Project
Biogas and fertilizer generator at scale using Palm Oil Mill Effluent (POME)

Executive Summary
The Biogas Assimilation Facility (BAF) is a proposed project aimed at reducing greenhouse gas (GHG) emissions, promoting adaptation, and addressing unemployment and income-related issues affecting youth. The cluster assimilation of Palm Oil Mill Effluent (POME) will be implemented to mitigate water and land pollution, thereby reducing methane emissions.
Considering the short-term potency of methane, it is crucial to prioritize cost-effective interventions for reducing methane emissions in sectors with significant emissions. The strategy for achieving the project's objectives involves harvesting methane (CH4) from POME and converting it into biogas. The proposed Biogas Assimilation Facility project aims to contribute to these objectives by reducing greenhouse gas emissions, providing employment opportunities, and improving the well-being of the community.

Problem Analysis:
Unemployment is a significant issue in Ndian Division, and it is attributed to a cadre of dedicated left-wing ideologues playing double standards. The 2022/2023 Ndian Division Budget recognized the need to address this problem and included commitments to reduce massive unemployment and improve infrastructure in the division.
The proposed Pamol's Biogas Facility Assimilation project aligns with the World Bank Group's efforts to reduce methane emissions and tackle unemployment. The expansion and development of the Biogas Facility will have positive developmental impacts on the residents, particularly the youth, and the communities in Ndian Division.
The Biogas Assimilation project will create employment opportunities, thus reducing unemployment in the region and curbing rural-urban migration. Safeguarding project assets will also be a responsibility of the project members.
By addressing unemployment and implementing sound financial management practices, the Biogas Facility project aims to contribute to the overall development and well-being of Ndian Division and its communities.

Project Design Section:
The project aims to achieve the following objectives:
This objective emphasizes the need to identify and address any deviations from the funding agreement's terms and conditions, ensuring transparency and accountability in the project's implementation.
By achieving these objectives, the project aims to make a significant impact on reducing unemployment, improving livelihoods, and promoting sustainable development in Ndian Division.
By emphasizing these qualities, the project aims to attract the attention and interest of the indigenous vulnerable individuals in the division.
By understanding the target segment, implementing appropriate pricing strategies, utilizing effective promotion and distribution channels, and positioning the products to meet the needs of the indigenous population, the project aims to capture a significant market share and successfully serve its intended beneficiaries.

Cost Analysis:
To achieve the project's goals and objectives, it is recommended to prioritize the construction of two Biogas Facility Assimilation sites in Lobe and Bulu. This transparency allows for effective monitoring and evaluation of project finances.
It is important to refer to the specific pages of the Handbook Pome-to-Biogas Project Development for a comprehensive understanding of the financial analysis and recommendations provided in the document.
Here's an overview of these cost components:
The investment costs for tank systems range from USD2.5–3.5 million per MWe.
Applied Technology: Tank reactor
Digester Cost (USD): 3,021,368
Gas Engine: 641,755 (1x1.2 MWe) *
Total Investment Cost: 3,663,123
Investment Cost: 3,052,602 (USD/MWe)

  • including insurance, control system, installation, VAT 10%

Engineering, Procurement, and Construction (EPC) Costs:

  • Design and Engineering: This includes the cost of preliminary engineering studies, detailed design, process engineering, and other technical aspects of the project.
  • Equipment Procurement: The cost of purchasing key equipment for the biogas plant, such as the CSTR system, gas collection and treatment equipment, pre-treatment systems, and instrumentation.
  • Construction: This encompasses the cost of civil works, structural construction, installation of tanks, piping networks, electrical and mechanical systems, and the overall construction of the biogas plant.
  • Labor and Installation: The cost of skilled labor required for the installation and commissioning of equipment, including mechanical, electrical, and instrumentation work.
  • Project Management: The expenses associated with project management, coordination, and supervision throughout the construction phase.
  • Contingency: A contingency budget to account for unforeseen events, changes in project scope, or cost overruns.

Non-EPC Costs:

  • Land and Site Preparation: The cost of acquiring or leasing land for the biogas plant, as well as site preparation activities such as clearing, grading, and infrastructure development.
  • Permitting and Regulatory Compliance: Expenses related to obtaining necessary permits, complying with environmental regulations, and meeting legal requirements.
  • Training and Startup: The cost of providing training for operational staff, as well as initial startup activities and commissioning of the plant.
  • Project Development and Financing: Costs associated with project development activities, feasibility studies, financial modeling, and securing financing.
  • Insurance and Legal: Expenses for insurance coverage, legal services, and contract negotiation.
  • Ongoing Operational and Maintenance Costs: These include expenses for routine operation, maintenance, and monitoring of the biogas plant, as well as costs for feedstock supply and disposal of digestate.

It's important to note that the cost structure can vary significantly depending on project-specific factors, such as project scale, location, technology choices, and the competitive landscape of suppliers and contractors.

CO2 Removal Character:
A strong capacity for CO2 removal in the Continuous Stirred Tank Reactor (CSTR) POME-to-Biogas Project Development.
The Continuous Stirred Tank Reactor (CSTR) POME-to-Biogas Project Development demonstrates eligibility as a carbon project by showcasing additionality against the business-as-usual scenario and a strong capacity for CO2 removal through the sequestration and storage of carbon. Biogas can be utilized as a low-carbon energy source, displacing fossil fuels and reducing CO2 emissions that would have otherwise been generated through conventional energy production methods.

The CSTR POME-to-Biogas Project Development aligns with the eligibility requirements for a carbon project by demonstrating additionality, sequestering and storing carbon, committing to a long-term monitoring period, and showcasing a strong capacity for CO2 removal. These factors contribute to the project's potential to generate significant climate benefits and qualify for carbon funding and support.

Many co-benefits:
Multiple co-benefits for the society and environment, such as biodiversity conservation, community development and empowerment in the Continuous Stirred Tank Reactor (CSTR) POME-to-Biogas Project Development
The Continuous Stirred Tank Reactor (CSTR) POME-to-Biogas Project Development offers multiple co-benefits for both society and the environment. Moreover, by implementing the CSTR POME-to-Biogas system, the project prevents the discharge of untreated POME into water bodies, reducing water pollution and protecting water resources.
These co-benefits demonstrate the broader positive impacts of the CSTR POME-to-Biogas Project Development beyond carbon emission reductions. By promoting biodiversity conservation, community development, renewable energy generation, and waste management, the project contributes to the overall well-being of both the environment and local communities.

Strong focus on multiple SDGs:
Project must cover at least 3 SDGs including Climate action (SDG13) and should be able to manifest the SDG impact due to project activity in the Continuous Stirred Tank Reactor (CSTR) POME-to-Biogas Project Development
The Continuous Stirred Tank Reactor (CSTR) POME-to-Biogas Project Development aligns with multiple Sustainable Development Goals (SDGs), including SDG 13 (Climate Action). By preventing the discharge of untreated POME, the project helps protect soil quality, water resources, and biodiversity in the surrounding areas.
The Continuous Stirred Tank Reactor (CSTR) POME-to-Biogas Project Development demonstrates a strong focus on multiple SDGs, including SDG 13 (Climate Action).

  • Determination of process parameters and monitoring systems to ensure optimal performance
  • Selection and sizing of equipment for mixing, heating, and controlling temperature within the digester
  • Integration of pre-treatment systems for feedstock preparation, if necessary

Instrumentation Engineering:

  • Selection and installation of instruments to measure and monitor process variables (temperature, pressure, flow rate, etc.)
  • Integration of data acquisition systems for real-time monitoring and control
  • Calibration and maintenance of instruments for accurate measurement and data recording
    Effective coordination among these engineering disciplines, along with project management expertise, ensures that the biogas power plant is constructed and operated efficiently, meeting quality standards, cost targets, and project timelines.

Time schedule for facility construction:
The construction timeline for an industrial-scale biogas plant, specifically for a Continuous Stirred Tank Reactor (CSTR) POME-to-Biogas project, can vary depending on factors such as project size, complexity, permitting requirements, and the availability of resources.