Forestal y Papelera Concepción Biomass Residues Cogeneration Plant in Chile

Audit Analysis

This CDM biomass cogeneration project in Chile was verified by Allianz Zero Emissions but the 2012 monitoring report flagged eleven material findings, including a biomass composition that deviated sharply from the PDD (73% market sawdust versus 30% projected), an investment analysis not conducted per the CDM additionality Tool, and a leakage assessment that was not performed in accordance with the methodology. Seven corrective actions were required, and several key monitoring parameters (FNRB method, usage monitoring, verified ERR) are absent from the extracted record. The project over-delivered relative to its pro-rata expectation, but the underlying baseline and additionality documentation carry significant quality concerns.

Project Description

Red Flags

• ⚠Eleven material findings in the 2012 monitoring report, including incorrect emission-reduction calculations, undefined baseline scenarios, and a monitoring plan missing key parameters (AVDy, Qproject plant,y)
• ⚠Biomass feedstock composition in operation (73% market sawdust) differed by more than double from the PDD projection (30%), undermining the baseline model
• ⚠Investment analysis was not carried out according to the CDM Tool for demonstration and assessment of additionality, despite the VVB confirming a combined test
• ⚠Leakage was deemed negligible at 0% but the assessment was not conducted in accordance with the methodology initially
• ⚠Seven corrective actions were required, including re-approval of PDD changes for increased capacity and participant changes

Credit Vintages

No issuances recorded on the registry.