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World Bank LFG Activities in the LAC Region
Methane to Markets Ministerial Meeting
WORLD BANK LFG ACTIVITIES IN THE LAC REGION
Presented by: Horacio Terraza
Environmental Specialist / Project Manager
Environmentally and Socially Sustainable Development
Latinamerica and the Caribbean Region
World Bank
November 15, 2004
Washington DC Why are LFG projects interesting for the World
Banks LAC region ?
They deal with two fundamental problems for the environment
and our health: (i) Municipal Solid Waste management (local)
and (ii) Methane as greenhouse gas (global)
Win-Win situation: alternative source of energy improve
landfill practices/reduce risks
Carbon finance and energy sales revenues: economic
incentive promoting project financial stability and local
investment
Promote Energy-Environment intersectoral work in client
countries World Scenario: Number of existing plants (2002)
Location
Number of plants
Installed Capacity
(MW)
USA
350
2600
EUROPE
720
1400
CANADA
25
106
SOUTH AFRICA
4
4
AUSTRALIA
18
75
LATIN AMERICA
3
28
Source: Hans Willumsen (2002) Generation Potential in Latin America
- There are 117 towns with > 500,000-inhabitants
- Waste generation: estimated at 74 million tons/year
- Half of these towns have the necessary technical
characteristics
- Estimated Potential: 810 MW
- 1 million-inhabitant towns generating 740 tpd: estimated
Potential 5.9 MW LFG Capture - Regional Project
Portfolio
Global Environmental Facility
Finances, through grants, investment projects for energy generation:
Mexico, Monterrey (LFGTE existing)
Uruguay, Maldonado (LFGTE existing)
Carbon Finance
Finances LFG capture and LFGTE projects through ERs purchase
agreements through CDM: Brazil (Nova Gerar); Argentina (Olavarría);
Mexico Umbrella Project (Leon, Guadalajara, Monterrey); Uruguay
(Montevideo); and Peru (Lima)
Energy Sector Management Assistance Programme (ESMAP) ­
LFGTE initiative
Finances LFGTE pre-feasibility studies in 10 landfill sites in LAC through
technical assistance grants (Colmbia, Peru, Uruguay, Brazil, Mexico) Status: in operation
Installed capacity: 7 MW
Landfill Characteristics:
September 5th, 1990
Lifetime of the site: 25-30 years
Landfill area: 212 ha.
Waste depth: 22m.
Solid waste accumulated to 1999: 7.5 Mtons
Waste characterization: 80% Biodegradables
(43% Rapidly, 17% Moderately and 20%
Slowly), 20% are non-degradable
Operation started:
Filling area: 44 ha. (biogas improvement area)
Average daily disposal: 2300 ton
GEF Mexico, Monterrey LFGTE
2003
August, 2004
equipment supplier: British
GEF Mexico, Monterrey LFGTE
LFGTE plant inaugurated September
66,210 MWh have been generated until
263,000 tCO2e abatted since 2003
Total investment: US$11.5 M
Expected total ERs: 3.6 MtCO2e
Abatement cost US$3.2/tCO2e
Engineering design and Status: start up phase
Installed capacity: 1 MW
Landfill Characteristics:
2007
ton
Operation started: October 1997
Expected closing year:
Landfill area: 19 ha.
Organic fraction: 60%
filling area: 9 ha
depth: 12 mts (average)
Average daily dipsosal: 145 ton
Waste in place (actual): 560,000
Expected waste disposal (2007): 800,000 ton
GEF Uruguay, Maldonado LFGTE
December 2004.

(15 years)




supplier: Spanish
High replication potential
LFGTE plant expected inauguration
Expected generation 89,000 MW
Expected ERs 475,000 tCO2e
Total investment USD$1,500,000
Abatement cost US$3.15 / tCO2e
Engineering design and equipment
GEF Uruguay, Maldonado LFGTE Carbon Finance (NCDF) Brazil, Nova Gerar
Type: 1
st
stage flaring; 2
nd
stage LFGTE
Status: under construction
Installed Capacity> 12 MW
Overall ERs> 11.6 MtCO2e (21 years)
Estimated Project Costs: US$ 20.9 M
Purchase Agreement: 2.5 MtCO2e @ US$3.35CO2e
Abatement Cost US$ 1.8tCO2e
Landfill Characteristics :
existing sector and new cells under development
Operation started: 1987/ 2003
daily disposal: 450 ton/2,000 tons
closing year: 2002 / 2023
Waste in place: 2,000,000 ton
Landfill area: 20 ha (old) +120 ha (new) .
LFGC plant operational: 2005 Type: Methane capture and flaring
Status: Design phase
(21 years)
Abatement cost: US$0.76/tCO2e
PA:
Operational: May, 2005.
Landfill Characteristics:
2029
filling area: 17 ha
Total investment: USD$276,100
Expected ERs 363,331 tCO2e
131,234 tCO2e @ $4.5/tCO2e*
Operation started: October 1999
Expected closing year:
Landfill area: 33 ha.
daily disposal: 80 -100 ton
Waste in place: 120,000 ton
Carbon Finance (CDCF) Argentina, Olavarría
* $0.50/tCO2e premium for social component LFGTE Initiative in LAC
Objectives:
Contribute to a regional approach aimed at a maximum reduction
of methane emissions and the development of carbon trading
opportunities.
Develop outreach activities to promote this non-conventional
energy source in medium and large city landfills by means of LFG
recovery and utilization.
Use it as a tool/incentive to improve SWM practices.
Documentation and dissemination of existing experiences
Implementation of a Knowledge and Cooperation Network (Env.
Canada, USEPA, ISWA, SWANA, AIDIS, etc. )
Finance LFGTE prefeasibility studies Current Status :
Documentation of worldwide case studies completed
Handbook for the Preparation of LFGTE Projects completed
and distributed in English, Spanish and Portuguese
(http://www.bancomundial.org.ar/lfg/gas_access_008.htm)
Implementation of a knowledge sharing network and website
(http://www.bancomundial.org.ar/lfg/default.htm)
Workshop held in Monterrey on October, 2003
Screening of 26 candidate landfill sites for potential
development of new LFGTE projects
Selection of 10 landfill sites to carry out pre-feasibility studies
Pre-feasbility studies under preparation Submission of
Brazil 10
Colombia 7
Guatemala
1
Mexico 6
Peru 1
Uruguay 1
Total
The submitted landfill proposals were evaluated and
scored based on the following criteria categories:

Technical aspects: type of landfill,
Temp, precipitation, leachate collection,
etc.

aspects: legal
framework for LFG utilization, access to
market, etc.

Social aspects: surrounding fence, waste
pickers, resettlement needed, etc.

Political commitment
private operator, etc.
proposals :
26
Selection Criteria :
capacity, waste in place, covers, ave.
Regualatory framework
distribution and transmission lines, energy
: municipality, Selected Landfills
MW
(
8
(
)
3
(
)
1
(
)
3
(
)
8
3
(
)
7
4
Landfill name
Country Total Cap
Mton
Estimated daily
disposal in
tons
Potential
Energy Gen.
Gramacho (Rio de
Janeiro)
Brazil
35
3,800
12
Muribeca
Pernambuco)
Brazil
20
2,800
Porto Alegre Rio
Grande do Sul
Brazil
1.1
1,050
Combeima
Ibagué, Tolima
Colombia
1.2
275
El Carrasco
Bucaramanga
Colombia
593
1.7
La Esmeralda
Manizales
Colombia
2.8
400
1.3
Queretaro
Mexico
6.1
465
1.5
Chihuahua
Mexico
1,070
Huaycoloro Lima
Peru
40
2,500
Montevideo
Uruguay
10
1,250
TOTAL
42.5 Next steps :
Completion of prefeasibility studies for the 10 selected landfills
(expected January 2005)
Completion of pump tests for 5 out of the 10 selected landfills
(expected March, 2005)
Main findings and results dissemination workshop (expected
May, 2005) THANK YOU !