Turning waste into a resource

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1 Turning waste into a resource 1

2 Veolia Environmental Services - A CDM Project Example in Alexandria Egypt - Landfill gas recovery Middle East and Northern Africa Carbon Forum Morocco, April, 2007 Gary CRAWFORD Vice President Greenhouse Gas Department 2

3 Veolia Environmental Services From collection to waste recovery 3

4 Veolia Environmental Services From collection to waste recovery also industrial outsourcing,cleaning & remediation services 4

5 Key Figures Annual Revenue : 6.6 Billion (2005) Operating in 34 Countries 80,700 employees worldwide (2005) Collected 35 million tonnes of waste Treated 58 million tonnes of waste in 698 treatment facilities Recovered 7 million tonnes of waste 4.2 Million MWh of electricity and 2.5 Million MWh of thermal energy sold 2 registered CDM projects; others in the «pipeline» 5

6 Actions to reduce GhG emissions Collection 9 Rationalise the collection operations 9 Alternative transportation 9Increase energy recovery 9 Alternative fuels 9Recovery of ash / slag Recycling 9 Develop new recycling opportunities 9 Increase recycling rates 6 Incineration Composting 9 Optimisation of aerobic conditions 9 Increase compost production Landfill 9Maximise landfill gas collection 9 Promote landfill gas to energy Hazardous Waste 9Increase the production of substitute fuels 9Increase recycling rates

7 Landfill Gas-to-Energy Energy produced (GWh) No. : Number of equipped sites ,000 MWh of energy sold in

8 Approved CDM Baseline and Monitoring Methodologies Approved methodologies in the waste sector 1 : Landfill gas Organic waste treatment (Compost, gasification; aneorobic digestion, MBT RDF production) Aerobic thermal treatment Methodologies under review : AM002, AM003, AM0010, AM0011 Consolidated Methodology : ACM0001 AM0025, AM0039 ACM006² (methodology for grid-connected electricity generation from biomass residues) Incineration NM0174 (Municipal Solid Wastes (MSW) incineration for grid-connected electricity generation/heat supply/cogeneration). This methodology is based upon a Chinese project «MSW Incineration Project in Guanzhuang, Tianjin City» Other related methodologies in Biomass / Fuel switching / Small scale project methodologies 1 Does not include approved methodologies for wastewater treatment or manure management ² This methodology is related to the Energy industries (renewable / non renewable sources) sector 8

9 Estimating CDM Project Emissions Methane emissions Baseline Uncontrolled Disposal sites No regulatory requirements to capture and treat landfill gas (LFG) 1. No systems for collecting, venting or flaring LFG or 2. A passive system for venting LFG only or 3. A passive system for venting and flaring 9

10 Estimating CDM Project Emissions Project Activity Installation of landfill gas collection and flaring system Methane capture rates (50-90%) Higher capture rates are achieved with improved liner and final cover systems, and landfill operations Possible installation of landfill gas to energy equipment 10

11 11 Onyx Alexandria CDM Project Example

12 Example : Alexandria, Egypt Global waste management and street cleaning Contract signed in September 2000 (15 years) Service started 1st October 2001 Collection and treatment of 2600 tonnes (avg.) of waste per day 12 Onyx Alexandria serves a population of 4.5 million people

13 Example : Alexandria, Egypt The contract includes : STREET CLEANING WASTE COLLECTION AND TRANSFER WASTE TREATMENT at 2 new landfills WASTE COMPOSTING at 3 composting plants 13

14 CDM Project - Alexandria, Egypt Onyx Alexandria Landfills operated as part of global waste management contract CDM Project consists of : Upgrade of the landfill gas collection system Commissioning of a leachate evaporator (Borg El Arab) Potential GhG emission reductions of approx. 3,700,000 t CO 2 eq. Sale of CERs 2005 : Signed ERPA with World Bank for first tranche of CERs (30%) 14

15 Onyx Alexandria CDM Project CDM Project Cycle Project design Documents Host Country Approval Validation Registration Completed Steps Prepared Project Design Documents; EIA completed by Consultant December 2005 Conducted Stakeholder meetings January 2006 Letter of No Objection received from the Egyptian DNA April 2006 Validation Completed June / July Received Egyptian / Spanish / French DNA LOA August Submitted PDD for Registration to the CDM Executive Board 15 December 2006 project registered! 15

16 Onyx Alexandria CDM Project CDM Project Cycle Implementation Leachate evaporator installed at the Borg El Arab landfill; flares and initial phase of collection system have been installed on both sites Monitoring Landfill gas monitoring is on-going April, Additional monitoring equipment to be installed Verification Issue CERs January, Verification process by external Verifier to be launched. First Quarter, 2008 Issue first CERs for payment. 16

17 Contributions to Sustainable Development Continued environmental improvements and controls Transfer of technology Reinforced local participation Technical training of on-site personnel Contribution to the Governorate of Alexandria for sustainable development projects 17

18 CDM Project Development - Observations / recommendations Project design Documents Future emission reductions from LFG projects are based on first order mathematical models; existing registered projects are producing less CERs than forecasted in PDDs. Models used in PDD should be : prepared by experienced modellers adapted to site-specific conditions and parameters CDM EB Rules / Methodologies / tools are evolving : Project developers must keep abreast of CDM EB Methodologies / Decisions / Clarifications 18

19 CDM Project Development - Observations / recommendations Validation Delays experienced in the Validation step. - Selection of an available DOE with sector experience - Follow-up on the established schedule - Ensure project design documents are complete : -Clearly explain compliance with the applied baseline and monitoring methodology -Ensure justification of additionality is provided 19

20 CDM Project Development - Observations / recommendations Host Government Approval Each host country establishes their own CDM approval procedures - Develop understanding of country requirements early-on in the project development process -Interface with the Designated National Authority -Ensure approval letters include the 3 points required by the CDM Guidelines : -The Party has ratified the Kyoto Protocol -The approval of voluntary participation in the project activity -Host Country : the project contributes to sustainable development 20

21 CDM Project Development Observations / recommendations Implementation Early landfill gas projects showing shortfall in delivered CERs compared to amount forecasted in the PDDs Proper landfill gas collection system design, construction and operation required to maximise CER production 21

22 CDM Project Development - Observations / recommendations Monitoring Monitoring requirements specified in CDM methodologies for LFG projects becoming more and more complex 22 - Need to ensure proper instrumentation (flowmeters, gauges, emission monitoring ) installed and calibrated according to manufacturer s specifications - Install secure data storage system and conduct routine QA/ QC Automatic control valves LFG temperature, flow and vacuum sensors

23 CDM Project Development - Observations / recommendations Verification Delays experienced in the Verification step. -Selection of an available DOE with sector experience - follow-up on the established schedule -Importance of the quality of the monitoring report submitted to the verifier 23

24 Conclusions There is significant potential for the development of CDM projects in the waste sector in the Middle East / Northern Africa Region. Revenues from CERs can contribute to the development of environmentally sound waste treatment facilities and other sustainable development benefits. VES has world-wide experience in developing GhG emission reduction projects in the waste sector. CDM projects complement our core activities. 24

25 Thank you for your attention! Gary CRAWFORD Vice President Greenhouse Gas Department 169, avenue Georges Clemenceau Nanterre Cedex, France Tel : Fax : gary.crawford@veolia-proprete.fr 25