Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
October 2005
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Prepared by the National Technical Experts from P.T. Chazaro Gerbang Internasional.
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Table of Contents
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8.4 Calculation of total project GHG emissions and net emission reduction ............18
8.4.1 CH4 recovery................................................................................................18
8.4.2 MSW based power plant ..............................................................................19
8.4.3 Refuse treatment (after sorting) ...................................................................19
9 GHG emission reduction monitoring and verification.................................................20
9.1 Curtailment of methane........................................................................................20
9.1.1 Basic premises..............................................................................................20
9.1.2 Methodology ................................................................................................21
9.2 Curtailment of fossil fuel consumption................................................................21
9.2.1 Basic premises..............................................................................................21
9.2.2 Methodology ................................................................................................21
10 Financial Analysis of the Project .............................................................................22
10.1 Estimation of Overall Cost Estimates ..................................................................22
10.2 Project Financial Analyses...................................................................................22
10.3 Financing Plan......................................................................................................23
11 Economic Analyses..................................................................................................23
11.1 Project Economic Analysis ..................................................................................23
11.2 Statement of poverty reduction impact ................................................................23
11.3 Environment impacts ...........................................................................................24
12 Stakeholders’ comments ..........................................................................................25
12.1 Invitation letters to the Stakeholders....................................................................25
12.2 Comments on the Project by above stakeholders.................................................25
13 Key factors impacting project & baseline emissions ...............................................26
13.1 Key Factors ..........................................................................................................26
13.2 Project Uncertainties ............................................................................................26
14 Conclusion and Recommendation............................................................................27
Annex 1 Technical Description of the Project ........................................................Annex 1-1
Annex 2 Financial and Economic Analyses............................................................Annex 1-1
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List of Figures
Figure 1 Map of project location............................................................................................3
Figure 2 Flow Chart of the plant............................................................................................4
Figure 3 Flow of refuse derivation and collection in DKI Jakarta.........................................6
Figure 4 Simplified flow diagram of current MSW management in Jakarta.......................14
Figure 5 Project boundary (activities inside the thin line) ...................................................15
Figure 6 Flow chart of refuse processing................................................................Annex 1-4
List of Tables
Table 1 Daily volume of refuse in DKI Jakarta (m3/day) ......................................................5
Table 2 Annual amount of refuse in DKI Jakarta (tons/year)................................................5
Table 3 Emission coefficients for fuels................................................................................17
Table 4 Breakdown of power generation in Java by source (2000).....................................17
Table 5 Current amount of energy consumption and GHG emissions ................................18
Table 6 Net GHG reduction .................................................................................................20
Table 8 Financing Plan ........................................................................................................23
Table 9 Summary of Technical and Financial Parameters......................................Annex 2-1
Table 10 Weighted Average of Capital Cost ..........................................................Annex 2-3
Table 11 Economic Price Valuation .......................................................................Annex 2-4
Table 12 Financial Analysis....................................................................................Annex 2-6
Table 13 Economic Analysis .................................................................................Annex 2-8
Table 14 Development of Energy Prices in Indonesia.…………………..…..…………Annex 2-
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List of Abbreviations
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1 Executive Summary
Site Development Rationale
The special metropolitan district of Jakarta (Daerah Khusus Ibukota (DKI) Jakarta), the
capital of the Republic of Indonesia, has a population of approximately 10 million. Its
current solid waste treatment and disposal system has caused the city facing rapidly
worsening waste problems.
About 6,000 tonnes municipal solid waste out of a total 8,000 tonnes per day waste
stream, primarily household, business and commercial waste (collectively termed
municipal solid waste (MSW)), are disposed of by burying in landfills site. The waste
disposal is carried out without any sorting.
Meanwhile, Indonesia is struggling with a chronically tight supply of electrical power. An
increase in power reserve margin and improvement of transmission system are of urgent
tasks. Regarding this issue, PT Acme Cipta Sarana as a private company suggests a
solution to face MSW treatment system for Jakarta. This company offers a technology to
convert organic fraction in MSW into combustible gases. The conversion shall be
conducted in two ways: biological conversion for converting easily degradable wastes into
energy rich gas (methane, CH4) and gasification of other organics to become synthetic
gases (syn-gas) at a limited amount of oxygen. Energy containing gases will eventually be
used in the power generation process.
Objective
The objective of the project is to create a sustainable metropolitan municipal solid waste
management system that supports GHG emission reduction.
The targets of the project are as follows:
a. Reduction of MSW;
b. Increase of value added refuse;
c. Reduction of environmental and social problems at the disposal site;
d. Utilisation of MSW to generate energy; and
e. Improvement of MSW management services.
Technical Description
The main technologies involved are:
a. Fermentation unit for biodegradable waste;
b. Gasification unit for non-biodegradable waste; and
c. Gas utilization unit using steam turbine generation system. The capacity is 3 times
6 MW.
The proposed project will use BTA (Biotechnische Abfallverwertung) patented technology
from BTA GmbH.
Output of the project
The 18MW power plant will be able to supply 83,160 MWh electricity per year (gross
production 99,792 MWh/year) using municipal waste. The generated power will be
supplied to the Java-Bali grid and this means that it will reduce fossil fuel consumption
and CO2 emission. The CO2 emission can reach 786,788 tons CO2 per year. This number
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excludes emission from plastic combustion and small diesel generator utilisation from the
project emission. Income from selling electricity to the national grid can reach USD
3,742,200.
The project will also generate fertiliser from the anaerobic and gasification processes. The
organic fertiliser is formed from the effluent of anaerobic process while the ash from
gasification process can be utilised as mixture for the fertiliser. Income from fertiliser
sales can reach USD 2,182,950.
Benefit of the project
The benefits of the proposed project are:
a. Reduction of environment pollution (in rivers, sea and ground caused by waste
disposal and air pollution from open burning of waste);
b. Overcome of social issues occurring from illegal waste disposal (open dumping);
c. Conversion of non reusable waste into combustible gases for electricity generation,
for better economic benefits;
d. Utilization of municipal solid waste leading to reduction of the use of fossil fuel;
e. Reduction of GHG emissions;
f. Cleaner environment for better public health (odour, seeping of contaminated or
polluted water, potential spreading of disease);
g. Creation of job opportunities; and
h. Dissemination of a good municipal waste treatment technology to other locations
in Indonesia.
Conclusion
Besides improving the environment, the project is financially and economically feasible.
At 12% discount factor, the FIRR with- and without CER is 28,7% and 19,01%,
respectively. Similarly, the EIRR with- and without CER is found to be 30,11% and
21,79%, respectively.
The project is estimated to generate 83,160 MWh per year and has a potential to reduce
the GHG emission as much as 786,788 tonnes of CO2 equivalent per year.
Additionally, the project will produce organic fertiliser (compost) that is also
environmentally friendly.
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2 Map of the Project
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3 Introduction
The project consists of anaerobic MSW treatment for producing methane gas (biogas). The
residue from anaerobic process and other organic waste, paper and plastic, are further
processed in the gasification unit to produce combustible gases (syn-gas). The syn gas and
biogas will be fed to the boiler to heat water to become a superheated steam. This steam
would be sent to the steam turbine. Electrical power would be generated by the steam
turbine.
PT Acme Cipta Sarana shall export power to the grid of PLN. A flow chart of the plant is
given in Figure 2. The plant shall be operating for 24 hours a day for about 330 days a
year and thus shall generate annually about 83,160 MWh electricity.
Biogas and gasification product generation from MSW processing are considered to be the
heart of the project. For gas generation under a biomethanation process, the project would
use the BTA (Biotechnische Abfallverwertung) technology, developed and patented by
BTA GmbH. For gasification system, the project would use the fluidised bed gasification
technology.
The expected operational lifetime of the project activity is 20 years.
The project is to be executed by PT Acme Cipta Sarana, a company formed through a
consortium of the following companies and institutions.
a. DKI Jakarta Sanitation Bureau
b. PT PLN
c. PT Skala Teknik
d. PT Gerbang Multindo Nusantara
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4 Background
4.1 Sector Description
The municipal solid waste in Jakarta amounts to an average of just under 8,000 tons per
day. The city sanitation bureau collects around 90% of the waste generated by ordinary
households, offices and business facilities and such sources and 10% by refuse collectors.
Figure 3 shows the flow of refuse derivation and collection in DKI Jakarta. For both cases
MSW is unsorted.
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REFUSE
MARKET FOR
RECOVERY
RECYCLED GOODS
BUSINESS
RECYCLING
ITEMS OF VALUE
BUSINESSES
COLLECTION
UNDER THE
ADMINISTRATION
REFUSE
OF JAKARTA
DERIVATION SCAVENGERS
(METROPOLITAN
25,600 M3/DAY
AND PRIVATE
SERVICES)
>22,196 M3/DAY
FINAL DISPOSAL
RELAY LOCATIONS
SITE
RECOVERY BY THE
DUMPING IN THE JAKARTA
RIVERS/SEA METROPOLITAN
GOVERNMENT
Flow of Flow of
refuse valuable items
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promptly as possible, and is exhibiting strong interest in incineration and composting.
Whatever the method used, the prime concern of the city is to decrease the garbage
disposal volumes.
Both options (incineration and composting) would require large sums for the construction
of new treatment and disposal sites by the city, which apparently does not have enough
financial margins to foot the entire bill alone. It also cannot expect to receive grants or
loans from the national government for this purpose. Any new plans for refuse disposal
therefore would come to naught without financial backing or some means of raising funds
for them, and it would consequently be difficult for the DKI Jakarta government to detail
or act on them.
The World Bank supports waste composting at three regions covering: Metropolitan City
of Jakarta, West Java Province and Banten Province. The Ministry of Environment under
the “Municipal Solid Waste Reducing Methane Emission in West Java 2001-2009”
implements the programme. The strategy of the programme is to provide subsidy for each
kilogram of organic compost sold. The amount of subsidy is classified into three
categories depending on the compost production capacity. At the production capacity
below 2 ton/day it is eligible for a subsidy of IDR 350/kg, between 2-5 kg/day is eligible
for subsidy of IDR 250/kg, and for the production above 5 ton/day may receive subsidy of
IDR 200/kg. The total subsidy amounts to 10 Million US$. Taking the maximal case, this
subsidy will able to cover more or less 450,000 tons of MSW compost sold within 2001-
2009 period (MSW collected in Jakarta alone is 2,430,460 per year). According to many
inputs this amount is very unlikely to be achieved, as there are two major problems
restricting the smooth disbursement of the subsidy, i.e. the product must fulfil the agreed
technical standard of organic compost and the subsidy disbursement will be based on the
sales by providing the sales evident or invoice (marketing barrier). Therefore, the
supported World Bank composting program can be considered complementary to the
proposed project.
One of the important constraints for alternative energy development in the past is because
of the relatively cheap price of fossil fuels due to the subsidy. As the availability of oil
reserve in Indonesia is already very limited, it has become the government commitment
that oil subsidy will be removed. Table 14 (Annex page 13) summarized the development
of energy prices in Indonesia 2000-2003.
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4.4 Government policy and strategy relevant to the project sector
In order to encourage proper disposal of municipal waste, a program called ADIPURA
was launched in 1986 to clean up Indonesia’s towns and cities. Under this program, towns
that have been cleaned up by different methods such as eliminating illegal dumping of
municipal waste are granted public recognition by the Minister. Unfortunately, there is no
systematic law in Indonesia that lays down standards on the construction of incineration
facilities and landfill sites for the disposal of municipal waste. Regarding hazardous waste,
a law to rectify the disposal of hazardous waste and identify measures to be adopted in
promoting the proper management of such waste will soon be enacted. Construction of
facilities for storage and disposal of hazardous waste in Central Java, East Java and East
Kalimantan is planned, and if completed, it will be able to store 15,000 tons of hazardous
waste from 128 industries.
Policy on the level of national government sets forth the basic guidelines for measures
related to refuse incineration; it does not make specific reference to incineration. The
guidelines are as follows.
a. Reduction of refuse derivation volumes and utilization of environment-friendly
materials for packaging, etc.;
b. Promotion of the 3Rs - reduction, recycling, and reuse;
c. Enhancement of social concern about MSW problem through various campaign-
type activities (e.g., promotion of pre-sorting and 3R campaigns, encourage the use
of environment-friendly products, and encourage citizen awareness of MSW and
wastewater);
d. Provision for the application and dissemination of environment-friendly
technology;
e. Instruction of appropriate refuse disposal and treatment in society as a whole;
f. Promotion of cooperation among local government, private firms, and other parties
concerned with MSW disposal;
g. Promotion of environment-friendly production and consumption;
h. Development of schemes for subsidizing solid refuse disposal;
i. Provision of refuse disposal facilities to local governments; and
j. Promotion of the enactment and enforcement of rules related to refuse disposal.
Although schemes of subsidy are mentioned in the guidelines as noted above, the central
government does not provide official subsidies to local governments for MSW disposal. In
the facility aspect, it has supported installation of small incinerators (with a capacity of 8
m3) by the DKI Jakarta government, and about 40 of such incinerators are now in
operation. However, environmental assessments are not carried out under supervision of
the central government, and incinerators may be operated without following
environmental regulations.
As this suggests, the central government is not actively involved in MSW incineration as
regards policy measures, thus the responsibility is left to the local government.
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4.5 Overlap of the government’s and ADB’s policies and strategies in this
sector
At the Earth Summit held in Rio de Janeiro in 1992, 155 countries signed the United
Nations Framework Convention on Climate Change (UNFCCC), which entered into effect
in 1994. The goal of the UNFCCC is to stabilize concentrations of carbon dioxide and
other greenhouse gases, and it calls on developed countries (including Russia and the
countries of Eastern Europe), known as the Annex I Parties, to lead the way in taking steps
to cut down GHG emissions so that emissions in 2000 are at the same level as in 1990.
Indonesia signed the UNFCCC on June 5, 1992. On August 1, 1994, the President
approved the UNFCCC Ratification Law (Law No. 6/1994), and on August 23, 1994, the
instrument of ratification was submitted to the UN Secretary General and Indonesia
became a signatory country.
Indonesia signed the Kyoto Protocol in July 1998. Subsequently, the Environment
Minister established a National Committee on Climate Change and Environment to tackle
the problem of global warming. The translation of the Kyoto Protocol has now been
completed, and a translation certificate obtained from the UNFCCC. In the future, the LH
is to prepare a bill for ratification of the Protocol that will be submitted to the President via
the Ministry of Foreign Affairs. This is expected to be ratified by the Majelis
Permusyawaratan Rakyat (MPR) after approval by the President.
Indonesia has drawn up a master plan for promoting the Clean Development Mechanism
(CDM) with support from Germany and the Netherlands. Although the members of the
above National Committee on Climate Change and Environment have been chosen, the
chairman has yet to be appointed. CDM approval procedures and an approval agency are
also lacking, and urgent action is required to establish the necessary agencies and
structures for the practical implementation and operation of CDM projects.
The Asian Development Bank (ADB), World Bank and a number of European countries
are making an important contribution to the CDM in Indonesia. In 1998, the ADB
formulated a strategy for Indonesia’s to reduce its GHG emissions through the ALGAS
(Asia Least-Cost Greenhouse Gas Abatement Strategy) Project, and this was published in
a report entitled “Asian Least-Cost Greenhouse Gas Abatement Strategy Project
(ALGAS): Indonesia”.
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The benefits of the proposed project are:
• Reduction of environment pollution (in rivers, sea and ground caused by waste
disposal and air pollution from open burning of waste);
• Overcome social issues occurred from illegal waste disposal (open dumping);
• Conversion of non reusable waste into combustible gases for electricity generation,
for a better economic benefit;
• Utilization of municipal solid waste would reduce the use of fossil fuel;
• Reduction of GHG emissions;
• Cleaner environment for a better public health (odour, seeping of contaminated or
polluted water, potential spreading of disease);
• Creation of job opportunities; and
• Dissemination of a good municipal waste treatment technology in other locations
in Indonesia.
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described previously, the organic composting scheme will be complementary to the
proposed project.
Disposal of MSW by incineration offers secondary benefits as it allows electricity to be
generated using waste products. In view of the increasingly tight power supply situation
from 2003 (the ratio of reserve capacity will enter the critical zone), any amount of power
generated, no matter how little, should make some contribution to meet supply and
demand.
The drawback of building refuse incinerators is the huge cost involved. Even if maximum
use were to be made of public funds, it would be extremely difficult to build and operate
waste incinerators.
The proposed project does not adopt a conventional method of using waste to generate
electricity, but it employs what is called the “anaerobic digestion process combined
gasification and power generation” method instead, to increase revenues from the sale of
electricity. Being a CDM project, the present project is of enormous significance vis-à-vis
the economic assessment of the reduction in GHG emissions as a result of its
implementation.
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The gasification system and also purification system, regardless where the technology
comes from, is also important to be transferred. At the first stage the maintenance and
problem solving techniques should be transferred. At the later stages the design process
and also manufacturing process should also be transferred.
For power generation technology, it would be advisable to work through the operation and
maintenance personnel of the PLN. The connection technology of electricity generation
system to the commercial electricity (PLN) has been mastered domestically. Installation of
additional condensing turbine will use proven technology.
This project assumes application of the technology of manufacturers from Indonesia and
other countries for plant construction. The know-how needed for operation and
maintenance of this technology would have to be gradually transferred to the Indonesian
side.
The basic steps in the procedure of technology transfer will be as follows.
a. Outline of the facilities and instruction on applied technology, etc. (classes and on-
site training);
b. On-site posting at the time of plant construction for learning about the facility
structure, array, etc. (On the Job Training or OJT);
c. On-site posting during operation for learning about the mode of facility operation;
and
d. Enhancement of skills through routine management, periodic checking, and
trouble-shooting.
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= 99,792,000 kWh/year
Area Required = 4 Hectares
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pre-sorting, almost all of the parties producing MSW would probably not obey them. So
scavengers could still be given work by allowing them to hand-sort the waste.
In Indonesia, the supply of electrical power is tight and the increase in installed generated
capacity cannot keep abreast of the demand growth. The PLN views a power reserve rate
of at least 30% as necessary for a stable electricity supply, but the rate fell below this level
in 2003. The 18 MW estimated output in this project represents about 0.1% of the entire
installed grid capacity of 400 MW. The construction of this project therefore would
increase the reserve rate by 0.5%.
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Figure 5 Project boundary (activities inside the thin line)
Refuse collection and transport is excluded from the boundary because it occurs outside
the disposal area. The Java-Bali generation system is out of project’s manageable area.
This condition has made the Java-Bali system is out of the project’s boundary.
There are two important points in calculating the GHG emissions reduction: (i) recovery
of CH4 (avoided GHG emission), and (ii) electricity production using available gas
(avoided GHG emission due to conventional power generation). Based on these
calculations, monitoring the project can be done at two different locations. The first is at
the gas production point (both biogas and also syn-gas). The second is at the electricity
production point (kWh meter production).
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CH 4 (Gg / year ) = ( MSWT × MSWF × MCF × DOC × DOC F × F × 16 ( 12)− R) × (1 − O X )
Where:
MSWT = Total amount of refuse derivation (Gg/year)
MSWF = Share occupied by refuse transported to the disposal site
MCF = Methane formation compensation coefficient (managed disposal site: 1.0)
DOC = Weight in tons based share of degradable organic carbon
DOC = 0.4 (A) +0.17 (B) +0.15 (C) +0.30 (D)
A = weight in tons based share occupied by paper and cloth
B = weight in tons based share occupied by refuse from gardens and parks
and by non-food corrosive refuse
C = weight in tons based share occupied by food refuse
D = weight in tons based share occupied by wood and foliage
*1 In the IPCC report, the DOC value for Indonesia in 1995 was 0.17, but
1999 data for the refuse breakdown in Jakarta yielded a figure of 0.16
through the following calculation.
DOC = (0.4 × 0.1256) + (0.17 × 0) + (0.15 × 0.6505) + (0.3 × 0.0312)
DOCF = Share occupied by DOC carbon that converts into landfill gas
= 0.014T + 0.28 (T: temperature, °C) = 0.77
(Use of a temperature of 35°C contained in the IPCC report for anaerobic
bacteria layer)
F = landfill gas methane concentration (use of the IPCC value of 0.5)
R = Methane recovery - zero
Ox = Share of methane oxidation in the upper layer of soil - zero
The premise of this project is processing of 1,500 tons of MSW per day for 330 days a
year. The yearly level (in terms of the wet weight) would come to 495,000 tons per year
(=MSWT × MSWF). The yearly amount of methane emission reduction at the disposal site
therefore may be calculated as follows:
CH4 (Gg/year) = 495 Gg /year × 1.0 × 0.16 × 0.77 × 0.5 × 16/12 = 40.65 Gg/year
The next step is to convert this figure into CO2. When the global warming indicator for
CO2 is assigned value 1, the indicator for methane is 21. In the revised guidelines,
biomass-derived CO2 is not taken into consideration in GHG emissions. The reason is that
biomass grows through absorption of CO2 (for a minus 1 CO2 value), and merely releases
this CO2 again during decomposition (for a plus 1 CO2 value), resulting in a net value of
zero.
The landfill methane gas could be regarded as a result of conversion into methane instead
of CO2 after decomposition. In this view, the growth of biomass through absorption of
CO2 (for a minus 1 CO2 value) would be joined by a discharge of methane due to methane
fermentation (for a plus 21 CO2 value), resulting in a net CO2 emission value of plus 20.
So to calculate the Methane Emission the formula uses GWP value 20 instead of 21.
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CH4 (Gg /year) = 40.65 × 20 = 813 (813,000 tons CO2 eq/ year)
8.3.2 GHG emission from power plants supplying Java-Bali power system
Electricity supply to the system from the project is designed at 83,160 MWh/year. GHG
emission can be calculated using the following formula.
GHG emission rate x generated output
Here, the GHG emission rate is equivalent to the GHG emissions per unit of generated
output (tons CO2/MWh), and the generated output is the aforementioned figure of 83,160
MWh per year. The following section presents a calculation of GHG emissions, followed
by determination of the current amounts of energy use and GHG emissions.
GHG emission rate
The Small-Scale CDM Panel of the CDM Executive Board recommends application of
one of the following calculations of the GHG emission rate for power system.
a. Average for all power sources
b. Average for operating margin and build margin
The average is calculated by dividing total CO2 emitted from every power generation
source by the total generated output. The GHG emissions entailed by fossil fuel
consumption can be calculated by the following formula:
GHG emission = Amount of fuel Consumption × Carbon emission rate × Carbon
oxidation rate coefficient × CO2 unit conversion coefficient
Table 3 shows the coefficients for each fuel in the 1996 revised IPCC guidelines.
Calculation of the total GHG emissions for each type of fuel using these coefficients
yielded the following figure for the total amount of GHG emissions accompanying power
generation in the island of Java.
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Total GHG emissions:
Kt CO2/year (296,860 (TJ/year) × 27.6 (tons C/TJ) × 0.98 × 44/12) + (104,267 (TJ/ year) ×
20.0 (tons C/TJ) × 0.99 × 44/12) + (220,496 (TJ/ year) ×15.3 (tons C/TJ) ×
0.995 × 44/12)
= 49,319 kt CO2/year
The GHG emission rate can be obtained by dividing this figure by the total generated
output.
GHG emission rate = [49,319 ktons CO2/year] / [66,617 GWh/year]
= 0.740 tons CO2/ MWh
Current energy use and GHG emissions
The final step is to calculate the current amounts of energy use and GHG emissions.
a. Energy use
Based on supply of 83,160 MWh per year to the Java-Bali power system, the
current energy used to generate this power may be calculated as in the following:
[10.78 GJ/MWh] × [83,160 MWh/year] = 896.464 TJ/year
According to the IPCC guidelines, Indonesian oil has an energy level of 42.66
TJ/kt. The amount in oil-equivalent terms would therefore be as follows:
[896.464 TJ/ year] / [42.66 TJ/kt] = 21,014 toe/year
b. GHG emissions
The GHG emissions from existing power plant commensurate with the electrical
energy generated in this project may be calculated as follows:
[0.740 tons CO2 / MWh] × [83,160 MWh/year] = 61,538 tons CO2/year
Table 5 shows the current energy consumption and GHG emissions in each of the two
boundaries.
Table 5 Current amounts of energy consumption and GHG emissions
Energy consumption GHG emissions
toe/y tons CO2/y
Buried disposal site 0 813,000
Existing power plants 21,014 61,538
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this project would consist entirely of the aforementioned landfill gas calculation. In CO2
equivalent terms, this would amount to 813,000 tons CO2 /year
The objective here is to calculate the amount of CO2 emitted in the combustion of plastic.
The GHG emission rate from combustion of plastic is 2.6 tons CO2 per ton plastic
(assuming 99.5% combustion of the plastic). Therefore, the amount of CO2 emitted due to
plastic combustion may be calculated as follows:
GHG emissions due to plastic combustion
= 32,561 (tons plastic /year) × 2.6 (tons CO2/tons plastic) × 0.995
= 84,235 (tons CO2/year)
Increase in GHG emissions due to diesel fuel combustion
The amount of CO2 emissions due to combustion of the diesel fuel used as additional fuel
in the power generation system may be calculated as follows.
74 (tons CO2/TJ) × 1,138,920 (Litres/year) x 41.709 kJ/litre = 3,515 (tons CO2/year)
Therefore, the combined CO2 emissions from the combustion of plastic and the
combustion of diesel fuel would come to 87,750 tons CO2/year.
Table 6 summarizes the GHG reduction effect during each phase of the project. The
methane gas curtailment is the effect for curtailing "landfill gas" emissions of methane gas
19
due to the project. The curtailment of the existing amount of power generation is
equivalent to the effect of the project power supply for curtailing CO2 emissions deriving
from the fuel consumption at the existing thermal power plants. The project power
generation is the amount of CO2 emissions derived from combustion of diesel oil used in
the refuse power generation system in this project. The plastic combustion is the CO2
emitted as a result of the combustion of plastic in the refuse from the project. The total
amount of reduction is the net value from these effects of GHG decrease and increase.
20
decomposed by anaerobic bacteria in the ground. During decomposition process, methane
is formed as a by-product and discharged into the atmosphere.
The process of refuse along with implementation of this project would mean a
commensurate reduction in the amount of refused disposed of by burying it, and curtail the
amount of methane emitted from the controlled landfill site.
9.1.2 Methodology
The amount of methane reduction can be calculated by following these steps.
a. Measurement and recording of the amount (tons per day) and composition of
refuse put into the project from the transport trucks
b. Calculation and recording of the dry weight of biomass refuse used for methane
fermentation
c. Calculation and recording of the amount of methane emissions (tons CH4 per day)
based on the IPCC guidelines
d. Conversion of the result into CO2 equivalent (tons CO2 per day), and recording of
the same
e. Summing of the cumulative amount of methane reduction and the CO2 equivalent
over a prescribed period (one month; (tons CH4 and tons CO2 per month)
9.2.2 Methodology
The amount of CO2 emission reduction is derived from the following steps:
a. Measurement and recording MSW quantity (tons per day) and MSW composition
considered in the project from the transport trucks
b. Calculation and recording the dry weight of plastic refuse (tons of plastic per day)
c. Calculation and recording of the amount of CO2 emitted from combustion of
plastic refuse (tons of CO2 per day)
d. Measurement and recording the quantity of diesel oil consumed in the project (kilo
liter per day)
e. Calculation and recording the quantity of CO2 emitted from combustion of diesel
oil
f. Measurement and recording quantity of power supplied to the Java-Bali power
system by the project
g. Calculation and recording quantity of CO2 reduction at other thermal power plants
as a result of this supply
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h. Calculation of the gap between amounts of CO2 emission increase and decrease,
and calculation and recording the net amount of GHG reduction (tons CO2 per day)
i. Sum of cumulative amount of CO2 reduction and CO2 equivalent over a prescribed
period (one month; (tons CH4 and tons CO2 per month)).
In order to prepare and execute monitoring plans, the project principal will collect and
analyse the data shown in Table 7.
Table 7 Monitoring Data
No Monitoring items Monitoring interval Monitoring method
1 Amount of refuse Every day Weighing at the time
of hauling-in
2 Refuse composition Every season Analysis of
composition
3 Amount of power transmitted from the Every day Measurement with an
project generating system integrating watt meter
4 Amount of diesel oil consumption Every day Measurement with an
integrating flow meter
5 Calorific value of the diesel oil 4 times a year Calculation based on
analysis of constituents
6 Generated power of each type power Once a year Acquisition of data
plant connected to the Java-Bali power from PLN
system
7 Fuel consumed by each type power once a year Acquisition of data
plant connected to the Java-Bali power from PLN
system
8 Calorific value of this fuel Once a year Acquisition of data
from PLN
9 Average plant-use rate at each type Once a year Acquisition of data
power plant connected to the Java-Bali from PLN
power system
22
Taking the discount factor equals to WACC of 4.77% (see Table 11 and financial plan in
Table 8), the FNPV with CER revenue will be IDR 816,750 million, and FNPV without
CER revenue will be IDR 441,405 million.
Thus one can conclude that the project is financially feasible.
FUND REQUIRED
Proposed Project
Capital Expenditure 17,551 14,636 32,186 87.08%
Operating Expenditure 1,558 441 1,999 5.41%
Financial charges during development 2,778 - 2,778 7.52%
SOURCES OF FUNDS
Proposed ADB loan - 27,722 27,722 75.00%
Other loan 3,696 - 3,696 10.00%
Equity or capital contributions -
Government 1,848 - 1,848 5.00%
Other sources 3,696 - 3,696 10.00%
Subsidies for operation - - - 0.00%
Internal cash generation - - - 0.00%
11 Economic Analyses
11.1 Project Economic Analysis
The detailed calculation is presented in Table 13 in the Annex.
The economic analysis shows that at 12% discount factor, the EIRR is determined to be
30,11% with CER revenue, and 21,79% without CER revenue. At similar discount factor,
the ENPV will be IDR 299,033 million for ENPV with CER revenue and IDR 151,967
million for ENPV without CER revenue.
Meanwhile if use the discount factor equal to WACC of 4.77% (see Table 10 and financial
plan Table 8), the ENPV with CER revenue will be IDR 744,516 million, and ENPV
without CER revenue will be IDR 463,383 million.
This concludes that the project is economically justifiable.
23
beneficial for improving public welfare, enhancing the intellectual life of the nation,
making the development other economic sectors, and advancing the economy. It is
expected that national standards will be improved due to the creation of social capital,
assurance of wage income and improvement in living conditions.
24
12 Stakeholders’ Comments
12.1 Invitation letters to the Stakeholders
The project outline, the risks and benefits were explained to interested institutions or
organizations that have been contacted personally or by mail. They have been asked for
their comments or no objection regarding the technical, environmental and social issues.
The stakeholders identified for the project are as follows.
• DKI Jakarta Sanitation Bureau
• Electricity National State Company or PT PLN (Persero)
• The Ministry of Environment
• The Ministry of Energy and Natural Resources
• The Agency for the Assessment and Application of Technology
• Residential/local people
• Scavengers
25
application of technology particularly in the efforts of finding energy alternative for
energy resources, which may help in reducing the dependence on fossil oil.
The proposed project will still employ the scavengers during refuge selections in the
tipping floor and will allow them to benefit from the project.
26
14 Conclusion and Recommendation
The 18MW power plant will be able to supply 83,160 MWh electricity per year (gross
production 99,792 MWh/year) using municipal waste into Java-Bali grid. The CO2
emission reduction can reach 786,788 tons CO2 per year. This number excludes emission
from plastic combustion and small diesel generator utilisation. Income from selling
electricity to the national grid can reach USD 3,742,200.
The project will also generate fertiliser from the anaerobic and the gasification processes.
The organic fertiliser is formed from the effluent of anaerobic process while the ash from
gasification process can be utilised as mixture for the fertiliser. Income from fertiliser
sales can reach USD 2,182,950.
The project will provide many benefits, such as:
a. Reduction of environment pollution (in rivers, sea and ground caused by waste
disposal and air pollution from open burning of waste);
b. Overcoming social issues occurred from illegal waste disposal (open dumping);
c. Conversion of non reusable waste into combustible gases for electricity generation,
for better economic benefit;
d. Utilization of municipal solid waste to reduce the use of fossil fuel;
e. Reduction of GHG emissions;
f. Cleaner environment for a better public health (odour, seeping of contaminated or
polluted water, potential spreading of disease);
g. Creation of job opportunities;
h. Dissemination of a good municipal waste treatment technology to other locations
in Indonesia.
Besides improving the environment, the project is financially and economically feasible.
At 12% discount factor, the FIRR with- and without CER is 28,7% and 19,01%,
respectively. Similarly, the EIRR with- and without CER is found to be 30,11% and
21,79%, respectively.
27
Annex 1 Technical Description of the Project
Annex 1– 1
0
C ton/hour
425 81.4
BarG Kcal/kg
61 772
18 MW, 50 HZ
CONDENSING
TURBINE
GENERATOR
DRIVING STEAM
0.2 62.3
BarA
42 4350
- 5.6
STEAM 30m 42
EJECTOR
61 772
CONDENSER
Flow Diagram of Power Plant
IN 32 4350 LOSS 2%
OUT
Amount of Energy 30m 32
COOLING
68,250,000 Kcal/hr TOWER
DEAERATOR
No.1 60 83.4
BOILER 50 T/H 105 44.5
65 BarG 10 60
CONDENSATE PUMP
70 105 COOLING WATER PUMP
COOLING
WATER BASIN
MOTOR DRIVEN
FEED WATER PUMP CONDENSATE
WATER TANK
STACK RAW WATER
MOTOR DRIVEN
30 1.5 DEAERATOR LIFT PUMP
30 30
No.2
BOILER 50 T/H
65 BarG 105 44.5
RAW WATER PUMP
70 105
BLOW 276 2
DOWN
TANK 70 276
WATER
MOTOR DRIVEN TREATMENT CLARIFIER
FEED WATER PUMP TANK TANK
STACK PRESSURE
FEED WATER PUMP FILTER
CLARIFIER
FILTER WATER
WATER BASIN
BASIN
Annex 1– 2
Refuse Processing
The main equipment involved are:
a. Fermentation unit
b. Gasification unit
c. Gas utilization unit using steam turbine generation system.
The MSW from the trucks are dumped on to the receiving floor, in which they are
temporarily stored for further treatment. From the receiving floor, the MSW will then be
pickup mechanically by overhang arms to conveyor’s hoppers. Leachate that may be
excreted during the storage will be collected into a collection tank prior to further
treatment.
The MSW will then be transported to grinders by a long conveyor. The operator will be
placed along the conveyors that will sort valuables, recyclables and large articles that may
harm process equipment. The process will be undertaken manually by a large number of
operators that will have two beneficial effects: (i) providing workplaces for unemployed as
well as (ii) reducing any possible social upheaval that may stop the production process.
From the conveyor, the MSW will then be processed in size reduction equipment (grinder)
so that universal size of around 5 to 10 cm is obtained. During the process, most readily
degradable material will be squeezed out and form organic-rich leachate. Ground MSW
will then be fed into a hydro-pulper in which organic material will undergo further size
reduction and further excretion of suspended organic material so that pulp-like materials is
obtained. Materials that cannot be pulped and have high density like glass, battery and
stones will sink in the operation.
The partly pulped MSW is then fed into a rotating trommel in which fine MSW and slurry
leach out onto the open tray underneath. The retained coarse MSW will be retained and
are taken out at another end of the trommel. The slurry and fine organics will be pumped
out into the acidification reactor while coarse materials will be dried in a dedicated dryer.
Within acidification reactor, the organic materials will undergo a series of biochemical
reactions leading to acid formation. During the formation of acid, gases such as hydrogen,
methane and carbon dioxide will also be produced. Process operation will be maintained at
optimum condition that most of the hydrogen produced will bio-chemically be converted
into methane to avoid serious toxicity.
The acidified solution will be pumped into the second stage reactors in which acids and
non-degraded organics are further mineralised into the final product, the methane. The
whole process will only partly utilize the organic, while the non-easily degradable will
form sludge that needs further treatment.
The coarse organic and slurry from the second stage reactors will be dried in the gravi-
separator. The end products are relatively dry organic matter (sludge and coarse organics)
and water. Dry organic matter is passed into drying tank while water will be pumped into
water treatment facility.
In the gravi-separator, most of water will have been squeezed out so that the organic
material is relatively dry. The organic material is then further dried in a dedicated drying
chamber using hot exhaust gas. The material is expected to have relatively low moisture
content of around 20-30% prior to feeding to a gasification chamber.
Annex 1– 3
Dry organic material is then fed into the gasification chamber through a feed-lock
mechanism. The organics are combusted in a dedicated tank at a limited amount of air at
temperatures of 500-7000C. At that temperature, the organic material will be cracked
down into energy-containing gases and exhaust gases. The synthetic gas produced from
gasification and methane from anaerobic digestion is then combusted in a boiler to raise
steam, which is then expanded through a turbine.
Non-combustible materials like ash will be produced from the gasification process. The
ash is rich in mineral that will be used as raw material for the production of fertilizer or
will be used for brick material. The effluent resulted from the anaerobic digestion process
will be treated through a series of filter (alumino-silica) anaerobic and aerobic ponds. The
mineral-rich –alumino-silica powder will be harvested once they are saturated and will be
used as a fertilizer.
Annex 1– 4
Annex 2 Financial and Economic Analyses
Table 9 Summary of Technical and Financial Parameters
TECHNICAL
Capacity MW 18
Operating hours hours/day 24
days/year 330
Annual 7,920
Available hours 70% Annual 5,544
Annual power generation MWh 99,792
Losses 17% MWh 16,632
Annual power generation sales MWh 83,160
Refuse disposal ton/day 1,500
Composting process ton/year 495,000
Organic matter 35% ton/year 173,250
Fertilizer 36% ton/year 62,370
GHG reduction ton co2/year 786,788
Lifespan years 20
REVENUE
Power sales price USD Cent/kWh 4.50
Annual power generation income USD 3,742,200
Refuse Processing Fee USD/ton 6.24
Refuse processing income USD 3,088,800
Fertilizer price USD/ton 35
Annual fertilizer sales USD 2,182,950
CER price USD/ton CO2 5
CER revenue USD 3,933,940
Contingencies
10 Civil contingencies 10% USD 170,000
11 Mech. Contingencies 7.50% USD 1,285,464
12 Electr. Contingencies 5% USD 68,024
Annex 2– 1
Table 9 Summary of Technical and Financial Parameters (continued)
Other investment cost
13 Construction insurance 0.30% USD 95,369
14 Regulatory fees USD 10,000
15 Site establishment USD 141,176
16 Certification USD 100,000
17 Transfer of knowledge USD 50,000
OTHERS
Exchange rate US$ 1 IDR 8,500
Inflation rate 7.00%
Discount rate 12.00%
Annex 2– 2
Table 10-Weighted Average of Capital Cost
Equity
Foreign Domes-tic Govern-
ADB loan participatio Total
loans loans ment funds
n
Annex 2– 3
Table 11 Economic Price Valuations
Financial Economic
price Financial price Adjustment price
(USD '000) IDR (mil) IDR (mil) IDR (mil)
REVENUE
Annual power generation income 3,742 31,809 1.000 31,809
Refuse processing income 3,089 26,255 0.885 23,235
Annual fertilizer sales 2,183 18,555 1.000 18,555
CER revenue 3,934 33,438 0.749 25,045
12,948 110,057 98,645
ESTIMATION OVERALL COST
Investment Cost
Construction cost
1 Preparatory works 900 7,650 0.938 7,178
2 Civil and Building Works 1,700 14,450 0.938 13,558
3 Vehicle and office equipment 225 1,913 0.938 1,794
4 Mechanical works 17,140 145,686 0.938 136,688
5 Electrical works 1,360 11,564 0.938 10,850
6 Factory equipment 700 5,950 0.938 5,583
7 D/D fee 220 1,872 0.938 1,756
8 E/S fee 881 7,489 0.938 7,026
9 Land (4 Ha) 4,250 36,125 0.854 30,857
10 Civil contingencies 170 1,445 0.938 1,356
11 Mech. Contingencies 1,285 10,926 0.938 10,252
12 Electr. Contingencies 68 578 0.938 542
13 TAX 2,890 24,565 0.000 -
14 Construction insurance 95 811 0.938 761
15 Regulatory fees 10 85 0.938 80
16 Site establishment 141 1,200 0.938 1,126
17 Certification 100 850 0.938 798
18 Transfer of knowledge 50 425 0.938 399
Sum 1-17 32,186 273,583 230,602
Capitalized financial Cost 684 5,814 0.938 5,455
Total 32,870 279,397 236,057
Annex 2– 4
Table 11 Economic Price Valuation (continued)
Annex 2– 5
Table 12 Financial Analysis
Total Total
Working Net Benefit Net Benefit
Year Revenue Revenue Total Cost
Capital with CER without CER
with CER without CER
IDR (mil) IDR (mil) IDR (mil) IDR (mil) IDR (mil) IDR (mil)
Annex 2– 6
Annex 2– 7
Table 13 Economic Analysis
Total
Total Net Benefit
Benefit Working Net Benefit
Year Benefit with Total Cost without
without Capital with CER
CER CER
CER
IDR (mil) IDR (mil) IDR (mil) IDR (mil) IDR (mil) IDR (mil)
Annex 2– 8
Table 14 Development of Energy Prices in Indonesia
from June 15, 2001 average of 30% rise in fuel As a result of this, the price of gasoline increased
prices from 1,150 IDR/liter to 1,450 IDR/liter, kerosene
(implemented)
from 350 IDR/liter to 400 IDR/liter, and diesel
from 600 IDR/liter to 900 IDR/liter.
in January 2002 Electricity rates raised 6% A total of four price rises are planned in this year,
raising prices by a total of 24% altogether
compared with the last year.
from January 17, Average 22% rise in fuel As a result, price of gasoline increases from
2002 prices 1,450 IDR/liter to 1,550 IDR/liter, kerosene from
350 IDR/liter to 400 IDR/liter, and diesel from
600 IDR/liter to 900 IDR/liter. In the future, a
floating price regime linked to the Mid Oil Platt
Singapore (MOPS) price is to be introduced.
from January 1, Petroleum product prices and electricity rates also raised by 6%
2003 raised by a maximum of
Following on from 2002, electricity rates are
22%
scheduled to be raised 6% each quarter
Start from January price of gasoline is 1,810 IDR/liter, kerosene is
20, 2003 700 IDR/liter, diesel 1650 IDR/liter
Annex 2– 9