Indonesia-World Bank Climate Projects

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Contents

World Bank Active Climate Projects in Indonesia

  1. Pontianak - LFG Recovery Project, Carbon Offset
  2. Makassar - TPA Tamangapa Landfill Methane Collection and Flaring (7.7M) Carbon Offset
  3. Geothermal Power Generation Development (4M) Global Environment Project
  4. Geothermal Clean Energy Investment Project (500M) IBRD/IDA
  5. ID-PCF-Indonesia Lahendong Geothermal Project (3.75M) Carbon Offset
  6. ID-PCF-Indocement Cement, Carbon Offset
  7. Bekasi Landfill Gas Flaring, Carbon Offset

Pontianak - LFG Recovery Project, Carbon Offset

"The project development objective is to reduce methane emissions from solid waste disposed in the Tempat Pembuangan Akhir (TPA) Batu Layang landfill in Pontianak, Indonesia through a carbon finance transaction between the World Bank-managed The Netherlands Clean Development Facility (NCDMF) and the project sponsor. There are two components to the project. The first component of the project is Landfill Gas (LFG) project. The first activity will consist of LFG extraction and flaring facilities that will include the following components:

(i) a collection system consisting of horizontal and vertical wells and collection pipes that will be installed in the area containing waste that will be expanded over time as additional areas of the landfill are filled;
(ii) LFG pumping equipment including a pipeline and blowers;
(iii) LFG treatment and flare systems which will remove moisture and combust the gas; and
(iv) monitoring and control systems.

After the LFG collection and flaring systems have become operational, the project sponsor will evaluate the addition of a 120 kW generator for on-site electricity needs. The second component of the project is carbon finance transaction. The World Bank-managed NCDMF will finance the purchase of emission reductions (ER) credits resulting from the flaring of the gas. The purchase will be a performance-based contract under which payments are triggered by successful verification of the reduction of methane emissions by an independent, accredited international entity, designated operating entity (DOE), under the rules of the Kyoto Protocol. The quantity of ERs to be contracted, the length of time over which the purchase will be made, and the price paid will be agreed between the World Bank and the project sponsor during emissions reduction purchase agreement (ERPA) negotiations."

Makassar - TPA Tamangapa Landfill Methane Collection and Flaring

"The objective of the Makassar Landfill Methane Collection and Flaring Project for Indonesia is to reduce methane emissions from solid waste disposed in the city of Makassar's landfill, Tempat Pembuangan Akhir (TPA) Tamangapa, through a carbon finance transaction. There are two components to the project. The first component is the construction and operation of Landfill Gas (LFG) collection and flaring equipment that will result in Certified Emission Reductions (CERs). The project developer will construct a system to collect and flare the LFG produced from Makassar's landfill site thus reducing Greenhouse gas (GHG) emissions. In order to accomplish this objective, the city of Makassar has engaged a private sector company. Gikoko will be responsible for financing the construction and operation of the LFG extraction and flaring facility while the city of Makassar will continue to own and operate the landfill. Finally, the second component is the carbon finance transaction that will facilitate the purchase of the CERs. The World Bank managed Netherlands Clean Development Facility (NCDMF) will finance the purchase of CER credits resulting from the LFG flaring component. The design of the LFG flaring component was significantly influenced by the attempt to optimize the amount of CERs to be delivered and purchased through this transaction. The purchase will be a performance-based contract under which payments are triggered by successful verification of the reduction of methane emissions by an independent and accredited designated operational entity (DOE) under the rules of the Kyoto protocol. The quantity of CERs to be contracted, the length of time over which the purchase will be made, and the price paid will be agreed between the World Bank and Gikoko during negotiations of the Emission Reduction Purchase Agreement (ERPA). In addition, as part of its responsibilities, the NCDMF will ensure registration of the project with the Clean Development Mechanism (CDM) executive board as well as the other activities involved with the purchase of the CERs."

Geothermal Power Generation Development

"The objective of the Geothermal Power Generation Development Project is to promote the expansion of economic and environmentally friendly geothermal power generation in Indonesia, and to reduce Carbon dioxide (CO2) emissions from the power system. There are four components to the project. The first component is the policy framework for scaling-up the development of geothermal power. This component will assist the Government of Indonesia (GoI) in developing and implementing an integrated set of policies that will provide sufficient regulatory certainty, risk mitigation, and economic incentives for increased public and private investments toward developing geothermal power in Indonesia. The second component is the transactions management for mobilizing investments in geothermal power generation. This component will assist the GoI, especially the Ministry of Energy and Mineral Resources (MEMR), to develop the capacity for planning and transacting geothermal power developments in an efficient and transparent manner. The third component is the geothermal sector technical capacity building. This component will help address the limited domestic technical capacity for handling most geothermal related activities, and support the long-term development prospects of the sector. Finally, the fourth component is the project management assistance. This component will provide the necessary technical consultant support to the directorate of geothermal enterprise supervision and ground water management, the executive implementation unit, for the management and supervision of the project."

Geothermal Clean Energy Investment Project

ID-PCF-Indonesia Lahendong Geothermal Project

The Indonesia - Second Lahendong Geothermal Power Project aims to mitigate global environmental impacts of carbon dioxide (CO2) emissions through purchase of C02 emissions avoided by the development of the Second Lahendong Geothermal Project under the clean development mechanism (CDM). The plant has been developed to meet growing power demand in the North Sulawesi area of Indonesia. The Lahendong 11 Geothermal Power Plant is one subproject of the ADB-financed Renewable Energy Development Sector (REDS) Project which includes twelve subprojects. The Second Lahendong Geothermal Power Project includes a single 20 MW geothermal steam turbogenerator plant procured and operated by PLN. The project is designed to deliver up to 158 GWh of electricity annually to PLN's Minahasa system of North Sulawesi. Steam for the project is supplied from an extension of the existing Lahendong geothermal field, under a take-or-pay agreement with the field's owner and developer, Pertarnina, the national Oil and Gas Company.

ID-PCF-Indocement Cement, Carbon Offset

Bekasi Landfill Gas Flaring, Carbon Offset

The Bekasi Landfill Gas Recovery Project for Indonesia development objective is to collect and flare methane produced from solid waste disposed in the City of Bekasi's Tempat Pembuangan Akhir (TPA) Sumur Batu landfill and thus reduce greenhouse gases (GHG) emissions. This objective will be facilitated through a Carbon Finance transaction between the World Bank and the project developer. In addition, a percentage of the project developer's revenues from the certified emission reductions (CERs) will be shared with the city to help improve solid waste collection and disposal within the municipality resulting in various public health benefits. Moreover, implementation of this carbon finance operation (CFO) can also act as a catalyst for the development of similar clean development mechanism (CDM) projects in the municipal solid waste sector, benefiting not only reductions of global GHG emissions, but improvements to solid waste collection and disposal throughout Indonesia. This CFO consists of two distinct project activities:

(i) the construction and operation of landfill gas (LFG) collection and flaring equipment that will result in CERs; and
(ii) a Carbon Finance transaction that will facilitate the purchase of the CERs. The first activity will consist of LFG extraction and flaring facilities that will include the following components:
(i) a collection system consisting of horizontal and vertical wells and collection pipes that will be installed in the area containing waste that will be expanded over time as additional areas of the landfill are filled;
(ii) LFG pumping equipment including a pipeline and blowers; (iii) LFG treatment and flare systems which will remove moisture and combust the gas; and
(iv) monitoring and control systems.

The second activity are World Bank-managed the Netherlands clean development facility (NCDMF) will finance the purchase of CER credits resulting from the LFG flaring component. The design of the landfill gas component was significantly influenced by the attempt to optimize the amount of CERs to be delivered and purchased through this transaction.

References

  1.  "World Bank project database"