Waste To Energy Project-1

‘Waste to energy’ project yet to start after a year

By Jamil Khan | KARACHI

A MULTI-purpose “waste to energy” project for producing electricity and manure with biogas produced from the waste of 400,000 cattle heads has yet to start one year after the project was announced, Daily Times learnt Friday.
The deal to set up a 135-million-dollar biogas power generation plant in Landhi was signed between the city government and New Zealand firm Empower Consultants Ltd on July 24, 2006. The city nazim announced that the pilot project would be functional within six months and would produce natural gas (methane), which can be used as CNG or converted into 30 MW of electricity, and around 15 tonnes of enriched organic fertilizer per day. The pilot project was supposed to be set up with a financial grant from the New Zealand Agency for International Development (NZAID).
City Nazim Mustafa Kamal, last year, announced that work on the project would start July 25, 2006 and its first phase pilot project would be made operational in six months. But after one year, the foreign firm, which was given four acres of land by the city government, has not started the project.
Enterprises and Investment Promotion Department District Officer (Investment) S. M. Abbas confirmed that four acres of land was given in Cattle Colony, Landhi but the firm has not started the project yet. “We have sent multiple letters to warn the firm that if they do not start the work the agreement will be cancelled and awarded to another firm,” he said.
He also mentioned that the New Zealand firm’s local partner, National Engineering Corporation, has been given multiple letters asking to initiate the project but a satisfactory reply has yet to arrive. “It is worth mentioning that the award was given to that firm after evaluating 10 local and foreign firms. We have another American firm which is interested in this project,” he said.
Sources in the city government also mentioned that the May 12 incident and the current instability of the political scenario have caused the New Zealand Government to avoid large investments. “The officials of Empower Consultants were supposed to hold a meeting on July 21 but it never took place because of the instability,” sources added.
Feroze Shah, National Engineer Corporation director, hoped that the project would be set up soon. We have applied for carbon credit from the UNFCCC (United Nations Framework Convention on Climate Change) and after approval, the project will be viable for investors,” he said. He said that under the Kyoto Protocol, every country has to obtain carbon credits which set a limit on the amount of carbon dioxide that can be emitted by an industry.
He said the biogas plant will produce one million tonnes of carbon dioxide every year and that will be converted to produce electricity if the project gets approved by the UNFCCC. “The UNFCCC has set a minimum rate of $10 per tonne of carbon dioxide and the investors will have to pay $10 million for the credits,” he said.
“We submitted the project’s design report to the UNFCCC. It was given to a German-based firm, TUV, for validation. The German firm took five to six months and completed the report one week ago. Now it has been submitted to the UNFCCC board for approval, which will take some time,” he said.
He also mentioned that there are five to six major international investors ready to invest in this project which was actually thought of in 1998 (almost 10 years ago). “The renowned firms represent different trading houses from Japan, Germany, Britain and the Asian Development Bank and they are ready to put their capital in this unique project,” he said. The biogas generation plant will be one of the biggest in the world because no other place has such a great number of cattle heads in one place.
It is pertinent to mentioned that the city’s Cattle Colony has been around for the last five decades in Landhi, about 20 kilometres from the city center. There are more than 400,000 cattle heads not only meeting the increasing demand for fresh milk and meat but also producing 7,000 tonnes of solid manure, which is dumped into the sea through the Korangi Creek.
-Published in Daily Times | Aug 20, 2007

~ by jamilkhan on June 16, 2008.

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