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Veolia Environnement Sa — eThekwini Municipality — Conference Presentation (November 2015)
51 slides from Veolia Environnement Sa's conference presentation, Nov 9, 2015
Slide 1: Durban's Gas-to-Electricity Project
DURBAN’S GAS-TO-ELECTRICITY PROJECT MITIGATING METHANE EMISSIONS PARIS, FRANCE 9 NOVEMBER 2015 John Parkin Deputy Head: Plant & Engineering eThekwini Municipality
Slide 2: South Africa
SOUTH AFRICA • Kwa-Zulu Natal
Slide 3: Durban (eThekwini)
DURBAN (ETHEKWINI) • Area : 2297 sq kms • Coast Line: 98 kms • Rural: 55% by Area 15% by Pop. • Population : 3,5m • Households: 925 000 • Unemployment: 32%
Slide 4: Sunset over Durban
SUNSET OVER DURBAN
Slide 5: National Geographic September 2004
NATIONALGEOGRAPHIC.COM/MAGAZINE SEPTEMBER 2004 The New Face of the American Indian 76 Badgers With Attitude 96 Treasure From a Civil War Wreck 108 ZipUSA: Schooled in Tradition 128 Supplement Map: Indian Country po
Slide 6: Proof of Global Warming
Ae 18th PROOF OF GLOBAL WARMING Positive proof of global warming. Century fa aY v) 1900- 1960 1970 1980 1990 2006 LA Ht fy Ae 4
Slide 7: Gas Production
GAS PRODUCTION “A rule-of-thumb is that 6 – 10m3 of landfill gas will be produced per ton of waste per year for 10 – 15 years from placement” (Robert Eden, et al; 2002)
Slide 8: Landfill gas and electricity rules of thumb
•Roughly 500Nm3/hr from every 1m t of waste. •1MW electricity from every 700Nm3/hr of gas
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Slide 10: Africa's First Landfill Gas CDM Project
AFRICA’S FIRST LANDFILL GAS CDM PROJECT
Slide 11: Semi-Safe Drinking
Th, SEM\- SAFE DRINKING
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Slide 13: Unsuspecting & Naive
UNSUSPECTING & NAIVE
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Slide 15: Champion Passionate
CHAMPION PASSIONATE
Slide 16: Bitten Off More Than We Could Handle
BITTEN OFF MORE THAN WE COULD HANDLE
Slide 17: Mariannhill Landfill
MARIANNHILL LANDFILL
Slide 18: 1 MW Engine
1 MW ENGINE
Slide 19: Bisasar Road Landfill
BISASAR ROAD LANDFILL
Slide 20: Commissioned 6,5 MW July 2009
COMMISSIONED 6,5 MW JULY 2009
Slide 21: Gas Well Installation
GAS WELL INSTALLATION
Slide 22: The CDM Project Process
The CDM Project Process • PIN • PCN • Conditional Approval from DNA (DoE) • 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 • Proj
Slide 23: Process Like a Wolf in Sheep's Clothing
PROCESS LIKE A WOLF IN SHEEP’S CLOTHING
Slide 24: LFG-to-Elec CDM Project Time Frames
LFG-to-Elec CDM Project Time Frames First contact with PCF/World Bank November 2001 MOU between eThekwini and PCF – February 2003 Commence EIA’s – July 2003 Adhoc Approval for funds – October 2003 ROD’s for Mariannhill and La Mercy (“Component July 2004 One”) – Appeal against “Component One” August
Slide 25: LFG-to-Elec CDM Project Time Frame Cont
LFG-to-Elec CDM Project Time Frame Cont ROD Bisasar (“Component Two”) – October 2004 Started construction …. “Component One” January 2006 Final Revised ROD for “Component Two” (Bisasar) – August 2006 CDM Registration of Component 1 (Mariannhill & November La Mercy) – 2006 Commissioning of Mariannhil
Slide 26: LFG-to-Elec CDM Project Time Frame Cont
LFG-to-Elec CDM Project Time Frame Cont “Component Two” (Bisasar) Start Construction – March 2007 Verification of “Component 1” Year 1 January 2008 Commissioning of Bisasar Rd Flare & Engines March 2008 Registration of Component 2 (Bisasar Rd)- March 2009 Commissioning of 6,5 MW Component 2 ( Bisasa
Slide 27: LFG-to-Elec CDM Project Time Frame Cont
LFG-to-Elec CDM Project Time Frame Cont 3rd Verification Mariannhill September 2011 30 December 2011 First Issuance Bisasar (65 711) Sale of VCU’s (124 884) January 2012 Commission Gas Chiller May 2012 First Issuance Mariannhill (39 472) March 2013 4th & 2nd Verifications Mariannhill & Bisasar March
Slide 28: LFG-to-Elec CDM Project Time Frame Cont
LFG-to-Elec CDM Project Time Frame Cont Reregistration of Mariannhill Project (ACM 0001) December 2013 February 2014 2nd Issuance Bisasar (749 633) 5th Verification Mariannhill March 2014 5th Issuance Mariannhill (33 937) June 2014 6th Verification Mariannhill, first under ACM 0001 November 2014 No
Slide 29: Calculated Emission Reductions (in tons)
Calculated Emission Reductions (in tons) Site Methane Electricity TOTALS Destruction Generation Bisasar Road 5,295,296 800,704 6,096,000 Mariannhill 1,112,568 112,344 1,224,912 La Mercy 488,972 24,511 513,483 TOTALS 6,896,836 937,559 7,834,395
Slide 30: The Participants
THE PARTICIPANTS • In House Project Management • World Bank Prototype Carbon Fund • Department of Trade & Industry • Department of Energy • French Development Bank • EIA Felehetsa / WSP Environmental • External Verifiers (was SGS then DNV, next?) • CER Purchaser
Slide 31: The Team
THE TEAM • Project Management: DSW • Gas Specialist: SLR Consulting (Pty) Ltd • Legal: Imbewu Environmental (Pty) Ltd. • Civil Consultants: Wilson Pass Inc. • Engine Maintenance: Spare Invest 28 cc. • Air Quality Monitoring: SGS SA (Pty) Ltd. • Data Collation & Gas Field : Contra Odour cc • Data Col
Slide 32: When Things Go Wrong
WHEN THINGS GO WRONG Re if a ii et CE a i
Slide 33: Gas Chiller
GAS CHILLER • DROPPING OUT 95 l/hr
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Slide 36: Administrative Challenges
ADMINISTRATIVE CHALLENGES • MFMA & SCM don’t deal with out of ordinary processes • EIA Process was problematic • Registration by UNFCCC Ex Board long, tedious & pedantic • Inconsistent decisions by Ex Board • No direct access to Ex Board (recent change) • Monitoring Onerous, Expensive • Language is
Slide 37: Technical Challenges
TECHNICAL CHALLENGES • Lack of Expertise & Resources • Extreme weather conditions • Excess leachate; poorly run site • Manufacturers supplying incorrect equipment • Lack of sharing information • Lack of Experience / Technical Ability • Understanding the Gas Field
Slide 38: Operating Challenges
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 • Verification
Slide 39: Lessons Learned
LEASONS LEARNED • Be wary 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 but not time • Add 12 months to an
Slide 40: We're Still Learning
=| Thena miracle > Sr occurs a4 Es Se GOOD WORK, BUT I THINK WE MIGHT NEED JUST A LITTLE MORE DETAIL RIGHT HERE
Slide 41: Frustrated, Outweighed, No Control
FRUSTRATED NO CONTROL OUTWEIGHED AH ST- - F IT
Slide 42: Show Me the Money
SHOW ME THE MONEY
Slide 43: Project Review
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.
Slide 44: Electricity Sales Bisasar
ELECTRICITY SALES BISASAR UNITS HIGH AMOUNT LOW AMOUNT RATE RATE PEAK 599429 15,64 93 750,70 5,10 30 570,88 STAND- 1456209 4,74 69 024,31 3,51 51 112,94 ARD OFF 1739972 2,57 44 717,28 2,27 39 497,36 PEAK SUR- 10,05% 20 852,98 12 178,71 CHARGE RURAL 0,45 17 080,25 17 080,25 LEVY TOTAL € 245 425,52 €
Slide 45: Current Stats
CURRENT STATS 7.5 MW Generation of Electricity Capacity Electricity Supply to 3 750 small houses Total LFG Flow ~ 4 400 Nm3/hr at 53% CH4 >20 000 Tons CO2 equivalent destroyed /month 2,25m tons of CO2 equivalent destroyed to date > € 9,3m worth of electricity generated to date > 315 000 MWh
Slide 46: Cash Flow: Income and Expenditure
CASH FLOW INCOME EXPENDITURE • ELECTRICITY SALES • CAPITAL EXPENDITURE • € 167 000 / month TO DATE € 8 700 000 • CARBON CREDITS • ANNUAL OPERATING • € 106 300 / month • € 870 000 €5/CER • TOTAL € 3 275 000 / annum
Slide 47: Concluding Comments
Concluding Comments -Landfill gas offers a viable renewable energy source only when linked to Carbon Finance, CDM or ReBid (R0,079/kWh) -VER’s may be more viable than CER’s due to over the top requirements of UNFCCC Process and price -The EIA process has over-ripened this fruit – lost two years - La
Slide 48: Six African projects named among world's most innovative
Six African projects named among world’s 100 most innovative By: Irma Venter Published: 27 Aug 12
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Slide 50: Exceeded Expectation
¢) EXCEEDED EXPECTATION —swx
Slide 51: Hope Things Are Clearer
HOPE THINGS ARE CLEARER www.dbnlandfillgas2elec.co.za
eThekwini Municipality — Conference Presentation (November 2015) on 6ix