«Portillo Grande Landfill Gas Recovery Project»

The Portillo Grande landfill, where the Landfill Gas Recovery Project will be developed, belongs to the Metropolitan Municipality of Lima, was given under concession contract to Relima (Vega Group, Brazilian and French capital). The landfill has an area of 307 hectares that currently receive 30% of the Municipal Solid Waste (MSW) of Lima around 1500 tones per day. This landfill is 13 years old and has accumulated 4.2 million tons of MSW. This landfill has the capacity to receive 2000 tons for the next 30 years. Nowadays the landfill does not have a system of gas collection, which is not needed by law. It has only some wells for security reasons and a small portion is flared with little supervision and control. The project consists of the installation of a methane collection and flare system, to be placed in the cells of Portillo Grande landfill.

Baseline Scenario

Which emissions are the proposed Clean Development Mechanism CDM project displacing?
Methane emission will be destroyed through a collection and flare system, to be placed in the cells of Portillo Grande’s landfill. Through this process the methane turns in CO2, producing a reduction in the GWP since CO2 has 21 times less GWP than CH4.
What would the future look like without the proposed CDM project?
Nowadays the landfill does not have a system of gas collection, which is not needed by law. It has only some wells for security reasons and a small portion is flared with little supervision and control.
In Peru, according to its legislation and business as usual practices, without the project, Portillo Grande landfill will continue emit methane to the atmosphere, increasing its generation as the MSW increase.
What would the estimated total greenhouse gas (GHG) reduction be with the project?
It has been estimated that only by the process of methane flaring and therefore its transformation to CO2, the project would reduce 4,194,792 tCO2e in a period of 21 years.

Current Status

Earliest project start date
The construction of the project is planned to begin on March 2006. The operation is assumed to start in 2007.
Estimate of time required before becoming operational
1 year and a half
What is the project lifetime?
30 years
Current status or phase of the project eg: which of the following phases have been completed:
• Identification and pre-selection phase
• A letter communicating the intention to develop a CDM projects has been already send to the Designated National Authority on CDM
The municipality of Lima is evaluating how to develop the projects and is taking conversations with several carbon buyers in order to find the best deal. The municipality is interested in finance the project with the payment in advance of a portion of the sell of CERs.

Estimated Emission Reductions

• Up to and including 2012: 935,507 tCO2e
• Up to a period of 10 years: 1,689,863 tCO2e
• Up to a period of 7 years: 1,040,175 tCO2e
• Up to a period of 14 years 2,729,379 tCO2e
• Up to a period of 21 years: 4,982,820 tCO2e

Project Benefits

The principal effect is the decrease of pollution at local and global level, which would not happen in absence of the project. The local pollution affects the health of the nearby population.
The sale incomes of CER’s will allow the Metropolitan Municipality of Lima to make sustainable the operation and maintenance of units and infrastructure adapted for the collection, transfer and final disposition of solid waste. It will allow attending the demand of the municipalities with minor resources, which up to the date deposit their residues in the public via or in clandestine places. This will improve the wellbeing of some of the poorest areas of the city.

Project Participant and Financing

Total project cost estimate:
• Development costs: Around US$ 200,000
• Installed costs: Around US$ 1,400,000
• Total project costs: Around US$ 1,600,000

Sources of finance to be sought or already identified:
• Equity: The municipality is looking for an investor partner
• Debt: no identified yet
• Carbon finance contribution sought: it is expected that the project would be financed with an up front payment for the CER’s sale.

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