Henan Xinxiang 24MW Biomass based Cogeneration Project

Audit Analysis

A 24 MW biomass cogeneration project in China verified by TÜV Rheinland, with additionality confirmed via an investment test. However, the verification report identified 12 material findings (including an ER formula error) and required 28 corrective actions, the grid emission factor dates from 2006, no buffer pool is in place, and the 0% leakage deduction for a biomass project is only loosely justified. The project delivered roughly 98% of its pro-rata expected reductions for the first monitoring period, but the combination of a project-specific baseline, outdated grid factor, and documentation quality issues limits confidence in the credit's integrity.

Project Description

Red Flags

• ⚠ER calculation formula error: CH4 emissions from biomass were not multiplied by GWP(CH4) in the original calculation (material finding, corrected via CAR 6)
• ⚠Grid emission factor of 0.9735 tCO2/MWh is from 2006 — over 6 years old at the time of verification, risking overstatement of reductions as the Chinese grid decarbonises
• ⚠28 corrective actions and 12 material findings in the verification report indicate significant initial documentation and calculation quality issues
• ⚠Leakage deduction of 0% justified only as 'deemed negligible' for a biomass project where feedstock diversion is a plausible leakage pathway; the monitoring report characterised leakage as 'quantified' while the verification report says 'deemed negligible'

Credit Vintages