Transcript Carbon Financing and Mott MacDonald

PAYBACK: Ensuring delivery of CERs
4th February, British Embassy, Tokyo
Dr Euan Low
Presentation outline
1. Mott MacDonald and services in carbon
2. Examples
3. Suggested cooperation to ensure payback
2
Mott MacDonald is an Independent Management,
Engineering & Development Consultancy
>12,000 staff working in > 130 countries, turnover >US$1 billion
Iceland
Stavanger
Vancouver
Seattle
Portland
Calgary
Pleasanton
Sacremento
San Diego
Mississauga Montreal
Albany
Buffalo
Boston
Cleveland
New York
Akron
Provo
Millburn
Pittsburgh
Freehold
Monroe Cape May
Houston
Crestview
Panama City
Mobile
Pensacola
Nassau
Port of Spain
Caracas
São Paulo
Santiago
St Petersburg
Moscow
Dublin
Warsaw
Utrecht
Cork
Surgut
Croydon Prague
Kiev
Kyzlorda
Budapest
Shymkent
Belgrade
Bucharest
Alma Ata
Sofia
Barcelona
Ankara Tashkent
Beijing
Istanbul
Lisbon
Kuwait Doha Lahore New Delhi
Shanghai
Tripoli Cairo
Abu Dhabi
Shenzhen Taipei
Karachi
Bahrain Muscat
Dhaka
Dubai
Hong
Kong
Mumbai
Jeddah
Bangkok
Manila
Mysore
Lagos
Phnom Penh
Kuala
Addis
Ababa
Lumpur
Port Harcourt
Singapore
Kampala
Jakarta
Darwin
Johannesburg
Maseru
Perth
Sakhalin
Tokyo
Brisbane
Adelaide
Melbourne
Auckland
Sydney
Canberra
Wellington
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Mott MacDonald Services in Structured Finance
Government
Customers
Policy development; Support of
Parliamentary Acts; Establishment of Service
Level Agreements, Privatization
Affordability
Studies
Carbon
Offtakers
Local Department/
Public Corp./ Private Co.
PDD, ERPA,
Compliance
Lenders/
Investors
Market
Conditions;
Lender’s
Engineer;
Technical Due
Diligence; Social
& Env. Due
Diligence; Asset
Valuation
Consortia Design; Detailed Specification;
Owner’s Engineer, Risk Management; Social &
Environmental Impact Assessment; Contract
Preparation; Contract Audit, PDD
re
Special Purpose Co.
Designer
Obtaining
Permissions &
Consents,
Survey,Detailed
Design
EPC Contractor
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
Operator
EPCM, Cost Control,
Design &
Construction
Management
Asset Management Planning, Investment
Planning, Cost Optimization, Monitoring,
Auditing, Operational Maintenance
Planning & Procurement
Manufacturer
Safety cases; Reliability,
Availability, Maintenance &
Safety Review
Project Development Services
ENGINEERING PROJECT
DEVELOPMENT:
• Feasibility Studies
• Technical
design/analysis
for owners
• Lender’s Engineer
• Owner’s Engineer
• Market studies
• Investigation of
energy efficiency &
emission reductions
• Plant Engineering
and Specification
• Risk analysis,
due diligence for
lenders
• Contract award (Bid
Evaluation)
• Conceptual Design
Project
Development
Project
Development
Conceptual &
Feasibility Stage
CARBON PROJECT
DEVELOPMENT:
• Development of New
Methodology
• Carbon advisory
work
• Development of PDD
• Analysis of the host country
institutional CDM organisation
• Capacity building of national
CDM authority (DNA) (Training &
workshops)
• Project registration
probability
• Search for Investors
• Identification of country-specific
project potentials
• Procurement of buyers
sellers
• Project screening and
preliminary selection
• ERPA signature
• Formulation of PIN
• Construction
Monitoring
Construction
• Construction monitoring
for carbon funds
• Operation
Monitoring
Operation
• Support with
verification &
certification
Technologies
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.
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CH4 (GWP = 21)
Emission Sources
MM Specific Skills
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)
Emission Sources
MM Specific Skills
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)
Emission Sources
MM Specific Skills
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)
Emission Sources
MM Specific Skills
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.
Semi-conductor manufacture
Knowledge of recovery followed by destruction
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SF6 (GWP = 23,900)
Emission Sources
MM Specific Skills
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
Semi-conductor manufacture
Knowledge of recovery followed by destruction
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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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Presentation outline
1. Mott MacDonald and services in carbon
2. Examples
3. Suggested cooperation to ensure delivery
12
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 subprojects: 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 offtaker
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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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Presentation outline
1. Mott MacDonald and services in carbon
2. Examples
3. Suggested cooperation to ensure delivery
20
Suggested areas of cooperation
 Carbon Advisory Services
 Technical & Commercial Advisory Business
 Owner’s Engineering / Project Management Consultancy
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Thank you
Consultancy services with a technical edge
[email protected]
[email protected]