JCM Project Planning Study (PS) 2014 – Final Report

MOEJ/GEC JCM Project Planning Study (PS) 2014
Summary of the Final Report“Introduction of Energy-from-Waste Project in Ho Chi Minh City”(Implementing Entity: Hitachi Zosen Corporation,
K.K. Satisfactory International)
1．Overview of the Proposed JCM Project
Study partners

E.J. Business Partners
Center for Environment Technology Management (ETM)

Project site
Category of
project

Ho Chi Minh City, Viet Nam
Waste/ Biomass, Energy industries (renewable - / non-renewable sources)
The project incinerates MSW currently disposed at the Phuoc Hiep Landfill togenerate electricity to supply to the grid based on the support mechanism for Energy

Description ofprojectfrom Waste projects. The project contributes to reduce GHG emissions by avoiding
methane emissions from the landfill and by replacing the grid electricity. It also
contributes to utilize the waste generated in the city, reduce landfilled waste andintroduce integrated waste management systems in Ho Chi Minh city.

Expected project
implementer

Hitachi Zosen Corporation, K.K. Satisfactory International andJapan

E.J Business Partners Co., Ltd.
Host country

Special Purpose Company (SPC) established by implementers.

Initial investment

JPY6,250,000,000

Annualmaintenance cost

JPY365,000,000

Willingness toinvestment

Date of groundbreaking

February 2016

Construction period

24 months

Date of projectcommencement

February 2018

All of the project
implementers is willingto invest
Initial investment amount is 62.5 Million USD (about 6.25 Billion JPY, 1 USD =100 JPY); project development cost 5 Million USD, 50 Million USD for plantdesign, procurement, and construction cost (Assuming a cost until completion

Financial plan ofproject

including the commissioning of waste power generation facility) with additional 7.5
Million USD for incidental equipment.
For funding plan, 40%(25 Million USD) from JCM equipment auxiliary, 42%(26.25 Million USD) from local bank loan, 18% (14.66 Million USD) from our own
capital.

GHG emission
reductions

Green House Gas(GHG) Emissions Reduction: 2,052 to 46,92 1tCO2/year

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JCM Project Planning Study (PS) 2014 – Final Report

Reference Emissions:① Avoidance of CH4 emissions from a SWDS: 95,061 to 107,231tCO2/year② Grid connected electricity generation from waste: 27,256 to 35,044tCO2/year
Project Emissions: 85,911 to 128,053tCO2/year
The emissions reductions potential is 307,800 to 7,038,150tCO2/year based on thewaste amount of 90,000t/day in the country by year 2025.

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JCM Project Planning Study (PS) 2014 – Final Report

2. Study Contents(1) Project development and implementation
1) Project planning
About project planning implementation system, following entity joined this project: Hitachi Zosen
Corporation (Hitachi Zosen) and K.K. Satisfactory International (KKSI) from Japan and a special purpose
company (SPC) established in Vietnam by the companies from Japan managed all project.
Participants from Japan collected and analyzed the data for application technologies and business enterprise
to make Project Design Document (PDD), then completed.

① History of negotiation with Ho Chi Minh City for investment certificate.
In Aug. 2014, we send the principle approval letter to Ho Chi Minh City People’scommittee (HPC) and started negotiation to receive the investment certificate. For about 5
months of negotiation, after having meeting with HPC on 30th Jan, we finally received
principle approval letter on 3rd February, 2015.
② Research the candidate place of construction.
Based on the report from DONRE to HPC on 3rd Dec., 2014, we made research Tay Bac
waste management complex for the candidate of construction. In Ho Chi Minh City waste
master plan, it is written that the complex is planned for the project of Energy from
Waste(EfW).

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JCM Project Planning Study (PS) 2014 – Final ReportResearch about utility condition
We researched the utility conditions and the result is as follows: We list the utility
condition as follows for plant construction. The infrastructure around the site will bemaintained by HCMC. The gain over into the site will be done by vendor.
Electricity

To connect to the grid of EVN(22kV) and lower to 220V for use. The generated electricity will
be supplied to a transmission station of 110kV.



Water

Well water and purchase water

Fuel

DieselWaste water

Recycle as much as possible within EfW facility. Effluent is treated and discharge to the canalRain water

Discharge to the canalTelephone/Internet

To get connection from the border

Grid electricity connection
Based on research to Department of Industry and Trade (DOIT), the load capacity of Tay
Bac SWDS’s (SWDS: Solid Waste Disposal Site) 22kV line is 5MW. In this project, we plan
to sell about 10MW and researched to make it possible, we found that the grid system thatis constructing Duc Hoa Transmission which is 800 meters away from Tay Bac SWDS is
feasible.

Tay Bac WM
complexTransmission(220kV/110kV)



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JCM Project Planning Study (PS) 2014 – Final Report③ Consideration of target waste
In the report from DONRE to HPC on 3rd Dec. 2014, compost residue, municipal solid
waste after source separation, scarify waste from landfill are the candidate of target waste
for EfW. To consider target waste, we estimated the amount of waste and arranged thesituation of collecting, transporting, and processing of the waste and composition of themunicipal waste. Referring these data, we set the target waste processing plan.
④ Initial investment/O&M cost
Investors and investment ratio of capital (1.466 billion yen) for the SPC, we considered as follows:
Hitachi Zosen: 95% (1.393 billion yen), KKSI 2.5% (37 million yen), and EJBP: 2.5% (37 million yen).

Initial Investment
Cost①PJ Develompment②EfW facility construction（Details） Civil engineering
Electric engineering
Equipment/Material
Design management
Grid connection, waste③Others
water, etc..
Total

O&M cost
Cost① Labour（20yrs ave.）② Maintainance/Supply（ “ ）③ Other cost （ “ ）TotalAmountUSD 5,000,000
USD50,000,000
USD 3,000,000
USD 4,000,000
USD 40,000,000
USD 3,000,000
USD 7,500,000

AmountUSD 623,000
USD1,992,000
USD 1,031,000
USD 3,646,000

USD 62,500,000⑤ Financial Plan for the initial investment
Total is about 65.91 Million USD: Plant construction fee: 62.5 Million USD plus 3.41 Million USD forinterests during construction. For funding plan, 40%(25 Million USD) is from JCM equipment auxiliary,
42% (26.25 Million USD) from local bank loan, 18% (14.66 Million USD) from our own capital.
1,466

Total
Project

JCM Grant

40%

2,500

Debt
Local Banks (VND),
and/or JICA (USD)

42%

2,625

18%

1,125

-

341

EquityInterest
6,250

100%

(Mil JPY)

Others

5%

73.3

Hitz

95%

1,392.9

100%⑥ Business feasibility and sensitivity analysis
The profitability of the project was calculated based on the assumptions below. The projectIRR (P-IRR) and Equity IRR (E-IRR) of 20 years are calculated as 14.4% and 17.4%

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JCM Project Planning Study (PS) 2014 – Final Reportrespectively. The project is assumed to be feasible enough. Also, we made the sensitivity
analysis based on optimistic and pessimistic scenarios. As a result, we confirmed that the
selling process of the electricity affect business profitability. To increase the IRR, we needto decrease the business fee (62.5 Million USD), increase the subsidy rate(40%, 25 Million
USD), investigation of I&M fee, increase of the operation hours.
Prerequisite condition for business feasibility
Item

Conditions

Remarks

Project period

20 years

BOT contract with Ho Chi Minh City.

600t/day

300 days x 24 hours/day = 7,200 hours of

Waste

disposalamountoperation

Outsourcing disposal

20USD/t. 3% increase per year.

In current state, maximum price of Ho Chi

commissions(T/F)
Amountofpower

Minh City.
64,800,000 kWh/year

Amount of power sold: 9.0 MW x 7,200

soldElectricity sales pricehours
10.05 cent/kWh *fixed

The president decisions regarding energy
from waste auxiliary program (FiT) in May
2014.

Other income

None

Compost, recycled products, heat utilization,and so on.

Depreciation

20

years

for

civil

engineeringandstraight line method

construction, 7 years for mechanical andelectrical construction.
Tax and dues

4 years of corporate tax exemption after thePreferential tax rate based on the investment

revenue generated: 0%

incentives system such as wastes was

50 % reduction of favorable taxation until 13

applied.

years :5%
Favorable taxation until 15 years: 10%
Normal taxation until 20 years: 20%
Debt

By VND. 10% annual, 2 year extension and8 year redemption.

Price fluctuation

Inflation rate of employment and item cost in
Vietnam: 7.5%

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Banking institution in Vietnam

JCM Project Planning Study (PS) 2014 – Final Report

Sensitivity analysis

T/F

Optimistic scenario

Basic

Pessimistic scenario$30/t w ESC. 0.0%

$20/t(2017) w ESC. 3.0%

$20/t w Esc. 0.0%

(Maximum value from DONRE(Minimum

report)

DONRE report)

Electricity

FiT + Esc. 3%

FiT + Esc. 0%

Price

10.05 cent/kWh(2013)10.05 cent/kWh(2013)

Project Cost

62.5 Million USD

Subsidy

25 Million USD

Loan

Local Soft Loan

Local 2step loan

Interest rate 6％ (VND)

JICA/WB loan through local banks.

value

from

4.0 cent/kWh + Esc. 3%

VEPF, HFIC, etc government Interest rate 10％ (VND)
fund. No foreign exchange risk. TSL applied from local bank received by JICA and WB.
Unredeemed for 2 years and 8 There is no foreign exchange risk. Unredeemed for 2 years
years for payment.

20.0

Sensitivity Analysis (P-IRR)
16.70

15.0
14.4％

and 8 years for payment.

25.0

16.80
14.90

20.0
17.4%
15.0

13.00

Sensitivity Analysis (E-IRR)
21.70

20.80

20.90

15.40

10.0
10.0
7.00

9.00

5.0

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Loan Ratio (% annum)( VND10% - VND6%)Power Sales Unit Price（US cent/kwh）(4.1+Es3% - 10.05fix - 10.05+Es3%)

Tipping Fee（USD/t）(20fix - 20+Es3% - 30fix)-

Loan Ratio (% annum)( VND10% - VND6%)Power Sales Unit Price（US cent/kwh）(4.1+Es3% - 10.05fix - 10.05+Es3%)

Tipping Fee（USD/t）(20fix - 20+Es3% - 30fix)-

5.0

JCM Project Planning Study (PS) 2014 – Final Report⑦ Risk Analysis
The risks at each stage of project planning, construction of the EfW facility, operation andproject transfer were listed. The policy and necessity of measures were decided.

2) Permits for License
We submitted the principle approval request letter to HPC on August 5th, 2014, and we received the principle
approval letter on February 3rd, 2015. Future plans of project approval acquisition are as follows:3) Advantage of Japanese technology
Identification of competing technologies
There are 14 waste incineration facilities for MSW in 9 cities in Vietnam. The biggest waste treatment
capacity is 150t/day and other facilities are less than 50t/day and initial investment cost is less than 50Billion
VND. Therefore, the most of MSW is still landfilled and it is reasonable to assume that the competing
technology is landfilling.
Methane fermentation of organic waste is considered as competing technology but complementing
technologies since EfW facility targets waste plastics and paper which are not treated by Methane
fermentation technology.

Comparison with competing technologies
The capacity of only EfW facility in the above list is 48t/day and electricity generation capacity is notdisclosed. The advantage of project technology is the waste treatment capacity of 600t/day and electricity
generation from the heat recovery.

4) MRV structure
Organization chart of MRV (Measurement, Reporting and Verification) for this project is as follows. SPC
will conduct MRV as a business operating company. And the SPC will contract out information collection to
Hitachi Zosen Vietnam, and contract out preparing a report that calculates GHG reduction to Satis.

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JCM Project Planning Study (PS) 2014 – Final Report

The Flow of preparing a report is as below. Monitoring items are the amount of waste input, the amount offossil fuels used for waste incineration, and the volume of power selling. Data of these three items isaggregated into a central control room with other plant running data by monitoring system, and input torecord file as a daily report. A plant operator matches operating diary and actual operating condition, and aplant manager confirms it, too. Vice plant manager matches the carrying numerical values in the accounting
department and the operating diary. If necessary, vice plant manager corrects the data, and preparing MRV
report based on MRV monitoring plan. After approval by a project manager, vice plant manager submit thewritten to Satis. After calculating GHG reduction and making report, Satis will send these three documents togovernment officers for JCM.

5) Environmental integrity and Sustainable development in host country

Ensuring environmental integrity
Implementing this project will have both favorable effects and adverse effects to environmental aspects at
implementing site and surrounding area.

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JCM Project Planning Study (PS) 2014 – Final Report

・Favorable effects：
This project might contribute to reduce waste input to landfill site that are not well-organized, that means to
reduce the environmental pollution around landfill site. Under insufficient separate collection, in addition tocomposting from sorted organic waste, introducing a technology that can incinerate huge volume ofmunicipal waste, favorable effects on environmental aspects are expected more urgently, for example
reducing methane gas, foul odor, and leachates from landfill site.
・Adverse effects：
This project has the potential to generate toxic substances such as heavy metals contained in the ash(especially fly ash). HCMC has responsibility to treatment way of ash so Hitachi Zosen will propose HCMC
safety treatment ways of fly ash, for example cement solidification.
Contribution to sustainable development
From the view point of consistency between this project and development strategy of Vietnam andcontribution to environmental remediation, through a survey for implement of this project, the following
contribution points was found to be expected.
Promotion of renewable energy use and resolution of energy supply problem



Improvement of waste management in urban areas (such as separate collection system)Reduction of input to the final disposal siteCorresponding to demand for advanced waste incineration power generation technology in Vietnam

The financial support by JCMContribution to GHG reduction and a low-carbon society of Osaka City and HCMC

6) Future plans and challenges① Targeted waste for EfW
To obtain the information about the targeted waste for EfW from HCMC, and fully examine the waste
composition an carrying route (including the operating status of the targeted waste at transfer station), and to
fix them. But, provided information data has possibility not to be enough or not be guaranteed. So, planed
data, will be set in the conditions which gave a margin for additional research and fluctuation range.
②Infrastructure of planed construction site
Getting information about planed construction site from HCMC, and conducted a field trip about utility
conditions(road accessing, water supplying and drainage, electricity substation, geological conditions) insurrounding area, and confirm targeted construction site.
Maintenance for infrastructure of construction site surrounding area is free given from Vietnam freely. But
conditions and not clear. So, after determination of construction site, confirmation to DONRE will be needed
for this project. Especially connection conditions of system cooperation will be given priority to confirm due
to large impact on profitability.

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JCM Project Planning Study (PS) 2014 – Final Report③ Condition for waste treatment contract and electricity sales contract
Negotiation will be based on the result of analysis for profitability of this research. Main negotiated points
are below. These points should be confirmed by signature of letter from government and proceedings. The
role and authority of each department of negotiating partner should be confirmed through additional
supporting research. In preparation for negotiations with the governments in Vietnam, advises from MoE,
Osaka city, consulate, JICA office, and legal experts in Vietnam are needed.
・Guarantee of waste treatment amountThe contract with existing contract, there is a consignment treating amount of warranty conditions. Based onthese conditions, consideration about compensation conditions to DONRE for failure to duty of providing
waste are required.
・Risk for delay of starting business
Due to delay of procedure for licenses and construction period, business starting has possibility to be delayed.
It is important to clarify such situations to contemplate and decide about contract condition.
・Applying supporting mechanism for EfW（Circular 32/2014/TT-BCT）
There is no applied case of this supporting mechanism. FIT (10.05cent/kwh) is very important point for
securing profitability. Preparation for applying documents and negotiation with related department should beprioritized.

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JCM Project Planning Study (PS) 2014 – Final Report(2) JCM methodology development
1) Eligibility criteria
This methodology is applicable to projects that satisfy all of the following criteria.
Criterion 1

To install incinerators that combust fresh MSW that would have been treatedat landfills.

Criterion 2

The project facility has boilers and turbines to generate electricity from theheat created by waste incineration.

Criterion 3

The incinerators are designed and equipped to achieve the following criteria.
Ignition loss: 5% or lessYearly operational period: Longer than 7200 hours

Criterion 4

The treatment capability of an incinerator is designed to be greater than
300t/day.

Criterion 5

The project facility is designed and equipped to satisfy the “National TechnicalRegulation on Emission of Industrial Waste Incinerators(QCVN30:2010/BTNMT)”.

2) Calculation of GHG emissions (including reference and project emissions)2-1) Reference emissions
Reference emissions are calculated on the basis of the amount and composition of the wastes that are fed into
the incinerators, and net electricity supplied to the grid by the project.

Reference emissions from SWDSs are calculated based on First Order Decay (FOD) model. Reference
emissions from grid electricity generation are calculated by multiplying the amount of electricity supplied to
the grid and CO2 emission factor.

The methodology ensures net emission reductions by including the CH4 and N2O emissions from waste
combustion both of which are negligible in the project emissions.
RE𝑝 = RE𝐶𝐻4,𝑆𝑊𝐷𝑆,𝑝 + RE𝑒𝑙𝑒𝑐,𝑝REpReference CO2 emissions during the period p [tCO2/p]

RECH4,SWDS,pReference emissions occurring during period p generated fromwaste disposal at a SWDS during a time period ending in period p[tCO2/p]REelec, p

Reference emissions from grid electricity during the period p[tCO2/p]I-26

JCM Project Planning Study (PS) 2014 – Final Report𝑝16
RE𝐶𝐻4,𝑆𝑊𝐷𝑆,𝑝 = φ𝑝 × (1 − f𝑝 ) × GWPCH4 × (1 − OX) ×× F × DOCf,𝑝 × MCF𝑝 × ∑ ∑ Wj,x × DOCj
12
x=1 j

×e

φp

−kj(𝑝−x)× (1 − e−kj)Model correction factor account for model uncertainties for theperiod p

fp

Fraction of methane captured at the SWDS and flared,
combusted or used in another manner that prevents theemissions of methane to the atmosphere during the period p

OX

Oxidation factor (reflecting the amount of methane from SWDS
that is oxidized in the soil or other material covering the waste)

F

Fraction of methane in the SWDS gas (volume fraction)

DOCf,pFraction of degradable organic carbon (DOC) that decomposes
under specific conditions occurring in the SWDS for the period p(weight fraction)

MCFp

Methane correction factor for the period p

Wj,pAmount of waste type j disposed or prevented from disposal in
the SWDS during the period p

DOCj

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

kj

Decay rate for the waste type jjType of waste in the MSW

xTime period in which waste is disposed at the SWDS, extending
from the first period in the time period (x=1) to period p(x=p)

pCrediting period for which methane emissions are calculated

RE𝑒𝑙𝑒𝑐,𝑝 = PEC𝑝 × EF𝑔𝑟𝑖𝑑

PECp

Net electricity amount supplied to the grid by the project during
the period p [MWh/p]

EFgridEmission Factor of the grid [tCO2/MWh]2-2) Project emissions
Project emissions are calculated on the basis of monitored fossil fuel consumption, waste amount and its
composition fed into the incinerators.
PEp = PEFC,p + PECOM_CO2,p + PECOMCH4N2O ,p
PEFC,pCO2 emissions from fossil fuel consumption during the period p [tCO2/p]

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JCM Project Planning Study (PS) 2014 – Final Report

PECOM_CO2,p

CO2 emissions from fossil waste combustion during the period p [tCO2/p]

PECOM_CH4N2O

CH4 and N2O emissions from waste combustion during the period p [tCO2/p],p

PE𝐹𝐶,𝑝 = FC,𝑝 × NCV𝑝 × EF𝐶𝑂2
FC,pAmount of fossil fuel consumption during the period p[t]NCVp

Net calorific value of the fossil fuel[GJ/t]

EFCO2

CO2 emission factor of the fossil fuel[tCO2/TJ]

PECOM_CO2,p = EFFCOM ×44
× ∑ Q j,p × FCCj,p × FFCj,p12
j

EFFCOM

Combustion efficiency of combustor

Qj,pQuantity of combusted waste type i [t]FCCj,pFraction of total carbon content in waste type j during the period p [tC/t]

FFCj,pFraction of fossil carbon in total carbon content of waste type j

PECOMCH4N2O ,p = Q waste,p × (EFN2O × GWPN2O + EFCH4 × GWPCH4 )Qwaste,pQuantity of waste fed into combustor during the period p [t]EFN2O

Emission factor of N2O associated with combustion [tN2O/t waste]

GWPN2O

Global Warming Potential of N2O

EFCH4Emission factor of CH4 associated with combustion [tCH4/t waste]

GWPCH4Global Warming Potential of CH42-3) Calculation of emissions reductions
Emission reductions are calculated as the difference between the reference emissions and project emissions,as follows:
ER 𝑝 = RE𝑝 − PE𝑝
ERp

GHG emission reductions during the period p [tCO2/p]2-4) Results of calculations
The emissions reductions are calculated based on the following assumptions.
■ Waste treatment amount: 600t/day■ Yearly operation: 300 days
■ Fossil fuel consumption: 121t/year

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JCM Project Planning Study (PS) 2014 – Final Report■ Waste composition (wet weight) and amount of electricity supply
The emissions reductions varies depending on the composition of the waste and the amount ofelectricity supply to the grid. Emissions reductions are calculated applying the different waste
composition and electricity supply to the grid.


Case 1: Prior sampling data of waste and electricity generation capacity of 9MW

Case 2: Prior sampling data of waste and electricity generation capacity of 7MW

Case 3: Prior sampling data with rate of plastics recycling rose 50%

Case 1Case 2

Case 3

Food waste

50.77

66.2

56.39

Shell – bone

1.13

1

1.25

Paper

2.93

3.1

3.26

Diaper

5.53

3.5

6.14

Plastic

19.97

17

11.11

Textile

12.86

5.8

14.28

Wood

1.02

0.6

1.13

Rubber – leather

3.17

0.7

3.52

Metal

0.64

0.2

0.71

Inorganic

1.76

1.6

1.95

Other

0.23

0.4

0.26

100%

100%

100%

Total

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JCM Project Planning Study (PS) 2014 – Final Report

Case 1■ Calculation of Reference emissions


Avoidance of methane from a SWDS
Year
1
2
3
4
5
6
7
8
9
10



34,644
24,58917,75913,095
9,890
7,668
6,110
5,002
4,199
3,604

34,644
24,58917,75913,095
9,890
7,668
6,110
5,002
4,199

34,644
24,58917,75913,095
9,890
7,668
6,110
5,002

34,644
24,58917,75913,095
9,890
7,668
6,110

34,644
24,58917,75913,095
9,890
7,668

34,644
24,58917,75913,0959,890

34,644
24,58917,75913,09534,644
24,58917,75934,644
24,5899
158,000
122,956
35,044
128,053380
124,296
3,377
29,947

10
161,604
126,560
35,044
128,053380
124,296
3,377
33,551

34,644

Total
34,644
59,23376,992
90,087
99,977
107,646
113,756
118,757
122,956
126,560

Total
1,301,047

Ave.
130,105

1,280,530

128,053

20,517

2,052

Electricity supply to the grid
64,800kWh×0.5408=35,044tCO2/year■ Calculation of Project emissions
Fossil fuel consumption
121t×43×0.0728=380tCO2/year

CO2 Emissions from fossil waste combustion
0.9×180,000t×37,666×3.67=124,296tCO2/year

GHG Emissions from combustion
180,000t×（0.0000605×310+0.000000242×25）=3,377tCO2/year■ Calculation of Emissions reductions
Year
1
REp
69,688
RECH4,SWDS
34,644
REelec35,044PEp
128,053
PEFC
380
PECOM_CO2
124,296
PECOM_CH4N2O
3,377
ERp
-58,3652
94,27759,23335,044
128,053380
124,296
3,377-33,7763
112,036
76,99235,044
128,053380
124,296
3,377-16,0174
125,131
90,08735,044
128,053380
124,296
3,377-2,9225
135,02199,97735,044
128,053380
124,296
3,377
6,968

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6
142,689
107,646
35,044
128,053380
124,296
3,377
14,636

7
148,800
113,756
35,044
128,053380
124,296
3,377
20,747

8
153,801
118,757
35,044
128,053380
124,296
3,377
25,748

JCM Project Planning Study (PS) 2014 – Final Report

Case 2■ Calculation of Reference emissions


Avoidance of methane from a SWDS
Year
1
2
3
4
5
6
7
8
9
10



41,36328,576
19,94914,113
10,152
7,451
5,597
4,315
3,418
2,782

41,36328,576
19,94914,113
10,152
7,451
5,597
4,315
3,418

41,36328,576
19,94914,113
10,152
7,451
5,597
4,315

41,36328,576
19,94914,113
10,152
7,451
5,597

41,36328,576
19,94914,113
10,152
7,451

41,36328,576
19,94914,113
10,152

41,36328,576
19,94914,11341,36328,576
19,94941,36328,57641,363

Total
41,36369,94089,888104,001
114,153
121,603
127,200
131,515
134,933
137,715

Total
1,344,875

Ave.
134,487

1,002,153

100,215

342,722

34,272

Electricity supply to the grid
50,400kWh×0.5408=27,256tCO2/year■ Calculation of Project emissions
Fossil fuel consumption
Same as case 1

CO2 Emissions from fossil waste combustion
0.9×180,000t×29,230×3.67=96,458tCO2/year

GHG Emissions from combustion
Same as case 1■ Calculation of Emissions reductions
Year
1
REp
68,620
RECH4,SWDS
41,363
REelec27,256PEp
100,215
PEFC
380
PECOM_CO2
96,458PECOM_CH4N2O
3,377
ERp
-31,5962
97,196
69,94027,256100,215380
96,4583,377-3,0193
117,145
89,88827,256100,215380
96,4583,377
16,9294
131,257
104,001
27,256100,215380
96,4583,377
31,042

5
141,409
114,153
27,256100,215380
96,4583,377
41,194I-31

6
148,859
121,603
27,256100,215380
96,4583,377
48,644

7
154,457
127,200
27,256100,215380
96,4583,377
54,241

8
158,771
131,515
27,256100,215380
96,4583,377
58,556

9
162,189
134,933
27,256100,215380
96,4583,377
61,97410
164,972
137,715
27,256100,215380
96,4583,377
64,756

JCM Project Planning Study (PS) 2014 – Final Report

Case 3■ Calculation of Reference emissions


Avoidance of methane from a SWDS
Year
1
2
3
4
5
6
7
8
9
10



38,47627,30919,723
14,544
10,984
8,517
6,786
5,555
4,663
4,003

38,47627,30919,723
14,544
10,984
8,517
6,786
5,555
4,663

38,47627,30919,723
14,544
10,984
8,517
6,786
5,555

38,47627,30919,723
14,544
10,9848,517
6,786

38,47627,30919,723
14,544
10,984
8,517

38,47627,30919,723
14,544
10,98438,47627,30919,723
14,54438,47627,30919,72338,47627,3099
163,814
136,557
27,25685,911
380
82,154
3,377
77,903

10
167,817140,560
27,25685,911
380
82,154
3,377
81,90638,476

Total
38,47665,78585,508100,052
111,036
119,553
126,339
131,894
136,557
140,560

Total
1,328,324

Ave.
132,832

859,11085,911

469,21446,921

Electricity supply to the gridSame as case 2■ Calculation of Project emissions
Fossil fuel consumption
Same as case 1

CO2 Emissions from fossil waste combustion
0.9×180,000t×27,256×3.67=82,154tCO2/year

GHG Emissions from combustion
Same as case 1■ Calculation of Emissions reductions
Year
1
REp
65,732
RECH4,SWDS
38,476
REelec27,256
PEp
85,911
PEFC
380
PECOM_CO2
82,154
PECOM_CH4N2O
3,377
ERp
-20,1792
93,04165,78527,25685,911
380
82,154
3,377
7,130

3
112,764
85,50827,25685,911
380
82,154
3,377
26,853

4
127,308
100,052
27,25685,911
380
82,154
3,377
41,397

5
138,293
111,036
27,25685,911
380
82,154
3,377
52,382I-32

6
146,809
119,553
27,25685,911
380
82,154
3,377
60,898

7
153,596
126,339
27,25685,911
380
82,154
3,377
67,685

8
159,150
131,894
27,25685,911
380
82,154
3,377
73,239

JCM Project Planning Study (PS) 2014 – Final Report3) Data and parameters fixed ex ante
The source of each data and parameter fixed ex ante is listed as below.
Parameter

Description of data

NCVp

SourceNet Calorific Value of fossil fuel [GJ/t]

IPCC 2006 Guidelines for National
Greenhouse Gas Inventories

EFco2

EFgridΦCO2 emissions factor for fossil fuel (diesel)

IPCC 2006 Guidelines for National[tCO2/GJ]Greenhouse Gas Inventories

CO2 emissions factor of electricity

Ministry of Natural Resources and[tCO2/MWh]

Environment, Vietnam/MONRE

Model correction factor account for model

CDM Methodological Tool

uncertainties“Emissions from solid waste
disposal site”(version 06.0.1)

GWPCH4OX

Global Warming Potential of methane

IPCC Fourth Assessment Report

Oxidation factor (reflecting the amount of

IPCC 2006 Guidelines for National

methane from SWDS that is oxidized in the soil

Greenhouse Gas Inventories

or other material covering the waste)F

DOCf

Fraction of methane in the SWDS gas (volume

IPCC 2006 Guidelines for National

fraction)

Greenhouse Gas Inventories

Fraction of degradable organic carbon (DOC)

IPCC 2006 Guidelines for Nationalthat decomposes under specific conditions

Greenhouse Gas Inventories

occurring in the SWDS (weight fraction)
MCF

Methane correction factor

IPCC 2006 Guidelines for National
Greenhouse Gas Inventories

DOCj

kj

Fraction of degradable organic carbon (byIPCC 2006 Guidelines for National

weight) in the waste type j (weight fraction)

Greenhouse Gas Inventories

Decay rate for the waste type j (1/year)

IPCC 2006 Guidelines for National
Greenhouse Gas Inventories

FCCj,pFraction of total carbon content in waste type j

CDM Methodological Tool
“Emissions from solid waste
disposal site”(version 06.0.1)

FFCj

Fraction of fossil carbon in total carbon content

CDM Methodological Toolof waste type j“Emissions from solid waste
disposal site”(version 06.0.1)

EFN2O

Emission factor of N2O associated with

CDM Methodological Tool

combustion“Emissions from solid waste
disposal site”(version 06.0.1)

GWPN2O

Global Warming Potential of N2O

CDM Methodological Tool
“Emissions from solid waste
disposal site”(version 06.0.1)

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JCM Project Planning Study (PS) 2014 – Final Report
EFCH4

Emission factor of CH4 associated with

CDM Methodological Tool

combustion“Emissions from solid waste
disposal site”(version 06.0.1)

GWPCH4Global Warming Potential of CH4

CDM Methodological Tool
“Emissions from solid waste
disposal site”(version 06.0.1)

EFFCOM

Combustion efficiency of combustor

CDM Methodological Tool
“Emissions from solid waste
disposal site”(version 06.0.1)

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JCM Project Planning Study (PS) 2014 – Final Report(3) Development of JCM Project Design Document (PDD)
1) Environmental impact assessment
1-2) Procedures
During the process of applying investment license, foreign investors must submit the Environment Impact
Assessment (EIA) report and must have environment license when they invest plant in Vietnam. So that we
charged ETM to make EIA report.

2) Local stakeholder consultation
2-1) Boundary of Local stakeholders
Central and local governmental bodies, such as Ho chi Minh city People’s committee (HPC), Ho Chi Minhcity Department of Natural Resources and Environment (DONRE), Vietnam Ministry of Natural Resources
and Environment (MONRE), Ho Chi Minh city Department of Industry and Trade (DOIT), Ho Chi Minh city
Department of Construction (DOC), Ho Chi Minh city Department of Planning and Investment (DPI).
Vietnam Electricity (EVN), Verification agency of EIA report, organizations and communities (Waste
management companies, Neighbors) affected by the project, are expected local stakeholders.

2-1) Comments from the Stakeholders
The comments were collected through the process of obtaining letter of In-principal agreement from HPC.

3) Monitoring plan
The monitoring of the parameters will be conducted by the Special Purpose Company (SPC) established by
the Japanese project participants for the project. Hitachi Zosen will train the operators who are employed tooperate the EfW facility including monitoring. The details of the monitoring structure and the flow of themonitoring data are as follows:

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JCM Project Planning Study (PS) 2014 – Final Report

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