Co-Benefits of Financing Vertical Shaft Brick Kilns in Nepal

Bhushan Tuladhar, Environment & Public Health Organization (ENPHO),

Nepal

Jeeven Acharya & Anil RautWinrock International Nepal

Presentation Summary Air Quality & Brick

Kilns Vertical Shaft Brick

Kilns AQ Benefits of VSBK Potential CDM

Benefits

Air Quality Issues in Nepal Indoor AQ is a major concern

Biomass supplies 85% of energy needs Rate of urbanization is very high Air quality is a major problem in Kathmandu

Valley

Air Quality & Brick Kilns 166 brick kilns in Kathmandu Valley Brick demand is 1.1 4 billion/yr & growing at 11% /yr In 1993, brick kilns contributed 27% of PM10 Till 2003, most brick kilns utilized very polluting Moving

Chimney Bulls Trench Technology Since then new cleaner technologies have been introduced Brick Kilns operate in winter and dry season, when air

pollution is also at its peak

Inventory of PM10 Sources in Kathmandu Valley (1993)

Brick Kilns27%Vehicle

Emission12%

Other Industry

6%

Refuse Burning

4%

Road Resuspe

nsion9%

Domestic fuel25%

Himal Cement

17%

Transformation in Kathmandu’s Brick industry

Monthly Average PM10 in Kathmandu Valley

0

50

100

150

200

250

300

350

No

v '0

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Fe

b '0

3

Ma

y '0

3

Au

g '0

3

No

v '0

3

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b '0

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y '0

4

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g '0

4

No

v '0

4

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b '0

5

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y '0

5

Au

g'0

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No

v '0

5Month

PM

10 (

mic

rog

ram

s/m

3)

Patan

Bhaktapur

Putali Sadak

Thamel

TU Kirtipur

Maysyagaon

National Std.

VSBK Technology

VSBK Technology Initially developed in China First introduced in Nepal in 1991;

Reintroduced 2003 Energy Efficient and very low emission

Effective combustion Arrangement of bricks act as a dust strainer Energy conservation due to natural up drought

Vertical kiln with stationary fire and moving brick

Operates throughout the year Bull’s Trench Kilns

Production capacity – about 6,500 bricks per day per shaft

CDM Potential in Nepal Nepal has ratified the Kyoto Protocol Limited potential for large scale projects Some potential in promoting renewable

energy & energy efficiency Biogas project has been registered Projects being considered include: solar

lighting, improved cook stoves, solid waste management, electric vehicles

In the industrial sector, brick industry presents a major opportunity for CDM and AQ benefits

What Makes VSBK a CDM Project

New technology with low adaptation rate 3 VSBK compared to more than 100 Fixed Chimney

40-50% energy efficient than Fixed Chimney VSBK: 0.069 kg/brick; FC: 0.14 kg/brick

Brick production is energy intensive: cost of coal is about 40% of total operating cost

Higher capital cost and relatively lower return on investment than fixed chimney

Pay back period - FC: 1yr 2 mo.; VSBK: 2 yr. 2 mo. More technical know-how required High local environmental benefits

Emission from Various Types of Brick Kilns

8.06

1.71

0.55

0123456789

MovngChimney BTK

Fixed Chimney VSBK

Type of Brick Kiln

Mas

s E

mis

sio

n L

oad

(k

g o

f S

PM

/100

0 b

rick

s)

Compared to Moving Chimney BTK, VSBK Emission is less by a factor of 14Compared to Fixed Chimney, VSBK emission is less by a factor of 3

Emission Reduction through VSBK

0.33

0.87

1.82

2.61

0

0.5

1

1.5

2

2.5

3

Kg

of

Em

iss

ion

/ 1

00

0 B

ric

ks

VSBK FC-FD Zig Zag FC-FD Straight line FC-ND Straight line

Source: Institute of Environmental Management, May 2005

Main barriers for Promotion of VSBK Investment Barrier

Initial investment: FC: US$64368; VSBK (six shafts): US$ 133,200

Technological Barrier

Barrier of prevailing practice

VSBK CDM Project Activity 72 shafts in KTM valley in five years 10 Years crediting period, starting 2006 Baseline is fixed chimney Baseline emissions 28,241 tCO2e/yr Project emissions: 13,891 tCO2e/yr

14,351 tons of CO2e saved per year At $7/ton: $100,457/year

Distribution of revenue: 40% to entrepreneur; 40% to VSBK program; 20% for social activities

Currently, PDD is being revised (prepared by Winrock International, Nepal under ADB funded PREGA project)

CO2 Reduction Emission from Fixed Chimney

To produce 8.18.1 million bricks/yr (actual production from FC) Coal use: 1,133 tons Total CO2 emission: 2,792 ton (CO2 emission/brick: 0.345

kg/brick) Emission from VSBK

To produce 8.18.1 million bricks/yr (to produce same as fixed chimney)

Coal use: 557 tons Total CO2 emission: 1,373 tons (CO2 emission/brick: 0.175

kg/brick) Emission reduction from 4-shaft VSBK (brick production 4.554.55

million bricks/yr) CO2 emission reduction/brick: 0.175 kg/brick Total CO2 emission reduction: 797 ton/year

Challenges Financial

High project development & transaction cost for CDM projects

Fixed chimney is financially very attractive Technical

CDM is complicated and understanding of CDM is very limited

Difficult to verify emission saving Institutional

Capacity to develop and process process CDM projects

Bringing together several kiln owners can be difficult

Conclusion

VSBK can significantly reduce air pollution in Kathmandu Valley

Existing investment and technological barrier has led to very low adoption rate of this clean brick kiln technology

Low energy consumption per brick in VSBK provides opportunity for CDM

Promotion of VSBK in Kathmandu valley can provide a good example for co-benefit of local air pollution and global GHG emission

Thank You