6511- cpa dd specific_26jun2012

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SMALL-SCALE CDM PROGRAMME ACTIVITY DESIGN DOCUMENT FORM

(CDM-SSC-CPA-DD) - Version 01

NAME /TITLE OF THE PoA: Co-composting and Composting Program of Activitie

for Palm Oil Mills in Indonesia

CDM Executive Board page 1

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

CLEAN DEVELOPMENT MECHANISMSMALL-SCALE PROGRAM ACTIVITY DESIGN DOCUMENT FORM (CDM-SSC-CPA-DD)

Version 01

CONTENTS

A. General description of CDM programme activity (CPA)

B. Eligibility of CPA and Estimation of Emission Reductions

C. Environmental Analysis

D. Stakeholder comments

Annexes

Annex 1: Contact information on entity/individual responsible for the CPA

Annex 2: Information regarding public funding

Annex 3: Baseline information

Annex 4: Monitoring plan

NOTE:

(i) This form is for submission of CPAs that apply a small scale approved methodology using the

provision of the proposed small scale CDM PoA.

(ii) The coordinating/managing entity shall prepare a CDM Small Scale Programme Activity Design

Document (CDM-SSC-CPA-DD)1,2

that is specified to the proposed PoA by using the provisions stated

in the SSC PoA DD. At the time of requesting registration the SSC PoA DD must be accompanied by aCDM-SSC CPA-DD form that has been specified for the proposed SSC PoA, as well as by one

completed CDM-SSC CPA-DD (using a real case). After the first CPA, every CPA that is added over

time to the SSC PoA must submit a completed CDM-SSC CPA-DD.

1The latest version of the template form CDM-CPA-DD is available on the UNFCCC CDM web site in the

reference/document section.

2At the time of requesting validation/registration, the coordinating managing entity is required to submit a

completed CDM-POA-DD, the PoA specific CDM-CPA-DD, as well as one of such CDM-CPA-DD completed

(using a real case).


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SECTION A. General description of small scale CDM programme activity (CPA)

A.1. Title of the small-scale CPA:

>>

Socfindo EFB plus POME Co-composting Project (CPA No. 001)

Version: 03

31/05/2012

A.2. Description of the small-scale CPA:

>>

Socfindo EFB plus POME Co-composting Project at Bangun Bandar, hereafter referred as the Project

Activity, is a small-scale CDM programme activity (CPA) involving the installation and operation of asophisticated Aerated Bunker Co-composting (ABC) plant at PT.Socfin Indonesias (Socfindo) Bangun

Bandar Crude Palm Oil Mill (Mill Facility). The project activity will be constructed at the Mill Facility

which has capacity to process Fresh Fruit Bunches (FFB) of 23 tons/hour. The Project Activity is located

at Bangun Bandar, North Sumatra Province, Indonesia.

In the process of producing CPO, the Mill Facility has four types of waste: Empty Fruit Bunches (EFB),

fibers, palm kernel shells (PKS), and liquid waste known as palm oil mill effluent (POME). While fiber

and a proportion of PKS is used as fuel for the mill boilers to generate heat and electricity for the whole

plant, the EFBs are discharged as waste and left to decay in unmanaged dumpsites. POME is treated in a

series of open air anaerobic and aerobic ponds before being discharged into a local waterway.

The Project Activity utilizes both EFB and POME for the co-composting process, and the output of the

co-composting process is organic compost which will be recycled by Socfindo and reapplied to its

neighbouring plantations. Therefore the Project Activity will reduce the methane emissions from

anaerobic digestion of POME treatment by avoiding the current open air anaerobic wastewater treatment

system. Moreover it will also avoid methane emissions from the EFB solid waste that is currently

disposed of and left to decay in unmanaged solid waste disposal sites situated in the oil palm plantation

area.

The Aerated Bunker Co-composting (ABC) process is an enclosed co-composting system with a

computer controlled environment which continually monitors O2 and temperature to ensure the optimum

ambient environment for natural aerobic decomposition of the waste streams.

Contribution to Sustainable Development

In response to the urgent and pressing global call for sustainably produced palm oil, the Roundtable on

Sustainable Palm Oil (RSPO) was formed in 2004 with the objective ofpromoting the growth and use of

sustainable oil palm products through credible global standards and engagement of stakeholders. The

RSPO is a not-for-profit association that unites stakeholders from seven sectors of the palm oil industry -

oil palm producers, palm oil processors or traders, consumer goods manufacturers, retailers, banks and

investors, environmental or nature conservation NGOs and social or developmental NGOs - to develop


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and implement global standards for sustainable palm oil3

. Socfindo has been an early joining member ofthe Roundtable on Sustainable Palm Oil (RSPO) since the 7

thDecember 2004 and has consistently been

moving towards obtaining RSPO certification in its Mills.

The Project Activity will have a positive contribution to the Sustainable Development of Indonesia as

defined by the Designated National Authority. The contribution of the Project Activity to sustainable

development is significant assessed by using the sustainable development criteria of Indonesia4.

Indonesias sustainable development criteria and indicators for assessing a proposed CDM project are

categorised into four groups: environmental, economic, social and technological sustainability. Details of

the positive contribution to sustainable development are:

Environmental sustainability: (The scope of evaluation is the area having direct ecological impacts

from the project).

The Project Activity facilitates the use of Mill waste (EFB and POME) to create high-value organiccompost that can be reapplied to the Palm Plantation. This reduces local waste production and

conserves natural resources by turning unwanted waste into a valuable resource (organic compost).

The Project Activity which involves the implementation and operation of Co-composting activity ofPalm Mill waste has a number of positive local environmental effects including:

Reducing or avoiding completely the negative environmental effects associated with baselinetreatment of POME in open air lagoons including:

Avoiding methane emissions thus reducing GHG emissions;

Avoiding negative odour associated with POME lagoons;

Reducing or avoiding altogether the discharge of treated POME into natural waterways,therefore improving water quality of local streams for biota and community use.

Avoiding negative environmental effects in relation to the dumping or disposal of EFB in the

baseline situation by fully utilizing the Mills waste EFB for the production of organic

fertilizer;

Improving soil health by application of high nutrient organic compost onto plantations increasing organic matter in soil, improving moisture retention, providing a source of

microorganisms and nutrients and a potential replacement to inorganic fertilizers.

Improving local health by eliminating all of the existing anaerobic POME ponds and some or

3For more detail on RSPO and its mission please seehttp://www.rspo.org/?q=page/16.

4Website of the Indonesian DNA (the Indonesian National Commission for Clean Development Mechanism) setting

out Indonesias Sustainable Development Criteria and Indicatorshttp://dna-cdm.menlh.go.id/en/susdev/(accessed 18

December, 2010).
http://www.rspo.org/?q=page/16http://www.rspo.org/?q=page/16http://www.rspo.org/?q=page/16http://dna-cdm.menlh.go.id/en/susdev/http://dna-cdm.menlh.go.id/en/susdev/http://dna-cdm.menlh.go.id/en/susdev/http://dna-cdm.menlh.go.id/en/susdev/http://www.rspo.org/?q=page/16


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all of the aerobic POME ponds which are a source of odour;

No additional resources (e.g. water) will be used for the composting process, as the humidityrequired will be provided by the POME.

Economic sustainability

The Project Activity will make a small contribution to employment by providing opportunity of new

jobs for local community starting from construction to commissioning and later on in operation and

maintenance of the plant;

The Project Activity will turn waste products (EFB and POME) into organic compost which:

Potentially partly replaces the existing use of purchased chemical or organic fertilizer for aplantation.

Improves palm health and contributes to improved yield through improved soil health, thussupporting a strong and sustainable Indonesian Palm Oil Industry.

Social sustainability

The Project Activity will act as a clean technology demonstration project and will encourage otherPalm Mill operators as well as other agri-processing industries to come up with similar projects.

Provision of staff training to improve their technical skills in relation to monitoring and datamanagement for CDM .

The Project Activity facilitates the voluntary adoption and uptake of Palm Mill Waste treatmentprocesses which are more environmentally friendly and sustainable than that legally required.

Technology sustainability

Supports the uptake and adoption of industry best practice techniques and technology for palm wasteprocessing via co-composting technology from abroad thereby facilitating early adoption of such

practices to displace current practice and become the baseline industry practice in Indonesia.

The Project Activity will provide an opportunity for local people to acquire know-how forconstruction, optimal maintenance and operation of state-of-the-art co-composting plant, equipment

and systems.

The Project Activity will contribute to provide an opportunity for technology transfer.

A.3. Entity/individual responsible for the small-scale CPA:

>>

PT.Socfin Indonesia is the responsible entity for the small-scale CPA.


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A.4. Technical description of the small-scale CPA:

A.4.1. Identification of the small-scale CPA:

>>

The technology used in the project activity is an advanced; automated and enclosed co-composting

technology, called the Aerated Bunker Co-composting System or ABC System. In essence, ABC aerobic

composting system provides the optimum external ambient conditions required by natural micro-

organisms to aerobically decompose the mill waste streams efficiently in a short period to produce fertile

organic compost.

How will the system ensure the aerobic conditions in the compost?

The ABC system is specifically designed as an aerobic composting system. Firstly the compost is placed

in bunkers, within concrete walls, a concrete aerated floor and under a roof which are designed to enable

the ambient environment to be controlled and to allow passive ventilation for the compost by air (see

photo of bunker below). To further facilitate the addition of the large volumes of POME, the compost is

moved every 3 to 4 days through a series of bunkers. The entire process will take approximately 25 days.

16

Empty Composting Bunker

The compost environment is computer controlled with real time monitoring of oxygen and temperature of

the compost mass through a probe which is strategically placed into the heart of the compost mass. The

computer system will automatically start the fans if the oxygen levels within the compost mass is near

10% (or at any other level if demanded) thus ensuring that the compost is not in anaerobic conditions.

Oxygen is injected into the compost from the fans through a specifically designed concrete floor which

allows air to be injected up into the compost mass (see figure below). In addition, the ABC system also

incorporates a methane meter to monitor presence of methane within the process.


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Temperature, oxygen and methane levels are recorded at short intervals throughout the process by the

computer, not only for controlling the process but also for recording the compost batches history

throughout the process. Furthermore, all the compost settings and parameters used in this composting

system can be tailored to suit specific and individual requirements.

How does the system ensure that there is no run off or leakage?

Any liquid that percolates through the aerated floor will go through the compost drains and is piped into

a sump where it is re-circulated back to the compost with any excess being stored in an enclosed buffer

tank. The bunkers are covered so ambient rainwater is eliminated from the bulk of the composting area.

All the run-off water from the compost is kept within the system and constantly recycled.

The Aerated Bunker Composting System (ABC) Process:

The Aerobic Bunker composting system (ABC) is made of concrete walls on an aerated floor, under a

roof. The process is controlled by a computer that helps to maintain the mass of the compost in idealconditions for the aerobic micro- flora to function optimally in converting the blended waste streams to

an organic fertilizer. The ABC System at the Mill operates as follows:

a. Pressed EFB which is collected in Hoppers at the mill, will be delivered to the composting area viatruck. Although the composting facility is immediately adjacent to the mill, lorries will still be used to

move the EFB storage hoppers. The trucks will directly tip the EFB into the first bunker. The Project

is estimated to have a total of up to 8 bunkers.

b. POME from the Mill Facility will be stored in an enclosed tank which will circulate the POME.

Todays production will be continuously used so methane will not be produced during this time. The

COMPOST

Aerated floor keeps compost in aerobic

condition and drains excess POME back to

sump

Roof to exclude rain


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POME will also be aerated and agitated to prevent solids from settling, and further restrict the growthof methane producing organisms.

c. The POME will be pumped from this holding tank and over the composting period, will be blendedwith the EFB and any other waste stream that the mill may be producing. The POME is piped from

the holding tank and sprayed in through a sprinkler system in the roof of each bunkers. POME will

also be added to the EFB initially through the specially designed bunker filler machine as it enters the

bunker and again to the surface of the compost when desired through the sprinkler system.

d. To facilitate the addition of the large volumes of POME from the mill, the compost is movedperiodically through the set of bunkers. After 3 to 4 days the compost will be moved and restacked in

the next bunker. Additional POME can again be added to the surface through the sprinkler system as

required during the period in the Bunker. At each move the compost is taken out of the bunker with a

front loading tractor, and transferred to the next bunker where the Bunker Mixer Filling Machine

mixes the EFB with more POME and re stacks the compost to a height of approximately 6m. The

Bunker Mixer Filling machine helps to re-blend the compost and at the same time add an even amount

of fresh POME to the compost. It breaks up any lumps that may be formed allowing air to easily

penetrate the whole mass during the next period.

e. This process is then repeated every 3 to 4 days until the end of the composting period. This processcan accommodate all the EFB and POME generated by the mill as waste and it will take

approximately 25 days. The exact application rate of POME will be determined through both

calculation and analysis. Any free liquid which is not fully absorbed by the compost can be drained

through the specially designed floor system and run back to the recycling sump for re use.

f. Throughout the process, the compost material is continually monitored by a probe inserted within thecompost which is connected to the control computer. Records are kept automatically and real time

performance of temperature and levels of oxygen and methane within the compost mass can be

monitored 24 hours a day. These probes are connected to the computer which controls the activity of

the fans. These fans control the air flow to maintain the compost in an aerobic state ideal for the

micro-flora to be fully active and prevent methane being generated. When required, the fans will be

activated to inject and force air through the specially designed bunker floor into the compost to ensure

optimum aerobic conditions are maintained. The methane monitoring unit has the capability to

override the other controls if the levels of methane rise, thus ensures that no methane is produced

during the process. From these records and by using the computer controls, it is possible to fine tune

future batches of compost and make adjustments to the composting programme to suit any seasonalvariations or changes in materials.

g. This whole process takes around 25 days to complete, after which time the output compost can betaken to the plantation via truck and spread by tractor as an organic fertilizer.

A.4.1.1. Host Party:

>>

Republic of Indonesia


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A.4.1.2. Geographic reference or other means of identification allowing theunique identification of the small-scale CPA (maximum one page):

>>

The project activity is located at Socfin Indonesias Bangun Bandar crude palm oil mill, Martebing

village, Dolok Masihul district, Serdang Bedagai regency, and North Sumatra province, Indonesia. The

project location is about 3 hours from Medan city and has geographical location of985758.70-

99436.33 E and 31624.46 - 32032.54 N.

The map of the project location is shown in following figure5:

5Source fromhttp://maps.google.co.id/
http://maps.google.co.id/http://maps.google.co.id/http://maps.google.co.id/http://maps.google.co.id/


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A.4.2. Duration of the small-scale CPA:

A.4.2.1. Starting date of the small-scale CPA:

>>

04/07/2011

A.4.2.2. Expected operational lifetime of the small-scale CPA:

>>

20 years

A.4.3. Choice of the crediting period and related information:

Renewable crediting period

A.4.3.1. Starting date of the crediting period:

>>

01/01/2013 or registration date, whichever is later

A.4.3.2. Length of the crediting period, first crediting period if the choice is

renewable CP:

>>

This CPA is the first CPA under the PoA named Co-composting Programme of Activities in Indonesia;

therefore the length of crediting period (renewable/3x7 years/21 years) is below the length of the PoA

(28 years).

A.4.4. Estimated amount of emission reductions over the chosen crediting period:

>>

Compost product generated by the project activity is expected to be 28,098 ton/year. This will be

achieved through the utilization of 18,732 ton EFB and 47,612 m3

POME per year. Therefore the Project

Activity would have emission reductions of approximately 10,130 ton CO2 per year by avoiding the

emissions of methane to the atmosphere from organic matter that would have otherwise been left to

decay anaerobically in a solid waste (EFB) disposal site including the wastewater (POME) treatment.

The total GHG emission reductions over the first crediting period are estimated of 70,910 tons CO2.

Annual emission reduction is listed in table below:

YearEstimation of annual emissions reductions in

tons of CO2

2013 10,130

2014 10,130

2015 10,130

2016 10,130


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2017 10,130

2018 10,130

2019 10,130

Total reductions over the crediting

period (tons CO2)

70,910

Annual average of the estimated

reductions over the crediting period

(tons CO2)

10,130

A.4.5. Public funding of the CPA:

>>

No public funding is involved in the project activity.

A.4.6. Information to confirm that the proposed small-scale CPA is not a de-bundled

component

>>

As per EB 54 annex 13, following information demonstrate that the proposed project activity is not a

debundled component of a large scale activity as there are no Activities:

1. that have the same activity implementer as the proposed small scale CPA or has a coordinating ormanaging entity, which also manages a large scale PoA of the same technology/measure, and;

2. which are within 1 km of the boundary of the proposed small-scale CPA, at the closest point.

Moreover, as per PoA section A.4.4.1, PT.Socfin Indonesia has certified in writing that the proposed

CPA is not a debundled part of a bigger project.

A.4.7. Confirmation that small-scale CPA is neither registered as an individual CDM

project activity or is part of another Registered PoA:

>>

The proposed Project Activity is not registered as an individual CDM project and is not part of another

registered PoA. In addition as per the PoA-DD section A.4.4.1, PT.Socfin Indonesia have certified in

writing that the Project Activity is not and will not be registered as an individual CDM project, nor be

included within another PoA.

SECTION B. Eligibility of small-scale CPA and Estimation of emissions reductions

B.1. Title and reference of the Registered PoA to which small-scale CPA is added:

>>

Co-composting and Composting Program of Activities for Palm Oil Mills in Indonesia

B.2. Justification of the why the small-scale CPA is eligible to be included in the Registered

PoA :

>>


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NoCriteria of technology/measure under approved

methodology AMS-III.F version 10Project Description

1. This methodology comprises measures to avoid the

emissions of methane to the atmosphere from

biomass or other organic matter that would have

otherwise been left to decay anaerobically in a solid

waste disposal site (SWDS), or in an animal waste

management system (AWMS), or in a wastewater

treatment system (WWTS). In the project activity,

controlled aerobic treatment by composting of

biomass is introduced.

Project Activity will utilize solid waste

(EFB) and wastewater (POME) for co-

composting process.

2. The project activity does not recover or combust

landfill gas from the disposal site (unlike AMS-

III.G Landfill methane recovery), and does not

undertake controlled combustion of the waste that

is not treated biologically in a first step (unlike

AMS-III.E Avoidance of methane production from

decay of biomass through controlled combustion,

gasification or mechanical/thermal treatment).

Project activities that recover biogas from

wastewater treatment shall use methodology AMS-

III.H Methane recovery in wastewater treatment.

Project activities involving co-digestion of organicmatters shall apply methodology AMS-III.AO

Methane recovery through controlled anaerobic

digestion.

Project Activity, which is the co-composting

process, belongs neither to one of the

following types:

a. Recover or combust landfill gas from thedisposal site;

b. Undertake controlled combustion of thewaste that is not treated biologically in

first step;

c. Recover biogas from wastewatertreatment, and without co-digestion of

organic matters.

3. Measures are limited to those that result in

emission reductions of less than or equal to 60 kt

CO2 equivalent annually.

Project activity will reduce approximately

emissions of 10,130 tons CO2 per year. This

is well below the maximum of 60,000 tCO2

per annum.

4. This methodology is applicable to the composting

of the organic fraction of municipal solid waste and

biomass waste from agricultural or agro-industrial

activities including manure.

The Project Activity is co-composting

process.

5. This methodology includes construction and

expansion of treatment facilities as well as

activities that increase capacity utilization at an

existing facility. For project activities that increase

capacity utilization at existing facilities, project

participant(s) shall demonstrate that special efforts

are made to increase the capacity utilization, that

the existing facility meets all applicable laws and

regulations and that the existing facility is not

included in a separate CDM project activity. The

Project Activity is newly built co-

composting plant.


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special efforts should be identified and described.6. This methodology is also applicable for co-

composting wastewater and solid biomass waste,

where wastewater would otherwise have been

treated in an anaerobic wastewater treatment

system without biogas recovery. The wastewater in

the project scenario is used as a source of moisture

and/or nutrients to the biological treatment process

e.g. composting of empty fruit bunches (EFB), a

residue from palm oil production, with the addition

of palm oil mill effluent (POME) which is the

wastewater co-produced from palm oil production.

The Project Activity is co-composting which

would utilize solid waste (EFB) and

wastewater (POME) for co-composting

process.

7. In case of co-composting, if it can not be

demonstrated that the organic matter would

otherwise been left to decay anaerobically, baseline

emissions related to such organic matter shall be

accounted for as zero, whereas project emissions

shall be calculated according to the procedures

presented in this methodology for all co-composted

substrates.

In the baseline condition, the shredded solid

waste (EFB) is directly dumped in the

plantation. This demonstrates that the

organic matter would otherwise been left to

decay anaerobically.

9. The location and characteristics of the disposal site

of the biomass, animal manure and co-composting

wastewater in the baseline condition shall be

known, in such a way as to allow the estimation ofits methane emissions, using the provisions of

AMS-III.G, AMS-III.E (concerning stockpile),

AMS-III.D Methane recovery in animal manure

management systems or AMS-III.H respectively.

The EFBs dump site and open lagoons of

wastewater treatment in the baseline

condition is clearly located and

characterized.

10. The project participants shall clearly define the

geographical boundary of the region referred in

paragraph 9 (b), and document it in the CDM-PDD.

In defining the geographical boundary of the

region, project participants should take into account

the source of the waste i.e. if waste is transported

up to 50 km, the region may cover a radius of 50km around the project activity. In addition, it

should also consider the distance to which the final

product after composting will be transported. In

either case, the region should cover a reasonable

radius around the project activity that can be

justified with reference to the project circumstances

but in no case it shall be more than 200 km. Once

defined, the region should not be changed during

the crediting period(s).

The maximum distance for transporting the

waste utilized by the Project Activity is 50

km; therefore the geographical boundary of

the Project Activity is within radius of 50

km around the Project Activity location.

11. In case produced compost is handled aerobically The compost product will be directly applied


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and submitted to soil application, the properconditions and procedures (not resulting in methane

emissions) must be ensured.

to plantation; this ensures no methaneemissions occur.

12. In case produced compost is treated

thermally/mechanically, the provisions in AMS-

III.E related to thermal/mechanical treatment shall

be applied.

The produced compost will not be treated

thermally/mechanically.

13. In case produced compost is stored under anaerobic

conditions and/or delivered to a landfill, emissions

from the residual organic content shall to be taken

into account and calculated as per the latest version

of the Tool to determine methane emissionsavoided from disposal of waste at a solid waste

disposal site.

The produced compost will not be stored

under anaerobic condition and/or delivered

to landfill. The produced compost would be

directly applied to plantation by a spreader

machine.

Following table demonstrates the project activity satisfies all eligibility criteria listed in the PoA:

No Eligibility criteria as per PoA DD Section A.4.2.2 Project Description1.

Boundary:

(i)Physical Boundary: The entire boundary of theCPA project activity must be physically located

within the territory of the Republic of Indonesia as

set out in section A.4.1.2 of this PoA-DD.(ii)Time Induced Boundary: No CPA shall commence

before the Start Date of the PoA, as set out in section

B.1. of this PoA-DD. In addition, no CPA shall

commence later than 28 years after the start date of

the PoA-DD as set out in section B.1. of this PoA-

DD.

The CPA No.001 is located in the

territory of the Republic of Indonesia

and has commencement date of 04 July

2011, which was after start date of the

PoA, therefore the CPA No.001 iseligible to be included in the PoA.

2.

Double counting: To avoid double counting of emission

reductions each CPA must: Provide specific geographic

GPS coordinates for the Project Activity to enableunique identification of the Project activity.

The CPA No.001 has geographic GPS

coordinate of 985758.70-

99436.33 E and 31624.46 -32032.54 N, therefore the CPA

No.001 is eligible to be included in the

PoA.

3.Cooperation Agreement: Each CPA owner must enter

into a cooperation agreement with the Coordinating

entity which includes at a minimum the matters set out

in section A.4.4.1(iv), ie that:

i. The CPA Owner is aware and voluntarily agrees

The cooperation agreement has been

made between CPA owner and

coordinating entity and the agreement

considers following items:

i. The CPA Owner is aware and


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that the CPA will be subscribed to the present PoAunder the conditions as required by the approved

PoA and the contractual arrangement between the

CPA Owner and the Coordinating Entity.ii. Certifies the CPA has not been and will not be

registered as a single CDM project activity nor as a

CPA under another PoA, nor any voluntary scheme

and warrants on an ongoing basis that they will not

seek to have the project activity which forms the

basis of the proposed CPA registered as a CDM

project or registered under any other scheme that

earns carbon credits for the emission reductions

achieved while the project is included in a CPA or

proposed CPA under the present PoA.iii. The CPA Owner will certify in writing that the

proposed CPA is not a debundled part of a bigger

project.

iv. CPA Owner cedes all rights to independently claimand own emission reductions under the Clean

Development Mechanism of the UNFCCC or any

voluntary scheme other than through the managing

entity of the present PoA as agreed.

voluntarily agrees that the CPAwill be subscribed to the present

PoA under the conditions as

required by the approved PoA

and the contractual arrangement

between the CPA Owner and the

Coordinating Entity.ii. Certifies the CPA has not been

and will not be registered as a

single CDM project activity nor

as a CPA under another PoA, nor

any voluntary scheme and

warrants on an ongoing basis that

they will not seek to have the

project activity which forms the

basis of the proposed CPA

registered as a CDM project or

registered under any other

scheme that earns carbon credits

for the emission reductions

achieved while the project is

included in a CPA or proposed

CPA under the present PoA.

iii. The CPA Owner certifies that theproposed CPA is not a debundled

part of a bigger project.

iv. CPA Owner cedes all rights to

independently claim and own

emission reductions under the

Clean Development Mechanism

of the UNFCCC or any voluntary

scheme other than through the

managing entity of the present

PoA as agreed.

Therefore the CPA No.001 is eligible to

be included in the PoA.

4.

No Pre-existing Co-composting or Composting at

Site: Each CPA shall be implemented at a Palm Oil Mill

site where no composting or co-composting activity was

taking place before the Project Activity.

The CPA No.001 implements a co-

composting activity where there was no

existing co-composting at site the site

prior to the Project Activity, therefore

the CPA No.001 is eligible to be

included in the PoA.


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5.Technology and compliance with Methodology: Each

CPA must be a newly developed, co- composting or

composting facility using composting technology that

(i)Uses Palm Oil Mill Organic waste as inputs andvia an aerobic composting process within the

parameters set out in section A.4.2.1 of the PoA-

DD produces organic compost for reapplication

to land as organic fertilizer

(ii)Meets the requirements of approvedmethodology AMS-III.F version 10, including

applicability criteria, its relevant assessment tools

and guidelines,

(iii)In addition in order ensure the environmental

integrity of each co-composting facility that is

brought under this PoA and to ensure that the co-

composting facility does not become a source of

environmental pollution itself, each facility must:

i. Locate the main composting facility upon

an impermeable composting pad / floor of

concrete or some other impermeable

material (This ensures leaching from the

compost does not take place directly into

the soil below and improves thecomposting process);

ii. Incorporates a system / process toadequately deal with any run-off or

leachate from the compost itself and / or

ensure any liquid discharge would be

diluted or treated to environmentally

acceptable levels before entering the

surrounding environment.

The CPA is a newly developed co-

composting facility that:

(i) Uses Palm Oil Mill Organicwaste as inputs and via an

aerobic composting process

within the parameters set out in

section A.4.2.1 of the PoA-DD

produces organic compost for

reapplication to land as organic

fertilizer

(ii) Meets the requirements ofapproved methodology AMS-

III.F version 10, including

applicability criteria, its relevant

assessment tools and guidelines,

(iii) In addition:

i. The composting facility islocated on a floor of

concrete (This ensures

leaching from the compost

does not take place

directly into the soil below

and improves thecomposting process);

ii. Incorporates a system /process to adequately deal

with any run-off or

leachate from the compost

itself and / or ensure any

liquid discharge would be

diluted or treated to

environmentally

acceptable levels before

entering the surroundingenvironment.



6.

Start date: Each CPA Owner must be able to provide

documentary evidence to verify the start date of the

CPA.

The first contract document with

manufacturer has been provided as

evidence to verify the start date of the

CPA No.001.


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7.Additionality: Each CPA must be able to demonstrate

that the Project Activity which forms the CPA would

not have occurred anyway due to an investment barrier

by following and applying all steps of the additionally

assessment as set out in sections E.5.1 and E.5.2 of this

PoA-DD.

The CPA No.001 has undertaken an

additionality test in accordance with

section E.5.1 and E.5.2 of the PoA-DD.

The results of the additionality test

demonstrate that the Project Activity

which forms the CPA would not have

occurred anyway due to an investment

barrier therefore the CPA No.001 is

eligible to be included in the PoA.

8.

PoA Specific Requirements:

(i) Environmental Impact Analysis (EIA):

Each CPA which involves the implementation

of a Compost Facility with a compost output

capacity

i. Greater than or equal to 100tons per day shall provide a

copy of their EIA which has

been submitted to, and

approved by the Indonesian

Ministry of the Environment.ii. less than 100 tons per day,

shall provide a copy of the

Environmental Management

and Monitoring Plan

(EMMP) that was submitted

and approved by the

responsible Indonesian

authorities.

(ii) Compliance with Relevant National

Standards: Each CPA Project Activity must

comply with the relevant Indonesian Nationalor Regional Environmental Standard (i.e.

licenses and or permits that might be required

other than EIA and EMMP).

(iii) Stakeholder Consultation: Each CPA mustbe able to demonstrate with appropriate

documentary evidence that Stakeholder

Consultation has been undertaken in

accordance with the requirements of CDM

rules and procedures.

(i). The CPA No.001 has capacityless than 100 tons per day and

therefore EMMP that was

submitted and approved by the

responsible Indonesian

authorities has been provided.

(ii). The CPA No.001 has EMMPthat complies with relevant

national standard.

(iii). The CPA No.001 has conducteda stakeholder consultation

which was in accordance with

the requirement of CDM rulesand procedures.




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9.Debundling: To ensure A CPA is not a debundled

component of a large scale activity, the Project Activity

under each CPA must not:

(i) have the same activity implementer as theproposed small scale CPA or a coordinating

or managing entity, which also manages a

large scale PoA of the same

technology/measure which is within 1 km

of the boundary of the proposed small-scale

CPA, at the closest point.

The CPA No.001 is not a debundled

component of a large scale activity and

has no the same activity implementer as

the proposed small scale CPA or a

coordinating or managing entity, which

also manages a large scale PoA of the

same technology/measure which is

within 1 km of the boundary of the

proposed small-scale CPA, at the

closest point, therefore the CPA No.001

is eligible to be included in the PoA.

10.SSC Threshold Criteria: Each CPA shall not reduce

more than 60 kt CO2e annually.Project activity will reduce

approximately emissions of 10,130 tons

CO2 per year. This is well below the

maximum of 60,000 tCO2 per annum,



11.

Use of Development or Assistance Funds: Each CPA

must certify in writing whether any Development Aid orAssistance funds have been used for funding the

construction and operation of the Project Activity which

forms the PoA. If any Development Aid or Assistance

funds have been used, then before inclusion in the PoA,

the CPA owner must provide evidence to confirm that

such funds do not result in a diversion of any official

development assistance funds.

A Formal letter from the Responsible

Entity for the CPA001 has beenprovided certifying that no

Development Aid or Assistance funds

have been used for funding the

construction and operation of the

Project Activity which forms the CPA-

00 and therefore the CPA No.001 is

eligible to be included in the PoA.

B.3. Assessment and demonstration of additionality of the small-scale CPA , as per eligibilitycriteria listed in the Registered PoA:

>>

With awareness of the importance of CDM incentive to the project activity, Socfin Indonesias

management decided to proceed with the project after having input from CDM consultant concerning the

quantity of the emission reduction from the project.

Below table shows the CDM consideration steps for the project activity.

Date Event Source of document

9 April 2010 CDM Consulting Agreement between Agreement document


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Date Event Source of documentCDM consultant and PT.Socfin Indonesia

27 April 2010 Feasibility Study Report (FSR) FSR document

28 April 2010 Board Meeting of PT.Socfin Indonesia

(taken as decision date)

Signed Board Minute

27 September 2010 Stakeholder Consultation Meeting (SCM) SCM document

10 August 2010 Filling and sending Prior Consideration

Form for Co-Composting Project at

Bangun Bandar, Aek Loba, Tanah

Gambus and Lae Butar.

Form officially received and loaded ontoCDM Website 20 September 2010.

Filled Prior

Consideration of the

CDM form and formal

receipt from UNFCCC

11 October 2010 Prior consideration of the CDM form and

notification of DNA were sent to the

Indonesian DNA. Formal receipt of letter

from Indonesian DNA issued on 12

October 2010

Letter of intent to

commence CDM from

Socfindo and formal

receipt from

Indonesian DNA.

03 December 2010 Request of quotation to TUV Sud Email document

26 January 2010 Request of quotation to ERM Email document

14 February 2010 Request of quotation to TUV Nord Email document

08 June 2010 Contract for Validation Services signed

with DNV

Agreement document

01 July 2011 Start date of GSP period http://cdm.unfccc.int/P

rogrammeOfActivities

/Validation/DB/2MJW

8CICWDNRL1F72D

M11M3M8A6Q8M/vi

ew.html

04 July 2011 Start date of project activity Contract document

In accordance with key criteria and data for assessing additionality of a SSC-CPA listed in the PoA

section E.5.2, following information are the main economic parameters or indicators to be applied in the

projects financial analysis.

Project Data Data and Unit Source

Technical lifetime 20 years Technical provider information which is included in the

feasibility study report on page 8.

Investment Decision Date 28 April 2010 Board minutes of meeting

Date project starts operating 8 March 2012 Letter from Technology Provider

Annual compost production

t/year

30,000 tons/year Information from technology provider.

Estimated Fertilizer savings (If 2,256.36 million Feasibility study. As specific information was available
http://cdm.unfccc.int/ProgrammeOfActivities/Validation/DB/2MJW8CICWDNRL1F72DM11M3M8A6Q8M/view.htmlhttp://cdm.unfccc.int/ProgrammeOfActivities/Validation/DB/2MJW8CICWDNRL1F72DM11M3M8A6Q8M/view.htmlhttp://cdm.unfccc.int/ProgrammeOfActivities/Validation/DB/2MJW8CICWDNRL1F72DM11M3M8A6Q8M/view.htmlhttp://cdm.unfccc.int/ProgrammeOfActivities/Validation/DB/2MJW8CICWDNRL1F72DM11M3M8A6Q8M/view.htmlhttp://cdm.unfccc.int/ProgrammeOfActivities/Validation/DB/2MJW8CICWDNRL1F72DM11M3M8A6Q8M/view.htmlhttp://cdm.unfccc.int/ProgrammeOfActivities/Validation/DB/2MJW8CICWDNRL1F72DM11M3M8A6Q8M/view.htmlhttp://cdm.unfccc.int/ProgrammeOfActivities/Validation/DB/2MJW8CICWDNRL1F72DM11M3M8A6Q8M/view.htmlhttp://cdm.unfccc.int/ProgrammeOfActivities/Validation/DB/2MJW8CICWDNRL1F72DM11M3M8A6Q8M/view.htmlhttp://cdm.unfccc.int/ProgrammeOfActivities/Validation/DB/2MJW8CICWDNRL1F72DM11M3M8A6Q8M/view.htmlhttp://cdm.unfccc.int/ProgrammeOfActivities/Validation/DB/2MJW8CICWDNRL1F72DM11M3M8A6Q8M/view.htmlhttp://cdm.unfccc.int/ProgrammeOfActivities/Validation/DB/2MJW8CICWDNRL1F72DM11M3M8A6Q8M/view.htmlhttp://cdm.unfccc.int/ProgrammeOfActivities/Validation/DB/2MJW8CICWDNRL1F72DM11M3M8A6Q8M/view.htmlhttp://cdm.unfccc.int/ProgrammeOfActivities/Validation/DB/2MJW8CICWDNRL1F72DM11M3M8A6Q8M/view.html


19/51







compost reapplied to plantationbelong to the same company as

the mill and not purchased)

IDR from externally published sources in relation to thepercentage of fertilizer savings that would be able to be

achieved using that compost technology in that region,

Option A: specific fertilizer savings template was

used to calculate the estimated fertiliser savings.Currency 1 USD = 9,013 IDR

1 Euro = 12,049 IDR

Bank Indonesia currency rate calculator (middle rate dated

27 April 2010)

Capital and Equipment costs

(Note this will be broke down

appropriately into

subcomponents)

14,281 million IDR Feasibility study, quotation from technology supplier

CER revenue 3,510.25 million

IDR

Feasibility study (average per year)

Operation & Maintenance

cost: Comprises the following

major sub-components set out

below

1,864.68 million

IDR

Feasibility study report, board estimation, and technology

provider information

Fuel and Electricity Costs

(includes any fuel and power

costs directly related to the

Project Activity)

410.26 million IDR Government price index.

Labour Costs(includes

additional labour costs

directly as a result of theProject Activity)

420.80 million IDR Internal company estimation based on current labour rates.

Maintenance costs

(includes any electrical,

mechanic, civil maintenance

and or equipment

maintenance costs directly

related to the Project

Activity)

1,033.62 million IDR Technology provider information.

Land Rental Costs

(includes any rental costs for

land directly used for Project

Activity)

IDR n/a

Feedstock Costs

(Includes any costs for any

raw material feedstock inputs

into the Compost Facility)

IDR n/a

Ongoing licensing / royalty

costs(includes any ongoing

royalty or licensing costs

required to be paid by the

CPA owner directly in

relation to the Project

Activity)

IDR n/a

Insurance. % of CAPEX or IDR n/a


20/51







Project IRR (without CER

revenue)

-5.14 % Feasibility study report, financial analysis

Project IRR (including CER

revenue)

21.96 % Feasibility study report, financial analysis

Benchmark determination

As per PoA section E.5.2, the benchmark adopted for financial indicators is 12.5%.

Sensitivity analysis

As specified in the excel spreadsheet supplied to the DOE, a sensitivity analysis will be also conductedusing assumptions that are conservative from the point of view of analyzing additionality, i.e.

the bestcase conditions for the project IRR were assumed by altering the following parameters: (1)

project revenues; (2) total investment, and (3) O&M by +/- 10%.

The full result of each sensitivity analysis is listed in the following table:

Table 7: Sensitivity analysis of IRR project without revenue from CDM

FactorVariation

-10% 0% 10%

Project revenue -11.12% -5.14% -1.35%Project investment -4.31% -5.14% -5.87%

O&M Cost -1.93% -5.14% -9.75%

Below are the likelihood scenarios where the IRR would meet the benchmark by adjusting project

revenue, project investment, and O&M cost;

a. The project revenue is increased by 70%: This condition is unlikely since inorganic fertilizercost estimation is based on existing market price and the inflation rate is already taken into

consideration in the calculation of yearly fertilizer incremental cost saving. This makes the current

cost saving calculation based on the most conservative approaches possible.

b. The project investment is reduced by 80%: This condition is unlikely since project costestimation is based on quotations from the technology provider and the actual expenses will not be

much different from the quotation.

c. The O&M costs are reduced by 85%: This condition is unlikely since the O&M cost is estimatedbased on existing market fuel price, existing operational man power cost, and technology provider

cost estimation. Furthermore, the maintenance cost of wheel loader, truck, compost spreader

machine and its truck, is not included in the financial analysis calculation. This makes the current

estimated operation and maintenance cost calculated already the most conservative approach

possible.


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Within a reasonable variation of the project revenue, the project investment, and operation andmaintenance cost, the calculated pre-tax project IRR result remains consistently below the benchmark.

Thus the project is financially unfeasible and therefore the project is deemed additional.

The revenue from CER makes the pre-tax project IRR become 21.96%, taking it just above the

benchmark of 12.5%. Therefore it is only the addition of the CER revenue that can lift the Project IRR

from -5.14% to 21.96% to take the Project over the Benchmark of 12.5% and make the Project

financially feasible. Therefore the Project requires CDM to be financial feasible and is clearly

additional.

B.4. Description of the sources and gases included in the project boundary and proof that the

small-scale CPA is located within the geographical boundary of the registered PoA.

>>The project boundary of the project activity is defined in below figure:

Palm Oil Mill

EFB pre-treatment

Fat pit/holding tank

Co-composting

PlantPlantation

EFB dumpsite

Existing anaerobic lagoon

EFB

POME

EFB

POME

Legend :

Project condition

Baseline condition

Project Boundary

The GHG emission sources included in or excluded from the project boundary are as follows:

Source Gas Included? Justification/Explanation

Baseline

Biomass disposed

in an unmanaged

landfill / dumpsite

CO2 No

CO2 emissions from biomass

decomposition at solid waste disposalsites are considered as GHG neutral

CH4 Yes

Methane emission from decomposition

of EFB left in the solid waste disposal

site.

N2O NoExcluded for simplification. This is

conservative.

POME Treatment

in open lagoonsCO2 No

CO2 emissions from anaerobic

digestion of POME are considered as

GHG neutral.


22/51







CH4 YesMethane emissions from anaerobicdigestion of POME in open air

lagoons.

N2O NoExcluded for simplification. This is

conservative.

ProjectActivity

CompostingProcess

CO2 No

CO2 emissions from composting

process are considered as GHG

neutral. Expected to be minimum and

excluded for simplification

CH4 No

The project activity involves the

forced aerated system, online oxygen

monitoring system, online temperaturemonitoring system, and online

methane monitoring system. This

means overall co-composting process

will be maintained in aerobic

condition.

N2O No

Excluded for simplification. This

emission source is assumed to be very

small.

Emission fromrunoff water from

the composting

yard

CO2 No



small.

CH4 No

The project activity involves the

roofed bunker system. The roof will

cover the co-composting from the rain.

N2O No



small.

Electricity

CO2 No

The mill facility is equipped with two

biomass steam turbines power

generation. The emission occurred due

to biomass will be considered as

neutral carbon.

CH4 NoExcluded for simplification. Thisemission source is assumed to be very

small.

N2O No



small.

Incremental use of

fossil fuels for

transportation,

auxiliary

equipment due to

CO2 Yes

The project activity will utilize a

spreader machine to re-apply the final

compost product to the plantation. The

spreader machine will use fossil fuel

(diesel oil) in the daily operation.


23/51







projectCH4 No

Excluded for simplification. Thisemission source is assumed to be very

small.

N2O No



small.

B.5. Emission reductions:

B.5.1. Data and parameters that are available at validation:

>>Data / Parameter:

Data unit: -

Description: Model correction factor to account for model uncertainties

Source of data used: -

Value applied: 0.9

Justification of the

choice of data or

description of

measurement methods

and procedures

actually applied :

In accordance with the Tool to determine methane emissions avoided from

disposal of waste at a solid waste disposal site version 05.1

Any comment: Oonk et el. (1994) have validated several landfill gas models based on 17

realized landfill gas projects. The mean relative error of multi-phase models

was assessed to be 18%. Given the uncertainties associated with the model and

in order to estimate emission reductions in a conservative manner, a discount of

10% is applied to the model results.

Data / Parameter: OX

Data unit: -

Description: Oxidation factor (reflecting the amount of methane from SWDS that is

oxidized in the soil or other material covering the waste)

Source of data used: IPCC 2006 Guidelines for National Greenhouse Gas Inventories, Volume 5,

chapter 3.Value applied: 0


choice of data or

description of

measurement methods

and procedures actually

applied :

The shredded EFB is directly dumped in the plantation and therefore

categorized as unmanaged and uncategorized SWDS

Any comment: -

Data / Parameter: F


24/51







Data unit: -Description: Fraction of methane in the SWDS gas (volume fraction)

Source of data used: IPCC 2006 Guidelines for National Greenhouse Gas Inventories

Value applied: 0.5


choice of data or

description of

measurement methods

and procedures

actually applied :



Any comment: This factor reflects the fact that some degradable organic carbon does not

degrade, or degrades very slowly, under anaerobic conditions in the SWDS. Adefault value of 0.5 is recommended by IPCC

Data / Parameter: DOCf

Data unit: -

Description: Fraction of degradable organic carbon (DOC) that can decompose


Value applied: 0.5


choice of data or

description of

measurement methods

and procedures

actually applied :



Any comment: -

Data / Parameter: MCF

Data unit: -

Description: Methane correction factor


Value applied: 0


choice of data or

description of

measurement methods

and procedures

actually applied :

None of solid waste disposal site meets the requirement of solid waste disposal

site categorised in the Tool to determine methane emissions avoided from

disposal of waste at a solid waste disposal site version 05.1 found by DOE

during site visit, therefore the MCF is considered as 0.

Any comment: The methane correction factor (MCF) accounts for the fact that unmanaged

SWDS produce less methane from a given amount of waste than managed

SWDS, because a larger fraction of waste decomposes aerobically in the top

layers of unmanaged SWDS

Data / Parameter: DOCj

Data unit: -


25/51







Description: Fraction of degradable organic carbon (by weight) in the waste typejSource of data used: IPCC 2006 Guidelines for National Greenhouse Gas Inventories (adapted from

Volume 5, Tables 2.4 and 2.5)

Value applied: 20%


choice of data or

description of

measurement methods

and procedures

actually applied :

As perthe Tool to determine methane emissions avoided from disposal of

waste at a solid waste disposal site version 05.1, In the case of empty fruit

bunches (EFB), as their characteristics are similar to garden waste, the

parameter value correspondent of garden shall be used.

Any comment: -

Data / Parameter: kj

Data unit: -

Description: Decay rate for the waste typej

Source of data used: IPCC 2006 Guidelines for National Greenhouse Gas Inventories (adapted from

Volume 5, Table 3.3)

Value applied: 0.17


choice of data or

description of

measurement methods

and proceduresactually applied :

As perTool to determine methane emissions avoided from disposal of waste at

a solid waste disposal site version 05.1, In the case of empty fruit bunches

(EFB), as their characteristics are similar to garden waste, the parameter values

correspondent of garden waste shall be used.

Tropical (MAT > 20oC)Wet climate (MAP > 1000 mm)

Any comment:

Data / Parameter: COD,BL,iData unit: -

Description: COD removal efficiency of the baseline treatment system i

Source of data used: Calculation, based on COD historical data of wastewater entering and leaving

the baseline wastewater treatment system.

Value applied: 99.4%


choice of data ordescription of

measurement methods

and procedures

actually applied :

Parameter is used to determine the COD removal of the wastewater treatment in

the baseline scenario

Any comment: The wastewater leaving the baseline of wastewater treatment system refers to

the wastewater discharged to the river

Data / Parameter: NCVdiesel oil

Data unit: TJ/Gg

Description: Net Calorific Value of Diesel Oil


26/51







Source of data used: IPCC 2006 Guidelines for National Greenhouse Gas InventoriesValue applied: 43.3Justification of the

choice of data or

description of

measurement methods

and procedures

actually applied :

Value is obtained from default value of the IPCC 2006, volume 2: Energy

(Table 1.2)

Any comment: -

Data / Parameter: EFCO2, diesel oil

Data unit: kg/TJDescription: CO2 emission factor of Diesel OilSource of data used: IPCC 2006 Guidelines for National Greenhouse Gas Inventories

Value applied: 74,800Justification of the

choice of data or

description of

measurement methods

and procedures

actually applied :

Value is obtained from default value of the IPCC 2006, volume 2: Energy

(Table 1.3)

Any comment: -

Data / Parameter: Densitydiesel oil

Data unit: kg/litre

Description: Density of Diesel OilSource of data used: http://www.pertamina.com/index.php/detail/read/minyak-diesel

Value applied: 0.840Justification of the

choice of data or

description of

measurement methods

and procedures

actually applied :

Value is obtained from PERTAMINA (diesel oil main supplier).

Any comment: -

B.5.2. Ex-ante calculation of emission reductions:

>>

A. Baseline Emission

Following equation is to determine baseline emission according to AMS-III.F version 10:

4,,,4,,,4 _CHGWPMDBEBEBEBE regyymanureCHywwySWDSCH
http://www.pertamina.com/index.php/detail/read/minyak-dieselhttp://www.pertamina.com/index.php/detail/read/minyak-dieselhttp://www.pertamina.com/index.php/detail/read/minyak-diesel


27/51







Where:BECH4,SWDS,y Yearly methane generation of potential solid waste composted by the project

activity during the years x from the beginning of the project activity (x=1) up to

the year y estimated as per the latest version of the Tool to determine methane

emissions avoided from disposal of waste at a solid waste disposal site (tCO 2e).

The tool may be used with the factor f=0.0 assuming that no biogas is captured

and flared. With the definition of year x as the year since the project activity

started diverting wastes from landfill disposal, x runs from the first year of

crediting period (x=1) to the year for which emissions are calculated (x=y)

MDy,reg Amount of methane that would have to be captured and combusted in the year y

to comply with the prevailing regulations (ton)

BECH4,manure,y Where applicable, baseline emissions from manure composted by the project

activities, as per the procedures of AMS-III.D

BEww,y Where applicable, baseline emissions from the wastewater co-composted,

calculated as per the procedures in AMS-III.H

GWP_CH4 GWP for CH4 (value of 21 is used)

Baseline emission due to methane generation potential of the solid waste composted:

jjkxyk

jxj

y

x

fCHySWDSCH eeDOCWMCFDOCFOXGWPfBE 112

1611 ,

1

4,,4

Where:

BECH4,SWDS,y Methane emissions avoided due to prevention of waste disposal at the solid waste

disposal site (SWDS) during the year y, from the start of project activity to the end

(tCO2e)

Model correction factor to account for model uncertainties (0.9)

f Fraction of methane captured at the SWDS and flared, combusted or used in another

manner (0 )

GWPCH4 Global Warming Potential (GWP) of methane (21)

OX Oxidation factor (reflecting the amount of methane on SWDS that is oxidised in the soil

or other material cover the waste) (0)

F Fraction of methane in the SWDS gas (volume fraction) (0.5)

DOCf Fraction of degradable organic carbon (DOC) that can decompose (0.5)


28/51







MCF Methane correction factor (0)

Wj,x Amount of organic waste type j prevented from disposal to the SWDS in year x

(18,732.61ton)

DOCj Fraction of degradable organic carbon (by weight) in the waste type j (0.2)

kj Decay rate for the waste type j (0.17)

j Waste type category (index)

x Year during the crediting period: x runs from the first year of the first crediting period

(x=1) to the year y for which avoided emission calculated (x=y) (1)

y Year for which methane emission are calculated (1)

Therefore:

17.01117.0

1

11

,,4 12.061.732,1805.05.012

160121019.0 eeBE ySWDSCH

BECH4,SDWS,y = 0.00 tCO2e

As per AMS-III.H version 16, baseline emission from the wastewater co-composted may comprise of

methane emissions from baseline wastewater treatment systems (BEww,treatment,y) and methane emissions onaccount of inefficiencies in the baseline wastewater treatment systems and the presence of degradable

organic carbon in the treated wastewater discharged into river/lake/sea (BEww,discharge,y).

Baseline emission due to methane emission from baseline wastewater treatment system:

i

CHBLwwoiBLtreatmentwwiBLCODyilowyiwwytreatmentww GWPUFBMCFCODQBE 4,,,,,,,,inf,,,,

Where:

Qww,i,y Volume of wastewater treated in baseline wastewater treatment system i in year y.

For ex ante estimation, forecasted wastewater generation volume or the designed

capacity of the wastewater treatment facility can be used. (47,612.39 m3)

CODinflow,i,y Chemical oxygen demand of the wastewater inflow to the baseline treatment system

i in year y (0.0585 t/m3)

COD,BL,i COD removal efficiency6

of the baseline treatment system i (99.7 %)

MCFww,treatment,BL,i Methane correction7

factor for baseline wastewater treatment systems i (0.8)

6Determined based on paragraph 26,27 or 28 of methodology AMS-III.H version 16


29/51







i Index for baseline wastewater treatment system

Bo,ww Methane producing capacity of the wastewater (IPCC value of 0.25 kg CH4/kg

COD)

UFBL Model correction factor to account for model uncertainties (0.89)

GWPCH4 Global Warming Potential for methane (value of 21)

Therefore:

2189.025.08.0997.00.058547,612.39,,

ytreatmentwwBE BEww,treatment,y = 10,378.58 tCO2e

Baseline emission due to methane emissions on account of inefficiencies in the baseline wastewater

treatment systems and presence of degradable organic carbon in the treated wastewater

discharged into river/lake/sea:

yedischwwyBLedischwwblwoCHywwyedischww MCFCODUFBGWPQBE ,arg,,,arg,,4,,arg,

Where:

Qww,y Volume of treated wastewater discharged in year y (47,612.39 m3)

UFBL Model correction factor to account for model uncertainties (0.89)

CODww,discharge,BL,y Chemical oxygen demand of the treated wastewater discharged into sea, river or

lake in the baseline situation in the year y (0.0002 t/m3).

MCFww,BL,discharge,y Methane correction factor based on discharge pathway in the baseline situation8(river) of the wastewater (0.1)

Therefore:

1.00002.089.025.02147,612.39,arg, yedischwwBE

BEww,discharge,y = 4.38 tCO2e

B. Project Emission

Project emissions that might occur due to the co-composting process is listed as following:

a. CO2 emissions due to incremental transportation distances;b. CO2 emissions from electricity and/or fossil fuel consumption by the project activity facilities;

7MCF values as per Table III.H.1 in the methodology AMS-III.F version 16

8MCF values as per Table III.H.1 in the methodology AMS-III.H version 16


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c. Methane emissions during composting process;d. Methane emissions from runoff water;e. In case the compost is stored under anaerobic conditions and/or delivered to a landfill: the methane

emissions from the disposal/storage of compost.

Thus, total project emission from co-composting process is summarized using equation below:

reswasteyrunoffycompypowerytranspyy PEPEPEPEPEPE ,,,,,

Where:

PEy Project activity emissions in the year y (tCO2e)

PEy,transp Emissions from incremental transportation in the year y (tCO2e)

PEy,power Emissions from electricity or fossil fuel consumption in the year y (tCO2e)

PEy,comp Methane emissions during composting process in the year y (tCO2e)

PEy,runoff Methane emissions from runoff water in the year y (tCO2e)

PEy,reswaste In case the compost produced is subjected to anaerobic storage or disposed in a landfill:

methane emissions from the anaerobic decay of the residual organic content (tCO2e)

Project emission from incremental transportation:

The co-composting facility is located in the boundary of the project activity; this means no incremental

transportation distance for both POME and EFB, therefore project emissions due to transportation of

EFB and POME to the co-composting facility is considered as zero. This means Qy, CTy,DAFw,

DAFtreatment are not necessarily deemed to be monitored. However, the Qy,treatment is to be monitored by

PT.Socfin Indonesia for internal data purpose.

In the case of final compost product handling, the Project Activity involves truck and spreader tractor,

which are using diesel oil as the fuel in the operation. For that the project emission for final compost

product handling of the project activity is calculated based on Tool to calculate project or leakage CO2

emissions from fossil fuel combustion (EB 41 annex 11).

Following equation is to determine the project emission from transportation:

2,.2, // COtreatmenttreatmentytreatmentyCOwyytranspy EFDAFCTQEFDAFCTQPE

Where:

Qy Quantity of raw waste/manure treated and/or wastewater co-treated in the year y

(18,732.61ton)

CTy Average truck capacity for transportation (6 ton/truck)


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DAFw Average incremental distance for raw solid waste/manure and/or wastewater

transportation (0 km/truck)

EFCO2 CO2 emission factor from fuel use due to transportation (kgCO2/km, IPCC default values

or local values may be used)

Qy,treatment Quantity of compost produced in year y (28,098.91 ton)

CTy,treatment Average truck capacity for compost transportation (6 ton/truck)

DAFtreatment Average distance for compost transportation (0 km/truck)

Therefore:

22, 06/91.098,2806/18,732.61 COCOtranspy EFEFPE PEy,transp = 0

Project emission due to fossil fuel combustion for final compost transportation:

The project emission due to fossil fuel (diesel oil) combustion is calculated based on estimation of fossil

fuel consumption of the spreader machine. The estimation9of diesel oil consumption is approximately

76,582.36 kg per year. The actual emission during monitoring period will be calculated based on actual

fossil fuel consumption.

The project emission from fossil fuel combustion is calculated as following10

:

dieseloilCOdieseloilydieseloilyFC EFNVCFCPE ,2,,

Where:

FCdiesel oil,y Fossil fuel (diesel oil) consumption in year y (kg) (76,582.36 )

NCVdieseloil Net calorific value of diesel oil (TJ/Gg) (43.3)

EFCO2,dieseloil CO2 emission factor of diesel oil (kg/TJ) (74,800)

Therefore:9

, 10800,743.4336.582,76

yFCPE PEFC,y = 248.04 tCO2e

Project emissions from electricity or fossil fuel consumption:

The Mill Facility is equipped with two biomass steam turbines power generation which have capacity of

500 kW and 520 kW, and therefore the emission from the electricity generation is considered as carbon

9The estimation is taken from specific fuel consumption of Mitsubishi Diesel Engine (Feasibility Study Report)

10Project emission from fossil fuel combustion is based on Tool to calculate project or leakage CO2 emissions from

fossil fuel combustion version 2. Option B is used due to uncertainty of availability data of tC/mass unit of the fuel.


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neutral. In the normal condition, the mill facility requires approximately 500 kW for the overalloperational system. Therefore, the mill facility still has power excess of 520 kW, of which 250 kW will

be utilized by co-composting plant.

Project emissions due to methane emission during composting activity:

As per methodology AMS-III.F version 10, EFcomposting can be set to zero for the portions ofQy if the

monitored oxygen content of the composting process in all points within the windrow are above 8%. This

can be done via sampling with maximum margin of error of 10% at a 90% confidence level. For this

purpose, a portable oxygen meter can be used with lancets of at least 1 m length. In the case of forced

aerated in-vessel and forced aerated pile composting systems, continuous measurements may also be

done using online sensor(s). Since the Project Activity involves the forced aerated bunker system, which

comprise of oxygen and temperature continuous online monitoring system (prescribed in section A.4.1),

the project emission from co-composting process is considered as zero.

Project emissions from runoff water from the composting yard:

The Project Activity is using the roofed Aerated Bunker Co-composting System or ABC System. The

roof will cover the bunker from the rain; therefore the runoff water from the rain will not occur

(Qy,ww,runoff and CODy,ww,runoffare not necessarily monitored). Furthermore, the ABC system will re-apply

or re-circulate the un-utilized POME in the co-composting process through a circulator POME pump, and

therefore the emission due to runoff water is considered as zero.

Project emission due to methane emissions from anaerobic storage and/or disposal in a landfill:

The final compost product will be directly spread in the plantation and will not be stored in anaerobic

storage and/or dispose in a landfill; therefore the project emission from anaerobic storage and/or disposal

in a landfill is considered as zero.

C. Leakage Emission

Project technology implemented is brand new and not transferred from another facility, hence the leakage

emission is considered as zero.

D. Emission Reduction

The emission reduction achieved by the project activity will be measured as the difference between the

baseline emission and the sum of the project emission and leakage, described as following equation:

)( yyyy LEPEBEER

Where:

ERy Emission reduction in the year y (tCO2e)

BEy Baseline emission in the year y (tCO2e) (10,378)


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PEy Project emission in the year y (tCO2e) (248)

LEy Leakage emissions in year y (tCO2e) (0)

6511- cpa dd specific_26jun2012

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