TERMS OF REFERENCE (TOR)

Transcription

1 United Nations Industrial Development Organization TERMS OF REFERENCE (TOR) BIO-WASTE MINIMIZATION AND VALORIZATION FOR LOW CARBON PRODUCTION IN RICE SECTOR - VIETNAM CTCN request /VIE-01 1 BACKGROUND INFORMATION The Climate Technology Centre and Network (CTCN) is the operational arm of the United Nations Framework Convention on Climate Change (UNFCCC) Technology Mechanism and co-hosted by the United Nations Environmental Programme (UNEP) in collaboration with the United Nations Industrial Development Organization (UNIDO) and supported by 11 partner institutions with expertise in climate technologies. The mission of the CTCN is to promote accelerated development and transfer of climate technologies at the request of developing countries for energy-efficient, low-carbon and climate-resilient development. These requests for Technical Assistance (TA) are being submitted to the CTCN by the National Designated Entity (NDE) of the respective country. Eligible requests are processed by a group of selected experts who develop a. More information at The scope of services under these Terms of Reference shall be executed based on a restricted solicitation process where only accepted Members of the CTCN Network are eligible to submit proposals. Should the bidder partner with another institution to deliver a minor part of the services described in these Terms of Reference, it is expected that the partner institution also joins the CTCN Network. 2 PROJECT CONTEXT Drying/de-husking/milling are crucial post-harvest activities in the production of rice. Around 20% of the initial weight of the paddy remains in form of husks. Vietnam produced an estimated 44 million tons of paddy rice in 2013, with approximately 7 million tons of rice husks available in terms of a potentially usable biomass, noting that up to 15-20% of this amount is valorized within the rice mills themselves, mainly for the drying process. Rice husk is generally under- and unsystematically used or often dumped and burned. Rice husk therefore represents an enormous potential in terms of organic material to be used as an energy source. Recent development showed clearly, that in Vietnam and also in other Asian countries, the systematic economic valorization of rice husks has become key to boost productivity and tackle environmental issues at the same time. Thus, there is a large potential for new or existing companies to produce fuels and/or energy from excess rice husks. The produced solid fuels in the form of pellets or briquettes could be used internally or be sold in the national or international market. Other technology alternatives have been explored such as pyrolysis and gasification for the production of solid, liquid and/or gas fuels. The different Page 1 of 24

2 United Nations Industrial Development Organization business models need to be further assessed in order to select the optimal valorization routes of rice husks in Vietnam. The assessment of business models needs to include: technical, economic and sustainability aspects covering the complete chain (from feedstock production to product end use). For a comprehensive understanding of all relevant elements of the project the bidders are encouraged to read the response plan attached (Annex I) to these Terms of Reference. 3 AIM OF THE CONTRACT The CTCN assistance will provide technical support on the provision of a decision making tool for the analysis and selection of optimal valorization routes of rice husks, including product outlets such as: a) fuels (solid, liquid, gas) or b) heat and/or power. The tool analysis criteria will combine technical, economic and sustainability performance along the complete chain (from feedstock production to processing and end-product use). The tool validation will result in the selection of the optimal valorization route for a given company. In the short term, it is expected that the CTCN technical assistance will support decision and investment in the rice sector enterprises (e.g. Song Hau Food Company). These investments will further result in the scaling-up of resource efficient and cleaner production technologies within other enterprises in the rice sector. The valorization of rice husk as fuel and/or energy, the rice sector could not only improve its economic performance but also reduce its carbon footprint by: a) substituting the use of (imported) fossil fuels (coal) and b) displacing the GHG emissions which are generated under the current disposal practices of unutilized rice husks. The budget for this contract is estimated at between USD 230,000 and 270,000. The bidders should however develop a detailed budget in the proposal based on the set of activities described in the following section. 4 SCOPE AND ACTIVITIES OF THE PROPOSED CONTRACTED SERVICES Final outputs will include: 1. A decision making tool/ for the selection of the optimal valorization route of rice husks 2. Validation of developed tool and detailed assessment of technologies and valorization options. This includes overview of a selected number of potential business models (description and analysis). 3. Detailed case study of a bankable project, in partnership with a nominated firm. 4. Overview of access to financing options for different business models (different size and ownership). Page 2 of 24

3 Page 3 of 24 United Nations Industrial Development Organization The contractor will build upon work previously done under the UNIDO-UNEP RECP Program and will not replicate but complement (when required) existing studies. These studies will be supplied to the contractor. The team will cooperate closely with relevant stakeholders (public and private). Activity 1 Development of a valorization optimization tool/guideline for the selection of the optimal processing routes of rice husks. First, the contractor will develop a framework and tool that will enable Vietnamese millers to make sound, informed decisions on potential and optimal valorization routes for their rice husk streams. The team will build where applicable- on existing prior studies and in close cooperation with the relevant stakeholders (public and private). The tool will be based on an analytically rigorous multivariate methodology that includes technical, economic and sustainability criteria and indicators. These criteria and indicators will take into account local context (i.e. technologies and strategies, which fit to the local conditions for Vietnam) in addition to techno-economic (more quantitative) indicators. Activity 1.1 The expert team together with the Vietnam National Cleaner Production Centre (VNCPC) and relevant stakeholders will propose and generate a list of quantitative criteria and indicators to be used for the comparison of different processing routes. Criteria and indicators will include: Technical: Overall conversion efficiencies, end-product quality and compliance with end user requirement (fuel specs, ash etc.). Economic: Logistics (infrastructure, ports, roads), potential cost and sales revenues, potential markets size (local and international). Sustainability: Overall emissions along the complete chain with emphasis on emissions of CO 2 eq, impacts on women and minority groups This methodology and approach will be used to develop a decision making tool/ for the selection of the optimal valorization route of rice husks. Activity 1.2 Based on Activity 1.1, the team will develop a decision making tool/guideline to select optimal valorization routes of rice husks. This tool will be flexible and useful for project developers at different company sizes (small to large scale). The technologies and valorization routes options indicated in Activity 2 are going to be further evaluated based on the criteria indicators defined above, by applying the developed tool. For each route, the implications of end product properties on end use will be taken into account and processed in the tool as presented below in Activity 2. (e.g. to determine suitability or improvement

4 United Nations Industrial Development Organization options to get access to the international biomass fuels market, or for use in e.g. co-processing in cement kilns). Activity 1 Deliverables Deliverables Tool/guideline for the selection of the optimal valorization route of the rice husks. The tool includes: technical economic and sustainability criteria and indicators. Delivery date Week 16 after project inception Activity 2 - Business models identification and analysis by applying developed tool The contractor will compile, identify and analyze existing and potential business models for rice husks valorization. This activity comprises the aggregation of available data from previous reports and inhouse technical expertise and hands on experience in thermochemical conversion processes of biomass. Amongst others this activity will include a detailed description of processing routes (e.g. overall masa and energy balances, conversion efficiencies, feedstock flexibility, overall costs and potential revenues to allow comparison). The team will build where applicable- on existing prior studies and in close cooperation with the relevant stakeholders (public and private). Activity 2.1 Technical experts will perform a detailed technical assessment of existing outlets and markets. Additionally, based on CTCN expert s organization track record in innovation in energy intensive processes, it will identify 2 or 3 potential alternative routes and strategies to support Vietnam companies to overcome some of the disadvantageous fuel properties that limit the potential number of outlets and end users. These strategies (e.g. reduce ash content, smart blending) will support companies to comply with end users requirements markets. The team will identify existing and propose potential business models for: a. On-site use (e.g. for paddy drying and/or heat/electricity production) b. Off -site use (e.g. as fuel in: power plants, CHP (co-firing), (indirect) gasification; as fuel and coprocessing material in cement kilns. c. The alternatives above will include: i. feedstock use as received ii. include a densification step such as pelleting/briquetting. The valorization routes will consider small to large scale installations. Page 4 of 24

5 United Nations Industrial Development Organization Activity 2.2 Analysis of the valorization routes defined in activity 2.1. The analysis will include: technical, economic and sustainability performance and following aspects will be addressed: 1. Complete chain logistics configurations 2. Processing routes and technologies. Including: Blocks diagrams, and overall mass and energy balances. 3. Product properties assessment based on end users technical requirements for the local, and/or international market. 4. Assessment of by-products (e.g. ashes) valorization options (e.g. fertilizers, co-processing with cement industries) 5. Overall economic potential 6. Sustainability performance, including environmental (e.g. CO 2 eq emissions and reductions potential) and potential social benefits. Activity 2 Deliverables Deliverables Report 1. Business models description and analysis Delivery date Week 32 after project inception Activity 3 Detailed analysis of a bankable project, in partnership with a nominated firm The contractor will apply and validated tool developed in activity 1 and perform a detailed analysis (technical, sustainability and economic) into local context. The tool application will result in the selection of the optimal business model for a nominated firm (one of the state-owned milling companies: Song Hau Food Company). The detailed analysis will include description of the opportunity, business case, as well as project next steps that have to be taken. Activity 3.1 Based on activity 2, and using the developed tool, the contractor will define the optimal valorization route for the selected company and describe it in more detail. Output will include: Description of the processing route and technologies, including: blocks diagrams, and overall mass and energy balances. Energy balance of proposed business case. Emphasis will be put on potential process integration with existing mill installations (e.g. heat integration options). Description of current outlets, Page 5 of 24

6 United Nations Industrial Development Organization Life Cycle Assessment (LCA). The assessed environmental impacts will include: CO 2 emission as well as other emissions to air, water and soil along the complete chain. o Assessment of climate change mitigation potential, o Comparison of the environmental impacts of the selected route with those of the base case scenario. The base scenario is the current disposal of unutilized rice husk and use of fossil fuels. Emphasis will be on GHG emissions reductions potential, including not only the replacement of fossil fuels (coal), but also de the estimation of GHG emissions which are avoided when residues are valorized. o Description of potential social and economic benefits Activity 3.2 The expert team will perform an economic and financial analysis for the selected business model and the state-own milling company. The team will build where applicable- on existing prior studies and in close cooperation with the relevant stakeholders (public and private). The output includes: Analysis of the bankability of the project with detailed cost estimations of: Capex, Opex and estimations of IRR, NPV. Depending on the case at hand: o regulatory framework (Vietnam, other end markets) o analysis of competing feedstocks A list of technology providers for selected valorization route High level organization chart, including required skills and capabilities required to make the project a success When applicable, a list of potential products (by-products) buyers/end-users. Sustainability assessment of the business model highlighting: Climate change mitigation potential, environmental and social impacts. High level project pitch to be presented to potential financers and investors Activity 3 Deliverables Deliverables Report on development of the selected business model for a specific state-owned mill company. Delivery date Week 48 after project inception Activity 4 Overview of access to financing options The CTCN team will provide an overview of access to financing options for: The case analyzed in activity 3 Page 6 of 24

7 United Nations Industrial Development Organization The feasible business models identified in activity 2 that reflect the different types of rice companies in Vietnam in terms of size and ownership. Activity 4 Deliverables Deliverables Detailed Overview of access to financing options. Multilateral, PPP, impact investment, List of potential sources of funding High level list of concrete actions required to develop the project to final investment decision. Delivery date Week 48 after project inception 5 GENERAL TIME SCHEDULE The expected duration of the proposed contract for this portion of the Project is 1 year. A provisional time line can be found in the attached response plan. 6 PERSONNEL IN THE FIELD (PROFESSIONAL EXPERIENCE AND QUALIFICATIONS) The Contractor is expected to provide the services of a team - integrating a recognized local institution (such as the Vietnam National Cleaner Production Centre (VNCPC) and experts - that should ideally comprise the following competencies: a) Expertise required for the technology and routes assessment: Expertise and deep knowledge on technologies in biomass combustion, gasification, pyrolysis Expertise in fuel production and fuel quality Expertise on fuels properties under combustion conditions and on pre-treatment and conditioning of difficult biomass fuels. Experience in upgrading of low-quality biomass feedstocks to high-quality biomass fuels Expertise on biomass chains techno-economic and sustainability assessments. b) Expertise required for the business case development: Experience in (bio-) renewables and power markets, biomass valorization projects (pelletization, briquetting, others). Experience on economic evaluation of projects Experience and contacts with regional and international bioenergy market players The CVs of the respective experts assigned to this project by the Contractor must be provided. Page 7 of 24

8 7 LANGUAGE REQUIREMENTS United Nations Industrial Development Organization The working language for the purposes of this project is English, thus an excellent command of English is required of the proposed personnel. Command of Vietnamese is considered a key asset to facilitate communication with stakeholders. The final deliverables must be submitted in English. All delivered documents must be of sufficient enough quality so that no further editing shall be required. Page 8 of 24

9 Country: Vietnam Title: Bio-waste minimization and valorization Request for low carbon production in rice sector /VIE-01 Identification Number: Summary of the CTCN Technical Assistance Background Drying/de-husking/milling are crucial post-harvest activities in the production of rice. Around 20% of the initial weight of the paddy remains in form of husks. Vietnam produced an estimated 44 million tons of paddy rice in 2013, with approximately 7 million tons of rice husks available in terms of a potentially usable biomass, noting that up to 15-20% of this amount is valorized within the rice mills themselves, mainly for the drying process. Rice husk is generally under- and unsystematically used or often dumped and burned. Rice husk therefore represents an enormous potential in terms of organic material to be used as an energy source. Recent development showed clearly, that in Vietnam and also in other Asian countries, the systematic economic valorization of rice husks has become key to boost productivity and tackle environmental issues at the same time. Thus, there is a large potential for new or existing companies to produce fuels and/or energy from excess rice husks. The produced solid fuels in the form of pellets or briquettes could be used internally or be sold in the national or international market. Other technology alternatives have been explored such as pyrolysis and gasification for the production of solid, liquid and/or gas fuels. The different business models need to be further assessed in order to select the optimal valorization routes of rice husks in Vietnam. The assessment of business models needs to include: technical, economic and sustainability aspects covering the complete chain (from feedstock production to product end use). Technical assistance proposal The technical assistance from the CTCN will provide: 1. A decision making tool for the selection of the optimal valorization route of rice husks 2. Validation of developed tool and detailed assessment of technologies and valorization options. This includes overview of a selected number of potential business models, (description and analysis). 3. Detailed case study of a bankable project, in partnership with a nominated firm. 4. Overview of access to financing options for different business models (different size and ownership) The CTCN assistance will build on work previously done under the UNIDO-UNEP RECP Program and will complement (when required) existing studies. These studies will be supplied to the experts organization(s) performing this response plan. Page 9 of 24

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11 1. Overview of the CTCN technical assistance 1.1 Technology aspectsthe CTCN assistance will provide technical support on the provision of a decision making tool for the analysis and selection of optimal valorization routes of rice husks, including product outlets such as: a) fuels (solid, liquid, gas) or b) heat and/or power. The tool analysis criteria will combine technical, economic and sustainability performance along the complete chain (from feedstock production to processing and end-product use). The tool validation will result in the selection of the optimal valorization route for a given company. 1.2 Objectives (outcomes) In the short term, it is expected that the CTCN technical assistance will support decision and investment in the rice sector enterprises (e.g. Song Hau Food Company). These investments will further result in the scaling-up of resource efficient and cleaner production technologies within other enterprises in the rice sector. The valorization of rice husk as fuel and/or energy, the rice sector could not only improve its economic performance but also reduce its carbon footprint by: a) substituting the use of (imported) fossil fuels (coal) and b) displacing the GHG emissions which are generated under the current disposal practices of unutilized rice husks. 1.3 Results (outputs expected from CTCN assistance) Final outputs will include: 1. A decision making tool/ for the selection of the optimal valorization route of rice husks 2. Validation of developed tool and detailed assessment of technologies and valorization options. This includes overview of a selected number of potential business models, (description and analysis). 3. Detailed case study of a bankable project, in partnership with a nominated firm. 4. Overview of access to financing options for different business models (different size and ownership) 5. a. Expected use of outputs The approach described above can be applied to an estimated 100 further similar milling companies in Vietnam. This would include to further assist the Vietnamese industrial sector in general to pursue the restructuring triggered by government policies: Optimal technology and business models selection, and implementation combined with support to investment and access to financing. 2. Description of the Assistance a. Activities The CTCN experts organization will clearly build on work previously done under the UNIDO-UNEP RECP Program and will not replicate but complement (when required) existing studies. These studies will be supplied to the experts organization(s) performing this response plan. The team will cooperate closely with relevant stakeholders (public and private). Page 11 of 24

12 Activity 1 Development of a valorization optimization tool/guideline for the selection of the optimal processing routes of rice husks. First, the CTCN organization will develop a framework and tool that will enable Vietnamese millers to make sound, informed decisions on potential and optimal valorization routes for their rice husk streams. The team will build where applicable- on existing prior studies and in close cooperation with the relevant stakeholders (public and private). The tool will be based on a analytically rigorous multivariate methodology that includes technical, economic and sustainability criteria and indicators. These criteria and indicators will take into account local context (i.e. technologies and strategies, which fit to the local conditions for Vietnam) in addition to techno-economic (more quantitative) indicators. Activity 1.1 The expert team together with the VNCPC and relevant stakeholders will propose and generate a list of quantitative criteria and indicators to be used for the comparison of different processing routes. Criteria and indicators will include: Technical: Overall conversion efficiencies, end-product quality and compliance with end user requirement (fuel specs, ash etc.). Economic: Logistics (infrastructure, ports, roads), potential cost and sales revenues, potential markets size (local and international). Sustainability: Overall emissions along the complete chain with emphasis on emissions of CO 2 eq, impacts on women and minority groups This methodology and approach will be used to develop a decision making tool/ for the selection of the optimal valorization route of rice husks. Activity 1.2 Based on Activity 1.1, the team will develop a decision making tool/guideline to select optimal valorization routes of rice husks. This tool will be flexible and useful for project developers at different company sizes (small to large scale). The technologies and valorization routes options indicated in Activity 2 are going to be further evaluated based on the criteria indicators defined above, by applying the developed tool. For each route, the implications of end product properties on end use will be taken into account and processed in the tool as presented below in Activity 2. (e.g. to determine suitability or improvement options to get access to the international biomass fuels market, or for use in e.g. co-processing in cement kilns). Activity 1 Deliverables Deliverables Delivery date Page 12 of 24

13 Tool/guideline for the selection of the optimal valorization route of the rice husks. The tool includes: technical economic and sustainability criteria and indicators. Week 16 after project inception Activity 2 Business models identification and analysis by applying developed tool The CTCN expert organization will compile, identify and analyze existing and potential business models for rice husks valorization. This activity comprises the aggregation of available data from previous reports and in-house technical expertise and hands on experience in thermochemical conversion processes of biomass. Amongst others this activity will include a detailed description of processing routes (e.g. overall masa and energy balances, conversion efficiencies, feedstock flexibility, overall costs and potential revenues to allow comparison). The team will build where applicable- on existing prior studies and in close cooperation with the relevant stakeholders (public and private). Activity 2.1 Technical experts will perform a detailed technical assessment of existing outlets and markets. Additionally, based on CTCN expert s organization track record in innovation in energy intensive processes, it will identify 2 or 3 potential alternative routes and strategies to support Vietnam companies to overcome some of the disadvantageous fuel properties that limit the potential number of outlets and end users. These strategies (e.g. reduce ash content, smart blending) will support companies to comply with end users requirements markets. The team will identify existing and propose potential business models for: a. On-site use (e.g. for paddy drying and/or heat/electricity production) b. Off -site use (e.g. as fuel in: power plants, CHP (co-firing), (indirect) gasification; as fuel and co-processing material in cement kilns. c. The alternatives above will include: i. feedstock use as received ii. include a densification step such as pelleting/briquetting. The valorization routes will consider small to large scale installations. Activity 2.2 Analysis of the valorization routes defined in activity 2.1. The analysis will include: technical, economic and sustainability performance and following aspects will be addressed: 1. Complete chain logistics configurations 2. Processing routes and technologies. Including: Blocks diagrams, and overall mass and energy balances. 3. Product properties assessment based on end users technical requirements for the local, and/or international market. 4. Assessment of by-products (e.g. ashes) valorization options (e.g. fertilizers, coprocessing with cement industries) 5. Overall economic potential Page 13 of 24

14 6. Sustainability performance, including environmental (e.g. CO 2 eq emissions and reductions potential) and potential social benefits. Activity 2 Deliverables Deliverables Report 1. Business models description and analysis Delivery date Week 32 after project inception Activity 3 Detailed analysis of a bankable project, in partnership with a nominated firm. The expert team will apply and validated tool developed in activity 1 and perform a detailed analysis (technical, sustainability and economic) into local context. The tool application will result in the selection of the optimal business model for a nominated firm (one of the state-owned milling companies: Song Hau Food Company). The detailed analysis will include description of the opportunity, business case, as well as project next steps that have to be taken. Activity 3.1 Based on activity 2, and using the developed tool/, the expert team will define the optimal valorization route for the selected company and describe it in more detail. Output will include: Description of the processing route and technologies, including: blocks diagrams, and overall mass and energy balances. Energy balance of proposed business case. Emphasis will be put on potential process integration with existing mill installations (e.g. heat integration options). Description of current outlets, Life Cycle Assessment (LCA). The assessed environmental impacts will include: CO 2 emission as well as other emissions to air, water and soil along the complete chain. o o o Activity 3.2 Assessment of climate change mitigation potential, Comparison of the environmental impacts of the selected route with those of the base case scenario. The base scenario is the current disposal of unutilized rice husk and use of fossil fuels. Emphasis will be on GHG emissions reductions potential, including not only the replacement of fossil fuels (coal), but also de the estimation of GHG emissions which are avoided when residues are valorized. Description of potential social and economic benefits The expert team will perform an economic and financial analysis for the selected business model and the state-own milling company. The team will build where applicable- on existing prior studies and in close cooperation with the relevant stakeholders (public and private). The output includes: Page 14 of 24

15 - Analysis of the bankability of the project with detailed cost estimations of: Capex, Opex and estimations of IRR, NPV. - Depending on the case at hand: o o regulatory framework (Vietnam, other end markets) analysis of competing feedstocks - A list of technology providers for selected valorization route - High level organization chart, including required skills and capabilities required to make the project a success - When applicable, a list of potential products (by-products) buyers/end-users. - Sustainability assessment of the business model highlighting: Climate change mitigation potential, environmental and social impacts. - High level project pitch to be presented to potential financers and investors Activity 3 Deliverables Deliverables Report on development of the selected business model for a specific state-owned mill company. Delivery date Week 48 after project inception Activity 4 Overview of access to financing options The CTCN team will provide an overview of access to financing options for: - The case analyzed in activity 3 - The feasible business models identified in activity 2 that reflect the different types of rice companies in Vietnam in terms of size and ownership. Among the financing options, carbon finance will be assessed. The consultant will explore how carbon finance can play a role in commercially sustainable rice residues valorization business models in Vietnam. Activity 4 Deliverables Deliverables Detailed Overview of access to financing options. Multilateral, PPP, impact investment, List of potential sources of funding High level list of concrete actions required to develop the project to final investment decision. Delivery date Week 48 after project inception Page 15 of Synergies and Baseline Setting

16 There are various programs to mitigate climate change, essentially from the Ministry of natural resources and environment. International technical cooperation project such as that of the joint global UNIDO-UNEP Resource Efficient for Cleaner Production (RECP) Program support the rice sector by exploring opportunities for improved resource productivity and reduced pollution intensity. In the context of that work, so far "low hanging fruit" measures have been implemented in several rice milling companies, with almost no investment needed, leading to an immediate benefit in terms of energy savings documented to amount to 5-7% of the total electricity consumed. This overall improvement of the energy efficiency and management has created confidence among the companies, thereby allowing the proponent to better understand the specific context, future strategy and needs. This basis allowed proposing additional highimpact measures requiring investments in technology and system implementation. In fact some companies have started considering far-reaching investment programs for upgrading their production facilities. Companies expressed needs for technical assistance for implementing biomass conversion technologies. A market study on biomass valorization for thermal energy in Vietnam is on-going with the objective to get more insights into the range of products, prices, potential user and client groups, technologies and also business models that are relevant. The CTCN intervention would be instrumental in pursuing and concretizing these opportunities. Timeline The table below provides an overall timeline for the CTCN assistance. Activity Month 1 Development of decision support tool 1.1 Generate a list of criteria and indicators (technical, economic, sustainability) 1.2 Develop the tool Milestone 1: Report on ready to use tool 2 Analysis of business models 2.1 Identify existing and propose new business models 2.2 Analysis of 2.1 results with real data Milestone 2: Report business model analysis 3 Analysis of a bankable Project 3.1 Apply decision support tool to selected company 3.2 Assess economic feasibility of the selected technology and business model Milestone 3: Report on technology/business model application Page 16 of 24

17 4 Overview of financing options Milestone 4: Report on financing opportunities 2.3 Expertise required The following expertise and meetings are required to carry out the aforementioned activities Expertise: a) Expertise required for the technology and routes assessment: Expertise and deep knowledge on technologies in biomass combustion, gasification, pyrolysis Expertise in fuel production and fuel quality Expertise on fuels properties under combustion conditions and on pre-treatment and conditioning of difficult biomass fuels. Experience in upgrading of low-quality biomass feedstocks to high-quality biomass fuels Expertise on biomass chains techno-economic and sustainability assessments. b) Expertise required for the business case development: Experience in (bio-) renewables and power markets, biomass valorisation projects (pelletisation, briquetting, others). Experience on economic evaluation of projects Experience and contacts with regional and international bioenergy market players Meetings required: a) Kick off meeting b) Visits to rice mills companies (different scales of production) c) Midterm project meeting d) Project finalisation Others: a) Travel and per diem for experts are included in the proposed budget in this response plan b) In addition, resources needed for communication (phone) as well as printing and dissemination of material produced (presentation, reports, briefs, etc.) are considered to be included in the budget in this plan. 2.4 Main partners and stakeholders Partners Ministry of Natural Resources and Environment of Vietnam (MONRE) Role to support the implementation of the CTCN assistance Official counterpart; oversight; M&E Page 17 of 24

18 Vietnam National Cleaner Production Centre (VNCPC) UNIDO Technical assistance and in-country working partner Coordination and synergies with on-going activities CTCN Provision of technical assistance and support investment Stakeholders Ministry of Agriculture and Rural Development (MARD) Role to support the implementation of the CTCN assistance Stakeholder regarding restructuring of rice sector Rice millers, early movers and others Uptake and implementation of measures and investment 2.7 Gender considerations The assistance request does not include specific gender considerations. However, the CTCN intervention will be gender-sensitive, which is a prerequisite in all CTCN technical assistance projects. This project s overall impact on gender equality and/or women s empowerment in Vietnam is expected to be modest, but the following questions will be asked during the assessments to make sure assumptions of gender neutrality will not lead to false conclusions: - How are women included in the rice milling industry today? - Could the changes in technologies proposed by the CTCN affect women and men differently? - If so, how can we make sure women and men will benefit equally? - Are women and men differently impacted by the effects of climate change and/or fossil fuel imports and use? The CTCN recognizes that due to diverging needs, rights, roles and opportunities women and can be affected differently by the CTCN intervention. The CTCN will make sure to include women in all related capacity building activities to ensure women will receive the necessary skills and education to benefit from the development and become successfully integrated. 2.8 Risk identification and risk mitigation Risk Consequence Probability Mitigation measure The data required for developing the proposed tool and methodology is not available Page 18 of 24 Lower accuracy of the assessment Medium/Low The expert team will use in-house data and engineering rules to estimate technology costs and sustainability performance.

19 The partners and stakeholders consulted propose a different approach to the assessment. A different assessment approach cannot be developed. Medium/Low The expert team will keep close contact with partners and stakeholders to assure that the assessment approach and results are on line with the response plan and comply as much as possible with the needs and expectations of partners and stakeholders. 3. Long-term impacts of the assistance 3.1 Expected climate change-related benefits CTCN climate technology impact Climate technologies adapted to national context are identified and prioritized to enable their deployment and/or transfer in the requesting countries Progress made against mitigation objectives (i.e. energy and carbon intensity reduction) as a result of the response New mitigation or adaptation technology projects/initiatives implemented as a result of the response New or strengthened policies/ laws developed, approved and enacted as a result of the response Capacities to access and attract public and private finance increase to enable financing of technology deployment Anticipated contribution from CTCN assistance The assistance will identify business models which can be deployed in the country The assessment will define feasible alternatives for a) the displacement of fossil based energy, b) avoidance of GHG emissions resulting from current practices for rice husks residues disposal When valorisation routes are proven feasible and investments are mobilised then technologies will be implemented If the assessment produces results that clearly speak for a certain technology, or clearly identifies a certain barrier, it could serve as the baseline for policy improvements to promote/mitigate the above. Policy improvement in target sectors is part of the national climate strategy Activity 4 of this response plan aims to identify access to financing Page 19 of 24

20 3.2 Co-benefits Sustainable Development Goal End hunger, achieve food security and improved nutrition, and promote sustainable agriculture Ensure access to affordable, reliable, sustainable, and modern energy for all Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation Take urgent action to combat climate change and its impacts Contribution from CTCN assistance Sustainability in the agriculture sector will be improved by utilizing agricultural wastes and thus reducing GHG emissions Access to locally produced renewable energy based on waste reduces high costs and risk for energy black outs associated with fuel imports for the affected companies Deployment of waste-to-energy technologies supports economic growth and creates employment opportunities by reducing costs for rice mills and facilitating the development of husk utilization businesses Provision of technology assessment tools supports sustainable decision making and innovation Deployment of waste-to-energy technologies replaces fossil fuels and avoids methane emissions from disposed wastes 3.3. Post-assistance plans and actions Following completion of the project, continued activities and support to replicate and broaden these activities will continue in a number of ways: - Direct upscaling by working with the second previously identified partner firm to generate a business plan and investment portfolio. - Pursuing synergies with national efforts to ensure that these outcomes are promoted across the country. For example, including the project results and findings into the national strategy for green growth that is being developed by the Ministry of Planning and Investment (MPI). - Working with MONRE to include these interventions into their programme for Nationally Appropriate Mitigation Actions (NAMAs) for further support. - Working with the Ministry of Industry and Trade (MOIT) to include support for these technologies into their existing programmes for modernisation and development of private enterprises. Page 20 of 24

21 3.4 Monitoring and Reporting of technical assistance results and impacts CTCN Technical Assistance Monitoring and evaluation activities will start to be carried out from the beginning of the implementation phase and continue after implementation has been completed. Involved parties will be the CTC, the response implementer, the NDE and requests proponent, as well as the key stakeholders affected by the intervention. The M&E workplan matrix below outlines the M&E activities, including responsibilities and frequency of reporting. The matrix is complemented by the logframe in Annex I, which includes indicators and means of verification that need to be reported on. M&E Workplan Matrix M&E activity Reported by Reported when Reported to Monitoring Progress report on each activity Response implementer Monthly CTM, NDE Stakeholder feedback report Selected rice mill with Four-monthly CTM, NDE response implementer Evaluation Inception report (1-2) pages with updated Response implementer First week CTM, NDE workplan/milestones Final activity report (achievements, barriers, lessons learnt, Response implementer End of intervention CTM, NDE post assistance plans) Post assistance impact report (cost-benefits, sustainability, etc.) Selected rice mill 6 months after intervention Response implementer, CTM, NDE Page 21 of 24

22 4. Signatures Signatures of the requesting country NDE Name: Title: Date: Signature: Request Proponent Name: Title: Date: Signature: Signatures of the CTCN CTCN Director Name: Title: Date: Signature: Climate Technology Manager Name: Title: Date: Signature: Page 22 of 24

23 Annex I CTCN Annex 1: Response Logframe Activity Description of subactivities conducted by the CTCN Output/ Deliverable Expected Outcome Main national partners involved Objectively Indicator Verifiable Means of Verification (data source, method of collection, responsibility and periodicity) Activity 1: Development of a valorization optimization tool/guideline for the selection of the optimal processing routes of rice husks. Activity 1.1 Propose and generate a list of quantitative criteria and indicators (technical, economic and sustainability) to be used for the comparison of different processing routes. Activity 2.1 Development of decision making tool/guideline to select optimal valorization routes of rice husks. Report and tool/guideline for the selection of the optimal valorization route of the rice husks. Provision of technology assessment tools supports sustainable decision making and innovation VNCPC MARDV Rice millers Report/excel-tool delivered Lists of criteria and indicators distribution, feedback and selection by main stakeholders; Outputs available and adapted to local context. Activity 2: Business models identification and analysis by applying developed tool Activity 2.1 Perform a detailed technical assessment of existing outlets and markets Activity 2.2 Analysis of the valorization routes defined in activity 2.1. Report on business models description and analysis. The assistance will identify business models which can be deployed in the country VNCPC Rice millers Report on business models description and analysis Outputs available and adapted to local context Activity 3: Activity 3.1 Apply Report on Deployment of waste-to- VNCPC Report on development Outputs available and

24 Detailed analysis of a bankable project, in partnership with a nominated firm. decision support tool to selected company Activity 3.2 Assess economic feasibility of the selected technology and business model technology/business model application. energy technologies supports economic growth and creates employment opportunities by reducing costs for rice mills and facilitating the development of husk utilization businesses. The assessment will define feasible alternatives for a) the displacement of fossil based energy, b) avoidance of GHG emissions resulting from current practices for rice husks residues disposal Rice miller of the selected business model for a specific state-owned mill company adapted to local context Activity 4: Overview of access to financing options Overview of access to financing options Report on financing opportunities Capacities to access and attract public and private finance increase to enable financing of technology deployment MARDV MNREV ADB GEF Report on financing opportunities Outputs available and adapted to local context Page 24 of 24