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International workshop
“Learning from national domestic biogas programmes in
Asia; mapping opportunities for developing and resourcing
of biogas sectors including carbon financing”
20-22 November 2012, Art Senses Hotel and Place, Chengdu, PR China
Workshop Report
February 2013
2
Contents
Summary...................................................................................................................................................3
1. Introduction ..............................................................................................................................................6
1.1 Objective of the workshop..........................................................................................................6
1.2 Participants .................................................................................................................................7
2. Workshop agenda.....................................................................................................................................7
2.1 Day I, 20 November 2012............................................................................................................7
2.1.1 Plenary Opening Session..................................................................................................7
2.1.2 Plenary Presentation Session: “Spotlight on China”........................................................9
2.1.3 Parallel session Country Team “What did we learn”.....................................................11
2.1.4 Plenary presentation session of Country Teams ...........................................................12
2.2 Day II, 21 November 2012.........................................................................................................13
2.2.1 Visit to BIOMA and exhibition of Chinese biogas industry ............................................13
2.2.2 Visit to Yong’an Biogas Management Cooperative (biogas service network) ...............13
2.2.3 Visit Hongqi company in Chengdu .................................................................................14
2.3 Day III, 22 November 2012........................................................................................................14
2.3.1 Plenary session “Mapping Opportunities”.....................................................................14
2.3.2 Parallel sessions A-E.......................................................................................................17
2.3.3 Plenary reporting session...............................................................................................29
2.3.4 Update on E4All working group on domestic biogas.....................................................30
2.3.5 Plenary Closing session ..................................................................................................31
2.3.6 Evaluation and closing of the workshop........................................................................32
Annex I – List of Participants.......................................................................................................................33
Annex II – Workshop Agenda......................................................................................................................37
Annex III - Summary of Country Presentations...........................................................................................40
Annex IV - Result of the workshop evaluation............................................................................................48
3
Summary
Asia is the centre of domestic biogas development, with the People’s Republic of China having installed
more than 42 million units (by the end of 2011) and India about 4.4 million units (by the end of March
2011) based on strong government support. With support by SNV Netherlands Development
Organisation, Nepal, Vietnam, Bangladesh and Cambodia, followed by Lao PDR, Indonesia, Pakistan and
Bhutan have started market-based national programmes aiming to develop sustainable, commercially
viable biogas sectors. By the end of 2011, more than 430,000 biogas plants were installed in these eight
countries, including units installed through other projects. SNV initiates to extract lessons that will
inform further development of the domestic biogas programmes in Asia and possibly also in other parts
of the world.
More than fifty different organisations currently cooperate in the Working Group on Domestic Biogas
convened by SNV under the Energy for All Partnership (E4ALL) initiated by the Asian Development Bank
(ADB). The objective of this group is the construction of one million domestic biogas plants across fifteen
Asian countries by 2016. Recently, efforts on the generation of carbon credits from national biogas
programmes have resulted in success for among others Cambodia, India, Nepal and China. The question
is if and how carbon financing can be further increased in these countries, but also applied in other
countries with a sizable programme. Against this background, SNV and the Biogas Institute of Ministry of
Agriculture (BIOMA) of China, in cooperation with the ADB/E4ALL, organised an International Workshop
on Domestic Biogas in Chengdu, China, from 20 to 22 November 2012. Approximately 120 people
participated in the workshop.
This workshop had two specific objectives:
 To evaluate the performance of the national programmes on domestic biogas from 2005 to
2012 and to assess the outlook of these programmes up to 2016. Expected output is an outline
of the main issues, lessons learnt and prospects by country;
 To present and discuss the latest developments and opportunities on key issues related to the
transition from biogas projects to national programmes to sectors. Expected output is
opportunities mapped for developing and resourcing of biogas sectors on: carbon financing,
product development, bio-slurry, credit facilities and the enabling environment.
The first day of the workshop, on 20 November 2012, kicked-off with opening speeches from
representatives from the Ministry of Agriculture in China, the Biogas Institute of Ministry of Agriculture,
the Asian Development Bank, and SNV Netherlands Development Organisation. The following plenary
session was focused on biogas development in China. The presenters, representing the Ministry of
Agriculture in China, the Sichuan Provincial Rural Energy Office and the World Bank, provided an
overview of the status of domestic biogas activities in China. The Chinese government is highly
supportive to the biogas sector in terms of laws and legislation, although the high number of policies can
create confusion. Efforts have been made on training of households and enterprises. The establishment
of biogas service networks for users was emphasized, although not all are functioning well due to their
location or low profitability.
In May 2008, more than half a million plants were damaged due to an earthquake in Sichuan Province.
An emergency loan was made available by AFD and IFAD for (re)construction of new biodigesters. The
(re)construction materials consisted of bricks and cement for the digester and fibreglass for the dome.
Within 3 years, the project was successfully completed.
4
Two more projects were highlighted, including the efficient utilization of agricultural wastes, financially
supported by ADB and GEF. The project focused on the improvement of the mechanism of biomass
technology transfer, improvement of farm-to-market facilities, enhancing awareness of environment
among the public, piloting poverty focused approaches to biomass development and capacity building.
The project set up 19,100 biogas digesters in addition to improving kitchens, toilets and pig sheds.
The Carbon Finance Unit, established by the World Bank, has pioneered multiple funds bridging
innovation with public private partnerships. Twelve biogas related projects have been realised including
three programmes aiming to reduce 10 mega tons of CO2e. Currently, there are projects in China,
Thailand, the Philippines and Nepal with new projects being developed in Ethiopia and Nepal.
The first day continued with a parallel session on “what did we learn?”. Twelve country teams were
formed in which the teams had to evaluate (via SWOT analysis) the performance of domestic biogas
sector in their respective country. The analyses were guided by two key questions:
1. What are the three most relevant strengths, weaknesses, opportunities & threats of the
domestic biogas sector in our country?
2. What are concrete actions points to overcome the three most relevant weaknesses and/or
threats in the domestic biogas sector in our country?
The individual country presentations indicated that some of the strengths in one country are
weaknesses in other countries. Government commitment in most countries appears to be good but
enforcement of policies is weak and is sometimes disturbing market driven approach. Availability of
other biogas technologies/designs is being followed in several countries while in some other the focus is
on one single but proven model. Most countries have developed strong national and international
networks. Capacity building and training is a strong component across the countries while trained
masons are leaving work and therefore requires attention. Lack of coordination at stakeholder and
donor level was also highlighted. The number of smallholder animal farmers is decreasing in some
countries requiring refocusing on relatively larger animal holders. Donor dependency and conflicting
subsidy schemes are also issues. Most countries still have little access to micro-finance especially in rural
areas. Several countries have effective multi stakeholder platforms while others have weak linkages.
A quantitative analysis of the sector elements (market demand, market supply and the enabling
environment) mentioned in the country SWOTs shows that the weaknesses are mostly related to the
market supply side and the threats are mostly related to the enabling environments.
On the second workshop day, on 21 November 2012, a full day of field visits was planned. A visit for the
participants was organized to the Biogas Institute of Ministry of Agriculture (BIOMA). A guided tour was
provided by the staff of BIOMA to its various laboratories and facilities related to biogas analysis and
testing. A briefing on BIOMA’s activities was also provided using multimedia in the BIOMA conference
room. The participants also visited an exhibition of the Chinese biogas industry, organized at the front
yard of BIOMA. In the exhibit many Chinese enterprises and companies involved in manufacturing and
marketing of various biogas and other renewable energy related appliances and accessories had
prepared display stands.
The Yong’an Biogas Management Cooperative, established in 2007 with government support, was
visited. The Cooperative provides domestic biogas plant services to approximately 5,000 farmers in
Yong’an Township and other townships nearby. The management mode of the Cooperative is
5
characterised by different memberships (ordinary, full services and non-memberships). While at
Yong’an, participants also visited local biogas households and interacted with the plant owners. Finally,
the Hongqi Company was visited, which is an enterprise engaged in research and development,
production, sales and service of digesters made of fibreglass reinforced plastic. The annual output of the
fibreglass digesters made by this company has reached 400,000. Participants visited the production
factory, followed by a Q&A session with Hongqi management.
On the final workshop day, on 22 November 2012, focused on the latest developments and
opportunities on key issues related to the transition from biogas projects to national programmes to
sectors. It started with several plenary presentations to serve as introduction and share experiences in
the topics of product development, carbon financing, optimal use of bio-slurry, credit facilities, and
enabling environments for biogas sectors.
On product development, SimGas was introduced, a company producing two types of biogas plants with
animal manure and kitchen waste as feedstock in Tanzania. The main objectives are to provide
reasonably cheap, reliable, scalable, easily transportable and easy to install products.
On carbon financing and bio-slurry use, a FAO study on the potential to access carbon markets through
biogas projects in the Greater Mekong Sub-region was presented.
On credit facilities, the biogas loan product in Cambodia was elaborated on by Amret MFI. They provide
loan to potential biogas households, with an average of USD 500-600. Interest rate is 1.2% per month
with duration up to 24 months. On regional level, efforts are undertaken by KfW to establish a debt fund
to re-finance MFIs; for example to provide biogas loans. Several market studies in Asian countries show
potential for financing biogas.
On enabling environments, the example of the Alternative Energy Promotion Centre (AEPC) Nepal was
presented. The AEPC facilitates the enabling environment for the Nepalese biogas sector since 1996.
AEPC plays a key role in facilitating the biogas partnership between public and private actors and is
setting up guidelines and standards as well as in subsidy monitoring.
In the following five parallel sessions, a number of key questions were raised with regard to the topics
carbon financing, product development, optimal use of bio-slurry, credit facilities, and enabling
environments. The questions aimed to analyse the barriers identified and lessons learned in
commercialisation of biogas; which good practices make a biogas project/programme successful; and
what will be the future of key market instruments. Specifically, to secure carbon finance, a strong and
robust organisation structure is needed, as well as internal carbon expertise. There is a need for a
common knowledge sharing platform, such as the recently initiated Sub-Working Group on Carbon
Financing under the E4ALL Partnership. On microcredit for MFIs and biogas households, the appropriate
terms and conditions were discussed, concluding that tailored funding is crucial for success. On enabling
environments, especially national policies, standards and regulation are needed as well as overall
government commitment. A nodal entity for coordination is preferred to boost this.
The E4All goal is to provide access to reliable and affordable modern energy services to 100 million
people in Asia and the Pacific by 2015. An update on the E4All Working Group on Domestic Biogas was
provided, which included various trainings, R&D (fibre glass digesters) and consultations.
The workshop ended with a brief reflection on the objectives and major discussion themes in domestic
biogas programmes: the demand side still witnesses a lack of awareness among households on the full
benefits of biogas; the supply side needs to be mobilised stronger with private sector development at its
core; and in relation to enabling environments, biogas is more and more recognised in national policies
and through establishment of dedicated government institutes.
6
1. Introduction
Asia is the centre of domestic biogas development, with the People’s Republic of China having installed
more than 42 million units (by the end of 2011) and India about 4.4 million units (by the end of March
2011) based on strong government support. With support by SNV Netherlands Development
Organisation, Nepal, Vietnam, Bangladesh and Cambodia, followed by Lao PDR, Indonesia, Pakistan and
Bhutan, have started market-based national programmes aiming to develop sustainable, commercially
viable biogas sectors. By the end of 2011, more than 430,000 biogas plants were installed in these eight
countries, including units installed through other projects.
More than fifty different organisations currently cooperate in the Working Group on Domestic Biogas
convened by SNV under the Energy for All Partnership (E4ALL) initiated by the Asian Development Bank
(ADB). The objective of this group is the construction of one million domestic biogas plants across fifteen
Asian countries by 2016, providing access to sustainable energy to five million people. Whereas for the
giant biogas countries, China and India, the focus of the E4ALL efforts will be solely on innovation,
scaling-up is aimed for the eight Asian countries with existing national programmes. In addition, the
launch of feasible programmes is targeted for five new countries.
Since 2005, the Netherlands Ministry of Foreign Affairs (DGIS) has supported the Asia Biogas Programme
covering biogas programmes in Bangladesh, Cambodia, Lao PDR and Vietnam. A Mid-Term Review
(MTR) of these programmes was executed in 2008. Early 2012, SNV has initiated both internal and
external evaluations to extract lessons that will inform further development of the domestic biogas
programmes in Asia and possibly also in other parts of the world.
More recently, efforts on the generation of carbon credits from national biogas programmes have
resulted in success for among others Cambodia, India, Nepal and China. The question is if and how
carbon financing can be further increased in these countries, but also applied in other countries with a
sizable programme. This type of financing could be coupled with temporary public funding and debt
funding opportunities to achieve financial sustainability of national programmes on domestic biogas.
Against this background, SNV and the Biogas Institute of the Ministry of Agriculture (BIOMA) of China, in
cooperation with the ADB/E4ALL, organised an International Workshop on Domestic Biogas in Chengdu,
China, from 20 to 22 November 2012.
1.1 Objective of the workshop
This workshop had two specific objectives:
 To evaluate the performance of the national programmes on domestic biogas from 2005 to
2012 and to assess the outlook of these programmes up to 2016.
Expected output is an outline of the main issues, lessons learnt and prospects by country;
 To present and discuss the latest developments and opportunities on key issues related to the
transition from biogas projects to national programmes to sectors.
Expected output is opportunities mapped for developing and resourcing of biogas sectors on:
carbon financing, product development, bio-slurry, credit facilities and the enabling
environment.
7
1.2 Participants
Approximately 120 people participated in the
workshop, consisting of selected delegations
from fifteen countries in Asia, of representatives
from ADB and other potential external financers
and of stakeholders from the biogas sector in
China. See Annex I for the complete list.
2. Workshop agenda
The workshop was organized for three days between 20 and 22 November 2012 which consisted of
various plenary and parallel sessions as well as field visits. The detailed agenda can be found in Annex II.
2.1 Day I, 20 November 2012
2.1.1 Plenary Opening Session
Opening speech by Ms Hao Xianrong, Division Director, Department of Science & Technology and
Education, Ministry of Agriculture
On behalf of Mr Wang Yanliang, Deputy Director-General,
Department of Science and Education, Ministry of Agriculture
(MOA), PRC and Director General, Rural Energy and
Environment Agency, Ministry of Agriculture (MOA), PRC, Ms
Hao congratulated on the commencement of the workshop
and welcomed all participants from 21 countries including
Bangladesh, Bhutan, Cambodia, India, Indonesia, Laos,
Myanmar, Nepal, Pakistan, Philippines, Singapore, Sri Lanka,
Vietnam Nigeria, the, Rwanda, Tanzania, Burkina Faso,
Zambia, Germany, the Netherlands, Switzerland, as well as the
domestic participants and experts from China. She also welcomed SNV, ADB and World Bank
representatives.
Ms Hao informed that the Chinese government attached great importance to biomass energy and
biogas and has highlighted it in the 12th
Five Year Plan for National Economic and Social Development.
Since 2000, the government is financing and supporting proliferation of biogas plants in rural areas
amounting to RMB 31.5 billion. The number of biogas users is now 41.7 million (39.98 million small
biogas plants, 80,000 medium sized plants and 90,000 service networks in township and villages). Rural
biogas has significantly contributed to the improvement of farmers’ production and living conditions.
The Chinese government has also taken up promotion of rural biogas as an industry promoting large
scale industrialised production. The emission reduction achieved is also helping to tackle the problem of
climate change.
8
The government of China will continue to focus on rural biogas development policy. Scientific research
and innovation will be promoted, and standardization, enterprise development, capacity building for
constructer and service providers will be emphasised. International collaboration is also taking place and
more of such collaborations are welcome. She wished the workshop a great success.
Welcome address by Mr Li Qian, Director General, Biogas
Institute of Ministry of Agriculture (BIOMA)
Mr Qian welcomed all the participants in Chengdu on behalf of
BIOMA. He informed that BIOMA has a faculty of experienced
staff in biogas and since 1980 it is organizing trainings in rural
biogas to participants from developing countries. BIOMA is
highly willing to cooperate with ADB and SNV to facilitate free
exchange of the latest findings on domestic biogas and promote
academic exchanges. He wished the conference a success.
Opening remarks by Mr Jiwan Acharya, Climate Change Specialist (Energy), Sustainable Infrastructure
Division, Regional and Sustainable Development Department, Asian Development Bank
Mr Acharya welcomed all on behalf of ADB. He highlighted the
importance of the workshop: 1. Taking place in China where almost
40 million biogas plants are made; 2. Biogas collaboration entering
a stage where bilateral support and grants are reducing. There is
however a need for sustaining the development of the sector of
biogas for poor rural population; 3. Commitment from participants
is important to determine how we need to move ahead. ADB’s
involvement in the area of biogas is steadily increasing. Many
projects are on-going and more are in pipeline and expressed ADB’s
commitment to this sector. He also informed that the Working Group on Domestic Biogas under the
E4All is the most active partnership within ADB. He recalled that the establishment of credit fund was
discussed in international biogas workshop in 2011 (Bandung, Indonesia). Discussion with KfW as a lead
is taking place and we will hear more from KfW on the progress in this workshop. He thanked the
Ministry of Agriculture and BIOMA and SNV for organizing this workshop.
Opening remarks by Mr Wim J. van Nes, Network Leader Renewable Energy, SNV Netherlands
Development Organisation
Mr Van Nes said that the domestic biogas is one of the
possibilities for rural households to get cooking fuel and
organic fertilizer with estimates of global potential standing at
155 million. Since 1989, SNV is supporting in setting up national
programmes in domestic biogas and by the end of this year
500,000 biogas plants would be installed in 17 countries in Asia,
Africa and Latin America. A sector wide approach is required
for sustaining such a development involving capacity
development of stakeholders. Additionally, it will be required
to develop the enabling environment including the policy and regulatory framework to create the
playing field level for the service providers in the market. This is an important issue that the participants
of this workshop will have to reflect upon. This is the 4th in the series of international workshops on
domestic biogas initiated by SNV.
9
Mr Van Nes thanked the Ministry of Agriculture and its Biogas Institute for all the support provided to
organize this workshop. He expressed gratitude towards ADB for supporting the workshop and the
Working Group on Domestic Biogas in the framework of the Energy of All Partnership. He also thanked
the Netherlands Ministry of Foreign Affairs for supporting the development of the biogas sectors in the
developing world.
2.1.2 Plenary Presentation Session: “Spotlight on China”
Ms Hao Xianrong introduced the session, which hosted a series of presentation with a focus on biogas in
China. Before that, Mr Fred Marree of SNV made an introduction of the workshop and the planned field
visits. Mr Marree presented the workshop rationale and outlined the planned daily programme
including field visits, logistics and social events.
Objectives of the workshop:
1. Evaluate the performance of national programmes on domestic biogas and to assess the outlook of
these programmes.
Expected results: an outline of the main issues, lessons learnt and prospects per country.
2. Present and discuss the latest development and opportunities on key issues related to the transition
from biogas projects to national programmes to biogas sectors.
Expected results: opportunities mapped for developing and resourcing of biogas sectors on: carbon
financing, product development, bio-slurry, credit facilities and the enabling environment.
Domestic Biogas Programme in China. Mr Li Jingming, Secretary General of China Biogas Society.
Director Renewable Energy Division, Rural Energy and Environmental Agency, MoA.
Rural energy consumption in China is increasing, but 85-90% comes from
traditional sources such as fuel wood, straw and coal. The government is
highly supportive, including various supportive laws and legislation; plans
such as the Medium and Long Term Programme of Renewable Energy
Development Plan and National Rural Biogas Construction Plan. The plans
aim for 80 million domestic biogas digesters and 8,000 large scale biogas
projects by 2020. There is also increasing emphasis on standardisation for
small, medium and large biogas installations as well as training and
education of households, community and enterprises.
Mr Li also highlighted technical progresses such as in diversity of raw
material for biogas, improved fermentation technology, digester designs,
equipment manufacture in country, diversity in application from rural to urban, industrial and
transportation.
Some of the key problems and barriers in rural biogas development in China are: the high number of
policies in existence which creates confusion and the focus seems mainly on infrastructure investment
and not on incentives for implementation and end users; the network of service points are not
functioning well as many are not ideally located and are not making income from service provision;
farmers also do not like to pay for the services in cash; barriers in marketing comes from the fact that
10
biogas is mainly supplied as cooking alternative and supply to the grid is still difficult; and a proper
incentive policy on utilization of bio-slurry is lacking.
Reconstruction of Rural Biogas Plants in Earthquake Affected Area of Sichuan Province. Mr Zhou Liao,
Assistant Chief of the Domestic Biogas Section, Sichuan Provincial Rural Energy Office, Chengdu, China
There are 5.75 million rural biogas plants in Sichuan Province as of
October 2012 which is the largest number for a province in China.
524,100 plants got damaged by the earthquake on May 12, 2008,
resulting in a loss of RMB 1.6 billion. AFD and IFAD’s preferential
emergency loan of USD 80.47 million was made available for
reconstruction in sixteen heavily affected counties and construction
of 155,300 new biogas digesters. The project was successfully
completed in three years. As for the construction technology:
digester was made of bricks and cement while the dome was made
of mould pressed glass fibre. This required no maintenance and
there was no problem of leakages. Gas production increased 26%
and time required for construction was also shorter. Biogas service stations were also established at
rural areas at village and county level to facilitate availability of appliances and accessories and the
prompt provision of after sales services.
Results of ADB supported biogas projects in China. Mr Geng Dali, Director, Foreign Economic
Cooperation Centre, Ministry of Agriculture, China
The ‘Efficient Utilization of Agricultural Wastes Project’ and the
‘Integrated Renewable Biomass Energy Development Project’ are the
two projects funded by ADB.
The Efficient Utilization of Agricultural Wastes Project was co-funded
by ADB and GEF. The project was launched in June 2003 and was
completed in the end of 2009 with a total investment of RMB 565
million. The project focused on the improvement of the mechanism of
biomass technology transfer, improvement of farm-to-market
facilities, enhancing awareness of environment among the public,
piloting poverty focused approaches to biomass development and
capacity building. The project set up 19,100 biogas digesters in
addition to improving kitchen, toilets and pig sheds. Fifteen medium
and large biogas installations were also completed. This helped
generate 13.697 million m3 of biogas resulting in a net reduction of greenhouse gas emission by 86,700
tons CO2e/yr. It has also resulted in annual treatment of 948,600 tons of animal waste and generation
of 851,200 tons of sludge and bio-slurry.
The Integrated Renewable Biomass Energy Development Sector project aimed at effective utilization of
biogas sludge in eco-farming, capacity development for improved sector performance and providing
project implementation support.
11
World Bank Experience on Carbon Finance Operations in Biogas. Mr Tao Wang, Senior Operations
Officer, Carbon Finance Unit, World Bank, USA.
The World Bank (WB) established the first carbon fund in 2000, and
since then the role and activities of the WB in carbon financing is
continually evolving. The Carbon Finance Unit has pioneered multiple
funds bridging innovation with public private partnerships. Twelve
biogas related projects have been realised including three programmes
aiming to reduce 10 mega tons of CO2e. Currently, there are projects in
China, Thailand, the Philippines and Nepal with new projects being
developed in Ethiopia and Nepal. For the WB the key lessons learnt
from carbon finance projects are:
 Understanding of benefits and challenges in the use of carbon finance;
 Importance for the need of good maintenance and solid monitoring system;
 A strong Coordinating/Managing Entity (CME) is the key to success of bundled small scale
projects and PoAs;
 Challenges related to upfront project costs and price variability.
There is USD 900 million be managed for a post 2012 carbon fund. The Carbon Partnership Facility,
Forest Carbon Partnership, Bio Carbon Fund and Carbon Initiative for Development (two components)
for least developed countries are set in place by WB for post 2012.
2.1.3 Parallel session Country Team “What did we learn”
During the following parallel session, twelve country teams were formed in which the teams had to
evaluate the performance of the national domestic biogas programme in their respective country. The
domestic biogas sectors consisting of a demand side, supply side and enabling environment in the
various countries in Asia and Africa are in different stages of development and have to cope with their
very specific contexts. For the actors in every country, it will be crucial to ‘learn by doing’. One way of
looking at the development of the sector is to review the quality of the sector functions (see sketch
below) as well as the level of external financial assistance required to sustain the functions in the sector.
12
Each country group1
, led by a facilitator, conducted a SWOT analysis on the biogas sector per country:
SWOT POSITIVE NEGATIVE
Internal Strength (“What are we good at?”) Weakness (“What can we improve?”)
External Opportunity (“What trends we can take advantage of?”) Threat (“What are we competing with?”)
The analyses were guided by two key questions:
1. What are the three most relevant strengths, weaknesses, opportunities & threats of the domestic
biogas sector in our country?
2. What are concrete actions points to overcome the three most relevant weaknesses and/or threats in
the domestic biogas sector in our country?
2.1.4 Plenary presentation session of Country Teams
Mr Kailash Khandelwal from India chaired the plenary session. In the plenary session each country group
presented the result of the SWOT analysis in the form of lessons learnt. The summary of the country
presentation is presented in Annex III.
Ms Dagmar Zwebe (SNV/Vietnam) summarized on the presentations made and
indicated that some of the strengths are weaknesses in other countries.
Government commitment in most countries appears to be good but
enforcement of policies is weak and is sometimes disturbing market driven
approach. Availability of other biogas technologies/designs is being followed in
several countries while in some other they are focusing on one single but
proven model. Most countries have developed strong national and international
networks. New opportunities are being provided by organic farming while use of
bio-slurry is still limited. Capacity building and training is a strong component
across the countries while trained masons are leaving work and therefore
requires attention. Lack of coordination at stakeholder and donor level was also highlighted in several
country presentations. The number of smallholder animal farmers is decreasing in some countries
requiring refocusing on relatively larger animal holders. Donor dependency and conflicting subsidy
schemes are also issues. Most countries still have little access to micro-finance especially in rural areas.
Several countries have effective multi stakeholder platforms while others have weak linkages.
A quantitative analysis of the sector elements (market demand, market supply and the enabling
environment) mentioned country SWOTs shows that the weaknesses are mostly related to the market
supply side and the threats are mostly related to the enabling environments:
1
Bangladesh, Bhutan, Burkina Faso, Cambodia, China, India, Indonesia, Lao PDR, Nepal, Pakistan, Sri Lanka and
Vietnam
18%
47%
34%
Demand
Supply
Enabling
environment
27%
23%
50%
Demand
Supply
Enabling
environment
Weaknesses related to sector elements: Threats related by sector elements:
13
2.2 Day II, 21 November 2012
2.2.1 Visit to BIOMA and exhibition of Chinese biogas industry
A visit for the participants was organized to the Biogas Institute of Ministry of Agriculture (BIOMA). The
visit was organized in six groups and a guided tour was provided by the staff of BIOMA to its various
laboratories and facilities related to biogas analysis and testing. A briefing on BIOMA’s activities was also
provided using multimedia at the BIOMA conference room.
BIOMA was established in 1979. It’s a sole state-level biogas
research institution in China. It is mainly engaged in fundamental
research, technical development, project design, demonstration
and consultation, domestic and international trainings as well as
products’ (appliances) quality inspection in the field of biogas. It
is taking a leading place at anaerobic microorganism research
area, treatment technology of different agriculture wastes, such
as animal dung and straws. BIOMA is devoted to contribute to
rural renewable energy development and improvement of rural
ecological environment. BIOMA applies bio-technological methods in agricultural and rural economic
development transformation, as well as scientific research and technical promotion for rural energy and
environmental engineering.
Side by side to the BIOMA visit, participants also participated in the exhibition of the Chinese biogas
industry organized at the front yard of BIOMA. In the exhibit many Chinese enterprises and companies
involved in manufacturing and marketing of various biogas and other renewable energy related
appliances and accessories had prepared display stands. They explained their products to the visitors
and distributed promotional materials.
2.2.2 Visit to Yong’an Biogas Management Cooperative (biogas service network)
The Yong’an Biogas Management Cooperative was
established in 2007, with government support, and is located
in Yong’an Town. The Cooperative provides domestic biogas
plant services to approximately 5,000 farmers in Yong’an
Township and other townships nearby. The management
mode of the Cooperative is characterised by different
memberships providing different services to the farmers: (1)
ordinary members: fee of RMB 60 per year; (2) membership
for full services: fee of RMB 500 per year; and (3) non-
membership clients. Ordinary and full services membership can get different kind of free services from
the Cooperative. The Cooperative has brought tangible benefits to farmers by its services and been
commonly accepted by farmers for its service work.
While at Yong’an participants also visited local biogas households and interacted with the plant owners.
14
2.2.3 Visit Hongqi company in Chengdu
The Chengdu Hongqi Industrial Company is an enterprise engaged in research and development,
production, sales and service of digesters made of fibreglass reinforced plastic. They promote several
types of fibreglass digesters. The digesters are characterised, among others, by their slightly higher
construction costs, fast installation, good performance in
air tightness and very little maintenance. The annual
output of the fibreglass digesters made by this company
has reached 400,000. The company focuses on
innovation, development and research of new material,
introduction of new equipment, product quality
promotion. The company has been recognised with many
national enterprise awards.
2.3 Day III, 22 November 2012
2.3.1 Plenary session “Mapping Opportunities”
This session was chaired by Mr Formanul Islam, IDCOL, Bangladesh.
Product development of pre-manufactured biogas plants by SimGas BV. Mr Sanne Castro, CEO, SimGas
BV, the Netherlands.
Taking the success of biogas from Nepal to Africa but with a product
developed to suit and benefit the needs of rural Africa was the focus of
the presentation. Every unit of biogas is more of a project than a product
and thus had a lot of overhead. It is also a move from one-fits-all to a
model of mass customization. Prices are aimed at a return on investment
within two years. The installation consists of elongated (cylindrical) and
modular one m3
components made of HDPE. The unit is fixed and is
underground. Main objective is to provide reasonably cheap, reliable,
scalable, easily transportable and easy to install product. Floating drum
adapted from the “Arti” model is in market in Tanzania with household
kitchen waste as its feed stock. Currently, 350 customers in Dar es Salaam
are benefiting from the technology.
The potential to access carbon markets through biogas projects in the Greater Mekong Sub-region:
Case studies and training needs. Mr Palitha Ranadewa, Lead Field Researcher FAO study, Sri Lanka
The presentation summarises the results of the study carried out by Texas A&M University and FAO
focused on the Greater Mekong Sub-region (Research field visits in: Lao PDR - Vientiane Province;
Sikhaod, Xaythany, Naxaythong, Pak Gneun and Hadxayphong; and Thailand - Tamboon Prasak Muang
district of Lamphun Province).
15
The objectives of the study were:
 To examine the level of understanding among biogas producers,
farmers and relevant organizations on the economic, social and
environmental benefits of biogas, bio-slurry and bio-slurry
compost activities;
 To understand the current status and potential of biogas, bio-
slurry and bio-slurry compost production in the GMS region and
how these activities can be leveraged to access carbon financing.
The study estimated the theoretical potential of bio-slurry production (TP)
in this region to be around 683,430,953 tons per year that can replace 2,504,023 tons/year of Urea.
Composted bio-slurry theoretically can replace 2 million tons of Urea as compared to a million tons by
bio-slurry only. With 50% TP in the research area, the theoretical value of generated carbon credits may
amount up to USD 500 million as a result of energy substitution, manure management and fertilizer
substitution.
During the study it was also observed that most biogas plants are not functioning ideally and are not
operating or being operated in their full capacity thereby pointing out towards the need for better
awareness raising and training programme and extension services.
A brief ceremony to mark the registration and issuance of Gold Standard Credits for biogas
programme in Vietnam and Cambodia were organized at the midst of the presentations.
Vietnam - On 28 June 2012, the Vietnam Biogas Program has achieved registration under the Gold
Standard, the stringent certification standard for projects reducing carbon emissions. In partnership with
Nexus-Carbon for Development, the programme is enabled to develop and commercialise Gold Standard
certified carbon credits. The expected annual emission reductions are 589,125 tonnes CO2e. The multi-
award-winning programme is the first Vietnamese project to register under the Voluntary Gold Standard
and the second largest household energy project registered globally.
Cambodia - The National Biodigester Programme (NBP) in Cambodia received a certificate representing
its second issue of 54,137 Gold Standard VERs. The certificate was presented by Ms Shirley Yuhuan
Shen, Gold Standard Foundation, to H.E. Nou Muth, Ministry of Agriculture, Forestry and Fisheries, and
Ms Saoleng Lam, NBP. This was the result of the second NBP monitoring report covering the period of
September 2010 till December 2011. The average annual emission reduction per biodigester was
determined at 4.2 ton CO2 equivalent.
National Bio-digester Program (NBP). Bio-digester loan development and
performance. Mr Sean Thorninn, Head of Financial Services, Amret MFI,
Cambodia
Amret was founded in 1991 to deliver micro-credit to the rural population
of Cambodia. It became the first micro-finance institution to receive a micro
deposit and taking institution license for the National Bank of Cambodia. At
present Amret has 98 offices covering 17 out of 24 provinces and the
capital with a total staff of 2,366. Its products and services are credit
(individual, solidarity, bio-digester), deposit (saving and fixed) and Inter
Branch Monetary Transfer. The outstanding loans as per September 2012
stand at USD 129.3 million with 287,903 active borrowers. Amret MFI
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provides loans to households wanting to install bio-digester with the help of the concession loan
provided by FMO. The loan size to the household varies from USD 150 to USD 1,000 based on plant
construction cost and equipment. The average loan size is between USD 500-600. The interest rate is
1.2% and Amret provides the loan to eligible households based on their eligibility criteria. The loan
duration is 3 to 24 months based on client’s real cash flow and repayment is on monthly basis with a
grace period of 1-3 months.
Out of a total of 4,826 plants constructed in 2012, 3,034 were via loan of which 1,782 plants (59%) was
via an Amret loan.
Update on the creation of a regional debt fund on re-financing of loans to end-users. Mr Florian
Arneth, Senior Project Manager, KfW, Germany
Market studies conducted in Pakistan, Nepal, Bangladesh and Vietnam
showed market potential for financing biogas. A study in Indonesia is still
on-going. KfW submitted a proposal to the German Federal Ministry for
Economic Cooperation and Development (BMZ) for a MIFA debt fund to
re-finance MFI for financing in local currencies created by KfW, German
government, EU and Blue Orchard. Local government commitment,
quality control, after sales and medium term growth rate of cattle
population are some of the risks that needs to be mitigated through TA.
Strong links between the national biogas programmes will therefore be
required. Further study is needed to assess demand from MFI and their
capability to engage. Which countries have the highest potentials
(substrate, interest for loans, repay potential)? Biogas can be included in
this MIFA initiative.
Enabling environment for the Domestic Biogas Sector in Nepal. Mr Samir Thapa, Assistant Director,
Alternative Energy Promotion Centre, Nepal
AEPC’s role was highlighted in facilitating the enabling environment for
domestic biogas in Nepal since its establishment in 1996. AEPC plays a key
role in facilitating the partnership between public and private actors and is
setting up guidelines and standards as well as in subsidy monitoring. The
Central Renewable Energy Fund (CREF) is being initiated. Government
subsidy is to be increase in the future to 40%. Mr Thapa pointed out that
there is a need to diversify to urban areas and larger biogas systems that
require innovative technologies and to meet the high demand for credit.
As part of policy contribution, AEPC has managed to facilitate the Rural
Energy Policy 2006, Subsidy Policy /Arrangement 2009 (amended), Subsidy Delivery Mechanism 2009
(amended) and the CDM Revenue Utilisation guideline.
Mr Thapa further pointed out the need for a focal agency for biogas, code of conduct for private sector,
partnership with academic institutes for R&D and an increased focus on impacts. There is also a need for
diversification of the private sector towards inclusion of other products in addition to biodigesters.
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At the end of this plenary session, Mr. Formanul summarized that efforts are underway to develop
scalable, marketable, affordable and durable biogas digesters. Similarly potential of bio-slurry also in
terms of carbon credit is huge and the potential of replacement of chemical fertilized is huge as
compared to actual that is happening in the field. Excellent loan performance in Cambodia is very
encouraging pointing out to the vital role microfinance can play in popularizing biogas technology. It is
also clear that government support is vital in any country to promote the domestic biogas sector.
2.3.2 Parallel sessions A-E
Session A: Learning from national domestic biogas programmes in Asia; mapping opportunities for
resourcing of biogas sectors from carbon financing.
Ms Shirley Yuhuan Shen and Mr Keshav Das
Rationale:
A number of countries in Asia including Cambodia, Vietnam, Nepal, China, India, Bangladesh and
Indonesia have gained specific experience on carbon financing of domestic biogas programmes, both in
the compliance and voluntary market. With the end of 2012 approaching, the new rules on offsets
guiding the EU ETS, development of new market mechanism, standardised baseline, NAMAs, Japan's
Bilateral Offset Crediting Mechanism (BOCM), and emerging schemes in Korea, China and Australia
require examination for implications on carbon markets and effects on biogas carbon development.
Key-questions:
1 What are the lessons learned from the current carbon finance domestic biogas projects in Asia and what are
the good practices for making biogas carbon finance project a success and receiving timely carbon revenues?
2 What will be the future carbon market instruments, which could be the “best fit” to generate sustainable
financing for biogas programme?
Various presentations were made during the session focusing the above key questions.
Mr Jihua Tang, ID, China, on his presentation “Developing biogas programme in China: Current
difficulties and way forward beyond 2012” highlighted that sharing carbon credits is crucial. The sharing
mechanism of carbon credits revenues should be based
on commercialization and sustainability so that
innovative use of carbon revenue for plant installation-
up scaling and maintenance can be carried out.
Mr Harry Clemens, Hivos, the Netherlands on his
presentation “Does carbon finance work for domestic
biogas programme in Indonesia: Issues and concerns”
stated that data management and quality survey (by
project developers and third party) is crucial for making
a successful project. Mr Clemens also identified that
carbon commercialization is challenging due to the involvement of multiple players in the carbon
development process.
18
Mr Eric Buijsman, Carbon Consultant, on his presentation “Why did we select Gold Standard pathway to
develop Cambodian biogas project?” shared that GS-VER pathway is most preferred in the current
market situation due to the credibility, applicability, appropriateness of GS-VER pathway and its
provision to measure strong co-benefits, retroactive crediting period, GS is easily approachable –less
bureaucratic, premium value of carbon credit.
Ms Suzanne Chew, Nexus-C4D, Singapore, on her presentation “How did we succeed in GS-VER in
Vietnam?” indicated that a strong and robust organization structure for monitoring and data
management, programme management is necessary. The organization modality should also be
collaborative but not competitive.
Mr Raju Laudari, AEPC, Nepal, on his presentation “Mixed success in Nepal: Issuance of biogas carbon
credits and why are we delayed in registering the biogas PoA in Nepal?” stated that carbon development
needs to be pragmatic. Development of appropriate project design is the key and to manage the carbon
project, one should also have strong and robust financial model. Another key is commitment of project
proponent and carbon expertise can’t be fully ‘outsourced’.
Mr Md. Wahidur Rahman, IDCOL, Bangladesh, on his presentation “Bangladesh’s experience on
domestic biogas carbon project development” shared the Bangladesh carbon project development
experiences and said that having internal carbon expert is important for successful project development
(completely relying on external consultants is not advisable). Besides, he stressed upon the importance
of data management and quality survey (by project developers and third party) is crucial.
Mr Praveen Urs, TÜV Rheinland, China, on his presentation “Is it rationale to blame DOE for delayed
registration and issuance?” identified a few reasons for delayed registration of carbon projects. He
indicated that poor quality of consultants, limited understanding of UNFCCC and GS-VERs by project
developers, poor technical qualification of DOE/auditors are a few key reasons for delay.
Ms Suzanne Chew, Nexus-C4D, Singapore, on her presentation “What will be the future carbon market
instruments, which could be the “best fit” to generate sustainable financing for biogas programme”
believed that in the current market situation the focus should be on the development of pro-poor
project like biogas as there is a promise and future for projects with strong development impacts and
co-benefits.
The following conclusions resulted from the discussion in this session:
Key question 1: What are the lessons learned from current carbon finance domestic biogas projects in
Asia?
 Carbon development needs to be pragmatic
 Project design and fundamental should be strong
 Financial model should be robust
 Project owners must be committed: carbon expertise can’t be fully ‘outsourced’.
 Data management and quality survey (by project developers and third party) is crucial
 Limited awareness, capacity of project developers, DOEs
 Reasons for delay
 Poor quality of consultant
 Limited understanding of UNFCCC and GS-VERs by project developers
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 Poor technical qualification of DOE/auditors
 DOEs are taking jobs without sufficient human resource
 Fast changing rules and regulations of UNFCCC
 Timely actions and avoid delay
Key question 2: What are the good practices for making biogas CF project a success and receiving timely
carbon revenues?
 A strong and robust organization structure for monitoring and data management, programme
management is necessary (collaborative –not competitive).
 Have internal carbon expert (completely relying on external consultants is not advisable).
 VER pathway is most preferred in the current market situation (credibility, applicability,
appropriateness, provision to measure strong co-benefits, retroactive crediting period, GS is
easily approachable –less bureaucratic, premium value of carbon credit)
 Contextualization: How to apply carbon principles to local context
 Sharing carbon credits is crucial (commercialization and sustainability –innovative use of carbon
revenue for plant installation-up scaling and maintenance)
 Share experiences and lessons learned and establish a network for such activity and start
advocacy for promoting and developing pro-poor projects like domestic biogas
Key question 3: What will be the future carbon market instruments and what will be the best fit to
generate sustainable financing?
 Currently, carbon market at the bottom low (poor price and over supply of credits in the EU
ETS).
 For the next few years VER could be a reliable pathway (Price: up to 11,5 EUR, based on quality
and type of project)
 Develop pro-poor project like biogas as there is a promise and future for projects with strong
development impacts and co-benefits
 Financial innovation for domestic biogas
Develop hybrid financial model (combining carbon finance, credit financing, insurance credits).
 Start activities as market readiness effort to meet the new market mechanism (sector-wide
regional project development in biogas and/or national programme development under
NAMAs).
 Need a common platform for knowledge sharing and start market readiness activities
The parallel session has also acknowledged the formation of the Sub-Working Group on Carbon
Financing of Domestic Biogas Programmes under the Energy for All initiative of Asian Development
Bank. The first SWG-CF Meeting Sub-Working Group on Carbon Financing was held on November 21,
2012 in Chengdu, China, consisting of practitioners having different nationalities and having technical,
commercial, policy and administrative experiences observers from ADB, WB, GS, KfW. The group
decided to establish four intervention areas, in which the SWG-CF will start its activities, viz., (a)
Technical area, (b) Market evolution, (c) Help desk and (d) Project specific experiences (see graph):
20
Mr Jihua Tang, Initiative Developement; Mr Harry Clemens, Hivos; Mr Eric Buijsman; UNDP; Ms Suzanne
Chew, Nexus Carbon for Development; Mr Raju Laudari, AEPC Nepal; Mr Md. Wahidur Rahman, IDCOL
and Mr Praveen Urs, TÜV Rheinland are the members of the Sub-Working Group.
Session B: Development of smaller, pre-manufactured and larger biogas plants for productive use
Mr Zuzhang Xia and Mr Saroj Rai
Participation, Introduction and Presentations
The session had around 20 participants from different countries. Mr Zuzhang Xia from the Energy for All
Partnership Secretariat, a co-moderator of the session introduced the session making a PowerPoint
presentation on the objective.
This introductory presentation followed with a 15-minute question-answer session for Mr Sanne Castro
from SimGas, the Netherlands, who had a presentation on product development in the plenary session,
earlier on that day. Mr Prakash C. Ghimire from SNV Bhutan made a presentation titled “Market
Development of Domestic Biogas Plants through Technical Innovation” reporting on updates on the
result of the study done by the Expert Group on Technical Innovation under the Energy for All Working
Group for Biogas. This presentation was on behalf of the Group,
prepared by Mr Jan Lam and Mr Prakash C. Ghimire, SNV.
A series of five presentations were then made by Mr Abdul
Gofran, Grameen Shakti, Bangladesh; Mr Zhang Tieyao, Hongqi,
China (translated by Mr Wu Libin, BIOMA, China); Mr Bounthavy
Sengtakoun, SNV Lao PDR; Mr Khagendra Khanal & Mr Bishnu
Belbase, Nepal and Mr Bui Van Chinh, Vietnam.
•Good practice
•Lessons learned
• Tailor-made
supports through a
web-portal in E4ALL
•Trading
•Policy
•Guidelines
•CDM
•GSV
•NMM
•meths
Technical Area
Market
Evolution
Project specific
experiences
Help Desk
21
The presentations covered different types of biogas product development initiatives that are being
carried out in different countries to meet different generic or sometimes very local problems like
earthquake risk or flooding problem. The designs were ranging from 1 cubic metre plastic bag to 500
cubic metre plastic sheet digesters.
Discussion and result
The floor was then opened for discussion and question-answer. Mr Saroj Rai, SNV Nepal, facilitated the
session and asked some questions to see if conclusions being drawn were in the right direction. For
some points like going for plastic digesters that are rather cheap and being promoted as interim
solutions, there was a strong difference of opinion.
Further discussion continued and the co-moderators closed the session thanking everyone and saying
that a report will be drawn around the 3 key questions and other important points discussed and
presented in the plenary. The result of the session was thus presented in the plenary.
Key questions Conclusions
What are the barriers for product
development and commercialisation?
• Awareness among prospective users and their hesitation to go for
new products
• Cost of new products in comparison to existing designs and other
cooking solutions
• Insufficient technological knowledge on peripheral areas like in
handling siltation, electricity generation, etc.
• Financers’ hesitation in financing of new products
• Expectation of subsidy (even for commercial projects).
What are the lessons learned and best
practices?
• Everything takes time! Go slow and steady!
• Difficulty in balancing between speed and quality.
• Cost reduction is possible through optimisation of plant designs
and use of special materials
• Still room for optimizing in plant structure or in use of special
techniques or materials
• Innovation in promotion like cross-visit of users help to improve
effectiveness of awareness among prospective users.
Importantly the group also indicated that learning-sharing in product development is taking place with
increasing pace and effectiveness. There is also a need for promoting temporary solutions for short term
needs except in situation where it may bring a bad name to biogas and, product development is a
process rather than an event.
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Session C: Opportunities for the use of bio-slurry
Mr Rajesh B. Shrestha
Introduction:
Mr Rajesh B. Shrestha of SNV moderated the parallel session
and introduced the objectives of the session. In addition to
biogas, bio-slurry is also an equally important product of a
biogas plant. Despite of its immense potential benefits to
farm productivity and environmental protection it still
remains as a difficult product and even an afterthought in
many biogas programmes. Significant work has been carried
out in countries like Bangladesh, Cambodia, Nepal, India and
China on the management and utilization of bio-slurry. The
success stories and practices are yet to be widely disseminated and adopted so that the full potential
benefits of bio-slurry are utilized.
Rajesh outlined a plethora of potential opportunities in relation to bio-slurry use:
• Sky rocketing price of chemical fertilisers and its adverse effects on soil condition over long term
application
• Organic farming gaining popularity and becoming profitable
• Organic farming and urban farming provides opportunities for alternate use of bio-slurry and
provides marketing opportunities
• Gradually increasing awareness among farming households about the benefit of bio-slurry
• Increasing scientific knowledge base and proven field evidence of yield gains and soil
improvement from use of bio-slurry
• Increasing portfolio of better slurry management practices becoming available
• Most countries where National Programmes on Domestic Biogas is being implemented are
involved in bio-slurry research and application trials adding to the growing knowledge base.
Key questions
Six presentations were made by participants from respective countries focussing on the following three
key questions:
1 What are the strength and weaknesses of bio-slurry and why are farmers still predominantly using chemical
fertilisers?
2 What are the best channels to promote proper management and wider application of bio-slurry (government
and private sector) among rural farming households?
3 How best to promote/market bio-slurry for alternate and off farm (packed organic manure urban and peri-
urban use, livestock/fish feed additives and medium of growth for mushrooms) use when farmers produce
more bio-slurry than they require for their own use?
Mr Rana Amir Shafique, Area Manager of Pakistan Domestic Biogas Programme, Pakistan made the first
presentation in which he highlighted the results of the first phase of research on bio-slurry use on some
vegetables and cereals in collaboration with the Ayub Agricultural Research Institution. This was in
comparison to the use of farm yard manure and chemical fertiliser. Results indicated that bio-slurry can
23
substitute 50% of the use of chemical fertiliser and still provide very good yield but not 100%. There is
still a predominance of use of chemicals due to its ease of use, high concentration of nutrient and
effective marketing network. In order to make bio-slurry more popular efforts will be required towards
increased awareness raising of farmers as well as of the extension system in the country.
Mr Apurba Kanti Chaudhury, Principal Scientific Officer, BARI, Bangladesh stated that on laboratory, on
station and on farm tests of bio-slurry were carried out on different crops. He stated that there was an
immense potential for the use of bio-slurry in Bangladesh. BARI is also conducting training, extension
and demonstration activities in relation to use and management of bio-slurry. More extension and
training activities jointly with government, private sector and NGOs is required to promote bio-slurry.
Potential is also emerging for the use of bio-slurry in urban agriculture, fish raising and as cattle feed
supplement.
Mr Phuong Dara from SNV Cambodia informed that 95% of bio-digester owning households in Cambodia
use bio-slurry as a result of extension, training, farmer to farmer networking and strong support from
the Government. Composting of bio-slurry to enhance its effectiveness is still low among user farmers.
He pointed out that more needs to be done in relation to motivation of farmers, Government workers
and coordination between many stakeholders such as NGOs. Integration of bio-slurry use even at the
policy level must be attempted.
Mr Rajeev Munankami, SNV Bangladesh, highlighted the opportunities for alternative application of bio-
slurry in Bangladesh. An internal audit carried out in 2012 indicated that 15% of biogas households use
bio-slurry without composting, 36% use it after composting, 43% dry it out before use in field and 15 %
use it as fish feed. In this audit 36% of the user households also indicated that bio-slurry is difficult to
carry to the field. Some of the alternative use of bio-slurry was in the form of fuel (dry into cakes to burn
for cooking), shade dried, packed and sold for urban agriculture use and as fish feed. Other possible
alternative uses could be for soil conditioning, as a starter for composting, seed pelleting, pesticide
application, for algal production, as animal feed, for mushroom cultivation and earthworm rearing.
Mr Lok Nath Ghimire, Managing Director, Biogas and Energy Development Company Limited and
President Nepal Biogas Promotion Association, Nepal, presented that besides the value of bio-slurry as a
high value organic fertiliser it can also be effectively used as pesticides for organic farming. As toilets are
connected to a bio-digester in Nepal many farmers hesitate to handle the bio-slurry. He also stated that
most often the amount of bio-slurry from the household bio-gas plant is insufficient for total reliance on
it. A slurry model village is being piloted in Pokhara, Nepal, to promote wider application of bio-slurry.
The approach will be gradually replicated over other regions as well. Use of bio-slurry for urban farming
and for organic farming is potential opportunities in Nepal.
Mr Tshewang Namgay, National Organic Programme, Department of Agriculture, Bhutan, said that the
programme is promoting organic farming as the Government also aims to achieve 100% organic farming
in Bhutan by 2020. So far the NOP has been promoting liquid manure from its bio-digesters. Despite of
many positive aspects of use of bio-slurry a detrimental aspect could be the large amount of cost
involved for farmer to construct a bio-digester in order to get bio-slurry.
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Discussion
The presentations were then followed by a discussion session. The summary of the discussion was
presented by Mr Rana Amir Shafique in the plenary session. The summary is presented below:
What are the strengths of bio-slurry? • Demonstrated (scientific and in practice) higher yield in
agricultural productivity
• Diverse mode and application
• Easy availability of raw materials
What are the weaknesses? • Lack of awareness about the benefit of bio-slurry
• Difficulty in management
• Social/cultural taboos limiting use (management when
toilet is connected)
Why do farmers predominantly user chemical
fertilisers?
• Easily accessible
• Ease of application (less quantity)
• Highly subsidised
• Contents highly standardised
• Farmers unaware of negative affect over long term use
What are the best channels to promote bio-
slurry amongst households?
• Policy to promote bio-slurry at national level
• Farmer to farmer methodologies
• Increased involvement of private sector
• Media involvement/evidence based advocacy
How best to promote/market bio-slurry for off
farm use?
• Make it a viable business case for private sector to
market
• Promote and encourage the alternate use of bio-slurry
• Promote bio-slurry as an equally important product of a
biogas plant
Any other important result/message? • Value addition in bio-slurry
• Linking up with organic branding initiative
• NoX reduction potential
• Knowledge management and R&D
Session D: Required terms and conditions of credit facilities for biogas households and MFIs
Mr Maxime Bouan and Mr Sundar Bajgain
Key questions
The credit session was started with a brief introductory presentation by Mr Sundar Bajgain, SNV, in
which he highlighted the importance of credit facilities in all national biogas programmes. He also
facilitated the session presenting four questions to be discussed and come out with the appropriate
recommendations.
1. What are the appropriate terms and conditions of biogas credit for households?
2. What are the appropriate terms and conditions of biogas credit for MFIs?
3. What are the lessons learned on biogas credit in terms of availability/sources of funds, loan repayment
practices and availability/selection of MFIs?
4. What are the necessary TA requirements for implementing/extending biogas microcredit programs
25
Presentations were made by participants based on the above four questions.
Mr Maxime Bouan from Blue Orchard presented about the
planned MIFA credit funds. He presented that the MIFA has the
following objectives:
 To provide financing (senior and subordinated loans)
mainly in local currency on commercial terms to MFIs,
especially Tier II and Tier III MFIs, in emerging Asian and
Central Asian markets.
 Strengthen financial intermediaries and encourage them
to lend to MSEs as well as to low income households.
 Foster responsible finance principles in the region.
 Further develop local financial markets in view of sustainable and market based principles
The fund size will be up to USD 100 million and anchor investments will be made by IFC, KfW and the
German Federal Ministry of Economic Development and Cooperation (BMZ) and the EU.
The main eligibility criteria for receiving the fund are:
 At least 1 year of operations
 Gross Loan Portfolio > USD 1 million
 Financial requirements:
o Portfolio at Risk (overdue more than 30 days) ≤ 5%
o Annual Write-offs ≤2%
o Regulatory Tier 1 Capital ≥ 8% (Banks) / ≥ 12.5% (NBFIs) / ≥ 15% (NGOs, Co-operatives
and unregulated institutions).
The second presentation was from Mr Formanul Islam of IDCOL on the biogas credit system in
Bangladesh. As availability of funds for biogas credit is not a problem in Bangladesh and well-structured
MFIs are already in place, Bangladesh is in a good position with access to biogas loan. He, however,
stressed that quality of digesters and after sales services is important for the repayment of the loan. He
further warned that smaller MFIs are vulnerable in making repayments on time and lack of collateral
poses a great repayment risk.
The third presentation was from Mr Christudas KV, ESAF Microfinance & Investments Pvt Ltd. India. He
presented the general practice on biogas credit for small size digesters in India:
 Loan amount: Rs 30000/- ($ 535)
 Term of the loan: 2 year
 Repeatability: option to ‘top up’ after the first year; hence the lifecycle loan is not affected
 Insurance: coverage up to total exposure
 MFI loan officers/field officers to be trained on monitoring of performance of the digesters.
 MFI should conduct periodical review of digesters performances and hold awareness programs.
26
In his presentation Mr Rajendra Pradhan of SOLVE Nepal proposed that if biogas is attached to the
toilet, then there should be a provision of reduced interest rate. The repayment rate on biogas is 99%
however, he further recommended to:
 Remove the loan limitation barrier
 Build the capacity of MFIs including the technical know-how,
 Availability of credit funds as required by MFIs with proper monitoring and supervision,
 Need a consistent policy on the availability of the credit fund. Only the AEPC has fund for the
Bio-gas sector in Nepal.
 Need to develop at least one biogas technical person within the MFIs.
 Introduction of new and innovative technical options.
Mr Iggi H. Achsien, Advisor of Bank Syariah Mandiri, Indonesia, introduced the Bank Syarih Mandiri and
its biogas credit programme with the support from UNEP Facet programme. He outlined that micro
credit amount can be up to 2,000 USD and duration can be for three years. The interest rate will be 22%
of which FACET will subsidize 13% and biogas household need to pay 9% per year. In case of bulk loan
managed by MFIs, than the bank will charge only 13% to the MFI and user still pay 9%. There will be no
collateral required however; Facet fund will be used for loan guarantee.
The sixth presentation was from Mr Souphavanh Keovilay from MAF/BPP, Lao PDR. Although a biogas
credit system is not well placed in Lao DPR, some attempts were made in the past to establish a MFI and
in operating biogas lending.
Discussion
After the presentation a discussion session was held and following conclusion and conclusions were
drawn.
Key question 1: What are the appropriate terms and conditions of credit for households?
 Low interest rates (<10% flat) and longer tenor (> 2 years or include refinancing possibility)
 Appropriate collateral for MFI and Client: biogas “product” plant as collateral, insurance,
household fixed revenue.
Key question 2: What are the appropriate terms and conditions of credit for MFIs?
 Specific funding: biogas-friendly investor, appropriate funding to suit the MFI’s business plan.
 Subsidized interest rates to accompany sector development
 Deal with local currency if fund is received from external source
Key question 3: What are the lessons learned on credit?
 Quality checks to be done by external party, but MFI must also ensure proper training of clients.
 After Sales Service is key to ensure repayment: proper coordination needed with national biogas
program.
 Subsidy is crucial, but fraud management is key.
 Repayment of the credit must come from additional income/savings.
27
Key question 4: What are the necessary TA requirements?
 HR technical training to assess biogas project.
 Feasibility studies and product development.
 Quality assessment for biogas plants through external party and M&E
 Support coordination efforts
Session E: Enabling environment for domestic biogas development
Mr Kailash Khandelwal and Mr Anuj Joshi
Introduction
Domestic biogas programmes are being implemented in a number of countries in Asia including
Bangladesh, Bhutan, Cambodia, China, India, Indonesia, Lao PDR, Nepal, Pakistan and Vietnam. The
biogas sector development in different countries is at different stages and being a multidisciplinary
subject it might fall across the jurisdiction of more than one
ministry or department. Each country made various kinds of
interventions and learned lessons with respect to creating an
enabling environment in the biogas sector.
An enabling environment includes a set of interrelated
conditions and practices—including Government regulations,
policies and incentives, standards and practices, fiscal,
institutional and informational frameworks et al - that impact on
the capacity of all required actors (including private sector and civil society) to engage effectively and
sustainably in the domestic biogas sector. Identification of key interventions suited to a further
accelerated development would assist the countries in formulating new strategy and action plan.
The parallel session was moderated by Mr Kailash Khandelwal, India, and Anuj Dhoj Joshi, SNV Nepal.
Discussion
Mr Joshi started the session defining and briefly highlighting the importance of an enabling environment
for the development of an efficient and effective biogas sector. He shared that there will be country
presentations highlighting experiences on the following key questions:
1 What key interventions have been implemented to create an enabling environment for the biogas
sector development?
2 What are the lessons learned and good practices for contributing to a more conducive enabling
environment for biogas sector development?
There were eleven presentations and the outcomes are presented below:
Mr Mohammad Bazlur Rahman, Deputy Secretary, SREDA Cell, Power Division, Ministry of Power,
Energy and Mineral Resources, Bangladesh highlighted that an enabling environment does exist but
needs to be strengthened. Also, development partners need to play stronger role in the effort of
28
strengthening the enabling environment. Overall, biogas sector development is getting momentum in
Bangladesh.
Mr Chimi Dorji, Department of Renewable Energy, Ministry of Economic Affairs, Bhutan provided a brief
introduction about renewable energy initiatives in Bhutan and shared how the Department of Energy is
supporting the overall sector development. He also highlighted on the evolution of the biogas project in
Bhutan.
Mr Xavier Bambara, Coordinator, National Biogas Programme, Burkina Faso shared that the switch from
traditional donor/product driven projects to demand/client driven programme takes time and effort.
Also, promotion needs to be followed by marketing and actual construction without delay. He explained
how, in Burkina Faso, the national biogas programme has been able to involve members of the
Government and opinion leaders in construction of biogas digesters.
Ms Lam Saoleng, Programme Coordinator, National Biodigester Programme (NBP), Cambodia shared the
key interventions and lesson learned of NBP Cambodia. The Government, MAFF and MIME have specific
actions to promote biogas and support renewable energy sector. For instance, MAFF has put NBP as one
of the priority programmes and has established a Steering committee to guide and provide advisory
support to NBP.
Mr Shi Guozhong, BIOMA, China highlighted about the general situation, Governments attention and
different support provided for effective and sustainable development of domestic biogas sector in
China.
Mr Kailash C Khandelwal, Consultant, India presented the importance of an enabling environment and
shared about India’s experiences including the development of the domestic biogas programme. He
stressed how poor quality, misinformation and misappropriation as well as mixed experience of NGOs
involvement have been a problem.
Mr Edi Wibowo, Ministry of Energy and Mineral Resources, Republic of Indonesia presented the overall
energy condition (2011) in Indonesia and the biogas sector situation. He shared that the Government of
Indonesia is committed to reduce the greenhouse gasses emission to 26% by 2020 and biogas is
projected to be one of the priorities to achieve the target of emission reduction.
Mr Bastiaan Teune, Sector Leader RE SNV Laos, opined that for creating an enabling environment in a
country how national policies need to be in place, agreed, well communicated and enforced as well as at
the international level donor harmonisation/basket funding would assist. He shared his experiences and
problems faced in practice in the context of Lao PDR.
Mr Sajjad Haider, Programme Manager Pakistan Domestic Biogas Programme, Pakistan presented
activities that the programme has carried out to support an enabling environment for the biogas sector
development in Pakistan. He mentioned that the programme continues to need donor funding and
assistance from the Government in the future.
Mr Kithsiri Dissanake, Sustainable Energy Authority, Sri Lanka provided an overview of the power sector
in Sri Lanka. Biogas technology was first introduced to Sri Lanka in the 1970s but it was mainly on
research basis. Most of the biogas units already constructed were abandoned due to poor maintenance
29
and technical failures. He shared that the state sector participation in promoting biogas system need to
be enhanced to tap the potential.
Ms Nguyen Thi Minh Nguyet, Coordinator Biogas Programme, Vietnam shared how the Programme has
contributed in developing the biogas sector in Vietnam through capacity building, institutionalization
and decentralization & outsourcing of QC and training activities commercially. She explained that the
Ministry of Agricultural and Rural Development (MARD) plans to reduce 20% total GHG emission (18.87
mil ton CO2) by 2020.
Discussion
Mr Khandelwal then facilitated the discussions that followed. The following conclusions were agreed
upon by the group and Mr Sajjad Haider presented them in the plenary session:
Key question 1: Key interventions to create an enabling environment
 National policy, standards and regulation
 Government support (priority), commitment and incentive for the users (certain % and certain
period)
 Credit availability through financing institutions at concessional rates
 External financers support including donors and carbon credit.
Key question 2: Lessons learned and good practices
 Nodal organisation to coordinate all RE interventions
 Awareness of the whole society
 Market mechanism development for the sector
2.3.3 Plenary reporting session
Mr Jiwan Acharya, ADB, chaired the session.
Parallel session A - Progress in Carbon Financing was presented by Mr Keshav Das. Session B - Product
development of smaller, pre-fabricated and larger size biogas plants for productive was presented by Mr
Saroj Rai. Session C - Opportunities for the use of bio-slurry
was presented by Mr Rana Amir Shafique. Session D -
Required terms and conditions of credit facilities for biogas
households and MFIs was presented by Mr Florian Arneth.
Session E - Enabling environment for domestic biogas sector
development was presented by Mr Sajjad Haider.
The presenters were requested to come to the stage and the
Chairman asked questions to the presenters:
To Mr Das: do you really think carbon finance will work?
Answer: In COP 15 Copenhagen the same question was asked. Uncertainties exist but we have to be
ready and lots can still be done so that once the market is ready we will benefit.
30
To Mr Rai: do you really think existing technology can be optimized rather than making a breakthrough?
Answer: In reality all were busy in small step wise innovations and optimization but a breakthrough is
also needed. New materials are also becoming available that might revolutionise design.
To Mr Shafique: what exactly do we need to do to make bio-slurry mainstream? Do you see if more
needs to be done? Answer: Bio-slurry is a small component but makes a big difference. If bio-slurry is
not properly managed neighbouring household may even
complain for the mess it has created. In many cases it is
more valuable for farmers than gas as it has the double
function of nutrient and soil conditioner and at long term
substitute chemical fertilizer. Research results require wider
dissemination however.
To Mr Arneth: Every year there is a presentation on biogas
credit fund by KfW, when exactly will this actually happen?
How long will it take to activate the credit fund once it is
approved? Answer: It is still under process, discussion with
shareholder is going well and additional partners may be
joining in. It may be operational in 2013. How much time to activate it after credit fund is approved?
The credit fund will be ready to disburse in the first day.
To Mr Haider: Certain countries are advanced in promoting biogas, some are in the middle way and
some are initiating. Give us some examples of things that countries should not do? Answer: nature and
need of each country vary and these factors come into play when we talk about what kind of policy is
required. In some areas higher subsidy may be required while in others a more market driven approach
may be required but there may be an array of options for each country depending on local conditions.
2.3.4 Update on E4All working group on domestic biogas
Mr Zuzhang Xia, Energy for All Partnership.
Mr Xia introduced Energy for All Partnership to whosoever was new to this
network. He introduced E4All partnership as a regional, multi-stakeholder
platform for networking, cooperation, sharing experience and lessons, and
overcoming barriers and challenges to scale up successful models for
energy access in the Asia-Pacific region.
E4All goal is to provide access to reliable and affordable modern energy
services to 100 million people in Asia and the Pacific by 2015. He also
outlined some of the benefits that various partners will avail:
 Technology suppliers and entrepreneurs: access to customers, investors, financial institutions
 Project developers: access to business development services, advice on project structuring,
access to financing, networking
 Investors & financial institutions: project pipeline development, knowledge sharing on
technologies, business models, financing mechanisms
31
 Donors & development agencies: improved coordination, exchange of best practice approaches,
strategies for scaling up access to energy
 All: Platform for market/sector development
Currently there are 180+ members in the partnership among which 30% are public institutions, 60%
private sector and 10% NGOs organized in the themes of cooking and heating, lighting, and electricity.
Xia also introduced the E4ALL Domestic Biogas Working group with more than 50 members and
facilitated by SNV. Under this working group various training, R&D (such as on fibre glass digesters) and
consultations were conducted. The eligibility criteria of organisations to become a member of E4All are:
 Helps access to modern energy for the poor in Asia
 Willing to contribute to the goal and target of the Working Group on Domestic Biogas
 Willing to share information with other WG members
Interested organisations and individuals may register online and join Working Group activities:
www.energyforall.info
2.3.5 Plenary Closing session
Mr Wim van Nes, SNV, Renewable Energy Network Leader.
Workshop results and way forward
Wim briefly revisited the activities of the three days of the workshop which were quite interesting and
informative.
Mr Van Nes summarized on whether the objective 1 of the
workshop (To evaluate the performance of the national programmes
on domestic biogas and to assess the outlook of these programmes)
was achieved. In general ‘many contextual issues made it hard to
copy and paste experience through countries and regions, for
example in gender. On the demand side large market potential
exists and will continue to exist despite of the changes taking place
in culture and life style. He also observed that there is still lack of
awareness among the potential biogas households on the full
benefit of biogas.
On the supply side, it was felt that there is a need to mobilise strong private sector organisations and
perhaps allow for a higher margin of profit in the market. A strong need to mobilise financial institutions
to provide credit was also felt essential. Similarly some of the supply side issues pertained to lack of
skilled workers in rural areas and the slow speed of R&D and transfer of technology.
In relation to the enabling environment, renewable energy/biogas is increasingly being recognized in
national policies and through establishment of dedicated government institutes. Regulation and quality
assurance is gaining importance and government is also increasingly allocated dedicated budget to this
sector. While on the other hand subsidies for fossil fuel and chemical fertilizer still continues to be
significant.
32
Mr Van Nes informed the workshop that 460,716 domestic biogas installations have been set up so far
in the 8 Asian countries where the domestic biogas sector programme is being supported by SNV along
with its partners. 56,802 installed in 2011 with and operation rate of 90%.
As for objective two of the workshop the key observations in carbon financing was that progress is made
on CDM registration and VGS projects while all the steps related to carbon financing seem to be
complicated, time consuming and costly and that it implies a strong quality control system. A sub
working group on carbon financing (SWG-CF) has been established within the E4ALL partnership to
facilitate knowledge and experience sharing.
On product development, great dynamics in the private sector is being observed in relation to new
construction materials, feed stock, exploring of different niches in the market. A need for
standardization and certification system is now becoming more apparent.
The full potential of bio-slurry is still not been tapped and will require more R&D and extension. There
are still difficulties to market the advantages of bio-slurry compared to chemical fertilizer due to its ease
of use and management and the accompanying subsidies. Improper management of bio-slurry could be
a problem in some areas.
As the up-front cost will remain considerable a big need for credit facility will remain. It was hoped that
the long proposed regional debt fund may contribute to the fulfilment of this need.
Important role is required to be played by the governments to improve the enabling environment for
example on policy, regulation and standardisation and M&E. Subsidy of end users continues to remain
important to promote RE/biogas.
2.3.6 Evaluation and closing of the workshop
Participants were requested to fill in a questionnaire to evaluate the workshop and its sessions. The
result of the evaluation is presented in Annex IV.
Mr Anand Narayan, Selco Foundation, India, presented the closing
remarks. He stated that his expectation to get as much information on
biogas was fulfilled. He compared this workshop to the ‘Woodstock’
and that it had good reason to continue in coming years. There was an
atmosphere where participants freely shared information. Sessions
were good and helped gain deep insight on different aspects of biogas.
Field visit experience on the second day of the workshop was
outstanding and also provided an impression on the execution and
biogas in China. Long term potential of the sector is very high as
agriculture will not go away and animals will keep on existing. Biogas
thus has a strong hope as a source of clean energy. The workshop itself
was also meticulously organised. He hoped that all participants will
take the blue flame of biogas to their home countries.
33
Annex I – List of Participants
Name Organisation Job title E-mail address
From Bangladesh:
Mr Bazlur Rahman Power Division, SREDA Cell Deputy Secretary engr.bazlu@gmail.com
Mr S.M. Formanul Islam Infrastructure Development Company Ltd (IDCOL) Deputy CEO fislam@idcol.org
Mr Wahidur Rahman Infrastructure Development Company Ltd (IDCOL) Assistant Director (Technical) wahid@idcol.org
Mr Apurba Kanti Choudhury Bangladesh Agricultural Research Institute (BARI) Principal Scientific Officer bd_apurba@yahoo.com
Mr Abdul Gofran Bangladesh Biogas Development Foundation (BBDF) Chairman gofran@dhaka.net
Mr Mahmud Ahmed Grameen Shakti (GS) Divisional Manager gsrshariatpur@yahoo.com
Mr Ruhul Quddus Rural Services Foundation (RSF) Executive Director ruhul.quddus@rsf-bd.org
Ms Tasnima Siddique Shubashati Vice President siddiquefaria@hotmail.com
Mr ATM Mahbubul Alam Win Sources Limited Managing Director mahbub@wintelbd.com
Mr Rajeev Munankami SNV Senior Advisor Renewable Energy rmunankami@snvworld.org
Mr Al Mudabbir Anam SNV Advisor Renewable Energy aanam@snvworld.org
From Bhutan:
Mr Chhimi Dorji Department of Renewable Energy (DRE) Officiating Chief Engineer chhimi08@gmail.com
Mr Tshewang Namgay Department of Agriculture, National Organic Programme Research Officer tnamgey@gmail.com
Mr Dorji Gyaltshen Bhutan Biogas Project Project Manager dorjigyel66@gmail.com
Mr Kencho Wangdi SNV Member BBP Steering Committee kwangdi@snvworld.org
Mr Prakash C. Ghimire SNV Biogas Advisor pghimire@snvworld.org
From Burkina Faso:
Mr Xavier Bambara Programme National Biogaz, Burkina-Faso (PNB) Programme Coordinator xavierbambara@hotmail.com
Mr Jan Lam SNV Sr. Advisor Biogas, West & Central Africa jlam@snvworld.org
From Cambodia:
H.E. Nou Muth MAFF, Adviser Chairman NBP Steering Committee admin@nbp.org.kh
Mr Uy Kamal Ministry of Environment, Climate Change Department Head of GHG Inventory and Mitigation Office kamaluy@hotmail.com
Mr Sean Thorninn AMRET Head of Financial Services thorninn.sean@amret.com.kh
Ms Saoleng Lam National Bio-digester Programme (NBP) Programme Coordinator saoleng@nbp.org.kh
Mr Phuong Dara National Bio-digester Programme (NBP) Bio-Slurry Extension Officer dara@nbp.org.kh
Mr Petr Schmied People in Need (PIN) Head of Mission to Cambodia petr.schmied@peopleinneed.cz
Mr Lutz Meyer SNV Consultant Renewable Energy lmeyer@snvworld.org
From China:
Mr Li Qian Biogas Institute of Ministry of Agriculture (BIOMA) Director-General biogaskyc@caas.net.cn
Ms Hao Xianrong Division of Energy and Ecology, Department of Science and
Education, Ministry of Agriculture
Director haoxr@agri.gov.cn
Mr Liang Baozhong Ministry of Agriculture, Information Centre Reporter
Mr Li Jingming China Biogas Society;
Rural Energy and Environment Agency, MoA
Secretary-General, CBS;
Division Chief, REEA
lijingm@agri.gov.cn
34
Mr Geng Dali Foreign Economic Cooperation Center (FECC), MoA Division Chief gengdali@agri.gov.cn
Mr Zhou Liao Sichuan Provincial Rural Energy Office Assistant Chief, Domestic Biogas Section zhouliao811026@hotmail.com
Mr Zhang Tieyao Chengdu Hongqi Industrial Co. General Manager chinacdhqsy@163.com
Mr Liu Xin Energy and Environmental Development Research Center (EED) Managing Director liuxin@eed.com.cn
Mr Hu Guoquan BIOMA Assistant Director-General huguoquan1@hotmail.com
Mr Shi Guozhong BIOMA Senior Engineer brtc666@yahoo.com.cn
Mr Hu Qichun BIOMA Director/Research Fellow qichun204@163.com
Ms Zhao Yuexin (Cynthia) BIOMA Deputy Director, R&D 584742115@qq.com
Mr Wang Chao BIOMA Senior Engineer nybzqzj@126.com
Ms Kate Zheng BIOMA Biogas Expert 985265572@qq.com
Mr Liu Xiaofeng Chengdu Institute of Biology, Chinese Academy of Science Research Fellow liuxf@cib.ac.cn
Mr Yan Zhiying Chengdu Institute of Biology, Chinese Academy of Science yanzy@cib.ac.cn
Mr Gao Lihong Agricultural Engineering Institute
Chongqing Academy of Agricultural Sciences
Director grantsan@163.com
Mr Zhu Jinshan Agricultural Engineering Institute
Chongqing Academy of Agricultural Sciences
Research assistant jszhu@163.com
Mr Wang Guohua Chongqing Rural Energy Office Director lycwgh@126.com
Ms He Weiyuan Chongqing Rural Energy Office
Mr Zhu Hongguang Tongji University Associated Professor zhuhg@mail.tongji.edu.cn
Mr Xu Rui Yunnan Normal University, Solar Energy Institute Associate Professor ecowatch.xr@gmail.com
Mr Xuan Liu Centre for Sustainable Environmental Sanitation, University of
Science and Technology Beijing
PhD Candidate x86liu@qq.com
Mr Jihua Tang Initiative Développement (ID) Carbon Finance Officer j.tang@id-ong.org
Ms Shirley Yuhuan Shen Gold Standard Foundation Regional manager of China & EA shirley@cdmgoldstandard.org
Ms Violet Lo Opportunity International China Board Director and Advisor violetlo@me.com
Mr Praveen Urs TUV Rheinland (China) Ltd. Manager AIE & DOE Global Operations praveen.urs@chn.tuv.com
Mr Henri Phan TUV Rheinland (China) Ltd. Assistant DOE Manager henri.phan@chn.tuv.com
Mr Xu Lei Beijing Yuanda Carbon Assets Investment and Management Co.,
Ltd.
Project Manager carbonxl@126.com
Ms Song Xiaona Beijing Yuanda Carbon Assets Investment and Management Co.,
Ltd.
Project Manager carbonsxn@126.com
Ms Amelie Xiao WWF China Program Office Communication Officer shxiao@wwfchina.org
Mr Zheng Weigang Shaanxi Volunteer Mothers Association for Environment
Protection
Biogas Project Officer sxmmhb@126.com
Mr Pan Junting Northwest A&F University - Shaanxi
Mr Jin Zita Northwest A&F University - Shaanxi
Mr Michael Li BioEnergy Berlin Environmental Engineer info@bebgmbh.de
Mr Zuzhang Xia Energy for All Partnership Secretariat (E4ALL) Access to Energy Specialist xia@energyforall.info
From Germany:
Mr Florian Arneth German Development Bank (KfW) Senior Project Manager florian.arneth@kfw.de
From India:
Mr Anand Narayan Selco Foundation Head, Selco Labs anand@selcofoundation.org
Mr Kailash Khandelwal Consultant advkck@yahoo.com
35
Mr Christudas ESAF Microfinance & Investments (P) Ltd General Manager (Energy & Dairy) chris@esaf.in
From Indonesia:
Mr Edi Wibowo Ministry of Energy & Mineral Resources, DGNREEC Deputy Director for Bioenergy, Engineering
and Environment
edbowo@gmail.com
Mr Eko Bambang Sutedjo MEMR, NTB province (Lombok) Head of Mining & Energy Services esutedjo@yahoo.co.id
Mr Iggi Haruman Achsien Bank Syariah Mandiri (BSM) Advisor iggi.achsien@gmail.com
Mr Sumino LPTP Manager Biogas mino@lptp.or.id
Mr Rob de Groot Hivos, Indonesia Domestic Biogas Programme Programme Manager r.degroot@hivos.or.id
Mr Sundar P. Bajgain SNV Biogas Advisor sbajgain@snvworld.org
From Lao PDR:
Mr Phonepasong Sithideth Ministry of Energy and Mines, Institute of Renewable Energy
Promotion (MEM)
Acting Director of Renewable Energy
Development Division
phonepasong2010@yahoo.com
Mr Sithong Phiphakhavong MAF, Department of Livestock and Fisheries Deputy Director sithongp@yahoo.com
Mr Souphavanh Keovilay Biogas Pilot Programme (BPP) BPP Programme Manager souphavanh@biogaslao.org
Mr Bastiaan Teune SNV Sector Leader Renewable Energy bteune@snvworld.org
Mr Bounthavy Sengtakoun SNV Renewable Energy Advisor bsengtakoun@snvworld.org
From Myanmar:
Mr Thoung Win Myanmar Engineering Society Chairman Energy & Renew. Energy
Committee
ctw12416@gmail.com
From Nepal:
Mr Samir Thapa Alternative Energy Promotion Centre (AEPC) Assistant Director samir.thapa@aepc.gov.np
Mr Raju Laudari Alternative Energy Promotion Centre (AEPC) Manager, Climate and Carbon raju.laudari@aepc.gov.np
Mr Khagendra Nath Khanal Biogas Sector Partnership-Nepal (BSP-N) Assistant Director knkhanal@bspnepal.wlink.com.np
Mr Bishnu Belbase Nepal Biogas Promotion Association (NBPA) Officiating Executive Director bbelbase@nbp-association.org
Mr Rajendra B. Pradhan SOLVE-Nepal Executive Director rpradhandkt@gmail.com
Mr Lok Nath Ghimire Biogas & Energy Development Company Ltd Managing Director bbi.chitwan@gmail.com
Mr Anuj Dhoj Joshi SNV Sector Leader Renewable Energy ajoshi@snvworld.org
Mr Keshav C. Das SNV Carbon Finance Advisor kdas@snvworld.org
Mr Saroj Rai SNV Senior Renewable Energy Advisor srai@snvworld.org
Mr Rajendra Shakya SNV Regional Head of Administration – SNV Asia rshakya@snvworld.org
From the Netherlands:
Mr Harry Clemens Hivos Programme Officer h.clemens@hivos.nl
Mr Fred Marree Fred Marree Consultancy Consultant fmarree@snvworld.org
Mr Sanne Castro SimGas BV CEO sannecastro@simgas.org
Mr Eric Buijsman Carbon Consultant ericishier@gmail.com
Mr Wim J. van Nes SNV Renewable Energy Network Leader wvannes@snvworld.org
From Pakistan:
Mr Sajjad Haider RSPN/ Pakistan Domestic Biogas Programme Programme Manager sajjad.haider@rspn.org.pk
Mr Rana Amir Shafique RSPN/ Pakistan Domestic Biogas Programme Area Manager amir@rspn.org.pk
36
Mr Habib Ur-Rehman BETA Pak Managing Partner habib@betapk.org
Mr Rajesh Shrestha SNV Biogas Advisor rshrestha@snvworld.org
From the Philippines:
Mr Jiwan Acharya Asian Development Bank (ADB) Climate Change Specialist (Energy) jacharya@adb.org
Mr Darshak Y. Mehta Asian Development Bank (ADB) CDM Validation Expert dmehta.consultant@adb.org
Ms Fely V. Arriola Asian Development Bank, Energy for All Secretariat Access to Energy Expert farriola.consultant@adb.org
Ms Clarissa M. Dimaculangan CARD Business Development Service Foundation Sr. Program Manager card.bds@cardbankph.com
From Singapore:
Ms Suzanne Chew Nexus-Carbon for Development Alliance Director s.chew@nexus-c4d.org
From Sri Lanka:
Mr Palitha Ranadewa (tbc) Ministry of Economic Development Senior Program Manager palithasedham@gmail.com
Mr O. Kithsiri Dissanayake Sri Lanka Sustainable Energy Authority (SLSEA) Chairman chairman@energy.gov.lk
Mr K.D.N. Weerasinghe Lanka Biogas Association (LBA) Vice President kdnweerasinghe@yahoo.com
From Switzerland:
Mr Maxime Bouan BlueOrchard Finance S.A. Analyst maxime.bouan@blueorchard.com
From Tanzania:
Mr Innocent Mjema CAMARTEC Principal Research Technologist innomjema@yahoo.com
From USA:
Mr Tao Wang World Bank, Carbon Finance Unit Senior Operations Officer twang2@worldbank.org
From Vietnam:
Mr Nguyen Xuan Duong MARD, Department of Livestock Production Deputy Director duongcnn@yahoo.com
Ms Pham Thi Kim Dung MARD, Department of Livestock Production Deputy Head of Planning and Finance
Division
kdtd3d@gmail.com
Ms Nguyen Thi Minh Nguyet MARD, Biogas Program Division Program Coordinator nguyetntm@biogas.org.vn
Ms Nguyen Thi To Uyen Vietnam Biogas Association (VBA) Business Development Coordinator vbavietnam@gmail.com
Mr Bui Van Chinh Vietnam Biogas Association (VBA) Member Steering Committee chinhbuivan@fpt.vn
Ms Thi Ngoc Linh Duong TYM General Director linh_tym@yahoo.com
Ms Dagmar Zwebe SNV RE Advisor/Program Leader dzwebe@snvworld.org
From Zambia:
Mr Lewis Mupeta Bangwe African Development Bank (AfDB) Agricultural Specialist l.bangwe@afdb.org
37
Annex II – Workshop Agenda
International workshop
“Learning from national domestic biogas programmes in
Asia; mapping opportunities for developing and resourcing
of biogas sectors including carbon financing”
20-22 November 2012, Art Senses Hotel and Place, Chengdu,
PR China
Agenda
Monday, 19 November 2012:
20.00-21.30 Welcome reception (drinks & light snacks) at Art Senses Hotel and
Place, Binfen Hall
Tuesday, 20 November 2012:
08.00-09.00 Registration, Art Senses Hotel and Place Ms Rachel Qiu Kun
Ms Fely Arriola
Mr Rajendra Shakya
Mr Fred Marree
Plenary Opening Session facilitated by Mr Zuzhang Xia, Energy for All Partnership, Asia
09.00-09.45 -Opening address by Mr Wang Yanliang, Deputy Director
General, Department of Science & Technology and Education,
Ministry of Agriculture, China
-Welcome address by Mr Li Qian, Director-General, Biogas
Institute of Ministry of Agriculture, China
-Opening remarks by Mr Jiwan Acharya, Climate Change
Specialist (Energy), Sustainable Infrastructure Division,
Regional and Sustainable Development Department, Asian
Development Bank
-Opening remarks by Mr Wim J. van Nes, Network Leader
Renewable Energy, SNV Netherlands Development Organisation
-Group picture
Ms Hao Xianrong
Mr Li Jingming
Mr Qu Feng
Ms Yan Long
Report of the International Workshop on Domestic Biogas, 20-22 Nov 2013, Chengdu, PR China
Report of the International Workshop on Domestic Biogas, 20-22 Nov 2013, Chengdu, PR China
Report of the International Workshop on Domestic Biogas, 20-22 Nov 2013, Chengdu, PR China
Report of the International Workshop on Domestic Biogas, 20-22 Nov 2013, Chengdu, PR China
Report of the International Workshop on Domestic Biogas, 20-22 Nov 2013, Chengdu, PR China
Report of the International Workshop on Domestic Biogas, 20-22 Nov 2013, Chengdu, PR China
Report of the International Workshop on Domestic Biogas, 20-22 Nov 2013, Chengdu, PR China
Report of the International Workshop on Domestic Biogas, 20-22 Nov 2013, Chengdu, PR China
Report of the International Workshop on Domestic Biogas, 20-22 Nov 2013, Chengdu, PR China
Report of the International Workshop on Domestic Biogas, 20-22 Nov 2013, Chengdu, PR China
Report of the International Workshop on Domestic Biogas, 20-22 Nov 2013, Chengdu, PR China
Report of the International Workshop on Domestic Biogas, 20-22 Nov 2013, Chengdu, PR China
Report of the International Workshop on Domestic Biogas, 20-22 Nov 2013, Chengdu, PR China

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Report of the International Workshop on Domestic Biogas, 20-22 Nov 2013, Chengdu, PR China

  • 1. International workshop “Learning from national domestic biogas programmes in Asia; mapping opportunities for developing and resourcing of biogas sectors including carbon financing” 20-22 November 2012, Art Senses Hotel and Place, Chengdu, PR China Workshop Report February 2013
  • 2. 2 Contents Summary...................................................................................................................................................3 1. Introduction ..............................................................................................................................................6 1.1 Objective of the workshop..........................................................................................................6 1.2 Participants .................................................................................................................................7 2. Workshop agenda.....................................................................................................................................7 2.1 Day I, 20 November 2012............................................................................................................7 2.1.1 Plenary Opening Session..................................................................................................7 2.1.2 Plenary Presentation Session: “Spotlight on China”........................................................9 2.1.3 Parallel session Country Team “What did we learn”.....................................................11 2.1.4 Plenary presentation session of Country Teams ...........................................................12 2.2 Day II, 21 November 2012.........................................................................................................13 2.2.1 Visit to BIOMA and exhibition of Chinese biogas industry ............................................13 2.2.2 Visit to Yong’an Biogas Management Cooperative (biogas service network) ...............13 2.2.3 Visit Hongqi company in Chengdu .................................................................................14 2.3 Day III, 22 November 2012........................................................................................................14 2.3.1 Plenary session “Mapping Opportunities”.....................................................................14 2.3.2 Parallel sessions A-E.......................................................................................................17 2.3.3 Plenary reporting session...............................................................................................29 2.3.4 Update on E4All working group on domestic biogas.....................................................30 2.3.5 Plenary Closing session ..................................................................................................31 2.3.6 Evaluation and closing of the workshop........................................................................32 Annex I – List of Participants.......................................................................................................................33 Annex II – Workshop Agenda......................................................................................................................37 Annex III - Summary of Country Presentations...........................................................................................40 Annex IV - Result of the workshop evaluation............................................................................................48
  • 3. 3 Summary Asia is the centre of domestic biogas development, with the People’s Republic of China having installed more than 42 million units (by the end of 2011) and India about 4.4 million units (by the end of March 2011) based on strong government support. With support by SNV Netherlands Development Organisation, Nepal, Vietnam, Bangladesh and Cambodia, followed by Lao PDR, Indonesia, Pakistan and Bhutan have started market-based national programmes aiming to develop sustainable, commercially viable biogas sectors. By the end of 2011, more than 430,000 biogas plants were installed in these eight countries, including units installed through other projects. SNV initiates to extract lessons that will inform further development of the domestic biogas programmes in Asia and possibly also in other parts of the world. More than fifty different organisations currently cooperate in the Working Group on Domestic Biogas convened by SNV under the Energy for All Partnership (E4ALL) initiated by the Asian Development Bank (ADB). The objective of this group is the construction of one million domestic biogas plants across fifteen Asian countries by 2016. Recently, efforts on the generation of carbon credits from national biogas programmes have resulted in success for among others Cambodia, India, Nepal and China. The question is if and how carbon financing can be further increased in these countries, but also applied in other countries with a sizable programme. Against this background, SNV and the Biogas Institute of Ministry of Agriculture (BIOMA) of China, in cooperation with the ADB/E4ALL, organised an International Workshop on Domestic Biogas in Chengdu, China, from 20 to 22 November 2012. Approximately 120 people participated in the workshop. This workshop had two specific objectives:  To evaluate the performance of the national programmes on domestic biogas from 2005 to 2012 and to assess the outlook of these programmes up to 2016. Expected output is an outline of the main issues, lessons learnt and prospects by country;  To present and discuss the latest developments and opportunities on key issues related to the transition from biogas projects to national programmes to sectors. Expected output is opportunities mapped for developing and resourcing of biogas sectors on: carbon financing, product development, bio-slurry, credit facilities and the enabling environment. The first day of the workshop, on 20 November 2012, kicked-off with opening speeches from representatives from the Ministry of Agriculture in China, the Biogas Institute of Ministry of Agriculture, the Asian Development Bank, and SNV Netherlands Development Organisation. The following plenary session was focused on biogas development in China. The presenters, representing the Ministry of Agriculture in China, the Sichuan Provincial Rural Energy Office and the World Bank, provided an overview of the status of domestic biogas activities in China. The Chinese government is highly supportive to the biogas sector in terms of laws and legislation, although the high number of policies can create confusion. Efforts have been made on training of households and enterprises. The establishment of biogas service networks for users was emphasized, although not all are functioning well due to their location or low profitability. In May 2008, more than half a million plants were damaged due to an earthquake in Sichuan Province. An emergency loan was made available by AFD and IFAD for (re)construction of new biodigesters. The (re)construction materials consisted of bricks and cement for the digester and fibreglass for the dome. Within 3 years, the project was successfully completed.
  • 4. 4 Two more projects were highlighted, including the efficient utilization of agricultural wastes, financially supported by ADB and GEF. The project focused on the improvement of the mechanism of biomass technology transfer, improvement of farm-to-market facilities, enhancing awareness of environment among the public, piloting poverty focused approaches to biomass development and capacity building. The project set up 19,100 biogas digesters in addition to improving kitchens, toilets and pig sheds. The Carbon Finance Unit, established by the World Bank, has pioneered multiple funds bridging innovation with public private partnerships. Twelve biogas related projects have been realised including three programmes aiming to reduce 10 mega tons of CO2e. Currently, there are projects in China, Thailand, the Philippines and Nepal with new projects being developed in Ethiopia and Nepal. The first day continued with a parallel session on “what did we learn?”. Twelve country teams were formed in which the teams had to evaluate (via SWOT analysis) the performance of domestic biogas sector in their respective country. The analyses were guided by two key questions: 1. What are the three most relevant strengths, weaknesses, opportunities & threats of the domestic biogas sector in our country? 2. What are concrete actions points to overcome the three most relevant weaknesses and/or threats in the domestic biogas sector in our country? The individual country presentations indicated that some of the strengths in one country are weaknesses in other countries. Government commitment in most countries appears to be good but enforcement of policies is weak and is sometimes disturbing market driven approach. Availability of other biogas technologies/designs is being followed in several countries while in some other the focus is on one single but proven model. Most countries have developed strong national and international networks. Capacity building and training is a strong component across the countries while trained masons are leaving work and therefore requires attention. Lack of coordination at stakeholder and donor level was also highlighted. The number of smallholder animal farmers is decreasing in some countries requiring refocusing on relatively larger animal holders. Donor dependency and conflicting subsidy schemes are also issues. Most countries still have little access to micro-finance especially in rural areas. Several countries have effective multi stakeholder platforms while others have weak linkages. A quantitative analysis of the sector elements (market demand, market supply and the enabling environment) mentioned in the country SWOTs shows that the weaknesses are mostly related to the market supply side and the threats are mostly related to the enabling environments. On the second workshop day, on 21 November 2012, a full day of field visits was planned. A visit for the participants was organized to the Biogas Institute of Ministry of Agriculture (BIOMA). A guided tour was provided by the staff of BIOMA to its various laboratories and facilities related to biogas analysis and testing. A briefing on BIOMA’s activities was also provided using multimedia in the BIOMA conference room. The participants also visited an exhibition of the Chinese biogas industry, organized at the front yard of BIOMA. In the exhibit many Chinese enterprises and companies involved in manufacturing and marketing of various biogas and other renewable energy related appliances and accessories had prepared display stands. The Yong’an Biogas Management Cooperative, established in 2007 with government support, was visited. The Cooperative provides domestic biogas plant services to approximately 5,000 farmers in Yong’an Township and other townships nearby. The management mode of the Cooperative is
  • 5. 5 characterised by different memberships (ordinary, full services and non-memberships). While at Yong’an, participants also visited local biogas households and interacted with the plant owners. Finally, the Hongqi Company was visited, which is an enterprise engaged in research and development, production, sales and service of digesters made of fibreglass reinforced plastic. The annual output of the fibreglass digesters made by this company has reached 400,000. Participants visited the production factory, followed by a Q&A session with Hongqi management. On the final workshop day, on 22 November 2012, focused on the latest developments and opportunities on key issues related to the transition from biogas projects to national programmes to sectors. It started with several plenary presentations to serve as introduction and share experiences in the topics of product development, carbon financing, optimal use of bio-slurry, credit facilities, and enabling environments for biogas sectors. On product development, SimGas was introduced, a company producing two types of biogas plants with animal manure and kitchen waste as feedstock in Tanzania. The main objectives are to provide reasonably cheap, reliable, scalable, easily transportable and easy to install products. On carbon financing and bio-slurry use, a FAO study on the potential to access carbon markets through biogas projects in the Greater Mekong Sub-region was presented. On credit facilities, the biogas loan product in Cambodia was elaborated on by Amret MFI. They provide loan to potential biogas households, with an average of USD 500-600. Interest rate is 1.2% per month with duration up to 24 months. On regional level, efforts are undertaken by KfW to establish a debt fund to re-finance MFIs; for example to provide biogas loans. Several market studies in Asian countries show potential for financing biogas. On enabling environments, the example of the Alternative Energy Promotion Centre (AEPC) Nepal was presented. The AEPC facilitates the enabling environment for the Nepalese biogas sector since 1996. AEPC plays a key role in facilitating the biogas partnership between public and private actors and is setting up guidelines and standards as well as in subsidy monitoring. In the following five parallel sessions, a number of key questions were raised with regard to the topics carbon financing, product development, optimal use of bio-slurry, credit facilities, and enabling environments. The questions aimed to analyse the barriers identified and lessons learned in commercialisation of biogas; which good practices make a biogas project/programme successful; and what will be the future of key market instruments. Specifically, to secure carbon finance, a strong and robust organisation structure is needed, as well as internal carbon expertise. There is a need for a common knowledge sharing platform, such as the recently initiated Sub-Working Group on Carbon Financing under the E4ALL Partnership. On microcredit for MFIs and biogas households, the appropriate terms and conditions were discussed, concluding that tailored funding is crucial for success. On enabling environments, especially national policies, standards and regulation are needed as well as overall government commitment. A nodal entity for coordination is preferred to boost this. The E4All goal is to provide access to reliable and affordable modern energy services to 100 million people in Asia and the Pacific by 2015. An update on the E4All Working Group on Domestic Biogas was provided, which included various trainings, R&D (fibre glass digesters) and consultations. The workshop ended with a brief reflection on the objectives and major discussion themes in domestic biogas programmes: the demand side still witnesses a lack of awareness among households on the full benefits of biogas; the supply side needs to be mobilised stronger with private sector development at its core; and in relation to enabling environments, biogas is more and more recognised in national policies and through establishment of dedicated government institutes.
  • 6. 6 1. Introduction Asia is the centre of domestic biogas development, with the People’s Republic of China having installed more than 42 million units (by the end of 2011) and India about 4.4 million units (by the end of March 2011) based on strong government support. With support by SNV Netherlands Development Organisation, Nepal, Vietnam, Bangladesh and Cambodia, followed by Lao PDR, Indonesia, Pakistan and Bhutan, have started market-based national programmes aiming to develop sustainable, commercially viable biogas sectors. By the end of 2011, more than 430,000 biogas plants were installed in these eight countries, including units installed through other projects. More than fifty different organisations currently cooperate in the Working Group on Domestic Biogas convened by SNV under the Energy for All Partnership (E4ALL) initiated by the Asian Development Bank (ADB). The objective of this group is the construction of one million domestic biogas plants across fifteen Asian countries by 2016, providing access to sustainable energy to five million people. Whereas for the giant biogas countries, China and India, the focus of the E4ALL efforts will be solely on innovation, scaling-up is aimed for the eight Asian countries with existing national programmes. In addition, the launch of feasible programmes is targeted for five new countries. Since 2005, the Netherlands Ministry of Foreign Affairs (DGIS) has supported the Asia Biogas Programme covering biogas programmes in Bangladesh, Cambodia, Lao PDR and Vietnam. A Mid-Term Review (MTR) of these programmes was executed in 2008. Early 2012, SNV has initiated both internal and external evaluations to extract lessons that will inform further development of the domestic biogas programmes in Asia and possibly also in other parts of the world. More recently, efforts on the generation of carbon credits from national biogas programmes have resulted in success for among others Cambodia, India, Nepal and China. The question is if and how carbon financing can be further increased in these countries, but also applied in other countries with a sizable programme. This type of financing could be coupled with temporary public funding and debt funding opportunities to achieve financial sustainability of national programmes on domestic biogas. Against this background, SNV and the Biogas Institute of the Ministry of Agriculture (BIOMA) of China, in cooperation with the ADB/E4ALL, organised an International Workshop on Domestic Biogas in Chengdu, China, from 20 to 22 November 2012. 1.1 Objective of the workshop This workshop had two specific objectives:  To evaluate the performance of the national programmes on domestic biogas from 2005 to 2012 and to assess the outlook of these programmes up to 2016. Expected output is an outline of the main issues, lessons learnt and prospects by country;  To present and discuss the latest developments and opportunities on key issues related to the transition from biogas projects to national programmes to sectors. Expected output is opportunities mapped for developing and resourcing of biogas sectors on: carbon financing, product development, bio-slurry, credit facilities and the enabling environment.
  • 7. 7 1.2 Participants Approximately 120 people participated in the workshop, consisting of selected delegations from fifteen countries in Asia, of representatives from ADB and other potential external financers and of stakeholders from the biogas sector in China. See Annex I for the complete list. 2. Workshop agenda The workshop was organized for three days between 20 and 22 November 2012 which consisted of various plenary and parallel sessions as well as field visits. The detailed agenda can be found in Annex II. 2.1 Day I, 20 November 2012 2.1.1 Plenary Opening Session Opening speech by Ms Hao Xianrong, Division Director, Department of Science & Technology and Education, Ministry of Agriculture On behalf of Mr Wang Yanliang, Deputy Director-General, Department of Science and Education, Ministry of Agriculture (MOA), PRC and Director General, Rural Energy and Environment Agency, Ministry of Agriculture (MOA), PRC, Ms Hao congratulated on the commencement of the workshop and welcomed all participants from 21 countries including Bangladesh, Bhutan, Cambodia, India, Indonesia, Laos, Myanmar, Nepal, Pakistan, Philippines, Singapore, Sri Lanka, Vietnam Nigeria, the, Rwanda, Tanzania, Burkina Faso, Zambia, Germany, the Netherlands, Switzerland, as well as the domestic participants and experts from China. She also welcomed SNV, ADB and World Bank representatives. Ms Hao informed that the Chinese government attached great importance to biomass energy and biogas and has highlighted it in the 12th Five Year Plan for National Economic and Social Development. Since 2000, the government is financing and supporting proliferation of biogas plants in rural areas amounting to RMB 31.5 billion. The number of biogas users is now 41.7 million (39.98 million small biogas plants, 80,000 medium sized plants and 90,000 service networks in township and villages). Rural biogas has significantly contributed to the improvement of farmers’ production and living conditions. The Chinese government has also taken up promotion of rural biogas as an industry promoting large scale industrialised production. The emission reduction achieved is also helping to tackle the problem of climate change.
  • 8. 8 The government of China will continue to focus on rural biogas development policy. Scientific research and innovation will be promoted, and standardization, enterprise development, capacity building for constructer and service providers will be emphasised. International collaboration is also taking place and more of such collaborations are welcome. She wished the workshop a great success. Welcome address by Mr Li Qian, Director General, Biogas Institute of Ministry of Agriculture (BIOMA) Mr Qian welcomed all the participants in Chengdu on behalf of BIOMA. He informed that BIOMA has a faculty of experienced staff in biogas and since 1980 it is organizing trainings in rural biogas to participants from developing countries. BIOMA is highly willing to cooperate with ADB and SNV to facilitate free exchange of the latest findings on domestic biogas and promote academic exchanges. He wished the conference a success. Opening remarks by Mr Jiwan Acharya, Climate Change Specialist (Energy), Sustainable Infrastructure Division, Regional and Sustainable Development Department, Asian Development Bank Mr Acharya welcomed all on behalf of ADB. He highlighted the importance of the workshop: 1. Taking place in China where almost 40 million biogas plants are made; 2. Biogas collaboration entering a stage where bilateral support and grants are reducing. There is however a need for sustaining the development of the sector of biogas for poor rural population; 3. Commitment from participants is important to determine how we need to move ahead. ADB’s involvement in the area of biogas is steadily increasing. Many projects are on-going and more are in pipeline and expressed ADB’s commitment to this sector. He also informed that the Working Group on Domestic Biogas under the E4All is the most active partnership within ADB. He recalled that the establishment of credit fund was discussed in international biogas workshop in 2011 (Bandung, Indonesia). Discussion with KfW as a lead is taking place and we will hear more from KfW on the progress in this workshop. He thanked the Ministry of Agriculture and BIOMA and SNV for organizing this workshop. Opening remarks by Mr Wim J. van Nes, Network Leader Renewable Energy, SNV Netherlands Development Organisation Mr Van Nes said that the domestic biogas is one of the possibilities for rural households to get cooking fuel and organic fertilizer with estimates of global potential standing at 155 million. Since 1989, SNV is supporting in setting up national programmes in domestic biogas and by the end of this year 500,000 biogas plants would be installed in 17 countries in Asia, Africa and Latin America. A sector wide approach is required for sustaining such a development involving capacity development of stakeholders. Additionally, it will be required to develop the enabling environment including the policy and regulatory framework to create the playing field level for the service providers in the market. This is an important issue that the participants of this workshop will have to reflect upon. This is the 4th in the series of international workshops on domestic biogas initiated by SNV.
  • 9. 9 Mr Van Nes thanked the Ministry of Agriculture and its Biogas Institute for all the support provided to organize this workshop. He expressed gratitude towards ADB for supporting the workshop and the Working Group on Domestic Biogas in the framework of the Energy of All Partnership. He also thanked the Netherlands Ministry of Foreign Affairs for supporting the development of the biogas sectors in the developing world. 2.1.2 Plenary Presentation Session: “Spotlight on China” Ms Hao Xianrong introduced the session, which hosted a series of presentation with a focus on biogas in China. Before that, Mr Fred Marree of SNV made an introduction of the workshop and the planned field visits. Mr Marree presented the workshop rationale and outlined the planned daily programme including field visits, logistics and social events. Objectives of the workshop: 1. Evaluate the performance of national programmes on domestic biogas and to assess the outlook of these programmes. Expected results: an outline of the main issues, lessons learnt and prospects per country. 2. Present and discuss the latest development and opportunities on key issues related to the transition from biogas projects to national programmes to biogas sectors. Expected results: opportunities mapped for developing and resourcing of biogas sectors on: carbon financing, product development, bio-slurry, credit facilities and the enabling environment. Domestic Biogas Programme in China. Mr Li Jingming, Secretary General of China Biogas Society. Director Renewable Energy Division, Rural Energy and Environmental Agency, MoA. Rural energy consumption in China is increasing, but 85-90% comes from traditional sources such as fuel wood, straw and coal. The government is highly supportive, including various supportive laws and legislation; plans such as the Medium and Long Term Programme of Renewable Energy Development Plan and National Rural Biogas Construction Plan. The plans aim for 80 million domestic biogas digesters and 8,000 large scale biogas projects by 2020. There is also increasing emphasis on standardisation for small, medium and large biogas installations as well as training and education of households, community and enterprises. Mr Li also highlighted technical progresses such as in diversity of raw material for biogas, improved fermentation technology, digester designs, equipment manufacture in country, diversity in application from rural to urban, industrial and transportation. Some of the key problems and barriers in rural biogas development in China are: the high number of policies in existence which creates confusion and the focus seems mainly on infrastructure investment and not on incentives for implementation and end users; the network of service points are not functioning well as many are not ideally located and are not making income from service provision; farmers also do not like to pay for the services in cash; barriers in marketing comes from the fact that
  • 10. 10 biogas is mainly supplied as cooking alternative and supply to the grid is still difficult; and a proper incentive policy on utilization of bio-slurry is lacking. Reconstruction of Rural Biogas Plants in Earthquake Affected Area of Sichuan Province. Mr Zhou Liao, Assistant Chief of the Domestic Biogas Section, Sichuan Provincial Rural Energy Office, Chengdu, China There are 5.75 million rural biogas plants in Sichuan Province as of October 2012 which is the largest number for a province in China. 524,100 plants got damaged by the earthquake on May 12, 2008, resulting in a loss of RMB 1.6 billion. AFD and IFAD’s preferential emergency loan of USD 80.47 million was made available for reconstruction in sixteen heavily affected counties and construction of 155,300 new biogas digesters. The project was successfully completed in three years. As for the construction technology: digester was made of bricks and cement while the dome was made of mould pressed glass fibre. This required no maintenance and there was no problem of leakages. Gas production increased 26% and time required for construction was also shorter. Biogas service stations were also established at rural areas at village and county level to facilitate availability of appliances and accessories and the prompt provision of after sales services. Results of ADB supported biogas projects in China. Mr Geng Dali, Director, Foreign Economic Cooperation Centre, Ministry of Agriculture, China The ‘Efficient Utilization of Agricultural Wastes Project’ and the ‘Integrated Renewable Biomass Energy Development Project’ are the two projects funded by ADB. The Efficient Utilization of Agricultural Wastes Project was co-funded by ADB and GEF. The project was launched in June 2003 and was completed in the end of 2009 with a total investment of RMB 565 million. The project focused on the improvement of the mechanism of biomass technology transfer, improvement of farm-to-market facilities, enhancing awareness of environment among the public, piloting poverty focused approaches to biomass development and capacity building. The project set up 19,100 biogas digesters in addition to improving kitchen, toilets and pig sheds. Fifteen medium and large biogas installations were also completed. This helped generate 13.697 million m3 of biogas resulting in a net reduction of greenhouse gas emission by 86,700 tons CO2e/yr. It has also resulted in annual treatment of 948,600 tons of animal waste and generation of 851,200 tons of sludge and bio-slurry. The Integrated Renewable Biomass Energy Development Sector project aimed at effective utilization of biogas sludge in eco-farming, capacity development for improved sector performance and providing project implementation support.
  • 11. 11 World Bank Experience on Carbon Finance Operations in Biogas. Mr Tao Wang, Senior Operations Officer, Carbon Finance Unit, World Bank, USA. The World Bank (WB) established the first carbon fund in 2000, and since then the role and activities of the WB in carbon financing is continually evolving. The Carbon Finance Unit has pioneered multiple funds bridging innovation with public private partnerships. Twelve biogas related projects have been realised including three programmes aiming to reduce 10 mega tons of CO2e. Currently, there are projects in China, Thailand, the Philippines and Nepal with new projects being developed in Ethiopia and Nepal. For the WB the key lessons learnt from carbon finance projects are:  Understanding of benefits and challenges in the use of carbon finance;  Importance for the need of good maintenance and solid monitoring system;  A strong Coordinating/Managing Entity (CME) is the key to success of bundled small scale projects and PoAs;  Challenges related to upfront project costs and price variability. There is USD 900 million be managed for a post 2012 carbon fund. The Carbon Partnership Facility, Forest Carbon Partnership, Bio Carbon Fund and Carbon Initiative for Development (two components) for least developed countries are set in place by WB for post 2012. 2.1.3 Parallel session Country Team “What did we learn” During the following parallel session, twelve country teams were formed in which the teams had to evaluate the performance of the national domestic biogas programme in their respective country. The domestic biogas sectors consisting of a demand side, supply side and enabling environment in the various countries in Asia and Africa are in different stages of development and have to cope with their very specific contexts. For the actors in every country, it will be crucial to ‘learn by doing’. One way of looking at the development of the sector is to review the quality of the sector functions (see sketch below) as well as the level of external financial assistance required to sustain the functions in the sector.
  • 12. 12 Each country group1 , led by a facilitator, conducted a SWOT analysis on the biogas sector per country: SWOT POSITIVE NEGATIVE Internal Strength (“What are we good at?”) Weakness (“What can we improve?”) External Opportunity (“What trends we can take advantage of?”) Threat (“What are we competing with?”) The analyses were guided by two key questions: 1. What are the three most relevant strengths, weaknesses, opportunities & threats of the domestic biogas sector in our country? 2. What are concrete actions points to overcome the three most relevant weaknesses and/or threats in the domestic biogas sector in our country? 2.1.4 Plenary presentation session of Country Teams Mr Kailash Khandelwal from India chaired the plenary session. In the plenary session each country group presented the result of the SWOT analysis in the form of lessons learnt. The summary of the country presentation is presented in Annex III. Ms Dagmar Zwebe (SNV/Vietnam) summarized on the presentations made and indicated that some of the strengths are weaknesses in other countries. Government commitment in most countries appears to be good but enforcement of policies is weak and is sometimes disturbing market driven approach. Availability of other biogas technologies/designs is being followed in several countries while in some other they are focusing on one single but proven model. Most countries have developed strong national and international networks. New opportunities are being provided by organic farming while use of bio-slurry is still limited. Capacity building and training is a strong component across the countries while trained masons are leaving work and therefore requires attention. Lack of coordination at stakeholder and donor level was also highlighted in several country presentations. The number of smallholder animal farmers is decreasing in some countries requiring refocusing on relatively larger animal holders. Donor dependency and conflicting subsidy schemes are also issues. Most countries still have little access to micro-finance especially in rural areas. Several countries have effective multi stakeholder platforms while others have weak linkages. A quantitative analysis of the sector elements (market demand, market supply and the enabling environment) mentioned country SWOTs shows that the weaknesses are mostly related to the market supply side and the threats are mostly related to the enabling environments: 1 Bangladesh, Bhutan, Burkina Faso, Cambodia, China, India, Indonesia, Lao PDR, Nepal, Pakistan, Sri Lanka and Vietnam 18% 47% 34% Demand Supply Enabling environment 27% 23% 50% Demand Supply Enabling environment Weaknesses related to sector elements: Threats related by sector elements:
  • 13. 13 2.2 Day II, 21 November 2012 2.2.1 Visit to BIOMA and exhibition of Chinese biogas industry A visit for the participants was organized to the Biogas Institute of Ministry of Agriculture (BIOMA). The visit was organized in six groups and a guided tour was provided by the staff of BIOMA to its various laboratories and facilities related to biogas analysis and testing. A briefing on BIOMA’s activities was also provided using multimedia at the BIOMA conference room. BIOMA was established in 1979. It’s a sole state-level biogas research institution in China. It is mainly engaged in fundamental research, technical development, project design, demonstration and consultation, domestic and international trainings as well as products’ (appliances) quality inspection in the field of biogas. It is taking a leading place at anaerobic microorganism research area, treatment technology of different agriculture wastes, such as animal dung and straws. BIOMA is devoted to contribute to rural renewable energy development and improvement of rural ecological environment. BIOMA applies bio-technological methods in agricultural and rural economic development transformation, as well as scientific research and technical promotion for rural energy and environmental engineering. Side by side to the BIOMA visit, participants also participated in the exhibition of the Chinese biogas industry organized at the front yard of BIOMA. In the exhibit many Chinese enterprises and companies involved in manufacturing and marketing of various biogas and other renewable energy related appliances and accessories had prepared display stands. They explained their products to the visitors and distributed promotional materials. 2.2.2 Visit to Yong’an Biogas Management Cooperative (biogas service network) The Yong’an Biogas Management Cooperative was established in 2007, with government support, and is located in Yong’an Town. The Cooperative provides domestic biogas plant services to approximately 5,000 farmers in Yong’an Township and other townships nearby. The management mode of the Cooperative is characterised by different memberships providing different services to the farmers: (1) ordinary members: fee of RMB 60 per year; (2) membership for full services: fee of RMB 500 per year; and (3) non- membership clients. Ordinary and full services membership can get different kind of free services from the Cooperative. The Cooperative has brought tangible benefits to farmers by its services and been commonly accepted by farmers for its service work. While at Yong’an participants also visited local biogas households and interacted with the plant owners.
  • 14. 14 2.2.3 Visit Hongqi company in Chengdu The Chengdu Hongqi Industrial Company is an enterprise engaged in research and development, production, sales and service of digesters made of fibreglass reinforced plastic. They promote several types of fibreglass digesters. The digesters are characterised, among others, by their slightly higher construction costs, fast installation, good performance in air tightness and very little maintenance. The annual output of the fibreglass digesters made by this company has reached 400,000. The company focuses on innovation, development and research of new material, introduction of new equipment, product quality promotion. The company has been recognised with many national enterprise awards. 2.3 Day III, 22 November 2012 2.3.1 Plenary session “Mapping Opportunities” This session was chaired by Mr Formanul Islam, IDCOL, Bangladesh. Product development of pre-manufactured biogas plants by SimGas BV. Mr Sanne Castro, CEO, SimGas BV, the Netherlands. Taking the success of biogas from Nepal to Africa but with a product developed to suit and benefit the needs of rural Africa was the focus of the presentation. Every unit of biogas is more of a project than a product and thus had a lot of overhead. It is also a move from one-fits-all to a model of mass customization. Prices are aimed at a return on investment within two years. The installation consists of elongated (cylindrical) and modular one m3 components made of HDPE. The unit is fixed and is underground. Main objective is to provide reasonably cheap, reliable, scalable, easily transportable and easy to install product. Floating drum adapted from the “Arti” model is in market in Tanzania with household kitchen waste as its feed stock. Currently, 350 customers in Dar es Salaam are benefiting from the technology. The potential to access carbon markets through biogas projects in the Greater Mekong Sub-region: Case studies and training needs. Mr Palitha Ranadewa, Lead Field Researcher FAO study, Sri Lanka The presentation summarises the results of the study carried out by Texas A&M University and FAO focused on the Greater Mekong Sub-region (Research field visits in: Lao PDR - Vientiane Province; Sikhaod, Xaythany, Naxaythong, Pak Gneun and Hadxayphong; and Thailand - Tamboon Prasak Muang district of Lamphun Province).
  • 15. 15 The objectives of the study were:  To examine the level of understanding among biogas producers, farmers and relevant organizations on the economic, social and environmental benefits of biogas, bio-slurry and bio-slurry compost activities;  To understand the current status and potential of biogas, bio- slurry and bio-slurry compost production in the GMS region and how these activities can be leveraged to access carbon financing. The study estimated the theoretical potential of bio-slurry production (TP) in this region to be around 683,430,953 tons per year that can replace 2,504,023 tons/year of Urea. Composted bio-slurry theoretically can replace 2 million tons of Urea as compared to a million tons by bio-slurry only. With 50% TP in the research area, the theoretical value of generated carbon credits may amount up to USD 500 million as a result of energy substitution, manure management and fertilizer substitution. During the study it was also observed that most biogas plants are not functioning ideally and are not operating or being operated in their full capacity thereby pointing out towards the need for better awareness raising and training programme and extension services. A brief ceremony to mark the registration and issuance of Gold Standard Credits for biogas programme in Vietnam and Cambodia were organized at the midst of the presentations. Vietnam - On 28 June 2012, the Vietnam Biogas Program has achieved registration under the Gold Standard, the stringent certification standard for projects reducing carbon emissions. In partnership with Nexus-Carbon for Development, the programme is enabled to develop and commercialise Gold Standard certified carbon credits. The expected annual emission reductions are 589,125 tonnes CO2e. The multi- award-winning programme is the first Vietnamese project to register under the Voluntary Gold Standard and the second largest household energy project registered globally. Cambodia - The National Biodigester Programme (NBP) in Cambodia received a certificate representing its second issue of 54,137 Gold Standard VERs. The certificate was presented by Ms Shirley Yuhuan Shen, Gold Standard Foundation, to H.E. Nou Muth, Ministry of Agriculture, Forestry and Fisheries, and Ms Saoleng Lam, NBP. This was the result of the second NBP monitoring report covering the period of September 2010 till December 2011. The average annual emission reduction per biodigester was determined at 4.2 ton CO2 equivalent. National Bio-digester Program (NBP). Bio-digester loan development and performance. Mr Sean Thorninn, Head of Financial Services, Amret MFI, Cambodia Amret was founded in 1991 to deliver micro-credit to the rural population of Cambodia. It became the first micro-finance institution to receive a micro deposit and taking institution license for the National Bank of Cambodia. At present Amret has 98 offices covering 17 out of 24 provinces and the capital with a total staff of 2,366. Its products and services are credit (individual, solidarity, bio-digester), deposit (saving and fixed) and Inter Branch Monetary Transfer. The outstanding loans as per September 2012 stand at USD 129.3 million with 287,903 active borrowers. Amret MFI
  • 16. 16 provides loans to households wanting to install bio-digester with the help of the concession loan provided by FMO. The loan size to the household varies from USD 150 to USD 1,000 based on plant construction cost and equipment. The average loan size is between USD 500-600. The interest rate is 1.2% and Amret provides the loan to eligible households based on their eligibility criteria. The loan duration is 3 to 24 months based on client’s real cash flow and repayment is on monthly basis with a grace period of 1-3 months. Out of a total of 4,826 plants constructed in 2012, 3,034 were via loan of which 1,782 plants (59%) was via an Amret loan. Update on the creation of a regional debt fund on re-financing of loans to end-users. Mr Florian Arneth, Senior Project Manager, KfW, Germany Market studies conducted in Pakistan, Nepal, Bangladesh and Vietnam showed market potential for financing biogas. A study in Indonesia is still on-going. KfW submitted a proposal to the German Federal Ministry for Economic Cooperation and Development (BMZ) for a MIFA debt fund to re-finance MFI for financing in local currencies created by KfW, German government, EU and Blue Orchard. Local government commitment, quality control, after sales and medium term growth rate of cattle population are some of the risks that needs to be mitigated through TA. Strong links between the national biogas programmes will therefore be required. Further study is needed to assess demand from MFI and their capability to engage. Which countries have the highest potentials (substrate, interest for loans, repay potential)? Biogas can be included in this MIFA initiative. Enabling environment for the Domestic Biogas Sector in Nepal. Mr Samir Thapa, Assistant Director, Alternative Energy Promotion Centre, Nepal AEPC’s role was highlighted in facilitating the enabling environment for domestic biogas in Nepal since its establishment in 1996. AEPC plays a key role in facilitating the partnership between public and private actors and is setting up guidelines and standards as well as in subsidy monitoring. The Central Renewable Energy Fund (CREF) is being initiated. Government subsidy is to be increase in the future to 40%. Mr Thapa pointed out that there is a need to diversify to urban areas and larger biogas systems that require innovative technologies and to meet the high demand for credit. As part of policy contribution, AEPC has managed to facilitate the Rural Energy Policy 2006, Subsidy Policy /Arrangement 2009 (amended), Subsidy Delivery Mechanism 2009 (amended) and the CDM Revenue Utilisation guideline. Mr Thapa further pointed out the need for a focal agency for biogas, code of conduct for private sector, partnership with academic institutes for R&D and an increased focus on impacts. There is also a need for diversification of the private sector towards inclusion of other products in addition to biodigesters.
  • 17. 17 At the end of this plenary session, Mr. Formanul summarized that efforts are underway to develop scalable, marketable, affordable and durable biogas digesters. Similarly potential of bio-slurry also in terms of carbon credit is huge and the potential of replacement of chemical fertilized is huge as compared to actual that is happening in the field. Excellent loan performance in Cambodia is very encouraging pointing out to the vital role microfinance can play in popularizing biogas technology. It is also clear that government support is vital in any country to promote the domestic biogas sector. 2.3.2 Parallel sessions A-E Session A: Learning from national domestic biogas programmes in Asia; mapping opportunities for resourcing of biogas sectors from carbon financing. Ms Shirley Yuhuan Shen and Mr Keshav Das Rationale: A number of countries in Asia including Cambodia, Vietnam, Nepal, China, India, Bangladesh and Indonesia have gained specific experience on carbon financing of domestic biogas programmes, both in the compliance and voluntary market. With the end of 2012 approaching, the new rules on offsets guiding the EU ETS, development of new market mechanism, standardised baseline, NAMAs, Japan's Bilateral Offset Crediting Mechanism (BOCM), and emerging schemes in Korea, China and Australia require examination for implications on carbon markets and effects on biogas carbon development. Key-questions: 1 What are the lessons learned from the current carbon finance domestic biogas projects in Asia and what are the good practices for making biogas carbon finance project a success and receiving timely carbon revenues? 2 What will be the future carbon market instruments, which could be the “best fit” to generate sustainable financing for biogas programme? Various presentations were made during the session focusing the above key questions. Mr Jihua Tang, ID, China, on his presentation “Developing biogas programme in China: Current difficulties and way forward beyond 2012” highlighted that sharing carbon credits is crucial. The sharing mechanism of carbon credits revenues should be based on commercialization and sustainability so that innovative use of carbon revenue for plant installation- up scaling and maintenance can be carried out. Mr Harry Clemens, Hivos, the Netherlands on his presentation “Does carbon finance work for domestic biogas programme in Indonesia: Issues and concerns” stated that data management and quality survey (by project developers and third party) is crucial for making a successful project. Mr Clemens also identified that carbon commercialization is challenging due to the involvement of multiple players in the carbon development process.
  • 18. 18 Mr Eric Buijsman, Carbon Consultant, on his presentation “Why did we select Gold Standard pathway to develop Cambodian biogas project?” shared that GS-VER pathway is most preferred in the current market situation due to the credibility, applicability, appropriateness of GS-VER pathway and its provision to measure strong co-benefits, retroactive crediting period, GS is easily approachable –less bureaucratic, premium value of carbon credit. Ms Suzanne Chew, Nexus-C4D, Singapore, on her presentation “How did we succeed in GS-VER in Vietnam?” indicated that a strong and robust organization structure for monitoring and data management, programme management is necessary. The organization modality should also be collaborative but not competitive. Mr Raju Laudari, AEPC, Nepal, on his presentation “Mixed success in Nepal: Issuance of biogas carbon credits and why are we delayed in registering the biogas PoA in Nepal?” stated that carbon development needs to be pragmatic. Development of appropriate project design is the key and to manage the carbon project, one should also have strong and robust financial model. Another key is commitment of project proponent and carbon expertise can’t be fully ‘outsourced’. Mr Md. Wahidur Rahman, IDCOL, Bangladesh, on his presentation “Bangladesh’s experience on domestic biogas carbon project development” shared the Bangladesh carbon project development experiences and said that having internal carbon expert is important for successful project development (completely relying on external consultants is not advisable). Besides, he stressed upon the importance of data management and quality survey (by project developers and third party) is crucial. Mr Praveen Urs, TÜV Rheinland, China, on his presentation “Is it rationale to blame DOE for delayed registration and issuance?” identified a few reasons for delayed registration of carbon projects. He indicated that poor quality of consultants, limited understanding of UNFCCC and GS-VERs by project developers, poor technical qualification of DOE/auditors are a few key reasons for delay. Ms Suzanne Chew, Nexus-C4D, Singapore, on her presentation “What will be the future carbon market instruments, which could be the “best fit” to generate sustainable financing for biogas programme” believed that in the current market situation the focus should be on the development of pro-poor project like biogas as there is a promise and future for projects with strong development impacts and co-benefits. The following conclusions resulted from the discussion in this session: Key question 1: What are the lessons learned from current carbon finance domestic biogas projects in Asia?  Carbon development needs to be pragmatic  Project design and fundamental should be strong  Financial model should be robust  Project owners must be committed: carbon expertise can’t be fully ‘outsourced’.  Data management and quality survey (by project developers and third party) is crucial  Limited awareness, capacity of project developers, DOEs  Reasons for delay  Poor quality of consultant  Limited understanding of UNFCCC and GS-VERs by project developers
  • 19. 19  Poor technical qualification of DOE/auditors  DOEs are taking jobs without sufficient human resource  Fast changing rules and regulations of UNFCCC  Timely actions and avoid delay Key question 2: What are the good practices for making biogas CF project a success and receiving timely carbon revenues?  A strong and robust organization structure for monitoring and data management, programme management is necessary (collaborative –not competitive).  Have internal carbon expert (completely relying on external consultants is not advisable).  VER pathway is most preferred in the current market situation (credibility, applicability, appropriateness, provision to measure strong co-benefits, retroactive crediting period, GS is easily approachable –less bureaucratic, premium value of carbon credit)  Contextualization: How to apply carbon principles to local context  Sharing carbon credits is crucial (commercialization and sustainability –innovative use of carbon revenue for plant installation-up scaling and maintenance)  Share experiences and lessons learned and establish a network for such activity and start advocacy for promoting and developing pro-poor projects like domestic biogas Key question 3: What will be the future carbon market instruments and what will be the best fit to generate sustainable financing?  Currently, carbon market at the bottom low (poor price and over supply of credits in the EU ETS).  For the next few years VER could be a reliable pathway (Price: up to 11,5 EUR, based on quality and type of project)  Develop pro-poor project like biogas as there is a promise and future for projects with strong development impacts and co-benefits  Financial innovation for domestic biogas Develop hybrid financial model (combining carbon finance, credit financing, insurance credits).  Start activities as market readiness effort to meet the new market mechanism (sector-wide regional project development in biogas and/or national programme development under NAMAs).  Need a common platform for knowledge sharing and start market readiness activities The parallel session has also acknowledged the formation of the Sub-Working Group on Carbon Financing of Domestic Biogas Programmes under the Energy for All initiative of Asian Development Bank. The first SWG-CF Meeting Sub-Working Group on Carbon Financing was held on November 21, 2012 in Chengdu, China, consisting of practitioners having different nationalities and having technical, commercial, policy and administrative experiences observers from ADB, WB, GS, KfW. The group decided to establish four intervention areas, in which the SWG-CF will start its activities, viz., (a) Technical area, (b) Market evolution, (c) Help desk and (d) Project specific experiences (see graph):
  • 20. 20 Mr Jihua Tang, Initiative Developement; Mr Harry Clemens, Hivos; Mr Eric Buijsman; UNDP; Ms Suzanne Chew, Nexus Carbon for Development; Mr Raju Laudari, AEPC Nepal; Mr Md. Wahidur Rahman, IDCOL and Mr Praveen Urs, TÜV Rheinland are the members of the Sub-Working Group. Session B: Development of smaller, pre-manufactured and larger biogas plants for productive use Mr Zuzhang Xia and Mr Saroj Rai Participation, Introduction and Presentations The session had around 20 participants from different countries. Mr Zuzhang Xia from the Energy for All Partnership Secretariat, a co-moderator of the session introduced the session making a PowerPoint presentation on the objective. This introductory presentation followed with a 15-minute question-answer session for Mr Sanne Castro from SimGas, the Netherlands, who had a presentation on product development in the plenary session, earlier on that day. Mr Prakash C. Ghimire from SNV Bhutan made a presentation titled “Market Development of Domestic Biogas Plants through Technical Innovation” reporting on updates on the result of the study done by the Expert Group on Technical Innovation under the Energy for All Working Group for Biogas. This presentation was on behalf of the Group, prepared by Mr Jan Lam and Mr Prakash C. Ghimire, SNV. A series of five presentations were then made by Mr Abdul Gofran, Grameen Shakti, Bangladesh; Mr Zhang Tieyao, Hongqi, China (translated by Mr Wu Libin, BIOMA, China); Mr Bounthavy Sengtakoun, SNV Lao PDR; Mr Khagendra Khanal & Mr Bishnu Belbase, Nepal and Mr Bui Van Chinh, Vietnam. •Good practice •Lessons learned • Tailor-made supports through a web-portal in E4ALL •Trading •Policy •Guidelines •CDM •GSV •NMM •meths Technical Area Market Evolution Project specific experiences Help Desk
  • 21. 21 The presentations covered different types of biogas product development initiatives that are being carried out in different countries to meet different generic or sometimes very local problems like earthquake risk or flooding problem. The designs were ranging from 1 cubic metre plastic bag to 500 cubic metre plastic sheet digesters. Discussion and result The floor was then opened for discussion and question-answer. Mr Saroj Rai, SNV Nepal, facilitated the session and asked some questions to see if conclusions being drawn were in the right direction. For some points like going for plastic digesters that are rather cheap and being promoted as interim solutions, there was a strong difference of opinion. Further discussion continued and the co-moderators closed the session thanking everyone and saying that a report will be drawn around the 3 key questions and other important points discussed and presented in the plenary. The result of the session was thus presented in the plenary. Key questions Conclusions What are the barriers for product development and commercialisation? • Awareness among prospective users and their hesitation to go for new products • Cost of new products in comparison to existing designs and other cooking solutions • Insufficient technological knowledge on peripheral areas like in handling siltation, electricity generation, etc. • Financers’ hesitation in financing of new products • Expectation of subsidy (even for commercial projects). What are the lessons learned and best practices? • Everything takes time! Go slow and steady! • Difficulty in balancing between speed and quality. • Cost reduction is possible through optimisation of plant designs and use of special materials • Still room for optimizing in plant structure or in use of special techniques or materials • Innovation in promotion like cross-visit of users help to improve effectiveness of awareness among prospective users. Importantly the group also indicated that learning-sharing in product development is taking place with increasing pace and effectiveness. There is also a need for promoting temporary solutions for short term needs except in situation where it may bring a bad name to biogas and, product development is a process rather than an event.
  • 22. 22 Session C: Opportunities for the use of bio-slurry Mr Rajesh B. Shrestha Introduction: Mr Rajesh B. Shrestha of SNV moderated the parallel session and introduced the objectives of the session. In addition to biogas, bio-slurry is also an equally important product of a biogas plant. Despite of its immense potential benefits to farm productivity and environmental protection it still remains as a difficult product and even an afterthought in many biogas programmes. Significant work has been carried out in countries like Bangladesh, Cambodia, Nepal, India and China on the management and utilization of bio-slurry. The success stories and practices are yet to be widely disseminated and adopted so that the full potential benefits of bio-slurry are utilized. Rajesh outlined a plethora of potential opportunities in relation to bio-slurry use: • Sky rocketing price of chemical fertilisers and its adverse effects on soil condition over long term application • Organic farming gaining popularity and becoming profitable • Organic farming and urban farming provides opportunities for alternate use of bio-slurry and provides marketing opportunities • Gradually increasing awareness among farming households about the benefit of bio-slurry • Increasing scientific knowledge base and proven field evidence of yield gains and soil improvement from use of bio-slurry • Increasing portfolio of better slurry management practices becoming available • Most countries where National Programmes on Domestic Biogas is being implemented are involved in bio-slurry research and application trials adding to the growing knowledge base. Key questions Six presentations were made by participants from respective countries focussing on the following three key questions: 1 What are the strength and weaknesses of bio-slurry and why are farmers still predominantly using chemical fertilisers? 2 What are the best channels to promote proper management and wider application of bio-slurry (government and private sector) among rural farming households? 3 How best to promote/market bio-slurry for alternate and off farm (packed organic manure urban and peri- urban use, livestock/fish feed additives and medium of growth for mushrooms) use when farmers produce more bio-slurry than they require for their own use? Mr Rana Amir Shafique, Area Manager of Pakistan Domestic Biogas Programme, Pakistan made the first presentation in which he highlighted the results of the first phase of research on bio-slurry use on some vegetables and cereals in collaboration with the Ayub Agricultural Research Institution. This was in comparison to the use of farm yard manure and chemical fertiliser. Results indicated that bio-slurry can
  • 23. 23 substitute 50% of the use of chemical fertiliser and still provide very good yield but not 100%. There is still a predominance of use of chemicals due to its ease of use, high concentration of nutrient and effective marketing network. In order to make bio-slurry more popular efforts will be required towards increased awareness raising of farmers as well as of the extension system in the country. Mr Apurba Kanti Chaudhury, Principal Scientific Officer, BARI, Bangladesh stated that on laboratory, on station and on farm tests of bio-slurry were carried out on different crops. He stated that there was an immense potential for the use of bio-slurry in Bangladesh. BARI is also conducting training, extension and demonstration activities in relation to use and management of bio-slurry. More extension and training activities jointly with government, private sector and NGOs is required to promote bio-slurry. Potential is also emerging for the use of bio-slurry in urban agriculture, fish raising and as cattle feed supplement. Mr Phuong Dara from SNV Cambodia informed that 95% of bio-digester owning households in Cambodia use bio-slurry as a result of extension, training, farmer to farmer networking and strong support from the Government. Composting of bio-slurry to enhance its effectiveness is still low among user farmers. He pointed out that more needs to be done in relation to motivation of farmers, Government workers and coordination between many stakeholders such as NGOs. Integration of bio-slurry use even at the policy level must be attempted. Mr Rajeev Munankami, SNV Bangladesh, highlighted the opportunities for alternative application of bio- slurry in Bangladesh. An internal audit carried out in 2012 indicated that 15% of biogas households use bio-slurry without composting, 36% use it after composting, 43% dry it out before use in field and 15 % use it as fish feed. In this audit 36% of the user households also indicated that bio-slurry is difficult to carry to the field. Some of the alternative use of bio-slurry was in the form of fuel (dry into cakes to burn for cooking), shade dried, packed and sold for urban agriculture use and as fish feed. Other possible alternative uses could be for soil conditioning, as a starter for composting, seed pelleting, pesticide application, for algal production, as animal feed, for mushroom cultivation and earthworm rearing. Mr Lok Nath Ghimire, Managing Director, Biogas and Energy Development Company Limited and President Nepal Biogas Promotion Association, Nepal, presented that besides the value of bio-slurry as a high value organic fertiliser it can also be effectively used as pesticides for organic farming. As toilets are connected to a bio-digester in Nepal many farmers hesitate to handle the bio-slurry. He also stated that most often the amount of bio-slurry from the household bio-gas plant is insufficient for total reliance on it. A slurry model village is being piloted in Pokhara, Nepal, to promote wider application of bio-slurry. The approach will be gradually replicated over other regions as well. Use of bio-slurry for urban farming and for organic farming is potential opportunities in Nepal. Mr Tshewang Namgay, National Organic Programme, Department of Agriculture, Bhutan, said that the programme is promoting organic farming as the Government also aims to achieve 100% organic farming in Bhutan by 2020. So far the NOP has been promoting liquid manure from its bio-digesters. Despite of many positive aspects of use of bio-slurry a detrimental aspect could be the large amount of cost involved for farmer to construct a bio-digester in order to get bio-slurry.
  • 24. 24 Discussion The presentations were then followed by a discussion session. The summary of the discussion was presented by Mr Rana Amir Shafique in the plenary session. The summary is presented below: What are the strengths of bio-slurry? • Demonstrated (scientific and in practice) higher yield in agricultural productivity • Diverse mode and application • Easy availability of raw materials What are the weaknesses? • Lack of awareness about the benefit of bio-slurry • Difficulty in management • Social/cultural taboos limiting use (management when toilet is connected) Why do farmers predominantly user chemical fertilisers? • Easily accessible • Ease of application (less quantity) • Highly subsidised • Contents highly standardised • Farmers unaware of negative affect over long term use What are the best channels to promote bio- slurry amongst households? • Policy to promote bio-slurry at national level • Farmer to farmer methodologies • Increased involvement of private sector • Media involvement/evidence based advocacy How best to promote/market bio-slurry for off farm use? • Make it a viable business case for private sector to market • Promote and encourage the alternate use of bio-slurry • Promote bio-slurry as an equally important product of a biogas plant Any other important result/message? • Value addition in bio-slurry • Linking up with organic branding initiative • NoX reduction potential • Knowledge management and R&D Session D: Required terms and conditions of credit facilities for biogas households and MFIs Mr Maxime Bouan and Mr Sundar Bajgain Key questions The credit session was started with a brief introductory presentation by Mr Sundar Bajgain, SNV, in which he highlighted the importance of credit facilities in all national biogas programmes. He also facilitated the session presenting four questions to be discussed and come out with the appropriate recommendations. 1. What are the appropriate terms and conditions of biogas credit for households? 2. What are the appropriate terms and conditions of biogas credit for MFIs? 3. What are the lessons learned on biogas credit in terms of availability/sources of funds, loan repayment practices and availability/selection of MFIs? 4. What are the necessary TA requirements for implementing/extending biogas microcredit programs
  • 25. 25 Presentations were made by participants based on the above four questions. Mr Maxime Bouan from Blue Orchard presented about the planned MIFA credit funds. He presented that the MIFA has the following objectives:  To provide financing (senior and subordinated loans) mainly in local currency on commercial terms to MFIs, especially Tier II and Tier III MFIs, in emerging Asian and Central Asian markets.  Strengthen financial intermediaries and encourage them to lend to MSEs as well as to low income households.  Foster responsible finance principles in the region.  Further develop local financial markets in view of sustainable and market based principles The fund size will be up to USD 100 million and anchor investments will be made by IFC, KfW and the German Federal Ministry of Economic Development and Cooperation (BMZ) and the EU. The main eligibility criteria for receiving the fund are:  At least 1 year of operations  Gross Loan Portfolio > USD 1 million  Financial requirements: o Portfolio at Risk (overdue more than 30 days) ≤ 5% o Annual Write-offs ≤2% o Regulatory Tier 1 Capital ≥ 8% (Banks) / ≥ 12.5% (NBFIs) / ≥ 15% (NGOs, Co-operatives and unregulated institutions). The second presentation was from Mr Formanul Islam of IDCOL on the biogas credit system in Bangladesh. As availability of funds for biogas credit is not a problem in Bangladesh and well-structured MFIs are already in place, Bangladesh is in a good position with access to biogas loan. He, however, stressed that quality of digesters and after sales services is important for the repayment of the loan. He further warned that smaller MFIs are vulnerable in making repayments on time and lack of collateral poses a great repayment risk. The third presentation was from Mr Christudas KV, ESAF Microfinance & Investments Pvt Ltd. India. He presented the general practice on biogas credit for small size digesters in India:  Loan amount: Rs 30000/- ($ 535)  Term of the loan: 2 year  Repeatability: option to ‘top up’ after the first year; hence the lifecycle loan is not affected  Insurance: coverage up to total exposure  MFI loan officers/field officers to be trained on monitoring of performance of the digesters.  MFI should conduct periodical review of digesters performances and hold awareness programs.
  • 26. 26 In his presentation Mr Rajendra Pradhan of SOLVE Nepal proposed that if biogas is attached to the toilet, then there should be a provision of reduced interest rate. The repayment rate on biogas is 99% however, he further recommended to:  Remove the loan limitation barrier  Build the capacity of MFIs including the technical know-how,  Availability of credit funds as required by MFIs with proper monitoring and supervision,  Need a consistent policy on the availability of the credit fund. Only the AEPC has fund for the Bio-gas sector in Nepal.  Need to develop at least one biogas technical person within the MFIs.  Introduction of new and innovative technical options. Mr Iggi H. Achsien, Advisor of Bank Syariah Mandiri, Indonesia, introduced the Bank Syarih Mandiri and its biogas credit programme with the support from UNEP Facet programme. He outlined that micro credit amount can be up to 2,000 USD and duration can be for three years. The interest rate will be 22% of which FACET will subsidize 13% and biogas household need to pay 9% per year. In case of bulk loan managed by MFIs, than the bank will charge only 13% to the MFI and user still pay 9%. There will be no collateral required however; Facet fund will be used for loan guarantee. The sixth presentation was from Mr Souphavanh Keovilay from MAF/BPP, Lao PDR. Although a biogas credit system is not well placed in Lao DPR, some attempts were made in the past to establish a MFI and in operating biogas lending. Discussion After the presentation a discussion session was held and following conclusion and conclusions were drawn. Key question 1: What are the appropriate terms and conditions of credit for households?  Low interest rates (<10% flat) and longer tenor (> 2 years or include refinancing possibility)  Appropriate collateral for MFI and Client: biogas “product” plant as collateral, insurance, household fixed revenue. Key question 2: What are the appropriate terms and conditions of credit for MFIs?  Specific funding: biogas-friendly investor, appropriate funding to suit the MFI’s business plan.  Subsidized interest rates to accompany sector development  Deal with local currency if fund is received from external source Key question 3: What are the lessons learned on credit?  Quality checks to be done by external party, but MFI must also ensure proper training of clients.  After Sales Service is key to ensure repayment: proper coordination needed with national biogas program.  Subsidy is crucial, but fraud management is key.  Repayment of the credit must come from additional income/savings.
  • 27. 27 Key question 4: What are the necessary TA requirements?  HR technical training to assess biogas project.  Feasibility studies and product development.  Quality assessment for biogas plants through external party and M&E  Support coordination efforts Session E: Enabling environment for domestic biogas development Mr Kailash Khandelwal and Mr Anuj Joshi Introduction Domestic biogas programmes are being implemented in a number of countries in Asia including Bangladesh, Bhutan, Cambodia, China, India, Indonesia, Lao PDR, Nepal, Pakistan and Vietnam. The biogas sector development in different countries is at different stages and being a multidisciplinary subject it might fall across the jurisdiction of more than one ministry or department. Each country made various kinds of interventions and learned lessons with respect to creating an enabling environment in the biogas sector. An enabling environment includes a set of interrelated conditions and practices—including Government regulations, policies and incentives, standards and practices, fiscal, institutional and informational frameworks et al - that impact on the capacity of all required actors (including private sector and civil society) to engage effectively and sustainably in the domestic biogas sector. Identification of key interventions suited to a further accelerated development would assist the countries in formulating new strategy and action plan. The parallel session was moderated by Mr Kailash Khandelwal, India, and Anuj Dhoj Joshi, SNV Nepal. Discussion Mr Joshi started the session defining and briefly highlighting the importance of an enabling environment for the development of an efficient and effective biogas sector. He shared that there will be country presentations highlighting experiences on the following key questions: 1 What key interventions have been implemented to create an enabling environment for the biogas sector development? 2 What are the lessons learned and good practices for contributing to a more conducive enabling environment for biogas sector development? There were eleven presentations and the outcomes are presented below: Mr Mohammad Bazlur Rahman, Deputy Secretary, SREDA Cell, Power Division, Ministry of Power, Energy and Mineral Resources, Bangladesh highlighted that an enabling environment does exist but needs to be strengthened. Also, development partners need to play stronger role in the effort of
  • 28. 28 strengthening the enabling environment. Overall, biogas sector development is getting momentum in Bangladesh. Mr Chimi Dorji, Department of Renewable Energy, Ministry of Economic Affairs, Bhutan provided a brief introduction about renewable energy initiatives in Bhutan and shared how the Department of Energy is supporting the overall sector development. He also highlighted on the evolution of the biogas project in Bhutan. Mr Xavier Bambara, Coordinator, National Biogas Programme, Burkina Faso shared that the switch from traditional donor/product driven projects to demand/client driven programme takes time and effort. Also, promotion needs to be followed by marketing and actual construction without delay. He explained how, in Burkina Faso, the national biogas programme has been able to involve members of the Government and opinion leaders in construction of biogas digesters. Ms Lam Saoleng, Programme Coordinator, National Biodigester Programme (NBP), Cambodia shared the key interventions and lesson learned of NBP Cambodia. The Government, MAFF and MIME have specific actions to promote biogas and support renewable energy sector. For instance, MAFF has put NBP as one of the priority programmes and has established a Steering committee to guide and provide advisory support to NBP. Mr Shi Guozhong, BIOMA, China highlighted about the general situation, Governments attention and different support provided for effective and sustainable development of domestic biogas sector in China. Mr Kailash C Khandelwal, Consultant, India presented the importance of an enabling environment and shared about India’s experiences including the development of the domestic biogas programme. He stressed how poor quality, misinformation and misappropriation as well as mixed experience of NGOs involvement have been a problem. Mr Edi Wibowo, Ministry of Energy and Mineral Resources, Republic of Indonesia presented the overall energy condition (2011) in Indonesia and the biogas sector situation. He shared that the Government of Indonesia is committed to reduce the greenhouse gasses emission to 26% by 2020 and biogas is projected to be one of the priorities to achieve the target of emission reduction. Mr Bastiaan Teune, Sector Leader RE SNV Laos, opined that for creating an enabling environment in a country how national policies need to be in place, agreed, well communicated and enforced as well as at the international level donor harmonisation/basket funding would assist. He shared his experiences and problems faced in practice in the context of Lao PDR. Mr Sajjad Haider, Programme Manager Pakistan Domestic Biogas Programme, Pakistan presented activities that the programme has carried out to support an enabling environment for the biogas sector development in Pakistan. He mentioned that the programme continues to need donor funding and assistance from the Government in the future. Mr Kithsiri Dissanake, Sustainable Energy Authority, Sri Lanka provided an overview of the power sector in Sri Lanka. Biogas technology was first introduced to Sri Lanka in the 1970s but it was mainly on research basis. Most of the biogas units already constructed were abandoned due to poor maintenance
  • 29. 29 and technical failures. He shared that the state sector participation in promoting biogas system need to be enhanced to tap the potential. Ms Nguyen Thi Minh Nguyet, Coordinator Biogas Programme, Vietnam shared how the Programme has contributed in developing the biogas sector in Vietnam through capacity building, institutionalization and decentralization & outsourcing of QC and training activities commercially. She explained that the Ministry of Agricultural and Rural Development (MARD) plans to reduce 20% total GHG emission (18.87 mil ton CO2) by 2020. Discussion Mr Khandelwal then facilitated the discussions that followed. The following conclusions were agreed upon by the group and Mr Sajjad Haider presented them in the plenary session: Key question 1: Key interventions to create an enabling environment  National policy, standards and regulation  Government support (priority), commitment and incentive for the users (certain % and certain period)  Credit availability through financing institutions at concessional rates  External financers support including donors and carbon credit. Key question 2: Lessons learned and good practices  Nodal organisation to coordinate all RE interventions  Awareness of the whole society  Market mechanism development for the sector 2.3.3 Plenary reporting session Mr Jiwan Acharya, ADB, chaired the session. Parallel session A - Progress in Carbon Financing was presented by Mr Keshav Das. Session B - Product development of smaller, pre-fabricated and larger size biogas plants for productive was presented by Mr Saroj Rai. Session C - Opportunities for the use of bio-slurry was presented by Mr Rana Amir Shafique. Session D - Required terms and conditions of credit facilities for biogas households and MFIs was presented by Mr Florian Arneth. Session E - Enabling environment for domestic biogas sector development was presented by Mr Sajjad Haider. The presenters were requested to come to the stage and the Chairman asked questions to the presenters: To Mr Das: do you really think carbon finance will work? Answer: In COP 15 Copenhagen the same question was asked. Uncertainties exist but we have to be ready and lots can still be done so that once the market is ready we will benefit.
  • 30. 30 To Mr Rai: do you really think existing technology can be optimized rather than making a breakthrough? Answer: In reality all were busy in small step wise innovations and optimization but a breakthrough is also needed. New materials are also becoming available that might revolutionise design. To Mr Shafique: what exactly do we need to do to make bio-slurry mainstream? Do you see if more needs to be done? Answer: Bio-slurry is a small component but makes a big difference. If bio-slurry is not properly managed neighbouring household may even complain for the mess it has created. In many cases it is more valuable for farmers than gas as it has the double function of nutrient and soil conditioner and at long term substitute chemical fertilizer. Research results require wider dissemination however. To Mr Arneth: Every year there is a presentation on biogas credit fund by KfW, when exactly will this actually happen? How long will it take to activate the credit fund once it is approved? Answer: It is still under process, discussion with shareholder is going well and additional partners may be joining in. It may be operational in 2013. How much time to activate it after credit fund is approved? The credit fund will be ready to disburse in the first day. To Mr Haider: Certain countries are advanced in promoting biogas, some are in the middle way and some are initiating. Give us some examples of things that countries should not do? Answer: nature and need of each country vary and these factors come into play when we talk about what kind of policy is required. In some areas higher subsidy may be required while in others a more market driven approach may be required but there may be an array of options for each country depending on local conditions. 2.3.4 Update on E4All working group on domestic biogas Mr Zuzhang Xia, Energy for All Partnership. Mr Xia introduced Energy for All Partnership to whosoever was new to this network. He introduced E4All partnership as a regional, multi-stakeholder platform for networking, cooperation, sharing experience and lessons, and overcoming barriers and challenges to scale up successful models for energy access in the Asia-Pacific region. E4All goal is to provide access to reliable and affordable modern energy services to 100 million people in Asia and the Pacific by 2015. He also outlined some of the benefits that various partners will avail:  Technology suppliers and entrepreneurs: access to customers, investors, financial institutions  Project developers: access to business development services, advice on project structuring, access to financing, networking  Investors & financial institutions: project pipeline development, knowledge sharing on technologies, business models, financing mechanisms
  • 31. 31  Donors & development agencies: improved coordination, exchange of best practice approaches, strategies for scaling up access to energy  All: Platform for market/sector development Currently there are 180+ members in the partnership among which 30% are public institutions, 60% private sector and 10% NGOs organized in the themes of cooking and heating, lighting, and electricity. Xia also introduced the E4ALL Domestic Biogas Working group with more than 50 members and facilitated by SNV. Under this working group various training, R&D (such as on fibre glass digesters) and consultations were conducted. The eligibility criteria of organisations to become a member of E4All are:  Helps access to modern energy for the poor in Asia  Willing to contribute to the goal and target of the Working Group on Domestic Biogas  Willing to share information with other WG members Interested organisations and individuals may register online and join Working Group activities: www.energyforall.info 2.3.5 Plenary Closing session Mr Wim van Nes, SNV, Renewable Energy Network Leader. Workshop results and way forward Wim briefly revisited the activities of the three days of the workshop which were quite interesting and informative. Mr Van Nes summarized on whether the objective 1 of the workshop (To evaluate the performance of the national programmes on domestic biogas and to assess the outlook of these programmes) was achieved. In general ‘many contextual issues made it hard to copy and paste experience through countries and regions, for example in gender. On the demand side large market potential exists and will continue to exist despite of the changes taking place in culture and life style. He also observed that there is still lack of awareness among the potential biogas households on the full benefit of biogas. On the supply side, it was felt that there is a need to mobilise strong private sector organisations and perhaps allow for a higher margin of profit in the market. A strong need to mobilise financial institutions to provide credit was also felt essential. Similarly some of the supply side issues pertained to lack of skilled workers in rural areas and the slow speed of R&D and transfer of technology. In relation to the enabling environment, renewable energy/biogas is increasingly being recognized in national policies and through establishment of dedicated government institutes. Regulation and quality assurance is gaining importance and government is also increasingly allocated dedicated budget to this sector. While on the other hand subsidies for fossil fuel and chemical fertilizer still continues to be significant.
  • 32. 32 Mr Van Nes informed the workshop that 460,716 domestic biogas installations have been set up so far in the 8 Asian countries where the domestic biogas sector programme is being supported by SNV along with its partners. 56,802 installed in 2011 with and operation rate of 90%. As for objective two of the workshop the key observations in carbon financing was that progress is made on CDM registration and VGS projects while all the steps related to carbon financing seem to be complicated, time consuming and costly and that it implies a strong quality control system. A sub working group on carbon financing (SWG-CF) has been established within the E4ALL partnership to facilitate knowledge and experience sharing. On product development, great dynamics in the private sector is being observed in relation to new construction materials, feed stock, exploring of different niches in the market. A need for standardization and certification system is now becoming more apparent. The full potential of bio-slurry is still not been tapped and will require more R&D and extension. There are still difficulties to market the advantages of bio-slurry compared to chemical fertilizer due to its ease of use and management and the accompanying subsidies. Improper management of bio-slurry could be a problem in some areas. As the up-front cost will remain considerable a big need for credit facility will remain. It was hoped that the long proposed regional debt fund may contribute to the fulfilment of this need. Important role is required to be played by the governments to improve the enabling environment for example on policy, regulation and standardisation and M&E. Subsidy of end users continues to remain important to promote RE/biogas. 2.3.6 Evaluation and closing of the workshop Participants were requested to fill in a questionnaire to evaluate the workshop and its sessions. The result of the evaluation is presented in Annex IV. Mr Anand Narayan, Selco Foundation, India, presented the closing remarks. He stated that his expectation to get as much information on biogas was fulfilled. He compared this workshop to the ‘Woodstock’ and that it had good reason to continue in coming years. There was an atmosphere where participants freely shared information. Sessions were good and helped gain deep insight on different aspects of biogas. Field visit experience on the second day of the workshop was outstanding and also provided an impression on the execution and biogas in China. Long term potential of the sector is very high as agriculture will not go away and animals will keep on existing. Biogas thus has a strong hope as a source of clean energy. The workshop itself was also meticulously organised. He hoped that all participants will take the blue flame of biogas to their home countries.
  • 33. 33 Annex I – List of Participants Name Organisation Job title E-mail address From Bangladesh: Mr Bazlur Rahman Power Division, SREDA Cell Deputy Secretary engr.bazlu@gmail.com Mr S.M. Formanul Islam Infrastructure Development Company Ltd (IDCOL) Deputy CEO fislam@idcol.org Mr Wahidur Rahman Infrastructure Development Company Ltd (IDCOL) Assistant Director (Technical) wahid@idcol.org Mr Apurba Kanti Choudhury Bangladesh Agricultural Research Institute (BARI) Principal Scientific Officer bd_apurba@yahoo.com Mr Abdul Gofran Bangladesh Biogas Development Foundation (BBDF) Chairman gofran@dhaka.net Mr Mahmud Ahmed Grameen Shakti (GS) Divisional Manager gsrshariatpur@yahoo.com Mr Ruhul Quddus Rural Services Foundation (RSF) Executive Director ruhul.quddus@rsf-bd.org Ms Tasnima Siddique Shubashati Vice President siddiquefaria@hotmail.com Mr ATM Mahbubul Alam Win Sources Limited Managing Director mahbub@wintelbd.com Mr Rajeev Munankami SNV Senior Advisor Renewable Energy rmunankami@snvworld.org Mr Al Mudabbir Anam SNV Advisor Renewable Energy aanam@snvworld.org From Bhutan: Mr Chhimi Dorji Department of Renewable Energy (DRE) Officiating Chief Engineer chhimi08@gmail.com Mr Tshewang Namgay Department of Agriculture, National Organic Programme Research Officer tnamgey@gmail.com Mr Dorji Gyaltshen Bhutan Biogas Project Project Manager dorjigyel66@gmail.com Mr Kencho Wangdi SNV Member BBP Steering Committee kwangdi@snvworld.org Mr Prakash C. Ghimire SNV Biogas Advisor pghimire@snvworld.org From Burkina Faso: Mr Xavier Bambara Programme National Biogaz, Burkina-Faso (PNB) Programme Coordinator xavierbambara@hotmail.com Mr Jan Lam SNV Sr. Advisor Biogas, West & Central Africa jlam@snvworld.org From Cambodia: H.E. Nou Muth MAFF, Adviser Chairman NBP Steering Committee admin@nbp.org.kh Mr Uy Kamal Ministry of Environment, Climate Change Department Head of GHG Inventory and Mitigation Office kamaluy@hotmail.com Mr Sean Thorninn AMRET Head of Financial Services thorninn.sean@amret.com.kh Ms Saoleng Lam National Bio-digester Programme (NBP) Programme Coordinator saoleng@nbp.org.kh Mr Phuong Dara National Bio-digester Programme (NBP) Bio-Slurry Extension Officer dara@nbp.org.kh Mr Petr Schmied People in Need (PIN) Head of Mission to Cambodia petr.schmied@peopleinneed.cz Mr Lutz Meyer SNV Consultant Renewable Energy lmeyer@snvworld.org From China: Mr Li Qian Biogas Institute of Ministry of Agriculture (BIOMA) Director-General biogaskyc@caas.net.cn Ms Hao Xianrong Division of Energy and Ecology, Department of Science and Education, Ministry of Agriculture Director haoxr@agri.gov.cn Mr Liang Baozhong Ministry of Agriculture, Information Centre Reporter Mr Li Jingming China Biogas Society; Rural Energy and Environment Agency, MoA Secretary-General, CBS; Division Chief, REEA lijingm@agri.gov.cn
  • 34. 34 Mr Geng Dali Foreign Economic Cooperation Center (FECC), MoA Division Chief gengdali@agri.gov.cn Mr Zhou Liao Sichuan Provincial Rural Energy Office Assistant Chief, Domestic Biogas Section zhouliao811026@hotmail.com Mr Zhang Tieyao Chengdu Hongqi Industrial Co. General Manager chinacdhqsy@163.com Mr Liu Xin Energy and Environmental Development Research Center (EED) Managing Director liuxin@eed.com.cn Mr Hu Guoquan BIOMA Assistant Director-General huguoquan1@hotmail.com Mr Shi Guozhong BIOMA Senior Engineer brtc666@yahoo.com.cn Mr Hu Qichun BIOMA Director/Research Fellow qichun204@163.com Ms Zhao Yuexin (Cynthia) BIOMA Deputy Director, R&D 584742115@qq.com Mr Wang Chao BIOMA Senior Engineer nybzqzj@126.com Ms Kate Zheng BIOMA Biogas Expert 985265572@qq.com Mr Liu Xiaofeng Chengdu Institute of Biology, Chinese Academy of Science Research Fellow liuxf@cib.ac.cn Mr Yan Zhiying Chengdu Institute of Biology, Chinese Academy of Science yanzy@cib.ac.cn Mr Gao Lihong Agricultural Engineering Institute Chongqing Academy of Agricultural Sciences Director grantsan@163.com Mr Zhu Jinshan Agricultural Engineering Institute Chongqing Academy of Agricultural Sciences Research assistant jszhu@163.com Mr Wang Guohua Chongqing Rural Energy Office Director lycwgh@126.com Ms He Weiyuan Chongqing Rural Energy Office Mr Zhu Hongguang Tongji University Associated Professor zhuhg@mail.tongji.edu.cn Mr Xu Rui Yunnan Normal University, Solar Energy Institute Associate Professor ecowatch.xr@gmail.com Mr Xuan Liu Centre for Sustainable Environmental Sanitation, University of Science and Technology Beijing PhD Candidate x86liu@qq.com Mr Jihua Tang Initiative Développement (ID) Carbon Finance Officer j.tang@id-ong.org Ms Shirley Yuhuan Shen Gold Standard Foundation Regional manager of China & EA shirley@cdmgoldstandard.org Ms Violet Lo Opportunity International China Board Director and Advisor violetlo@me.com Mr Praveen Urs TUV Rheinland (China) Ltd. Manager AIE & DOE Global Operations praveen.urs@chn.tuv.com Mr Henri Phan TUV Rheinland (China) Ltd. Assistant DOE Manager henri.phan@chn.tuv.com Mr Xu Lei Beijing Yuanda Carbon Assets Investment and Management Co., Ltd. Project Manager carbonxl@126.com Ms Song Xiaona Beijing Yuanda Carbon Assets Investment and Management Co., Ltd. Project Manager carbonsxn@126.com Ms Amelie Xiao WWF China Program Office Communication Officer shxiao@wwfchina.org Mr Zheng Weigang Shaanxi Volunteer Mothers Association for Environment Protection Biogas Project Officer sxmmhb@126.com Mr Pan Junting Northwest A&F University - Shaanxi Mr Jin Zita Northwest A&F University - Shaanxi Mr Michael Li BioEnergy Berlin Environmental Engineer info@bebgmbh.de Mr Zuzhang Xia Energy for All Partnership Secretariat (E4ALL) Access to Energy Specialist xia@energyforall.info From Germany: Mr Florian Arneth German Development Bank (KfW) Senior Project Manager florian.arneth@kfw.de From India: Mr Anand Narayan Selco Foundation Head, Selco Labs anand@selcofoundation.org Mr Kailash Khandelwal Consultant advkck@yahoo.com
  • 35. 35 Mr Christudas ESAF Microfinance & Investments (P) Ltd General Manager (Energy & Dairy) chris@esaf.in From Indonesia: Mr Edi Wibowo Ministry of Energy & Mineral Resources, DGNREEC Deputy Director for Bioenergy, Engineering and Environment edbowo@gmail.com Mr Eko Bambang Sutedjo MEMR, NTB province (Lombok) Head of Mining & Energy Services esutedjo@yahoo.co.id Mr Iggi Haruman Achsien Bank Syariah Mandiri (BSM) Advisor iggi.achsien@gmail.com Mr Sumino LPTP Manager Biogas mino@lptp.or.id Mr Rob de Groot Hivos, Indonesia Domestic Biogas Programme Programme Manager r.degroot@hivos.or.id Mr Sundar P. Bajgain SNV Biogas Advisor sbajgain@snvworld.org From Lao PDR: Mr Phonepasong Sithideth Ministry of Energy and Mines, Institute of Renewable Energy Promotion (MEM) Acting Director of Renewable Energy Development Division phonepasong2010@yahoo.com Mr Sithong Phiphakhavong MAF, Department of Livestock and Fisheries Deputy Director sithongp@yahoo.com Mr Souphavanh Keovilay Biogas Pilot Programme (BPP) BPP Programme Manager souphavanh@biogaslao.org Mr Bastiaan Teune SNV Sector Leader Renewable Energy bteune@snvworld.org Mr Bounthavy Sengtakoun SNV Renewable Energy Advisor bsengtakoun@snvworld.org From Myanmar: Mr Thoung Win Myanmar Engineering Society Chairman Energy & Renew. Energy Committee ctw12416@gmail.com From Nepal: Mr Samir Thapa Alternative Energy Promotion Centre (AEPC) Assistant Director samir.thapa@aepc.gov.np Mr Raju Laudari Alternative Energy Promotion Centre (AEPC) Manager, Climate and Carbon raju.laudari@aepc.gov.np Mr Khagendra Nath Khanal Biogas Sector Partnership-Nepal (BSP-N) Assistant Director knkhanal@bspnepal.wlink.com.np Mr Bishnu Belbase Nepal Biogas Promotion Association (NBPA) Officiating Executive Director bbelbase@nbp-association.org Mr Rajendra B. Pradhan SOLVE-Nepal Executive Director rpradhandkt@gmail.com Mr Lok Nath Ghimire Biogas & Energy Development Company Ltd Managing Director bbi.chitwan@gmail.com Mr Anuj Dhoj Joshi SNV Sector Leader Renewable Energy ajoshi@snvworld.org Mr Keshav C. Das SNV Carbon Finance Advisor kdas@snvworld.org Mr Saroj Rai SNV Senior Renewable Energy Advisor srai@snvworld.org Mr Rajendra Shakya SNV Regional Head of Administration – SNV Asia rshakya@snvworld.org From the Netherlands: Mr Harry Clemens Hivos Programme Officer h.clemens@hivos.nl Mr Fred Marree Fred Marree Consultancy Consultant fmarree@snvworld.org Mr Sanne Castro SimGas BV CEO sannecastro@simgas.org Mr Eric Buijsman Carbon Consultant ericishier@gmail.com Mr Wim J. van Nes SNV Renewable Energy Network Leader wvannes@snvworld.org From Pakistan: Mr Sajjad Haider RSPN/ Pakistan Domestic Biogas Programme Programme Manager sajjad.haider@rspn.org.pk Mr Rana Amir Shafique RSPN/ Pakistan Domestic Biogas Programme Area Manager amir@rspn.org.pk
  • 36. 36 Mr Habib Ur-Rehman BETA Pak Managing Partner habib@betapk.org Mr Rajesh Shrestha SNV Biogas Advisor rshrestha@snvworld.org From the Philippines: Mr Jiwan Acharya Asian Development Bank (ADB) Climate Change Specialist (Energy) jacharya@adb.org Mr Darshak Y. Mehta Asian Development Bank (ADB) CDM Validation Expert dmehta.consultant@adb.org Ms Fely V. Arriola Asian Development Bank, Energy for All Secretariat Access to Energy Expert farriola.consultant@adb.org Ms Clarissa M. Dimaculangan CARD Business Development Service Foundation Sr. Program Manager card.bds@cardbankph.com From Singapore: Ms Suzanne Chew Nexus-Carbon for Development Alliance Director s.chew@nexus-c4d.org From Sri Lanka: Mr Palitha Ranadewa (tbc) Ministry of Economic Development Senior Program Manager palithasedham@gmail.com Mr O. Kithsiri Dissanayake Sri Lanka Sustainable Energy Authority (SLSEA) Chairman chairman@energy.gov.lk Mr K.D.N. Weerasinghe Lanka Biogas Association (LBA) Vice President kdnweerasinghe@yahoo.com From Switzerland: Mr Maxime Bouan BlueOrchard Finance S.A. Analyst maxime.bouan@blueorchard.com From Tanzania: Mr Innocent Mjema CAMARTEC Principal Research Technologist innomjema@yahoo.com From USA: Mr Tao Wang World Bank, Carbon Finance Unit Senior Operations Officer twang2@worldbank.org From Vietnam: Mr Nguyen Xuan Duong MARD, Department of Livestock Production Deputy Director duongcnn@yahoo.com Ms Pham Thi Kim Dung MARD, Department of Livestock Production Deputy Head of Planning and Finance Division kdtd3d@gmail.com Ms Nguyen Thi Minh Nguyet MARD, Biogas Program Division Program Coordinator nguyetntm@biogas.org.vn Ms Nguyen Thi To Uyen Vietnam Biogas Association (VBA) Business Development Coordinator vbavietnam@gmail.com Mr Bui Van Chinh Vietnam Biogas Association (VBA) Member Steering Committee chinhbuivan@fpt.vn Ms Thi Ngoc Linh Duong TYM General Director linh_tym@yahoo.com Ms Dagmar Zwebe SNV RE Advisor/Program Leader dzwebe@snvworld.org From Zambia: Mr Lewis Mupeta Bangwe African Development Bank (AfDB) Agricultural Specialist l.bangwe@afdb.org
  • 37. 37 Annex II – Workshop Agenda International workshop “Learning from national domestic biogas programmes in Asia; mapping opportunities for developing and resourcing of biogas sectors including carbon financing” 20-22 November 2012, Art Senses Hotel and Place, Chengdu, PR China Agenda Monday, 19 November 2012: 20.00-21.30 Welcome reception (drinks & light snacks) at Art Senses Hotel and Place, Binfen Hall Tuesday, 20 November 2012: 08.00-09.00 Registration, Art Senses Hotel and Place Ms Rachel Qiu Kun Ms Fely Arriola Mr Rajendra Shakya Mr Fred Marree Plenary Opening Session facilitated by Mr Zuzhang Xia, Energy for All Partnership, Asia 09.00-09.45 -Opening address by Mr Wang Yanliang, Deputy Director General, Department of Science & Technology and Education, Ministry of Agriculture, China -Welcome address by Mr Li Qian, Director-General, Biogas Institute of Ministry of Agriculture, China -Opening remarks by Mr Jiwan Acharya, Climate Change Specialist (Energy), Sustainable Infrastructure Division, Regional and Sustainable Development Department, Asian Development Bank -Opening remarks by Mr Wim J. van Nes, Network Leader Renewable Energy, SNV Netherlands Development Organisation -Group picture Ms Hao Xianrong Mr Li Jingming Mr Qu Feng Ms Yan Long