CDMs in Durban South Africa: Dr' Michael Sutcliffe City Manager

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CDMs in Durban (South Africa)Dr. Michael
Sutcliffe (City Manager)
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DURBAN In A Nutshell . . . . .
ETHEKWINI
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Durbans Landfill gas-to-electricity CDM Project
Africas first CDM
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Landfill gas-to-electricity CDM Project La Mercy
Landfill Site 0.5 MW
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LA MERCY LANDFILL
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Landfill gas-to-electricity CDM Project
Mariannhill Landfill Site 1 MW (700000 CERs)
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MARIANNHILL LANDFILL

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Landfill gas-to-electricity CDM Project Bisasar
Road Landfill Site 6 MW (3.1 million CERs)
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BISASAR ROAD LANDFILL
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Calculated Emission Reductions (in tons)
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Landfill gas-to-electricity CDM Project (contd)

• Durbans Landfill sites generate a total of 5
  MW of electric power, 24 Hours a day for more
  than 90 of the year.
• This is 39 million units (kWhs) of electricity
  which saves the City R9.8 million pa.
• Reduction of 7.6 million tons of CO2 eq.- 3.8
  million tons committed via ERPA with World Banks
  PCF fund over 21 years.

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Project Review

• The capital and operating expenditures of the
  project are supported by two revenue streams
• Sale of Carbon Credits
• Sale of Electricity
• Without the sale of carbon credits, the project
  would not be financially viable.

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The CDM Project Process

• PIN
• PCN
• Conditional Approval from DNA (DME)
• Base-Line Study
• Validation Report
• MP (Monitoring Plan)
• PDD (Project Design Document)
• Comment from Public and Stakeholders
• EIA Process and obtain ROD for Project
• Verification of Project
• Final DNA Approval
• Project Registration with CDM Exec Board

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LFG-to-Elec CDM Project Time Frames

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LFG-to-Elec CDM Project Time Frame Cont

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THE TEAM

• In House Project Management
• Legal Imbemu Environmental Legal Services
• Gas Specialist SLR Ltd ( UK )
• Civil Consultants Wilson Pass Inc.
• PCF World Bank
• DTI DME
• French Development Bank
• EIA Felehetsa / WSP Environmental
• External Verifiers
• CER Purchaser

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ADMINISTRATIVE CHALLENGES

• Municipal legislation and Supply Chain dont
  allow for out of ordinary processes
• Environmental Impact Process problematic
• Registration by UNFCCC Ex Board long, tedious
  pedantic
• Inconsistent decisions by Ex Board
• No direct access to Ex Board
• Monitoring Onerous, expensive
• Language is often a barrier
• Drawn out process
• Whole process is costly

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TECHNICAL CHALLENGES

• Lack of Expertise Resources
• Etreme weather conditions
• Excess leachate poorly run site
• Manufacturers supplying incorrect equipment
• Lack of sharing information
• Lack of Experience / Technical Ability

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110mm Rain
In one half hours
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• LA MERCY LANDFILL

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OPERATING CHALLENGES

• Service Suppliers lack of Expertise
• Cost of Spares oil
• Cost of Services
• Availability of Spares
• Need good Quality Assurance
• Monitoring correct procedures
• Logging of raw data interpretation

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LEASONS LEARNED

• Be weary of Experts
• Easier to deal with Technical challenges than
  Political Administrative issues
• Running of Landfill is as important as the
  Extraction Process
• Carry out a pre Verification Inspection, saves a
  lot of stress at verification

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Concluding Comments

• Landfill gas offers a viable renewable energy
  source only when linked to Carbon
  Finance or CDM (R0.35R0.45/kWh)
• VERs may be more viable than CERs due to over
  the top requirements of UNFCCC Ex. Board
• The EIA process has over-ripened this fruit
  lost two years
• Lack of Technical Skills is restricting
  expansion in Africa
• Implementation of proven technologies is a must
• Distance from Europe is detrimental to fast
  reaction
• Exchange rate has a dramatic influence on cash
  flow