Project idea note
Pinghu Municipal solid waste incineration project. China
Project Idea Note
Zhejiang Pinghu municipal solid waste incineration Project,
China
This PIN file was developed by
The institute for thermal power engineering of Zhejiang University
Hangzhou/China
The project was sponsored by
DELIXI Group Co. Ltd
Dec 26, 2005
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Project idea note
Pinghu Municipal solid waste incineration project. China
PROJECT IDEA NOTE
Name of Project: Zhejiang Pinghu municipal solid waste incineration project, China
Date submitted: Dec 25, 2005
A. Project description, type, location and schedule
General description
Project objective
Project description and proposed
activities
The proposed project includes building a MSW direct incineration
plant with heat recovery facilities to generate electrical power.
About 600 toners per day (TPD) of MSW will be incinerated to
generate 18MW (gross) electricity.
It is a normally underdeveloped city with approximant 500,000
residents. About 500 tons waste is generated each day in the city
and the figure is increasing about 8~10% year by year. Till now
there is only one simple landfill plant which located in Dingyun
village. If the CDM project has not been adopted, in order to
dispose the waste generated and will generate, a scale more than
600t/d landfill plant should be build with the capacity about
4,000,000m3 of 20 years lifetime. Based on current government
regular requirement and local economic conditions, no sanitary
facilities would be installed such as gas and leakage collection and
recovery system, and it is also difficulty to keep the isolate from
surrounding soil and groundwater. From a techniques view, this
kind of landfill belongs to dumping disposal which currently is BAU
in China.
The proposed CDM project includes setting up of a Municipal
Solid Waste processing plant by direct incineration techniques with
heat recovery facilities to generate electrical power. About 600
toners per day (TPD) of MSW will be incinerated to generate 18MW
(gross) electricity. All the wastes are intending to be simple dumped
under business as usual way. Greenhouse gas reduction results
from:
1. Displacement of simple dumping treatment avoiding
methane release during anaerobic organic waste
decomposition.
2. Displacement of fossil fuel consumption from power
generation through heat recovery system.
The scheme of the project is describe in figure below:
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Project idea note
Pinghu Municipal solid waste incineration project. China
The MSW would be collected by road sweepers and transport to
the plant by sanitation airtight vehicles. After simple assort
treatment (pick out non-organic materials such as metal, glass, and
bricks, etc,) , the simple-treated waste would be directly throw into
two incinerators (another one for failure stand-by ) by belt
conveyors, and all carbon element would be converted into CO2,
and the heat energy would be recovery for electrical generate
(18MW) by stream turbulent after self-consuming (about 20%
electricity to operate the incineration machines including air fan and
pumps), redundant electrical would be send into local regional grid.
Combustion residues including fly ash and slag would be solidified
by cement. The plant shall be operating for 23 hours a day for
about 300 days in a year and thus process total 219000 tones of
waste and 124.2 Million Units of electricity annual.
Technology to be employed
In this project, the Circulating-Fluidized-Bed incineration technique
will be employed.
Project proponent submitting the PIN
The institute for thermal power engineering of Zhejiang
Name
University
Organizational category
Non Governmental Organization
Other function(s) of the project
developer in the project
Summary of relevant experience
Technical advisor
Address
38 Zheda Road, Hangzhou, 310027, P.R China
Contact person
Prof. Yan jian hua
Telephone / fax
(86)571-87952443-8211
E-mail and web address
yanjh@cmee.zju.edu.cn
www.ceee.zju.edu.cn
The institute is developing waste thermal treatment techniques to
reduce GHG over years, and has helped government to build more
than 10 MSW incineration power plants around China which do a
great favor to Chinese GHG reduction task.
Project sponsor(s) financing the project
(List and provide the following information for all project sponsors)
Name
Zhejiang DELIXI Group Co., Ltd
Organizational category
Private company
Address (include web address)
Liuqing Road No.1 Delixi Mansion, Liushi Wenzhou, Zhejiang
Province, China
http://www.delixi.com/
Manager project
Main activities
Summary of the financials
(total assets, revenues, profit,
etc.)
DELIXI Group Co., Ltd., established in 1984 and headquartered in
Zhejiang wenzhou, is one of the two largest private enterprises in
China. Now DELIXI has about 10,000 employees, and Its revenue
in 2001 was about $ 790 million. Through years of development
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Project idea note
Pinghu Municipal solid waste incineration project. China
DELIXI has expanded its business into more than 40 countries.
Type of project
Greenhouse gases targeted
CO2 / CH4
Type of activities
Abatement
Field of activities
(Select code(s) of project
category(ies) from the list)
d. Waste management/utilization of waste
Location of the project
Region
East Asia
Country
China
City, Country
PingHu city, Zhejiang province, China
Brief description of the plant or
facility site
The plant is located in the west side of the BinHai No.2 road of
QuanTang town in PingHu Dushan Harbor District
Expected schedule
Earliest project start date
(Year in which the project will be
operational)
Estimate of time required before
becoming operational after
approval of the PIN
10/01/2006
Time required for financial commitments: 6 months
Time required for legal matters:
2 months
Time required for negotiations:
2 months
Time required for establishment:
20 months
Expected first year of CER / ERU 2008
/ RMU / VER delivery
Project lifetime (Number of years) 20 years
Current status or phase of the
feasibility study finished
project
Current status of the acceptance Letter of Endorsement is under discussion
of the Host Country
The position of the Host Country d.
with regard to the Kyoto Protocol signed and has demonstrated a clear interest in becoming a party
(mention what is applicable)
in due time (e.g., countries which have already started or are on the
verge of starting the national ratification, acceptance or approval
process);
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Project idea note
Pinghu Municipal solid waste incineration project. China
B. Expected environmental and social benefits
The below methodology for the calculation of baseline emissions and
project emissions is based on the IPCC guidelines for waste treatment,
and on the approved baseline methodology AM0010 "Landfill gas
capture and electricity generation projects where landfill gas capture
is not mandated by law", and on Executive board methodology ID
"Indicative simplified baseline and monitoring methodologies for
selected small-scale CDM project activity categories" for the use of
electricity bought from the grid.
The calculation of emissions is divided into direct emissions (for
converting fossil-origin carbon from CH4 emission to CO2 emission)
and indirect emissions (for energy production).
Overall proposed incineration technique description
The project proposed here is to replace simple landfill plant by
incineration techniques. The advantages of incineration very
obviously:
 Saving land resource, comparing with landfill, a lot of land
resource would be saved which is very importing for developed
region.
 Right now treatment method, the waste will be treated about 2 or
3 days after rejecting, this character is very usefully for large
cities or metropolitans.
 Avoid leakage, the waste water leakage of landfill is unavoidable
for simple constructed landfill in China which cause severe
underwater and soil contamination.
Estimate of carbon sequestered
or conserved (in metric tonnes of  Avoid methane emission and odour gas dispersal, the methane
CO2 equivalent or tCO2e)
contributes great to world climate worming, and odour gas will
great effect neighborhoods.
 Energy recovery, through incineration, the heat energy could be
recovered to generate electrical power which would substitute
fossil fuel consumption of the local grid.
Emissions from landfill
If the incineration CDM project would not be approved and without
any extra financially support, a BAU landfill plant will be constructed
based on current technique level to deal with the MSW generate daily
by municipal government. As there are no practical gas capture and
recovery facilities of the landfills constructed in the past decades
around China, the GHG would emit to atmosphere totally during the
anaerobic and aerobic biodegrading procedure of the carbon origin
material including methane (CH4), carbon dioxide (CO2), and
hydrogen sulphide (H2S) and nitrogen components (N2, NH4, N2O)
while the emissions of methane and carbon dioxide are absolutely
dominant compared to other gases. As the CO2 emissions are biomass
original could be set to zero.
So for landfill constructed normally in China, only CH4 emissions are
concerned.
Emissions from incineration
If the CDM project would be approved, a MSW incineration plant
would be constructed. The combustion of the waste would release
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Project idea note
Pinghu Municipal solid waste incineration project. China
carbon dioxide, methane and nitrogen dioxide, and a small quantity of
other gases which will not be concerned in this methodology. In
emissions, methane is likely to be insignificant because of the
combustion conditions in incinerators such as high temperatures and
long resident times. And the emissions of CO2 are much greater than
N2O.
According to the IPCC Guidelines, only CO2 emissions resulting from
the incineration of carbon in waste of fossil origin (e.g. plastics,
certain textiles, rubber, liquid solvents, and waste oil) should be
included in emissions estimates. The carbon fraction that is derived
from biomass materials (e.g. paper, food waste, and wooden material)
is not included.
So for incineration plants, emissions of CO2 and N2O are concerned.
CO2 emissions from electricity production
For landfill plant the electricity consumption is relatively
insignificant. While the waste incineration plants use electricity for
several purposes, especially for the waste pre-treat machines, air fans,
dust-filters, and etc. When this electricity consumption is bought from
the grid it can have coursed CO2 emissions from grid-connected
power plants which burning fossil fuel.
In this project, through incineration, the energy in the waste can be
used for energy purposes, e.g. electricity and heat production by use
of a gas engine. This energy production can by part of the project, and
in such case the CO2 savings due to the amount of electricity that is
produced shall be claimed. The electricity consumption at the plant is
assumed to be proportional to the amount of generate. And the
redundant electricity can be sent into the grid. Therefore the electricity
consumption in the baseline will be dynamic and based on annual
waste treatment amount and electricity generated.
Total GHG emission reducing
The total GHG emissions between the baseline and the proposed
project could be expressed as followings:
Baseline Emissions =
CH4 emissions
Project Emissions =
CO2 emissions due to combustion
+ N2O emissions due to combustion
+ CO2 emissions due to electrical change
In which:
CO2 emissions due to electrical consumption=
(Electrical consumed - Electrical produced)×CO2 emission rate.
“What is important is the GHG emissions reduction due to CDM
project”.
The Emissions saved
= Baseline Emissions – Project Emissions;
The following description gives detail calculation for the emissions
saving
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Project idea note
Pinghu Municipal solid waste incineration project. China
The following estimating figures indicate the total GHG reduced on a
scenario. The actual emissions reductions will probably be much
higher because leakage always happens for landfill, but this fact
should be ratified with field tests carried out at site. The crediting
period of the project runs from 2008 to 2028.
 Per year (average until 2028): 161873.85 ton CO2eq/year
 Accumulated in lifespan(20 years): 3237477.00 ton CO2eq
 Accumulated in 10 years: 1618738.50 ton CO2eq
 Accumulated until year 2028: 3237477.00 ton CO2eq
The baseline of this project is a supposed 600t/d landfill plant and
local chemical factory’s requirement for heat and electric. The
supposed landfill plant is normal constructed with gas chimney
installed burning the CH4 for safe reason.
Which emissions is the proposed CDM project displacing?
Baseline scenario
(What would the future look like
without the proposed project?
What would the estimated total
carbon sequestration /
conservation be without the
proposed project?)
In the MSW direct incineration project proposed at Pinghu city, all the
waste will be burned directly by CFB facilities which generate
requirement for local factories at the same time. So all the carbon
original in the waste will be converted into CO2 which come from
biomass, the project also avoid the fossil fuel consumption for electric
and overheated stream generating. The estimated reduced GHG is
about 253,434.9 ton CO2eq each year.
Clearly the emissions are greatly reduced, if the CDM project would
be implemented, because CO2 emissions from the waste combustion
result from biomass and can therefore be set zero.
What would the future look like without the proposed project?
If the CDM project is not implemented, The local government would
build a 600t/d landfill plant which will consume 200000m2 land
resource and release 117096.672 ton equivalent CO2 per year. And as
the simple treatment facilities, the under water will unavoidable be
polluted due to leakage. And also there will be odour smell all around
the disposal site.
Describe the project barriers (finance, market, institutional, legal,
and technological).What are the solutions to these problems?
Investment – the MSW direct incineration project incineration project
inherent capital costs with a proven technology and know-how are
substantial. The selling of CERs could guarantee and provide the
necessary financial support needed for GHG emissions released by the
supposed landfill and fossil fuel combustion.
Technological – there are no suppliers of equipment/technology and
know-how of these features in Pinghu. LFG recovery and utilization
technology has not been applied to dumpsites/landfills in medium size
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Project idea note
Pinghu Municipal solid waste incineration project. China
cities in Pinghu.
Not common practice – common practice in China for solid waste
treatment is land filling which emitting a lot of CH4, the methane
recovery techniques in China is very inefficient.
Which politics, strategies, laws etc. affects the project activities?
Global benefits
Local benefits
There is no legislation in China for landfill gas emission control. Most
landfill plant in China burn the gas only for safety purposes.
Nevertheless, this is not a common practice; The efficient flaring of
landfill gas, active collection/extraction and generation of electricity
or thermal energy are not common practice. And It is unlikely that
legislation can be expected in the coming decade to enforce efficient
LFG flaring.
Landfill gas has two primary constituents’ methane (CH4) and carbon
dioxide (CO2) which are GHG; however, methane is a gas with a
Global Warming Potential (GWP) of 23 times higher than carbon
dioxide. The proposed project activity will total reduce the GHG
emissions by transforming CH4 into CO2, thus lowering the GWP of
the landfill business as usual operations.
Local Benefits:
 Technical
 Recovery of solid waste
 Self-Generation of Energy – Long-Term Supply
 Environmental
 Improvement of air quality on site and surroundings
 Control of Emissions GHG and leakage
 Energy Source
 Renewable and sustainable source of energy
 Low-cost source and long term supply
 Self-sufficiency
 Community
 Responsible planning and utilization of resources
 Generation of short, medium and long term employment
especially for female employees
 Long-term sustainability of final disposition of municipal
solid waste
 Safe site for final disposition
Control of emissions, odors and local pollutants: The project avoids
the emissions that contribute to local air pollution that may reasonably
be anticipated to endanger public health or welfare. It is known that
some Non-methane Organic Compounds (NMOC) – from Landfill
Gas – is or suspected carcinogens, or cause other no cancer health
effects.
Socio-economic aspects
The waste directly incineration project for GHG reduction purpose
(What social and economic
will greatly enhance local economy:
effects can be attributed to the
 First, the selling of CERs could provide the necessary
project and which would not have
financial support for waste treatment.
occurred in a comparable
 Second, land resource cost for waste landfill could be
situation without that project?)
avoided.
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Project idea note
Pinghu Municipal solid waste incineration project. China

Third, the output electric and heat stream could greatly
reduce the local chemical plant production cost.
What are the direct effects?
(e.g., employment creation,
poverty alleviation, foreign
exchange savings)
If the project is approved, about 150 long-term works and 50
short-term works will be created, including 100 job opportunities for
female.
What are other effects?
(e.g., training/education
associated with the introduction
of new processes, technologies
and products and/or the effects of
a project on other industries)
This
project will benefit the environmental and community and
therefore no meaningful impacts are expected.
During construction phase, minor environmental impacts are going
to be shaped;
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Project idea note
Pinghu Municipal solid waste incineration project. China
C. Finance
Project costs
Preparation costs
US$ 1 million
Establishment costs
US$ 28.9 million
Other costs (explain)
US$ 0 million
Total project costs
US$ 29.9 million
Sources of finance to be sought or already identified
Equity (Name of the
organizations and US$ million)
US$ 6.9 million(the project sponsor)
Debt – Long-term (Name of the
organizations and US$ million)
US$ 17.0million
Debt – Short term
(Name of the organizations and
US$ million)
US$ 1.0 million
Not identified (US$ million)
US$ 5.0 million
Contribution sought from the
BioCarbon Fund
(US$ million)
0
BioCarbon Fund contribution (US$ million and a brief clarification of the reasons)
sought in upfront payment (The
quantum of advance payment will
depend on the assessed risk of
the project by the World Bank,
and will not exceed 25% of the
total ER value purchased by the
World Bank for the project. Any
upfront
payment
will
be
discounted by a factor considered
appropriate by the World Bank for
the project.)
Sources of carbon finance
(Has this project been submitted
to other carbon buyers? If so, say
which ones)
Indicative CER / ERU / RMU /
VER price (subject to negotiation
and financial due diligence)
$ 8 / ton CO2
Emission Reductions Value
(= price per tCO2e * number of
tCO2e)
US$: 8 x 161873.85 ton CO2eq/year = 1294990.8/year
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Project idea note
Pinghu Municipal solid waste incineration project. China
Until 2028
US$: 25899816
For 7 years
US$: 9064935.6
For 10 years
US$: 12949908
Financial analysis
(If available for the proposed
CDM / JI activity, provide the
forecast financial internal rate of
return (FIRR) for the project with
and without the CER / ERU /
RMU / VER revenues. Provide
the financial rate of return at the
expected CER / ERU / RMU /
VER price above and
US$3/tCO2e.)
FIRR without carbon:
FIRR with carbon:
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