preliminary feasibility study on the production of bio-cokes and

Study Report

Preliminary Feasibility Study on the Production of Bio-Cokes and Programmatic CDM Project

in the Philippines, March 2010, ECFA

Preliminary Feasibility Study

on

The Production of Bio-Cokes

and

Programmatic CDM Project

in the Philippines

Study Report

March 2010

Engineering and Consulting Firms Association, Japan

NTT GP-ECO communication, Inc.

This work was subsidized by JKA

through its Promotion funds from KEIRIN RACE.

http://ringring-keirin.jp/

Study Report Table of Contents



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TABLE OF CONTENTS

Executive Summary

Chapter 1 : Introduction........................................................................................................................... 1

1.1 Background and Objectives ........................................................................................................... 1

1.2 Scope of Works.............................................................................................................................. 1

1.3 Study Area ..................................................................................................................................... 2

1.4 Study Schedule .............................................................................................................................. 2

1.5 Study Team Member...................................................................................................................... 2

Chapter 2 : Introduction to the Biomass-based Cokes and Its Market .................................................... 4

2.1 Coconut as “The Tree of Life”....................................................................................................... 4

2.1.1 Description of Coconut Tree................................................................................................... 5

2.1.2 Industrial Use of the Coconut ................................................................................................. 5

2.1.3 Philippine Coconut Authority (PCA)...................................................................................... 8

2.1.4 Jurisdiction and Organization of PCA .................................................................................... 9

2.1.5 Significance of Coconut Industry ......................................................................................... 11

2.1.6 Philippines Laws and Regulations Relating to Coconut Industry ........................................ 13

2.2 Introduction to the Biomass-based Cokes made by the Coconut Wastes .................................... 13

2.3 Surrounding Environment for the Introduction of Biomass-based Cokes................................... 17

2.3.1 The trend of coconut production........................................................................................... 17

2.3.2 The amount of the Productivity of Coconuts-originated coal............................................... 20

2.4 Potential Market for the Biomass-based Cokes in the Philippines .............................................. 21

2.4.1 Needs for the Biomass-based Cokes..................................................................................... 21

2.4.2 Supply amount in northern Mindanao and Calabarzon ........................................................ 23

2.5 The Carbonized Coconut Husk as Source of Alternative Energy ................................................ 24

2.5.1 Heat source usage in the oil mill factory .............................................................................. 24

2.5.2 Fuel gas usage for small scale power generator.................................................................... 26

2.5.3 Heat source for drying Copra................................................................................................ 27

Chapter 3 : Proposed Biomass-based Cokes Production Project........................................................... 28

3.1 Technical Profile of Biomass-based Cokes Production Systems................................................. 28

3.1.1 Preparation for the carbonization.......................................................................................... 28

3.1.2 Carbonization process........................................................................................................... 29

3.2 Integration of the Production Systems to the Existing Coconut Oil Mill Systems...................... 32

3.2.1 Oil mill process and heat flow in large scale oil mill factory ............................................... 32

Figure 3-8 shows typical diagram of the processing flow of the Coconut Oil Mill and is a case

that illustrates heat utilization, exhausted gas recovery systems by heat exchanger at large oil mill

in general. ...................................................................................................................................... 32




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3.2.2 Oil mill process and heat flow in small scale oil mill factory............................................... 33

3.2.3 Coconut flow from farmer to the oil mill factory ................................................................. 34

3.2.4 Heating value of the Coconut husk Coal .............................................................................. 35

3.2.5 Preparation of the calculation ............................................................................................... 36

3.2.6 About husk carbonization furnace near by oil mill factory................................................... 38

3.2.7 Price of Cokes and husk ....................................................................................................... 39

3.2.8 Specification of furnace........................................................................................................ 41

3.2.9 Rough idea of the production cost ........................................................................................ 41

3.2.10 Checking of the heat balance system of carbonization for IRR calculation ....................... 42

3.2.11 Investment at selected oil mill ............................................................................................ 44

3.3 Technical and Environmental Issues to be addressed .................................................................. 44

3.4 Material Supply and Logistic Value Chain .................................................................................. 45

3.4.1 Players in the Logistic Chain of Coconut Products .............................................................. 46

3.4.2 Proposed Logistic Value Chain for the Coconut Husk ......................................................... 46

3.5 Proposed Organizational Structure .............................................................................................. 48

3.5.1 Organizational Structure at the institutional level................................................................. 48

3.5.2 Organizational Structure at the Production Level................................................................. 49

Chapter 4 : Applicability as a Validated Programmatic CDM (PoA) Project ........................................ 51

4.1 Definition and Outlines of the PoA Project ................................................................................. 51

4.2 Applicability of the PoA Concept to the Project.......................................................................... 54

Chapter 5 : Financial Viability Analysis on Two Case Studies.............................................................. 60

5.1 General Pre-conditions for Financial Viability Analysis ............................................................. 60

5.1.1 Pre-conditions for the Financial Viability Analysis .............................................................. 60

5.1.2 Capital Cost for the Project................................................................................................... 60

5.1.3 Currency and Foreign Exchange Rates................................................................................. 60

5.1.4 Financing plan for the Project Investment ............................................................................ 61

5.2 For the Investment Proposal at the Northern Coast of Mindanao ............................................... 61

5.2.1 Total required costs for the Project ....................................................................................... 61

5.2.2 Expected Revenues and Required Costs for the Project ....................................................... 62

5.2.3 Results of the Financial Viability Analysis (Analysis of FIRR) ........................................... 62

5.2.4 Results of the Financial Feasibility Analysis ........................................................................ 64

5.3 For the Investment Proposal at the Calabarzon Area................................................................... 65

5.3.1 Total required costs for the Project ....................................................................................... 65

5.3.2 Expected Revenues and Required Costs for the Project ....................................................... 65

5.3.3 Results of the Financial Viability Analysis (Analysis of FIRR) ........................................... 66

5.3.4 Results of the Financial Feasibility Analysis ........................................................................ 67

5.4 Sensitivity Analysis on the Financial Internal Rate of Returns ................................................... 68




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Chapter 6 : Roadmap for the Project Implementation ........................................................................... 70

6.1 General......................................................................................................................................... 70

6.1.1 Construction at the Project Sites........................................................................................... 70

6.1.2 Trial operation....................................................................................................................... 71

6.1.3 Personnel and Training Program for Operators .................................................................... 71

6.2 Proposed Project Implementation Structure ................................................................................ 71

6.3 Proposed Project Implementation Schedule ................................................................................ 72

6.3.1 Project Preparation Study ..................................................................................................... 72

Appendix 1 : Financial Analysis.............................................................................................................. 1

Appendix 2 : T.O.R.................................................................................................................................. 1




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List of Table

Table 1-1 Member of the Study Team .......................................................................................... 3

Table 2-1 Coconut Production in major producing countries ....................................................... 4

Table 2-2 Production of Coconut in the Philippines (1997- 2007) ............................................. 12

Table 2-3 Domestic Use and Exports of Coconut (Copra) ......................................................... 13

Table 2-4 Specification for Bio-Cokes derived from Coconut ................................................... 14

Table 2-5 weight and component rate of husk ............................................................................ 16

Table 3-1 material flow example of Husk and Copra part........................................................ 37

Table 3-2 Specification of furnace.............................................................................................. 41

Table 3-3 Specification of main facilities and capital investment for big scale O/M................. 44

Table 3-4 Specification of main facilities and capital investment for small scale O/M ............. 44

Table 3-5 National Ambient Air Quality Guideline Values ........................................................ 45

Table 5-1 Borrowing condition of the Project Loan ................................................................... 61

Table 5-2 Details of the Capital Cost and WACC....................................................................... 63

Table 5-3 FIRRs on the Base Cases............................................................................................ 64

Table 5-4 FIRRs on the Base Cases............................................................................................ 68




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Lists of Figure

Fig 2-1 Organizational Structure of PCA ................................................................................... 10

Fig 2-2 section of Coconut and possible part to the Cokes......................................................... 15

Fig 2-3 Coir (left) and Husk removing from coconut (right)...................................................... 16

Fig 2-4 Copra production amount and installation utilization .................................................... 18

Fig 2-5 heat usage in oil mill factory.......................................................................................... 24

Fig 2-6 carbonization furnace on the construction in oil mill factory ........................................ 26

Fig 2-7 rice husk gasification and 20kW power generator in Nueva Ecija ................................ 26

Fig 2-8 flat bed type dryer for Copra and Coconut husk, shell as fuel ....................................... 27

Fig 3-1 carbon rate, yield and density at hour rate ..................................................................... 28

Fig 3-2 the 12 segmented husk before carbonization ................................................................. 29

Fig 3-3 garden carbonizing for rice husk in Philippine - small scale batch type -...................... 29

Fig 3-4 middle scale batch type garden carbonization for Eucalyptus in Thai land ................... 30

Fig 3-5 Continuous type carbonization furnace by self heating（left: Philippine, right: Japan）

............................................................................................................................................... 31

Fig 3-6 Large scale continuous type carbonization furnace with self heating............................ 31

Fig 3-7 Continuous type carbonization furnace by self heating ................................................. 32

Fig 3-8 heat flow in oil mill factory............................................................................................ 32

Fig 3-9 oil mill factory(lower) and heat flow(upper).................................................................. 33

Fig 3-10 Flow chart of the proposed coconuts husk derived cokes production and GHG

capturing system .................................................................................................................... 34

Fig 3-11 Coconut husk carbonization process in farmer and oil mill factory............................. 35

Fig 3-12 Carbon material balance............................................................................................... 39

Fig 3-13 heat balance of proposed coconuts husk carbonization system ................................... 43

Fig 3-14 promotion paper for salt fertilizer ................................................................................ 45

Fig 3-15 Proposed Logistic Value Chain for the Project ............................................................ 47

Fig 3-16 Organizational Structure in the institutional level........................................................ 49

Fig 3-17 Organizational Structure at the Production Level ........................................................ 50

Fig 4-1 Outline of the PoA ......................................................................................................... 54

Fig 4-2 EIA process within the project cycle.............................................................................. 56

Fig 4-3 EIA process .................................................................................................................... 57

Fig 4-4 National Approval Transaction ...................................................................................... 58

Fig 4-5 National Approval Transaction fee................................................................................. 58

Fig 4-6 CDM Criteria ................................................................................................................. 59

Fig 4-7 Concept of PoA.............................................................................................................. 55

Fig 6-1 Proposed Project Implementation Structure................................................................... 72

Fig 6-2 Project Preparation Study implementation schedule...................................................... 73

Fig 6-3 Construction Schedule ................................................................................................... 74




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Abbreviation

ADB Asia Development Bank

CER Certified Emission Reduction

CME Coordinating and Managing Entity

CPA CDM Programme activity

DBP Development Bank of Philippines

DENR Department of Environment and Natural Resource

DNA Designated National Authority

EIA Environmental Impact Assessment

F-IRR Financial Internal Rate of Return

GHG Greenhouse Gas

JICA Japan International Cooperation agency

LHV Low Heating Value

NEDA National Economic and Development Authority

O&M Operation & Maintenance

PCA Philippines Coconut Authority

PDCA Plan-Do-Check-Action

PoA Programme of Activity

SPC Special Purpose Company

UNFCCC United Nations Framework Convetion on Climate Change

WACC Weighted Average of Capital Cost

Study Report



EXECUTIVE SUMMARY

Study Report Executive Summary



S-1

Executive Summary

1. Background and Objectives

The Government of the Philippines has recently created Presidential Degree in January

2009, to foster the development of Renewable Energy. The Decree was aimed at improving

National Energy Security and encourages the development and production of renewable

energy from plants as alternative sources for sustainable energy.

Coconut Husk is one of the potential sources of materials and along with this policy, the

Government of the Philippines has been involved with various Research and Development

activities with the Philippine Coconut Authority as the implementing agency for the

development of sustainable energy. . Based on Statistics published by the United Coconut

Associations of the Philippines, the total harvest for coconuts in the country in 2007 is

14.9 Billions pieces. However, the residue of the Coconut has rarely been utilized except for

charcoal made from coco-shells which is commonly used for domestic cooking purposes

only.

The objective of the Preliminary Feasibility Study is to explore the possibility of producing

Cokes from coconut husk through Carbonization Process for use in Iron Smelting and Steel

Casting processes thus replacing minimizing the use of imported Cokes made from fossils

which are sources of pollutants to the environment. The benefits to be derived from

producing biomass based coke from coconut husk would be plentiful. The trash material

could be used to mass produce bio-cokes thereby generating income for sustenance farmers.

The used of bio-cokes would be more environmental friendly than cokes made of fossils

because it is no polluting and therefore would be compliant to the Clean development

mechanism of the Kyoto protocol agreement.

2. Study Area

The entire Philippines are almost provided with coconut plantation, but specific focus was

given to two study Areas, one in the Southern Tagalog Region and the other in the Northern

Coast of Mindanao. Two case studies have been conducted for the selected study Areas,

with Granexport Manufacturing Corporation in Illigan City, Lanao del Norte Province as the

first, and Goldex Oil Mill in Gumaca City, Quezon Province as the second.

3. Market and potential of the Bio-coke Industry from Coconut Husk

Coconut husk are trash materials generated from the production of copra and are readily

available from coconut plantations. About 440,000 tons of coco-husk could be obtained




S-2

from accessible areas adjacent to roadways while some 130,000 tons are located in inner

areas inaccessible by vehicles.

The demand for powdered cokes in steel plant to be injected alternately with coal in the

sinter furnace is 50,000 tons maximum of powdered bio-cokes and 2,000 tons of coal or a

total of about 52,000 tons. This is less than the estimated 15 percent available husk supply

at 130,000 tons.

4. Proposed Biomass-cokes production project

The flowchart hereunder shows the outline of the proposed plant to produce

biomass-based coke from Coconut Husk through Carbonization t for use in Iron Steel

Casting making, alternately with imported Cokes to reduce on GHG..

Copra

Drying

Farmers / PlantationsFarmers / PlantationsFarmers / PlantationsFarmers / Plantations

Shipping

Oil MillsOil MillsOil MillsOil Mills Iron RefineriesIron RefineriesIron RefineriesIron Refineries

Copra

Cooking

CDM(1)(1)(1)(1)

Exhausted

Gas burner

Pelletizer

＊＊＊＊Carbonizer

Drying

Bio-cokes

replacedfr

Collection

Packing

Cutting

Reduction

materials

Packing

CDM(2)(2)(2)(2) ＊Husk

Dilution

Steam boiler

Replace

Fossil fuel

Replace

Coal-cokes

Grinder

Heat

(a) For Treasure Steel Corporation

Some 300,000 tons/year of scrap steel is being process by Treasure Steel in Iligan City and

at a ratio of 25kg of cokes per ton of scrap, this will require 7,500 tons of cokes per annum.




S-3

Assuming a combustion rate of 50% for the electric furnace, Treasure Steel Corporation

would need some 4,000 tons of cokes annually. The processing capacity for copra of

Granexport the largest coconut oil plant in the Philippine is almost in par with the capacity

of Treasure Steel plant estimated at 800t of Copra per day with 16% moisture content.. .

At 50% utilization rate the production capacity is estimated at 400t of Copra/day or about

100t/day of husk at 45% moisture. With 100t/day of Copra at 16% moisture, some

4,380t/day of husk can be carbonized as cokes to cover the requirements of Treasure Steel

Corporation.

Based on the records of Granexport Plant, plant, some 800t of Copra/day is being process

for oil production. With this in consideration, coconut is not only collected from along the

highways but also in the inner part of coconut plantations in remote areas. Based on

information middle men or copra traders with established buying stations are being used to

facilitate the gathering of coconut supplies.

(b) For Steel Asia

Steel Asia is located at the center of CALABARZON in Calaca, Batangas Province.. The

plant is comparatively new with 0.3million tons of steel/day processing capacity. Similar to

Treasure Steel Plant, Steel Asia needs 7,500t of cokes/day considering that the plant have

the same capacity as that of Treasure Steel Plant. As noted above, the Plant is estimated to

need 4,200t/year of powdered coal for fuel or about 11,700t/year of cokes. At mixed

furnace combustion rate of 50%, some 6,000t of cokes/year will be needed.

An oil milling plant is located in the vicinity of Gumaca, Quezon Province where the

study area is located. The capacity of the plant at 100t of copra/day is much smaller than

Granexport.

At 100t of Copra/day processing capacity, the oil mill plant is estimated to be able to

produce some 4,380t of cokes/year. While Steel Asia needs 6,000t of cokes/year which is 1.5

times greater than that of the factory which is about 150t of Copra/day or about 0.21 million

tons of Coconut/year.

The total Coconut production in the area is estimated at 1.2 million tons/year of which

about 0.6 million tons/year could be gathered along the highway which is about 50% of

the total estimated production of 1.2million tons/year. This is the reason why the study area

was selected because of the availability of good road transportation network where 50% of

the plantations are located.

In view of the foregoing considerations, some 150t/day coconut husk could be gathered by

3 to 4 oil plants for the production of 6,000t of cokes/year to meet the demand of Steel Asia.




S-4

Goldex oil mill factory in Gumaca Quezon Province is a medium size plant with 100t of

Copra/day processing capacity. There are also many other oil mill plants of this class in

Batangas Province and it is noted that the utilization rate of most of the plants are

estimated at 50%only.

5. Area of Responsibility

The PoA covers the administration of coconut plantations for the whole Philippines while

CPA covers the administration of coconut plantation for the whole Southern Tagalog Region

(Calabarzon) and Northern Coast of Mindanao with PCA of DA as the Coordinating and

Managing Entity (CME). PCA could at the same time function as the Implementing Agency

of the proposed Project. The use of biomass -cokes made from coconut husk in lieu of

imported fossil cokes for domestic steel plants will have the advantage of not only reducing

CHG but would also generate more income for farmers and employment opportunities and

conserving precious foreign exchange earnings.

6. Proposed Implementing Structure

The Philippine Coconut Authority (PCA) is a public entity solely responsible for the

administration of the Coconut Industry in the Philippines. PCA is proposed to be the

implementing agency for the proposed Bio-cokes Production Project and for the

coordination and management of CDM application in close coordination with the lending

institution.

The Project will be initiated by the private sector particularly by the Coconut and the Iron &

Steel Industries. These players, particularly the Coconut Mills, will be executing essential

roles in realizing the objectives of the Project. The flow chart hereunder illustrates the

Organizational Structures of both the Public and Private sectors for the Project

implementation including the functions of each organization.




S-5

Department of AgriculturePhilippine Coconut Authority

CME of PoA

Department of Agriculture

Philippine Coconut AuthorityCME of PoA

PoA boundary

far mer

Barangay ABarangay A

Philippine Development bankPhilippine Development bank

Two Step loan

Japanese GovernmentJICA

Japanese Government

JICA

Two Step loan

Husk of the Coconut

CPA boundary

Iron

Steel

plant

Iron

Steel

plant

Bio-Cokes

SPC

PCA branchPCA branch

carbonizationcarbonization

dryingdrying

peletizationpeletization

farmer farmer farmer farmer farmer farmer farmer farmer

Barangay BBarangay B Barangay CBarangay C

7. Viability of the Project

The viability of the proposed Project is hinged on the possibility of mass producing bio-cokes

from coconut husk at reasonable cost as substitute for imported fossil cokes for the

manufacture of steel. The abundance of trash hush materials generated from the processing of

copra coupled with the huge demand of bio-cokes for domestic steel making necessitated the

conduct of actual experimental research and test of producing bio-cokes from abundant

coconut hush waste. The result of the experiment and test were astonishingly successful.

Bio-cokes from hush materials could be mass produced at Php 18 per kilogram as compared

with imported fossil cokes at Php 20 per kilogram. Based on test results, production of

bio-cokes is both economically and financially feasible as described hereunder:

① Unlike fossil coke, bio-cokes is non pollutant and is therefore compliant to the Kyoto

Protocol Agreement for environmental concerns.

② The use of abundant hush waste would generate income for sustenance farmers. This is

also one means of disposing husk waste effectively and efficiently without adversely

affecting the environment.

③ The establishment of bio-cokes processing plants will create job opportunities in rural

areas.




S-6

④ Domestic production of bio-cokes will conserve the use of foreign exchange for the

purchase of imported fossil cokes.

The table below summarizes the financial viability of the proposed Project.

Project FIRR (Before Tax) FIRR (After Tax)

Calabarzon Project 15.41 % 11.33 %

Northern Mindanao Project

15.18 % 11.15 %

Note: WACC 1.51%

Study Report



MAIN TEXT

Study Report Chapter 1 Introduction



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Chapter 1 : Introduction

1.1 Background and Objectives

The Coconut Tree (Coco Nucifera in scientific name) is called “The Tree of Life” because of

the endless list of products and by-products derived from its various parts. It provides a

nutritious source of Meet, Juice, Milk and Oil that has fed and nourished populations around

the World for generations. It is said that nearly one third of the World’s population depends

on Coconut to certain degrees for their food and economy. Coconut is highly nutritious and

rich in Fiber, Vitamins, and Minerals and provides many Health Benefits beyond its

nutritional contents. In some Asian and Pacific Countries, Coconut Oil has been extensively

used in Traditional Medicine with its healing effects.

In the meantime, the Government of Philippines has created new Presidential Degree No.

in the month of January 2009, in order to foster the development of Renewable Energies in

the Republic. This Degree aimed at the improvement of National Energy Security and

encourages the development of Biomass-based Energies as one of the alternative sources of

sustainable energies. Coconut Husk is one of the potential materials of resource to be

developed along with this policy. In fact the Government of Philippines has been involved

various Research and Development activities through the Philippine Coconut Authority for

such purposes.

According to the Coconut Statistics published by the United Coconut Associations of the

Philippines, Inc., Total Nuts harvested in the Republic in the year of 2007 was 14,852.93

Millions. However, residue of the Coconut has been less utilized except the charcoal which

is commonly used for the domestic cocking purposes.

Whereas the NTT GP-ECO communication, Inc., a Consultancy farm of NTT Group of

companies has developed a concept to form Biomass-based Coke from Coconut Husk with

an attempt to explore a possibility to change Coconut Husk into a Coke through

Carbonization Processes so as to be used for Iron Smelting and Steel Casting processes in

the Philippines replacing the imported fossil resources-made Cokes. The primary objective

of the proposed Study is to undertake a Preliminary Feasibility Study along with the Scope

of Works as shown in the following articles.

1.2 Scope of Works

This Study aimed at the formulation of a Bio-cokes Production and Programmatic CDM

Project by utilizing the Coconut Husks in the Republic of Philippines. At present, most of

the Coconut Husks are abandoned except which were used for domestic cooking purposes.

This Project is also sought to be applied as a PoA (Programme of Activity) for securing




-2-

Certification of Emission Reduction (CER) to United Nations Framework Convention on

Climate Change (UNFCCC) under the framework of Kyoto Protocol. This Study shall

among others select the most suitable Bio-cokes Production Systems, recommend necessary

measure to realize, and drawn an implementation plan for the Project by collecting and

analyzing the data and information in the following fields;

・Character and Magnitude of existing Cokes Markets in the Philippines,

・Conditions and Issues that the Coconut Farmer and Industry currently face,

・Availability of Coconut Husks as the Raw Material for Bio-cokes Production,

・Present Logistic Systems for Copra and possible applicability for the Husk,

・Integration of the Proposed Production Systems into the existing Coconut Oil Mill

Systems,

・Potential applicability of the proposed concept for a PCDMP.

1.3 Study Area

The Study Area covers the entire Philippines, but specific focus has been given to two

Coconuts-reach Areas; Southern Tagalog (Calabarzon) and Northern Coast of Mindanao.

Under this Study, two case studies have been conducted within the selected Coconut-reach

Areas; First one for the Case Study based at the premises of Granexport Manufacturing

Corporation located at Illigan City, Lanao del Norte Province, while Second one for Goldex

Oil Mill located at Gumaca City, Quezon Province.

1.4 Study Schedule

This Study has been commenced from July 1st of 2009 and completed on February 15th of

2010. During the Study Periods, the Field Survey has been conducted for two times; the first

one from July 6 to July 15, 2009, while the second one from September 10 to September 16,

2009. The detailed Survey Schedules are shown in the Tables attached hereto as the

Appendix 1 and 2 respectively.

1.5 Study Team Member

This Study has been undertaken by the following Study Team Members whose functions and

areas of responsibility are shown in the following table.




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Table 1-1 Member of the Study Team

No. Name Assignment

1 Junichiro MOTOYAMA,Ph.D.

Team Leader, Legal and Institutional Systems, Economic and Financial Analysis, Project Implementation Plan

2 Antonio HONDA Socio-economic and Power Sector Analysis, Logistic Systems,Cost Estimation

3 Hiroyuki MONOBE Carbonization Producation Systems, Exhaust Heat Recovery Systems

4 Kei NIIDA Clean Development Mechanism(CDM), Carbonization Test

5 Nobuo NAKATA Material Balance Analysis, Technical Advisory

Study Report Chapter 2 Introduction to the Biomass-based Cokes and Its Market



-4-

Chapter 2 : Introduction to the Biomass-based Cokes and Its Market

2.1 Coconut as ““““The Tree of Life””””

The Coconut palm is an unarmed, tall, large palm, growing to a height of 25m for the large

varieties and 4m for the dwarf varieties, with the trunk reaching 30 to 50 centimeters in

diameter, thickened at the base. As the Coconut palm grows, old leave breaks away leaving

annular scar around the trunk. The pinnate leaves 3.5 to 6m long with a stout petiole, with

bright-green leaflets 60 to 100cm long, crown the top of the trunk. Each inflorescence is

polygamomonoecious, that is, it has both male and female flowers. The male flowers are

small and yellowish, while the female flowers are much larger and rounded. Flowering starts

at 5 to 8 years of age for tall varieties, and 3 to 4 years for short varieties, and occurs

continuously, thus the palm bears coconut all year round. Large production areas are in

particular found along the coastal regions in the wet tropical climate in Asia in the territory

of Indonesia, Philippines, India, Sri Lanka and Malaysia. In these countries millions of

people make a living from the Coconut Palm and its varied products. The Republic of

Philippines is the second largest production country after Indonesia with 23.2 per cent share

in the World.

Table 2-1 Coconut Production in major producing countries

Source:http://www.fao.org/docrep/005/y3612e.03htm




-5-

2.1.1 Description of Coconut Tree

The Coconut Fruit has a smooth greenish covering. Within the outer shell is a fibrous hush

2.5 to 5 centimeters. The inner shell is brown and hard. When the Coconut Fruit is still

young, it contains a large amount of fluid or juice, during this stage the Coconut Meat is

ideal to be eaten alone or can be used for salad or can be added with milk for nutritional

drink. When the Coconut Fruit mature most fluid is absorb and its flesh thickens and

hardens.

2.1.2 Industrial Use of the Coconut

All the parts of the Coconut Tree, from root to tip, have unique industrial uses which include

the following:

(1) The Coconut Trunk and Root

Coconut Trunk produces hardy lumbers as well as pulp for papermaking. Out of the coconut

trunk, hardy durable wood is obtained to make benches, tables, carvings, picture frames, tool

boxes, and construction materials, among many others. Paper pulp can also be extracted

from the coconut trunk and other woody parts of the tree. Among the woody parts of the tree,

the trunk gives the highest pulp yield of 43%; and the petiole or the slender stop that support

the leaf, 32%. Tests also show that coconut coir (80%) and abaca bleached sulfate pulp

(40%) are a good combination in the production of offset book paper. Some medicine,

beverages and dyestuff are obtained from the coconut roots. The Root of Coconut Tree may

be used to produce astringents and antidiarrhea, as well as beverages and dyestuffs. Old

Coconut Trunk and Root may be used as a material for the proposed Bio-cokes production.

(2) Coconut Leave, Pith and Inflorescence

Coconut leaves produce good quality Paper pulp, Midrib brooms, Hats and Mats, Fruit trays,

Waste basket, Fans, beautiful Midrib decors, Lamp shades, Placemats, Bags and utility Roof

Materials.

Coconut Pith is considered as a “Millionaire’s salad” and one of the finest vegetables in the

Philippines. It can be served in many appetizing ways. Out of its Pith can be produced Coco

pickles, Guinataan and Lumpia. Its guinit can produce Helmets, Caps, Wooden Shoe Straps,

Handbags, Fans, Pictures and House decor like Lamps Shades and Guinit Flowers for the

table. Cubed in fairly large bits, it may be added to Spanish rice, or in long strips, to Arroz a

la Cubana, the Philippino Delicacies.




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Out of the bud of the coconut tree’s inflorescence is a juice called Coconut toddy or tuba.

The fermented juice is the common alcoholic drink in the coconut region. The fermented

tuba would be a good drink even to those who enjoy finer things. The principal uses of the

toddy are: fresh beverage; for producing alcoholic beverages; for producing vinegar; making

sugar; and a honey like syrup called “Coco Honey” and as a source of yeast for making

bread. Coconut toddy, after being left for 5 days then distilled, produces an alcoholic spirit

known locally as lambanog which is more or less 98% proof. In its taste, sweet toddy is a

liquid containing essentially 12 to 18 % sugar (sucrose). Other products from the coconut

tree’s inflorescence are Gin, Vinegar, Candy trays, and Wall decors.

(3) The Coconut Husk and Shell

Coconut husks are made of bristle fiber (10%), mattress fiber (20%) and coir dusk and shorts

or wastes (70%). Coconut husk are cheap source of firewood, and are also called as bunot,

used for buff waxed floors. Fibers from coconut husks are used in making Brushes,

Doormats, Carpets, Bags, Ropes, Yarn fishing nets and Mattresses, as well as for making

Pulp and Paper. The abundance of fiber makes it good as stable supply for cottage industries

that make brushes, doormats, carpets, bags, ropes, yarn fishing nets, mattresses, etc.

Coir fiber can also be used as substitute for jute in packing rice, copra, sugar, coffee and

sand. It is also suitable for making pulp and paper, etc. For the first time, the Philippines can

export coir fiber to Japan, Germany and the United States with the proper assistance

extended by the Government, the industry being new. Coconut Fiberboard is a novel and

innovative product made up of cement, coir, shredded wood, fronds and other

lingo-cellulosic materials that are available in Coconut farms which are otherwise

considered as agricultural waste. The wallboard which is termite-proof due to presence of

creosote and no binding material is needed as lignin is inherent in the Coconut Husk. The

board produced is as good as narra, plywood or masonite. Coir yarn, coir rope, bags, rugs,

husk decor, husk polishes, mannequin wig, brush, coirflex, and fishnets are other products

that can be obtained from the Coco husk. Out of coir dust can be obtained Coco gas,

Insulator, Insoflex, and Plastic materials and fish nets are other products that can be obtained

from Coconut Husk.

Coconut shell produces the core of the most saleable Household products and Fashion

accessories that can be turned to lucrative, wide-selling cottage industries. Among them are




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shell necklaces, Shell bags, Cigarette boxes, Shell ladles, Buttons, Lamp shades, Fruit and

ask trays, Guitars, Placemats, Coffee pots, Cups, Wind chimes, “Coco banks”, Briquetted

charcoal and Activated carbon. The most important use of the coconut shell is Activated

carbon produced from its charcoal. It is utilized in air purification systems such as cooker

hoods, air conditioning, industrial gas purification systems, and industrial gas masks.

Charcoal made from coconut shells are also used in producing activated carbon, used in air

purification systems such as cooker hoods, air conditioning, industrial purification systems,

and industrial and gas masks. Whole coconut shells, cleaned and polished, have traditionally

been in Filipino culture as coin banks. Both of Coconut Husk and Shell can be good

materials for the proposed Bio-cokes production.

(4) Coconut Meat

The Fresh Coconut Meat is the main raw material to produce buko-pie, one of the famous

local delicacies, and is often used for Salads, Halo-halo (crushed ice with sweetened fruit),

Sweets and Pastries. A Matured Coconut or niyog is used in making sweets and special

Filipino dishes, while the “Sport fruit” of the Coconut is considered as delightful delicacy

and largely used for making preserves and ice cream. It cannot be kept in storage and will

germinate and it has three layers: semi acid, soft and hard meat.

From Coconut meat the following can be processed: Coco flour, Desiccated coconut,

Coconut milk, Coconut chips, Candies, Bukayo or local sweetened shredded coconut meat,

Latik, copra and Animal feeds. Coconut flour can be used as a wheat extender in baking

certain products without affecting their appearance or acceptability. The Coconut milk is

good protein source. Whole coco milk contains about 22% oil, which accounts for its

laxative property. Meantime, other uses of “Sport fruit” have been found, such as facial,

hand and hairdressing creams, shampoo, toothpaste, vitamin carrier in pills, salicylic acid

ointments, sulphur ointments and even muscle pain relievers.

Dried Coconut meat is called as “Copra” that has high oil content, as much as 64%. Coconut

oil is the most readily digested of all fats of general use in the World. The oil furnishes about

9,500 calories of energy per kilogram. Its chief competitors are Soya bean oil, Palm oil and

Palm kernel oil. Virgin Coconut Oil (VCO), taken orally, retards aging, counteracts heart,

colon, pancreatic and liver tumor inducers, and is easy to digest. Coconut oil is also used to

make soap and shampoo due to its high saponification value in view of the molecular weight

of most of the fatty acid glycerides it contains.




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In the detergent industry, Coconut oil is very important. Its most outstanding characteristic is

its high saponification value in view of the molecular weight of most of the fatty acid

glycerides it contains.

An advantageous utilization of the coconut oil as detergent was discovered in a May 1951

study wherein a formulation using coconut oil was found to be an effective sanitizer. Other

products from Coco oil are Soap, Lard, Coco chemicals, Crude oil, Pomade, Shampoo,

Margarine, Butter, Cooking oil and recently Bio-fuel, as it is used in Coconut Methyl Ester

(CME).

(5) Coconut Water

Coconut water, the liquid endosperm inside the coconut fruit, can be used in making

Coconut Water Vinegar, Coconut wine, and chewy, fiber-rich Nata de coco, good as a dessert

and as a laxative. Coconut water can also be used as a growth factor and as a substitute for

intravenous fluid or dextrose. The Coconut water has been however largely thrown away

during copra making and becomes great waste.

Another breakthrough use is the Coconut Water Therapy to cure renal disorders. “Bukolysis”,

as it also called, is the medical process of reducing or dissolving urinary track systems using

buko water from 7 to 9 months old of Coconut. For preventive medication, water from one

mature coconut consumed daily, could almost guarantee that the formation of stones in the

urinary tract will be avoided. To those already afflicted, the Coconut water is commonly

promoted as an economical thirst quencher, hunger satisfier and medical cure for renal

disorders all in one.

Using coconut water, a nata de coco-like growth produced after 14 days which, when cooked

in syrup, is a popular dessert. When mixed with other ingredients, like the making of fruit

salad, it is will enhance the flavor of the dish. This nata-like growth is dextran and can be

made thoroughly to comply with the specification for clinical dextran, and then we have in

the coconut water an important contribution in the atomic defense against radiation sickness.

2.1.3 Philippine Coconut Authority (PCA)

The Philippine Coconut Authority (PCA) was created pursuant to Presidential Decree 232 on

June 30, 1973. It absorbed and assumed the Powers and Functions of the previous Coconut

Coordinating Council (CCC), the Philippine Coconut Administration (PHILCOA) and the




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Philippine Coconut Research Institute (PHILCORIN). In view of this development, the

Government of the Philippines deemed it necessary to create an agency that would address

that situation, thus the PCA was created on June 30, 1973 by virtue of P.D. No. 232. It

absorbed and assumed the powers and functions, including the personnel and assets of the

then defunct CCC, PHICOA, and the PHILCORIN.

PCA became an independent public corporation on July 14, 1976 pursuant to P.D. No. 961,

reporting directly and supervised solely by the Office of the President. This decree was the

first codification of the laws dealing with the development of the coconut and other palm oil

industry. The Code was later revised on June 11, 1978 by P.D. No. 1468 (“Revised Coconut

Industry Code”) which eventually became the charter of PCA as a public corporation.

Finally, on January 30, 1987, pursuant to Executive Order No. 116, the PCA was officially

declared as an attached Agency of the Department of Agriculture (DA). The declaration of

transfer to DA from the Office of the President was enacted to provide overall coordination

and monitoring of policies and programs of various sectors in agriculture. The attachment

was confirmed and incorporated in the Administrative Code of 1987.

Today, PCA is the sole Government Agency in the Republic that is tasked to develop the

industry to its full potential in line with the new vision of a united, globally competitive and

efficient coconut industry. Considering the situation, the Study Team has approached to PCA

requesting the functions of counterpart in the Philippines for conducting the Preliminary

Feasibility Study on the production of Biomass-based Cokes from the Coconut Wastes in the

Philippines, and they have duly undertaken such functions and fully supported the Study

Team.

2.1.4 Jurisdiction and Organization of PCA

(1) Organizational Structure

Headquarters of PCA is located at Quezon City, Metro Manila, with total staff complement

of 1,741 while currently only 1,372 staff are employed to provide the designated Services

down to the Municipal level. PCA’s Regional Offices are strategically located within 12

Coconut Regions, 69 Provinces and 1,419 Municipalities. 90 % out of such staff are

technical, extension and research specialists. Physical Infrastructures of PCA include three

(3) Research Centers in Albay, Bicol, Davao and Zamboanga in Mindanao and Extension




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Training Center in Davao. Organizational Structure of PCA is illustrated as under:

Source: http://www.pca.da.gov.ph/orgstruc.php

Fig 2-1 Organizational Structure of PCA

As illustrated in the Figure No. herein above, the Governing Board is the sole and final

decision-making institution for PCA. The members of the Governing Board consists of 6

Members and the Chairman who is the Secretary of the Department of Agriculture,

Government of the Philippines. Meantime, day-to-day Operations of PCA is undertaken by

the Team of five (5) key officers; Administrator being the Leader of the Management Team,

and four (4) Deputy Administrators responsible for the Groups of Research and

Development, Trade and Marketing Development, Field Services, and Corporate Services

respectively.

(2) Major functions of PCA

PCA has been established with the Mandate to oversee the development of the Coconut and

other Palm Oil Industry in all its aspects and ensure that the Coconut Farmers become direct

participants in, and beneficiaries of, such development and growth, according to the Article I,

Section 2 of the Presidential Degree No. 1468 (Revised Coconut Industry Code). Under this

Degree, PCA is given, among others, the following five (5) major Functions and

Responsibilities;




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1. Formulate and Promote a Strategic and Comprehensive Development Program for

the Coconut and other Palm Oil Industry in all its aspects;

2. Implement and Sustain a Nationwide Coconut Planting and Replanting,

Fertilization and Rehabilitation, and other Farm Productivity Programs;

3. Conduct Research and Extension Works on Farm Productivity and Process

Development for Product Quality and Diversification;

4. Establish Quality Standards for Coconut and Palm Products and By-products; and,

Develop and Extend the Domestic and Foreign Markets;

5. Enhance the Capacities and ensure the Socio-economic Welfare of Coconut and

Palm Farmers and Farm Workers.

In order to implement these functions, PCA being a Public Corporation, is requested to

perform their Operations along with a Mission to Promote the development of a globally

competitive Coconut and Palm Oil Industry that would contribute to Food Security,

Improved Income and Enhanced Participation of stakeholders.

The proposed production of Bio-cokes from the wasted Coconut Husk will be qualified as a

Project that can satisfy the Function and Responsibility No. 3, No. 5 and the Statement of

Corporate Mission.

2.1.5 Significance of Coconut Industry

The coconut is called “The Tree of Life” because of the endless list of Products and

By-products derived from its various parts. Food, shelter, fuel, and daily household items –

name it, the Coconut has it. As stated in Chapter 2.1, the Philippine is the second largest

producing country of Coconut in the World. Thus, the Coconut industry is a dominant sector

of Philippine Agriculture. According to the Coconut Statistics in the year of 2007, about

3.258 million hectares out of the 12 million of farmlands are devoted to Coconut cultivation

which accounts approximately 27% in the entire cultivated lands. There are around 331




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million bearing coconut trees in the country which spread into 1,1,95 coconut municipalities

within 68 out of 79 Provinces nationwide. Annual average Coconuts harvested within the

last ten (10) years is approximately 14 Billion and approximately 43 Coconut were

harvested from one Coconut Tree in average, which is lower than that of other country such

as Malaysia. The figures and trends in the Coconut Production in the Republic in the last ten

(10) years from year 2007 are summarized as follows;

Table 2-2 Production of Coconut in the Philippines (1997- 2007)

Source: http://www.pca.da.gov.ph/cocostat.php#production

Coconut farms are widely distributed nationwide, largely in regions of Southern Luzon, in

the North and Mindanao in the South. 69 out of 79 provinces are Coconut areas. There are

3.5 million Coconut farmers in the Philippines, and about 25 million Filipinos are directly or

indirectly dependent on the Coconut industry.

The Philippine coconut industry provides an annual average of 5.97% contribution to the

Gross Value Added (GVA) and 1.14% to the Gross National Product (GNP) of the

Philippines, and accounts for a 59% share of global coconut exports. It is among the top 5

foreign exchange earners, with an average of US$ 760 million per annum. This foreign

currency earner provides livelihood to one-third of the Country’s population.




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Table 2-3 Domestic Use and Exports of Coconut (Copra)

(2001 – 2007)

YearYearYearYear Domestic UseDomestic UseDomestic UseDomestic Use ExportsExportsExportsExports

2001 0.513 2.449

2002 0.513 1.767

2003 0.506 2.171

2004 0.444 1.792

2005 0.468 2.144

2006 0.666 2.034

2007 0.625 1.608

In Mill MT(Copra Terms)

Source: Assembled from various figures released by PCA

2.1.6 Philippines Laws and Regulations Relating to Coconut Industry

There are two (2) important laws and regulations in relation with the Administration of

Coconut Industry; (1) Coconut Preservation Act of 1995, and (2) Bio-fuel Act of 2006.

Republic Act No. 9367, also known as the “Coconut Preservation Act of 1995”, prohibits the

cutting of coconut trees except for any of seven grounds specified in the law and only after

the issuance of a permit by the Philippine Coconut Authority (PCA).

Republic Act No. 9376, also known as the “Bio-fuels Act of 2006” was approved on January

12, 2007 and took effect on May 6, 2007. It mandates a minimum of 1% bio-diesel by

volume blended into diesel engine fuels sold in the Philippines. This percentage would

increase to 5% in 2 years and 10% in 4 years. Bio-diesel refers to Coconut Methyl Ester

(CME), and it is called as Coconut Bio-diesel or Coco Diesel.

2.2 Introduction to the Biomass-based Cokes made by the Coconut Wastes

Cokes and charcoal indicate almost same thing, but these can be called distinctly, cokes in

case that the fixed-carbon of it is more than 80 percent, and charcoal less than. And, in

terms of application, it is called cokes for industry use such as iron manufacturing, charcoal

for fuel.




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In terms of standard, cokes are defined in detail more than charcoal. In fact, the grain size

of cokes is smaller than charcoal generally, because cokes are needed to be high carbonized

charcoal, and uniform size of its powder.

Cokes are generally made from coal, but also it is possible to be made from cellulose

biomass. Until a few years ago, the cellulose biomass as an agricultural residue have not

been used well, although it is recently useful on various fields and the amount of used

biomass is increasing.

In this study, utilization of the Cellulose Biomass derived from Coconut Husk is the center

place and try to transform these resources to Biomass-cokes as an alternative to fossil cokes

for the use of Steel Smelting and Foundry Industries in the Philippines.

The outline and required specifications of Cokes for Electrical Furnace use are indicated in

the following table 2-4.

Table 2-4 Specification for Bio-Cokes derived from Coconut

1 Grain

This value is carbon grain which is used as activated carbon in local

(standard size, Large:3.3-8mm, Medium:2.0-3.3, Fine:0.1-2.0mm)

Large for reduction, Fine (Pulverized cokes) for fuel by blowing.

2 Carbon

intensity

More than 85%

Higher Heating Value is preferable but balanced carbonization is important. In

general, Coke with higher Volatile performs higher Heating Value.

3 Hardness

Harder one would be recommended because of alternative to cokes, but there is no

standard. Pulverized cokes could be softness, because it will be used in the form of

powder.

4 Volatile Maximum 8% of Volatile is allowed within the Biomass-cokes for the use of Steel

Smelting. The Volatile Ratio of Fossil Cokes is 1% only.

5 Density

Although it is not required as a part of Industrial Specification of the Cokes, the

Density of Fossil Cokes is 1%, thus, the similar figures may be required as an

alternative to the Fossil Cokes.

6 Fineness

For the use of Powder Cokes for Electric Furnace, Grain Size is not sensitive matter

for the biomass-cokes. Cokes for the Electric Furnace is used to be grained into

smaller sizes before being browed into furnace.

7 Activated

intensity

No need

8 Pollution

Coconut trees are grown alongside the coast line and contain considerable amount of

chlorines. Certain countermeasures shall be taken during the process of Biomass-coke

production for deducting sulfurs and dioxins from the exhaust gases, but no specific

measure is required when the Biomass-coke is used in the process for the Smelting.




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9 Quality

If Carbon content is less, it influences to the capability for Reduction. Although it is

not clearly defined by the authority, it is recommended that the Biomass-cokes shall

be used in commensuration with Fossil Cokes, ratio of the Fossil Cokes shall be

minimum 40% of the entire Cokes.

10

Cokes

/Electricity

consumption

Default figure for smelting Steel Scrap per one ton is 30 kgs., however, it will be

fluctuated by operators of the furnace. Electricity Consumption shall be correlated to

the amount of Carbon contents.

11

Material

supply / stable

supply

Since the growers of Coconut Trees are small holder, it is required to conduct a

detailed survey on the procurement and logistics of Husk. There is no data on the

production and distribution and it is recommended to conduct a survey on the logistic

systems of Coconut Products in particular on the functions of the Middleman and

Coconut Growers Cooperatives. If the proposed Biomass-cokes can be used for

Smelting Furnace, there will be great amount of demands for Biomass-cokes and

consistent supply of the Husk became essential.

12 Carbonization

method

It is difficult to produce the cokes by traditional method because of the need of higher

temperature. It may be needed to consider the revised traditional garden carbonization

method which is under lower temperature relatively.

13 Price

The price of imported cokes from China is likely to increase up to 15,000JPY/t, but

marketing price may be 25,000JPY/t. Whether the price of husk cokes which is

carbonized and transported can be stable to supply.

As shown in the table 2-4, consistent supply of the materials (Husk) and its quality are

matter of consideration.

It is indicated split fruit of coconut and possible to carbonizing or coking region on figure

2-2.

SPLIT FRUITWHOLE FRUIT

Source: Technical Data Handbook on the COCONUT by Philippine Coconut Authority P17

Fig 2-2 section of Coconut and possible part to the Cokes

Coconut shell is optimum region for material of cokes and it is easy for molding to cokes,




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though the rate of yielding is low. Because shell is used for copra dry heat source, fuel of

boiler, charcoal fuel for cooking and for export, cause of shell already has material of

activated charcoal and having high calorific value.

Meanwhile, husk is rich in fiber cellulose and the fiber is commonly used for bond or mat.

Residue amount of total husk is less than 0.5 percent. That is the reason why most of husk

is disposed. The husk made up 35-40 percent of the weight of coconut (at harvesting time).

In addition, husk is made from fiber which is called as Coir and consists approx. 40 per cent.

The others are made from powdered state between fiber which called Dust or Coco-peat that

contribute approx. 60 percent. Figure 2-3 is the operation of detaching husk and coir.

The coir and dust have not transformed carbonizing and coking yet, it turns out that both

materials could be transformed to perfect cokes if using certain carbonizing technology

developed in Japan. As a result, husk was picked up as the material for Coke on this

Survey.

The operation of detaching husk and discarding husk

Fruit inside Shell

Coir and Dust

Whole Fruit

Fruit inside Shell

Fig 2-3 Coir (left) and Husk removing from coconut (right)

It is possible to estimate the existing volume of husk with each parts of fruit yield. (Table

2-5. The Weight and Component rate of husk). On this report, the following values on

the Coconut will be used for analytical purposes.

Table 2-5 weight and component rate of husk

Classification Weight(g) Name Weight(g) %

Coir 165 16 Husk 413

Dust 248 23

Shell 177 17

Copra 339 Meat 180 17




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Oil 112 11

Albumen 47 4

Juice 124 12

Total 1,053 100

Husk

39%

Juice

12%

Kernel or

Copra

32%

Shell

17%

Source: Technical Data Handbook on the COCONUT by Philippine Coconut Authority

The amount of coconut production in Philippines is 14 million ton per year; husk is 39

percent, that is, 5.46 million ton. The carbide of husk is 1.09 million ton if the yield is 20

percent. In addition, the amount of fixed carbon of the carbide and the yield are described

later.

2.3 Surrounding Environment for the Introduction of Biomass-based Cokes

Under this chapter, it describes various terms surrounding the biomass-derived cokes with

analyzing product trend of coconut and supply-and-demand.

2.3.1 The trend of coconut production

The amount of husk which is material of cokes is proportional to the amount of coconut

production. Although, the amount of coconut production have been reduced for a few

years.

Coconut industry in the Philippines is facing with prosperity or declination.

It is attributed the possibility of declination to the amendment of Agricultural Land Act. If

it is amended Agricultural Land Act, the owner of coconut farm have to allocate their land to

peasants. For that reason, it is possible that the owner think cutting coconut trees and




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selling them are better than new investing to coconut farm.

Meanwhile, it is attributed the possibility of prosperity to the renewable energy law.

According to the law, the gas oil of bus which is public transportation shall be shifted to

bio-fuels at least 3 percent (however, any derived bio does not matter). Therefore,

bio-diesel production has been highlighted. And coconut oil production will accelerate in

the future, because Coconut is the only candidate for bio-diesel material in the Philippines

now. Although there is no telling that which is stronger effect, the amendment of

Agricultural Land Act or the renewable energy law. In fact, the production capacity of

coconut oil mills has not been working more than 50 percent (that is, the production has

been reducing). The following figure 2-4 is the production ratio of the amount of copra

production and oil mills. It means that the amount of coconut production has been going

sideways or reducing slightly because the amount of copra production is proportional to the

amount of coconut production. And the operational ratio of oil mills has also been

fluctuated at around 50 percent.

Source: Coconut Statistic 2007, United Coconut Association of the Philippines, Inc P28 Fig 2

Fig 2-4 Copra production amount and installation utilization

The issues of the Coconut Products in the Philippines are as follows.

The owners of Coconut plantation have been operating themselves as a small holder and

they occupy about 30 percent of growing area and covering about hundreds of hectares.

And the other about 70 percent of growing area which is divided less than a few hectares are

entrusted to peasants. Almost these peasants have dual jobs, working in the Coconut Farm

and working as fisherman. Unlike Palm Oil production which is operated on a larger scale,

Coconut farm is smaller scale than that of the Palm farm.




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There are two scales in Coconut Oil Mills. In the large-scale oil mills, kernel which was

removed husk from fruit is collected. The fruits which are collected to the mills are

including copra, shell and juice. Copra is cut after dried, heated and milled oil. Coconut

oil which was milled oil is called coarse coconut oil. It is transported to purification

process, and processed to end products like virgin coconut oil. Oil cake which was

remained after milling is sold as feed. In addition, shell is carbonized and sold as material

of activated charcoal, moreover surplus shell is used as fuel on copra drying process or oil

mill process. Juice is used as material of coconut milk or disposed. In this way, oil mills

are managing diversified.

Meanwhile, the small-scale oil mills are only milling oil, and coarse coconut oil is sold to

refining plant. That is, the small-scale oil mills buy dried copra and mill oil, and the oil

cake is sold as feed. Although it is necessary to heat copra around 300 degree before on

milling oil process, the small-scale oil mills have used hot air burner with fossil fuel as heat

source of copra and it is not necessarily the case that they have used coconut residue such as

shell.

Copra is dried in each Farmer or Copra Buying stations. Heat source for drying is basically

by Sun and sometime Coconut Residues such as shell or husk are used also. For drying by

heat, flat bed dryer is used for drying process. Husk can not be processed as

Biomass-cokes when it just has been removed from the tree, because the moisture content is

very high.

The intermediary who is called Middleman intermediate for collecting and transportation

dried copra. Middleman buys dried copra from farmer when picking season of coconut

fruit three times a year. In addition, Middleman supports farmer financially by paying

advance money to farmer, supplying fertilizer and teaching cultivation. Oil mills contract

with a few hundred of middleman (but they are not exclusive) in order to collect dried copra

all around the year.

Copra Buying stations have some forms which are managed by owner of the Formers’

Co-operatives, and managed directly by large-scale Oil Mills. Generally, there are not group

of coconut farm, but middleman has been active on collecting.

As a result, it turns out that husk is less-utilized on the process of coconut products. Husk

is left outside on farmer’s house or coconut farm, or rarely used for fiber or dust uses.

Therefore, it seems that the amount of husk production will go sideways in the future, unless




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the drastic promotion policy is being introduced.

2.3.2 The amount of the Productivity of Coconuts-originated coal

Classification Weight(g) %

413 39

Coir 165 16 Husk

Dust 248 23

Shell 177 17

339

Meat 180 17

Oil 112 11 Copra

Albumen 47 4

Juice 124 12

Total 1,053 100

Husk

39%

Juice

12%

Kernel or

Copra

32%

Shell

17%

In the Philippines, coconut farm land is about 3.2 million hectares in area, and coconut fruit

production is 14 million tons per year. Therefore, as shown in the table 2-5, the amount of

shell production is 2.38 million tons (17 percent) per year. Shell-derived charcoal is

470,000 tons if the carbonization yield is 20 percent ratio by weight. Also, Cokes which

carbon ratio is 85 percent will be produced about 390,000 tons, if shell-derived charcoal

which carbon ratio is 70 percent.

Meanwhile, there are two types of husk-derived charcoal, one is husk itself and the other is

dust (a part without fiber coir). As shown in the table 2-5, the amount of husk production

is 5.46 million tons (39 percent) per year. Husk-derived charcoal is 1.09 million tons if the

carbonization yield is 20 percent1). Likewise, the amount of dust production is 3.22

million tons per year, dust-derived charcoal is 640,000 tons per year if the carbonization




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yield is 20 percent. However, the 20 percent carbonization yield is the value in the case of

self heating-type Carbonizer, and about 27-30 percent in the case of outer heating-type

Carbonizer. In cokes equivalent, husk-derived cokes is 890,000 tons, dust-derived cokes is

520,000 tons. In this survey, it is supposed to alternate cokes with pellettized charcoal.

According to the statistics, Coir for consumption in the Philippines is about 1,000-1,500 tons,

for export market to other countries is about 1,000 tons. It is about 7,000 tons in husk

equivalent, considering the amount of husk production in the Philippines is 5.46 million tons

per year, about 99.8 percent of husk is not used.

Then it is estimated that the amount of usable husk from transport point of view. It is not

easy to transport husk, because about 50 percent of the farm land is located far from roads

side. Therefore, the remaining about 50 percent is realistically useful for further processing.

Under this assumption, it is estimated that available husk for processing is about 2.73

million tons, carbide is about 540,000 tons and cokes is about 440,000 tons. Besides,

coconut farm which is along the main roads is about 15 percent of the total farming area, the

accumulated amount of husk is estimated as 810,000 tons; carbide is 160,000 tons and cokes

is 130,000 tons. It is anticipated that the volume of such husk can be transported easily.

2.4 Potential Market for the Biomass-based Cokes in the Philippines

2.4.1 Needs for the Biomass-based Cokes

The largest consumer of cokes in the Philippines is steel plant. (It is used for chemical

industry or gas for fuel, but it is very miner.) Steel plant in the Philippines is not the one

which has blast furnace but the other one which manufactures carbon steel with melting

scrap steel in electric furnace. In the Philippines, there are 12 this type of steel plants, the

total capacity of production is 1.2 million tons per year.

There are two ways for cokes use of electric furnace which are materials for reduction and

fuel use. First of all, on materials for reduction, it is used 20-30 kilograms cokes per ton of

scrap steel. Accordingly, it is necessary maximum of 36,000 tons of cokes for Philippines

as a whole. However, the amount of bio cokes demanded is up to 20,000 tons because steel

plants want to use 1 to 1 relation between coal cokes and bio cokes in order to keep quality

of cokes. Meanwhile, for fuel use, it is used instead of coal fines. It is only Steel Asia in

Calaca which has breeze injector. According to the company, the annual consumption is




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3,500-4,200 tons, but the demand will be 7,000-8,400 tons if they add one more same

injector in the future. If it is used 1 to 1 relation between coal cokes and bio cokes, the

amount of demand is about 5,000 tons.

Therefore, the amount of utilizable bio cokes of all steel plants in the Philippines is 25,000

tons per year. And there are enough for 50,000 tons if all coal cokes are alternated to bio

cokes. Incidentally, the amount of bio cokes production which derived potential coconut

husk in roadside farm is 130,000 tons.

Besides this, there is a method for utilization that they import iron ore from Brazil, and

sintering processes in Cagayan de Oro, Northern Mindanao, then export it to JFE Steel

Corporation in Japan. Philippine Sinter Plant is the only one in its kind. Essentially, it is

not necessary cokes on sinter operation process, but JFE Mills in Japan has surplus of Fossil

Cokes in this recession of late years, so Philippine Sinter Plant uses 100,000 tons of Fossil

Cokes per year which is imported from JFE Japan as for their sintering processes. The

blend ratio of cokes and powdered coal is 20 percent of cokes and 80 percent of powder coal.

They use the powder coals by adjusting the grain size. The company once considered

kernel coal from Malaysia oil palm to replace the fossil cokes, but they have not planed to

use it now. Because firstly varying in quality, secondly it has varied calorific value, and the

size and the contamination are different by each supplier, lastly the price is relatively

expensive, and the like. It is however considered that Philippine Sinter may use

Biomass-cokes for their vertical furnace where burns the gypsum, because it does not

require stricter standards in quality control. At present, they use coal which imported from

Viet Nam for fuel with heating slacked lime. If Biomass-cokes are cheaper than these coals,

it may replace with imported coals for the magnitude of approx. 400-1,700 tons per year.

Currently, the part of coir of husk is used for cooking fuel, packing material, honeycomb

board for construction use, filter, mat, net for preventing erosion of the slope, gardening

material and like that. However, the domestic utilization volume is 1,500 tons and the

volume of exports is 1,000 tons because each market is too small. If it is used as husk, it is

equivalent to 7,000 tons.

The conclusion of this paragraph is as follows.

○ Supply quantity




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Coconut-derived husk and cokes which can get from agricultural land (equivalent to 50

percent of all the Coconut Growing area) without difficulty to transport are 440,000 tons.

Among them, coconut-derived husk and cokes which are from farm in convenient place are

130,000 tons.

○ Demand quantity

On the other hand, the demand quantity for alternative Cokes in steel plant is maximum of

50,000 tons (including powdered cokes for injector), alternative fuel coal for sinter furnace

is 2,000 tons. The total is approx. 52,000 tons. This is fewer than about 15 percent of

available supplies 130,000 tons.

2.4.2 Supply amount in northern Mindanao and Calabarzon

This chapter describes about supply quantity of husk and cokes in northern Mindanao and

Calabarzon which are surveyed under this study.

There is Treasure Steelworks Corporation which was reorganized from the former public

steel plant located at Iligan in Mindanao, the biggest in its kind in the Philippines. The

Steel Smelting capability of Treasure Steelwork Corporation is about 300,000 tons per year.

If it is necessary to product 1 ton of pig iron is 25 kg of cokes, the necessary quantity of

cokes is 7,500 tons per year. On the other hand, the amount of coconut product in northern

Mindanao is 1.6 million tons per year. According to the same estimate, available supplies

of husk and cokes are 15,000 tons. This is equivalent to double scale of the demanded

quantity. Moreover, the supply quantity become four times, if the mixed combustion ratio

of husk and cokes is 50 percent.

Steel Asia which is located at Calaca District in the Province of Batangas, the center of

Calabarzon is a sophisticated plant, and they product 300,000 tons of pig iron per year as

well. The demanded quantity of cokes is 7,500 tons, because the amount of pig iron

production of Steel Asia is similar to that of Treasure Steelworks Corporation. Additionally,

Steel Asia, the demanded quantity of powdered cokes for fuel use is up to 8,400 tons, there

are 16,000 tons of demand cokes in total as described above. The annual demanded

quantity of cokes is 8,000 tons, if the mixed combustion ratio is 50 percent for any use.

Meanwhile, the supply quantity of husk and cokes are 11,000 tons because the amount of

coconut production in the same area is 1.2 million tons. This is slightly more than the

demanded quantity of the Cokes for Steel Asia. There is a possibility that the real supply

quantity is more than 11,000 tons because Calabarzon area is almost flat ground and unlike




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Mindanao, then it is estimated that the farm area which can be transported easily is more

than 15 percent.

2.5 The Carbonized Coconut Husk as Source of Alternative Energy

There are many uses for carbonized coconut husk except alternative cokes for steel

manufacture.

2.5.1 Heat source usage in the oil mill factory

Heating Dried Copra

Source: Granexport Manufacturing Corp. in Illigan

Fig 2-5 heat usage in oil mill factory

In the process of Coconut Oil Mill, dried copra is heated around 100 degrees Celsius, hard

fat inside copra is melted, and squeezing oil. For heating, coconut shell is burnt for fuel by

boiler, producing steam (1.1 atmospheres, around 110 degrees Celsius), then drying it by




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this.

Shell of Coconut becomes material for activated charcoal. The amount of export of

shell-derived charcoal is about 30,000 tons in 2007, and material shell equivalent is about

300,000 tons. Besides, shell-derived charcoal is about 25,000 tons per year, and material

shell equivalent is 100,000 tons. Therefore, the total of activated charcoal and charcoal is

400,000 tons, and it is estimated that shell-derived charcoal is about 500,000 tons when

including within Philippines demand. The amount coconut product is 17 million tons per

year in the Philippines, and shell is 2.89 million tons per year. In addition thereto, the

amount of additional Husks which are in the easy transportation is 430,000 tons being

equivalent to 15 percent.

The demand for activated charcoal is high in overseas, Japan has been importing it more

than 100,000 tons from China and the Philippines, and Japan has been exporting it with

reprocessed. Japanese companies are actively involved in its production in Mindanao, and

Korean companies seem active in the other area. From these phenomena, it seems that the

demand for Coconut Shell as material for activated charcoal will expand further in the

future.

The volume density is slightly small to use husk as alternate shell, it is difficult to use on its

own. However, it will become fuel with as heating value as shell by carbonizing. The ash

percentage of shell is 2-3 percent, it is lower compared to that of husk which is 4 percent,

and generating heating value is higher, because it includes the essence of Oil. That’s why

shell is suitable for material of activated charcoal.

Secondly, it is contemplated that the carbonized husk may be used as fuel for activated

charcoal making. Granexport Manufacturing Corporation in Iligan which is the biggest oil

mill in the Philippines, are building an experimental plant under the technical assistance

from Korea, for the activated charcoal. The production process for activated charcoal is,

firstly to carbonize the Shells by surplus of steams from drying copra process. Secondly, it

is imposed heating steam, and it becomes activated charcoal. It is possible to produce

activated charcoal with husk instead of shell.




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Fig 2-6 carbonization furnace on the construction in oil mill factory

2.5.2 Fuel gas usage for small scale power generator

In general, on the biomass carbonization, it is produced hydrogen, carbon monoxide and

traces of methane under carbonizing process. If this calorific value of generated gas is

1,000kcal/m3, it is possible for generating 0.5kW. The rural electric ratio of the

Philippines is about 60%, and it is also said that the electric ratio of coconut farm is low

because their income is lower than that of the average.

It is possible to generate electricity for night-time lighting level by carbonized coconut husk

which is produced by coconut farm in their yard.

In addition, generate electricity by charcoal is developed shift reaction by remaining many

volatile portions on the charcoal. As a result, it is not necessary to increase fixed carbon

because it may be produced methane or hydrogen. Therefore, the quality of charcoal is no

object.

Gasification furnace

Gas engine

Fig 2-7 rice husk gasification and 20kW power generator in Nueva Ecija




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2.5.3 Heat source for drying Copra

The moisture ratio of copra which is soon after harvested is more than 60%, but it will be

become less than 16% at the time of selling to oil mill, and it can so sell at a high price as to

be less the moisture ratio. 8% copra was 177PP/kg on standard price. In case of drying

copra on a farm, it is used for sun drying method. Then, in the rainy season, it may be used

for flat bed dryer whose heat source is used for husk. The amount of husk which is used is

about 40% of the total, and the remaining 60% is disposed. In this project, husk which will

be disposed is used for material of carbide. (Drying copra is in the workplace where

farmer pick up copra. Therefore, husk which is not used for drying copra is disposed

(abandoned) in the workplace. When carbonizing husk, it is handled not only picking up

copra but also mincing as preprocessing of carbonizing and packing. It is possible to cut

down preprocessing operation.)

As observed above, it is possible to make efficient use of husk charcoal as heat source for

drying, for steam generation or fuel for gasification power generation other than cokes

alternate which is supposed in this survey. Especially, it is considered for effective

measure which is husk charcoal as gasification power generation when farmer generates

electricity on their own. There are many demonstration plants for similar biomass

gasification power generation.

Shell

Husk

Fig 2-8 flat bed type dryer for Copra and Coconut husk, shell as fuel

Study Report Chapter 3 Profile of Biomass-based Cokes Production Project



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Chapter 3 : Proposed Biomass-based Cokes Production Project

3.1 Technical Profile of Biomass-based Cokes Production Systems

The manufacturing process for Biomass-cokes and Charcoal are the same, but each fixed

carbon contents are different. If the carbonization time became lengthen and reduce volatile

materials, the amount of carbon per unit weight will increase. Through the process control of

heat and time, fixed carbon content within the products can be controlled as shown in the

following figure. And coking can be solved within unique technology. For example,

bincho charcoal is perfect cokes.

Carbon rate, Yield, Density, Hour rate etc.

C %

Y %

C%

density

hour

Y%

vinegar

tar

gas

Temp

Temp

20

40 App. Zone for gasifier

App. for product

Hearing value max.

Fig 3-1 carbon rate, yield and density at hour rate

3.1.1 Preparation for the carbonization

Husk is very brittle. Therefore, the shape of husk charcoal is not fixed. And it is

preferable from the point of view of heat transfer that carbonizing after cutting and the shape

is fixed finely because husk has much coir and dust (For example, cut in piece). It can be

fixed finely by a crusher or manually in the pretreatment process.




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Fig 3-2 the 12 segmented husk before carbonization

Besides, if the moisture of ratio of husk is higher than 30 percent of nature limit, it is

preferable to dry it by sun-drying method in advance, because it reduces required heat values

at the following drying processes. Meanwhile, sometimes dry it by the heat generated by

the fires made at flat bed dryer forcibly as shown in the figure 2.7. In this case, it is used

dried husk for heat source.

3.1.2 Carbonization process

There are two different types of carbonizing systems; the Batching Systems for smaller

(medium) scale and the Continuous Systems for larger scale. And there are two types of

heating method; Self heating type carbonizer and Outer heating type carbonizer.

Garden carbonizing is small scale batch self heating type carbonizer. Figure 3.3 is the

illustration of rice husk carbonizing in the yard. As indicated by this figure, rice husk is

crushed (the left figure), carbonized (the central figure). Husk also can be carbonized by

the same scheme. It is difficult to produce cokes by carbonizing in the yard.

Source: Philippine Rice Research Institute rice husk carbonization 2002

Fig 3-3 garden carbonizing for rice husk in Philippine - small scale batch type -

Figure 3.4 is a case of medium scale carbonizing in the yard of eucalyptus chips, it is




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carbonized for three or four days by earthen furnace. In general, about medium scale batch

carbonizing, charcoal makers often have a few earthen furnaces. In this method, it is

suitable for coking because we can adjust the fixed carbon content by carbonizing time.

Fig 3-4 middle scale batch type garden carbonization for Eucalyptus in Thai land

Below is a chart that example of large scale continuous. It is, as shown on figure 3.5,

biomass is put into carbonizing furnace continuously by screw conveyer or like that. It is

the structure that thrown biomass is moving in the furnace with agitating, and it is being

carbonized during moving. Moreover, self heating type carbonizer is the method that the

volatile matter occurs to become combustible gas, and it is burned, then providing heat

necessary to carbonize. In addition, charcoal is put out continuously by screw conveyer or

like that, and finally, it is cooled to become product by cooling water.




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Fig 3-5 Continuous type carbonization furnace by self heating（（（（left: Philippine, right: Japan））））

The combusted combustible gas when it is carbonized become waste gas and it is emitted

from smokestack, the temperature is more than 800 degrees at that time. The next figure

3-6 is the flow chart of facility which combined waste heat recovery boiler and steam

turbine generator with carbonizer.

Flow Chart

Wood factory

wood

Storage

Charcoal

Storage

Carbonizer

Charcoal

Extinguisher

Waste Heat

Boiler

Chimney

Turbine

Generator

Electric

Power

Source: Kansai Industry Corp.

Fig 3-6 Large scale continuous type carbonization furnace with self heating

Figure 3-7 shows the inner structure of carbonizer. In addition, it is essential that a filter for

pollution control or like shall be installed. The location of the Scrubber for internal heating

type carbonization furnace can be seen in fig.3-7.

Source: Kyoritu




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Fig 3-7 Continuous type carbonization furnace by self heating

Concerning the yield of coke charcoal, self heating type carbonizer is 18 percent, and outer

heating type carbonizer is 25 percent. Self heating type carbonizer is suitable for

developing countries because the structure is simple, and therefore, in this Study, preference

is given to the self heating type carbonizing systems.

3.2 Integration of the Production Systems to the Existing Coconut Oil Mill

Systems

3.2.1 Oil mill process and heat flow in large scale oil mill factory

Figure 3-8 shows typical diagram of the processing flow of the Coconut Oil Mill and is a

case that illustrates heat utilization, exhausted gas recovery systems by heat exchanger at

large oil mill in general.

Tank Cake

Copra Storage

House

Cut in

pieces

Cook to

soften copra

Expeller

Filter

Excess Biomass Residue

Biomass boiler

Oil Mill

Heat

Heat reductionCopra drying

Fig 3-8 heat flow in oil mill factory

The steam that was generated by biomass boiler is sent to copra warming device which

called cooker. Copra in cooker is warmed to 110 degrees for 2 hours. The oil leak out of

copra, and copra is transferred to oil mill. The oil which is squeezed out by oil mill is

filtered and stored in the tank. The steam which used in the warming device is sent to

copra drying device through oil mill.

The moisture content of the Copra which purchased is about 16 percent, but it is dried until

about 8 percent before being processed at the Oil Mill. Besides, shell is used for drying




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husk incrementally.

In Granexport Manufacturing Corporation in Iligan which is the biggest oil mill in the

Philippines (the processing capacity is more than 800 tons per one (1) day, and the operation

rate is less than 50 percent), about 1.1 bar steam is produced by biomass combustion boiler,

and copra is warmed by this steam. Furthermore, in this mill, it is planned to use for

activated carbon production by heating steam. In addition, it is planned to use as warming

copra and heat source for activated carbon production, and also recovering steam which is

carbonized surplus waste heat when setting carbonizer.

3.2.2 Oil mill process and heat flow in small scale oil mill factory

In the oil mill factory in Gumaca City, which has the 100t-copra/day and usage rate 50%

furnace, wood from forest near the factory is used as fuel for drying. Heat for drying is

send along blower air by compressor.

Vertical triple drying furnace

Vertical triple drying furnace

5 min.

Conditioning

5 min.

CCO

Copra

Hot air

5 min.

5 min.

Warming furnace of copra

5 min.

Milling oil screw

press

Cutting

Fig 3-9 oil mill factory(lower) and heat flow(upper)

In this factory, moisture contents of Copra is varied from 0% to 16%, the purchase price of




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the Copra is settled on the basis of 8% moisture contents. The moisture contents of the

Copra will be decreased thru three steps up to 2% before they will be put on the oil mill

process. Thus, in the oil mill factory, Shell, Charcoal, Wood or Surplus biomass are fully

used as heating sources for warming or drying Copra.

Under this Study, it is proposed that a Carbonization Plant shall be installed within the oil

mill factory, and exhaust heat from the Plant shall be recovered as heat source for Copra

drying and other processing. Besides, the Coconut Oil Mill could decrease the consumption

of Fossil Oils used for heat source.

The figure 3-10 shows the husk treatment process and heat flow of the carbonization plant

installed in a Coconut Oil Mill.

Copra

Drying

Farmers / PlantationsFarmers / PlantationsFarmers / PlantationsFarmers / Plantations

Shipping

Oil MillsOil MillsOil MillsOil Mills Iron RefineriesIron RefineriesIron RefineriesIron Refineries

Copra

Cooking

CDM(1)(1)(1)(1)

Exhausted

Gas burner

Pelletizer

＊＊＊＊Carbonizer

Drying

Bio-cokes

replacedfr

Collection

Packing

Cutting

Reduction

materials

Packing

CDM(2)(2)(2)(2) ＊Husk

Dilution

Steam boiler

Replace

Fossil fuel

Replace

Coal-cokes

Grinder

Heat

Fig 3-10 Flow chart of the proposed coconuts husk derived cokes production and GHG capturing

system

3.2.3 Coconut flow from farmer to the oil mill factory

It is said that 70% of Coconut farm may belong to the small scale farm. So, Husk is

generated and distributed in small scale way. The proposed husk distribution and

carbonization process are as below.




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Farm

バランガイABarangay A

裁断、袋詰Cutting and bagging

Barangay union integrated station

Oil mill

炭化Carbonizing

乾燥Drying

バランガイB バランガイC

製鉄所Steel plant

ペレット化Pelletizing

④$?

①$?

②$?

③$?

Farm Farm Farm Farm Farm Farm Farm Farm

Barangay B Barangay C

Fig 3-11 Coconut husk carbonization process in farmer and oil mill factory

As shown in Fig 3-11, husk is pre-dried in each barangay and collected to joint depot. The

husk is dried up to about 20%-moisture and is chopped into 12 pieces such like dice or is

crushed by hand or cutter to be packed. After this, husk is carried to installation and

carbonized. The detailed supply chain on the Husk is discussed in Chapter 3.4 hereinafter.

Exhaust heat at carbonization can be exchanged to supply to Copra warming process in oil

mill process. Heat for carbonization is not need to be supply because of internal heating

type furnace. Cokes is crushed to control the grain just before being used at the Steel

Smelting Plant or may be pelletized on request by the manufacturer of the Biomass-cokes.

3.2.4 Heating value of the Coconut husk Coal

The data which Husk, fiber and Coir-dust is individually carbonized, heating value of fiber

was 7,200kcal/kg, Coir-dust 6,500kcal/kg. The yield of fiber at carbonization was 16%,

Coir-dust was 23%, therefore the heating value of husk cokes by weighted average will be

6,700kcal/kg (= 28MJ/kg). This value is comparable to that of cokes originated from the




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cooking coal (7,200kcal/kg). Fixed carbon of the husk cokes may be about 70%, but this is

not satisfied to requirement value (85% or more). Therefore, husk cokes will be needed to be

increased by means of ingenuity on carbonization technology such like high temperature

carbonization.

Some samples of husk cokes were measured, and the heating value was 6,900kcal/kg. This

sample has been already pelletized.

3.2.5 Preparation of the calculation

In this report, the capacity of the Coconut oil mill factory is shown by amount of dried

Copra with 16% moisture treated per day.

It can be easily understood that the capacity of carbonization furnace is corresponded with

processing amount of Copra, so it can be calculated the capacity of the carbonization furnace

on the basis of dried Copra 100t with 16% moisture, that is, 100t-copra/day processing

factory.

Firstly, calculation for the amount of Coconut demanded for dried Copra (moisture 16%)

100t. 100t-Copra with 16% moisture may be equivalent to 154t with 45% moisture and

Husk 188t (=413/188), as above table 2-5. The weight of Coconut except Juice occupies

88.2 wt-% of Coconut, so 388t-Coconut, for simplicity, 400t-Coconut may be demanded.

As section 2.5.3, 40 wt-% of the Husk would be used as fuel for the drying. More than

100t-Husk out of 188t-Husk can be used for carbonization. For simplicity, it can be

assumed that 100t-Husk can be used.

Husk with 45% moisture can be converted to 12t-cokes, where weight of Husk with 20%

moisture is 68t-Husk, yield of the carbonized Husk is 23wt-%, cokes conversion factor is

0.824 (=0.7/0.85).

Heating value for the drying 100t Copra from 16% moisture to 8% is about 43.5GJ, where

water evaporation heating value is 5GJ/t. On the other hand, the heating value for carbonized

Husk 68t is about 350GJ because of 12t-cokes equivalent to 68t-Husk with 20% moisture,

where the Lower Heating Value (LHV) of the dried Husk is 10MJ/kg, cokes is

28MJ/kg-cokes. Therefore the exhaust heat can cover heat for drying Copra by means of

rough calculation.

It is concluded that 400t-Coconut with 45% moisture produces 100t-Copra with 16%

moisture which equivalent to 154t-Copra with 45% moisture, and 188t-Husk with 45%.




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Table 3-1 material flow example of Husk and Copra part

Row material usage residue dried Input/output heat Product

Husk

(moisture)

188t

(45%) 88t

100t

(45%)

68t

(20%)

Output (Exhaust) heat

350GJ 12t Cokes

Copra

(moisture)

154t

(45%) -

154t

(45%)

100t

(16%)

Input (Drying) heat

43.5GJ

91.4t Copra

(8%)

Next, we consider in terms of yields and needs on study area.

(a) Treasure Steel Corporation

In the Northern Coast of Mindanao and Southern Tagalog, the processing amount of scrap

steel of Treasure Steel Corporation in Illigan City is 300,000t/year, needs of the cokes may

be 7,500t/year, as 25kg/t-scrap. Assuming the mixed combustion rate be 50% in the

electrical furnace, Treasure Steel Corporation demands 4,000t-cokes. As above calculation,

100t-Copra/day processing oil mill factory can supply the husk cokes (4,380t/year = 12t/day

×365day/year) almost equivalent to the Treasure Steel Corporation’s demands (4,000t/year).

Fruits yields for Treasure Steel Corporation’s demands may be about 0.14Mt/year, as

400t/year×345day/year. The total amount of Coconuts production in this area may be about

1.6Mt/year. Assuming that 15% of the total amount of Coconuts plantation area may be in

good location such like along the paved road, 0.24Mt-Coconuts/year (=1.6Mt/year×15%)

can be easily collected to supply. This can be considered to cover the demands of Treasure

Steel Corporation even if the utilization of plantation would be decreased.

The processing capacity of copra in Granexport Mfg which is the largest oil mill factory in

the Philippine, stand on near Treasure Steel Corporation factory, may be 800t-Copra with

16% moisture per day. If the utilization of installation may be about 50%, the production

amount may be 400t-Copra/day. 100t/day Husk with 45% moisture which may be

corresponding to 100t/day Copra with 16% moisture may be carbonized, so 4,380t/day Husk

cokes can be supplied to cover the demands of Treasure Steel Corporation.

Granexport Mfg’s official processing amount is 800t-Copra/day. This may assume that

Coconut may be collected from not only along the paved roads but forest and rural area.

It is assumed that the middle man or the Copra trading shop may be effectively functioned.

basis of calculation




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(b) Steel Asia

Steel Asia is located in Calaca District of Batangas Province in the Caabarzon and has the

0.3Mt/ Steel processing capacity. This factory’s demands of cokes may be 7,500t-cokes/day

by means of similarly calculation to the case of Treasure Steel Corporation because of same

scale. As noted above, the demand of pulverized coal may be 4,200t/year for fuel, therefore

this may means that the demands of cokes may be 11,700t/year. If the mixed combustion

rate in the furnace would be 50%, the demand may be 6,000t-cokes/year.

In this area, oil mill factories are located at around Gumaca and Province of Batangas, where

is our study area, and the scale of the processing amount may be almost small like that

100t-Copra/day which means smaller company.

As above calculation, the 100t-Copra/day processing capacity oil mill factory can supply

4,380t-cokes/year, supply amount of 6,000t-cokes/year for Steel Asia means that the 1.5

times (150t-Copra/day) processing capacity, that is, 0.21Mt-Coconut/year will have to be

demanded.

In this area, total amount of Coconut production may be about 1.2Mt/year. Coconut from

only good located plantation such like along the paved roads may be assumed to be

0.6Mt/year which is corresponding to 50% of the total amount; 1.2Mt/year. This is the

reason why there is many appropriate area to transportation like along the paved roads more

than that of Mindanao, 50% of the plantation may be located in appropriate condition to the

transportation.

Therefore, Husk from 3 or 4 oil mill factory equivalent to 150t-Copra/day processing

capacity may be collect for 6,000t-cokes/year demand for Steel Asia.

Goldex oil mill factory of Gumaca in Province of Quezon is midsize company whose

processing amount may be 100t-Copra/day. There are many oil mill factories like this

class in Provinces of Batangas/Quezon. It is required to note that the operation ratio of

these factories is 50% recently.

3.2.6 About husk carbonization furnace near by oil mill factory

If the operating time of installation in the oil mill factory would be 24hours, capacity of the

carbonization furnace per day be 1t-Husk (with 20% moisture)/h, product amount of cokes

be 0.18t-cokes/h, so 4.3t-cokes/day would be produced. Three set will be need for

68t-Husk/day.

In the oil mill factory whose capacity is 100t-Copra(16% moisture), three set of the

carbonization system can be installed to produce the 4,470t-cokes/year (=3×0.18/h×

24h/day×345day/year). Besides, it is suggested that oil mill capacity’s factory can be

installed 4 set (3+1-spare) of the carbonization system to produce 4,000t-cokes/year, where




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345day/year, 24h/day and efficiency 0.9.

Therefore, it may be concluded that carbon balance is as the following figure.

Fruit 400 t/d of specific

consumption

Oil mill

Electric furnace

mill size

300,000 t/y

Oil mill

Cutting

place Carbonizing Pelletizing

Cutting

place Carbonizing Pelletizing

Raw husk 188t/d

Install 4 carbonizing furnaces of 20t/d in oil mill which can handle 100t

Cokes 2,800t/y

Oil mill size = handling copra 100t/d

88 tons of husk is dried to 30 percent by sunshine, and the other 100 tons of husk is

for dryer fuel in order to dry to 20 percent moisture for carbonizing, or use as heat

source of dryer as usual. 100 tons of husk is to 68 tons.

Farm

Farm

Farm

Farm

Farm

Farm

Fig 3-12 Carbon material balance

3.2.7 Price of Cokes and husk

Information about Price is as below at study time.

(a) Philippine electrical furnace association

Import price from China is lower than domestic

- Coal-cokes unit price at ex-factory from China is fixed carbon 80%:12P/kg, 85%:14P/kg

- Row Coconut shell at ex-factory is 10P/kg

(b) Philippine Coconut oil mill group

Unit price of shell is 15P/kg




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(c) Coco green Corp.

- Shell coal : 17P/kg,

- Husk : 1.5P/kg,

- Husk as sliced Husk package 50kg with 20% moisture : 5-5.5P/kg at ex-factory

(d) Granexport Mfg

- Shell price from Illigan : 2.7P/kg

- Cagayan de Oro : 3.5P/kg

(e) Treasure Steel Corporation

- Coconut shell Pulverized cokes : 10P/kg

- Cokes from China : 19～20P/kg at 2008 (buying price is lower than this in fact, but the

price cannot be released)

(f) Goldex oil mill factory

If they directly go to collect the Husk, Husk price is free

As above,

- import cokes derived from coal : 19-20P/kg,

- Shell : 10P/kg,

- Husk : 5-5.5P/kg,

Quality of Husk would be equivalent to coking cokes and shell-cokes, and the Husk cokes

unit price would be lower than that of them, The market of Husk-cokes would be expand. In

this case, the Husk-cokes unit price would be 13P/kg-18P/kg. In this Study, it is assumed

that the Husk cokes selling price unit is 18P/kg.




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3.2.8 Specification of furnace

Table 3-2 Specification of furnace

Farmer would traditionally attempt Husk-cutting and pre-drying by sunshine in every

barangay. Carbonization furnace, Boiler, Scrubber, Grinder, Pelltetizer are installed in oil

mill factory as carbonization system.

3.2.9 Rough idea of the production cost

(a) Installation cost

As table 3-2, initial cost may be 300MJPY, depreciation be MJPY during 15years. The total

amount of row Husk (20%moisture) is 23,460t-Husk/year. Depreciation cost per Husk 1kg

may be 0.85JPY/kg, corresponding to 0.43PP/kg-Hsuk (20%moisture) as 1PP=2JPY

(b) Transportation cost

68t-Husk (20%moisture) per day can be transported by two 8t capacity truck, 5 round-trip

where round trip distance may be 40km. However, truck cost would not be included.

Total round trip distance will be 400km/day for 68t-Husk (20% moisture). Fuel cost of

transportation may be 15,000PP, equal to 30,000JPY, where mileage may be 8km per 1L

diesel, diesel unit price be 300PP/L. If the mileage would be 35PP/km including car

depreciation, the cost would be 15,000PP/two-car by round up (1,4000PP=35PP/km×

400km). The other expenses like driver, drying, load and unload, equipment may be

30,000PP, so the total transportation cost may be 60,000PP. Therefore, the transportation

cost may be 1.3PP/kg-Husk (20% moisture).

installation Requirement specification

Husk cutting Farmer’s work by hand (no machine)

Carbonization furnace Internal heating type, processing capacity per hour : 1t/h, 4set (3+1set :spare)

Grinder 500kg/h, 3set (2+1set :spare)

Pelletizer 200kg/h, 5set (4+1set :spare)

Dryer : flat bed type 1t/h , under already dried up to 20% moisture at joint depot before the shipping

Boiler and Scrubber Exhausted gas burner, evaporation capacity : 5t/h




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(c) Husk Purchase cost

Dried purchase price of Coconut with 20% moisture may be 2P/kg1.

(d) O&M cost

The amount of worker may be needed 10 person, where 1.5 person for cutter, 1.5 person for

pelletizer 1.5 person for grinder and 4 persons for carbonization furnace. However, the

operating time may be 24hours, so the three rotation member can be needed. Consequentaly,

total amount of the worker may be 30 persons and work’s cost may be 30,000PP/day/man,

where worker’s cost may be 1,000PP/man/day, that is, 0.44PP/kg-Husk.

(e) Total cost

As from (a) to (d), total cost per husk weight may be 4.17PP/kg. Besides, this unit price will

have to be converted to unit price per Husk cokes, at all Husk cokes unit price is 23.6PP/kg

because of 18% cokes yield. And management cost rate would be 10% of total cost, so

Husk-cokes unit price would be 26.3PP/kg-Husk-cokes, by where 21PP/kg is divided by 0.9.

If the Coconut purchase cost would be free, Husk-cokes would be 13.7PP/kg-Husk-cokes,

where cokes yield is 18%, management cost rate is 10%. Revenue can be reduced to farmer.

Ex-factory price unit in Electric furnace plant is assumed 18PP/kg. If the Coconut purchase

price would be free, this project could be profitable. However, if the price of Coconut

would not be free, this project could be profitable as CDM project.

3.2.10 Checking of the heat balance system of carbonization for IRR calculation

In previous chapter, the resources of coconuts fruits for carbonization based on the daily

copra squeezing performance of the oil mills are discussed. For a Coconut Oil Mill which

can process 100t/day of dried copra, the amount of fresh fruits are calculated and after that

the dried husks for carbonization from the fruits are counted.

By using heat balance calculation procedure, it is necessary to install 5 units (1 is stand- by

unit) of carbonizer, each can process coconuts husk of 1t/h, to produce enough cokes as

1 According to the survey results made by the Study Team, 5pp per 1kg for the Husk was calculated, however this estimation was not fully supported by accurate evidence and with this reason, the Study Team adopted 2pp/kg




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reduction materials for electric iron manufacturers.

For the purpose of IRR calculation, it is better to use the carbonization performance of

dried husks instead of squeezing performance of copra of oil mills. Installation and

equipments are suggested as follow. The running time of the Carbonization Plant per year

are extended to reduce the investment.

1) Carbonization performance of dried husks：1t/h (moisture contents is below 20%)

2) Numbers of carbonizer：4units (1unit is for stand-by use)

3) Running time：345days×24hours The flow cart is as follow.

Bio-cokes 12t/day

Operation hours per year 38280h/year

Husk weight with 15% moisture 24,840t/year

Bio-cokes 4,140t/year

Saving amount of heavy oil as boiler fuel 3,187kL/year

Hopper

Carbonization furnace

Gas furnace

Exhaust gas

boiler

Steam header in oil mill factory

Exhaust gas

12,305 m3N/h at 200℃

Coconut husk 24t/day/unit

Cut husk 72t/day with 15% moisture

Bio-cokes 4t/day/unit

with 17% yield

saturated steam

5.0t/h at 0.8MPa

Fig 3-13 heat balance of proposed coconuts husk carbonization system




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3.2.11 Investment at selected oil mill

1) Capital investment for husk carbonization for Granexport Mfg at Iligan city

Table 3-3 Specification of main facilities and capital investment for big scale O/M

Husk cutter (in barangay)

Cottage works of the coconuts farmers Man power 0JPY

Carbonizer (in oil mill factory)

Husk process capacity 1t/h/unit Installation including electricity transmission ; 45,000,000JPY/unit*4units

3units+1stand-by 180,000,000JPY

Grinder (with sieve) (in oil mill factory)

500kg/h/unit; 3,000,000JPY/unit ×2units+electricity transmission/unit; 1,000,000JPY/unit Total 10,000,000JPY


Pelletizer (in oil mill factory)

200kg/h/unit; 4,000,000JPY/unit ×5units + electricity transmission; 2,000,000JPY


Husk dryer (in barangay)

Adjust moisture contents below 20% at barangay before ship to oil mill. Capacity of drying husk: 1t/h/unit Installations: up to village situation

Flat bed typ 4,000,000JPY

(max.)

Boiler and scrubber Evaporation capacity 5t/h - 24,000,000JPY

Installation works - - 50,000,000JPY

Reserve fund - - 10,000,000JPY

Total 300,000,000JPY

Note) The specification of instruments are based on the table 3-2.

2) Capital investment for husk carbonization for Goldex Oil Mill Gumaca city

Table 3-4 Specification of main facilities and capital investment for small scale O/M

Husk cutter (in barangay)

Cottage works of the coconuts farmers Man power 0JPY

Carbonizer (in oil mill factory)

Self heating system: Husk process capacity 1t/h Installation 1units; 45,000,000JPY/unit

1unit 45,000,000JPY

Grinder (with sieve) (in oil mill factory)

500kg/h; 3,000,000JPY/unit×1unit + electricity transmission 1,000,000JPY

1unit 4,000,000JPY

Pelletizer (in oil mill factory)

200kg/h; 4,000,000JPY/unit×2units

＋electricity transmission 2,000,000JPY 2units 10,000,000JPY

Husk dryer (in barangay)

Adjust moisture contents below 20% at village before ship to oil mill. Capacity of drying husk: 1t/h Installations: up to village situation

Flat bed typ 1,000,000JPY

(max.)

Installation and reserve fund

- - 10,000,000JPY

Total 70,000,000JPY

Note) The specification of instruments are based on the Table 3-2.

3.3 Technical and Environmental Issues to be addressed

In this section, the possibility of air pollution from the smoke at carbonization and damage

from salt fertilization are to be discussed.




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Table 3-5 National Ambient Air Quality Guideline Values

Short Term Long Term

Pollutants mg/Ncm ppm

Averaging

Time mg/Ncm ppm

Averaging

Time

Suspended Particulate Matter 230 - 24 hours 90 - 1 year

TSP/ PM-10 150 - 24 hours 60 - 1 year

Sulfur Dioxide 180 0.07 24 hours 80 0.03 1 year

Nitrogen Dioxide 150 0.08 24 hours - - -

140 0.07 1 hour Photochemical Oxidants as Ozone 60 0.03 8 hours

- - -

35 30 1 hour Carbon Monoxide

10 9 8 hours - - -

Lead 1.5 - 3 months 1.0 - 1 year Source:2005 Philippine Rice Research Institute

It has been asked to monitor the exhaust smoke for three sets of rice-husk carbonization

furnace which was installed in farmer at Luzon by one of the Japanese Plant Manufacturers.

According to above guideline, it has been consequently designated without detail data about

smoke monitoring. It is in need to study environmental regulations before installation of the

Carbonization Plant2. As shown in the promotion paper issued by PCA, some Chlorine may

be included in such part of Coconut as Shell, but not in Husk, according to a preliminary

analysis conducted by the Study Team in Japan.

Source: Coconut Statistic 2007, United Coconut Association of the Philippines, Inc figure in P12

Fig 3-14 promotion paper for salt fertilizer

3.4 Material Supply and Logistic Value Chain

Material Supply plays very important roles in most industrialization projects that processes

the raw materials derived from primary industries such as Agricultural, Forestry and Fishery.

2Ten or more set of carbonization furnace is located.




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The production of those raw materials is heavily influenced by Climatic Conditions, Quality

Control after the harvest, Logistic Systems from the growing fields to the processing plants.

Consistent supply of Quality Raw Materials has been always the issue for such industries

that processing Agricultural Products and/or By-products.

3.4.1 Players in the Logistic Chain of Coconut Products

In case of the Coconut Processing Industry in the Philippines, there is various players;

Owners of Coconut Plantation, Coconut Growers, Middlemen dealing a business on the

Products/By-products, Coconut Oil Mills, Coconut Oil Refinery and Processing Plants for

the final Products. There is well-established supply chain since long for the Copra, the major

product of Coconut.

In the process of Copra Supply to the Coconut Mills, Middlemen have been played very

important roles between the Growers and the Mills. Meantime, function of the Middlemen is

not only to provide Logistic Services in/between, but also to provide financial support to the

Coconut Growers. On the other hand, the Growers also try to form a Cooperative to protect

their interests as the Coconut Growers. This movement was initiated since 1990 by the

Cooperative Development Authority (CDA), a public entity under Office of the President.

However, the endeavor of this initiative is yet to be fully achieved in various sectors

including the Coconut Growers. It is said that one of the most critical capabilities that

Coconut Grower’s Cooperatives are in need in operating the Cooperative is the proven

capability in the fields of Marketing.

3.4.2 Proposed Logistic Value Chain for the Coconut Husk

Considering the present situation in the Logistic Value Chain in the Coconut Industry, it is

recommendable to use the existing Logistic Value Chain; use of the Middlemen, in order to

avoid unnecessary trouble which might come arisen by changing the existing Logistic

Systems. The proposed Logistic Value Chain may be illustrated as under.




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CoconutCoconutCoconutCoconutGrowerGrowerGrowerGrower

MiddlemenMiddlemenMiddlemenMiddlemenCoconut MillCoconut MillCoconut MillCoconut Mill

(Carbonization(Carbonization(Carbonization(Carbonization Plant) Plant) Plant) Plant)

Iron & SteelIron & SteelIron & SteelIron & SteelManufacturerManufacturerManufacturerManufacturer

(Electric Furnace)(Electric Furnace)(Electric Furnace)(Electric Furnace)

Harvest

Removalof Husk

TransportCarbonization

ProcessesSale of Bio-cokes

ChoppingHeat Exchange

from Exaust Gas

Sun-driedGenerationof Steam

Packed inPlastic Bag

PlayersPlayersPlayersPlayers

Pro

cess

Pro

cess

Pro

cess

Pro

cess

Fig 3-15 Proposed Logistic Value Chain for the Project

According to this plan, the Grower will be involved in the processes of Harvesting, Removal

of Husk, Chopping, Sun-dry and Packing into a Plastic Bag. These processes bring an

additional earning to the Coconut Grower. After the packing the Husk into a plastic bag, the

Husk will be transported by truck arranged by the Middleman to the Coconut Mill where a

Carbonization Plant is located. Chopping of the Husk into approximately 10 cm rectangular

shape shall be done manually by the Coconut Grower. It is said that water content of the

fresh Coconut is approximately 40 percent, while the sun-dried Husk is approximately 18

percent. With 40 percent water content of Coconut Husk, manual chopping is more practical

rather than the mechanical chopping which requires capital outlay and higher operation cost.

Whereas the proposed Logistic Value Chain is adopted from the shorter-time perspective,

while the longer-term perspective for the Logistic Value Chain is “Direct Dealing” between

the Coconut Grower Cooperative and the Coconut Mill. This system has advantages that the

entire logistic costs may be reduced further with shorter logistic chain and less number of

the players on the chain, and there will be stable Husk supply agreement for rather longer

time of period between the Cooperative and the Coconut Mill. However, realization of this

type of Husk supply agreement requires longer preparatory period to mature the systems and

it will be risky to apply this “Direct Dealing” systems immediately for the proposed

Bio-cokes Production venture now.




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3.5 Proposed Organizational Structure

Philippine Coconut Authority (PCA) is the public body solely responsible for the

administration of Coconut Industry in the Philippines. PCA is expected to be functioned as

the sole window agency for the implementation of the proposed Bio-cokes Production

Project responsible for the coordination and management for PoA application as well as

implementation of the Project in close coordination with Development Bank of the

Philippines (DBP).

In the meantime, this Project shall be initiated by the private sector of the Philippines, in

particular by the Coconut Industry, the Iron & Steel Industry and Metal Casting Industry.

These players, in particular the Coconut Mills, perform very important roles in realizing the

proposed scheme. This Chapter describes the Organizational Structures in both Public and

Private sectors for the implementation of this Project, and functions of each player.

3.5.1 Organizational Structure at the institutional level

There are two major Organizations to be involved in implementing the proposed Bio-cokes

Production Project in the Public Sector, namely; Philippines Coconut Authority (PCA) and

the Development Bank of the Philippines (DBP).

PCA, being the sole window agency for the implementation, is expected to take leading

roles to plan, promote, monitor, and manage the Project along with the PDCA Cycle. PCA,

through its Research, Development and Extension Branch, shall promote this concept to

both of Coconut Mills and Coconut Growers and extend necessary technical and managerial

supports to those potential investors. They are requested to conduct such services in close

coordination with DBP who is the provider of the funds required for initial investments and

a part of the operational costs.

They are also requested to function as the Coordinating and Managing Entity (CME) in

applying for a Certified Emission Reduction (CER) to the United Nation Framework

Convention on Climate Change (UNFCCC), since the revenue from the Sale of CER

constitutes considerable extent in the viability of this scheme. According to the statistics

issued by the Philippines Coconut Planters Association, there are 64 Coconut Mills

throughout the entire Philippines as of year 2007.

Since this Project shall be implemented in parallel and simultaneously by several numbers of

investors; mostly from those 64 Coconut Mills, PCA shall monitor and manage activities of

each Sub-project. Under the concept of PoA (Programme of Activities), these Sub-projects

are called as a CPA (CDM Programme of Activity). In order to monitor and manage this

rather complicated series of activity, it is recommended to employ a Project Management




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Team in order to provide technical and managerial support services to those PoA. This

Project Management Team shall be attached either to PCA or DBP and performs in close

coordination with both agencies. The following figure illustrates the setting of the

Organizational Structure at the institutional level.

National EconomicDevelopment Authority

(NEDA)

Coordinating/Managing

Entity (CME)


(PCA)

Japan InternationalCooperation Agency

(JICA)

Development Bankof the Philippines

Project ManagementTeam

CoconutMill (1)

CoconutMill (2)

CoconutMill (N)

Fig 3-16 Organizational Structure in the institutional level

3.5.2 Organizational Structure at the Production Level

As stated earlier, implementation of this Project shall be initiated by the players in the

Private Sector. Among others, the Coconut Mill is expected to be the top notch in the

investor’s list. The Coconut Mill is an ideal place where the benefits of synergy effect that

may be achieved by cyclonite the Milling Processes of Copra and the Carbonization of Husk

at one place, because the Mill is fully equipped with Power and Water Supplies, Access

Road and Shipping Pier, Human Resources, Administration Systems and other

infrastructures.

However, accounting systems for Coconut Milling and Bio-cokes Production shall be

strictly separated, due to different purpose of the venture. New venture may be implemented

either by the same stakeholders of the Mill or partly different composition of the existing

stakeholders and new comers. In both cases, they shall form a Special Purpose Company

(SPC) for the production of Bio-cokes Production and operate the said SPC under separate

business strategy and accounting systems from the Milling Operations, in order to maintain

the transparency of its operations. All the revenues and expenditures attributable to the

operations shall be accumulated under the account of SPC and the borrowing and repayment

are also the same manner too. The SPC will enter into a Medium-term Agreement with the




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Middlemen and/or Coconut Growers Cooperatives for supply of Coconut Husk, and Sales

Agreement for the Bio-cokes with Iron and Steel Industry, which are essential to draw a loan

from DBP.

In order to provide a competitive capital cost to the Project, it is recommended to facilitate a

soft loan from the development institutions such as Japan International Cooperation Agency

(JICA), Asian Development Bank (ADB) and others. In case of JICA, rate of interest is as

low as l.5% per anon with 10 years grace period; one of the softest conditions among others.

The providers of soft loan are used to introduce a privilege condition to ask the holder of

CER to negotiate first with a Buyer of the CER domiciled in the country of loan provider.

The following Figure shows the proposed structure of implementing body at the production

level.

ProjectProjectProjectProjectManagementManagementManagementManagement

TeamTeamTeamTeam

Philippine CoconutPhilippine CoconutPhilippine CoconutPhilippine CoconutAuthority (PCA)Authority (PCA)Authority (PCA)Authority (PCA)

Coordinating &Coordinating &Coordinating &Coordinating &Managing Entity (CME)Managing Entity (CME)Managing Entity (CME)Managing Entity (CME)

JICAJICAJICAJICATwo-stepTwo-stepTwo-stepTwo-step

LoanLoanLoanLoan

Development Bank ofDevelopment Bank ofDevelopment Bank ofDevelopment Bank ofthe Philippines (DBP)the Philippines (DBP)the Philippines (DBP)the Philippines (DBP)

National CommissionNational CommissionNational CommissionNational Commissionfor CDM (DENR)for CDM (DENR)for CDM (DENR)for CDM (DENR)

Mid-termMid-termMid-termMid-termHusk SupplyHusk SupplyHusk SupplyHusk SupplyAgreementAgreementAgreementAgreement

Special PurposeSpecial PurposeSpecial PurposeSpecial PurposeCompany (SPC)Company (SPC)Company (SPC)Company (SPC)

UNFCCCUNFCCCUNFCCCUNFCCC

Mid-term Bio-cokesMid-term Bio-cokesMid-term Bio-cokesMid-term Bio-cokesSales AgreementSales AgreementSales AgreementSales Agreement

Fig 3-17 Organizational Structure at the Production Level

Study Report Chapter 4 Applicability as a Validated Programmatic CDM (PoA) Project



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Chapter 4 : Applicability as a Validated Programmatic CDM (PoA) Project

Bio-cokes project could be implemented as CDM project, even if it could not be

implemented as business. And the project can be implemented at the coconut oil mil factory

where is adjoined iron steel plant, therefore the project can be implemented in many region

as CDM project in Philippine. If the project would be implemented as CDM project, it can

be more convenient to be implemented as PoA scheme under the programme related

Renewable Energy and/or Climate Change than as ordinal CDM scheme.

So, it is explained about PoA definition and outline in Section 4.1, and proposed applicable

PoA scheme in Section 4.2 together with the recommended Structure for the

implementation.

4.1 Definition and Outlines of the PoA Project

The brief definitions of PoA may be digested as under;

(1) Programme of Activities (PoA) is:

- a voluntary coordinated action,

- by a private or public entity,

- which coordinates and implements any policy/measure or stated goal,

i.e. incentive schemes and voluntary programs,

- which leads to GHG emission reductions or increase removals by sinks additionally,

- via an unlimited number of CDM program activity,

- and able to registered as a single CDM project activity.

(2) CDM program activity (CPA) is:

- a project activity under a Program of Activities,

- a single, or a set of interrelated measure(s),

- to reduce GHG emissions or result in net removals by sinks, applied

within a designated area defined in the baseline methodology.

There is several basic key words governing the core activities under the PoA, and they will




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be summarized as follows.

(3) Coordinating and Managing Entity (CME) is;

The Implementation body of PoA, roles and function of which are summarized as:

A PoA shall be proposed by the coordinating or managing entity which shall be a Project

Participants (PP) authorized by all participating host country DNA involved and identified in

the modalities of communication as the entity which communicates with the CDM EB,

including on matters relating to the distribution of CERs.

Project Participants of the PoA shall make arrangements with the coordinator or managing

entity, relating to communications, distribution of CERs and change of Project Participants.

(4) Boundary of PoA;

The physical boundary of a PoA may extend to more than one country provided that each

participating non-annex I host Party provides confirmation that the PoA, and thereby all

CPAs, assists it in achieving sustainable development.

(5) Baseline and additionality;

All CPAs of a PoA shall apply the same Approved Methodology (AM), The PoA shall

demonstrate that GHG reductions or net removals by sinks for each CPA under the PoA are

real and measurable, are an accurate reflection of what has occurred within the project

boundary, and are uniquely attributable to the PoA.

The PoA shall therefore define at registration, the type of information which is to be

provided for each CPA to ensure that leakage, additionality, establishment of the baseline,

baseline emissions, eligibility and double counting are unambiguously defined for each CPA

within the PoA.

If the Approved Methodology is put on hold or withdrawn, not for the purpose of inclusion

in a consolidation, no new CPAs shall be added to the PoA in accordance with the timelines




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indicated in procedures.

If the methodology is subsequently revised or replaced by inclusion in a consolidated

methodology, the PoA shall be revised accordingly and changes validated by a DOE and

approved by the CDM EB. Once changes have been approved by the CDM EB, each CPA

included in the PoA thereafter has to use the new version of the PoA.

CPAs included prior to the methodology being put on hold, shall apply the new version of

the PoA at the time of the renewal of its crediting period.

(6) Project Scale;

In the case of CPAs which individually do not exceed the SSC threshold, SSC

methodologies may be used.

(7) Applicable GHG reduction methodology, technology and measure

All CPAs shall be applicable same methodology, same technology and measure in a PoA.

(8) CPA’s number

There is no limitation of number of CPA’s.

(9) Crediting period

PoA‘s crediting period is defined as less than 28years, and CPA’s is same as to CDM, that is,

less than 7years by 3 times, or 10years by 2 times.

With due consideration to the definitions as given herein above, the Outline of the PoA may

be illustrated as shown in the following figure.




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Fig 4-1 Outline of the PoA

4.2 Applicability of the PoA Concept to the Project

The proposed production of Bio-Cokes Project may be applicable for the PoA along with the

following points, considering both the Results of Site Survey in the Project Areas and the

PoA Rules.

(1) Programme

There is some programme regarding to our PoA in Philippines, but these are not appropriate.

However, we may apply the regulations regarding to the renewable energy would be

established in the future.

(2) Boundary

It is assumed that PoA boundary can be Southern Tagalog (Calabarzon) and Northern Coast

of Mindanao. However, our PoA can be applicable to the whole Philippines, so we have to

consider the case that PoA boundary may be extended to the entire Philippine (fig.4-7).

CPA boundary which includes the Iron steel plant and installation for Bio-Cokes in oil mill

factory may be defined within each Project Site (fig.4-7).

As stated in herein above, the boundary of this Project covers Southern Tagalog

CPA boundary

Number of CPA is

no limitation.

All CPA shall be

applied to same

methodology, same

technology/measure.

CDM-EBCDM-EB

communication

A programmeA programme

CPACPA

CPACPA

CPA Project ParticipantsCPA Project Participants

PoAPoAPoA

CPACPA

CPACPA

Coordinating/Managing EntityCoordinating/Managing EntityCoordinating/Managing Entity

PoA boundary

CPA boundary

Number of CPA is

no limitation.

All CPA shall be

applied to same

methodology, same

technology/measure.

CDM-EBCDM-EB

communication

A programmeA programme

CPACPA

CPACPA

CPA Project ParticipantsCPA Project Participants

PoAPoAPoA

CPACPA

CPACPA

Coordinating/Managing EntityCoordinating/Managing EntityCoordinating/Managing Entity

PoA boundary




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(Calabarzon) and Northern Coast of Mindanao with the designated functions as the

Coordinating and Managing Entity (CME) by the Department of Agriculture PCA. PCA will

be at the same time functioned as the Implementation Agency of this Project

(3) Coordinating and Managing Entity

It is suggest that the Department of Agriculture Philippine Coconut Authority can be most

appropriate body for Coordinating and Managing Entity (CME), because they manage all

the Coconut farmer at present and it is further expected that they can communicate to the

other Government bodies of Indonesia, Japan and UNFCCC including the CDM EB.


CME of PoA

Department of Agriculture

Philippine Coconut AuthorityCME of PoA

PoA boundary

far mer

Barangay ABarangay A

Philippine Development bankPhilippine Development bank

Two Step loan

Japanese GovernmentJICA

Japanese Government

JICA

Two Step loan

Husk of the Coconut

CPA boundary

Iron

Steel

plant

Iron

Steel

plant

Bio-Cokes

SPC

PCA branchPCA branch

carbonizationcarbonization

dryingdrying

peletizationpeletization

farmer farmer farmer farmer farmer farmer farmer farmer

Barangay BBarangay B Barangay CBarangay C

Fig 4-2 Concept of PoA

(4) Applicable Technology and Methodology

It is assumed that all CPAs install the Bio-Cokes installation and Power Supply Systems to

local grid in villages. And it is expected that the Bio-Cokes may be applicable for AMS-

Ⅰ.A.




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(5) CDM additionality

Under the current Programme regarding to the climate change, so many renewable energy

projects such as Biomass fuel, Solar power, Hydropower are not installed in the Philippine.

This is reason why the current Programme regarding to the climate change is not effective.

This is the PoA additionality on our project grounded by the technical barrier and financial

barrier. These barriers may be cleared by the extension of the ODA loan and advanced

technology from Japan with an additional profits from selling the CERs.

(6) ODA usage

The provision of the public funding for CDM is not allowed by COP7, so this Project is not

qualified for the ODA fund directly. However, if the Project Site is located in the developed

country (including Japan) and certified that the funding is not ODA funding, the public fund

can be used for CDM without certification by host country.

(7) Environmental Impact Assessment (EIA)

Bio-Cokes plant is not imposed on in the present EIA regulation in Philippine. However, this

Project may execute spontaneous EIA when the CDM project starts.

Source: Abrief Guide for the Industry Sector and EIA Reviewers on the Reviced Procedural Manual of DAO 2003-03

Fig 4-3 EIA process within the project cycle




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Source: Abrief Guide for the Industry Sector and EIA Reviewers on the Reviced Procedural Manual of DAO 2003-03

Fig 4-4 EIA process

(8) National approval3

National approval transaction is below.

3 http://dna-cdm.menlh.go.id/en/approval/




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Fig 4-5 National Approval Transaction

Transaction fee for the national approval of CDM is as below. In our case, PoA and all CPA

can be charged.

Fig 4-6 National Approval Transaction fee

(9) CDM Criteria4

CDM Criteria is provided in terms of Environment, Economy, Social and Technology. This

4 http://dna-cdm.menlh.go.id/en/susdev/




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Project may satisfy all the Conditions required under this clause.

Fig 4-7 CDM Criteria

According to the results of careful study, the proposed Power Generation Project is most

likely to clear these figures.

Study Report Chapter 5 Financial Viability Analysis on Two Case Studies



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Chapter 5 : Financial Viability Analysis on Two Case Studies

5.1 General Pre-conditions for Financial Viability Analysis

This Study intends to analyze the Economic and Financial Viability of the Proposed Project

that produces an Industrial Coke from the residue of Coconut to replace the imported Cokes

made of fossil-resources in the Philippines. There is three major revenues from this

development concept; one from the Sale of Biomass-based Cokes to those end-users as Iron

and Steel Manufacturers and Metal-casting Industry, one is the Sale of Carbon Credits

derived out of Reduction of GHGs by reduction of fossil banker oils at Coconut Oil Mill and

by replacing Fossil-resources-made Cokes with Biomass-based Cokes at the Metal

Processing Industries and one is the saving cost of the fuel being substituted by the exhaust

heat from carbonization of the husk.

5.1.1 Pre-conditions for the Financial Viability Analysis

The Financial Viability Analysis has been conducted based on the following pre-conditions.

・All the Plants, Equipments and other Ancillary Works shall be procured in the Republic of

Philippines, except for a few component that is required to import from outside Philippines.

For those items to be imported, it is assumed that those items shall be imported from Japan,

・Inflation factors in relation to this Capital Investment are eliminated in this analysis,

・Revenue under this Project is Selling Price of the Biomass-based Coke to Metal Processing

Industries in the Philippines, and Selling Price of the Carbon Credit which is scheduled to be

realized after One (1) year from the commencement of operation of the Biomass-cokes

Production Systems,

5.1.2 Capital Cost for the Project

Capital Cost for the Project shall be based on the costs imposed by a Soft Loan to be

provided under the Official Development Assistance (ODA) program by the Government of

Japan or similar facility.

5.1.3 Currency and Foreign Exchange Rates

The Investment costs have been separately estimated in the Foreign and Local Currencies

based on the following exchange rates;




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One (1) U.S. Dollars = 95 Japanese Yen = 2Philippine Peso

5.1.4 Financing plan for the Project Investment

In the analysis of the Financial Viability on this Project, it was opted that the major part of

the Capital Expenditure will be financed by the Project Loan to be provided by the Japan

International Cooperation Agency (JICA) and the financing conditions under the Project

Loan may be summarized as follows;

Table 5-1 Borrowing condition of the Project Loan

Pay items to be financed

Loan coverage Interest Rate Repayment

(Grace Period) Borrowing Conditions

All the pay items except Land

Acquisition, General Admi. and Tax

Total Investment Costs and

Operational Costs

Approx.1.4% Per Annum

15Years Un-tied for the Procurement of

Plant/Equipment and Consultancy Services.

5.2 For the Investment Proposal at the Northern Coast of Mindanao

Northern Coast of Mindanao covers the territories of various provinces of Surigao del Norte,

Agusan del Norte, Misamis Oriental, Lanao del Norte, Misamis Occidental and Zamboanga

del Norte. Major part of the Area is Typhoon-free and rich in Coconut vegetation. At the

same time, such core cities as Illigan and Cagayan de Oro are well industrialized, due to its

strategic location and they are rich in Energy and Agricultural Resources either within the

territory or its hinterland. Philippine Sinter Corporation and National Steel Corporation

which are two major metal processing industries in the Republic, are located in Illigan City

and nearby Cagayan de Oro City respectively. There is the largest Coconut Mill Plant in

Illigan City called Granexport Manufacturing Corporation, an affiliate of GIIF Oil Mills

Group. The GIIF Oil Mills Group is recognized as the largest Coconut Products

Manufacturer in the World. Meantime, an arm of National Steel Corporation has been

curved out as a private entity called Treasure Steel Corporation and they are involved

actively in the Steel Production in their plant in Illigan City. Study Team has identified these

two Corporations as a suitable venue for conducting the proposed Preliminary Feasibility

Study as the second Case Study, since they are performing well as one for the production of

Biomass-based Cokes and the other for the end-user of the said products.

5.2.1 Total required costs for the Project




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(1) Composition of the Project Costs

The Capital Expenditures required for the development of this Project have been estimated

referring the above table 3-2.

5.2.2 Expected Revenues and Required Costs for the Project

(1) There should be three major Revenues derived from this Project;

a) Sale of Biomass-based Cokes being produced under this Project, to Metal Processing

Industry who uses Electric Furnace, Selling Price of the Biomass-based Cokes is set as

Philippine Peso 18.00 per kg. For the purpose of calculation and analysis of this Study,

b) Sale of CER on GHGs at Coconut Oil Mill being certified by the UNFCCC.

c) Saving cost of the kerosene being substituted by the exhaust gas heat from carbonization

of the husk.

(2) The Breakdown of the Project Costs

The total project costs for the Project in Calabarzon Area are broken down in the above

table3-4.

5.2.3 Results of the Financial Viability Analysis (Analysis of FIRR)

Under this study, the Financial Viability of the Project was evaluated on the basis of the

Revenue and Cost derived from the Project for 15 years since its commencement of the

Operation, applying the method of Financial Internal Rate of Return (FIRR). In the

evaluation of the Financial Viability, results of FIRR shall be compared with the opportunity

cost which may arise from the Capital Cost to be applied for this Project.

Project Cash-In Flow

In-flow of Cash under this Project consists of (a) Equity and Borrowings for the Initial

Investment, (b) Sale of Biomass-based Cokes, (c) Sale of Carbon Credit derived by saving

from the Fuel and Operational Costs at the existing Coconut Oil Mill in Illigan City, Lanao

del Norte Province.




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(a) Equity and Borrowing for the Capital Investment

Among the total costs required for the development of the such Capital Outlays as

Carbonization Plants, Heat Exchanger, Bug Filter and other Ancillary Equipments, Civil

Works and Operational Costs in it first year, it was assumed that Ten (10) percent of the total

sums may be paid up by the Owner of Granexport Manufacturing Corporation to a Special

Purpose Company to be established for this Project as the Equity, and the rest of the Capital

Expenditures shall be covered by the Two-step Loan to be provided by JICA through the

Development Bank of the Philippines. Anticipated Capital Cost for discounting the revenues

may be summarized as follows;

Table 5-2 Details of the Capital Cost and WACC

Loans Financing Method

ODA Loan NEDO’s Advance

Equity Total/Weighted Average

Ratio between Loan and Equity

75% Appro.15% 10% 100%

Capital Cost 1.4%/Year Zero 15%/Year 1.51%/Year

Weighted Average Cost of Capital (WACC) is calculated as 1.51% per year, based on the

Composition of the Loans and Equity as stated hereinabove.

(b) Sale of the Biomass-based Cokes

For the calculation of Sale of Biomass-based Cokes, Unit Rate of 18.0 Philippine Peso or 36

Japanese Yen per Kilogram shall be applied according to the Market Price of imported

Fossil-resource-based Cokes from China.

(c) Sale of Carbon Credit

For the calculation of Sale of Carbon Credit, Unit Rate of Japanese Yen 3,000 per one CO2

ton shall be applied.

Project Cash-out Flow

Cash-Out Flow of this Project consists of the following (d) to (g).




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(d) Construction Costs

The Construction Costs for this Project were shown in the Table3-3, and these expenses shall

be paid out within one year from the commencement of the Project.

(e) O&M Costs

The O&M Costs for this Project was projected as labor cost which is estimated by 1,000

Philippine Peso per operator with 24hours-3rotation.

(f) Depreciation Costs

Such Major Initial Investment Costs as the Carbonization Plant, Heat Exchanger, Bug Filter

and Auxiliary Equipments shall be depreciated up to Ninety (90) percent of its costs at the

equal amount every year within 15 years time.

(g) Taxes

Any Tax applicable in Philippine for the procurement of Engineering Services, Construction

of the Building, Installation of Plants and Equipments and other activities shall be inclusive

of the costs estimated in each pay items, and the Income Tax derived from this Project is

deemed to be Thirty four percent on the Incomes before Tax.

5.2.4 Results of the Financial Feasibility Analysis

The results of the Financial Feasibility for this Case Study at the Financial Internal Rate of

Return on the incomes before Taxes, are summarized as follows. In this case, the Project is

financially viable at the given conditions as stated hereinbefore.

Table 5-3 FIRRs on the Base Cases


Northern Mindanao Project

15.18% 11.15%

The detailed breakdown of Financial Internal Rate of Return, Payment Schedule and Cash

Flow Statement are shown in the Appendix 1.




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5.3 For the Investment Proposal at the Calabarzon Area

The Calabarzon Area is located adjacent to Metro Manila National Capital Region (NCR)

and covers the Provinces of Cavite, Rizal, Batangas, Laguna, and Quezon. The Calabarzon

Area is one of the emerging centers in the Industrialization Activities in the Republic and

large numbers of Industrial Processing Entity are located. Iron and Steel Industry and

Metal-casting Industry are the two of the Industry that uses Cokes for their metal processing.

Meantime, the Area is rich in Coconut Resources as well in particular in the Provinces of

Laguna, Batangas, and Quezon. It is therefore considered that the Area is suitable to conduct

the proposed Preliminary Feasibility Study.

Study Team has identified, through the recommendation of the Philippine Coconut Authority,

one Coconut Mill in Gumaca City, Quezon Province as a Case Study for the Preliminary

Feasibility Study so as that this Case Study can be applied for another case in the investment

in the Calabarzon Area as a generalized model. In the course of the analysis, more emphasis

has been given to the analysis of Financial Viability considering the nature of the Project that

shall be developed with the facility of a Project Finance.

5.3.1 Total required costs for the Project

(1) Composition of the Project Costs

The Capital Expenditures required for the development of this Project have been estimated

along with the above table 3-2.

5.3.2 Expected Revenues and Required Costs for the Project

(1) There should be three major Revenues derived from this Project;

a) Sale of Biomass-based Cokes being produced under this Project, to Metal Processing

Industry who uses Electric Furnace, Selling Price of the Biomass-based Cokes is set as

Philippine Peso 19.00 per kg.

b) Sale of CER on GHGs at Coconut Oil Mill being certified by the UNFCCC.

c) Saving cost of the waste timber being substituted by the exhaust gas heat from

carbonization of the husk.




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(2) The Breakdown of the Project Costs

The total project costs for the Project in Calabarzon Area are broken down in the above

table3-3.

5.3.3 Results of the Financial Viability Analysis (Analysis of FIRR)

Under this study, the Financial Viability of the Project was evaluated on the basis of the

Revenue and Cost derived from the Project for 15 years since its commencement of the

Operation, applying the method of Financial Internal Rate of Return (FIRR). In the

evaluation of the Financial Viability, results of FIRR shall be compared with the opportunity

cost which may arise from the Capital Cost to be applied for this Project.

○ Project Cash-In Flow

In-flow of Cash under this Project consists of (a) Equity and Borrowings for the Initial

Investment, (b) Sale of Biomass-based Cokes, (c) Sale of Carbon Credit derived by saving

from the Fuel and Operational Costs at the existing Coconut Oil Mill in Gumaca City,

Quezon Province.

(a) Equity and Borrowing for the Capital Investment

Among the total costs required for the development of the such Capital Outlays as

Carbonization Plants, Heat Exchanger, Bug Filter and other Ancillary Equipments, Civil

Works and Operational Costs in it first year, it was assumed that Ten (10) percent of the total

sums may be paid up by the Owner of Goldex Oil Mill Corporation to a Special Purpose

Company to be established for this Project as the Equity, and the rest of the Capital

Expenditures shall be covered by the Two-step Loan to be provided by JICA through the

Development Bank of the Philippines. Anticipated Capital Cost for discounting the revenues

may be summarized as follows;

Weighted Average Cost of Capital (WACC) is calculated as 1.51% per year, based on the

Composition of the Loans and Equity as stated hereinabove.

(b) Sale of the Biomass-based Cokes

For the calculation of Sale of Biomass-based Cokes, Unit Rate of 19.0 Philippine Peso or 38

Japanese Yen per Kilogram shall be applied according to the Market Price of imported

Fossil-resource-based Cokes from China.




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(c) Sale of Carbon Credit

For the calculation of Sale of Carbon Credit, Unit Rate of Japanese Yen 9,000 per one CO2

ton shall be applied.

○ Project Cash-out Flow

Cash-Out Flow of this Project consists of the following (d) to (g).

(d) Construction Costs

The Construction Costs for this Project were shown in the Table3-3, and these expenses shall

be paid out within one year from the commencement of the Project.

(e) O&M Costs

The O&M Costs for this Project was projected as labor cost which is estimated by 1,000

Philippine Peso per operator with 24hours-3rotation.

(f) Depreciation Costs

Such Major Initial Investment Costs as the Carbonization Plant, Heat Exchanger, Bug Filter

and Auxiliary Equipments shall be depreciated up to Ninety (90) percent of its costs at the

equal amount every year within 15 years time.

(g) Taxes

Any Tax applicable in Philippine for the procurement of Engineering Services, Construction

of the Building, Installation of Plants and Equipments and other activities shall be inclusive

of the costs estimated in each pay items, and the Income Tax derived from this Project is

deemed to be Thirty four percent on the Incomes before Tax.

5.3.4 Results of the Financial Feasibility Analysis

The results of the Financial Feasibility for this Case Study at the Financial Internal Rate of

Return on the incomes before Taxes, are summarized as follows. In this case, the Project is

financially viable at the given conditions as stated hereinbefore.




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Table 5-4 FIRRs on the Base Cases


Calabarzon Project 15.41% 11.33%

The detailed breakdown of Financial Internal Rate of Return, Payment Schedule and Cash

Flow Statement are shown in the Appendix 1.

5.4 Sensitivity Analysis on the Financial Internal Rate of Returns

The Sensitivity Analysis has been conducted for this Case Study with different assumption,

since the viability of the Project is differed. In the case of (1), FIRR before Tax shows 2.35%,

while FIRR after Tax is rather low as 1.51% which are not attractive as the investment by

the Business Entity. Thus the Sensitivity Analysis was conducted on what parameters can

improve FIRR higher, while what level of risks on the Project can sustain its viability in the

case of (2). The results of the Sensitivity Analysis are shown as follows.

(1) Case 1 : Biomass-based Cokes Production CPA in Calabarzon.

A. Increasing the Unit Sales Rate of CER.

In the Base Case Study, Unit Sales Rate of CER was set at Japanese Yen 3,000per CO2 ton.

Should this Unit Rate which is currently at lowest level due to economic recession

world-wide, hike up to the level of 4,000 Japanese Yen per CO2 ton, the FIRR will be

improved to 20.61% before the Tax and 15.25% after the Tax which are the levels

considered to be good for the investment.

B. Change in the Selling Unit Rates of Husk.

Should increase the buying Unit Rates of Husk from 2PP/kg to 5PP/kg under the FIRR

before Tax 15.18%, and the FIRR after Tax 11.15%, the Unit Sales Rate of CER would

increase 15,064t-CO2.

(2) Case 2 : Biomass-based Cokes Production CPA in Northern Mindanao.

A. Increasing the Unit Sales Rate of CER.

In the Base Case Study, Unit Sales Rate of CER was set at Japanese Yen 9,000 per CO2 ton.

Should this Unit Rate which is currently at lowest level due to economic recession




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world-wide, hike up to the level of 10,000 Japanese Yen per CO2 ton, the FIRR will be

improved to 23.68% before the Tax and 17.56% after the Tax which are the levels

considered to be good for the investment.

B. Change in the Selling Unit Rates of CER.

Should increase the buying Unit Rates of Husk from 2PP/kg to 5PP/kg under the FIRR

before Tax 15.41%, and the FIRR after Tax 11.33%, the Unit Sales Rate of CER would

increase 20,780t-CO2.

Study Report Chapter 6 Roadmap for the Project Implementation



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Chapter 6 : Roadmap for the Project Implementation

6.1 General

This Chapter discusses the three major activities along with the sequence of the Project

Implementation; Construction at the Project Sites, Trial Operation, and Personal and

Training Program for the Operators. Construction at the Project Sites includes Design

Development and Construction Works for the Project. Project boundary shall be clearly

defined between the existing Coconut Processing Systems and that of this Project. Trial

Operation is the activities to be conducted by the Contractor(s) of the Project in order to

ensure the performance of the designed capability of the Project, while Personnel and

Training Program for Operators shall be undertaken by the Implementation Agency of the

Project and may be supported by the public sectors such as Philippine Coconut Authority

(PCA) and Development Bank of the Philippines (DBP).

6.1.1 Construction at the Project Sites

The major part of the Project may be undertaken by local construction companies with

adequately qualified in terms of Technology and Financial capabilities. They shall undertake

the following Scope of Works and responsibility for overall quality of the works that are

required by the Project.

(1) Installation of Carbonization Plant, Heat Exchanger, Scrubber/Bug Filter and

Ancillary Equipments.

In order to make quality Biomass-based Cokes, these Plants and Equipments play important

roles within the entire systems. Alternative studies shall be conducted on the performances

between different set of the Plants and Equipments namely, the configuration of

Carbonization Plant, Heat Exchanger, Scrubber/Bug Filter and other Ancillary Equipments.

The best system model with proven experiences and performance records shall be selected

for the Carbonization Plant, Heat Exchanger, Scrubber/Bug Filter and other Ancillary

Equipments. And those Plants and Equipments shall be procured from the well-qualified

suppliers from Japan or other South-east Asian Countries.

(2) Civil Works for Foundation and Associated Facilities.

A Warehouse for stockpile of the Sun-dried Husks shall be provided within the yard of the

Coconut Processing Mill. Solid yet functional foundation shall be provided for heavy

Carbonization Plants and other Ancillary Equipments. Also, associated Power and Water

Supply Systems shall be installed in order to fully run the Plants and Equipments.




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6.1.2 Trial operation

As a reliable yet consistent Biomass-based Cokes Producer, the Project is required

uninterrupted operation once commenced its operation, around 8,400 hours of operation in a

year is ideal target based on the track records in the similar Projects. Therefore, the

operational integration with the existing Coconut Mill processing systems is very important

for better performance of the proposed Project. Trial Operation of the Systems shall be

conducted prior to the official handing over of the Project by the Contractor to the

Implementation Body which is known under this Project as CPA.

6.1.3 Personnel and Training Program for Operators

Operators for the Carbonization Plant, Heat Exchanger, Scrubber/Bug Filter and other

Ancillary Equipments must be stationed at the Project Site for a sound system operation.

Those Plant Operators shall be commonly engaged in the operations of the existing Coconut

Processing Plant and the proposed Biomass-based Coke Production Systems. In order to

make such integrated operations for two plants simultaneously; intensive On-the-Job

Trainings for Operator at the Mill shall be conducted for certain periods of time. The training

program for operators shall be conducted. The actual training program shall be conducted in

parallel with construction at the sites by the Contractor or Supplier who provided the Plants

and Equipments for the Project.

6.2 Proposed Project Implementation Structure

As discussed in Chapter 3.5, production of Biomass-cokes shall be done through a SPC to be

established for this particular purpose. Stakeholders of the SPC will be constituted either by

member of the existing Coconut Mill or configuration of member of existing Coconut Mill

and new investor from outside circles. This SPC will be functioned as a Programme of

Activities (PoA) within the context of the Programmatic CDM schemes. The SPC is a mean

that transacts various processes required for the implementation of the Project; Borrowing

and Repayment, Construction and Maintenance of the Plants and Equipments, Procuring the

Raw Materials and Marketing the Outputs, Operating the Production Plants and Cash Flow

Management, and more. Diagram of processes flow at the SPC level and that of Public

Sector are shown in the following Figure.




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National EconomicNational EconomicNational EconomicNational EconomicDevelopment AuthorityDevelopment AuthorityDevelopment AuthorityDevelopment Authority

(NEDA)(NEDA)(NEDA)(NEDA)

ProjectProjectProjectProjectManagementManagementManagementManagement

TeamTeamTeamTeam

Department of AgricultureDepartment of AgricultureDepartment of AgricultureDepartment of AgriculturePhilippine Coconut AuthorityPhilippine Coconut AuthorityPhilippine Coconut AuthorityPhilippine Coconut Authority

(PCA)(PCA)(PCA)(PCA)

Coordinating &Coordinating &Coordinating &Coordinating &Managing EntityManaging EntityManaging EntityManaging Entity

(CME)(CME)(CME)(CME)

Coconut MillCoconut MillCoconut MillCoconut Mill(Parent Firm)(Parent Firm)(Parent Firm)(Parent Firm)

Development Bank ofDevelopment Bank ofDevelopment Bank ofDevelopment Bank ofthe Philippinesthe Philippinesthe Philippinesthe Philippines

National CommissionNational CommissionNational CommissionNational Commissionfor CDMfor CDMfor CDMfor CDM(DENR)(DENR)(DENR)(DENR)

Middleman &Middleman &Middleman &Middleman &Coconut Grower'sCoconut Grower'sCoconut Grower'sCoconut Grower's

CooperativeCooperativeCooperativeCooperative

Special Purpose CompanySpecial Purpose CompanySpecial Purpose CompanySpecial Purpose Company(SPC)(SPC)(SPC)(SPC)

UNFCCCUNFCCCUNFCCCUNFCCC

Husk SupplyAgreement

Iron & Steel IndustryIron & Steel IndustryIron & Steel IndustryIron & Steel IndustryMetal Casting IndustryMetal Casting IndustryMetal Casting IndustryMetal Casting Industry

Buyer of CERBuyer of CERBuyer of CERBuyer of CERCDM SalesAgreement

Bio-cokes Sales Agreement

Fig 6-1 Proposed Project Implementation Structure

6.3 Proposed Project Implementation Schedule

6.3.1 Project Preparation Study

This Study was designed to check the viability of the Project at a Preliminary level and it is

essential to proceed to the level of full-scale Feasibility Study. The Project Preparation Study

which will be provided by JICA is one of the most potential resources for such study, and the

proposed schedule for such Study is forecasted as shown in the table below.




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No Process of Project Preparation Study １２３４５６７８９ 10 11 12

1 -Preparatory Works

in Japan

-Preparations of Field

Survey

2 -Field Survey

-Survey on PoA

Candidacies

-Philippine Coconut

Authority

-Coconut Mills in

Private Sector

(SPC Candidacies)

-Philippine Iron &

Steel Institute

-Philippine Metal

casting

Association, Inc.

-Terms & Conditions

on Purchasing the

Biomass-cokes

produced by the

Project

-Confirmation of

Application,

And EIA

-NEDA

-Department of

Agriculture

-JICA -Survey on the

required Conditions

in applying for ODA

Viability Analysis


in Japan

-Drafting the Project

Papers

4 -Field Survey -Presentation of the

Draft Report


in Japan

-Preparation of the

Final Report &

Presentation to JICA

6 -Coordination with

the Receipient

Country

-Presentation of the

Final Report

-Approval by the

Receipient Country

7 -Finalization of the

Agreement

-Negotiation and

Signing the Final

Agreement for Loan

Fig 6-2 Project Preparation Study implementation schedule

If viability of the Project is confirmed by the Project Preparation Study, official request for




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the implementation of the Project shall be prepared by the host Country. The scale and

boundary of the Project shall be determined through the Project Preparation Study, and

Preliminary Environmental Impact Assessment Study shall be conducted by the host

Country.

Prior to the finalization of Loan Agreement, there are several steps for discussion,

negotiation and approval by both Governments. The proposed Construction Schedule is

shown in the following Figure.

Years

Category

1st 2nd 3

rd 4

th 5

th

a)Detailed Engineering

b) Tendering

c)Manufacturing and Installation of Equipments - Carbonizing Plant - Biomass-boiler - Scrubber - Duct & Plumbing Works - E&M Works - Civil Works

d) Efficiency test Trial operation

Fig 6-3 Construction Schedule

As described in Chapters 3.5 and 6.1, Carbonization Plant and its ancillary equipments shall

be located and integrated with the existing Coconut Mill processing systems. However, it is

also discussed in Chapter 3.5, activity and performance from this Project shall be clearly

distinct from that of Coconut Mill processing systems. Thus, any cost for modernization and

improvement on the existing Plants and Equipments are excluded from this Study.

Appendix-1



APPENDIX 1

Appendix-1



A1-1

Appendix 1 : Financial Analysis

Case 1 Northern Coast of Mindanao - base case - General discription

General discription

Initial cost 305,000,000 JPY

Carbonization furnace 180,000,000 JPY

Grinder 10,000,000 JPY

Pelletizer 22,000,000 JPY

Husk dryer 4,000,000 JPY

Boiler and dust collection 24,000,000 JPY

Installation works 50,000,000 JPY

Expenses 10,000,000 JPY

Environment impact assessment 2,000,000 JPY

CDM Validation 3,000,000 JPY

Operation time

operating time per day 24 h/day

operating day per year 345 day/year

8,280 h/year

project period

period 15 year

Subsidy

subsidy 15 %

Equity

equity 10 %

Debt

ODA 75 %

ODA loan

WACC 1.51 %

Repayment period 15 year

Profit

CER 38,504,249 JPY/year

GHG reduction 12,835 t-CO2/year

CER unit price 3,000 JPY/t-CO2

Saved cokes in Steel plant 150,000,000 JPY/year

unit price ; 20PP/kg from China 40.0 JPY/kg

saving amount ; 7,500t/year , mi xed ra te 50%saving amount ; 7,500t/year , mi xed ra te 50%saving amount ; 7,500t/year , mi xed ra te 50%saving amount ; 7,500t/year , mi xed ra te 50% 3,7503,7503,7503,750 t/yeart/yeart/yeart/year

Saved kerosene in oil mill factory 32,713,896 JPY/year

unit price ; 40PP/L 80.0 JPY/L

saving amount ; 43.5GJ/day , 36.7GJ/kLsaving amount ; 43.5GJ/day , 36.7GJ/kLsaving amount ; 43.5GJ/day , 36.7GJ/kLsaving amount ; 43.5GJ/day , 36.7GJ/kL 409409409409 kL/yearkL/yearkL/yearkL/year

Husk-cokes selling 149,040,000 JPY/year

unit price ; 18PP/kg 36 JPY/kg

husk-cokes selling amount per day ; 12t/day 12 t/day

husk-cokes selling amount per year 4,140 t/year

Loss

O&M 20,700,000 JPY/year

Worker ;30（man・year）, 1,000PP/（man・day) 20,700,000 JPY/year

Husk purchase 93,840,000 JPY/year

unit price ; 2PP/kg 4 JPY//kg

husk purchase amount per day ; 68t/day 68 t/day

Electricity consumption 5,796,000 JPY/year

unit price ; 10PP/kWh 20.0 JPY/kWh

Carbonization furnace ; 5kW 41,400 kWh

Grinder ; 5kW 82,800 kWh

Pelletizer ; 5kW 41,400 kWh

Husk dryer ; 2kW 41,400 kWh

Boiler and scrubber ; 5kW 41,400 kWh

Husk Cutter ; 5kW 41,400 kWh

Electri c i ty consumpti onElectri c i ty consumpti onElectri c i ty consumpti onElectri c i ty consumpti on 289,800289,800289,800289,800 kWhkWhkWhkWh

Transportaion cost 33,810,000 JPY/year

Round-trip distance ; 2car, 5round-trip/day, 40km/round-trip distance 138,000 km/year

Diesel consumtion ; 4km/LDiesel consumtion ; 4km/LDiesel consumtion ; 4km/LDiesel consumtion ; 4km/L 34.534.534.534.5 kL/yearkL/yearkL/yearkL/year

Diesel unit price 80 JPY/L

fuel cost 2,760,000 JPY/year

Mileage including truck depreciation ; 15,000PP/day 10,350,000 JPY/year

Expensess including driver, load/unload work ; 30,000PP/day 20,700,000 JPY/year

C/M management cost 1,040,000 JPY/year

CPA monitoring 1,000,000 JPY/year

traffic ; 4round trip, 1person/trip 40,000 JPY/year

CPA management cost 1,000,000 JPY/year

Project monitoring 1,000,000 JPY/year

JPY/year

Verification 1,000,000 JPY/year

Expenses cost 15,718,600 JPY/CPA

10% of the total cost 15,718,600 JPY/CPA

Income taxes

Rate 30 %

Exchange rate

JPY/PP 2.00 JPY/PP

Quantity

Ap

pen

dix

-1

Pre

lim

inar

y F

easi

bil

ity S

tud

y o

n t

he

Pro

du

ctio

n

of

Bio

-Co

kes

an

d P

rogra

mm

atic

CD

M P

roje

ct

in t

he

Ph

ilip

pin

es, M

arch

20

10

, E

CFA

A1

-2

Cas

e1 N

ort

her

n C

oas

t o

f M

ind

anao

- b

ase

case

- F

inan

cial

anal

ysi

s

Pro

fit

& L

oss

unit

01

23

45

67

89

10

11

12

13

14

15

Pro

fit

JPY/yr

0220,2

58,1

46

220,2

58,1

46

220,2

58,1

46

220,2

58,1

46

220,2

58,1

46

220,2

58,1

46

220,2

58,1

46

220,2

58,1

46

220,2

58,1

46

220,2

58,1

46

220,2

58,1

46

220,2

58,1

46

220,2

58,1

46

220,2

58,1

46

220,2

58,1

46

CER

reve

nue

JPY/yr

038,5

04,2

49

38,5

04,2

49

38,5

04,2

49

38,5

04,2

49

38,5

04,2

49

38,5

04,2

49

38,5

04,2

49

38,5

04,2

49

38,5

04,2

49

38,5

04,2

49

38,5

04,2

49

38,5

04,2

49

38,5

04,2

49

38,5

04,2

49

38,5

04,2

49

uni

t pr

ice

JPY/t-

CO

23,0

00

3,0

00

3,0

00

3,0

00

3,0

00

3,0

00

3,0

00

3,0

00

3,0

00

3,0

00

3,0

00

3,0

00

3,0

00

3,0

00

3,0

00

3,0

00

GH

G r

educ

tion

t-C

O2/y

r0

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

Hus

k-co

kes s

ellin

gJPY/yr

0149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

uni

t pr

ice

JPY/kg

36.0

36.0

36.0

36.0

36.0

36.0

36.0

36.0

36.0

36.0

36.0

36.0

36.0

36.0

36.0

36.0

hus

k-co

kes

prod

uction

t/yr

04,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

Kero

sene

savin

g 0.0

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

uni

t pr

ice

JPY/kL

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

Kero

sene

sav

ing

amou

ntkL/

year

0.0

408.9

408.9

408.9

408.9

408.9

408.9

408.9

408.9

408.9

408.9

408.9

408.9

408.9

408.9

408.9

Loss

JPY/yr

0191,9

13,7

25

191,6

83,4

50

191,4

53,1

75

191,2

22,9

00

190,9

92,6

25

190,7

62,3

50

190,5

32,0

75

190,3

01,8

00

190,0

71,5

25

189,8

41,2

50

189,6

10,9

75

189,3

80,7

00

189,1

50,4

25

188,9

20,1

50

188,6

89,8

75

Dep

reci

atio

nJPY/yr

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

Con

stru

ctio

n c

ost

JPY

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

Subs

idy r

ate

%15

Life

tim

eyr

15

15

15

15

15

15

15

15

15

15

15

15

15

15

15

rem

aini

ng b

ook

valu

e at

begi

nnin

gJPY

259,2

50,0

00

243,6

95,0

00

228,1

40,0

00

212,5

85,0

00

197,0

30,0

00

181,4

75,0

00

165,9

20,0

00

150,3

65,0

00

134,8

10,0

00

119,2

55,0

00

103,7

00,0

00

88,1

45,0

00

72,5

90,0

00

57,0

35,0

00

57,0

35,0

00

rem

aini

ng b

ook

valu

e at

end

JPY

259,2

50,0

00

243,6

95,0

00

228,1

40,0

00

212,5

85,0

00

197,0

30,0

00

181,4

75,0

00

165,9

20,0

00

150,3

65,0

00

134,8

10,0

00

119,2

55,0

00

103,7

00,0

00

88,1

45,0

00

72,5

90,0

00

57,0

35,0

00

41,4

80,0

00

41,4

80,0

00

O&M

cos

tJPY/yr

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

Hus

k pu

rchas

eJPY/yr

93,8

40,0

00

93,8

40,0

00

93,8

40,0

00

93,8

40,0

00

93,8

40,0

00

93,8

40,0

00

93,8

40,0

00

93,8

40,0

00

93,8

40,0

00

93,8

40,0

00

93,8

40,0

00

93,8

40,0

00

93,8

40,0

00

93,8

40,0

00

93,8

40,0

00

Ele

ctrict

yJPY/yr

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

Tra

nspo

rtation

JPY/yr

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

C/M

man

agem

ent

cost

JPY/yr

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

CPA

man

agem

ent

cost

JPY/yr

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

Ver

ific

atio

nJPY/yr

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

Expe

nses

cost

JPY/yr

15,7

18,6

00

15,7

18,6

00

15,7

18,6

00

15,7

18,6

00

15,7

18,6

00

15,7

18,6

00

15,7

18,6

00

15,7

18,6

00

15,7

18,6

00

15,7

18,6

00

15,7

18,6

00

15,7

18,6

00

15,7

18,6

00

15,7

18,6

00

15,7

18,6

00

OD

A loan

rep

aym

ent

int

eres

tJPY/yr

03,4

54,1

25

3,2

23,8

50

2,9

93,5

75

2,7

63,3

00

2,5

33,0

25

2,3

02,7

50

2,0

72,4

75

1,8

42,2

00

1,6

11,9

25

1,3

81,6

50

1,1

51,3

75

921,1

00

690,8

25

460,5

50

230,2

75

rate

%1.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

1

repay

men

t pe

riod

yea

r15

15

15

15

15

15

15

15

15

15

15

15

15

15

15

bal

ance

beg

inni

ngJPY/yr

228,7

50,0

00

213,5

00,0

00

198,2

50,0

00

183,0

00,0

00

167,7

50,0

00

152,5

00,0

00

137,2

50,0

00

122,0

00,0

00

106,7

50,0

00

91,5

00,0

00

76,2

50,0

00

61,0

00,0

00

45,7

50,0

00

30,5

00,0

00

15,2

50,0

00

clo

sing

bala

nce

JPY/yr

228,7

50,0

00

213,5

00,0

00

198,2

50,0

00

183,0

00,0

00

167,7

50,0

00

152,5

00,0

00

137,2

50,0

00

122,0

00,0

00

106,7

50,0

00

91,5

00,0

00

76,2

50,0

00

61,0

00,0

00

45,7

50,0

00

30,5

00,0

00

15,2

50,0

00

0

Net

inc

ome

bef

ore

tax

JPY/yr

45,7

50,0

00

28,3

44,4

21

28,5

74,6

96

28,8

04,9

71

29,0

35,2

46

29,2

65,5

21

29,4

95,7

96

29,7

26,0

71

29,9

56,3

46

30,1

86,6

21

30,4

16,8

96

30,6

47,1

71

30,8

77,4

46

31,1

07,7

21

31,3

37,9

96

31,5

68,2

71

Tax

rate

%0.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

Net

inc

ome

aft

er

tax

JPY/yr

45,7

50,0

00

19,8

41,0

94

20,0

02,2

87

20,1

63,4

79

20,3

24,6

72

20,4

85,8

64

20,6

47,0

57

20,8

08,2

49

20,9

69,4

42

21,1

30,6

34

21,2

91,8

27

21,4

53,0

19

21,6

14,2

12

21,7

75,4

04

21,9

36,5

97

22,0

97,7

89

Cas

h f

low

uni

t0

12

34

56

78

910

11

12

13

14

15

Cas

h in

JPY/yr

305,0

00,0

00

35,3

96,0

94

35,5

57,2

87

35,7

18,4

79

35,8

79,6

72

36,0

40,8

64

36,2

02,0

57

36,3

63,2

49

36,5

24,4

42

36,6

85,6

34

36,8

46,8

27

37,0

08,0

19

37,1

69,2

12

37,3

30,4

04

37,4

91,5

97

37,6

52,7

89

Equi

tyJPY/yr

30,5

00,0

00

Loa

nJPY/yr

228,7

50,0

00

Net

inc

ome a

fter

tax

JPY/yr

45,7

50,0

00

19,8

41,0

94

20,0

02,2

87

20,1

63,4

79

20,3

24,6

72

20,4

85,8

64

20,6

47,0

57

20,8

08,2

49

20,9

69,4

42

21,1

30,6

34

21,2

91,8

27

21,4

53,0

19

21,6

14,2

12

21,7

75,4

04

21,9

36,5

97

22,0

97,7

89

Dep

reci

atio

nJPY/yr

015,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

Cas

h o

utJPY/yr

305,0

00,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

Ass

ets

under

cin

str

uct

ion

JPY/yr

305,0

00,0

00

Rep

aym

ent

JPY/yr

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

tota

lJPY/yr

020,1

46,0

94

20,3

07,2

87

20,4

68,4

79

20,6

29,6

72

20,7

90,8

64

20,9

52,0

57

21,1

13,2

49

21,2

74,4

42

21,4

35,6

34

21,5

96,8

27

21,7

58,0

19

21,9

19,2

12

22,0

80,4

04

22,2

41,5

97

22,4

02,7

89

Gra

nd t

otal

JPY/yr

020,1

46,0

94

40,4

53,3

81

60,9

21,8

61

81,5

51,5

33

102,3

42,3

97

123,2

94,4

54

144,4

07,7

04

165,6

82,1

46

187,1

17,7

80

208,7

14,6

07

230,4

72,6

27

252,3

91,8

39

274,4

72,2

43

296,7

13,8

40

319,1

16,6

30

Pre

FIR

R15

.18%

-274,5

00,0

00

47,3

53,5

46

47,3

53,5

46

47,3

53,5

46

47,3

53,5

46

47,3

53,5

46

47,3

53,5

46

47,3

53,5

46

47,3

53,5

46

47,3

53,5

46

47,3

53,5

46

47,3

53,5

46

47,3

53,5

46

47,3

53,5

46

47,3

53,5

46

47,3

53,5

46

DSC

Rm

ore

than

1.1

-2.

53

2.56

2.6

02.

632.

662.

70

2.7

32.

772.

812.

85

2.89

2.9

32.

973.

013.

06

Aft

er F

IRR

11.1

5%-274,5

00,0

00

38,8

50,2

19

38,7

81,1

37

38,7

12,0

54

38,6

42,9

72

38,5

73,8

89

38,5

04,8

07

38,4

35,7

24

38,3

66,6

42

38,2

97,5

59

38,2

28,4

77

38,1

59,3

94

38,0

90,3

12

38,0

21,2

29

37,9

52,1

47

37,8

83,0

64

DSC

Rm

ore

than

1.1

-2.

08

2.10

2.1

22.

152.

172.

19

2.2

22.

242.

272.

30

2.33

2.3

62.

392.

422.

45

Ap

pen

dix

-1

Pre

lim

inar

y F

easi

bil

ity S

tud

y o

n t

he

Pro

du

ctio

n

of

Bio

-Co

kes

an

d P

rogra

mm

atic

CD

M P

roje

ct

in t

he

Ph

ilip

pin

es, M

arch

20

10

, E

CFA

A1

-3

Cas

e1 N

ort

her

n C

oas

t o

f M

ind

anao

- A

. C

ER

pri

ce :

4,0

00JP

Y/k

g -

F

inan

cial

anal

ysi

s

Pro

fit

& L

oss

uni

t0

12

34

56

78

910

11

12

13

14

15

Pro

fit

JPY/yr

0233,0

92,8

95

233,0

92,8

95

233,0

92,8

95

233,0

92,8

95

233,0

92,8

95

233,0

92,8

95

233,0

92,8

95

233,0

92,8

95

233,0

92,8

95

233,0

92,8

95

233,0

92,8

95

233,0

92,8

95

233,0

92,8

95

233,0

92,8

95

233,0

92,8

95

CER

reve

nue

JPY/yr

051,3

38,9

99

51,3

38,9

99

51,3

38,9

99

51,3

38,9

99

51,3

38,9

99

51,3

38,9

99

51,3

38,9

99

51,3

38,9

99

51,3

38,9

99

51,3

38,9

99

51,3

38,9

99

51,3

38,9

99

51,3

38,9

99

51,3

38,9

99

51,3

38,9

99

uni

t pr

ice

JPY/t-

CO

24,0

00

4,0

00

4,0

00

4,0

00

4,0

00

4,0

00

4,0

00

4,0

00

4,0

00

4,0

00

4,0

00

4,0

00

4,0

00

4,0

00

4,0

00

4,0

00

GH

G r

educ

tion

t-C

O2/yr

012,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

Husk

-co

kes

selli

ng

JPY/yr

0149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

uni

t pr

ice

JPY/kg

36.0

36.0

36.0

36.0

36.0

36.0

36.0

36.0

36.0

36.0

36.0

36.0

36.0

36.0

36.0

36.0

hus

k-c

okes

pro

duct

ion

t/yr

04,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

Kero

sen

e s

avi

ng

0.0

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

uni

t pr

ice

JPY/kL

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

Kero

sene

savi

ng

amou

ntkL

/yea

r0.0

408.9

408.9

408.9

408.9

408.9

408.9

408.9

408.9

408.9

408.9

408.9

408.9

408.9

408.9

408.9

Los

sJPY/yr

0191,9

13,7

25

191,6

83,4

50

191,4

53,1

75

191,2

22,9

00

190,9

92,6

25

190,7

62,3

50

190,5

32,0

75

190,3

01,8

00

190,0

71,5

25

189,8

41,2

50

189,6

10,9

75

189,3

80,7

00

189,1

50,4

25

188,9

20,1

50

188,6

89,8

75

Depr

ecia

tion

JPY/yr

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

Con

stru

ctio

n co

stJPY

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

Subs

idy r

ate

%15

Life

tim

eyr

15

15

15

15

15

15

15

15

15

15

15

15

15

15

15

rem

ain

ing

boo

k v

alu

e a

t be

ginni

ng

JPY

259,2

50,0

00

243,6

95,0

00

228,1

40,0

00

212,5

85,0

00

197,0

30,0

00

181,4

75,0

00

165,9

20,0

00

150,3

65,0

00

134,8

10,0

00

119,2

55,0

00

103,7

00,0

00

88,1

45,0

00

72,5

90,0

00

57,0

35,0

00

57,0

35,0

00

rem

ain

ing

boo

k v

alu

e a

t en

dJPY

259,2

50,0

00

243,6

95,0

00

228,1

40,0

00

212,5

85,0

00

197,0

30,0

00

181,4

75,0

00

165,9

20,0

00

150,3

65,0

00

134,8

10,0

00

119,2

55,0

00

103,7

00,0

00

88,1

45,0

00

72,5

90,0

00

57,0

35,0

00

41,4

80,0

00

41,4

80,0

00

O&M

cost

JPY/yr

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

Husk

pur

cha

se

JPY/yr

93,8

40,0

00

93,8

40,0

00

93,8

40,0

00

93,8

40,0

00

93,8

40,0

00

93,8

40,0

00

93,8

40,0

00

93,8

40,0

00

93,8

40,0

00

93,8

40,0

00

93,8

40,0

00

93,8

40,0

00

93,8

40,0

00

93,8

40,0

00

93,8

40,0

00

Ele

ctrict

yJPY/yr

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

Tra

nspo

rtation

JPY/yr

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

C/M

man

agem

ent

cos

tJPY/yr

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

CPA

man

agem

ent

cos

tJPY/yr

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

Verifica

tion

JPY/yr

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

Expe

nses

cos

tJPY/yr

15,7

18,6

00

15,7

18,6

00

15,7

18,6

00

15,7

18,6

00

15,7

18,6

00

15,7

18,6

00

15,7

18,6

00

15,7

18,6

00

15,7

18,6

00

15,7

18,6

00

15,7

18,6

00

15,7

18,6

00

15,7

18,6

00

15,7

18,6

00

15,7

18,6

00

OD

A loan

repa

ymen

t in

tere

stJPY/yr

03,4

54,1

25

3,2

23,8

50

2,9

93,5

75

2,7

63,3

00

2,5

33,0

25

2,3

02,7

50

2,0

72,4

75

1,8

42,2

00

1,6

11,9

25

1,3

81,6

50

1,1

51,3

75

921,1

00

690,8

25

460,5

50

230,2

75

rate

%1.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

1

repay

ment

per

iod

year

15

15

15

15

15

15

15

15

15

15

15

15

15

15

15

bal

anc

e b

egi

nni

ng

JPY/yr

228,7

50,0

00

213,5

00,0

00

198,2

50,0

00

183,0

00,0

00

167,7

50,0

00

152,5

00,0

00

137,2

50,0

00

122,0

00,0

00

106,7

50,0

00

91,5

00,0

00

76,2

50,0

00

61,0

00,0

00

45,7

50,0

00

30,5

00,0

00

15,2

50,0

00

clo

sin

g b

alan

ce

JPY/yr

228,7

50,0

00

213,5

00,0

00

198,2

50,0

00

183,0

00,0

00

167,7

50,0

00

152,5

00,0

00

137,2

50,0

00

122,0

00,0

00

106,7

50,0

00

91,5

00,0

00

76,2

50,0

00

61,0

00,0

00

45,7

50,0

00

30,5

00,0

00

15,2

50,0

00

0

Net

inco

me

befo

re t

ax

JPY/yr

45,7

50,0

00

41,1

79,1

70

41,4

09,4

45

41,6

39,7

20

41,8

69,9

95

42,1

00,2

70

42,3

30,5

45

42,5

60,8

20

42,7

91,0

95

43,0

21,3

70

43,2

51,6

45

43,4

81,9

20

43,7

12,1

95

43,9

42,4

70

44,1

72,7

45

44,4

03,0

20

Tax

rate

%0.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

Net

inco

me

afte

r ta

xJPY/yr

45,7

50,0

00

28,8

25,4

19

28,9

86,6

12

29,1

47,8

04

29,3

08,9

97

29,4

70,1

89

29,6

31,3

82

29,7

92,5

74

29,9

53,7

67

30,1

14,9

59

30,2

76,1

52

30,4

37,3

44

30,5

98,5

37

30,7

59,7

29

30,9

20,9

22

31,0

82,1

14

Cash

flo

wun

it0

12

34

56

78

910

11

12

13

14

15

Cash

in

JPY/yr

305,0

00,0

00

44,3

80,4

19

44,5

41,6

12

44,7

02,8

04

44,8

63,9

97

45,0

25,1

89

45,1

86,3

82

45,3

47,5

74

45,5

08,7

67

45,6

69,9

59

45,8

31,1

52

45,9

92,3

44

46,1

53,5

37

46,3

14,7

29

46,4

75,9

22

46,6

37,1

14

Equi

tyJPY/yr

30,5

00,0

00

Loa

nJPY/yr

228,7

50,0

00

Net

incom

e af

ter

tax

JPY/yr

45,7

50,0

00

28,8

25,4

19

28,9

86,6

12

29,1

47,8

04

29,3

08,9

97

29,4

70,1

89

29,6

31,3

82

29,7

92,5

74

29,9

53,7

67

30,1

14,9

59

30,2

76,1

52

30,4

37,3

44

30,5

98,5

37

30,7

59,7

29

30,9

20,9

22

31,0

82,1

14

Depr

ecia

tion

JPY/yr

015,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

Cash

out

JPY/yr

305,0

00,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

Asse

ts u

nde

r cin

str

uction

JPY/yr

305,0

00,0

00

Repa

ym

ent

JPY/yr

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

tota

lJPY/yr

029,1

30,4

19

29,2

91,6

12

29,4

52,8

04

29,6

13,9

97

29,7

75,1

89

29,9

36,3

82

30,0

97,5

74

30,2

58,7

67

30,4

19,9

59

30,5

81,1

52

30,7

42,3

44

30,9

03,5

37

31,0

64,7

29

31,2

25,9

22

31,3

87,1

14

Gra

nd

tota

lJPY/yr

029,1

30,4

19

58,4

22,0

31

87,8

74,8

35

117,4

88,8

32

147,2

64,0

21

177,2

00,4

03

207,2

97,9

78

237,5

56,7

44

267,9

76,7

04

298,5

57,8

55

329,3

00,2

00

360,2

03,7

37

391,2

68,4

66

422,4

94,3

88

453,8

81,5

02

Pre

FIR

R20

.61%

-274,5

00,0

00

60,1

88,2

95

60,1

88,2

95

60,1

88,2

95

60,1

88,2

95

60,1

88,2

95

60,1

88,2

95

60,1

88,2

95

60,1

88,2

95

60,1

88,2

95

60,1

88,2

95

60,1

88,2

95

60,1

88,2

95

60,1

88,2

95

60,1

88,2

95

60,1

88,2

95

DSC

Rm

ore

tha

n 1.

1-

3.2

23.2

63.

30

3.34

3.38

3.4

33.4

73.

523.

573.6

23.6

73.7

23.

783.

833.8

9

Aft

er F

IRR

15.2

5%

-274,5

00,0

00

47,8

34,5

44

47,7

65,4

62

47,6

96,3

79

47,6

27,2

97

47,5

58,2

14

47,4

89,1

32

47,4

20,0

49

47,3

50,9

67

47,2

81,8

84

47,2

12,8

02

47,1

43,7

19

47,0

74,6

37

47,0

05,5

54

46,9

36,4

72

46,8

67,3

89

DSC

Rm

ore

tha

n 1.

1-

2.5

62.5

92.

61

2.64

2.67

2.7

12.7

42.

772.

802.8

42.8

72.9

12.

952.

993.0

3

Ap

pen

dix

-1

Pre

lim

inar

y F

easi

bil

ity S

tud

y o

n t

he

Pro

du

ctio

n

of

Bio

-Co

kes

an

d P

rogra

mm

atic

CD

M P

roje

ct

in t

he

Ph

ilip

pin

es, M

arch

20

10

, E

CFA

A1

-4

Cas

e1 N

ort

her

n C

oas

t o

f M

ind

anao

– B

. h

usk

pu

rchas

e p

rice

: 5

PP

/kg -

Fin

anci

al a

nal

ysi

s

Pro

fit

& L

oss

unit

01

23

45

67

89

10

11

12

13

14

15

Pro

fit

JPY/y

r0

375,0

96,5

67

375,0

96,5

67

375,0

96,5

67

375,0

96,5

67

375,0

96,5

67

375,0

96,5

67

375,0

96,5

67

375,0

96,5

67

375,0

96,5

67

375,0

96,5

67

375,0

96,5

67

375,0

96,5

67

375,0

96,5

67

375,0

96,5

67

375,0

96,5

67

CER

rev

enue

JPY/y

r0

193,3

42,6

70

193,3

42,6

70

193,3

42,6

70

193,3

42,6

70

193,3

42,6

70

193,3

42,6

70

193,3

42,6

70

193,3

42,6

70

193,3

42,6

70

193,3

42,6

70

193,3

42,6

70

193,3

42,6

70

193,3

42,6

70

193,3

42,6

70

193,3

42,6

70

unit p

rice

JPY/t

-CO

215,0

64

15,0

64

15,0

64

15,0

64

15,0

64

15,0

64

15,0

64

15,0

64

15,0

64

15,0

64

15,0

64

15,0

64

15,0

64

15,0

64

15,0

64

15,0

64

GH

G r

educ

tion

t-C

O2/y

r0

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

12,8

35

Hus

k-coke

s se

lling

JPY/y

r0

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

149,0

40,0

00

unit p

rice

JPY/k

g36.0

36.0

36.0

36.0

36.0

36.0

36.0

36.0

36.0

36.0

36.0

36.0

36.0

36.0

36.0

36.0

husk

-cokes

pro

duct

ion

t/yr

04,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

4,1

40

Ker

ose

ne s

avin

g 0.0

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

32,7

13,8

96

unit p

rice

JPY/k

L80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

Ker

ose

ne s

avin

g am

ount

kL/y

ear

0.0

408.9

408.9

408.9

408.9

408.9

408.9

408.9

408.9

408.9

408.9

408.9

408.9

408.9

408.9

408.9

Loss

JPY/y

r0

346,7

49,7

25

346,5

19,4

50

346,2

89,1

75

346,0

58,9

00

345,8

28,6

25

345,5

98,3

50

345,3

68,0

75

345,1

37,8

00

344,9

07,5

25

344,6

77,2

50

344,4

46,9

75

344,2

16,7

00

343,9

86,4

25

343,7

56,1

50

343,5

25,8

75

Dep

reci

ation

JPY/y

r15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

Cons

truc

tion

cost

JPY

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

305,0

00,0

00

Sub

sidy

rate

%15

Life

tim

eyr

15

15

15

15

15

15

15

15

15

15

15

15

15

15

15

rem

ain

ing

book

valu

e at

begi

nnin

gJPY

259,2

50,0

00

243,6

95,0

00

228,1

40,0

00

212,5

85,0

00

197,0

30,0

00

181,4

75,0

00

165,9

20,0

00

150,3

65,0

00

134,8

10,0

00

119,2

55,0

00

103,7

00,0

00

88,1

45,0

00

72,5

90,0

00

57,0

35,0

00

57,0

35,0

00

rem

ain

ing

book

valu

e at

end

JPY

259,2

50,0

00

243,6

95,0

00

228,1

40,0

00

212,5

85,0

00

197,0

30,0

00

181,4

75,0

00

165,9

20,0

00

150,3

65,0

00

134,8

10,0

00

119,2

55,0

00

103,7

00,0

00

88,1

45,0

00

72,5

90,0

00

57,0

35,0

00

41,4

80,0

00

41,4

80,0

00

O&M

cost

JPY/y

r20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

20,7

00,0

00

Hus

k pu

rcha

se

JPY/y

r234,6

00,0

00

234,6

00,0

00

234,6

00,0

00

234,6

00,0

00

234,6

00,0

00

234,6

00,0

00

234,6

00,0

00

234,6

00,0

00

234,6

00,0

00

234,6

00,0

00

234,6

00,0

00

234,6

00,0

00

234,6

00,0

00

234,6

00,0

00

234,6

00,0

00

Ele

ctr

icty

JPY/y

r5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

5,7

96,0

00

Tra

nsport

ation

JPY/y

r33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

33,8

10,0

00

C/M

mana

gem

ent

cost

JPY/y

r1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

CPA

mana

gem

ent

cost

JPY/y

r1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

Ver

ific

ation

JPY/y

r1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

Exp

ense

s co

stJPY/y

r29,7

94,6

00

29,7

94,6

00

29,7

94,6

00

29,7

94,6

00

29,7

94,6

00

29,7

94,6

00

29,7

94,6

00

29,7

94,6

00

29,7

94,6

00

29,7

94,6

00

29,7

94,6

00

29,7

94,6

00

29,7

94,6

00

29,7

94,6

00

29,7

94,6

00

OD

A loan

repa

ym

ent

inte

rest

JPY/y

r0

3,4

54,1

25

3,2

23,8

50

2,9

93,5

75

2,7

63,3

00

2,5

33,0

25

2,3

02,7

50

2,0

72,4

75

1,8

42,2

00

1,6

11,9

25

1,3

81,6

50

1,1

51,3

75

921,1

00

690,8

25

460,5

50

230,2

75

rate

%1.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

1

repaym

ent

period

yea

r15

15

15

15

15

15

15

15

15

15

15

15

15

15

15

bala

nce

begi

nnin

gJPY/y

r228,7

50,0

00

213,5

00,0

00

198,2

50,0

00

183,0

00,0

00

167,7

50,0

00

152,5

00,0

00

137,2

50,0

00

122,0

00,0

00

106,7

50,0

00

91,5

00,0

00

76,2

50,0

00

61,0

00,0

00

45,7

50,0

00

30,5

00,0

00

15,2

50,0

00

closi

ng b

ala

nce

JPY/y

r228,7

50,0

00

213,5

00,0

00

198,2

50,0

00

183,0

00,0

00

167,7

50,0

00

152,5

00,0

00

137,2

50,0

00

122,0

00,0

00

106,7

50,0

00

91,5

00,0

00

76,2

50,0

00

61,0

00,0

00

45,7

50,0

00

30,5

00,0

00

15,2

50,0

00

0

Net

inc

om

e be

fore

tax

JPY/y

r45,7

50,0

00

28,3

46,8

42

28,5

77,1

17

28,8

07,3

92

29,0

37,6

67

29,2

67,9

42

29,4

98,2

17

29,7

28,4

92

29,9

58,7

67

30,1

89,0

42

30,4

19,3

17

30,6

49,5

92

30,8

79,8

67

31,1

10,1

42

31,3

40,4

17

31,5

70,6

92

Tax

rate

%0.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

Net

inc

om

e aft

er t

ax

JPY/y

r45,7

50,0

00

19,8

42,7

89

20,0

03,9

82

20,1

65,1

74

20,3

26,3

67

20,4

87,5

59

20,6

48,7

52

20,8

09,9

44

20,9

71,1

37

21,1

32,3

29

21,2

93,5

22

21,4

54,7

14

21,6

15,9

07

21,7

77,0

99

21,9

38,2

92

22,0

99,4

84

Cash

flo

wun

it0

12

34

56

78

910

11

12

13

14

15

Cash

in

JPY/y

r305,0

00,0

00

35,3

97,7

89

35,5

58,9

82

35,7

20,1

74

35,8

81,3

67

36,0

42,5

59

36,2

03,7

52

36,3

64,9

44

36,5

26,1

37

36,6

87,3

29

36,8

48,5

22

37,0

09,7

14

37,1

70,9

07

37,3

32,0

99

37,4

93,2

92

37,6

54,4

84

Equ

ity

JPY/y

r30,5

00,0

00

Loan

JPY/y

r228,7

50,0

00

Net

inc

om

e aft

er t

ax

JPY/y

r45,7

50,0

00

19,8

42,7

89

20,0

03,9

82

20,1

65,1

74

20,3

26,3

67

20,4

87,5

59

20,6

48,7

52

20,8

09,9

44

20,9

71,1

37

21,1

32,3

29

21,2

93,5

22

21,4

54,7

14

21,6

15,9

07

21,7

77,0

99

21,9

38,2

92

22,0

99,4

84

Dep

reci

ation

JPY/y

r0

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

15,5

55,0

00

Cash

out

JPY/y

r305,0

00,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

Ass

ets

unde

r ci

nstr

uction

JPY/y

r305,0

00,0

00

Rep

aym

ent

JPY/y

r15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

15,2

50,0

00

tota

lJPY/y

r0

20,1

47,7

89

20,3

08,9

82

20,4

70,1

74

20,6

31,3

67

20,7

92,5

59

20,9

53,7

52

21,1

14,9

44

21,2

76,1

37

21,4

37,3

29

21,5

98,5

22

21,7

59,7

14

21,9

20,9

07

22,0

82,0

99

22,2

43,2

92

22,4

04,4

84

Gra

nd

tota

lJPY/y

r0

20,1

47,7

89

40,4

56,7

71

60,9

26,9

45

81,5

58,3

11

102,3

50,8

70

123,3

04,6

22

144,4

19,5

66

165,6

95,7

03

187,1

33,0

32

208,7

31,5

53

230,4

91,2

67

252,4

12,1

74

274,4

94,2

73

296,7

37,5

65

319,1

42,0

49

Pre

FIR

R15

.18%

-274,5

00,0

00

47,3

55,9

67

47,3

55,9

67

47,3

55,9

67

47,3

55,9

67

47,3

55,9

67

47,3

55,9

67

47,3

55,9

67

47,3

55,9

67

47,3

55,9

67

47,3

55,9

67

47,3

55,9

67

47,3

55,9

67

47,3

55,9

67

47,3

55,9

67

47,3

55,9

67

DSC

Rm

ore

than

1.1

-2.

532.

562.

602.6

32.

662.

702.7

32.

772.

812.

852.

892.

932.

973.

01

3.06

Aft

er F

IRR

11.1

5%-274,5

00,0

00

38,8

51,9

14

38,7

82,8

32

38,7

13,7

49

38,6

44,6

67

38,5

75,5

84

38,5

06,5

02

38,4

37,4

19

38,3

68,3

37

38,2

99,2

54

38,2

30,1

72

38,1

61,0

89

38,0

92,0

07

38,0

22,9

24

37,9

53,8

42

37,8

84,7

59

DSC

Rm

ore

than

1.1

-2.

082.

102.

122.1

52.

172.

192.2

22.

242.

272.

302.

332.

362.

392.

42

2.45

Appendix-1



A1-5

Case 2 Gumaca - base case - General discription

General discription

Initial cost 71,000,000 JPY

Carbonization furnace 45,000,000 JPY

Grinder 4,000,000 JPY

Pelletizer 6,000,000 JPY

Husk dryer 1,000,000 JPY

Boiler and dust collection 0 JPY

Installation works and Expenses 10,000,000 JPY

Environment impact assessment 2,000,000 JPY

CDM Validation 3,000,000 JPY

Operation time

operating time per day 24 h/day

operating day per year 345 day/year

8,280 h/year

project period

period 15 year

Subsidy

subsidy 15 %

Equity

equity 10 %

Debt

ODA 75 %

ODA loan

WACC 1.51 %

Repayment period 15 year

Profit

CER 41,752,631 JPY/year

GHG reduction 4,639 t-CO2/year

CER unit price 9,000 JPY/t-CO2

Saved cokes in Steel plant 57,960,000 JPY/year

unit price ; 20PP/kg from China 40.0 JPY/kg

sav ing amount ; 4.2t/daysav ing amount ; 4.2t/daysav ing amount ; 4.2t/daysav ing amount ; 4.2t/day 1,4491,4491,4491,449 t/yeart/yeart/yeart/year

Saved kerosene in oil mill factory 5,790,736 JPY/year

unit price ; 40PP/L 80.0 JPY/L

sav ing amount ; 7.7GJ/day , 36.7GJ/kLsav ing amount ; 7.7GJ/day , 36.7GJ/kLsav ing amount ; 7.7GJ/day , 36.7GJ/kLsav ing amount ; 7.7GJ/day , 36.7GJ/kL 72727272 kL/yearkL/yearkL/yearkL/year

Husk-cokes selling 55,062,000 JPY/year

unit price ; 19PP/kg 38 JPY/kg

husk-cokes selling amount per day ; 4.2t/day 4.2 t/day

husk-cokes selling amount per year 1,449 t/year

Loss

O&M 4,140,000 JPY/year

Worker ;6（man・year）, 1,000PP/（man・day) 4,140,000 JPY/year

Husk purchase 33,120,000 JPY/year

unit price ; 2PP/kg 4 JPY//kg

husk purchase amount per day ; 24t/day 24 t/day

Electricity consumption 3,312,000 JPY/year

unit price ; 10PP/kWh 20.0 JPY/kWh

Carbonization furnace ; 2kW 16,560 kWh

Grinder ; 5kW 41,400 kWh

Pelletizer ; 5kW 41,400 kWh

Husk dryer ; 2kW 16,560 kWh

Boiler and scrubber ; 3kW 24,840 kWh

Husk Cutter ; 3kW 24,840 kWh

Electri ci ty consumptionElectri ci ty consumptionElectri ci ty consumptionElectri ci ty consumption 165,600165,600165,600165,600 kWhkWhkWhkWh

Transportaion cost 24t-husk/day from farmer to oil mill factory 33,810,000 JPY/year




fuel cost 2,760,000 JPY/year



Transportaion cost 4.2t-husk-cokes/day from oil mill factory to iron steel plant 5,724,300 JPY/year




fuel cost 100,800 JPY/year



C/M management cost 1,040,000 JPY/year

CPA monitoring 1,000,000 JPY/year

traffic ; 4round trip, 1person/trip 40,000 JPY/year

CPA management cost 1,000,000 JPY/year

Project monitoring 1,000,000 JPY/year

JPY/year

Verification 1,000,000 JPY/year

Expenses cost 8,314,630 JPY/CPA

10% of the total cost 8,314,630 JPY/CPA

Income taxes

Rate 30 %

Exchange rate

JPY/PP 2.00 JPY/PP

Quantity

Ap

pen

dix

-1

Pre

lim

inar

y F

easi

bil

ity S

tud

y o

n t

he

Pro

du

ctio

n

of

Bio

-Co

kes

an

d P

rogra

mm

atic

CD

M P

roje

ct

in t

he

Ph

ilip

pin

es, M

arch

20

10

, E

CFA

A1

-6

Cas

e 2

Gu

mac

a -

bas

e ca

se -

Fin

anci

al a

nal

ysi

s

Pro

fit

& L

oss

unit

01

23

45

67

89

10

11

12

13

14

15

Pro

fit

JPY/yr

0102,6

05,3

67

102,6

05,3

67

102,6

05,3

67

102,6

05,3

67

102,6

05,3

67

102,6

05,3

67

102,6

05,3

67

102,6

05,3

67

102,6

05,3

67

102,6

05,3

67

102,6

05,3

67

102,6

05,3

67

102,6

05,3

67

102,6

05,3

67

102,6

05,3

67

CER

rev

enue

JPY/yr

041,7

52,6

31

41,7

52,6

31

41,7

52,6

31

41,7

52,6

31

41,7

52,6

31

41,7

52,6

31

41,7

52,6

31

41,7

52,6

31

41,7

52,6

31

41,7

52,6

31

41,7

52,6

31

41,7

52,6

31

41,7

52,6

31

41,7

52,6

31

41,7

52,6

31

unit p

rice

JPY/t-

CO

29,0

00

9,0

00

9,0

00

9,0

00

9,0

00

9,0

00

9,0

00

9,0

00

9,0

00

9,0

00

9,0

00

9,0

00

9,0

00

9,0

00

9,0

00

9,0

00

GH

G r

edu

ction

t-C

O2/yr

04,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

Husk-

cokes s

ellin

gJPY/yr

055,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

unit p

rice

JPY/kg

38.0

38.0

38.0

38.0

38.0

38.0

38.0

38.0

38.0

38.0

38.0

38.0

38.0

38.0

38.0

38.0

husk-c

okes p

rodu

ction

t/yr

01,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

Kero

sene s

avin

g

0.0

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

unit p

rice

JPY/kL

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

Ker

osene

savi

ng a

mount

kL/year

0.0

72.4

72.4

72.4

72.4

72.4

72.4

72.4

72.4

72.4

72.4

72.4

72.4

72.4

72.4

72.4

Loss

JPY/yr

095,8

86,0

05

95,8

32,4

00

95,7

78,7

95

95,7

25,1

90

95,6

71,5

85

95,6

17,9

80

95,5

64,3

75

95,5

10,7

70

95,4

57,1

65

95,4

03,5

60

95,3

49,9

55

95,2

96,3

50

95,2

42,7

45

95,1

89,1

40

95,1

35,5

35

Depre

cia

tion

JPY/yr

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

Constr

uction c

ost

JPY

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

Sub

sid

y r

ate

%15

Life t

ime

yr

15

15

15

15

15

15

15

15

15

15

15

15

15

15

15

rem

ain

ing b

ook v

alu

e a

t begin

nin

gJPY

60,3

50,0

00

56,7

29,0

00

53,1

08,0

00

49,4

87,0

00

45,8

66,0

00

42,2

45,0

00

38,6

24,0

00

35,0

03,0

00

31,3

82,0

00

27,7

61,0

00

24,1

40,0

00

20,5

19,0

00

16,8

98,0

00

13,2

77,0

00

13,2

77,0

00

rem

ain

ing b

ook v

alu

e a

t end

JPY

60,3

50,0

00

56,7

29,0

00

53,1

08,0

00

49,4

87,0

00

45,8

66,0

00

42,2

45,0

00

38,6

24,0

00

35,0

03,0

00

31,3

82,0

00

27,7

61,0

00

24,1

40,0

00

20,5

19,0

00

16,8

98,0

00

13,2

77,0

00

9,6

56,0

00

9,6

56,0

00

O&M

cos

tJPY/yr

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

Husk

purc

hase

JPY/yr

33,1

20,0

00

33,1

20,0

00

33,1

20,0

00

33,1

20,0

00

33,1

20,0

00

33,1

20,0

00

33,1

20,0

00

33,1

20,0

00

33,1

20,0

00

33,1

20,0

00

33,1

20,0

00

33,1

20,0

00

33,1

20,0

00

33,1

20,0

00

33,1

20,0

00

Ele

ctr

icty

JPY/yr

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

Tra

nsport

ation

JPY/yr

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

C/M

manag

em

ent

cos

tJPY/yr

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

CPA

manag

em

ent

cos

tJPY/yr

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

Verificat

ion

JPY/yr

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

Expense

s c

ost

JPY/yr

8,3

14,6

30

8,3

14,6

30

8,3

14,6

30

8,3

14,6

30

8,3

14,6

30

8,3

14,6

30

8,3

14,6

30

8,3

14,6

30

8,3

14,6

30

8,3

14,6

30

8,3

14,6

30

8,3

14,6

30

8,3

14,6

30

8,3

14,6

30

8,3

14,6

30

OD

A loa

n r

epaym

ent

inte

rest

JPY/yr

0804,0

75

750,4

70

696,8

65

643,2

60

589,6

55

536,0

50

482,4

45

428,8

40

375,2

35

321,6

30

268,0

25

214,4

20

160,8

15

107,2

10

53,6

05

rate

%1.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

1

repa

ym

ent

per

iod

year

15

15

15

15

15

15

15

15

15

15

15

15

15

15

15

bala

nce b

egin

nin

gJPY/yr

53,2

50,0

00

49,7

00,0

00

46,1

50,0

00

42,6

00,0

00

39,0

50,0

00

35,5

00,0

00

31,9

50,0

00

28,4

00,0

00

24,8

50,0

00

21,3

00,0

00

17,7

50,0

00

14,2

00,0

00

10,6

50,0

00

7,1

00,0

00

3,5

50,0

00

clo

sin

g b

ala

nce

JPY/yr

53,2

50,0

00

49,7

00,0

00

46,1

50,0

00

42,6

00,0

00

39,0

50,0

00

35,5

00,0

00

31,9

50,0

00

28,4

00,0

00

24,8

50,0

00

21,3

00,0

00

17,7

50,0

00

14,2

00,0

00

10,6

50,0

00

7,1

00,0

00

3,5

50,0

00

0

Net

incom

e b

efo

re t

axJPY/yr

10,6

50,0

00

6,7

19,3

62

6,7

72,9

67

6,8

26,5

72

6,8

80,1

77

6,9

33,7

82

6,9

87,3

87

7,0

40,9

92

7,0

94,5

97

7,1

48,2

02

7,2

01,8

07

7,2

55,4

12

7,3

09,0

17

7,3

62,6

22

7,4

16,2

27

7,4

69,8

32

Tax r

ate

%0.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

Net

incom

e a

fter

tax

JPY/yr

10,6

50,0

00

4,7

03,5

53

4,7

41,0

77

4,7

78,6

00

4,8

16,1

24

4,8

53,6

47

4,8

91,1

71

4,9

28,6

94

4,9

66,2

18

5,0

03,7

41

5,0

41,2

65

5,0

78,7

88

5,1

16,3

12

5,1

53,8

35

5,1

91,3

59

5,2

28,8

82

Cash f

low

unit

01

23

45

67

89

10

11

12

13

14

15

Cash in

JPY/yr

71,0

00,0

00

8,3

24,5

53

8,3

62,0

77

8,3

99,6

00

8,4

37,1

24

8,4

74,6

47

8,5

12,1

71

8,5

49,6

94

8,5

87,2

18

8,6

24,7

41

8,6

62,2

65

8,6

99,7

88

8,7

37,3

12

8,7

74,8

35

8,8

12,3

59

8,8

49,8

82

Equity

JPY/yr

7,1

00,0

00

Loa

nJPY/yr

53,2

50,0

00

Net

inco

me a

fter

tax

JPY/yr

10,6

50,0

00

4,7

03,5

53

4,7

41,0

77

4,7

78,6

00

4,8

16,1

24

4,8

53,6

47

4,8

91,1

71

4,9

28,6

94

4,9

66,2

18

5,0

03,7

41

5,0

41,2

65

5,0

78,7

88

5,1

16,3

12

5,1

53,8

35

5,1

91,3

59

5,2

28,8

82

Depre

cia

tion

JPY/yr

03,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

Cash o

ut

JPY/yr

71,0

00,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

Asset

s u

nder

cin

stru

ction

JPY/yr

71,0

00,0

00

Repay

ment

JPY/yr

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

tota

lJPY/yr

04,7

74,5

53

4,8

12,0

77

4,8

49,6

00

4,8

87,1

24

4,9

24,6

47

4,9

62,1

71

4,9

99,6

94

5,0

37,2

18

5,0

74,7

41

5,1

12,2

65

5,1

49,7

88

5,1

87,3

12

5,2

24,8

35

5,2

62,3

59

5,2

99,8

82

Gra

nd t

ota

lJPY/yr

04,7

74,5

53

9,5

86,6

30

14,4

36,2

30

19,3

23,3

53

24,2

48,0

01

29,2

10,1

71

34,2

09,8

65

39,2

47,0

83

44,3

21,8

24

49,4

34,0

89

54,5

83,8

77

59,7

71,1

88

64,9

96,0

23

70,2

58,3

82

75,5

58,2

64

Pre

FIR

R15.

41%

-63,9

00,0

00

11,1

44,4

37

11,1

44,4

37

11,1

44,4

37

11,1

44,4

37

11,1

44,4

37

11,1

44,4

37

11,1

44,4

37

11,1

44,4

37

11,1

44,4

37

11,1

44,4

37

11,1

44,4

37

11,1

44,4

37

11,1

44,4

37

11,1

44,4

37

11,1

44,4

37

DSC

Rm

ore t

han 1

.1-

2.5

62.5

92.6

22.6

62.6

92.7

32.7

62.8

02.8

42.8

82.9

22.9

63.0

03.0

53.0

9

Aft

er

FIR

R11.

33%

-63,9

00,0

00

9,1

28,6

28

9,1

12,5

47

9,0

96,4

65

9,0

80,3

84

9,0

64,3

02

9,0

48,2

21

9,0

32,1

39

9,0

16,0

58

8,9

99,9

76

8,9

83,8

95

8,9

67,8

13

8,9

51,7

32

8,9

35,6

50

8,9

19,5

69

8,9

03,4

87

DSC

Rm

ore t

han 1

.1-

2.1

02.1

22.1

42.1

72.1

92.2

12.2

42.2

72.2

92.3

22.3

52.3

82.4

12.4

42.4

7

Ap

pen

dix

-1

Pre

lim

inar

y F

easi

bil

ity S

tud

y o

n t

he

Pro

du

ctio

n

of

Bio

-Co

kes

an

d P

rogra

mm

atic

CD

M P

roje

ct

in t

he

Ph

ilip

pin

es, M

arch

20

10

, E

CFA

A1

-7

Cas

e2 G

um

aca

-

A.

CE

R p

rice

: 1

0,0

00JP

Y/k

g -

Fin

anci

al a

nal

ysi

s

Pro

fit

& L

oss

uni

t0

12

34

56

78

910

11

12

13

14

15

Pro

fit

JPY/y

r0

107,2

44,5

48

107,2

44,5

48

107,2

44,5

48

107,2

44,5

48

107,2

44,5

48

107,2

44,5

48

107,2

44,5

48

107,2

44,5

48

107,2

44,5

48

107,2

44,5

48

107,2

44,5

48

107,2

44,5

48

107,2

44,5

48

107,2

44,5

48

107,2

44,5

48

CER

reven

ue

JPY/y

r0

46,3

91,8

12

46,3

91,8

12

46,3

91,8

12

46,3

91,8

12

46,3

91,8

12

46,3

91,8

12

46,3

91,8

12

46,3

91,8

12

46,3

91,8

12

46,3

91,8

12

46,3

91,8

12

46,3

91,8

12

46,3

91,8

12

46,3

91,8

12

46,3

91,8

12

unit p

rice

JPY/t

-CO

210,0

00

10,0

00

10,0

00

10,0

00

10,0

00

10,0

00

10,0

00

10,0

00

10,0

00

10,0

00

10,0

00

10,0

00

10,0

00

10,0

00

10,0

00

10,0

00

GH

G r

educ

tion

t-C

O2/

yr

04,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

Husk-

cok

es

sellin

gJPY/y

r0

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

unit p

rice

JPY/k

g38.0

38.0

38.0

38.0

38.0

38.0

38.0

38.0

38.0

38.0

38.0

38.0

38.0

38.0

38.0

38.0

husk-

cok

es

produ

ction

t/yr

01,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

Ker

osene

savin

g

0.0

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

unit p

rice

JPY/k

L80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

Kero

sene

savin

g a

mou

nt

kL/ye

ar

0.0

72.4

72.4

72.4

72.4

72.4

72.4

72.4

72.4

72.4

72.4

72.4

72.4

72.4

72.4

72.4

Los

sJPY/y

r0

95,8

86,0

05

95,8

32,4

00

95,7

78,7

95

95,7

25,1

90

95,6

71,5

85

95,6

17,9

80

95,5

64,3

75

95,5

10,7

70

95,4

57,1

65

95,4

03,5

60

95,3

49,9

55

95,2

96,3

50

95,2

42,7

45

95,1

89,1

40

95,1

35,5

35

Depre

ciation

JPY/y

r3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

Constr

uction

cost

JPY

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

Subs

idy r

ate

%15

Life

tim

eyr

15

15

15

15

15

15

15

15

15

15

15

15

15

15

15

rem

ain

ing b

ook v

alu

e a

t be

gin

nin

gJPY

60,3

50,0

00

56,7

29,0

00

53,1

08,0

00

49,4

87,0

00

45,8

66,0

00

42,2

45,0

00

38,6

24,0

00

35,0

03,0

00

31,3

82,0

00

27,7

61,0

00

24,1

40,0

00

20,5

19,0

00

16,8

98,0

00

13,2

77,0

00

13,2

77,0

00

rem

ain

ing b

ook v

alu

e a

t en

dJPY

60,3

50,0

00

56,7

29,0

00

53,1

08,0

00

49,4

87,0

00

45,8

66,0

00

42,2

45,0

00

38,6

24,0

00

35,0

03,0

00

31,3

82,0

00

27,7

61,0

00

24,1

40,0

00

20,5

19,0

00

16,8

98,0

00

13,2

77,0

00

9,6

56,0

00

9,6

56,0

00

O&M

cost

JPY/y

r4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

Husk

purc

hase

JPY/y

r33,1

20,0

00

33,1

20,0

00

33,1

20,0

00

33,1

20,0

00

33,1

20,0

00

33,1

20,0

00

33,1

20,0

00

33,1

20,0

00

33,1

20,0

00

33,1

20,0

00

33,1

20,0

00

33,1

20,0

00

33,1

20,0

00

33,1

20,0

00

33,1

20,0

00

Ele

ctr

icty

JPY/y

r3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

Tra

nspor

tation

JPY/y

r39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

C/M

manag

em

ent

cost

JPY/y

r1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

CPA

manag

em

ent

cost

JPY/y

r1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

Verification

JPY/y

r1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

Exp

ens

es

cost

JPY/y

r8,3

14,6

30

8,3

14,6

30

8,3

14,6

30

8,3

14,6

30

8,3

14,6

30

8,3

14,6

30

8,3

14,6

30

8,3

14,6

30

8,3

14,6

30

8,3

14,6

30

8,3

14,6

30

8,3

14,6

30

8,3

14,6

30

8,3

14,6

30

8,3

14,6

30

OD

A loan

repay

ment

inte

rest

JPY/y

r0

804,0

75

750,4

70

696,8

65

643,2

60

589,6

55

536,0

50

482,4

45

428,8

40

375,2

35

321,6

30

268,0

25

214,4

20

160,8

15

107,2

10

53,6

05

rate

%1.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

1

repa

ym

ent

period

year

15

15

15

15

15

15

15

15

15

15

15

15

15

15

15

bala

nce

beg

innin

gJPY/y

r53,2

50,0

00

49,7

00,0

00

46,1

50,0

00

42,6

00,0

00

39,0

50,0

00

35,5

00,0

00

31,9

50,0

00

28,4

00,0

00

24,8

50,0

00

21,3

00,0

00

17,7

50,0

00

14,2

00,0

00

10,6

50,0

00

7,1

00,0

00

3,5

50,0

00

closi

ng b

alance

JPY/y

r53,2

50,0

00

49,7

00,0

00

46,1

50,0

00

42,6

00,0

00

39,0

50,0

00

35,5

00,0

00

31,9

50,0

00

28,4

00,0

00

24,8

50,0

00

21,3

00,0

00

17,7

50,0

00

14,2

00,0

00

10,6

50,0

00

7,1

00,0

00

3,5

50,0

00

0

Net

inco

me

befo

re t

ax

JPY/y

r10,6

50,0

00

11,3

58,5

43

11,4

12,1

48

11,4

65,7

53

11,5

19,3

58

11,5

72,9

63

11,6

26,5

68

11,6

80,1

73

11,7

33,7

78

11,7

87,3

83

11,8

40,9

88

11,8

94,5

93

11,9

48,1

98

12,0

01,8

03

12,0

55,4

08

12,1

09,0

13

Tax

rate

%0.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

Net

inco

me

afte

r ta

xJPY/y

r10,6

50,0

00

7,9

50,9

80

7,9

88,5

03

8,0

26,0

27

8,0

63,5

50

8,1

01,0

74

8,1

38,5

97

8,1

76,1

21

8,2

13,6

44

8,2

51,1

68

8,2

88,6

91

8,3

26,2

15

8,3

63,7

38

8,4

01,2

62

8,4

38,7

85

8,4

76,3

09

Cas

h f

low

unit

01

23

45

67

89

10

11

12

13

14

15

Cas

h in

JPY/y

r71,0

00,0

00

11,5

71,9

80

11,6

09,5

03

11,6

47,0

27

11,6

84,5

50

11,7

22,0

74

11,7

59,5

97

11,7

97,1

21

11,8

34,6

44

11,8

72,1

68

11,9

09,6

91

11,9

47,2

15

11,9

84,7

38

12,0

22,2

62

12,0

59,7

85

12,0

97,3

09

Equ

ity

JPY/y

r7,1

00,0

00

Loan

JPY/y

r53,2

50,0

00

Net

incom

e a

fter

tax

JPY/y

r10,6

50,0

00

7,9

50,9

80

7,9

88,5

03

8,0

26,0

27

8,0

63,5

50

8,1

01,0

74

8,1

38,5

97

8,1

76,1

21

8,2

13,6

44

8,2

51,1

68

8,2

88,6

91

8,3

26,2

15

8,3

63,7

38

8,4

01,2

62

8,4

38,7

85

8,4

76,3

09

Depre

ciation

JPY/y

r0

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

Cas

h o

ut

JPY/y

r71,0

00,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

Asset

s un

der

cin

stru

ction

JPY/y

r71,0

00,0

00

Repay

ment

JPY/y

r3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

3,5

50,0

00

tota

lJPY/y

r0

8,0

21,9

80

8,0

59,5

03

8,0

97,0

27

8,1

34,5

50

8,1

72,0

74

8,2

09,5

97

8,2

47,1

21

8,2

84,6

44

8,3

22,1

68

8,3

59,6

91

8,3

97,2

15

8,4

34,7

38

8,4

72,2

62

8,5

09,7

85

8,5

47,3

09

Gra

nd

tota

lJPY/y

r0

8,0

21,9

80

16,0

81,4

83

24,1

78,5

10

32,3

13,0

61

40,4

85,1

35

48,6

94,7

32

56,9

41,8

53

65,2

26,4

98

73,5

48,6

66

81,9

08,3

57

90,3

05,5

72

98,7

40,3

10

107,2

12,5

72

115,7

22,3

58

124,2

69,6

67

Pre

FIR

R23.6

8%

-63,9

00,0

00

15,7

83,6

18

15,7

83,6

18

15,7

83,6

18

15,7

83,6

18

15,7

83,6

18

15,7

83,6

18

15,7

83,6

18

15,7

83,6

18

15,7

83,6

18

15,7

83,6

18

15,7

83,6

18

15,7

83,6

18

15,7

83,6

18

15,7

83,6

18

15,7

83,6

18

DSC

Rm

ore

tha

n 1

.1-

3.6

33.6

73.7

23.7

63.8

13.8

63.9

13.9

74.0

24.0

84.1

34.1

94.2

54.3

24.3

8

Aft

er F

IRR

17.5

6%

-63,9

00,0

00

12,3

76,0

55

12,3

59,9

73

12,3

43,8

92

12,3

27,8

10

12,3

11,7

29

12,2

95,6

47

12,2

79,5

66

12,2

63,4

84

12,2

47,4

03

12,2

31,3

21

12,2

15,2

40

12,1

99,1

58

12,1

83,0

77

12,1

66,9

95

12,1

50,9

14

DSC

Rm

ore

tha

n 1

.1-

2.8

42.8

72.9

12.9

42.9

73.0

13.0

53.0

83.1

23.1

63.2

03.2

43.2

83.3

33.3

7

Ap

pen

dix

-1

Pre

lim

inar

y F

easi

bil

ity S

tud

y o

n t

he

Pro

du

ctio

n

of

Bio

-Co

kes

an

d P

rogra

mm

atic

CD

M P

roje

ct

in t

he

Ph

ilip

pin

es, M

arch

20

10

, E

CFA

A1

-8

Cas

e2 G

um

aca

-

B.

hu

sk p

urc

has

e pri

ce :

5P

P/k

g -

Fin

anci

al a

nal

ysi

s

Pro

fit

& L

oss

uni

t0

12

34

56

78

910

11

12

13

14

15

Pro

fit

JPY/y

r0

157,2

54,9

21

157,2

54,9

21

157,2

54,9

21

157,2

54,9

21

157,2

54,9

21

157,2

54,9

21

157,2

54,9

21

157,2

54,9

21

157,2

54,9

21

157,2

54,9

21

157,2

54,9

21

157,2

54,9

21

157,2

54,9

21

157,2

54,9

21

157,2

54,9

21

CER

reven

ueJPY/y

r0

96,4

02,1

86

96,4

02,1

86

96,4

02,1

86

96,4

02,1

86

96,4

02,1

86

96,4

02,1

86

96,4

02,1

86

96,4

02,1

86

96,4

02,1

86

96,4

02,1

86

96,4

02,1

86

96,4

02,1

86

96,4

02,1

86

96,4

02,1

86

96,4

02,1

86

unit p

rice

JPY/t

-CO

220,7

80

20,7

80

20,7

80

20,7

80

20,7

80

20,7

80

20,7

80

20,7

80

20,7

80

20,7

80

20,7

80

20,7

80

20,7

80

20,7

80

20,7

80

20,7

80

GH

G r

educt

ion

t-C

O2/

yr0

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

4,6

39

Hus

k-cok

es s

elli

ng

JPY/y

r0

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

55,0

62,0

00

unit p

rice

JPY/k

g38.0

38.0

38.0

38.0

38.0

38.0

38.0

38.0

38.0

38.0

38.0

38.0

38.0

38.0

38.0

38.0

husk

-co

kes p

rodu

ctio

nt/

yr

01,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

1,4

49

Kero

sene

savi

ng

JPY/y

r0.0

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

5,7

90,7

36

unit p

rice

JPY/k

L80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

80.0

Ker

osene

sav

ing a

mount

kL/

yea

r0.0

72.4

72.4

72.4

72.4

72.4

72.4

72.4

72.4

72.4

72.4

72.4

72.4

72.4

72.4

72.4

Loss

JPY/y

r0

150,5

34,0

05

150,4

80,4

00

150,4

26,7

95

150,3

73,1

90

150,3

19,5

85

150,2

65,9

80

150,2

12,3

75

150,1

58,7

70

150,1

05,1

65

150,0

51,5

60

149,9

97,9

55

149,9

44,3

50

149,8

90,7

45

149,8

37,1

40

149,7

83,5

35

Dep

reci

ation

JPY/y

r3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

3,6

21,0

00

Const

ruct

ion c

ost

JPY

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

71,0

00,0

00

Sub

sid

y r

ate

%15

Life

tim

eyr

15

15

15

15

15

15

15

15

15

15

15

15

15

15

15

rem

ain

ing b

ook

val

ue

at b

egin

nin

gJPY

60,3

50,0

00

56,7

29,0

00

53,1

08,0

00

49,4

87,0

00

45,8

66,0

00

42,2

45,0

00

38,6

24,0

00

35,0

03,0

00

31,3

82,0

00

27,7

61,0

00

24,1

40,0

00

20,5

19,0

00

16,8

98,0

00

13,2

77,0

00

13,2

77,0

00

rem

ain

ing b

ook

val

ue

at e

ndJPY

60,3

50,0

00

56,7

29,0

00

53,1

08,0

00

49,4

87,0

00

45,8

66,0

00

42,2

45,0

00

38,6

24,0

00

35,0

03,0

00

31,3

82,0

00

27,7

61,0

00

24,1

40,0

00

20,5

19,0

00

16,8

98,0

00

13,2

77,0

00

9,6

56,0

00

9,6

56,0

00

O&M

cost

JPY/y

r4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

4,1

40,0

00

Hus

k pu

rchas

eJPY/y

r82,8

00,0

00

82,8

00,0

00

82,8

00,0

00

82,8

00,0

00

82,8

00,0

00

82,8

00,0

00

82,8

00,0

00

82,8

00,0

00

82,8

00,0

00

82,8

00,0

00

82,8

00,0

00

82,8

00,0

00

82,8

00,0

00

82,8

00,0

00

82,8

00,0

00

Ele

ctr

icty

JPY/y

r3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

3,3

12,0

00

Tra

nsp

orta

tion

JPY/y

r39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

39,5

34,3

00

C/M

manag

emen

t co

st

JPY/y

r1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

1,0

40,0

00

CPA

manag

emen

t co

st

JPY/y

r1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

Ver

ific

ation

JPY/y

r1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

1,0

00,0

00

Expe

nses

cost

JPY/y

r13,2

82,6

30

13,2

82,6

30

13,2

82,6

30

13,2

82,6

30

13,2

82,6

30

13,2

82,6

30

13,2

82,6

30

13,2

82,6

30

13,2

82,6

30

13,2

82,6

30

13,2

82,6

30

13,2

82,6

30

13,2

82,6

30

13,2

82,6

30

13,2

82,6

30

OD

A loan

repa

ymen

t in

tere

st

JPY/y

r0

804,0

75

750,4

70

696,8

65

643,2

60

589,6

55

536,0

50

482,4

45

428,8

40

375,2

35

321,6

30

268,0

25

214,4

20

160,8

15

107,2

10

53,6

05

rate

%1.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

11.5

1

repa

ymen

t pe

riod

yea

r15

15

15

15

15

15

15

15

15

15

15

15

15

15

15

bala

nce

begi

nni

ng

JPY/y

r53,2

50,0

00

49,7

00,0

00

46,1

50,0

00

42,6

00,0

00

39,0

50,0

00

35,5

00,0

00

31,9

50,0

00

28,4

00,0

00

24,8

50,0

00

21,3

00,0

00

17,7

50,0

00

14,2

00,0

00

10,6

50,0

00

7,1

00,0

00

3,5

50,0

00

closi

ng

bala

nce

JPY/y

r53,2

50,0

00

49,7

00,0

00

46,1

50,0

00

42,6

00,0

00

39,0

50,0

00

35,5

00,0

00

31,9

50,0

00

28,4

00,0

00

24,8

50,0

00

21,3

00,0

00

17,7

50,0

00

14,2

00,0

00

10,6

50,0

00

7,1

00,0

00

3,5

50,0

00

0

Net

inc

om

e b

efor

e ta

xJPY/y

r10,6

50,0

00

6,7

20,9

16

6,7

74,5

21

6,8

28,1

26

6,8

81,7

31

6,9

35,3

36

6,9

88,9

41

7,0

42,5

46

7,0

96,1

51

7,1

49,7

56

7,2

03,3

61

7,2

56,9

66

7,3

10,5

71

7,3

64,1

76

7,4

17,7

81

7,4

71,3

86

Tax

rate

%0.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

Net

inc

om

e a

fter

tax

JPY/y

r10,6

50,0

00

4,7

04,6

41

4,7

42,1

65

4,7

79,6

88

4,8

17,2

12

4,8

54,7

35

4,8

92,2

59

4,9

29,7

82

4,9

67,3

06

5,0

04,8

29

5,0

42,3

53

5,0

79,8

76

5,1

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Appendix-2



APPENDIX 2

Appendix-2



A2-1

Appendix 2 : T.O.R

Terms of Reference for Preliminary Feasibility Study on The Production of Bio-Cokes

and Programmatic CDM Project in the Philippines

1. Project Digest

(1) Project Title:

Preliminary Feasibility Study on The Production of Bio-Cokes and Programmatic

CDM Project in the Philippines

(2) Location:

- Calabarzon

- Northern Mindanao

(3) Implementing Agency:

The Philippine Coconut Authority (PCA) is the implementing agency of the Philippine

Government during the r the whole course of the Study period. All coordination and

cooperation with other Government Agencies concerned will made through PCA. For

purposes of implementing the Project, a Steering Committee will be established as follows:.

Chairman:

- The Administrator, PCA

Members:

- National Economic Development Authority (NEDA)

- Department of Agriculture (DA)

- Department of Finance (DOF)

- Department of Energy (DoE)

- National Electricity Company (PT. PLN)

- Agencies for the assessment and application of technology (BPPT)

- Ministry of Agriculture (MOA)

Appendix-2



A2-2

- Ministry of Industry (MOI)-

- Department of Environment Natural Resources ( DERN)

(4) Rationale of the Project

(a) Production of Bio-cokes

The electric furnace which uses abundant fossil coke is the mode of steel making in the

Philippines. Fossil coke is imported and the cost is relatively erratic and expensive.

Bio-cokes to be produced from coconut husk waste which are abundant in the Philippines

could be used in lieu of fossil cokes to meet the huge demand of the steel industry. The

experimental research conducted solely for the purpose of the Pre-feasibility Study shows

successful result for producing bio-cokes at reasonable cost. Compared with fossil coke,

emission of bio-cokes is non polluting and compliant with the Kyoto Protocol on Clean

Environment. Production of bio-cokes from coconut husk was found to be economically and

financially viable.

(b) Objective of the Project

The primary objective of the Project is the mass production of bio-cokes from trash coconut

husk for use in the process of steel making to reduce the importation of expensive fossil

cokes. Experimental research and test show successful results of producing bio-cokes from

coconut husk at reasonable cost. The project is economically and financially viable. The sale

of husk to processing plants would be an added income to sustenance farmers and the

establishment of bio-cokes processing plants will generate employment opportunities in

rural areas. Unlike the fossil cokes, the emission of bio-cokes for manufacture of steel is

non-polluting and is therefore environmental friendly, and the savings in foreign exchange to

purchase expensive fossil cokes are among the other advantages of the project.

(c) Need for a Study

The Preliminary Feasibility Study was conducted by the Engineering and Consulting Firms

Association (ECFA) of Japan and completed in March 2010. The Study has determined that

bio-cokes from coconut husk could be massed produce at reasonable cost with appropriate

techniques to meet the huge demand of the steel industry.

While the production of bio-cokes was found to be financially viable, there is still a need to

scout other areas as potential production areas for the manufacture of bio-cokes. This would

entail site trips to other places in Mindanao particularly for Davao and Sarangani Regions in

Mindanao to gather more information of huge coconut plantations and economic conditions

Appendix-2



A2-3

in the areas.

2. Terms of Reference for the Project Preparation Study

(1) Objectives of the Study

The main objective of the Project Preparation Study is to confirm the outputs of the

Preliminary Feasibility Study. This will entail a detailed study of the proposed bio-cokes

processing plants, sources of husk materials, means and mode of gathering the materials,

cooperation/coordination with oil plants, steel industry and the implementing agency to

ensure successful execution of the Project.

(2) Scope of the Study

1) Overview of the coconut industry, oil processing plants and steel industry

a) Gathering and Analysis of Data/Information

- Economic profile

- Condition of the oil and steel making plants including demand and supply.

- Policy of the Government towards the coconut industry.

b) Confirmation of Environmental Policy

- Review and confirmation of environmental policy

- Human resource development

- Establishment of coordination mechanism between the central and local

organizations

(3) Verification of the Preliminary Feasibility Study conducted earlier

a. Justification of the Technology adopted for the Project

b. Development of Preliminary Design and Cost Estimate

c. Confirmation of Economic and Financial Viabilities

d. Confirmation of Implementation Agency and other Stakeholders together with the

proposed Implementing and Monitoring Structures

Appendix-2



A2-4

(4) Assistance in the Environmental Impact Assessment Study done by the recipient

Government

a. Impact of the Project for Operations of the Processing Plants

(Air Quality, Water Quality, Noise and Vibration, Bad Smell, etc )

b. Impact during the Construction Period

(Dust, Exhaust Gases, Noise and Vibration, Water Quality, etc )

c. Impact to the Environment (Protected Districts, Protected Geography and

Hydrology, Protected Animals, Fauna and Flora, etc )

d. Impact to Society, if any (Land Acquisition, Relocation of Habitants, Cultural

Heritages and Landscape, Minority Races etc.

(5) Preparation of Project Design Document (PPD)

a. Identification of candidate sites

b. Site conditions survey

c. Supply area survey (number of consumers, future demand, industrial and economic

conditions, and road condition)

d. Evaluation of development potential (optimal scale of development, estimated

construction cost, economic viability and effects)

e. Facility design (rough equipment specifications for the plants, preparation of basic

drawings and cost estimates)

f. Funding scheme (construction and operation fund procurement method)

g. Operation and maintenance (civil engineering structures, electrical installations and

transmission/distribution facilities)

h. Plant management (financial management and profit management)

k. Selection of methodologies ,project boundary ,baseline scenario, calculation of

GHG reduction, additionality ,project period and monitoring method etc

l. Prelimininary plant design and preparation of cost estimates

m. Stakeholders’ meeting

Appendix-2



A2-5

(6) Study Period

The study period is estimated at 6 months as shown in Table A-1.

3. Staffing Schedule

Staffing to conduct the preparation study will comprise of the following members:

Expatriate Staff

Team Leader

1-Plant Engineer

1-Civil Engineer

1-Economist

1-CDM Specialist

Local Staff

Architect

Civil Engineer

Structural Engineer

Economist

Environmental Specialist

Supporting Staffs

CAD Operator

Typist/Secretary

The study room including tables and chairs will be provided by the Implementing Agency.

Counterpart Personnel

Appropriate number of counterpart staff will be provided by the Implementing Agency.

(2) Reporting and Printing

The following Reports will be prepared in English and Japanese.

Appendix-2



A2-6

a. Inception Report 10 copies

b. Interim Report 10 copies

c. Draft Final Report 20 copies

The Philippine Government will provide the Study Team with comments on the Draft

Final Report within one month after the receipt of the Report.

d. Final Report and Summary 20 copies

Ap

pen

dix

-2

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preliminary feasibility study on the production of bio-cokes and

Documents