Project Description

Project owner Engro Foods Supply Chain (pvt.) Ltd. intends to utilize renewable biomass residues in a biomass boiler for captive energy use in its greenfield Integrated Rice Processing Complex. The biomass-based cogeneration plant will generate thermal energy and electrical energy in one process.

As the proposed project is a greenfield project, no pre-project-activity can be identified. Both scenarios, baseline and project scenario are predictions of the future situation of thermal energy generation for the rice processing plant. The project scenario is steam production with a 30 tonnes per hour (TPH) boiler running on biomass, whereas the baseline scenario is steam produc-tion with a 30 TPH boiler running on natural gas. The estimated annual GHG emission reduction by replacing fossil fuel is approximately 49,000 t CO2e.

All project equipment is locally sourced, thereby implying no technology transfer. The technology being applied is environmentally safe and sound, as the designed efficiency of the boiler is 89% and as an ash handling system (wet scrubber, several ash collection points) will moreover be ins-talled in order to minimize ash emissions into the atmosphere.

The total installed thermal energy generation capacity is projected to be less than 45 MW thermal, therefore the project activity is small scale.

GHG emissions originating from Engro's industry plants shall be significantly reduced.

Key Facts

Background

Engro Corporation Limited is one of Pakistan’s largest conglomerates with businesses ranging from fertilizers to power generation. Currently Engro Corporation’s portfolio consists of seven businesses which include chemical fertilizers, PVC resin, a bulk liquid chemical terminal, industrial automation, foods, power generation and commodity trade. Engro Foods Limited has specialized in dairy products, such as ice cream, and is now starting sales from its own rice processing plant. In addition to growing its business in a profitable, ethical and sustainable way, Engro is committed to invest in local com-munities, as well as to mitigate its environmental footprint and to help preventing further global warming.

CDM Project in Punjab (Pakistan) Biomass-Based Energy Cogeneration at Engro Foods Supply Chain

Project Type Renewable Energy (Biomass)Project Owner Engro Foods Supply Chain (pvt.) Ltd.Project Developer UPM Umwelt-Projekt-Management GmbHLocation Pakistan, Punjab Province, Sheikhupura, MuridkeMethodology Thermal energy production with or without electricity - AMS-I.C, Ver. 18Carbon Credit Standard CDM Certified Emission Reductions (CDM CERs), CDM Ref. 8482Validator (DOE) Bureau Veritas Certification Holding SASDevelopment Status registeredRegistration Date 05/12/2012Date of First Credit Issuance end of 2014Annual Credit Volume approximately 49,000 CERs (PDD)Crediting Period 10 years

Sustainability Benefits

The project participants are convinced that the Engro biomass-based energy cogeneration project activity will have substantial positive impact in the region in terms of:

Project Location

The project activity is located in the city of Muridke, north of Lahore in Pakistan’s Punjab province, on the premises of Engro Foods Supply Chain (pvt.) Ltd.

• Economic Benefits: The project owner will purchase biomass from local farmers and therefore contribute to the economic development of the region by establishing a local biomass market and thus potentially increasing their income.

• Social Benefits: As the operation of a biomass-fired boiler implies an increased workload compared to a natural gas boiler, the proposed project will result in an increased demand for locally hired labour. This, in turn, will lead to a higher number of jobs created by the project compared to its baseline scenario and therefore promote the social development of the region by helping to reduce existing income disparities.

• Environmental Benefits: The project promotes the utilization of a renewable and sustainable form of energy. Compared to the common practice of fossil fuels usage for thermal energy generation in Pakistan, the environmental situation of the region is improved since less GHG will be emitted into the atmosphere.

• Technological Benefits: Thermal energy production with biomass is not common in Pakistan, as fossil fuel still scores as the most used source of energy for thermal energy production. By promoting the distribution of a sustainable and clean form of energy, the project establishes new energy know-how, thus positively affecting the sustainable technological development of the area.

Location of CDM Project „Engro Biomass-based Energy Cogeneration“

Contact

Disclaimer: The information provided in this publication is for reference only. UPM GmbH and any person acting on its behalf refrain from any responsibility originating from its usage (whether or not authorized) particularly from any claim on its incompleteness and incorrectness.

Sindh Province

PunjabProvince

Northern AreasCentrally

Administered Area

N.W.F.P.Province

F.C.T.CapitalTerritory

F.A.T.A.Territory

BaluchistanProvince

Azad KashmirCentrally

Administered Area

Pakistan

Islamabad

Karachi

Lahore

Local farmers can generate extra income by selling biomass residues to Engro.

For further details please contact:

UPM GmbHSales DepartmentLamontstr. 1181679 MunichGermany

Tel: +(49) 89-41 41 96-91Fax: +(49) 89-41 41 96-93E-Mail: sales@upm-cdm.euWeb: http://www.upm-cdm.eu