The World Bank Report No: ISR2363 Implementation Status & Results Philippines Philippines Ethanol Plant Wastewater Biogas Project (P106732) Public Disclosure Copy Operation Name: Philippines Ethanol Plant Wastewater Biogas Project Project Stage: Implementation Seq.No: 1 Status: ARCHIVED Archive Date: 26-Jun-2012 (P106732) Country: Philippines Approval FY: 2009 Product Line: Carbon Offset Region: EAST ASIA AND PACIFIC Lending Instrument: Implementing Agency(ies): Department of Environment and Natural Resources Key Dates Board Approval Date 14-Jan-2009 Original Closing Date 30-Dec-2017 Last Archived ISR Date Effectiveness Date 14-Jan-2009 Revised Closing Date 30-Dec-2017 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Satisfactory Overall Risk Rating Implementation Status Overview This is a private sector-led project that accesses carbon financing through the World Bank-administered Community Development Carbon Fund under the Clean Development Mechanism (CDM) of the Kyoto Protocol. The validation process required under the UN Framework Convention on Climate Change (UNFCCC) for the registration of the project as a CDM project is nearing completion after more than 2 years since the commencement of the process. A request for deviation from the UNFCCC-approved methodology has been approved. This will allow for the calculation of emission reductions (ERs) from the use of biogas in a multi-fuel boiler which may add an additional 10% to the total ER claims of the project. The ethanol plant has undergone continual fine-tuning in terms of the optimal feedstock, fuel and other operational parameters for most of the past year. The commissioning phase was officially completed in December, 2011 with the production capacity reaching 100,000 liters per day, as targeted. This production rate was sustained for five (5) days, continuous. On the wastewater management side, the biomethanation process has been functioning as designed and has achieved biogas outputs of 36,000 to 38,000 cubic meters per day during the full capacity runs. Public Disclosure Copy The technical constraint facing the plant at the moment is the insufficient capacity of the final process of the waste treatment unit. The facility was designed to achieve a zero-liquid discharge operation, the final slops (i.e., the biodigested vinasse) is concentrated through evaporation and dried and then mixed with bagasse as fuel for the boiler. This has not yet been achieved due to the insufficient capacity of the evaporator and drying units. To address this problem, the contractor has committed to install additional evaporator columns and a drying unit by June 30, 2012.This should enable Roxol to begin commercial operation by July 2012. The other constraint facing Roxol pertains to the continuing uncertainty in the local fuel ethanol market. The Roxol facility, however, as designed, can always shift to producing food- grade ethanol which has a relatively stable and predictable price. This provides flexibility to Roxol to adjust and adopt to changing market conditions. If the market conditions for the production of fuel ethanol does not improve, Roxol will shift to the production of food grade ethanol. The Emission Reduction Purchase Agreement (ERPA) for this project was signed in January 14, 2009. The delayed validation and registration of the project at the UNFCCC means Page 1 of 2 The World Bank Report No: ISR2363 that the target deliveries of Certified Emission Reductions (CERs) under the ERPA will not be attained. The schedule of deliveries may need to be updated as soon as the project gets registered so that the quantity of the ERs can be accurately projected. Public Disclosure Copy Locations Country First Administrative Division Location Planned Actual Philippines Not Entered La Carlota City Key Decisions Regarding Implementation The schedule of CER deliveries (i.e., Schedule 2 in thet ERPA) will need to be updated after registration to take into account the delays in validation and reflect realistic amounts and dates of deliveries of CERs. Related Projects There are no related projects. Public Disclosure Copy Page 2 of 2