Climate Change Unit Uruguay

1
Climate Change Unit - Uruguay
Project ProposalSubstitution of anaerobic
ponds of industrial effluent treatment, for
intensive anaerobic processes
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Climate Change Unit - Uruguay
Framework reduction of GHG emissions from the
Waste Sector (Industrial Wastewater sub sector)
is very important for Uruguay
Objective abatement of the GHG emissions
associated with wastewater treatment systems
based on anaerobic stabilization ponds, to 67 of
their theoretical value
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Climate Change Unit - Uruguay
Technical proposal Substitution of nine
industrial wastewater treatment plants, currently
being operated by anaerobic stabilization ponds,
for intensive treatments plants that use
anaerobic digesters for the capture and
controlled burning of the methane gas generated.
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Climate Change Unit - Uruguay
Owner and financier of the project The nine
companies involved have to create a Temporary
Association (TA) among them DINAMAs Climate
Change Unit will act as facilitator for the
creation of the TA TA is the owner of the
certified emissions reduction, which will be used
to reintegrate the funds to the financing agency.
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Climate Change Unit - Uruguay
Initial investment US 1.015.233 Annual support
US 1.570.173 is required Emission reduction
3.691.876 Tons of CO2 equivalent Abatement Cost
4,87 US/Ton. Note 1 Costs may be abated by
training the actual staff of the companies
instead of create new job posts. Note 2 All
figures given on the basis of the year 2002
dollar.
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Climate Change Unit - Uruguay

• Investment costs (new UASB reactors)
• Concrete US 887.177
• Equipment US 10.800
• Pumping well US 45.000
• Burner US 18.000
• Ponds recovery US 25.763
• Terrain US 1.493
• Band filter US 27.000
• TOTAL US 1.015.233

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Climate Change Unit - Uruguay

• Operation and Maintenance costs (new UASB
  reactors)
• Staff US 1.450.148
• Operators (two per shift)
• Foremen
• Plant Chief
• Supplies US 70.525
• Maintenance US 49.500
• TOTAL US 1.570.173

8
Climate Change Unit - Uruguay
9
Climate Change Unit - Uruguay
FINANCIAL EVALUATION Actual Net Value of the
total incremental costs 17.973.071 Opportunity
Cost 5 annually Actual Net Value of the
abated emissions in CO2 tons (Assumption CH4
is 23 times more thermo active than CO2)
3.691.876 Abatement Cost 4,87 US per CO2 ton
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Climate Change Unit - Uruguay
Employment Low Income Beneficiaries 67 over
total income Up-dated Value (opportunity cost
5) 11.258.554 High Income Beneficiaries 33
over total income Up-dated Value (opportunity
cost 5) 5.424.692 Total up-dated
Income 16.683.246
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Climate Change Unit - Uruguay
Owner of the project The TA, which involves the
nine industrial companies that present the
greater methane emission of the Sub sector
Direct beneficiaries of the project The same
nine industrial companies
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Climate Change Unit - Uruguay

• Financier risk
• The involved companies are not expected to
  withdraw from the market or go bankrupt in a near
  to medium future.
• Financier participation is needed at the very
  beginning of the project, to allow initial
  investments.
• The commercialization of credits from certified
  CO2 emissions reduction is expected to be able to
  return the investment in a very short time (about
  3 years).

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Climate Change Unit - Uruguay

• Possibilities of Project Success
• Institutional framework gives very good
  conditions for CDM projects in Uruguay
• Guide for the Submission of CDM projects for
  their approval at the national level
• Letter of application for approval
• Submission of the Project Document (PDD)
• Previous Environmental Authorization, if needed
  (MVOTMA DINAMA)

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Climate Change Unit - Uruguay

• Guide for the Submission of CDM projects for
  their approval at the national level (cont.)
• Declaration from the proponent concerning the
  contribution of the Project to the sustainable
  development of the country
• Assessment by the DNA, using SD criteria/
  indicators
• Detailed information concerning the procedure
  used to collect the public comments relative to
  the project, the comments received and the way in
  which the same were considered in the project
  document

15
Climate Change Unit - Uruguay
Project ProposalSubstitution of anaerobic
ponds of industrial effluent treatment, for
intensive anaerobic processes THANK YOU!