payback: ensuring delivery of cers 4th february, british embassy, tokyo dr euan low

PAYBACK: Ensuring delivery of CERs

4th February, British Embassy, Tokyo

Dr Euan Low

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Presentation outline

1. Mott MacDonald and services in carbon

2. Examples

3. Suggested cooperation to ensure payback

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CorkCork

LisbonLisbon

CroydonCroydon

TripoliTripoli

KampalaKampala

Alma AtaAlma Ata

MaseruMaseru

BangkokBangkok

SingaporeSingapore

HongHongKongKong

JakartaJakarta

MelbourneMelbourne

AucklandAuckland

ShanghaiShanghaiLahoreLahore

DhakaDhakaKarachiKarachi

DohaDohaAbu DhabiAbu Dhabi

MuscatMuscat

BostonBoston

TaipeiTaipei

BucharestBucharestSofiaSofia

PraguePrague

BuffaloBuffalo

DubaiDubai

PleasantonPleasantonPittsburghPittsburgh

CairoCairo

JeddahJeddah

KualaKualaLumpurLumpur

BrisbaneBrisbane

SydneySydney

New YorkNew York

MississaugaMississauga

PerthPerthAdelaideAdelaide

SeattleSeattleVancouverVancouver

San DiegoSan Diego

MillburnMillburn

CalgaryCalgary

MontrealMontreal

WellingtonWellington

MumbaiMumbai

New DelhiNew Delhi

St PetersburgSt Petersburg

ManilaManila

DublinDublin

BeijingBeijing

BahrainBahrainNassauNassau

Phnom PenhPhnom PenhAddis AbabaAddis Ababa

BudapestBudapest

LagosLagos

WarsawWarsawMoscowMoscow

BarcelonaBarcelona

Port of SpainPort of Spain

São PauloSão Paulo

AlbanyAlbanyClevelandCleveland

AkronAkron

HoustonHouston Cape MayCape MayCrestviewCrestview

FreeholdFreehold

MobileMobile

MonroeMonroe

Panama CityPanama CityPensacolaPensacola

PortlandPortland

ProvoProvoSacrementoSacremento

CanberraCanberra

DarwinDarwin

ShenzhenShenzhen

MysoreMysore

ShymkentShymkentKyzlordaKyzlorda

Port HarcourtPort Harcourt

StavangerStavanger

SakhalinSakhalinSurgutSurgut

JohannesburgJohannesburg

AnkaraAnkaraIstanbulIstanbulTashkentTashkent

CaracasCaracas

IcelandIceland

KuwaitKuwait

UtrechtUtrecht

BelgradeBelgrade

KievKiev

SantiagoSantiago

TokyoTokyo

Mott MacDonald is an Independent Management, Engineering & Development Consultancy

>12,000 staff working in > 130 countries, turnover >US$1 billion

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Government

Local Department/ Public Corp./ Private Co.

EPC Contractor Designer Operator

Lenders/ Investors

Manufacturer

Obtaining Permissions & Consents, Survey,Detailed Design

Policy development; Support of Parliamentary Acts; Establishment of Service Level Agreements, Privatization

Market Study & Analysis, Master Plans; Procurement Strategies; Demand Forecasting; Independent Review; Contract Preparation; Independent Checking Engineer; Independent Technical Auditor; Independent Validation & Verification; Cost Control; Off-take Agreements

Market Conditions; Lender’s Engineer; Technical Due Diligence; Social & Env. Due Diligence; Asset Valuation

Safety cases; Reliability, Availability, Maintenance & Safety Review

Consortia Design; Detailed Specification; Owner’s Engineer, Risk Management; Social & Environmental Impact Assessment; Contract Preparation; Contract Audit, PDD

Asset Management Planning, Investment Planning, Cost Optimization, Monitoring, Auditing, Operational Maintenance Planning & Procurement

Mott MacDonald Services in Structured Finance

EPCM, Cost Control, Design & Construction Management

Special Purpose Co.

Customers

Affordability Studies

Carbon Offtakers

PDD, ERPA, Compliance

• Market studies

• Investigation of energy efficiency & emission reductions

• Conceptual Design

• Risk analysis, due diligence for lenders

• Plant Engineering and Specification

• Contract award (Bid Evaluation)

• Construction Monitoring

• Operation Monitoring

ENGINEERING PROJECT DEVELOPMENT:

• Feasibility Studies

• Lender’s Engineer

• Owner’s Engineer

Conceptual & Feasibility Stage

Project Development Construction Operation

Project Development

CARBON PROJECT DEVELOPMENT:

• Carbon advisory work

• Technical design/analysis for owners

Project Development Services

• Analysis of the host country institutional CDM organisation

• Capacity building of national CDM authority (DNA) (Training & workshops)

• Identification of country-specific project potentials

• Project screening and preliminary selection

• Formulation of PIN

• Project registration probability

• Search for Investors

• Procurement of buyers sellers

• ERPA signature

• Development of New Methodology

• Development of PDD

• Support with verification & certification

• Construction monitoring for carbon funds

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CO2 (GWP = 1)

Emission Sources MM Specific Skills

Power generation Extensive experience in all aspects of power generation and low carbon technologies including feasibility studies, cost analysis, technical and commercial due diligences, EPC tendering, operation and construction monitoring for all conventional technologies, CHP and renewables.

Transport Extensive experience in transport studies and all aspects of transport engineering including light rail, rail, road transport and airports. Studies include traffic management, emission reduction programmes and technology appraisal.

Energy use in buildings Extensive experience in all aspects of energy use in buildings. This includes the following key areas: - Passive Design (advice/studies on microclimate, building orientation, ventilation, etc.) - Facade Design (Sustainable facade detailed design, thermal, daylighting and comfort studies, insulation and condensation analysis), - Systems Design (Mixed mode systems, displacement ventilation, chilled beams/ceilings, high efficiency lighting and control system, building energy management systems), - Energy Supply (use of micro-renewables and microCHP) Reuse and Recycling.

Energy use in industrial processes

Analysis of energy efficiency and fuel switching. This includes carrying out energy audits, energy modelling, appraisal of technology and fuel options and process modifications such as low efficiency boilers, installation of heat exchangers, creative use of economisers and cogeneration equipment, and adoption of good energy management.

Energy use in mining Excellent contacts and knowledge of the mining sector to undertake energy studies as above specifically for the mining sector.

Technologies

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CH4 (GWP = 21)


Incomplete combustion of fossil fuels

In depth knowledge and extensive track record in combustion systems for power generation, analysis

of technology solutions/options, efficiency studies, fuel switching (biomass, gas, biofuels), track

record in analysis of biofuel production plants (bioethanol and biodiesel)

Decomposition of organic matter and animal waste

Extensive track record in landfill gas and landfill gas to energy feasibility studies, construction and

operation monitoring, knowledge of landfill gas separation technologies (methane separated and gas

returned to the grid), extensive experience in waste to energy projects using conventional combustion,

advanced combustion technologies (pyrolosys and gasification) and anaerobic digestion, extensive

experience in waste to energy projects with different fuels; municipal solid waste, biomass waste and animal waste.

Transport and storage of oil and gas

In depth knowledge and extensive track record in the oil and gas industry and oil and gas transportation systems.

transportation systems

Analysis of technology options such as pipeline leak reductions, compressor station

efficiency improvements, process efficiency studies

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N2O (GWP = 310)


Fertiliser manufacture and use

Experience in analysis of production process to improve efficiency. Knowledge of fertilisers production processes based on urea/ammonium fertilisers.

Fossil fuel combustion In depth knowledge and extensive track record in combustion systems for power generation such as

pulverised fuel boilers and fluidised bed boilers, analysis of abatement technologies/solutions,

efficiency studies, fuel switching (biomass, gas, biofuels)

Adipic (nylon) manufacture Experience in analysis of chemical processes to improve efficiency. Knowledge of nylon production processes and releases of pollutants to atmosphere.

Nitric acid production Experience in analysis of chemical processes to improve efficiency. Knowledge of the production and unit operation as well as understanding of the key different nitrogen based oxide gases.

Water treatment In depth knowledge and extensive track record in water treatment processes. Familiar wtih all types of water treatment processes including ones with high nitride composition.

Waste combustion Extensive experience in waste to energy projects using conventional combustion technology,

advanced combustion technologies (pyrolosys and gasification) and anaerobic digestion

Extensive experience in waste to energy projects with different fuels; municipal solid waste, biomass waste and animal waste

Biomass burning Extensive experience in biomass combustion for power generation including different combustion technologies and the mechanism of N2O production as opposed to Nox.

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PFC's (GWP = 9,200-6,500)


Aluminum smeltering Experience in analysis of production processes to improve efficiency as well as anode production.

Semi-conductor manufacture Knowledge of recovery followed by destruction

HFC's (GWP = 11,700-140)


Manufacture and use of refrigerants

Experience in analysis of production processes to improve efficiency, knowledge of capture and destruction processes using thermal oxidation technologies. Experience in using mass balance approach to derive baseline data, developing gas storage concepts and minimum functional specifications for thermal oxidation plant, EPC tendering and construction monitoring.

Solvent Analysis of production processes to improve efficiency, knowledge of capture and destruction processes

Foam production Experience in foam production and usage (fire fighting).

Aerosols Experience in the production of aerosols in paint and

other processes. Investigation of contamination incidents.


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SF6 (GWP = 23,900)


Electricity transmission and distribution

Extensive experience and track record in the design and analysis of power systems including SF6 reduction programmes. This involves identifying operation and maintenance practices and options for equipment replacement.

Magnesium smeltering Analysis of process and use of alternatives


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What makes Mott MacDonald different?

We provide you with technical leadership and enhance your capabilities in all relevant technologies and sectors

We are experienced in ensuring delivery in both the carbon market and infrastructure project development

We provide you with global coverage support and access to an extensive client network

This combination provides direct value to your business and makes MM different from our competition and so a preferred choice for many clients

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2. Examples

3. Suggested cooperation to ensure delivery

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HFC23 Incineration, China

Client: Carbon Investor Phase 1 Scope: Risk analysis and due diligence:

– Technical review of existent chemical plant (analysis of process flow diagrams, maintenance, capital investment programmes, etc)

– Functional specification for incinerator (capacity, environmental regulations, safety issues, site issues (space), storage)

– Analysis of CDM methodology – Engagement of validator

Problems:– Lack of information on markets and contractual issues – recommended

a market study– Lack of monitoring data – calculation of HCF23 from first principles– Cultural issues – Chinese team

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HFC23 Incineration, China

Phase 2: Identification of technology supplier and EPC contractor– Development of all tender documentation– Identification of long list of technology suppliers and EPC contractors– Tender evaluation– Tender award– EPC contract negotiations

Problems:– Division of risks between carbon investor, host and EPC contractor –

close collaboration with all parties

Phase 3: Construction monitoring – on-going– Local support team

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Biomass plant, Eastern Europe

Biomass cogeneration project fired on forestry waste, steam used for district heating – 200ktCO2/yr

Client: Carbon Investor

Scope: Risk analysis and due diligence:– Technical review of existent plant - complex project with three sub-projects:

power expansion, district heating and fuel conversion) analysis of process flow diagrams, maintenance, capital investment programmes, etc)

– Contractual analysis: EPC contract, O&M contract, fuel contracts– Project participant capabilities– Analysis of financial model– Environmental review

Problems:– Lack of capability of EPC contractor: suggested possible mitigation strategies:

contingency, partnership, recruitment.

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Waste water treatment – South-East Asia Waste water treatment through a biodigestor to generate electricity – a number

of projects across the region varying in size (avg. 100kt/COP2) Client: Carbon Investors, and project owner (own origination) Scope: Risk analysis and due diligence:

– Technical review of host plant (tapioca factory)– Technical review of proposed biodigestor– Electricity grid connections– Contractual analysis: EPC contract, O&M contract, fuel contracts– Project participant capabilities– Analysis of financial model– Environmental review– CER estimation

CDM registration Problems:

– Control over host process and aligning incentives between host and carbon off-taker

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Examples of CDM/JI

Bio-diesel production facility in Brazil – Carbon investor

Portfolio of heat recovery plants from coke and steel manufacturing – China – Carbon investor

Portfolio of heat recovery projects from cement plants in China: Advisor to carbon investors

CDM registration of 4 wind projects in Cyprus - Lenders

Windfarms in China: DD for investors and CER buyers

Rice Husk Power Plant, Thailand: Advisor to investor on DD and CDM approval

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Examples of CDM/JI

Cassava Waste Anaerobic Biodigester, Thailand: Technical, commercial and CDM feasibility study

Bagasse-fired CHP Plant, Belize: Technical, commercial and CDM feasibility study

Bagasse and wood-chip and bamboo-fired CHP Plant, Ecuador: Technical, commercial and CDM feasibility study

Design of a methodology for gas company in Ukrainian, collaborating with QT

Several Waste to Energy projects in India as CDM advisors

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Examples CDM/JI

Pipeline of own originated project with potential for 1m t/CO2 per year spread across a number of countries and covering different sectors, including the development of new methodologies.

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2. Examples

3. Suggested cooperation to ensure delivery

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Suggested areas of cooperation

Carbon Advisory Services

Technical & Commercial Advisory Business

Owner’s Engineering / Project Management Consultancy

Thank you

Consultancy services with a technical edge

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