CDM Opportunities for Cogeneration Projects - Singapore ... · Energy Industry Summary Registered CDM Projects - Energy Industry Biogas, 67 Biomass, 152 Cogeneration, 77 Efficiency

©Winrock International

Prepared by ir Michel Buron-CONFIDENTIAL

By

ir M

ich

el B

uro

n

Oct

ob

er 2

006

CDM Opportunities for Cogeneration

Projects –

Singapore Perspective

Seminar “Energy Efficiency for Process Industry”

29thFebruary 2008, SEAS Singapore

Speaker: P.Krishnamurthy



Content

�Why Cogeneration?

�Why CDM?

�Baseline

�Project Scenario

�Methodology and Applicability

�Potential CER

�Additionality

�SD Criteria

�NG based cogen project in Singapore

�Status of CDM registered projects –

Energy Industries



Benefits

of C

OG

EN

?



Benefits

of C

OG

EN

?



Why CDM ?

�Natural gas based cogen projects are

potential CDM projects, since NG is a

cleaner fuel

�Renewable co-generations are

potential CDM projects, since these are

zero emission projects



Baseline

�Electricity Baseline: Power from the

grid

�Steam baseline: Baseline fuel is diesel



Project Scenario:Natural Gas Based Cogen

�The heat and power requirement of the project

activity is being met by a third party NG based cogen

facility

OR

�The heat and power requirement of the project

activity is being met by a self owned NG based cogen

facility but not supplying any excess power to grid

OR

�NG based new cogen facility developed to supply

electricity and/ or steam directly to two or more

grid/off-grid customer

Note: These projects will fall under large scale projects



Project Scenario:Renewable Cogen

�Small scale Project (thermal energy production < 45

MW)

Biomass based co-gen system that produces heat and

electricity for supplying to individual households or

users.

�Large scale project (thermal energy production> 45

MW)

Biomass based co-gen system for captive and/or grid

supply



Methodology and Applicability: NG Based Cogen

AM0014/V

ersion 03,

Scope 01 and 04

EB 33

Natural gas based packaged

Cogeneration

Reference

Title

The methodology also refers to approved consolidated methodology

ACM0002::

“Consolidated methodology for grid -connected electricity generation

from renewable sources”



Key applicability criteria of AM0014

�Electricity and heat requirement of the consuming

facility is generated in separate system in the absence

of the project activity

�The co-gen system is either a third party or self-

owned.

�No excess heat or electricity is supplied to grid/other

user





AM0048/V

ersion 02,

Scope 01

EB 35

New

Co-generation facilities

supplying electricity and/or

steam to m

ultiple customers and

displacing grid/off grid steam

and electricity generation with

more carbon intensive fuel

Reference

Title

The methodology also refers to the latest version of the:

“Tool for the demonstration and assessment of additionality”




�The project co-gen facility supplies steam and

electricity to multiple consumer/grid

�Project consumer should not co-generate steam and

electricity in the baseline scenario

�Project consumer has to ensure that the equipment

sold/displaced due to the project activity will not be

used for other purposes





AM0049/V

ersion 02,

Scope 01 and 04

EB 35

Methodology for gas based

energy generation in an

industrial facility

Reference

Title

The methodology also refers to the latest version of the:

“Tool for the demonstration and assessment of additionality”




�The project

co-gen facility (electricity and/or

steam/heat) is installed for captive utilisation only

�Project consumer should not co-generate steam and

electricity in the baseline scenario

�Project activity should generate non steam thermal

energy in one or more elemental processes

�Switch from use of coal or oil to gaseous fuel for

generating energy




Methodology and Applicability: Renewable Cogen

AMS-I.C/V

ersion 12,

Scope 01

EB 33

Thermal energy for user with or

without electricity

Reference

Title



Key applicability criteria of AMS-I.C

�The project

co-gen facility is supplying

individual households or users with therm

al

energy and electricity that displaces/avoid fossil

fuel consumption

�The maximum therm

al energy production

capacity is limited to 45 MW.





ACM0006/V

ersion

06, Scope 01

EB 33

Consolidated m

ethodology

electricity generation from

biomass residues

Reference

Title

The methodology also refers to the latest approved version of:

•ACM0002 ( “Consolidated baseline methodology for grid

connected electricity generation from renewable sources”)

•“Tool to determine methane emissions avoided from

dumping waste at a solid waste disposal site”

•“Tool to calculate project or leakage CO2 emissions from

fossil fuel combustion”

•“Tool to calculate project emission from electricity

consumption”



Key applicability criteria of ACM 0006

�The installation of a green field biomass based

co-gen facility.

Or

�Power capacity expansion projects

Or

�Fuel switch projects

�The project activity should fall into one of the

20 different

scenarios as described in the

methodology




Potential CER

CER from displacing grid electricity:

�For NG based co-gen on an average 200 tons of

CO2/MU of grid power displacement

�For renewable co-gen on an average 500 tons of

CO2/MU of grid power replacement

CER from thermal energy:

�3-3.5 tons of CO2/ Kl of diesel replaced



Additionality-In context of Singapore

Investm

ent barr

iers

�The surplus power scenario in Singapore makes the grid power

cheaper than the power generated by the self owned co-gen facility

�Cost of natural gas for smaller project activities may be too high.

Com

mon P

ractice B

arr

ier

�Availability of surplus power in the Singapore electricity grid makes it the

cheapest and most commonly used mode of energy consumption

Oth

er B

arr

ier

�For renewable cogen, fuel supply security risk is one of the important

barriers.



SD Criteria

Socia

l C

rite

ria

�These projects will contribute in bringing social awareness among the

people about global warming, importance of clean energy and

conservation of depleting fossil fuels reserve.

Econom

ic C

rite

ria

�Will bring in economic prosperity in the form of direct and indirect

employment during the implementation of the project activity to

contractors,consultants, technology suppliers.

Environm

enta

l C

rite

ria

�Will conserve precious non-renewable fossil fuel

�Will help in mitigating global warming by achieving GHG emission

reduction



NG based Cogen CDM Project in Singapore

Summary

Full C

arb

on A

sset M

anagem

ent:

PD

D

develo

pm

ent, v

alidation, re

gis

tration,

monitori

ng, veri

fication, sale

of C

ER

s.

Scope o

f K

YO

TO

energ

y

To b

e fin

alised

DO

E (validation)

To b

e fin

alised

Annex 1

(C

ER

buyer)

1stQ

uart

er

2009

Sta

rt c

reditin

g d

ate

1stQ

uart

er

2008

Com

merc

ial opera

tion

210,0

00 t C

O2e

( 7 y

ears

cre

ditin

g p

eri

od )

Em

issio

n r

eductions

AM

0014./V

ers

ion 4

Meth

odolo

gy

Energ

y (S

ecto

r 1), M

anufa

ctu

ring (S

ecto

r 4)

Secto

r

Banyan U

tilities P

vt Lin

ited

Nam

e

Sin

gapore

Location



Status of CDM registered projects –Energy Industry

Summary

Reg

iste

red

CD

M P

roje

cts

- Ene

rgy

Indu

stry

Biogas, 67

Biom

ass, 152

Cogeneration, 77

Efficiency Im

provem

ent, 27

Fuel Switch, 22

Geothermal, 5

Hydro, 205

Natural Gas, 9

Solar, 5

Thermoelectric, 2

Tidal, 1

Trigeneration, 1

Waste Heat, 74

Wind, 146

Biogas

Biom

ass

Cogeneration

Efficiency Improvem

ent

Fuel Switch

Geothermal

Hydro

Natural Gas

Solar

Thermoelectric

Tidal

Trigeneration

Waste Heat

Wind



By

ir M

ich

el B

uro

n

Oct

ob

er 2

006

Thank you. Questions?

Seminar “Energy Efficiency for Process Industry”

29thFebruary 2008, SEAS Singapore

Documents

CDM Opportunities for Cogeneration Projects - Singapore ... · Energy Industry Summary Registered CDM Projects - Energy Industry Biogas, 67 Biomass, 152 Cogeneration, 77 Efficiency