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

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Durban's Landfill gas-to-electricity CDM Project: Africa's first CDM ... Commissioning of Mariannhill & La Mercy Flares & Gens. Initial Verification of Component 1 ... – PowerPoint PPT presentation

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


1
CDMs in Durban (South Africa)Dr. Michael
Sutcliffe (City Manager)
2
DURBAN In A Nutshell . . . . .
ETHEKWINI
3
Durbans Landfill gas-to-electricity CDM Project
Africas first CDM
4
Landfill gas-to-electricity CDM Project La Mercy
Landfill Site 0.5 MW
5
LA MERCY LANDFILL
6
Landfill gas-to-electricity CDM Project
Mariannhill Landfill Site 1 MW (700000 CERs)
7
MARIANNHILL LANDFILL

8
Landfill gas-to-electricity CDM Project Bisasar
Road Landfill Site 6 MW (3.1 million CERs)
9
BISASAR ROAD LANDFILL
10
Calculated Emission Reductions (in tons)
11
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.

12
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.

13
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

14
LFG-to-Elec CDM Project Time Frames

15
LFG-to-Elec CDM Project Time Frame Cont

16
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

17
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

18
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

19
110mm Rain
In one half hours
20
  • LA MERCY LANDFILL

21
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

22
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

23
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
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