Využití bioplynu v subsaharské Africe
Landfill Gas Capture in Sub-Saharan Africa: Opportunity and Feasibility Report
Minutes of the BBL held on November 4, 2003
EWDEN and ESMAP co-hosted a BBL with the purpose to validate and to disseminate the results of the study on landfill gas capture opportunity and feasibility in Sub-Saharan Africa (SSA) carried out by Fatimata Ouedraogo. The Bank staff from the Africa, Latin America, East Asia Regions, EWDEN and ESMAP units attended. Takahashi Masaki chaired the meeting.Participants:
Ø Dominique Lallement - ESMAP Manager, EWDES
Ø Armarquaye Armar - Lead Energy Specialist, EWDEN
Ø Luiz Mauren - Sr Energy Specialist, EWDEN
Ø Takahashi Masaki - Sr Power Engineer, EWDEN
Ø Sakairi Yoriko - Sr Economist, AFTEG
Ø Isabelle Paris - Sr Environmental Specialist, AFTES
Ø Chas Feinstein - Lead Energy Specialist, LCSFE
Ø Laurent Durix - Consultant, ESMAP
Ø Dan Hoornweg - Sr Environmental Engineer, EASUR
Ø Horacio Terraza - Environmental Specialist, LCSEN
Ø Fatimata Ouedraogo - Power Engineer & Economist - ConsultantPresentation of Fatimata Ouedraogo
Mrs. Ouedraogo reminded the objectives of the study and critical facts about energy in Africa. After highlighting the triple benefits for developing landfill gas recovery and use projects, she presented the methodology used for selecting Conakry and Dakar in SSA as good candidates. She described the technical assumptions made and the formula used to estimate the potential collectable gas and potential electricity generation from the gas recovered. She then presented a simplified financial analysis and relevant financial indicators calculated for the two cities, based on a proxy methodology with comparable projects in Latin America and EPA guidelines. She concluded on the sustainability of the projects and made recommendations about possible steps to move this activity forward.General appreciation and methodology validation
Overall, the participants agreed that the presentation was good and that the screening approach, including the assumptions made in selecting the cities, is a valid one. Not only was it clearly outlined but also thorough research was carried out to identify cities which are good candidates for landfill gas capture and use projects. A few comments and suggestions were made in order to improve clarity of the report.Questions on the presentationQ: Aren\'t the figure used for electricity tariff high?
A: This is the single most important factor to influence/determine the feasibility of the project. The figure used in the study (12 UScents/kWh and 9 UScents/kWh for Conakry and Dakar, respectively) are estimated from the current average electricity tariff final consumers are paying in these cities (15 cents/kWh and 11cent/kWh in Conakry and Dakar, respectively). Considering that the generation mix in Conakry and Dakar is more than 65% Diesel, these figures are considered to be reasonable
Q or Comment: Geology of the site of Dakar - When it is open and wet dumping site like the case of Dakar, the methane emissions may have been already released, or hard to capture even after converting it to landfill capture.
A: It is true that the geology of the site of Dakar could reduce the amount of gas that can be captured but the high moisture and organic content will enhance the biodegradation process, and then the amount of methane that can be captured. The open dump site of Dakar is very large with a significant amount of waste in place and is still receiving municipal solid waste. Before moving to the next step, site specific information needs to be collected and analyzed because, at this stage of the study, the screening process and the simplified financial analysis could not take into account all the technical and financial details.
Q: Economic usage of the gas recovered - Is the electricity option the only useful way to use the gas captured?
A: There are three main options for the potential gas usage:
Ø Pipeline injection
: There is no pipeline infrastructure in the SSA countries considered. And, as the cost of pipeline construction and gas enrichment is very high, this will make the project not attractive.
Ø On site use and flaring of the remaining methane capture for emissions reduction credits
: this option is usually preferred when the potential for electricity generation is very small and the electricity tariff in the city is low.
Ø Electricity generation
( on site and off site usage), with also the possibility for emissions reduction credits for the methane used to produce electricity and displacement of traditional fuel that will be otherwise used:
this third option, as shown by the financial indicators, seems to be the most economical way to use the gas in Conakry and Dakar where the tariff are very high (15 UScents/kWh and 11 UScents/kWh respectively) and the cities are experiencing electricity shortage and low access.Q: What was the basis for a 7% inflation rate? For comparison purposes, the analysis should be done in nominal terms (0% inflation rate).
A: To carry out the analysis, the choice was made to include the inflation rate as a separate variable in the model for it to be flexible. The 7% inflation rate choice was based on the inflation rate recorded in the Francophone West Africa Region. However, as said before, the inflation rate could be set to 0% in the model and the financial indicators will be automatically calculated (this was demonstrated at the meeting). But the final report should be presented at real term (0% inflation rate). Suggestions and comments:
A few suggestions were offered in order to increase the relevance of the report findings and expand their dissemination.
Ø Multi-sectorial Approach
: the participants agreed that the Urban, Environment and Energy groups need to work together to develop landfill gas recovery projects. It was further suggested that these groups should discuss at the regional level, in the Africa Region, in order to support projects of that nature.
Ø Posting the report on the web
: It was also suggested to make the report available on the Garbologist Web Site. This will be one of the best ways to ensure wide dissemination of the report.
Ø Developing business line:
There are ongoing landfill gas recovery projects in South Africa, Ethiopia, Ghana and project ideas are emerging in Kenya and other countries in Africa. There are several GEF, PCF and IFC projects in other regions including Mexico, Brazil, Latvia and China. There are many waste management projects in urban development, but their main focus is waste management and not the recovery of energy from waste. Carbon financing through PCF and CDCF mechanisms will make the landfill gas recovery and utilization project attractive to investors. The Bank\'s business in this area would be most likely developed with the carbon financing instruments. The next steps would be one-on-one consultation to develop business line to apply the methodology to potential CDM projects in Africa region or in any other region.
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