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version1.015/02/2011 Siam Cement Biomass Project - Project Profile
Siam Cement Biomass ProjectProject Profile
Siam Cement Biomass ProjectVerified Carbon Standard – Thailand
version1.015/02/2011 Siam Cement Biomass Project - Project Profile
1.0 Project Summary
1.1 Project Snapshot
2.0 Project Benefits
2.1 Key Achievements
3.0 Background
4.0 Technical Details
5.0 How the project meets Climate Friendly’s principles
Contents
version1.015/02/2011 Siam Cement Biomass Project - Project Profile
1.0 Project Summary
The Siam Cement Biomass Project involves the modification
of five cement manufacturing plants in Thailand to enable them
to use renewable biomass fuel in place of fossil fuels, leading
to substantial greenhouse gas emission reductions as well as
significant environmental and socio-economic benefits.
The cement plants previously burned a mix of fossil fuels in their
kilns, including coal, lignite (brown coal), pet-coke, and heavy
fuel oil. With the implementation of the project these have been
largely replaced by renewable biomass from a variety of sources
– primarily rice husks but also wood-processing residues and
other agricultural waste such as palm trunks, palm fibre and
palm nut shells.
At each of the project sites an elaborate system for the collection,
storage, preparation and processing of biomass fuels has been
introduced in order to facilitate the switch from fossil fuels.
Supply chains have been established for the sourcing of waste
biomass from nearby areas. These vary across the different sites
according to the type of available biomass and crop patterns in
the region. Prior to the implementation of the project, rice husk
was typically burnt in open fields, which is common practice
for rice husk waste in developing countries. Other agricultural
wastes were left in the fields to decay.
Substantial technical adaptations have also been made to the
cement production plants in order to enable the combustion of
the alternative types of fuel.
The costs of modifying the existing plant and establishing
the new supply chains were substantial, and there were also
significant technology risks and technical know-how barriers as
the Siam Cement Group was the first company in Thailand to
adopt the new technology. The additional revenue from the sale
of carbon credits provided the necessary incentive to justify this
investment. Without the carbon revenue the project would not
have gone ahead.
1.1 Project Snapshot
Name: Siam Cement Biomass Project
Location:Saraburi, Lampang, and Nakon Si Thammarat Provinces, Thailand
Coordinates:
14°36’33.59”N / 100°59’46.88”E; 14°34’10.00”N / 100°45’56.10”E; 14°45’08.56”N / 100°47’15.21”E;18°33’22.66”N / 99°34’23.08”E;08°06’01.20”N / 99°41’02.50”E
Type: Biomass
Standard:Verified Carbon Standard (VCS 2007.1)
Volume: c.600,000 VERs/yr
Project Operator: SCG Cement Co., Ltd.
version1.015/02/2011 Siam Cement Biomass Project - Project Profile
2.0 Project Benefits
Environmental – The five plants now use renewable biomass in
place of fossil fuels for the majority of their energy requirements.
The Verification Reports show that the project has reduced CO2
emissions by around 90% since it began. The carbon offsets
generated from this project are calculated in accordance with
the approved VCS methodology by quantifying the volume of
greenhouse gas emissions that would otherwise have been
released from burning fossil fuels. Furthermore, replacing fossil
fuels with biomass reduces local air pollution as well as reducing
the upstream environmental impacts associated with fossil fuel
extraction and processing. The project has also funded the
construction of over 6,500 check dams for upstream forest
conservation.
Socio-Economic – The project has created supply chains
and manufacturing processes for renewable biomass fuels,
increasing their availability for local use. This has led to local job-
creation as well as generating supplementary income for farmers
from what used to be waste products. The project has also
funded and implemented a range of social programs such as
school scholarships and projects supporting the development of
small-scale local industries.
2.1 Key Achievements
R Reduces GHG emissions
R Facilitates new clean technology uptake
R Reduces environmental impacts of fossil fuel extraction and processing
R Develops rural biomass markets and supply chains
R Creates local employment
R Provides local farmers with supplementary income streams
R Funds additional social and environmental initiatives
version1.015/02/2011 Siam Cement Biomass Project - Project Profile
3.0 Background
Of the five project sites, three are located in Saraburi province
approximately 120km north of Bangkok, one is in Lampang
province 600 km north of Bangkok and the other is in Nakon
Si Thammarat province 835km south of Bangkok.
An emerging economy, Thailand depends heavily on the
agricultural sector. While only accounting for less than 10% of
GDP, agriculture employs close to 50% of the population. The
country’s most important crop is undoubtedly rice, Thailand
being the number one exporter of rice in the world. Rice husk
currently presents a waste disposal problem in many places,
is generally left to decay leading to methane emissions with
high global warming impact, and can also lead to localised
respiratory problems due to its low density. Using the waste
rice husk avoids these problems whilst creating a valuable
source of energy and income.
Thailand relies heavily on the burning of fossil fuels (above
90% of the energy mix) to supply electricity to its population
and industries. Cement production is a highly emission-
intensive activity, estimated to represent around 5% of total
global man-made CO2 emissions. In developing countries the
production process is often particularly inefficient. The use of
renewable fuels can make a valuable contribution to reducing
these emissions.
version1.015/02/2011 Siam Cement Biomass Project - Project Profile
4.0 Technical Details
At each of the project sites an elaborate system for the
collection, storage, preparation and processing of the
biomass fuels has been created, varying from site to site
depending on the types of biomass used. Modifications
which needed to be made to the existing plant include:
• Systems for shredding or chipping the fuel material (in
the case of wood-waste)
• Systems for drying the biomass - critical for fuels which
are typically delivered with a high moisture content.
In one of the project sites a new drying system was
developed, combining mechanical fluidized bed dryer
technology and flash dryer technology into a new hybrid
dryer, which is both more efficient and more versatile in
terms of accommodating diverse fuels
• Systems for filtering out impurities – e.g. using a
vibrating screen to remove soil and rocks
• Systems for reducing dust from the rice husk, which can
cause both technical and health problems
• Systems for mixing and feeding the new fuels into the
cement kilns
• Systems for improved process and quality control to
accommodate the less homogenous fuel sources
The use of biomass residue in cement kilns was new and no
cement plant in Thailand had introduced the system before
the successful development of the knowledge, technology
and system by Siam Cement Group (SCG) for this project.
version1.015/02/2011 Siam Cement Biomass Project - Project Profile
5.0 How the project meets Climate Friendly’s principles
Climate Friendly only invests in projects that:
Principles How this project meets these criteria
Address the root cause of climate change P Biomass fuel is neutral in terms of GHG emissions, and replaces fossil-fuel based energy
Are permanent P Emissions reductions cannot be reversed
Are additional P Carbon finance required to overcome technical and financial barriers
Are verifiable P Independently verified by Bureau Veritas Certification Holding SAS
Are project based P Not allowance-based under compliance requirements
Contribute to sustainable development P Reduces pollution, creates employment, builds renewable energy markets and supply chains, facilitates technology transfer
Are synchronous P Emissions reductions have already occurred
Are exclusive P Robust assurance process ensures no double counting