PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM Executive Board

CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) Version 03 - in effect as of: 22 December 2006 CONTENTS A. B. C. D. E. General description of the small scale project activity Application of a baseline and monitoring methodology Duration of the project activity / crediting period Environmental impacts Stakeholders comments Annexes Annex 1: Contact information on participants in the proposed small scale project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring Information Annex 5: Project Timeline

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Revision history of this document

Version Number 01 02

Date 21 January 2003 8 July 2005

Description and reason of revision Initial adoption The Board agreed to revise the CDM SSC PDD to reflect guidance and clarifications provided by the Board since version 01 of this document. As a consequence, the guidelines for completing CDM SSC PDD have been revised accordingly to version 2. The latest version can be found at <http://cdm.unfccc.int/Reference/Documents>. The Board agreed to revise the CDM project design document for small-scale activities (CDM-SSC-PDD), taking into account CDM-PDD and CDM-NM.

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22 December 2006

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SECTION A. General description of small-scale project activity A.1 Title of the small-scale project activity: >> Rocky Farms, Inc. Methane Recovery and Electricity Generation Project Version 3 29 September 2008 A.2. Description of the small-scale project activity: >> The Rocky Farms, Inc. Methane Recovery and Electricity Generation Project (hereafter, the Project) developed by developed by Rocky Farms, Inc (hereafter referred to as the Project Developer or Rocky Farms) with technology provided by Philippine Bio-Sciences Co., Inc. (PhilBIO) is an anaerobic digestion (AD) swine wastewater treatment project at the Rocky farrow to finish swine farm located in Sitio Kalantas, Quisao, Pililla, Rizal, Philippines (hereafter referred to as the Host Country). The project is hosted by Rocky Farms Inc. Rocky Farms waste management operations involve scraping and hosing down its animal waste with fresh water. The wastewater is then channelled to a series of concrete lagoons (oxidation ponds). The animal waste material from the farm degrades anaerobically in the farms lagoon system producing significant amounts of methane. The Project Developer will install a covered in-ground anaerobic reactor that will promote rapid anaerobic decomposition of organic materials in the wastewater and capture the generated biogas. The anaerobic reactor system also treats the organically laden wastewater to reduce the amount of Chemical Oxygen Demand (COD) and Biochemical Oxygen Demand (BOD) contained prior to the wastewater reaching the main pond system. The biogas produced in the projects anaerobic digester will be used to generate electricity for use on site. Currently the farm relies on electricity from the Luzon grid. With the implementation of the project activity, electricity will be generated from the renewable biogas and will displace the grid electricity. No emissions reductions will be claimed in the project activity from displacing grid electricity as the amount of emission reductions is not significant. Development of the Project will directly reduce greenhouse gas emissions produced by the release of methane from the lagoons and carbon dioxide emissions resulting from the generation of grid electricity. The Project is helping the Host Country fulfil the sustainable development goals outlined in Philippine Agenda 21.

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The project at Rocky Farm is the first of its kind and will act as a clean technology demonstration project within the wastewater management sector, which could be replicated across the Philippines and the region; The project is an important capacity building activity, demonstrating the use of a new financial mechanism for funding of the renewable energy and waste management sector via the Clean Development Mechanism (CDM); The project increases diversity and security of energy supplied through energy self sufficiency; The project will result in significant reduction in levels of biological oxygen demand, chemical oxygen demand and total suspended solids (TSS) and in turn will result in cleaner effluents. These effluents can be recycled on-site or off-site as irrigation water. Benefits shall also accrue to the communities in terms of cleaner water ways. The project will make the farm more competitive and thus ensure long term employment to the local residents, be a source of local taxes for the Local Government Units (LGU) which in turn will improve delivery of basic services to the community; The multiplier effect of this investment is likely to bring additional benefits, such as employment opportunities, particularly in the agro-industrial sector; The project will make use of methane rich biogas through a closed loop process, thereby reducing greenhouse gas emissions; and, The project will improve local air quality and significantly reduce odour, which in turn will directly benefit the adjoining communities.

A.3. >>

Project participants:

Name of Party involved (*) ((host) indicates a host Party) The Philippines (host)

Private and/or public entity(ies) Project participants (*) (as applicable)

Kindly indicate if the Party involved wishes to be considered as project participant No

Rocky Farms, Inc.

United Kingdom of Great EcoSecurities Group Plc. Britain and Northern No EcoSecurities Group Limited Ireland (*) In accordance with the CDM modalities and procedures, at the time of making the CDM-PDD public at the stage of validation, a Party involved may or may not have provided its approval. At the time of requesting registration, the approval by the Party(ies) involved is required.

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A.4.

Technical description of the small-scale project activity:

The covered in-ground anaerobic reactor, or CIGAR, breaks down organic contaminants through a three-step biological process where wastewater is treated in the absence of oxygen. The wastewater is held in the reactor for at least 30 days where specialized bacteria consume the waste and release methane that is utilised as biogas for on-site electricity generation (see figure 1).

Figure 1: CIGAR pond reactor1 The project uses CIGAR anaerobic digestion technology utilizing 1.0mm High Density Polyethylene (HDPE) as a flexible membrane liner. HDPE is an essentially impermeable, resilient plastic which has high durability in sunlight and rainy weather. It is produced by HUITEX from Taiwan. HDPE liners and covers are used to provide a gas seal to prevent methane from escaping to the atmosphere and prevent leachate from escaping to the underground aquifer. The CIGAR system is sealed 100% of the time and results in at least 95% destruction of BOD, and 80% reduction of COD. Suspended solids, dissolved solids and colour are all improved in the CIGAR. The long retention time of at least thirty days in the CIGAR at approximately 35 degrees Celsius reduces pathogenic material. Methane gas makes up at least 60% of the biogas by volume. The biogas will be used to generate electricity for the farm through a 60kW generator. This electricity will partially displace the grid supply and the maximum renewable electricity generation is less than the total farm requirements. A.4.1. Location of the small-scale project activity: >> A.4.1.1. >> The Philippines A.4.1.2. >> Rizal Region/State/Province etc.: Host Party(ies):

Source: Cost Estimation of Biogas Plants in Piggeries: A Manual for Hog Raisers, prepared by the Development Bank of the Philippines.

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A.4.1.3. >> Sitio Kalantas, Pililla

City/Town/Community etc:

A.4.1.4. Details of physical location, including information allowing the unique identification of this small-scale project activity : >> The project is located in the municipality of Quisao, in the province of Rizal in the Philippines. The address of the project is: Rocky Farms, Inc., Sitio Kalantas, Quisao, Pililla, Rizal, Philippines The GPS Coordinates are: N 13 55.775', E 121 23.844' A.4.2. Type and category(ies) and technology/measure of the small-scale project activity: >> The category for the project activity according to the UNFCCCs published Appendix B - Indicative Simplified Baseline and Monitoring Methodologies for Selected Small-Scale CDM Project Activities is: Type III.D (reference AMS-III.D, version 13, EB 33) Methane recovery in agricultural and agro industrial activities. Sectoral Scope 15: Agriculture This project category comprises methane recovery and destruction from manure and wastes from agricultural or agro-industrial activities that would be decaying anaerobically in the absence of the project activity by installing methane recovery and combustion system to an existing source of methane emissions. A.4.3 >> Annual estimation of emission reductions over the chosen crediting period 3,201 3,201 3,201 3,201 3,201 3,201 3,201 22,407 7 (renewable up to 21 years) 3,201 Estimated amount of emission reductions over the chosen crediting period:

Years

2009 2010 2011 2012 2013 2014 2005 Total estimated reductions (tonnes of CO2) Total number of crediting years Annual average over the crediting period of estimated reductions (tonnes of CO2)

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A.4.4. Public funding of the small-scale project activity: >> The project has not received and is not seeking public funding. A.4.5. Confirmation that the small-scale project activity is not a debundled component of a large scale project activity: Based on the information provided in Appendix C of the Simplified modalities and procedures for smallscale clean development mechanism project activities, this Project is not a debundled component of a larger project activity since the project participants have not registered nor operated another project in the region surrounding the project boundary.

SECTION B. Application of a baseline and monitoring methodology

B.1. Title and reference of the approved baseline and monitoring methodology applied to the small-scale project activity: >> Project activity type III.D (reference AMS-III.D version 13) - Methane recovery in agricultural and agro industrial activities. B.2 Justification of the choice of the project category: >> The simplified baseline and monitoring methodology AMS III.D., version 13, EB 33, Methane recovery in agricultural and agro industrial activities, is applicable. The project conforms to project category III.D since the project reduces anthropogenic emissions by methane recovery and destruction from manure from agricultural or agro-industrial activities that would be otherwise be decaying anaerobically. This selection is appropriate because the alternative to the project activity would be to continue with the business as usual scenario. The farm would continue to manage waste water through the existing anaerobic lagoon system and would continue to rely exclusively on the power grids for electricity. The implementation of project activity results in emission reductions lower than 60,000 tCO2e annually. B.3. Description of the project boundary: >> According to AMS.III.D., the project boundary is the physical geographical site of the methane recovery facility. As such, the project boundary encompasses the anaerobic digester, the biogas network that carries captured methane to the generator, and the generator.

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Figure 2. Project Boundary under AMS.III.D.

B.4.

Description of baseline and its development:

>> As specified in Appendix B: The appropriate baseline for project category Type III.D (AMS-IIID, version 13) is found in paragraph 7. Methane recovery in agricultural and agro industrial activities (AMS-III.D, version 13) For the methane recovery component of the project activity, the baseline has been calculated according to project activity type III.D (version 13), Paragraph 7 which states: The baseline scenario is the situation where, in the absence of the project activity, biomass and other organic matter are left to decay anaerobically within the project boundary and methane is emitted to the atmosphere. Baseline Emissions (BEy) are calculated ex ante using the amount of raw waste material that would decay anaerobically in the absence of the project activity, with the most recent IPCC Tier II approach (please refer to the chapter Emissions from Livestock and Manure Management under the volume Agriculture, Forestry and other Land use of the 2006 IPCC Guidelines for National Greenhouse Gas Inventories). The project complies with this activity type as, in the absence of the project activity, organic matter from swine wastewater is left to decay anaerobically within the project boundary in anaerobic lagoons. The methane generated from is subsequently freely released to the atmosphere.

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Date of completing the final draft of this baseline section (DD/MM/YYYY): 30/08/2007.

The baseline study was prepared by: Mr. Oman Singh, EcoSecurities Ltd. Tel: +60 3 2282 0612/32 E-mail: oman.singh@ecosecurities.com

B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the registered small-scale CDM project activity:

MARKET SITUATION & NATIONAL POLICIES: The Philippines swine inventory as of January 1, 2007 was estimated at 13.5 million head, up by 3.16 % compared to previous year's level About 73 % of the total inventory came from backyard farms while 27% was from commercial farms. According to the Philippine Bureau of Agricultural Statistics, the swine industry, which accounted for 81 % of total livestock production registered a 3.66 % growth in 2006. Filipinos are large consumers of pork with an annual per capita consumption of 13.88 kg excluding offals and processed meat and volume of imports grow yearly, with 2006 recording an increase of 13.6%.2 The industry faces a number of obstacles including the spread of economically devastating diseases, high marketing and transaction costs, erratic supply of imported feed ingredients, supplements and biologics, and the limited availability of genetically superior breeding stock.3 The main regulatory agencies that monitor the industry are the Bureau of Animal Industry (BAI) and the National Meat Inspection Commission (NMIC) under the Philippine Department of Agriculture. Environmental regulations are monitored and enforced by the Department of Environment and Natural Resources (DENR). The primary environmental laws applicable to the project are the Clean Water Act (2003) and the Clean Air Act (1999). ADDITIONALITY: According to Attachment A to Appendix B of the simplified modalities and procedures for CDM smallscale project activities, evidence as to why the proposed project is additional is offered under the following categories of barriers: (a) investment barrier, (b) technological barrier, and (c) prevailing practice. a) Investment Barrier

2 Bureau of Agricultural Statistics, Department of Agriculture, Philippines, Swine Industry Performance Report Jan - Dec 2006 <http://www.bas.gov.ph> 3 Abuel-Ang, Pia, Philippines Livestock and Products Annual 2004, USDA Foreign Agricultural Service, September 2004

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Small swine farms have a difficult time securing financing for the implementation of biogas waste water management projects and, when they are able to secure financing, the interest rates tend to be high at an average of 15.6%.4 The following factors contribute to the investment barrier which these projects face: Perceived Risk - Most local banks are not interested in these projects primarily because of lack of knowledge and experience with the technology. Most small farmers perceive they are not eligible or unable to obtain attractive terms in loans and differential access to credit is revealed in the lower incidence of borrowing for production purposes by smallholders (4-10%) compared to large-scale farms (24-27%). This is reinforced by the relatively high percentage of smallholders who do not attempt to borrow from a bank because they perceive their chances of being granted a loan as being low (31%).4 Current Practice - Eighty percent (80%) of the backyard and commercial farms deposit their waste products in nearby creeks and rivers. From consultations conducted in a study, the waste management option that farms would most likely adopt is composed only of wastewater reduction/minimization and disposal. Waste treatment and recycling/reuse are not included in their options since they see waste treatment strategy as an additional expense.5 The current oxidation pond based wastewater treatment method is considered standard practice in the Philippines and the region only due to compliance reasons. Moreover, for the Project Owner, the current pond system (business as usual scenario) is attractive, given that it works to required specification and requires virtually no management input to achieve the key parameters. All required land is appropriated and the current system has sufficient capacity to handle additional waste. Lowest Cost - The current system represents the lowest cost option, with the only cost being the opportunity cost of alternative land use.

The inclusion of CER revenues has therefore become an important part of the Project Owners and Project Developers implementation and financing strategy. (b) Technological Barrier: The predominant technology for piggery wastewater treatment in the Philippines is through a series of lagoons (oxidation ponds).6 Biological treatment of piggery wastewater to produce biogas is a new and relatively unknown technology in the host country. The lack of available knowledge and confidence in the technology, especially among small swine farms, makes this type of development difficult to establish. As a result, most swine farm owners view this technology as risky and this risk is reflected in the fact that there were fewer than ten swine anaerobic digestion projects in the host country when this project was started. Moreover, many farmers are concerned that a bio-digester project is too complex to operate and maintain. The anaerobic digestion and biogas system utilized in the project scenario is quite different than previous experience in the Philippines. The project scenario represents a more technologically advanced alternative to the business as usual scenario, and one that carries higher perceived risk.
4 Christopher L. Delgado,, et al., Policy, Technical, and Environmental Determinants and Implications of the Scaling-Up of Livestock Production in Four Fast-Growing Developing Countries: A Synthesis <http://www.fao.org/wairdocs/lead/x6170e/x6170e00.htm>

Ma. Angeles O. Catelo, et al., Backyard And Commercial Piggeries In The Philippines: Environmental Consequences And Pollution Control Options
6

Cost Estimation of Biogas Plants in Piggeries: A Manual for Hog Raisers, prepared by the Development Bank of the Philippines.

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Anaerobic digestion systems are perceived as relatively high risk, being based upon the function of a biological system that is neither 100% characterised, nor performance guaranteed. The biological system is at constant risk of chemical shocks that can wipe out the anaerobes and biological activity (and subsequently the waste management and energy production regimes, which are both key to commercial operations). AD systems require constant and ongoing precise management of a variety of elements, including water flows, pH levels, etc. In general, they are perceived as a risky solution. Overall, the project scenario involves higher perceived risks due to the performance uncertainty and a low market share of the new technology. (c) Prevailing Practice: The Rocky farms project is the very first prototype CIGAR anaerobic digester project in the Philippines and its the first-of-its-kind in Philippines. It was part of CDM capacity building in Philippines and was first considered for CDM as early as 1999.7 Use of the CIGAR technology utilized in the project activity is not common practice in the Philippines and represents a higher risk alternative to the business as usual scenario. The minimization of wastewater is considered most desirable for pig farms and wastewater treatment with a lagoon system would be considered if there is available space, although the lagoon system is not profitable at all.5 There is little experience of utilising aerobic or anaerobic technologies in Philippines. The highest priority for commercial farms is the management of their waste discharges to simply maintain compliance with local regulation. From the project farm operators perspective, the existing lagoon system is a cheap and sufficient way to clean the waste water. SUMMARY: The current and expected practice in the host nation, which commercial farms rely almost exclusively on lagoon based treatment facilities for piggeries wastewater management, as well as the combination of lack of access to financing and perceived risks of the selected technology, clearly demonstrate that the Project is additional and therefore not the baseline scenario. The prohibitive barriers that exist in the Philippines are confirmed by the observed trend in current piggery waste water management practices. The barrier analysis above clearly demonstrates that the most plausible baseline scenario for wastewater treatment is the prevailing practice of lagoon systems.

B.6.

Emission reductions: B.6.1. Explanation of methodological choices:

>> Emissions Reductions: According to AMS.III.D. (version 13), Baseline emissions are calculated ex ante using the amount of the waste or raw material that would decay anaerobically in the absence of the project activity, with the most

Alberto R. Dalusung III, Capacity Building in Clean Development Mechanism Project Activities, Final Report, September 1999, Under contract no. GLO/98/G55 with UNDP.

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recent IPCC tier 2 approach. The actual emission reduction achieved by the project during the crediting period will be calculated using the amount of methane recovered and destroyed by the project activity and the maximal yearly emission reduction is limited to the yearly methane generation potential calculated in the PDD for that year.

Hence, for ex-ante emission reduction calculations: Total emissions reductions = Total baseline emissions - Total project emissions In paragraph 6, of AMS III D, version 13; Project emissions are defined as:
Project Emissions consists of CO2 emissions from use of fossil fuels or electricity for the operations of the facility

The only project-associated equipments are 0.25HP blowers used to direct the collected biogas to the gas handling system. This consumption will be met by the biogas electricity generation as it would only run when the biogas generator is running. Since all the biogas collected will be utilised for energy generation, there will be zero project emissions of this nature because the minimal power needs for operation of the equipment associated with the CIGAR will be met entirely with renewable biogas. Project emissions from energy generation will be taken into account where a 90% combustion efficiency of biogas generator is applied. This approach is conservative as typical combustion efficiencies of internal combustion engines exceeds 95%. Thus the total project emissions: PEy equals to project emissions from energy generation PECH4_IC,y.

B.6.2. Data and parameters that are available at validation:

Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment:

Swine Level (Number of Swine) Head of Swine The number of swine in the facility (breeding and non-breeding) will determine the amount waste generated, the facility design, and digester design In house data from the farmers 879 (Breeding), 5746 (Market) The numbers of swine will be the basis of emissions reductions calculations based on the IPCC 2006 Tier II approach.

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Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment:

Average Weight of Swine Kg The average weight of swine (breeding and non-breeding) will determine the amount waste generated, the facility design, and digester design In house data from the farmers 200.55 (Breeding), 40.12 (Market) The average weights of swine will be the basis of emissions reductions calculations based on the IPCC 2006 Tier II approach.

B.6.3 Ex-ante calculation of emission reductions: >> Total Emissions reductions from AMS IIID, v 13 are calculated ex ante: Emission Reductions = BEy - PEy BECH4,y PEy ER 3,557 tCO2e/yr 640 tCO2e/yr 5,761 tCO2e/yr

Total Baseline Emissions are calculated ex ante as follows:

BEelec/heat,y is zero as no emissions reductions being claimed from displacing Grid Electricity. Since there are no foreseeable project emissions as described in Section B.6.1; total baseline emissions will be equivalent to:

BECH4,y BEelec/heat,y BEy

3,557 tCO2e/yr 0.0 tCO2e/yr 3,557 tCO2e/yr

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Parameter GWPCH4 DCH4

Value 21 0.00067

Unit t/Nm3

Source/Comment ACM0010

Breeding swine

Parameter MCFj Bo Nbreeding VSbreeding MSbreeding breeding_BE

Value 0.8 0.45 879 203.3 100% 64,342.2

Unit

kg CH4/Kg VS head Kg VS/head*yr

Source/Comment Annual Default from IPCC 2006 Tier II Default from IPCC 2006 Tier II funciton of genetics Site data Default from IPCC 2006 Tier II and site data Site data

VSbreeding

VSLT,y was determined by scaling default IPCC values as per guidance in ACM0010, equation (4). VSdefault was used to adjust for a site-specific average animal weight as shown here: Source/Comment Parameter Value Unit weighted average of sow and Wsite_breeding 200.5460751 kg/head boar weights from site data IPCC default value, function of Wdefault_breeding 180 kg/head genetics Kg IPCC default value, function of VSdefault_breeding 0.5 VS/head*day genetics treatment plant is operational ndbreeding 365 days/yr

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VSbreeding

Kg 203.3 VS/head*day

Market Swine

Parameter MCFj Bo Nmarket VSmarket MSmarket market_BE VSmarket

Value 0.8 0.45 5,746 91.1 100% 188,496.9

Unit % kg CH4/Kg VS head Kg VS/head*yr

Source/Comment Annual Default from IPCC 2006 Tier II Default from IPCC 2006 Tier II funciton of genetics Site data Default from IPCC 2006 Tier II and site data Site data

VSLT,y was determined by scaling default IPCC values as per guidance in ACM0010, equation (4). VSdefault was used to adjust for a site-specific average animal weight as shown here: Source/Comment Parameter Value Unit weighted average all swine Wsite_market 40.12339018 kg/head subcatories based on weight from site data IPCC default value, function of Wdefault_market 45 kg/head genetics Kg IPCC default value, function of VSdefault_market 0.28 VS/head*day genetics ndmarket 365 days/yr treatment plant is operational Kg 91.1 VS/head*day

VSmarket

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BECH4,y

3,557.4 tCO2e/yr

Project Emissions from biogas combustion in generator The only associated project emissions are from biogas combustion, thus

PEy = PECH4_IC,y

Equivalent to :

PECH4_IC,y = BECH4,y * (1- fgenset_)

Parameter BECH4,y fgenset Value 3557 90% Unit Source/Comment calculated from EPC provider

PECH4_IC,y PEy

356 tCO2e/yr 356 tCO2e/yr

Ex-Post Baseline
The ex-post baseline corresponds to the lower of either: the baseline based on Tier II calculations and made ex-ante, or the baseline based on metered biogas production. The latter is to be calculated as follows:

MDy = BGburnt,y * wCH4,y * DCH4,y* GWPCH4

Where: MDy: Methane captured and destroyed by the project activity in the year y (t CO2e) BGburnt, y: Biogas flared or used as fuel in the year y (m3) wCH4, y:: Methane content in biogas in the y (mass fraction) DCH4, y : Density of methane at the temperature and pressure of the biogas in the year y (tonnes/m3) GWPCH4: Methane global warming potential (21)

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Baseline Determination The baseline is the lower of the baselines predicted by the Tier II approach and the biogas-based one. In each verification period the baseline will be determined as such, using monitored data to calculate the biogas baseline. As per the methodology AMS-III.D version 13 paragraph 9, no leakage calculation is required.

B.6.4 >>

Summary of the ex-ante estimation of emission reductions:

Years

2009 2010 2011 2012 2013 2014 2015 Total (tonnes of CO2)

Estimation of baseline emissions (tonnes of CO2 e) 3,557 3,557 3,557 3,557 3,557 3,557 3,557 24,902

Estimation of project activity emissions (tonnes of CO2e) 356 356 356 356 356 356 356 2,492

Estimation of emission reductions (tonnes of CO2 e) 3,201 3,201 3,201 3,201 3,201 3,201 3,201 22,407

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B.7

Application of a monitoring methodology and description of the monitoring plan: B.7.1 Data and parameters monitored: BGburnt,y (fuelled) Nm3 (Normal Cubic Meters at 0 C and 1.01325bar) Biogas used as fuel Project developer As measured The amount of biogas used as fuel in the generator will be monitored continuously with a cumulative thermal flow meter and recorded daily.

Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment:

The meter will be maintained and calibrated regularly in line with manufacturers recommendations. The thermal flow meter is normalised, thus temperature and pressure do no need to be monitored separately. wCH4,y, % Methane content of Biogas Project Developer 64 The methane content of the gas to be combusted will be analysed and recorded monthly with a portable gas analyser.

Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment:

The gas analyzer will be maintained and calibrated regularly in line with manufacturers recommendations.

EGgenerated kWh Electricity generated on site Project developer 525,600 Renewable electricity generated from biogas generator will be monitored continuously with a cumulative electricity meter and recorded daily.

Meter will be maintained and calibrated regularly in line with manufacturers recommendations.

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Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment:

genset % Combustion efficiency for biogas genset Project developer

90% A 90% default value is be used and continuous check of compliance with the manufacturers specification will be done.

The biogas genset will be maintained and serviced regularly in line with manufacturers recommendations.

Monitoring of Sludge Application Removal and application of sludge leaving the reactor. Project developer

The sludge that accumulates at the bottom of CIGAR will be removed and dried in an aerobic manner to be used as fertilizer. Proper soil application of the sludge aerobically will be done to ensure there is negligible methane from anaerobic conditions.

Sludge removal will be done after an estimated 10 years of operation. In any event there is removal and soil application of sludge; the process will be monitored to ensure the conditions are aerobic.

B.7.2 Description of the monitoring plan: >> This section details the steps taken to monitor on a regular basis the GHG emissions reductions from the project. The Monitoring Plan for this project has been developed to ensure that from the start, the project is well organised in terms of the collection and archiving of complete and reliable data. Prior to the start of the crediting period, the organisation of the monitoring team will be established. Clear roles and responsibilities will be assigned to all staff involved in the CDM project. The Project Developer will have a designated a person on site that will be responsible for monitoring emissions reductions of the project activity. Staff will receive some basic CDM training to ensure that they understand the importance of complete and accurate data and records for CDM monitoring. In addition to these qualified personnel will be designated to handle and operate equipment and machinery at the project site.

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A formal set of monitoring procedures will be established prior to the start of the project. This will ensure that high quality data is obtained. Specifically, data and records will be checked prior to being stored and archived. Data from the project will be checked to identify possible errors or omissions. All data required for verification and issuance will be kept for at least two years after the end of the crediting period or the last issuance of CERs of this project, whichever occurs later. Data will be archived electronically and data backup will be maintained. Paper data back up will also be available. All equipment will be calibrated and maintained in accordance to the manufacturers recommendations to ensure accuracy of measurements. Records of calibration and maintenance will be retained as part of the CDM monitoring system. A final data check and on-site inspection will be done by EcoSecurities prior to any verification. The ex-post emissions reductions in any year are limited to the yearly methane generation potential as calculated ex-ante. The sludge that accumulates at the bottom of CIGAR will be removed after approximately 10 years of operation and dried in an aerobic manner to be used as fertilizer.

B.8 Date of completion of the application of the baseline and monitoring methodology and the name of the responsible person(s)/entity(ies) >> Date of completing the final draft of this baseline and monitoring section (DD/MM/YYYY): 29/02/2008. The baseline and monitoring study was prepared by: Mr. Oman Singh, EcoSecurities Ltd. Tel: +60 3 2282 0612/32 E-mail: oman.singh@ecosecurities.com

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SECTION C. Duration of the project activity / crediting period C.1 Duration of the project activity:

C.1.1. Starting date of the project activity: >> 01/03/2000 C.1.2. Expected operational lifetime of the project activity: >> 25y-0m C.2 Choice of the crediting period and related information: C.2.1. Renewable crediting period C.2.1.1. Starting date of the first crediting period:

>> 01/01/2009 or on the date of registration of the CDM project activity, whichever is later. C.2.1.2. >> 7y-0m C.2.2. Fixed crediting period: C.2.2.1. >> Not Applicable C.2.2.2. >> Not Applicable Length: Starting date: Length of the first crediting period:

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SECTION D. Environmental impacts >> D.1. If required by the host Party, documentation on the analysis of the environmental impacts of the project activity: >> The host country does not require an analysis of the environmental impacts of the project activity. However, the farm has been issued an environmental compliance certificates (ECC) and have valid Permits to Discharge. It should be noted, further, that the project activity generates considerable environmental benefits. The CIGAR system decreases GHG emissions through two significant avenues. Prior to the project activity, the farm relied on local grids for electricity generation. With the implementation of the project activity, biogas collected from the degradation of swine-farm waste is used for electricity generation, thus eliminating the demand for electricity from the grid. In addition to directly reducing the emission of GHGs by eliminating a source of fossil fuel combustion, the project activity captures methane (CH4) from an industrial source, preventing its release into the atmosphere. In addition to reducing GHG emissions, this closed system of energy production produces considerable improvements for waste management at the farm. Improperly managed and insufficiently processed wastewater discharge from piggeries can be hazardous to aquatic ecosystems and can pollute waterways. The extent of pollution depends on the amount of organic material and solid material contained within the wastewater as measured by biochemical oxygen demand (BOD), chemical oxygen demand (COD), suspended solids, and colour indicators. The CIGAR system, owing to its anaerobic digestion properties, reduces COD by approximately 80%, reduces approximately 95% of harmful BOD, diminishes suspended solids, and improves the colour quality of the wastewater. The closed cell CIGAR technology also eliminates foul odour that is a significant concern to nearby populations.

D.2. If environmental impacts are considered significant by the project participants or the host Party, please provide conclusions and all references to support documentation of an environmental impact assessment undertaken in accordance with the procedures as required by the host Party: >> There are no foreseeable significant environmental impacts considered significant by the project participants. Section D.1 elaborates the sustainable development and positive contributions of the project to waste management and energy generation in the farm.

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SECTION E. Stakeholders comments >> E.1. Brief description how comments by local stakeholders have been invited and compiled: >> The comments of stakeholders were articulated in an open forum conducted at Brgy. Tumana, San Ildefonso, Bulacan on December 12, 2005. The participants in the stakeholder consultation open forums consisted (but were not limited) of the following: Representatives from the Provincial Government Development Unit, Representatives from the Barangay Local Governance Unit, and Residents living near the farm. Representatives of the Environment & Management Bureau (EMB) of the Department of Environment & Natural Resources (DENR) Other Swine Farm owners

The stakeholder consultations commenced with the brief introduction of Cargill Environmental Finance, EcoSecurities Philippines and Infratex by Mr. Arnold S. Bufi of EcoSecurities. Arnold also introduced the participants from the host Barangay, representatives from the municipality of Sta. Maria, and other stakeholders. After the brief introduction, Mr. Arnold S. Bufi of EcoSecurities Philippines also presented the clean development mechanism (CDM) concept, the motivation for the project, the Kyoto Protocol and the proposed methane recovery project for Rocky Farm. After the presentation, an open forum was carried out to elicit comments and issues from the various stakeholders.

E.2. >>

Summary of the comments received:

SUMMARY OF ISSUES AND CONCERNS AND RESPONSES/RECOMMENDED MEASURES TO ADDRESS THE ISSUES Issues Raised Interest on the part of community members to pipe biogas to their homes or fill the biogas into tanks from Rocky Farm. Response/Recommended Measures to Address the Issues PhilBio staff explained that they discourage their clients from doing so because it is a fire hazard and there may be regulatory issues involved. For storage in tanks, it requires specialized equipment to put the biogas into cylinder tanks.

Local residents wanted to know how PhilBio staff explained that the project will reduce air and they would see the sustainable water pollution, and will result in odour reduction and climate development benefits of the project. protection.

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E.3. Report on how due account was taken of any comments received: >> All questions were answered and addressed in full. Where applicable, and where the comments were of specific concern to the stakeholders, due account was taken; and a summary of issues and concerns, and responses/ recommended measures to address these issues were provided. They are tabled as in section E.2.

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Annex 1 CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY Organization: Street/P.O.Box: Building: City: State/Region: Postfix/ZIP: Country: Telephone: FAX: E-Mail: URL: Represented by: Title: Salutation: Last Name: Middle Name: First Name: Department: Mobile: Direct FAX: Direct tel: Personal E-Mail: Organization: Street/P.O.Box: Building: City: State/Region: Postfix/ZIP: Country: Telephone: FAX: E-Mail: URL: Represented by: Title: Salutation: Last Name: Middle Name: First Name: Department: Rocky Farms, Inc. Circumferential Road Antipolo City Rizal Philippines

Mr. Ileto Jeffrey

+632 697 1708

EcoSecurities Group Plc. 40 Dawson Street Dublin Dublin 02 Ireland +353 1613 9814 +353 1672 4716 info@ecosecurities.com www.ecosecurities.com Company Secretary Mr. Browne Patrick -

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Mobile: Direct FAX: Direct tel: Personal E-Mail: Organization: Street/P.O.Box: Building: City: State/Region: Postfix/ZIP: Country: Telephone: FAX: E-Mail: URL: Represented by: Title: Salutation: Last Name: Middle Name: First Name: Department: Mobile: Direct FAX: Direct tel: Personal E-Mail:

cdm@ecosecurities.com EcoSecurities Group Limited. 40/41 Park End Street 1st Floor Park Central Oxford OX1 1JD United Kingdom +44 (0) 1865 202 635 +44 (0) 1865 251 438 uk@ecosecurities.com www.ecosecurities.com Director Mr. Fernando Adrian cdm@ecosecurities.com

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Annex 2 INFORMATION REGARDING PUBLIC FUNDING - Not applicable -

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Annex 3 BASELINE INFORMATION Parameters Used in Baseline Calculations. Parameter GWPCH4 DCH4 Value Unit 21 tCO2e/tCH4 0.00067 t/Nm
3

Comment/Source GWP of methane / IPCC Density of methane at normal conditions: temperature (20 C) and 1 atm pressure / ACM0010 Annual methane conversion factor (MCF) for an anaerobic lagoon / IPCC 2006 table 10.17, chapter 10, volume 4 Maximum methane producing potential of the volatile solid generated / Default from IPCC 2006 Tier II Number of animals of breeding type for the year y / Site data in the form of a pig census form filled out by farm manager for year 2007 Number of animals of market type for the year y / Site data in the form of a pig census form filled out by farm manager for year 2007. Fraction of manure handled in system j / Site data Average animal weight of a defined population at the project site in kg / Site data in the form of a pig census form filled out by farm manager for year 2007 Default average animal weight of a defined population in kg from where the data on VSdefault is sourced Default value for the volatile solid excretion per day on a dry-matter basis for a defined livestock / IPCC default value, function of site genetics Adjusted volatile solid excretion per year on a dry-matter basis for market swine at the project site in kg-dm/animal/yr Average animal weight of a defined population at the project site in kg / Site data Default average animal weight of a defined population in kg from where the data on VSdefault is sourced

MCFj

0.8

Bo

0.45 kg CH4/Kg VS

Nbreeding

879 head

Nmarket

5,746 head

MSBl,j Wsite_market

100% 40.1 kg/head

Wdefault_market

45 kg/head

VSdefault_market

0.28 Kg VS/head*day 91.1

VSmarket,y

Wsite_breed Wdefault_breed

200.5 180

kg/head kg/head

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VSdefault_breed

0.5 Kg VS/head*day 203.3

VSbreed,y

fgenset

90 %

Default value for the volatile solid excretion per day on a dry-matter basis for a defined livestock / IPCC default value, function of site genetics Adjusted volatile solid excretion per year on a dry-matter basis for breeding swine at the project site in kg-dm/animal/yr Combustion efficiency of generator. Inclusion of this value is very conservative and typical combustion efficiencies for internal combustion engines exceed 95%.

Default IPCC values for Swine. Breeding Animals Genetics Avg Mass (kg) Bo (kgCH4/kgVS) VS (kg/h*day) US 198 0.48 0.5 Western Europe 198 0.45 0.46 Eastern Europe 180 0.45 0.5 Oceania 180 0.45 0.5 Latin America 28 0.29 0.3 Africa 28 0.29 0.3 Middle East 28 0.29 0.3 Asia 28 0.29 0.3 Indian Subcontinent 28 0.29 0.3 Source: Table 10A-8 IPCC 2006 Emissions from Livestock and Manure Management

Market Animals Genetics Avg Mass (kg) Bo (kgCH4/kgVS) VS (kg/h*day) US 46 0.48 0.27 Western Europe 50 0.45 0.3 Eastern Europe 50 0.45 0.3 Oceania 45 0.45 0.28 Latin America 28 0.29 0.3 Africa 28 0.29 0.3 Middle East 28 0.29 0.3 Asia 28 0.29 0.3 Indian Subcontinent 28 0.29 0.3 Source: Table 10A-7 IPCC 2006 Emissions from Livestock and Manure Management

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Manure Management System MCFs

Average Annual Temp MCF anaerobic Lagoon (%) 28 80% Source: Adapted from Table 10A-8 IPCC 2006 Emissions from Livestock and Manure Management Temperature Data Name City/ Municipality Province Annual average Temp (C) Measured Where? Aprox. Distance from measurement point to province(km) Source

Rocky Farm

Pililla

Rizal

28.3

Cabanatuan

44.9

weatheronline.co. uk

Pig Census as Returned from Farm Management Personnel on Site:

Census 2007

Type of Pig Suckling Prestarters Starters Growers Finishers Gilts Sows Boars

Average Weight of that type 7 15 25 60 80 120 200 220

Average Number 1137 1065 1087 1078 1268 111 855 24

Breed/Genetic Source

Largewhites, Australia

Feed Formulation Booster feed Prestarter feed Starter feed Grower feed Grower feed Gilt feed Gestation & Lactation Gestation

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Annex 4 MONITORING INFORMATION

Please Refer to Section B.7.

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Annex 5 PROJECT TIMELINE

No.

Event Rocky Farms project which is the very first prototype biogas to energy CIGAR project by Philbio in the Philippines, was part of CDM capacity building programme as documented in a published UNDP report8. Rocky Farms project activity start date was 1st March 2000, which was the earliest date where expenditure (pre-payment) related to the project was incurred. CDM advisory services agreement between Ecosecurities and Philbio for CDM development of Philbios projects. Philbio actively replicates a large number of pig farm AD projects in Philippines after Rocky Farms with a prospect of implementing CDM, of which 9 have been registered as CDM projects. The Department of Environment and Natural Resources (DENR) was designated as the Designated National Authority (DNA) on June 25 2004. Rocky Farms project was continually featured as a model CDM project in capacity building workshops and presentations. Subsequently a CDM Country Guide in the Philippines was published by the Institute for Global Environmental Strategies in 2005; the guide lists Rocky Farms as a potential CDM project. Eight Philbio projects held a common Stakeholder Consultation for CDM. Rocky Farm in Rizal Province Red Dragon I and Red Dragon II (E-pig) Farms in San Fernando and Magalang, Pampanga Sto. Domingo Farm in Tarlac City Superior Farm in Tarlac City Lanatan Farm in Balayan, Batangas Jhon & Jhon Farm in Binangonan, Rizal Joliza Farm in Sta. Maria, Bulacan Rocky farms project activity PDD completion date under methodology AMS III.D. ver 6, and sent for Host Nation LOA Rocky farms project activity published for Global Stakeholder Consultation, under methodology AMS III.D. ver 6

Date

1.

September, 1999

2.

March 1, 2000

3.

March 4, 2002

4.

2002-2005

October 7, 2005

6. 7.

October 20, 2005 October 25, 2005

Alberto R. Dalusung III, Capacity Building in Clean Development Mechanism Project Activities, Final Report, September 1999, Under contract no. GLO/98/G55 with UNDP.

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8. 9.

Additional documents submitted for Host Nation LOA as required by the DNA. Rocky Farms held an individual Stakeholder Consultation for CDM. Letter from Philbio to Rocky requesting additional documents and clarifications for the DNA. Request made by the DNA based on a CDM steering committee meeting which convened 6th March 2006. Letter from the DNA to Philbio on submission of supporting documents. Entire project activity documents re-submitted for Host Nation LOA as required. Follow-up letter to the DNA on the status of the LOA. Host Nation LOA dated April 25, 2007 obtained. Project unable to be re-submitted for validation under AMS III.D. ver 11 due to expiry in methodology. Rocky PDD, under the latest version of methodology AMS III.D. ver 13, submitted for validation. Published for Global Stakeholder Consultation under methodology AMS III.D. ver 13. Validation site visit conducted by DNV for project activity under current methodology AMS III.D. ver 13. Project activity subsequently in validation up to latest revision of this PDD dated 30th September 2008.

December 7, 2005 December 12, 2005

10.

May 4, 2006

11. 12. 13.

February 12, 2007 March 20, 2007 June 7, 2007

14.

June 10, 2007

15. 16. 17. 18.

September 5, 2007 September 7, 2007 October 10, 2007 November 2007 to September 2008

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