8/7/2019 BiogasN8

1/2

OPET OLA - Caribbean

OLA Caribbean

Cuba - Project n 8

Biogas Capture and Renewable Energy Productionat the New Dump in Guanabacoa

Source: DPSC

PROJECT DESCRIPTION AND CURRENTSITUATION

The dump currently in exploitation at Guanabacoa, ineastern Havana, is depleting and in poorest sanitaryconditions. Therefore, we are engaged in theconstruction of a new dump, in order to replace theolder one.The new household solid refuse dump will have a sanitaryfilling system and comprises an approximately 18 ha areaadjacent to the former Santa Clara (Roberto Flores)quarry that is located on a rock bed. The field is part of adissected plain with dark carbonated soils that will benecessarily disturbed. Such an area allows a 16-yearuseful exploitation time, the refuse to be dumped is 316.6metric tonnes/day the estimate having been done fortraditional sanitary filling techniques. The application ofthe new compacting and recycling techniques may

prolong dump use over time.Dump implementation will build on modern techniquesthat can be adapted to our actual conditions andpossibilities. The dump must rank in the ControlledDump category.As part of all this, the construction of a treatment plantfor the gas (Biogas) emanating from dumps has beenplanned.Biogas or dump gas forms in a natural way during thedecomposition process of the organic refuse contained ingarbage. Its methane content, a highly energetichydrocarbon, makes biogas be appraised as thermal or

electric energy.Urban solid refuse dumps bear important social, visualand environmental impacts, such as the generation ofbiogas arising from organic matter decomposition inanaerobic conditions. Treatment intended to neutraliseits harmful effect not only provides a solution toenvironment protection but may allow to produce fuel aswell.The new dump to the East will contain approximately 300daily tonnes from Eastern Havana, Regla, Guanabacoa,San Miguel Municipalities. That makes us anticipate thatthe dump energetic recovery will be economically viable.Experiences and studies evidence that methane

proportion will be over 50%, the other biogascomponents being Carbon Dioxide, Nitrogen, Oxygenand other components to a lesser extent.

EXECUTING UNIT AND INSTITUTIONALFRAMEWORK

The executing unit of this project will be the ProvincialHygiene Financed Unit, with the participation of theMinistry of the Basic Industry (MINBAS).Since these projects are implemented through financialinvestments closely involved in environmental activitiesand technology transfer, project development work willbe undertaken with direct participation of the Ministryfor Economic Collaboration and Foreign Investment(MINVEC), the Ministry of Science, Technology andEnvironment (CITMA), and those institutions directlyinvolved in the projects.MINVEC is participating as the Public Authority in chargeof Co-ordinating International Co-operation and itsImplementation (APCCI), while CITMA is acting as the

steering organ for those activities concerning Science,Technology and Environment.

PRIORITY

This project is highly prioritised. This is evidenced by theneed to collect biogas from the New Dump atGuanabacoa, thus preventing highly polluting gases frompassing to the atmosphere and contributing to thegreenhouse effect worldwide. The Provincial Direction ofCommunity Services is the organ in charge of its control,treatment and coincides in the priority this type of

project must be accorded.Likewise, since the Cuban Government fosters anyinitiative aiming at better use of renewable resources, theprogramme is supported by the utmost nationalauthorities.Finally, from the environmental viewpoint, theseinvestments fall under CITMAs priorities, as theygenerate important GHG emission diminution and fossilfuel use savings.

CHARACTERISTICS OF INVESTMENTThe proposed investment aims at extracting andtransporting biogas to a treatment plant. This is usuallydone through a network of pits or trenches dependingon dump morphology that cover the overall dump

8/7/2019 BiogasN8

2/2

OPET OLA - Caribbean

surface and capture the gas in order to convey it later toa main collector through a piping network equipped withregulating valves. From the collector, the gas passes to itsfinal treatment so as to be used as an electricity and heatenergy source. It is anticipated that 9,000 MWh/year willbe exported to the Cuban Electricity Enterprise, with a$60/MWh electricity tariff.There is an additional cost-effectiveness component from

CEC commercialisation.As an additional economic benefit, this project willgenerate foreign currency savings at the national level byreducing imports of fossil fuel currently used forelectricity generation.FINANCING SOURCES AND POTENTIALPARTNERS

Funding needed to complete both the initial investmentsfrom the initial donation by Bread to the World andthe later acquisition of conversion kits and operationitems came from the Group ITs profits and other creditsgranted by MITRANS (revised).Most items and technological equipment have beenacquired through MITRANSs General ImportingEnterprise of Transport (EIGT). During the developmentof TRANS ECO, many international and national firmsand enterprises have shown their interest in negotiating.In the national setting, the transport enterprise of theMinistry of the Siderurgical and Mechanical Industry(SIME) is interested in taking on part of the vehicle-conversion and resale services

SIME is the organ responsible for acquiring anddeveloping equipment for Cuban enterprises; many piecesof equipment developed by SIME are integrated withcomponents produced abroad, so its potential relationwith TRANS ECO is interesting.

ECONOMIC PARAMETERS & FUNDINGRESOURCES

This project is undertaken due to the need of controllingthose gases that are harmful to peoples life, their

financing being dependent on entities that wish tocooperate with this type of investment in order toimprove the environment.This project type traditionally tends to be funded by i)international financing from international organisationsand governmental credits, ii) international financing fromdonations whose goal would be to improve thepopulations living conditions and environmentprotection.National currency funding can be provided by theProvincial Direction of Community Services.The table below summarises the main economicparameters of the project:

Executing Entity Provincial Hygiene Financed Unit

Parameters of Investment

Total Investment US$ 914,527.0

Work Schedule

- Months -18 % 100

Useful Working Life years 12

Incomes Electricity Generation GWh/year 9,4

Electricity Tariff US$/MWh 60

Incomes from Electricity Sales US$/year 564, 000

O&M Cost

Estimated Annual Cost US$/year 272, 000

Profit1/year without CEC US$/year 540, 000

GHG Parameters

Estimated Equivalent CO2

Reduction

CO2

tonnes/year7,600

Estimated Equivalent CO2

Reduction on the basis of

CH4 non-emissions

CO2

tonnes/year176, 000

CEC Reference ValueUS$/ CO2

tonne5.0

CEC Financial Contribution pa. US$/year 918, 000

Profit1/year with CEC US$/year 1, 458, 000

Total Itemised Investment

Materials Units Amount US$

Geotextile Layer m2 130, 000 390,000

Hydraulic Pipe Line PVC 100 m 845 2,450

Sanitary Pipe Line PVC 200 m 940 3,666

Sanitary Pipe Line PVC 150 m 3,495 11,359

Sanitary Pipe Line PVC 100 m 480 1,440

Hofo 150 m 403 1,612

Hofo 100 m 2,705 1,500

Submersible Pumps U 6 1,500

Regulating and Metering Plant U 1 1, 5000.00

Pumping Plant U 1 30, 000.00

Surplus Gas Incinerating Torch U 1 6, 000.00

Power Generating Set U 3 300,000.00

Transformers U 3 150, 000.00

TOTAL 914,527.00

Cost-Efficiency Indicators

Refunding Time without CEC years 1.69

Refunding Time with CEC years 59

IRR without CEC % 1

IRR with CEC % 100

CONTACTExecutive Contact : Odalys Garca FonsecaProvincial Administration Council: Provincial Direction ofCommunity Services

Address : Calle 30 No 2110 entre 21 y 23. Playa CiudadHabanaTel : (537) 202 34 82 y/o 202 64 28E-mail : Odalys@sc.ch.gov.cu