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2.2 The CDM application process

Applying for CDM requires an average period of two to three years. During this time, a project design has to be submitted. It needs a national approval, followed by validation, registration and monitoring procedures and a final verification.

The application process requires two steps. After completing the procedure of verification on national level, a summary of the project activity will be forwarded to an international body, called the Executive Board. The Executive Board can register a project or reject it. After rejection, the proponent may reconsider the project design or withdraw the application.

In total, 27 categories for classification as small-scale projects are recognized within the CDM project framework. For a better overview, these 27 classifications are categorized in eight groups: afforestation & reforestation, renewables, methane avoidance, landfill gas, fuel switch, supply-side EE, demand-side EE, HFC & N2O reduction.

In 2007, Namibia slowly developed its interest in carbon trade. The government established an office for the Designated National Authority (DNA) as well as a CDM office. Companies intending to apply for CDM status in Namibia need to introduce their projects at both offices for verification.

3. CDM project activities in Namibia

In Namibia, four projects have already attempted to achieve CDM project status. The City of Windhoek managed to successfully register two projects for the year 2014 onwards. Another two proponents, Ohorongo cement and the Super Dairy Farm Mariental failed in their attempts.

3.1 Power generation from biogas in Windhoek

3.1.1 Project description

The Gammams Water Care Works is a wastewater and sludge treatment plant. It is located in the north-west of Windhoek. Built in 1968, the plant represents one of the first recycling facilities worldwide recessing domestic wastewater to drinking water. It was modernized frequently and, nowadays, it precedes 37 ML of waste per day (OECD/African Development Bank, 2007: 419). In 2011, the City of Windhoek announced its ambition to make use of CDM and carbon trade in order to sustainably modify the Gammams Water Care Works (The Sun, 13 Oct 2011). The overall aim of this project is the reduction of “greenhouse gas emissions through methane recovery and renewable electricity and heat generation” (UNFCCC, 2012a: 20).

The application process has already started in 2003. In 2005, the Executive Board (the supervising body of CDM) revised the CDM project design finding it suitable for verification. Gammams Water Care Works’ methane recovery has been operating since February 28, 2013. However, the registration period as a CDM project has only started in January 2014 for the next ten years.

The Gammams Water Care Works has not had a working biogas collection system since 2000, when the former fell into irreparable disrepair. Consequently, ever since then the generated biogas has been directly emitted into the atmosphere. This situation changed recently, when the City of Windhoek repaired and upgraded the biogas collection system. Five anaerobic digesters became sealed generating around 2,992 m³ of biogas per day. The gained gas is able to fuel gas engines generating environmentally friendly electricity, which again is used to fuel the water treatment plant (UNFCCC, 2012a: 3).

After the modification, collected methane gas does not emit directly into the atmosphere anymore but is used as a source of energy supplying two newly combined heat and power engines. These engines generate approximately 245 kW of electricity as well as 494 kW of thermal energy. The electricity is used to some extent to substitute the former used coal and is thus reducing emissions. The generated energy is used for three different purposes within the Gammans Water Care Works: it serves to maintain the necessary temperatures in the biodigesters; it runs a low pressure boiler that supplies heat to the anaerobic digesters and finally, a gas tank stores methane accumulating 100 m³ of gas to supply energy during peak time demand. An enclosed flare transforms surplus methane into carbon dioxide which is 21 times less harmful to the environment than methane (UNFCCC, 2012a: 3).

The Gammams Water Care Works is classified as a small-scale activity. The project type is called ‘methane avoidance’ with a ‘renewable energy project’ component (UNFCCC, 2012a: 2). Two measures were implemented: recovery of methane which escapes during the process of waste treatment and feeding thermally generated electricity into the own grid.

3.1.2 Contribution to sustainable development

The contributions of this project to sustainable development are threefold. Economically, the project is financed by revenue generated from trade with carbon credits. By selling CERs to industrial countries, foreign currency enters the Namibian economy. Furthermore, the introduction of a renewable energy source relieves Namibia’s overloaded local energy production. Lastly, by using methane for energy generators, new technologies of energy production were transferred to Namibia. Environmentally, the wastewater plant becomes almost self-sufficient in terms of electricity being no longer dependent on imported coal. This substitution reduces emissions of greenhouse gases as well as the environmentally negative impacts of coal mining. Socially, power generation by biogas supports local jobs: firstly, in the direct process of construction; secondly, in the process of operating the project; and thirdly, by engaging local materials (UNFCCC, 2012a: 4).

The output of this project is expected to save an equivalent of 7,869 tonnes of CO₂ per year. Considering a project period of 10 years minimum, the CO₂ savings are expected to reach 78,690 tonnes of CO₂ in total. Furthermore, the wastewater treatment plant transforms an anticipated 465 tonnes of CH4 per year, at the same time generating 4,646 MWh of electricity (UNFCCC, 2012a: 2).