MONITORING REPORT Version 02. São Judas Tadeu Switching Fuel Project

Transcription

1 MONITORING REPORT Version 02 São Judas Tadeu Switching Fuel Project Monitoring period December 01 st, 2007 to December 31 st, 2008

2 Monitoring Report Page 2 CONTENTS A. General description of the small scale project activity B. Application of monitoring methodology and results

3 Monitoring Report Page 3 SECTION A. General description of small-scale project activity A.1 Title of the small-scale project activity: São Judas Tadeu Switching Fuel Project Monitoring report completed in 02/April/2009 Version 02 A.2. Description of the small-scale project activity: São Judas Tadeu, the project proponent, is a red ceramics industry that produces bricks for the local market. The project activity consists in the switching fuel originated through a study of the productive arrangement of the ceramist industries that promotes the sustainable development, performed by Instituto Ecológica and the Brazilian Service to Support Micro and Small Companies (SEBRAE). This study pointed out the possibility to switch native firewood by rice husk, which was unattractive due to the high investments and other barriers. The project developer considered the carbon credits incomes since the beginning to become the project activity viable. The plant used to consume about 20,400 m 3 of native wood from Cerrado 1 per year to feed the kilns and maintain a temperature of 900 o C for 72 hours producing around 932,000 ceramic devices per month. Nowadays the project developer consumes 0.7 ton of rice husk to burn approximately 1,000 ceramic devices. The firewood used in the ceramic was supplied by the state of Tocantins which is located in the north region of Brazil. The switching fuel project in São Judas Tadeu ceramic will reduce greenhouse gases and then, obtain carbon credits incomes, through substitution of the native firewood by rice husk for thermal energy generation used on the ceramic firing process. The rice husk is a renewable biomass that presents a shorter renewal cycle when compared to the native firewood renewal cycle, which is a non-renewable biomass and will not be used in the project activity. Therefore, the project scenario is based on the utilization of renewable biomasses to feed the kilns rather than using wood from areas without sustainable forest management, which was a pioneer practice in the region. The fuel switch was only feasible when considering the income derived from the commercialization of the carbon credits, since it was unattractive due to the barriers as high investments of the machinery and the adaptation time of the rice husk. Other barriers are listed below:! The project proponent had to build a shed with to stock the rice husk;! the efficiency of the ceramic decreased;! the rice husk produced more ashes then when compared with the wood, demanding more frequent cleanings of the kiln entrances;! the ceramic had to withstand more costs related to biomass transportation, once this nonrenewable biomass was delivered by lumberjacks and renewable biomass must be found 1 Cerrado is the regional name given to the Brazilian savannas. Around 85% of the great plateau which occupies Central Brazil was originally dominated by the Cerrado landscape, representing around 1.5 to 2 million km², or approximately 20% of the country's surface. There is great habitat variability in the different types of Cerrado which supports an enormous diversity of plant and animals species. The urban pressure and the rapid establishment of agricultural activities in the region have been rapidly reducing the bio-diversity of this ecosystem. Source: text adapted from:

4 Monitoring Report Page 4 and transported by the Ceramic, increasing the costs with drivers, diesel, freight and truck maintenance;! there is spending with electrical energy and with the equipment acquisition and maintenance, so the mechanic burners can operate;! despite the abundance of rice production in the state of Tocantins, in the period between harvests, a reduction of rice availability in the market is natural, which leads to price increases;! there was a lack of qualified work force to manage the new equipments, this required the submission of some workers to training and capacitating courses; and! The truck which used to transport the firewood must be adapted to the new fuel and was required the acquisition of two trucks to transport the biomass. In contrast to the project activity, the identified baseline scenario is the use of native firewood as fuel and the anaerobic decay of the rice husk disposed in an open dump. A.3. Current status of the project activity: VCS PD has been validating by the Designated Operational Entity TÜV Nord Cert GmbH and this present monitoring report will be verified by the same DOE. The monitoring data was kept according to monitoring plan described in VCS PD. The project activity did not employ other kind of fuel till the moment, apart from rice husk. The emission reductions due to the switching non renewable biomass to renewable biomass resulted in 19,566 tco 2 equ during the monitoring period of 01/December/2007 to 31/December/2008.

5 Monitoring Report Page 5 SECTION B. Application of monitoring methodology and results B.1. Title and reference of the approved baseline and monitoring methodology applied to the small-scale project activity: Category AMS-I.E: Switch from Non Renewable Biomass for Thermal Application by the User (Version 01 from February 01 of 2008 onwards) B.2. Monitoring period This report refers to the data registered during December 1 st, 2007 to December 31 st, B.3. Data and parameters applied: Data / Parameter: NCV biomass Data unit: TJ/Tonne of wood Description: Net Calorific Value of non-renewable wood Source of data Brazilian study carried out with Cerrado wood: Vale, A.T; Brasil, M.A.M; Leão, A.L. Quantificação e caracterização energética da madeira e casca de espécies de Cerrado. Ciência Florestal, Santa Maria; v.12, n.1, p Available at: < Value ofapplied: Justification of the This value will provide the energy generated by the amount of wood choice of data or that would be used in the absence of the project. It differs from the description of IPCC value because represents the net calorific value of the local measurement biome. methods and procedures actually applied : Any comment: The species used to calculate the average value are typical trees of Cerrado Biome that are usually employed as fuel in the ceramic industries of the region. IPCC default values shall be used only when country or project specific data are not available or difficult to obtain, according to "Guidance on IPCC default values" (Extract of the report of the twenty-fifth meeting of the Executive Board, paragraph 59). Data / Parameter:! biomass Data unit: ton/ m 3 Description: Specific gravity of non-renewable biomass Source of data Brazilian study carried out with Cerrado wood: Vale, A.T; Brasil, M.A.M; Leão, A.L. Quantificação e caracterização energética da madeira e casca de espécies de Cerrado. Ciência Florestal, Santa Maria; v.12, n.1, p ; Available at:

6 Monitoring Report Page 6 < Value applied: ton/ m 3 Justification of the The amount of wood used in the baseline was measured by volume choice of data or units. description of measurement methods and procedures actually applied : Any comment: The species used to calculate de average value are typical trees of Cerrado Biome and usually employed as fuel in the ceramic industries of the region. Data / Parameter: Data unit: Description: Source of data Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data Value of applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: EFprojected_fossil fuel tco2/tj CO 2 Emission factor of residual fuel oil IPCC 2006 Guidelines for National Greenhouse Gas Inventories. Source: _Combustion.pdf. Page Table tco2/tj In the baseline scenario, the probable fossil fuel that would be consumed in the absence of native wood without sustainable forest management would be the heavy oil. This fuel is more expensive than wood, however it can be a more plausible of substitute of wood than natural gas due to risks involving natural gas distribution. Applicable for stationary combustion in the manufacturing industries and construction. The fossil fuel likely to be used by similar consumers is taken the IPCC default value of residual fossil fuel. Data will be kept for two years after the end of the crediting period or the last issuance of carbon credits income for this project activity, whichever occurs later. BFy (m3/ thousand of ceramic devices) Consumption of non renewable biomass per thousand of ceramic devices produced in year y Historical data from project developer 1.82 (m3/thousand of ceramic devices) or 1.04 (tonnes/thousand of ceramic devices) The value was acquired through the average consumption during the years when the ceramic used to consume non sustainable wood. This value is in accordance with the data acquired in other ceramics that employ the same type of kilns The value is employed to calculate the real amount of wood displaced to maintain the ceramic production in the baseline scenario. Data is in accordance with TAPIAS, , which estimates an approximate value for this kind of kiln ( Paulistinha ) of m³/

7 Monitoring Report Page 7 thousand of pieces. B.4. Data and parameters monitored: Data / Parameter: PRy Data unit: Units Description: Average thousand of ceramic devices produced per month Source of data to be Controlled by the project developer. Value of data Please see table 4. Description of The measurement will be done by an internal control sheet monitored measurement by the project developer. methods and procedures to be applied: QA/QC procedures to be applied: Any comment: The lower value of biomass amount between the biomasses receipts and the biomass required to keep the production monitored by the project developer will be employed. Data will be kept for two years after the end of the crediting period or the last issuance of carbon credits for this project activity, whichever occurs later. Data / Parameter: Q renbiomass Data unit: Tons Description: Amount of renewable biomasses Source of data to be Measured by the project developer Value of data Please see table 3 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: The amount of biomasses was monitored in accordance to the weight described in the receipts from the providers. Amount of biomass will be checked according to the receipts of purchase. The energy balance will be verified according to the amount of biomass applied. Data / Parameter: Leakage of non-renewable biomass. Data unit: tco2e Description: Leakage resulted from the non-renewable biomass Source of data to be Monitored Value of data 0 Description of The three sources of leakages predicted in methodology applied will measurement be monitored. Scientific articles, official statistical data, regional and methods and national surveys will be provided in order to ensure that there is no procedures to be leakage from non-renewable biomass (or to estimate the leakage).

8 Monitoring Report Page 8 applied: QA/QC procedures to be applied : Any comment: Data available regarding the ceramic industry fuel consumption will be utilized to monitor the leakage. Data will be kept for two years after the end of the crediting period or the last issuance of carbon credits for this project activity, whichever occurs later. Data / Parameter: ƒ NRB,y Data unit: Fraction of biomass or (percentage) Description: Fraction of biomass (wood) used in the absence of the project activity in year y. Source of data Survey methods Value of applied: or 98.04% Justification of the choice of data or description of measurement methods and procedures actually applied : QA/QC procedures to be applied : Any comment: Before the project activity, wood from areas without forest management was offered with low prices and high viability to the ceramics owner. Thus, the totality of fuel employed in the baseline scenario is from non-renewable origin. However, according to Klink (2005) 2, Cerrado Biome has only 1.9% of its total area with sustainable use, thus, 98.1% of its forest resources can be considered nonrenewable. Also it was add the amount of wood saved by similar projects that are being developed by Carbono Social with the same methodology in the region. It was measured the amount of 4,862,232 m3 of wood in 10 years, representing around 0.06% of total Cerrado area. Hence, the Fraction of non-renewable biomass applied is 98.04%. The monitoring of this parameter will be based in national and international articles and database every monitoring period. The sources will provide information about the sustainable use of Cerrado biome. Wood saved from projects with same biome and applied methodology developed by Carbono Social was considered in this fraction. CDM or VCS registered projects will also be included in this fraction if placed in the same region and methodology. It will be employed in order to estimate the amount of nonrenewable biomass. 2 KLINK, C. A. ; MACHADO, R. Conservation of the Brazilian Cerrado, Belo Horizonte, v. 1, n. 1, p , Available at:

9 Monitoring Report Page 9 Data / Parameter: Data unit: Description: Source of data to be Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Origin of Renewable Biomass Not applicable Renewable origin of the biomass Controlled by the project developer Renewable biomass This information will be given by the biomasses providers. The biomass will be considered as renewable if it is according to the definition given by the methodology AMS-I.E.-Switch from Non Renewable Biomass for Thermal Applications by the User version 01 from February 01 of 2008 onwards Data / Parameter: Renewable biomass surplus Data unit: ton or m³ Description: Amount of renewable biomass available Source of data to be Monitored Value of data Harvest Amount estimated Rice Husk (in tonnes) 74,470 Forest Residues (sawdust) (in m³) 215,516.4 Elephant Grass Not measured Detailed information in section 4.1 LEAKAGE. Description of measurement methods and procedures to be applied: QA/QC procedures to be applied : Any comment: It will be used to calculate the leakage of renewable biomass. The sources of leakages predicted in methodology applied will be monitored. The measurement of the leakage will be based in national and internal articles and database every monitoring period. The sources will provide information about the biomass availability in the project activity s region. Data available regarding the ceramic industry fuel consumption will be employed to monitor the leakage. Data will be kept for two years after the end of the crediting period or the last issuance of carbon credits for this project activity, whichever occurs later. B.5. Calculation of emission reductions The Category AMS-I.E: Switch from Non Renewable Biomass for Thermal Application by the User (Version 01 from February 01 of 2008 onwards) comprises small thermal appliances that displace the use of non-renewable biomass by introducing new renewable energy end-user technologies. The project s emissions from the combustion

10 Monitoring Report Page 10 of native wood are accounted in the same way as fossil fuel combustion, once it is not renewable and emits CO 2. The project activity generates less than the limits of 45 MWthermal for Type I Small scale project activities. Baseline (Equation 01) Where: ERy: By: fnrb,y: NCVbiomass: EFprojected fossil fuel: the baseline in tco2/tj3. Emission reductions during the year y in tco2e Quantity of biomass that is substituted or displaced in tonnes Fraction of non-renewable biomass (wood) used in the absence of the project activity in year y Net calorific value of non-renewable biomass in TJ/tonne Emission factor for the projected fossil fuel consumption in By is determined using the following option: Calculated from the thermal energy generated in the project activity as: (Equation 02) Where: HGp,y :!old : Quantity of thermal energy generated by the renewable energy in the project in year y in TJ. Efficiency of the system being replaced Where: SGE: PRy: (Equation 03) Specific energy which has to be generated in the process to produce a certain amount of ceramic devices in TJ/thousand of ceramic device. Amount of product produced in year y in thousand of ceramic devices (Equation 04) Where: 3 The fossil fuel likely to be used by similar consumers is taken the IPCC default value of residual fossil fuel.

11 Monitoring Report Page 11 SFE: Specific fuel energy needed for the process to produce a certain amount of ceramic devices in TJ/ thousand of ceramic device (Equation 05) Where: BFy: Amount of native firewood needed to produce a certain amount of product in tonnes/thousand of ceramic devices Using the Equations 3, 4 and 5 in the Equation 2 it results to: (Equation 06) B.6. Monitoring results Leakage (LE) The Methodology AMS-I.E: Switch from Non Renewable Biomass for Thermal Application by the User (Version 01 from February 01 of 2008 onwards) predicts the following possible three sources of leakage: A) If the project activity includes substitution of non-renewable biomass by renewable biomass, leakage in the production of renewable biomass must be considered The leakage from biomass projects, like the project activity, shall also be estimated according to the General guidance on leakage in biomass project activities (attachment C of appendix B) of Indicative Simplified Baseline and Monitoring Methodologies for Selected Small-Scale CDM Project Activity Categories, which identifies different emission sources based on the type of biomass considered (described in the table 8). Table 8. Sources of leakage according to the type of the biomass. Biomass Type Activity/ Source Shift of pre project activities Emissions from biomass generation/ cultivation Competing use of biomass Biomass from forests Existing forests - - X New forests X X - Biomass from croplands or grasslands (woody or non-woody) In the absence of the project the land would be used as a cropland/wetland In the absence of the project the land will be abandoned X X - - X -

12 Monitoring Report Page 12 Biomass residues or waste Biomass residues or wastes are collected and use. - - X Observing the table above, the source of leakage of the present project is the competing use of rice husk. Also sawdust and elephant grass may be utilized due harvest reasons, for this reason the leakage prevenient from these biomasses are predicted herein. The possible sources of leakage of the present project are showed below according to each type of biomass: Rice Husk The project activity will switch native wood to rice husk, an abundant biomass in the region. The state of Tocantins is the sixth largest producer of rice in Brazil, with thousand tons registered in the last year, and consequently a great supplier of rice husk. The Table 9 shows production of rice and rice husk in the state of Tocantins in the years of 2004 and Each ton of produced rice leads to the supply of 0.22 ton of rice husk 5. Table 9. Rice and rice husk production in 2004 e Harvest Area(ha) Rice(t) Rice husk (t) Productivity (kg/ha) 2004/ thousand 2005/ thousand thousand thousand thousand 2, thousand 2,500 As stated before, the state of Tocantins is the sixth largest producer of rice in Brazil. The harvest of 2005/06 produced thousand tons, generating around thousand tons of rice husks. The project activity will employ approximately 700 tons of biomass per month which lead de fraction of 0.009% of the total availability of this kind of biomass in the region. Thus, It can be concluded that the biomass available is widely superior then the amount required for this project i.e. leakage from rice husk can be neglected. B) Leakage relating to the non-renewable biomass shall be assessed from ex-post surveys of users and areas from where biomass is sourced. The following potential sources of this type of leakage could be identified: - Use/diversion of non-renewable biomass saved under the project activity by non-project households/users who previously used renewable energy sources. If this leakage assessment quantifies an increase in the use of non-renewable biomass used by the non-project households/users attributable to the project activity then baseline is adjusted to account for the quantified leakage. 4 Brazilian Rice Annuary of Available in : 5 Source: EMBRAPA. Available in:

13 Monitoring Report Page 13 - Use of non-renewable biomass saved under the project activity to justify the baseline of other project activities can also be potential source of leakage. If this leakage assessment quantifies a portion of non-renewable biomass saved under the project activity that is used as the baseline of other project activity then baseline is adjusted to account for the quantified leakage. - Increase in the use of non-renewable biomass outside the project boundary to create nonrenewable biomass baselines can also be potential source of leakage. If this leakage assessment quantifies an increase in use of non-renewable biomass outside the project boundary then baseline is adjusted to account for the quantified leakage. Regarding the use of wood, according to IBAMA registers 6, in the state of Tocantins the major native firewood consumers are the metallurgy companies, and with a smaller consumption amount are slaughterhouses and ceramists. In spite of the ceramic industries not representing the main share of wood consumption, the project activities contributes significantly to wood conservation since it will switch the use wood to renewable biomass. The implementation of this project in São Judas Tadeu Ceramic is breaking the culture of wood burning in Tocantins and consequently, several Ceramics are becoming interested in implementing this project by means of carbon credits incomes considering the sustainable development in the region. With the implementation of the project activity, São Judas Tadeu Ceramic will avoid the consumption of about 510 ha 7 per year of Cerrado native vegetation, and added to the others Ceramics which will perform the switching of fuel, they will contribute to the preservation of around 3,000 ha per year. Despite the small amount to be substituted in relation to the wood employed in metallurgy companies, these types of project activities may contribute to the reduction of the growing deforestation rate of Cerrado biome. Instituto Ecológica is located in the state of Tocantins and it can be an important tool in stimulating the avoidance of native wood burn in the local ceramics kilns. It is known that in the project activity s region, the deforestation is also carried out in order to create pastures in farms, and the revenues from the wood sale compensate the high deforestation costs. Once the biomass is not consumed, in addition to the direct impact due to the demand decrease, it is expected that the commercialization of wood will decline and consequently, the deforestation will reduce. Thus, it will be more economically feasible for the farmer to recover a degraded area than to deforest it and sell the wood. Initially the project developer consumed wood from the nearby farms, however, as time went by, this resource became scarce and the distance from wood suppliers was gradually increasing. This fact shows how this impact of baseline activities is prominent and how the project activities can reduce deforestation. Therefore, the wood from Cerrado, including the amount displaced of São Judas Tadeu Ceramic s productive process, will likely be preserved due to the sustainable use of wood by the main consumers, particularly metallurgy companies, and to the implementation of this type of project in several Ceramics in the state of Tocantins. This leakage will be monitored in order to guarantee the project conservativeness. C) If the equipment is transferred from another activity or if the existing equipment is transferred to another activity, leakage is to be considered. The leakage is not applicable for this project activity in São Judas Tadeu Ceramic as there is no transference of equipment. 6 Available in Annex 1. 7 Considering that 1 hectare contains 40 m3 of wood.

14 Monitoring Report Page 14 Due to all the explanations described above, the present project activity does not encompass any type of leakage. Emission Reductions The crediting period according to the V-C-S 2007, standard which the project follows the rules, starts in the end of March 2006, this way the credits contemplates from December 2007 to December 2008: Table 1. Amount of biomass during the crediting period Period Rice Husk (Tonnes) December From January to December ,578 Table 2. Production during the crediting period Period Blocks (tonnes) December ,540 From January to December ,453,667 Period Table 3. Production, By and ERy Results Production (Thousand of ceramic By (Tonnes) devices) ERy(tCO2e) December 31, ,292 Total ,292 January ,254 February ,402 March , ,077 1,520 April , ,207 1,702 May , ,337 1,887 June , ,091 1,539 July ,324 August , ,045 1,474 September , ,129 1,592 October ,004 1,417 November , ,375 1,941 December ,222 Total ,454 12,952 18,274

15 Monitoring Report Page 15 Table 4. Emission reductions due to the project activity Period ERy ,292 January-December ,274 Emission Reductions from to ,566 Therefore, based on Category AMS-I.E: Switch from Non Renewable Biomass for Thermal Application by the User (Version 01 from February 01 of 2008 onwards) and on monitored data as well considering the high contribution to sustainability, the project participants request carbon credits due to emissions reductions achieved by the project activity resulted in tco 2 equ. The contribution to sustainability will be monitored applying the Social Carbon methodology, which is based in six main pointers: Technology; Natural; Financer; Human; Social and Carbon Resources. 8 According to Methodology AMS-I.E.-Switch from Non Renewable Biomass for Thermal Applications by the User version 01 from February 01 of 2008 onwards.

16 Monitoring Report Page 16 B.7. Date of completion of the monitoring report and the name of the responsible person(s)/entity(ies) The responsible for project monitoring is Ronivaldo Abraão from São Judas Tadeu Ceramic. The monitoring report was completed in January 23 rd, 2009 by Cézar Braga Alves, Heloísa Garcia da Mota and Flávia Yumi Takeuchi from CantorCO2e Brazil.

17 Monitoring Report Page 17 Annex-1. Documents provided by IBAMA regarding Cerrado deforestation: