Biogas Practice Area
Domestic biogas & carbon revenue
A strategy towards sustainability
PPRE
Oldenburg
Domestic biogas & carbon revenue
April 26 - 28, 2011
Content
• Greenhouse emission reductions by domestic biogas installations
– Changing the manure management modality
– Substituting biomass and fossil fuels
– Substituting chemical fertilizer
– GHG emission reduction potential
• Reducing global GHG emissions
– The Clean Development Mechanism
• Project cycle
• Methodologies
– The voluntary market
• Methodologies
• Notes to the methodologies
• Voluntary or CDM?
• The value of carbon revenue for biogas projects
• Conclusions
Domestic biogas & carbon revenue
Biogas Practice Area
Introduction
Domestic biogas installations
•
•
Biogas
Bio-slurry
Carbon revenue
•
•
•
Greenhouse gas emission reductions
Baseline minus project emissions
Up on delivery
Sustainability
•
•
•
Financial
Technical
Programmatic
Domestic biogas & carbon revenue
Biogas Practice Area
Biogas
& GHGby
reduction
GHG
reduction
domestic biogas plants
Manure
handling
modality
Domestic biogas & carbon revenue
Fossil- and
NRB fuel
substitution
Chemical
fertilizer
substitution
Biogas Practice Area
Manure handling modality
Biogas Practice Area
Methane emissions per animal type “i” in “j” systems:
CH4i = ∑j Boi x VSi x MS%ij x MCFj
CH4=
Bo=
MS%=
MCF=
VS=
Methane emissions
Biodegradability
Manure management system usage
Methane conversion factor
Volatile solids
Domestic biogas & carbon revenue
[kgm-3]
[m3 CH4 (kgVS)-1]
[%]
[%]
[kgyr-1]
Biodegradability and volatile solids
Domestic biogas & carbon revenue
Biogas Practice Area
Characteristics of manure management systems
Domestic biogas & carbon revenue
Biogas Practice Area
Methane conversion factors
Domestic biogas & carbon revenue
Biogas Practice Area
MMM spreadsheet lay-out
Biogas Practice Area
Baseline side only
Baseline manure management GHG emission for dairy cattle
4.1.1
dairy cattle characteristics
VS
Bo
[kg/hd/d]
1.5.2
[m3CH4/kgVS]
1.85
0.13
3.1.3
hdnd
[# of nd-cattle]
2
3.2.3
Collnd
[%]
4.3.1.1
N-excrnd
[kgN/hd/yr]
1.5.1
4.1.2a
IPCC 2006 Table 10A-5
60%
40
CH4 & N2O emissons
total
Lagoon
Pasture /
range
Burned for
fuel
Liquid / slurry
Solid storage
78.0%
0.0%
42.0%
1.0%
4.0%
0.0%
1.5%
0.0%
1.5%
27.0%
0.5%
19.0%
10.0%
1.0%
10.0%
51.0%
1.0%
0.0%
Drylot
Daily spread
Digester
Other
4.13.2.2a
MCF
MS%
4.1.2.3a
Efk
[m3CH4/hd/d]
0.00
0.21
0.00
0.00
0.21
0.05
0.05
2.61
0.00
3.13
4.1.2.4a
Efknd-plant [kgCH4/pl/yr]
0.00
0.29
0.00
0.00
0.28
0.07
0.07
3.54
0.00
4.25
4.1.2.5a
EF3
[%]
0.1%
0.1%
2.0%
2.0%
0.0%
0.0%
0.5%
4.1.2.6a
EF3nd
[kgN2O/hd/yr]
0
0.0004
0
0
0.216
0
0
0
0
0.22
4.1.2.7a
EF3nd-plant [kgN2O/pl/yr]
0.00
0.00
0.00
0.00
0.43
0.00
0.00
0.00
0.00
0.43
4.1.2.1a
Domestic biogas & carbon revenue
Biomass and fossil fuel substitution
Biogas Practice Area
Baseline emissions for thermal energy for one household:
BEth, h = ∑j (( F i,bl,h) x NCVi x EFco2i)
Beth,h =
Fi, bl, h=
NCVi =
EFco2i=
Baseline hh emissions from thermal energy
Amount of fuel i in baseline situation per hh
Net calorific value fuel i
CO2 emission factor for fuel i
Domestic biogas & carbon revenue
[t CO2eq]
[kg, m3 or ltr]
[GJkg-1etc]
[tCO2kg-1]
NRB & FF spreadsheet lay-out
Biogas Practice Area
reference
unit
factor
GWP (IPCC 3rd assessment report 2001)
Agricultural residue (LHV on wet basis)
Fuelwood (LHV on wet basis)
non renewable:
Charcoal
Dung cake
Kerosene
LPG
2.5
2.2
[kg/pl/yr]
[MJ/kg]
664
1752
0
1095
0
51
0%
75%
75%
0%
100%
100%
12.6
15
29
15.5
45.6
47.8
Energy
substitution
biogas plant
Calorific
value
substituted
fuel
Avg
substituted
fuel
Fuel characteristics
Baseline side only
[GJ/pl/yr]
8.361
26.283
0.000
16.974
0.000
2.438
54.056
[kgCH4/pl/yr]
1
Domestic biogas & carbon revenue
100.0
112.0
112.0
100.0
71.9
63.1
0
2208
0
0
0
154
2362
IPCC 2006
table 2.5
[kgCO2eq/MJ]
[gN2O/MJ]
CO2eq
reduction per
plant
[kgCH4/GJ]
5.2
N2 O
reduction per
plant
[kgCO2eq/pl]
N2O emission
factor
[kgCO2/GJ]
IPCC 2006
table 2.5
Nitrous oxide
CO2eq
reduction per
plant
IPCC 2006
table 2.5
CH4
reduction per
plant
CH4 emission
factor
Methane
CO2
reduction per
plant
Emission
Factor
Carbondioxide
[kgN2O/pl/yr]
[kgCO2eq/pl/yr]
5.3
23
0.300
0.300
0.200
0.300
0.010
0.005
2.51
7.88
0.00
5.09
0.00
0.01
57.69
181.35
0.00
117.12
0.00
0.28
356.44
296
0.0040
0.0040
0.0010
0.0040
0.0006
0.0010
0.033443
0.105133
0
0.067896
0
0.002438
9.90
31.12
0.00
20.10
0.00
0.72
61.84
… and some charts ..
Biogas Practice Area
Fuel substitution mix [kg/plant/yr]
Kerosene, 0
LPG, 51
Dung cake,
1095
Agric
residue, 664
Fuelwood,
1752
Charcoal, 0
GHG reduction by source [kgCO2eq/plant/yr]
LPG, 155
Kerosene, 0
Agric
residue, 63
Dung cake,
127
Nitrous
oxide
2%
GHG reduction by GHG type
Methane
12%
Fuelwood,
2404
Carbon
dioxide
86%
Domestic biogas & carbon revenue
Chemical fertilizer substitution
Biogas Practice Area
Avoiding emissions from chemical fertilizer application and production, however:
•
•
Complicated calculation; no methodology available
Even more complicated to monitor / verify
Up to now excluded for biogas programmes
Domestic biogas & carbon revenue
Project boundary
Animal manure
storage
Biogas Practice Area
manure
biogas
Bioslurry
Fertilizer for
fields
Biogas stove
(thermal energy
to the user)
GHG reduction potential for domestic biogas
Biogas Practice Area
Summary greenhous gas reduction
Component
baseline
[kgCO2/pl/yr]
1
2
3
4
Manure management
Chemical fertilizer
Fuel
GHG construction plant @ 2%
1050
0
2780
biogas
[%]
[kgCO2/pl/yr]
27%
0%
73%
0%
kgCO2eq/pl/yr
3830
3000
518
0
2
8
[%]
98%
528
Domestic biogas plant GHG reduction
2500
baseline
project
2000
1500
1000
500
0
-500
Manure
management
Fuel substitution
-1000
reduction
Domestic biogas GHG
& carbon
revenue
range: 1.7 to 6 tons CO2 eq / plant / yr
Plant construction
0%
0%
1%
CDM in practice
Domestic biogas & carbon revenue
Biogas Practice Area
CDM in practice II
Domestic biogas & carbon revenue
Biogas Practice Area
Reducing GHG emissions
•
•
ET
JI
• CDM
– Annex 1 - non-annex 1 party
– Technology transfer
– Sustainable development
» Economic
» Social
» Environment Emission trading under the CDM
.. and …
• Voluntary market
Domestic biogas & carbon revenue
Biogas Practice Area
CDM project cycle
CDM project activity cycle
Domestic biogas & carbon revenue
Biogas Practice Area
Methodologies
Biogas Practice Area
Describe
• how to measure baseline and project manure management change and fuel
substitution.
• How to monitor and verify baseline and project situation.
• How to calculate eventual emission reductions.
Exist as:
Large scale:
Small scale:
PoA:
not available for domestic biogas plants
Simplified methodology: monitoring requirement, registration fee
Project size restricted (=“small”)
Grouped small scale projects
Many large, institutional buyers insist on emission reductions verified by a
“recognized” methodology:
CDM:
Voluntary:
Domestic biogas & carbon revenue
AMS I.C.
(AMS) I.E.
AMS III.R
Gold standard
AMS I.C.
“Thermal energy for the user with or without electricity”
•
•
•
Renewable thermal energy for households
Substitution of fossil fuel
In examples “biogas” is not specifically mentioned, but “implied”
Project size limited to 45 MWth
A-priori household identification (canceled)
Domestic biogas & carbon revenue
Biogas Practice Area
(AMS) I.E.
Biogas Practice Area
“Switch from non-renewable biomass for thermal applications by the user”
•
•
•
Small thermal appliances for households
Substitution of non-renewable biomass
In examples “biogas” is specifically mentioned.
Project size limited to 45 MWth
A-priori household identification (canceled)
Specification establishment non-renewable fraction of biomass.
Domestic biogas & carbon revenue
(Non-) renewable biomass
Biomass is renewable if it comes from:
• sustainably managed forests
• sustainably managed croplands / grasslands
• residues
• Industrial / municipal waste
Non renewable:
Land-use data plus surveys on:
• Trend in fuelwood collection time
• Trend in fuelwood prices
• Trend in type of collected biomass
Domestic biogas & carbon revenue
Biogas Practice Area
AMS III.R
Biogas Practice Area
“Methane recovery in agricultural services at household / small farm level ”
•
•
•
Small farms / households.
Manure management modality change.
Only applicable in combination with AMS I.C. ((AMC I.E. not yet mentioned).
Methane recovery systems up to 5 tons CO2 eq.
Project size up to 60 kt CO2 eq.
Specification establishment non-renewable fraction of biomass.
Domestic biogas & carbon revenue
Programme of Activities
Not a methodology as such
Several projects, meeting the PoA eligibility criteria, can be included when:
• Using approved methodologies
• Avoiding double counting
• Accounting for leakage
• ERs are measurable, verifiable and additional
Then:
• Only one single registration
• Inclusion of new, additional projects relatively simple
• Some requirements could be shared (e.g. EIA)
• Validation and verification at project level
But:
• Application of one methodology only (seems to be adjusted now)
• DoE is accountable
Domestic biogas & carbon revenue
Biogas Practice Area
Gold Standard “small biodigester” methodology
“Implementation of biodigesters in households within the project’s
boundaries”
•
•
•
“…the individual hh will not act as project participants”
Substitution of NRB and fossil fuel
Manure management modality change
Satisfied demand option in baseline
No project size limitation (not “small scale”)
NRB fraction calculation specified
But:
• Statistical correction for sample size and standard deviation
• “Heavy” on additionality and sustainability
Domestic biogas & carbon revenue
Biogas Practice Area
Gold Standard “small biodigester” methodology
Sustainable development matrix
• Environment
• Social development
• Economic and technological development
Safeguarding princples
• Human rights
• Labour standards
• Environmental protection
Domestic biogas & carbon revenue
Biogas Practice Area
Example SD matrix
Indicator
Mitigation
Biogas Practice Area
Relevance to (localized) MDGs
Parameter
Score
(‘-‘ / ‘0’ / ‘+’)
Brief explanation
Social development
Quality of employment
Masons and technicians trained for (rural) artisan level
employment
MDG:
SEDP: 9
# of biogas construction
teams
+
Construction and quality control requires well skilled masons and technicians. Mason report
better income then in regular construction sector
MDG: 1.1; 3.4; 4.5
SEDP: 9; 10
Workload reduction for
women.
Incidence of illnesses and
injuries resulting from
conventional energy use.
+
Biogas plants are an economically viable investment for small livestock holders that –oftenlive in rural areas. Investment costs, however, are entirely up-front, posing a barrier for
poorer hh.
Many of the micro-level benefits of biogas directly benefit women and children, an often
more deprived section of society.
Access to affordable and clean energy services
MDG:
SEDP: 1; 7
# of biogas installations
constructed
+
Domestic biogas installations produce clean energy. The cost of operation of the
installations is negligible. For small holder hh, biogas installations are a viable investment.
Human and institutional capacity
Biogas technical training
Biogas multi-actor support network
MDG:
SEDP: 9
# of participating government,
non-government and private
organizations
+
The programme aims to (further) develop a commercially viable domestic biogas sector for
which it heavily invests in human and institutional capacity
Construction and quality control requires well skilled masons and technicians, for which the
programme will run a comprehensive training component (total professional training over
53,000 person-days)
The programme is establishing a provincial – district - commune support network nation
wide.
Sub-total social development
+4
Livelihood of the poor
Workload reduction for women and children
Health improvement / injury reduction
High upfront investment
The programme will assist hh with bearing the investment
costs with an investment subsidy to the tune of ~ 25%, and will
develop –in cooperation with national finance institutions- a
biogas micro-finance component to reduce the burden of the
high investment costs
Domestic biogas & carbon revenue
An overview of methodologies
Domestic biogas & carbon revenue
Biogas Practice Area
Notes
•
•
•
•
•
•
•
•
•
Carbonese doesn’t always translate easily
Pioneering due, few registered projects only
No methodology for chemical fertilizer substitution
Inclusion of manure management component?
To NRBe or not to NRBe
Suppressed and satisfied demand
Safeguarding additionality
The ODA issue …
PoA: Opportunities and risks
Domestic biogas & carbon revenue
Biogas Practice Area
CDM or voluntary?
Biogas Practice Area
Considering that:
• CDM and GS differ little, post validation procedure with GS might be shorter
• But CDM procedure is much more complicated than other VER schemes
• CERs might be more attractive for institutional investers (WB, ADB)
• CERs might have higher, more predictable value than VERs (?)
• Absorption capacity voluntary market might be limited
• Voluntary market future perspective ?
• Commitment period risk CERs > VERs (?)
It seems:
• Smaller or starting biogas projects should go for voluntary credits
• Larger projects, depending financially on carbon revenue go for CERs
• Programme of activities particularly interesting for expanding projects.
Domestic biogas & carbon revenue
Carbon value for biogas projects: Pakistan
Project expenses and carbon revenue
800
700
Carbon revenue
600
Carbon rebate
Support
500
Euro
Investment
400
300
200
100
0
Expenses
Domestic biogas & carbon revenue
Carbon revenue
Biogas Practice Area
Financial, technical and programmatic sustainability
Biogas Practice Area
National
domestic biogas
programme
PERFORMANCE
CARBON
FEEDBACK
REVENUE
Domestic biogas & carbon revenue
Conclusions
The good news :
• Biogas-carbon methodologies available
• Expertise and experience mounting
• Good demand for CER & VER
• Potential improving technical, financial and programmatic sustainability
“However”:
• Methodologies still harbor uncertainties and risks
• Formulation is complicated
• Management of carbon projects extra complicated
• CER & VER market >2012 uncertain
Domestic biogas & carbon revenue
Biogas Practice Area
Biogas Practice Area
Thank you for your attention.
Domestic biogas & carbon revenue
The dairy cow
Mature “developed (!)” dairy cow
Biogas Practice Area
Live weight 635 kg
Milk production 20 – 35 kg / day
Main dung characteristics:
Daily fresh manure production:
Total solids:
Volatile solids:
Chemical Oxygen Demand:
51 kg per day (61 litres / day)
6.4 kg (TS (= DM) ~ 13% of fresh wght)
5.4 kg (VS ~ 11% of fresh wght, VS ~ 85% of TS)
5.7 kg (COD ~ 11% of fresh wgt)
Macro nutrients:
Nitrogen
Phosphorus
Potassium
0.39 kg (organic)
0.04 kg
0.16 kg
Nk:
P:
K:
“Developing” cattle:
Live weigt <250 kg
Milk production 1-5 kg/day
TS >20% of fresh wght
Biochemical processes and biogas