when using both fossil and renewable fuel shall not exceed exce 45 MW thermal The project activity does not involve the use of both fossil and renewable fuel. Moreover, since the thermal capacity of the boiler is 6.3MWth, this condition is fulfilled. The following capacity limits limits apply for biomass cogeneration units: (a) If the project activity includes emission emission reductions from both thermal and electrical energy components, the total installed energy generation capacity (thermal and electrical) of the project equipment shall not n exceed 45 MW thermal. For the purpose of calculating this capacity limit the conversion factor of 1:3 shall be used for converting electrical energy to thermal energy (i.e., for renewable energy project activities, the maximal limit of 15 MW(e) is equivalent alent to 45 MW thermal output of the equipment or the plant); (b) If the emission reductions of the cogeneration project activity are solely on account of thermal energy production (i.e., no emission reductions accrue from electricity component), the totall installed thermal energy production capacity of the project equipment of the cogeneration unit shall not exceed 45 MW thermal; (c) If the emission reductions of the cogeneration project activity are solely on account of electrical energy production (i.e.,., no emission reductions accrue from thermal energy component), the total installed electrical energy generation capacity of the project equipment of the cogeneration unit shall not exceed 15 MW. Project Activity This condition is not applicable to the project activity as it does not involve the installation of a biomass-based biomass cogeneration system. AMS-I.C The capacity limits specified in the above paragraphs apply to both new facilities and retrofit projects In the case of project activities that that involve the addition of renewable energy units at an existing renewable energy facility, the total capacity of the units added by the project should comply with capacity limits in paragraphs 4 to 6, and should be physically distinct from existing units. units Project Activity This condition does not apply to the project activity since it does not involve the addition of renewable energy units at an existing renewable energy facility. AMS-I.C Project activities that seek to retrofit or modify an existing existing facility for renewable energy generation are included in this category. Project Activity The project activity seeks to modify an existing facility for renewable energy generation Thus, it is included in this category. generation. AMS-I.C New Facilities Facilities (Greenfield projects) and project activities involving capacity additions compared to the baseline scenario are only eligible if they comply with the related and relevant requirements in the “General Guidelines to SSC CDM methodologies”. Ref.7 (*) Ref.8 (*) Ref.9 (*) 16 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Ref. 10 (*) Ref. 11 (*) Ref. 12 (*) Project Activity The project activity complies with all relevant requirements in the “General Guidelines to SSC CDM methodologies”. AMS-I.C If solid biomass fuel (e.g. briquette) is used, it shall be demonstrated that it has been produced using solely renewable renewable biomass and all project or leakage emissions associated with its production shall be taken into account in the emissions reduction calculation. Project Activity The project activity does not involve the use of solid biomass fuel. Thus, this condition condi is not applicable. AMS-I.C Where the project participant is not the producer of the processed solid biomass fuel, the project participant and the producer are bound by a contract that shall enable the project participant to monitor the source source of the renewable biomass to account for any emissions associated with solid biomass fuel production. Such a contract shall also ensure that there is no double-counting double counting of emission reductions. reductions Project Activity As stated above, the project activity does does not involve the use of solid biomass fuel. Thus, this condition is not applicable. AMS-I.C If electricity and/or steam/heat produced by the project activity is delivered to a third party i.e. another facility or facilities within the project project boundary, a contract between the supplier and consumer(s) of the energy will have to be entered into that ensures there is no double-counting double of emission reductions. Project Activity This condition does not apply since all the steam produced will be used for on-site requirements. AMS-I.C Ref. 13 (*) Project Activity Ref. 14 (*) AMS-I.C If the project activity recovers and utilizes biogas for power/heat production and applies this methodology on a stand-alone stand alone basis i.e. without using a Type III component of a SSC methodology, any incremental incremental emissions occurring due to the implementation of the project activity (e.g. physical leakage of the anaerobic digester, emissions due to inefficiency of the flaring), shall be taken into account either as project or leakage emissions. This condition does not apply to project activity since this methodology is not applied on a stand-alone stand alone basis. All incremental emissions occurring due to the implementation of the project activity will be taken into account following the procedures stated stat in the approved methodology AMS-III.H. AMS Charcoal based biomass energy generation project activities are eligible to apply the methodology only if the charcoal is produced from renewable biomass sources provided: (a) Charcoal is produced produced in kilns equipped with methane recovery and destruction facility; or (b) If charcoal is produced in kilns not equipped with a methane recovery and destruction facility, methane emissions from the production of charcoal shall be considered. These emissions emissions shall be calculated as per the procedures defined in the approved methodology AMS-III.K. AMS III.K. Alternatively, conservative emission factor values from peer reviewed literature or from a registered CDM project activity can be used, provided that it can be demonstrated demonstrated that the parameters from these are comparable e.g. source of biomass, characteristics of biomass such as moisture, carbon content, type of kiln, operating conditions such as ambient temperature. 17 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board This condition does not apply to the project activity since it does not involve the use of charcoal biomass. Project Activity *Reference paragraph number in “technology/ “technology measure” section (AMS-I.C I.C methodology) Table 5: Assessment of applicability criteria for the electricity generation ation component. component B.3. Description of the project boundary: Next diagram illustrates the project boundary: Project boundary Energyy generation component Methane recovery component Vinasses Alcohol production Steam Cooling process Boiler Methane capture in biodigesters Biogas purification Flare (for emergency) Biogas engines Aerobic lagoons Electri city Spent wash Used for irrigation in nearby plantations, in accordance to national discharge standards. Used for on-site site consumption and surplus will be exported to the national grid Figure 5:: Conceptual diagram of the boundary of the project Emissions by sources: The table below indicates GHG emissions emissions that are considered in the proposed CDM project activity: Baseline Source Wastewater treatment processes Gas Included/Excluded CO2 Excluded CH4 Included 18 Justification/Explanation CO2 emissions from the decomposition of organic waste are not accounted for. This Th is conservative. Main source of emissions in the baseline from open lagoons. PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Project Activity Energy generation Wastewater treatment processes Energy generation B.4. N 2O Excluded CO2 Included CH4 Excluded N 2O Excluded CO2 Excluded CH4 Included N 2O Excluded CO2 Excluded CH4 Excluded N 2O Excluded Excluded for simplification. This is conservative. Main emission source. Biogas captured is used to generate electricity ectricity to replace fossil fuels and grid electricity. Excluded for simplification. This is conservative. Excluded for simplification. This is conservative. CO2 emissions from the decomposition of organic waste are not accounted for. Main emission source. Emissions through degradable organic carbon in treated wastewater, fugitive emissions from biogas release in capture system and emissions from incomplete i flaring are accounted for. Excluded for simplification. This emission source is assumed to be very small. The energy requirements will be fulfilled by the use of the recovered biogas. Excluded for simplification. This emission source is assumed to be very small. Excluded for simplification. This emission source is assumed to be very small. Description of baseline and its development: development Identification of the baseline scenarios • Methane recovery component The he baseline scenario for the methane emissions avoidance is the existing anaerobic wastewater treatment system without methane recovery and combustion. As stated in the Section A.4.2, A.4.2 the existing wastewater treatment system is based on open deep anaerobic lagoons, which are the source of baseline methane (CH4) emissions. The project activity introduces an anaerobic digestion system with biogas recovery and combustion thus avoiding the emission of methane into int the atmosphere from the open lagoon. Data used to determine the baseline is provided in the table below: Data/Parameter Volume of vinasse (m3/year) COD inflow to the baseline wastewater treatment (tonnes/m3) COD removal efficiency of the baseline treatment system Methane generationn capacity of wastewater (kg CH4/kg COD) Symbol Value Qww,y See Table 1 COD inflow, i, y 58,441 Measurement campaign η COD,BL,i 88.74% Calculated as per measurement campaign Bo,ww 0.25 IPCC 19 Source of data Distillery design specifications PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Methane correction factor for the existing anaerobic deep lagoon wastewater MCFww,treat,BL,i 0.8 As per table III.H.1 treatment system Model correction factor UFBL 0.89 AMS-III.H Global Warming Potential for methane GWPCH4 21 AMS-III.H Table 6:: Parameters used to determine the methane recovery component baseline Compliance with the national regulations There is no specific restriction or regulation preventing the use of open open anaerobic lagoons in Panama. Indeed, the industries shall fulfill the industrial wastewater discharge standard which allows controlling the quality of industrial wastewaters before being discharged into a water body such as rivers or lakes. Accordingg to these statements, Varela Hermanos does not have any obligation to replace the current treatment system and consequently, the baseline scenario is the continuation of the current practice, practice thus the use of open anaerobic lagoons. • Energy generation component: onent: As per paragraph 19 of the approved methodology methodolog AMS I.C (Version 19), project activities producing both heat and electricity shall use one of the following baseline scenarios: (a) Electricity is imported from a grid and thermal energy (steam/heat) is produced produced using fossil fuel; (b) Electricity is produced in an on-site on site captive power plant using fossil (with a possibility of export to the grid) and thermal energy (steam/heat) is produced using fossil fuel; (c) A combination of (a) and (b); (d) Electricity and thermal al energy (steam/heat) are produced in a cogeneration unit using fossil fuel (with a possibility of export of electricity to a grid/other facilities and/or thermal energy to other facilities); (e) Electricity is imported from a grid and/or produced in an on-site on ite captive power plant using fossil fuels (with a possibility of export to the grid); steam/heat is produced from biomass; (f) Electricity is produced in an on-site on site captive power plant using biomass (with a possibility of export to a grid) and/or imported from from a grid; steam/heat is produced using fossil fuel; (g) Electricity and thermal energy (steam/heat) are produced in a biomass fired cogeneration unit (without a possibility of export of electricity either to a grid or to other facilities and without a possibility possib of export of thermal energy to other facilities). This scenario applies to a project activity that installs a new grid connected biomass cogeneration system that produces surplus electricity and this surplus electricity is exported to a grid. The baseline baseline scenario is that the electricity would otherwise have been generated by the operation of grid-connected grid connected power plants and by the addition of new generation sources to the grid; (h) Electricity and/or thermal energy produced in a co-fired co system; (i) Electricity city is imported from a grid and/or produced in a biomass fired cogeneration unit (without a possibility of export of electricity either to the grid or to other facilities); steam/heat is produced in a biomass fired cogeneration unit and/or a biomass fired boiler (without a possibility of export of thermal energy to other facilities). This scenario applies to a project activity that installs a new biomass cogeneration system that displaces electricity which otherwise would have been imported from a grid. Besides esides avoiding methane emissions from the anaerobic lagoons, lagoon , the project aims at replacing the bunker used in one of the boilers and producing electricity to satisfy the on-site on site requirements, thus avoiding its importation from the National Grid. The surplus surplus of electricity will be exported to the National Grid. In this manner, the project contributes directly to reduce GHG emissions as it produces heat and electricity from a renewable source. 20 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Therefore, the baseline scenario is option (a), which is the current cur practice. 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 small-scale scale CDM project activity: In accordance with the simplified modalities and procedures proc for small-scale scale CDM project activities, a simplified baseline and monitoring methodology listed in Appendix B may be used for a small-scale small CDM project activity if project participants are able to demonstrate to a designated operational entity that the project activity would otherwise not be implemented due to the existence of one or more barrier(s) listed in Attachment A of Appendix B. “Project participants shall provide an explanation to show that the project activity would not have occurred anywayy due to at least one of the following barriers: (a) Investment barrier:: a financially more viable alternative to the project activity would have led to higher emissions; (b) Access-to-finance finance barrier: barrier: the project activity could not access appropriate capital without wit consideration of the CDM revenues; (c) Technological barrier: barrier: a less technologically advanced alternative to the project activity involves lower risks due to the performance uncertainty or low market share of the new technology adopted for the project activity ivity and so would have led to higher emissions; (d) Barrier due to prevailing practice: practice: prevailing practice or existing regulatory or policy requirements would have led to implementation of a technology with higher emissions; (e) Other barriers such as institutional institutional barriers or limited information, managerial resources, organizational capacity, or capacity to absorb new technologies.” The additionality argument is based on the proposition that the project faces an investment barrier that prevents the implementation on of this type of project activity. Investment barrier The project faces a barrier to implementation due to the poor returns on investment. To illustrate this, an investment analysis to demonstrate that the proposed project activity is not economically or financially feasible without the revenue from the sale of Certified Emission Reductions (CERs) has been performed. Based on the fact that the proposed project activity generates financial and economic benefits trough the sales of electricity and savingss from bunker displacement, other that CERs related income, income the benchmark analysis has been determined as an appropriate analysis method. For that reason, the default expected return on equity for Group 1 in the CDM Guidelines for Investment Analysis3 has been selected. Thus, the IRR benchmark is 12%. All key financial parameters were estimated by UEM Group 4 (the technology provider). provider) Moreover, the cash flow was prepared for a plant life time of 20 years,, which was indicated by the technology provider. provider The project IRRs with and without the CERs sales revenue are shown in Table 7. 3 http://cdm.unfccc.int/Reference/Guidclarif/reg/reg_guid03.pdf 4 Please refer to “Technical Details for Varela Hermanos Destillery, Panama”. 21 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board IRR Without CERs revenues 9.99% With CERs revenues 14.55% Table 7:: Impact of CERs revenues on the Proposed Proposed Project’s IRR Table 7 7 shows that the IRR of the total investment of the proposed project without CERs sales revenue is 9.99%, %, lower than the benchmark IRR of 12%, which means that the proposed project activity indeed faces significant financial barriers. Therefore, the project activity is not the most economically or financially attractive choice of investment. A sensitivity analysis has been conducted to check whether the financial attractiveness remains unaltered unal by reasonable variations in the critical assumptions. The following parameters were used as critical assumptions: • CAPEX • Total savings • OPEX fluctu from -10% 10% to +10%. Table 88 shows the variation of IRR when the three parameters fluctuate -10% -5% 0% +5% +10% CAPEX 8.62% 9.28% 9.99% 10.75% 11.59% Total savings 11.68% 10.84% 9.99% 9.11% 8.22% OPEX 9.73% 9.86% 9.99% 10.11% 10.24% Table 8: IRR fluctuation 12,00% 11,50% 11,00% 10,50% 10,00% 9,50% 9,00% 8,50% 8,00% 7,50% 7,00% 10% 5% CAPEX 0% -5% SAVINGS OPEX Figure 6: IRR fluctuation 22 -10% PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Sensitivity analysis has been carried out for the stated costs and assumptions. It shows that under none of those scenarios the IRR of thee project exceeds the Benchmark5. It is not considered likely that the project’s return will exceed the benchmark,, since as stated above, all key financial figures were provided by UEM Group, who has a vast experience in developing this kind of projects. It is worth mentioning that inn the current situation the distillery is in compliance with wastewater wastewat regulations and thus, there is no obligation to undertake a new treatment method for vinasses. Actually, at the present time, there is no barrier which prevents the continuation of the current practice, based on open anaerobic lagoon treatment and the use se of bunker fuel in boilers. boilers Moreover, this project was thought though as a CDM project from its conception and the benefits obtained from the CDM are the main driver that encouraged Varela Hermanos to develop the proposed project activity. Indeed, Varela Hermanos’ nos’ board decided to execute the project subject to obtaining the CDM Registration, since thanks to carbon credits’ contribution, contribution the project risks are reduced and the overall project financial balance results in an acceptable profitability6. Conclusion There is a strong financial barrier that prevents prevent the implementation of the proposed project activity without the CDM incentive. The standardization of the project as a CDM project activity, and the corresponding benefits resulting from the CERs sale, will ll help to overcome the identified barrier and thus enable the project to be undertaken. Early Consideration of CDM Early consideration of CDM in the decision to undertake the project as CDM project activity by the project developer can be shown through the t project implementation schedule as follows: Events and action Project idea and proposal from ecosur america to Varela Hermanos’ representatives Date th 14 Feb 2011 Confirmed interest from Varela Hermanos 17th March 2011 CDM potential assessment 17th March 2011 COD measurement campaign 11th June 2011 Validation services offer request to RINA 24th July 2011 Project’ss presentation by ecosur america to Varela Hermanos’ Board of Directors 25th July 2011 CDM services offer 28th July 2011 Site-visit IBS-UEM Group 5 10th August 2011 Evidence provided to the DOE E-mail mail from ecosur america to Varela Hermanos E-mail mail sent by Varela Hermanos to ecosur america E-mail+ questionnaire sent by ecosur america to Varela Hermanos E-mail mail between Varela Hermanos and Aquatec E-mail mail between ecosur america and RINA E-mails mails between ecosur America and Varela Hermanos/ Power-point Power presentation. ecosur america’s america services offer / e-mails ecosur america to Varela Hermanos. e-mailss between IBS, UEM, ecosur america and Varela Hermanos/ Hermanos plane tickets All financial data and calculations will be provided to the DOE. 6 A letter from Varela Hermanos nos’’ board confirming the necessity of carbon credits to develop the project activity is available to DOE consultation. 23 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Offer received from RINA EIA from Bethesda S.A. to Varela Hermanos UEM pre-conclusions conclusions on the site visit/ prepr conclusions on the project’ss feasibility Contract signature ecosur America-Varela America Hermanos Invitation to LSC Prior consideration sent to UNFCCC + DNA Local Stakeholders’ Consultation RINA contract signature with Varela Hermanos GSP expected start date B.6. 16th August 2011 14th September 2011 15th September 2011 17th October 2011 23th October 2011 24th October 2011 st 1 November 2011 15th November 2011 18th November 2011 Offer sent ent by RINA Services vices offer from Bethesda S.A. to Varela Hermanos E-mail mail UEM/IBS/ecosur UEM/IBS/e america CDM Contract Invitation to LSC published in “La Prensa” newspaper. E-mail mail confirmation from UNFCCC+ DNA Participants list Participants’ Contract PDD publication on the UNFCCC webweb page. Emission reductions: B.6.1. Explanation of methodological choices: The emission reductions related to methane that would have been emitted to the atmosphere are estimated according to the AMS-III.H (Version Version 16). Whereas, the emission mission reductions achieved by the energy generation are estimated according to the AMS-I.C AMS (Version 19). • Methane recovery component (as per AMS-III.H): AMS Baseline Emissions The baseline emissions from the methane recovery component are calculated as: (1) Where: BEy BE power, y BE ww,treatment y BE s, treatment, y BE ww,discharge,y BE s, final, y Baseline emissions from the methane recovery component in year y (tCO2e) Baseline emissions from electricity or fuel consumption in year y (tCO2e) Baseline emissions of the wastewater treatment systems affected by the project activity in year y (tCO2e) Baseline emissions of the sludge treatment systems affected by the project activity in year y (tCO2e) Baseline methane emissions from degradable organic carbon in treated wastewater wast discharged into sea/river/lake in year y (tCO2e). Baseline methane emissions from anaerobic decay of the final sludge produced in year y (tCO2e). If the sludge is controlled combusted, disposed in a landfill with biogas recovery, or used for soil application in the baseline scenario, this term shall be neglected. In determining baseline emissions using the equation above, since the historical records of one year prior to the project implementation are not available, an ex ante measurement nt campaign has been undertaken to determine 24 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board the required parameters. This measurement campaign was performed upon the requirements specified in the approved methodology and average values have been multiplied by 0.89 to account for the uncertainty range. rang Baseline emissions from electricity consumption (BEpower,y) are neglected since in the baseline wastewater system there are no electric equipment/devices. Therefore: BEpower,y= 0 tCO2e Methane emissions from the baseline wastewater treatment systems affected by the project (BEww,treatment,y) are determined using the COD removal efficiency if the baseline plant: plant (2) Where: Q ww, i, y COD inflow, i, y ηCOD,BL,i MCF ww, treatment, BL, i i B o, ww UF BL GWP CH4 Volume of wastewater treated in baseline wastewater treatment system i in year y (m3) Chemical oxygen demand of the wastewater inflow to the baseline treatment system i in year y (tonnes/m3) COD removal efficiency of the baseline treatment system i Methane correction factor for baseline wastewater treatment systems i (MCF = 0.8Anaerobic deep lagoon (depth more than 2 metres), as per table III.H.1) Index for baseline wastewater treatment system Methane producing capacity capa of the wastewater (IPCC value of 0.25 0.2 kg CH4/kg COD) Model correction factor to account account for model uncertainties (0.89) (0. Global Warming Potential for methane (value of 21) As the baseline treatment system is different from the treatment system in the project scenario, the monitored values of the COD inflow during the crediting period will be used to calculate the baseline emissions ex post. Formulae to calculate methane ethane emissions from the baseline sludge treatment systems affected by the project activity are not applicable since there is no sludge treatment in the baseline. Therefore: herefore: BE s, treatment, y=0 tCO2e Formulae to calculate methane ethane emissions from degradable organic carbon in treated wastewater discharged is not applicable since after being treated, treated the vinasse is used as a fertilizer in the baseline. Thus, BE ww, discharge, y=0 tCO2e ethane emissions from anaerobic decay of the final sludge produced is not applicable Formulae to calculate methane as there is no sludge removal in the baseline scenario. scenario Therefore: BE s, final, y=0 tCO2e Project Activity Emissions Accordingg to the methodology AMS III.H (Version 16), 1 ), the project activity emissions are calculated as follows: (3) 25 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Where: PEy Project activity emissions in the year y (tCO2e) PEpower,y Emissions from electricity or fuel consumption in the year y (tCO2e). PEww,treatment,y Methane emissions from wastewater treatment systems affected by the project activity, and not equipped with biogas recovery, in year y (tCO2e). PEs,treatment,y Methane emissions from sludge treatment systems affected by the project activity, and not equipped with biogas recovery, in year y (tCO2e). PEww,discharge, y Methane emissions from degradable organic carbon in treated wastewater in year y (tCO2e). PEs,final,y Methane emissions from anaerobic decay of the final sludge produced in year y (tCO2e). PEfugitive,y Methane emissions from biogas release in capture systems in year y (tCO2e) PEbiomass,y Methane emissions from biomass stored under anaerobic conditions (tCO2e) PEflaring,y Methane emissions due to incomplete flaring in year y as per the the “Tool to determine project emissions from flaring gases containing methane”(tCO methane” 2e) Formulae to calculate emissions missions from electricity or fuel consumption (PEpower,y) is not applicable since the recovered biogas in the project scenario is used to power auxiliary auxiliary equipment. Therefore: PEpower,y= 0 tCO2e Methane emissions from wastewater treatment systems affected by the project activity, and not equipped with biogas recovery (PEww,treatment,y) are neglected, since in the project scenario, after going through thro the digesters, the wastewater is conducted to an aerobic pond before being used for land application. Formulae to calculate methane ethane emissions from sludge treatment systems affected by the project activity, and not equipped with biogas recovery (PEs,treatment,y) is not applicable as in the project scenario there is no sludge treatment. Therefore: PEs,treatment,y=0 tCO2e Methane emissions from degradable organic carbon in treated wastewater (PEww,discharge,y) are neglected since in the project scenario the effluent is used for land application. Thus, PEww,discharge,y=0 tCO2e Methane emissions from anaerobic decay of the final sludge produced (PE PEs,final,y) are neglected since according to the technology supplier there is a small amount of sludge produced ced in the biodigesters and it will be used for soil application in aerobic conditions in the project activity. Therefore: PEs,final,y=0 tCO2e Methane emissions from biogas release in capture systems (PEfugitive,y ) are calculated as per the following equation: (4) Where: PE fugitive,ww ,y Fugitive emissions through capture inefficiencies in the anaerobic wastewater treatment systems in the year y (tCO2e) 26 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board PE fugitive, s, y Fugitive emissions through capture inefficiencies in the anaerobic sludge treatment treatme systems in the year y (tCO2e) The equation (4) is simplified as follows as the Project does not involve methane recovery from sludge treatment and thus PEy,fugitive,s can be neglected. (5) PEy,fugitive,ww is given by: (6) Where: CFE ww Capture efficiency iency of the biogas recovery equipment in the wastewater treatment systems (a default value of 0.9 shall be used) MEP ww, treatment, y Methane emission potential of wastewater treatment systems equipped with biogas recovery system in year y (tonnes) (7) Where: COD removed, PJ, k, y MCF ww, treatment, PJ, k UF PJ The he chemical oxygen demand removed (difference of inflow COD and the outflow COD) by the treatment system k of the project activity equipped with biogas recovery in the year y (tonnes/m3) Methane correction correction factor for the project wastewater treatment system k equipped with biogas recovery equipment (MCF = 0.80.8 Anaerobic reactor without methane recovery, as per table III.H.1) Model correction factor to account for model uncertainties (1.12) (1. Formulae to calculate methane ethane emissions from biomass stored under anaerobic conditions (PEbiomass,y) is not applicable since no storage of biomass under anaerobic conditions takes place due to the project activity. Therefore: PEbiomass,y= 0 tCO2e Methane emissions sions due to incomplete flaring (PE ( flaring,y) are neglected since in the project scenario, the flare will only be used in case of emergency. However, if biogas is sent to the flare system, the emissions due to incomplete flaring shall be calculated as per the “Tool to determine project emissions from flaring gases containing methane”. This tool involves the following seven steps: steps STEP 1: Determination of the mass flow rate of the residual gas that is flared STEP 2: Determination of the mass fraction of carbon, carbon, hydrogen, oxygen and nitrogen in the residual gas STEP 3: Determination of the volumetric flow rate of the exhaust gas on a dry basis STEP 4: Determination of methane mass flow rate of the exhaust gas on a dry basis STEP 5: Determination of methane methane mass flow rate of the residual gas on a dry basis STEP 6: Determination of the hourly flare efficiency STEP 7: Calculation of annual project emissions from flaring based on measured hourly values or based on default flare efficiencies. 27 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board The project activity tivity involves the installation of an enclosed flare. According to the tool, for f enclosed flares, either of the following two options can be used to determine the flare efficiency: (a) To use a 90% default value. Continuous monitoring of compliance with manufacturer’s manu specification of flare (temperature, flow rate of residual gas at the inlet of the flare) must be performed. If in a specific hour any of the parameters are out of the limit of manufacturer’s specifications, a 50% default value for the flare efficiency iciency should be used for the calculations for this specific hour. (b) Continuous monitoring of the methane destruction efficiency of the flare (flare efficiency). efficiency For the purpose of determining the flare efficiency, Option (a) is adopted, and therefore, continuous c monitoring of compliance with manufacturer’s specifications will be performed. Moreover, according to the tool, if option (a) is chosen, Steps 3 and 4 are not applicable. STEP 1: Determination of the mass flow rate of the residual gas that is flared f This step calculates the residual gas mass flow rate in each hour h,, based on the volumetric flow rate and the density of the residual gas. The density of the residual gas is determined based on the volumetric fraction of all components in the gas. (8) Where: FMRG,h ρRG,n,h FVRG,h Mass flow rate of the residual gas in hour h (kg/h) Density of the residual gas at normal conditions in hour h (kg/m3) Volumetric flow rate of the residual gas in dry basis at normal conditions in the hour h (m3/h) And: (9) Where: Pn Ru MMRG,h Tn Atmospheric pressure pre at normal conditions (101 325 Pa) Universal ideal gas constant (8,314 Pa.m3/kmol.K) Molecular mass of the residual gas in hour h (kg/kmol) Temperature at normal conditions (273.15°K) And: (10) Where: fvi,h MMi i Volumetric fraction of component i in the residual gas in the hour h Molecular mass of residual component i (kg/kmol) The components CH4,CO, CO2, O2, H2, N2 As a simplified approach, only the volumetric fraction of methane will be measured and the difference to 100% will be considered as being nitrogen (N2). 28 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board STEP 2. Determination of the mass fraction of carbon, hydrogen, oxygen and nitrogen in the residual gas Determine the mass fractions of carbon, hydrogen, oxygen and nitrogen in the residual residual gas, calculated from the volumetric fraction of each component i in the residual gas, as follows: (11) Where: fmj,h fvi,h AMj MMRG,h j i Mass fraction of element j in the residual gas in hour h Volumetric fraction of component i in the residual gas in the hour h Atomic mass of element j (kg/kmol) Molecular mass of the residual gas in hour h (kg/kmol) The elements carbon, hydrogen, oxygen and nitrogen The components CH4,CO, CO2, O2, H2, N2 STEP 3. Determination of the volumetric flow rate of the the exhaust gas on a dry basis. basis Not applicable. STEP 4. Determination of methane mass flow rate in the exhaust gas on a dry basis. basis Not applicable. STEP 5. Determination of methane mass flow rate in the residual gas on a dry basis. basis The quantity of methane ne in the residual gas flowing into the flare is the product of the volumetric flow rate of the residual gas (FVRG,h), the volumetric fraction of methane in the residual gas (fv ( CH4,RG,h) and the density of methane (ρCH4,n,h) in the same reference conditions conditions (normal conditions and dry or wet basis). It is necessary to refer both measurements (flow rate of the residual gas and volumetric fraction of methane in the residual gas) to the same reference condition that may be dry or wet basis. If the residual gas ga moisture is significant (temperature greater than 60ºC), the measured flow rate of the residual gas that is usually referred to wet basis should be corrected to dry basis due to the fact that the measurement of methane is usually undertaken on a dry basiss (i.e. water is removed before sample analysis). (12) Where: TMRG,h FVRG,h fvCH4,RG,h ρCH4,n,h Mass flow rate of methane in the residual gas in the hour h (kg/h) Volumetric flow rate of the residual gas in dry basis at normal conditions in the hour h (m3/h) Volumetic lumetic fraction of methane in the residual gas on dry basis in the hour h (NB: this corresponds to fvi,RG,h where i refers to methane) Density of methane at normal conditions (0.716 kg/m3) STEP 6. Determination of the hourly flare efficiency According to the tool, in case of enclosed flares and use of the default value for the flare efficiency, the flare efficiency in the hour h (ηflare,h) is: • 0% if the temperature in the exhaust gas of the flare (T ( flare) is below 500 °C for more than 20 minutes during the hour h. 29 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board • • 50%, if the temperature in the exhaust gas of the flare (T ( flare) is above 500 °C for more than 40 minutes during the hour h,, but the manufacturer’s specifications on proper operation of the flare are not met at any point in time during the hour h. 90%, if the temperature in the exhaust gas of the flare (T ( flare) is above 500 °C for more than 40 minutes during the hour h and the manufacturer’s specifications on proper operation of the flare are met continuously during the hour h. STEP 7. Calculation of annual project emissions from flaring Project emissions from flaring are calculated as the sum of emissions from each each hour h, based on the methane flow rate in the residual gas (TM TMRG,h) and the flare efficiency during each hour h (ηηflare,h), as follows: (13 (13) Where: PEflare,y TMRG,h ηflare,h GWPCH4 Project emissions from flaring of the residual gas stream in year y (tCO2e) Mass flow rate of methane in the residual gas in hour h (kg/h) Flare efficiency in hour h Global Warming Potential of methane valid for the commitment period (tCO2e/tCH4) Leakage Emissions There is no leakage expected from the project activity as the technology and the equipment used is not transferred from another activity. Therefore, LEy=0. Emissions Reductions According to AMS-III.H, III.H, emission reductions shall be estimated ex ante in the PDD using the following equation: (14 (14) Where: ER y, ex ante LE y, ex ante PE y, ex ante BE y, ex ante Ex ante emission reduction in year y (tCO2e) Ex ante leakage emissions in year y (tCO2e) Ex ante project emissions in year y (tCO2e) Ex ante baseline emissions in year y (tCO2e) For cases 1 (b), 1 (c), 1 (d) and nd 1 (f) (f ex post emission reductions shall be based on the lowest value of the th following, as per paragraph 34:: (i) The amount of biogas recovered and fuelled or flared (MDy) ( ) during the crediting period, that is monitored ex post;; (ii) Ex post calculated baseline, project project and leakage emissions based on actual monitored data for the project activity. For cases 1 (b), 1 (c), 1 (d) d) and 1 (f): it it is possible that the project activity involves wastewater and sludge treatment systems with higher methane conversion factors (MCF) or with higher efficiency than the treatment systems used in the baseline situation. Therefore the emission reductions achieved by the project activity is limited to the ex post calculated baseline emissions minus project emissions using the actual monitored data for the project activity. The emission reductions achieved in any year are the lowest value of the following: 30 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board ER y, ex post = min ((BE BE y, ex post- PE y ex post- LE y, ex post), (MDy- PE y ex post- LE y, ex post)) (15) Where: (16) Where: BGburnt,y wCH4, y D CH4 FE • Biogas flared/combusted in year y (m3) Methane content in the biogas in the year y (volume fraction)7 Density of methane at the temperature and pressure of the biogas in the year y (tonnes/m3) Flare efficiency in year y (fraction). If the biogas is combusted for gainful purposes, purposes e.g. fed to an engine, an efficiency of 100% may be applied. Energyy generation component (as per AMS-I.C): AMS Baseline Emissions The baseline emissions as discussed in Section B.4 will include emissions thatt would have occurred in the absence of the project activity. According to the approved AMS I.C methodology, paragraphs 21 and 22 are used to calculate the baseline emissions; corresponding equations are given below. Baseline emissions for heat production productio Since in the baseline situation steam would have been generated in a bunker-based bunker boiler, the following equation of the methodology AMS-I.C AMS is applied: (17) Where: (16) BE thermal, CO2,y Baseline emissions from steam/heat displaced by the project activity ac during the year y; tCO2e EG thermal,y The net quantity of steam/heat supplied by the project activity during the year y; TJ EF FF,CO2 The CO2 emission factor of the fossil fuel that would have been used in the baseline plant (IPCC default defau emission factor);tCO2/TJ The efficiency of the plant using fossil fuel in the absences of the project activity. Baseline emissions for electricity production According to AMS-IC, IC, baseline emissions for supply of electricity to and/or displacement of electricity from fro a grid shall be calculated as per the procedures detailed in AMS-I.D. AMS or AMS-I.F I.F as applicable. Version 17 of the AMS-I.D I.D is applicable since the project displaces energy form the national grid. Thus, the following equation is applied: (18) Where: BEy 7 Baseline Emissions in year y (tCO ( 2) Biogas volume and methane content measurements shall be on the same basis (wet or dry). 31 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board EGBL, y EFCO2, y Quantity of net electricity supplied to the grid as a result of the implementation of the CDM project activity in year y (MWh) Emission Factor of the grid in year y (tCO2/MWh) The Emission Factor is calculated as a combined margin (CM), consisting of the combination of the operating margin (OM) and build margin (BM), according to the procedures prescribed in the “Tool to calculate the Emission Factor for an electricity system”.(Please system” refer to Annex 3 for detailed information). Total baseline emissions are calculated as follows: (19) Where: BE thermal,y Baseline emissions from electricity and steam displaced by the project activity during the year y (tCO2e). Baseline emissions from steam/heat production product (tCO2e). Baseline emissions for displacement of fossil fuel used for electricity generation in the Panamenian grid (tCO2e). Project Emissions According to AMS-I.C, project emissions include: - CO2 emissions from on-site on consumption mption of fossil fuels due to the project activity shall be calculated using the latest version of the .Tool to calculate project or leakage CO2 emissions from fossil fuel combustion.; using the latest version of the Tool - CO2 emissions from electricity consumption by the project activity using to calculate baseline, project and/or leakage emissions from electricity consumption; consumption - Any other significant emissions associated with project activity within the project boundary; - For geothermal project activities, project participants shall account for the following emission sources, where applicable: fugitive emissions of carbon dioxide and methane due to release of nonnon condensable gases from produced steam; and carbon dioxide emissions resulting from combustion of fossil fuels related to the operation of the geothermal power plant. Since the project activity does not involve on-site on e consumption of fossil fuel nor electricity consumption other than the one produced withh the recovered biogas. And, there no other significant significant emissions associated with the project activity, thus: PEy= 0 tCO2e Leakage Emissions According to paragraphs 47 and 48 of the AMS-I.C AMS I.C methodology there is no leakage expected from the project activity as energy generating equipment is not transferred transferred from outside the boundary and also the project activity does not involve any collection/processing/transportation of biomass residues. Therefore, LEy=0. Emissions Reductions Emission reductions are calculated as follows: 32 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board ERy = BEy − PEy − LEy (20) Where: ERy BEy PEy LEy Emission reductions in year y (tCO2e/y). Baseline Emissions in year y (tCO2e/y). Project emissions in year y (tCO2e/y). Leakage emissions in year y (tCO2e/y). Since PEy and LEy= 0 tCO2e,, equation (20) can be simplified as follows: ERy = BEy (21) B.6.2. Data and parameters that are available at validation: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Depth of open lagoon m Depth of open lagoon from the water surface to the bottom. Plant condition Over 3.0 m (Please refer to Table 2 for detailed information). Data / Parameter: Data unit: Description: MCFwww,treatment,BL,i No unit Methane correction factor for the wastewater treatment system that will be equipped with methane recovery and combustion. combust IPCC default value for anaerobic decay of the untreated wastewater 0.8 When the depth of anaerobic open open lagoons is more than 2 meters, then the MCF in table III.H.1 is used. Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of Essential to determine determi if methane emissions occur into the lagoon in the baseline. This data is essential to determine the methane emission potential of the wastewater entering the digesters. digester Used to calculate baseline emissions. MCF CFww, discharge, BL No unit Methane correction factor based on discharge pathway in the baseline situation of the wastewater IPCC default value for anaerobic decay of the untreated wastewater 0.0 Inn the baseline system after being treated the effluent is used as a fertilizer in the nearby plantations. 33 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: MCF ww,final, PJ,k No unit Methane correction factor based on type of treatment and discharge pathway of the wastewater, fraction IPCC default value for anaerobic decay of the untreated wastewater 0.0 Based on the type type of wastewater treatment and discharge pathway: Aerobic treatment, well managed, managed as per table III.H.I. In project scenario, after going through the digesters, the the wastewater is conducted to two aerobic ponds before being used for land application. MCFww,PJ,disharge,k No unit. Methane correction factor based on discharge discharge pathway in the baseline situation of the wastewater IPCC default value for anaerobic decay of the untreated wastewater 0.0 In the project scenario, the effluent is irrigated in the nearby plantations. - MCFww,treatment,PJ,k No unit Methane correction factor based on type of treatment and discharge discha pathway of the wastewater, fraction IPCC default value for anaerobic decay of the untreated wastewater 0.8 Based on the type type of wastewater treatment and discharge pathway: Anaerobic reactor without methane recovery, recovery as per table III.H.I. Used for project emissions calculation. Bo,ww tCH4/tCOD 34 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Methane producing capacity of the wastewater Methan IPCC default value for industrial wastewater 0.25 IPCC value for wastewater waste of 0.25 kgCH4/kg COD. - Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: ηCOD,BL,i % COD OD removal r efficiency of the baseline treatment system tem i Calculated as per measurement campaign 88.74 74 - Data / Parameter: Data unit: Description: CFEww No unit/ Capture efficiency of the the biogas recovery equipment in the wastewater treatment systems AMS AMS-III.H 0.9 - Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Determined as per paragraph 27 of AMS-III.H AMS III.H (Version 16) - MMCH4 kg/kmol Molecular mass of methane As per Table 1 of the “Tool to determine project emissions from flaring gases containing methane” 16.04 - 35 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Any comment: - Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: ρCH4,n kg/m3 Density of methane at normal conditions UNFCCC UNFCCC-constant value 0.716 Thee value is adopted from Table 1. Constants used in equations as published in the Methodological “Tool to determine project emissions from flaring gases containing methane”. - Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: GWPCH4 No unit Globa Warming Potential for methane Global AMS AMS-III.H 21 - Data / Parameter: Data unit: Description: Source of data used: MMN2 kg/kmol Molecular mass of nitrogen As per Table 1 of the “Tool to determine project emissions from flaring gases containing methane” 28.02 - Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the - AMn kg/kmol (g/mol) Atomic mass of nitrogen As per Table 1 of the “Tool to determine project emissions from flaring gases containing methane” 14.01 - 36 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Pn Pa Atmospheric pressure at normal conditions As per Table 1 of the “Tool to determine project emissions from flaring gases containing methane” 101 325 - Ru Pa.m3/kmol.K Universal ideal gas constant 8 314.472 As per Table 1 of the “Tool to determine project emissions from flaring gases containing methane - Tn K Temperature at normal conditions As per Table 1 of the “Tool to determine project emissions from flaring gases containing methane 273.15 - - 37 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or MVn m3/kmol /k Volume of one mole of any ideal gas at normal As per Table 1 of the “Tool to determine project emissions from flaring gases containing methane 22.414 - NAi,j Dimensionless Number of atoms of element j in component i, As per Table 1 of the “Tool to determine project ect emissions from flaring gases containing methane Depending on molecular structure - Q steam, boiler TPH Quantity of steam generated gene by bunker based boiler Manufacturer data 9.315 (20,700 lb/h ) - P steam, boiler bar Pressure generated by bunker based boiler Manufacturer data 11 (153 psi) - 38 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: T boiler °C Steam temperature generated by bunker based boiler Manufacturer data 182 182.22(360°F) - ȃ boiler % Efficiency of the boiler using fossil fuel that would have been used in the absence of the project activity Calculated % 84% This value has been used to calculate the baseline emission from heat production. EFCO2 tCO2/TJ CO2 emission factor per unit of energy of the bunker nker that would have been used in the baseline plant and in the project emissions calculation IPCC (Volume 2, Chapter 1, Table 1.4) 75.5 (lower ( value ) IPCC value has been chosen for conservative estimation and because no local or regional data is available. - 39 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Data / Parameter: Data unit: Description: Source of data used: EFCO2 tCO2/MWh Grid Emission Factor Calculated value as per “Tool to calculate the emission factor for an electricity system” (Version 02) 0.6699 699 (average of 3 years 2007, 2008 and 2009) (Please refer to Annex 3 for detailed information) The project activity involves displacement of grid electricity. As per the “Tool to calculate the emission factor for an electricity system” (Version 02.2.1), the EF of the he Panamanian grid is calculated based on the weighted average of the emissions of the current generation mix in tCO2/MWh. The data used is the most recently available at the time of the PDD preparation. Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: B.6.3 Value is calculated ex-ante ex and is fixed xed during the first crediting period. Ex-ante ante calculation of emission reductions: Emission Reductions associated with the methane recovery component (as per AMS-III.H): AMS Baseline Emissions treatment systems affected by the project a) Methane emissions from the baseline wastewater treatment (BEww,treatment,y) are calculated below: Parameter Value Description Source Volume of wastewater treated in baseline wastewater treatment system i in year y (m3) Distillery design specifications (2) Q ww, i, 2013 = 1 110,814 COD inflow, i, 2013 = 0 0.0584 88.7% ηCOD,BL,i MCF ww, treatment, BL, i = 0.8 B o, ww = 0.25 UF BL = 0.89 GWP CH4 = 21 Chemical oxygen demand of the wastewater inflow to the baseline treatment system i in year y (tonnes/m3) COD removal efficiency of the baseline treatment system i Methane correction factor for baseline wastewater treatment systems i Methane producing capacity of the wastewater Model correction factor to account for model uncertainties Global Warming Potential for methane Measurement campaign Calculated MCF values as per table III.H.1 IPCC value of 0.25 kg CH4/kg COD AMS-III.H AMS-III.H BEww,treatment, 2013= 110,814m3/y*0.0584 tonnes/m3*88.7%*0.8*0.25 CH4/kg COD*0.89*21= BEww,treatment, 2012= 24,009 tCO2e/y 40 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board BEww,treatment,y forecast for 20112-2018 is presented below: BEwww,treatment,y (tCO2/y) 2013 201 2014 2015 2016 20117 24,009 25,602 25,602 25,602 25,602 Table 9: BEww,treatment,y forecast for 2013-2019. 2018 25,602 2019 25,602 Baseline emissions (BEy) are: Parameter (1) Value Source BEy =(BE =( power, y +BE ww,treatment y +BE s, treatment, y +BE ww,discharge,y+ BE s, final, y) BE power, 2013 = 0 BE ww,treatment 2013 = 24,009 BE s, treatment, 2013 = 0 BE ww,discharge,2013 = 0 BE s, final, 2013 Description = 0 Baseline emissions from electricity or fuel consumption in year y (tCO2e) Baseline emissions of the wastewater treatment systems affected by the project activity in year y (tCO2e) Baseline emissions of the sludge treatment systems affected ed by the project activity in year y (tCO2e) Baseline methane emissions from degradable organic carbon in treated wastewater discharged into sea/river/lake in year y (tCO2e). Baseline methane emissions from anaerobic decay of the final sludge produced in year y (tCO2e). If the sludge is controlled combusted, disposed in a landfill with biogas recovery, or used for soil application in the baseline scenario, this term shall be neglected. As per Section B.6.1 Calculated from equation (2) As per B.6.1 Section As per B.6.1 Section As per B.6.1 Section BE2013 = 24,009 tCO2e/y BEy forecast for 2013-2019 is presented below: BEy (tCO2/y) 2013 2014 2015 2016 2017 24,009 25,602 25,602 25,602 25,602 Table 10: BEy forecast for 2013-2019 2018 25,602 2019 25,602 Project Activity Emissions Methane emissions from biogas release in capture systems (PEfugitive,y ) are calculated as per the following equation: (4) Where: 41 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board PE fugitive,ww ,y PE fugitive, s, y Fugitive emissions through capture inefficiencies in the anaerobic wastewater treatment systems in the year y (tCO2e) Fugitive emissions through capture inefficiencies in the anaerobic sludge treatment systems in the year y (tCO2e) The equation (4)) is simplified as follows as the Project does does not involve methane recovery from sludge treatment and thus PEy,fugitive,s are not relevant to the project. (5) PEy,fugitive,ww is given by: (6) Where MEP ww, treatment, y is calculated as follows: Parameter Value Description Source (7) Q ww, i, 2013 = 1 110,814 Volume of treated wastewater discharged in year y (m3) The he chemical oxygen demand removed (difference of inflow COD and the outflow COD) by the treatment system k of the project activity equipped with biogas recovery in the year y (tonnes/m3) Methane correction factor based on discharge pathway in the baseline situation of the wastewater (fraction). Distillery design specifications UEM Group estimations COD removed, PJ, k, 2013 = 0.0 0.03799 MCFww, treatment, PJ, k = 0.8 B o, ww = 0.25 Methane producing capacity of the wastewater IPCC value of 0.25 kg CH4/kg COD UF PJ = 1.12 Model correction factor to account for model uncertainties AMS-III.H MCF values as per table III.H.1 MEP ww, treatment, 2013= 110,814 8140 m3/y*0.25 kg CH4/kg COD*1.12* 0.03799 tonnes/m3*0.8= 1,054tonnes Consequently: Parameter Value Description (6) 42 Source PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board CFE ww = 0.9 MEP ww, treatment, 2013 = 1,054 GWP CH4 = 21 Capture efficiency of the biogas recovery equipment in the wastewater treatment systems Methane emission potential of wastewater treatment systems equipped with biogas recovery system in year y (tonnes) Global Warming Potential for methane AMS-III.H Calculated from equation (7) AMS-III.H PEfugitive,ww,2013 fugitive,ww,201 = (1-0.9)*1,054 tonnes*21= 2,213tCO tCO2e/y PEfugitive,ww,y forecast for 2013--2019 is presented in the following table: PEfugitive,ww,y (tCO2/y) 2013 2014 2015 2016 2017 2018 2019 2,213 2,360 2,360 2,360 2,360 2,360 2,360 Table 11: PEfugitive,ww,y forecast for 2013-2019 The project activity emissions from the Systems affected by the project activity are: Parameter (3) PE power, 2013 Value Description PEy =(PE =( power, y +PE ww,treatment y+PE PEfugitive, y+ PE biomass, y+ PEflaring, y) = 0 PEww,treatment,2013 = 0 PE s, treatment, 2013 = 0 PE ww,discharge,2013 = 0 PE s, final, 2013 = 0 PEfugitive,2013 = 2,213 PEbiomass,2013 = 0 PEflaring,2013 = 0 s, treatment, y Source + +PE ww,discharge,y+ Emissions from electricity or fuel consumption in the year y (tCO2e) Methane emissions from wastewater treatment systems affected by the project activity, and not equipped ipped with biogas recovery, in year y (tCO2e). Methane emissions from sludge treatment systems affected by the project activity, and not equipped with biogas recovery, in year y (tCO2e). Methane emissions from degradable organic carbon in treated wastewater in year y (tCO2e) Methane emissions from anaerobic decay of the final sludge produced in year y (tCO2e). Methane emissions from biogas release in capture systems in year y (tCO2e) Methane emissions from biomass stored under anaerobic conditions (tCO2e) Methane emissions due to incomplete flaring in year y as per the “Tool to determine project emissions from flaring gases containing methane” (tCO2e) PE2013 = 2,213 tCO2e/y 43 PE s, final, y+ As per Section B.6.1 As per Section B.6.1 As per Section B.6.1 As per Section B.6.1 As per Section B.6.1 Calculated as per equation (6) As per Section B.6.1 As per Section B.6.1 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board PEy forecast for 2013-2019 is: PEy (tCO2/y) 2013 2014 2015 2016 2017 2,213 2,360 2,360 2,360 2,360 Table 12: PEy forecast for 2013-2019 2018 2,360 2019 2,360 Leakage Emissions LEy=0. Emissions Reductions (14) ER 2012, ex ante= 24,009 - (2,213- 0) = 21,796 tCO2e/y The ex ante emission reductions associated with the methane recovery component for the first crediting period is presented in the following table: 2013 2014 2015 2016 2017 2018 Estimation of emission reductions (tCO2e) 21,796 23,242 23,242 23,242 23,242 23,242 2019 23,242 Total (tonnes of CO2e) 161,248 Year Table 13:: Emission reductions associated with methane recovery - 1st crediting period Emission Reductions associated with the electricity generation component (as per AMS-I.C): A According to Section B.6.1, baseline emission related to heat production can be estimated as follows: (17) 44 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Net quantity of steam/heat supplied by the project activity (EG thermal, y) Steam consumption8 Steam enthalpy EG thermal,y Tons MJ/t TJ 2013 2014 2015 2016 2017 2018 2019 15,094 15,094 15,094 15,094 15,094 15,094 15,094 2,436 36. 36.8 2,436 36 36.8 2,436 36. 36.8 2,436 36. 36.8 2,436 36. 36.8 2,436 36. 36.8 2,436 36. 36.8 TOTAL 257.4 Table 14:: Net quantity of thermal energy energy supplied by the project activity As per equation (17),.. baseline emissions are calculated by multiplying the emission factor of the fossil used in the baseline by the total steam/heat energy produced in the project activity and divided by the baseline boiler’s efficiency. The bunker C EF is 75.5 tCO2/TJ9 Baseline emissions for heat production are shown below: EF Bunker η BL,thermal tCO2 tCO2/TJ 2013 2014 2015 2016 2017 2018 2019 BE thermal,CO2, y 75.5 75.5 75.5 75.5 75.5 75.5 75.5 84% 3,306 306 84% 3,306 306 84% 3,306 306 84% 3,306 306 84% 3,306 306 84% 3,306 306 84% 3,306 306 TOTAL 23,139 Table 15:: Baseline emissions related to heat productiont (BEthermal,CO2,y) 8 Based on estimations on the increase of alcohol alco production. 9 IPCC default values (Volume 2, Chapter 1, Table 1.3) 45 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Baseline emissions due to electricity generation from biogas EGy has been estimated as the total electricity generated by the used of biogas. As the grid Emission Factor is:: 0.6699 tCO2/MWh, the he emission reductions from the electricity generated are: 2013 2014 2015 2016 2017 2018 2019 Energy generated from biogas10 MWh EF grid BEy,EG tCO2/MWh tCO2 10,435 10,435 10,435 10,435 10,435 10,435 10,435 0.6699 0.6699 0.6699 0.6699 0.6699 0.6699 0.6699 6,991 6,991 6,991 6,991 6, 6,991 6,991 6,991 TOTAL 48 48,934 Table 16: Baseline emissions for electricity produced from biogas (BEy,EG). According to equation (19), the total baseline emissions are calculated as follows: follows: 2013 2014 2015 2016 2017 2018 2019 019 BE thermal, y BE electricity,y tCO2 tCO2 Total otal Baseline aseline Emissions missions Energy component tCO2 3,306 3,306 3,306 3,306 3,306 3,306 3,306 6,991 6,991 6,991 6,991 6,991 6,991 6,991 10,296 10,296 10,296 10,296 10,296 10,296 10,296 72,073 073 TOTAL 23,139 48,934 Table 17: Baseline emissions-Energy Energy generation component 10 As per estimations from UEM Group (technology provider) 46 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Project Emissions PEy= 0 tCO2e Leakage Emissions LEy=0. Emissions Reductions Since PEy and LEy= 0 tCO2e: ERy = BEy (21) The forecast emission reductions associated with the energy generation component for the first crediting period is presented in the following table: Year Energy Generation Estimation of emission reductions (tCO2e) 2013 2014 2014 2015 2016 2017 2018 10,296 10,296 10,296 10,296 10,296 10,296 10,296 2019 72,073 Total (tonnes of CO2e) Table 18: Emission reductions associated with energy e generation - 1st crediting period B.6.4 Summary of the ex-ante ex estimation on of emission reductions: Year Estimation of project activity emissions (tCO2e) Estimation of baseline emissions (tCO2e) Estimation of leakage (tCO2e) Estimation of emission reductions (tCO2e) 2013 2014 2015 2016 2017 2,213 2,360 2,360 2,360 2,360 34,305 35,898 35,898 35,898 35,898 0 0 0 0 0 32,092 33,538 33,538 33,538 33,538 2018 2,360 35,898 0 33,538 2019 Total (tonnes of CO2e) 2,360 35,898 33,538 16,372 249,693 0 0 47 233,320 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board B.7 Application of a monitoring methodology and description of the monitoring plan: B.7.1 Data and parameters monitored: All monitored data needed for verification will be kept for two years, at least, after the end of the crediting period or the last issuance of CERs. Data / Parameter: Data unit: Description: Source of data to be used: Value of data: Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data Continuous operation of the equipment/system e On--site checking. Annual check of all appliances or a representative sample thereof to ensure that tha they are still operating or are replaced by an equivalent in service appliance As per the existing data management system. - Qww,j,y m3/month Flow of wastewater Distillery design specifications As per Table 11: 2011 2012 2013 2014 2015 2016 2017 2018 2019 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Vinasse (m3/year) 110,814 116,765 123,849 132,066 132,066 132,066 132,066 132,066 132,066 Monitored continuously with a flow meter to be installed upstream of the digesters. The flow meter will undergo maintenance/calibration maintenance/calibration in accordance with the manufacturer’s specifications. - 48 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: CODinflow,i,y tonnes/m3 Chemical oxygen demand removed by project wastewater treatment system k of the project activity equipped with wit biogas recovery in year y (tonnes/m3), calculated as the difference between inflow COD and the outflow COD in system k. Directly measured by Varela Hermanos. 0.0584 584 Samples and measurements will ensure a 90/10 confidence/precision level. The results will be monthly recorded. Sampling and analysis will be carried out according to internationally recognized procedur COD will be measured though representative sampling procedures.COD - CODremoved,PJ,k,y tonnes/m3 Chemical oxygen demand removed by project wastewater treatment system k of the project activity equipped with biogas b recovery in year y (tonnes/m3), calculated as the difference between inflow COD and the outflow COD in system k. Directly measured by Varela Hermanos. 0.0379 379 Calculated based on samples that will be taken upstream and downstream the digester. Samples and measurements will ensure a 90/10 confidence/precision level. level The results will be monthly recorded. Sampling and analysis will be carried out according to internationally recognized procedures.COD will be measured though representative sampling procedures.COD - Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: - Data / Parameter: Data unit: Description: FVRG Nm m3 biogas/year Amount of biogas recovered at normal conditions Sfinal,PJ,y tonnes/year Amount of sludge generated by the th project activity On--site measurement 0 The end-use end use of the final sludge will be monitored during the crediting period. 49 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment. On--site measurement N/A -this parameter is not relevant for the purpose of the ex-ante calculation Monitored continuously using a normalized flow meter. Results will be monthly recorded on a record sheet. Flow meter will be periodically periodically calibrated according to the manufacturer’s recommendations. - Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: FVFL Nm m3biogas/year Surplus biogas sent to flare system On--site measurement Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: fvCH4,RG Fraction Volumetric fraction of CH4 in the residual gas in the hour h. On--site measurement Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: Tflare °Celsius Celsius Temperature in the exhaust gas of the flare. On--site measurement N/A -this his parameter is not relevant for the purpose of the ex-ante calculation Measured continuously by flow meters. Results will be monthly recorded on a record sheet. Flow meters will undergo maintenance/calibration according to the manufacturer’s recommendations. - N/A- as it is not relevant for the purpose of ex ante calculations N/A Measured with a continuous analyser that can directly measure methane methan content in the biogas. biogas Results will be monthly recorded on a record sheet. The gas analyser will undergo maintenance/calibration subject to appropriate industry standards. The methane content measurement will will be carried out close to the location where the biogas flow measurement takes place. N/A- this parameter is not relevant for the purpose of the ex-ante estimation. N/A Continuously measured and hourly recorded on a record sheet. sheet 50 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board QA/QC procedures to be applied: Any comment: The thermocouples t will be replaced or calibrated every year. year - Data / Parameter: Data unit: Description: Source of data to be used: Value of data: Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Q,steam,p,y Tonnes/year Quantity of steam supplied by the project activity during the year y On--site measurement Data / Parameter: Data unit: Description: Source of data to be used: Value of data: Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Psteam, boiler bar Pressure of steam extracted from the boiler On--site measurement 15,094 Continuously measured, integrated hourly and at least monthly recorded on a record sheet. As per the existing data management system. This parameter is measured at the outlet of the boiler. 11 Continuously measured, integrated hourly and at least monthly recorded on a record sheet. As per the existing data management system. This parameter is measured meas at the outlet of the boiler. This parameter is required to determine enthalpy of the steam. Data / Parameter: Data unit: Description: Source of data to be used: Value of data: Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: T steam, boiler, °C Temperature of steam extracted from the boiler On--site measurement Data / Parameter: Data unit: T feedwater, °C 182.22 Continuously measured and at least monthly recorded on a record sheet. As per the existing data management system. Thiss parameter is measured at the outlet of the boiler. This parameter is required to determine enthalpy of the steam. 51 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Description: Source of data to be used: Value of data: Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Temperature of feedwater On--site measurement 82 Continuously measured and at least monthly recorded on a record sheet. As per the existing data management system. This parameter parameter is required to determine enthalpy of the steam. Data / Parameter: Data unit: Description: EGthermal,y TJ/year Source of data to be used: Value of data: Description of measurement methods and procedures to be applied: On--site measurement Net quantity of thermal energy supplied by the project activity during the year y. 36.8 The following calculation will be made at least once a year. - The feed-water water temperature will be used to determine the feed-water feed enthalpy using standard steam table. - The steam pressure and the steam temperature will be used to determine the steam enthalpy using standard steam table. - The amount of feed-water water will be multiplied by the feed-water feed enthalpy to calculate the amount of energy containing in the feed-water. feed - The amount of steam produced will be multiplied by the steam enthalpy to calculate the amount of steam energy produced. Net quantity of steam supplied by the project activity = the amount a of steam energy produced minus the amount of energy containing in the feed-water. feed QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: As per the existing data management system. - EG BL,y MWh/year Quantity of net electricity produced with the biogas in year y On--site measurements. 10,435 Monitored continuously using electricity meters. (Hourly measurement and monthly recording). Electricity meters will will undergo maintenance/calibration in accordance with appropriate industry standards. - 52 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board B.7.2 Description of the monitoring plan: The project is operated and managed by Varela Hermanos which ensures the overall site operation safety in accordance ccordance with Panamanian Laws and technology providers’ guidelines. Eng. José Javier Dopeso, Director of Operations of Varela Hermanos, will establish a CDM team dedicated to the project roject activity monitoring. The Board of Directors of Varela Hermanos willl appoint a CDM coordinator later on. The responsibility of the CDM coordinator will cover the following items: 1. Monitoring equipment compliance checks, check , ensuring that instrumentations and devices are available and properly suited to perform their functions for emission reduction monitoring; 2. Development, execution, analysis and improvement of the Standard (CDM) Monitoring/Reporting Procedures; 3. Deployment of the procedures through trainings, ensuring that these procedures are fully complied with; 4. Communicationn and coordination between and among multiple departments in the company and at group levels to disseminate CDM related information; 5. Check the calculation of the emission reductions ; 6. Reporting of the emissions reductions calculation ; 7. Liaison with a DOE during the verification. For more detailed information on the data and parameters monitored, monitored, please refer to Section B.7.1. It is worth mentioning that all monitored parameters will be stored for a period of 2 years after the end of the crediting period. B.8 Date of completion of the application of the baseline and monitoring methodology and the name of the responsible person(s)/entity(ies) Date of completion: 14/11/2011 Name of entity determining the baseline: ecosur america S.A. Cabrera 6009 -1414 Buenos Aires, Argentina Tel. +54 11 4776 4406 Fax +54 11 6379 1992 ecosur america is not a project participant but the CDM consultant. Contact information of the persons responsible for the baseline calculation and the monitoring plan elaboration: MSc. Eng.. María Belén MIGONE b.migone@ecosur-america.com america.com 53 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board SECTION C. Duration of the project activity / crediting period C.1 activity Duration of the project activity: C.1.1. Starting date of the project activity: activity According to the “Glossary of CDM terms”, the the starting date of a CDM project activity is the earliest date at which either the implementation or construction or real action of a project activity begins. The project has not been implemented nor constructed constructe yet. Only a pre-feasibility feasibility study has been undertaken. Thus, there is no starting date of the project. C.1.2. Expected operational lifetime of the project activity: 20 years. C.2 Choice of the crediting period and related information: wable crediting period C.2.1. Renewable C.2.1.1. Starting date of the first crediting period: The crediting period starts upon the effective date of registration of the CDM project activity, activity which is expected to be on 10/10/2012, or the commissioning of the wastewater treatment plant, whichever comes later. C.2.1.2. Length of the first crediting period: 7 years C.2.2. Fixed crediting period: period C.2.2.1. Starting date: C.2.2.2. Length: N/A N/A SECTION D. Environmental impacts >> D.1. If required by the host Party, Par documentation on the analysis of the environmental impacts of the project activity: The project activity requires presenting an Environmental Impact Assessment to ANAM (Ministry of Environment) category I – the simplest one. This assessment (EIA) is presently being conducted by local environmental consultants and should be presented to local authorities in a few weeks. weeks 54 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board D.2. If environmental impacts are considered significant by the project participants or the host Party, please provide conclusions clusions and all references to support documentation of an environmental impact assessment undertaken in accordance with the procedures as required by the host Party: Noo negative environmental impacts are expected due to the implementation of the project activity. SECTION E. Stakeholders’ comments E.1. Brief description how comments by local stakeholders have been invited and compiled: A meeting with the local stakeholders was conducted on November 1st, 2011 at the Municipal Palace of Pesé. Stakeholders rs were invited to attend the meeting via letter, letter, phone calls and emails. emails The invitation letters were sent to people that could have interest, be affected by or have issues in relation to the project (local leaders, government civil servants and state officials, offi local industries and the media). In addition, a newspaper article was published on October 23rd in “La La Prensa”, Prensa the main national daily newspaper,, declaring the date, time, venue and topic of the meeting. meeting Also, several announcements posters were placed in the surroundings of the distillery and the Municipality of Pesé.. The following pictures show the location of some of these posters. Figure 7:: Pictures showing locations of the posters announcing the meeting 55 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board The meeting started at 1.30 pm. pm All guests were registered and received a non-technical non summary of the project (in Spanish) before the meeting. meeting Afterwards, Eng. José J. Dopeso, Director of Operations of Varela Hermanos, gave a welcome speech and presented the project and its benefits including the reduced environmental impacts. Mr. Timothée Lazaroo, managing partner of ecosur america, america introduced the CDM and explained how the project is going to reduce GHG emissions. emissions Figure 8:: Scenes from the Local Stakeholder Consultation Meeting After all the aspects of the project were presented to the participants, they were discussed by the stakeholders and some of them asked questions about the CDM. CDM All the participants were askedd to fill fi in a project evaluation form which aimed at valorising the main aspects of the project activity (from 1 to 5)11 and collect stakeholders concerns and expectations about the project: project 1- Biogas valorisation from the vinasse treatment 11 The complete evaluation forms are available for DOE consultation. 56 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board 234567- Electricity production through t biogas combustion Creation of permanent and stable jobs Stimulation of the local economy (development of new business) Improvement of local air quality (reducing unpleasant odours) Organic fertilizers production Decrease of the outflow of foreign exchange exchange capital by reducing the import of fossil fuels. The overall response to the project was encouraging and positive. All the hearings were held in Spanish. E.2. Summary of the comments received: Stakeholders were mostly curious about the CDM Mechanism Mechanism and the Kyoto Protocol. Mr. Timothée Lazaroo gave details on it and explained how the system works. Other concerns involved knowing the benefits that the project will bring to the area and the surrounding communities. Eng. José Dopeso explained that the project will: 1- reduce the methane emissions emission released to the atmosphere; 2- reduce odours that have been affecting the surrounding communities; 3- improve the technicians and operators’ operators knowledge about this new technology; technology and 4- have a multiplier effect on the implementation i of new plants similar to Varela Hermanos. H Some questions were asked about the type of new jobs that the project will be creating creat and how local workers that could ould be involved in this project operation would be trained. A detailed detail response of the number of engineers and technical al workers to be contracted has been provided and it was explained that local workers will be trained by UEM Group staff in a later stage. Other participants asked how the CDM could benefit their own activities (farming, fruit growing, land use and forestry...), and what were the specific requirements for developing CDM projects. Extensive information and responses have been provided to the attendees in that regard. All the explanations given during the meeting allowed the he participants to understand that the project directly benefits the local community. E.3. Report on how due account was taken of any comments received: As stated in Sections E.1 and E.2., E.2., stakeholders consider the CDM project has positive impacts as a whole. Therefore, it is unnecessary to take additional measures. 57 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Annex 1 CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY Organization: Street/P.O.Box: Building: City: State/Region: Postfix/ZIP: Country: Telephone: FAX: E-Mail: URL: Represented by: Title: Salutation: Last Name: Middle Name: First Name: Department: Mobile: Direct FAX: Direct tel: Personal E-Mail: Varela Hermanos S.A. P.O. BOX 0819-07757 0819 N/A Panama Pana anama N/A República de Panama (507) 337-4000 337 (507) 377-4009 377 jjdopeso@varelahermanos.com www.varelahermanos.com Eng. Luis J. Varela Jr. Executive Vice-president Vice Varela José Luis Gerencia General (507) 6670-8999 6670 (507) 377-4009 377 (507) 377-4003 377 ljvarela@varelahermanos.com 58 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Annex 2 INFORMATION REGARDING PUBLIC FUNDING This Project does not receive any public funding from Annex I Parties. 59 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Annex 3 BASELINE INFORMATION PANAMANIAN AMANIAN GRID EMISSION FACTOR CALCULATION Tool to calculate the emission factor for an electricity system” system (Version 2.2.1). Application of the “Tool According to the tool, the Emission Factor calculation comprises the following steps: STEP 1. Identify the relevant levant electricity systems. STEP 2. Choose whether to include off-grid off grid power plants in the project electricity system (optional). STEP 3. Select a method to determine the operating margin (OM) factor. STEP 4. Calculate the operating margin emission factor according to the selected method. STEP 5. Calculate the build margin (BM) emission factor. STEP 6. Calculate the combined margin (CM) emissions factor. Step 1. Identify the relevant electric power system The following map shows that the Panamanian electricity city grid is interconnected: power plants are physically connected through transmission and distribution lines to the project activity. Therefore, the relevant electric power system is the national grid. Figure 9: Map of the Panamanian electrical grid.12 STEP 2. Choose whether to include off-grid off grid power plants in the project electricity system (optional). Project participants may choose between the following two options to calculate the operating margin and build margin emission factor: 12 http://www.etesa.com.pa/plan_expansion.php?act=mapa 60 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Option I: Only grid power plants are included in the calculation. Option II: Both grid power plants and off-grid off grid power plants are included in the calculation. Since off-grid grid power generation plants in Panamá is not significant, Option I has been chosen for the Emission Factor calculation. Therefore, only grid power plants have been considered. This is stated in the paragraph 2 of the Step 2 of the “Tool Tool to calculate the emission factor for an electricity system” system (Version 02). Step 3. Select a method od to determine the operating margin (OM) factor. The calculation of the operating margin emission factor (EFgrid,OM,y) is based on one of the following methods: (a) Simple OM, or (b) Simple adjusted OM, or (c) Dispatch data analysis OM, or (d) Average OM. The Simple OM method (a) can be used when low-cost/must low cost/must run resources constitute less than 50% of the total amount of the power generation on the grid, in average of the five most recent years. According to Panama’s National Dispatch Centre, the total total electrical power generation of Panama in 2009 is 5,976 GWh, in which hydro power generation is 3,588 GWh accounting for 60.0% of power generation (Table ( 19). Therefore, the Panamanian generation system is dominated dominated by hydro power. Thus, method (a) is not applicable. Total Grid generation [GWh] Hydro [GWh] Share of hydro [%] 2005 5,088 3,418 2006 5,025 3,197 2007 5,517 3,324 2008 5,562 3,712 2009 5,976 3,588 67.2% 63.6% 60.3% 66.7% 60.0% Table 19:: Share of hydroelectric production in Panama, 2005-2009. 2005 The method (b), simple adjusted OM emission factor (EFgrid,OM-adj,y) is a variation of the simple OM, where the power plants/units (including imports) are separated in low-cost/must-run low n power sources (k) ( and other power sources (j). ). Simple adjusted OM is based on data on net electricity generation of each power plant unit and on total fuel consumption. These data are publicly available therefore, method (b) is chosen. The method (c) requires quires hourly fuel consumption and energy efficiency for each plant of the Panamanian grid. To date, this data is not publicly available. Method (c) is therefore not applicable. Method (d) is not chosen by the Project Participant. According to the tool, for or the simple OM, the simple adjusted OM and the average OM, the emissions factor can be calculated using either of the two following data vintages: • Ex ante option: If the ex ante option is chosen, the emission factor is determined once at the validation stage, tage, thus no monitoring and recalculation of the emissions factor during the crediting period is required. For grid power plants, use a 3-year 3 generation-weighted weighted average, based on the most recent data available at the time of submission of the CDM-PDD CDM PDD to the DOE for validation. For off-grid grid power plants, use a single calendar year within the 5 most recent calendar years prior to the time of submission of the CDM-PDD CDM for validation. • Ex post option: If the ex post option is chosen, the emission factor is determined de for the year in which the project activity displaces grid electricity, requiring the emissions factor to be updated annually during monitoring. If the data required to calculate the emission factor for year y is 61 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board usually only available later than six s months after the end of year y,, alternatively the emission factor of the previous year y-1 may be used. If the data is usually only available 18 months after the end of year y,, the emission factor of the year preceding the previous year y-2 may be used. The same data vintage (y, y-11 or y-2)) should be used throughout all crediting periods. The ex-ante option is chosen, and EFOM is fixed during the crediting period. STEP 4. Calculate the operating margin emission factor according to the selected method. (b) Simple Adjusted OM The simple adjusted OM emission factor (EF ( grid,OM-adj,y)) is a variation of the simple OM, where the power plants/units (including imports) are separated in low-cost/must-run low run power sources (k) ( and other power sources (m). As under Option A of the simple OM, it is calculated based on the net electricity generation of each power unit and an emission factor for each power unit, as follows: Where: EFgrid,OM-adj,y λy EGm,y (MWh) EGk,y (MWh) EFEL,m,y EFEL,k,y m k y Simple adjusted operating margin CO2 emission factor in year y (tCO2/MWh) Factor expressing the percentage of time when low-cost/mustlow -run power units are on the margin in year y Net quantity of electricity generated and delivered to the grid by power unit m in year y Net quantity of electricity generated and and delivered to the grid by power unit k in year y CO2 emission factor of power unit m in year y (tCO2/MWh) CO2 emission factor of power unit k in year y (tCO2/MWh) All grid power units serving the grid in year y except low-cost/must t/must-run power units All low-cost/must cost/must run grid power units serving the grid in year y The relevant year as per the data vintage chosen in Step 3 As low-cost and must-run run sources are only composed of hydro in Panama, the second term of the equation equat above is not considered ( for hydro = 0). Net electricity imports must be considered low-cost low / must-run plants. is defined as follows: Lambda (λy) should be calculated as follows: 62 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Step i) Plot a load duration curve. curve Collect chronological load data (typically in MW) for each hour of the year y, and sort the load data from the highest to the lowest MW level. Plot MW against 8760 hours in the year, in descending order. Step ii) Collect power generation data from each power power plant / unit. Calculate the total annual generation (in MWh) from low-cost/must-run run power plants / units (i.e. Σk EGk,y). Step iii) Fill the load duration curve. Plot a horizontal line across the load duration curve such that the area under the curve (MW times hours) equals the total generation (in MWh) from low-cost/must-run low power plants / units (i.e. Σk EGk,y). Step iv) Determine the “Number of hours for which low-cost/must-run low run sources are on the margin in year y”. First, locate the intersection of the horizontal line plotted in step (iii) and the load duration curve plotted in step (i). The number of hours (out ut of the total of 8,760 8 760 hours) to the right of the intersection is the number of hours for which low-cost/must-run run sources are on the margin. If the lines do not intersect, then one may conclude that low-cost/must-run run sources do not appear on the margin and a λy is equal to zero. Load duration curves 1 200 800 600 400 200 0 1 252 503 754 1005 1256 1507 1758 2009 2260 2511 2762 3013 3264 3515 3766 4017 4268 4519 4770 5021 5272 5523 5774 6025 6276 6527 6778 7029 7280 7531 7782 8033 8284 8535 Generation (MWh) 1 000 Hour Total generation Generation from low-cost/must-run Figure 10: Load duration curve for the year 2007. 63 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 1100 1000 900 800 700 600 500 400 300 200 100 0 1 351 701 1051 1401 1751 2101 2451 2801 3151 3501 3851 4201 4551 4901 5251 5601 5951 6301 6651 7001 7351 7701 8051 8401 8751 Generation (MWh) CDM – Executive Board Hour Total generation Generation from low-cost/must-run Figure 11: Load duration curve for the year 2008. 1200 Generation (MWh) 1000 800 600 400 0 1 252 503 754 1005 1256 1507 1758 2009 2260 2511 2762 3013 3264 3515 3766 4017 4268 4519 4770 5021 5272 5523 5774 6025 6276 6527 6778 7029 7280 7531 7782 8033 8284 8535 200 Hours Total generation Generation from low-cost/must-run Figure 12: Load duration curve for the year 2009. Lambda values for Simple Adjusted OM Method λ 2007 2008 2009 0.00% 0.00% 0.00% 64 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board OM emission factor Name of Power Plant BLM 2 BLM 3 2007 2008 2009 Electricit Electricit EFEL,m,y y Emissions y Emissions Emissions [tCO tCO2/MW Generati [tCO2/yea Generati [tCO2/yea 2009 [tCO2/yea h] on r] on r] r] [MWh] [MWh] 1,147 184 383 211 488 127 484 146 224 18 200 20 875 110 1,127 172 243 194 118 117 459 132 377 762 124 829 BLM 4 1,178 152 744 179 933 85 697 BLM 5 (JB5) 1,243 1 419 1 764 2 086 2 593 1 949 2 422 BLM 6 (JB6) 1,27 339 431 695 882 1 642 2 086 BLM 8 1,133 10 143 11 492 5 469 6 197 8 052 Ciclo Combinado (Ciclo) 0,684 544 457 372 408 310 197 212 175 235 513 PAN_AM 0,666 678 216 451 692 629 783 419 436 7 107 344 317 662 821 Copesa TG Panama (PanG EGESA) 1,175 64 346 75 606 72 065 84 676 15 707 18 456 1,494 4 275 6 387 15 987 27 981 Pacora 0,672 380 969 256 011 413 264 Cativa (IDB) 0,659 0 0 69 595 23 885 18 729 437 277 713 124 488 45 863 574 Cativa II (GENA) 1,180 0 0 0 El Giral (T_Caribe) 0,746 0 0 0 2007 Total thermal generation 2 193 534 Total electricity supplied by relevant sources urces [MWh] (2007 + 2008 +2009) Share of total electricity supplied by relevant sources (2007 + 2008 +2009) OM emission factor [tCO2/MWh] /MWh 2008 100 951 91 775 0 61 723 126 0 788 2009 1 849 781 2 387 218 6 430 534 34% 29% 37% 0.7755 Table 20: OM Calculation Based on 2007, 20088 and 2009, the calculated Operating Margin is: 0.7755 tCO2/MWh. /MWh 65 108 111 441 439 293 747 321 970 72 824 94 584 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board STEP 5. Calculate the build margin (BM) emission factor. According to the tool, in terms of vintage of data, project participants can choose between one of the following two options: • Option 1: For the first crediting period, calculate the build margin emission factor ex ante based on the most recent information available on units already built for sample group m at the time of CDMPDD submission to the DOE for validation. For the second crediting crediting period, the build margin emission factor should be updated based on the most recent information available on units already built at the time of submission of the request for renewal of the crediting period to the DOE. For the third crediting period,, the build margin emission factor calculated for the second crediting period should be used. This option does not require monitoring the emission factor during the crediting period. factor shall be updated annually, ex • Option 2: For the first crediting period, the build margin emission factor post,, including those units built up to the year of registration of the project activity or, if information up to the year of registration is not yet available, including those units built up to the latest year for which information ormation is available. For the second crediting period, the build margin emissions factor shall be calculated ex ante, ante, as described in Option 1 above. For the third crediting period, the build margin emission factor calculated for the second crediting period period should be used. Option 1 has been chosen. Therefore, for the first crediting period, the build margin emission factor has been calculated ex ante based on the most recent information available on units already built for sample group m at the time of CDM-PDD PDD submission to the DOE for validation. The sample group of power units m used to calculate the build margin should be determined as per the following procedure, consistent with the data vintage selected above: above (a) Identify the set of five power units, units, excluding power units registered as CDM project activities, that started to supply electricity to the grid most recently (SET5-units) and determine their annual electricity generation (AEGSET-5-units, in MWh); (b) Determine the annual electricity generation generation of the project electricity system, excluding power units registered as CDM project activities (AEGtotal, in MWh). Identify the set of power units, excluding power units registered as CDM project activities, that started to supply electricity to the grid gri most recently and that comprise 20% of AEGtotal (if 20% falls on part of the generation of a unit, the generation of that unit is fully included in the calculation) (SET≥20%) and determine their annual electricity generation (AEGSET-≥20%, in MWh); (c) From SET5-units and SET≥20% ≥20% 20% select the set of power units that comprises the larger annual electricity generation (SETsample); Identify the date when the power units in SET SE sample started to supply electricity to the grid. If none of the power units in SETsample started to supply electricity to the grid more than 10 years ago, then use SETsample to calculate the build margin. Ignore steps (d), (e) and (f). As per above, the SETsample used to calculate the BM has been chosen, using the power plant capacity additions in the electricity system that comprises 20% of the most recently added system generation since SET≥20% annual electricity generation is higher than SET5-units. Moreover, none of the the power units in SETsample started to supply electricity to the grid more than 10 years ago. Therefore, steps (d), (e) and (f) have been ignored. 66 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board The following table shows the recent capacity additions: additions Generation in Accumulated % of total 2009 generation in GWh 2009 0 0% Mendre 2009 127 2.12% El Giral (T_Caribe) 2009 62 3.15% Cativá II (GENA) 2008 489 11.33% Cativá (IDB) 2008 19 11.64% TG Panama (PAN G- EGESA) 2006 2 11.67% Candela 2003 437 18.99% Pacora 2003 303 24.05% Esti (ESTI 1) Table 21:: Recent capacity additions included in the BM calculation Name of power plant Year of operation The build margin emissions factor is the generation generation weighted average emission factor (tCO2/MWh) of all power units m during the most recent year y for which power generation data is available, calculated as follows: Where: EFgrid,BM,y EGm,y Build margin CO2 emission factor in year y (tCO2/MWh) Net quantity of electricity generated and delivered to the grid by power unit m in year y (MWh) CO2 emission factor of power unit m in year y (tCO2/MWh) Power unit included in the build margin Most recent historical historical year for which power generation data is available EFEL,m,y m y The following table shows the calculated carbon emission from the power units m: Type Generation in 2009 [MWh] Emission Factor [tCO2/MWh] Mendre El Giral (T_Caribe) Cativá II (GENA) Cativá (IDB) TG Panama (PAN G- EGESA) Candela Pacora Hydro Motor Combined Cycle Motor Gas turbine Hydro Motor 0 126 788 61 723 488 574 18 729 1 698 437 124 0,000 0,746 1,180 0,659 1,494 0,000 0, 0,672 0 94 584 72 824 321 970 27 981 0 293 747 Esti (ESTI 1) Hydro 302 871 TOTAL 1 437 507 Table 22: BM Calculation 0,000 0 Power Plant 67 CO2 Emissions [tCO2/year] 811 106 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board The calculated Build Margin is: 0.5642 tCO2/MWh. STEP 6.. Calculate the combined margin (CM) emissions factor. The calculation off the combined margin (CM) emission factor (EF ( grid,CM,y) is based on one of the following methods: (a) Weighted average CM; or (b) Simplified CM. The weighted average CM method has been preferred. Therefore, the he combined margin emissions factor is calculated as follows: EFgrid,CM,y = EFgrid, OM,y x WOM + EFgrid, BM,y x WBM EF grid, BM,y EF grid,OM,y W OM W BM Build margin CO2 Mission factor in year y (tCO2/MWh) Operating margin CO2 Mission factor in year y (tCO2/MWh) Weighting of operating margin emission factor (%) Weighting of operating margin emission factor (%) For projects (other than wind and solar power generation): wOM = 0.5 and wBM = 0.5 for the first crediting period, and wOM = 0.25 and wBM = 0.75 for the second and third crediting periods. Based on 2007, 2008 and 20099, the combined margin emission factor is 0.6699 tCO2/MWh. 68 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Annex 4 MONITORING INFORMATION No additional data to be added. Please refer to Sections B.7.1 and B.7.2 for detailed information. 69 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) (CDM - Version 03 CDM – Executive Board Annex 5 TABLES AND FIGURES Table 1: Planning data for alcohol production ................................................................ .................................................................... 7 Table 2: Current anaerobic ponds characteristics ................................................................ ............................................................... 8 Table 3: The digesters removal efficiencies ................................................................ ........................................................................ 10 Table 4: Assessment of applicability criteria for the methane recovery component. ......................................... 15 Table 5: Assessment of applicability criteria for the electricity generation component..................................... 18 Table 6: Parameters used to determine the methane recovery component baseline .......................................... 20 Table 7: Impact of CERs revenues on the Proposed Project’s IRR .................................................................... ................................ 22 Table 8: IRR fluctuation................................ ................................................................................................ ...................................................................... 22 Table 9: BEww,treatment,y forecast for 2013-2019. 2013 ................................................................ .......................................................... 41 Table 10: BEy forecast for 2013-2019 2013 ................................................................................................ ................................................ 41 Table 11: PEfugitive,ww,y ive,ww,y forecast for 2013-2019 2013 ................................................................ ............................................................ 43 Table 12: PEy forecast for 2013-2019 2013 ................................................................................................ ................................................ 44 Table 13: Emission reductions associated with methane recovery - 1st crediting period ................................... 44 Table 14: Net quantity of thermal energy supplied by the project activity ......................................................... ................................ 45 Table 15: Baseline emissions related to heat productiont (BEthermal,CO2,y) .......................................................... ................................ 45 Table 16: Baseline emissions for fo electricity produced from biogas (BEy,EG). .................................................... ................................ 46 Table 17: Baseline emissions-Energy Energy generation component ................................................................ ............................................ 46 Table 18: Emission reductions associated with energy generation - 1st crediting period .................................. 47 Table 19: Share of hydroelectric production in Panama, 2005-2009. 2005 ................................ ............................................................... 61 Table 20: OM Calculation ................................................................................................ ................................ .................................................................. 65 Table 21: Recent capacity additions itions included in the BM calculation................................................................. ................................ 67 Table 22: BM Calculation ................................................................................................ ................................ .................................................................. 67 Figure 1: Map of Panama................................ ................................................................................................ ..................................................................... 5 Figure 2: The project’s location ................................................................................................ ........................................................... 6 Figure 3: Vinasse anaerobic lagoons ................................................................................................ ................................................... 8 Figure 4: Flow diagram agram of the biogas digester system................................................................ ......................................................... 9 Figure 5: Conceptual diagram of the boundary of the project ................................................................ ........................................... 18 Figure 6: IRR fluctuation ................................................................................................ ................................ .................................................................... 22 Figure 7: Pictures showing locations of the posters announcing the meeting ................................................... ................................ 55 Figure 8: Scenes from the Local Stakeholder Consultation Meeting ................................................................. ................................ 56 Figure 9: Map of the Panamanian electrical grid. ................................................................ ............................................................. 60 Figure 10: Load duration curve for the year 2007. ................................................................ ............................................................ 63 Figure ure 11: Load duration curve for the year 2008. ................................................................ ............................................................ 64 Figure 12: Load duration curve for the year 2009. ................................................................ ............................................................ 64 ----- 70