PROJECT IDEA NOTE
A.
Project description, type ,location and schedule
Name of the project: The landfill treatment of living waste in luliang city
Technical summary of the project
Date submitted: 200512-31
The project will help the LuLiang city to treat the living wastes by
Objective of the project
flaring the landfill gas containing CH4 and to reduce GHG
emissions. 。
Project description and proposed The project was approved by Luliang government in luliang ,shanxi
province in 2004,and began to be designed in 2005 and is prepared
activities(including a technical
to be carried out after spring festival of 2006. It is planed to be
description of the project )
finished in the end of 2006.
The project was planned to deal with 230 tons city wastes/d or 80,000
t/a. By flaring of the gas, CH4 in the gas will be converted into
CO2, which will reduce the GHG emission.
Technology to be employed
Project developer
Name of the project developer
Organizationa category
Other functions of the project
Developer in the project
Summary of the relevant
experience of the project developer
Address
Contact person
Telephone /Fax
E-mail and web address, if any
Project sponsor
The name of the project sponsor
Organization category
Address (include web address,if
Any)
Main activities
Summary of the financial
Type of the project
Greenhouse gas targeted
Type of the activities
Field of the activities
a. Energy supply *
Location of the project
Region
The airtight structure is used in the landfill cite, which will reasonably
collect and flare the gas.
Shanxi Air CDM Technical Center
e. Non-government
c.Intermediary
d.Technical advisor
Shanxi Air CDM Technical Center(SACTC) is a non-enterprise
institution which mainly engaged in the consulting and technical
service of CDM mainly related to coal energy.
Feng Zheng, the director of the SACTC has a long time
diplomatic experience in science and technology, having attended the
countermeasure work with global climate change and got a deep
understanding to CDM, which favours the development of the CDM
project.
50 Tao Yuan North Road,5th floor, Taiyuan,Shanxi 030002 P.R.
China
The director of SATCC ; Feng Zheng
TEL;86-351-4052395/FAX：86-351-3332989
E-mail：seikou.china@126.com
The landfill site in luliang city
State-owned enterprise
Huojiashan village ,Lishi district, luliang city, Shanxi province,P.R.C
The landfill of city waste
Financial registration:8,000,000
（registrant on the 21st July 2005）
CH4/CO2
Emission reduction
Landfill
East Asia & Pacific
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Country
City
Brief description of the location of
the project
Expected schedule
Earliest project start date
Estimate of time required before
becoming operational after
approval of the PIN
Expected first year of CER
delivery
Project lifetime
Current status or phrase of the
Project
Current status of the acceptance of
the Host Country
The position of the Host Country
With regard to the Kyoto
protocol
China
Luliang city, Shanxi province
The project activity is located at Hejiashan village ,Lishi district,
Luliang city, Shanxi, China
Plan to be run by the end of 2006
Time for financing:6 month
Time for law procedure;6 month
The time for commercial negotiation; 5month
The time for building:12month
2007
16years (the period of land filling), 25years(the period of gas
production)
The feasible study and design has been completed and it is ready to
purchase the equipment. The construction has been started.
The preliminary screening of the project and the edit of the PIN and
PDD documents are going on.
Applying to the approval documents of the Host Country
a.
Signed or acceded to the Kyoto Protocol
B. Expected environmental and social benefits
Estimate of Greenhouse Gases
Abated /CO2sequestered(in
metric tons of CO2-equivalent)
Baseline scenario
Specific global& local
envirommental benefits
Which guidelines will be applied?
Local benefits
Annual: up to 2012(including 2012): 14,563.5 t CO2
Up to a period of 10 years: 145,635 t CO2
Up to a period of 7 years: 101,944.5 t CO2
Up to a period of 14years: 203,889 t CO2
Which GHG emissions was replaced by CDM and JI?
The proposed project will convert the CH4 produced from the
Landfill into CO2 by flaring, which greatly reduce the GHG.
What would be in the future if without the CDM/JI?
Now, the landfill sites in Shanxi province generally use natural
filling technology without gas collection and flaring, thus, the gas
including CH4 produced is emitted into the air, leading to high
GHG emission. This would be the baseline scenario, which occurs if
without the CDM project.
Expected amount of the GHG reduction?
The landfill site with 230 tons waste a day will produce 1.9 ton CH4,
which equals to 39.9 ton CO2/d or totally 14563.5
t CO2-eq/a.
The target of CDM project is consist with the development strategy
and policy in China and the project activity is suggested in ten and
eleven 5 year plan by national and provincial government.
The project activity will reduce not only 14563.5tco2-eq/a of GHG
but also a considerable amount of CH4, which will greatly
improve the local environment. The project will bring the benefits
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as follows: increase the
income of the enterprise, strengthen the sustainable development,
reduce environment pollution ,rise job opportunities ,promote the
technology skills etc.
Global benefits
The performance of the project proposed can reduce GHG
emission with lower cost because its low cost in Shanxi, being
beneficial of the action to mitigate the global warming. During the
performance, enterprise will accelerate its pace to be merged in the
world.
The project will reduce 14563.5tCO2-eq/a of GHG emission.
Socio-ecomomic aspects
What social and economic effects The project will bring the benefits as follows: to increase the income
can be attributed to the project and of the enterprise, strengthen its ability of sustainable development,
which would not have occurred in reduce environment pollution, create employment and promote the
a comparable situation without that use of advanced technologies.
project?
Which guidelines will be applied? The major relevant environmental protection laws, regulation,
standards as follows were applied:
1．Design Regulation of environmental protection of construction
project (The State Environment Protection Bureau, Document 002,
1987)
2．Management Regulation of environmental protection of
construction project (The State Council, Document 253, 1998)
3．Prevention and control regulation of air pollution (April 29, 2000)
4．Prevention and control regulation of water pollution (May
15,1996)
5．Standars for comprehensive air pollutant discharge (GB
16297-1996)
What are the possible direct
effects(e.g.,employment
creation,capital required ,foreign
exchange effects)
What are the possible other
effects?
Environmental
strategy/priotities of the Host
Country
The project is expected to provide about 30 job opportunities.
Reduction of the financial risk in performing the treatment of the
landfill gas with flaring for the Luliang municipal government during
carrying out the project makes the performance of the project to be
determined by the policy-making body of Luliang municipal
leadership..
Other benefits from the project;
1.Due to the improvement of the environment, the living condition
will be improved.
2. It is beneficial of the improvement of enterprise management and
the severe training of the staff due to the scientific controlling and
monitoring works in performing the CDM project.
3.The most common ways used in the treatment of landfill gas in
Shanxi province are the natural landfill without gas collecting and
flaring, leading to high GHG emission. The project will also set an
example for other ones taking the same way to deal with the gas,
which will promote the sustainable development in Shanxi province.
The project is expected to provide about 200 job opportunities.
Reduction of the financial risk in performing COG technology for the
Jinyang Group Company during carrying out the project makes the
performance of the project to be determined by the policy-making
body of Jinyang Group.
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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
CDM contribution sought
CDM contribution in advance
payments.
Sources of carbon finance
0.1250US$million
2.6660US$million
2.1840US$million
4.9750US$million
3.62million US$
Goverment invest：3.62million US$
The name of the organization and quantity of Equity (million US$)
1.355 million US$)
0 million US$
0 (US$million)， and brief clarification
Name of carbon financiers other than PCF that your are contacting (if
any)
8US$/CO2t
Indicative CER Price（subject to
negotiation and financial due
diligence）
Total Emission Reduction
Purchase Agreement（ERPA）
699,048US$
A period until 2012（end of the first
budget period）
A period of 10 years
1,165,080US$
A period of 7 years
815,556US$
1,631,112US$
A period of 14 years（2*7）
If finacial analysis is available for The financial analysis for the proposed CDM project activity is
the proposed CDM
going on.
activity ,provide the forecast
financial internal tate 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
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