HUNAN CDM PROJECT SERVICE CENTER
——Hengyang Jixing Municipality Landfill Gas Collection
and Utilization Project
PROJECT IDEA NOTE
(NO.2005-001)
A. Project description, type, location and schedule
Name of Project: Hengyang Jixing Municipality Landfill Gas Collection and Utilization Project
Date submitted: December,2005-12-12
Technical summary of the project
Objective of the project
The Objective of this project is to capture and utilize the landfill
gas generated on Hengyang Jixing landfill by flaring and generating
electricity.
The proposed project will reduce the emissions of greenhouse
gas, thereby generating the Certified Emission Reductions (CERs).
Project description and
Hengyang Jixing municipality Landfill is located at the district of
proposed activities
Jixing village ,Zhangmu Town, Hengyang County, Hengyang City,
Hunan Province in China. The first phase of the landfill was put into
running formally in July, 1997. The current capacity of the area used
for land filling waste is over 3,000,000 m3 and will expand to
14,000,000 m3 in subsequent phase. Up to 2004, the landfill
quantity of municipal waste is over 2,500,000 tons. Currently, it
disposes an average of 900 tons/day of municipal solid waste,
generated by 960,000 inhabitants in Hengyang city. Because of no
compulsory request that landfill gas has to be collected and utilized
in China, the most part of LFG of landfill emits into atmosphere
without limits.
For reducing the methane emission, draw up to perform a activity
named "Landfill Gas Recovery and Utilization Project “by Hengyang
Jixing Municipal Solid Wastes Synthetic Treatment Limited
Company , which mainly includes the following parts:
1.The construction of LFG collection system;
2. The construction of LFG torch combustion system (used for
reducing the part of LFG which exceeds the ability making use of it);
3. The construction of generating electricity system.
The Project will have an electricity component with maximum
installed reaching 6MW.
Technology to be employed
The collection system of LFG: Adopt the collection system in the
form of vertical well prevailing currently.
Pre-treatment and purification of LFG: Cool the LFG first, and
then purify it through numerator-screen filter.
The generating- electricity system: Adopt the combustion engine
generating-electricity system prevailing currently.
HUNAN CDM PROJECT SERVICE CENTER
——Hengyang Jixing Municipality Landfill Gas Collection
and Utilization Project
Project developer
Name of the project developer
Organizational category
Other function(s) of the project
developer in the project
Summary of the relevant
experience of the project
developer
Address
Hengyang Jixing Municipal Solid Wastes Synthetic Treatment
Company, Limited
Non-Governmental Organization
a. Sponsor
b. Operational Entity under the CDM
Hengyang Jixing Municipal Solid Wastes Synthetic Treatment
Limited Company is the one which centralizes scientific research,
design, produce, installation, adjusting to try, running and technical
consultation of the environmental protection facilities. It is mainly
engaged in municipal wastes collection, municipal wastes landfill's
construction and management, waste's treatment to make it
harmless (recycling and utilization), work on dangerous wastes and
the medical-treatment wastes disposal. This company is in the CDM
project application and running for the first time.
Plant Address: Jixing Village, Zhangmu Town, Hengyang County
Office Address: No. 36, People’s Road, Shigu District, Hengyang
City
PO Box: 421001
City: Hengyang, Hunan Province
Country: China
Li Xiaobing
0086-734-8257056/0086-734-8257056
hyhwc6046@sina.com
Contact person
Telephone / fax
E-mail and web address, if any
Project sponsors
(List and provide the following information for all project sponsors)
Name of the project sponsor
Hengyang Jixing Municipal Solid Wastes Synthetic Treatment
Company, Limited
Organizational category
Non-Governmental Organization
Address (include web address, if
Plant Address: Jixing Village, Zhangmu Town, Hengyang County
any)
Office Address: No. 36, People’s Road, Shigu District, Hengyang
City
PO Box: 421001
City: Hengyang, Hunan Province
Country: China
Main activities
The collection and utilization of Hengyang Jixing Municipality
Landfill Gas, which will involve investing in a gas collection system,
leachate drainage system, flaring equipment and a modular
electricity generation plant.
Summary of the financials
Type of the project
Greenhouse gases targeted
Type of activities
CH4
Abatement
HUNAN CDM PROJECT SERVICE CENTER
——Hengyang Jixing Municipality Landfill Gas Collection
and Utilization Project
Field of activities
d. Waste management
Wastes management
Collection and utilization of landfill methane
Location of the project
Region
East Asia & Pacific
Country
The People’s Republic of China
City
Hengyang City , Hunan Province
Brief description of the location of
Hengyang Jixing municipality Landfill is located at a valley in
the project
Jixing Village, Zhangmu Town, which has an open transportation
passage connected with 107 National Road and the highway cycle
line of Hengyang City.
Expected schedule
Earliest project start date
The plant will be operational in 2005
Estimate of time required before
Time required for financial commitments: 3 months
becoming operational after
Time required for legal matters: 3 months
approval of the PIN
Time required for negotiations: 2 months
Time required for construction: 5 months
Expected first year of verified
Emission Reduction or CER /
Year:2007
ERU delivery
Project lifetime
Number of years: 20 years
Current status or phase of the
The document of the feasibility study is available
project
Current status of the acceptance
Letter of no objection is available
of the Host Country
The position of the Host
Signed and ratified Kyoto Protocol
Country with regard to the
Kyoto Protocol
B. Expected environmental and social benefits
Estimate of Greenhouse Gases
Up to and including 2012: 1,037,947 tCO2-equivalent
abated / CO2 Sequestered (in
Up to a period of 7 years: 1,238,852 tCO2-equivalent
metric tons of CO2-equivalent)
Up to a period of 14 years: 2,863,099 tCO2-equivalent
Up to a period of 21 years: 5,222,822 tCO2-equivalent
Baseline scenario
In the proposed project, the methane gas will be extracted,
collected and transferred into carbon dioxide by combusting
(involved torch and combustion engine of generator). As the carbon
dioxide is the stable existence form of the carbon in the nature, so
this part of emission of carbon dioxides is zero. According to IPCC’
data, the approved Globe Warming Potential of methane is 21,
Thus, the proposed CDM project can realize the great reduction of
the greenhouse gas by decreasing the methane gas emission.
At the present time, the gas generated by the landfill is ventilated
to the atmosphere without any type of control. No limit has been set
HUNAN CDM PROJECT SERVICE CENTER
——Hengyang Jixing Municipality Landfill Gas Collection
and Utilization Project
for the emission of landfill gas by law and project in China. Because
of the economic barrier, the landfill gas collection and utilization
project will be difficult to be carried on without the support from the
CDM, and the methane gas will emit into atmosphere continually
from this landfill.
According to the Planning of Hengyang Jixing municipality
Landfill, the first phase of the landfill will keep on running until the
year of 2009, and the subsequent phase until 2035. The emission of
methane will decrease 49,426 tons, which is equivalent to
1,037,947 tons carbon dioxide by the end of 2012 through running
of Proposed CDM project. If the proposed project run for 20 years,
the mission of methane will decrease 217,985 tons, which is
equivalent to 4,577,695 tons carbon dioxide. In one word, the
methane emission can be decreased effectively by the proposed
CDM project.
Specific global & local
environmental benefits
Which guidelines will be applied?
Local benefits
Global benefits
Socio-economic aspects
What social and economic effects
can be attributed to the project
and which would not have
occurred in a comparable
situation without that project?
Indicate the communities and the
number of people that will benefit
from this project.
Environment Protection Law of People's Republic of China;
Cleaner Production Promotion Law of People's Republic of
China;
Renewable Energy Law of People's Republic of China;
Overall Planning of Urban Development of Hengyang (2003);
The Management Method of the Project of Clean Development
Mechanism (National Development and Reform Commission,
Department of Science and Technology，Department of Foreign
Affairs, Department of Finance);
The Bulletin about Organizing and Implementing the
Industrialization of High Technology of Renewable Energy and New
Energy (National Development and Reform Commission).
Decrease the emission of greenhouse gas, improve the level of
solid wastes treatment and disposal, reduce the gas pollution and
consumption quantity of fossil fuels by seeking substitutes to instate
of part of fossil fuels.
Reduce greenhouse gas emission
The proposed CDM project can make good use of the LFG to
generating electricity though collecting the LFG, which is the first
project in Hengyang City and can effectively push forward the
running of "The circulate economy" and promote the comprehensive
utilization of the wastes in Hengyang City.
The construction of this project will still lower the risk that the
LFG's explosion, reduce the ozone and control the emission of
volatile organic compound (about 10,000 residents benefited).
HUNAN CDM PROJECT SERVICE CENTER
——Hengyang Jixing Municipality Landfill Gas Collection
and Utilization Project
Which guidelines will be applied?
Technical Specification of Municipal Waste Sanitary Landfill
(CJJ17-2004);
Emission Standards for Odor Pollutants (GB14544-93);
Integrated Emission Standards of Air Pollutants (GB162971996);
Standard for Pollution Control on the Municipal Solid Waste
Landfill (GB16889—97);
Standard of Noise at Boundary of Industrial Enterprises
(GB12348-1990);
Technical Standard for Environmental Monitoring of Municipal
Waste Landfill site (CJ/T3037-95)
What are the possible direct
effects (e.g., employment
creation, capital required, foreign
exchange effects)?
What are the possible other
effects? For example:
Environmental strategy/
priorities of the Host Country
The construction and running of the CDM project will bring more
employments for the City of Hengyang
C. Finance
Total project cost estimate
Development costs
Installed costs
Other costs
Total project costs
Sources of finance to be
sought or already identified
Equity
Debt – Long-term
Debt - Short term
Not identified
Carbon finance contribution
sought
Carbon finance contribution in
advance payments. (The quantum
According to The Management Method of the Project of Clean
Development Mechanism, “collection and utilization of the methane
is the important field of the Clean Development Mechanism in
China”, thus, this project will gain the Chinese government's support
strongly.
Equipments: US$ 1.55 million, Infrastructions: US$ 0.67 million,
Office and living facilities: US$0.069 million, Sum total: US$2.29
million
US$ 0.11 million
US$ 0.06 million
US$ 2.46million (based on two generators)
Hengyang Jixing Municipal Solid Wastes Synthetic Treatment
Limited Company (in US$ 0.76 million)
China Construction Bank (in US$1.13 million)
Industrial and Commercial Bank of China (in US$ 0. 25 million)
US$ 0.33 million
US$ 0 million
US$ 0 million
HUNAN CDM PROJECT SERVICE CENTER
——Hengyang Jixing Municipality Landfill Gas Collection
and Utilization Project
of upfront payment will depend on
the assessed risk of the project by
the World Bank.)
Sources of carbon finance
Indicative CER/ERU or vER
Price (subject to negotiation )
Total Emission Reduction
Purchase Agreement (ERPA)
Value
A period until 2012 (end of the
first budget period)
A period of 10 years
A period of 7 years
If financial analysis is available for
the proposed CDM activity,
provide the forecast financial
internal rate of return for the
project with and without the CER
revenues. Provide the financial
rate of return at the expected
CER price above and US$3/
tCO2e. DO NOT assume any upfront payment from the PCF in the
financial analysis that includes
PCF revenue stream.
Please provide a spreadsheet to
support these calculations.
US$ 6/ tCO2e
US$ 7.27 million
US$ 13.22 million
US$ 8.67 million
NA