JCM Feasibility Study (FS) 2014 – Final Report

MOEJ/GEC JCM Feasibility Study (FS) 2014
Summary of the Final Report“10MW – scale Biomass based Power Generation”(Implementing Entity: Obayashi Corporation, EX Research Institute Ltd.)
1．Overview of the Proposed JCM Project
Study partners

Sri Lanka Carbon Fund (Private) Limited. LTL Holdings (Private) Limited.

Project site

Ampara District, Eastern Province, Sri Lanka

Category of
project

1. Energy Industries (Renewable - / non-renewable resources)
This project involves Obayashi Corporation, the principal proponent of thisproject, procuring Gliricidia sepium (hereafter referred as Gliricidia), a fast
growing plant of the legume family through contract cultivation at Ampara
District in the Eastern province and formation of a local community , operating

Description ofproject

an electricity generation business that utilizes woody biomass and sellingelectricity generated to the national transmission network hence helping replacea part of electricity supplied to the national transmission network through fossil
fuel electricity generation plants , ultimately helping in the reduction of global
warming gases.

Expected project
implementerJapan

Obayashi Corporation

Host country

Sri Lankan Carbon Fund (Private) Limited

Initial investment

Date of
Approx. JPY 3,940 Million groundbreaking

April 2016

Annualmaintenance cost

Construction
Approx. JPY 677 Million period

24 months

Willingness toinvestment

Continuance of study with theassumption of investment after

Date of projectcommencement

April 20182015 approved by the board
Obayashi Corporation, by itself will invest 30-40% of the total project cost. Loanfrom the local financial bodies is planned for the remaining 60-70%. Contact has
Financial plan ofproject

already been made with international financial bodies with presence in Sri Lanka
and a positive response, albeit with a few pre conditions, have been received.
Obayashi Corporation will provide the majority of the business fund while thelocal partners will invest about 10-30%.

GHG emission
reductions

40,052 (tCO2/y)
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JCM Feasibility Study (FS) 2014 – Final Report

2. Study Contents(1) Project development and implementation
1) Project planning
Project implementation framework
The implementation framework of the Project is shown in the Figure 1. A Specific purpose company (SPC)
will be jointly established by Obayashi Corporation (hereafter referred to as “Obayashi”) and Sri Lanka Carbon
Fund (Private) Ltd (hereafter referred to as “SLCF”) as the operation entity of the Project. Details regarding
the establishment of SPC is currently being discussed between the two companies.

Figure 1. Project implementation framework
Installation plan of the plant
In the project, small scale power generation plant utilizing woody biomass will be developed. The facilities tobe installed for the project includes components related to power generation plant as well as those necessary
for biomass procurement and pretreatment. The table below shows the main facilities, equipment and units to
be installed in the project along with its procurement and installation plan.
Table 1. Outline of the installation plan
Items
Building and civil work
Power plant installation
Overhead
Total amount

Details
Preparation work, buildings, foundation forequipment and exterior etc.
Boiler, turbine, generator, water treatment facility etc.
Construction supervision work, engineering work,
test operation cost etc.
Excluding VAT and other taxes

Expected cost
(approx)
400 million yen
2,100 million yen
780 million yen
3,280 million yen

Operation plan
A 24 hours/day and 292 or more days/year operation is planned. In addition to the local operation staff to be
employed by the SPC, supervisor will be sent from Obayashi to maintain the operation. Where necessary,
operation may be outsourced to a company in Sri Lanka or in neighboring countries that has operation andmaintenance experience. Biomass fuel will be procured from the SPC to be established specially for the
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JCM Feasibility Study (FS) 2014 – Final Reportpurpose of biomass procurement (as shown in Figure 1.) and other sources. Consumables will be procured
from local suppliers. Maintenance will be done in-house and if in-house is not feasible then will be out-sourced
as per the recommendation of the equipment /plant manufacturer. The estimated operation and maintenancecost1 based on the assumptions stated above is shown in Table.2.
Table 1. Operation and maintenance cost
Details

Items
Manpower cost
Biomass fuel procurement
Other operation and maintenanceTotal amount

Personnel cost from Obayashi included
Chipping and drying process included
Office, regular maintenance, consumables,
inspection, insurance etc.
Excluding VAT and other taxes

Expected cost
(approx)
80 million yen
500 million yen
100 million yen
680 million yen

Company profile and experience of the project implementation company
Obayashi will be the project implementation company of the power generation project to be registered under
the JCM scheme. Company profile and project experience of the company is shown in Table 3.

Company nameLocation
Establishment
Registered capitalBusiness

:
:
:
:
:

Sales

:

ProfitEmployees
Experiences inrenewable energy
projects::

Table 2. Profile of Obayashi Corporation
Obayashi Corporation
Minato-ku, Tokyo, Japan
January 1892
57,752 million yen
Engineering and contracting of construction works, and other construction-related
businesses (domestic and overseas)
Real estate (domestic and overseas)
Power generation and supply of electricity and heatGreenhouse gases emission trading related business
Production, processing and sale of agricultural products2012 1.36 trillion yen (consolidated), 1.49 trillion yen (non-consolidated)2013 1.44 trillion yen (consolidated) ,1.137 trillion yen (non-consolidated)2012 31.1 billion yen (consolidated), 22.0 billion yen (non-consolidated)2013 35.1billion yen (consolidated), 14.2 billion yen (non-consolidated)
8,329 (As of March 2014)
July 2012 Established subsidiary company for renewable energy businessSolar power generation facility for 58MW capacity in 17 locations (as of August
2014)
Several feasibility studies on experimental project for off-shore wind powersystem

Evaluation of financial viability
Revenue expected from the project will be the sales of generated electric power to the Ceylon Electricity Board.
The purchase price of electric power from biomass based power generation as of 2014 is as shown in Table 4.

1

Assuming operation by SPC. Excluding overhaul cost.

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JCM Feasibility Study (FS) 2014 – Final Report

Table 3. Purchase price of electric power from biomass based power generation
Flux rate (LKR/kWh)Fixed rate (LKR/kWh)Operation cost
Fuel cost
1st period
2nd period.
3rd period(1-8 years)(9-15years)(16-20years)
1-15 years
1.52
12.25
9.67
3.72
16 year onward
1.90
2.11
Price adjustment rate
+5.16%+3.44%
Year

Based on the initial investment and operation cost (for the first year) shown in Table 5, financial viability is
estimated as shown in Table 5.
Table 5. Financial viability (summary)
Items
Value
Note
Initial investment
LKR 4,331 million
Sales
LKR 1,800 million Average in project period
Operation and maintenance cost
LKR 1,069 million Average in project period
IRR (20 years)
19.0%
Investment recovery period
5 years2) Permits and License for the project development and implementation
Project Owner will be requested to apply and obtain permit and license from competent authorities forrenewable energy, such as Sri Lanka Sustainable Energy Authority (SLSEA) and Public Utility Committee of
Sri Lanka, which is the sole authority to regulate and manage public utilities in Sri Lanka. In addition, project
owner will be requested to obtain approval on environmental assessment from Central Environmental
Authority (CEA) and conclude a standard power purchase agreement with Ceylon Electricity Board (CEB).

1

2
3

4
5

6

Table 4. Permits & Licenses required for business operation
Duration
Permit & License
Remarks
Provisional Approval (P/A) issued
3months
Application Fee; LKR100,000.- as initial application
by SLSEA
fee covering power plant capacity not exceeding 1MW.
Additional LKR50,000.-/MW will be charged for every
1MW in excess of 1st 1MW. Validity for Permit is 6
months and extendable for another 6 months
Letter of Intention issued by CEB
Included in
1 above
Environmental Protection License
Project Owner is requested to prepare and submit aissued by CEA
report in accordance with Environmental Protection
Order or Terms of Reference for Environmental Impact
Assessment to be issued by CEAPower Generation License by
PUCSL
Energy Permit (E/P) issued by
Valid for 20 years. Maximum extension of 2 years as
SLSEA
construction period is allowed. Project owner shallobtain E/P within 6 month after the date of P/A issue
is required.
Standard Power Purchase (SPP)
Project owner shall conclude a SPP within 1 month ofAgreement with CEB
acquisition of Energy Permit

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JCM Feasibility Study (FS) 2014 – Final Report

It is common for the local parities to submit Provisional Applications. Obayashi is currently considering theadequate body that will act as a principal to apply for permits and licenses described in Table 7, including theoption of setting up a local subsidiary. Applications will be filed as soon as the principal body is determined.

3) Advantage of Japanese technology
Facilities and equipment to be employed at the power plant include incinerator, boiler, steam turbine, generator,condenser, deaerator, pre-air heater, economizer, electrostatic precipitator etc. Among these facilities andequipment mentioned, it has been confirmed during last year`s study that for incinerators and boilers, Japanesetechnology does not hold a superiority. However, among turbines for electricity generation and for electric
generators themselves, only the turbines of Shin Nihon Machinery (SNM) had a turbine efficiency of 25% orover at the extraction condition designated by EPC and hence this value was set as the benchmark in the JCM
methodology. In this year`s study, as the amount of electricity generation of 11.5 MW (including internal
electricity consumption) is about twice that of last year`s project (5.7MW) and the EPC to be used in thisproject will design a new system, a comparison of efficiency of steam turbine and generators (STG) between
Japanese products and products that have a higher possibility of being used in Sri Lanka was carried out. The
result is show below.
Besides SNM, TRIVENI (India), MAXWATT (India) and SIEMENS (Germany) are the 3 manufacturers
whose products are in the market. Among these companies, no response was received from TRIVENI to ourinquiry. Although our request for cooperation was accepted by SIEMENS, product specs and pricing
information was not made available at the time of preparation of this report. Hence, comparison is done with
MAXWATT for which specifications and pricing information is available.
[Findings]
Table 5. Technical Comparison Sheet among potential STG suppliers
Description
Unit
SNM
MAXWATT
Power Generation Capacity (kW)kW
11,50011,500
Inlet Steam Pressure
Ata
67
67
Inlet Steam Temperature
490
485
℃
Inlet Enthalpy
kcal/kg
810.1
807.7
Inlet Steam Flow Rate
t/h
48.00
51.60
Inlet EnergykW45,10648,332
Amount of Steam to be consumed
kg/ kWh
4.17
4.49
Power Generation Efficiency
%
23.8
25.5
Cost (FOB)2
JPY(JPY000)
265,000
192,000
Unit Cost per MW
JPY/ MW
2,304 万円
1,670 万円

As a result of the feasibility study and as shown in Table 8 above, it was confirmed that the product of Shin
Nihon Machinery (SNM) is slightly superior to those manufactured by potential competitors with thepossibility of being used in Sri Lanka. In Sri Lanka, as the usage of large scale biomass using industrial
facilities is increasing in recent years, discussion regarding efficiency of biomass use is becoming
commonplace. Therefore, it is expected that demand for efficient usage of resources through the introductionof highly efficient facilities will increase further.

2

Exchange Rate of USD1 = JPY120 applied
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JCM Feasibility Study (FS) 2014 – Final Report

4) MRV structure
Monitoring parameters and monitoring method
Parameters for calculation of GHG emission reductions include pre-set default values and those acquired
through monitoring. Table 9 shows the details of parameters to be monitored. Monitoring will be conductedusing monitoring equipment that satisfies the degree of precision required by the JCM scheme and calibration
will be conducted periodically.

Monitored parameters
1
2
3
4

Amountof electricity
supplied to grid
Amount of biomass used
Amountof electricity
purchased from grid
Amountof electricity
supplied from stand-alone
power generation

Table 9. Outline of monitoring parameters
Parameter
Monitoring
Monitoring frequency
option
EGPJ,pOption C
Continuous, once per day(measurement)
Qbio,pOption C
Per batch(measurement)
ECPJ,pOption C
Bill statement issued from CEB, once
(bill statement)
every month
ECPJ,cap,pOption C
Continuous, once every day when(measurement)using stand-alone generation

Monitoring and reporting system
Monitoring will be carried out under the MRV system as shown in Figure 2. Engineering unit in charge of
operation will conduct measurement and record in the monitoring format. The monitoring record will beapproved by the manager of engineering unit and transferred to the administration unit. Administration unit
will digitize the record into electric data and cross-check the information with other relevant documents inaccounting and procurement units to ensure the accuracy of the information. After these procedures, therecorded values are transferred to spreadsheet attached to PDD and will be submitted to the board which is the
responsible body for the project.

Accounting unit

Cross-check

QA/QC (Cross-check)

Engineering unit

Administration unit

Reporting
Submission ofrecordMonitoring unit I+ Power sales record keeping+ Power / fuel purchase record keeping

Board
Personnel responsible
for the ProjectProcurement unit

Third party entity

Monitoring unit II

Validation andverification+ Control biomass purchase/procurement, and record keeping

Figure 2. Monitoring and reporting system
Verification
Validation and verification of the approved report will be consigned to the third party entity that is registeredin the host country. Although there are no registered third party entities in Sri Lanka as of February2015, it isexpected that qualified entities including Japanese entities will register once the JCM agreement is signed. The
best suited entity will be selected from the registered entities.

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JCM Feasibility Study (FS) 2014 – Final Report

Support for MRV system establishment
In January 2014, a seminar for supporting MRV systemestablishment was held in Colombo (as shown in the photograph)with Mr. Yamamoto (Senior Technical Manager) from JQA acting as
the instructor. The participants included project implementation
bodies (Obayashi Corp and SLCF) and Director General and staffs
from Sri Lanka Standard Institution, the candidate entity of local third
party entity in Sri Lanka. The followings are the contents of theseminar.
Introduction to JCM scheme: JCM under UNFCCC, negotiation process, concepts
JCM project: flow of JCM projects, required documents, concept of “net emission reduction”
MRV concept and contents of MRV: JCM project cycle (validation>monitoring>reporting>verification)
International standard for measurement and calibration: CIPM MRA 3 and application in Sri Lanka,“calibration” concept in JCGM, calibration of measurement equipment, validity period of calibration QA/QC

The participants stated that the seminar provided a meaningful opportunity to understand the JCM scheme and
MRV system under JCM.

5) Environmental integrity and Sustainable development in host country
The need for environmental impact assessment was discussed with CEA and other relevant persons several
times. As a result, it became clear that for renewable energy power generation projects, decision on the needto conduct an EIA would not be clear before submission and receipt of Provisional Approvall to SLSEA. Thisis because the decision would depend on various conditions of the project like business type, scale andlocations which differ from project to project and the need to carry out EIA will be judged based on these
conditions. Hence, an IEE issued by CEA for a project that has similarities to this project was obtained. In that
IEE, the following information was required to be disclosed by the project proponent.
l Project location (fuel procurement and storage, combustion system, power generation and transmission
system, ash treatment, waste water treatment, exhaust gas treatment, noise and vibration control, otherfacilities, and construction plan)l Current environmental condition of the project location (physical conditions, water resource, climate
condition, topography, ecosystem, socio-economic impact)l Measures to mitigate environmental impact
l Monitoring planl SummaryAmong similar businesses, at Buttala electricity generation plant operated by SLCF, an Environmental written
directive was issued. The EIA was exempted on the condition that the requirements indicated on the directive
were followed. From the above it can be inferred that even if it is not indicated in the guide for electricity
generation facilities using renewal energy, as is also seen in Japan, a screening on whether EIA/IEE is requiredin carried out by the CEA. It seems plausible to assume that the decision flow involves a process whereby if it
is decided that EIA is not required, then the Environmental written directive is issued whereas if it is decided
that EIA is required, then a decision is made by the scoping committee. Further, through this study,
meteorological information and information on environmental standards of Sri Lanka have been collected.
3International Committee for Weights & Measrues / Matual Recognition Arrangement

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JCM Feasibility Study (FS) 2014 – Final Report

This project involves replacing a part of national electricity produced by fossil fuel with biomass produced
electricity. In addition to reduction of air pollution and GHG reduction, the project, through the procurementof biomass, contributes to the development of the local society and helps to attain sustainable development invarious areas.

6) Toward project realization (planned schedule and possible obstacles to be overcome)Future plans
Obayashi, in parallel to this F/S, is conducting various activities for the realization of the business. However,many challenges and risk that need to be tackled still remain and hence there is a need to continue the study.
If it is decided to move to the commercialization stage, it is necessary to start on the detailed design andformulation of framework for the business. There are plans to apply for JCB funding after which start ofoperations is aimed to start from the spring of 2018.
Challenges
How smoothly can negotiations with the local population during the phase of biomass procurement like land
procurement and formation of community with the peasants can be carried out is a big challenge towards theimplementation of the project. Further, what sort of preventive measures can be taken to counter country risk
and economic climate risk is a very important factor. This factor is influenced by response of government andfinancial bodies of the Japanese side and hence in future negotiations, support from these bodies is anticipated.

(2) JCM methodology development
1) Eligibility criteria
Table 10 shows the eligibility criteria defined under the JCM Methodology and purpose of setting the criteria.
Table6. Eligibility Criteria
No
Criterion 1

Criterion 2
Criterion 3

PurposeDefining project type
(Scale/Fueltype),
Securing Additionality
Necessityofnotconsidering
existing
facilities
1)~3)
Securing
sustainability of biomass
fuel4)Defining
eligible
biomass fuel for default
valuesCriteria
The project only uses wood biomass fuel and exports electricity
to the national grid and replaces the grid electricity as a feed-intariff project.
The facilities in the project are newly installed.

The biomass resources used in the project satisfies all thefollowing conditions:a)The biomass resources that the Sri Lanka Central
Environmental Authority has approved to use for the project inaccordance with the national guideline“Guideline for
Biomass Assessment in Sri Lanka” set by the Sri Lanka
Sustainable Energy Authority.
b)In the case where the project plans to have biomass resources
procurement from newly established dedicated plantations, itis necessary to demonstrate that the biomass resources used in
the project are only from scrub lands and/or unutilized land
areas,c) The land for the plantation is not categorized as forest, nature
reserve or peat land (organic soil). However, if special
permission is given by the relevant authorities in charge offorest and nature reserves to collect and move the biomass,then the biomass from these land categories can be used as
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JCM Feasibility Study (FS) 2014 – Final Report

Criterion 4

Criterion 5

biomass fuel in the project as a special case. (e.g., biomass
generated during the removal of invasive exotic species fromnature reserves)d)Processed biomass resources such as pellets, briquettes and biocokes are not used in the project.
Positive
listingof Power generation efficiency in the specification of the power
applicable technology generation facility is 25% or more. The power generation(Benchmark setting)efficiency can be defined as the amount of electricity generated
by the facility divided by the input energy to the turbine.
Securing high efficiency Periodical check at least once a year is planned.
of the facility2) Calculation of GHG emissions (including reference and project emissions)a)Establishment of Reference Emissions

Reference emission is calculated on the basis of the official grid emission factor that is published by the Sri
Lankan Government multiplied by the amount of electricity to be generated and exported to the national gridby the project. In the methodology, the latest grid emission factor published by the Sri Lankan Government
will be applied.
b)

Calculation of Reference Emissions
Reference emissions are calculated by Equation1 as shown below:

REp ＝ EGPJ,p× EFgrid＝70,080 × 0.7092....... [Equation1]＝49,701 (tCO2/y)
REp: Reference emission [tCO2/p]
EGPJ,p: Project quantity of electricity generation and supply to the grid in the project in period p[MWh/p]EFgrid: Emission factor for grid electricity [tCO2/MWh]

Table 11 shows the data necessary for calculation of reference emissions.
Table 7.Preconditions of Reference Emissions Calculation
Item
FigureRemarks
Electricity generating capacity
11.5 MW
Onsite electricity consumption
1.5 MW
Electricity supply capacity to the grid10.0 MW
Plant operation rate
80%
Amount of electricity generation
80,592 MWh/year
Amount of onsite electricity consumption
10,512 MWh/year Electricity will basically be supplied frombiomass power plant.
Amount of electricity to be supplied to the70,080 MWh/year Assuming “period p＝1 year”
grid annually (EGPJ,p)
Net electricity sales to the grid（”Amountof electricity generation” minus ”Amountof onsite electricity consumption”）
CO2 emission factor of grid electricity
0.7092 tCO2/MWh Grid emission factor(EFgrid)

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JCM Feasibility Study (FS) 2014 – Final Reportc)Calculation of Project emissions

Project emission is calculated by using emission related to biomass cultivation, transportation and pretreatment, emission related to electricity consumption by the project and emission from the burning of fossil
fuel used as supplemental fuel. Equation 2 is used to calculate the project emission. Amon the parametersspecified in equation 2, the underlined parameters are subject to monitoring whereas the non-underlined ones
are pre set values.
PEp= {APEcul +APEpret+APEtrans} × Qbio,p + ECPJ,grid,p × EFPJ,grid + ECPJ,cap,p × EFPJ,cap....... [Equation2]= {0.0252 + 0.0220 + 0.0245} × 134,569 + 0 × 0.7092 + 0× 0.8= 9,609 (tCO2/y)

PEp:Project Emission in period p [tCO2/p]

APEcul:Unit project CO2 emissions from biomass procurement in period p [tCO2/t]

APEpret:Unit project CO2 emissions from fossil fuel and electricity consumption at the
pretreatment facility [tCO2/t]

APEtrans:Unit project CO2 emissions from transportation of biomass resources [tCO2/t]

Qbio,p:Quantity of biomass fuel procured after the project starts (wet base)[t/p]

ECPJ,grid,p :Amount of electricity imported from grid and consumed in the project in period
p [MWh/p]
EF PJ,grid:Emission factor for grid connected electricity [tCO2/MWh]

ECPJ,cap,p:Amount of off grid electricity consumed by the generator in the project period p[MWh/p]EF PJ,cap:Emission factor for captive electricity [tCO2/MWh]

Table8. Preconditions of Project Emissions Calculation
Item
FigureRemarks
Unit project CO2 emissions from 0.0252 tCO2/t Default value defined in the MRV methodology,
Calculated based on CDM methodological tool
biomass procurement in period p(APEcul)
16.
0.0220 tCO2/t Default value defined in the MRV methodology,
Unit project CO2 emissions fromMarket survey targeting five manufacturers eightfossilfuel
andelectricity
products.
consumption at the pretreatment
facility (APEpret)
0.0245 tCO2/t Default value defined in the MRV methodology,
Unit project CO2 emissions from
Calculated based on UNFCCC Methodologicaltransportation of biomass resources(APEtrans)
Tool 12 and result of the interviews with thespecialists in the host country.
134,569 t Assuming “period p＝1 year”, wet basis
Quantity of biomass fuel procured
after the project starts (Qbio,p)0 MWh/year Set to 0 during preliminary calculation as it is theAmount of electricity imported fromstartup electric power required when the biomass
grid and consumed in the project inelectricity generation plant is stopped.
period p (ECPJ,grid,p)Emission factor for grid connected
electricity (EF PJ,grid)

0.7092tCO2/MWh

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Default value defined in the MRV methodology,
Official figure of the host country.

JCM Feasibility Study (FS) 2014 – Final ReportItem
Amount of off grid electricity
consumed by the generator in the
project period p (ECPJ,cap,p)Emission factor
electricity (EF PJ,cap)d)for

captive

Figure0 MWh/year

0.8 tCO2/MWhRemarks
Set to 0 during preliminary calculation. Only usedduring times when the biomass electricity
generation plant is stopped and when the purchaseof power from the grid is not possible due to factors
like power blackout
Default value defined in the MRV methodology,
Default value specified in the CDM approved
small scale methodology: AMS-I.A.

Calculation of Emission Reduction
ERp: Emission Reduction during period p [tCO2/p]
REp: Reference Emission during period p [tCO2/p]
PEp: Project Emission during period p [tCO2/p]
Table9. Emission Reduction
Item
FigureReference Emission
57,156 tCO2/y
Project Emission
17,104 tCO2/y
Emission Reduction
40,052 tCO2/y

3) Data and parameters fixed ex ante
In the methodology used in this project, the reference emission is obtained by multiplying the amount ofgenerated electricity that replaces the grid power with CO2 emission factor of the grid power. However, due
to the reasons stated below, it is hard to logically set a reference emission lower than the BaU emission andhence it was decided to conservatively calculate the project emission.
The method of calculating CO2 emission factor of grid power has already been established by CDM
and the calculated value has already been made public
The replacement power of grid power can be accurately monitored by using electricity meter

Based on the above, default values set before the implementation of the project using this methodology relating
to emission amount are shown below. For project emissions, choosing a larger number is more conservative.

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JCM Feasibility Study (FS) 2014 – Final ReportParameter
APEculAPEpretAPEtrans

EFPJ,grid
EFPJ,cap

Table14. Default Values and Conservative Measures
Description
Conservative measures
Unit project CO2 emissions from Maximum value chosen for condition forbiomass procurement in period p cultivation in the host country (for(tCO2/t)fertilizers, based on interview with experts it
is assumed that fertilizer is not used)
Unit project CO2 emissions from fossil Maximum value among 8 products from 5
fuel and electricity consumption at the companies considered in the study
pretreatment facility (tCO2/t)
Unit project CO2 emissions from For CO2 emission per distance transported,transportation of biomass resources used conservative value chosen from the
UNFCCC Methodology Tool12. For transport(tCO2/t)distance, based on expert interview of the hostcountry, assumed a one way distance of
average of 100km which is the maximum
distance for the business to be viable, hence
ensuring conservativeness.
Emission factor for grid connected Not use conservative method that contributes
to net emission reduction (Used theelectricity (tCO2/MWh)
Emission factor for captive electricity government published value for grid emission.
For off-grid electricity generation, use(tCO2/MWh)emission factor used by CDM small scale
methodology AMS-I.A ).

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Figure0.02520.02200.02450.70920.8