• Current Vietnam Project • Current Vietnam PDDs • Status of Vietnam CDM development • Key issues in Vietnam CDM development... Current Vietnam CDM:Rang Dong Oil Field • Project 0152 : R
Trang 1UNIDO Vietnam Support for CDM projects in the Industrial sector: Pilot Project in Co-operation with the
Austrian Industry
Training Sessions on the Kyoto CDM
Practical examples of International CDM
Projects & Lessons for Vietnam
Mike Bess
Trang 2• Current Vietnam Project
• Current Vietnam PDDs
• Status of Vietnam CDM development
• Key issues in Vietnam CDM development
Trang 3Current Vietnam CDM:
Rang Dong Oil Field
• Project 0152 : Rang Dong Oil Field
Associated Gas Recovery and Utilization Project
• Rang Dong Oil Field (off SE coast Vietnam)
• Vung Tau City (Raria-Vung Tau Province)
Trang 4Current Vietnam CDM:
Rang Dong Oil Field - Location
Trang 5Current Vietnam CDM:
Rang Dong Oil Field - Description
• Associated gas from oil production
captured on oil platforms
• Compressed at sea, then, piped to Vung
Tau City where processed to:
– ‘Dry gas’ (CH4-methane) for electricity
generation (substitutes for oil & gas)
– LPG (propane & butane) for domestic cooking
use
– Some dry gas for fertilizer, some condensate
for other industry
• Emission reductions occur on electricity
production
Trang 6Current Vietnam CDM:
Rang Dong Oil Field- Schematic
Trang 7Current Vietnam CDM:
Rang Dong Oil Field- Schematic
Trang 8Current Vietnam CDM:
Rang Dong Oil Field – CO2e Reductions
Trang 9Current Vietnam CDM:
Rang Dong Oil Field – CO2e Reductions
• AM009 Methodology chosen: ‘Recovery and
utilization of gas from oil wells that would
otherwise be flared, V2’
• AM009 was developed specifically for the
Rang Dong Oil Field CDM Project
• Rang Dong CDM registered with CDM EB on
4 February 2006
• See UNFCCC web site: http://cdm.unfccc.int /Projects/DB/DNV-CUK1133472308.56/view.ht ml
Trang 10Current Vietnam CDM:
Rang Dong Oil Field – CO2e Reductions
• Methodology only counts reduction in CO2
relative to avoided gas flaring – very
conservative, but easy to prove
• Does not calculate efficiency gains (emission
reductions) for natural gas for oil in
electricity generation – again, easier to make case
• Does not calculate substitution of LPG for
current LPG (imports)
Trang 11– Project is alternative, i.e gas recovery
instead of flaring (reduction in CO2)
– Key lesson from Rang Dong PDD baseline
is:
KEEP IT AS SIMPLE AS POSSIBLE!!!
Trang 12Current Vietnam CDM:
Rang Dong Oil Field – Assumptions
PDD makes assumptions
very clear:
Trang 13Current Vietnam CDM:
Rang Dong Oil Field – Compare options
PDD makes assumptions
very clear:
Trang 14Current Vietnam CDM:
Song Muc Hydropower Description
• Project is a retrofit of earlier (1980)
hydropower station that operated for very
short time
• Project aims to install new state-of-art
turbines, penstock, governors, etc.
• Will have capacity of 2MW, power generation
of 7 200 MWh pa
• Cost US$2 mi
Trang 15Current Vietnam CDM:
Song Muc Hydropower PDD
• AMS-I.9 Small scale methodology fro
grid-connected renewable electricity
generation sought
• http://cdm.unfccc.int
/Projects/request_reg.html (registration request on UNFCCC site)
Trang 16Current Vietnam CDM:
Tra Linh 3 Hydropower PDD - Description
• PIN & first version PDD prepared
• 3 units small hydro 2.4MW (x3 = 7.4MW)
• Qualifies as ‘small scale’ under Marrakech Accords to KP
• PDD states avoided 170 000 tCO2e on national grid for ten
years, but, needs to set out reductions during CP
• Participants are:
Trang 17Current Vietnam CDM:
Tra Linh 3 Hydro PDD - Location
Location of the project
Quang Nam
Trang 18Current Vietnam CDM:
Tra Linh 3 Hydro PDD – Project Boundary
Trang 19Current Vietnam CDM:
Tra Linh 3 Hydro PDD - Design
7.2 MW Fore bay
Trang 20Current Vietnam CDM:
Tra Linh 3 Hydro PDD - CERs
emission reductions, tCO 2 eq
July 2008 – June 2009 16,984.6 July 2009 – June 2010 16,984.6 July 2010 – June 2011 16,984.6 July 2011 – June 2012 16,984.6 July 2012 – June 2013 16,984.6 July 2013 – June 2014 16,984.6 July 2014 – June 2015 16,984.6 July 2015 – June 2016 16,984.6 July 2016 – June 2017
Trang 21Current Vietnam CDM:
Tra Linh 3 Hydro PDD - Additionality
• Clearly sets out barriers:
– Investment – Vietnam investors can make more money in other sectors
– Policy – lack of renewable energy policy;– EVN has monopoly – so, PPA (including economic price) difficult to negotiate
– Competition for funds with state-owned companies,
Trang 22Current Vietnam CDM:
Tra Linh 3 Hydro PDD – Case for CDM
• Increases IRR of project
• Increases access to international funding
• Reduces risks of project
• Incentivises investors to come into sector
• Results in local development
• Results in reduced GHG emissions
Trang 23Current Vietnam CDM:
Sector/project ideas
• Pulp & paper boiler replacement
• Energy efficiency in steel
• Waste heat recovery from cement
• Improve energy efficiency at rubber plant
• Biomass waste for cogeneration (CHP)
• Fuel switch natural gas for HFO
• Landfill
• Cogen & EE in beer factory
Trang 24Current Vietnam CDM:
Sector/project ideas
• Pulp & paper boiler replacement:
• Energy efficiency in steel
• Waste heat recovery from cement:
AM 0024
Methodology for greenhouse gas reductions through waste heat recover
y and utilization for power generation at cement plants
ACM 0003: Emissions reduction through partial substitution of fossil
fuels with alternative fuels in cement manufacture - Version 3
• Improve energy efficiency at rubber plant
Trang 25Thank you!
Mike Bess Director, International Division Energy for Sustainable Development Ltd.
+44 1225 816 808
mike@esd.co.uk www.esd.co.uk