Budi Acid Jaya to build biogas power project under CDM scheme
Saturday, February 10 2007 - 02:25 AM WIB
BAJ said a statement recently that the power project will replace "carbon intensive" electricity sourced from the state-owned electricity firm PLN as well as its diesel captive power generation. Currently, the Way Abung plant is using 6,060 kw of power from PLN and 4,100 kw from its captive power generator.
The CDM scheme gives developing countries opportunities to sell emission reduction credits to developed countries.
BAJ has registered its power project to the CDM Executive Board, an agency established by the United Nations Framework Convention on Climate Change (UNFCCC) that is in charge of reviewing and approving new methodologies related to baseline and monitoring plan on a CDM project.
The US$7 million project is currently under validation status.
BAJ has secured around $3.5 million loan from Japanese firm Sumitomo Corporation and Japan?s New Energy and Industrial Technology Development Organization (NEDO) for the project. It will use its internal funds to cover the balance.
BAJ will pay back the loan using the CDM revenue.
The Way Abung plant produces tapioca starch and associated products (i.e. glucose and acetic acid) from tapioca residues. The operation of these facilities results in approximately 16,900 m3/day of wastewater with high organic content.
During operation, the organic wastewater is sent to anaerobic digesters prior to being discharged into the existing open anaerobic lagoon treatment system.
Anaerobic digestion consistently generates methane-rich biogas. Generated biogas is collected and utilized as fuel for electricity generation and surplus biogas is flared. (Robert)