Coke Dry Quenching (CDQ) Waste Heat Recovery for Power Generation Project of Laiwu Iron & Steel Group Corp.

Audit Analysis

A CDM waste-heat-recovery power generation project with a solid combined additionality test verified by TÜV NORD CERT and a standard jurisdictional grid baseline. However, 15 material findings and 3 outstanding corrective actions—particularly around auxiliary electricity not being properly deducted from gross generation—raise concerns about the accuracy of the reported emission reductions. The grid emission factor dates from 2007 while the monitoring period spans 2013–2016, introducing a moderate over-crediting risk.

Project Description

Red Flags

• ⚠Three corrective actions remain open: auxiliary electricity consumption for the CDQ and boiler systems was not reflected in the power connection schematic, not deducted from total generation (EGGEN), and not included in the EGAUX monitoring parameter—directly affecting the accuracy of net generation and therefore the ER.
• ⚠The grid emission factor used in the baseline is from 2007 (1.030015 tCO₂/MWh), while the monitoring period covers 2013–2016; if China's grid has decarbonised over that interval, the baseline overstates the project's marginal reduction.
• ⚠Fifteen material findings were raised during validation, indicating substantial gaps in the original PDD and monitoring design that required correction before issuance.

Credit Vintages