Egypt electric energy [profile for Council]

ESTIMATED APPROVAL DATE: July 1996

PROJECT DURATION: Three years

JORDAN: REDUCTION OF METHANE EMISSIONS AND UTILIZATION OF MUNICIPAL WASTE FOR ENERGY IN AMMAN

COUNTRY AND SECTOR BACKGROUND

Operational Programme

1. This proposal is formulated in line with the Operational Strategy approved by the GEF Executive Council in October 1996 and as such is elaborated in response to the Climate Change Operational Strategy, Operational Programme No. 2 "Promoting the Adoption of Renewable Energy by Removing Barriers and Reducing Implementation Costs". The proposal therefore represents an attempt to remove existing barriers to the effective adoption of grid connected biogas technology in Jordan. The barriers being addressed through the present project therefore are the technological barriers, information barriers and capacity barriers. As also referred to in the Operational Strategy, chapter 3, para. 3.28, the present project will: "reduce implementation costs through selected demonstration of the technologies and of cost recovery principles. Grants may also be needed to meet the incremental cost of purchased units in order to stimulate demand and thereby achieve economies of scale."

Background Information

2. Jordan is a relatively small country east of the Mediterranean, with a population of 4 million. Jordan is highly urbanized with its capital in Amman with a population of over 1.35 million. Zerka, which lies 20 kilometers to the North East of Amman is the second largest city with a population of 0.6 million. The rate of increase in population of these two cities is almost 4-5% annually. In spite of this, the two cities are relatively clean, with no slums, and municipal waste is collected regularly. The waste is, however, mainly dumped in the desert outside Amman in a landfill where it ferments emitting methane; as this is an older landfill it also self ignites occasionally. Methane is a major greenhouse gas. Its contribution to the warming effect per tonne of emissions is 24.5 times that of CO2. Landfills, beside emitting greenhouse gases in large quantities, produce other problems such as leaking of toxic waste into ground-water, smells and other health hazards. The leakage problem is especially serious since the leakage of toxic waste into ground water basins could damage Jordan's already scarce water resources. Jordan's solid municipal waste is very rich in organic materials (more than 65%) which makes methane emissions not only large but also the problem of leaking of toxic waste into the ground water more acute.

3. Other than very limited production of natural gas, Jordan has practically no energy sources. It depends entirely on imported crude oil from neighboring countries. Any indigenous source for producing energy in the country, such as utilization of municipal waste, is therefore of great interest to the country.

4. Municipal Solid Waste (MSW) can be utilized as an energy source in many ways, the most common of which is to burn it as a fuel in special power stations or to cover it and allow it to ferment in a properly protected landfill, where the methane gas is then tapped for residential and industrial use or fired in gas engines for production of energy. A new innovative approach, introduced in this project, is to sort the waste and utilize the "clean" organic high energy content part of the waste (from slaughter houses, diary plants, industries, etc.) in special biogas plants where, within a fortnight, it would be able to ferment and produce large amounts of methane (400 cubic meters per tonne of waste). The residual material can be utilized as rich fertilizer and soil conditioner in agriculture. Such clean waste constitutes around 20% of the MSW of Amman.

5. A project for utilizing MSW can act as a demonstration case and as a model for other countries in the Arab region which have limited energy sources. It can be a show-case for a GHG neutral and non-nuclear replacement for fossil fuels. Because it is particularly rich in organic materials, Jordan's MSW can contribute a large amount of methane if the "clean waste" part is utilized in biogas plants and the rest buried in sealed landfills, and the extracted gas utilized. MSW and industrial organic waste can generate 800 KWH or more per tonne from biogas plants and 300 KWH per tonne from sealed landfills. In the case of the city of Amman, this means that with full future utilization, a potential 200 GWHs (Gigawatt hours) of electricity can be produced annually. By developing countries' standards, this is a large amount of electricity and is almost 5% of Jordan's electricity needs. This should therefore justify future investment in power generating plants utilizing MSW once the technology has been successfully introduced to Jordan.

PROJECT OBJECTIVES

Overall Objective

6. Reduction of greenhouse gases is of a major concern for the human society and a major goal of the Global Environment Facility as well as of the Framework Convention on Climate Change to which Jordan is a signatory. The overall potential for reduction of this greenhouse gas emission in the Arab and Middle East region using biogas and landfill gas technology is significant. In a country such as Jordan, these technologies could reduce the emission of methane and carbon dioxide by up to 30% and 2% respectively. To date biogas and landfill gas technology have not been introduced into these regions although problems with increasing amounts of waste have been identified in many of the Arab countries. Therefore, a successful demonstration project would have a great potential for replication within the region.

7. The present project calls for studying and implementing quick measures to reduce greenhouse emissions from existing MSW in the landfill of the Municipality of Greater Amman (MGA) and constructing a prototype biogas plant utilizing methane extracted from the MSW for power production and ensure its dissemination. Beside the amount of greenhouse emissions curtailed, the benefits would involve capacity building in this sector, electricity sales to cover production costs, fertilizer production and other local environmental benefits such as the prevention of ground waste basis contamination, reduced landfill disposal problems, (i.e. smells, vermin, disease spreading, land use etc.).

Immediate Objectives

8. The short term objective of the programme is to implement measures to limit the present environmentally detrimental emissions from Amman's landfill, to study the environmentally cleanest way for treating and utilizing this waste and to implement a methane gas production facility and, underpinning the entire exercise to create capacity in Jordan for the continued and expanded operation of such biogas installations. This capacity building project will lead to subsequent larger investments which aim at curbing all methane emissions from Amman's MSW and utilizing the waste as an energy source. Therefore, the long-term objective of the programme is to build-up a full scale project utilizing MSW as an energy source, in order to limit greenhouse emissions taking place now from Amman's municipal waste.

9. Such a programme should be implemented in stages. The first step is the present proposal which covers the technical assistance stage. A subsequent stage would be an investment stage, which would follow the present GEF project. Based on the present investment climate in Jordan, it is anticipated that most of these investments will come from the domestic and international private sector. UNDP is in discussion with the government of Denmark and expects a commitment of $ 1.5 million for this project. In addition, the government of Denmark has expressed some interest in extending a mixed credit facility to Jordan for further investment in this field. The ceiling for such a loan is US $ 10 million.

10. The present project will implement the following: (a) Reduce environmental impact and methane emissions from Amman's municipal solid waste by technical assistance that aims at improving the methods and techniques of collection and landfilling of the existing waste; (b) Study the technical options for collecting methane from the municipal solid waste, and its utilization as an energy source; and (c) A demonstration of a cost-recovering plant, where methane produced from MSW in a biogas reactor, is utilized for electricity production in a gas engine.

11. A subsequent investment stage will utilize the results of the present project in implementing a larger scale programme for energy production from waste. Such an investment programme would be implemented with the help of development investment funds, providing an even greater contribution to the GEF goals.

PROJECT DESCRIPTION AND OUTPUTS

Project and Related Programme Context

12. MSW in the Municipality of Greater Amman (MGA) area amounts to almost 0.7 million tonnes annually; 20% of this is "clean" waste (very rich in organic materials) which is produced from dairy factories, slaughter houses, leather factories and other industrial processes. The project will ensure that the methods of collecting this MSW from MGA is done in an environmentally clean way and delivered to a central point where it can be utilized as a source of energy. The methane will be used for electricity production at a plant (powered by a methane gas engine) to be placed near to the current landfill in Amman which accepts all wastes from the greater Amman area.

13. Amman's MSW is presently dumped and then covered in a well managed and maintained landfill at a very large site outside Amman. Dumping has taken place at this site for approximately five years and is estimated to be filled in 2013. During the last few years much of this MSW has fermented, and methane is being emitted to the atmosphere. These emissions are currently not utilized. Moreover, some large industries in Amman have their own dumping sites which are not well prepared, and these too emit methane.

Feasibility study

14. A feasibility study was funded using GEF PRIF (Pilot Phase) resources. This work was carried out in 1993 and early 1994 over an 8-month period. The study was conducted by a group of Danish institutions and engineering companies in partnership with a local group of Jordanian institutions. The group of experts who visited Jordan during this study comprised biogas, landfill, energy laboratory and educational experts and worked with their Jordanian counterparts studying and analyzing the various facets of the project.

15. During this study, the team visited Jordanian governmental agencies and different institutions where they met with Jordanian officials and discussed project parameters with them. They also visited the MGA dumping site in el Russiefh and different factories and producers of organic waste. During the feasibility study, the patterns necessary for implementation and development of biogas and landfill technology in Amman have been identified and a training program for the transfer of technology has been defined.

16. Beside the Municipality of Amman, the Jordan Electric Authority will play an active role in the project while the Ministry of Energy and Mineral Resources will be responsible for the dissemination of the results collected during the project. The University of Jordan together with the Royal Scientific Society were found to be suitable for scientific back-up and support of the project.

17. By securing proper training and transfer of technology in connection with proposed project, the demonstration facility will have a potential as a center for implementation of this technology in the Middle East. This will be highly enhanced by Jordan's active cooperation with its neighboring countries. Furthermore, the highly active and influential non-governmental organizations (NGO's) of Jordan who work with environmental issues will be a powerful tool for spreading the technology.

18. The Municipality of Amman is well suited to a municipal waste methane emissions reduction and biogas production project because of its orderly, well managed system for solid waste collection and disposal. Under the GEF Pre-investment Facility (PRIF) a preliminary assessment of project potential was carried out resulting in the preparation of a full technical feasibility study. (This 116-page study is available upon request.)

19. As this technology is well known and understood in northern Europe and to further familiarize the Jordanian authorities with the technology, Jordanian professionals visited, under the PRIF financing, Danish biogas plants, the Danish ministries of Energy and of Environment and companies involved in biogas production, landfills and other environment and energy related facilities in Denmark.

20. The Feasibility Study recommended the following:

(a) Use the MSW collection system in Amman to ensure that all MSW from households and industries is collected and transported to the MGA landfill dumping site. During collection, separation should be undertaken so that "clean" high organic content waste collected from slaughter houses, dairy factories and other industries is segregated from other household and related waste streams. This clean industrial waste, which constitutes 20% of the MSW of Amman, is of high calorific content and is to be diverted to biogas plants while the rest of the waste will go to a landfill. While the flow of some of the organic waste sources may be fluctuating with seasonal and random variations, this is not serious and would not influence the demonstration plants, as they are merely using a fraction of the amounts of wastes available. The main waste sources for the biogas plants do not fluctuate seasonally. During the implementation of the present project, seasonal fluctuations will be further studied in preparation for a larger investment programme once the technology has been successfully demonstrated.

(b) Build a demonstration biogas plant which would utilize, in the first stage, 50- 80 tonnes per day of the 200-300 tonnes daily "clean" MSW. This plant will involve reactor tanks (total active volume of about 1,750 - 2,000 m3) where the organic waste is heated to 55°C in a thermophilic fermentation, and the resulting methane is burned in a methane fired engine to produce electricity. The exhaust heat of the engine is utilized for heating the reactor. Such organic rich waste produces biogas with a composition of 65% methane with CO2 claiming the other 35%, while normal MSW has only 50% methane. The industrial "clean" waste normally produces 400 cubic meters or more of biogas per tonne of waste. This amount of methane is capable of producing 800 kWHs of electricity. Therefore, the 50 tonnes per day demonstration plant will produce approx 40,000 kWHs per day. MGA's entire organic rich waste is capable of producing 100 GWH per year through a future investment programme. Such amount may double to 200 GWH per year very early in the next decade due to the rapid increase in production of industrial MSW in Amman with organic rich content. The divergence between summer and winter temperatures in Jordan, which based on daily averages range between 30°C and 10°C, will have no influence on the process temperature in the biogas reactor, as these are insulated and regulated using excess heat from the energy production unit.

(c) Undertake a pilot project to extract methane from the existing landfill where it has fermented during the last few years. This methane can be recovered and fed to a methane fired engine where it would produce electricity. This pilot project is necessary to demonstrate the practicability of the approach and also to assist in assessing the amount of methane that can be extracted, now and in the future, from this site, so as to a facilitate the options for a future investment project. In the present project, two 500 kW methane fired generators are included, one burning purely biogas from the waste treating reactors and the other accepting a mixture of biogas and landfill gas. For a future investment programme, Jordan Electric Authority (JEA) has proposed that they supply the equipment and facilities to connect the methane fired generating plant to the national network. This electricity could be partially utilized at the site but the major part would be sold to industrial users at favorable prices, with the plant paying a small fee for rent of transmission lines. Excess power will thus be fed into the national grid. In the future, JEA would provide one or more gas turbines to utilize the full output of the methane from the site when the future investment project is undertaken and centralized gas delivery is deemed most economical.

(d) In order to provide an appropriate investment climate, the present technical assistance project will also conduct a training, management and education programme in the implementation of the present project to ensure that suitable conditions are created for future investments in this sector.

Such a programme will include the following components:

(i) Study of the MSW, its constituents, contents and preliminary estimate its calorific value (with seasonal variations) and prospective energy output; with particular emphasis on the organic rich "clean" waste and its segregation from the rest of the MSW;

(ii) Assessment of the quantity and quality of MSW, available to the year 2010;

(iii) Examination of the present ways in which the MSW is handled and dumped by MGA and the suitability of the site utilized. Small industrial dumping sites will also be examined, the emissions and environmental degradation therefrom and immediate measures for implementing a more environmentally clean way of handling and treating solid waste will be studied;

(iv) Evaluation of the technical options and costs of dealing with the waste and its utilization as an energy source, through the above two proposed prototypes in methane recovery and biogas production; analysis of the methane gas results of the projects (qualities, calorific value, etc.). Supervision of the implementation of the above mentioned pilot demonstration project, and study its output;

(v) Depending on the results of the above demonstration project, development of local and regional capacity to design least cost solutions for utilization of the MSW for energy production. This involves designing, for submission to financiers, an investment programme which extracts as much methane as possible from the MSW and utilizes it as an energy source, most likely for producing electricity.

(e) Capacity building, human resources and training. An extensive capacity building and training programme forms part of the project objectives. This programme not only aims at training in the operation of the demonstration plant, but also at making training available in Jordan for others involved in replicable projects in the entire region. A more detailed description of the capacity building and training programme is provided in the Feasibility Study.

(f) That the project could be owned by a joint company formed by the municipality and the Jordan Electric Authority. The municipality would be responsible for the collecting and separating the waste and delivering it to the biogas plant. The company would be responsible for the production of biogas, operating the gas engines and selling the electricity, the compost and disposing of the refuse. The company would try to operate on a commercial basis and attempt to generate profits which would be fed back into the project to expand it and improve its performance. The company would be run by a Board of Directors and chosen by the Municipality and the JEA, and would also have members from the Ministry of Energy and Mineral Resources (MEMR), from the University of Jordan and also from the Royal scientific Society and the environmental NGOs. The idea of having a Board of Directors with a wide membership is not only to insure the success and commercial operation of the plant, but also to encourage research and the development of bio-technology in Jordan and microbiology in particular. Such a company would be called the Jordan Biogas Company (JBC).

Project Description

21. The project activity will be within the boundaries of the Greater Amman Municipality. Its MSW collection will be extended to include MSW collected from other neighboring municipalities in the Amman and Zerka Governorate, the suggested site for the demonstration biogas plant.

22. The project will address a number of barriers. These and the associated activities are listed below:

Barriers

(a) Information Barriers:

(i) Lack of widespread information in Jordan on the possibility of extracting methane from MSW and for its use in electric power generation;

(ii) Need for additional information and data on the in-country biogas potential, especially in the context of industrial sites;

(iii) Need to strengthen popular involvement of local communities in household issues pertaining to waste management. Activities to overcome information barrier:

a. Study of MSW of Greater Amman area: quantities and constituents (with seasonal variations) present methods of collection and transport, dumping, and disposal, and segregation of "clean" waste;

b. Estimation of emissions and other environmental impacts from the present MSW;

c. Introduce and implement methods to ensure immediate and cleaner handling of all MSW available in MGA in order to limit global emissions and local pollution;

d. Finalize the designs required for utilizing MSW as energy source for MGA;

e. Information to policy makers re. the technological choices available in Jordan for energy from hydro-carbon alternatives; f. Involvement of two Jordanian NGOs (Queen Alia Fund and Jordan Society for the Environment) in outreach work to create a broader awareness of pollution prevention and the role and involvement of women in this context. (b) Capacity barriers: (i) Lack of technical know-how and skill in Jordan on the design and building of medium and large scale biogas plants; (ii) In spite of very high level of national cadres, lack of trained Jordanian staff in the operation and management of the combined landfill and biogas plant; (iii) Lack of capacity of the Ministry of Energy, especially in the Renewable Energy Unit and JEA, to design and plan for biomass/methane projects for replication projects. (iv) Ministry of Energy and JEA's insufficient knowledge on bioenergy and lack of administrative capacity for the implementation and replication of such projects in Jordan; (v) Limited scientific involvement in bioenergy field in Jordan. Activities to overcome capacity barrier: a. Provision of training of technical plant personnel, technicians and design engineers in the technological choices and possibilities of bioenergy. b. Upgrading of capacity of MGA, JEA and JBC personnel regarding technical operation of medium and large scale biogas plants. c. Encouragement to University of Jordan academic staff to establish twinning arrangements with centers for bioenergy specialists. (c) Technology barriers: (i) Urgent need, in the sub-regional context to demonstrate viable, working alternatives to carbon based fuels for subsequent replication. (Currently, there are no similar biogas production plant exists in Arab region.) (ii) Lack of awareness of technological option in areas such as the Palestinian Territories, Israel, Lebanon and other countries in the sub-region who are net-importers of carbon-based fuels. (iii) Combined landfill/biogas plant is a new (in the sub-region and in GEF portfolio context) and viable technology which will provide important demonstration effect for subsequent interventions worldwide. Activities to overcome technology barrier: a. Construction and start-up of a combined landfill gas plant and medium scale demonstration biogas plant for treatment of organic municipal and industrial waste in Amman. b. Preparation of a detailed plan for the collection and transport of organic waste resources to the landfill and the biogas plant. This will be developed based on available MGA studies on waste resources. c. Determination of optimum composition of waste resources for the biogas plant and elaboration of a plan for collection of waste resources. The latter will be done in close cooperation with the City Council and waste generating industries. d. Preparation of a master plan for bioenergy in Jordan to form part of Jordan's overall Energy policy. e. In conjunction with established plant and in cooperation with a Jordanian scientific body (e.g. University of Jordan or Jordan Scientific Council), establish a small outreach center which can conduct briefing sessions, tours and provide information dissemination on the possibilities of biomass energy and lessons learned. f. Design a least-cost future investment programme for utilization of the full MSW as an energy sources.

Outputs

23. Major project outputs are: (a) A more environmentally sound management of MSW so as to reduce emissions and pollution specially the protection of the ground water basins; (b) The implementation of a demonstration prototype project for producing methane gas and its utilization as an electricity source; (c) A detailed plan for future utilization of all MSW as an energy source; (d) The creation of human capacity in order to ensure that a sustainable environment for such a future programme is developed; (e) A prototype demonstration project for methane production and its utilization for electricity production which includes a large-scale demonstration biogas reactor system and a pilot-scale landfill gas extraction system; (f) A demonstration plant with active outreach capacity for replication in the Middle East and beyond; (g) The generation of greater awareness of household waste issues and the active involvement of local communities in management of household waste matters; (h) A least-cost, long term plan for utilization of waste as an energy source; the plan will cover engineering and energy details, estimation of costs and necessary conceptual designs which would allow the presentation of a programme for future financing.

RATIONALE FOR GEF FINANCING

24. The project is developed in line with the GEF Operational Strategy's second Operational Programme: "Promoting the Adoption of Renewable Energy by Removing Barriers and Reducing Implementation Costs"

.25. A combined landfill operation and biogas plant does not exist in any other developing country and a project in Jordan will have a good chance of success because of the orderly manner in which solid waste is handled in Jordan. The Jordanian project is innovative in that it introduces two new concepts: the first is the utilization of a large biogas plant which produces methane in large quantities and in a very short time so that the MSW can be commercially utilized almost immediately as a viable national and commercial source of energy; secondly, it aims at extracting existing methane from the MSW which has fermented during the last few years and using it immediately as an energy source. The project also has a demonstration value and it is part of the project to support the adoption of similar projects in neighboring countries. A few countries in the region are already implementing projects for utilization of municipal waste as a compost and with little treatment; this does little, however, to help curb emissions. The project will demonstrate that through an environmentally sound management of MSW, useful energy can be produced as one of its products, and that environmentally clean technologies can be highly productive technologies.

26. Even though the World Bank and the UNDP both are involved in electrical power projects in Jordan, the two institutions have financed and executed only one project (Energy Sector Management Assistance Program - ESMAP). However, some of the work which each institution executes complements the work of the other. For example, the UNDP project on the Electricity and Energy Information Data Bank, which has been executed and became fully operational at the end of 1995, serves the common purpose of both institutions in capacity building in the power sector in Jordan. The ESMAP project is another example of the co-ordination between the two institutions. It is the most important of the World Bank and UNDP partnerships in Jordan and has already executed a number of technical assistance programs in the region, most important of which is the capacity building project in training managers in Planning Energy and Electricity Projects. ESMAP is jointly financed by UNDP and the World Bank. The two institutions are, therefore, dovetailing their work programs in Jordan by partnerships, co-ordination and complementing the work of one another.

27. This project serves the purposes of GEF in a number of different ways: (a) it helps to curb a major source of greenhouse gas emission, i.e. methane gas emitted by municipal waste; (b) by utilizing waste as an energy source, it saves burning an amount of fossil fuels of the same calorific value, thus further reducing greenhouse gas emissions (c) it assists in a cleaner local environment, and therefore serves aims of sustainable development; (d) it transfers innovative technology for waste utilization for energy purposes to a developing country; (e) it has a demonstration value to other countries and areas in the region and (f) it will provide a show-case as to how to remove barriers to the development of methane resources from municipal solid wastes. Particularly, the demonstration effect will be of high value to the Palestinian areas of the West Bank and Gaza Strip and also Lebanon as all of these areas are suffering from energy shortages and from municipal waste problems.

28. Given Jordan's financial structure and the intense competition for loanable funds, it is highly unlikely that the project as defined would be undertaken with full funding from either the private or the public sectors.

29. There are clearly identifiable positive externalities to the global environment which would result from the implementation of this project. Jordan, unfortunately, would not be in a position to capture these externalities. The global externalities involved would only decrease the ranking of the project in the list of projects which might be considered by Jordan. The main global externality is the demonstration effect of the project on other initiatives, especially in the West Bank, Gaza and Lebanon. Moreover, a recent UNIDO study has described the replication potential in Tunisia, Morocco, Senegal, Egypt and Syria.

30. The global environmental lessons learned in Jordan will greatly reduce the cost of identification, design and implementation of similar projects. A second externality will be the availability of regional experts (a product of the capacity building component of the project). These experts who will combine theoretical, practical and regional knowledge, will be invaluable to other global environmental efforts in the region in fields such as energy production from biogas and related subject areas. The plants themselves could be utilized as a "live" laboratory for the personnel of similar projects in other regions of the world.

31. It is worth noting that both the technology and the product are market tested and proved in the developed world. The project has a great potential as a promotional effort. By some estimates, as many as fifty replicable projects (with a potential reduction of 25 million tonnes CO2 avoided per year) can be expected. All of these projects will benefit from the externalities of the Jordan project.

32. It must be recognized that methane constitutes, by volume, more than half of the gases emitted by municipal waste (the other half is CO2) and 65% of the gases emitted from the organic rich waste. Methane has 24.5 times the greenhouse effect of CO2; therefore it is expected that by utilizing this methane as an energy source, such emissions would be curbed, and that the greenhouse gases emitted from the processed waste would be only a very small fraction of the greenhouse gases presently emitted by the existing fermenting municipal waste. Also, through utilization of MSW, an amount of energy (equal in heat value to the MSW) is saved, thus also saving further greenhouse emissions from existing fuels utilized as energy sources.

33. The amount of methane presently emitted from the MSW in Jordan is about 40,000 tonnes per year which potentially could be reduced to less than the 20,000 tonnes by implementation of biogas and landfill gas technology. This will be equivalent, in 1995, to a greenhouse effect equal to almost 1/2 million tonnes of CO2 per year and would continue to increase by an amount of 4-5% annually. The proposed project will substantially reduce this.

34. As the plant is expandable up to three times its initial capacity, the eventual investment could total $10 million once the viability has been demonstrated in the Jordanian setting.

SUSTAINABILITY AND PARTICIPATION

Government commitment

35. The Government of Jordan puts great emphasis on development of local energy sources utilizing indigenous resources. This is one of the central pillars of the Government's national energy plan. The Government is also very anxious to ensure environmental cleanliness and avoid pollution, both locally and globally. Environmental management of the country is entrusted to the Ministry of Municipal and Rural Affairs and the Environment, which supervises environmental protection and activities of the municipalities. The Municipality of Greater Amman is responsible for the collection and disposal of the MSW: cleanliness and environmental protection is also one of the main emphasis of the Municipality. The project will serve the developmental strategies of both the central Government and the local Government (the municipality).

36. Utilization of renewable energy sources (MSW being considered a renewable source) is also the aim of the Jordan Electricity Authority. The project, through its emphasis on environmental cleanliness and useful utilization of waste to produce a renewable energy source, serves sustainable development.

37. The amount of solid waste produced in MGA is increasing at a rate of 5% annually. The amount of energy produced annually from MSW is thus expected to rise. Residual outputs from such an energy plant can also be utilized elsewhere in the economy as fertilizers.

38. A situation where all proposed new electricity projects in Jordan obtained funding and were implemented, thereby rendering the present proposal obsolete is inconceivable based on a number of factors: (a) The cost of the biogas production facility's operation, once successfully demonstrated, will be competitive with other electricity production systems; (b) The energy generation systems will have great additional advantages in solving a waste treatment problem and is environmentally attractive; (c) In industrialized countries, where electricity is produced from national and imported resources such as oil or natural gas, electricity from biogas production can be easily sold; (d) Part of the electricity produced will be utilized by the MGA for its own use.

39. The Government of Jordan has prepared and endorsed a national strategy on the environment in which the energy sector figures prominently. The expected annual growth rate in energy demand is 6%, and the Government is seeking to meet the demand in part from the renewable energy sector. The Government has created a separate department in the Ministry of Energy and Mineral Resources (Renewable Energy Department) to promote the use of alternative energy and energy conservation. The private-sector is encouraged to participate in the development and implementation of these alternative technologies.

40. The Government of Jordan has, moreover, committed $700,000 in cash contribution to fund the grid connection as well as other infrastructural and civil works. This is also an indication of the strong Government commitment to the project.

41. The projected growth in the municipal waste stream, the high organic content of these wastes, the already well-trained Jordanian staff, and the proven near commercial nature of the technology as well as the need to develop local energy resources, will provide a basis for sustaining the project.

42. The project is ideally suited to Amman. (1) With limited technical assistance, the relatively efficient waste collection and landfilling operations are capable of implementing measures to reduce and recover existing methane emissions. (2) The availability of organic wastes and the well-organized waste collection system facilitate separation of high organic content wastes for biogas production. (3) The new biogas production technology provides a more efficient, sustainable process than conventional biogas processes. (4) The proposed electricity production will contribute towards replacing greenhouse gas emitting energy resources.

Stakeholder commitment

43. During project preparation, in-country coordination of the project was ensured by the Municipality of Amman and the Ministry of Energy and Mineral Resources. In preparing the project, consultations were held with the following:Government institutions: (a) Ministry of Planning (b) Ministry of Energy and Mineral Resources (c) Municipality of Greater Amman (d) Ministry of Water and Irrigation, Water Authority (e) Jordan Electricity Authority (f) The Higher Council for Science and Technology (g) Ministry of Municipal and Rural Affairs and EnvironmentNGOs and Academic Institutions: (a) The Royal Scientific Society (b) The Society for Conservation of Nature (c) The Society for the Environment (d) The Queen Alia Fund (e) Department of Civil Engineering, University of Jordan (f) Department of Microbial Biotechnology, University of Jordan

44. All the above have expressed great interest and willingness to work with and support the present project.Incentive and regulatory system

45. Jordan's energy sector is supervised and coordinated by the Ministry of Energy and Mineral Resources (MEMR). The Ministry and the Jordan Petroleum Refinery Co. practically import all Jordan's energy requirements, mainly in the form of crude oil where it is refined in the country. Jordan is one of the few countries in the Middle East region that has no subsidies in the energy sector. Therefore, there is an incentive to conserve energy and also to develop alternative local sources of energy particularly renewables. The country has a prosperous solar heaters' industry and energy saving heat insulation industries which are encouraged, and given appropriate incentives by the Government, in order to reduce reliance on imported sources of energy.

46. Electricity production and transmission is undertaken by the JEA, while electricity distribution is carried out by two large privately owned shareholder companies. JEA is a semi-autonomous governmental organization which at the moment in the process of being privatized and will operate as a Government owned company, so as to have more flexibility and efficiency in its operation. However, JEA already operates as a financially independent utility. The electricity tariff, which is fixed by the Government at the recommendation of the JEA, allows for full recovery of all costs plus a reasonable margin of profits and partial self-financing capability. The tariff is progressive and, apart from the first category which caters for the low income small consumers of electricity, is relatively high peaking at 10 US Cents/kWh, for high consumption categories which is in line with OECD countries. Such a tariff encourages the introduction of renewables such as biogas electricity plants. A detailed list of Jordanian electricity tariffs is provided in Annex 2. The Government is also in the process of approving and legislating a new electricity law which would encourage and facilitate independent power production such as that of the JBC.

LESSONS LEARNED AND TECHNICAL REVIEWS

47. There are no similar projects in the GEF portfolio. The project is distinct from and complementary to the Pakistan and Tanzania municipal waste and the India bio-energy projects in that it is more narrowly focused on a two part demonstration project proposing a new digester system. It is also the first time that a combined landfill and biogas plant is built in a developing country. The India biomethanation project is in its take-off stage and relevant on-the-ground lessons from the India GEF experiences are therefore not fully available. However, some important lessons can already be gleaned from the early India project experiences. These include, the importance of writing a national master plan for bioenergy use and further, of insuring that the process of the writing this master plan is an inclusive one, invoking all stakeholders. The Pakistan waste-to-energy (World Bank) GEF project is experiencing some delays and there are therefore no on-the-ground experiences which can be reflected in the present project. While the Tanzania project only incorporates the methane production using biogas reactors (and thus does not cover methane extraction), the main preliminary lesson which can be learned deals with the importance of site selection, land rights and ownership. As the land proposed for the Amman site is fully owned by the MGA this problem is unlikely to arise in Jordan.

48. The present project was reviewed by a number of external reviewers and the project was strengthened accordingly. The comments of the reviewers pointed out to a number of unclear sections in the project brief and the brief has therefore been strengthened in order to fully reflect the existing data and Government commitments to this project.

49. In response to the query regarding the choice of operation at 55 degree thermophilic, an explanatory footnote has been added explaining the technical details. A query was also made by a reviewer's comment that electricity demand might be satisfied through conventional power supply. As Jordan is facing severe electricity shortages, the scenario of full electricity demand being satisfied through additional large scale investment, thereby rendering this plant obsolete is inconceivable. Additional explanatory text has been added to clarify this matter.

50. The reviewer's concern regarding waste flow fluctuations have dealt with extensively during the GEF funded feasibility study which formed the basis for this project proposal. In addition, seasonal flow fluctuations will be further studied during the implementation of the project.

51. With respect to the concern to the leachate, an explanatory footnote has been added in the brief pointing out that the project will in fact reduce leachate.

52. The text in the brief has been strengthened to reflect the fact that the feedstock will be freshly collected wastes. The methane calculations are made on this basis and a conversion factor of 24.5 used for CH4 to C02 (see also footnote #1 in project brief).

PROJECT FINANCING AND BUDGET

53. The project cost is entirely incremental (please refer to Annex 2 where detailed incremental cost analysis is provided). GEF funding to the extent of US $ 2,500,000 is proposed representing the most part of the project cost. In addition, negotiations are underway for contribution in the amount of US$ 1,500,000 from the Government of Denmark while the Government of Jordan will provide $700,000 cost-sharing covering a substantial portion of the incremental costs incurred. Total cost of project is $5,377,000.

54. The project will study the methods of municipal waste collection and landfilling in Amman and undertake actions to improve on these in order to limit existing emissions of greenhouse gases and environmental pollution and to study the best way for utilizing the MSW as an energy source in order to reduce emissions. This will involve the construction of a prototype project plant for methane production as a basis for design of a full-fledged project for utilization of the MSW of Amman as an energy source in the future.

55. The MGA will provide, at its cost, the site, civil works and delivery of solid waste and related facilities. JEA and MGA will also contribute to future facilities for methane gas utilization and electricity production.

56. The project will be implemented over the period 1996/1998.

INCREMENTAL COSTS

57. Detailed incremental cost analysis, in accordance with GEF Secretariat guidelines is attached as Annex 1.

ISSUES, ACTIONS AND RISKS

Potential Risks and Possible Corrective Measures

58. Potential problem: The gas from the landfill is polluted for a period and cannot be used in the gas engines. Solution: During landfill operations it is not uncommon that the methane from some of the pipes is polluted and cannot be fed directly to the biogas unit. the biogas plant includes a purification unit which is normally able to handle these impurities. A second solution is to feed the biogas plant so that the input contains more lipids. This will give a higher gas production from the biogas plant which can, for a period compensate for the fluctuations in the amount of methane from the landfill.

59. Potential problem: Trained staff do not remain at the plant. Solution: All trainees will be required to sign contracts to work on the plant for specific periods of time. A combination of salary packages and the prestige involved with the first plant of this nature should not, in the Jordan context, make it difficult to retain the staff in the country where the number of well trained people is very high.

60. Potential problem: Competition from other energy sources makes electricity from the plant too expensive. Solution: As (i) the electricity is sold to the grid at day-to-day market prices and (ii) it is unrealistic to imagine a drop in the prices, this problem should not occur. Today, no other renewable energy source (wind, solar energy) is able to compete with electricity from biogas in Jordan.

INSTITUTIONAL FRAMEWORK AND PROJECT IMPLEMENTATION

61. The Jordan Electricity Authority (JEA) is the Government owned utility responsible for electricity generation and transmission. JEA is a very well managed and efficient utility. It operates many energy facilities all over Jordan, none of which utilize municipal waste as a fuel source. However, JEA has been contacted, evaluated and it is clear that the new technology would not pose any problems for its capable staff. In this connection it is relevant to note that the JEA operates a power station firing natural gas in east Jordan.

62. The Municipality of Greater Amman (MGA) is responsible for municipal solid waste collection all over the boundaries of the greater city of Amman, which involves many suburbs and also the cities of Zerka and Rusiefeh. The municipality is well run and waste collection is very efficiently carried out, which is testified to by the cleanliness of the city. Under the arrangement contemplated, the MGA would be responsible for the collection and delivery of waste to the site of the current landfill, where the biogas plant will most likely be placed, and which is relatively close (10-15 kilometers) to the city center and also to JEA's main power station.

63. The project will implemented with the participation of the MGA and the Jordan Electricity Authority. The Municipality will be involved in all the aspects dealing with waste collection and delivery, also related transport and environmental matters and biogas production and landfill gas extraction. JEA will deal with methane utilization, electricity production and related technologies.

64. It should be noted that JEA has been actively involved in several renewable energy projects in Jordan (wind energy and solar power). JEA as well as the Ministry of Energy as a whole have demonstrated a high degree of readiness and support for the proposed project as it is being viewed as a potential major energy source for Jordan.

Monitoring and Evaluation

65. The project will be closely monitored in accordance with UNDP's established monitoring procedures. As such, therefore, ongoing performance monitoring will be provided by the UNDP Country Office and annual reviews, (Tripartite Reviews) will also be held with the participation of all project participants. During the TPRs, the project performance will be measured against established workplans, expenditures will be reviewed and overall technical performance will be assessed. In addition, a final evaluation will be carried out at the end of the project.

66. All technical designs will be subjected to independent review processes.

CALCULATION OF INCREMENTAL COSTSBROAD DEVELOPMENTAL GOALS

1. With a growing economy, Jordan's demand for electricity increased rapidly. Moreover, with the recent peace accord, investments are rapidly increasing, and the demand for power is increasing accordingly. As the tourism and hotel infrastructure expands, not only will the demand for power grow, but also the streams of municipal solid waste.

2. In view of Jordan's limited indigenous resources of energy, Jordan takes renewable energy activities very seriously. Active investment and experimentation have therefore been done in the wind and solar fields, but the initial investments and the price of the electricity produced have been too expensive and not competitive.

BASELINE

3. Jordan, and especially Amman, has experienced a rapid population growth (Jordan's present population growth is 3.5 % annually) during the last five years. This has partly been caused by natural population increase, partly by the return of many expatriates during the Kuwait invasion and partly caused by the boom which is being created by the peace accord. Amman is thus growing at a rate of nearly 5% annually. Zerqa, including its suburbs to the north-east of Amman is experiencing a similar growth and expansion rate. The municipalities of Amman and Zerqa share the same municipal landfill. Annual MSW collections amount to over 0.7 million tonnes of MSW (approximately 1,900 tonnes daily). At the present growth rates, by year 2,000 waste collection in the two urban areas will exceed 2,300 tonnes daily. Based on an estimated annual emission of CH4 and CO2 in Jordan of 120,000 tonnes (166 million m3) and 12 million tonnes respectively, the implementation of biogas and landfill gas technology in Jordan has the potential of a reduction of the total CH4 emission by 33.4 % and of the total CO2 emission by 2.2%.

4. Electricity production in Jordan in 1995 amounted to 5600 GWh (5.616 million kWh). The average annual per capita consumption is about 1400 kWh and the demand is rising rapidly. Electricity consumption by sectors is as follows:
Industrial : 35% Domestic : 30% Commercial : 11% Water pumping : 18% Others : 6%5. The electricity demand increased in 1995 by over 10.5% compared to 1994 figures and the rise has been steady. Based on projections, it is envisaged that electricity demand in the year 2000 would be at least 60% higher than in 1995.

GLOBAL ENVIRONMENTAL OBJECTIVE

6. The global environmental objective being pursued is the reduction of GHG emissions through this demonstration project by (i) capturing of GHG emissions from an established landfill, (ii) further reducing future landfill emissions, by introducing a biogas reactor system which will capture parts of the biodegradable waste that would otherwise have gone to the landfill and (iii) providing an alternative energy source to carbon based fuels in the form of methane gas produced from the combined landfill/biogas reactor system.

7. As such, this project has been designed to correspond to GEF Climate Change Programme #2: "Promoting the Adoption of Renewable Energy by Removing Barriers and Reducing Implementation Costs".

GEF ALTERNATIVE

8. As described in the project brief, the different components of the project will all focus on removing different barriers to the effective introduction, adoption and replication of this type of renewable energy source. The Feasibility Study carried out for the preparation of the present project confirmed the technical feasibility (waste streams, human and resource capacity, MSW handling and operation, landfill management, competitive pricing situation, excellent demonstration conditions, existence of interested investment partners and local community interest) of the present proposal.

9. Three main barriers have thus been identified which will need to be overcome to successfully introduce this technology in the Jordan and sub-regional setting. Component 1 (page 9) of the project lists the various Information Barriers: lack of information on technology, lack of data on in-country biogas potential and need to strengthen popular involvement in household-based MSW management issues. Activities have been designed specifically to meet and help overcome these barriers and the project lists these on page 9.

10. Component 2 of the project addresses the capacity barrier which the country is currently facing. While Jordan is a country with very highly educated and dedicated technicians at the graduate and postgraduate levels, these is not in Jordan at present an experience or full understanding among technicians of the possibilities offered by the bio-energy option. This is largely due to lack of exposure to the technology and the present project has been designed specifically to help overcome this barrier. This will enable Jordan to become a center of knowledge in this field, with active outreach and demonstration capacity not only to investors based in Jordan also to investors from the countries in the sub-region which are also dependent on oil imports.

11. Component 3 of the project addresses the technology barrier. In Jordan, there is an urgent need to establish the demonstration plant as the actual "seeing is believing" is probably the most important barrier to be overcome among policy makers, investors and technicians. An operational biogas plant would provide an excellent spring-board for subsequent investments in the sub-region. In view of the key role which Jordan is already beginning to play in the sub-region following the peace accord, this is indeed a most significant contribution which the GEF will be making. Jordan is the ideal location for this demonstration plant in view of its excellent municipal waste collection and management systems. However, in view of the enormous waste and energy problems which are presently facing the Palestinian territories, Lebanon in the sub-region as well as Egypt, Tunisia and Morocco in the Arab world, this plant has an enormous capacity for being the main catalyst which could lead to subsequent repeater investments in other countries.

12. As the detailed calculations in Annex 4 demonstrate, there are significant global benefits to be achieved as a result of this project. These calculations demonstrate that there is a potential GHG reduction of 436,300 tonnes of CO2 which can be avoided based on a 10-year scenario. If a subsequent follow-on investment were projected the GHG emission reduction scenario would be clearly be even more attractive.

Costs

13. The costs of this project are estimated to be $ 5.377 million, of which $ 2.5 is being requested from GEF. The Jordanian government has agreed to provide a cash contribution of $700,000 to ensure the grid connection and $ 677,000 equivalent in JD. In addition, the UNDP is in discussion with the Government of Denmark and UNDP expects a commitment of a grant of $ 1.5 million for this project.

14. A detailed Indicative Budget which includes an Incremental Cost summary is shown in Annex 3.

ASSURANCE OF REPLICABILITY (Demonstration Plant)

1. The average production price of the proposed combined biogas - landfill plant is calculated to be US 5.3 cents/kWh. This price is slightly higher than Jordan Electric Authority's (JEA) Long-Run Marginal Cost of generation (LRMC) of 4.3 US cents/kWh. However, considering the environmental advantages associated with a project of this type (prevention of contamination of water basins, reduction of landfill disposal problems such as smells, vermin and disease spreading), it is foreseen that these beneficial externalities should over-weigh the extra production cost and the Government of Jordan will therefore promote the technology after all relevant barriers have been removed. Apart from that, it should be noted that if a larger plant is constructed then the capital cost (investment) per kW will be lower resulting in an average production cost for the plant which will likely fall below JEA's LRMC making this type of plant as cost recoverable as an avoided conventional fossil fuel plant. This is even excluding the possible profits earned through sale of residue fertilizer and of course the above mentioned environmental benefits. These factors considered would make replication all the more attractive.

2. A detailed calculation of the plant's power production price is shown below.

TECHNICAL REVIEW
JORDAN: REDUCTION OF METHANE EMISSIONS AND UTILIZATION UTILIZATION OF MUNICIPAL WASTE FOR ENERGY IN AMMAN

OVERALL IMPRESSIONS

1. This is a good opportunity to install a modern biogas reactor as a demonstration to complement existing landfill which will also be improved for energy utilization. The present resource emanating from the MSW is mostly wasted and is also polluting. The opportunities of replicating the improved landfill and biogas reactors are very good for the region.

APPROPRIATENESS

2. This is most appropriate since the two stage approach of demonstrating firstly, improved landfill and using twenty percent of the MSW and, secondly, full scale biogas development later is a sensible strategy.

OBJECTIVES

(a) The objectives sound to be valid. (b) The objectives are appropriate and well focused. (c) The achievement possibilities are good, given the Danish experience based on failures and successes over the last decade and the good local infrastructure in Jordan. (d) Further details on the environmental opportunities or problems are required on monthly/seasonal flows of wastes in order to ensure optimal gas and electricity production throughout the year.

ACTIVITIES

3. The activities are divided into a technical stage and a future investment stage. The landfill improvement and utilization of the methane for electricity production is a very sensible first step especially when coupled with the biogas demonstration plants which utilize only 20 per cent of the wastes stream which is the most favorable for proving the demonstration. The subsequent investment stage seems to have been calculated based on maximum flows of feedstock and will require more careful analysis once the technical stage is underway. However, the flows of organic wastes and energy with the whole country seem valid.OMISSIONS IN BACKGROUND DISCUSSION (a) Monthly/seasonal waste flows of all types on a desegregated basis are required. The fluctuating summer and winter temperatures of Jordan will affect the waste streams and also the heat required to run the biogas digester and to produce electricity. (b) The importance of thermophilic 55 degree operation and the energy flows on a monthly basis are not sufficiently explained, especially the advantages thereto.

INSTITUTIONAL ARRANGEMENTS

4. These seem appropriate, but two questions arise. (a) What guarantee is there of counterpart activities and construction to ensure electricity sales? (b) What if all proposed new electricity projects for the country come on stream and there is no requirement of small amounts of MSW electricity?

FUNDING

5. The proposed level of funding seems appropriate. The training component should ensure some relevant experience from a hot country, e.g. Mediterranean, and a developing country, e.g. India, where similar attempts to use MSW had been tried.INNOVATIVE FEATURES (a) A two stage approach which initially improves existing landfill use to produce methane and also installs a demonstration biogas plants for methane. There are also good opportunities for country-wide implementation of organic wastes to energy plants. (b) The use of high temperature thermophilic biogas digesters is now well proved in Europe, especially Denmark; to my knowledge, it has not been demonstrated commercially in any developing country. (c) The replicability is good for the Mediterranean region and then elsewhere with similar climate. (d) The good local, technical and scientific capabilities appear excellent.

RATIONALE FOR GEF SUPPORT

6. Utilization of a wasted resource which is also polluting. The infrastructure exists to improve the utilization of this resource very quickly.

QUESTIONS AND CLARIFICATIONS

(a) Monthly waste and energy flows are required. (b) The output calculations should be independently checked with regard to methane CO2 and energy. (c) What is the potential value of the fertilizer byproduct which in the present proposal is not accounted for? (d) Is there a problem with the leachate from the landfill and cannot be stopped; would this be an ancillary benefit for the project?

ADDITIONAL COMMENTS

(a) There are good prospects for success and replication based on the existing Danish experience. (b) I suggest that the experience of Pakistan and Indian MSW, other Mediterranean countries and the southern United States should be included. (c) The proposed bioenergy center to ensure long term sustainability and replicability could usefully be funded by a small levy on the dumping fees or the profits of the enterprise. (d) Methane does not equal 21 times CO2 greenhouse forcing but the latest figures for 1992 are only 11 times and not 21 (IPCC 1992). (e) The wastes of the materials feedstock and the flows need to be made very clear as to whether they represent fresh collected wastes or airdry wastes or ovendry wastes.

7. These clarifications are useful in independent calculations of methane, CO2 and energy flows.

UNDP RESPONSE TO COMMENTS OF EXTERNAL TECHNICAL REVIEWER

JORDAN: REDUCTION OF METHANE EMISSIONS AND UTILIZATION OF MUNICIPAL WASTE FOR ENERGY PRODUCTION IN AMMAN, JORDAN

GENERAL REMARKS:

1. The comments of the reviewer pointed out a number of unclear sections in the project brief and the brief was therefore strengthened in order to fully reflect the existing data and Government commitments to this project.SPECIFIC AREAS WHERE PROJECT BRIEF WAS STRENGTHENED: (a) In response to the query regarding the choice of operation at 55 degree thermophilic, an explanatory footnote has been added. (b) As Jordan is facing severe electricity shortages, the scenario of full electricity demand being satisfied through additional large scale investment and the plant thus rendered obsolete is inconceivable, and additional explanatory text has been added to clarify this matter. (c) The Jordan Electricity Authority has undertaken to commit all funds ($700,000) necessary to ensure grid connections with the plant and provision of necessary equipment, thus demonstrating its keen interest and commitment to this project. (d) The reviewer's concern regarding waste flow fluctuations have dealt with extensively during the GEF funded feasibility study which formed the basis for this project proposal. In addition, seasonal flow fluctuations will be further studied during the implementation of the project (see also page 5 of proposal). (e) With respect to the concern to leachate, an explanatory footnote has been added in the brief pointing out that the project will in fact reduce the leachate. (f) The text in the brief has been strengthened to reflect the fact that the feedstock will be freshly collected wastes. The methane calculations are made on this basis and a conversion factor of 24.5 used for CH4 to C02 (see also footnote #1 of proposal).

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PROPOSAL FOR REVIEW

TECHNICAL REVIEW JORDAN: REDUCTION OF METHANE EMISSIONS AND UTILIZATION UTILIZATION OF MUNICIPAL WASTE FOR ENERGY IN AMMAN

TECHNICAL REVIEW
JORDAN: REDUCTION OF METHANE EMISSIONS AND UTILIZATION UTILIZATION OF MUNICIPAL WASTE FOR ENERGY IN AMMAN