Evaluation of opportunities for private sector investment in CDM projects in Thailand

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Evaluation of opportunities for private sector
investment in CDM projects in Thailand
Montien Hotel Bangkok, 13 December 2006
Pierre Cazelles Centre for Energy Environment
Resources Development (CEERD)
A project co-financed by the Small Projects
Facility
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Outline

• Overview
• Most promising project-based CDM opportunities
• Biogas
• Biomass for fuel switching
• Biomass for power generation
• Biofuels
• Programmatic CDM
• Conclusion

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Overview

• Eligible CDM activities
• Projects that emit less CO2 than conventional
  projects
• Energy efficiency
• Renewable energy sources
• Industrial process improvement
• Transportation fuels
• DSM
• Projects that reduce emissions of methane
• Biogas production from industrial wastewater,
  animal farms and landfills

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Overview

• Two types of CDM activities
• Project-based CDM
• The CDM activity is clearly located at 1 or few
  sites
• Usually implemented by private sector investors
• Programmatic CDM
• The CDM activity cannot be located at specific
  sites
• The CDM activity is defined as a program
• Usually not implemented by private sector
  investors
• Rules not defined yet
• No approved baseline methodologies (each program
  is different)

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Project-based CDM activities

• Most promising opportunities for project-based
  CDM activities are in
• Biogas systems in industrial wastewater
• Biomass for fuel switching
• Biomass for power generation
• Biofuels

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Biogas

• Biogas yield depends on COD content and volume of
  wastewater
• Most promising opportunities in
• tapioca starch factories
• CPO mills
• ethanol plants
• distilleries
• food beverage
• Other opportunities exist in biogas from MSW

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Biogas Rule of Thumb
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Biomass for fuel switching

• CO2 emission of biomass 0
• Use of biomass to replace HFO in boilers
• Use of biomass for cogeneration
• Constraint biomass residues availability
• Opportunities in energy-intensive factories

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Biomass Rule of Thumb
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Biomass for power generation

• Use of biomass residues for power generation
  (selling to the grid)
• Displace electricity from the grid
• Emission of the grid 0.5 tCO2/MWh
• Constraint biomass residues availability and
  transportation
• 1.3 t biomass / MW / h

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Biomass power generation Rule of Thumb
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Biofuels

• Bioethanol and biodiesel
• No approved methodology yet except
• Production of ethanol from cassava
• Production of biodiesel from used cooking oil
• Biodiesel methodology extremely difficult
• If biofuel exported to Annex 1 country, no CERs
• Constraint
• CPO availability for biodiesel
• Price of biofuels and feedstock fluctuates

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Biofuels Rule of Thumb
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Programmatic CDM

• For CDM activities where emission reductions
  cannot be precisely located in advance
• E.g. incentive program to promote higher
  efficiency motors
• The CDM activity is defined as a program
• Problem
• Definition of the baseline scenario and related
  emissions
• Monitoring of the emission reductions
• Few programmatic CDM activities registered to
  date
• No approved baseline methodologies
• Rules not defined yet

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Conclusion

• Promising areas for private sector investment in
  CDM projects are
• Biogas from industrial wastewater CPO mills,
  tapioca starch factories, ethanol plants,
  distilleries mainly
• Biogas from MSW
• Biomass for power generation and cogeneration
  rice husk, EFB, bagasse, corn cob, wood chip
• Production of biodiesel and ethanol
• Some opportunities exist in
• Process improvement in cement factories
• Landfill gas

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Thank you Pierre Cazelles CEERD Email
p.cazelles_at_ceerd.net Tel [phone]