MSW TREATMENT TECHNOLOGIES under the CLEAN DEVELOPMENT MECHANISM (CDM) Bangkok, Thailand 17th February 2012

Transcription

1 MSW TREATMENT TECHNOLOGIES under the CLEAN DEVELOPMENT MECHANISM (CDM) Bangkok, Thailand 17th February 2012

2 Our profile 2

3 Our CDM references

4 Why working with Bionersis? Incorporated in France (Annex I country*) and listed on the Paris Stock Exchange World Number 1 in CDM projects related to biogas from landfills Already 18 units under construction or operating in South America and Asia Already 8 projects generating CERs Bionersis was selected several times by the United Nations to present and write on CDM and waste management activities A successful combination of biogas experts, construction engineers and Project finance specialists The sole global one stop CDM project developer specialized in biogas operations

5 Why Bionersis? (cont.) The only CDM player which has always registered projects in less than a year Bionersis has built specific financial partnerships with power utilities in Europe These partners are willing to finance our projects even beyond Why: Europe has decided further emission reductions at the horizon 2020 Therefore, Europe is the biggest secured market post 2012 for emission reductions

6 MSW in Thailand 6

7 Composition and moisture content Income Level Material Low Middle High Food 40-85% 20-65% 20-50% Paper 1-10% 15-40% 15-40% Recyclables 4-25% 5-26% 11-43% Moisture 40-80% 40-60% 20-30% More biomass organics / moisture beneficial to LFG and composting projects Not favorable for combustion and thermal technologies High precipitation (IPCC: > 1,000 mm / yr) more rapid decomposition but potential issue with leachate Not favorable for LFG but remediation measures exist 7

8 Waste composition and moisture in Bangkok Waste composition in Bangkok Food Paper Plastic Green waste Others 26% 6% 11% 45% - Degradable waste 1 50% - Combustible 2 : 30 45% - Moisture: 45 60% 12% 1 : food, green waste and misc. 2 : paper, plastic, misc. 8

9 Contrast between Bangkok and the rest of Thailand Collection rate: 90% or more in Bangkok, about 50 60% in the rest of Thailand Sanitary landfills in Bangkok, vicinities and Chiang Mai Controlled open dumps elsewhere Landfilling is still the predominant waste treatment method (about 65%) but recycling (more than 20%), composting, AD and incineration also exist Country Disposal / Treatment Methods (%) Composting Open dumping Landfilling Incineration Others Indonesia Malaysia Myanmar Philippines Singapore Thailand Vietnam Source: World Bank 2008

10 What does work or can work soon? 10

11 Landfill Gas To Energy 11

12 Key for success Suitable landfill operations Minimum 1 M Tons of waste and 200 tons/d ( cluster policy ) Proper landfill profiling and cover Appropriate leachate extraction system Strong CDM expertise CDM registration is COMPLEX CERs issuance is EVEN MORE COMPLEX Proper LFG treatment to feed the engines Cut costs wisely and keep manufacturers and UNFCCC s recommendations in mind

13 Economics of the Project Example of PATTAYA (More than 1 million tons disposed and about 300T/d) CAPEX: 65 M THB OPEX: 50 M THB (10 years) Revenues: CERs (20,000 a year): or from 3 to 6 M THB a year Electricity (500kW): 12 M THB a year NPV: 5.15 M THB IRR: 12%

14 Composting $$$$$$$$ Tipping fee $$$$$$$$ CERs for methane avoidance $$$$$$$$ Fertilizer 14

15 Key for success Strong fertilizer sales network Additional nutrients to enrich the fertilizer Adequate tipping fee (if not in-vessel composting) Land made available for free or at nominal rate Segregation of waste at source or effective waste separation at the facilities Strong CDM expertise CDM registration is COMPLEX CERs issuance is EVEN MORE COMPLEX

16 Economics of the Project Example of PATTAYA (More than 1 million tons disposed and about 300T/d) CAPEX: 350 M THB OPEX: 300 M THB (10 years) Revenues: CERs (70,000 a year): or from 10 to 21 M THB a year Tipping Fee: 22 M THB a year (200THB/ton) Fertilizer (1,800THB/t) and Recycables: 25 M THB per year To make the project economically feasible under the current market conditions, the project needs the support of the government (subsidies) and/or the creation of a strong fertilizer sales network to cover: 13 M THB a year

17 Anaerobic Digestor $$$$$$$$ Electricity Sales $$$$$$$ CERs for fossil energy displacement $$$$$$$$ Fertilizer $$$$$$$$ Tipping fee $$$$$$$$ CERs for methane avoidance 17

18 Key for success Adjustment of foreign technologies to local specificities (more organic, more humid ) Proper training of the staff by the supplier of the facilities When preparing the budget of the project, always include OPEX as well Adequate tipping fee Segregation of waste at source or effective waste separation at the facilities Strong CDM expertise CDM registration is COMPLEX CERs issuance is EVEN MORE COMPLEX Cut costs wisely and keep manufacturers and UNFCCC s recommendations in mind

19 Economics of the Project Example of PATTAYA (More than 1 million tons disposed and about 300T/d) CAPEX: 450 M THB OPEX: 600 M THB (10 years) Revenues: CERs (80,000 a year): or from 12 to 24 M THB a year Electricity (2,000kW): 48 M THB a year Tipping Fee: 22 M THB a year (200THB/ton) Fertilizer (1,800THB/t) and Recycables:? To make the project economically feasible under the current market conditions, the project needs the support of the government (subsidies) to cover: 17 M THB a year

20 What does not work now and in the near future? 20

21 Gasification / Pyrolisis $$$$$$$$ Tipping fee $$$$$$$$ CERs for methane avoidance $$$$$$$$ Electricity Sales $$$$$$$ CERs for fossil energy displacement 21

22 Incineration $$$$$$$$ Tipping fee $$$$$$$$ CERs for methane avoidance $$$$$$$ CERs for fossil energy displacement $$$$$$$$ Electricity Sales 22

23 Advanced MSW Treatment Technologies (costs) Technology Plant capacity (tons/day) Capital cost (M US$) O&M cost (US$/ton) Planning to commissioning (months) Pyrolysis Gasification Incineration 1, Plasma gasification Anaerobic digestion In vessel composting Sanitary landfill Bioreactor landfill Source: World Bank 2008

24 AMSWTT (Situation in ASEAN countries) Composting and AD are facing difficulties Pyrolysis/Gasification and Incineration are failing Main reasons: Poor adaptation of the design to local specificities Poor waste separation and pre-treatment Exclusion of O&M costs in the project budget (very high in Incineration for instance) Poor maintenance and operation of facilities Lack of expertise (AD and Incineration) High cost of compost (and low quality) compared to commercial fertilizers Rising complaint against incineration CERs issuance is very low due to the lack of expertise of the operators

25 Conclusion LFG to energy is proven and profitable in ASEAN* while Compost can be profitable right now under several conditions (network, nutrients ) Anaerobic Digestion might be profitable in the near future under several conditions (training, adaptation of the design ) More advanced technologies such as gasification/pyrolysis, incineration, plasma gasification are not yet proven on a commercial basis in ASEAN for MSW Launch appropriate source segregation programs, recycling centers is a must Cluster the waste management in order to gain from economy of scale Include carbon finance revenues in a programmatic manner to address MSW at the country level However only LFG and compost activities delivers CERs so far

26 Thank you for your attention For more information or queries: 26