Wastewater Management and CDM for Molasses Based Ethanol Production Plant in the Philippines. Carbon Finance Unit The World Bank

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Wastewater Management and CDM for Molasses Based Ethanol Production Plant in the Philippines Carbon Finance Unit The World Bank

Key Points Partnership between Roxol Bioenergy Corporation and the World Bank with the ERPA signed on Jan 14, 2009 Renewable energy from methane and biogases replacing heavy fuel oil Revision of the ACM 0014 to allow for a Greenfield project Estimated emission reductions of 68,000 tco2e/year for this 100,000 liter/day ethanol plant A turn-key contract for both the ethanol plant and the wastewater management system

Roxol Bioenergy Corp Roxol Bionergy Corporation Roxol Bionenergy Corporation is the bioethanol unit of the Roxas Group. A wholly-owned subsidiary of Roxas Holdings, Incorporated, the company recently tapped KBK Chem-Engineering Pvt. Ltd., an Indiabased firm, for the setting up of a turnkey bioethanol plant in Negros Occidental amounting to about P1 billion. The facilities and equipment for RBC s plant include the fermentation and distillation in ethanol production, wastewater treatment, slops concentration, product storage as well as the steam boiler and turbo-generator components. The plant will be built next to Central Azucarera de La Carlota, Inc. (CACI) in La Carlota City, a sugar mill owned by CADP Group Corporation, a subsidiary of RHI.

ACM 0014 Applicability Scenarios

Roxol Ethanol Production and Wastewater Management System

Sources of Emission Reductions 1. Methane avoidance: by using anaerobic digestion system to capture methane 2. Displacement of Fossil Fuel used in the Ethanol production process: By using the methane from the wastewater treatment system to replace Heavy Fuel Oil (HFO) By mixing the vinasse with bagasse to replace HFO 3. Displacement of Electricity from the Grid: using the methane and the vinasses/bagasses mixture to power the steam turbine (4 MW) for internal use

Community Development Carbon Fund The CDCF provides carbon finance to projects in poorer areas of the developing world that combine community development with investment in clean energy.

Community Benefits The unique feature of CDCF projects has always been their community development aspect. In its fourth year of operations, the CDCF has developed stricter criteria for assessing community benefits, reviewing community benefit plans, ensuring that communities are consulted and participate in defining benefits and verifying that such benefits are in fact delivered to communities before payment is made to the project developer.

Roxol Community Benefit Plan This CDCF project will provide additional Community Benefits to 832 households where more than 40% of the population lives under US$2 per day. Developing under close consultation with the target communities, the Community Benefit Plan (CBP) includes: (i) community organizing, focusing on the formation and strengthening of people s organization and/or cooperatives; (ii) livelihood and entrepreneurial support through a micro-lending scheme for various productive activities; (iii) health services in the form of quarterly medical outreach to communities and assistance in obtaining health insurance; and (iv) education services such as vocational skills training for out-of-school youths, scholarship grants, a reading program and rehabilitation of the existing preschool/day care center.

Shared Lessons Learned Ensure baseline conditions especially for a greenfield project Ensure compliance with environment and social safeguard of the Philippines and the World Bank Professionally designed and implemented waste treatment system to optimize the biogas generation Stakeholder consultation and participation in the design of the community benefit package

Thank you Carbon Finance Unit The World Bank Please send questions/comments to Nat Pinnoi at npinnoi@worldbank.org http://www.carbonfinance.org