Projects
Project Brief
Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.
- Project name
- BioEnergia S.A.
- Project ID
- 6577
- Fiscal year
- 2006
- Status
- Not Active
- Guarantee holder
-
Biothermica Energy Inc.
- Investor country
-
Canada
- Host country
-
El Salvador
- Environmental category
- A
- Sector
-
Solid Waste Management
- Gross exposure
- $1.8 million
- Project type
- Non-SIP
The first phase of the project involves the construction and operation of facilities for capturing and flaring gas generated by municipal waste at a landfill that serves metropolitan San Salvador. The landfill currently receives 500,000 tons of solid waste a year, generating some 7,500 tons a year of methane gas. With the landfill slated to expand to meet the entire country’s municipal waste disposal needs, methane gas emissions are expected to double within the next decade. The global warming potential of methane is 21 times higher than that of carbon dioxide. Phase two of the project will involve the construction of a 4 MW landfill gas power plant.
Emission reductions from the captured gas are expected to be between 140,000 and 190,000 tons of carbon dioxide equivalent a year from 2006-2012. The guarantee holder, Biothermica Energy Inc., has completed the Kyoto Protocol validation process and has agreed to sell carbon credits to a private carbon fund on delivery of the certified emission reductions.
This groundbreaking deal signals that projects in smaller developing countries can indeed cash in on the benefits of reducing greenhouse gases, and also illustrates how carbon finance can work in a sector that developing countries can easily tap into. MIGA aims to increase its support for projects that mitigate harmful practices associated with global warming.
