Installation of a Digestion Gas Cogeneration System Using Private Finance Initiative

The Osaka City Government (OCG) introduced a Private Finance Initiative (PFI) based approach that allowed utilization of private finance, management abilities and technical capabilities for beneficial use of digestion gas generated in the sewage sludge disposal process. In order to make best use of the ideas and innovation of private companies for the digestion gas cogeneration system project, the performance requirements, payment mechanism and proposal evaluation were determined.As a result, a project was proposed by the private sector that could reduce greenhouse gas emissions by 4,200 tons per year on a CO2 basis, and lower OCG's financial burden by approx. 1.7 billion yen over the period of the project.The system was thus installed by the private business operator within the initial budget and scheduled construction period. Now that a year has passed since commencement of operation, the system has functioned steadily, exceeding originally estimated effectiveness