Gold Standard Validation Report

Transcription

1 Gold Standard Validation Report Thai Biogas Energy Company Ltd. (TBEC) GOLD STANDARD VALIDATION OF THE CDM PROJECT: TBEC THA CHANG BIOGAS PROJECT REPORT NO GS January 2011 TÜV SÜD Industrie Service GmbH Carbon Management Service Westendstr Munich GERMANY

2 Report No. Date of first issue Revision No. Date of this revision Certificate No GS Subject: Executing Operational Unit: Client: Report Title: Number of pages Gold Standard Validation of a CDM Project TÜV SÜD Industrie Service GmbH Carbon Management Service Westendstr Munich, Germany Thai Biogas Energy Company Limited (TBEC) 888/173 Ploenchit Road, 17th Floor, Mahatun Plaza Building, Bangkok 10330, Thailand Gold Standard Validation of the CDM project TBEC Tha Chang Biogas Project 13 (excluding annex and cover page) Summary: The TÜV SÜD Certification Body climate and energy has been ordered by Thai Biogas Energy Company Ltd. to perform a validation based on Gold Standard (GS), Version 1 of the above mentioned project. In summary, it is TÜV SÜD s opinion that the project, as described in the final project design document dated 10 th September 2010 (version 14), meets all relevant GS - version 1 requirements for CDM projects. The project has been already registered under the UNFCCC as CDM project (Ref. number 2970). Therefore, all the UNFCCC requirements have been met as set by the Kyoto Protocol, the Marrakech Accords, relevant guidance by the CDM Executive Board and the project furthermore meets all relevant host country criteria and correctly applies the baseline and monitoring methodology ACM0014 ver Mitigation of greenhouse gas emissions from treatment of industrial wastewater. Additionally, the assessment team reviewed the estimation of the projected emission reductions. We can confirm that the indicated amount of emission reductions of 362,760 tonnes CO 2 e over a seven year crediting period, resulting in a calculated annual average of 51,823 tonnes CO 2 e represents a reasonable estimation using the assumptions given by the project documents. Further, the assessment team has also reviewed the Gold Standard Documentation for TBEC Tha Chang Biogas Project version 5.1 and it has been found that the project meets all the additional criteria required by the GS version 01. Hence, TÜV SÜD will recommend the project for registration as a GS-CDM project activity by the Gold Standard Advisory Board. Work carried out by: Internal Quality Control by: Nikunj Agarwal (Assessment Team Leader) Thomas Kleiser Madhuri Nanda (GHG-Validator) Certification Body climate and energy Wisanee T.* *-Left TÜV SÜD

3 Abbreviations CAR CDM CER CR DOE EIA / EA ER GHG GS KP TBEC MP PDD TÜV SÜD UNFCCC VVM Corrective Action Request Clean Development Mechanism Certified Emission Reduction Clarification Request Designated Operational Entity Environmental Impact Assessment / Environmental Assessment Emission Reduction Greenhouse gas(es) Gold Standard Kyoto Protocol Thai Biogas Energy Company Monitoring Plan Project Design Document TÜV SÜD Industrie Service GmbH United Nations Framework Convention on Climate Change Validation and Verification Manual

4 Table of Contents Page 1 INTRODUCTION Objective Scope GHG Project Description 5 2 METHODOLOGY GOLD STANDARD CRITERIA Project Type Eligibility Screen Additionality Screen Sustainable Development Screen Monitoring Requirements and Monitoring Plan GS Clarifications 2007 on palm oil projects (impact on primary forest) 12 4 VALIDATION OPINION Annex 1: Information Reference List

5 1 INTRODUCTION 1.1 Objective Thai Biogas Energy Company Limited (TBEC) has commissioned TÜV SÜD Industrie Service GmbH (TÜV SÜD) to validate the project in accordance with the Gold Standard (GS) version 1. The purpose of a validation is to have an independent Third Party perform a compliance test against the additional requirements as set by the GS for CDM projects. 1.2 Scope The validation scope is defined as an independent and objective review of the project design document, the project s baseline study, monitoring plan and other relevant documents. The information in these documents is reviewed against the Gold Standard version 1 requirements. The final assessment presented herewith is based on the registered PDD on the UNFCCC website (Project No. CDM-2970), Gold Standard Documentation for TBEC Tha Chang Biogas Project Version 5.1 (IRL 17), GS questionnaire, Reports of the Initial and Main Stakeholder consultation meeting (IRL 9, 23) and other supporting documents indicated in Annex 1 attached to this report. 1.3 GHG Project Description The project involves the construction of anaerobic wastewater treatment facility at Tha Chang factory to treat wastewater from Tha Chang Palm Oil mill and Rubber factory. A Covered inground anaerobic reactor (CIGAR) was verified during the site visit, to capture biogas and generate electricity, which would be supplied to the grid and the excess would be flared in an open flare. A 1.4MW GE Jenbacher gas engine will be used to generate electricity from the biogas. The electricity would be sold to the Provincial Electricity Authority (PEA). Further, an additional 1.4 MW genset was installed in 2010 to the project activity. The residual wastewater after CIGAR treatment would be treated in the existing lagoons. The plant started its commercial operation on 6th Jan The commissioning of the plant was verified during the on-site audit in Oct The Project participants (PP) are Thai Biogas Energy Company Limited (TBEC) and Carbon Bridge Pte Ltd. Host Party of the project activity is Thailand. This is a unilateral project.

6 The categories of the project activity are in Scope 13 Waste Handling and Disposal. The applied baseline and monitoring methodology is ACM0014, version 2.1 Mitigation of greenhouse gas emissions from treatment of industrial wastewater. It is to be noted that Version 2.1 of the applied methodology was the applicable version at the time of requesting registration to UNFCCC. According to the registered PDD the starting date of the crediting period is 01/12/2009. A seven year renewable crediting period has been chosen. 2 METHODOLOGY The GS validation of the project must be seen in conjunction with the validation report and protocol for the CDM project (TÜV SÜD Report No , dated 14 th September, 2010). The Gold Standard criteria are divided into the following assessment framework with three screens and the monitoring requirements: Project Type Eligibility Screen Additionality Screen o Previous public announcement check o Additionality Tool o ODA additionality test o Conservative approach check o Technology transfer and/or technology innovation Sustainable Development Screen o Sustainable development assessment o Environmental Impact Assessment (EIA) o Public consultation procedures Monitoring Requirements and Monitoring Plan Chapter 3 includes a discussion on each of the elements listed above.

7 3 GOLD STANDARD CRITERIA The assessment of the documentation has been done as per the Gold standard criteria and is presented herewith. The reference list of all the documents submitted by the project proponent and used for this validation is included in Annex 1 Information Reference List (IRL). 3.1 Project Type Eligibility Screen The assessed project is a biogas electricity generation project which falls under section A Agro-processing and other residues, as per Appendix A of the Gold Standard Manual for CDM Project Developers. The assessed project is a biogas based electricity generation project where biogas is produced from the methane captured from the existing wastewater treatment system at the palm oil mill. It has been confirmed through a review of the existing legislation by the audit team that the same is not a legal requirement in the country. For such project types, emission reductions due to the capture of methane that would normally be emitted from the project are applicable under the Gold Standard and count towards the project s overall emission reductions. According to the GS 2007 clarifications, for gas-to-energy projects, a minimal utilisation threshold for methane usage of 65% averaged over one year has been set. This criteria is fulfilled as indicated in the GS documents provided by PP and will be monitored during the project activity (see 3.4). Hence, the project type is eligible for the Gold Standard. 3.2 Additionality Screen Previous public announcement check There has been no public announcement of the project going ahead without the CDM, prior to any payment being made for the implementation of the project. The validation of the early consideration of CDM before the start of the project activity has been described in detail in the validation report TÜV SÜD Report No , dated 14 th September, 2010 available on the UNFCCC website ( Further, the initial stakeholder consultation referring the project as CDM, undertaken by PP before the finalization of project design, clearly demonstrates that there was no previous public announcement for the project without CDM. (IRL# 9)

8 3.2.2 Additionality Tool According to the Gold Standard Manual requirements, the additionality is to be demonstrated through the latest Tool for the demonstration and assessment of additionality. The additionality in the registered PDD has been demonstrated for the project by applying the latest version of the Additionality tool, ver (EB39, Annex 10) applicable at the time of submitting the project for registration to UNFCCC. All the steps as indicated in the additionality tool have been applied correctly and validated as presented in the validation report TÜV SÜD Report No , dated 14 th September, Section 3.6 of the report covers the additionality section in detail. (IRL # 16) In conclusion, the registered PDD and the Gold Standard Documentation for TBEC Tha Chang Biogas Project Version 5.1 correctly demonstrate additionality of the project in line with the Additionality Tool ODA additionality test No ODA funds have been used in this project activity. The project is funded internally, which is also supported by a letter from MD of TBEC confirming that the biogas project is 100% financed and constructed by TBEC. [IRL# 18] Hence, it can be deemed that no public funding is used for this project activity and thus no diversion of ODA from Annex I countries is involved Conservative approach check According to Gold Standard version 1 requirements, it must be assessed whether a sufficiently conservative baseline scenario is chosen based on the baseline report. The project applies the approved baseline methodology ACM0014 ver. 2.1 Mitigation of greenhouse gas emissions from treatment of industrial wastewater. The calculations using the approved methodology are based on conservative approach, which is clearly depicted in the final PDD and have been validated in the final CDM validation report. (IRL # 3, 15, 16) The PDD (section B.6.2) clearly demonstrates that the most convincing baseline scenario has been chosen, and that all assumptions and parameters comply with the conservativeness criteria. Further, the conservative assumptions applied in the project are also elaborated in Gold Standard Documentation for TBEC Tha Chang Biogas Project Version 5.1, submitted by client, which have been validated by the audit team.

9 These assumptions are, as follows: An uncertainty factor of 0.89 has been applied to the values obtained in COD test results for measuring the COD removal rate of the existing lagoons. A value of 0.21 kg CH4/kg COD has been used for B0, though the default IPCC value for B0 is 0.25 kg CH4/kgCOD and research studies showed average removals of kg CH4/kg COD. The amount of electricity that was used in the baseline case has been excluded, resulting in lower baseline emissions. The most conservative assumption relating to COD removal from sulfates was used, which lowers the baseline emissions from COD conversion to methane Hence, the Validation team confirms that the baseline has been developed in a conservative manner Technology transfer and/or technology innovation The technology provider, Waste Solutions Ltd. Company based in New Zealand has provided the CIGAR technology employed in this project in Thailand. Hence, the technology transfer is clearly evident. (IRL # 19) 3.3 Sustainable Development Screen Sustainable development assessment The project has used the sustainable development assessment matrix as required by the GS. The total score obtained is +5, where: Local/regional/global environment has a subtotal of +2 Social sustainability and development has a subtotal of +1 Economic and technological development has a subtotal of +2 None of the components has been identified to have a negative score. Therefore for the eligibility to the GS is complied with, as follows: Each of the components has a sub-total score that is non-negative; The total score is positive; None of the indicators has a score of -2. All the assumptions used in defining the score values have been reviewed by TÜV SÜD based on the on-site visit made during the validation of the CDM project and review of all the supporting documentation submitted [IRL# 16, 20, 21, 22]. Hence, the project activity complies with the Gold Standard criterion.

10 The indicators which have been identified with an * sign in the SD matrix in the GS documentation are the parameters to be monitored to further confirm that the project is in line with sustainable development. These 4 parameters identified in the SD matrix are as follows: Improvement in wastewater quality being released to the existing wastewater treatment system: The PP will monitor the quality of water to ascertain fulfilment of the government regulations in accordance with the applicable laws and demonstrate improvement in quality of water as compared to the baseline. Training provided to new staff to ensure quality of employment and technology self reliance : providing skilled jobs with appropriate periodic training. The training records will be verified subsequently. Number of new jobs created for Biogas Project: - the names, qualification and year of joining of new employees for the project activity has been made available to the DOE [IRL # 20]. Training provided to Tha Chang Factory to ensure technology self reliance: : This parameter would be an indicator to the technological self reliance of the engineers of the Tha Chang factory for the efficient operation and maintenance of the project. This would improve the technology level and awareness of the staff and would be helpful in establishment of similar biogas facilities elsewhere in Thailand, there by contributing to sustainable development of the project. This was verified from the training documents [IRL # 21]. These parameters will be monitored as outlined in the GS documentation and will allow subsequent verification of the project s contribution towards sustainable development in the region, thereby complying with the GS requirements. Additional monitoring parameters are provided in the subsequent section, Environmental Impact Assessment (EIA) No Environmental Impact Assessment is required for the implementation of biogas power plants in Thailand. Nevertheless, the PP has conducted an Initial Environmental Evaluation (IEE), which was submitted to Thai DNA and to the validation team, which has been thoroughly reviewed. (IRL # 8). No negative impact has been envisaged in the IEE report. According to the GS, an EIA should be conducted if any sustainable development indicator is rated -1 or if the initial stakeholder consultations identified any significant environmental impacts. Since in this project no sustainable development indicator parameter is negative, hence it is not required to carry out an EIA. Also, there were no significant impacts identified from the initial stakeholder consultation.

11 3.3.3 Public consultation procedures The project proponent has carried out two stakeholder consultations as required by the Gold Standard. The Initial Stakeholder Consultation was carried out by the PP on The information about the event was communicated through public notice for 5 days in the local newspaper, in addition to personal invitations to stakeholders directly impacted with the project. It could be validated that the project was welcomed by all the stakeholders with no negative comment, which has been clearly mentioned in the registered PDD and evidenced through the feedback from the stakeholders [IRL # 9]. The main stakeholder consultation meeting was held on as per the GS requirements. The stakeholders were invited following the GS requirements through published media (local newspaper) for 5 days. Further, the local NGOs were directly invited, which could be verified based on the submitted documentation. Thus, it can be confirmed that every stakeholder had the possibility to get informed about the project activity. The stakeholders were briefed about the project activity and questionnaires were served to get the feedback and comments on the project. No objections or negative comments were raised about the project. All the stakeholders were of the opinion that the project activity would be beneficial and would contribute toward the sustainable development, thus fulfilling the GS criterion. The entire proceedings of the stakeholder consultation meetings and feedback/suggestions have been verified by the audit team [IRL# 23]. Hence, the criterion is fulfilled by the project as per the GS requirements. 3.4 Monitoring Requirements and Monitoring Plan The validation team has verified that the Monitoring Plan is in accordance with the applied monitoring methodology ACM0014 ver. 2: Mitigation of greenhouse gas emissions from treatment of industrial wastewater. All parameters that are deemed necessary for the estimation of emission reductions have been included in the registered PDD. In addition, as indicated in the Gold Standard Documentation for TBEC Tha Chang Biogas Project Version 5.1 to further confirm that the project is contributing positively to sustainable development, the parameters listed in above section will be monitored. These are: Improvement in wastewater quality being released to the existing wastewater treatment system Number of new jobs created for Biogas Project.

12 Training provided to new staff to ensure quality of employment and technology self reliance Training provided to Tha Chang Factory to ensure technology self reliance Further, the parameters highlighted during the stakeholder consultation process and those triggered by GS requirements, which would be monitored include: Safety of biogas project Minimum 65% use of biogas for energy purposes There is no new legislation development that mandates methane recovery from wastewater treatment for this site. GS Rule Compliance Land for oil palm expansion With the monitoring of above parameters, it could be confirmed by the audit team that all the GS requirements have been fulfilled. 3.5 GS Clarifications 2007 on palm oil projects (impact on primary forest) Based on the on-site audit, and the supporting documents provided by the PP, the audit team concludes that the project does not contribute directly to deforestation as the project activity (methane recovery from wastewater) is not the driving factor that has lead to the establishment of palm oil plantation. Further, following information substantiates the same: Procurement of FFB (Fresh Fruit Bunches) from local farmers, as verified during on-site visit, thus, not impacting the rain forests. Beyond this, and in order to fully comply with GS requirements on this item, the regional land use change rates were analyzed. It has been documented by official sources from the Surat Thani Provincial Agricultural Office that unlike other regions in Southeast Asia, new palm oil plantations are mostly established on other non-forest areas such as former rice paddies (IRL No. 24). Independent study by Atmosfair for assessment of another similar project in Thailand regarding the impact of palm oil mill plantations on rainforests in Thailand (IRL 25) In light of the above it is considered that the information provided on impacts on rainforests have been documented adequately in the Gold Standard Documentation for TBEC Tha Chang Biogas Project Version 5.1, as per GS requirements. Hence, the project complies with the GS requirements.

13 4 VALIDATION OPINION The Certification Body Climate and Energy has been ordered by Thai Biogas Energy Company Ltd. (TBEC) to perform a validation based on the Gold Standard version 1 of the above mentioned project. In summary, it is TÜV SÜD s opinion that the project TBEC Tha Change Biogas Project, as described in the registered PDD, meets all relevant Gold Standard version 1 requirements for CDM projects. The project has been already registered under the UNFCCC as CDM project number Hence all the UNFCCC requirements have been met as set by the Kyoto Protocol, the Marrakech Accords and relevant guidance by the CDM Executive Board and the project furthermore meets all relevant host country criteria and correctly applies the baseline and monitoring methodologies ACM0014 version 02 titled Mitigation of greenhouse gas emissions from treatment of industrial wastewater Hence, TÜV SÜD will recommend the project for registration as a Gold Standard CDM project activity by the Gold Standard Advisory Board. Additionally the assessment team reviewed the estimation of the projected emission reductions. We can confirm that the indicated amount of emission reductions of 362,760 tonnes CO 2 e over a crediting period of seven years, resulting in a calculated annual average of 51,823 tonnes CO 2 e represent a reasonable estimation using the assumptions given by the project documents. Further, the assessment team has also reviewed the Gold Standard Documentation for TBEC Tha Chang Biogas Project version 5.1 and it has been found that the project meets all the additional criteria required by the GS. The validation is based on the information made available to us and the engagement conditions detailed in this report. The only purpose of this report is its use during the registration process as a GS-CDM project. Hence, TÜV SÜD can not be held liable by any party for decisions made or not made based on the validation opinion, which will go beyond that purpose. Munich, Munich, Thomas Kleiser Certification Body climate and energy TÜV SÜD Industrie Service GmbH Nikunj Agarwal Assessment Team Leader

14 Annex 1: Information Reference List

15 Final Report Gold Standard Validation of the project: TBEC Tha Chang Biogas Project, Thailand Page 1 of 3 Information Reference List Ref. No. Issuance and/or submission date Title/Type of Document Author/Editor/ Issuer 1 4/09/2008 PDD, v.04 TBEC Tha Chang Biogas Project, Thailand Carbon Bridge Pte.Ltd 2 4/09/2008 Gold standard documentation for TBEC Tha Chang Biogas project Carbon Bridge Pte.Ltd 3 ACM0014, version 02.1 (EB38) Mitigation of greenhouse gas emissions from treatment of industrial wastewater UNFCCC 4 Tool for the demonstration and assessment of additionality, Version 05.2 UNFCCC 5 Tool to determine project emissions from flaring gases containing methane, ver 01 (EB 28) UNFCCC 6 Tool to calculate the emission factor for an electricity system, version 01.1 (EB 35) UNFCCC Oct Participant list of on-site interviews. On-site interviews conducted by TÜV SÜD on October 28-29, Validation Team: Wisanee Thanapiyawanitch Auditor, TUV SUD PSB (Thailand) Interviewed Persons: Ms.Bridget McIntosh MD / Carbon Birdge Ptd.Ltd TÜV SÜD Mr.Piya Puliwekhin Senior engineer / TBEC Mr.Tikunporn Kongthong QEHS engineer / TBEC Mr. Arwoot C. Tha Chang Palm Oil Company Mr.Ronglit Rubber plant manager Mr.Thanin T. Biogas plant manager 8 4/06/2008 IEE report TBEC Summary of Initial stakeholder consultation for TBEC Tha Chang Biogas project, with following details: 9 10/ Agenda TBEC - Evidence of publishing in the newspapers - List of stakeholder invited. TÜV SÜD INDUSTRIE SERVICE GMBH

16 Final Report Gold Standard Validation of the project: TBEC Tha Chang Biogas Project, Thailand Page 2 of 3 Information Reference List Ref. No. Issuance and/or submission date Title/Type of Document Author/Editor/ Issuer - List of participants. - Environmental and socioeconomics impact checklist summary 10 9/05/2008 Application : CDM project evaluation regarding to sustainable development 11 29/10/2007 Survey of Environmental and Socioeconomics Impacts : Tha Chang Biogas project, by Thai Biogas Energy Co.,Ltd. TBEC 12 - Summary of significant environmental impacts, Tha Chang Palm Oil Industrial. (file Informatin Adder) TBEC, Carbon bridge 13 06/11/2008 Letter of Approval from TGO, Thailand DNA TGO, Thailand 14 14(12/2010 Modalities of Communication signed by Thai Biogas Energy Company Ltd., Carbon Bridge Pte Ltd /09/2010 Final PDD version 14 dated 10th September /09/2010 Final CDM validation report, TÜV SÜD report No dated 14 th September /01/2011 (date of submission) Gold standard documentation for TBEC Tha Chang Biogas project version /11/2008 Letter, (ref.no.bkk130/2008) dated 18/11/2008 from MD of TBEC confirming the project to be 100% financed and constructed by TBEC. No ODA funding /07/2007 Tha chang Biogas Project, Surat Thani :Contract for engineering services between Thai Biogas Energy company Ltd. And Waste Solutions Ltd /2010 List of TCP Staff as at June 2010 for GS proof of employment TBEC Tha Chang Training Records for Report Floating geomembrane covers for odour control and biogas collection and utilization in municipal lagoons Degarie, C, Crapper, T., Howe, B, Burke, B, Mccarthy, P. Water science and technology Journal, /01/2009 Summary of Main stakeholder consultation held on 29 th Jan /12/2007 Bangkok Post, Govt urged to promote oil palm in deep South December TÜV SÜD INDUSTRIE SERVICE GMBH

17 Final Report Gold Standard Validation of the project: TBEC Tha Chang Biogas Project, Thailand Page 3 of 3 Information Reference List Ref. No. Issuance and/or submission date 25 - Title/Type of Document Additional analysis on Environmental and social sustainability with special regard to palm oil production by atmosfair for the Chumporn Applied Biogas Technology for Advanced Wastewater Management Project, Thailand. accessed at Author/Editor/ Issuer TÜV SÜD INDUSTRIE SERVICE GMBH