development alternatives cdm opportunities, new delhi vertical shaft brick kiln project: a case...
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Development AlternativesCDM Opportunities, New Delhi
Vertical Shaft Brick Kiln Project:
A Case Study
Workshop on
CDM: Opportunities in RajasthanJaipur
28-29 January, 2005
Development AlternativesCDM Opportunities, New Delhi
CONSTRUCTION SECTOR IS THE LARGEST CONTRIBUTOR TO
CO2 EMISSIONS IN INDIA
Development AlternativesCDM Opportunities, New Delhi
Cement Steel Bricks
60% of CO2 Emissions in Construction Sector
are contributed by
Development AlternativesCDM Opportunities, New Delhi
Demand Projections of Building Materials
47.52
92.5
202.3
136.05
45.31
61.2
89.1
72.9
23
8.114.99.6
3.3 5.12 8.3413.6
0
50
100
150
200
250
1990 2000 2010 2020
Cement (mt)
Brick billion
Steel (mt)
Lime (mt)
Building material demand
Year
Development AlternativesCDM Opportunities, New Delhi
Development AlternativesCDM Opportunities, New Delhi
Development AlternativesCDM Opportunities, New Delhi
Development AlternativesCDM Opportunities, New Delhi
Development AlternativesCDM Opportunities, New Delhi
Development AlternativesCDM Opportunities, New Delhi
Majority of current technologies for burnt bricks do not
meet environmental standards orSupreme Court of India directives
National Concern
Development AlternativesCDM Opportunities, New Delhi
CDM Project• Technology and Action for Rural
Advancement will facilitate installation of 100 VSBKs across 3 states
• TARA will provide the technology and existing kiln owners the finance
Development AlternativesCDM Opportunities, New Delhi
Technology Description Multiple Shaft VSBK with individual shafts upto 1.25m X 2m size
Operation Continuous mode
Production Capacity 10000 to 40,000 per day
Fuel Pulverized coal, lignite pellets
Greenhouse Gas Mitigation Drastic reduction in fossil fuel use (upto 60%)
CDM Project - Vertical Shaft Brick Kiln
Development AlternativesCDM Opportunities, New Delhi
Development AlternativesCDM Opportunities, New Delhi
Sche
mat
ic D
iagr
am o
f VSB
K
Development AlternativesCDM Opportunities, New Delhi
Development AlternativesCDM Opportunities, New Delhi
Development AlternativesCDM Opportunities, New Delhi
Development AlternativesCDM Opportunities, New Delhi
Baseline• Movable Chimney Bull Trench Kilns banned by the
Supreme Court• Fixed Chimney BTK is an option but involves
higher capital investments• Most MCBTKs still operating due to less
enforcement and lack of alternative options• Continuation with MCBTKs is therefore the
baseline scenario
Development AlternativesCDM Opportunities, New Delhi
Clamps = 4.5 to 8.0 MJ / Brick
Movable Chimney = 4.2 MJ / Brick(BTK)
VSBK = 1.80 MJ/ Brick
Energy Consumption in Brick Production
Development AlternativesCDM Opportunities, New Delhi
Baseline CalculationsEnergy baseline:• Specific Energy Consumption using MCBTK = 4.4 * 10-6 Tj/ brick• Total Number of bricks produced in 70 kilns = 70 kilns * 20,00,000 bricks/
kiln = 140,000,000• Total Energy Consumption = Specific Energy Consumption * Total Bricks
produced= 4.4 * 10-6 * 140,000,000
= 616 Tj
• Carbon Emission Factor (CEF) for bituminous coal = 25.8 tonnes of carbon per
TerajouleEmissions baseline = Total Energy Consumption * CEF
= 616 Tj * 25.8 t C/ Tj = 15892.8 t C
Development AlternativesCDM Opportunities, New Delhi
Additionality • Identification of alternatives
– Continue their existing operation with MCBTKs (not legal)
– Replace MCBTKs by Clamp Kilns (not profitable)– Replace MCBTKs by Fixed Chimney BTKs
– Replace MCBTKs by VSBK.
Development AlternativesCDM Opportunities, New Delhi
Additionality
• Investment Analysis– IRR for Fixed Chimney BTK: 34%
– IRR for VSBK: 24%
Development AlternativesCDM Opportunities, New Delhi
Additionality• Barrier Analysis
– Investment Barrier : Existing kiln owners used to cash requirements of Rs. 20 lakh per annum.In VSBK double is required
– Technological Barrier – Reluctance to adopt a new technology– Service infrastructure not yet in place– Require more trained manpower
Development AlternativesCDM Opportunities, New Delhi
Additionality• Impact of CDM Registration
– Increases IRR for entrepreneues to 29%
– Bridges the financing gap for TARA to undertake the project
– Helps alleviating other barriers
Development AlternativesCDM Opportunities, New Delhi
Sustainable DevelopmentS.D. Factors Indicators Impacts/Results
Economic Well-Being Employment Generation 300 more jobs created
Environmental Soundness
CO2 reduction 38000 tonnes per year
SO2 reduction 380 tonnes per year
NOX reduction 11 tonnes per year
SPM reduction 111µg/nm3
RPM reduction 86µg/nm3
Social wellbeing Community Development
Contribution to brick workers’ savings
Technological Adaptation
Resource requirements Less land requirementImproved brick quality
Development AlternativesCDM Opportunities, New Delhi