Reduce greenhouse gas emissions in Thailand

PROPARCO in North and Southeast Asia

Reduce greenhouse gas emissions in Thailand

Beginning: 2005
Financing: € 6,5M loan guarantee in local currency
Partner: Thai Biogas Energy Company Limited

Context
As the world’s biggest exporter of manioc and its derivatives, Thailand occupies an extremely dominant position in this market. Production is destined for the most part for (i) the manufacture of starch (44% of production) mainly used in the food-processing industry, (ii) the production of ethanol (iii) direct use in food for people and animals.
The milling of manioc starch produces sediment, which comes from the water used to rinse the manioc. The sediment is stored outside in foul-smelling basins and releases into the air important quantities of methane resulting from the chemical decomposition of organic manioc residue.
PROPARCO is taking part in a project run by THAI BIOGAS ENERGY COMPANY (TBEC), which is constructing power plants to produce biogas and electricity from this sediment. This project will have an extremely positive impact on the environment, both at a local level, by valorising stored waste products, and on a global level by reducing the amount of methane released into the air.

Project objective
The project aims to produce methane and electricity used by the starch factories by valorising one of their waste products. The project comes within the framework of two of the Thai government’s principal strategies: the development of renewable energies and the strengthening of its food processing industries through the creation of new openings for this sector. It also part of PROPARCO’s strategy to reduce greenhouse gases.

Project description
TBEC has completed the construction of, and is responsible for the management of, three plants for the production of biogas by the anaerobic digestion of residual sediment derived from the process of milling manioc starch. Small electricity power plants are combined with the biogas production units. TBEC is also planning the construction of a biogas production plant fuelled by the anaerobic digestion of palm oil effluent. The company subsequently intends to further develop other partnerships with starch factories and the palm oil industry. The starch companies (or ‘host companies’) have provided land for the construction of the power plants, where the process of decomposition of the manioc sediment and the harnessing of the methane in the form of biogas can be safely and efficiently overseen in a closed environment. The biogas is then used in place of heavy fuel oils, both by the starch factories, who use it to power the starch drying ovens, and by the power plants, who use it to produce electricity with a gas generator.
The total cost of the project is estimated at 11.3 million euros, half of which is self financed. PROPARCO is supporting TBEC by way of a loan guarantee in local currency. This enables TBEC to further develop such innovative technology before getting into other South-East Asian markets

Impacts

JOB CREATION
The project creates around twenty-five direct jobs per site, of which approximately ten are skilled jobs. All employees are given specialist training by TBEC.

CREDIT CARBON
This project should be amongst the first to be approved by Thailand in the framework of the Clean Development Mechanism. The TBEC power plants greatly contribute to the reduction of greenhouse gas emissions in two ways: firstly by harnessing methane which would otherwise be released directly into the atmosphere; and secondly, by replacing heavy fuel oils with biogas, to power both the drying ovens and the electricity generators. The reductions in CO2 emissions generated by TBEC are estimated at 165 000 tons of equivalent carbon dioxide per year, for the four power plants already in service or under construction.

E&S
TBEC power plants also significantly decrease both olfactory pollution and the risk of pollution to the water table caused by the disposal of waste sediment by the host-company, since the content of organic pollutants in the waste water is reduced by 95%.

Link

Thai Biogas Energy Company Limited (TBEC) website

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