Feasibility Study for CO2 Offsetting Project through Biogas Systems

1. INTRODUCTION AND BACKGROUND

Austrian Red Cross (AutRC) together with its 9 provincial branches in 2021 has started a process to identify and evaluate options for offsetting carbon emissions of its first of all domestic operations, that cannot be avoided in the short term. A first and rough estimate came up with a yearly carbon footprint of approximately 50.000 t CO2eq. that should be compensated. Since more than 80% of these emissions result from the milage of AutRC Ambulance vehicles, there is no quick fix to considerably reduce or avoid these emissions. Therefore, AutRC’s International Cooperation division was tasked to find out if and how a compensation of a part or of all of these carbon emissions could be done through off-setting schemes with Red Cross Partners in the Global South.

AutRC and the Rwanda Red Cross Society (RRCS) have been successfully implementing development projects in different thematic areas for many years, including WASH, livelihood, community resilience, disaster preparedness and others. Therefore and because of the country’s general positive track record in environmental protection, climate change mitigation and adaptation and carbon offsetting schemes, it was obvious for AutRC to ask RRCS if they would be interested to partner in such new endeavours.

1. PURPOSE

This study should support Austrian Red Cross and Rwanda Red Cross in exploring the option of biogas production and use for the intended carbon offsetting scheme. The study should help determine the most appropriate technology and scale to reach the desired carbon offsetting goal while at the same time creating a positive impact for the beneficiaries of the project.

Besides looking at the technology and storage potential itself, the study shall also look at the current market situation for biogas in Rwanda and include all relevant stakeholder and potential beneficiary groups to determine which technology at which scale may find the most support and eventually is most likely to achieve the offsetting objective within feasible financial limits. The study shall also highlight any potential factors for challenges for the sustainability of biogas systems at any relevant scale.

1. SUMMARY OF TASKS
2. Phase 1: Desk Research

Stakeholder Mapping

• Identification of stakeholders with project experience in constructing and running biogas plants of different sizes (household to community level) in Rwanda and certifying them for CO2 offsetting schemes

Market Scoping

• Which different technologies are used on different scales (HH, community level, refugee camps, schools, prisons, etc.)? Pros and Cons? Challenges?
• Impact of the different technologies on the climate and environment?
• How to construct the different types of biogas plants on the different scales?
• Construction costs of the different types of biogas plants, including potential cost share for beneficiaries?
• Which scale is appropriate and feasible to reach the goal of offsetting at least 50.000 t CO2-eq per year?

1. Phase 2: In-Country Research

Discussions with RC Partner Society

• Relevance of biogas plants on a large scale for RC partner
• Interest, willingness & long-term commitment to engage in this sector
• Availability of capacities in the RC society to monitor and follow up on a potential large-scale project for at least 5 years
• If the project is implemented on HH or community level, how many HHs or communities can be reached/connected realistically per year?
• Which geographical target areas might be suitable for such a project?
• If the project is implemented on a larger scale, which locations would be appropriate (e.g., biogas plants in refugee camps, schools or other institutions)? How could a larger system be maintained and monitored by the RC Partner Society?
• Are there any developments or government plans (e.g., regarding electrical grid or gas supply) potentially making this type of activity obsolete within the next 5-10 years?
• What else would be needed to implement such a project successfully (e.g., trainings for staff and volunteers; workshops with beneficiaries; distribution of livestock; provision of veterinary services, establishment of technical support service, construction of ECOSAN latrines, etc.)?

Market analysis through interviews with other RC partners/ IOs / INGOs

• Experience with biogas in Rwanda: Technologies used, success rates, scale/dimensions, Factors threatening sustainability of the systems?
• Actors working on CO2 offsetting projects and their experiences
• Impact of different types of technologies on the climate and environment
• Mapping of the countrywide market situation for biogas technologies:
• How many biogas plants of which size are already in use? at what cost?
• Are the biogas plants connected to a grid, planned to be connected to a grid or stand-alone plants?
• Current demand: how many HHs are currently interested in biogas? at what cost?
• Potential demand: for how many HHs would it make sense to install a biogas plant?
• Are there local companies/organisations with the knowledge to construct HH or larger scale biogas plants? Are the materials locally available or imported? What influence can a large-scale project have on the existing market?

Evaluation of penetration level and acceptability among local beneficiaries through interviews with communities

• Experiences with locally available biogas technologies/types of plants
• Willingness to use one of the proposed technologies for cooking? Is there acceptance to use gas produced from manure and potentially human faeces if connected to a latrine? Challenges? Most suitable options?
• Cost / construction / material / lifespan of different types of plants
• What are available feedstocks in interviewed communities?
• Can enough feedstock be generated on HH level and if not, what would be needed (e.g., (additional) livestock, construction of latrines, kitchen garden to increase HH waste, etc.)?

Evaluation of support from local authorities through Interviews with government authorities (national, regional, local)

• Government plans regarding supply of (bio)gas to HHs; is the government supporting such initiatives?
• Government plans regarding expansion of the electric grid to rural municipalities
• How many actors are currently involved in biogas projects or plan to be in the future? at what scale?
• Typical/recommended financial contribution from beneficiaries?

1. Phase 3: Carbon Offsetting Project Design

• Summary of which type of technology and at what scale is the most suitable option with regards to acceptance by beneficiaries & cost efficiency, plus possible locations
• Project cost estimate: rough budget estimate for a 5-year span reaching the desired number of HH or the desired scale to offset at least 50.000 t CO2-eq
• CO2 baseline study: Expected CO2 reduction through selected technology as compared to baseline data with traditional cooking stoves/techniques (CO2 reduction estimate)
• Financial feasibility

1. DELIVERABLES
2. Inception Report

The inception report (max. 10 pages without annexes) will include the following:

• the suggested structure of the final report based on this ToR and initial briefings/desk review
• detailed time schedule
• list of stakeholders to be consulted
• initial findings based on review of project documentation, existing data, prior evaluations/reviews, and secondary data
• an outline of key knowledge gaps not covered by this ToR, and any suggested additions/alterations to the proposed assessment questions and overall ToR

1. Final Report

The (draft) final report of this feasibility study should

• not exceed 25 pages
• include an Executive Summary, brief background, outline of the methodology used (including any limitations), findings and recommendations
• ensure analysis is always backed up with relevant data, with reference to the data source
• ensure recommendations made are specific and include relevant details for how they might be implemented
• include at least the following annexes: (i) Terms of Reference, (ii) Itinerary for in-country mission, (iii) List of documents reviewed, meetings attended, persons/organisations interviewed

All documents need to be prepared in English. The executive summary should summarize key findings and recommendations (three pages maximum) and needs to be submitted as part of the draft report.

The findings and recommendations should be structured according to the SUMMARY OF TASKS. An outline of the document structure needs to be agreed upon during the inception phase.

1. Power point presentation

The findings and recommendations of the feasibility study will be presented in a condensed form as a short power point (not more than 20 slides).

1. TENTATIVE TIMEFRAME

• Award of contract until 31 July 2022
• Initial desk review, 1 day, Beginning of August
• Drafting Inception Report, 2 days, 1st half of August
• Kick-off meeting, 0,5 day, before 15 August
• Phase 1: Desk Research, 2 days, 2nd half of August
• Phase 2: In-Country Research (including travel), 10 days, September
• Phase 3: Carbon Offsetting Project Design, 2 days, September
• Report writing (incl. ppt), 4 days, End of September
• Submission and presentation of draft Final Report , 0,5 day, around 10 October 2022
• Revision of draft report and final submission, 1 day, until 14 October 2022

Total workdays 23 days

1. CONSULTANT SPECIFICATIONS

The applicant (team) is expected to meet the following criteria:

• Significant (10y+) and proven experience in the development and implementation of biogas projects on community and household level
• Previous experience in conducting feasibility studies for carbon offsetting
• Work experience in Rwanda
• Good analytical, critical thinking and report writing skills
• Good understanding of development work; previous experience with the Red Cross movement is an asset
• Ability to work on tight schedules with minimal supervision
• Excellent English speaking and writing skills, for the team member conducting meetings and field work in Rwanda good command of Kinyarwanda or French is strongly recommended.