Co-Benefits of Financing Vertical Shaft Brick Kilns in Nepal

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Co-Benefits of Financing Vertical Shaft Brick
Kilns in Nepal

• Bhushan Tuladhar,
• Environment Public Health Organization (ENPHO),
  Nepal
• Jeeven Acharya Anil Raut
• Winrock International Nepal

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Presentation Summary

• Air Quality Brick Kilns
• Vertical Shaft Brick Kilns
• AQ Benefits of VSBK
• Potential CDM Benefits

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Air Quality Issues in Nepal

• Indoor AQ is a major concern
• Biomass supplies 85 of energy needs
• Rate of urbanization is very high
• Air quality is a major problem in Kathmandu Valley

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Air Quality Brick Kilns

• 166 brick kilns in Kathmandu Valley
• Brick demand is 1.1 4 billion/yr growing at 11
  /yr
• In 1993, brick kilns contributed 27 of PM10
• Till 2003, most brick kilns utilized very
  polluting Moving Chimney Bulls Trench Technology
• Since then new cleaner technologies have been
  introduced
• Brick Kilns operate in winter and dry season,
  when air pollution is also at its peak

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Inventory of PM10 Sources in Kathmandu Valley
(1993)
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Transformation in Kathmandus Brick industry
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Monthly Average PM10 in Kathmandu Valley
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VSBK Technology
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VSBK Technology

• Initially developed in China
• First introduced in Nepal in 1991 Reintroduced
  2003
• Energy Efficient and very low emission
• Effective combustion
• Arrangement of bricks act as a dust strainer
• Energy conservation due to natural up drought
• Vertical kiln with stationary fire and moving
  brick
• Operates throughout the year Bulls Trench Kilns
• Production capacity about 6,500 bricks per day
  per shaft

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CDM Potential in Nepal

• Nepal has ratified the Kyoto Protocol
• Limited potential for large scale projects
• Some potential in promoting renewable energy
  energy efficiency
• Biogas project has been registered
• Projects being considered include solar
  lighting, improved cook stoves, solid waste
  management, electric vehicles
• In the industrial sector, brick industry presents
  a major opportunity for CDM and AQ benefits

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What Makes VSBK a CDM Project

• New technology with low adaptation rate
• 3 VSBK compared to more than 100 Fixed Chimney
• 40-50 energy efficient than Fixed Chimney
• VSBK 0.069 kg/brick FC 0.14 kg/brick
• Brick production is energy intensive cost of
  coal is about 40 of total operating cost
• Higher capital cost and relatively lower return
  on investment than fixed chimney
• Pay back period - FC 1yr 2 mo. VSBK 2 yr. 2
  mo.
• More technical know-how required
• High local environmental benefits

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Emission from Various Types of Brick Kilns
Compared to Moving Chimney BTK, VSBK Emission is
less by a factor of 14 Compared to Fixed Chimney,
VSBK emission is less by a factor of 3
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Emission Reduction through VSBK
Source Institute of Environmental Management,
May 2005
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Main barriers for Promotion of VSBK

• Investment Barrier
• Initial investment FC US64368 VSBK (six
  shafts) US 133,200
• Technological Barrier
• Barrier of prevailing practice

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VSBK CDM Project Activity

• 72 shafts in KTM valley in five years
• 10 Years crediting period, starting 2006
• Baseline is fixed chimney
• Baseline emissions 28,241 tCO2e/yr
• Project emissions 13,891 tCO2e/yr
• 14,351 tons of CO2e saved per year
• At 7/ton 100,457/year
• Distribution of revenue 40 to entrepreneur 40
  to VSBK program 20 for social activities
• Currently, PDD is being revised (prepared by
  Winrock International, Nepal under ADB funded
  PREGA project)

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CO2 Reduction

• Emission from Fixed Chimney
• To produce 8.1 million bricks/yr (actual
  production from FC)
• Coal use 1,133 tons
• Total CO2 emission 2,792 ton (CO2
  emission/brick 0.345 kg/brick)
• Emission from VSBK
• To produce 8.1 million bricks/yr (to produce same
  as fixed chimney)
• Coal use 557 tons
• Total CO2 emission 1,373 tons (CO2
  emission/brick 0.175 kg/brick)
• Emission reduction from 4-shaft VSBK (brick
  production 4.55 million bricks/yr)
• CO2 emission reduction/brick 0.175 kg/brick
• Total CO2 emission reduction 797 ton/year

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Challenges

• Financial
• High project development transaction cost for
  CDM projects
• Fixed chimney is financially very attractive
• Technical
• CDM is complicated and understanding of CDM is
  very limited
• Difficult to verify emission saving
• Institutional
• Capacity to develop and process process CDM
  projects
• Bringing together several kiln owners can be
  difficult

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Conclusion

• VSBK can significantly reduce air pollution in
  Kathmandu Valley
• Existing investment and technological barrier has
  led to very low adoption rate of this clean brick
  kiln technology
• Low energy consumption per brick in VSBK provides
  opportunity for CDM
• Promotion of VSBK in Kathmandu valley can provide
  a good example for co-benefit of local air
  pollution and global GHG emission

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Thank You