Burning of solid biomass for process steam generation for beer manufacture in place of the BPF 3 fuel oil at the Águas Claras do Sul Branch

Audit Analysis

A CDM biomass fuel-substitution project at a Brazilian brewery with a reputable VVB (DNV) and a barrier additionality test, but undermined by six material findings — most critically, DNV's own observation that the investment barrier was not confirmed because funding was secured regardless of boiler type. Corrective actions were mandated and the pro-rata delivery for the first monitoring period is reasonable, yet the cluster of baseline, NCV, and additionality errors in the original PDD raises meaningful over-crediting risk.

Project Description

Red Flags

• ⚠DNV's validation report flagged that the investment barrier was not confirmed because funding was secured regardless of boiler type, casting doubt on the core additionality claim
• ⚠Six material findings in the monitoring report, including an incorrect NCV value for fuel oil, a non-conservative baseline assumption (5% production increase), and unaccounted animal tallow emissions in backup boilers
• ⚠Leakage treatment shifted from 'quantified' in the 2007 validation report to 'deemed negligible' in the 2009 monitoring report without a clear methodological bridge

Credit Vintages