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Integrated Waste Management Solutions and Alternative Energy Production Proposal for

Caribbean States

with a focus on

Biogas Production,

Solar Cooling,

Small Scale Hydro Power,

Advanced Tire and Synthetic Material Recycling

in partnership with the

Organisation of Eastern Caribbean States (OECS)

and

UNDP Barbados and the OECS

March 2012

ENPROCON - Environmental Projects Ltd. o ENPROCON Environmental Project Consulting GmbH○ E-Mail office@enprocon.eu ○ www.enprocon.eu ○

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Table of Contents:

A.) Acknowledgements

B.) Executive Summary

C.) Introduction

C.1.) Brief overview of the current status of feed-in permissions and regulations forrenewable energy in national gridsC.2.) General ConclusionsC.3.) Recommendations

D.) Biogas ProductionD.1.) Multi Stage Biogas Production for mixed inlay materials:D.2.) BarbadosD.3.) AntiguaD.4.) St. LuciaD.5.) St. Vincent

E.) Solar Cooling

F.) Small Scale Hydro Power

G.) Collection and Recycling of Old Tires and different Synthetic Materials

Annexes:

Biogas Projects:A1.)Biogas Production Barbados Cost Calculation and Performance Proposal

A2.)Biogas Production Antigua Cost Calculation and Performance Proposal

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A. Acknowledgements:The ENPROCON team would like to express gratitude to the following institutions and individualsthat made this project possible and have assisted greatly in its implementation. Without theirdedication and input the project would never have been realised within such a short timeframe..UNDP Barbados and the OECS: Ms. Michelle Gyles-McDonnough, UN Resident Coordinator andUNDP Resident Representative,; Mr. Stein Hansen, UN Deputy Resident Representative; Dr.Reynold Murray, Program Manager Energy and Environment; Dr. Archalus TcheknavorianAsenbauer, Senior Advisor on Energy Policies, Loss and Damage, Ms. Claire Medina, ProgramManagerOrganisation of Eastern Caribbean States (OECS): Dr. Len Ishmael, Director General of the OECS;Ms. Beverly Best, Head of Finance and Administration, Mr. Keith Nichols, Head Of Unit-Environment and Sustainable Development UnitAssociation of Small Island States (AOSIS): Dr. Albert Binger, Senior Scientific Advisor, Energy andEnvironmentOPEC Fund for International Development (OFID): Dr. Faris Hasan, Director of CorporatePlanning and Economic Services UnitCREDP GIZ: Dr. Thomas Scheutzlich, Head of Mission, Mr. Sven Homscheid, Energy ExpertAustrian Ministry for Foreign Affairs, Austrian Development Agency (ADA): Dr. Irene Giner-Reichl, Director General, Department for Development Cooperation; Ms. Christina Todeschini,Caribbean and Central America

ENPROCON Project Team:Werner Wendt, Mag., Project CoordinatorJohann Gruber Schmidt, Dr. Dipl. Ing., Biogas,Christian Marth, Financing, Biogas, RecyclingRobert Rothleitner, Biogas,Walter Muskat, Recycling, Waste to EnergyMario Calabotta, Mag., Biogas, FinancingAlexander Merwald Msc. , Financing, Recycling, BiogasMaikel Oerbekke Msc, Solar CoolingMoti Persaud, Biogas, Solar Cooling

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B. Executive SummaryAlternative energy production represents a promising solution for Barbados and the OECS statesto address the complete dependency on fossil fuels and the economic vulnerability due to oilprice volatility.Energy prices are some of the globally highest within the OECS states and Barbados due to powergeneration depending basically solely from fossil fuels (about 95% overall the OECS, in the case ofAntigua still nearly 100%,) as well as remote and economically challenging production conditionswith high transport and procurement costs.This status impedes economic development, results in growing depth situation of the nationaleconomies and represents a severe hindrance to sustainable development, domestic productionand foreign direct investment within this developing region.At the same time the OECS states and Barbados have initiated national energy policies and aresetting the initial steps to move into alternative and renewable energy sources.UNDP Sub Regional Office for Barbados and the OECS requested ENPROCON GmbH to build onthe available data and projects to provide a series of ready to implement, technically andfinancially feasible solutions, within the different technological fields of: waste to energyapplications, renewable energy production and advanced recycling.The aim of this program is to provide applications, detailed calculations as well as economic andtechnical feasibilities that can be prepared and implemented with limited investmentrequirements, decentralised establishment, design and implementation.The hereby identified applications represent technologies for swift implementation, lowinvestment risk and short returns on investment within the OECS states and Barbados and providefor a replicable approach for other small island states.

Anticipated implementation effects from Renewable Energy Production development withinthis program:

Renewableenergy

Biogas fromdifferent Waste

-Solar cooling

-Small scale hydro

power plant

Reduction of emissions and fossil fuel consumption

Access to cheaper energy for all

Sustainable social and economic development

Replicability of proposed applications

Simple implementation and small scale investment

Reduction of food production costs

Public health support and cost reduction

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The results of these feasibility studies and the established data are designed to lead to swiftproject preparations, immediate investment attraction and direct implementation of selectedlighthouse projects within the next twelve months.Introduction of sustainable alternative energy solutions, waste to energy applications andintegrated recycling represent some of the key elements to:

- Emission reduction through clean technologies- Introduction of renewable energy as cost saving capacity within several aspects of society- Reduction of fossil fuel consumption- Replicability of the applications within similar setups specifically within small island states- Sustainable economic and social development through long lifetime expectancy of the

designed solutions,- Poverty alleviation for the selected small island states because of reduction of

tremendously high energy costs,- Access to cheaper energy for less wealthy population;- Reduction of financial burden to the island states because of expensive loans as a result of

high spending for fossil fuel import for energy production.- Lowering public health issues by cheaper access to basic health capacities.- Lowering production costs of basic food production.- Reduction of public health threats like dengue fever and malaria cases through recycling

of car tires and fermentation of specific plants.

One of the anticipated side effects of the identified projects will also be an increase of energyefficiency within key production industries because of improved production capacities anddirectly related higher investment capacities of these enterprises.

The initial responses from other small island states that have been received so far have indicatedthat the results of this program will be useful for similar developments as part of the Small IslandDeveloping States (hereinafter SIDS) initiative, for members of the Alliance of Small Island States(hereinafter AOSIS) and even for developing countries in Africa and Asia.

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- Multi Stage Biogas Production:

Picture 1: Elephant Grass; Picture 2: Road cutting materials St. Vincent landfill

Biogas projects build on existing sorted biomass waste, agricultural inlay materials and differentgreen matter that can be used for sustainable and renewable energy production. Specifically theOECS states and Barbados can build on a set of inlay materials from different agriculturalproduction and also substantial amounts of plant materials that represent a burden to the societyand landscape development.Multi stage biogas plants for sorted and pre- treated organic municipal waste, agro industry wastesuch as waste from sugar cane and banana production and from rum production and breweries,treated sewerage sludge, sorted biomass from municipal waste streams, grass cutting of elephantgrass, leguminous leaves and leuceana, slaughterhouse waste and fish waste represent effectiveand tailor made energy production solutions for different states in the Barbados and the OECS.The proposed plants are free of greenhouse gas emissions and also produce hardly any odour dueto the use of sulphur and ammoniac binders.The biogas projects that have been selected within this project will be able to provideconsiderably to the necessary capacities of the current energy production of the involved islandstates.The projects will reduce energy costs and assist in the reduction of foreign exchange loanburden for the involved states.These biogas projects represent replicable examples for other small island states to build onavailable biomass waste for efficient and sustainable energy production.

Biogas Project Proposals:

Barbados I Project Setup and Output in cooperation with West Indies Distilleries.Anticipated project framework will be a Private Partnership Solution with the followingoutputs:

Electricity production of 1,8 MW/h ele for 8300 hours per year , Heat production for the distillery process, Refined biogas filled in cooking cylinders for direct household consumption and relief of

energy costs

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High quality fertilizer in liquid form for sugar cane production Investment estimate: 5,6 Mio. USD, anticipated return on investment 3 years on the basis of current electricity consumer

price and related savings from different energy production capacities.

Barbados II Project Setup and Output in cooperation with the Association of Sugar CaneGrowers. Anticipated project framework will be a Private Partnership Solution with thefollowing outputs:

Electricity production of 1,0 MW/h ele for 8300 hours per year , Heat for the molassis production process, Refined biogas filled in cooking cylinders for direct household consumption and relief of

energy costs High quality fertilizer in liquid form for sugar cane production Investment estimate: 5,1 Mio. USD, anticipated return on investment 3,7 years on the basis of current electricity consumer

price and related savings.

Barbados III Project Setup and Output in cooperation with Banks Breweries.Anticipated project framework will be a Private Partnership Solution with the followingoutputs:

Electricity production of 1,2 MW/h ele for 8300 hours per year , Heat for the beer brewery process in the form of steam, Refined biogas filled in cooking cylinders for direct household consumption and relief of

energy costs High quality fertilizer in liquid form for sugar cane production or other agricultural

utilisation. Investment estimate: 5 Mio. USD, anticipated return on investment 3,7 years on the basis of current electricity consumer

price and related savings.

Barbados IV will be a further project development with the remaining biomass and vinasseideally with Barbados Light and Power on a size to be defined by the remaining available inlaymaterials and preparedness of direct investment of domestic and international funds. .Anticipated project framework will be a Private Partnership Solution

Antigua Biogas Project situation:Antigua Project Setup and Output in cooperation with the Government of Antigua and Barbuda,the Antigua Public Utility Authority, the Antigua Distilleries and Antigua Harbour.Anticipated project framework will be designed as a Public Private Partnership

Electricity production of 0,8 MW/h ele for 8300 hours per year , Heat for the distillery process, Refined biogas filled in cooking cylinders for direct household consumption and relief of

energy costs High quality fertilizer in liquid form for sugar cane production Investment estimate: 5 Mio. USD,

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anticipated return on investment 4,2 years on the basis of current electricity consumerprice and related savings.

St. Lucia Project Setup and Output in cooperation with the:Electricity production of 1,0 MW/h ele for 8300 hours per year , heat for the distillery process,refined biogas filled in cooking cylinders for direct household consumption and relief of energycosts, refined biogas in CNG quality for vehicle use

St. Vincent Project Setup and Output:Electricity production of 0,6 MW/h ele for 8300 hours per year , heat for the cardboardproduction process, refined biogas filled in cooking cylinders for direct household consumptionand relief of energy costs

Anticipated overall biogas potential for some OECS islands and Barbados based on datagathered and test fermentation that has been carried out:Barbados: up to 18% of the total electricity consumption.Antigua: up to 10% of the total electricity consumptionSt. Lucia: up to 9% of the total electricity consumption.St. Vincent : up to 8% of the total electricity consumption.

Detailed mass analysis and in depth test fermentation projects will be part of the second stage ofthis program.

These applied biogas technologies carry the potential to provide showcases throughout thedeveloping world and specifically in Caribbean region but also for other Small Island DevelopingStates with similar provisions of agro industry and municipal waste production, members of theAOSIS and developing countries in Africa and Asia for safe and simple technicalimplementation, emission free operation and rapid construction times.

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- Solar Cooling

Picture 3: Solar Cooling UPC Arena; Picture 4: Solar Cooling and Heating apartment complex

Solar cooling is a large scale solar hot water application that heats up process water to a

temperature of 90 degree Celsius in order to operate an absorption chiller that uses this heat

source to create cold water for a central AC system through a heat conversion principle.

As this is otherwise operated by electrical chillers solar cooling effectively minimizes the

electricity consumption for cooling of large scale constructions that represent the largest use of

energy of a central AC system. This technology represents a very effective renewable energy

production technology that specifically focuses on central AC systems that consume in many cases

between 50 to 70% of the overall energy of larger facilities in the Caribbean use as the cooling

load is by far the highest electricity consumers within developing countries.

Specifically for large scale applications as office buildings, airports, hotel complexes,

administrative / governmental complexes, hospitals, new apartment houses, industrial and

commercial constructions and commercial cooling structures the solar cooling technology

provides for the potential reduction of the electrical power requirement to at least 50% of the

normal consumption and even less (up to 80%) in combination with cogeneration with heat

recovery system application without high maintenance costs due to the simplicity of the process.

Each of the solar cooling projects needs to be tailor made in order fit into the architectural

designs and requirements of the structure but generally can be implemented as an add on system

to the existing infrastructure. This specifically creates an opportunity to also introduce energy

saving measures with regards to the overall central air conditioning systems.

Ideally solar cooling should be considered for most major buildings and when already be

considered in the planning stage of a construction it can significantly reduce the investment into

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the overall AC equipment as the main component for the AC structure will be the solar cooling

system.

As an add on system that replaces energy usage solar cooling is in fact an application that could

be considered as a renewable energy efficiency system and does not need special legislation such

as a net metering legislative framework as for photovoltaic solar systems. This makes this

technology specifically useful to demonstrate large scale solar energy applications in countries

that do not have established supportive legislation for renewable power insertion into public grid

into place.

Solar cooling applications are tailor made solutions to address high energy costs for cooling within

medium to large scale constructions. These cooling solutions have to be tailor made and ideally

already become part of the architectural conception as the retro fitting represents the highest

investment sum within the project in some cases. Combined with energy saving measures cooling

costs can be reduced down to 10% of the initial cooling costs.

- Small Scale Hydro Power

Picture 5 and 6: South River St. Vincent

Decentralized small scale hydro power provides for clean and sustainable power generation forremote communities and power provision for small scale grid production with low investmentcosts and long lifetime expectancy of the projects. The operational risk for the proposed hydroprojects in the OECS states that are suitable for small scale hydro installations is of course theunpredictable quantity of annual rainfalls and possible limited rainfall as experienced in St.Vincent in 2010 for instance.This power production is ideally located close to remote consumer areas with the ability torespond to individual demands. Thereby investment into long distance grid connections can besaved and the technical solution can address the specific energy production requirements forsmall communities.

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Efficient and suitable technical setups and turbine structures guarantee cost effective projectimplementation with low maintenance costs and long effective lifespan of the power plant.Beside impact on the environment due to changes in the water system which can be partyalleviated in most of the cases small scale hydro represents one of the most sustainable and costeffective alternative energy production capacities.

The identified small scale hydro projects display the capacities that small scale hydro power cancontribute to energy production through renewable energy sources with limited investmentrequirements, simple operational structures and short return on investment times. It has to benoted that further investment into water storage capacities will increase the sustainability ofthe production as specifically in St. Vincent rainfall capacities have been varying and haveturned out much lower over the last few years leading to a difficult calculation basis.

Hydropower projects of 0,5 up to 10 MW/h can be implemented rapidly with limited effect on theenvironment. Water resource management within the area of implementation represent a keyfocus for small scale hydro power especially with varying rain fall quantities in order for smallscale hydro projects to contribute to sustainable power production..

- Recycling of old tires and advanced recycling of synthetic materials

Picture 7: pathway from granulated tire rubber, Picture 8: old tires at St. Lucia landfill

Old tires and different synthetic materials specifically from packaging and plastic bag userepresent a huge burden to small island states as the amounts coming from these waste streamsare normally too small for an economically viable disposal system while they represent one of thebiggest environmental and public health threats contributing to the spread of serious diseasesand hazards like open fire and .Certified and tested construction materials from 100% recycled synthetics for outdoorapplications as product for generations to come represent a sustainable and economically viablerecycling option for the OEC S states and Barbados when pooled together for a centralisedproduction for economies of scale..

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Advanced recycling of old tires and synthetics will provide a basis for a wide range of newrecycled products from tailor made and sustainable construction materials to improved roadscovers and energy production capacities. The regained materials can be effectively treated orsold. It has to be kept in mind that this project provides a relief to an environmental burden andtherefore will require financial support in order to achieve this goal and to provide short returnon investments in order to attract international investment capacities.

Picture 9: sorted synthetic waste; Picture 10: EU certified construction material from 100% recycling synthetics

The planned recycling products will provide alternatives to construction with wood and concretewith much longer lifetime of the products and represent an urgently needed solution of a pendingenvironmental problem for the OECS states and Barbados that can only be solved regionally dueto the economies in scale for the production capacities. Once the projects are implemented it isanticipated that the program will extend to other island states in the Caribbean as the expansioncan be done with limited cost increase.

- Conclusions and Recommendations:Conclusions:Barbados and the OECS states may potentially replace up to 22% of their current fossil fuel needswith renewable energy production, with only limited investment into decentralized and tailormade small scale projects within a time period of 24 month if the legislative framework is put intoplace and the right intensives are prepared to attract domestic and foreign direct investment .

The selected technologies and prepared projects carry the potential to contribute to the growingenergy demands and at the same time to provide an environmental conservation impact withinlimited timeframe and with considerably .low investment requirements.

Specifically the biogas projects have been designed as examples to be replicated in other smallisland states with the same biomass availabilities. Therefore, these projects can be usefulexamples for small islands states, AOSIS members and states in the developing world, as reducing

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the cost of energy and providing access to renewable and affordable energy will result in moresustainable and faster development.

The know how transfer and local capacity building that is part of the identified solutions ensuresthe integrated establishment of these effective technologies into the very specific set ofrequirements of developing countries and states in transition.

Based on international experience with implementation of renewable energy projects one of themain attractions for direct investment into these projects will be a commercially competitive butsupportive legal and commercial setup for the introduction of renewable energy into electricityand natural gas grid operations in cooperation with the facility carriers.The necessary fee structure needs to take into account that the proposed waste to energyapplications also contribute to solving an immense environmental problem and representeffective solutions to the increasing environmental challenges that integrated waste managementissues now represent in the OECS states and Barbados.Therefore one of the main recommendations of this program is to offer supported feed incompensation for renewable energy input into the electrical grid for the first operational years asthis will be required in order to attract direct investment into the identified projects and futuredevelopment in this area .If no attractive renewable energy feed in regime will be installed, proposed projects will have tofocus on isolated solutions providing energy independence for specific consumers (mainlycommercial and industrial) with the return on investment generated through reduced energycompensation from these private users. This approach will not provide benefit for publicsolutions. Experiences in different developing countries with similar projects have shown thatlimited access to these technologies will hamper benefits of average end consumers torenewable energy production.Experiences in other developing countries have shown that this will hamper the access of theaverage end consumer to renewable energy production.The data collected so far shows that Barbados and the OECS states would need to adapt theexisting legislative framework in line with international standards to facilitate the reduction ofenergy costs, and thereby free up economic resources for the larger development agenda.

Recent statements of government representatives of several Eastern Caribbean states in variedfora indicate that the time for sustainable inclusion of renewable energy production into thenational power generation schemes has now come. This program is prepared to effectivelysupport national efforts with sets of tailor made investment options for timely implementationof the required capacities.

Recommendations:This study has addressed technical aspects and key policy issues at the same time in regard toseveral key aspects that have been identified in the course of preparation. Focus for furtherdevelopment could be put on the following aspects:

- Energy policy development on a national level leading to the necessary frameworks to beput in place to attract international investment

- Energy saving, energy conservation and thereby cost saving policies on a national level

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Some of the production facilities in the OECS and Barbados that have been consulted within thisproject operate on 30% of energy costs of the overall production running costs. Thereby energyrepresents by far the single most expensive component within the operational costing,Thereby energy represents the single main cost saving capacity that will assist these industries tobecome economically viable and sustain competitively within international competition. It isobvious that the identified technologies can become industry saving applications not onlyensuring the current level of employment but leading to higher employment opportunities.

The following topics will need to be addressed by the industry and policy makers within the islandstates:

1. Supporting policies to encourage local communities to engage in energy saving projects2. Technology assessment within key production processes for energy saving potentials.3. Waste separation on a household level as part of a broader education and awareness

program.4. Attraction of investment with suitable investment support programs.5. International market development for small scale industries needs to be supported by the

local government for export and increased income of foreign exchange. Thereby therespective ministries of foreign affairs and representations should play a prominent rolewithin international marketing of domestic production, goods and capacities.

6. Production maintenance concepts as structural improvement will need to be introducedwith the investment into new technical applications. The funds allocation within theprojects will be necessary to keep the relevant structures in place and operational.Thereby 5% total of the overall investment costs should be calculated and reserved formaintenance capacities. Out of the 5% 3% should be earmarked for maintenancecontracts and 2% for unforeseen events.

C. Introduction:

Energy prices are some of the world’s highest within Barbados and the OECS states due to powergeneration dependent on fossil fuels, as well as remote and economically challenging productionconditions which result in very high fossil fuel costs.Fossil fuels currently account for about 92% of fuel use in mobility and power generation withinthe OECS states and Barbados.The increasing dependency on fossil fuels and vulnerability due to oil price volatility, impedeeconomic development and represent a severe hindrance to poverty eradication. Within the OECSisland states and Barbados.Industrial production, particularly agricultural production and related industries, is struggling or,in some cases, at the point of closing due to the unmanageable energy costs.The cessation of beer production in Antigua and the struggling of banana packaging in St. Vincentin the aftermath of the latest hurricane are recent examples, putting increasing constraints on theisland societies and their economic situation.At the same time, tailor made renewable energy production capacities harnessing, for examplelocally abundant sun and water resources, for small island states represent an effective technical

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and economic potential for relief and increased independence from the negative impact ofvolatile fossil fuel prices.As an additional potential for energy production, municipal waste availability in Barbados and theOECS states is extremely high per capita compared to similar developed countries, due to theadditional waste from the tourist industry, and in particular from cruise ships.Still, the critical mass of municipal household and commercial waste production is generally toosmall within the single OECS states for the economies of scale needed for large scale waste toenergy applications such as common reliable and economically effective thermal solutions.Specialised agricultural production within Barbados and the OECS states represents aconsiderable capacity for energy production which could contribute to between 8% and in somecases even 20% of the current energy consumption.Further potential lies in increased agricultural production and the establishment of tailor madeprograms involving elephant, grass, leguminous leaves and leuceana that grow intensively andcurrently rather represent an environmental and developmental problem than a productivecapacity on the islands. Comprehensive related job creation programs can provide incomegeneration possibilities for different society groups and increase the productivity of the plannedrenewable energy and recycling facilities.As a direct response, decentralised small scale applications for renewable energy production,waste to energy application and advanced recycling solutions that are tailor made for specificsmall island requirements have been identified and initially developed within this feasibility stageof the project.Based on a series of consultations with relevant stakeholders in the public and private sector inBarbados and the OECS member states the OECS secretariat and member states a data collectioneffort was carried out for UNIDO Office in Vienna in 2010, a data collection was carried out withthe UNIDO Mission in Vienna. ENPROCON, based on the results of these consultations, hasestablished initial data on the situation of energy demand, municipal waste flows, currenttreatment and recycling capacities, agricultural production and related waste streams, as well ascapacities for renewable energy production in Barbados and the OECS states. Further detailedstudies by other experts have also been carried out for Antigua and Barbuda, Grenada, St. Lucia,St. Vincent and the Grenadines and on a general basis for the OECS states.In addition in September 2010 a delegation of 10 Ministries of Environment of CARICOM andOECS states together with representatives of international organisations visited several plants inAustria and Germany upon invitation of the Renewable Energy and Energy Efficiency Partnership(REEEP) and the Organisation of American States (OAS) in order to reach a greater understandingof the capacities and feasibility of the hereby planned projects.Therefore there has been considerable research and project development carried out within thedifferent OECS states and Barbados which provide the basis of the technical applications asidentified in this program. These research efforts showed the potentials and available capacitieswithin different field s of renewable energy production and advanced recycling.Taking account of this prior work UNDP Office in Barbados requested ENPROCON to build on theavailable data and project development and to provide a series of hands on suggestions, ready toimplement within different technological fields of integrated waste management, waste to energyapplications, advanced recycling and renewable energy production.The aim of the project is to provide applications that can be prepared with limited investment anddecentralised application and represent technologies for swift implementation, low investmentrisk and short returns on investment within Barbados and the OECS states . The data herein

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should lead to investment attraction and direct implementation of selected “lighthouse projects”within the next twelve months.Introduction of sustainable alternative energy solutions, waste to energy applications andintegrated recycling represent key elements to sustainable development and poverty alleviationfor the selected small island states. As such, results of this project may be useful for other SmallIsland Developing States (SIDS), for members of the Alliance of Small Island States (AOSIS) andeven developing countries in Africa and Asia.UNDP Barbados and the involved experts selected the following four groups of technologies forfurther research and project development.

1.) Biogas production from advanced fermentation technologies2.) Solar Cooling3.) Small scale hydro power4.) Tyre recycling and combined collection and recycling of synthetic materials.

From the work carried out so far it became obvious that one of the key elements for productionof renewable energy in Barbados and OECS states will be the introduction and implementation offeed in policies and suitable regulations following international standards thereby providing for aninvestment climate that follows international examples in terms of return on investment andoperational securities.

Based on the project preparations and policy recommendations as put forward in this report theimplementation team and the involved partners are confident to attract the necessary directinvestment into the identified projects to display a seamless implementation and preparation ofthe first renewable energy projects for some of the involved island states.

C. 1.) Brief overview about current status of feed-in permissions andregulations for Renewable energy in national grids(data established by CREDP / GIZ; Status: November 25, 2011)

During recent years, legal framework conditions as well as volunteer policies of the operationalelectric utilities have changed the landscape for small scale renewable electricity generation inthe CARICOM Region.Some countries like St. Vincent and the Grenadines and St. Lucia have had their recently draftedNational Energy Policies approved by their respective Cabinets, but turning these policies intolegislation, rules and regulation is still pending. Other countries like Grenada and Barbados do nothave an approved National Energy Policy but allow generation and feed-in of small scaleRenewable Energy (hereinafter RE) -electricity into their national grid.Due to the developing legal environment and increased demand this area is of high importance. Itcan be expected that the current status in some of the countries will change in the near future.From international experience a solid legal regime will assist in the attraction of direct investmentinto this field and into the OECS region.The following table lists some of the current practices and policies allowing the feed-in of REbased electricity into the national grid.

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Please note that this table is not complete as a survey of current and common feed-in practises inthe CARICOM region is presently under preparation.

Country Electricutility

NEP 1

approvedFeed-inpermission

Feed-in tariff Net-metering

Observations

St. Vincentand theGrenadines

VINLEC Yes,February2009

Yes, voluntarilyby VINLEC

no yes Up to 10 kW forindividuals

St. Lucia LUCELEC Yes, June2010

Yes, voluntarilyby LUCELEC,ceiling: 3 MW

no yes Up to 10 kWp orbased on specialagreement

Grenada GRENLEC no Yes, From 2011:0.45 EC$/kWh

Yes tillmiddle of2011 withceiling of 300kWp

Change ofGRENLECs policy in2011 after arrival of300 kWp-limit

Barbados BL&P no Yes, based on“RE rider” forup to 1.6 MWor 200 systems

1.8 times thefuel surcharge,minimum0.315 Bd$/kWh

“RE-Rider”approved by Fair-Trade Commission

Dominica DOMLEC no Yes, by law PPA to bedefinedindividually

ESA was amendedin 2009,IndependentRegulatoryCommission in place

Source CREDP / GIZ November 2011 National Environment Programme

C.2.) General ConclusionsBased on EU wide experience one of the main attractions for direct investment into the describedcapacities will be a commercially competitive but still supportive legal and commercialenvironment for introduction of renewable energy into the electricity and natural gas grid.This fee structure needs to take into account the fact that specifically the waste to energyapplications also contribute to solving an immense environmental problem and representeffective solutions to the increasing environmental challenges that integrated waste managementissues by now represent in the OECS states and Barbados.Also the possibility to produce and incorporate the produced energy into the public grid networkswithin industrial capacities will be a necessary precondition for the program to be successful.

Therefore one of the main recommendations of this project will be that governments in theregion consider the provision of supported feed in compensation for renewable energy input intothe electricity grid within flexible production capacities in order to attract direct investment intothe identified projects and future developments. This and all other recommendations will bediscussed as we move into the second phase of the project.If no attractive feed in regime for renewable energy production is put in place projects will focuson island solutions providing energy independence for specific target consumers with the returnon investment generated through slightly reduced energy compensation from these private usersand will not provide benefit for Public Private Partnership (hereinafter PPP) solutions. Experience

1 National Environment Program

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in other developing countries however have shown that this will hamper access of average endconsumers to renewable energy production.Hereby the legislative institutions within the OECS states and Barbados are required to takeinitiative for the reduction of energy costs and related developmental support on the islandsfollowing international standards and successful regulatory examples.

C.2.) Recommendations:

This study has addressed technical aspects and key policy issues at the same time in regard toseveral key aspects that have been identified in the course of preparation. Focus for furtherdevelopment could be put on the following aspects:

- Energy policy development on a national level leading to the necessary frameworks to beput in place to attract international investment

- Energy saving, energy conservation and thereby cost saving policies on a national level

Some of the production facilities in the OECS and Barbados that have been consulted within thisproject operate on 30% of energy costs of the overall production running costs. Thereby energyrepresents by far the single most expensive component within the operational costing,Thereby energy represents the single main cost saving capacity that will assist these industries tobecome economically viable and sustain competitively within international competition. It isobvious that the identified technologies can become industry saving applications not onlyensuring the current level of employment but leading to higher employment opportunities.

The following topics will need to be addressed by the industry and policy makers within the islandstates:

7. Supporting policies to encourage local communities to engage in energy saving projects8. Technology assessment within key production processes for energy saving potentials.9. Waste separation on a household level as part of a broader education and awareness

program.10. Attraction of investment with suitable investment support programs.11. International market development for small scale industries needs to be supported by the

local government for export and increased income of foreign exchange. Thereby therespective ministries of foreign affairs and representations should play a prominent rolewithin international marketing of domestic production, goods and capacities.

12. Introduction of maintenance concepts as structural improvement will need to beintroduced with the investment into new technical applications. The funds allocationwithin the projects will be necessary to keep the relevant structures in place andoperational. Thereby 5% total of the overall investment costs should be calculated andreserved for maintenance capacities. From these 5%, 3% of the overall investmentvolume should be earmarked for maintenance contracts and 2% for unforeseen events.

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D.) Biogas Production:

Multi stage biogas plants for sorted and pre- treated organic municipal waste fractions, differentagro industry waste fractions such as waste from sugar cane and banana production, differentwaste materials from rum production and breweries, treated sewerage sludge, grass cutting ofelephant grass, leguminous leaves and leuceana, slaughterhouse waste, fish waste can representeffective and tailor made energy production solutions for different states in the Caribbean.Thereby the projects are building on existing waste inlay materials that can be used forsustainable and renewable energy production.The proposed plants are free of any emissions and thereby almost free of any odour due to theuse of sulphur and ammoniac binders which increases the quality of the biogas and also of theproduced fertilizer. This biogas production creates a closed circle following some of nature’smost simple and effective processes of digestion and methane production.Following worldwide examples (currently more than 500 large scale applications in Austria andGermany alone) multi stage biogas units with shortest possible material through put represent alow investment solution for reliable and simple, decentralised and tailor made energy production.

A specific focus for Barbados and the OECS states has also involved potential biomass flows fromplants such as Leucaena, legumineous leaves, lemon grass and elephant grass that representeither an environmental problem with considerable impact on landscape and agriculture on someof the islands or that can be easily cultivated thereby representing a cheap and simple inlaymaterial source.

The collection and provision of these plants for biogas fermentation could also be embedded intoan income generation project for poor and vulnerable population groups with remuneration innatural gas in standard cylinders for cooking or cash.The collection of elephant grass, leguminous leaves and leuceana can cater for income generationprojects involving low income society members and thereby creating employment opportunities.

Traditional agricultural and related industrial production on the OECS states and Barbadosinvolve:

Banana of different kinds Sugar Cane production with bagasse and molasses Nutmeg and coconut production Rum production with distillery waste (vinasse) Process waste from beer breweries for domestic production Cattle farms Poultry production

Potential industrial partners for the biomass energy production and specifically for theconsumption of the different energy products represent small to medium sized beer breweriesthat are serving local markets and limited export capacities, rum industry with considerableamounts of by products that can be further treated for recuperation of required energy contents,different kind of heat consumers like the paper and card board industry and bottling plants,.

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Integrated multi stage fermentation on a decentralized basis will provide for some of the mosteffective and tailor made energy production capacities for renewable energy production inBarbados and at the same time integrated waste management of difficult materials.Key aspect of the identified projects is the replicability within other small island states as part ofPublic Private Partnership solutions where applicable like the project in Antigua or as PrivatePartnership or Joint Venture solutions like in Barbados.

D.1.) Multi Stage Biogas Production for mixed inlay materials:

Bio Gas:One of the potential raw materials and a very efficient basic input material for the planned bio gasplant is sugar cane or other related plants like sorghum and sweet sorghum.In the case of sugar cane biogas can be produced from the grain, the stem (bagasse) and the juiceof the plant.These three parts of the sugar cane plant enable today the highest possible productivity whichcan be accomplished by converting the raw plant components into biogas.After harvesting sugar cane and cutting of the leaves from the stem the juice is pressed out of thestem.The stem is then called bagasse. The pressed juice represents a high energy containing mixture ofglucose, fructose, proteins and water.For the lignin based membranes of the stem there is currently research ongoing for effectivefermentation to biogas. Fermentation for biogas production after suitable pre- treatment(shredding, biomass extrusion, cell structure fragmentation) already represents a highly effectivetreatment for energy production.Within the proposed biogas plant grain is converted by gluco- amylase enzymes into glucose(sugar).The stem consisting of cellulose can be converted by hydrolyses into xylose and glucose andfurther juice consisting of glucose and fructose, water and proteins.They are collected in the glucoses tanks. Together with the yeast the substrate is pumped into thefermenter, where the transformation of glucoses takes place.

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Graphic 1: Integrated biogas production. Source ENPROCON 2011

At the end of the process, the so called mash, is prepared for the fermentation process.

Graphic 2: Combined Power Generation Biogas (CH4)); Source ENPROCON 2011

The distiller wash is used for the gluco amylase process where grain and glucoses is mixed in asteamer and the remaining part in the biogas plant.

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The biogas produced is stored in tanks for further treatment and power generation.The proposed project setup of tailor made biogas application provides for a closed circle processthereby avoiding some of the structural difficulties that afflicted earlier biogas productionprocesses.

Biogas Production, Brief construction setup:The planned small to medium scale biogas production units will be composed from theconstruction and process elements below. Ideally one production unit will be working on inlaymaterial quantities of 10.000 to about 100.000 tons of mixed inlay material per year.The biogas production elements will include:

Pre -treatment facility with biomass cutting and homogenisation units and a biomassextruder unit

mixing pits heated initial fermenters main lagoon based heated post fermenters integrated gas storage capacities within the post fermenters open final fermentation residue material lagoon Additional Gas storage capacities Combined electricity and heat production co generation unit Gas burning system (fluid heater) incl. boiler, housing etc

It is expected that there will be a considerable cost saving potential within the operationalstructure establishment due to the fact that existing energy production capacities can be adaptedto biogas use.Production and utilization of refined biogas as natural gas replacement will provide for lowinvestment and effective alternative for direct replacement of fossil fuel.The effective fermentation of some of the identified substrates will represent the first industriallyapplied biogas application in the Caribbean, and industrial large scale fermentation of leguminousleaves, elephant grass and leuceania will help address the waste from these plants, which at themoment represents more of a burden than cultivation plants.The proposed plants will also produce considerable amounts of liquid and eventually driedfermentation residue per year which is representing a highly effective fertilizer for agriculturallyused soil. A distribution mechanism will need to be introduced for the effective provision of thefertilizer materials to regional agricultural production units.Experience has shown that an exchange trade mechanism with local farmers is highly effective toobtain inlay materials economically.Harvested leguminous leaves, elephant grass and leuceania as well as banana production wasteand sugar cane leaves can be traded against fertilizer from fermentation residue collection andrefined biogas for cooking as natural gas replacement.

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Picture 11 and 12: leguminous leaves, elephant grass and leuceania in St. Vincent

The produced fertilizer has the following composition:

Source: ENPROCON, inlay material typically corn harvest waste, corn silage.

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Revenue increase from utilisation of fermentation residue as fertilizer within agricultural

production compared to cow manure and mineral fertilizer (kg N/ha):

Source: University of agricultural industry and soil development Vienna

Mineraldüngung= mineral fertilizer

Biogasgärrest= biogas fermentation residue

Rindergülle= Cow Manure

Ertrag= Revenue

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Biogas CompositionThe produced biogas will contain the following components:Parameters value

Methane – CH4 ca. 50 – 65 Vol-%

Carbondioxide – CO2 ca. 30 – 45 Vol-%

Water – H2O ca. 0 – 5 Vol-%

Nitrogen – N2 ca. 0 – 3 Vol-%

Oxygen – O2 ca. 0 – 1 Vol-%

Hydrogen Sulfide < 1 Vol-% (100-150 ppm)

Temperature 30°C

Pressure 1013,25 mbar

density ca. 1,25 kg/m³ at 55 Vol.% Methane

Calorific value ca. 5,5 kWh/m³

Picture 13 and 14 : Biogas fueled retro fitted Diesel engine, Biogas fuel stationPicture 15 and 16 : Biogas fermentation unit and biogas refinary

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Biogas Material Reception, Storage and PreparationThe received biomass will need be treated with shredding and biomass extrusion capacities inorder to increase efficiency of the substrate by an advanced material breaking process. Onlythrough these inlay material preparation processes will the different inlay materials - as calculatedfor these projects - be able to be fermented.

.

Picture 17 to 20 Pre-treatment devices; Biomass Extruder, Mixing Pump and Shredder

After primary treatment such as waste material screening and removal of metals, glass, cardboardand paper by hand the inlay materials will be treated by two cutting and homogenisation plants a.

These inlay materials will be stored within the buffer with maximum three month storage capacityof inlay materials. The production unit can be operated with dry and wet substrate composition.

Dry substrates will be processed in the structure with a material buffer of about 3 month ofsubstrate storage. Dry substrates will be fed into the initial fermentation stage on a daily basis bycaterpillar feeding into the biomass extruders. In case of delivery of bigger volumes thesefractions will be stored within the buffer capacities.

The buffer materials will be ensiled and stored in the buffer silo. Upon requirement thesesubstrate materials will be fed into one of the mixing pits, mixed and pumped into the fermenterdirectly or through a biomass extruder between 24 and 48 hours.

FermentationThe fermentation takes place in parallel and separated systems:

Concrete fermenters as initial fermenters Gastight lagoons as post fermenters

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Concrete fermenters are used to treat all inhomogeneous substrates like cow dung, while thelagoons are used to treat substrate with small particle size and minimum structure.Within the heated lagoon fermenting units the substrates are processed within air concealedanaerobic conditions at a temperature level between 38°C – 50°C. In this way the carbohydrates,fat and proteins are processed by methane creating bacteria into methane (CH4) and carbondioxide (CO2).

Graphic 1: fermentation lagoon

The process heat will be maintained at 38 °C – 50 °C (ideally 45 °C) and this temperature will bemaintained by process heat from the cogeneration energy production unit.

HeatingIn order to achieve the process heat of 35°C – 45°C heating pipes made of stainless steel areapplied to the side walls in three loops. The heating pipes in the fermenter parameters are guidedthrough the construction walls on the side of the fermenter. For these pipes guiding inlets areconstructed in the fermenter walls and the distance between the heating pipes is 0,5m. Thelowest heating pipe is established about 1m above bottom level of the fermenter unit. The energysource of the heating structure is the co generated heat from the power generation unit.

Fermentation CapacitiesWith the addition of fresh substrate materials the fermented fractions from the concretefermenters are pumped through the Central Pumping Station (CPS) into the gas sealed finalfermenters.

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The utilization of high moisture substrates is possible due to the direct feeding into one of themixing pits. From these pits the substrate materials will be pumped into the fermenter throughthe biomass extruders similar to the dry matter processing.

Within the final fermentation stage the remaining gas production potential is collected, containedeffectively and collected in the best possible way.

Picture 21, Mixing pump, lagoon based

For the homogenisation of the substrate materials stirring units are used. These units areshredding and stirring the complete mass of the inlay materials to one homogenous mass withminimum of energy required.The biogas produced is collected directly within the two concrete fermenters and the two finalfermenters and is temporarily stored within the double membrane gas storage. These temporarydouble membrane storage capacities consist of two highly resistant and fabric reinforcedmembranes that are completely gas-tight.The biogas contains small quantities of hydrogen sulphide (H2S). The initial gas refining anddesulphurization is carried out through controlled air intrusion into the gas connection piping.Further installations will involve advanced air atmosphere cleaning system and systemperformance improvement involving Deuto Clear Sulfo for the further reduction of hydrogensulphide (H2S) and increase of turbine life expectancy and efficiency.Within the gas storage controlled bacteria are cultivated that reduce the hydrogen sulphide toelemental sulphur that can be taken out with the fermentation residue.Central Pumping Station units are placed between the fermenter units and the mixing pits. Asumping units rotary lobe pumps are used for each line. These pumps carry out the completesludge management. A second pump is providing reserve and security cover in case of failure.Inthis way the fermentation sludge is transported from the mixing pits and from the fermenters tothe central pumping stations respectively can be pumped by the CPS to the final fermenters andto the end storage. The pumps have a performance of 22kW and a process capacity of 110m³/h at4 bar.

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On each of the initial stage fermenters a double hull folly roof with a gas storage capacity will beapplied. On each of the lagoon post fermenters gas storage capacity will be established. On thebasis of this storage capacity the complete production can be stored for 12 hours and can beapplied for utilisation at a later stage.The flexible inner membrane creates the adaptable gas storage capacity and the outsidemembrane provides for the necessary sealing and weather protection. The safety valve ensuresthat the gas storage is experiencing too high pressure rates. In case the gas production is higherthan the gas consumption and vice versa the volume of the gas storage adapts automatically.

Safety fittings Condensate separator between the gas storage and the combined heat and power

co- generation plant:Within the biogas condensed water is produced due to the cooling of the gas in thepiping construction. At the lowest point of the gas piping construction thiscondensed water will be separated through a condense water separator. Within theseparator a vertical pipe will bring the condensed water into a water filled containerand ends below water level. The condensed water will be guided through anotherseparator into the water basin. In case of increase of water level the excess water isrunning through a siphon into a second collection basin where it is then pumped tosurface discharge.The gas piping will be applied underground with minimum 1% descent towards thecondense water separator.The condense water shaft has a maximum depth of 2 meters and cannot be accessedalone and only after previous gas level measurement

High- and Low Pressure safety:In order to ensure the operational pressure of 3-8 mbar within the biogas plant theinstallation of a low and high pressure safety is necessary.In case the operational pressure of the biogas plant is raising higher than the normallevel the biogas is pressed through the safety liquid of the receiver tank. The highpressure is shifting the water volume until the water level is reaching the lower endof the discharge tube and the gas can evaporate through the discharge tube.The actually effective water pressure is the water column pressure from the lowerend of the discharge tube to top level of the overflow pipe and actually measures12cm. At the same time fresh air is sucked through the discharge tube in conditionsof under pressure.The safety liquid itself cannot be pressed out of the receiver tank and ensures gasleaking safety in conditions of normal operational pressure.Main and final fermenters are operating with independent high and low pressuresafeties.The high and low pressure safety devices cannot be blocked from the pipingnetwork by separate blocking installations.

Low pressure sensors: The low pressure sensor is attached to the gas pipe to thecombined power and heat generator. In case a condition of low pressure isgenerated within the gas piping which results in uncontrolled air intake into thesystem the alarm will be switched on and the stirring and the combined power andheat generator will be switched off. The low pressure sensor already reacts on muchless low pressure effect than the low pressure safety as mentioned above already.

High pressure sensor:

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The high pressure sensor is also connected to the gas pipe of the combined powerand heat generator. In case of high pressure of more than 3 mbar the combinedpower and heat generator will be automatically switched off. In case of increase ofpressure of more than 8 mbar an automatic alarm will be initiated. The highpressure sensor releases under conditions of smaller high pressure situations thanthe high pressure safety.

Magnet valve:In the event of fault the magnet valve can automatically stop the gas transport tothe combined power and heat generator. This is normally done just at the entrypoint of the gas pipe into the shelter of the combined power and heat generator.

Flame flashback arrester:In front of every gas burning device (gas turbine and gas burner) a flame flashbackarrester will be installed. It has to be located in way of simple access possibility forcleaning purposes. Flame flashback arrester is in accordance with the Austrianspecific construction and operation legislation (ÖNORM EN 12874).

Fermentation Residue StorageFrom the gas proof final fermenter the fermentation residue is transported by the pumpingstations to the end storage lagoons. This fermentation residue will be stored until collected andbrought back into agricultural use as high quality fertilizer.The complete material flow time is calculated at about 80 days within this production unit.

Pictures 22 and 23: Open residue collection lagoon without emission and odor production

The residue material will be collected directly from the residue lagoon and the residue will beprepared as fertilizer.The final storage lagoons will be stirred by up to 3 fixed stirring devices within the lagoon designjust before the fermentation residue materials are taken out. Furthermore the lagoon can beapproached by truck on one side so that a tractor powered stirring can be applied. Within thelayers of the PE folly for the final storage sensors for leakage will be applied and will maintain acontinuous checking of the gas loss and potential leakage.

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Bio methane: Replacement of Natural Gas

The produced biogas that will not be used for electricity production will be filled instandard natural gas cartridges for cooking. Provision of filled gas bottles can beintroduced in exchange of quantities of selected biomass in the form of fresh leavesand other inlay materials. Thereby the projects will contribute directly to thereduction of energy costs and income generation for poorer social groups anf families.

Bio methane: Fuel of the future

The proposed biogas plants will also be in a position to produce Biofuel from Biogasthrough an advanced biogas membrane cleaning system. Such a system has beenoperating successfully in Austria for 4 years, where Bio methane is used as a fuel forlocal trucks, buses and cars etc. .

These capacities will enable the plant operators to create energy independence fortheir own vehicle fleets and will attract further customers for bio methane vehicle use.

The fuel gas can also be contained and transported to fuel stations and other gascustomers within the islands.

It is proposed that governmental supported retro fitting schemes (import customsexemption, tax exemption) for private vehicles will increase the replacement rates offossil fuels towards biogas driven vehicles.

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D2.) Integrated Biogas Production in Barbados,For Barbados, biogas production from multi stage fermentation and utilization of the biogas forelectric power production is proposed. Excess gas capacities can be used as direct replacement ofnatural gas and as vehicle fuel a with combined generation and utilisation of off heat for furtherapplications like process heat utilization within the rum production and sugar production isproposed.Inlay materials will be process waste from sugar cane production, sugar and rum production isproposed as a pilot project for this small island with a well-developed agricultural industry.This project will be based on extensive experiences with biogas production from sugar cane inBrazil, taking into account improved effective biogas production technologies. This project willprovide for substantial energy production from the agro industry and rum production wastestreams that currently represent a serious waste problem in Barbados.

Current power supply situation in Barbados:The total electricity consumption in Barbados in 2010 was 960,9 GWh produced by Gas, Steamand Diesel turbines with a load factor of 73,5 % with 7% losses.In 2010 316 GWh were consumed by 102,407 domestic clients and 644 GWh were consumed by19,699 commercial clients with a peak demand of 167,5 MW/h.

Electricity productionsource

Steam Gas Diesel Total

Installed Capacity MW/h 40 86 113,1 239,1Generation and SalesGWh/a gross generation

155,3 214,9 708,1 1.078,3

The end consumer price is currently about 0,34 USD per kWh as a flat fee including power andfuel charges and depending on the consumption capacity category which provides for somesavings for higher use domestic, commercial and industrial clients. There is a natural gas grid onsome areas on the island that could be used for feed in of refined biogas directly. The standardnatural gas cylinder for household use is the 25 lb cylinder and the average household in Barbadosconsumes one cylinder every four weeks.

The Barbados Legal Framework:Currently there is no formal legal framework in place in Barbados for renewable energy producersto sell electrical power to the facility operator or to be introduced into the gas grid.The facility operator Barbados Light and Power (BL& P) allows for the introduction of energy intothe grid on the basis of a “Renewable Energy Rider” that provides for a minimum remuneration of1,8 times the fuel surcharge or at least 0,315 BD$ or approximately 0,16 USD per kWh for a feedin of up to 1,8 MW/h el.The gas importing and bottling enterprises expressed initial interest in the project proposals aspart of increased efforts towards independence from fossil fuel and estimated cost savingcapacities.Based on EU wide experience one of the main attractions for direct investment into the describedcapacities will be a commercially competitive but supportive legal and commercial setup for theintroduction of renewable energy into the electricity and natural grid.

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One of the main recommendations of this project for government consideration will be theprovision of supported feed in compensation for renewable energy input into the electricity gridin order to attract direct investment into the identified projects and future developments.If no attractive RE feed in regime is installed projects will focus on island solutions providingenergy independence for specific target consumers and will not provide benefit for PPPs, therebyhampering the access of average end consumers to renewable energy production.To move in this direction, the government of Barbados would adapt the existing policy and legalframework in line with international standards and the successful regulatory examples toencourage the reduction of energy costs, freeing up resources for other nationally importantinvestments.

Barbados end consumer energy costs (status September 2011):

Energy nature unit Price per unit in USDElectricity kWh about 34Natural gas 25 lb cylinder 21Gasoline gallon 7,5

Barbados Biogas:The available agro industry resources and waste from rum and beer production will potentiallyprovide for several decentralised production plants with tailor made outputs and products forspecific energy and by-product clients such as natural gas bottling, electricity production, rumdistilleries and the BANKS brewery.It is currently foreseen that five to ten locations for biogas plants will be established in order tocreate the best possible utilisations for the available inlay materials.The initial plants will be established close to the West Indies Distilleries and the MolassesProduction Plant of the Association of Sugar Cane Growers.

Picture 24 and 25: waste separation plant Barbados, reception and collection of biomass from road cutting and landscaping

The biomass coming from road cutting and landscaping that ends up at the main landfill inBarbados represents an additional inlay material for further biogas production,Detailed quantities and seasonal fluctuations will need to be established within the next stage ofthe project, commencing in January.

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West Indies Distilleries; Rum Production Industry Barbados:The West Indies rum distilleries produce about 15.000.000l alcohol on an annual basis for localconsumption and worldwide export. The products of the West Indies Distilleries The rumproduction provides for one of the biggest income generator of foreign hard currency in Barbadosand thereby represents one of the main production factors and economically important factor onthe island.A minimum of 195 million litres of vinasse - as production waste material - is produced on anannual basis by the Rum producers of Barbados. This vinasse from the rum distilleries isimmediately available for further production to energy as it is currently not used but disposedwithout further treatment. .In combination with waste materials from the sugar cane production and other green materialsthese vinasse volumes represent a valuable process material

Sugar cane production, Association of Barbados Cane Industry Corp.:About 350.000 tons of sugar cane is currently produced per year in Barbados by 60 private and 40governmental producers. These producers are organised within two separate associations withthe Barbados Cane Industry Corp. as the main technology development hub and procurementcoordinator.About 116.000 tons per year (1/3 of the produced cane) of sugar cane leaves are produced as aby-product. These leaves are cut and currently spread on the fields for soil protection and left torot for soil improvement as a natural fertilizer. This process represents the traditional soiltreatment after the annual harvest. Of these 116.000 tons of cane leaves an estimated 50.000tons could be provided for fermentation after pick up and transport to the respectivefermentation plant with the soil still being covered with the remaining cut leaves.The project hereby suggests a change in processing and will introduce the delivery of the highquality fertilizer to the cane fields in the form of liquid spraying This operational result from thesugar production is currently 38.888 tons of first grade extraction sugar that is produced per yearfor local consumption and rum production.Additionally 12.250 tons of molasses per year from the sugar production is obtained at that stagethat is used within the rum industry Currently about 105.000 tons of Bagasse (the remaining partof the sugar cane after extraction of the initial molasses) is produced from the sugar canes withinthe sugar production per year. This bagasse is currently foreseen by the association of sugar canegrowers for incineration and energy production for the rum production which will provide for anestimated 41 GWh/a el yield with an overall investment need of about 80 Mio. USD according toplanning by the sugar cane association.From similar project experience it has to be noted that fermentation could represent a muchmore environmental friendly and risk free process with smaller investment needs due to the lackof the necessary air cleaning structure of the combustion and boiler structure. Overall investmentinto biogas production instead of incineration of the Bagasse is estimated to be much lower.Feedback from the association of sugar cane growers (Barbados Cane Industry Corp.) to furtherdefine a project proposal for investment has been very positive.

BANKS Brewery:BANKS Breweries has just invested into a completely new brewery and bottling plant that willenter into full operation in the beginning of 2012. The materials that can be added into the

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fermentation process from these production capacities are spank grain, barley and yeast. BanksBrewery is seeking alternative energy sources and solutions for production of energy from theirown waste generation. At the time of writing Banks Brewery has just initiated test runs at the newfacility and the available inlay material provisions are still on an estimated basis.The brewery process can be supported with electricity, heat in the form of steam and Co2 of foodquality.

Resulting potential project inlay materials for Barbados are therefore:1. Sugar and rum production waste, bagasse and vinasse of the above listed substantial

amounts2. Excess leaves from sugar cane production that are not required for soil protection,3. Waste collected from Banks Breweries from beer production and bottling operations for

Coca Cola and affiliated branches.4. leguminous leaves and elephant grass as collected and brought to the facility from road

cuttings and through private delivery5. cattle farm waste of limited nature,6. poultry farm waste of limited nature.7. Potential capacities of biomass and considerable green matter from separation of waste

at the landfill nearby Warrens

The initial main process materials are as follows:

Materialnature

Quantities peryear in metrictons

Seasonalfluctuations

Pre- treatment required Anticipated yield

Vinasse fromRum production

min. 195.000 constant Transport Biogas

Sugar CaneLeaves

50.000 constant Transport and shredding Biogas

Bagasse 105.000 constant Transport and crushing /extrusion

Biogas

Spank grain,barley

5.200 constant Transport Biogas

Yeast 370 constant Transport Biogas

Anticipated products are: biogas for electricity production, further refining in order to replace natural gas within gas

cartridges and gas networks electricity and heat from biogas based co- generation biogas for direct replacement of natural gas for electricity production within the existing

generator capacities use of co- generation heat for the beer fermentation process at the new BANKS brewery

and process heat for the rum production high quality fertilizer

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refined biogas for transportation as replacement of CNG or as replacement for natural gasfor cooking within the natural gas grid of Barbados,

Co2 for beverage production. Food production Co2 is currently procured for 0,27 USD perkg by BANKS brewery.

Project power generation overview for Barbados in total as minimum calculation followingcurrent tests and analysis (second phase of the project will determine the detailed yieldcapacities through test fermentation of larger quantities of inlay materials in ENPROCON testfacilities):

Barbados total t/a ( FM) m³ Biogas m³/ch4 Mwhele MW th

Vinasse 19500026763750 14452425

15,0866107 16,16423Sugar Cane Leaves 50000 3251300 1251751 0,69669417 0,746458Bagasse 105000 34020000 12383280 6,89223526 7,384538Spank grain Barley 5200 2703180 983957,7 0,54764714 0,586765Yeast 370 0 0 0 0

23,2231872 24,88199

eta_ele 0,22P_ele 2,737018eta_ele 0,14P_ele 1,741739

Completeelectricproductioncapacitiy P_ele MW 29,36074

Biogas 4 kWh / m³

The proposed processes and available inlay materials have the potential to provide for about 15to 18% of the current electricity consumption of Barbados if the biogas production will also beincorporated into electricity production.Alternative energy products such as refined biogas for direct replacement of natural gas andvehicle fuel (CNG quality) will provide for an increased energy independence of Barbados.

Proposed Barbados Project setup:

Barbados I in cooperation with the West Indies Distilleries

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Barbados I Project Setup and Output in cooperation with West Indies Distilleries.The West Indies rum distillery is in the position to take process heat from the biogas projectthereby creating an additional income factor for the biogas operation and a cost reductioncapacity for the distillery.The current electricity requirement of the distillery is 1,1 MW/h ele and the steam requirementsare 110 degrees Celsius on a low pressure level

The planned biogas capacities will be designed to provide the full electricity requirement of theWest Indies Distillery and provide for excess power import into the Barbados Light and Power gridoperating on the following feedstock:

Inlay Materials to per day to per yearprice per toin €

TS-contentin %

oTS-contentin %

Vinasse 55 20.000 0 25 90Sugar Cane Leaves 26 10.000 1 13 82Leucaena 1 360 0 18 90Lemon grass 0 0 0 18 92Bagasse 26 10.000 1 90 90

Co generation unitFull load hours 8.300Electric efficiency rate 40,0%Thermal efficiency rate 44,0%

Installed Capacity kWel 1.896,4Produced electricity amount kWh 15.740.154Produced heat amount kWh 16.527.162

Barbados I Biogas Project implementation area:

Methangas yield 3.949.315 m³/aCalculatedbiogas yield 2%

Biogas yield 7.448.803 m³/afor cellulosis containing inlay materials on thebasis of acidification and hydrolysis

Electricity 15.797.261 kWh/ahydrolysis for cracking ofcellulosis.

Heat 16.587.124 kWh/a1.998 kWtherm

Fermentation residue liquid 13.929 m³/aFermentation residue dry 16.599 to

This is sufficient for 1.896,4 kWinst.-Co generation unit for 8.200full loadhours.

with an electric efficiency rate of 40,0%(producer guarantee andliability)

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Picture 26: West Indies Distillery north of harbour front of Bridgetown. Green areas can be utilised for biogas production plant.

Anticipated project framework will be a Private Partnership Solution also with the involvementof Barbados Light and Power as grid operator and as part of the existing framework forrenewable energy introduction with the following outputs:

Electricity production of 1,8 MW/h ele for 8300 hours per year as project production andincome generation, 1,0MW/h ele consumption from West Indies Distillery andintroduction of the remaining power into the grid.

Heat for the distillery process, Refined biogas filled in cooking cylinders for direct household consumption and relief of

energy costs High quality fertilizer in liquid form for sugar cane production and other agricultural

industries Investment estimate: 5,3 Mio. USD, turn key application and operational initiation. anticipated return on investment is 3 years on the basis of current electricity consumer

price, electricity revenue according to the Barbados Light and Power Rider for renewableenergy introduction into the grid and investment interest anticipated at 6%.

The detailed initial calculations are listed as Annex I to this report.These calculations will be matter of review and editions as part of phase two of this program tobe presented to the launch of the Energy for All Initiative of UNDP in May 2012 in Barbados andalso at the Rio plus 20 meeting in June 2012 for the identification of structural financingschemes and programs.

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Barbados II Project Setup and Output in cooperation with the Association of Sugar CaneGrowers. Anticipated project framework will be a Private Partnership Solution with thefollowing outputs:

Electricity production of 1,0 MW/h ele for 8300 hours per year , Heat for the Molasses production process, Refined biogas filled in cooking cylinders for direct household consumption and relief of

energy costs High quality fertilizer in liquid form for sugar cane production Investment estimate: 5,1 Mio. USD, anticipated return on investment 3,7 years on the basis of current electricity consumer

price and related savings.Barbados II will be developed further with the involvement of the partners within the next month.

Barbados III Project Setup and Output in cooperation with the Association of Sugar CaneGrowers. Anticipated project framework will be a Private Partnership Solution with thefollowing outputs:

Electricity production of 1,0 MW/h ele for 8300 hours per year , Heat for the beer brewery process in the form of steam, Refined biogas filled in cooking cylinders for direct household consumption and relief of

energy costs High quality fertilizer in liquid form for sugar cane production or other agricultural

utilisation. Investment estimate: 5,1 Mio. USD, anticipated return on investment 3,7 years on the basis of current electricity consumer

price and related savings.

Barbados IV will be a further project development with the remaining biomass and vinasseideally in partnership with Barbados Light and Power on a size to be defined by the remainingavailable inlay materials and preparedness of direct investment of domestic and internationalfunds. .

Conclusions Barbados:The agro industry waste from the sugar cane production, together with the substantive wastefractions from the sugar and rum production and the new BANKS brewery provide for an idealsetup for alternative energy production from existing and available inlay materials for efficient,sustainable and integrated biogas production.The projects can be established as a set of tailor made solutions for the individual energyconsumers for electricity, refined gas, generated off heat in the form of steam for the distillery,molasses and beer production.The project setup will be designed with close logistical links to the different energy clients on adecentralised setup.

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It is currently foreseen that the final setup of biogas plants in Barbados will involve 4 to 10locations with either one or two parallel production lines sharing some of the facilities like inlaymaterial preparation and fermentation residue storage (fertilizer storage).Within this setup most efficient use will be made from the off heat from the electricity productionto be incorporated into the distillery processes, molasses production by the sugar caneassociation and the new banks brewery.Thereby the projects will achieve a maximum efficiency by utilising the different forms of energyproduced by the proposed structures.Furthermore the decentralised nature of the projects will provide for flexibility within thedistribution and processing of the inlay materials. The down side of this layout will of course be anincreased transport of the vinasse, bagasse and sugar cane leaves to the different productionplants that will not be located nearby the different project partners.This increased traffic might be alleviated in terms of costs for transport by using fitted vehicles forrefined biogas use and thereby bringing the transport costs to the bare minimum of vehiclemaintenance and depreciation.

Based on a suitable regulatory framework for the production of alternative energy from thesematerial streams and suitable power purchase scenarios with the grid facility operators, it will bepossible to demonstrate the financial feasibility to domestic and international private andinstitutional investors.In order to spread the risk and to provide institutional ownership, a combination of foreign directinvestment and domestic investment would be proposed.

In this case Joint Ventures, Public Private Partnerships or Private Partnership solutions should beconsidered in cooperation with the Barbados Light and Power (B L&P), the Association of SugarCane Growers as technology facilitators for their members, the associations of private and publicsugar cane growers, the West Indies rum industry in Barbados, and Banks Breweries.

Based on the initial calculations a return on investment should be possible to achieve in less than3,5 to 4 years assuming that an internationally comparable renewable energy fee is provided forintroduction of the produced energy into the grid.

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D.3.) AntiguaConsumer energy prices in Antigua are by far the highest within the OECS states and Barbados.The Antigua Public Utilities Authority is operated by the Ministry of Public Works andCommunications and maintains several generating stations at Cassada Gardens and CrabbesPeninsula. Currently about 13.400 KW/h are consumed in Antigua while the potential full loadcapacity lies at about 50.000 KW/h.End consumer Energy Costs in Antigua are as follows:Energy nature unit Price per unit in USD

Electricity kWh 0,66Natural gas 20lb cylinders 17Natural gas 100lb cylinders 54Gasoline gallone 7,8

These high energy prices have already put a lot of pressure on the local economy and haveresulted in industries closing down such as the local beer brewery.Due to the lack of any large scale agricultural production the proposed biogas productionstructure will be completely different in Antigua from the structures as proposed for Barbados.Still multi stage biogas production would represent a suitable way for sustainable, decentralisedand tailor made energy production also with the capacity to introduce the refined gas into eitherexisting and adapted electricity production capacities or as replacement for natural gas.

Resulting potential project inlay materials for Antigua are:1. Vinasse from the Antigua Distillery Ltd.2. Collected septic tank content,3. Slaughter house waste from local production4. leguminous leaves, lemon grass and elephant grass as collected and brought to the

facility from road cuttings and through private delivery5. cattle waste of limited nature, .6. Biomass and considerable green matter from the separation at the waste landfill7. Small scale rum production waste, vinasse

The currently planned main process materials are as follows:

Material nature Quantities peryear in metrictons

Seasonalfluctuations

Pre treatment Anticipated yield

Septic tankcontent,untreated

12.000 constant Provided to the site,dehydration

Carbonisation

Slaughter housewaste

1.200 constant Transport Carbonisation

Elephant grass 4.000 constant Collection Transport and Biogas

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shreddingLeucaena 4.000 constant Collection,Transport,

separation from branchesand trunks and crushing /extrusion

Biogas

Grass cuttingfrom roads, golfcourses andhotels

4.000 constant Transport, shredding,crushing or extrusion

Biogas

Yeast 370 constant Transport BiogasVinasse 12.960 constant transport Biogas

Further products from the biogas plant for local consumption will be high quality fertilizer in theform of liquid fermentation residue that can be used directly for agricultural application orexported after drying with the excess heat from the co generation unit..Fertilizer materials are currently imported into Antigua and Barbuda resulting in high endconsumer prices. Prices vary for different products:

- 5lbs of NPK cost EC $ 7.00 or USD 3,5;- 3 yd3 of “miracle gro” cost approx. EC $185.00 / USD 92.

Thereby the produced fertilizer for the biogas plant can provide an interestThere are no local producers of compost in any usable quantities in Antigua but household wasteis frequently composted within the back yard of homes.The main customers for the produced high quality fertilizer will be farmers with both small andmedium sized farms.Discussions in Antigua and Barbuda have shown serious interest in advanced waste to energyapplications and in adapting the policy and legal framework to facilitate this.The required land slot for the planned production capacity would be available in direct vicinity ofthe currently operational main landfill nearby Kings Town..For Antigua it would be crucial to introduce waste separation management at a household levelfor biomass fractions. In case a “biomass ton” (specific container distribution and collection ofbiomass from household production. Collection has to be frequent and reliable.) could beintroduced for collection and provision of sorted waste fractions to the production facilityAnticipated products are:

1. Biogas for electricity production;2. Biogas for direct replacement of natural gas in the existing gas turbines or for

incorporation into common gas cylinders,3. Co- generation heat for desalination or dehydration of septic tank fluids, or direct

application within the rum production4. Fertilizer,5. refined biogas for vehicle operation in combination with governmental incentive scheme

for retro fitting private cars in Antigua

Antigua Project Setup and Output:

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Antigua Project Setup and Output in cooperation with the Government of Antigua and Barbuda,the Antigua Public Utility Authority, the Antigua Distilleries and Antigua Harbour in the form ofa Public Private Partnership construction.

Anticipated project framework will be designed as a Public Private Partnership Electricity production of 0,8 MW/h ele for 8300 hours per year , Heat production of for the distillery process, Refined biogas filled in cooking cylinders for direct household consumption and relief of

energy costs High quality fertilizer in liquid form for sugar cane production Investment estimate: 5,2 Mio. USD, anticipated return on investment 4,2 years on the basis of current electricity consumer

price and related savings, heat, refined gas and fertilizer sales.

The preliminary calculation of energy production in Antigua with the currently anticipatedinlay material flows for the initial project are as follows:

Antigua I Hu 50,4 MJ/Nm³

t/a (FM) TS OTS

l/kgOTS %CH4

m³Biogas m³/ch4

Mwhele Mw th

Vinasse 12960 25 90 681 54 1985796 1072330 0,48987 0,501533Elefantgras 4000 13 82 610 55 260104 143057,2 0,065352 0,066908Leucaena 4000 18 90 600 52 388800 202176 0,09236 0,094559Lemongras 4000 18 91 600 52 393120 204422,4 0,093386 0,095609Yeast 0 0 0 0 0 0 0 0 0

0,7409670,758609

ORC HT eta_ele 0,22P_ele 0,083447

ORC NT eta_ele 0,14P_ele 0,053103

Completeelectricityproduction P_ele

0,895159 MW

Thereby the complete electricity requirement of the Antigua Rum Distillery can be covered withthe energy production from the initially proposed biogas project.The Antigua Rum Distillery currently consumes 700KW/h when it is operational (200 days perannum) and 600 KW/h when it is not producing.

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The complete available off heat from the electricity production can be provided to the distilleryprocess after the parasitic consumption from the temperature control of the fermentationprocess has been taken into account.This provides for maximum energy utilisation from the biogas and electricity production andthereby represents the decisive factor for the selection of the location of the plant.

Picture 27: Land slot for biogas plant in St. Johns, Antigua, currently owned by the government and to be contributed to the biogasproject. Antigua Distillery plant to the left and empty production building to the right for potential bottling plant.

Pictures 28 and 29: view of the proposed landslot from the west onto the empty production hall; landslot view from the east ontoAntigua Distilleries Ltd.

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Pictures 30 and 31: Vinasse pipe from Antigua Distilleries Ltd.; Lagoon with vinasse before washed to the open sea

Proposed Antigua Project setup:

Antigua I Project Setup and Output in cooperation with Antigua Distilleries, Ltd. (hereinafterADL), St. Johns Harbour; Ministry of Energy, Antigua Public Utilities Authority in the form of aPublic Private Partnership model.The Antigua distillery is in the position to take process heat from the biogas project therebycreating an additional income factor for the biogas operation and a cost reduction capacity for thedistillery.The current electricity requirement of the distillery is 0,7 MW/h ele within the 200 days when thedistillery is operational and 600 KW/h ele when the distillery is not producing due to the limitedsales capacities. The steam requirements are 110 degrees Celsius on a low pressure level

The planned biogas capacities will be designed to provide the full electricity requirement of theWest Indies Distillery and provide for excess power import into the Barbados Light and Power gridoperating on the following feedstock:

Inlay Materials to per day to per yearprice per toin USD

TS-contentin %

oTS-contentin %

Vinasse 0 12.960 0 40 90Elephant Grass 0 4.000 6 13 82Leucaena 0 4.000 6 18 90Lemon grass 0 4.000 6 18 92Sorghum 0 1.000 5 32 92

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From fermentation of these inlay materials the following output (gross, median value) can be calculated:

Methangas yield 1.737.952 m³/a Calculated biogas yield 2% exceeding KTBLBiogas yield 3.084.252 m³/a for cellulosis containing inlay materials because of acidification and hydrolysisElectricity 6.951.807 kWh/a hydrolysis for cellulosis cracking.Heat 7.299.397 kWh/a

879 kWtherm

Fermentation residue liquid 13.706 m³/aFermentation residue dry 7.186 to

This is sufficient for 838 kWinst.-Co generation unit for 8.300 full load hours.with an electric efficiency rate of 40,0% (producer guarantee and liability)

Electricity productionCo generation unitFull load hours 8.300Electric efficiency rate 40,0%Thermal efficiency rate 44,0%

Installed Capacity kWel 837,6Produced electricity amount kWh 6.951.807Produced heat amount kWh 7.299.397

Investment 4.981.600Equity Capital 50% 2.440.800External Financing 50% 2.440.800Interest Rate 3,00%

CostsDepretiation 364.567Interest Rates 73.230Insurances and contributions 25.410Repairs and Maintenance 168.940Staff 5 USD 14.600Inlay material costs 77.000Commodities 131.229Miscellaneous 600Fermentation residue distribution 0 USD 0

855.576

Profit (EBIT) 787.484EBITDA 1.225.281Amortisation period 4,2Equity interest rate 32%

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Increased biogas yields will be possible with the reception of sorted biomass waste from resortsand large scale tourist operators, as well as with the introduction of a separation scheme on ahousehold level and a related pre- treatment plant for municipal solid waste at the fermentationfacility.

Excess biogas quantities will be sold as refined cooking gas for direct replacement of natural gasand outreach for more affordable energy access and will also be traded for specific quantities ofinlay materials reflecting the costs for bringing in the materials to the facility.The detailed exchange rate will be matter of calculation of phase II of this program.

Antigua project extension proposal; feedstock production, poultry farm:The 85.000 inhabitants of Antigua and Barbuda consume poultry products with import value ofmore than 1,2 Mio. USD annually which is mostly based on imported goods (about 90% of thetotal consumption is imported mainly from the US). There is hardly any domestic production atthe moment due to the lack of feedstock and agricultural production.Despite the strong demand poultry production has not been developed in Antigua on an industriallevel. Next to fish, chicken represent the highest protein nutrition provider for Antigua andBarbuda.

This proposed project extension suggests the establishment of an agricultural production ofsorghum from about 500 acres in Antigua with a connected poultry production farm.

The anticipated yield from this sorghum production will be 2.400 tons per annum of poultryfeedstock and 2.800 tons of organic material for fermentation material.Out of these 2.800 tons of biomass production from the sorghum stems 1.000 tons will besupplied to the initial biogas plant Antigua I as described above.

The proposed chicken farm is designed to raise 60.000 animals every 8 weeks through shelteredhatching as free run hens that are kept within an enclosed facility with open floor space with adimension of 120m times 20m and a complete investment into the construction of 145.000 USDincluding of water and feedstock feeder and infrared treatments and heating.Thereby a total production of 390.000 animals is targeted per year.

Antigua II biogas proposal with combined poultry production:

Inlay Materials to per day to per yearprice perto in USD

TS-content in%

oTS-content in%

Poultry waste, fresh, 40% dry matter 0 7.000 0 40 75Sorghum 0 1.800 6 32 92biomass from poultry production. 0 1.000 0 40 50

Co generation unitFull load hours 8.300Electric efficiency rate 40,0%Thermal efficiency rate 44,0%

Installed Capacity kWel 331,9Produced electricity amount kWh 2.755.027Produced heat amount kWh 2.892.778

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Co generation unit performanceThermal parasite use of the unit 10%Revenue from heat ct/kWh 3Pot. Heat for sale kWh 2.603.501Actually sold heat kWh 2.603.501Heat utilisation 100%

This production of sorghum will create a closed circle agricultural production addressing the needfor domestic poultry production and will also contribute to the energy production and access toaffordable energy for low income society.The initial step will be the identification of 500 acres and dedication of this land to the project bythe government and initiation of clearing works.

Preliminary Conclusions Antigua:Due to the substantial lack of suitable sized agro industry in Antigua the initially proposed biogasproject has to focus on very specific inlay materials that will provide for intensive pre- treatmentrequirements.Plants such as Leucaena, leguminous leaves and elephant grass that represent either anenvironmental problem in Antigua with considerable impact on the landscape and agriculturalsetup can be harvested easily and are a cheap and simple inlay material source.The collection and provision of these plants for biogas fermentation will be embedded into anincome generation project for low income and vulnerable population groups.The initial plant can be established in the vicinity of the distillery production providing for processoff heat utilization very efficiently.The project will therefore be achieving a maximum efficiency by utilising the different forms ofenergy produced.Future biogas production plants could be established in combination with a poultry farm anddedicated sorghum production on 500 acres.Further units could be established next to the waste landfill as central waste management facilityfor the island .This will provide for simple access to the electricity grid due to the nearbyoperational transfer station.The potential for future off heat utilisation could be used for water desalination purposes withinreverse osmosis processes.It also needs to be further explored if the existing gas turbines in Antigua could be equipped forbiogas use. This would provide for considerable savings in the investment requirements.In order to spread the risk and to provide institutional ownership a combination of foreign directinvestment and domestic investment would be proposed..Based on the initial calculations a return on investment should be possible to achieve in less than4,2 years assuming an internationally comparable renewable energy fee is provided for theintroduction of the produced energy into the grid.

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D.4.) St. LuciaEnergy costs are a considerable burden to the economic growth and society of St. Lucia.The St. Lucia utility provider LUCELEC is operating under a framework program to incorporate upto 3MW/h el from renewable energy providers but does not have a minimum remuneration ofthe provided renewable energy. Hereby the newly elected government which has put renewableenergy production as part of their election campaign in order to reduce end consumer prices, ischallenged to take the necessary steps to keep up with the expectations.In 2003 LUCELEC has produced 281 GWhInitial concepts for biogas production in St. Lucia have involved sorted municipal waste capacitiesto be obtained directly from the main landfill in St. Lucia near Castries.In the course of research it has become evident that this approach will be difficult to implementdue to the current lack of available labour force in St. Lucia for waste separation as reported bythe only operating recycling company in St. Lucia. Further recruitment and training will thereforebe a critical issue for this approach

Picture 32 : biomass fractions arriving at the St. Lucia landfill near Castries.

These waste fractions are simple to separate and to include into the production stream. Theactual annual quantities can not be clearly assessed and the biogas production capacities willneed to be established accordingly to also involve these inlay material flows.

St. Lucia End consumer Energy Costs:Energy nature unit Price per unit in USDElectricity kWh 0,45Natural gas 20lb cylinders 17Natural gas 100lb cylinders 52Gasoline gallon 7,7

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For St. Lucia a potential integrated biogas project could be established building on already existingexpertise and capacities as established by the”Bio Ethanol” company which is currently operatingon biomass waste masses from different sources.Currently food production Co2 is procured for 0,26 USD per kg by the Heineken brewery in St.Lucia.Potential project materials have been identified as sorted municipal waste, fresh food marketwaste, abattoirs and agro industry waste from banana and coconut production.Vinasse from the St. Lucia Distillers Group of Companies could be part of the project and thedistillery confirmed readiness for participating at feasible biogas projects.Tests will need to be carried out to determine whether it will be possible to ferment fresh coconutshells when crushed and extruded within biomass extrusion and crushing treatment.Waste from banana production is currently collected by a private company (Bio Ethanol) for fuelproduction but the high water content provides for technical problems.The Heineken brewery will provide (also in combination with Solar Cooling possible) a solidproject partner for inlay material production and heat consumption. Heineken could join thisproject on a private partnership basis.Anticipated products are:

Biogas for Electricity production Refined biogas for electricity production or direct replacement of natural gas use of co- generation heat for desalination, fertilizer, refined biogas for the replacement of fossil fuel and natural gas and Co2 for beer and beverage production

It is foreseen that a PPP or PP solution could be possible with suitable partners.Future improvement capacities will be possible with agricultural waste and biomass collectedfrom banana production and of course the vinasse from the rum production.

St. Lucia inlay material composition:

Material nature Quantities peryear in metrictons

Seasonalfluctuations

Pre treatment Anticipated yield

Banana Leavesand bananawaste

4.200 constant Transport and shredding Biogas

Spank grain,barley

3.200 constant Transport Biogas

Yeast 280 constant Transport BiogasElephant grass 1.200 constant Collection Transport and

shreddingBiogas

Leucaena 900 constant Collection, Transport,separation from branchesand trunks and crushing /extrusion

Biogas

Grass cutting 800 constant Transport Biogas

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from roads, golfcourses andhotelsVinasse fromRum production

14100 constant Transport Biogas

The molasses for the rum production in St. Lucia is completely imported from Guyana as there isno sugar cane production left in St. Lucia.

Anticipated energy production through biogas for St. Lucia:

Inlay Material St.Lucia

t/a ( FM) Biogas (Nm³/a)

Q thMwh/a

Mwh el /a KWel/h Co2 ( 46%) (Nm³/a )

Banana Leaves 4200 315000 1260 416 52 144900Spank grain 3200 240000 960 317 40 110400Yeast 280 21000 84 28 3 9660Elefant gras 1800 135000 540 178 22 62100Leucaena 900 67500 270 89 11 31050Grass cutting 800 60000 240 79 10 27600Vinasse 14100TOTAL 838500 3354 1107 138 347

The rum distilleries in St. Lucia could provide 14,183,520 litres of vinasse on an annual basis forwaste to energy production:

St. LuciaDestilleries

t/a (FM)

Et-OH(t/a )

Biogas (Nm³/a)

MWhth/a

MWhel/a

kW el

Vinasse 14100 5267 4183 504

Thereby the complete energy production from biogas when focusing entirely on electricity withthe currently secured and calculated inlay materials could be 850 KW/h el.Based on above calculations, the complete production with the currently identified inlaymaterials could cover 8% of the current electricity production in St. Lucia.A considerable percentage of the available banana production waste and sorted biomass fromthe landfill will increase the potential electricity production up to 10% according to projectedmass flows. These figures will need to be confirmed and the availability secured in the course ofphase II of this program.

Increased biogas yield will be possible with the reception of sorted biomass waste from resort andlarge scale touristic operators as well as with the introduction of a separation scheme on ahousehold level and a related pre- treatment plant for municipal solid waste at the fermentationfacility.A Public Private Partnership solution should be considered with identified private partners in St.Lucia and governmental authorities which would represent one of the most suitable solution forthe plant setup and operation.

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Preliminary Conclusions St. Lucia:The project will depend heavily on the involvement of the main agro industry operators, thedistillery and the provision of biomass materials from landfill and collection efforts.The vinasse from the distillery in St. Lucia will be further checked within fermentation tests as partof the second stage of this program.Plants such as Leucaena, legumineous leaves and elephant grass that represent an environmentalproblem in St. Lucia with considerable impact on landscape and agricultural setup can beharvested easily thereby representing a cheap and simple inlay material source.The integrated biogas production plant could be established next to the municipal landfill nearbyCastries as central waste management facility for the island .This will provide for simple access tothe electricity grid and potential for future off heat customers or desalination effortsAlternatively the plant can be established in the vicinity of the distillery providing for process offheat utilization within the rum production.Thereby the project would be achieving a maximum efficiency on utilisation of the different formsof energy produced by the proposed structures.Based on the initial calculations, a return on investment should be possible to achieve in less than6 years assuming an internationally comparable renewable energy fee is provided for theintroduction of the produced energy into the grid

D.5.) St. Vincent:St. Vincent produces about 80% of its electricity consumption with Diesel generators and 20%with small scale hydro power by the utility operator VINLEC.VINLEC has produced about 140 GWh/ a electricity in 2006 for 31.126 consumers with a totalinstalled capacity of 32 MWel/h.The planned biogas project setup in St. Vincent provides for an ideal mixture and close setup ofelectricity and heat consumers, fertilizer distribution to banana cultivation and industrial wasteinflow.The electricity produced will be sufficient to support the St. Vincent brewery and the St. VincentCorrugated Containers Inc. which are located next to each other.St. Vincent Corrugated Containers Inc. produces cardboard containers for banana production andother paper and cardboard products and requires low pressure steam at 300 degrees Celsius.Following the damages for the banana production in St. Vincent as a result of the recent hurricanetwo years ago the production of cardboard for bananas decreased from 15.000 boxes to 5.500boxes per month.For the steam production alone St. Vincent Corrugated Containers Inc. currently has an electricitybill of 0,25 Mio USD per year.For St. Vincent Corrugated Containers Inc.energy costs have become a critical issue for economicsurvival and this project could provide the means to remain operational.The utility operator VINLEC is state owned and has established several small scale hydro plants asrenewable energy source. VINLEC is also operating a renewable energy framework but only on avery small scale basis

End consumer Energy Costs:

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Energy nature unit Price per unit in USDElectricity kWh 0,42Natural gas 20lb cylinders 17Natural gas 100lb cylinders 52Gasoline gallone 7,8

Food production Co2 is procured at 0,28 USD per kg by St. Vincent brewerySt. Vincent Brewery Ltd., International Brewing Limited, Royal Unibrew (also in combination withSolar Cooling possible) has seen a new ownership in 2011 which plans for integrated wastemanagement and renewable energy consumption

Picture 33 and 34 : sorted biomass arriving at the main landfill in St. Vincent near Kings Town

The proposed biogas unit will be fed by beer production residue, agro industry waste and biomassfrom road cuttings and landscaping:

spank grain, barley about 20m3 per day yeast, 1m3 per day collected leaves and waste bananas from the banana farms leguminous leaves and elephant grass as collected and brought to the facility, grass cutting from road cleaning exercises that are currently brought to the landfill in St.

Vincent.

Anticipated inlay material St. Vincent:Material nature Quantities per

year in metrictons

Seasonalfluctuations

Pre treatment Anticipated yield

Banana Leavesand bananawaste

3.800 constant Transport and shredding Biogas

Spank grain,barley

2.800 constant Transport Biogas

Yeast 220 constant Transport BiogasElephant grass 4.000 constant Collection Transport and

shreddingBiogas

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Leucaena 2.200 constant Collection,Transport,separation from branchesand trunks and crushing /extrusion

Biogas

Grass cuttingfrom roads, golfcourses andhotels

1.800 constant Transport Biogas

Anticipated products are:1. Biogas for Electricity production,2. Co- generation heat for beer and card board production,3. Fertilizer,4. refined biogas for filling into standard cooking cylinders and eventually retro fitted

vehicles

Anticipated energy production through biogas for St. Vincent:St. Vincent t/a (

FM)Biogas (Nm³/a)

Mwhth/a

Mwh el/a KW el/h

Co2 ( 46% )(Nm³/a ) t/a

Banana Leaves 3800 285000 1140 376 47 131100Spank grain 2800 210000 840 277 35 96600Yeast 220 16500 66 22 3 7590Elefant gras 4000 300000 1200 396 50 138000Leucaena 2200 165000 660 218 27 75900Grass cutting 1800 180000 720 238 30 82800

1156500 4626 1527 191 479

Thereby the complete electricity production from biogas when focusing entirely on electricitywith the currently secured and calculated inlay materials could be 191 KW/h el.This could cover 4 % of the current electricity production in St. Vincent.Given that a considerable percentage of the available banana production waste and sortedbiomass from the landfill is currently not within the secured material flow calculation, theseadditional materials will increase the potential electricity production up to 10% according toprojected mass flows.Increased biogas yield will also be possible with the reception of sorted biomass waste fromresort and large scale touristic operators as well as with the introduction of a separation schemeon a household level and a related pre- treatment plant for municipal solid waste at the municipallandfill.A Public Private Partnership solution could be considered with identified private partners in St.Vincent and governmental authorities which could represent the most suitable solution for theplant setup and operation.

Preliminary Conclusions St. Vincent:

55

The project would depend heavily on the involvement of the main agro industry operators andthe provision of biomass materials from landfill and collection efforts. Plants such as Leucaena,leguminous leaves and elephant grass that represent an environmental problem in St. Vincentwith considerable impact on the landscape and agricultural setup can be harvested easily, therebyrepresenting a cheap and simple inlay material source.The biogas production plant should be established next to the brewery and the cardboardproducer St. Vincent Corrugated Containers Inc. providing an ideal solution for electricity and heatutilisation. This will provide for local consumption of the produced electricity and the off heat ofthe co- generation. Fertilizer will be provided to the banana production industry. Thereby theproject would achieve a maximum efficiency utilising f the different forms of energy produced.Based on the initial calculations a return on investment should be possible to achieve in less than5 years.

Future Project proposals for preparations will include:Grenada:Project materials have been identified from the distillery in Grenada with 13.600 tons of vinassewash per year for introduction into biogas production and participation at any suitable projectsetup. The distillery in Grenada has expressed readiness to participate at the further projectdevelopments.Further available process material includes sorted biomass from municipal waste, fresh foodmarket waste, abattoirs, selected cruise ship and hotel biomass waste, and agro industry wastefrom banana production.Dominica:Project materials could include sorted municipal waste, fresh food market waste, agro industrywaste (bananas, fruit production).International Brewing Limited, Kairi Malt, Kubuli Beer, Royal Unibrew (also in combination withSolar Cooling possible), also generate beer production residue.St. Kitts and NevisProject materials have been identified as sorted municipal waste, fresh food market waste,abattoirs, selected cruise ship and hotel biomass waste, and agro industry waste from agroindustry production.

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E.) Solar Cooling:Solar cooling currently represents still one of the less known renewable energy production andfossil fuel conservation technologies. Many potential customers are unaware that a solar plantcan also be used for cooling purposes.The idea behind solar cooling is in fact very simple: In summer or peak heat and sun periods,when there is an increased demand for cooling because of the solar radiation that occurs, theenergy which is obtained is utilised to operate a thermal absorption cooling machine thatprovides the necessary cooling capacity.Thereby the electricity consumption of the cooling unit for large scale applications can be reduceddown to about 20 per cent of the electricity consumption of standard electricity based coolingstructure.Each project needs to be established on an individual basis and solar cooling has operational costadvantages when it is already considered in the planning stage.For each project alternatives in regard to electricity production from photovoltaic production arecalculated and cross referenced in order to identify the best possible technical solution.Simplified diagram of a solar cooling system:

1 Collector field 4 Back-up heating system2 Heat exchanger 5 Absorption refrigerating machine3 Buffer store 6 Cooling tower

Solar energy and solar cooling capacities represent tailor made solutions that provide promisingopportunities specifically for high frequency construction such as airports, office buildings, hotels,apartment houses where central cooling structures are put in place or are already operatedSolar cooling can be used in virtually all buildings to operate the cooling circuits and therefore toair-condition rooms.The cooling load is best provided when solar energy is available and therefore the cooling

demand of a building is approximately equivalent to the solar radiation. Solar air-conditioningsystems are usually operated with entirely non-hazardous operating liquids such as water or brinesolutions. They are energy-efficient and environmentally friendly and can be employed either as

43

6

5

1

2

57

independent systems or in conjunction with conventional air-conditioning systems. The primaryaim is to use solar technologies with "zero emissions" to reduce the level of energy consumptionand CO2 emissions specifically as air conditioning represents one of the biggest power consumersin hot climate countries.

- Compared to conventional cooling systems, the expected life time of the components of asolar plant is substantially longer (20-25 years).

- Cost savings play a crucial role in the calculation of efficiencies for solar cooling. Thismeans that the ongoing energy costs, e.g. for gas, coal, oil, are substantially reduced asthe solar cooling is operated using solar energy. Costs are only incurred for any back-upsystem that may be required.

- As solar cooling plants contain virtually no moving parts, the maintenance and repaircosts are reduced considerably.

Possible areas of use for solar cooling:

Office buildings Airports Hotel complexes Administrative Complexes Hospitals Appartment houses Industry and commerce Gastronomy Commercial cooling structures

Solar cooling system provide for operational advantages for the project:1. Independent system: The user is independent from other systems. The solar

cooling plant works during the day without other cooling system requirements.2. Telemonitoring: The solar cooling system operates totally automatically. It is

possible to grant internet access to watch the system perform.3. Lifetime of the solar cooling plant: The lifetime of the solar cooling plant is

normally 25 years. This is based on normal maintenance schemes and on datafrom several independent research institutes.

4. Roof area: The collector area provides a shading of the building roof and therebyassist to reduce the electricity demand of the building.

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E.1 St. Lucia, National Insurance, Property Development and ManagementCompany building, NIPRO

Picture 35: NIC Building Castries

The building, called the Francis Compton Building is located at the Waterfront Castries. Thebuilding was constructed in 1999. It is a 6-story building with a flat roof. Mainly built fromconcrete and glass the building absorbs not only the heat from the sun but also a portion of theradiation reflecting from the water surface of the harbour. The technical and financial feasibilitystudy for the NIC building has been carried out in 2010 and the project parameters have beenestablished. It became clear that air conditioning is the biggest consumer with more than 50% ofthe entire electricity consumption of the building followed by lighting with almost 30%, officeequipment, elevators, transformers and the kitchen and sanitary appliances add to the totalconsumption of 1,331,072 kWh annually.

Therefore the spent cooling capacity for the building currently accounts to 667.758 kWh per year.TOTAL Investment requirement into a solar cooling structure: 963,498 USDLife of system net savings: 5,459,720 USD after 25 yearsConst increase electricity: 7 %Electricity tarif: 360 USD/MWhPeak saved: 1,584 kW/yearEnergy savings: 175,22 MWh electricity/year

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Savings shadowing roof: 20,530 USD/yearThe shadowing with the solar thermal collectors of the roof enables a cooling load reduction of 30W/m².Return on investment for the applied solar cooling structure is estimated within 7,6 years on thebasis of average electricity price raises within the last 5 years.

E.2.) St. Lucia, La Place Carenage; Our Planet Building:

Picture 36 Our Planet Shopping Complex Castries

The La Place Carenage building represents a commercial building in downtown Castriesincluding shops, cafes and for energy cost reduction and increase of efficiency for smallscale shopping mall. The current electricity costs for cooling of thus unit is about 158.000USD per year that can be covered by solar cooling application.The thermal solar collector areas, approximately 170 m² - 200 m², deliver the solar heatinto a storage tank with a volume of approx. 4000 l. The collector areas are supposed tohave a power output of 100 kw depending on the return temperature of the customer.The energy output on a sunny summer day will be app. 3 kwh/day maximum. If thetemperature of the collector panels exceeds the one in the storage tanks, the solar pumpP1 starts. The temperature of the “cold” storage tanks should be app. 50°C. The pumpstops when the collector temperature is less than the temperature in the storage tanks.

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To run the absorption chiller a temperature of 75/95°C is required. To protect the solarpanels against mud from the solar tanks, a silt trap is installed in the solar circuit. It has tobe cleaned at regular intervals by opening the valve at the bottom side. To compensatethe dilation of the solar (and heat) medium, an expansion vessels with a capacity of 400 lis installed. An intermediate vessel protects the membrane of the expansion vesselsagainst high temperature imported by hot solar medium. In case of maintenance themembrane can be changed without moving the vessel itself. This expansion unit gives alsosafety to stagnation of the collector areas. It is not allowed to block the connectionbetween the solar area and the expansion vessels.The collector area is operated up to an output temperature of app. 110°C. In case of noneed of thermal energy or a serious handicap in our system (or a blackout), thetemperature of the collector panels keeps rising till the liquid inside the panels boilsaway. In this case, the safety valve on the solar flow pipe might open. The fluid steamsout into a collecting vessel with a volume of 200 l for the solar medium. After sunset(when the collector area has cooled down) the fluid has to be pumped into the systemagain with a refilling pump. After reaching the correct operating pressure the collectorareas have to be de-aerated. High performance solar hot water collectors are built on theroofing area.The solar collectors that are proposed to be installed are certified to EN12975 (Europeansolar collector testing standard) and to OG 100 (American solar collector testingstandard). These collectors are large-area collectors especially designed for large-scalesolar systems like for the Our Planet building. Collectors can be easily shipped in acontainer and allow a very quick assembly. The collector space of approximately 500 to800 m² of collector area can be mounted on a single day. In large-scale solar systems, thetechnology using large-area collectors is far more efficient than numerous smallercollectors plumbed together.

Installation management Solar Cooling Cabin

The solar Cooling Cabin consists of a solar pump unit (PU1), PHW loading unit (PU2),absorption chiller and PHW storage tank, safety and pressure control unit, meters forthermal energy and water consumption, water softening unit and control cabinet for allcomponents.

The cabin is prepared for:o Solar thermal power of 100 kWo Absorption chiller with nominal capacity of 70 kWo Cooling tower according to peak demand of the absorption chillero Pump units for heat medium, chilled water circuit and cooling tower circuito Pressure control unito Monitoring and control of electric chiller

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Cooling tower Solar heat storage tanks Steel construction and concrete work will be carried out on site Pipe work System start up and local management

The centre has expressed the interest into a solar cooling system to cool the buildingdirectly with a solar cooling system to demonstrate the usage of renewable energy forthis purpose.The project is still in being investigate and explored but Our Planet can use a solar coolingsystem with the following details

Total solar panel area needed 170 to 200 square meters. Absorption chiller capacity 70 Kilowatt Total project price US $ 399,000.00 Estimated payback 7 to 8 years

E.3.) Guyana CARICOM Headquaters:

Picture 37 : CARICOM Headquaters

The total annual energy consumption of the two buildings that the Caricom Secretariat currentlyoccupies in Guyana are 2,000,000 kWh/a. The air conditioning in the CARICOM HQ center is by farthe largest energy user as expected and uses an average of 76% of all electricity consumption.This project has already gone through an intensive pre design phase and is now ready forimplementation and is regarded as a great project to demonstrate both the use of solarphotovoltaic and solar cooling especially as most Caricom Ministers have to visit this facility atleast once a year. And therefore the Caricom project can potentially create a significantbreakthrough in the acceptance of solar cooling technology for many Caricom states and at thesame contribute to significant cost reductions for the organization.

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The HQ building is suitable for solar cooling as the panels can be ground mounted on the groundsat the back of the building providing the most cost effective solution and at the same timeincrease the visual image of the project.

Picture 38: ground based solar cooling panels

Complete bankable project design establishedCollector size area 1,000 square metersAbsorption chiller size 90 TProjected electricity savings 230,000 KWH per yearNet cost savings after 25 years US $ 5,180,000.00Total investment US $ 2,128,000.00

The air conditioning system of the building is however set up in such a way that a significantadaptation investment of US $ 604,800.00 is needed that normally would not be necessary. Thesecosts currently create the stumbling block for this project as this has increased the payback timefor the system up to 10 years. Without this the payback would be around 7 years.

E 4.) Hospital Complex Antigua:

This project has been identified at a late stage of the program implementation as one of the mostinteresting applications for solar cooling in the region that will also show the capacities andpotential of the technology for large scale public buildings

Solar Cooling for the central hospital in St. John’s and the future cancer research center that isplanned right next to the current complex represent an interesting solution for sustainabledevelopment of renewable energy production and energy efficiency development in the region.

Antigua has the highest electricity cost level of all the OECS countries. The hospital has a criticalsize for a solar cooling project and the building layout would allow for a technically successfulimplementation.

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Picture 39: Hospital complex in Antigua

The hospital complex represents one of the biggest single electricity consumers in Antigua with anelectricity cost bill of about USD 250.000 per month only for the cooling of the necessaryapplications.These cooling costs could not be covered by the hospital operator within the recent 9 month andthe operational performance of the hospital specifically of the surgery complex has been sufferingfrom the difficult energy situation which has led to a lack of availability of necessary surgerycapacities.Therefore a potential solar cooling application for the hospital complex represents a priorityproject for Antigua and Barbuda as it represents a public health threat.

Floor size distribution Antigua for solar cooling retro fitting:1st Floor 596700 cu ft2nd Floor 228852 cu ft3rd Floor 268704 cu ft4th Floor 268704 cu ft

Total 1362960 cu ft

It is currently planned that this project will be part of an extension of phase two of this programfor separate project development and identification of financing capacities.

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Future Solar Cooling Project Development to be considered for phase 2 of the project:Hilton Hotel Barbados,350 rooms; project development by CHENACT

UN Building Barbados:Within project phase two the possibility of an initial economic feasibility could be envisaged andincorporated.

The next stage for solar cooling projects will involve the designing and preparing forimplementation large scale solar powered cooling applications for airports, administrativebuildings and applications such as schools and universities, tourism infrastructure (privatepartners), social housing and industry applications.Solar cooling assists in the reduction of extremely high energy costs for air-conditioning as one ofthe biggest energy consumption factors within the OECS states.Solar cooling represents a cost effective stand alone solution for identified projects andapplications in order to reduce energy consumption when there is highest demand for airconditioning.

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F.) Small scale Hydro Power:Tailor made small to medium hydro power plants of 1MWel/h up to 20MWel/h representdecentralised community scale energy options for energy production close to remote consumerareas with the ability to respond to individual demands. Thereby investment into long distancegrid connections can be saved and the technical solution can address the specific energyproduction requirements for small communities.Efficient and suitable technical setups and turbine structures guarantee cost effective projectimplementation with low maintenance costs and long effective lifespan of the power plant.Beside impact on the environment due to changes in the water system which can be partyalleviated in most of the cases small scale hydro represents one of the most sustainable and costeffective alternative energy production capicities.The identified projects display the capacities that small scale hydro power can contribute toenergy production through renewable energy sources with limited investment requirements,simple operational structures and short return on investment times.Projects of 0,5 up to 10 MW/h can be implemented rapidly with limited effect on theenvironmental setup and water resource management within the area of implementation

F1.) Dominica; New Town:In 1991/92 a bulk water pipeline was built from the tailrace channel of DOMLEC’s Paduhydropower plant leading down to the sea in Roseau.The alignment crosses the township of Newtown (hence the name of the proposed hydropowerplant) and ends at the shoreline close to the Savannah sports ground. The pipeline was originallybuilt to supply bulk water that was intended to be sold to cruise ships and other vessels. Thewater to be sold origins from the Fresh Water Lake and is used for the operation of the Trafalgar,Laudat and Padu hydropower plants prior to being fed into the bulk water pipeline at the tailraceof Padu.The recommended powerplant foresees the use of the existing pipeline as the sole penstock forthe hydropower plant which would be located at the place of the valve chamber at the shorelinein Newtown.A new weir and de-sanding structure would be built at the Roseau River to hydraulically uncouplethe Newtown scheme from the Padu hydropower plant.The design discharge would be 0.35 m3/s at a maximum head of 109.7 m resulting in amaximum turbine capacity of 227 kW and a generator output of some 220 kWel/h.The average annual power output would be 1.8 GWh and the power would be evacuated via a0.4/11 kV step up transformer into the public power grid.The hydropower plant with its synchronous generator would be fully automated in unmannedoperation and would be controlled from DOWASCO’s head office. Storage of bulk water at theshoreline or anywhere else did not turn out to be feasible, but a bigger pipeline would benecessary to supply cruise and tanker ships berthing at the cruise ship terminal.

Cost and Expected BenefitsThe cost for the hydropower plant as proposed in the selected option amounts to 3.8 Mio. EC$.The major positions are the powerhouse (800,000 EC$) with its machinery (740,000 EC$) and thenew weir structure (1.45 Mio EC$). The cost for the additional bulk water pipeline from the

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powerhouse to the cruise ship berth amounts to 1.58 Mio. EC$ resulting in total project costs of5.38 Mio EC$.All costs include 20 % margin for miscellaneous and unforeseen items. The investment cost can beconsidered as being conservative and being on the upper end of the range.The hydropower plant is expected to produce some 1.8 GWh annually.With an assumed power selling tariff of 0.20 EC$/kWh and an escalation rate of 6 % p.a. and thesavings resulting from own use of energy at the sewerage pumping station in Newtown theannual benefits from energy sales and savings amount to 377,200 EC$.

7Subsequent Economical ConsiderationsThe economic analysis as shown in the feasibility study is based on certain assumptions for whichno verification is possible at this point of time. The assumptions are:- The generated electricity will be used to supply the sewerage pumping station inNewtown with its demand of 2,000 kWh monthly. The saved costs are included in the analysis.- The remaining electrical energy will be sold to DOMLEC at a rate of 0.20 EC$ per kWh.- The discount rate is 9.5 %.- The inflation rate is 6.0 %.- The energy sales prices increase proportional to the inflation rate.- The interest rate for the project financing is 9.5 % (according to the discount rate).- The maintenance cost amount to 5 % of the revenue from energy sales.- A re-investment for a main revision of the turbine will be required after 18 years ofoperation.The most important parameters for this project to become economic feasible are:- Energy sales tariff- Discount rate- Energy Generation- Investment cost- Operation period (20 to 50 years)

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F.2.) St. Vincent South Rivers and Richmond

South Rivers:

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Pictures 40 to 44 South Rivers Power PlantsThe South Rivers plants have been built 50 and 57 years ago.RICHMOND:

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Pictures 45 to 48: The Richmon hydro power plant Richmomnd hydro poaer plant has beenestablished 47 years ago.

All three installations have passed life time expectancy and need to be repaired and improvedturbine capacities need to be installed in order to achieve the highest possible efficiencies.Furthermore investment into the piping structure, fish ladder capacities and concrete structuresneed to be carried out.

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The loss of electricity that could be produced due to the failure of performance with the currentcapacities account to the following figures:

Rapid Environmental and Social Impact Survey (RESIS) Recommended minimum flow to remain in the river:1. Richmond: 0.330 m3/s (5,530 gal/min)2. South Rivers: 0.280 m3/s (4,440 gal/min)3. South Rivers Stage 2: 0.325 m3/s (5,150 gal/min)- To enable aquatic life in the river at all times- To protect repairian flora from drying out- To enable current usage of the water for bathing, washing etc- Minimum flow: international standard requirement- Values derived by an analysis done by CEHI

Based on the above consultations the following calculations have been established:

Conclusions St. Vincent, Richmond and South River:These three hydro power projects represent an immediate possibility for sustainableproduction of 15,7 GWh/a and therefore represent about 9,8% of the somplete electricitycapacity that hase been produced by VINLEC in 2006.Provided a suitable feed in tariff can be achieved the investment into these capacities will beeconomically feasible.

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G.) Collection and Recycling of Old Tires and different Synthetic Materials

G.1.) Economic Calculations for Recycling of old Tires and selectedSynthetic Materials:

Pictures 49 and 50, possible vessel for collection and first stage treatment of old tires and synthetic materials.

One collection, shredding and packing vessel commuting between the OECS states andpotentially other CARICOM states by extension of the project will pick up and shred the tiresand the collected synthetic materials within the initial treatment stage.This project can be expanded gradually with the increase of market penetration of the recyclingproducts.

Current estimates provide a ballpark figure of about 7,1 Mio. tires currently available within theOECS states.Monthly production is about 75 tons mainly in Antigua, Grenada, St. Vincent and St. Lucia andsmaller quantities on the other islands.

Antigua has currently about 1 Mio. Tires with 78% small and 22% truck tires. St. Lucia currently stores about 800.000 tires with about 85% small vehicle tires and 15%

truck tires. St. Vincent currently stores about 720.000 tires, composition currently unknown but very

presumably very similar. Grenada currently stores about 850.000 tires, composition currently unknown but very

presumably very similar.

The same collection and treatment logistics can be used for recycling of different syntheticmaterial fractions thereby building on economies of scale and increasing financialfeasibility.

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Current estimates provide a ballpark figure of about 2.900 tons of selected synthetic materialsof Polyethylene, Polypropylene and Low Density Polyethylene are currently available within theOECS states on an annual basis to be retrieved after manual separation from the main landfills.Monthly production is about 75 tons mainly in Antigua, Grenada, St. Vincent and St. Lucia andsmaller quantities on the other islands.

Sea Vessel Procurement Suggestion:100m length, DWT 4,000; procurement costs approx. 2 Mio USDOperational Cost estimate for raw material Collection: approx. 1, 264.000 USD per annumRaw Material Collection:2.900 tons of synthetic waste materials per annum20.000 tons of used tires, 12.000 tons of rubber granulate and 3.000 tons of steel per annumProduction establishment:Synthetic construction material, (2.800 ton output pa) 3,5 Mio USDUsed Tire granulation; <15mm (12.000 ton output pa) 3,4 Mio.USDOperational Costs per annnum (inclusive of staff, maintenance, administrative overhead,depreciation, financing and energy costs):Operational Costs for Production of Synthetic recycling materials : 450 USD per ton; 1,26 Mio USDOperational Costs Tire Recycling: 270 USD per ton raw material (20.000) ; 5,4 Mio. USDTotal operational costs pa: 7,9 Mio. USDAnticipated revenues per annum:Synthetic construction material: 1080 USD per ton; net without shipping costs ; 3,02 Mio. USDRubber granulate: 520 USD per ton; net without shipping costs; 6,24 Mio USDSteel: 58 USD per ton (3.000 tpa); USD 174.000,-Total anticipated revenue pa: 9,434 Mio USD

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G2.) Tire RecyclingOld tires currently represent an environmental threat and public health risk factor as small pitswithin the tires represent excellent breeding grounds for contain valuable resources and energy.From available data it seems that a tire recycling centre for the OECS and other Caribbean statescould be placed in Antigua due to high loads of old tires in this area and logistical advantages.Collection of decentralised tire storages throughout the Caribbean could be established by one ormore sea vessel mounted compression or shredding devices that could service the involvedislands on a regular basis.

Graphic: Design of a tire recycling plant.

The tire recycling capacity can easily be combined with collection, treatment and effectiverecycling of different kind of synthetic materials (e.g. PET, PE, PP, PS, LDPE, HDPE) and can becarried out on a profit oriented basis.Specifically the high amount for PET bottles in the OECS states and Barbados calls for a collection,baling and shredding exercise.

One or two collection, shredding and packing vessel(s) commuting between the OECS states andpotentially other CARICOM states will pick up and treat the tires within the initial treatmentstage.Current estimates provide a ballpark figure of about 7,1 Mio. tires currently available within theOECS states.Monthly production is about 75 tons mainly in Antigua, Grenada, St. Vincent and St. Lucia andsmaller quantities on the other islands.

Antigua has currently about 1 Mio. Tires with 78% small and 22% truck tires.

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St. Lucia currently stores about 800.000 tires with about 85% small vehicle tires and 15%truck tires.

St. Vincent currently stores about 720.000 tires, composition currently unknown but verypresumably very similar.

Grenada currently stores about 850.000 tires, composition currently unknown but verypresumably very similar.

The remaining quantities are currently stored in St. Kitts and Nevis, Barbuda and Dominica.Further amounts could be incorporated from the other Caribbean islands that are not part of theOECS such as Barbados, Guadeloupe, Martinique, etc.The utilization of tires is generally very intense to bare substance of the tires before they reachthe dumping ground.Open burning is currently a common treatment of the islands resulting in serious emissions andgeneral environmental hazards.The burning of old tires takes place on offshore wind placements but cannot always ensure aclean way of the fumes expanding on to the open sea.Most of the islands have developed collection and storage capacities.Further process and treatment plants could be placed in St. Lucia due to considerable massesspecifically of old tires that are placed on this island already and logistical savings for the process.

One central treatment plant could be established and operated in St. Lucia due to the amount oftires that has been collected on this island and the comparably large scale of new tires providedfor recycling.A recent open fire among the one million tires currently stored at the Antigua landfill proves thenecessity of the immediate recycling process.Essential reduction of volumes within landfill capacities, reduction of dengue fever cases,mosquito pest control will be important side effects of the process.Anticipated products: Certified construction materials as replacement for concrete and wood,insulation materials, additives into road construction, sorted steel, sorted fabrics, rubbergranulate

Picture 51 and 52: Second stage tire recycling, fine grinding

Sales of products into the OECS and CARICOM states, specifically into Haiti for constructionmaterials from recycled synthetics.

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Recycling / Production

100%

Old Car and

Truck Tires

- Initial shredding

- Granulation (2-4mm)

15% Steel/Iron 3.000to/a

25% Textile cloth 5.000to/a

60% rubber granulate12.000 to/a

Grinding Finegrain

(0,1-1,4 mm)

o New Tireso Sports groundso Traffic Installationso Road Constructiono Construction Materialso Agro Industryo Industrial rubbero Filling materials etc.

Primary replacement for new rubber up to 80% (!)

RUBBER PRODUCTS

Production/ Re- utilisation

Rubber granulates, rubber powder andrubber pieces which are obtained byprocessing of used tyres have differentutilizations:The produced rubber granulate can replaceabout 10-15 % of new rubber within the tireproduction. If rubber powder is recoveredat the highest quality then these recycledpowder masses can be introduced inproportion of 30-40% or even till 80% innew rubber products. These products canbe used in:

1) Producing of auto pieces . For ex.:Ford Company use recovered rubberin proportion of 25%.

2) Producing of rubber hoses and conveying belts. Within new items produced recycledgranulate can used approx. 40% recovered rubber.

3) Insulate materials for the roofs (60%).4) Railway sleepers (10 - 100%)5) Materials for shoes (10 - 100%)6) Concrete processing for roofs

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Pictures 53 to 55: Rubber products from recycled tires

Due to the high purity of the rubber granulate and rubber powder produced in theproposed recycling plants, it can especially be used for the production of high–quality andsustainable products.Currently there are several products introduced into the market in Europe already likebuilding protection mats, blocks, sports field construction mats, traffic managementsystems, etc.. Loose granulate is used for the installation of drainage layers or dampcourses on location.The addition of rubber granulate to asphalt is increasingly practiced in Europe within roadconstruction due to increade thermal resistance and higher lifetime expectance.

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Picture 56 to 58 : different products from recycled rubber

Confectioning of asphalt carpets for highways(15-18%). Special protecting materialcomposed by asphalt and rubber make to increase motor vehicle adherence at the rollingtrack and reduce considerable rolling noise. In West Europe is previewed repair of hig hwayswith this material for more than 700,000 km roadway, and in Japan 130.000 km. Theaddition of rubber granulate to asphalt is practiced more and more in Europe in the roadconstruction.

Picture 59: I 40 near Flagstaff, paved Picture 60: I 40 near Flagstaff, AZwith conventional Asphalt paved with recycled rubber mixed

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Images and show two stretches of I 40 near Flagstaff, AZ. Both pavements were laid i n 1990,the pictures were taken in 1998. While the conventional pavement (left image) is alreadyseverely cracked, the pavement (right image) with used rubber added into the bitumen is inmuch better shape. (Photos Courtesy of Mr. George Way, of the Arizona DepartmentTransportation).The main advantages of Rubber Modifies Asphalt (hereinafter RMA) can be summarized asfollows:

- Reduced thermal cracking (due to changing temperatures) and rutting (usuallycaused by hot temperatures) can be reduced with one and the same asphalt mix.RMA is specifically useful in areas with extreme climates, i.e. high temperatures insummer.

- Severely cracked pavements can be paved over with RMA or with a stress absorbingmembrane interlayer (SAMI) because the more elastic properties of RMA or SAMIsignificantly reduces reflective cracking.

- Due to lower maintenance costs and increased durability, the live cycle cost of RMAis significantly lower when compared to conventional asphalt pavements.

- Other advantages include increased traffic safety due to a better deicing property,increased skid resistance and fewer construction sites.

Based on the proven technical and economic advantages of RMA, the use of recycled tirerubber nearly doubled from 1995 to 1999 in North America and keeps stead since then.The end products are of a very good quality and low prices. Through the realization of thisinvestment, new jobs will be created.

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Synthetic recycling:The same collection and treatment logistics can be used for recycling of different syntheticmaterial fractions thereby building on economies of scale and increasing financialfeasibility.One application example for advanced recycling would be the production of EU certifiedconstruction materials from 100% recycling synthetics, mainly Polyethylene, Poly-Propyleneand Low Density Poly- Ethylene.

Picture 61 to 67: synthetic waste collection and recycling construction material application.

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Picture 68: Waluliso Bridge in Vienna made of 100% recycling synthetic materials

There is a considerable market for sustainable construction material in the OECS states andBarbados and also for export into the CARICOM states.

ENPROCON GmbH March 2012