2. Krubong Melaka LFG Collection & Energy Recovery CDM Project Kozo Bando bandok@kajima.com Kajima Corporation

3. 1. Feasibility Study by NEDO ’ s Support Program 2. Outline of Project 3. Technical Study 4. Environment Study 5. Financial Study 6. Actions toward CDM Approvals Contents Krubong CDM 、ＫＡＪＩＭＡ

4. 1.Feasibility Study by NEDO ’ s Support Program Krubong CDM 、ＫＡＪＩＭＡ

5. 1. Calls for FS-for-CDM-project proposal once or twice a year 2. Awards a dozen or more proposals on a competitive basis 3. Scope of works includes validation process (FY2003) 4. Approximately US$360,000 for each FS (FY2003) 5. One-year Contract FS by NEDO NEDO’s Support Program Krubong CDM 、ＫＡＪＩＭＡ

6. 10/2003 Preliminary site study 11/2003 Introduction to relevant agencies/CDM approval process/project partner/survey & approval process/project partner/survey & installation of perforated pipes installation of perforated pipes 12/2003 Field measurements Environment assessment process/stakeholders Environment assessment process/stakeholders comments comments 01/2004 Stakeholders comments/electricity sale/PIN 03/2004 ＰＩＮ submitted for review/facility design 04/2004 Stakeholders comments/facility design Chronicle of FS by NEDO Program FS by NEDO Krubong CDM 、ＫＡＪＩＭＡ

7. 05-07/2004 PDD written/environment study Estimation of project cost & revenue Estimation of project cost & revenue 07/2004 Environment study/estimation PDD submitted to OE PDD submitted to OE 09/2004 Site briefing for ＰＩＮ review/Site review by OE Public comments for PDD Public comments for PDD 10/2004 Validation report from OE PDD submitted to DNA (M) for approval PDD submitted to DNA (M) for approval 12/2004 Application to DNA (J) for approval 01/2005 Approval from Japan 03/2005 Presentation at NC on CDM (M) 07/2005 Approval from Malaysia Chronicle of FS by NEDO Program FS by NEDO Krubong CDM 、ＫＡＪＩＭＡ

8. a. Validated PDD and validation report b. Approval from Japanese Government c. Approval from Malaysian Government d. Formation of project execution team e. Technical study on LFG collection f. Preliminary financial assessment Major Achievements by FS by NEDO Program Krubong CDM 、ＫＡＪＩＭＡ FS by NEDO

9. 2. Outline of Project Krubong CDM 、ＫＡＪＩＭＡ

10. Description of Project 1.Collection of LFG from closed landfill 2.Power generation by collected LFG 3.CER both from LFG collection & from displacing grid electricity Krubong CDM 、ＫＡＪＩＭＡ Outline of Project

11. Contribution -Reduction of GHG emission -Energy recovery from biomass (MSW) -Environment conscious landfill closure -Safe & cleaner closure while being stabilized Krubong CDM 、ＫＡＪＩＭＡ Outline of Project

12. Krubong Landfill Project Site Krubong Ladnfill Krubong CDM 、ＫＡＪＩＭＡ

13. Krubong Landfill Major landfill in MelakaMajor landfill in Melaka Operational from 1994Operational from 1994 Scheduled to be closed soonScheduled to be closed soon No LFG collection practicedNo LFG collection practiced 750 ton of MSW daily750 ton of MSW daily Total MSW of 2 million tonTotal MSW of 2 million ton Outline of Project Krubong CDM 、ＫＡＪＩＭＡ

14. Outline of Project Krubong CDM 、ＫＡＪＩＭＡ

15. Outline of Project Krubong CDM 、ＫＡＪＩＭＡ

16. Outline of Project Krubong CDM 、ＫＡＪＩＭＡ

17. Outline of Project Krubong CDM 、ＫＡＪＩＭＡ

18. Project Implementation & Credit Transfer Electricity Sale Approval Government of Malaysia CDM Project Japanese Companies Government of Japan Approval Special Purpose Company Malaysian Company CER Equity Approval/Registration CDM Executive Board CO2 Credit Profit Outline of Project Krubong CDM 、ＫＡＪＩＭＡ

19. Production Well Electrical Equipment and Office Building Gas Engine Generator Facility LFG Pipe φ300 : 1,024m LFG Pipe φ 200 : 1,432 m Production Well General Arrangement of the Facilities Outline of Project Krubong CDM 、ＫＡＪＩＭＡ

20. Project Period Project Period 10 years 10 years CH 4 CH 4 Daily emission 41,000 – 14,000 m3 Daily emission 41,000 – 14,000 m3 Daily collection 15,000 – 5,000 m3 Daily collection 15,000 – 5,000 m3 CO2 Emission Reduction CO2 Emission Reduction Average annual reduction 60,000 ton CO2eq Average annual reduction 60,000 ton CO2eq Power Generation Power Generation 1MW – 500 KW 1MW – 500 KW Project Output Krubong CDM 、ＫＡＪＩＭＡ Technical Study

21. Project Schedule January, 2005 Approval from Japanese Government July, 2005 Approval from Malaysian Government End of 2005 Registration of CDM Project with CDM EB Early 2006 Establishment of SPC Middle of 2006 Design and Construction of Facilities Design and Construction of Facilities January, 2007 Commencement of Operation Outline of Project Krubong CDM 、ＫＡＪＩＭＡ

22. 3. Technical Study - Preliminary Field Study - Krubong CDM 、ＫＡＪＩＭＡ

23. 4. Environment Study Krubong CDM 、ＫＡＪＩＭＡ

24. 1. No EIA Required Electricity Generation Capacity < 10MWElectricity Generation Capacity < 10MW Not Solid Waste Treatment OperationNot Solid Waste Treatment Operation 2. PAT submitted to DOE Procedure of Environment Impact Study Environment Study Krubong CDM 、ＫＡＪＩＭＡ

25. 1.Air Quality Environment Quality Act 1974Environment Quality Act 1974 SO 2 < 3.5 g/Nm 3, NO 2 < 2.0 g/Nm 3 SO 2 < 3.5 g/Nm 3, NO 2 < 2.0 g/Nm 3 Removal by Gas Dryer SystemRemoval by Gas Dryer System 2. Noise WHO RecommendationWHO Recommendation < 65 dB(A) or 55 dB(A) < 65 dB(A) or 55 dB(A) Generators in ContainersGenerators in Containers 3. Odor Minimized by Soil CoverMinimized by Soil Cover Conformity with Environmental Regulations Krubong CDM 、ＫＡＪＩＭＡ Environment Study

26. 1.Governmental Organizations MHLGMHLG EPUEPU City of MelakaCity of Melaka 2. Private Entities Developer near the Site Developer near the SiteDeveloper near the Site Factory Owner near the SiteFactory Owner near the Site 3. Community Krubong JKKKKrubong JKKK Residents of KrubongResidents of Krubong Stakeholders List Krubong CDM 、ＫＡＪＩＭＡ Environment Study

27. All the stakeholders welcome the ProjectAll the stakeholders welcome the Project Technology should be transferredTechnology should be transferred Future explanation meetings are requested when more detailed facility plan becomes availableFuture explanation meetings are requested when more detailed facility plan becomes available Stakeholders’ Comments Krubong CDM 、ＫＡＪＩＭＡ Environment Study

28. 5. Financial Study Krubong CDM 、ＫＡＪＩＭＡ

29. ・ Electricity by renewable energy ・ Small scale less than 10MW ・ Effective from 2001 － 2005 ・ 5% of total electricity by small renewable energy ・ Purchase price ： RM0.14-RM0.17 per 1kWh ・ Partial exemption of import tax ・ Partial exemption of corporate tax Electricity Sale in Malaysia Small Renewable Energy Power Programme (SREP) (SREP) Krubong CDM 、ＫＡＪＩＭＡ Financial Study

30. Initial Costs Initial Costs RM 14,200,000. RM 14,200,000. O & M Costs per Year O & M Costs per Year RM 1,250,000. RM 1,250,000. Revenue for 10 Years Revenue for 10 Years 83,000 MWh 83,000 MWh RM 0.17 per KWh RM 0.17 per KWh IRR IRR Negative ( even for all sensitivity analysis cases) Negative ( even for all sensitivity analysis cases) Financial Status without CDM Financial Study Krubong CDM 、ＫＡＪＩＭＡ

31. Initial Costs Initial Costs RM 14,200,000. RM 14,200,000. O & M Costs per Year O & M Costs per Year RM 1,250,000. RM 1,250,000. Revenue for 10 Years Revenue for 10 Years CER 600,000 ton CER 600,000 ton 83,000 MWh 83,000 MWh RM 0.16 per KWh RM 0.16 per KWh Financial Status with CDM Krubong CDM 、ＫＡＪＩＭＡ Financial Study

32. CER sale CER sale sold at market sold at market Japanese Government Purchase Program Japanese Government Purchase Program Japan Carbon Finance Japan Carbon Finance CER price (CO2-e) CER price (CO2-e) euro17 – euro20 (EU-ETS) euro17 – euro20 (EU-ETS) $7-$10 (Japanese purchase program) $7-$10 (Japanese purchase program) IRR IRR 7% 7% Financial Status with CDM Krubong CDM 、ＫＡＪＩＭＡ Financial Study

33. 6. Actions toward CDM Approvals Krubong CDM 、ＫＡＪＩＭＡ

34. ・ DNA Conservation and Environmental Management Div. Conservation and Environmental Management Div. Ministry of Natural Resources and Environment Ministry of Natural Resources and Environment ・ Technical Committee Secretariat ： Malaysia Energy Centre (PTM) Secretariat ： Malaysia Energy Centre (PTM) ・ National Committee on CDM (NCCDM) Relevant agencies & Environment NGO Relevant agencies & Environment NGO ・ Application & Review Review of PIN － Conditional Approval Review of PIN － Conditional Approval Review of PDD & validation report - Approval Review of PDD & validation report - Approval CDM Approval Process in Malaysia Krubong CDM 、ＫＡＪＩＭＡ CDM Approvals

35. Approval from Malaysia 1.PIN (Project Idea Note) submitted to DNA(03) 2.Review by Technical Committee(04) 3.Recommended to NCCDM(04) 4.Review by NCCDM(06) 5.Questionnaire from NCCDM(08) 6.Response to questionnaire(08/09) 7.Site briefing(09) KAJIMA Procedure in Malaysia

36. 8. PDD/validation report submitted to DNA(09/10) 9. Review by Technical Committee(12) 10. Recommended to NCCDM(12) 11. Presentation at NCCDM(03) 12. Questionnaire from NCCDM(04) 13. Response to NCCDM(05) 14. Letter of Approval(07) KAJIMA Procedure in Malaysia Approval from Malaysia

37. 1. SD Policies of the Government Utilization of Renewable EnergyUtilization of Renewable Energy Development of Renewable Energy IndustriesDevelopment of Renewable Energy Industries Maximum Use of Local ResourcesMaximum Use of Local Resources Safety Landfill ClosureSafety Landfill Closure 2. Conditions by CDM EB 2. Conditions by CDM EB Validated by OE(Japan Consulting Institute)Validated by OE(Japan Consulting Institute) Conformity with National CDM Criteria (1) (Malaysia CDM Information Handbook) Krubong CDM 、ＫＡＪＩＭＡ CDM Approvals

38. 3. Cooperation between Malaysia and Japan Equity ParticipationEquity Participation 4. Technology Transfer Benefits Evaluation Method of LFG EmissionsEvaluation Method of LFG Emissions LFG Recovery/Power Generation SystemLFG Recovery/Power Generation System 5. Direct Benefits towards Achieving SD Utilization of Renewable EnergyUtilization of Renewable Energy Maximum Use of Local ResourcesMaximum Use of Local Resources Safety Landfill ClosureSafety Landfill Closure Conformity with National CDM Criteria (2) (Malaysia CDM Information Handbook) Krubong CDM 、ＫＡＪＩＭＡ CDM Approvals

39. Renewable EnergyRenewable Energy Energy Efficiency ImprovementEnergy Efficiency Improvement ForestryForestry Waste ManagementWaste Management TransportTransport Examples of CDM Projects (Malaysia CDM Information Handbook) Krubong CDM 、ＫＡＪＩＭＡ CDM Approvals

40. Epilogue Krubong CDM 、ＫＡＪＩＭＡ

41. KAJIMA Global Warming Effects in the Neighborhood

42. KAJIMA Earth in the Dark

43. OUR PLANET Krubong CDM 、ＫＡＪＩＭＡ

44. 3. Technical Study - Preliminary Field Study - Krubong CDM 、ＫＡＪＩＭＡ

45. Estimation of LFG emission volumeEstimation of LFG emission volume Estimation of LFG collection volumeEstimation of LFG collection volume Estimation of project sizeEstimation of project size Purposes of Preliminary Field Study Krubong CDM 、ＫＡＪＩＭＡ Technical Study

46. Survey of landfillSurvey of landfill Experimental wells at landfillExperimental wells at landfill Measurements at experimental wellsMeasurements at experimental wells Sample of deposited wasteSample of deposited waste Chemical tests of waste samplesChemical tests of waste samples Activities of Preliminary Field Study Krubong CDM 、ＫＡＪＩＭＡ Technical Study

47. Krubong CDM 、ＫＡＪＩＭＡ Technical Study

48. Krubong CDM 、ＫＡＪＩＭＡ Technical Study

49. LFG emission & collection 1)LFG emission Ge=1.868×C0×(0.014×d+0.28) Ge=1.868×C0×(0.014×d+0.28) First Order Decay Model First Order Decay Model TV j = ΣMi × Ge ×k ×exp{-k(j-i)} TV j = ΣMi × Ge ×k ×exp{-k(j-i)} 2) Methane gas emission MTVj = α× TVj MTVj = α× TVj 3) Methane gas collection CMTVj = β× MTVj CMTVj = β× MTVj Krubong CDM 、ＫＡＪＩＭＡ Technical Study

50. Time History of LFG Generation Krubong CDM 、ＫＡＪＩＭＡ Technical Study

51. Project Period Project Period 10 years 10 years CH 4 CH 4 Daily emission 41,000 – 14,000 m3 Daily emission 41,000 – 14,000 m3 Daily collection 15,000 – 5,000 m3 Daily collection 15,000 – 5,000 m3 CO2 Emission Reduction CO2 Emission Reduction Average annual reduction 60,000 ton CO2eq Average annual reduction 60,000 ton CO2eq Power Generation Power Generation 1MW – 500 KW 1MW – 500 KW Project Output Krubong CDM 、ＫＡＪＩＭＡ Technical Study