«Garodi» Biodiesel Plant

The project consists in the construction of a Biodiesel plant for a production of 10,000,000 liters per year. The biodiesel will be sold in gas stations to be sold in diesel automobiles. Any conventional diesel engine can use diesel mixed with biodiesel or even pure biodiesel. The input to produce the biodiesel will be gotten from sustainable Palm plantations, recycled vegetable cook oil and some portion of fish oil. It is expected that the project will reduce Green House Gases since, the combustion of Biodiesel or any kind of sustainable biomass is considered to have no net impact on carbon dioxide emissions, because the Carbon dioxide emitted upon combustion is assumed to be exactly offset by the capture of Carbon dioxide during the re-growth of the biomass. The project will reduce 26,960 tCO2e annually by displacing 10,000,000 liters per year of diesel that otherwise will be combusted in automobile diesel engines.

Baseline Scenario

Which emissions are the proposed Clean Development Mechanism CDM project displacing?
CO2 emission emitted by diesel automobile engines.
What would the future look like without the proposed CDM project?
Diesel Cars will still use pure diesel in their engines emitting Carbon dioxide (CO2) among other pollutants of high local negative impact. Currently none cars in Peru use biodiesel. Most of trucks and half of cars use diesel in Peru. For diesel trucks and cars is hard to convert to natural gas so it is expected that the use of diesel will still be a common practice.
What would the estimated total greenhouse gas (GHG) reduction be with the project?
Assuming that each litre of Biodiesel displaces exactly one litre of diesel in the combustion performance in diesel cars, the project will displace 10,000,000 litres per year of diesel. By calculating the fuel consumption impact on carbon dioxide emissions through knowing the net calorific value of diesel and its carbon content, it is calculated that the project will reduce 26,960 tCO2e annually that otherwise will be emitted by automobile diesel engines using pure diesel.

Current Status

Earliest project start date
The installation of the project is planned to begin on May 2005. The operation is assumed to start in July 2005.
Estimate of time required before becoming operational
3 months
What is the project lifetime?
50 years
Current status or phase of the project eg: which of the following phases have been completed:
• The machinery and equipment is in construction. In two months will be finished.
• The financing for the equipment is closed; working capital is in negotiations with banks. CER’s are required to strength financial ratios for this pioneering project.
• The authorisation with the health department of the Ministry of Heath is in process (DIGESA).
• Contract in negotiations with mayor restaurants to acquire used cook oil.

Estimated Emission Reductions

Annual: an average of 26,960 tCO2e

• Up to and including 2012: 188,720 tCO2e
• Up to a period of 10 years: 269,600 tCO2e
• Up to a period of 7 years: 188,720 tCO2e
• Up to a period of 14 years: 377,440 tCO2e

Project Benefits

• The project will demand palm oil from a rain forest area of Peru that is very poor and become an attractive alternative to the coca illegal plantations.
• Diesel in Peru has a high content of sulphur and with combustion emit sulphur dioxide a high impact local pollutant. Biodiesel does not content sulphur.
• Biodiesel is a renewable source of energy, Diesel no.
• The project will contribute to improve the deficit in the trade balance in Peru since Biodiesel contrary to diesel is produced locally.
• The project will provide 20 permanent jobs.

Project Participant and Financing

Total project cost estimate:
• Machinery and equipment: US$ 200,000
• Working Capital: US$ 400,000
• Total project costs: US$ 600,000

Sources of finance to be sought or already identified:
• Equity: US$ 200,000
• Debt: US$ 400,000
• Carbon finance contribution sought: As much as we can have in advance.

Contact Information: