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PROJECT INFORMATION DOCUMENT (PID)
CONCEPT STAGE
Project Name
Region
Sector
Project ID
Borrower
Implementing Agency
Environment Category
Date PID Prepared
Date PID Updated
Date of Appraisal
Authorization
Date of Board
Approval
1.
Thailand: Sapthip Biogas Wastewater Project
East Asia and Pacific
Environment and Rural Development
P110040
N/A
Sapthip Co., Ltd
[ ] A [ ] B [ ] C [ ] FI [X ] TBD (to be determined)
April 10, 2008
September 10, 2008
Not applicable.
Key Development Issues and Rationale for Bank Involvement
Thailand is the largest cassava producing country in Asia, with 1.1 million hectares
producing an average of over 20 million tons per year. National strategic planning in the
sector over the past 10 years has steadily increased production while keeping the area of
cassava production constant1. Much of the cassava produced undergoes further domestic
processing into starch products (12 million tons/yr) and ethanol (300,000 tons/yr).
Processing of cassava to produce ethanol is anticipated to grow to approximately 2
million tons per year in part due to the government’s Gasohol Strategic Plan which aims
to have all gasoline consumed to be a blend containing 10 percent bioethanol 2 by 2012.
The wastewater produced from cassava processing contains very high quantities of
organic waste and is one of the most significant polluters in agriculture or food
industries 3 . Managing such high concentrations of wastewater is one of the largest
environmental challenges in cassava processing. Systems which treat wastewater using a
series of open lagoons remain the most widely practiced treatment technology in
Thailand because of simplicity and low capital costs. The technology is sensitive
operationally to overloading especially during the rainy season, requires very large tracts
of land and has environmental risks related to groundwater contamination and nuisance
odors. In some cases, poorly designed and operated industrial lagoon systems in
Thailand have caused chronic pollution issues and public outcry.
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Between 2002 and 2006 total production increased from 18 to 25 million tons and yield has increased
from 17 to 22 tons per hectare.
2
Growth in cassava used for ethanol is based on the capacity of processing plants that have been issued
licenses in the country.
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The chemical oxygen demand (COD), a measure of the quantity of organic matter, ranges from 15,000 to
45,000 mg/l and for ethanol production it ranges from 100,000-150,000 mg/l. For comparison piggery
wastewater ranges from 5,000-25,000 mg/L.
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In addition to the challenges in wastewater treatment it is estimated that the cassava
processing industry in Thailand would produce 60 million tons of carbon dioxide
equivalent (tCO2-e) in greenhouse gas emissions in 2010. This is due to the wastewater
which degrades in open lagoons and waterways producing methane, a greenhouse gas 21
times more potent than carbon dioxide. Additionally, these industries also typically rely
in part on fossil fuel for their boilers and for electricity consumption which further
contributes to greenhouse gas emissions.
The proposed project would provide financing for the operation of a modern wastewater
treatment plant that recovers methane and renewable energy facilities in a cassava to
ethanol processing facility and reduce greenhouse gas emissions.
2.
Proposed Objectives
The project development objective would be to reduce greenhouse gas emissions by
recovering methane from the wastewater treatment system of a cassava-based ethanol
source plant and by the replacement of fossil fuel by a renewable energy in the ethanol
plant.
3.
Preliminary Description
The project would have two main components: the wastewater treatment and methane
capture system, and the renewable energy facilities that will utilize biogas and biomass
for fuel.
The project has the following components:
(a) Wastewater System with Biogas Collection. The system would treat the
wastewater (“slops”) from the ethanol distillation columns using a
commercially available technology that is widely adopted internationally. The
system separates the solid “wet cake” from the ethanol plant for use as fuel for
one of the boilers. The remaining wastewater is then treated in stages in an
Upflow Anaerobic Sludge Blanket (UASB) reactor and a series of covered
anaerobic lagoons (the main systems where methane is generated and
collected for use as A fuel supplement in the boiler). The wastewater is then
sent through aerobic treatment lagoons and polishing ponds before discharge.
The treatment plant is designed to accommodate the anticipated wastewater
flow (1,589 m3/day and concentration from the ethanol plant (133,000 kg of
chemical oxygen demand (COD)/day) while meeting national environmental
standards.
(b) Renewable Energy Use. Two boilers would be used in the ethanol plant. The
first boiler would primarily rely on biogas but also use solids from the
wastewater treatment process and some fuel oil.. The second boiler would use
biomass from a plantation and other sources (such as corn cobs and wood
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chips) as fuel. A portion of the biogas would be used for on-site electricity
generation using a standard gas-fired generating set.
(c) Purchase of Emission Reductions. It is estimated that the project will reduce
204,626 tCO2-e per year of greenhouse gas emissions. The Bank acting as
Trustee of the Netherlands CDM Facility would finance the purchase of
Emission Reductions (ERs) resulting from the two project components. The
purchase would be a performance-based contract under which payments are
triggered by successful verification by an accredited operational entity
(Designated Operational Entity under the Rules of the Kyoto Protocol) of the
reduction of emissions from the collection of methane released by wastewater
treatment and from substitution of fossil fuel by renewable biogas and
biomass energy. The quantity of ERs to be contracted, the length of time over
which the purchase will be made, and the price paid will be agreed between
the Bank and the project proponent. The estimated value of the purchase is
between US$10 and US$20 million.
4.
Safeguards policies that might apply
Safeguard Policies Triggered by the Project
Environmental Assessment (OP/BP 4.01)
Natural Habitats (OP/BP 4.04)
Pest Management (OP 4.09)
Physical Cultural Resources (OP/BP 4.11)
Involuntary Resettlement (OP/BP 4.12)
Indigenous Peoples ( OP/BP 4.10)
Forests (OP/BP 4.36)
Safety of Dams (OP/BP 4.37)
Projects in Disputed Areas (OP/BP 7.60)*
Projects on International Waterways (OP/BP 7.50)
Piloting the Use of Borrower Systems to Address
Environmental and Social Issues in Bank-Supported Projects
(OP/BP 4.00)
5.
Yes
[X]
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No
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[X]
[X]
[X]
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[X]
[X]
[X]
[X]
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[X]
TBD
X
X
Tentative Financing
Source
Borrower/Recipient: Sapthip Co., Ltd
Netherlands CDM Facility
Total
($m.)
40
10-20
50-70
*
By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties'
claims on the disputed areas
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6.
Contact Point:
John Morton
Environmental Specialist
World Bank,
1818 H Street, NW, Washington D.C., 20433
Tel: 202-473-14879, Fax 202-522-1666
email:jmorton@worldbank.org
Location: Washington, DC., USA
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