Utilizing Carbon Credit to convert diary cow manure to biogas to sanitize water for poor farmers.
Conversion of environmental liabliity into carbon revenue stream using low cost landfill methane gas generation landfills to provide sanitation and fertilizers for grass.
About You
Location
Project Street Address
Project City
Project Province/State
Project Postal/Zip Code
Project Country
Your idea
Field of Work
Sanitation
Year the initative began (yyyy)
2007
YouTube Upload
Web site (url)
Positioning of your initiative on the mosaic diagram:
Which of these barriers is the primary focus of your work?
Lack of access to equity/credit in the sector
Which of the principles is the primary focus of your work?
Value-added services mean added business income
If you believe some other barrier or principle should be included in the mosaic, please describe it and how it would affect the positioning of your initiative in the mosaic
Provision of animal waste management for diary farms in Eastern Java regency of Pasuruan is being designed to generate biogass methane from cow waste to use as heat source to sanitize water and claim carbon credit for reduction of greenhouse gas emission to utilize revenue to fund water supply infrasture. Low Finanical Internal Rate of Return is primary barrier inspite of of high Economic IRR for reduction of disease for the children, adults and cows.
Name Your Project
Utilizing Carbon Credit to convert diary cow manure to biogas to sanitize water for poor farmers.
Describe Your Idea
Conversion of environmental liabliity into carbon revenue stream using low cost landfill methane gas generation landfills to provide sanitation and fertilizers for grass.
Innovation
What is your signature innovation, your new idea, in one sentence?
Conversion of environmental liabliity into carbon revenue stream using low cost landfill methane gas generation landfills to provide sanitation and fertilizers for grass.
Describe your innovation. What makes your idea unique and different than others doing work in the field?
Replacing tradtional biogass digestors with low cost landfill cells using local government owned communal land to generate methane from solid diary cow manure in an anaerobic condition from diary farmers and flaring the methane gas to reduce fugitive greenhouse gas emission and registering the project using recently launched Program of Activity approach under Kyoto Protocol's Clean Development Mechanism to add more project sites in other regions in the future in order to achieve scale of economy to make the investment more feasible and replicate the model in other diary farm area who lack sanitation. The methane gas is a renewable source of energy and is used to sanitize drinking water for the cows and for human consumption to reduce health risk and increase milk productivty for the cows. Loose manure from the poor to be swapped with solid manure from rich farmer to use as fertilizer for growing elephant grass used to feed the cows. Landfill shall use solid manure as biogass feedstock.
Delivery Model: How do you implement your innovation and apply it to the challenge/problem you are addressing?
By performing pre-feasibility to map the cow and community population for data collection, commission technical consultant to design innovative landfill methane gas capture and flaring system and develop business plans and obtain grants to construct the pilot plant for demonstrations. We plan to establish Energy Service Community Coop (ESCCOP) to involve local government, investor, rich milk cooperative members and the poor farmers as stakeholders and work out sanitation cooking food production energy and water supply model as the pilot plant.
How do you plan to expand your innovation?
Identify more diary farms facing similar problems where diary farmers are still struggling with improving milk production and neglecting need for proper animal manure waste management system.
By utilizing fiancial incentive from CDM, investment can be made to solve social and environmental problem and revenue used to invest in construction of water wells, pumps and sanitation systems.
Presently, biogass investment depend on government subsidy and aid agency donations but we aim to utilize carbon project finance schemes to obtain upfront payment and revenue to maintain and operate the system and receive utility charges. Already communities in West and Central Java, South Sumetra and Bali stakeholders are identified for future replication of this technical desgin and susutaianble development business model. The project is to be registered under the Programme of Activity that was recently approved by UNFCCC methodology panel at Bali CoP meeting in Bali in Decemer 2007. Lekok shall be the reference projects, and other projects shall be added to achieve economy of scale and further replication.
Do you have any existing partnerships, and if so, how do you create them?
The Regency of Pasuruan has signed a memorandum of understanding to implement CDM project, the Millk marketing Co-op "Koperasi Suka Makmur Grati" and the community of Lekok subdistrict have requested for implementation of the program.
PT Gikoko Kogyo Indonesia, (www.gikoko.co.id), a renewable energy power plant engineering company based in Jakarta has implemented Municipal Solid Waste lLandfill Gas Flaring and small scale electricity generation project under going UNFCCC regitratrion process in a public private partnership contract with West Kalimantan City Government of Pontianak is being developed in partnership with the World Bank and Emission Recuction Purchase Agreement was signed in June 2007. Gikoko is supporting the projec development as a Social Responsibility contribution to leverage its expertise in biomass and carbon finance to solve envrionmental problems and utilize CDM to fund the investment. United Nations Development Program (UNDP) under Global Compact's Growing Sustaianble Business program may support feasibility study. Golders Associate is the technical consultant. Susppy (www.susppy.org) is supporting technical expertise.
Impact
Provide one sentence describing your impact/intended impact.
Providing innovative sustaianble social and envionmental solutions improve health and economic development using innovate biomass technology and carbon finace busines model useful for rapid replications.
What are the main barriers to creating or achieving your impact?
Low financial Internal Rate of Return inspite of Very high Economic Interal Rate of Return.
Small scale, lack of access for capital assistance.
Lack of bankability preventing access to loan,
Fiduciary duty of bankers, asset managers prevent risk taking.
All similar projects using digestor technology rely on goverment subsidy, reinforcing the image that projects are financial unfeasible and prevent private sector involvement.
How many people have you served or plan to serve?
The village of Lekok has seven thousnd resident and fourteen thousand cows.
Pertenekan Swassembada has 300 cows with ninety more being added in the year 2008~ 2009.
Directly
the family owned farm and three hundred people living withing 600meters of the communal landfill in Lekoko village.
Indirectly
All diary farmers who suffers from polio, skin dieeasees, dengue fever, dysentry and diarear and cows who suffer from mastiosis infection due to ladk of sanitation.
Please list any other measures of the impact of your innovation?
Greenhouse Gas emission will be measured and verified for issuance of Certified Emmission Reduction to be sold to carbon credit buyer who need to offset their emission reduction to comply with national, European Commission or Kyoto Protocol's committments.
Cow milk production increase due to acess to suffcient clean drinking water,
Improvement in health of community and decrease in case of diease and illness.
Development of food production business by women and income generation increase from using heat for soya based tofu and tempe products for sale.
Is there a policy intervention element to your innovation, if so please describe?
Kyoto Protocol and decision during CoP meeting at Bali in December 2007 to adopt Program of Activity has helped this business model.
Exactly who are the beneficiaries of your innovation?
The diary cows and farmers and the poor community.
The global community from reduction in greenhouse gas from capture and flaring of fugitive methane and displacement of fossil fuel normally used for cooking and boiling water.
Fishing community downstream whose stock is decimated every rainy season as rain carry loose waste from Lekok village via the ditch into the sea.
The rich farmer cooperative get investment in animal waste manure system and avoid potential social conflict. The diary product factory mitigates supply chain management risks.
This Entry is about (Issues)
Sustainability
How is your initiative financed (or how do you expect your initiative will be financed)?
UNDP Jakarta has pledged s small budget for data collection and shall negotiate with Japan Bank of Internation Cooperation (JBIC) for a feasibility study budget from The Government of Japan who has pledged funding to support Growing Sustainable Business program under Global Compact to encourage private enterprise to extend its products and service to the poor community to expand their market share.
Golders Associates (www.golders.com) has done preliminary survey voluntary and has formed concept for utilization of animal manure as fertilizer for feed grass, and feedstock for renewable energy earning carbon credit revenue.
A negotiated agreement with carbon finace fund such as UNDP's MDG fund and Asian Development Bank's Asia Pacific Carbon Fund are potential buyers of carbon credits to be generated by the project,
Provide information on your finances and organization:
Gikoko's traditonal business provides renwable energy power plant and air quality mangement system to multinatoinal automotive, chemical, and construction material manufacturers, and annual sales in year 2007~2005 exceeded US$ 5,000,000 per year. Gikoko is investing US$ 4million dollars and anticipate yielding 900,000 tons of Certified Emission Reduction worth more than US$ 12 million by year 2012. We share 10% of revenue for waste management re-investment for the host local government and another 7% for Community Development Program for the landfill's oor. Estimate of emission reduction generation, utility charge income and CAPEX, operation and maintenance is to be covered in the feasibility Study. Preliminary estimate of cost of mini-landfill is US$ 45,000 including monitoring and communal water sanitation system. A famliy of ten pays out US$ 40 cents per day on utilty charges. We expect diary owners members of ESCCOP to transport the waste to the landfill in exchange for affordable water and heat.
What is the potential demand for your innovation?
This scheme has potential for bringing health improvement impact to every diary farm in the developing country and also in industrialized countries, and attrracting project development investors willing to implement projects without financial burden on the farmers. ESCCOP in Lekok will need local community to transfer waste 7 peoplel, 2 part time truck drivers for waste transfers
This innovative technology for low cost mini landfll with fugitive methane gas collection pipe
and flaring for Green House Gas reduction and energy utilization has potential to be
What are the main barriers to financial sustainability?
Most carbon funds have minium size in terms of annual yield of credit in Carbon Dioxide equivalent of 50,000 tons. process. Animal waste manure may only produce small carbon credit. Programmatic Approach is needed to expand the project in order to achieve scale of economy as cost of CDM registration is very high. Low income level of poor farmers (daily income: family of eleven, around US$ 4 per day) means inablity to pay high water utility charges to ESCOOP.
The Story
What is the origin of this innovation? Tell us your story.
Our company became aware of Kyoto Protocol's CDM as an opportunity to obtain long term cash stream and therefore asset owners. Our parent company is a trading company and we grew to beome an engineering and manufacturing company with 189 technicians and staff over the last twenty years. Asset ownership and mangeement became our dream in order to cushion the company from economic downturn such as the Asian Monetary Crises which hit Indonesia in 1997. Gikoko has constructed biomass waste wood power plant for clients and made proposal to State Elecrity Company to cevelop an Indepent Power Producer renewable energy power plant but we faced too many economic barrier where foissil fuel is plentiful and one third of country's budget is spent on energy subsidy provision. In June 2006 I met a waste mangement CDM consultant with the World Bank in Jakarta who had arranged for letter of intent for landfill gas flaring projects in two cities in Indonesia in a CDM Finance workshop and he pointed out the opportunity for Public Private Partnership in methan gas flaring project and we signed with Pontianak City a month later and won tender to develop the two other cities within the next 18 months. The Regency of Pasuruan invited Gikoko to investigate and innovate solution to help with the diary farmers who are too poor to spare fuel for boiling water and Gikoko has spent the last twelve months voluntarily on research and fund raising.
Please provide a personal bio. Note this may be used in Changemakers marketing material
Joseph Wu Chao Hwang,
Born in Kobe Japan in 1961, British Citizen, educated at Lancing College, Sussex England and
Master of Science in Industrial Engineering and Production Management, Cranfield University, UK. 1987.
Financial Futures Intrument Broker, Tullett and Tokyo Forex International ,City of London 1986~ 1992
Director Giko Corporation, Kobe Japan since 1992 and PT Gikoko Kogyo Indonesia since 1993.
ILO, Turin Training Centre fellow on Enterprise Development 2006
Young Entreprenur Organization Learning Chair Indonesia Chapter 2005
British Chamber of Commerce Indonesia Board Member since 2003.
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