VILLAGE EMPOWERED:
Rural Bio-energy Production as an
integrated CDM Project: Funding
Biodiesel Projects via CDM
M.P. Singh
Earthizenz
email: earthizenz@gmail.com
Geetika Kalha
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I.A.S
and
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Introduction
This paper suggests:
Application of CDM1, to all stages of bio-diesel production,
separately, and also its usage.
Further treatment of by products generated for value addition.
Plugging of leakages and avoidable emissions through waste
management of wastes generated by the project.
Extension of the waste management to the wastes of the entire
village/ project area,
area resulting in further CDM benefits to the farmer
and the village.
Integrated development of the community through their collective
participation.
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Renewable energy
CDM project
Annex I Country
Carbon Credits
Actual
emissions
Emission
cap
1)
2)
Current value
$25/CER
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Carbon Dioxide
Global Warming Potential
Methane
Global Warming Potential
Nitrous Oxide
Global Warming Potential
* tCO e
2
1*
21*
310*
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GHG emissions
emission level
(e.g. grid
baseline)
Carbon
credits
With project
emission level
Time
Project
commissioned
The
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VER Buyers
CER
buyers
Payment
(Rs/$)
CERs
Payment ($)
Payment
(Rs)
Bundling
organisation
Grant/Funds ?
Loan
Repayment
Small Scale
A/R Projects
Bio Methanation
ODA,
Government,
NGOs etc.
Financial
Institution
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Concept of VERs
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AFFORESTATION &
REFORESTATION:
APPLICATION OF CDM TO
NABARD* MODEL FOR
WASTELANDS
*National Bank for Agriculture and Rural Development, India
Total ($)
11.11
13.33
22.22
5.56
48.89
11.11
133.33
122.13
23.33
66.67
6.67
66.67
531.02
26.53
557.56
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Income
d
n
a
d
l
ie
Y
f
per Ha. O
Jatrophaion
Cultivat
Negative
beneft for
frst three
years
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Cost
15643
5668
Benefits
Net
Benefit
3780
3750
3750
7500 11250
15000
18750
-30
3750
7500 11250
15000
18750
-15643 -5668
PWC@ 15%
: 20373.84
PWB@ 15%
: 24970.74
BCR
1.23
IRR
20.20
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Enhanced
Price for
Seed to
Farmer
CDM
Interpolation
Total CDM Benefit of Rs. 90,000, proposed as advance to the farmer @ 2yrsCredits
in the 1st yr. 2yrs Credits in the 2nd and one yrs CDM each in the next 6 yrs. This
ensures returns from the year one.
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TREES/ha
(Nos)
COST
(Rs.)
LOAN
(Rs.)
TOTAL
INCOME
(8 Yrs.)
(Rs.)
IRR
%
NET
SURPLUS
8TH YEAR
(Rs.)
A : CLONAL MODEL
1000
18000
16200
36250
19.37
51496.00
B : SEEDLING MODEL
1000
15000
13500
28750
18.41
47330.00
C : DIBBLING MODEL
1000
10000
9000
26250
25.62
46250.00
D : WASTELAND
MODEL
1500
25090
22490
60000
20.20
11481.00
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Additionality
CDM
revenue
Required
return on
investment
threshold
Project return
excluding
CDM revenue
Project return
including
CDM revenue
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Additionality Test
Need to prove the project would not have happened
without CDM
Some steps in the test:
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Definition of Forest
As per COP71 (2001) through COP 10 (Feb. 2005), a
forest is:
Forest is a minimum area of land of 0.05-1.0
hectares
With tree crown cover of more than 10-30 per cent
With trees with the potential to reach a minimum
height of 2-5 meters at maturity in situ.
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Countries Choice
The choice of the foregoing parameters
was left to individual countries.
Both India and Ghana have made their
choices
India: Min area of land: .05 Ha, Single min.
tree crown cover: 30%, Min. Tree Ht.: 5m
Ghana: 1Ha, 30%, 5m
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Barriers ---Contd.
Minimum Tree height: 5m
Is Jatropha 5m?
Other Oil Bearing Trees in mixed forestry?
Can the DNA choice be changed?
Land use and land use change?
Base line methodology for A/R for land currently under
agricultural use has been approved for large scale plantation.
-EB 26 of UNFCC , 29.09.06
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Application of CDM
to
Oil Extraction
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US$ 306.98
US$ 529.20/ton
Source: Chaturvedi
(2004)
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Residue is a richer
manure
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o Studies have shown that inferior fractions of glycerol and fatty acids
when added in a controlled way to the biomethanation reactor, the result
is an accelerated and increased %age of methane.
methane
o If Methane can be captured from the fatty acids, this would mean the
production of an equally valuable Bio-fuel as bio-diesel. CDM Credits
would then accrue.
o Value addition likely to increase through new end uses of glycerin
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Fermentatio
n
1,3 propanediol
PDO
Shell
Corterra Polymers
Polytrimethylene terephthalate
Carpets
Thermoplastics
Films & Coatings
Clostridium
DuPont
Sorona (3GT)
Terephthalate
Fabrics
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f
o
s
e
s
U e
w ri n
e
N ce
y
l
G
Sorona makes a softer fiber than either polyester (PET) or nylon while still
offering other desirable attributes like superior comfort-stretch and recovery
and dyeability.
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Integrated Waste
Management at Village Level
Ecological advantages of agro-forestry are negated if the biomass
waste is allowed to decay and release methane gas into the
atmosphere.
Decay and unscrupulous burning of biomass can result in
unwanted emissions within the project boundaries.
Methane has a Global Warming Potential of 21.
Capturing and harnessing this gas can, not only generate another
biofuel, but can earn sizeable amount by way of Carbon Credits
through CDM.
Integrating the treatment of project wastes with all other wastes in
the geographical boundary (village) would have an exponential
effect on the economics of the project in addition to additional
credits under CDM to the village as a whole.
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= 2 tons/day
= 6 tons/day
= 12 tons/day
= 2 mld /day
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= 0.4tCO2/MWh
=280 tCO2
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= Rs. 40 million
= Rs. 20 million
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Jayanaryanan E.K. at the international bio fuels conference ,N. Delhi 2006
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Conclusion
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Conclusion
A truly integrated approach will have to be
followed to achieve all this.
Once this is achieved, it would ensure that
the farmer gets a good deal, the village
gets a better environment and the process
of making biodiesel becomes more cost
effective.
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Contact:
M.P. Singh
Earthizenz
earthizenz@gmail.com
mpsingh@earthizenz.org
Web Site www.earthizenz.org
www.oceanofdrops.com