Ecosecurities

With 2100 emission reduction projects in the pipeline and predicted volumes of 2.2 billion carbon credits until 2012, the Clean Development Mechanism (CDM) has the potential to stop over two billion tonnes of carbon dioxide being released into our atmosphere over the next five years. The mechanism is supporting worldwide efforts to mitigate greenhouse gas (GHG) emissions, but its contribution to the sustainable development of host countries should not be overlooked. Irani, the first pulp and paper CDM project in Brazil to receive carbon credits, illustrates the extent to which CDM projects can aid not just in the fight against climate change, but in the sustainable development of local communities.

What is Irani?

Located in Vargem Bonita, Brazil, the Irani project demonstrates how one paper manufacturer is finding economic value in what was once considered waste. The facility uses by-product biomass from their paper production process to generate sustainable energy for their facility. Irani thus provides a model for biomass projects that reduce both waste and greenhouse gas emissions (GHGs), promoting sustainable development through the CDM.

Why biomass?

Brazil has strong potential to encourage biomass energy, given that biomass producing sectors such as agriculture and timber constitute a significant portion of the economy. Yet while there is a great deal of potential in the country, less than 4% of total energy production in 2003 was derived from biomass. See: www.iaea.org.

One man’s pulp …

From 2000-2003, Celulose Irani, a Brazilian pulp and paper manufacturing company, grew significantly, increasing production capacity 77% from 83,000 to 147,000 tons of paper/yr. They also anticipated future growth requiring an increase in energy use from 125,353 MWh/yr from 2004-2007 to almost 145,000 MWh/yr from 2008-2024. Irani has traditionally relied on small-scale on-site biomass and hydroelectric facilities for much of their power. However, they have also historically drawn a substantial amount (44%) of energy from the central grid. While Brazil generally relies on fossil-fuelled energy for only about 9% of total production, the majority of this is generated in the South-South East portion of the national grid, where the Celulose Irani facility is located. Despite their growth, Irani had no plans to increase its installed power generation capacity. This would have led to increased grid reliance, and caused significant increases in GHG emissions. The construction of additional biomass facilities was vital to ensuring GHG reductions and sustainable energy use for Irani’s future.

… Another man’s power

EcoSecurities partnered with Celulose Irani to generate CERs from the construction and operation of a new 9.43MW biomass generation plant. The plant’s installation led to a reduction in grid energy use of 33,271 MWh/yr from 2004-2007, and is anticipated to generate further reductions of 52,035 MWh/year after 2008. Over the life of the project (2004-2025), the plant is expected to reduce emissions by 626,008 CO2e.

The plant uses new technology, which improves production efficiency and allows it to utilise a wider range of biomass. The plant has ensured 120,000 tons of biomass which would have been landfilled has been redirected for use. Since the decomposition of biomass in landfills leads to the release of methane which has 21 times the global warming potential of CO2, the landfill avoidance component is expected to prevent the emission of 3,076,038 tons of CO2e over the project’s life. Total reductions are estimated at 3,702,046 tons CO2e. Irani’s first certified emissions reduction (CER) credits were issued in 2006. As of March 2007, 45,984 CERs have been issued.

In addition to supplying the needed energy for production expansion, displacing fossilfuelled grid electricity, and reducing GHG emissions, the project also promotes environmentally sound technology use and information dissemination, and will promote similar activities in the future. The technology used in the generator is also 100% Brazilian, thereby supporting local industry. In addition, the project benefits local people by increasing job opportunities in the area and reducing local smoke pollution. After the 2001 Brazilian energy crisis, the government set a national target for diversification of energy sources. The Irani project helps to achieve this and its commitment to environmental production methods, maximises the utility of their natural resource inputs, and avoids costs from waste disposal.

Learning from Irani

The Celulose Irani Project provides a strong example of how producers of biomass can make use of a “waste stream” for economic value. This creates solutions for waste disposal, maximises resource use, and minimises the company’s dependence on fossilfuelled grid energy. It also generates meaningful GHG emissions reductions, reflected in the issuance of CERs. By taking a more “cradle-to-cradle” approach to production, Irani exemplifies the opportunities that exist through the Clean Development Mechanism (CDM) to profit through sustainable development.

W: www.ecosecurities.com