Food From Thin Air, Inc.

& Philippine Backyard Piggeries Biogas Corporation

Solutions to Rural Poverty through Clean Sustainable Energy Climate Change Projects

Terms
FFTA - Food from Thin Air, Inc.
PBPBC - Philippine Backyard Piggeries Biogas Corporation

UNFCCC - United Nations Framework Convention for Climate Change

Kyoto Protocol - International treaty (2006-2012-2018)

CER - carbon emission reduction certificate issued by the UNFCCC

DNV - Det Norske Veritas, U.N. accredited third party auditor

The Poverty Trap problem

About 30-50% of rural households in the Philippines
raise 1-2 pigs in their backyard (contract grower or own) use firewood or charcoal for cooking from mangroves and forests spend a substantial amount of their time foraging for people food, pigs food and cooking fuels earn less than $1/day from raising pigs but need about $4.00/day for food adequacy cannot sustain livelihood because of the high cost of feeds, lack of capital, no land tenure produces 1.7 million tons of carbon/yr (U.S. EPA study) has not used digesters because of the low number of pigs/household (Winrock Foundation study)

The Environmental & Economic Solution

Install biogas digesters, increase pigs to 6 and use carbon credit revenues to create sustainable livelihood:
Protect the environment capture methane emissions save trees in mangroves and forests eliminate carbon and soot from cooking produce organic fertilizer Improve households economic conditions Provide 300 sq. m. lots for housing and planting areas have 1 pig to sell each month produce liquid fertilizer to use or sell access to economic support & training earn sbout $4/day for food adequacy Improve quality of life and productivity produce 6 hours of biogas cooking eliminate the use of firewood and charcoal for cooking shift from foraging to care of pigs, growing food shift from commercial feeds to site grown pig food

View from the Household Level

Pre-project household scenario:
1 pig 100% commercial feeds

P16 daily income (US$0.37)

Not continuous or sustainable

PROJECT INPUTS: Install biogas digesters Increase pigs to 6 Provide 300 sq. m. lots at US$12/month rent for housing site and planting hedged with using pig food plants

Project Outcome at the Household Level

Post-project household scenario:
6 pigs Sell 1 pig/month (buy piglet + cash)

30% commercial feeds, plant pig food

P154 daily income (US$3.31) Other benefits
Savings from charcoal and firewood 20 gallons of liquid fertilizer / week Can plant food for people also Cleaner environment Protect forest and mangroves Potential for ancillary activities

QuickTime and a TIFF (Unc ompress ed) decompress or are needed to see this picture.

Functions of PBPBC
Secure Philippine approvals
Identify 100 municipalities
for nationwide biogas program

1,000 households/municipality @ 16 CERs / household / year

Work with local entities

for economic initiatives

Monitor program to ensure:

Continued operationality and use of digesters Limit # of pigs to capacity of digester Success of annual third party verification Sustainability of technology transfer

Functions of FFTA, Inc.

Prepare design documents under Kyoto Protocol
Secure DNV validation and UNFCCC registration

Secure funding from international sources for economic initiatives

Implement pilot project Turn key approval to local corporation Secure annual DNV/ UNFCCC verification

Organization
UNFCCC
100 +/- Municipalities / Operating Entities 1,000 +/Households O.E.

DNV

FFTA UNFCCC approvals, CER Sales & Funding

PBPBC Monitoring & Funding

How to Fund the Program

Products
Individual Municipalities carbon story 16,000 CERs / year for each Municipality

Marketing Strategy

Sell Municipalitys Story to corporate sponsor / philanthropy Sell CERs to fund monitoring, transactional costs Start-up costs through corporate responsibility, philanthropy, carbon funds Operating costs through CER revenues

Funding Strategy

Niche - Poverty Alleviation CERS, Trademark Food from Thin Air CERs Start-up costs / municipality - $20,000
$10,000 for validation $10,000 for organizational start-up $200,000 for digesters (Department of Labor funds) $12,000 $12,000 $20,000 $32,000 $16,000 $68,000 to Food From Thin Air, Inc. for U.N. and third party verfication fees to operating entity (LGU, NGO, private party) to PBPBC for marketing expenses to household

Year 1-7 CER Revenues - $160,000 /municipality / year

Sample Economic Assistance - Housing /Co-op

15 m 6 m
ffff f f f f f ffff

15 m
f f f f f

15 m

6 m
ffff f f f f f ffff

15 m
f f f f f

15 m

6 m

3-Sow Lot
ffff f f f f f ffff ffff f f f f f ffff f f f f f

3-Sow Lot
ffff f f f f f ffff ffff f f f f f ffff f f f f f

3-Sow Lot
ffff f f f f f ffff

6 m ffff
f f f f f ffff ffff f f f f f ffff f f f f f

6 m ffff
f f f f f ffff ffff f f f f f ffff f f f f f

6 m
f f f f f

f f f f f

f f f f f

f f f f f

f f f f f

Co-op Lot

20 m

PBPBC will fund or be the conduit for funding economic initiatives to serve the households within the carbon credit activity. One such initiative is to set-up housing co-ops that will serve as training ground, transition housing and hatchery for sel-reliant households. Shown is a prototype design 1.1 hectares 30 lots, about 300 sq.m. average Lots will be planted with malunggay hedge for boundaries Hedge will produce 5 kg/day malunggay leaves 6 pigs needs 4 kg/day to offset 70% of commercial feeds Households will pay rent (P500/month) to encourage private landowners to duplicate implementation Additional area is available for planting household food

6 m

20 m

20 m

20 m

Co-op Lot

ffff f f f f f ffff ffff f f f f f 6 m ffff ffff f f f f f ffff

f f f f f

ffff f f f f f ffff ffff f f f f f ffff

f f f f f

ffff f f f f f ffff ffff f f f f f 6 m ffff ffff f f f f f ffff

f f f f f

ffff f f f f f ffff ffff f f f f f ffff

f f f f f

ffff f f f f f ffff

f f f f f

f f f f f

f f f f f

f f f f f

f f f f f

20 m

6 m

3-Sow Lot

f f f f f

3-Sow Lot

f f f f f

3-Sow Lot

20 m

Board of Directors (PBPBC)

Erwin Elechicon (Private Investor)

J. V. Tence (Private Investor)

Housing / Non-Profit Representative (e.g. Gawad Kalinga) CER Buyer Representative (e.g., Toyota Foundation) CER Buyer Representative (e.g. Shell Foundation) Economic Development Representative (e.g., Ayala Foundation) Herminio T. Banico, Jr. (Managing Director) Maria Gracia T. Banico (Managing Director) Vicente T. Banico (Managing Director)