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PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

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CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) Version 03 - in effect as of: 22 December 2006 CONTENTS A. B. C. D. E. General description of the small scale project activity Application of a baseline and monitoring methodology Duration of the project activity / crediting period Environmental impacts Stakeholders comments Annexes Annex 1: Contact information on participants in the proposed small scale project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring Information

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Revision history of this document Version Number 01 02 Date 21 January 2003 8 July 2005 Description and reason of revision Initial adoption The Board agreed to revise the CDM SSC PDD to reflect guidance and clarifications provided by the Board since version 01 of this document. As a consequence, the guidelines for completing CDM SSC PDD have been revised accordingly to version 2. The latest version can be found at <http://cdm.unfccc.int/Reference/Documents>. The Board agreed to revise the CDM project design document for small-scale activities (CDM-SSC-PDD), taking into account CDM-PDD and CDM-NM.

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22 December 2006

PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM Executive Board

SECTION A. General description of small-scale project activity A.1 Title of the small-scale project activity:

Natural Palm Oil Company Limited 1 MW Electricity Generation and Biogas Plant Project Version 03, Dated 26 November 2008.

A.2.

Description of the small-scale project activity:

The proposed project is implemented at the Natural Palm Oil Co., Ltd., a crude palm oil mill, which has a maximum production capacity of 45 tonnes of fresh fruit bunches (FFB) per hour. Its main products include crude palm oil (CPO) and fruit bunch by-products, such as kernel residues and fibres. Prior to the implementation of the proposed project, the mill has an average production at 209,973 tons of fresh fruit bunch (TFFB) per year1 and generates wastewater of around 360 m3 per day2. All the wastewater from the mill is treated through five (5) cascading lagoons. The minimum depth of these ponds is 2.5 m measured from the water surface to the bottom of the lagoons. The average atmospheric temperature in the region is 27.2oC3. These conditions result in anaerobic environment within the ponds, resulting in methane generation from the organic content (characterized by chemical oxygen demand or COD) of the wastewater. The treated wastewater from the lagoon is not discharged into any of water bodies but was used for palm oil tree plantation in the nearby area. This is a common practice which is also in compliance with Thai regulation. The project activity aims to treat the wastewater generated from a crude palm oil extraction process. It involves the installation of a wastewater treatment technology - the Complete Stirred Tank Reactor or CSTR. NPO is know in the palm oil industry as one of the first palm mills to install a waste water treatment system of this type. CSTR is a closed-tank digester which is designed to replace the existing open lagoon system of treating the wastewater. Biogas will be captured through the waste water treatment and used for electricity generation. The gross installed capacity at the plant is 1.064 MW. The generated electricity will be sold to the national grid. The project activity will primarily help reduce the amount of methane, which would otherwise be released from the open lagoon into the atmosphere. Also, the utilization of the biogas produced for power generation will replace fossil-based grid electricity, thus further reducing the GHG emissions. An open flare is installed for use in emergency situation. The biogas generation and utilization diagram is given below:
1 2

Production Sheet provided by The Natural Palm Oil Co. Ltd.

Wastewater amount is estimated based on the average production and average wastewater generation at 0.51 m3/t FFB. This figure derives from a sector study prepared by GTZ at several Palm Oil mills in the South of Thailand.. http://www.moi.go.th/MOIWEB/jsp/report/MRPN0402_report.jsp?line=12&flag=report&year=2546&region_id=04 &moi_id=84&amphur=00&tambon=00&moo=00

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Wastewater

CSTR

Treated wastewater to open lagoon Electricity

~ 100%

Gas Engine

Emergency

Flare

Figure 1. Biogas generation and utilization diagram Sustainable Development Benefits of the Project The implementation of the proposed project is in line with the policies and strategies promoted by the Thai Government, which has formulated future targets for the introduction of renewable energy technologies in various sectors. These policies are aiming at reducing the countrys dependency on imports of fossil fuels. The proposed project will directly support this goal. In addition, the project is also expected to contribute to other benefits that directly support a sustainable development of Thailand. In the following these expected impacts are described in relation to four dimensions. Economic dimension The construction, operation and maintenance of the biogas plant will generate local employment and thereby stimulating income generation. The replacement of grid electricity with biogas-generated electricity will enhance stable and power supply make more power available for productive use in the local areas. The CER value will also play a positive role to the national economy. Environmental dimension The proposed project activity captures biogas which otherwise would have been emitted into the atmosphere, and uses it for energy purpose and thereby promoting better local air quality. The risk of groundwater contamination is overcome by reducing the COD of wastewater in a closed-tank digester before it is released in to the tail-end ponds. The treated water is recycled for use in palm oil plantation itself, and is not released into any surface water body, thus promoting a better local environment and reduce dependency on water supply to the plant. The implementation of the project does not divert land under agriculture or natural growth or that is linked to cultural heritage. Therefore, it is not expected to affect any biodiversity sensitive areas or other ecologically or culturally important sites in the region. The sludge from the wastewater treatment system will be applied as fertilizer for agriculture, forest lands and plantation crops.

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Social dimension The involvement of local employees in the project activity will enable the enhancement of skills of the labour in the region by training them in different technical areas. In addition, the close collaboration between external experts and local counterparts is expected to promote the long-term sustainable partnerships, benefiting the local stakeholders. Additional services and business in the commercial and social sectors in the vicinity of the mill location are likely to arise due to the project activity. Technology dimension The project consists of diverse activities such as civil works in the construction of the reactor, buildings and necessary structures, mechanical works in the laying of pipelines for gas collection, transport and storages systems and electrical works in the installation and commissioning of the motors, pumps, engines and generators. Hence, the project activity will contribute both directly and indirectly, to increase the local technical skills in the operation and maintenance of biogas-power generation facility The project uses some imported components and hence facilitates the transfer of technology from outside the country. The use of this technology in wastewater treatment by the project owner will popularise the technology knowhow in the nearby areas and in the mills looking for similar technologies in the country. Also, the locally produced equipment may be put to use in other parts of Thailand for similar purposes. A.3. Project participants: Private and/or public entity(ies) project participants (*) (as applicable) Kindly indicate if the Party involved wishes to be considered as project participant (Yes/No) No Yes

Name of Party involved (*) ((host) indicates a host Party) Thailand (host) Denmark

The Natural Palm Oil Co., Ltd. (NPO) Ministry of Climate and Energy

Contact information on the above participants is provided in Annex I. A.4. Technical description of the small-scale project activity: A.4.1. Location of the small-scale project activity: A.4.1.1. Thailand A.4.1.2. Suratthani Province Region/State/Province etc.: Host Party(ies):

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A.4.1.3.

City/Town/Community etc:

Sincharoen Sub-district, Phrasaeng District. A.4.1.4. Details of physical location, including information allowing the unique identification of this small-scale project activity : NPOs crude palm oil extraction mill is located in Phrasaeng district, Suratthani Province, in the southern region of Thailand (Figure 2). Suratthani covers an area of 12,892 square kilometers or 2.5% of the land area of the country, and is the 6th (out of 76) largest province. It is situated 645 kilometers away from Bangkok in the south-west direction. The nearest highway is no. 41 and the nearest airport is Suratthani Airport. The project site is located at 82324.99" N Latitude and 991348.03" E longitude.

Suratthani Province Natural Palm Oil Co., Ltd., Phrasaeng District Figure 2: Location map of project site
Source: www.rtsd.mi.th and www.thai-tour.com

A.4.2. Type and category(ies) and technology/measure of the small-scale project activity: Type and Category of the project activity: The project falls under type (iii) project category of methane recovery with reference to Appendix B to the simplified modalities and procedures for small-scale CDM project activities. The scope of the project is waste handling and disposal.

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The project activity involves capture of biogas from the wastewater generated in the crude palm oil mill. The recovered biogas is used for the following purposes, in order of priority: i. To generate electricity for exporting to the national grid. ii. The excess biogas, if any may be flared for safety purpose. The project hence is in compliance with the following approved methodologies: AMS III H and, AMS I D. The CSTR technology is used in the project for biogas generation from wastewater high in organic content by anaerobic digestion. The organic matter in the wastewater is represented by its COD and BOD. The system comprises five major components: a biogas digester tank, a compressor unit, a gas storage system, a biogas de-sulphurisation unit, and 1.064 MW synchronous generator (Figure 3). The electricity produced will be sold to the national grid through the distribution network of the Provincial Electricity Authority (PEA)4 under the Very Small Power Producer (VSPP)5 Scheme, replacing fossil fuel-based electricity from the grid.

Figure 3: Flow diagram of the biogas digester system

Provincial Electricity Authority is a state enterprise; it operates and maintains power distribution lines in nonmetropolitan areas.

Very Small Power Producer or VSPP is very small-size power supplier using renewable resources as fuel. Maximum power exported from VSPP to the grid is limited at no larger than 10 MW. The VSPP scheme is launched as part of the government policy to promote renewable energy utilization in the power sector.

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A.4.3

Estimated amount of emission reductions over the chosen crediting period:

The crediting period of the project is 10 years. The total and yearly estimated emissions reduction during the crediting period is presented the following table:
Year 2009 (Jul Dec) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Jan Jun) Total estimated reductions (tonnes of CO2e) Total number of crediting years Annual average of the estimated reductions over the crediting period (tonnes of CO2e) Estimation of annual emission reductions in tonnes of CO2e 4,904 9,809 9,809 9,809 9,809 9,809 9,809 9,809 9,809 9,809 4,904 98,086 10 9,809

A.4.4. Public funding of the small-scale project activity: It is confirmed that no public funding is provided for the proposed small-scale project activity. A.4.5. Confirmation that the small-scale project activity is not a debundled component of a large scale project activity: Appendix C of the Simplified Modalities and Procedures for Small-Scale CDM project activities specify de-bundling in a small scale CDM project as follows: The debundling guidelines state that a proposed small-scale project activity shall be deemed to be a debundled component of a large project activity, if there is a registered small-scale CDM project activity or an application to register another small-scale CDM project activity: With the same project participants In the same project category and technology/measure Registered within the previous 2 years and Whose project boundary is within 1 km of the project boundary of the proposed small-scale activity at the closest point.

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It is confirmed that neither the proposed project complies with any of the above listed statements, nor has the project participants any other ongoing or future activity related to this project in anyway, and hence the project is not a de-bundled activity of a larger project.

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SECTION B. Application of a baseline and monitoring methodology B.1. Title and reference of the approved baseline and monitoring methodology applied to the small-scale project activity: The project is incompliance with the criteria of the following two methodologies for small scale project activities: (i) (ii) AMS III.H for Methane Recovery in Wastewater Treatment, Version 10, Scope 13 with reference to EB 42, 2008. AMS I.D for Grid connected renewable electricity generation, Version 13, Scope 1 with reference to EB 36, 2007.

These methodologies are the most relevant to the prevailing project at the time of preparing this PDD (Ref. www.unfccc.int/). B.2 Justification of the choice of the project category:

The proposed CDM project activity involves the implementation of CSTR reactor at an existing crude palm oil mill. The CSTR will treat the organic wastewater generated in the palm oil production process. The wastewater treatment system will treat wastewater directly after this leaves the palm oil mill. After treatment in the reactor the treated wastewater will run to the existing open lagoon system which will serve as a post treatment for CSTR. Biogas produced during the treatment process in the reactor, will be captured using appropriate collecting systems. The captured biogas will be used for electricity generation in a biogas gas engine of 1.064 MW (less than 15 MW). The estimated annual emission reduction, from methane recovery in the wastewater treatment, of the project activity during the crediting period is provided in the table section A.4.3, and from which it appear that is less than 60.000t CO2e in any year of the crediting period. These characteristics lead to the conclusion that the project satisfies the applicability conditions of AMS I.D and AMS III.H, category vi: Introduction of a sequential stage of wastewater treatment with biogas recovery and combustion, with or without sludge treatment, to an existing anaerobic wastewater treatment system without biogas recovery (e.g. introduction of treatment in an anaerobic reactor with biogas recovery as a sequential treatment step for the wastewater that is presently being treated in an anaerobic lagoon without methane recovery).

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B.3.

Description of the project boundary:

The spatial extent of the project boundary includes the project site where the CDM project is implemented. For the biogas recovered and grid electricity displacement, the spatial extent of boundary is as described by AMS III.H and AMS I.D. In the absence of the project, all of wastewater would be treated in the existing open lagoon system.

FRESH FRUIT BUNCH

Open Lagoon
Crude Palm Oil Mill
PALM OIL MILL EFFLUENT

(Project)

GRID

Electricity Gas Engine

Electricity
BIOGAS

CSTR Digester

Flare

Project Boundary

Figure 4. Project boundary line diagram B.4. Description of baseline and its development:

The baseline scenario is the continuation of the present lagoon-based treatment of wastewater and release of methane into the atmosphere. The biogas captured from the project will be used to produce electricity for exporting to the national grid. The above stated condition corresponds well with the methodologies as follows:

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(1) No. 6 scenario (vi) of the AMS III H methodology, Introduction of a sequential stage of wastewater treatment with biogas recovery and combustion, with or without sludge treatment, to an existing anaerobic wastewater treatment system without biogas recovery as suggested in indicative simplified baseline and monitoring methodologies for selected small-scale CDM project activity categories, III H, Version 10, Scope 13 EB 42. (2) AMS I D methodology, The renewable energy generation units that supply electricity to displace electricity from an electricity distribution system that is or would have been supplied by at least one fossil fuel fired generating unit. The baseline is the kWh produced by the renewable generating unit. as suggested in indicative simplified baseline and monitoring methodologies for selected small-scale CDM project activity categories, I D, Version 13, Scope 1, EB 36. Following are the data used to determine the baseline emissions:
Parameters Volume of wastewater Operating days of palm oil industry The inflow COD of the baseline system The outflow COD of the baseline system Methane correction factor for the wastewater treatment system Global Warming Potential of Methane Methane producing capacity of the wastewater Net Electricity produced by the renewable generating unit Grid emission factor Mass conversion factor Variables Qww,y Value 360 300 COD inflow COD outflow MCFww,treatment,BL,i GWPCH4 Bo,ww EGBE,y CEF 0.05225 0.00156 0.8 21 0.21 2,566 0.559 44/12 Unit m /day days/yr tonnes/m3 tonnes/m3 tCO2/tCH4 kgCH4/kg COD MWh/yr tCO2 / MWh tCO2/tC
3

Source Data calculated from average mill production data and wastewater generation rate6 Palm oil mill management Data from Palm oil mill7 Test report IPCC default value IPCC IPCC Calculation is shown in Annex 3 Data for grid emission factor in year 2007, provided in annex 3

According to Benchmarking implementation report by E3Agro project, the average wastewater generation rate is 0.51 m3/ton FFB and NPO consumed FFB at an average 209,973 ton/year or 700 ton/day This figure is based on average of 2 COD data of influent which were tested by 3rd party during year 2003.

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B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the registered small-scale CDM project activity: In line with Attachment A to Appendix B of the simplified modalities and procedures for small-scale CDM project activities, a project participant shall provide explanation to show that the proposed project activity would not have occurred anyway due to at least one of the following barriers: (a) (b) (c) (d) Investment barrier Technological barrier Barrier due to prevailing practice Other barrier

The proponent of the present proposed project has opted to argue for the additionality of the project due to the following barrier Technological barriers Barrier due to prevailing practice

These barriers are elaborated on in the following section. Technological barrier The proposed project involves the installation of a wastewater treatment concept, which is predominantly used in the energy sector to turn waste into energy and not as a wastewater treatment system. It should be kept in mind that the project owner is specialized in processing fresh fruit bunch into crude palm oil and has no previous experience in operating a bio-chemical process as well as generating power from biogas. Natural Palm Oil is known in the Thai palm oil industry to be the first plant that adopts a waste water treatment technology which has only been tested in one previous full scale demonstration plan at Asian Palm Oil Company on Phuket. An alternative to the proposed project activity would be a less advanced concept, such as a number of aerators which could be placed in existing open lagoons. Such a concept is also well known from other sectors like inland aqua-cultural sector, where aerobic conditions need to be ensured. Aerators for agroindustrial sectors to treat wastewater are also available in the Thai market and are occasionally recommended by local authorities to industries, which have limitations in expansion of an open lagoon system, when these may not be sufficient to comply with authorities recommendation. These aerators represent a relatively low cost and less advanced technology, which would be associated with much lower risk, but which also are likely to result in a lower emission reduction than the proposed project activity. Anaerobic open lagoon based system is the wastewater treatment practice which is seen most widely at crude palm oil mill in Thailand. This practice requires low capital and O&M costs and low maintenance costs. The related technology, skills and labour are readily available in Thailand and there are few risks associated with this technology. Therefore, this treatment system does not face technical barriers.

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Though several anaerobic bioreactor technologies, such as UASB, AFFR, and CSTR (the one to be implemented in this case) are available to treat wastewater, all these technologies have not diffused into the country. In a paper from 2006 it is stated that Lack of standards on bioenergy systems and equipment, which is usually the case for technology-imported countries, is the barrier to the commercialization of bioenergy technologies.8 In relation to skills of human resources it is noted that all components in the treatment system require significant skills for their installation, operation and maintenance. All operating parameters for the system need to be maintained at the right level for the reactor to receive quality feedstock. Special procedures have to be introduced and staff required to be trained in proper operation of the biogas plant and gas engine. The need for human resource development has been address by a paper entitled Biomass and biogas energy in Thailand: Potential, opportunity and barriers. In this paper it is stressed that in general, it is necessary that human resource development be properly planned to support the promotion of bioenergy applications. The Ministry of Energy does not yet have any clear policy on human resource development.9 The operating conditions need to be carefully maintained for efficient operation of the reactor. Owing to such inherent risks and non-availability of appropriate technologies for adequately addressing all operation and maintenance issues, CSTR has not been the most preferred choice for wastewater treatment in the country. Commonly available, simple, cost-effective technologies using either anaerobic or aerated lagoons have been the adopted ones in most cases. It can be concluded that the CSTR technology reasonably poses significant risks in operation and maintenance in relation to its simple counterparts. The project developer also expects to overcome the above mentioned technological barrier by utilizing CDM revenue to install more reliable equipment and provide necessary technology training to their staff which is necessary for the optimum operation of the project activity. Barrier due to prevailing practice Treatment using an open lagoon system has historically been the common way of handling wastewater from crude palm oil mill in Thailand10. According to the department of internal trade (DIT), currently there are 71 crude palm oil mills in Thailand. As of November 2008, in Thailand there are totally 20 palm mills implementing the biogas system and applied for CDM project activity. Among these 20, only one plant has registered with UNFCCC in 2008, while another 7 mills got the Letter of Approval from Thai DNA11. The majority of these projects have been materialized within the past three years, which indicates that the project owners became aware of the CDM benefit and positive environmental impacts that the biogas technology could bring in. This became more firm after the first successful CDM registration of Korat Waste to Energy project on June 16, 2007. This information suggests that the CDM incentive has been a major deciding factor for many plant owners to invest in anaerobic digester and biogas utilization technology.

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S. Prasertsan, B. Sajjakulnukit / Renewable Energy 31 (2006) 599610 By S. Prasertsan, B. Sajjakulnukit Assessment of palm oil mill effluent as biogas energy source in Thailand by KMUTT www.tgo.or.th

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As the starting date of the project activity falls before the starting date of the validation, evidence is to be provided to show that the incentive from the CDM was seriously considered in the decision to proceed with the project activity. In accordance with Guidance on the demonstration and assessment of prior consideration of the CDM, the table below demonstrates the serious prior consideration of the CDM by the project participants. As indicated below continuing real actions have been taken by the project participants to secure CDM status for the project activity. Table : Demonstration of prior consideration of the CDM and continued action during implementation. Event Timing NPO signs agreement with consultant on CDM project development and 23 July 2003 biogas design NPO submits Letter of Interest to Danish Embassy 31 October 2003 CDM consultant submits PIN to Royal Danish Embassy 3 November 2003 NPO signs LoI with Royal Danish Embassy 19 December 2003 NPO 1st purchase - construction of biogas system 29 December 2003 CDM consultant signs agreement with Royal Danish Embassy 28 June 2005 NPO signs ERPA with Royal Danish Embassy 15 June 2006 PP propose project to Thai DNA for LoA December 2006 Thai DNA issued the LoA for the project activity 30 August 2007 Project Developer signed the first Validation agreement 5 October 2007 The table above indicates that the Project Proponent had made several actions and seriously considered the CDM before placing its first purchase for the construction of the biogas plant. The list also include several concrete actions and efforts of the project proponent in securing CDM status while implementing the project. B.6. Emission reductions: B.6.1. Explanation of methodological choices: The present project activity follows the approved small scale project methodologies, AMS III.H Methane Recovery in Wastewater Treatment, Version 10, Scope 13 with reference to EB 42, 2008. AMS I D Grid connected renewable electricity generation, Version 13, Scope 1 with reference to EB 36, 2007. Estimating the Baseline emissions: i Baseline emission from wastewater treatment (AMS III H) According to the methodology, the baseline emissions may consist of:

BE y = BE power , y + BE ww ,treatment , y + BE s ,treatment , y + BE ww ,disch arg e , y + BE s , final , y


Where,

(1)

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BEy BEpower, y BEww, treatment, y BEs, treatment,y BEww,discharge,y BEs,final,y

Baseline emissions in the year y (tCO2e) = Baseline emissions from electricity or fuel consumption in year y (tCO2e) Baseline emissions of the wastewater treatment systems affected by the = project activity in year y (tCO2e) Baseline emissions of the sludge treatment systems affected by the project = activity in year y (tCO2e) Baseline methane emissions from degradable organic carbon in treated = wastewater discharged into sea/river/lake in year y (tCO2e) Baseline methane emissions from anaerobic decay of the final sludge = produced in year y (tCO2e)

The project activity involves in baseline emissions as below, BEww, treatment, y: Baseline emissions of the wastewater treatment system will be accounted for the project as the baseline scenario is the continuation of the lagoon-based treatment system of wastewater and release of biogas into the atmosphere.

The project activity does not involve in baseline emissions below, BEpower, y: BEs, treatment,y: BEww,discharge,y: BEs,final,y: Baseline emissions from electricity consumption will not be accounted for as the baseline for wastewater treatment plant does not consume electricity or fuel. Baseline emissions of the sludge treatment systems will not be accounted for as the project activity doest not involve sludge treatment system. Baseline methane emissions from wastewater discharged into sea/river/lake will not be account for as the wastewater from existing open lagoon is not release into sea/river/lake. Baseline methane emissions from anaerobic decay of the final sludge will not be accounted for as the sludge from open lagoon was provided to the farmers nearby for the use as fertilizer.

The baseline emissions from the lagoon are estimated based on the chemical oxygen demand (COD) of the effluent from the palm oil mill that would enter the lagoon in the absence of the project activity, the maximum methane producing capacity (Bo) and a methane conversion factor (MCF) that expresses what proportion of the effluent would be anaerobically digested in the open lagoons.

BE ww ,treatment , y =
i

Qww ,i , y CODremoved ,i , y MCFww ,treatment , BL ,i Bo, ww UFBL GWPCH 4

(2)

Where, Qww,i,y CODremoved,i,y MCFww,treatment,BL,i i = Volume of wastewater treated in baseline wastewater treatment system i in year y (m3) = Chemical oxygen demand removed by baseline treatment system i in year y (tonnes/m3), measured as the difference between inflow COD and the outflow COD in system i = Methane correction factor for baseline wastewater treatment systems i (MCF value as per table III.H.1) = Index for baseline wastewater treatment system

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Bo,ww UFBL GWPCH4

= Methane producing capacity of the wastewater (IPCC lower value for domestic wastewater of 0.21 kg CH4/kg COD) = Model correction factor to account for model uncertainties (0.94) = Global warming potential for methane (value of 21)

ii Baseline emission for grid connected renewable electricity generation (AMS ID) The captured biogas will be utilized for electricity generation. The excess electricity is exported to the grid, thereby reducing the consumption of the fossil fuel-based grid electricity. The baseline emission associated with grid connected renewable electricity generation is calculated as per the following formula, given in AMS I D.

BE power , y = EG BE , y CEF
Where, EGRE,y CEF

(3)

= Avoided grid electricity due to net electricity produced by the renewable generating unit (MWh/yr) = Grid Carbon Emission Factor (tCO2/MWh) : 0.559 tCO2/MWh for the year 2007 (refer Annex 3)

Grid Carbon emission factor

The project proponent has chosen to follow option (b) of the methodology, the weighted average emission (in tCO2e/MWh) of the current generation mix. The data of the year in which project emission occurs is used. Calculations are based on official sources12 and are furnished in Annex 3. Estimating the Project Emissions: According to the methodology, the emissions due to the project activity may consist of: (i) emission from the power and fuel used in the project activity facilities, (ii) Emission from the wastewater treatment system affected by the project activity and not equipped with biogas recovery in the project situation, (iii) Emission from the sludge treatment system affected by the project activity and not equipped with biogas recovery in the project situation, (iv) Emission from inefficiency of the project activity wastewater treatment systems and presence of the DOC in treated wastewater, (v) emission from the decay of final sludge produced by the project activity, (vi) emission through the inefficiencies in methane capture system, (vii) emission due to incomplete flaring and (viii) emission from biomass stored under anaerobic conditions which does not take place in the baseline situation. Emissions arising from the project activity are calculated using the formula below:

12

http://www.eppo.go.th/info/index.html; conversion factors and emission factors for different fuels were taken from the Revised IPCC 2006 Guidelines for National Greenhouse Gas Inventories and where ever applicable from Department of Alternative Energy Development and Efficiency; Thailand Energy Situation 2007.

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PE y = PE power , y + PE ww ,treatment , y + PE s ,treatment , y + PE ww , disch arg e , y + PE s , final , y + PE figitive , y + PE biomass , y + PE flaring , y

(4) All the components of the project emissions are described below. PEy PEpower, y PEww,treatment,y PEs,treatment,y PEww, discharge,y PEs,final,y PEfugitive,y PEflaring,y PEbiomass,y = Project activity emissions in the year y (tCO2e) = Emissions from electricity or fuel consumption in the year y (tCO2e) = Methane emissions from wastewater treatment systems affected by the project activity, and not equipped with biogas recovery, in year y (tCO2e) = Methane emissions from sludge treatment systems affected by the project activity, and not equipped with biogas recovery, in year y (tCO2e) = Methane emissions from degradable organic carbon in treated wastewater in year y (tCO2e) = Methane emissions from anaerobic decay of the final sludge produced in year y (tCO2e) = Methane emissions from biogas release in capture systems in year y (tCO2e) = Methane emissions due to incomplete flaring in year y (tCO2e) = Methane emissions from biomass stored under anaerobic conditions (tCO2e)

The project activity involves some project emissions as below; PEww,treatment,y: PEfugitive,y: Methane emissions from wastewater treatment systems will be accounted for the project as the treated wastewater from CSTR in the project activity will be released into the existing open lagoon. Methane emissions from biogas release in capture systems will be accounted for the project as the project activity involves capture of biogas for power generation.

The project activity does not involve in the project emissions as below; PEpower, y: PEs,treatment,y: PEww, discharge,y: PEs,final,y: PEflaring,y: PEbiomass,y: Emissions from electricity consumption will not be accounted for as the auxiliary equipment of the CSTR system in the project activity will consume electricity from gas engine. Methane emissions from sludge treatment systems will not be accounted for as the project activity does not involve sludge treatment. Methane emissions from degradable organic carbon in treated wastewater will not be accounted for as the treated wastewater in the project activity will not be release to any sea, river or lake. Methane emissions from anaerobic decay of the final sludge will not be accounted for as the final sludge from CSTR and open lagoon will be given to the farmers nearby for use as fertilizer. Methane emissions due to incomplete flaring will not be accounted for as all of biogas from the project activity will be used for electricity generation. Methane emissions from biomass stored will not be accounted for as the project activity does not involves the storing of biomass.

The project emissions calculation has been shown below.

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i. Methane emissions from wastewater treatment system (tCO2e) This calculates the emissions by the anaerobic treatment of the wastewater leaving the CSTR digester.

PE ww ,treatment , y = Qww , y
k

CODremoved , PJ ,k , y MCFww ,treatment , PJ ,k Bo, ww UFPJ GWPCH 4

(5)

Where, PEww,treatment,y Qww, y CODremoved,PJ,k,y MCFww, treatment,PJ, k Bo,ww UFPJ GWPCH4 = = = = = = = Methane emissions from wastewater treatment systems affected by the project activity, and not equipped with biogas recovery, in year y (tCO2e) Volume of wastewater treated in the year (m3) Chemical oxygen demand removed by the project wastewater treatment system k in the year y (tonnes/m3) Methane correction factor for project wastewater treatment system k (MCF Value as per table III H.1.) Methane producing capacity of the wastewater (IPCC value for domestic wastewater of 0.21 kg CH4/kg COD) Model correction factor to account for model uncertainties (1.06) Global warming potential for methane (value of 21)

ii. Methane emissions from biogas release in capture system (tCO2 e) Fugitive emissions from the capture and utilization/combustion/flare system are estimated in this component.

PE fugitive , y = PE fugitive , ww , y + PE fugitive , s , y


Where, PEfugitive,y PEfugitive,ww,y PEfugitive,s,y

(6)

= Emissions from biogas release in capture system in year y (tCO2e) = Fugitive emissions through capture inefficiencies in the anaerobic wastewater treatment system in the year y (tCO2e) = Fugitive emissions through capture inefficiencies in the anaerobic sludge treatment systems in the year y (tCO2e)

Since there will be no anaerobic sludge treatment, PEfugitive,y = PEfugitive,ww,y

PE fugitive , ww , y = (1 CFE ww ) MEPww ,treatment , y GWPCH 4


Where, CFEww

(7)

= Capture efficiency of the biogas recovery equipment in the wastewater

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MEPww treatment,y GWPCH4

treatment systems (a default value of 0.9 shall be used) = Methane emission potential of wastewater treatment systems equipped with biogas recovery system in year y (tonnes) = Global warming potential for methane (value of 21)

MEPww ,treatment , y = Qww , y Bo ,ww UFPJ *


k

CODremoved , PJ ,k , y MCFww ,treatment , PJ ,k

(8)

Where, Qww y Bo,ww UFPJ CODremoved,PJ,k,y MCFww,treatment,PJ,k = Volume of wastewater treated in wastewater treatment system k in year y (m3) = Methane producing capacity of the wastewater (IPCC value for domestic wastewater of 0.21 kg CH4/kgCOD) = Model correction factor to account for model uncertainties (1.06) = The chemical oxygen demand removed by the treatment system k of the project activity equipped with biogas recovery in the year y (tonnes/m3) = Methane correction factor for the project wastewater treatment system k equipped with biogas recovery equipment (MCF values as per table III.H.1)

Estimating the leakage: There is no leakage expected from the project activity. Estimating the Emission Reduction:

ER y ,exante = BE y ,exante ( PE y ,exante + LE y ,exante )


Where, ERy,ex ante LEy,ex ante PEy,ex ante BEy, ex ante = = = = Ex ante emission reduction in year y (tCO2e) Ex ante leakage emission in year y (tCO2e) Ex ante project emission in year y (tCO2e) Ex ante baseline emission in year y (tCO2e)

(9)

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B.6.2. Data and parameters that are available at validation: (Copy this table for each data and parameter) Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Average annual consumption of FFB tFFB/yr Tonnes of Fresh Fruit Bunch (tFFB) processed per year crude palm oil mill owner 209,973 This is the estimated processing capacity of the palm oil processing mill that is based on the historical recorded data in the mill. This will be an indicator for the quantity of effluent accumulated over a year.

Operating days per year days/yr This represents the number of days the palm oil mill is operating in a year. crude palm oil mill owner 300 The data is based on the historical recorded data in the mill.

COD inflow Tonnes/m3 Chemical oxygen demand of wastewater inflow to the baseline treatment system Design figure 0.05225 This data is based on the average of 2 COD test reports of wastewater entering the lagoon system.

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Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment:

COD outflow Tonnes/m3 Chemical oxygen demand of wastewater outflow from the baseline treatment system Estimated Value 0.00156 Test report

CODww,treated,y Tonnes/m3 Chemical oxygen demand of wastewater outflow from the treatment system in project activity (CSTR) Calculated Value 0.01568 Digester efficiency is given at 70.0% by the technology supplier

CODremoved,i,y Tonnes/m3 Chemical oxygen demand removed by the baseline treatment system Calculated Value 0.04925

CODremoved,i,y is the difference between COD inflow and COD outflow

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Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment:

CODremoved,PJ,k,y Tonnes/m3 Chemical oxygen demand removed by the treatment system, CSTR, of the project activity equipped with biogas recovery Calculated Value 0.037

CODremoved,PJ,k,y is the difference between COD inflow and CODww,treated,y MCFww,treatment.BL,i No unit Methane correction factor for baseline wastewater treatment system that will be equipped with methane recovery and combustion IPCC default value for anaerobic decay of the untreated wastewater 0.8 for baseline Emission calculation, according to para 21 in AMS III.H, version 10 If the depth of the open lagoons is more then 2 m, the MCF value of 0.8 in table III.H.1 is used.

MCFww,treatment.PJ,k No unit Methane correction factor for project wastewater treatment system that will be equipped with methane recovery and combustion IPCC default value for anaerobic decay of the untreated wastewater 0.8 for project emission calculation, according to para 21 in AMS III.H, version 10 If the depth of the open lagoons is more then 2 m, the MCF value of 0.8 in table III.H.1 is used.

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Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of choice of data or description of measurement methods & procedures actually applied : Any comment:

CEF t CO2/MWh Grid emission factor Calculated value. 0.559 (base on the data of year 2007) The project activity involves displacement of grid electricity. As per AMS I D methodology, the CEF of the grid which is calculated based on weighted average of the emissions of the current generation mix in tCO2e/MWh.

For ex-post this value is re-estimated every year, based on the current changes in the grid mix. Bo,ww tCH4/tCOD Methane producing capacity of the wastewater IPCC default value for domestic wastewater 0.21 The earlier default value of IPCC was 0.25. Taking into account the uncertainty of this estimate and considering the fact that the above furnished value (0.21) has been established as the result of comprehensive discussions among the methodology panel as well as the CDM Executive Board, it is a conservative and transparent approach for the project participant to adopt this value for the methane producing capacity of the wastewater. CFEww Percentage Capture efficiency of the biogas recovery equipment in the wastewater treatment systems Para 27 of AMS III H methodology, version 10. 90 Essential to calculate fugitive emissions through capture inefficiencies in the anaerobic wastewater treatment.

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Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: B.6.3

kg/m3 Density of methane at normal conditions 0.7168 The value is adopted from Approved consolidated baseline methodology ACM0001 Consolidated baseline and monitoring methodology for landfill gas project activities Version 9.1, EB 43, Page 9

CH4,n

Ex-ante calculation of emission reductions:

The baseline emissions are calculated as follows: i. Baseline emission from grid connected renewable electricity generation (tCO2e) Amount of power generated from the project activity (MWh/yr) 2,566 * 0.559 1,434 CEF (t CO2/MWh)

BEpower,y

= =

ii. Baseline emission of the wastewater treatment system (tCO2e) The baseline emissions from the lagoon are estimated based on the chemical oxygen demand (COD) of the effluent that would enter the lagoon in the absence of the project activity, the maximum methane producing capacity (Bo) and a methane conversion factor (MCF) that expresses what proportion of the effluent would be anaerobically digested in the open lagoons.

BEww ,treatment , y =
i

Qww , i , y CODremoved ,i , y MCFtreatment , BL ,i Bo , ww UFBL GWPCH 4


= =

(2)

BEww, treatment, y Therefore BEy (tCO2e)

(tCO2e)

108,000 * [(0.052250 0.00156)*0.89] * 0.8 * 0.21 * 0.94 * 21 16,158

= = =

BEpower,y + BEww,treatment,y 1,434 + 16,158 17,592

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Estimating the Project Emissions: The project emissions are calculated as follows: i. Methane emissions from wastewater treatment system (tCO2e)

PE ww ,treatment , y = Qww , y CODremoved , PJ ,k , y MCFww ,treatment , PJ ,k Bo ,ww UFPJ GWPCH 4


PEww,treatment,y (tCO2e) = = 108,000 * (0.015675 0.000060) * 0.8 * 0.21 * 1.06 * 21 6,307

(5)

ii. Methane emissions from biogas release in capture system (tCO2e)

MEPww ,treatment , y = Qww , y Bo ,ww UFPJ *


k

CODremoved , PJ ,k , y MCFww ,treatment , PJ ,k

(8)

MEPww,treatment,y (tonnes) = =

108,000 * 0.21 * 1.06 * (0.05225 0.01568) * 0.8 703 (7)

PE fugitive , ww , y = (1 CFE ww ) MEPww ,treatment , y GWPCH 4


PEfugitive,ww,y (tCO2e) = = (1 0.9) * 703 * 21 1,477

PE fugitive , y = PE fugitive , ww , y + PE fugitive , s , y


Since there will be no anaerobic sludge treatment, PEfugitive,y = PEfugitive,ww,y PEfugitive,y Therefore PEy (tCO2e) = = = PEww,treatment,y + PEfugitive,y 6,307 + 1,477 7,784 = 1,477

(6)

Estimating the leakage: There is no leakage expected from the project activity. Estimating the Emission Reduction:

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ER y = BE y ( PE y + leakage)
ERy (t CO2e) B.6.4 = = 17,592 (7,784 + 0) 9,809

(9)

Summary of the ex-ante estimation of emission reductions:

Summary of Emissions Reduction over the crediting period: Estimation of project emission (tCO2 e) 3,892 7,784 7,784 7,784 7,784 7,784 7,784 7,784 7,784 7,784 3,892 77,839 Estimation of baseline emission (tCO2 e) 8,796 17,592 17,592 17,592 17,592 17,592 17,592 17,592 17,592 17,592 8,796 175,924 Estimation of leakage (tCO2 e) 0 0 0 0 0 0 0 0 0 0 0 0 Estimation of overall emission reductions (tCO2 e) 4,904 9,809 9,809 9,809 9,809 9,809 9,809 9,809 9,809 9,809 4,904 98,086

Year 2009 (Jul-Dec) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Jan-Jun) Total B.7

Application of a monitoring methodology and description of the monitoring plan:

B.7.1 Data and parameters monitored: (Copy this table for each data and parameter) The emission reduction achieved by the project activity is limited to the ex post calculated baseline emissions minus project emissions using the actual monitored data for the project activity. The emission reductions achieved in any year are the lowest value of the following: ERy,ex post = Min [ (BEy,ex post - PEy,ex post - LEy,ex post),

(MDy PEpower,y PEbiomass,y LEy,ex post)]

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Where, ERy,ex post BEy,ex post PEy,ex post MDy Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: = = = = Emission reductions achieved by the project activity based on monitored values for year y (tCO2e) Baseline emission calculated using ex post monitored values Project emission calculated using ex post monitored values Methane captured and destroyed/gainfully used y the project activity in the year y (tCO2e)

Qww,i,y m3/year Volume of wastewater treated in the anaerobic digestion system Measured data The data is measured continuously by using electronic flow meters.

The flow meter will undergo maintenance / calibration subject to appropriate industry standards Used for the project emission and baseline emissions calculation COD of wastewater before the treatment system k (CODww,untreated,y) Tonnes/m3 Chemical oxygen demand of the wastewater entering the anaerobic treatment reactor/system with methane capture Measured data Sampling and analysis will be carried out in the in-house lab adhering to internationally accepted standards and will be archived electronically. Monthly average values will be used for the estimation of emissions. The data will be cross-checked with samples analyzed by an external accredited laboratory once in 3 months. -

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Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment:

COD of the treated wastewater after the treatment system k (CODww,treated,y) Tonnes/m3 Chemical oxygen demand of the treated wastewater leaving the new anaerobic digestion system. Measured data Sampling and analysis will be carried out in the in-house lab adhering to internationally accepted standards and archived electronically. Monthly average values will be used for the estimation of emissions. The data will be cross-checked with samples analyzed by an external accredited laboratory once in 3 months. CODww,removed,PJ,k,y Tonnes/m3 Chemical oxygen demand removed by the treatment system, CSTR, of the project activity equipped with biogas recovery Calculated value.

CODww,removed,PJ,k,y is the difference between CODww,untreated,y and CODww,treated,y Gross electrical output from gas engine system (EA) MWh/year Electricity produced by the renewable generating unit operating on biogas. Measured data Electricity meters will be provided. Continuously measured. Consolidated readings will be noted down on monthly basis. Electricity meters will undergo maintenance / calibration subject to appropriate industry standards and manufacturers recommendation. 100% of data will be measured.

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Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment:

Auxiliary Electricity consumed by the gas engine (EB) MWh/year Electricity consumed by the auxiliary equipment in the gas engine Measured data Electricity meters will be provided. Continuously measured. Consolidated readings will be noted down on monthly basis. Electricity meters will undergo maintenance / calibration subject to appropriate industry standards and manufacturers recommendation. 100% of data will be measured. Auxiliary Electricity consumed by the biogas system (EC) MWh/year Electricity consumed by the auxiliary equipment in the biogas system Measured data Electricity meters will be provided. Continuously measured. Consolidated readings will be noted down on monthly basis. Electricity meters will undergo maintenance / calibration subject to appropriate industry standards and manufacturers recommendation. 100% of data will be measured. Net electricity exporting to the grid (ED) MWh/yr Electricity exported to the national grid which is produced by the renewable generating unit operating on biogas. Measured data Electricity meters will be provided. Continuously measured. Consolidated readings will be noted down on monthly basis. Electricity meters will undergo maintenance / calibration subject to appropriate industry standards and manufacturers recommendation. 100% of data will be measured.

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Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment:

CEF tCO2/MWh Grid Carbon Emission Factor Calculated value. 0.559 (based on the data of year 2007) The project activity involves displacement of grid electricity. As per the AMS I.D methodology, the CEF of the grid is calculated based on weighted average of the emissions of the current generation mix in tCO2e/MWh.

For ex-post this value is re-estimated every year, based on the current changes in the grid mix. Biogas generation from the reactor Nm3/year Biogas flow rate at digester outlet Measured data

Electronically measured using flow meter. Flow meters will undergo maintenance/calibration according to appropriate industry standards. Continuously monitored and hence the uncertainties are low. Flow meters will undergo maintenance/calibration according to appropriate industry standards Biogas entering the gas engine Nm3/year Biogas flow rate entering the gas engine. Measured data 100% of generation Measured continuously by using on-site electronic flow meters.

Flow meters will undergo maintenance/calibration according to appropriate industry standards.

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Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment:

Biogas Pressure Psi Biogas pressure entering the gas engine Measured data

Electronically measured using pressure transmitter.

Continuously monitored and hence the uncertainties are low. Pressure transmitter will undergo maintenance/calibration according to appropriate industry standards Biogas entering the flare Nm3/year Biogas flow rate of the (surplus) residual biogas entering the flare Measured data On-site metering using electronic flow meters. Flow is measured continuously. Values will be averaged hourly. Flow meters will undergo maintenance/calibration according to appropriate industry standards. Used for project emission and emission reduction calculations. Biogas methane concentration % Percentage of methane in the biogas on volume basis. Measured data 60 On-site sample analysis by using near infrared spectrometry. At least quarterly interval to satisfy statistical 95% confidence level. Sampling will be carried out, adhering to internationally recognized procedures. Used for the calculation of project emission and emission reduction.

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Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment:

Temperature of the exhaust gas in flare C Temperature of the exhaust gas from flare Measured data Measurement of temperature of the exhaust gas stream in the flare electronically. A temperature of above 500 C indicates that a significant amount of gases are still being burnt and that the flare is operating. The flame detectors will be kept serviced as per manufacturers recommendation as and when required.

Duration of flare min/hour Duration of sustenance of 500 C in flare Measured data An electronic flame detector will be used to determine the minutes in each hours for which the temperature of 500 C occurs in the closed flare. The temperature duration monitors will be kept serviced as per manufacturers recommendation as and when required. Only applicable in the case of use of a default value. Sludge application t/year Quantity of sludge removed from the treatment system and its application such as fertilizers in farms, plantations, etc. Measured data Sludge removal and its application will be measured whenever the sludge is removed from the biogas reactor and open lagoon systems and a record will be maintained in the palm oil mill. Measurement will be carried out adhering to internationally recognized procedures

All the above monitored data will be stored for at least two years after the end of crediting period or the last issuance of CERs for this project activity, whichever occurs later.

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B.7.2

Description of the monitoring plan:

Systematic monitoring NPO is well aware of the importance of having a good operational and management team in order to execute a well-defined monitoring plan for the project activity. From this perspective, NPO has an operational and management structure, created exclusively to monitor the relevant plant parameters. The responsibility of data monitoring, archiving and analyzing will fall on different members of the monitoring team. This team will be composed of a Production Manager, Plant Engineer and an operational team as shown in the chart below. The Production Manager will make sure that the monitoring system is properly implemented.

Production Manager

Plant Engineer

Operational Team Operators

Data recording and archiving

Figure 5: Planned operational and management structure for monitoring Under the supervision of the Production Manager, data monitoring and archiving will be done by the operational team. All the data will be recorded according to the data archiving procedures and stored electronically in a systematic and transparent manner. The Plant Engineer will review the archived data and submit a complete set of documentation, which will indicate the calculation procedure as well as the ex-post emission reduction estimation, to the Production Manager for internal verification regularly on quarterly basis. Based on the feedback from the Production Manager, the Plant Engineer will review the data and apply quality check on quarterly basis. This documentation will be verified again by an external independent Designated Operational Entity (DOE) annually.

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Quality assurance and quality control Calibration will be carried out in accordance with the national/international standards, as applicable. NPO will take responsibility for the quality assurance and quality control for recording, maintaining and archiving all the data by appointing consultants and/or technical support team to carry out the system analysis, equipment calibration and overall maintenance on a regular basis throughout the crediting period. NPO will also provide sufficient number of staff for data collection and monitoring and impart necessary training in order to improve the efficiency of their work. Data logging, presentation and storing NPO will monitor the amount of biogas used in the gas engine, quantity flared, gross and net electricity produced, and electricity exported to the grid using meters installed in the plant. The sludge disposal will also be monitored. The monitoring reports will be checked and discussed periodically. Daily operation and maintenance log books will be maintained by responsible operators. They will be able to provide detailed on-the-spot information about the operation of the plant. Any distinguishing event will be reported and recorded as special log. Emergency Procedure NPO will implement an Emergency Procedure in the plant, for which a detailed manual will be developed. The manual will contain instructions on how to handle an emergency situation in the plant, and measures to be taken to ensure that there is no unintended methane leakage from the system. All the plant operators will be familiarised on the procedure. A portable gas detector will be available on the plant, to avoid accidents when maintaining the plant. B.8 Date of completion of the application of the baseline and monitoring methodology and the name of the responsible person(s)/entity(ies) Date of completion of the baseline: 26 November 2008 Contact information of the person(s)/entity(ies) responsible for the application of the baseline and monitoring methodology to the project activity: Organization Contact person Telephone no. Email address Date of completion Danish Energy Management A/S Mr. Karsten M. Holm +66 (0) 2305 6606 kah@dem.dk 26 November 2008

Danish Energy Management A/S is not a project participant listed in Annex 1.

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SECTION C. Duration of the project activity / crediting period C.1 Duration of the project activity: C.1.1. Starting date of the project activity: 29/12/2003 C.1.2. Expected operational lifetime of the project activity: 20 years C.2 Choice of the crediting period and related information: C.2.1. Renewable crediting period C.2.1.1. Not applicable C.2.1.2. Not applicable C.2.2. Fixed crediting period: C.2.2.1. Starting date: Length of the first crediting period: Starting date of the first crediting period:

01/07/2009, or when registered with the UNFCCC, which ever come first. C.2.2.2. 10 years Length:

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SECTION D. Environmental impacts D.1. If required by the host Party, documentation on the analysis of the environmental impacts of the project activity: In general, the bad odour impact on the surrounding areas will be reduced by using the anaerobic closedtank digester for wastewater treatment, compared with the existing wastewater treatment in the open lagoons. Since the anaerobic wastewater treatment technology used in this project (CSTR technology) is able to digest about 70% (COD removal 70%) of the organic compounds in the wastewater, the odour of gas will be proportionally reduced. The geographical data shows that the project site is surrounded by oil palm plantations, and is located approximately 1 kilometre away from the closest community. None of the populated areas will be affected by the project activities. Atmospheric Impacts The anaerobic treatment by the closed-tank digester will reduce gases such as methane (CH4), from the traditional open lagoons. The electricity produced using the captured methane will be supplied to the national grid during the peak period. This will result in significant reduction of emissions considering that currently the electricity supply of the country during peak hours is substantially contributed by fuel oil. Biogas is a cleaner fuel (having a CH4 content of 60-70%, CO2 of 30-40% and Sulphur content of less than 0.01%) compared with fuel oil (sulphur content of 0.5-2%), which releases more pollutants. Surface Water Impacts With the higher efficiency of the closed-tank digester in removing the organic load in the wastewater compared with traditional open lagoons, the discharged wastewater entering the post-treatment lagoon will have much less contamination, resulting in less impact on the natural surface water. Although the NPO mill intends not to discharge its wastewater into public water resources (treated wastewater will be used for watering the plantation) the lesser amount of COD and BOD of wastewater in post treatment lagoons after digester will help reduce the risk of surface water getting contaminated from flooding or effluent overflow, if any. Furthermore, the post treatment lagoons are able to treat wastewater qualities pursuant to Thailands industrial effluent standards. Groundwater Impacts The less organic load of effluent (that is treated by the anaerobic digester and released into the posttreatment ponds) will cause less contamination to the groundwater, compared with the traditional open lagoons wastewater treatment. To date, there has been no indication or report that the groundwater wells in the plant vicinity are contaminated by wastewater from the current lagoons in the mill. Health Risks & Safety i. Public health

By using the closed-tank digester, the gas emitted from the open lagoons will be substantially reduced as the COD in the discharged wastewater will be significantly reduced compared to the baseline. This will improve public health in the surrounding communities.

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ii. Workers health Since the selected anaerobic digestion technology requires no usage of chemical substances, e.g. sodium hydroxide (NaOH), which is normally used for wastewater pre-treatment (pH adjustment), the health risk from chemical usage to workers is considered to be low. Health risk from heat source exposure is also considered to be minimal, since the gas engine room is designed with enough ventilation. iii. Plant and Personnel Safety For plant and personnel safety, appropriate safety devices will be installed in hazardous areas like the digester tank, piping system, biogas storage and gas engine room. These include pressure gauges, flare for burning excess biogas and fire fighting system. According to Thai regulations, the proposed project is not required to undertake an Environmental Impact Assessment (http://www.onep.go.th/eia/). However, as described earlier, no negative environmental effects are expected due to the implementation of the project. D.2. If environmental impacts are considered significant by the project participants or the host Party, please provide conclusions and all references to support documentation of an environmental impact assessment undertaken in accordance with the procedures as required by the host Party: The environmental impacts are not significant.

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SECTION E. Stakeholders comments E.1. Brief description of how comments by local stakeholders have been invited and compiled:

The project activity is located in Sincharoen Sub-district, and the local government authority concerned is Sincharoen TAO. NPO coordinated closely with the TAO, heads of villages and nearby schools to arrange two public consultations. NPO invited three groups for the public consultations: local government representatives, schools and villagers. For the first two groups, NPO arranged formal invitations and sent them to their respective offices. For the villagers, NPO sent out letters to heads of villages and requested assistance from Sincharoen TAO, which directly contacted the local population, to invite people who were interested to join the programs. NPO had decided not make a direct approach to the community itself with a view to making the invitation process transparent and also because the project site is located in fairly lowpopulated area (closest communities are approximately 3 kilometers away). The information provided in the invitation was the date, time and venue of the hearings, as well as the objectives. The public consultations took place twice, the first one on Thursday, August 26th, 2004 and the second on Wednesday, July 27th, 2005. The first hearing was conducted at Baan-Bang-Roub School with 30 participants, while the second one was at the NPO mill with 65 participants. The local people joining both hearings included Sincharoen TAO representatives, community leaders, villagers, students and teachers. The programs conducted during the hearings can be divided into four main sessions: Explanation of the project activity and how it benefits the community Brief description of the CDM scheme and how it relates to the project activity Open discussion for comments, questions and concerns Plant tour

The meeting was held in Thai language. The questions and answers were transcribed to English (See Attachment 1). E.2. Summary of the comments received:

Primary comments and concerns: i. Currently, the water in a canal located near the open pond area has turned black, and the amount of fish normally caught has much reduced in number. How will you be responsible for and solve the problem? What will guarantee that this kind of problem will not occur again? Will the water be contaminated from the wastewater discharged into the natural open lagoons? Can you make most benefits out of Empty fruit brunches before disposal so as to reduce the amount of waste? What will happen if the biogas plant fails to operate? Is there a chance of explosion? What are negative impacts resulting from operating the biogas plant?

ii. iii. iv. v.

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vi.

Can the same biogas technology (at a smaller scale) be applied to the villages or schools to produce biogas for their own use? Report on how due account was taken of any comments received:

E.3.

The project participants were informed that the main benefit of the plant was reduced pollution compared to burning of fossil fuels, and reduced foul smell compared to the open lagoon system. They were informed that the wastewater after being treated by the new technology will have lower organic content and, hence, the smell will be reduced. They were also informed that, as was the practice earlier, the wastewater effluent from digester outlet will be stored in lower stage ponds, and then recycled for use within the plant. Replying on pollution concern, the project developers informed the participants that burning biogas results in a lower pollution than burning fuel oil. Therefore, it is more environmentfriendlier. Detailed response to individual questions can be viewed in Attachment 1.

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Annex 1 CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY Organization: Street/P.O.Box: Building: City: State/Region: Postfix/ZIP: Country: Telephone: FAX: E-Mail: URL: Represented by: Title: Salutation: Last Name: Middle Name: First Name: Department: Mobile: Direct FAX: Direct tel: Personal E-Mail: +66 (0)89 500 5485 +66 (0)77 369 170 +66 (0)77 369 167-9 Kowit@naturalpalm.com Kowit Managing Director Mr. Kuansongtham 84210 Thailand +66 (0)77 369 167-9 +66 (0)77 369 170 Tambon Sincharoen, Phrasaeng District, Suratthani Province The Natural Palm Oil Company Limited 29/3 Moo 5, Banbangroob-bangrhang Road

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Organization: Street/P.O.Box: Building: City: State/Region: Postfix/ZIP: Country: Telephone: FAX: E-Mail: URL: Represented by: Title: Salutation: Last Name: Middle Name: First Name: Department:

Ministry of Climate and Energy 44, Amaliegade.

Copenhagen DK-1256 Denmark + 45 33 92 67 00 + 45 33 11 47 43 ens@ens.dk www.ens.dk

Head of Department Mr. Beck

Anton Danish Energy Agency Climate and Energy Economics 44, Amaliegade DK-1256 Copenhagen K

Mobile: Direct FAX: Direct tel: Personal E-Mail:

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Annex 2 INFORMATION REGARDING PUBLIC FUNDING The Projects financial plans do not involve public funding.

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Annex 3 BASELINE INFORMATION A. Data used for Baseline estimation COD loading of waste influent to lagoons Wastewater generation No. of days mill operates B. Lagoon condition Lagoon depth from water surface Average Temperature (year 2003) Lagoon Data (Length x width x Depth ) Pond 1 Pond 2 Pond 3 Pond 4 Pond 5
Data source: Open Lagoon Layout of Natural Palm Oil Co., Ltd.

0.05225 tonnes/m3 360 m3/day 300 days/year

>2.5 m 28.20C 17,400 m2 x 2.5 m. 14,470 m2 x 2.5 m. 1,560 m2 x 2.5 m. 1,560 m2 x 2.5 m. 61,105 m2 x 2.5 m.

C. Data used for project emission estimation COD in wastewater entering CSTR treatment plant COD in wastewater after treatment plant processing (70% efficiency) MCFww, treatment, PJ,k - According to AMS III.H for Project Emissions COD in wastewater leaving the last lagoon after project activity 0.052250 tonnes/m3 0.015675 tonnes/m3 0.8 0.000060tonnes/m3

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D. Grid Emission Factor for Thailand EGAT projection of grid power generation
Type of Fuel Hydroelectric Conversion Factor Unit 2007 7,961 0 0 98,148 2,346 873,416 48,999 0.499 2,967 936 37,225 2,880 0.971 28 23 838 62 2.200 18,498 15.81 165,542 16,752.819 0.906 12,383 5.43 143,285 13,555 1.095 2,553 0 0 4,488 0 0 0 0 0 147,026.000 82,248.210 0.559

Natural GAS

Heavy Oil

Diesel Oil

Lignite

Imported Coal

Renewable Energy TNB Nuclear

GWh ktCO2 tCO2/MWh GWh MMSCFD 1.02 TJ/mmscfd TJ 15.30 tC/TJ ktCO2 tCO2/MWh GWh MLitres 39.77 TJ/MLitre TJ 21.10 tC/TJ ktCO2 tCO2/MWh GWh MLitres 36.42 TJ/MLitre TJ 20.20 tC/TJ ktCO2 tCO2/MWh GWh MTonnes 10.47 TJ/kt TJ 27.60 tC/TJ ktCO2 tCO2/MWh GWh MTons 26.37 TJ/kt TJ 25.80 tC/TJ ktCO2 tCO2/MWh GWh ktCO2 tCO2/MWh GWh ktCO2 tCO2/MWh GWh ktCO2 tCO2/MWh GWh ktCO2 tCO2/MWh

Total CEF

Sources: http://www.eppo.go.th/info/index.html; Conversion factors and emission factors for different fuels established from Revised IPCC 2006 Guidelines for National Greenhouse Gas Inventories, and where applicable from Department of Alternative Energy Development and Efficiency, Thailand Energy Situation 2007

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CO2 emission from electricity consumption is estimated using the methodology and is listed in the following table. EGAT Projection of Grid Generation for 2007: Type of generation Hydroelectric Natural gas Heavy oil Diesel oil Lignite Imported coal Renewable energy TNB Nuclear Total for the year 9,245 98,148 2,967 28 18,498 12,383 2,553 4,488 0 147,026 Grid Fuel Generation GWh GWh GWh GWh GWh GWh GWh GWh GWh

CO2 emission for all generation types was obtained using the grid fuel consumption given in the table above. A sample calculation method is given below, for CO2 estimation for lignite (for the year 2007). Estimated Grid Emission (tCO2 /year) = = = Grid fuel consumption (103 t) 18.49 * 103 16,752,819 * * tCO2 NCV13 (TJ/103 t) 10.47 * * CEF (tC/TJ) 27.6 * * Fraction of C oxidised 1.0 * * MCF (tCO2/tC) 44/12

The grid CO2 emission is similarly estimated for each generation type, following the same procedure as for lignite. The values are summed up to get the annual CO2 emission. Now, grid CO2 emission factor = Total Grid CO2 Emission (tCO2)/ Total electricity generated (MWh) = 82,248,210/147,026,000 = 0.559 tCO2/MWh

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Revised 2006 IPCC Guidelines for National Greenhouse Gas Inventories: Reference Manual

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E. Estimation of grid electricity generation: i. Total methane generation Total methane generated = (t CH4/year) Efficiency of digester (%) 0.70

Qy,ww

CODinflow

* Bo,ww * MCFww,treatment,PJ,k

= 108,000 * = 663.6

0.05225

* 0.21 *

0.8

ii. Total biogas generation Total methane Total methane available = generated (tCH4/year) (tCH4/year) Loss through capture & flare inefficiency (tCH4/year) 70.3 * * 0.85 0.85 * 0.21 * * 0.21 * 1.0 1.0

= = Total Biogas Generated (m3/year)

= 594,000 * = ==663.6 = 594,000 * = 593

- 2,120 0.02 2,120 0.02

Total methane available (tCH4/year) 593 1,379,449

Fraction of CH4 in biogas / (m3CH4/m3biogas) 0.60 /

Density of methane (kgCH4/m3CH4) 0.7168 *

1,000

= =

1,000

(iii) Electricity generation from the project All the biogas produced will be used for electricity generation. Total electricity generated by project (kWh/year) = = = Total biogas produced (m3/year) 1,379,449 2,758,898 * * Electricity produced per m3 of biogas (kWh/m3) 2.00

Gross electricity generated by the project = 2,759 MWh/year. Auxiliary Load for the system (estimated) = 7% Net electricity generated by the project Net electricity generated by the project = 2,566 MWh/year.

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Annex 4 MONITORING INFORMATION -------------------------------------------Please refer to section B.7.2 for all details on monitoring.

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PDD ATTACHMENTS ATTACHMENT 1 INFORMATION ABOUT PUBLIC CONSULTATION AIMS OF THE EVENT According to the emerging requirement of the Kyoto Protocols Clean Development Mechanism (CDM), a public consultation event was held in Suratthani Province in July 2005. Prior to this, on 26 August 2003 pre-consultation meeting were convened by the first CDM consultant who consulted with local authorities and communities. The event on 27 July 2005 was organized by Natural Palm Oil Co.,Ltd. and had the following aims: 1. 2. 3. 4. 5. To officially present the project to the local stakeholders To explain the stakeholders about CDM To describe what the CDM means for this project To allow the stakeholders to express their concerns regarding the project, and to ask questions Plant Tour

EVENT VENUE Natural Palm Oil Co.,Ltd., Suratthani, Thailand July 27, 2005 NPOs responses and account taken are as follows: Q Currently, the water in a canal located near the open pond area has turned black, and the amount of fish normally caught has much reduced in number. The villagers believe that the cause is the wastewater outflow from the project. How will you be responsible for and solve this problem? What will guarantee that this kind of problem will not occur again? The project owner has clarified that there is no wastewater discharge into public drainage or waterways anywhere from the project site. It is most certain that the problems found are not caused by the project wastewater. In terms of the effluent quality, NPO explains that the wastewater treatment system installed has relatively high efficiency, with about 70% organic compound removal potential. The water quality in the post-treatment ponds can achieve the relevant standards and requirements stipulated by the Department of Pollution Control. Assuring its quality, NPO indicates that the wastewater that has been treated is also use inside the plant area, for plantation the palm oil tree. Though the problems are not caused by the project, the company guarantees that similar problems will not occur. There are several sets of regulations from the Department of Industrial Works and

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the Department of Pollution Control that the project owner has to comply with. Failure to keep up to these rules will result in that the plant can be halted from operation or closed. Additionally, NPO will always ensure that the effluent quality is tested and that it meets the relevant standards. NPO will operate with caution to prevent wastewater outflow incidents. Nevertheless, the potential risk of causing water pollution will be greatly reduced due to the installation of the biogas system. This is because the higher efficiency of organic load removal by using the digester instead of using open lagoons shall reduce environmental impact resulting from leakage of effluent into natural surface water. As a result, it can be ensured that there will be much less possibility that NPO will cause such pollution problems. Q A There is a certain number of nearby villagers using underground water. Will the water be contaminated from the wastewater discharged into the natural open lagoons? So far, there has been no evidence that the groundwater wells in the project neighborhoods are contaminated from the current lagoons. Implementing the biogas project will bring about a positive effect since there will be lesser organic load in the effluent discharged into the open lagoons. Hence, when compared with the traditional open lagoons wastewater treatment, the biogas system installation will cause lesser impact or contamination to the groundwater. Also, as an additional precaution, an impermeable surface is used for the part of the system that has direct contact with the high organic contents, such as at the wastewater collection tank. NPO currently use the empty fruit bunches mainly for landfill purpose (in the vast land inside the palm oil mill area). Only a small fraction is given to mushroom farms. In the past, there were attempts to use the empty bunches as organic fertilizer, but it was not successful due to pest problems. Q A How will you handle of empty fruit bunches? Can you make most benefits out of them before disposal so as to reduce the amount of waste? At present, NPO is investigating the possibility to use the empty fruit bunches as fuel in the boiler. However, there is only one company developing a similar project in Thailand, and there has not been any successful case reported yet. Despite several potential risks, if the option of using the empty bunches as fuel is proven feasible, NPO may consider the investment at a later stage. What will happen if the biogas plant fails to operate? Are there any safety risks concerning the biodigester tank and the biogas collection pond? As methane is a flammable gas, is there a chance of explosion? In the worst case, if the biodigester malfunctions, the situation would be exactly that when the traditional open lagoon system was used. The wastewater generated from the palm oil extraction process would be directed to the open ponds, instead of being fed into the biogas system. In terms of safety precautions, plant safety devices shall be installed in hazardous areas for plant and personnel safety, in areas such as the digester tank, piping system, biogas storage, gas engine

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room, etc. The biogas system is equipped with the safety system, which can detect a flammable condition immediately, and fire extinguishing equipment, thus reducing the risk of fire hazards and explosion. Q You have mentioned many benefits of the biogas project. What are negative impacts resulting from operating the biogas plant? There is no negative environmental impact caused by the operation of the system. It is wise to emphasize that the purpose of this project is to improve the environmental conditions. Besides, the electricity generated and supplied to the grid shall contribute to the stabilization of the local power system. Sludge drainage from the biodigester could be used as fertilizer for palm oil plantations. This will regenerate nutrients to the palm oil fields and reduce the use of petroleum based fertilizer. Q Can the same biogas technology (at a smaller scale) be applied to the villages or schools to produce biogas for their own use? Can a school with wet waste from its canteen or a house raising farming cattle install a similar system to produce biogas or generate electricity? For biogas generation, the biogas technology employed in this project is more suitable on a large scale. There are some other technologies that may be more appropriate for a smaller scale project, such as the septic tank, which has already been implemented and proven successful in several small pig farms in Thailand. For electric power generation, this type of project usually requires a high investment and hence would be more suitable for large-scale projects. .

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