Krubong Melaka LFG Collection & Energy Recovery CDM Project. Kajima Corporation Mitsui & Co., Ltd. Southern Waste Management Sdn. Bhd.

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1 Krubong Melaka LFG Collection & Energy Recovery CDM Project Kajima Corporation Mitsui & Co., Ltd. Southern Waste Management Sdn. Bhd.

2 1. Outline of Project Contents 2. Conformity with Malaysia National Policy 3. Financial Evaluation 4. Environment Assessment 5. Stakeholders Comments

3 1. Outline of Project

4 Outline of Project Project Activity 1. To collect LFG (landfill gas) by installing vertical & horizontal pipelines at landfill 2. To generate electricity using LFG

5 Outline of Project

6 Outline of Project

7 Outline of Project

8 General Arrangement of the Project Outline of Project Electrical Equipment and Office Building Gas Engine Generator Facility Production Well LFG Pipe φ300 : 1,024m LFG Pipe 200 : 1,432m Production Well

9 Outline of Project Time History of LFG Generation

10 Outline of Project Project Output Project Period 10 years CH 4 Daily emission 41,000 14,000 m3 Daily collection 15,000 5,000 m3 CO2 Emission Reduction Average annual reduction 60,000 ton CO2eq Power Generation 1, KW

11 Outline of Project Energy Recovery Contribution Reduction of GHG Emission Environment Conscious Landfill Closure

12 Outline of Project Example of Project Implementation & Credit Transfer Government of Japan Approval Southern Waste Management Approval Host Country Kajima/Mitsui Equity Special Purpose Company Profit CDM Project Electricity Sale Approval/Registration CDM Executive Board CER CO2 Credit

13 Outline of Project Project Schedule January, 2005 Approval from Japanese Government March, 2005 Approval from Malaysian Government Middle of 2005 Establishment of SPC Registration of CDM Project with CDM EB Early 2006 Design and Construction of the Plant January, 2007 Commencement of Operation

14 2. Conformity with Malaysia National Policy

15 Conformity Conformity with National CDM Criteria (1) (Malaysia CDM Information Handbook) 1. SD Policies of the Government Utilization of Renewable Energy Development of Renewable Energy Industries Maximum Use of Local Resources Safety Landfill Closure 2. Conditions by CDM EB Validated by OE(Japan Consulting Institute)

16 Conformity Conformity with National CDM Criteria (2) (Malaysia CDM Information Handbook) 3. Cooperation between Malaysia and Japan Equity Participation 4. Technology Transfer Benefits Evaluation Method of LFG Emissions LFG Recovery/Power Generation System 5. Direct Benefits towards Achieving SD Utilization of Renewable Energy Maximum Use of Local Resources Safety Landfill Closure

17 Conformity Examples of CDM Projects (Malaysia CDM Information Handbook) Renewable Energy Energy Efficiency Improvement Forestry Waste Management Transport

18 3. Financial Evaluation of Project

19 Financial Evaluation Financial Status without CDM Initial Costs RM 14,200,000. O & M Costs per Year RM 1,250,000. Revenue for 10 Years 83,000 MWh RM 0.17 per KWh IRR Negative

20 Financial Evaluation Financial Status with CDM Initial Costs RM 14,200,000. O & M Costs per Year RM 1,250,000. Revenue for 10 Years CER 600,000 ton 83,000 MWh RM 0.17 per KWh

21 4. Environment Assessment

22 Environment Assessment Procedure of Environment Impact Study 1. No EIA Required Electricity Generation Capacity < 10MW Not Solid Waste Treatment Operation 2. PAT submitted to DOE

23 Environment Assessment Conformity with Environmental Regulations 1. Air Quality Environment Quality Act 1974 SO 2 < 3.5 g/nm 3, NO 2 < 2.0 g/nm 3 Removal by Gas Dryer System 2. Noise WHO Recommendation < 65 db(a) or 55 db(a) Generators in Containers 3. Odor Minimization by Soil Cover

24 5. Stakeholders Comments

25 Stakeholders Comments 1. Governmental Organizations MHLG EPU City of Melaka Stakeholders List 2. Private Entities Developer near the Site Developer near the Site Factory Owner near the Site 3. Community Krubong JKKK Residents of Krubong

26 Stakeholders Comments Comments All the stakeholders welcome the Project Technology should be transferred Future explanation meetings are requested when more detailed facility plan becomes available

27 OUR PLANET