UTILIZATION OF BIOMASS CHARCOAL BRIQUETTE AS ALTERNATIVE FUEL FOR TOBACCO FLUE-CURING

1. UTILIZATION OF BIOMASS CHARCOAL BRIQUETTE AS ALTERNATIVE FUEL FOR TOBACCO FLUE-CURING IN THE TOBACCO GROWING AREAS IN ILOCOS REGION, PHILIPPINES by SANTIAGO R. BACONGUIS Chief Science Research Specialist Ecosystems Research & Development Bureau College, Laguna

2. OBJECTIVE OF THE PROJECT • To utilize abandoned biomass as charcoal briquettes to conserve the Philippine tropical forests. • To replace fuelwood as source of fuel in curing tobacco in the Ilocos Region. • To avoid methane generation from decompo-sing cellulosic abandoned biomass. • To generate livelihood to alleviate poverty in urban and the countrysides at the same time mitigate CO2 emissions.

3. PROJECT DESCRIPTION AND PROPOSED ACTIVITIES • Tobacco curing is a common practice in Region I (Ilocos Region). Traditionally in the Philippines, there are two methods of curing tobacco leaf: conventional flue-curing and bulk curing. At present, the conventional flue-curing is generally used. • In flue-curing, wood is used by tobacco farmers in the country. Due to rampant use of wood in the tobacco industry, the forest in the region has been depleted. • For every hectare of tobacco will require 25-28 cu.m of fuelwood. For the 30,000 ha of tobacco farms in the region, this will require 300,000 MT of fuelwood per cropping season.

4. PROJECT DESCRIPTION AND PROPOSED ACTIVITIES • In the region, and elsewhere in the country,abandoned biomass is abundant. When left to decompose, aside from CO2, it will evolve methane – a more serious GHG. The production of charcoal briquettes from abandoned biomass will eliminate methane and produce a high heating and easy to handle charcoal briquettes. • The project calls for the replacement of fuelwood to charcoal briquettes in tobacco flue-curing. This will conserve the woodlands and forests to absorb CO2 at the same time utilize abandoned biomass which has the potential of producing methane in the decomposition process.

5. PROJECT DESCRIPTION AND PROPOSED ACTIVITIES • The charcoal briquetting activity will also generate livelihood and alleviate poverty to thousands of Filipinos in the urban and rural areas utilizing abandoned biomass. • For every ton of abandoned biomass charcoal briquette, about 88 trees with a diameter of about 10 cm is saved from fuelwood cutting and charcoal making. The conserved trees will in turn serve as carbon sink. • If water hyacinth briquettes is used, the farmer will have a valuable ash residue – fertilizer.

6. TECHNOLOGY TO BE EMPLOYED Charcoal briquettes from abandoned/waste cellulosic biomass will be used to replace the fuelwood that will be used in flue-curing of tobacco in the Ilocos Region. Converting wastes to briquettes will not only make waste materials into good use but will also control methane generation from decomposing biomass by flaring it during the carbonization process.

7. PROJECT DEVELOPER Name of the Project developer:Ecosystems Research and Development Bureau (ERDB) Organizational category:Government Research & Development Agency under the Department of Environment and Natural Resources (DENR) Other function(s) of the project developer in the project: Intermediary and/or Technical advisor Both functions Summary of the relevant experience of the project developer :The project developer has been promoting utilization of abandoned biomass & water hyacinth in the form of charcoal briquettes since 1999 to reduce cutting trees, hence, reduction in CO2 and methane emissions to the atmosphere.

8. Address: College, Laguna, 4031, Philippines Contact Person: Dir. Celso P. Diaz and Engr. Santiago Baconguis Tel. No./fax No. : 63-49-536-2269/ 63-49-536-2850 E-mail and web address, if any: erdb@laguna.net http://www.laguna.net/~erdb/erdb.html

9. PROJECT SPONSORS Name of the project sponsor: Department of Environment and Natural Resources Organizational category: Government Address (include web address if any): DENR Visayas Avenue, Diliman, Quezon Cityhttp://denr.gov.ph Main Activities: Promotion in the conservationand protection of environment & natural resources

10. Summary of the Financials The project will generate income from the production and sale of charcoal briquettes from the communities, both urban and rural and at the same time the farmers will save from using fuelwood from the forest.

11. Type of the Project Greenhouse gases targeted: CO2/CH4 Type of activities: Abatement of CO2 and CH4 Sequestration Field activities: a) Energy supply: Renewable energy, fuel switch from fuelwood to charcoal briquettes from aban-doned biomass and water hyacinth b) Energy demand: Replacement of existing “household equipment” /improvement of energy efficiency of existing tobacco flue-curing facilities

12. Transport: Charcoal briquettes are easier to handle and readily transportable/utilize less space during transport compared to equivalent wood. • Waste Management: Utilization of abandoned cellulosic wastes and water hyacinth; and converting it into charcoal briquettes • Land Use Change and Forestry: Land degradation prevention by conserving the trees/woodlands that otherwise will be cut for fuelwood the tobacco flue-curing barns in Ilocos Region

13. Location of the project Region: East Asia and Pacific/South Asia Country: Philippines Brief description of the location of the plant: The region is a tobacco growing region & forest has already been depleted to rampant fuelwood gathering for the flue-curing of tobacco.

14. Expected Schedule Earliest project start date: Year in which the plant will be operational, Mid-2004 Estimate of time required before becoming operational after approval of the PIN: Time required for financial commitments: 2 mos. Time required for legal matters : 2 mos. Time required for negotiations : 2 mos. Time required for construction : 4 mos.

15. Expected first year of CER delivery: Year 2005 Project Lifetime: 25 years Current status or phase of the project: Identification and pre-selection phase/ opportunity study finished/pre-feasibility study finished/feasibility study finished A charcoal briquetting plant in Region 2 (Quirino, Isabela) is existing with additional community-based livelihood briquetting facilities to utilize community abandoned biomass and water hyacinth in Region 1.

16. Current status of the acceptance of the Host Country: Letter of No Objection is available or Letter of Endorsement is under discussion

17. The position of the Host Country with regard to the Kyoto Protocol The Host Country a) signed, signed and ratified, accepted, approved or acceded to the Kyoto Protocol or b) signed and has demonstrated a clear interest in becoming a party in due time (e.g. countries which have already started or are on the verge of starting the national ratification, acceptance or approval process) or c) has already started or is on the verge of starting the national accession process

18. EXPECTED ENVIRONMENTAL AND SOCIAL BENEFITS Estimate of Greenhouse Gases abated/CO2 Sequestered (in metric tons of CO2-equivalent): Annual: Up to and including 2012 : 4,480,000 tCO2- equivalent Up to a period of 10 years: 5,650,000 tCO2- equivalent Up to a period of 7 years : 3,920,000 tCO2- equivalent Up to a period of 14 years: 7,840,000 tCO2- equivalent

19. Baseline scenario: CDM projects must result in GHG emissions being lower than “business-as-usual” in the Host Country. At the PIN stage questions to be answered are at least: • What is the proposed Clean Development Mechanism (CDM) project displacing? • The project will displace cutting of trees to be used in the tobacco flue-curing and instead will use charcoal briquettes out of abandoned biomass and water hyacinth. The charcoal briquettes will replace the trees that would have been cut. A ton of briquette would conserve about 88 trees with a diameter of at least 10 cm.

20. What would the future look like without the proposed CDM project? • If there is no CDM, forest destruction for fuelwood gathering will continue and will even become worst because of annual felling of trees. Floods and drought will be a regular feature of the landscape and temperature will be hotter. • What would the estimated total GHG reduction be? • The total estimated GHG reduction is at least 500,000 tCO2 per year in the Ilocos Region alone. As the conserve trees continue to grow, more CO2 will be sequestered.

21. Specific global and local environmental benefits: The benefits that could be derived from using charcoal briquettes from abandoned biomass in place of fuelwood for flue-curing of tobacco are the following: a) Local Environmental Benefits b) Global Environmental Benefits

22. Socio-economic aspects: What social and economic effects can be attributed to the project and which would not have occurred in a comparable situation without the project? Charcoal briquetting generates enormous livelihood activity of the urban and rural communities. Unutilized and underutilized labor can be tapped that will spur the growth of local economy. Even the agriculture sector benefits from it by the demand of cassava starch needed as binder for the briquetting activity. Carbonized waste cellulosic materials can now be traded by the poor population improving their way of living. They don’t have to go to the city for employment maintaining the culture and traditions.

23. What are the possible direct effects (e.g. employment creation, capital required, foreign exchange effects)? • Employment creation everywhere because abandoned biomass is found everywhere. There is no need for specialized skill. Unskilled labor can be tapped. • Very little capital required; cooperatives can be strengthened. • Charcoal briquettes can be an export commodity aside from supplying the need of the tobacco industry, hence can be a dollar earner. • When used as a household energy for cooking, expensive LPG can be substituted hence, currency reserve can be saved.

24. What are the possible other effects? For example: • Training/education associated with the introduction of new processes, technologies and products and/or • For urban and rural poor, this is a new technology and foreign to them. Institutional arrangement and trainings especially at the community-based level is promoted. • Skills training will be needed for the workers; and this could be a vehicle for a good social change. • Educational materials will be produced to educate

25. Effects of a project on other industries • Other industries such as coal-fired plants can also replace the dirty coal with charcoal briquettes if high production of this commodity has been attained. • LPG can be substituted in cooking or partial replacement of LPG

26. Environmental strategy/priorities of the Host Country A brief description of the relationship of the consistency of the project with environmental strategy and priorities of the Host Country The project is consistent with the environmental strategy and priorities of the Philippines. The project can help conserve the forest resources which is one of the programs of government.

27. FINANCE Total project cost estimate Development costs : 5.0US$million Installed costs: 2.0US$million Other costs: 1.0US$million Total project costs: 8.0US$million Indicate CER Price (subject to negotiation and financial due diligence): $6.00 per ton CO2 Total emission Reduction Purchase Agreement (ERPA) Value: $6.00 per ton CO2

28. A period until 2012 (end of the first budget period): 6.5US$ million A period of 10 years : 8.0 US$ million A period of 7 years : 5.5 US$ million A period of 14 years (2*7years) : 11.0 US$million

29. THANK YOU VERY MUCH!!!