With a mission to accelerate the diffusion of climate-friendly technology The Climate Technology Initiative (CTI) Industry Joint Seminar on Successful Cases of Technology Transfer in Asian Countries took place from 7-8 March 2007, at the Intercontinental Hotel, Nehru Place, New Delhi. CTI is a multilateral initiative that was established in 1995 at the first conference of the parties to the UNFCC. 

Organized by the CTI in cooperation with The Energy Resources Institute (TERI), India, and supported by the International Centre for Environmental Technology Transfer (ICETT), Japan, the seminar was attended by 120 participants from seven Asian countries. 

The seminar provided an opportunity for government representatives, policymakers, and experts from industry, financial institutions and academia to review best practices for technology transfer in the Asian region, with particular focus on case studies on biomass fuel, biomass power generation and facilitation of Energy Service Companies (ESCOs). 

The objectives of the seminar were to encourage transfer of renewable energy and energy-efficient technologies and knowledge by introducing technology options that are yet to be widely diffused, and enhancing understanding of key elements of successful technology transfer practices and technology options that are effective in reducing greenhouse gas emissions. The seminar also sought to strengthen regional linkages and partnerships among the participants to foster future technology transfer projects.

This report provides a brief history of the climate change process, technology transfer and a summary of this CTI Industry Joint Seminar on Successful Cases of Technology Transfer in Asian Countries. 

A brief history of climate change policy & technology transfer

The UNFCCC and Kyoto Protocol: Climate change is one of the most serious threats to sustainable development, with adverse impacts expected on human health, food security, economic activity, the environment, water and other natural resources, as well as physical infrastructure. The international political response to climate change took shape in 1992 with the adoption of the UN Framework Convention on Climate Change (UNFCCC). The UNFCCC sets out a framework for action aimed at stabilizing atmospheric concentrations of greenhouse gases in order to avoid “dangerous anthropogenic interference” with the climate system. Controlled gases include methane, nitrous oxide and, in particular, carbon dioxide. The UNFCCC entered into force in March 1994, and now has 189 Parties.

In December 1997, delegates met in Kyoto, Japan, and adopted the Kyoto Protocol to the UNFCCC that commits developed countries and countries with economies in transition to achieve quantified emissions reduction targets. These countries agreed to reduce their overall emissions of six greenhouse gases by an average of 5.2% below 1990 levels between 2008 and 2012 (the first commitment period), with specific targets varying from country to country. The Kyoto Protocol also establishes three flexible mechanisms to assist the parties in meeting their national targets cost-effectively: an emissions trading system; joint implementation (JI); and the clean development mechanism (CDM), which encourages projects in developing countries. The Kyoto Protocol entered into force on 16 February 2005 and has been ratified by 168 Parties.

Technology transfer under the UNFCCC and Kyoto Protocol: Technology transfer is considered a key element in combating climate change under the UNFCCC. Article 4.5 of the Convention addresses technology transfer, stating that “developed countries…shall take all practicable steps to promote, facilitate and finance, as appropriate, the transfer of, or access to, environmentally-sound technologies and know-how to other Parties, particularly developing country Parties, to enable them to implement the provisions of the Convention.” Article 10c of the Kyoto Protocol contains a similar commitment.

In 2001, Parties to the UNFCCC adopted a framework for actions to enhance the implementation of Article 4.5. The framework contains five key activities relating to technology needs assessments, technology information, enabling environments, capacity building and mechanisms for technology transfer. Funding to implement the framework is provided through the climate change focal area of the Global Environment Facility and the Special Climate Change Fund. The CDM is also expected to contribute to the transfer of cleaner and more efficient technologies to developing countries.

Parties to the UNFCCC took further action in 2001 by establishing an Expert Group on Technology Transfer (EGTT) to help advance the Convention’s technology-related goals. Since then, workshops have been held on technology information. At the eleventh Conference of the Parties to the UNFCCC, serving as the first Meeting of the Parties to the Kyoto Protocol, held in Montreal in November-December 2005, delegates, inter alia: endorsed EGTT’s 2006 Work Program; requested a side event on the issue of public technologies.

A year later, in Nairobi in November 2006, delegates extended the EGTT for one year, and forwarded text to SBSTA 26 for its further consideration. The text, which remains bracketed pending further negotiation, includes references to: the five themes listed in the framework for technology transfer; reconstitution of the EGTT; establishment of a Technology Development and Transfer Board (TDTB); establishment of a Multilateral Technology Acquisition Fund (MTAF) to buy intellectual property rights; and development of indicators to monitor implementation of the technology transfer framework. The bracketed text also includes terms of reference for EGTT/TDTB.

Successful Cases of Technology Transfer in Asian Countries
CTI Joint Seminar On Successful Cases Of Technology Transfer In Asian Countries highlighted the rising opportunities in bio-fuel technology and technology transfer. The participants also focused on the development of environmentally safe and sound technologies and practices.

Morihiro Kurushima, Programme Manager, CTI, outlined the origin activities and accomplishments of the CTI, highlighting the CTI’s mission to encourage international cooperation in the development and diffusion of climate-friendly and environmentally-sound technologies and practices. Noting that the CTI has organized numerous events on technology diffusion and capacity building, he drew attention to the focus of the seminar – biomass fuel, biomass power generation, and the facilitation of ESCOs. 

Leena Srivastava, TERI, stressed the challenge of addressing poverty and the imperative for economic growth in Asia. Predicting an inevitable rise in energy demand, she emphasized the need for sustainable growth. Highlighting that 80% of India’s infrastructure is yet to be put in place, she identified an opportunity to follow an alternative development path, and for learning and technology transfer in the process. She also underscored the importance of technology transfer not only to reduce emissions but also to reduce vulnerabilities and address adaptation needs. Ajay Mathur, Ministry of Power, India, characterized the process of product development and policy analysis of clean technologies as iterative, and stressed the importance of cross fertilization and learning from experience. He also emphasized the importance of information, experience and knowledge sharing in integrating design knowledge with market demand. He drew attention to energy efficiency initiatives in India, including energy labeling of consumer products, design codes and standards to minimize energy use in buildings, and preferential tariffs for renewable energies.

In this seminar, two of the thematic sessions were held: one on biomass fuels and another on biomass power generation.

Biomass Fuel

Faizul Ishom, Agency for the Assessment and Application of Technology, Indonesia, presented on palm oil as a fuel substitute in the tea leaf drying process. He explained the process for using environmentally-friendly palm oil as a fuel substitute in the tea leaf drying process, and noted its similarities with standard operations using diesel. Noting that the increase in the price of palm oil had reduced the price difference between palm oil and diesel, Ishom highlighted the need to increase the efficiency of this process. He suggested that one method to achieve this is to integrate into the process a system for heat recovery from the exhaust gas.

Li Haibin, Chinese Academy of Sciences, China, presented on biomass gasification power generation (BGPG) in China. Li noted that three joint-stock companies had been set up to promote BGPG, and that currently, one 20 megawatts and two 4-5 megawatts biomass power plants are in operation. He proceeded to compare three biomass power generation technologies, namely, direct combustion, co-firing, and gasification, and considered their applicability in China. Li concluded that BGPG technology is economically feasible if the capacity of the plant is less than 10 megawatts, and that biomass direct combustion and power generation technology is feasible if the capacity of the plant is more than 10 megawatts.

James Jacob, Rubber Board, India, presented on the applications of environmentally-friendly technologies for the natural rubber processing industry in India. He discussed clean technology applications such as the use of biomass gasification for processing “technically specified rubber” (TSR) and bio methanation of sheet rubber processing effluents, and highlighted the potential for small-scale industries to earn carbon credits through these applications. He emphasized that rubber, grown largely in the South-East Asian region, is an industrial raw material of strategic importance. Jacob described the process of rubber extraction, including the process of transforming liquid latex to TSR, and highlighted the large energy consumption required for this process. 

Summarizing the discussion, A. K. Asthana noted that, while biomass-based technologies are useful, their wider application is problematic because of, inter alia, the rising cost of biomass, inadequate availability of good quality biomass, and difficulties in creating appropriate biomass-based system designs. Despite these problems, he underscored that biomass power generation remains a cost-attractive option. 

Biomass Power Generation

In this session M. A. M. Oktaufik, Agency for the Assessment and Application of Technology, Indonesia, presented on the Agency’s experience with BGPG. He underscored both the increasing demand for energy and the huge potential of biomass for power generation in Indonesia (an estimated total of 1160 megawatts). Oktaufik introduced the Solar Village and Renewable Energy Indonesia Project, a joint project with the German Government. He outlined and evaluated the implementation of two types of biomass gasifier technologies: fixed-bed, down-draft power gasifier, and fluidized-bed heat gasifier. He concluded, inter alia, that: the calorific value of the producer gas increases if the calorific value of the biomass used is higher; wood-specific consumption decreases with higher operating load in the fixed-bed, down-draft power gasifier; the unit price of electricity generated using this technology is lower than that generated from a diesel system, assuming that the biomass waste is free of cost; and, the fluidized-bed gasifier has the potential to meet energy demands in the palm oil, plywood and sugar industries.

Kazuyoshi Ichikawa, Central Research Institute of Electric Power Industry, identified the benefits of biomass energy. He indicated that it reduces carbon dioxide emissions, can be easily converted into a high energy portable fuel, enables use of unused agricultural land, provides jobs in rural communities, and enables restoration of degraded lands. Ichikawa explained the concept of carbonizing gasification, and described the Advanced Biomass Carbonizing Gasification system developed and operated by his Institute. He also highlighted the Institute’s areas of research, namely: development of evaluation tools for biomass potential and collection costs; biomass energy use; biomass gasification reactivity; and gasification simulation technology. He noted that the investment required to introduce a carbonizer into the gasification unit is US$2500 per kilowatt, but declined to comment on the commercial aspects of biogas generation.

Natee Sithiprasasana, A.T. Biopower Co. Ltd., Thailand, shared the experiences of his organization in operating the rice husk power plant in Pichit, Thailand. He noted that the project was developed in 2000 and started commercial operation in 2005. Noting that this is an award-winning project, he explained that the project works with extensive community involvement and shares benefits directly with the local community. He noted that the project has been approved as a CDM project by the designated national authority. He then elaborated the specific local and global environmental benefits of the project. He outlined some design features of the technology, and some problems associated with its application, such as the risk of dependence on a single fuel, and the high transportation costs. He noted the need for government intervention in managing the price of the husk and highlighted plans by a group of rice husk power plant owners to build rice husk storage buildings to improve the quality of the rice husk. 

Summarizing the session, Y.P. Abbi, TERI, noted that most Asian countries will require energy for their growth needs, and stressed that they must use low intensity carbon technology to meet energy requirements. He noted that there are no universal technological solutions for biomass power generation and outlined some problems associated with widespread application of these technologies. He emphasized the importance of subsidies in making Indian biomass power projects operational. Abbi also outlined some areas for further research, such as the need for technology development to suit multiple biomass types. 

Cooperation Among Key Sectors For Technology Transfer

On the last segment there was a panel discussion, moderated by Morihiro Kurushima, CTI, underscored the importance of creating markets for ESCOs and noted that CTI provides an ideal platform for sharing experience. Ajay Mathur, Ministry of Power, India, expressed concern over the inadequate development of environmentally clean technologies and noted a need to develop a good business model for biomass gasification for thermal use. Highlighting the difficulties in transferring biomass technologies in Asian countries A. K. Asthana identified the need to develop standard guidelines for such transfer. He added that power fluctuations are a problem in biomass-based power generation. Yoshitaka Nitta, Research Institute of Electric Power Industry, Japan, said biofuels provide an important environmentally-friendly alternative to fossil fuels. 

Participants then discussed: difficulties in power generation from biomass; the need to formulate a policy to manage biomass use for power generation; the importance of CDM credits for biomass projects; and applications of biomass technologies for providing affordable energy access.