A Guide for Methane Mitigation Projects
Gas-to-Enercjy at Landfills and Open Dumps
DRAFT Version 2
Editors: Mark Orlic and Tom Kerr
U.S. Environmental Protection Agency
Office of Air and Radiation
November 1996
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ACKNOWLEDGMENTS
this report was prepared under Work Assignment 2-15 of U.S. Environmental Protection Agency
Contract 68-D4-0088 by ICF Incorporated. The principal authors were Michael J. Gibbs and Vikram
Bakshi of IGF. The authors wish to thank Mark Orlic and Tom Kerr of the U.S. Environmental Pro-
tection Agency for guidance and comment during the preparation of this document. Mention of trade
names or commercial products does not constitute endorsement or recommendation for use.
This document is a working draft being used by Country Study Program participants to develop
methane mitigation projects. Users of this document and those implementing methane mitigation
projects are encouraged to provide feedback. Please, direct comments to:
U.S. Environmental Protection Agency »
Methane Branch >
Mail Code 6202 J . '
401 M Street, S.W.
Washington D.C. 20460 ,
Tel: 202/233-9768
Fax: 202/233-9569 '.'.
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Table of Con A
1. INTRODUCTION . . . ... ..... 1
2. OVERVIEW OF LANDFILL METHANE EMISSIONS AND EMISSIONS REDUC-
TION OPPORTUNITIES . 4
2.1 METHANE is A POTENT GREENHOUSE GAS.... 4
2.2 LANDFILLS ARE A SOURCE OF METHANE EMISSIONS ........ 5
2.3 APPROACHES FORREDUCING METHANE EMISSIONS FROM LANDFILLS: AND
LARGE OPEN .DUMPS .., 7
2.4 REFERENCES........' ; ; .' ~...._ 9
3. IDENTIFY OPPORTUNITIES FOR REDUCING METHANE EMISSIONS ..... 10
3.1 WASTE MANAGEMENT PRACTICES '. 12
3.2 USE FOR ENERGY... 14
3.3 "LARGE" LANDFILLS AND OPEN DUMPS. .;. 15
, 3.3.7" Obtain Individual Landfill Information ., 16
3.3.2 Estimate Average Landfill Size.... 17
3.3.3 Estimate the Number of People Per Landfill or Open Dump ;..,. 19
3.4 WASTE CHARACTERISTICS 20
3.5 INITIAL APPRAISAL RESULTS ............. '..... .21
4. PRELIMINARY SITE ASSESSMENTS . :..... ....... .. ..... 23
4.1 GENERAL SITE iNFORMATioNHEQUiRED : ..,., '. .'.... „..'23
4.1.1 Potential Gas Usage... :. .24
4.1.2 Potential Gas Production...., .....,;.... , 24
1 Method 1: Test Wells....; „:...: :. : 26
Method 2: Rough Approximation ; 26
Method 3: Model Estimates '. 27
4.1.3 Comparing Gas Flow Estimates to Potential Energy Uses.... „.;' ; 29
4.2 GAS RECOVERY AND UTILIZATION TECHNOLOGIES.. i. ............. 30
4.2.1 Gas Recovery Technologies 30
' . Gas Collection Wells ".. .-.• ...... 31
Blower.... '; .......I 31
Hare .:• ;: : , '. 32
4.2.2 Gas Utilization Technologies..„ :....... ...33
Local Gas Use ;...... .....'.../. '. '. 33
Electricity Generation , 34
Pipeline injection :...: 36
4.3 ECONOMIC FEASIBILITY > 38
4.3.1 Cost Analysis ;... „.. 38
Gas Recovery Costs : ...„ '. : .' 38
Gas Utilization Costs 39
Other Costs '. .-. „ ..41
4.3^2 Benefits Analysis , 42
Revenues Generated. .: '. , 42
Emissions Avoided 44
Energy Supplied ......s. „. 46
4.4 REFERENCES : 46
5, IDENTIFICATION AND ASSESSMENT OF KEY GOVERNMENT POLICIES 47
5.1 NATIONAL ENERGY PRICING, SUBSIDIES, ANO TAXES ..'. 47
5.2 NATIONAL ENERGY SUPPLY PRIORITIES ...; 48
5.3 ENVIRONMENTAL GOALS 49
5.4 FINANCING i 49
5.5 TECHNOLOGY DEVELOPMENT. ; 50
5.6 REFERENCES,......, , 50
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Table of Contents
LADFILL GUIDELINES
6. NEXT STEPS 52
6.1 Focus ON THE MOST PROMISING PROJECTS ...... 52
6.2 AvAiLABiLrrY OF TECHNOLOGY AND EXPERTISE 55
6.3 MOTIVATE DECISIONMAKERS '.: .56
6.3.1 Outreach Activities 56
6.3.2 Demonstration Projects 57
6.3.3 Information Clearinghouses...". 58
6.4 REVIEW REGULATORY FRAMEWORK 59
6.4.1 Evaluate Existing Regulations 60
6.4.2 Develop Feasible Options 60
6.4.3 'Implement, Options 61
6.5 OBTAIN PROJECT FUNDING 62
6.5.1 Review Types of Assistance Available 62
6.5.2 Identify Funding Requirements .• 63
6.5.3 Select Sources of Funding 63
6.6 REFERENCES '. 67
APPENDIX A: DIRECTORY OF SELECT LANDFILL GAS RECOVERY EXPERTS
INTHEU.S . . .. A-l
APPENDIX B: DIRECTORY OF POSSIBLE FUNDING AGENCIES B-l
International Bank of Reconstruction and Development (IBRD) B-2
Global Environment Facility (GEF) .B-3
International Finance Corporation (IFC) .". B-4
Solar-Initiative (A World Bank Program). B-5
European Bank for Reconstruction and Development (EBRD) B-6
Inter-American Development Bank (IDB) ; , : B-7
Asian Development Bank (ADB) B-8
African Development Bank (AfDB) B-9
Trade Development Agency (TDA) : B-10
U.S. Agency for International Development (USAID) B-ll
Overseas Private Investment Corporation (OPIC) ; B-12
Export-Import Bank (EXIMBANK) ,. ....B-13
U.S. Initiative on Joint Implementation (USIJI) B-14
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1. INTRODUCTION
THIS report provides guidance for developing programs for reducing meth-
ane emissions from landfills and large open dumps by recovering-and util-
izing landfill gas. Landfill gas is produced by the anaerobic decomposition
of waste. Since landfill gas is about 50% methane, it is both a potent green-,
house gas and a valuable source of energy. As a result recovering and utiliz-
ing landfill gas presents an "economically attractive option for reducing green-
house emissions.
This document is directed toward program managers responsible for develop-
ing greenhouse gas (GHG) mitigation programs in developing countries and
countries with economies in transition. By focusing on identifying and evaluat-
ing opportunities to reduce emissions, this report complements the guidance
developed by the U.S. Country Studies Program and materials available from
related efforts of the U.S. Environmental Protection Agency and others. Fur-
thermore, as a guidance document for reducing methane emissions from
landfills, this report will assist countries in fulfilling their commitments under the
United Nations Framework Convention on Climate Change (UNFCCC).
The main goal of this report is to provide a step-by-step method for identifying
and evaluating landfills and large open dumps that are promising candidates
for emissions reductions through gas recovery and utilization. Those charac-
teristics that make gas recovery technically and economically attractive are
presented. Additionally, this report discusses how national policies affect the
viability-of landfill gas recovery projects and identifies what steps might be
taken to encourage the development of this resource. '
The remainder of this report is organized into the following five chapters:
2. Overview qf Landfill Methane Emissions and Emissions Reduc-
tion Opportunities: This section provides a brief background on the
topics of methane emissions and opportunities for emissions reduc-
tions from landfills and large open dumps.
3. Identifying Opportunities to Reduce Methane Emissions: This
section describes a screening process by which the program manag-
ers can identify whether landfills and large open dumps in their coun-
tries present attractive options for reducing emissions.
4. Preliminary Site Assessments: This section presents the process
for conducting preliminary site assessments for individual sites or rep-
resentative facilities identified as being good candidates for gas re-
covery projects in Section 3. Based on this information, the program
manager can begin to design an emissions reduction strategy.,
5. Identifying and Assessing Key Government Policies: This section
identifies the key government policies that will promote of hinder
Given ihe economic value of landfill gas
as a, fuel source and the potential avail-
ability of international"donor funding,
landfill gas recovery and utilization pres-
, ents one of the most cost-effective option
for reducing methane emissions.
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Introduction
LAMILLGODELIES
landfill gas recovery projects. Based on this information, potential
policy options will be assessed in the context of national priorities.
6. Next Steps: This section discusses the steps that may be taken by
program managers to further the development of an emissions reduc-
tion program for landfills and open dumps. Information on interna-
tional funding sources for landfill gas recovery projects is presented in
this section.
Exhibit 1-1 summarizes how this document can be used to meet various ob-
jectives. The first column lists several common objectives and the second col-
umn lists the chapter to consult and key elements of that chapter.
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InMucta
Exhibit 1-1: How to use this Document
Objective
Chapter to Consult
I WANT AN OVERVIEW of METHANE AS A GREENHOUSE GAS
• What are the sources of methane emissions
and how does methane contribute to the
greenhouse effect?
EMISSIONS
OVERVIEW
2. Overview Of Landfill Methane Emissions And
Emissions Reduction Opportunities:
2.1 Methane is a Potent Greenhouse Gas .
2.2 Landfills are a Source of Methane Emissions..
2.3 Approaches for Reducing Methane Emis-
sions from Landfills and Large Open Dumps
SHOULD I TRY TO REDUCE METHANE EMISSIONS FROM
LANDFILLS? ,
• How do I assess whether we have landfills or
open dumps that would be conducive to
methane emissions reductions?
• What data can I collect to identify promising
opportunities to reduce methane emissions
from landfills and open dumps?
3. Identify Opportunities For Reducing Methane
Emissions
3.1 Waste Management Practices
3.2 -Use For Energy
3.3 ."Large" Landfills and Open Dumps" •
3.4 Waste Characteristics
3.5 Initial Appraisal Results
I WANT TO ESTIMATE POTENTIAL EMISSIONS REDUCTIONS
' • How do I estimate the emissions reduction
from individual gas recovery projects?
• How do I estimate and compare costs and
revenues from individual gas recovery proj-
ects?
• How do I develop a national assessment of
emissions reduction and energy production?
4. Preliminary Site Assessments
4.1 General Site Information Required
4.2 Gas Recovery and Utilization Technologies
4.3 Economic Feasibility
WHAT POLICIES AND REGULATIONS ARE IMPORTANT?
• What policies affect the economic viability, of.
landfill gas recovery projects? -
• How can landfill gas recovery projects help
meet other environmental goals?
• What policies affect the availability of financ-
ing and technology?
POLICIES
5. Identify And Assess Key Government Policies
5.1 National Energy Pricing, Subsidies,, and
Taxes • . . •
5.2 National Energy Supply Priorities
5.3 Environmental Goals
5.4 Financing -
5.5 Technology Development
WHAT CAN I Do NEXT TO FACILITATE A PROJECT?
• What additional studies are needed?
• How do I remove the barriers that are slowing
down the process?
• Where can I get funding to undertake these
activities?
NEXT
STEPS
6. Next Steps
6.1 Focus,on the Most Promising Projects
6.2 Availability of Technology and Expertise
6.3- Motivate Decisionmakers
6.4 Review Regulatory Framework
6.5 Obtain Project Funding
WHERE CAN I GET ADVICE FROM EXPERTS?
Appendix A: Directory of Select Landfill Gas Recovery Experts in the U.S.
WHAT ARE THE MAIN FUNDING SOURCES APPLICABLE To
LANDFILLS? ' '
Appendix B: Directory of Possible Funding Agencies
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Overview
EMISSIONS
OVERVIEW
2. OVERVIEW OF LANDFILL METHANE EMISSIONS AND
EMISSIONS REDUCTION OPPORTUNITIES
THIS chapter provides a brief background to the topic of methane emis-
sions and opportunities to reduction emissions from landfills and open
dumps. First, background information is provided about the atmospheric
importance of methane. Then methane emissions from landfills and large
open dumps is discussed. Finally, the approaches for reducing methane
emissions are presented.
2.1 Methane is a Potent Greenhouse Gas ,
Because methane is a source of energy
as well as a greenhouse gas, reducing
methane emissions from landfills and
targe open dumps is economically bene-
ficial.
Methane (Cm) is an important greenhouse gas ,and a major environmental
pollutant. Methane is also the primary component of natural gas and as such
can be a valuable energy source. Methane emissions reduction strategies of-
fer one of the most effective means of mitigating global warming in the near
term for the following reasons:
/
• Methane (CH4) is one of the principal greenhouse gases, second
only to carbon dioxide (662) in its contribution to potential global
warming. In fact, methane is responsible for roughly 18 percent of the
total contribution in 1990 of all greenhouse gases to "radiative forc-
ing," the measure used to determine the extent to which the atmos-
phere, is trapping heat due to emissions of greenhouse gases. On a
kilogram for kilogram basis, methane is a more potent greenhouse
gas than C02 (about 21 times greater over a 100 year time frame).
• Methane concentrations in the atmosphere have risen rapidly.
Atmospheric concentrations of methane have been increasing at
about 0.6 percent per year (Steele et al. 1992) and have more than
doubled over the last two centuries (IPCC 1990). In contrast, CCVs
atmospheric concentration is increasing at about 0.4 percent per
year.
• Reductions in methane emissions will produce substantial
benefits in the short-run. Methane has a shorter atmospheric life-
time than other greenhouse gases ~ methane lasts around 1 i years
in the atmosphere, whereas C02 lasts about 120 years (IPCC 1992).
Due to methane's high potency and short atmospheric lifetime, stabi-
lization of methane emissions will have an immediate impact on miti-
gating potential climate change.
• Because methane is a source of energy as well as a greenhouse
gas, many emissions control options have additional economic
benefits. In many cases, methane that would otherwise be emitted
to the atmosphere can be recovered and utilized or the quantity of
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Immiftmmm
Overview
EMISSIONS
methane produced can be significantly reduced through the use. of
cost-effective management methods. Therefore, emissions reduction
strategies have the potential to below cost, or even profitable. For
example, methane recovered from landfills and open dumps can be
used as an energy source.,
• Well demonstrated technologies are commercially available for
reducing methane emissions. For all of the major sources of an-
thropogenic'methane emissions (except rice cultivation and biorriass
burning), cost effective methane reduction technologies are commer-
cially available. While offering substantial emissions, reductions and
economic benefits, these technologies have not been implemented
on a wide scale in the U.S. or globally because of financial, informa-
tional, legal, institutional, and other barriers.
The unique characteristics of methane emissions demonstrate the significance
of promoting strategies to reduce the amount of methane discharged into the
atmosphere. : . ;
OVERVIEW
2.2 Landfills are a Source of Methane Emissions
Methane is generated in landfills and large open dumps as a direct result of
the natural decomposition of solid waste under anaerobic (in the absence of
oxygen) conditions. The organic component of landfilled waste is broken down
by bacteria in a complex biological process that produces methane, carbon
dioxide,1 and other trace gases. Estimates of global methane emissions from
landfills and large open dumps range from 20 to 70 Tg/yr,2 accounting for
about six to twenty percent of total annual anthropogenic methane emissions
(IPCC, 1992).
Landfills are, by nature, heterogeneous - no two landfills are alike. > Irivestiga-
tjops into landfill microbial population characteristics have shown that there are
considerable differences among landfills (Westlake, 1990). Nevertheless,
there are a number of common factors that influence the generation of meth-
ane and its emission from landfills and large open dumps:
*• Waste Composition. Methane is produced from the organic compo-
nent of solid waste; therefore, a jarger organic component increases
the potential for methane generation.
Landfills and large open flumps with at,
least one million ions of waste-are typi-
cally suitable for gas collection and-utili-,
-zation. High levels of organic materials >
in the[waste enhance the amount of gas
that can be collected,' and hence the
emissions reduction that can _ be^
achieved. ' - - ,
It should be noted that COa emissions-from.landfills do not contribute to the increase
in,COa abundance in the atmosphere because the carbon in the COz is of recent
biogenic origin (e.g., from crops and trees).
. 2 One teragrarh is 106 metric tons, oMO12 grams.
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Overview
LANDFILL GUIDELINES
Exhibit 2-1: Typical Landfill Site
• Anaerobic Environment. In order to produce methane, organic
material must break down in an anaerobic environment: i.e., in the
absence of oxygen. The deliberate covering of solid waste with dirt in
a landfill leads to the creation of anaerobic conditions. Similarly, the
organic material in large open dumps becomes effectively covered by
the other waste, thereby leading to anaerobic conditions and methane
generation. .
• Moisture Content. Moisture is essential for anaerobic decomposition
(i.e., fermentation). Water provides the medium for cell growth and
metabolism, and transportation of nutrients and bacteria within the
landfill. The moisture content will depend on the initial moisture con-
tent of the waste, the extent of infiltration from surface and groundwa-
ter sources, and the amount of water produced as a result of waste
decomposition.
*• Acidity. Living systems are sensitive to pH (a measure of acidity);
the optimal pH for methane production is between 6.8 and 7.2. Meth-
ane production decreases sharply with pH values below 6.5.
*• Temperature. Methanogenic bacteria are affected by temperature;.
the rate of methane production is maximized between 50 and 60°C
(120 to 140°F), but can occur anywhere from between 10 to 60°C (50
to 140°F) (Pacey and DeGier, 1986). Typically in landfills and large
open dumps, the waste decomposition process provides enough heat
maintain suitable temperatures for methanogenesis to take place.
In addition, the refuse density and consistency, the landfill design, and other
site specific factors can affect the quantity and rate of methane generation.
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flverie
While there is considerable variation among landfills and large open dumps,
facilities with at least one million tons3 of waste are typically suitable for recov-
ery. High levels of organic materials in the waste enhance the amount of gas
that can be collected, and hence the emissions reduction that can be
achieved. Under certain circumstances, smaller landfills have also been dem-
onstrated capable of supporting profitable gas collection and utilization proj-
ects, particularly in areas where energy supplies are limited-or prices are high.
EMISSIONS
OVERVIEW
2.3 Approaches for Reducing Methane Emissions from
Landfills and Large Open Dumps
There are two main approaches for reducing methane emissions from landfills
and large open dumps: (1) extract the gas through wells drilled into the waste,
and then combust it; and (2) reduce the amount of organic waste entering
landfills and large open dumps so that less methane is produced in the future..
While activities such as recycling and/or composting reduce the amount of
waste entering landfills (correspondingly reducing methane emissions), only
the first approach-extracting and combusting the gas, reduces methane
emissions from existing landfills and large open dumps which would otherwise
continue to emit methane for many years to come. Additionally, even if some
organic waste is prevented from entering landfills in the future, some waste will
invariably be disposed in landfills, necessitating gas recovery and combustion
as the most practical means of reducing emissions. Consequently,Ihis docu-
ment will focus on gas recovery and utilization to reduce methane emissions
from landfills and large open dumps.
By reducing emissions, landfill gas recovery projects fulfill a country's com-
mitment to the United Nations Framework Convention on Climate Change
(UNFCCG). The UNFCCC requires developed countries (also known as An-
nex I countries) to adopt measures to reduce greenhouse emissions, with the
aim of returning to 1990 emissions levels by the year 2000 (see Exhibit 2-2).
Additionally, the advantage of collecting gas from landfills and large open
dumps is that the gas can be used as energy. Utilization options for the re-
covered gas include direct use in nearby residences or industrial facilities, in-
jection into a pipeline grid, electricity generation, or steam production. Addi-
tionally, the gas can be flared, although -flaring does not make use of the en-
ergy value of the gas. ' - . ,
+ Direct Gas Use. Medium quality gas (e.g., 30 to-50 percent meth-
ane) can be used by local residences or industrial facilities as a boiler
fuel or cooking fuel. Alternatively, the gas can be injected into a pipe-
line grid system. If the gas is delivered to. a pipeline grid, it usually
must be processed to achieve the requisite "pipeline quality" (i.e., en-
- In addition to reducing ^methane emis-
sions, recovering landfill gas has othet,
important benefits: the gas can be used
as an energy source; gas migration is
reduced; local air .quality-is enhanced;
' and odor is reduced. These secondary
benefits alone may w/arrant trie installa-'
tion of a.gas recovery system., - ,
3 Tons are in metric units. This'applies throughout the document.
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Overview
LANDFILL CDIDELIES
Exhibit 2-2: The UN Framework Convention on Climate Change (UNFCCC)
The signature of the United Nations Framework Convention on Climate Change (UNFCCC) by around
150 countries in Rio de Janeiro in June 1992 indicated a widespread recognition that climate change is a
potentially major threat to the world's environment and economic development.
"^e Convention aims to stabilize greenhouse gas concentrations in the atmosphere at a level that
would prevent dangerous anthropogenic interference with the climate system. Such a level is to be achieved
within a time frame sufficient to allow ecosystems to adapt naturally to climate change. The Convention calls for Annex I countries
to take measures designed to limit emissions of carbon dioxide dioxide and other greenhouse gases, with the aim of returning to
1990 emissions levels by the year 2000.
To achieve this objective, the Convention sets out a series of principles and general commitments. The key principles incorpo-
rated in the treaty are the precautionary principle, the common but differentiated responsibility of states (which assigns industrial-
ized states the lead in combating climate change), and the importance of sustainable development. The general commitments,
which apply to both developed and developing countries, are to adopt national programs for. mitigating climate change; to develop
adaptation strategies; to promote the sustainable management and conservation of greenhouse gas "sinks" (such as forests); to
take climate change into account when setting relevant social, economic, and environmental policies; to cooperate in technical,
scientific, and educational matters; and to promote scientific research and the exchange of information.
ergy value) which is usually the equivalent _of almost 100 percent
methane with minimal impurities.
• Electricity Generation. The recovered methane can be used to
power an electric generator. The electricity can be used locally at
nearby sites or delivered to the electricity grid system.
• Steam Production. Landfill gas can be used to produce steam
which can be used for district heating or other uses.
*• Flaring. A flare is simply a device for combusting the landfill gas.
Capital requirements.for flares are small relative to the energy recov-
ery strategies, but the energy value of methane is wasted and there-
fore no revenue or other economic benefits are derived. Neverthe-
less, flaring may be an appropriate method for reducing emissions at
small landfills, where the rate of gas flow will not support an economi-
cally viable gas recovery and utilization project.
In addition to producing energy with economic value, the recovery and com-
bustion of gas environmental and safety benefits. Landfilf gas contains volatile
organic compounds which are major contributors to ground-level ozone forma-
tion. When no controls are in place, these pollutants are released into the at-
mosphere. When landfill gas is collected and burned in an energy recovery
system, these pollutants are destroyed.4
4 For this reason, the U.S. Environmental Protection Agency will issue New Source
Performance Standards under the Clean Air Act in early 1996 which will require af-
fected landfills to collect and combust their landfill gas.
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Overview
Gas recovery also helps prevent underground gas migration. Migrating gas
poses an extreme explosion hazard if it concentrates under nearby building or
other facilities. Recovering the gas significantly reduces the. risk of off-site mi-"
gration. . - . "
Numerous methane recovery activities are currently in place around the world.'
There are many examples of profitable projects involving gas sales, electricity
sales, or on-site use. However, many more landfills and open dumps can im-
plement economically viable methane recovery and utilization projects. In
some cases, national or local policies hinder these projects from being under-
taken. Relevant policies should be evaluated to assess if they encourage or
discourage methane recovery and utilization projects. Important issues to
analyze include energy production and pricing, environmental policy, financing
issues, and technology.transfer policies. .-. .
EMISSIONS
OVERVIEW
2.4 References
IPCC (Intergovernmental Panel on Climate Change) (1990). Climate Change:
The IPCC Scientific Assessment. Report Prepared for Intergovern-
mental Panel on Climate Change by Working Group 1.
IPCC (Intergovernmental Panel on Climate Change) (1992). Climate Change
1992. The Supplementary Report to the IPCC Scientific Assessment,
Published for the Intergovernmental Panel on Climate Change
(IPCC), World.Meteorological Organization/United Nations Environ-
ment Program. Cambridge University Press. Edited by J.T. Hough-
ton, G.J. Jenkins, and J.J. Ephraums.
• i
Pacey, J.G. and J.P. DeGier (1986), "The Factors Influencing Landfill Gas
Production," presented at Energy from Landfill Gas, sponsored by UK
DOE/US DOE, 28-31 October, 1986.
Steele, L.P., E.J. Dlugokencky, P.M Lang, P.P fans, R.C. Margin, and K.A.
: Masarie. 1992. "Slowing down of the global accumulation of atmos-
pheric methane during1 the 1980s." Nature. Volume 358. July 23,
1992. , . > . •..--
Westlake K. (1990) "Landfill. Microbiology," Proceedings of the International
Conference Landfill Gas: Energy and Environment '90, Bournemouth,
U.K.
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Identify Opportunities for Rediicing Emissions
LADFILLGlDELK
IDENTIFY
OPPORTUNITIES
The first step in the screening process
!s to determine whether landfills or
*torge* open dumps exist in your coun-
try. Definitions of landfills and "large"
open dumps are presented in Section
3.1.
3. IDENTIFY OPPORTUNITIES FOR REDUCING METH-
ANE EMISSIONS
THIS chapter presents a screening process for national program managers
to determine if there are landfills or large open dumps in their countries
that are good candidates for emissions reduction projects. This preliminary
assessment of project opportunities consists of four phases: (1) determine
whether there are landfills or large open dumps suitable for gas recovery; (2)
determine whether there are potential markets for the energy recovered; (3)
determine whether the landfills or open dumps must have enough waste to
support a gas recovery project; and (4) determine whether the landfill contains
sufficient organic waste.
A step-by-step approach is presented to assess whether opportunities for the
implementation of gas recovery projects exist. Each step in the process is a
hurdle to be crossed. If a hurdle cannot be crossed, it is unlikely that promis-
ing emissions reduction opportunities exist. For example, if there are no land-
fills or large open dumps, then there are no emissions reduction opportunities
and the analysis ceases. Assuming that there are, landfills, you may find that
there can be no market for the gas recovered. In this case, gas recovery proj-
ects cannot be profitable, and emissions can only be reduced at a cost. In this
case, the analysis would only proceed if the program manager is willing to
consider emissions reduction options that cost money. In many countries, this
step-by-step process is likely to identify large landfills and open dumps with
potential for energy recovery resulting in emission reductions.
The initial screening criteria are as follows:
1. Existence of Landfills or Large Open Dumps Receiving Waste.
Wastes in developing countries and countries with economies in
transition are disposed of primarily in open dumps and landfills. Only
landfills and large open dumps may be considered candidates for gas
recovery projects; small open dumps are not candidates. Therefore,
only once the existence of .large open dumps or landfills have been
determined, can the analysis proceed. Section 3.1 presents a more
detailed description of waste management practices, presenting the
criteria to distinguish between landfills, large 'open dumps, and small
open dumps.
2. Existence of a Use for Energy. An assessment of the potential to
use the energy is essential to determine the potential profitability of
gas recovery projects as well as to identify the most appropriate ways
to use the gas. In general, any piece of equipment that uses natural
gas as a fuel source potentially could be operated using landfill gas.
Additionally, landfill gas can be used to power refuse collection trucks
under some circumstances. Section 3.2 presents a simple checklist
to determine whether there is potential to use the energy produced.
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Identify Opportunities for Mating Emissions
IDENTIFY
3. Presence of "Large" Amounts of Waste. For initial screening pur-
poses, landfills containing more than 1 million tons of waste will fc>6
considered as potential candidates. Landfills'of this size are likely to
•generate enough energy to support a recovery project. Section 3.3
presents several approaches to determine whether such landfills ex-
ist. It should be noted, however, that this size criterion is not abso-
, lute. Smaller landfills (e.g., over 500,000 tons of waste) could poten-
tially support successful recovery projects, given certain site-specific
and market conditions. These conditions are described in Sec-
tion 3.6. . ' . •
OPPORTUNITIES
4. Presence of Organic Materials in the Waste. Since the organic
component of waste is what produces gas, landfills with highly or-
ganic waste (e.g., food scraps, paper, and other biodegradable mate-
rials) are good candidates for recovery. These landfills will generate
large amounts of gas. 'Landfills containing large amounts of con-
struction and demolition debris (non-organic material) will .not gener-,
ate adequate gas to support a recovery project. Section 3.4 dis-
cusses the waste types in more detail. ,
Countries with landfills which do not meet the required criteria do not have
good candidates for conventional energy recovery projects.
" . I- ,
To assist in this preliminary assessment of project opportunities, people with
expertise in the landfill industry should be contacted. Information on waste
type and destination could be obtained from Sanitation Departments or Waste
.Management Bureaus. If energy recovery projects have been implemented in
the country, information on such projects would help determine the viability of
recovery projects as well as provide useful sources of information for future
projects. People to involve include, among others, the following:
<*• Sanitation Departments. The departments responsible for the col-
. : • " , lection and disposal of wastes would be able to provide waste related
information. At a minimum, information on waste type and site of dis-
. ' > posal could be gathered from them. This information would deter-
mine whether landfills currently accept municipal solid waste (MSW)
or not.5 Another related source of information are the Waste Man-
agement Boards, if any. Sanitation Departments and Waste Man-
agement Boards are typically found at both the national and local
• levels. Urban areas should be targeted as landfills are found primar-
ily in urban areas of developing countries.
Data collection should involve people
with expertise 'in the landfill industry and
'should focus-on-urban and peri-urban
regions. • -.
Municipal solid waste (MSW) includes wastes such as durable goods, nondurable
goods, containers and packaging, food scraps, yard trimmings, and miscellaneous
inorganic wastes from residential, commercial, institutional, and industrial sources.
MSW does not include wastes from other sources, such as construction and demoli-
tion wastes, automobile bodies, municipal sludges, and combustion ash.
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Identify Opportunities for Reducing Emissions
LADFULGlDELK
* Previous Energy Recovery Projects. Energy recovery projects
previously implemented are an 'obvious source of information. Infor-
mation on such projects would "assist in developing a general idea of
gas recovery; the'technical, economic and problematic aspects of
previous recovery projects would help focus the analysis for future
projects.
•* Other Leads. Other sources of information include, but are not lim-
ited to, the Energy Ministry, Environment Ministry, and Electric Utility
Board or Commission. Energy Ministries are responsible for energy
supply issues, and therefore may be aware of landfill gas as a source
of energy.
Each of the steps in the assessment is presented in turn. This section con-
cludes with a summary of the overall appraisal.
Landfills or large open dumps with
over 1 million tons of waste are likely
to generate enough gas to support
and economically viable gas recovery
project
3.1 Waste Management Practices
The two main types of waste management practices are open dumping, which
is generally practiced in rural areas of developing countries, and landfilling,
generally practiced in developed countries and urban areas of developing
countries. Both of these types of waste management can result in methane
production if the waste contains organic matter. Gas recovery projects are ap-
propriate for reducing methane emissions from both landfills and large open
dumps. Small open dumps, common especially in rural areas of developing
regions, are not suitable for gas recovery. Other waste disposal methods
common in developing regions include the burning of waste for heating or
cooking purposes, feeding to domestic animals, dumping in rivers, or other
bodies of water, or sweeping out on to the street and burying it. Landfills and
large open dumps can be defined as follows:
*• Landfills. Landfills are designed specifically to receive wastes. Their
design reflects a precise engineering component, which allows for the
controlled disposal of waste. Landfill design and management is be-
coming increasingly sophisticated in many countries, as the environ-
. mental consequences of uncontrolled dumping are better understood.
New landfill design standards in many countries are ensuring that
landfills are lined before receiving waste, and also that there are pro-
visions for the safe control, and removal where appropriate, of gas
and leachate generated. Good waste management practices ensure
that waste is compacted^ minimize the use of void space. All these
factors can encourage the rapid development and maintenance of
anaerobic conditions within the landfill, and result in methane produc-
tion. Exhibit 3-1 presents a schematic of a typical closed landfill.
• Large Open Dumps. Large open dumps are sites which have been
deemed appropriate for waste disposal. Wastes in open dumps gen-
erally decompose aerobically, producing no methane. However,
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Identify Opportunities for Reteing Emissions
IDENTIFY
there is some evidence that some methane production does occur,
but the amount has not been quantified. Some large open dumps will
be candidates for gas recovery. Key characteristics that make large
open dumps attractive for gas recovery include:''
• Geology. The site should essentially be a "hole" in the
ground. The "hole" could be a natural depression (e.g., pits
or canyons) or man-made. Furthermore, the dump site
should be large: at least 7 to 10 meters deep and covering
an area of approximately 50 to 60 hectares.
• Waste Characteristics: The waste should be compact and
wet. Concentrated waste, usually near the bottom of an
open dump, will provide the anaerobic environment neces-
sary for gas production.
• Liquid Control: Good surface drainage and facilities to con-
trol leachate should be available. Additionally, the site
should not be prone to flooding or "ponding."
Large open dumps that meet the, above requirements would be con-
sidered candidates for recovery. Additionally, large open dumps that
are being rehabilitated and upgraded to "landfill status" may also be
attractive, candidates for gas recovery. In particular, gas recovery can
be an important aspect of efforts to upgrade the site.
As the first step, it must be assessed whether landfills or large open dumps
exist in the country. The most likely place for these facilities is near large ur-
ban centers. City waste management personnel are generally most knowl-
edgeable about whether such facilities exist and where,they are located.
Making contact with these individuals to identify whether landfills or large open
dumps exist is an important first step iri conducting this initial screening. If
OPPORTUNITIES
Exhibit 3-1: Schematic of a Typical Closed Landfill
Internal Monitoring and
Leachate Collection Wells
Soil/Clay Cover
External Monitoring
Wells ' ,
Topsoil and Grass
Historically High Water Table
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LAMILL GUIDELINES
such facilities exist and are found to be promising emissions reduction oppor-
tunities, these contacts will be valuable sources for information required in
more detailed assessments which follow.
3.2 Use For Energy
The gas recovered from landfills can be
used in nearby facilities (e.g., within 3
km) by laying pipe to connect the point
of collection to the point of use, or by
injecting gas into an existing gas distri-
bution network.
The most attractive emissions reduction projects are those where the energy in
the recovered gas can be used or sold. The value of the energy derived from
the gas can more than offset the cost of collecting and processing the gas.
The purpose of this step is to assess whether it is likely that there is a suitable
use for the gas recovered from the landfill or large open dump. It should be
noted that this energy use criterion is not absolutely essential. Methane emis-
sions will also be reduced if the landfill gas is recovered and flared. However,
there is unlikely to be.any monetary benefit if the gas is flared. Consequently,
those projects that provide useful energy are generally more attractive emis-
sions reduction options from the cost perspective.6
There are three primary approaches to using the gas recovered: (1) direct use
of the gas locally (either on-site or nearby); (2) generation of electricity and
distribution through the power grid; and (3) injection into a gas distribution grid.
Direct use of the gas locally is often the simplest and most cost-effective ap-
proach. The medium quality gas can be used in a wide variety of ways, includ-
ing : residential use (cooking, hot water heating, space heating); boiler fuel for
district heating; and various industrial uses requiring process heat or steam
(such as in cement manufacture, glass manufacture, and stone drying).
If a direct use is not practical, the gas can be used to generate electricity by
• using it to fuel a reciprocating engine or turbine. If the electricity is not required
on site, it can be distributed through the local power grid. This approach re-
quires close coordination with the electric power authority.
In some cases, the gas can be injected into a gas distribution grid. If a me-
dium quality gas system exists, the gas can be injected with minimum process-
ing. Natural gas pipeline systems, however, typically transport high quality gas
that is over 95 percent methane. Prior to injecting the recovered gas into such
as system it would need to be processed extensively to remove the COa and
any other impurities. Processing the gas to meet high quality pipeline stan-
dards often' drives the cost of production higher than the costs of alternative
fuels. As a result, this option is usually not economically viable. However, in
an environment of extremely high fuel costs, upgrading landfill gas might be a
profitable option.
6 Even if the energy in the landfill gas cannot be put to use, reducing methane emis-.
sions from landfills and open dumps may be less costly than alternative methods for
reducing greenhouse gas emissions. In particular, collecting and flaring gas is par-
ticularly inexpensive as contrasted with many other options.
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loam 6mm
Identify Opportunities for Reteing Emissions
IDENTIFY
Other energy utilization options may present themselves on a case-by-case
basis. For example, compressed gas can be used to power refuse collection
trucks that bring refuse to the landfill or open dump. Alternatively, there may
be a specialized need for gas nearby, such as may be needed by a heated
greenhouse. .However, these are niche applications which have not been
proyen cost effective in developing countries.
Exhibit 3-2 presents a simple checklist to assess whether energy use options
are likely to exist. Keeping in mind that this screening step is not definitive, the
checklist is very general and preliminary. To complete this checklist, discus-
sions with energy planners in the energy ministry or local power suppliers
would be appropriate. If options for reducing methane emissions from these
facilities appear to be attractive, the contacts made within the energy sector
will be valuable for moving the project forward.
OPPORTUNITIES
Exhibit 3-2: Are There Uses .for the Energy Recovered?
1. Are there residential areas nearby that could use a supplemental
source of fuel? •
2. Are district heating plants nearby that can use medium quality
gas? - .
3. , Are industrial facilities nearby that can use medium quality gas?
4. Are there medium-quality gas distribution networks?
5.
7.
Are high-quality gaseous fuels very costly, making gas process-,
ing potentially cost effective?
Are there electric power distribution systems that do (or can) ob-
tain power from projects such as landfills?
Would you consider gas recovery as a lost-cost alternative ap-
proach for reducing methane emissions even if it is not profitable
in its own right?
• YesQT NoQ
YesQ NoQ
YesQ . Nod
Yes Q NoQ
Yes Q NoQ
Yes Q NoQ
Yes Q NoQ
If the answer is YES to any of the above questions, the energy use
criterion is satisfied - for initial screening purposes
3.3 "Large" Landfills and Open Dumps
The most attractive emissions reduction opportunities will be at "large" landfills
and open dumps, which are defined as having over 1 million tons of waste in
place. Facilities this size are expected to generate enough gas to support a
profitable gas recovery project over a number of years. Additionally, a majority
of the waste tonnage should be less than 10 years old. ' ,
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Identify Opportunities for Reducing Emissions
LmFUL GUIDELINES
There is no single simple approach for assessing whether any candidate land-
fills or open dumps have enough waste to'support a recovery project. Dis-
posal records are often incomplete or nonexistent, and can be very time con-
suming to review, particularly in the context of this initial assessment. Never-
theless, before proceeding to a more in-depth analysis of gas recovery op-
tions, a determination should be made that the candidate landfills and open
dumps are likely to be large enough to warrant attention. Several alternative
approaches are presented which may be used to make this determination.
3.3.1 Obtain Individual Landfill Information
If a number of landfills and/or large open
dumps are Anown to exist, a structured
data collection effort will help to focus on
the most promising projects. This proc-
ess is described further in Chapter 6.
Individual landfill information can be obtained through a survey of officials re-
sponsible for urban waste management. It is expected that most developing
countries and countries with economies in transition will have a relatively small
number of large landfills and open dumps, so that the survey of these officials
may be relatively modest in size and scope. A telephone or written survey
could be used.
To conduct the survey, the relevant officials would be asked to estimate the
waste in place at the largest facilities in their areas. Some landfills, especially
old ones, may not have the records required for the officials to make these es-
timates. Alternative approaches for estimating the waste quantity at individual
landfills and open dumps are as follows: •
• Area, Depth, and Waste Density. An estimate of the amount of
waste in place can be made from the" volume of the site and typical
waste placement density. Data on the area and depth of a landfill can
be gathered by a site visit. The density of uncompacted domestic
waste as delivered to the site will be in the range of 200 to 400 kg/m3.
This will rise upon placement to approximately 600 kg/m3 (excluding
cover), or, on average, 800 kg/m3. This may rise further on compac-
tion and settlement to 1000 to 1200 kg/m3.
+ Waste Records. Landfills may have records of the amount of waste
disposed. The records are usually kept on site at the gate by the gate
clerks.. The landfill supervisor uses this information to compile daily
and monthly statistics regarding volumes, waste types, and sources.
If such data is available since the year the landfill opened, the amount
of waste in place could be estimated from these data. Alternatively;
the person(s) responsible for monitoring or dumping waste in the
landfill (e.g., gate clerks or landfill supervisors) could provide the
rough estimates or recommend alternative approaches. Other, more
creative ways can be adopted to determine waste volumes. For ex-
ample, a landfill in Ankara (Turkey), determined the amount of waste
in place using trucking records. Data on the frequency of waste dis-
posal by trucks, obtained from the trucking records, were used along
with truck capacity to estimate total waste in place at the landfill.
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Identify Opportunities for Mncmj Emissions
IDENTIFY
Contour Plots. A before and after landfilling contour plot of the
landfill terrain would provide an estimate of the amount of waste in the
landfill. Surface topographical maps or aerial snapshots of the site
are common techniques of contour mapping. The main drawback of
this technique is that a before landfilling contour plot of the site is,
usually not available, especially for-old sites.
OPPORTUNITIES
3.3.2 Estimate Average Landfill Size
• - ' • '-•
This approach relies on determining the average landfill size for a given urban
area from the total amount of waste in landfills and the number of landfills in
the area. It is recommended that analysis be performed for each urban area;
rural areas are excluded as landfills and large open dumps are found primarily
in urban areas.
The concept behind this approach is that the total amount of municipal waste
generated in the urban area annually can be estimated from the total popula-
tion. The portion of this waste that was placed in,landfills or large open dumps
is estimated, to give an assessment of the total waste in place to date. The
average landfill or open dump size is estimated as the total waste divided by
the number of-facilities. Clearly, this is a very approximate method for
screening purposes only. The steps are as follows:
Step 1: Estimate Total Waste Landfilled.
If this data is not readily available for urban areas, a rough assessment of
waste in place can be determined using the following data: urban populations;
waste generation rate per person per year; fraction of waste landfilled; and the
number of years landfilling has been taking place.. The amount of waste land-
filled annually for an urban area is the population times the waste generated
' per person times thafraction of the waste that goes into landfills or large open
dumps. This estimate of the annual waste landfilled (tons/yr) is multiplied by
the number of years of iandfilling to arrive at total waste iandfilled (tons).
Urban Population. It is expected that data, on urban population will
be readily available. The growth rate of urban populations is required
to take into account changes in the population structure over the pe-
riod of landf filing. .
Waste Generation and Fraction of Landfilled Waste. Data of
waste generation per capita and portion landfilled are generally avail-
able from officials responsible for local waste management. Default
estimates can be used if needed, although values can vary signifi-
cantly depending on local conditions. Default values for waste gen-
eration and fraction of landfilled waste are presented in Exhibit 3-3.
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Identify Opportunities for Reducing Emissions
LANDFILL GUIDELINES
Exhibit 3-3: Waste I
REGION
Eastern Europe
Developing Countries
disposal and Waste G<
WASTE LANDFILLED
(%)
85
80
^deration Data
ANNUAL
WASTE GENERATION
(KG/CAPITA)
220
182
Source: IPCC Guidelines for Greenhouse Gas Emissions Inventories, IPCC, 1995.
*• Years of Landfilling. To estimate total waste in place, an approxi-
mate estimate is needed of the number years during which waste has
been disposed in landfills and large open-dumps. In large urban ar-
eas, such practices have generally been common for at least the last
10 to 20 years. Contacts among officials responsible for local waste
management will be able to provide a better figure.
Using this information, the total amount of waste placed in landfills and large
open dumps is calculated as follows:
Total Waste Landf illed (tons)
Urban Population x Waste Generation Rate (kg/person/yr)
x Fraction of Waste in Landfills or Open Dumps x
Years of Landfilling (yr) x 0.001 ton/kg
Step 2: Determine the Number of Landfills.
An approximate number of landfills and large open dumps in each urban area
is required. Again,' this information is generally available from officials re-
sponsible for local waste management.
Step 3: Calculate the Average Landfill Size.
The amount of waste in landfills is determined by dividing amount 'of waste in
landfills by the number of landfills.
Average Landfill Size (tons)
Total Waste Landfilled (tons) / Number of Landfills
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Identify Opportunities for Muting Emissions
IDENTIFY
This method will indicate whether the urban population in each city disposes of
enough waste annually in landfills arid open clumps to supportgas recovery
projects. Clearly, the assessment is crude in that is does not investigate the
actual disposal histories at specific sites. Additionally, all the landfills and
open dumps are assumed to share equal amounts of waste. If facility sizes
vary considerably, the average size may not be a good indicator of whether
gas recovery projects are likely to be attractive. Nevertheless, if the result of
this rough estimate is an. average waste figure greater than 1 million tons,
there, is likely to be at least 1 landfill which meets size the criterion. "
OPPORTUNITIES
3.3.3 Estimate the Number of People Per Landfill or Open Dump
This approach addresses the question in reverse: how many people are re-
quired to support a landfill with 1 million tons of waste. Using this estimate,
urban areas with populations that are below this cutoff can be eliminated from
further consideration.
Step 1: Estimate the Number of People Required Per Landfill or Large Open
Dump. -
The,number of people required is estimated by dividing 1 million tons by:
waste generation per capita per year; portion of waste placed in landfills or
open dumps; and number of years of disposal in landfills and open dumps.
For example, using the default values for developing counties in Exhibit 3-3
above, and assuming waste disposal for 10 years, a population of about
690,000 is required to support a single landfill. ;
' Number of People per Landfill or Open Dump
Waste per Landfill or Open Dump (e.g., 1 million tons)/
[ Waste Generation Rate (kg/person/yr) x Fraction of Waste
, in Landfills or Open Dumps x Years> of Landfilling (yr)] ;
Step 2: Identify Candidate Cities. .
Given the cutoff population estimate, those cities with populations above the
cutoff are identified from census information.
Step 3: Review Candidate Cities. . •/
Once the candidate cities".are identified, each should be reviewed to obtain
better city-specific information on waste generation and disposal practices. In
particular, the presence of multiple landfills or large dumps should be explored
-------
LANDFILL CODELW
to assess whether the average population per facility is large enough to sup-
port a 1 million ton site.
Based on the results of one or more of these three options, a determination is
made as to whether there are landfills or open clumps large enough to warrant
further analysis.
3.4 Waste Characteristics
Waste characteristics influence both the amount and the extent of gas produc-
tion within landfills. MSW contains significant quantities of degradable organic
matter. The decomposition (fermentation) of this organic material leads to
methane emissions. Different countries and regions are known to have MSW
with widely differing compositions: wastes from developing countries are gen-
erally high in food and yard wastes, whereas developed countries, especially
North America, have a very high paper and cardboard content in their MSW.
Landfills in developing countries will tend to produce gas quickly (completing
methane production within 10-15 years) because putrescible material decom-
poses rapidly. Landfills with a high paper and cardboard content will tend to
produce methane for 20 years or more, at a lower rate.
Landfills with MSW are good candidates for gas recovery projects. If hazard-
ous materials are mixed with the MSW, the recovered gas may contain trace
quantities of hazardous chemicals which should be removed from the gas prior
to utilization. Higher gas purification requirements translate to higher costs.
If landfills or large open dumps primarily have large quantities of construction
and demolition debris, they will not produce as much gas as would otherwise
be expected. Therefore, these sites may not be good candidates for gas re-
covery.
As a final step, the waste types contained in the promising facilities identified
in the previous steps should be assessed. As discussed above, disposal rec-
ords are often incomplete or nonexistent. Consequently, unless a special
study has been undertaken for a specific city or facility, it is unlikely that good
data are readily available regarding waste composition in landfills and open
dumps. To undertake this initial assessment, it is recommended that officials
involved with the operation of the major facilities under consideration be con-
tacted to discuss whether degradable MSW is a significant portion of the waste
landfilled and whether hazardous materials might have been disposed of at the
site.
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I,! Will !r! Mi
Identify Opportunities for Mnting Emissions
3.5 Initial Appraisal Results
IDENTIFY
••<££&*
"^™^^^ s
^
s
^a-
JF
Using the information from the above four steps, the initial appraisal can be
performed. Exhibit 3-3 lists the questions addressed by the four steps.' If each
of the four questions listed in the exhibit can be answered "Yes," there are
likely to be good opportunities for reducing methane emissions through the
implementation of gas recovery projects.
Even if one or more questions cannot be answered "Yes," there may be at-
tractive opportunities for reducing'emissions under certain circumstances. The
following conditions would favor gas'recovery from landfills:
*• Energy Shortage. In areas of acute energy shortage, a gas recovery
project may be highly desirable as a source of provides energy for the
local area. In such cases, the profitability of a gas recovery project is
better evaluated in terms of the value of energy recovery per house-
hold (e.g., $37 per household served by the energy recovery project)
rather than a cost-revenue comparison. ' •': '
•+ High Energy Cost. A high cost of alternative fuels, especially natural
gas, would favor gas recovery projects. In such high cost environ-
ments, smaller sites (e.g., 500,000 to 1 million tons of waste) would
potentially support profitable gas recovery projects.
+• Marginal Upgrading Cost. Some facilities may already have gas
collection systems in place to prevent .off-site gas migration. These
collection systems may be required to ensure the1 safe operation of
the facility. At these facilities, the marginal cost of installing a utiliza-
tion system might, be small. In some cases, the collection system
, might require upgrading to maximize recovery of gas generated.
Even small landfills would be potential candidates for gas recovery in
suchcases.
Finally, as discussed above, it may be desirable to recover and combust
methane from landfills and open dumps even if they do not meet the criteria
listed above. In particular, eyen if there is no opportunity to use the gas for
energy,'methane emissions can be reduced at relatively low cost by simply
collecting and flaring the gas. Such projects may be attractive to investors in
developed countries who are identifying low-cost options for reducing green-
house gas emissions through joint international action. •'•[., -• ' -
OPPORTUNITIES
The initial appraisal screening .criteria
determine whether there are landfills or
large open dumps that have the charac-
• teristics that generally"support economi-'
calty viable gas recovery projects.
Currency units are in U.S. dollars. This applies throughout the document.
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Identify Opportunities for Redwing Emissions
INFILL GWDELIES
Exhibit 3-3: Initial Appraisal Results Checklist
1. Are there landfills or large open dumps (currently receiving waste
or closed recently) that could be potential candidates? Yes Q No Q
2. At the potential candidate sites, are there potential uses for the
energy recovered? YesQ Nod
3. Do the candidate sites have at least 1 million tons of waste in
place? Yes Q No Q
4. Do the candidate sites contain primarily Municipal Solid Waste? YesQ NoQ
If the answer is YES to all of the above questions, there are promising options for gas
recovery. Proceed to Chapter 4, where the technical and economic feasibility of
gas recovery at each candidate site will be evaluated.
-------
4. PRELIMINARY SITE ASSESSMENTS
TfflS section presents guidance for conducting preliminary assessments of
the candidate sites identified in Section 3 in order to provide a more com-
plete and concrete assessment of the attractiveness of each of the gas recov-
ery opportunities. Site specific information will be collected to identify the proj-
ect development options that are most technically appropriate and cost effec-
tive. " ' •- *
Some countries may not have the technical and labor resources needed to
conduct site assessments. Appendix A (at the end of this chapter) lists landfill,
developers that may be contacted to conduct project feasibility assessments
and develop gas.recovery projects. Furthermore, Chapter 6 presents steps for
identifying and filling gaps in the availability of technology and expertise re-
quired.' •
In most cases, the screening process in Section 3 will identify several candi-
date sites worthy of this level of analysis. Under this circumstance, a prelimi-
nary site assessment ca'n be conducted for each site.' However," in some
cases many sites may be considered candidates, and it may not be possible to
conduct preliminary site-assessments for each at this time. In this case, it is
recommended that several representative sites be selected for assessment.
For example, one site in each major city could be selected. Alternatively, sev-
eral sites that represent a range of sizes and locations could, be selected.
Based on the results of the analysis of the representative sites, the need for
additional preliminary assessments can be examined. :
The preliminary site assessment examines the main factors influencing the at-
tractiveness of gas recovery projects, including the gas generation rate, the
market for energy, and costs. Section 4.1 identifies the general site informa-
tion required. Then, Section 4.2 addresses the technical feasibility of alterna-
tive recovery and utilization options. Finally, Section 4.3 discusses the eco-
nomic feasibility of these methods. . '•..;'
ASSESSMENT
' This section presents a pre-feasibilify
"site assessment aimed at evaluating
the technical and economic feasibility
of gas recovery. This is a preliminary
assessment, designed to allow coun^
tries to get sufficient data to show ihat'
there is merit in pursuing th& project,
further. > V ' <
4.1 General Site Information Required
The preliminary site assessment begins with the collection of general site in-
formation. This information will be used to examine the potential uses for the
gas recovered and the quantity of gas likely to be produced, which are dis-
cussed in turn. . - .
-------
Preliminary Site Assessments
LANDFILL GUIDELINES
Special institutional relationships may
need to be developed to create mar-
kets for energy derived from landfill
gas. As a result, significant govern-
ment involvement may be required to
facilitate landfill gas recovery projects
in developing countries.
4.1.1 Potential Gas Usage
To assess gas use options, a general survey of energy-using opportunities
around the site is conducted. Information is collected for three options:
• • Local Gas Use. Potential gas users include residences and indus-
tries located within a radius of about 3 kilometers (km) of the site.
Beyond this distance, gas transmission costs are often too high to
support profitable gas recovery and use. Local use of the recovered
gas is generally the simplest and often most cost effective option.
Any industry in the vicinity of the landfill which is amenable to the use
of an alternative fuel source, i.e., landfill gas, is a potential customer.
4- Electricity Generation. The possibility of delivering electricity gen-
erated on site to a local power grid is examined. The power grid must
be capable of handling the electricity generated and must be rela-
tively close (within about 1 km of the site) to be cost effective.
• Pipeline Injection. The possibility of injecting the gas into a pipeline
grid carrying medium or high quality gas is examined. The pipeline
grid must be within a radius of about 3 km in order to be cost effec-
tive.
To collect the necessary information, visits to the site and its surrounding area
are required to identify potential energy users. Once the potential energy us-
ers are identified, information is required about each in order to assess
whether their energy needs can be met by the landfill gas produced at the site.
Exhibit 4-1 presents the information required to assess potential gas usage.
Using this information, an overview of the total nearby energy demand is de-
veloped. Additionally, the potential ability to supply energy to wider distribu-
tions systems (electric and gas) are identified. This potential demand will be
compared below to the energy that potentially can be produced at the site.
It is expected that not all the above information will be available from all the
relevant facilities. As much information should be obtained as possible within
the time and resources available so that a reasonable overview of the energy
situation can be obtained. If necessary, "general usage factors" regarding en-
ergy requirements for individual industries or residential use can be applied to
provide a rough approximation of the likely energy demand.
4.1.2 Potential Gas Production
Before a gas recovery project can be considered at a landfill site, an estimate
is needed of the current and potential future amount of gas that can be pro-
duced. The amount of gas that can be collected depends on several factors,
including, among others, the amount of waste in place, waste characteristics,
and facility and collection system designs.
-------
Preliiiaarj Site Assessments
Exhibit 4-1: Assessing Potential Gas Usage
Step 1. Identify Potential Energy Users
1,1 Are there any significant on-site energy needs (e.g., heating or electricity loads)?
List any Industrial facilities within 3 km of the site which have significant energy needs.
1.2
1.3
List any commercial or residential facilities within 3 km of the site that have significant
energy needs. - ' •: •
1.4. Identify the closest electricity transmission line. :
1.5 Identify the closest gas pipelines and gas type (medium or high-qualify).
Step 2. Identify Energy Requirements
2.1 For each pn-site use or nearby facility (industrial, commercial, residential), collect or
. estimate the following information: .
• Total energy consumed in the past year by type: electricity; gas/oil/coal.
• If energy consumption varies by season, average and peak daily energy usage by
season and by type. >
• Describe any special energy requirements, e.g., gas quality for specialized
equipment or peak electric power requirements for specialized equipment.
• Describe any expected trends in energy requirements.
\ ' ' •- .
2.2 For electricity transmission, lines, identify the capacity of the line and whether it operates
at full capacity. Identify whether additional electric power generation capacity is
planned for the grid.
2.3 For gas pipelines, identify the quality characteristics of the gas carried. Identify the ca-
pacity of the line and whether it operates at full capacity. Identify whether additional
gas supply is planned'for the .grid, at least seasonally if applicable. • - -
three approaches for estimating current and potential future gas production
are available.*3 The most reliable approach for estimating current gas produc-
tion is to drill test wells into the waste. This approach is described first. Be-
cause it can be costly to implement, this approach should not be taken until
initial assessments indicate that there is a relatively high likelihood that there '
are uses for the gas and that there is enough waste to produce a, reasonable
amount of gas. Consequently, estimation procedures are used initially.
Estimating .the gas production po~
, tenM is critical in determining the
technical specifications of the pro/-,
ect and assessing its economic fea-
sibility*
Most countries will be familiar with the IPCC method of estimating landfill methane
emissions which is used in compiling national inventories of greenhouse gases as
required by the UNFCC. Since the IPCC method is a top-down approach, it'is more
appropriate for a national assessment/than a site-specific analysis. The approaches
presented in this chapter are appropiate for site-specific assessments.
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Preliminary Site Assessments
LHILL GUIDELINES
There are three estimation procedures that can be used. To conduct a pre-
liminary assessment, a rough approximation method is presented that does
not require specific information regarding waste characteristics. More detailed
modeling approaches are presented.that can be tailored to site-specific condi-
tions. Each of these methods is described in turn.
Method 1: Test Wells.
There are a variety of methods for es-
timating gas production - ranging from
basic desktop estimates to actual field
tests. As both the cost and reliability ot
tfie estimates increase for more de-
tailed methods, it is recommended that
baste estimation approaches be used
first, and more detailed methods be
used (if warranted) as project assess-
ment progresses.
The most reliable method for estimating gas quantity/short of installing a full
collection system, is to drill test wells and measure the gas collected from
these wells. To be effective, the wells must be placed in representative loca-
tions within the site. Individual tests are performed at each well to measure
gas flow and gas quality. The number of wells required to predict landfill gas
quantity will depend on factors such as landfill size and waste homogeneity.
A general rule applied by landfill developers in developing countries and coun-
tries with economies in transition to estimate the rate at which a sustainable
gas yield can be drawn from a site using test wells is to cut in half the amount
of gas collected by test wells (Jansen, 1995). This is done because wastes at
these sites are often loosely compacted or spread in varying amounts across
the landfill. Also, gas migration at these sites is a common problem which can
bias ,gas collection figures upward. Furthermore, cutting the test estimates in
half provides a conservative estimate of gas production, which is important for
purposes of determining the size of the energy recovery system. Later, if it is
determined that the gas is being under-utilized, it is easy to supplement the
collection system; however, the reverse is not true.
An added benefit of this method is that the collected gas can be tested for
quality as well as quantity. The gas should be analyzed for methane content
as well as hydrocarbon, sulfur, particulate, and nitrogen content. This will help
in designing the processing and energy recovery system.
Method 2: Rough Approximation.
The simplest method of estimating the gas yield from a landfill site is to as-
sume that each ton of waste will produce 6 m3 of landfill gas per year. The
procedure for approximating gas production is derived from the ratio of waste
quantity to gas flow observed in the many diverse projects already in opera-
tion. It reflects the average landfill that is supporting an energy recovery proj-
ect, and may not accurately reflect the waste, climate, and other characteris-
tics present at a specific landfill.
This rough approximation method only requires knowledge of how much waste
is in place at the target landfill or large open dump. The waste tonnage'should
ideally be less than 10 years old. Estimates from this approximation should be
bracketed by a range of plus or minus 50%. This rate of production can be
sustained for 5 to 15 years, depending on the site.
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ImmiKwmm
Preliminary Site Assessments
Method 3: Model Estimates
Although test wells provide real data on the site's gas production rate at a par-
ticular time, models of gas production predict gas generation during the site
filling period and after closure. These, models typically require the period of
landfilling, the amount of waste in place, and the types of waste in place as the
minimum data. Two main models used for emissions estimating purposes are
the "First Order Decay Model" and the "Waste In Place Model."
The "First Order Decay Model" accounts for changing gas generation rates
over the life of the landfill. The model, therefore, takes into account the vari-
ous factors which influence the rate and extent of gas generation. The model
requires that the following five variable be known or estimated:
• the average annual waste acceptance rate;
• the number of years the landfill has been open;
•• the number of years the landfill has been closed, if applicable;
• the potential of the waste to generate methane; and
• r the rate of methane generation from the waste.
The basic.first order decay model is as follows:
ASSESSMENT
The First Order Decay Model accounts,
for the fact that methane is "emitted
over a long period of time rather than ,
''instantaneously* As such, it can tie
used to project future gas production.' •
where:
LFG
U
R
k
t
c
Total amount of landfill gas generated in current year (m¥yr)
Total methane generation potential of the waste (m3/kg)
Average annual waste acceptance rate during active life (kg)
Decay constant for the rate of methane generation (1/year)
Time since landfill opened (years)
Time since landfill closure (years) r
The methane generation potential, Lo, represents the total amount of methane
that one kilogram of waste is.expected to generate over its lifetime. The decay
constant, k, represents the rate at which the methane will be released from
each kilogram of waste. If these term's were known with certainty, the first or-
,der decay model would predict landfill gas generation relatively accurately;
however, the values for U and k are vary widely, and are difficult to estimate
accurately for a particular landfill.
Ranges for U and k values developed by an industry expert are presented in
Exhibit 4-2. Since these values are dependent in part on local climatic condi-
tions and waste composition, it is recommended that others in the local area
with similar landfills who have installed gas collection systems be consulted to
narrow the range of potential values. Note that for different climatic conditions,
the U (total amount of landfill gas generated) remains the same, but the k
-------
Preliminary Site Assessments
ELINES
value (rate of landfill gas generation) changes, with dry climates generating
gas more slowly. Because of the uncertainty in estimating k and U, gas flow
estimates derived from the first order decay model should also be bracketed
by a range of plus or minus 50 percent.
Exhibit 4-2: i
VARIABLES
Lo (m3 CH4/kg)
K(1/yr)
Suggested V;
RANGE
0-0:312
0.003 - 0.4
jlues for First Order Decay Model
SUGGESTED VALUES
Wet Climate
0.14-0.18
0.10-0.35
Medium Moisture
Climate
0.14-0.18
0.05 - 0.15
Variables
i
Dry Climate
0.14-0.18
0.02 - 0.10
Source: Landfill Control Technologies, "Landfill Gas System Engineering Design Seminar," 1994.
The "Waste In Place Model" was developed from data on gas recovery proj-
ects in the United States (USEPA, 1993a). This model relates gas production
to the quantity of waste in the facility, but does not consider the aging of the
waste and the changing rate of gas production over time. This model is as
follows:
LFG a 2 [4,32 + 2.91 W -1.1W-DJ
where:
LFG
W
Total landfill gas generated in the current year (106 m3)
Total waste in place that is less than 30 years old (106
tons)
Indicator for arid conditions (1 when precipitation < 63.5
mm/yr).
This model was specified only for large landfills with at least one million tons of
waste in place. As indicated in the equation, the emissions coefficient is re-
duced when the landfill is located in an arid region, which is defined as having
less than 63.5 mm (25 inches) of precipitation per year.
It should be noted that not all landfill gas generated in the landfill can be col-
lected. Some of the gas generated in a landfill will escape through the cover of
even the most tightly constructed and collection system. Newer systems may
be more efficient than the average system in operation today. A reasonable
assumption for a new collection system that will be operated for energy recov-
ery is 70 - 85% collection efficiency. The estimates from the First Order Decay
Model and the Waste In Place Model shoukTbe multiplied by this range of col-
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Immiftmmms
Preliminary Site Assessments
lection efficiencies (70 - 85%) to determine the potential collectable gas from
the site.
Exhibit 4-3 compares estimates of gas -recovery for the three estimating meth-
ods. As shown in the exhibit, the Rough'Approximation method produces the
lowest estimates of gas recovery. As such, it will be the most conservative es-
timate for purposes of conducting the site assessment. The First Order Decay
Model produces,the highest estimates, but its estimates are very sensitive .to
the assumptions made about the.timing of the waste disposal and gas recov-
ery. The First Order Decay and Waste In Place estimates shown in the exhibit
incorporate a 75 percent collection efficiency.
ASSESSMENT
Exhibit 4-3: Landfil
LANDFILL SIZE
(million tons of waste)
1.0
1.5
2.0
3.0
I Gas Production: A Comparison of Methods
LANDFILL GAS RECOVERED*
(million m3 per year)
Rough Approxi- First Order Decay Waste In Place
, mation , Model* Model
6 '.' '
9 ,
12
18.
7-11
10-16
14-21
21-32
9-11
11-13
12-15
15r20
+ Landfill Gas Recovered estimates incorporate a 75% collection efficiency for the First Order Decay
and Waste in Place Models. . .
# The estimates for the First Order Decay Model are 10-year averages. The lower value is for the 10 -
' years following closure of a landfill that was open-for 20 years. The higher value is for the 1 0 years
following closure of a landfill that was open for 10 years. Waste acceptance is assumed to be con-
stant during the open period. All estimates use the mid-point values fo.r Lo and k for Medium Mois-
ture Climate. . • " '-
4.1.3 Comparing Gas Flow Estimates to Potential Energy Uses
At this point in the assessment it is instructive to compare the gas flow esti-
mates to the potential energy uses described above. Keeping in mind that the
landfill gas estimates are assumed to be about 50 percent methane, the po-
tential annual energy produced at the landfill can be compared to the potential
energy uses. If the energy production appears to be much larger than the
likely uses for the energy, additional investigation into potential uses is war-
ranted prior to continuing with the analysis. If it becomes clear that more en-
ergy can be produced than can be used or distributed to others, then flaring of
the gas may need to be considered as a means for reducing emissions. Alter-
natively, if there are several potential uses for the energy which equal or ex-
ceed the likely energy production, then the site assessment should continue
with the assessment of technical options described in the next section.
Remember that landfill gas is typically
only about 50 percent methane. .
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Preliminary Site Assessments
LANDFILL GUIDELINES
Profiles of Gas Recovery at Two
Very Different Landfills:
Puente Hills Landfill
The Puente Hills landfill in California,
USA receives 12,500 tons of waste
per day, and collects about 1 million
cubic meters of gas per day. The
gas is used in three ways:
• to generate approximately 50MW
of power,
• as a vehicular fuel; and
• as a fuel for a boiler.
Puente Hills is the largest landfill gas
recovery project in the U.S.
The Battleboro Landfill
The Battleboro Landfill in Vermont,
USA, is one of the oldest landfill gas
recovery projects in the country.
When energy recovery began in
1983, the landfill contained less than
1 million tons of waste. The ap-
proximately 11,000 cubic meters ol
gas collected per day in the landfill is
used m 1C engines to generate less
tfian 7 MWof electricity, which is sold
to the heal utility.
4.2 Gas Recovery and Utilization Technologies
This section presents the technologies used to recover and utilize gas from
landfills and open dumps. Gas recovery options are relatively limited and
straightforward. The landfill characteristics required to support recovery are
discussed. Then, the primary technologies for making productive use of the
recovered gas are presented.
4.2.1 Gas Recovery Technologies
To recover gas from a landfill or large open dump, vertical or horizontal wells,
are drilled -into the waste where methane is being produced. The wells are
connected by horizontal piping to a central point where a blower removes gas
under negative pressure. Recovery systems are usually operated as part of
an overall gas control system. A typical gas recovery system generally in-
cludes a backup flare. This section provides a brief overview of each compo-
nent, and outlines the major characteristics of energy recovery systems that
determine their applicability at a given site.
The best source of the information to perform a technical assessment of re-
covery methods will be individual facility operators. Operators can provide
detailed information regarding recovery methods currently used, waste charac-
teristics, and geological and other site characteristics. The above data^can be
collected in several ways. For example, officials can be sent to the landfills to
obtain the required information, a conference could be held with landfill opera-
tors, a survey could be mailed to operators, or operators could simply be con-
tacted by phone.
Exhibit 4-4: Typical Gas Collection Well
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Preliminary Site Assessments
Typical landfill gas collection systems have three main components: collection
wejls; a blower (compressor); and a flare for use when gas production exceed
gas use. Each of these components is described below. •
Gas Collection Wells
ASSESSMENT
Gas collection typically begins after a portion of a facility (e.g., a landfill cell) is
closed. There' are two collection system configurations: vertical wells and
horizontal wells. Vertical wells, shown in Exhibit 4-4 and 4-5, are by far the
most common ,type of well used for gas collection. Horizontal wells may be
appropriate for landfills which need to recover gas promptly (e.g., landfills with
gas migration problems). Regardless of whether vertical or horizontal wells
are used, each wellhead is connected to lateral piping, which transports the
gas to a main collection header (USEPA 1995). Ideally, the collection system
should be designed so that the operator can monitor and adjust the gas flow if
necessary.
Blower
A blower (or compressor) provides the negative pressure to pull the gas from
the collection wells into the collection header. The size, type, and number of
-U.S. landfill'developers estimate that
one gas collection veil i$ required for
everyOA hectares (1 acre) of landfill.
Exhibit 4-5: Schematic of a Typical Gas Collection Weil
VALVE
SPECIAL BACKFILL-
^BfpBSSH^J 7?
s« *• 'v-ASi--
-------
Preliminary Site Assessments
LANDFILL GUIDELINES
blowers needed to withdraw the gas from the landfill: or open dump depends
on the gas flow rate. Additional gas compression may be required depehding
on how the gas is used. However, the amount of compression required solely
for withdrawing the gas from the facility is generally quite small because only a
slight negative pressure is required. For example, a facility with 2 million tons
of waste may produce about 15 million m3 of gas per year, or about 28.5 m3
per minute. Given that about 0.3 to 0.8 horsepower (hp) is required per m3/min
of gas flow, total blower hp requirements are only about 36 to 95 hp.
Flare
A flare burns the recovered gas when it cannot be used! The gas will readily
form a combustible mixture with air, and requires only an ignition source to en-
sure combustion. The flame can burn openly or can be enclosed.
;
• Open Flame Flares. Open flame flares (e.g., candle or pipe flares)
are the simplest flaring technology. They consist of a pipe through
which the gas is pumped, a pilot light to spark the gas, and some
means of regulating the gas flow. Possible complications include
unstable flames leading to inefficient combustion, aesthetic com-
plaints, and the difficulty of testing emissions from open flames.
Some open flame flares are covered, both hiding the flame from view
and allowing relatively accurate monitoring for low flow rates. Exhibit
4-6 presents a diagram of a typical open flare.
• Enclosed Flares. Enclosed flares are designed to overcome the
problems associated with open flame flares. Because the air flow can
be adjusted, the combustion is more reliable and more efficient. As a
result, unburned hydrocarbon and hazardous material emissions are
1 reduced. However, these flares cost several times more than the
open flame flares.
Exhibit 4-6: Typical Open Flare
Pilot Assembly
Rare Tip
Manual Ignitor
Fuel Gas Source
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Preliminary SiteissessiMts
Most energy recovery systems will have flares to remove excess gas when-
ever required (e.g!, during system startup and downtime, system upgrades,'
etc.). Flaring may also be considered as the principal emissions control strat-
egy for situations in which gas utilization is not appropriate.
These three components must be used to recover the gas.: In order for gas
recovery to be technically feasible, the facility must be able to sustain the drill-
ing of wells. The waste into which the wells are drilled must be relatively sta-
ble, and cannot be saturated with water. Some facilities have jmpermeable
barriers below (such as^clay liners) which trap water. If this water is not re-
moved via a leachate collection system, the waste can be cone saturated and
unable to sustain gas recovery wells. Test wells can be used to verify that the
waste can support gas recovery wells.
ASSESSMENT
4,2,2 Gas Utilization Technologies
As discussed above, methane recovered from landfills and large open dumps
can be used in a variety of applications. The selebtion of which option to use
depends first on the requirements for energy on-site and in the surrounding
area. Once these needs are identified, the most attractive options will be
those that are compatible with the quantity and quality of gas that can be pro-
duced at the facility. • ' . -
This section describes .the main gas utilization technologies. Based on the
energy use information collected above, several candidate utilization options
should be identified. The preferred, option can then be determined based on
costs or other considerations. Exhibit 4-8 summarizes the main options.
Landfill gas-to-energy projects involve
technologies that are generally well
developed and commercially available
in mo$t countries,' •
Local Gas Use
The simplest option for using the recovered gas is local gas use. This option
requires that the gas be transported, typically by a dedicated pipeline, from the
point of collection to the point(s) of gas use. If possible, a single point of use is
preferred so that pipeline construction and operation costs can be minimized.
Prior to transporting the gas to the user, the gas must be cleaned to some ex-
tent. Condensate and particulates are removed through a series of filters
and/or driers. Following this minimal level of gas cleaning, gas quality of 35 to
50 percent methane is typically produced. This level of methane concentration
is generally acceptable for use in a wide variety of equipment, including boilers
and engines. Although the gas use equipment is usually designed to handle
natural gas that is nearly 100 percent methane, the equipment can usually be
adjusted easily to handle the gas with the'iower methane content.
To assess the feasibility of this option, countries need to estimate the length of
the pipeline needed to transport the gas to the potential user. As discussed
above, distances over about 3 km are typically not cost effective, Additionally,
-------
Preliminary Site Assessments
LAPFILL GUIDELINES
there must be a path along which the pipeline can be constructed. Barriers
such as rivers or excessively hilly terrain can make pipeline installation pro-
hibitively costly. For each potential local use option, estimate the pipeline
length required by visiting the site and driving or walking the path that the pipe-
line could follow. Alternatively, local maps could be used to estimate these
items.
Electricity Generation
Electricity can be generated for on-site use or for distribution through the local
electric power grid. There are several available technologies for generating
electricity: internal combustion engines (ICs) and gas turbines are the most
commonly used prime movers for landfill gas energy recovery projects.
The anticipated landfill gas flow rate is particularly important in choosing an
appropriate prime mover to generate electricity. Gas turbines typically require
higher gas flows than 1C engines to make them economically attractive.
Therefore, gas turbines are generally suitable only for large landfills. Addi-
tionally, gas turbines are expected to run relatively constantly, and as a con-
sequence are not turned on and off to match changing electricity loads during
the day. Consequently, gas turbines are commonly used to generate electric-
ity that will be distributed through the electric power grid on a continuous basis.
1C engines can more easily be turned on and off, and are therefore suitable for
supplying intermittent on-site power needs as well as distribution through the
grid.
• Internal Combustion Engines. Internal combustion engines are the
most commonly used conversion technology in landfill gas applica-
tions. They are stationary engines, similar to conventional automobile
Exhibit 4-7: Typical Engine Generator Set
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Preliminary Site Assessments
engines, that can use medium quality gas to generate electricity.
While they can range'from 30 to 2000 kilowatts (kW), 1C engines as-
sociated with landfills typically have capacities of several hundred
kW.
1C engines are a proven and cost-effective technology. Their flexibil-
ity, especially for small generating capacities, makes them the only
electricity generating option for smaller landfills. At the start of a re-
covery project, a number of 1C engines may be employed; they may
then be phased out or moved to alternative utilization sites, as gas
production drops. '
1C engines have proven to be reliable and effective generating de-
vices. However, the use of landfill gas in 1C engines can cause cor-
rosion due to the impurities in landfill gas. Impurities may include
chlorinated hydrocarbons that can react chemically under the extreme
heat and pressure of an 1C engine. In addition, 1C engines are rela-
tively inflexible with regard to the ainfuel ratio, which fluctuates with
landfilj gas quality. Some 1C engines'also produce significant NOX
emissions, although designs exist to reduce NOX emissions.
+ Gas Turbines. Gas turbines can use medium quality gas to generate
power for sale to nearby users or electricity supply companies, or for
on-site use. Gas turbines typically require higher gas flows than 1C
engines in order to be economically attractive, and have therefore
been used at larger landfills; they are available in sizes from 5QO kW
to 10 MW, but are most useful for landfills when they are 2 to 4 MW
(USERA,, 1993c). Also, gas turbines have significant parasitic loads:
when idle (not producing power), gas turbines consume approxi-
mately the same amount of fuelas when generating power. Addi-
tionally, the gas must be compressed prior to use in the turbine.
In addition to these two main options, there several additional options for pro-
ducing electricity. Fuel cells, an emerging technology, are being tested with
landfill gas. These units, expected to be produced in the 1 to 2 MW capacity
range, are highly efficient with relatively low NOX emissions. They operate by
converting chemical energy into usable electric and heat energy. Additionally,
in cases where extremely large gas flows are available, steam turbines can be
used. The steam is, utilized in a heat recovery steam generator, which uses
the steam to turn a turbine which supplies mechanical energy to a generator.
To assess the feasibility of electricity generation countries need to know how
much electricity could be used on-site or delivered to the power grid. The en-
ergy should be estimated in terms of kilowatt hours (kWh), and the capacity of
the power grid to accept the electricity should be assessed. 'Additionally, if
electricity is to be delivered to the power grid, the distance over which power
lines must be installed must be estimated. As with pipeline construction, the
shqrter the distance the better, and geographic obstacles can cause significant
increases in costs.
ASSESSMENT
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Preliminary Site Assessments
Enrichment of landfill gas to high qual-
ify gas depends on processes that are
commercially available but currently
uneconomic or Impractical for use in
many landfill applications.
Pipeline injection
Pipeline injection may be a suitable option if no local gas user is available. If a
pipeline carrying medium quality gas is nearby, only minimal gas processing
may be needed to prepare the gas for injection. Pipeline injection requires that
the gas be compressed to the pipeline pressure.
y ,
• Medium Quality Gas. Medium quality gas will typically have an en-
ergy value that is the equivalent to landfill gas with, a 50 percent
methane concentration. Prior to injection, the gas must be processed
so that it is dry and free of corrosive impurities. The extent of gas
compression and the distance required to reach the pipeline are the
main factors affecting the attractiveness of this option.
*• High Quality Gas. For high-quality gas, most of the carbon dioxide
and trace impurities must be removed from the recovered gas. This
is a more difficult and hence more expensive process than removing
other contaminants. Technologies for enriching the gas include pres-
sure swing adsorption with carbon molecular sieves, amine scrub-
bing, and membranes.
To assess the feasibility of pipeline injection, you need to determine the loca-
tions of the pipelines and their gas quality specifications. As with the other op-
tions, the closer the pipeline the better. Additionally, the availability of capacity
in the pipeline to carry the additional gas being produced must also be as-
sessed.
-------
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Preliminary Site Assessments
LMDFILLCBIDELH1S
Gas recovery might be considered a
necessary environmental control op-
tion. In such cases, costs associated
with gas recovery would be a neces-
sary expense, whether gas utilization
is considered or not
4.3 Economic Feasibility
The purpose of evaluating the economic feasibility of the project options is to
ensure that the project meets a target level of cost'effectiveness. There may
be several goals of a gas recovery project: profitability, energy supply, or
emissions reductions (or a combination of the three). If only .profitable projects
are to be considered, then revenues must exceed costs. If a net cost can be
incurred to reduce methane emissions and meet other environmental goals,
the threshold may be set in terms of cost per ton of emissions avoided (e.g.,
$2/ton of COa equivalent emissions avoided). Alternatively, if the goal of the
project is to meet energy demands of the local community, the threshold may
be set in terms of cost per unit of energy supplied (e.g., $0.07/kWh). Regard-
less of the objective, the capital and operating costs of the project must be es-
timated and balanced against the estimated revenues and other benefits.
Information from all parties potentially involved in the gas recovery project
should be considered at.this stage of the assessment, including potential en-
ergy users, the facility owner or operator, and equipment suppliers. If energy
production or prices are regulated, information from the appropriate ministries
should be obtained as well to help assess potential costs and revenue im-
pacts. First, the cost analysis is presented, followed by the benefits analysis,
which includes a discussion of how to compare the costs and benefits to as-
sess economic feasibility.
It should be noted that labor and equipment costs can vary significantly" among
countries and regions within countries. The dollar costs estimates for equip-
,ment presented in this section represent world prices. Potential additional
transportation costs or tariffs are not reflected. Additionally, operating and
maintenance costs include labor charges, which can vary significantly. Ad-
justments to local currencies and cost conditions should be attempted when-
ever possible.
4.3.1 Cost Analysis
Costs of recovering and using landfill gas are highly dependent on the amount
of gas involved and the specific technologies used. All projects will incur costs
for gas recovery and a minimum amount of gas cleaning to remove moisture
and impurities. Gas utilization costs will include equipment purchase and in-
stallation (e.g., pipelines, engines, generators), as well as maintenance and
operation. Site-specific costs may include the need to obtain rights-of-way for
pipelines or power lines, or pollution control equipment for engines or boilers.
Each of the major cost elements is discussed in turn.
Gas Recovery Costs
Gas recovery costs are driven primarily by the number-of collection wells re-
quired, the area from which gas is being collected, and the amount of gas be-
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Immiftmmm
Preliminary Site Assessments
ing collected. Gas recovery costs are presented for the basic components of a
typical gas recovery system. "These include: gas recovery equipment; flare
system; and (minimum) gas cleaning equipment. Each is discussed in turn.
+ Gas Recovery Equipment. As a rough estimate for preliminary as-
. sessment purposes, installation costs for gas recovery systems are
' typically about $12,000 to $25,000 per hectare. An alternative for-
mula presented in USEPA (1993b)"based on U.S. data is $470,000 x
, W°'8, where W is the waste in place in millions of tons. Capital costs
include surveying, drilling wells, and constructing the gas collection
system. Operating costs of the recovery system will vary greatly with
the complexity and scope of the system. Annual operating costs are
estimated to be on the order of 10 percent of the initial installation
costs (USEPA, 1993c). .''-.'
*• Flare System. Flares are considered a component of each gas re-
covery system. The cost of flares depends on the design and the gas
flow rate. For a typical flow rate of 8 to 20 m3 per minute (300-700
.. cubic feet per minute), costs range from $15,000 for an,open-flame
combustor to $90,000 for enclosed combustors (USEPA, 1993c).
Assuming that high combustion efficiencies-are desired, relatively so-
phisticated flares will generally be called for. The costs of such flares
can be estimated as $65,000+ $1,100x LFG, where LFG is the
quantity of landfill gas recovered in m3/min (USEPA, 1993b).
• Gas Cleaning Equipment. The capital costs for filters and drying
equipment needed to provide the minimum gas cleaning.required to
remove condensale liquids and particulates are on the order of
$2,500 per mVmin of gas flow., Using this estimate, the capital costs
for the equipment necessary for a facility with 2 million tons of waste
in place and a gas recovery of 15 million m3 per year is on the order
of $71,000. The operating and maintenance costs of this equipment
is relatively small, and can be considered to be covered by the operat-
ing and maintenance (O&M) estimates for the collection system.
Costs for gas clean up rise significantly if other impurities must be
removed.
ASSESSMENT
To complete this preliminary cost,
asssessment, the following basic
landfill data is tequifed: amount'ol
waste in place, gas flow rate, and
area.
Gas Utilization Costs
Costs of the equipment needed to use the recovered gas will vary significantly
with each project. If nearby existing boilers or engines will be used, costs may.
be minimal. If new pipelines must be constructed, or if gas enrichment is re-
quired, costs can be significant. The following information provides the gen-
eral magnitude of costs that may be incurred.
'*• ; Pipeline Costs. Various options require that a pipeline be con-
structed from the gas collection point to the point of use. The pipe-
lines (and requisite compressors) which might typically be 10 to 15
Gas Recovery Capital Costs
Gas RecoveryEqutpment Costs +
Flare System Costs+
Gas Cleaning Costs -
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Preliminary Site Assessments
LADFILLGODELIDS
Electricity generation using 1C engines
may have additional maintenance
costs, due to engine wear and frequent
o// changes, due to the potentially cor-
rosive nature of landfill gas.
inches in diameter, and operate at 10 to 15 pounds per square inch
(psi) of pressure, have construction costs on the order of $100,000 to
$200,000 per kilometer (USEPA, 1993c). These costs depend on
several related factors, including the gas flow, the pipeline diameter
and material, compressor capacity, and the terrain over which the
pipeline is laid. ,
Gas Utilization Equipment. Each piece of gas utilization equipment,
such as a boiler or engine, will have its own unique costs. No guide-
lines are available for estimating these costs for the preliminary site
assessment. The most appropriate estimate for these costs will in-
volve the cost of adjusting existing equipment to handle the type of
gas recovered from the landfill.
Electric Power Generation. Equipment for generating electricity in-
cludes sufficient gas purification systems, a prime mover (e.g., a gas
compressor), a generator, and auxiliary equipment such as engine
controls and gas monitors. Capital costs for these components vary
widely depending on the gas flow, the generating capacity, the type of
prime mover, as well as other factors such as gas quality and system
.specific criteria.
Prime mover capital costs are typically a large portion of total costs.
1C engines, exclusive of other cost components, are estimated to be
$350 to $500 per kW of generating capacity (USEPA, 1993c)-9
Typical capital costs for a complete system, including the equipment
necessary to connect the project to the grid, are on the order of
$1,200 per kW of generating capacity. These costs include the
prime mover (low pressure 1C engines), generator equipment, site
preparation and auxiliary equipment. A high-pressure 1C system,
which requires gas compression, costs about $2,000 per kW
(USEPA, 1993c).
In addition to these capital costs, the costs of installing electric power
lines must be included. The distance to the power grid and local
costs per km of line should be used in making the estimate. Operat-
ing costs for electric power generation can be estimated very roughly
at $0.01 to 0.025 per kWh of electricity produced. The precise cost
will depend.on the cost of labor and materials, as well as the type of
equipment used.
Pipeline Injection. The principal costs for pipeline injection include
pipeline construction costs, gas cleaning costs, and gas compression
costs. The pipeline construction costs can be taken at $100,000 to
$200,000 per kilometer as discussed above. Gas cleaning and
The desired generating capacity is estimated from the amount of energy being re-
covered from the facility and the energy rating of the engine-generator set.
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PreliiBinary Site Assessments
compression costs will vary depending on the quality specifications
and operating pressure of the pipeline into which the gas is being in-
jected. To enrich the gas to about 95 percent methane, capital costs
are about $25,000 per m3/min of gas flow (assuming the gas is 50
percent methane). For a 2 million ton facility at which 15 million m3 of
gas is recovered annually, capital costs for enrichment would be
about $700,000.
Compression costs will vary depending on the operating pressure of
the pipeline. The horsepower (hp) requirements can be determined
from standard gas system design manuals. Examples from McAllister
(1988) indicate that for each m3/min of gas flow, the'follow/ing is re-
quired: 7,2 hp/(m3-rhin) is required to compress the gas to 100 psi;
12.7 hp/(m3-min) is required to compress the gas to 500 psi; and
14.9 hp/(m3-min) is required to compress the gas to 1,000 psi. Actual
requirements will vary depending on site conditions and gas charac-
teristics. For this preliminary assessment, compression costs on the
order of $600 per hp can be used*
Other Costs
In addition to the cost of installing and operating the gas recovery and utiliza-
tion equipment, several other costs are incurred which may include:
<* System Design. The costs of the system design and construction
management may be, on the order of 15 percent of the total capital
cost for the project.
* Legal. Siting, permitting, and land use requirements must be met.
Legal costs include the costs of obtaining necessary permits and li-
censes, and vary greatly from project to project.
+ Royalty Payments! Under some conditions, royalties must be paid
to the landfill owner/operator. Royalties can be viewed as compensa-
tion for gas rights or as a financial incentive for allowing the project to
be developed., Royalties are usually estimated as a percentage of
total revenue or energy produced.,
*• Financing. Financing costs include the cost for obtaining financing
.as well as interest payments. Like legal costs, financing costs de-
pend on project-specific factors and therefore vary greatly from proj-
ect to project.
Using the above information and locally available data, countries should de-
velop a complete listing of expected .costs for a variety of project types (e.g.,
electricity generation, supply of medium-BTU gas). This information can then
be used to compare economic feasibility.
' - GasJJtiltzation Costs
Pipeline Costs + Gas Utilization"
Equipment Costs + Electric Rower
Generation Costs (or Pipeline
'Injection Costs^
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Preliminary Site Assessments
LANDFILL GUIDELINES
Artificially tow energy prices can render
promising energy recovery projects
unprofitable.
4.3.2 Benefits Analysis
The goals of a gas recovery project may be several - profits, emissions reduc-
tions, energy supply, safety, and odor control. The benefits of gas recovery
will be evaluated in terms of these project goals. The benefits analyzed irrthis
section include: revenues generated from the utilization of the gas; methane
emissions avoided by recovery of the gas; and energy supplied by a gas re-
covery project.
Revenues Generated
The economic benefit of a gas recov-
ery project will be the income from the
sale of tfie energy produced. This can
be calculated either as direct sale ol
energy or the saving on energy used
internally.
Revenue from the gas recovery project results from the sale or use of the en-
ergy produced. The value of energy produced is estimated as the amount of
energy (gas or electricity) produced multiplied by its price. If the energy is
used to offset energy costs (e.g., natural gas, oil, electricity) on-site, it is an
indirect source of revenue. The savings that are achieved by offsetting energy
purchases can be counted as a type of revenue. Additionally, tax credits or
othergovernrnent incentives may supplement revenues.
The rate at which landfills can sell energy will vary according to the terms ne-
gotiated with individual customers, or may be set by national or state policy.
Artificially low energy prices can adversely affect the revenues from the proj-
ect. Conditions that lead to artificially low energy prices include national en-
ergy policies and subsidies for fossil fuels (discussed in Section 5 below).
Other important factors affecting prices include the price of competing source
of energy, supply reliability, and quantity purchased.
If electricity is to be distributed through the electric power grid, the
owner/operator of the grid (such as a national electricity company) will typically
purchase the electricity at the point at which it enters the grid. Under such
conditions, the price for the electricity could be set to be comparable to the
marginal cost of generating electricity elsewhere on the overall system. In
some cases, an electric power generation project is best developed jointly with
the electric power authority. It is recommended that potential pricing arrange-
ments be explored with the proper authorities as part of this assessment.
The price of gas sold to customers can be priced on an energy-unit basis that
is comparable to the price of alternative fuels, such as propane, oil, natural gas
or coal. The relevant fuel price to use depends on the costs that customers
are paying to use other fuels. Similarly, the price of gas injected to pipelines
can be priced to be similar to the price paid for comprable gas supplies. These
prices must be determined locally.
Another potential source of revenue is when a portion of the energy is used to
offset on-site energy needs. The savings associated with this approach are
estimated as the cost of the fuel displaced by the use of the recovered gas.
These values should be estimated from on-site energy consumption records.
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Preliminary Site Assessments
Tax credits or other government programs can also supplement project reve-
nues. Some government programs may offer tax credits or subsidies for pro-
ducing energy from non-conventional sources, including landfills. The appli-
cability of these incentives usually may depend on the structure of the project
and the landfill owner's status. Therefore, a complete understanding of the tax
laws and their application is critical to ensuring a project's ability to take full
advantage of the incentives.. - -
Once ^revenues are estimated, they must be compared to project costs
(estimated in the previous section). This comparison requires that a time pro-
file of the costs and revenues from the project be developed. From the infor-
mation above, the capital costs and annual operating costs can be estimated.
For purposes of evaluation, it can be assumed that a project's life is 10 to 20
years, and the annual operating expenses are incurred in each year. Annual
revenues can be calculated using the estimated energy sales estimates over
time. Because energy prices often rise over time, using current prices to .esti-
mate revenue wi|l generally produce a conservative estimate of annual future
revenues. Using these time profiles of costs and revenues, three main tech-
niques exist for determining the economic feasibility of the project:
+ , Payback Method, the payback method involves determining the
number of years it would .take for a project to generate profits equal to
the initial capital outlay. This method may be particularly suitable
where there is a great amount of risk and uncertainty associated with
a project and the emphasis is on recovering,capital expenditure as
quickly as possible. The main disadvantages are that this method
.does not consider the costs and benefits that accrue at the end of the
payback period and that it does not take into account the time when
costs are incurred or benefits are received. The payback method is
appropriate to use when making a rough preliminary assessment of a
project's economic feasibility. . "
4 Discounted Cash Flow Method. The basic premise of the dis-
counted cash flow technique is that costs or benefits; occurring in the
future are worth less than those occurring now. This means that an-
nual costs and benefits cannot simply be added up over the life of the
project. The costs and benefits in each year of the project are ad-
justed by a discount factor so that costs or benefits occurring in one
year can be compared with the costs or benefits occurring in another
year. The discounted costs and benefits in each year can then be
aggregated to give a Net Present Value (see box) of future cash
flows of the project. The discount rate will normally be chosen on the
basis of prevailing Interest rates or on the basis of the minimum de-
• sired rate of return for the project. If the net present value is positive,
the appraisal shows that the project is capable of yielding this mini-
mum rate of return.
ASSESSMENT
„ The Net Present-Value^ (NPV) is the
present value of a projects cash flows,
including all investment costs, if ,the'
NPV'is greater than 0,.a project is
' considered to be profitable>at the cho-
sen discount rate. The net present
, value can be expressed as follows:
NPV =
where:
n
ACF
-10
r ,
IO
n
annual cash flow in yeart
discount rate' ' V '.
initial cash outlay
life of the project'
Internal Rate of Return Method. The Internal Rate of Return (see
box) is the discount rate at which the present value of the project
would be zero. Thjs value shows the totarrate of return achieved by
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Preliminary Site Assessments
LMDFILL GUIDELINES
The Internal Rate of Return is calculated
as follows:
n
ACF
-10
where:
ACFt
10
n
IRR
= annual cash flow in year t
= initial cash outlay
= life of the project
- internal rate of return.
Benefits of emission reduction are diffi-
cult to evaluate in monetary terms as
tfjey do not accrue directly to a project
developer. However, such benefits are
Important to consider in the formulation
of national energy policy and tax and
subsidy regimes for emissions mitiga-
tion or renewable energy projects.
the project. This rate can be compared to return rates from alterna-
tive investment opportunities.
Sensitivity analyses should be carried out to examine how changes in key pa-
rameters such as electricity prices can affect the economic viability of the proj-
ect. These analyses can carried out before the financing arrangements for the
project have been worked out and are useful in providing an initial indication of
the project's viability. Further analysis can be conducted to examine the vi-
ability of different financing schemes.
Emissions Avoided
Recovery and utilization of gas from landfills and large open dumps prevent
the release of methane and other volatile organic compounds (VOCs). Meth-.
ane is a potent greenhouse gas; .over a 100 year period, a ton of methane
emitted into the atmosphere has the equivalent global warming impact of about
24.5 tons of carbon dioxide. Because landfill gas is typically 35 to 50% meth-
ane, combusting the gas prevents its emission into the atmosphere, thereby
reducing greenhouse gas emissions. In addition to methane, landfill gas often
contains VOCs which contribute to ground level ozone (the principal compo-
nent of urban smog).
A gas recovery project may be implemented to reduce these emissions from a
landfill or open dump. The economics of such a project will be evaluated in
terms of the cost of emissions avoided. For example, a threshold level of cost
effectiveness may be set at $50 per ton of methane emissions avoided. If the
project costs less than $50 per ton of methane emissions avoided, the project
is considered cost effective.
Emissions impacts are usually assessed in terms of greenhouse gas emis-
sions avoided (as opposed to VOC emissions avoided). The emissions impact
of a gas recovery project is, simply, the amount of gas recovered and com-
busted. If not recovered and combusted, the methane will be emitted into the
atmosphere. Methane emissions, in tons per year, can be derived using data
on the gas recovered (determined above), the methane concentration in the
gas, and the density of methane, as follows: '
Annual Methane Emissions Avoided (tons/yr)
Annual Landfill Gas Recovered (nWyear)x
Methane Cone, (e.g., 50%) x 678 g/m3 x 10-12(tons/g)
The methane emissions avoided could be expressed in terms of. carbon diox-
ide emissions avoided. The methane emissions avoided, in units of tons per
year, is converted to tons of carbon dioxide per year using a Global Warming
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Preliminary Site Assessments
Potential of methane equal to 21.10 The following equation expresses the re-
lationship. .
, ' ' , "COa Equivalent Emissions Avoided (tons/yr)
„ CH4 Emissions Avoided (tons/yr) x 21 tons COa Equivalent/ton cm
The amount of methane recovered is an overestimate of actual methane
emissions reduced. In the absence of the gas recovery system, a portion of
the methane produced in the landfill would be oxidized as it migrates out of the
landfill. Withdrawing gas with a collection system prevents this oxidation. The
extent of oxidation that will occur depends on local conditions. Because no
single oxidation factor can be recommended at this time, the amount of gas
collected and utilized should be used as the estimate of emissions reduced.
Finally, landfill gas-to-energy projects will often (but not always) displace en-1'
ergy generated from the combustion of fossil fuels. Where it is known with
certainty that a specific project will displace fossil fuels, the following calcula-
tion can be made to determine the equivalent number of fossil fuel emissions
that will be avoided by implementing a gas-to-energy project:
, Pollutant Emissions Avioded (g/yr)
1 , Electricity Potential(kWh/yr) x System Efficiency(e.g., 0.85)
1 ' » *',x Emission Factor for Pollutant(g/kWh)
Where:
Electricity Potential is the project's electricity generation potential; System Ef-
ficiency isihe operating efficiency of the electricity generating system (default
= 0.85); and Emission Factor for Pollutant is the emission factor associated
• with the pollutant from the fuel displaced (see Exhibit 4-9 below for emission
factors).
Exhibit 4-9: Emission Fa
POLLUTANT
(g/kWh)
S02
C02
NOx
ctors of Pollutants for Alternative Fuels
FUEL DISPLACED
Coal
8.2
1.6x106
2.6
Natural Gas
f1
1.0x106
1.5
Hydro-Electricity*
0.5
0.1 x106
0.3
* With natural gas and coal as supplementary .fuels. >
ASSESSMENT
^ The Global Warming Potential (GWP) is a measure of the relative warming impact
. of a gas relative to the warming impact of carbon dioxide. One gram of methane has
21 times the impact of one gram of carbon dioxide over a 100 year period.
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Preliminary Site Assessments
LMDPILlGnDELUS
Energy Supplied
The cost effectiveness of a gas recovery project may be evaluated in terms of
the quantity of energy supplied. The cost of gas recovery would be compared
with alternative energy supply options to determine the most cost-effective op-
tion. The threshold level of cost-effectiveness may be set in terms of energy
supplied per unit cost For example, energy recovery projects which supply
energy at a cost of $0.07/kWh may be'defined as being cost effective if the
marginal cost of alternative electricity supply options is $0.07/kWh.
In some cases, energy from the gas recovery project may be provided to cus-
tomers w.ho otherwise would be using wood (e.g., for residential cooking). The
economic viability of such a project can be estimated by establishing a
threshold level in terms of the number of households served by the energy
supplied. This would require data on average household energy consumption.
For example, a cost-effective project may be one that costs less than $3 per
household served. Such evaluations are prudent in areas of energy scarcity.
4.4 References
DTI (Department of Trade and Industry) (1993), Guidelines for the Safe Control
and Utilization of Landfill Gas, Energy Technology Support Unit
(ETSU), Report: ETSU B1296, United Kingdom, 1993.
Jansen, G. (1995), Laidlaw Gas Recovery Systems, personal communication,
June 1995.
McAllister, E.W. (ed.) (1988), Pipeline Rule of Thumb Handbook, Gulf Publish-
ing Company, Houston, Texas.
USEPA (U.S. Environmental Protection Agency) (1993a), Anthropogenic
Methane Emissions Estimates in the United States: Estimates for
1990, Global Change Division, Office of Air and Radiation, Washing-
ton, D.C., EPA 430-R-93-003.
USEPA (U.S. Environmental Protection Agency) (1993b), Opportunities to Re-
duce Anthropogenic Methane Emissions in the United States, Global
Change Division, Office of Air and Radiation, Washington, D.C., EPA
430-R-93-012.
USEPA (U.S. Environmental Protection Agency) (1993cj, Options for Reducing
Methane Emissions Internationally, Global Change Division, Office of
Air and Radiation, Washington D.C., EPA 430-R-93-006. 1993.
USEPA (U.S. Environmental Protection Agency) (1995J, Turning a Liability into
an Asset: A Landfill Gas-to-Energy Project Development Handbook,, Atmos-
pheric Pollution Prevention Division, Office of Air and Radiation, Washington
D.C., 1995. .
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Key GoveraiBent Policies
POLICIES
5. IDENTIFICATION AND ASSESSMENT OF KEY GOV-
ERNMENT POLICIES
THE government can play an important role in developing domestic landfill
gas resources. The policies that it formulates can promote or hinder the
recovery and utilization of this clean energy source. The purpose of this sec^
tion is to identify the key policies that will affect the development of landfill gas
recovery projects and to assess whether these policies pose barriers that must
be overcome or are potential leverage points to promote project development.
Although there are various policies that can encourage landfill gas recovery
projects, it is not possible to recommend a general set of policies for every cir-
cumstance. Rather, policies must be tailored individually to suit each country.
Landfill gas-to-energy projects may be developed by a project developer (or
team of developers) "alone, or project developer(s) in partnership with an elec-
tric or gas utility. In any case, before investing in a landfill gas-to-energy proj-
ect, project developers should investigate the laws and regulations in effect in
a particular country regarding independent power production, rights-of-way to
utility transmission lines or pipelines, and foreign participation in energy project
development. . . '
5.1 National Energy Pricing, Subsidies, and Taxes
The primary barrier to landfill gas recovery and use in both developing and de-
veloped countries is often artificially low energy prices. Conditions governing
electricity and natural gas prices, such as government energy policies and
subsidies for fossil fuels, can have an important effect on the economic viabil-
ity of landfill gas projects.
Energy subsidies can both help and harm landfill methane recovery and utili-
zation projects. Artificially low energy prices can pose a barrier to gas utiliza-
tion. If the prices of natural gas, oil, and coal are less than the cosj of landfill
gas, it will be difficult to make an economically viable case for the utilization of
recovered methane. Using market prices for natural resources would allow
landfill gas to compete fairly. However, if under market prices .landfill gas,is
still uncompetitive, the government may offer tax credits or other financial in-
centives to.encourage these projects because of their environmental benefits.
Energy taxes mus^also be assessed for their impact on gas recovery projects.
Energy taxes based on the carbon content of fuel would give recovered meth-
ane an advantage over coal and oil. Similarly, higher taxes on imported en-
ergy would allow domestic landfill gas to be more competitive. Depending on
a nation's energy goals, the tax structure may benefit one source of energy
over.another.
The key government policies dis-
cussed in this section include:
• Manorial, Energy-Pricing, Subsidies,
jandTaxes;-, /- . .
-• National Energy Supply Priorities; ]
* Environmental Goals;
* Financing; and -
• Technology Development
\
The steps to review policies and regu-
latory structures identify and eliminate
potential barriers, 'are presented, in
' Chapters. ',, , ' . "•
-------
Key Government Policies
I,\\lil III (,l nil i!
Exhibit 5-1: United States Federal Incentives for Landfill <3as lieqovery
• Internal Revenue Service (IRS) Section 29 Tax Credit: This is a federal tax
credit for producing energy from non-conventional sources, including landfills.
The value of the credit depends on a number of factors, including the domes-
tic oil price and the inflation rate. At current oil prices, the credit is approxi-
mately equivalent to $0.01 per kWh of electricity sold. This credit is due to be
renewed in 1996.
• Renewable Energy Production Incentive (REPI): This is an incentive es-
tablished by the US Department of Energy to provide incentives to renewable
- energy power projects owned by a state or local government or nonprofit
electric cooperative. The REPI is approximately worth up to 1.5 cents per
kWh produced from a renewable energy source (including landfill gas).
In the United States, federal, state, and local incentives are available for landfill
gas recovery projects. The most important incentives are the Internal Reve-
nue Service (IRS) Section 29 Tax Credit and the Department of Energy's Re-
newable Energy Production incentive (REPI). These are briefly described in
Exhibit 5-1.
5.2 National Energy Supply Priorities
The nation's energy supply goals will help determine the emphasis placed
upon landfill gas development. There are two main national energy concerns
that may effect the promotion of gas recovery: supply security and increasing
domestic demand.
Many nations are concerned about relying on foreign sources of energy. The
most notable example is reluctance of many nations to depend on oil and gas
from unstable regions. Because the price of natural resources has a great im-
pact on a nation's economy, and domestic sources of energy are considered to
be more stable, many nations share the common goal of increasing domestic
natural resources. Therefore, nations may choose to encourage landfill gas
recovery and utilization to expand their domestic supply of energy.
For nations where energy demand is growing rapidly and there are shortfalls in
supply, energy policy may include the development of gas recovery projects
from landfills and large open dumps to help meet the nation's energy needs.
For example, in many developing nations, the shortage of energy has slowed
down the process of electrification of towns and villages. The use of landfill
gas as a fuel to generate electricity could help to meet the goal of universal
electrification. Furthermore, the use of domestically produced energy will de-
crease the amount of foreign exchange required to import energy. Many de-
veloping countries and those with economies in transition face a shortage of
foreign exchange.
If landfill gas recovery and utilization is consistent with a nation's energy sup-
ply priorities, it may be easier to create policies to promote its development.
-------
Key Government Policies
POLICIES
For example, a nation may undertake a detailed resource assessment, or
make information on technologies, financing, and pertinent policies publicly
available.' If, however, a nation has ample quantities of domestically produced
energy, it may not be interested in developing landfill gas simply for the pur-
pose of expanding energy supplies. Rather, in such cases, environmental
goals may be more important. .• •
5.3 Environmental Goals
A nation's environmental goals will also play a large role in determining the im-
portance given to landfill gas recovery projects. Landfill gas recovery will be
encouraged in nations where environmental issues are placed highly on the
national agenda. The two main issues concerning environmental policy and
their impact on landfill gas recovery can be divided into a global concern and a
local/national concern,
As discussed above, reducing methane emissions addresses the global con-
cern regarding greenhouse gas emissions. In addition, both national and local
environment policy may call for the use of cleaner fuels to reduce local pollu-
tion. Landfill gas can be used to displace more polluting fuels, such as coal or
oil. Methane has several advantages over other fossil fuels. Emissions of
SOa, NOX, and particulates can be reduced through the displacement of coal
(and to a lesser degree oil) with landfill gas. Landfill gas combustion produces
no SOz or particulate emissions, and lower NOX emissions. Additionally, by
combusting the gas, VOC emissions are avoided as well. For these reasons,
nations may wish to pursue landfill gas energy recovery.
In .some, countries, the regulatory
-stfijctures may not address issues re-
•lated.to gas recovery. For example, in
Turkey, legislation had to be enacted to
allow ~aJocaf government to enter into
.an agreement to purchase landfill gas.,
5.4 Financing
In order to assess the impact of government investment polices on the financ-
ing of landfill gas recovery projects, one must look at both the overall invest-
ment regime and any financial regulations specifically concerning landfill
methane. When studying the overall regime, it is necessary to examine the
corporate tax structure, import and export taxes and quotas, and laws concern-
.ing foreign ownership. Low limits on foreign ownership and a high corporate
tax structure in comparison to other nations with potentiallandfill gas recovery
projects may discourage foreign investors. In cases in which the equipment
must be imported from abroad, high import duties will place a burden on both
domestic and foreign investors.
The government also may have financial regulations dealing specifically with
landfill gas. For example, low interest loans, tax credits, and- subsidies for
landfill gas recovery projects will ease the financial burden on the investor. As
mentioned above, the use of such incentives will depend on the overall energy
and environmental goals of the government.
-------
Key Government Policies
LUIII II13,1 !!!i;ii\i:\
5.5 Technology Development
Because some of the technologies associated with landfill gas recovery and
utilization may not be available in many nations, the government's policy to-
wards the development of technology is important to assess. There are vari-
ous ways in which the government can encourage the development of, tech-
nologies specific to landfill gas recovery projects: ,
*• Encourage foreign participation in landfill gas recovery projects. This
would allow foreign technology to be introduced without requiring do-
mestic capital.
+ Lower import duties, taxes, and restrictions on required technologies,
thereby reducing the cost of a gas recovery project.
*• Fund demonstration projects at domestic landfills to allow the industry
to see and understand new technologies.
* Organize study tours and training trips abroad for key personnel so
that they may learn from the experiences of other nations.
*• Assist the local industry in financing research and development into
recovery and utilization methods.
*• If technology is a strong barrier to the development of landfill gas re-
covery projects, government policies that encourage the transfer of
technology and the development of local technology can help pro-
mote these projects.
5.6 References
USEPA (U.S. Environmental Protection Agency). 1993. Anthropogenic Meth-
ane Emissions in the United States, Report to the Congress, prepared
. by the Global Change Division, Office of Air and Radiation, EPA,
' Washington, D.C.
USEPA (U.S. Environmental Protection Agency). 1994. International Anthro-
pogenic, Methane Emissions: Estimates for 1990, Report to the Con-
gress, prepared by the Office of Policy, Planning and Evaluation,
EPA, Washington, D.C.
USEPA (U.S. Environmental Protection Agency) (1993c), Options for Reducing
Methane Emissions Internationally, Global Change Division, Office of
Air and Radiation, Washington D.C., EPA 430-R-93-006. 1993.
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Key GowmMt Policies
POLICIES
USEPA (U.S. Environmental Protection Agency) (1995J, Tunning a Liability
into an Asset: A Landfill Gas-to-Energy Project Development Hand-
book,, Atmospheric Pollution Prevention Division, Office of Air and
. Radiation, Washington D.C., 1995.
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LANDFILL GUIDELINES
NEXT
6. NEXT STEPS
THIS section outlines the next steps for evaluating and implementing
landfill gas recovery projects in developing countries and countries with
economies in transition. The steps encompass a range of initiatives
which may be tailored to meet individual country objectives. These initiatives
are divided into the following five main areas:
*• Focus on the Most Promising Projects. This section presents next
steps for focusing on the most promising landfill gas recovery projects
in your country.
• Availability of Technology and Expertise. This section identifies
approaches for assessing whether the technology and expertise re-
quired for implementing landfill gas recovery projects are available.
*• Decisionmaker Motivation. This section presents approaches for
motivating decisionmakers to undertake landfill gas recovery projects.
+ Resolution of Regulatory Issues. This section lists regulatory is-
sues that should be examined to assess whether existing policies
hinder or further the goal of implementing landfill gas recovery proj-
ects-.
*• Funding. This section identifies possible sources of funding for these
next step activities.
Exhibit 6-1 summarizes how this chapter can be used to meet various objec-
tives. The first column lists several common objectives and the second col-
umn lists the chapter section to consult.
6.1 Focus on the Most Promising Projects
Although the site screening and preliminary assessments discussed above in
chapters 3 and 4 may show that a variety of promising projects exist, the avail-
able data may be insufficient for identifying the most promising project oppor-
tunities. In particular, if there are a large number of landfills or open dumps,
detailed site-specific information on all the sites may not have been collected
in the screening step (chapter 3) because of the level of resources that are re-
quired. This section provides guidance for collecting additional site-specific
information that will enable prefeasibility assessment activities to be focused
on the most promising opportunities. This initiative is only required when there
are a large number of potential sites that need to be evaluated.
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fetSteps
Exhibit 6-1: How to use this Chapter
Objective: , . Section to Consult:
To focus on. the most promising landfill
gas recovery projects.
To assemble the technology and exper-
tise needed to develop landfill gas re-
covery projects.
To motivate decisionmakers to invest in
and implement landfill gas recovery
projects.
To identify and eliminate regulatory
barriers.
To obtain funding for program devel-
opment or project implementation.
Section 6.1 - Focus on the Most
Promising Projects summarizes steps
for collecting additional data on candi-
date sites to better focus efforts.
Section 6.2 - Availability of Technol-
ogy and Expertise presents steps for
identifying and filling gaps in the avail-
ability of technology and expertise
needed to develop landfill gas recovery
projects.
Section 6.3 - Motivate Decisionmak-
ers presents options for .assisting deci-
sion makers and providing incentives.
Section 6.4 - Resolution of Regula-
tory Issues discusses those policies
and regulatory structures that should be
reviewed to identify potential barriers.
Section 6.5 - Funding presents can-
didate funding sources that can be con-
sulted.
To collect this information, a specific program activity should be defined with
data collection as its objective. Such an initiative was conducted in the United
States to identify the most promising landfill gas recovery opportunities (see
Exhibit 6-2). Section 6.5 describes funding sources that may be contacted to
obtain funding for these types of activity. A sample five step program plan for
collecting the necessary data is as follows:
Step 1: Define Minimum Information .
The first task is to define the minimum information that is required for each
landfill or open dump site. As discussed in Chapters, the primary factor that
makes a site a promising opportunity for gas recovery and use is the presence
of a large amount of organic waste under anaerobic conditions. Previous
analyses indicate landfills and open dumps with at least one million tons of or-
ganic waste can potentially support a recovery project. Therefore, it is recom-
mended that this information collection effort focus on obtaining the best pos-
sible information on two factors:
*• The number of tons of organic waste currently in place at the land-
fill/open dump; and ;
,•* The current annual disposal rate of organic waste (in tons) and the
likely time period over which this rate of disposal will continue .(e.g.,
50,000 tons per year for at least the next 10 years).
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LANDFILL GUIDELINES
Exhibit 6-2: US EPA Landfill Profiles Project
The US EPA Landfill Profiles Project was developed to identify the most promising
landfill gas recovery opportunities in the United States. This information is being
provided to landfill owners and operators, landfill gas-to-energy project developers,
electric and gas utility companies, and other potential project participants and part-
ners. Based on data collected primarily from files held by state, regional, and local
agencies responsible for facility permitting and regulation, a minimum data set was
developed from which a profile is created for each landfill. These profiles are-then
used to identify those landfills that may offer attractive energy development oppor-
tunities.
The profile for each landfill has the following information:
• Landfill location and operating status;
• Waste quantity;
• , Existing gas collection and control; and
• Contact information (i.e., landfill owner/operator).
Based on this information, the gas recovery potential and associated environmental
and energy benefits from a potential project are estimated. These profiles are cur-
rently available from the US EPA for over 450 landfills in 24 states.
Additional information on energy needs surrounding the landfill/open dump
may also be collected if the information is readily available.
Step 2: Define the Data Collection Method
The purpose of this second step is to define how the data will be collected.
Options may include: working with local waste management officials to review
waste disposal-records; measuring the current waste disposal rate and waste
composition by counting disposal trucks and examining their contents for a
period of time; or surveying the landfills/open dumps to estimate their volumes.
The techniques to be used to collect the data should be selected based on the
type of information most likely to be available and the resources available.for
collecting the data. It may be appropriate to test several different data collec-
tion methods before settling on the recommended approach.
Step 3: Develop a Data Handling System
The purpose of this third step is to develop a system for handling the landfill
data. A database program can be used to organize the data so the subse-
quent data analysis and evaluation is facilitated. Data handling and quality
control procedures should be developed as part of this step, including check-
ing the accuracy of both the data collection and data entry.activities.
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M Steps
Step 4: Collect the Data
In this step the program personnel collect the data according to the method-
defined in step 2. The data are entered into the data system developed' in
step 3. '. " .'--."
Step 5: Analysis and Recommendations
'Based on the data collected, the gas recovery potential for each landfill is es-'
timated (Chapter 4 presents equations for estimating gas recovery). The most
promising project opportunities will be those that produce the most gas in ar-
eas that can use the energy. A list of the most attractive projects can be cre-
ated, along with the information available on each.
Once them most promising opportunities are identified, this information can be
. disseminated to potential project developers to promote the projects (see sec-
tion 6.3). .<,„'.' \
6.2 Availability of Technology and Expertise
Specific technical expertise is required to plan and implement landfill methane
recovery and utilization projects. Additionally, access to and experience with
specialized drilling and gas monitoring equipment are needed. The absence of
the necessary expertise and equipment can be an important barrier to the im-
plementation of these projects. This issue may be particularly important in de-
. veloping countries and countries with economies in transition because'techni-
cal and labor resources may not be available to construct and operate the
/ projects. . - '-.. •
1 . 1
Once it has'been determined that promising opportunities exist; the availability
of the necessary expertise and equipment should be conducted. h Ideally, one
or more local experts with landfill gas recovery expertise should be identified.
For example, a request for qualifications can be issued to identify local or re-
gional individuals and organizations with the necessary expertise.
In some cases a landfill gas expert may not exist because landfill gas'recovery
is relatively uncommon in developing countries and countries with economies
in transition. In this circumstance, a program can be organized to train local
personnel in the detailed aspects of landfill gas recovery and Utilization. Train-
ing programs could include visits to existing projects in other countries as well
as inviting experts from other countries to give seminars.
To augment local expertise, nations may wish to contact foreign cbmpanies
with the expertise necessary to complete the project. Foreign involvement
may take any of a variety of forms, Including the build-operate-transfer (BOT)
financing model. The BOT is currently being used for various infrastructure
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LMDFILL GUIDELINES
projects in developing countries and is applicable for landfill gas development
projects as well. Such arrangements with foreign companies allow technology
to be introduced without requiring the use of domestic capital. For countries
that have no experience with landfill gas recovery, this may be an attractive
short-term option. Appendix A lists selected U.S. landfill gas development ex-
perts available to provide training or participate in project development.
6.3 Motivate Decisionmakers
V,
Because landfill gas recovery and utilization projects are" relatively new in
many countries, steps to motivate decisionmakers may be needed to get
promising projects built. In addition to financial incentives, several targeted
initiatives have proven effective for raising the awareness regarding the bene-
fits of such projects as well as creating the nucleus of interested parties
needed to create a viable landfill gas recovery industry. Three main initiatives
are recommended to provide the information needed to motivate decisionmak-
ers: outreach activities, demonstration projects, and information clearing-
houses. ,
6.3.1 Outreach Activities
Because the concept of recovering methane from landfills may be unfamiliar,
outreach activities may be required to educate and motivate the community
and its leaders on the technology and benefits of landfill gas recovery. Out-
reach should be targeted to the following parties:
• Landfill owners and operators, who may not recognize the resource
they have; .
• Potential users of landfill gas, such as utilities or nearby industrial,
commercial, or large residential facilities who may not recognize the
opportunity to obtain low cost energy;
+• Energy planners, who may not recognize how energy from landfill
gas can contribute to meeting local energy needs; arid
• Environmental and community groups, who may not be aware of
the environmental and safety benefits of landfill gas recovery projects.
Outreach activities to educate and motivate these parties must be defined in
terms of the message that is being delivered and the mechanism that is used
to deliver the message. The message must include the information needed to
educate and motivate each target group. The information must be presented
in a way that each target group can understand, and must be delivered in a
manner that ensures that each target group receives and assimilates the in-
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UWIDHUL METHANE
'
Exhibit 6-3: The US EPA Landfill Methane Outreach Program
EPA's Landfill Methane Outreach Program encourages the
use of landfill gas as an energy resource. EPA enlists the sup-
port of landfill owners and operators, electric utilities, state'
agencies, and project developers to reduce methane emissions
from landfills through the development of profitable energy re-
covery projects. -
The Landfill Methane Outreach Program contains three important components: State
Ally, Utility Ally, and Industry Ally programs. EPA establishes separate alliances
with state agencies, utilities (including investor-owned, municipal and other public
power utilities, and cooperatives), and members of the landfill gas development
community (including developers, engineers, equipment vendors, and others) through
a Memorandum of Understanding (MOU). By signing the MOU, each Ally
acknowledges a shared commitment to the promotion of landfill gas-to-energy
recovery at solid waste landfills, recognizes that the widespread use of landfill gas as
an energy resource will reduce emissions of methane and other air emissions, and
commits to certain activities to enhance development of this resource. In return, EPA
commits to provide landfill gas-to-energy project assistance and public recognition of
Allies' participation in the Program.
formation. Because each target group is different, separate outreach strate-
gies may be needed for each.
For example, outreach to national planners and decisionmakers may utilize
existing decisionmaking processes. Alternatively, outreach to local officials
responsible for landfill operations may require seminars, training sessions, or
technical guidebooks to inform them of the landfill gas recovery opportunities.
Options for reaching potential foreign partners may include conducting studies
through international funding agencies (discussed below in section 6.5) or issu-
ing requests for proposals for specific projects or studies. Exhibit 6-3 summa-
rizes the outreach program currently being used in the.United States to reach
these various groups.
6.3.2 Demonstration Projects
Sometimes information is not enough to.promote the use of a new technology.
Users may Want to see the technology in use. Demonstration projects are an
effective tool to test and promote the effectiveness of landfill gas recovery
projects, especially in developing countries and countries with economies in
transition where landfill gas recovery is uncommon. By providing analysis,
technical support, and funding, the government can facilitate landfill gas re-
covery projects to serve as examples for the industry as a whole.
In selecting projects to support and promote, several criteria should be consid-
ered, including: choice of technology, time frame for the project, type of gov-
ernment assistance required, and how projects will promote the government's
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LANDFILL GUIDELINES
goals. In most cases, after a specific project is selected, technical and finan-
cial analyses will be required to evaluate the technical effectiveness of the
.technology and its costs and benefits.
Upon completion of the demonstration project, the results of the project must
be summarized, including both positive and negative aspects and recommen-
dations for improvement. This information must be disseminated to promote
the technology. The demonstration site itself can then be used for training and
education purposes.
6.3.3 Information Clearinghouses
To provide owners, developers, regulators, and other .stakeholders with com-
prehensive information concerning all aspects of landfill gas recovery technol-
ogy, finance, and economic development, a central information clearinghouse
could be established. Information clearinghouses provide a central location for
information where current environmental, technical, financial, and business
contact information is available.
The clearinghouse can function at the national level of the country and can in-
volve professionals from leading research and development laboratories^ edu-
cational institutes, industries, and other organizations. The clearinghouse can
strengthen the existing infrastructure of national and regional bodies involved
in the training, information dissemination and implementation of the programs
in energy efficient technology. It can also facilitate training programs and in-
teractions with local and international experts.
The clearinghouse can also assist in developing the technical capabilities of
. non-governmental organizations, consultants, industry associations, and any
othergroups engaged in the promotion of energy efficiency activities. This can
be done by conducting regular training programs (both in the field and in the
classroom), thereby exposing the participants to the latest tools and tech-
niques.
At a minimum, the information clearinghouse should contain information in the
following areas:
• current technologies and new research;
• environmental regulatory requirements, siting and zoning require-
ments (if any);
• applicable energy purchase rules (if any);
• - international and domestic capital/funding sources; and
•_ government energy development policies.
An automated index of all materials could be made available electronically
through a bulletin board, or as a "fax-back" system. A collection of hardcopy
materials could also be assembled for use by anyone interested in landfill gas
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Exhibit 6-4: Polish Coalbed Methane Clearinghouse
The Polish Coalbed Methane Clearinghouse, established in January, 1991, is
part of the Polish Foundation for Energy Efficiency (FEWE). The clearinghouse
promotes coalbed methane recovery through a series of activities including:
• providing consulting services to public- and private-sector clients (e.g.,
assisting contractors with pre-feasibility studies on directional drilling and gob
gas recovery);
• developing and evaluating demonstration projects;
• hosting conferences, workshops, and technical seminars on a variety of
coalbed methane .topics including business, finance, technical, and
environmental issues (e.g., the Silesian International Conference on Coalbed
Methane Utilization, 1994); and
• publishing journals, brochures, and newsletters (e.g.," the Silesian Coalbed
Methane Newsletter).
recovery. An example of a typical clearinghouse is the Polish Coalbed Meth-
ane Clearinghouse, a brief summary of which is presented in Exhibit 6-4.
6.4 Review Regulatory Framework
Regulatory barriers are key obstacles, facing potential landfill gas recovery
projects. Landfill gas-to-energy projects must comply with local, state, and na-
tional regulatory and permitting requirements, most of which address environ-
mental, safety; and zoning concerns. Artificially low energy prices can pose a
barrier to landfill gas utilization if the prices of alternative fuels are less than
the cost of landfill gas.
In many developing countries and countries with economies in transition the
regulatory frameworks do not address issues related to landfill gas recovery.
This is not unusual, given that landfilling itself is a relatively new waste man-
agement practice in these countries. In some cases legislation must be en-
acted before contracts can be signed to begin a landfill gas recovery project.
For example, in Turkey, legislation had to be passed for a local government to
be able to enter into an agreement for a landfill gas project. Moreover; in most
' developing countries and countries with economies in transition, all major
power producers are or have been State-owned. Privatization of the energy
supply is only recently occurring in many countries; therefore, the concept of
an independent private power developer may be unfamiliar (Watts, ,1995).
The .following is recommended to review the regulatory framework for landfill
gas recovery and utilization: identify and evaluate existing regulations; de-
velop feasible,options for removing barriers that will not compromise other
regulatory objectives; and implement the necessary changes. ,
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LANDFILL GUIDELINES
6.4.r Evaluate Existing Regulations
To evaluate the existing situation, the relevant laws, rules, regulations, and
policies must first be identified and summarized by conducting literature re-
views and contacting appropriate regulatory and legislative experts. In addi-
tion, attention must be paid to institutional arrangements. The following steps
should be undertaken:
• Step 1: Identify Decisionmakers. The purpose of this step is to
identify the key decisionmakers involved in the approval of landfill gas
projects. These decisionmakers may include local, provincial, or na-
tional regulatory bodies that are involved in waste management, land
use, zoning, energy production, financing, and equipment purchas-
ing/importing.
4- Step 2: Identify Decision Criteria. The purpose of this step is to
identify the decision criteria used by the key decisionmakers and the
underlying objectives they are trying to achieve. This information
would be obtained principally through contacts with the relevant
agencies and institutions in the country.
• Step 3: Identify Typical Project Development Path. The purpose
of this step is to describe the typical path that a project would take in
order to be developed. A concise listing of the major steps in getting
the project defined, approved, financed, and built should be devel-
oped based on discussions with the relevant institutions involved.
This summary of the project development path could then be used to
promote the implementation of landfill gas recovery projects.
The results of the above steps should be compiled in a concise summary re-
port highlighting the policies and current practices affecting gas recovery and
the options available to the government to reduce the barriers to landfill gas
recovery and utilization. Any policies or requirements that significantly add to
the cost of the project, create uncertainty in the viability of the project, or delay
its implementation should be identified as major barriers requiring further
analysis.
6.4.2 Develop Feasible Options
The purpose of this section is to develop available options for overcoming any
major barriers identified above. The options selected will be those that most
effectively promote the government's development objectives and are feasible
in terms of political acceptance, effectiveness, secondary impacts, costs, and
legality.
An Evaluation Team consisting of the decisionmakers and participants in-
volved in landfill gas recovery and utilization can be established as a working
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group to guide this process. This group would be charged with ensuring that
the recommended options incorporate the views of the representative stake-
holders in each area. At a minimum, the Evaluation Team should include the
following groups:
+ Regulatory Community: municipal agencies, local government
regulators, public utility commissions, environmental control agen-
cies, and others; , ."•••'•""
+ Owner, Operator, and Developer Community: landfill owners, op:
erators, recognized local, national, or international landfill gas recov^
ery project developers; and -»•
•+• / Financial Community: local, national, or international grant/loan
agencies and venture capitalists.
The assessment of available options will involve considerable debate on which
options can be implemented without compromising other pressing national pri-
orities. As such, proposed regulatory changes must be viewed in the context of
their impact on other national priorities. •
6.4.3 Implement Options
Using the input and recommendations of the Evaluation Team, the options or
optimum mix of options can be implemented. The implementation strategy will
depend on the type of option to be implemented. Implementation strategy op-.
tions include, among others: •
• legislative/regulatory actions (environmental, safety, zoning, import
restrictions); '-,.••
-> -administrative and executive actions (committees, meetings, confer-
ences); -
• inter-governmental liaison actions (local, municipal, national, inter-
national); and
• outreach (training programs, demonstration projects, etc.)
The above options must be evaluated on an ongoing basis in terms of their
ability to promote promising projects/ A structured program of data collection
for monitoring the progress of the objectives may be .developed in this regard.
Once data has been collected, reviewed, and analyzed, an evaluation of the
impact of the option can be made and the established objectives can be re-
tained,or modified as appropriate.
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LADFILL GUIDELINES
6.5 Obtain Project Funding
Each of the activities discussed above requires resources, as does the imple-
mentation of individual landfill gas recovery projects. This section lists steps
for obtaining assistance from international funding agencies for these initia-
tives. The key steps are to review the type's of assistance available, identify
funding requirements, and select specific source(s) of funding. Once the ap-
propriate source of funding has been identified, a project proposal can then be
prepared in accordance with the specific criteria of the funding agency.
The first source of funding that coun-
tries should consider is forming a
partnership with local and foreign pri-
vate sector project developers. This
method Is often the quickest and
cheapest method of obtaining funding.
However, such funding is only avail-
able for projects that are clearly profit-
able. For projects with a lower eco-
nomic rate of return, funding may be
available from international agencies.
6.5; 1 Review Types of Assistance A vailable
The main types of assistance offered by international funding agencies are
grants, loans, and other packages (including loan guarantees, venture capital
funds, and business consulting assistance). These types of assistance are
available to both governments and businesses. .In some cases, the govern-
ment may reallocate the funds to eligible businesses. The funds provided may
cover costs to conduct feasibility assessments, implement demonstration proj-
ects, or acquire equipment and technical expertise. The main types of finan-
cial assistance are further described below:
4- Grants. These are direct monetary payments for specific projects
that do not need to be reimbursed. For example, grants may be used
to develop a demonstration project or to fund a training program to
enhance local expertise.
* Loans. These are made by the funding agencies directly to the eli-
gible parties and must be paid back in a specified period of time.
Typical recipients of such loans may be government agencies (for di-
rect use or reallocation to businesses); or businesses in manufactur-
ing, industrial export/import services, or technology development.
*• Other. Loan guarantees; venture capital funds, and business consult-
ing services are some of the other types of assistance that are offered
by these institutions. These are described below:
• Loan Guarantees are commitments to repay the lender if the
borrower defaults. In these cases, a funding agency guaran-
tees its proportionate share of loss in accordance with the
percentage of the guarantee. Loan guarantees are impor-
tant to mitigate risk at projects that have a higher degree of
risk.
• Venture Capital Funds offer loans or equity to support the
start-up of new businesses or expansion of existing busi-
nesses. Funding agencies may appropriate funds or gener-
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Next Step
ate funds from private investors by selling shares in the
company.
Business Consulting Services include technical, managerial,
and financial consulting and support services. Typical
sources of such assistance are governments, multilateral
and bilateral agencies, and business- and research-related
entities. Technical services may range from providing tech-
/ nology transfer to providing engineering assistance to offer-
ing use of research and development facilities. Managerial
consulting includes offering seminars, workshops, and con-
sultations on improving project operations. Financial consult-
ing may involve assistance in creating packages to finance a
project or group of projects. =
6.5.2 Identify Funding Requirements
The type of funding required is driven primarily by two factors: the objectives
of the program, and the country's resource allocation. These are briefly de-
scribed below.
*• Program Objectives. Government programs aimed at exploring the
opportunities for landfill gas recovery (e.g., by conducting feasibility
studies) would most likely seek grants or other concessional funds.
On the other hand, businesses and government agencies .pursuing
profitable landfill gas recovery projects are eligible for loans, loan
guarantees, and venture capital funding.
4- Resource Allocation. The extent of economic development and re-
source endowments for a given country will determine its financial re-
quirements. Countries with a low GNP per capita will typically require
grants to undertake landfill gas recovery projects. Some countries
may face difficulty when securing loans, if they have creditworthiness
problems. ,
.Once the funding requirements have been assessed, the next step is to iden-
tify the funding available.
6.5.3 Select Sources of Funding
' ' ' • X
There are a wealth of possible funding sources which provide assistance that
can be used for landfill gas recovery projects. These include multilateral insti-
tutions, regional development banks, US. government agency programs,
country- and region-specific enterprise funds, and other institutions. Exhibit 6-
5 lists funding sources most applicable to landfill gas recovery projects, and
summarizes the types of funding offered by each. Summary profiles of the
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Next Steps
funding agencies are presented in Appendix B. The main categories of fund-
ing sources are briefly described as follows:
*• Private Sector. Funding may be available from private sector asso-
ciations or firms interested in landfill gas recovery. Such funding is
most commonly available for projects with a high expected rates of
return and usually takes the form of a profit-sharing partnership. This
method is often the quickest and cheapest method of obtaining proj-
ect funding!
*• World Bank Institutions. The World Bank institutions fund environ-
mental and energy infrastructure projects in developing countries for
which the procurement of technical assistance, civil works, materials
and equipment, are necessary. These agencies provide grants and
• loans to government ministries and businesses, which implement
projects under local procurement and contracting regulations. Ex-
amples of such institutions include the World Bank itself (also known
as the International Bank for Reconstruction and Development), In-
ternational Finance Corporation (IFC), and the Global Environment
Facility (GEF).
• Multilateral Development Banks. These are international lending
institutions owned by member countries that promote economic and
social development in developing member nations by providing loans,
.technical assistance, capital investment, and help with economic de-
velopment plans. Examples of such institutions include the Asian
Development Bank (ADB), the European Bank for Reconstruction and
Development (EBRD), and the Inter-American Development Bank
(IDE).
*• U.S. Government Agency Programs. There are several U.S. gov-
ernment agencies that promote development by funding feasibility
studies, training programs, and seminars in developing countries. In
most cases, these agencies/programs support projects that offer ex-
port or investment potential for U.S. enterprises. Examples of such
agencies/programs include the Trade Development Agency (TDA)
and the Overseas Private Investment Corporation (OPIC).
• U.S. Initiative on Joint Implementation (USIJI): The USIJI is a vol-
untary private program that provides recognition and select technical
assistance to U.S. companies implementing greenhouse gas reduc-
tion projects in other countries. While no funding is available through
the USIJI, projects that meet the USIJI criteria will be likely to attract
U.S. investors solely on the recognition of USIJI acceptance.
For more information on the types of funding available and sources of funding
for landfill gas recovery projects contact:
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U.S. Environmental Protection Agency
Methane Branch
Mail Code 6202 J
401 M Street, S.W.
Washington D.C. 20460 ,
Tel: 202/233-9768
Fax: 202/233-9569
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56
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NEXT
6.6 References
Watts., Robert A., (1995), Profitable Market Opportunities for Pollution
Prevention - International Market Opportunities, Presentation for US
EPA Atmospheric Pollution Prevention Division Forum, April 10,1995,
. Washington D.C. - -. .....'••
-------
-------
APPENDIX A: DIRECTORY OF SELECT LANDFILL GAS RECOVERY EXPERTS IN THE U.S.
NOTE: Mention of company names in this document does not constitute the U.S. EPA's endorsement.
-------
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APPENDIX B: DIRECTORY OF POSSIBLE FUNDING
AGENCIES
Profiles of the following funding agencies are provided:
World Bank Agencies/Programs .
International Bank of Reconstruction and Development (IBRD)
Global Environment Facility (GEF) -
International Finance Corporation (IFC)
Solar Initiative
' •
Multilateral Development Banks
European Bank For Reconstruction and Development (EBRD)
1 Inter-American Development Bank (1DB)
Asian Development Bank (ADB)
Africa Development Bank (AfDB)
U.S. Government Agency Programs
Trade Development Agency (IDA)
United States Agency For International Development (USAID)
Overseas Private Investment Corporation (OPIC)
Export-Import Bank (EXIMBANK)
U.S. Initiative on Joint Implementation
-------
Appendix B
LAPFUL GUIDELINES
The World Bank, through its affiliates
IBRD, IDA, IFC, and MIGA, provides
financial assistance to developing
countries for social and economic de-
velopment projects.
International Bank of Reconstruction and Development
(IBRD)
Overview: The World Bank, established in 1945, comprises the International
Bank for Reconstruction and Development (IBRD) and its affiliates: the
International Development Agency, the International Finance Corporation
(IFC), and the Multilateral Investment Guarantee Agency (MIGA). 155
member countries have subscribed capital to the Bank enabling it to finance its
lending operations primarily from its own borrowing in capital markets.
However, a substantial portion of the IBRD's resources also come from the
retained earnings and the flow of repayment.
The World Bank finances capital infrastructure, such as roads and railways,
telecommunications, and port and power facilities. However, the Bank's
development strategy emphasizes investments that can directly affect the well-
being of poor people in developing countries by making them more productive
and integrating them as active partners in the development process. The
Bank's efforts to reduce poverty include investments to improve education,
ensure environmental sustainability, expand economic opportunities,
strengthen population-planning, health and nutrition services, and develop the
1 private sector. •
Criteria: The IBRD's charter requires that it: (1) lend for productive purposes
to stimulate economic growth in developing countries; (2) pay due regard to
the prospects of repayments; (3) make loans to governments or with
guarantees from the government; (4) not restrict procurement to purchases
from any particular member country; and (5) make lending decisions on
economic considerations alone.
The IDA provides assistance to poorer developing countries, i.e., those with an
annual per capita gross domestic product of $580 or less, expressed in 1989
U.S. dollars. Terms of the IDA loans are less stringent than those of "regular"
IBRD loans.
The IFC is legally and financially a separate entity. Its purpose is to promote
growth in the private sector of the less developed country economies, largely
by taking equity positions in projects (see profile).
The MIGA encourages equity investment and other direct investment through
the mitigation of non-commercial investment barriers. MIGA must: (1) offer
investors guarantees against non-commercial risks; (2) advise developing
member countries on policies, programs, and procedures related to foreign
investment; and (3) sponsor a dialogue between the international business
community and host governments on investment issues.
Contact Information: For further information, contact
The World Bank
1818 H Street, N.W.
Washington D.C. 20433 USA
Tel: 202/477-1234
-------
Appendix B
Global Environment Facility (GEF)
Overview: The Global Environment Facility (GEF), an organization established
by the United Nations Development Program (UNDP), the United Nations
Environment Program (UNEP), and the World Bank, offers grants and
concessional funds to developing countries for projects that are beneficial to
the global environment. GEF funds are used to cover the difference between
the"costs of a project undertaken with global environmental objectives in mind,
and the costs of an alternative project that the country would have
implemented in the absence of global environmental concerns. GEF
resources are available to projects that address the following four areas:
climate change, loss of biological diversity, pollution of international waters,
and depletion of the ozone layers. Listed below are several types of projects
that the GEF may fund.
• Technical assistance, projects focused on human development,
capacity building, training, and information sharing;
• Feasibility studies for investment projects and complex technical
assistance projects;
• Small grants for community-based grassroots organizations and non-
governmental organizations in developing nations; and
• Grants to investment projects to fund the incremental costs of
achieving global environmental benefits.
Criteria: The GEF has established general criteria for all areas in which it may
fund projects, as well as criteria specific to each of the four areas. The general
points which are assessed include:
• Potential to benefit the global environment;
• Contribution to human welfare and sustainable development;
• Financability of project without GEF support;
'• Scientific and technical basis of project; ,
• Plans for evaluation and dissemination of results; •
• Host nation political, legal, economic, and administrative conditions
under which the project must be executed
• .Development of human and institutional resources;
• Plans for post-GEF project continuation; and
• Involvement of local communities.
Contact Information: For further information, contact the GEF at:
GEF Administrator, Environment Department
World Bank
. ' 1818 H Street, N.W.
Washington, DC 20433
Tel.: 202/473-1053
' . . - • Fax: 202/477-0551
GEF wilt fund only those projects
which cannot pay, for themselves, I.e.,
whose project costs exceed project
'revenues. Therefore, GEF funding is
ideal for conducting feasibility assess-
'-ments.
-------
Appendix I!
LANDFILL GUIDELINES
IFC will provide loans and other finan-
cial Instalments (equity investments,
guarant- ees, etc.) to the private sector
only. The minimum support provided
by IFC is $10 million.
International Finance Corporation (IFC)
Overview: The International Finance Corporation (IFC) was established in
1956 to help strengthen the private sector in developing countries. IFC lends
directly to the private sector. IFC aids private sector development by providing
long-term loans, equity investments, guarantees and "stand-by financing", risk
management and "quasi-equity instruments", such as subordinated loans,
preferred stock, and income notes. IFC advisory services .and technical
assistance help private business increase their chances of success. Other
relevant information on IFC is as follows:
• Source of funds: About 80% is borrowed in the international financial
markets through public bond issues private placements and 20% is
borrowed from IBRD;
• Lending. Each year, IFC approves about $4 billion in financing,
including syndications and underwriting for private-sector projects in
developing countries. The minimum amount of IFC support available
is $10 million; and -
• Loan Conditions: Interest rate on IFC loans and financing are based
on market rates, which vary between countries and projects; maturity
on loans ranges from 3 to 13 years.
Criteria: Project proposals will be assessed on the basis of the following
information:
• Project Description: brief description of the project and current status;
• Sponsorship and Management history and business of sponsors,
management arrangements, and technical arrangements;
• Markets and Sales: market orientation (export/domestic), production
volumes and sales objectives, potential users and distribution
channels, and relevant tariffs and protective measures;
• Technical Feasibility: equipment availability, labor and infrastructure
facilities, resource accessibility, and potential environmental issues;
• Financing Requirements: breakdown of project costs, proposed
financial plan, type of assistance sought, and expected profitability;
• Government Regulations: government controls, exchange controls,
tax regulations, export/import licences, and price controls applicable
to the project.
Contact Information: For further information, contact the IFC at:
International Finance Corporation
18501 (Eye) Street, N.W.
Washington, D.C. 20433
Tel.: 202/477-1234
Fax: 202/477-6391
-------
Solar Initiative (A World Bank Program)
Overview: The Solar Initiative is a World Bank program aimed at providing
assistance to energy industry, research, and non-governmental organization
(NGO) communities in developing countries to promote the use of solar and
other renewable energy technologies. The two main thrusts of, the initiative
include: 1) the preparation and finance of commercial and near commercial
applications; and 2) facilitation of international research, development, and
demonstration. .
The World Bank's role is to facilitate and finance projects under the Solar
Initiative by leveraging its resources. Funding under the Solar Initiative is,
provided thorough various divisions of the World Bank including the Global
Environmental Facility (GEF) and International Finance Corporation (IFC). The
relevant parties in the host country (e.g., energy sector operating,divisions)
play a key role in project identification and preparation efforts to reach the
investment stage.
Criteria: The Solar Initiative provides assistance solely for renewable energy
applications that are important for developing countries, but for various
reasons have not received significant attention in the,regular lending program.
These include: solar, wind, and biornass energy applications. Large-scale
hydroelectric projects, however, are excluded as these are a long established
application. Specific examples of projects include: . • / •
• Biomass: industrial scale methane generation from animal and
distillery wastes; ~ .
•' Wind installation of wind farms and other large grid-connected power
applications; and ;
• Solar, use of photovoltaic (PV) power for rural applications such as
lighting, water pumping, battery charging, and vaccine refrigeration.
Contact Information: For further information, contact:
Energy Practice Manager
The Solar Initiative ' • . •
• The World Bank Group • '
Washington, D.C. 20433
Tel.: 202/477-1234
Fax: 202/477-6391
- Tfte.Sofer Initiative promotes the ap-
plication of solar, wind, and biomass
energy by providing assistance io en-
'ergy industry, research, and'NGO
. communities in developing countries.
-------
Appendix B
LAPPILLfiODELINES
EBRD provides bans, equity, and
guarantees to countries of central and
eastern Europe that are developing
Into market-based economies.
European Bank for Reconstruction and Development
(EBRD)
Overview: The European Bank for Reconstruction and Development (EBRD)
is a multinational institution set up with the specific aim of assisting countries
of central and eastern Europe to develop into market-oriented economies. The
EBRD provides financial assistance to both the private and public sector. The
types of financial instruments offered include: loans; equity and qua'si-equity
investments; and guarantees. Other information about EBRD financing:
• Minimum Loan Amount The minimum lending requirement for the
Bank is ECU 5 million ($6.5 million, as of November 1995).
• Interest Rates: Interest rates are set at a margin over a market
benchmark (usually LIBOR - London Interbank Offered Rate). Loans
can be either variable rate or fixed rate;
• Loan Term: Maturities generally range from 5 to 10 years, depending
on the individual operation requirements; and
• Currency. The EBRD lends in hard currencies - US dollar, the
Deutschmark, and the ECU.
Criteria: The first step in the approval process is the Concept Clearance
stage. Prospective borrowers approach the banking staff to advise on
procedure and potential structuring options. Based on information on the
scope of the project, financing requirements, and technical and
economic/commercial aspects, the Bank will determine whether the project fits
within its guidelines and strategies. --
If the project is cleared, a Mandate Letter, defining the legal requirements for
entering to a relationship with the Bank, is signed and an Operation Leader is
assigned as the key Bank contact for the project. The next stage is the Initial
Review which requires detailed project information, including:
• detailed description of the enterprise, project, and key personnel;
• financial statements audited to international standards;
• financial projections about the viability of the project;
• regulations applicable to the project; and
• " assessment of the environmental impact of the project.
Once the project has cleared Initial Review, it has to pass Final Review by the
Bank's Operation Committee. This evaluation process covers financial, legal,
economic, technical, and environmental issues.
Contact Information: For further information, contact:
EBRD, One Exchange Square
London EC2A2EH, United Kingdom
Tel: 44 71 338-6282
Fax: 4471338-6102
-------
Immftmmm
Inter-American Development Bank (1DB)
Overview: The Inter-American Development Bank (IDB) is a multilateral
development bank created to help accelerate the-economic and social
development of its member countries in Latin America and the Caribbean. The,
JOB provides the following types of assistance to its member countries: loans
•and other financial instruments; concessional funds for needier countries
(through, its Fund of Special Operations); and technical assistance to
strengthen regional development institutions and help identify and implement
investment projects. Other relevant information about the IDB is as follows:
• Extent of Financing: The IDB finances a certain percentage of project
costs, ranging from 50% for more economically developed countries
to 80% for poorer countries.
• Loan Conditions: Interest rates on IDB loans and financing are based
on market rates, which vary between countries and projects; maturity
on loans ranges from 15 to 25 years.
• Capital Resources: The IDB has a capitalization of over $100 billion
that can support a level of annual lending of over $7 billion.
Typical borrowers of IDB funds include governments, ministries, or an agency1
or utility under a ministry. The borrower makes the key decisions on awarding
contracts for engineering, design, project management, works construction,
and purchase of capital goods. While governments and related agencies are
the primary recipients of IDB funds,,private sector enterprises too are eligible
for some forms of assistance.
, The IDB has an Environmental Division that monitors the environmental
.component of the Bank's operations and develops loans and technical
assistance packages specifically directed towards protecting the environment.
Criteria: The following analyses are conducted to evaluate project proposals:
• Institutional: borrower's administrative and operational capability to
carry out the project;
' • Technical: technical equipment, labor, and infrastructure required;
• Socio-economic: social and economic costs and benefits, impacts on
trade, income distribution, production, and employment; and
,• Environmental: environmental impacts of the project.
Contact Information: For further information, contact:
Inter-American Development Bank
1300 New York Avenue, N.W.
Washington D.C. 20577 U.S.A
Tel: 202/623-1000
Fax: 202/623-3096
IDB provides bans to governments
and private sector agencies for social
and economic development projects in'
Latin America and the Caribbean,
Grants are available for poorer mem-
: her countries.
-------
Appendix 6
LADFILLGODEL1ES
ADB provides bans for the economic
and social advancement of developing
member countries. Grants are avail-
dote through special funds established
by the ADB (e.g,, ADF, ALGAS).
Asian Development Bank (ADB)
Overview: Established in 1966, the Asian Development Bank (ADB) is a
multilateral development bank whose primary objective is poverty alleviation
through sustainable economic growth in Asia. The Bank has 35 developing
member countries, of which China, India, arid Indonesia are the largest
recipients. ADB assistance is channeled into the following sectors: agriculture
and agro-industry; energy; industry and non-fuel minerals; financial services;
transport and telecommunications; social infrastructure (e.g., education,
health); and urban development.
Typical borrowers of ADB funds include governments, ministries, or an agency
or utility under a ministry. The borrower makes the key decisions on awarding
contracts for engineering, design, project management, works construction,
and purchase of capital goods. While governments and related agencies are
the primary recipients of ADB funds, private sector enterprises too are eligible
for some forms of assistance. For private sector support, a project must play a
catalytic role in the development of the country. For such projects, ADB
assistance is limited to 50%- of project costs or up to $50 million, whichever is
less. The minimum loan is $5 million.
The financial resources of the Bank consist of ordinary capital resources
comprising subscribed capital from member countries, reserves and funds
raised through borrowings; and Special Funds, including the Asian
Development Fund, which is made up of contributions from member countries
and other accumulated income; and the ALGAS fund, which.is designed to
support GHG mitigation activities in developing member countries.
Criteria: The projects or programs are analyzed in terms of:
• the borrower's capacity to finance and administer the project;
• its economic, technical, and environmental feasibility; and
• its social and economic benefits to the recipient country.
Contact Information: For further information, contact:
Asian Development Bank
Office of the Environment and Social Development
,6 ADB Avenue, 1501 Mandaluyong City
0401 Metro Manila, Philippines
Tel.: 632/813-2148
Fax: 632/741-7961
-------
Appendix B
African Development Bank (AfDB)
Overview: The African Development Bank (AfdB) is a multilateral development
bank whose primary objective is to finance economic and social development
in African countries. It achieves this objective through the provision of: loans
and other financial instruments; technical assistance and institutional support;
and mobilization of external resources for investment in Africa. Grants and
other concessional funds are allocated for the poorest countries through the
African Development Fund (ADF) and the Nigeria Trust Fund (NTF). The main
criteria for defining the poor countries is GNP per capita. The loan terms are
as follows: '
Terms
Interest Rate
Service Charge
Repayment Period
,Af DB
Variable'
1%
20 years
ADF ,
None
• 0.75%
50 years
NTF ,
4%
0.75%
25 years
t The interest rate is reviewed every 6 months. As of June 30, 1 995, the rate was 7.42%
Typical borrowers of AfDB funds include governments, ministries, or an
agency or utility under a ministry. While governments and related agencies
are the primary recipients of AfDB funds, private sector enterprises too are
eligible for some forms of assistance. For private sector support, AfDB
assistance is limited to a third of project costs.' The size of private sector loans
are generally in the $100,000 to $10 million range.
Criteria: The AfDB approves projects or program financing only on the basis of
appraisal reports prepared and submitted by the Bank's own.staff, even where
a project have been previously appraised by other co-financing institutions.
The appraisal process accounts for the following:
• the borrower's administrative and operational capability to carry out
the project; ,
• technical equipment, labor, and infrastructure required and available;
and
• social and economic costs and benefits.
Contact Information: For further information, contact:
African Development Bank
01 BP 1387 Abidjan 01
Cote d'lvoire, Africa
Tel: 225/204118
Fax: 225/204006
'AfDB provides'loans for the,economic
and social advancement of African
countries,' Grants are available for the
poorer countries through the Africa
Development Fund and 1he Nigeria
Trust Fund.
-------
Appendix B
LADFILLClDELWES
TDA will provide grants to conduct
feasibility studies in developing coun-
tries on the condition that U.S. firms be
hired to conduct the study. The aver-
age grant size ranges from $300,000
to $400,000.
Trade Development Agency (TDA)
Overview: Established in 1980, the U.S. Trade Development Agency (TDA) is
a government organization that promotes U.S. exports by providing grants for
feasibility studies for large development projects jn developing and middle
income countries. The purpose of these grants is to provide.U.S. firms with
the opportunity to undertake feasibility studies for large overseas projects,
thereby increasing the chance that they will be involved in project
implementation. TDA grants the funds on the condition that U.S. firms are
utilized to conduct the study. TDA is currently involved in: energy,
environment, mining and minerals development, health care, manufacturing,
telecommunications, transportation, water resources, agriculture, and aviation.
There are two types of studies which the TDA may fund: (1) feasibility studies
for projects in which U.S. companies intend to make equity investments, and
(2) feasibility studies for public sector projects. Before TDA funds a feasibility
study, experts are hired to develop reports regarding the feasibility study and
the project to be implemented at the conclusion of the study. If the TDA
decides to fund the feasibility study, it asks interested firms to submit
proposals. The host government decides which of the competing companies
will undertake the study.
The agency may provide up to one million dollars per study, although the
average grant amount ranges between $300,000 and $400,000. While up to
20 percent of the TDA funding may be used to pay subcontractors in the host
country, the remainder must be used for services sourced in the U.S.
Criteria: All feasibility study proposals must include the following information:
project description; U.S. export potential; information on host country partners;
evidence of the host nation's commitment to the project; justification for why
TDA funding is needed; a financial analysis of the project; an assessment of
foreign competition for project implementation; and the impact of the project on
U.S. labor. A few of the most important criteria include:
• The project must be a development priority for the host country.
• The export potential of the project must be significantly greater than
the cost of TDA assistance.
• The procurement process must be open to U.S. firms.
Contact Information: For further information, contact the TDA at:
Trade Development Agency
Room 309, SA-16
Washington, D.C. 20523-1602
Tel.: 703/875-4357
Fax: 703/875-4009
-------
U.S. Agency for International Development (USAID)
Overview: USAID's Office of Energy, Environment, and Technology assists
developing countries and emerging economies find market-oriented solutions
to their energy and environmental problems. The Office's programs address
three main issues: 1) high rates of energy demand and economic growth
accompanies with lack of energy,- especially in rural areas; 2) financial
problems, including lack of investment capital; and 3) growing environmental
threats, especially global climate change, acid rain, and urban air pollution.
The Office focuses its efforts in the following areas:
• Energy Efficiency . , :
«, Renewable Energy Project Development
• Private Sector Energy Development
• Energy Technology Innovation '
• Training/Technical Assistance .
The Office has two main strategies for achieving its objectives:
• Tapping U.S. Know-how: The Office arranges cooperative
1 relationships between developing countries and U.S. energy and
environment industries, multilateral development banks, and non-
governmental organizations; and
• Promoting Private Sector Initiatives: The Office assists countries put
in place market-oriented policies and institutions to support private
- environment and energy initiatives.
The types of assistance offered include: financing (loans, investment funds);
policy, legislative, and- regulatory development assistance; reports and
workshops on market conditions and opportunities; and engineering and other
technical assistance. ,
Criteria: The criteria for USAID fund varies on a casevby-case basis.
However, the following points are generally considered in the project
evaluation'process:
i • \_
•• Potential of the project to meet its goals
• Contribution to human welfare and sustainable development;
• Scientific and technical basis of project;
• Host nation political, legal, economic, and administrative conditions
Contact Information: For further information, contact:
U.S. AID: Office of Energy, Environment and Technology
Room 508, SA-18
Washington D.C. 20523-1810
Tel.: 703/528-4488
Fax: 703/528-2280
- USAID's Office•' "of < Energy, Environ-
ment, and Technology provides grants
and technical assistance to develop-
ing countries for meeting their energy
and environmental needs. >
-------
Appendix B
LANDFILL GUIDELINES
OPIC will provide bans and loan
guarantees for projects in developing
countries that US enterprises have a
stake In, The project must have a
positive effect on the US economy.
Overseas Private Investment Corporation (OPIC)
Overview: OPIC is a U.S. government agency that provides loans, loan
guarantees, and political insurance to American business ventures in the
developing world. These services are provided to those projects that are
economically and technically sound but are unable to receive sufficient-
financing or insurance from the commercial sector. Projects supported by
OPIC must have a positive effect on the U.S. economy, be financially sound,
and provide significant benefits to the social and economic development of the
host nation. While OPIC does not require the foreign enterprises to be owned
entirely by U.S. interests, generally the U.S. investor is expected to own at
least 25 percent of the equity in the project. Neither financing nor insurance
will be available for investments in business that are majority owned by a
foreign government. Furthermore, only the portion of the investment made by
a U.S. investor may be insured by OPIC.
OPIC's finance division offers loans and loan guarantees. Loans are generally
granted to small U.S. businesses and range from $2 million to $10 million. For
larger projects, in the $10 million to $75 million range, loan guarantees are
provided. OPIC's insurance division offers coverage against the following
three risks: currency inconvertibility, expropriation, and political violence.
Other investor services provided by OPIC include investment missions and
outreach activities.
Criteria: Eligible projects must meet the following criteria:
• Positive effect on the U.S. economy: Projects must demonstrate
positive balance of payments and employment effects on the U.S.
economy; • .
• Development contribution: Projects must benefit the economic and
social development of the host nation;
• Performance requirements: OPIC will not "become involved in any
project subject to performance requirements that will reduce the
potential for U.S. trade and employment benefits.
• Environmental impact: the project should not have an unreasonable
or major adverse impact on the host nation's environment; and
• Worker's rights: All projects supported by OPIC must meet
internationally recognized standards with regards to worker's rights.
Contact Information: For further information, contact OPIC at:
Overseas Private Investment Corporation
1100 New York Avenue, N.W.
Washington, D.C. 20527
Tel.: 202/336-8799
Fax: 202/408-9859
Fax-ion-Demand System: 202/336-8700
-------
Immi&mm
Appendix 6
Export-Import Bank (EXIMBANK)
Overview: The Export-Import Bank (EXIMBANK) of the United States js a U.S.
Government agency that facilitates the export financing of U.S. goods and
services to foreign buyers. EXIMBANK supports export sales by providing
direct loans to foreign buyers, guarantees to U.S. and foreign commercial
lenders for credit risk protection, export credit, insurance, to U.S. exporters
against failure of foreign buyers to meet payment obligations, and pre-export
financing for small business through its Working Capital Guarantee Program.
Relevant information about EXIMBANK loans includes:
s •
• Types of Loans: EXIMBANK provides both direct and intermediary
loans. Direct loans are provided to foreign buyers of U.S. exports;
intermediary loans fund parties that extend loans to foreign buyers;
• Interest Rates: EXIMBANK loans carry the lowest interest rate
permitted under the OECD Arrangement for the market and term. ,
• this rate is the OECD Commercial Interest Reference Rate (CIRR),
which changes monthly. For relatively poor^countries, lower interest
rates loans are available; and
• , Extent of Assistance: Loan and guarantee programs cover up to 85%
of the U.S. export value.
Criteria: Transactions are evaluated in terms of the creditworthiness of the
buyer, the buyers country, and the exporters ability to perform. In general the
following information is assessed:
• Financial Data: Balance sheets and income statements for the past 3
years for the buyer and any guarantors);
• Credit Data: at least two credit references are checked;
• Technical Feasibility, technical characteristics of the 'project,
breakdown of costs, project scheduling, participant profiles,
environmental aspects, etc.; and
• Applicant and Exporter Data: Evidence of the applicants ability to
implement the requested loan or guarantee.
Contact Information: For further information, contact:
Export-Import Bank of the United States ,
Credit Information Section
811 Vermont Avenue, N.W.
Washington D.C. 20571
Tel: 202/377-6336
• Fax: 202/566-7524
, Fax-on-Demand system: 800/424-5201
EXIMBANK provides loans and guar-
antees to foreign buyers of US goods
and services., The bank covers up to
85% of the 'US export value.
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Appendix B
LADFILLGllIDELlES
Projects that meet the USIJI criteria
are likely to attract US investors seek-
ing the recognition and other amenities
available to participants in the USIJI
program.
U.S. Initiative on Joint Implementation (USIJI)
Overview: The U.S. announced its Initiative on Joint Implementation (USIJI)
in October 1993. This voluntary pilot program provides recognition and select
technical assistance to U.S. greenhouse gas reduction projects in other1
countries. This program allows U.S. companies to reduce emissions at a
lower cost than would be incurred by projects undertaken at home. U.S.
government agencies involved in this program include the Environmental
Protection Agency, the Department of Energy, the Department of State, the
Agency for International Development, the Department Of Commerce, and the
Department of Agriculture, among others.
The benefits of this program to U.S. participants include public recognition,
including use of the USIJI logo and media events, and technical assistance.
This assistance may include help in obtaining host country acceptance of the
project, identifying or developing methodologies for establishing'a greenhouse
gas emissions baseline, and guidance on how to monitor and verify emissions
reduced or sequestered. For foreign participants, the benefits may include
technology transfer, investments in technologies that benefit the global
environment as well as the local economy, employment opportunities and
training, and local environmental benefits.
Eligible program participants include U.S. citizens, U.S. companies, and any
U.S. federal, state, and local government entity. Foreign partners may include
private citizens and public entities of all nations that have ratified the United
Nations Framework Convention on Climate Change (UNFCCC).
Criteria: Projects accepted into the USIJI program must:
• obtain host country acceptance;
• prove that the specific measures to reduce or sequester greenhouse
gases are being undertaken as a result of USUI or in its anticipation;
• provide sufficient and reliable data to establish a baseline of current
and future greenhouse gas emissions;
• provide for the tracking of emissions reduction or sequestration;
• allow for external verification of emissions reduction or sequestration;
• identify benefits or negative effects on the economic and social
development of the host country and on the local environment.
Contact Information: For further information, contact:
The USIJI Secretariat
600 Maryland Avenue, SW Suite 200 East
Washington, D.C. 20585
Tel.: 202/426-0072
Fax-on-Demand System: 202/260-8677
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