Henan Xichuan Waste Heat Recovery for Power Generation

Audit Analysis

A CDM waste-heat-recovery power project (ACM0004 v2) with VVB-confirmed additionality and a reasonable first-period delivery rate (~89% of pro-rata expectation), but undermined by contradictory leakage justifications, a baseline-method discrepancy between the PDD and monitoring report, and material findings that QA/QC procedures were not implemented as described. The project is an avoidance-type EE credit with low inherent permanence risk, yet the absence of a stated buffer pool and the unresolved documentation gaps limit confidence.

Project Description

Red Flags

• ⚠Leakage justification is contradictory: the validation report (2008) states leakage was 'deemed negligible' while the monitoring report (2010) records it as 'not addressed', and the deduction is 0% in both cases
• ⚠QA/QC procedures for regular testing and maintenance were not implemented as described in the PDD, per the monitoring report's material findings
• ⚠Baseline method is characterised as 'project' in the monitoring report but 'jurisdictional' in the PDD, creating ambiguity about the reference scenario
• ⚠Equipment capacity decreased from 9 MW to 7.5 MW during the monitoring period, and the monitoring parameter EGgrid-in had to be replaced by EGoutput because no power transaction occurred

Credit Vintages