CEIA CDM WORKSHOP

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CEIA CDM WORKSHOP

• EXPERIENCE WITH CDM
• A VIEW FROM THE TRENCHES
• POLLUTECH ENVIRONMENTAL CONSULTANTS
• GREGORY M. BROWN, P.ENG, M.A.Sc, MBA

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POLLUTECH ENVIRONMENTAL CONSULTANTS

• Leaders in the implementation of environmental
  technologies nationally and internationally for
  industrial and municipal applications
• Incorporated in Ontario in 1969, serving our
  clients for 32 years
• Permanent offices in Oakville and Sarnia,
  Ontario, Canada
• Strategic alliances in USA, Spain, China, Egypt,
  Uruguay, Chile, Costa Rica, and Nicaragua

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POLLUTECH ENVIRONMENTAL CONSULTANTS

• Pollutech provides independent and objective
  waste energy management services
• With Climate Change projects we facilitate the
  generation and sale of greenhouse gas emission
  reductions

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CLEAN DEVELOPMENT MECHANISM

• The Clean Development Mechanism was created by
  Article 12 of the Kyoto Protocol
• Article 12 of the Kyoto Protocol allows parties
  not included in Annex 1 (developing countries) to
  benefit from project activities resulting in
  certified emissions reductions, and Annex 1
  parties to use certified emission reductions to
  contribute to compliance with their quantified
  emission limitation and reduction commitments

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CLEAN DEVELOPMENT MECHANISM

• The specific rules governing the implementation
  of the CDM are hoped to be decided (???) at the
  COP 6bis meeting in June 2001
• This presentation provides a summary of a
  Pollutech project involving the ongoing
  application of the CDM to an energy from waste
  project in Nicaragua

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COMPANIA LICORERA DE NICARAGUA

• Established in 1890
• 150,000 L per day rum distillery
• Light and aged rum products
• Commercial alcohol production
• Flor de Cana present in 19 countries around the
  world
• ISO 9001/9002, HACCP, Kosher Certification
• Pursuing ISO 14000

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WASTEWATER MANAGEMENT

• Characterization of wastewater discharges
• Evaluation of water conservation initiatives
• Evaluation of pollution prevention initiatives

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WASTEWATER MANAGEMENT

• Distillery operations generate 750 GPM of high
  strength wastewater
• 51,000 mg/L BOD
• 64,000 mg/L COD
• 5,500 mg/L TSS
• 208,000 kg/d BOD
• 262,000 kg/d COD
• 22,000 kg/d TSS

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TECHNOLOGY EVALUATIONS

• Pilot scale testing of ADI anaerobic technology
  conducted
• 94 BOD removal
• 82 COD removal
• 76 TSS removal
• Generation of biogas
• 65 methane
• 33 carbon dioxide

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PROCESS SCHEMATIC
Distillery
Slops Wastewater
Cooling Wastewater
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Distillery
Slops Wastewater
AnaerobicTreatment
Cooling Wastewater
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Distillery
Biogas
Slops Wastewater
AnaerobicTreatment
Cooling Wastewater
To Spray Irrigation or Receiving Steam
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To Distillery
Distillery
Steam
Boiler
Biogas
Slops Wastewater
AnaerobicTreatment
Cooling Wastewater
To Spray Irrigation or Receiving Steam
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Distillery
Steam
Boiler
Steam Turbine
Biogas
Slops Wastewater
AnaerobicTreatment
Cooling Wastewater
To Spray Irrigation or Receiving Steam
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To Distillery
Distillery
Steam
Boiler
Steam Turbine
Biogas
Electrical Energy
Slops Wastewater
AnaerobicTreatment
Cooling Wastewater
To Spray Irrigation or Receiving Steam
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To Distillery
To Distillery
Distillery
Steam
Boiler
Steam Turbine
Biogas
Electrical Energy
Slops Wastewater
AnaerobicTreatment
To National Grid
Cooling Wastewater
To Spray Irrigation or Receiving Steam
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To Distillery
Distillery
Steam
Boiler
Steam Turbine
Biogas
Electrical Energy
Slops Wastewater
AnaerobicTreatment
Aerobic Treatment
To National Grid
Cooling Wastewater
To Spray Irrigation or Receiving Steam
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PROJECT IMPLEMENTATION

• International Request for Proposals
• Technical and Financial Analyses of Bids
• Site visits to distilleries with similar
  technology
• Project initiation in 3rd - 4th Q 2001

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GREENHOUSE GAS EMISSIONS

• Current operations generate 236,000 ton CO2e/year
• Energy from waste project emissions are 44,000
  ton CO2e/year
• Emission reduction equivalent to 192,000 ton
  CO2e/year
• US0/year at US0/ton C
• US1,044,480/year at US20/ton C

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THE CDM PROCESS

• To be certified, projects will require
• voluntary participation approved by each Party
  involved
• real, measurable and long term benefits related
  to the the mitigation of climate change
• reductions that are additional to any that would
  occur in the absence of the certified project
  activity

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THE CDM PROCESS

• CDM projects are required to result in emission
  reductions that are additional to any that would
  have occurred in the absence of certified project
  activity
• The easiest tests of additionality are the
  introduction of new technologies to the market or
  projects where emission credits are a critical
  economic factor
• All CDM projects are nation to nation bilateral
  agreements requiring the consent of the Canadian
  and host country governments

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THE CDM PROCESS STEPS

• Establishment of emissions baseline
• Quantification of emission reductions achieved by
  the project
• Verification of emission reductions on an annual
  basis
• Host Country project recognition
• Investor Country project recognition
• Host Country - Investor Country Project Agreement
• Registration of project with the UNFCCC
• Sale of Credits on the world market annually

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THE CDM PARTICIPANTS

• Canadian CDM/JI Office
• Nicaraguan CDM Office

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THE WORLD BANK PROTOTYPE CARBON FUND

• Project has been preselected by the PCF
• US3.0 million to purchase GHG credits
• Project Identification Notice (PIN)
• Nicaragua No Objection
• Project Concept Note (PCN)
• Nicaragua Letter of Endorsement
• Project Appraisal Document (PAD)
• Monitoring and Verification Protocol (MVP)
• Emissions Reductions Purchase Agreement (ERPA)

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THE CDM PARTICIPANTS

• Canadian Commercial Corporation (CCC)
• Export Development Agency (EDC)
• Financing Agencies
• International Finance Corporation (IFC)
• Inter-American Investment Corporation (IIC)
• Central American Bank for Economic Integration
  (CABEI)
• UNFCCC

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CDM PROJECT COORDINATION
CLNSA
CANADACDM
IFC
CABEI
POLLUTECH
NICARAGUACDM
IIC
EDC
UNFCCC
CCC
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CDM PROJECT ATTRIBUTES

• CDM can enhance the value and cash flow of
  international development projects
• CDM can result in complex implementation models
• Complexity can increase transaction costs
• Uncertainty - Need definitive rules for CDM
  projects
• Risk - Sale of Emission Reduction Credits

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POLLUTECH ENVIRONMENTAL CONSULTANTS

• Visit us in the Ontario Pavilion
• Visit us at www.pollutech.com