Lugansk Region Sustainable Development Program Lugansk Region Sustainable Development Program has been launched in 2008 and implemented jointly by UNDP in Ukraine and Lugansk Regional State Administration. The aim of this project is to render support to the Government of Ukraine as for how effectively apply the principles and practices of sustainable development at the regional level in order to improve socioeconomic and environmental situation in most vulnerable regions of Ukraine. This process has been organized and developed through close cooperation of public and private sectors and using the environment protection international financial mechanisms. The Project activities include three following components: 1. Support for Lugansk region transport infrastructure development; 2. Overcoming of barriers impeding utilization of coalfields’ methane in the Luhansk region using Kyoto Protocol Joint Implementation Mechanism; 3. Overcoming of barriers in rearrangement of landfills and landfill gas/methane recovery using Kyoto Protocol Joint Implementation Mechanism. Relevant scope of works and list of actions required to attain the Project’s objectives for each component have been duly identified. Component 1 In 2008, in order to support the development of Luhansk region transport infrastructure, a feasibility study covering Luhansk Region Transport Infrastructure Optimization and Development Program using Kyoto Protocol Joint Implementation Mechanism have been undertaken. The study included the following: - Lugansk region transport infrastructure analysis and identification of its problems in terms of economics and environment. - Analysis of greenhouse gas emissions, CO2 in particular, by motor vehicles in Luhansk region in correlation with the dynamics of transportation development. Lugansk Region Sustainable Development Program - Recommendations to optimized model of carriage of goods by road and passenger traffic for Lugansk region including potential development of the road network, changes to the means of transport and traffic control. - Offered options for reduction of greenhouse gas emissions by using vehicles holding greater number of passengers and/or having enhanced energy-efficiency. Provided promising models and ways for transactions and purchases. - Offered the program that removes economic and information barriers to sustainable development of Lugansk region transport infrastructure. - Developed a campaign plan, for the local authorities and local communities, covering the need for sustainable development of transport infrastructure. Based on results of economic analysis of Luhansk region transport infrastructure, the following has been defined: - In 2007, the regional transportation companies shipped 56.3 million tons of cargo exceeding thereby this indicator by 9.9% vs. 2006. Cargo turnover has increased by 19.8% and amounted to 4.7304 billion ton/km; - In 2007, public transport covered 446.7 million of passengers, which is by 8.7% more compared to 2006. However, during this period the passenger carriage rate has dropped to 4973.5 million passengers/km, which is by 8.3% less compared to 2006; - Motorized transport releases nearly 18.1% of pollutant of total emissions by business entities’ stationary sources and motorized vehicles, whereat gross emission of carbon dioxide by all types of business entities’ vehicles equals approximately to 60% of carbon dioxide emissions by stationary sources; - Due to poor condition of vicinal roads there is a high concentration of traffic on main highways. Considering 15% annual traffic growth, road surface operational period is reduced from 12 down to 7 years inclusive of 3-year maintenance period for top dressing; - The highest density of traffic is concentrated in the regional centre - 29% of total number of vehicles in the region; Lugansk Region Sustainable Development Program - In the region the vehicles condition is characterized by a high level of wear and tear; - Density of emissions per 1 square km by motorized vehicles within the region equals ca. 4.5 tons. Increased emission densities have been observed in the following cities: Lugansk, Krasnodon, Krasny Luch, Severodonetsk and Alchevsk. In Ukraine, Lugansk region ranks No. 3 by the gross volume of industrial emissions into the atmosphere following Donetsk and Dnipropetrovsk regions. Emission density per 1 sq. km exceeds nearly 5-fold the national average level; - Decrease of pollutant emissions by motor vehicles may be attained by creating of pertinent base for fast, easy and safe transport connection between all functional sections of the region through the extention of the road network; repair and reconstruction of the existing road system; facilitating renewal of fixed production assets of all types of transportation vehicles by replacing the obsolete models with the up-to-date models of buses having greater seating capacity; - To carry 110 passengers at 100 km by new high capacity buses, almost 3 times less amount of fuel is required compared to carriage of the same number of passengers by new buses of lower capacity. Fuel consumption can be reduced at least twice by replacing the old buses with the new ones with higher capacity. In 2010, due to the local authorities’ refusal to accept co-financing, the resolution of the transport issue has been suspended. Component 2 Pertaining to coalfield methane recovery/utilization, the following activities have been undertaken: In order to analyze the situation relating to recovery/utilization of coalmine methane at Luhansk region coalfields, a relevant Feasibility Study (for Luhansk Region Coalmine Methane Recovery Program) using applicable Kyoto Protocol Mechanisms have been performed. To achieve this objective, the following steps have been made: Lugansk Region Sustainable Development Program - The situational analysis covering the of coalmine methane and recovery thereof in Ukraine and Lugansk region for the period of 5 years, as well as analysis of modern technologies of coalbed methane utilization at the global market have been made; - Relevant possibilities enabling reduction of emissions for different types of mines within Luhansk region have been developed and substantiated; - Eco-friendly technologies for recovery/utilization of coalbed methane and reduction of coalmine methane emissions have been recommended for the region; - An analysis of the legal framework covering coalbed methane utilization have been made; - The necessity for legislative and legal changes to support the use of methane in Ukraine has been identified. "Hrustalskaya" mine have been selected for the pilot project; its economic and environmental setting have been specified; methane utilization technical model including pertinent list of equipment have been provided. The options for coalbed methane recovery/utilization for energy needs of neighboring areas, socioeconomic and environmental confirmation of project have been proposed; the project strategy has been developed. The mutual understanding plan, for the local authorities and the public, covering coalmine methane recovery/utilization, including the options for its ecological and socioeconomic potentials application, has also been developed. In 2010, we developed a business plan for Hrustalskaya Mine Coalmine Methane Recovery Project. This project provides for generation of electric power and heat using coalbed methane which is currently released into the atmosphere at the Hrustalskaya and Almaznaya minefields. Thus, generated thermal energy will be consumed by Hrustalskaya mine and electrical power will be consumed by Almaznaya mine, residual power will be sold to Ukraine’s integrated power Lugansk Region Sustainable Development Program system. This project will reduce greenhouse gas emissions. Greenhouse gas Emission Reduction Units (ERUs), will also be sold. It is assumed that Kyoto Protocol will remain in full force and effect, and the emission reduction units will be sold up until 2020. Annually, it is planned to receive electric power supply in the amount equal to 12000 GW, thermal energy supply - 47.2 GW. Annual reductions of greenhouse gas emissions (coalmine methane) into the atmosphere are planned to be at 61 000 tons CO2e. Equipment and technologies provided for by the business plan are currently the most widely used for such activities. The Project total cost amounts to 3900 thousand USD. The Project duration is nine years. Component 3 Environmental contamination with solid domestic wastes (SDW) is one of the most crucial environmental problems in Ukraine. At present there are ca. 1000 of municipal solid waste (MSW) landfills across the country, most of which have been put into operation with violation of sanitary and technical standards more than 30 years ago. Lugansk region has 29 solid waste landfills that relate to the regional centre and regional cities, as well as about 160 rural landfills. The total area occupied by landfills equals ca. 450 hectares. In case of unavailability of gas gathering system at the landfills, biogas generated by breakdown of wastes gets into the air, contaminating thereof by harmful to human, animals and plants substances. If airborne biogas concentration exceeds 15%, it is liable to spontaneous combustion and explosion. Consequences of such explosions vary to a considerable extent, but all of them require recovery and remedial efforts. To prevent such events and ensure for the use of the biogas as an energy source, it is provided for the recovery, collection and utilization thereof from the existing solid waste landfills. Within the framework of Lugansk Region Sustainable Development Program, in association with Lugansk regional state administration and a private investor "Nedra Luhansk" LLC, for the first time in Ukraine and former CIS countries a unique project for "Collection And Recycling Of Methane Recovered From Lugansk Solid Waste Landfill, Ukraine" has been implemented. The project provides for installation of the landfill gas Lugansk Region Sustainable Development Program gathering and flare package system at Lugansk landfill located in the town of Aleksandrovsk, Luhansk region. Lugansk MSW landfill is located in Krutoy Jar flat-bottom valley, 2.5 km from Aleksandrovsk. This is the only place to dump the wastes from the cities of Lugansk and Aleksandrovsk as well as from the adjacent villages Ekaterinovka and Yubileynoye. The landfill falls within the jurisdiction of Lugansk City Council. In 2007, "Nedra Luhansk" LLC entered into an agreement with Lugansk City Council covering the first phase of the landfill project. In 2008, within the framework of Sustainable Luhansk Region Development Program, a bidding round for performance of the "Feasibility Study For Landfill Methane Recycling Program In Luhansk Region Under Kyoto Protocol Joint Implementation Mechanism" has been held. The objective of this work is to study consistent patterns of accumulation and distribution of biogas based on Lugansk landfill example. Thuswise, the following activities have been performed by the contractor "Nedra Luhanska" LLC: - Analysis of landfill methane in Ukraine and Lugansk region over the past 5 years, including geomorphological characteristics and long-term environmental anthropological effects of specified area; - Analysis of currently available technologies for recovery/utilization of landfill methane and application of such technologies on international market; - Recommended optimal technologies for recovery/utilization of landfill methane within Luhansk region, including technological process description; - Identified the site for disposal/recycling for the pilot project, including feasibility study and environmental impact; - Classification of solid waste landfill within a selected area and provision of recommendations relating to recycling technical model; - Offered options for recycling and biogas gathering system landfill for the selected site and adjacent areas; - socio-economic and environmental feasibility study for the project. Lugansk Region Sustainable Development Program The feasibility study has included two alternate options for landfill gas recovery/utilization: Option 1: Flaring of landfill gas, and Option 2: Recovery of landfill gas and generation of power therefrom. The Feasibility Study For Landfill Methane Recycling Program In Luhansk Region Under Kyoto Protocol Joint Implementation Mechanism has yielded the following results: - Today Ukraine accounts for up to 1,000 landfills, most of them have been organized more than 30 years ago and fail to comply neither with environmental, technical nor sanitary requirements; - Annual potential of biogas available for power generation at 90 major landfills equals to ca. 400 million m3, or 0.3 million tons of fuel oil equivalent. Regrettably this potential currently “lies idle”; - Design and installation of equipment intended for biogas gathering and utilization requires significant financial resources. The experience shows that it is economically feasible to recover biogas from the landfills having over 5 million tons of waste and the stack height thereof at least 10 m, where the necessity for biogas is pressing; - To recover the landfill gas, the following arrangement is typically applied: a network of vertical drain wells are connected by the pipeline system wherein the compressor system builds up negative pressure necessary to pump up the landfill gas over to the point of use; - The following methods of landfill gas utilization are applied: flaring; direct combustion of landfill gas for heat generation; use of landfill gas as a fuel for gas engines to produce electricity and heat; use of landfill gas as a fuel for gas turbines to produce electricity and heat; increase of methane content (gas enrichment) up to 94-95% for its further use in the general purpose gas networks; - For the landfill gas recovery purposes, only solid waste landfill bodies with the stack height no less than 10m are suitable; - in the region - 21 landfill sites are used for solid waste disposal in the ground. These are the landfill sites where at least sometimes relevant engineering works for waste disposal Lugansk Region Sustainable Development Program are performed. The total area occupied by aforesaid sites amounts approximately to 163 hectares. - Lugansk landfill is the largest solid waste landfill in Lugansk region; - To recover biogas from Lugansk landfill, it is required to drill 30 wells from 10 to 25 m deep. It is estimated that efficiency of recovery and utilization of landfill gas will be 75%; - Implementation of Lugansk Landfill Methane Utilization Project will provide for annual reduction of approximately 50 thousand tons of CO2e emissions. This work had been highly appreciated by UNDP Bratislava office which, jointly with UNDP Ukraine, as a result of joint careful selection, have chosen the Fortis Bank for provision of carbon finance services including the purchase, management and further sales on the carbon credits market; which, in turn, has also been instrumental to the signature of Memorandum of Understanding by and between UNDP and Nedra Luhanshiny LLC and Letters of Exclusivity by and between Nedra Luhanshiny LLC and Fortis Bank. The interest of UNDP Bratislava office has also contributed to the working visit to the Czech Republic for the purpose of studying international experience of solid waste management. Representatives of Nedra Luhanshiny LLC, local authorities and the project management have also participated in the visit. Considering the fact that most of landfill methane in the region is released by Lugansk landfill; based on previous analysis, UNDP has held a bidding round "Technical And Economic Evaluation Of Lugansk Landfill Biogas Utilization" that enabled us to collect information required to implement the next phase of the project - development of working documentation. During the development of working documentation contractor has performed the following activities: - Gathering of information required for detailed design, including the location of the landfill, its construction project, the waste composition, waste disposal management, composition and amount of emitted biogas Lugansk Region Sustainable Development Program - Performed topographic survey. Georeferencing of the existing landfill site to the project site. - Conducted the following engineering studies: geophysical, geological studies and gaschemical studies. Specified composition and waste storage structure. Defined the emitted biogas debit and its composition. - Identified the needs for water, heat, electricity, gas supply; sewerage system, exterior lighting, drainage system, telephone system, dispatch system, fire safety, as well as for the special conditions. Acquisition of necessary specifications. The detailed project provides for technical and biological remediation of the landfill. Technical remediation of the existing landfill after its closure includes the following phases: stabilization, slope and ridge flattening, installation of degassing system, establishment of recultivating multifunctional protective coating and further hand-over of the site for biological remediation. The technical remediation is followed by biological remediation - planting of shrubby culture. The detailed project provides for recovery and disposal of bio-gas commencing from the first development stage of Lugansk landfill, as well as construction of gas gathering network of recovery wells to the gas gathering stations and the main pipeline to the flare unit. In 2009, within the framework of the project the tender "Determination of most economically efficient landfill gas use method at the first phase of Lugansk landfill through the mechanisms of the Kyoto Protocol". Hence, the following tasks had been performed: - Analysed pertinent international practices and existing technologies for the landfill gas use; - Analysed existing conditions and identified opportunities for the implementation of such practices and technologies at Lugansk landfill; Lugansk Region Sustainable Development Program - Factors influencing the environmental and economic efficiency of landfill gas utilization and specifications thereof relating to waste methane utilization commencing from the first phase of Lugansk landfill have been Identified; - The comparative analysis of available technologies and selection of the most efficient ones based upon environmental factors; - The comparative analysis of available technologies and selection of the most efficient one based upon economic factors; - Identification and substantiation of most suitable method of landfill methane utilization from the standpoint of economics based upon Lugansk landfill conditions. In the course of performance of works relevant experts have been involved to conduct geological and engineering studies at Lugansk landfill, as well as national experts on utilization of landfill gas. In 2009, the State Environmental Investment Agency of Ukraine has provided a letter of support to the Project. The Project has received all necessary permits for the landfill construction and operation. Recultivation of the first phase of Lugansk landfill has been funded by Lugansk municipal authorities. To increase the efficiency of biogas recovery and to mitigate the environmental contamination – the protective screen consisting of stabilized polyethylene film and a 3-meter layer of loam (soil with clay) have been used. Lugansk Region Sustainable Development Program This has caused a number of difficulties as long as Ukrainian National Building Code provides for installation of protective screen 3 meters high to cover the entire area of the landfill. Covering of entire landfill’s area with such a thick layer of clay requires enormous financial costs related to mining, transportation and stockpiling of loam in such quantities. To recover biogas from the landfill, on "Nedra Luhansk" LLC request, 30 wells (size: 200mm, depth: 14 – 34 meters) have been drilled and thereafter cased with perforated pipe (size: 110mm, wall thickness: 6.3 mm). The bottomhole has been filled with 40 - 70 mm chipstone 0.5 m high. The annular space all the way down the wellhole has been filled with 20 ... 40 mm gravel. Gas-Gathering Network Layout Lugansk Region Sustainable Development Program The wellhead annular space has been filled with concrete to the depth of 1.2 m. Well collars have been protected against mechanical damage by precast concrete rings (size: 1 m, height: 1.5 m). Biogas is recovered from the degassing walls using vacuum pumps. In 2010 the Project Document was developed according to which the project shall reduce the emissions by an average of 18,336 tons of CO2e by gathering and flaring of gas. Emissions are expected to decrease by 124,750 tons CO2e in 10 years. ECONOMICAL AND ENVIRONMENTAL EFFECTS Year Anticipated Decrease Of Emissions Volumes,тCO2e Profits, USD 2010 11 604 162 456 2011 22 189 310 646 2012 21 216 297 024 Total (т CO2e) 55 009 770 126 Crediting (Number Average Anticipated Decrease Of Emissions Volumes for Profits , USD Of A Period Of Crediting (т CO2e) Years) 3 18 336 256 704 Year Anticipated Decrease Of Emissions Volumes,тCO2e Profits , USD Lugansk Region Sustainable Development Program 2013 20 288 284 032 2014 19 402 271 628 2015 18 556 259 784 2016 17 748 248 472 2017 16 977 237 678 2018 16 241 227 374 2019 15 538 217 532 Total (т CO2e) 124 750 Crediting (Number Of Years) 7 1 746 500 Average Anticipated Decrease Of Emissions Volumes for A Period Of Crediting (т CO2e) 17 821 Profits , USD 249 494 *Based on the cost of emission reduction units 1 ЕСВ – 14 USD/т СО2е, as per the project documentation Anticipated Decrease Of Emissions Volumes,тCO2e т СО2е 25 000 20 000 15 000 35010000000 300 000 5 000 250 000 200 000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Год 150 000 100 000 Profits , USD 50 000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Год Lugansk Region Sustainable Development Program Based on the cost of emission reduction units 1 ЕСВ – 14 USD/т СО2е, as per the project documentation Through joint efforts of the Ukrainian and Bratislava UNDP offices as well as Luhansk Regional State Administration, on 19 June 2009 the Greenhouse Gas Emission Reduction Purchase Agreements between Fortis Bank as a Purchaser and Nedra Lugansk LLC as a seller has been signed. The document of such nature has been signed for the first time in Ukraine and for the second time in Eastern Europe and CIS. UNDP and Nedra Luhansk LLC have also signed an agreement for provision of services for development of the project by MDG Carbon Facility, which is an innovative development program for the and commercialization of emission reduction projects. In order to provide information on the activities carried out during the project and to receive proposals from the public regarding potential impact of the project on the environment, in December 2009, owning to joint efforts of UNDP, Nedra Luhansk LLC, Lugansk Region Sustainable Development Program Lugansk regional administration and Lugansk city council the public hearings were held. The hearing have been attended by the representatives of UNDP, Lugansk and Alexandrovsk city councils, Lugansk and Alexandrovsk public members, local companies representatives. On 23-24 February 2010 Aenor (Spain) representatives visited Lugansk landfill to perform the determination process. The determination has been carried out on the basis of UNFCCC criteria as for the joint implementation. It nd confirmed that the project meets the above criteria and the developed Project Document provides for realistic assessment of emissions reduction under the project. Upon the review of the project documentation and approved methodology, the project was recommended for registration with UNFCCC Secretariat. Upon the receipt of the determination report and the Letter Of Approval, the National Environmental Investment Agency, in July 2010, has held a tender for purchase of flare package for the purpose of recovery and utilization of biogas that provides for safe and environmentally friendly flaring of gas. Based on detailed review of submitted proposals Biogas Technology LLC has been selected as a flare package vendor. In the spring of 2010, the flare package has been delivered and installed at Alexandrovsk’s landfill. The efficiency of this enclosed flare is 600 ncm/h-1 and it includes the following equipment: - Compressor system, - Combustion chamber, - Explosion-proof gas analyzer equipment - Monitoring system that meets the requirements of “joint implementation” provided for by the Article 6 of the Kyoto Protocol, - Control equipment for transfer of data across the Internet. Lugansk Region Sustainable Development Program The flare unit is equipped with automatic safety system that controls the flame, fuel feed, temperature, power, emergency electric circuits. Air is naturally drafted into combustion chamber. Lugansk Region Sustainable Development Program In order to connect the flare unit, a tender for "Connection of the flare unit to the Alexandrovsk Municipal Solid Waste Landfill (Lugansk region)". At the preparatory phase - information required for the development of the detailed design has been reviewed and applicable terms of references have been made. Thereafter, in the course of performance of works the following activities have been carried out: - Required technical specifications have been received from the Directorate General of the Ministry for Civil Defense, Emergency Management and Natural Disasters Response and the State Inspectorate for Energy Conservation; - Technical solutions relating to location of the flare unit, gas treatment system parameters, flare unit connection to power grids and other utilities have been made; - list, type of equipment and materials have been specified; - installation design for the unit connection have been made; - comprehensive state expert appraisal have been completed. In September 2011, the flare unit opening ceremony had taken place. The ceremony has been attended by Ricarda Rieger (Director of UNDP in Ukraine), Vladimir Pristyuk (Governor of Lugansk Regional Administration), Bliznyuk (Minister and of State Anatoliy Regional Development and Construction). This event has been highly praised by those present and widely covered in the media at the national and international level. Lugansk Region Sustainable Development Program Thereafter the landfill has been repeatedly visited government by officials the and international investors. Thus, in October 2012, the Ukraine’s Minister of Ecology and Natural Resources Eduard Stavitsky has made a working visit to the site, as well as the Head Of External Borders Task Group of the Association of European Border Regions Johannes Moisio. During these visits guests familiarized themselves with the recultivated section of Lugansk landfill and flare unit operation. Owning to successful implementation of the project for recovery and utilization of methane at the Lugansk landfill, it was decided to repeat this project in the Lugansk region. Taking into consideration the characteristics of area selected, as well as prior national and international experience in utilization of landfill gas sector, relevant recommendations on repetitive implementation of such projects for utilization of landfill methane in the Lugansk region were made. While preparing recommendations the following activities have been performed: - solid domestic waste landfills for landfill gas utilization project reparations in Luhansk region have been identified; - technologies for biogas recovery from solid waste landfills in order to repeat the Luhansk landfill gas utilization project have been identified; - technologies for utilization of biogas recovered from solid waste landfills in order to repeat the Luhansk landfill gas utilization project have been identified; Lugansk Region Sustainable Development Program In the course of performance of these activities – relevant national and international experience have been analyzed, including the existing utilization technologies; Luhansk region characteristic; data on existing landfills as well as the size and composition thereof; existing solid waste management. The release of biogas into the air is a problem that applies not only to our region, but to the whole world as well. While utilizing methane, the less dangerous greenhouse gas (carbon dioxide) is released. Environmental effect is planned to be achieved by the fact that as a result of recultivation, recovery and utilization of gas, it is planned to avoid periodic self-ignition caused by uncontrollably released landfill gas. Recovery of biogas from the landfill body and its further utilization provides for improvement of environmental conditions around the landfill contributing thereby to adherence to Ukraine's international obligations. Design and development of landfills: new construction, reconstruction, renewal, technical re-equipment and rehabilitation of landfills in Ukraine shall comply with the State Construction Code V.2.4.2-2005. These standards are mandatory for administrative and supervisory authorities, customers (investors), engineering companies, contractors, and other legal entities and individuals. Activates for recultivation of closed down landfills shall be commenced at the landfill operational stage; in particular, while grading and fixing the slopes, arranging drainage manifolds and gas drainage systems. These activities shall be carried out while the landfill is in operation and at the developed landfill’s sites. Operation of vast majority of the landfills is carried out with significant deviations from the approved projects causing thereby continuous increase of the negative impact on the environment, taking in some cases disastrous proportions. Lugansk Region Sustainable Development Program Therefore, in some cases, it is just impossible to recultivate such landfills upon the completion of operation thereof without application of specific custom design solutions. The State Environmental Expert Evaluation approvals for such landfills’ projects are deemed null and void due to failure to adhere to applicable conditions while operating such landfills. In order to improve landfills biogas recovery system, as well as to reduce the costs of future projects planned for 2012, we held a tender for development of National Standards (including Ukraine’s State Constriction Codes (SCC B.2.4-2-2005)) regulating rehabilitation of the existing and construction of new landfills in Ukraine in compliance with current environmental requirements of UNFCCC Secretariat. As a result, all recommendations, additions and amendments to the existing version of State Construction Code have been systematized and based thereupon a new version of Ukraine’s State Building Codes have been drafted. This Draft has been submitted to the Ministry of Regional Development, Construction, Housing and Communal Services of Ukraine and the Ministry of Ecology and Natural Resources of Ukraine. In course of implementation of Lugansk Sustainable Region Development Programme the investments have been attracted from: UNDP - 5 million USD, Ukraine’s State Budget - 46 million UAH, private investors - 2.4 million USD. The project has been highly praised by UNDP representatives, the Ministry of Housing Services And Utilities, Ministry of Ecology and Natural Resources, as well as by the public and local inhabitants. Implementation of such projects promotes the improvements in environmental and social spheres, and is instrumental to introduction of new and advanced technologies.