NICARAGUA - Gemina Rice Husk-to-Power

The objective of the project is (i) to facilitate greenhouse emission reductions, and (ii) to support development of the international market mechanism for trading 'Emission Reductions' (ERs), developed in the framework of the Kyoto Protocol.The project is supported by the Prototype Carbon Funnd (PCF). The Bank established PCF in July 1999, with the operational objective of mitigating climate change. PCF supports projects expected to generate greenhouse gas emission reductions while complying with requirements of joint implementation(JI, Art.6.) and the clean development mechanism (CDM, Art. 12) of Kyoto Protocol. PCF purchases high quality greenhouse gas emission reductions, which could be registered with the United Nations Framework Convention on Climate Change (UNFCCC) for the purpose of the Kyoto Protocol. By transacting the business of reducing greenhouse gas emissions, the PCF is developing a knowledge base of business processes and practices to facilitate climate-friendly investment and provide input for the ongoing UNFCCC negotiations.In this particular case, the project will facilitate reduction of CO2 emissions through substituting energy from coal with clean energy from biomass made of rice husk produced by the Chinadega rice and flour mill. Th1.5MW Rice Husk-to-Power plant will produce 100% of the electrical power used at the mill, and the electricity not consumed would be sold to local, recently privatized distribution company. By using rice husk, which for the most part would have been disposed in open land fills, the construction and operation of this electrical plant will also reduce the release of Methane in the atmosphere, which results from the decomposition of husk left in open areas.