Urfa - Yenice LFG to Energy Project

Audit Analysis

The Urfa-Yenice landfill gas-to-energy project has VVB-confirmed additionality and a reasonable verified ERR (96.5% of pro-rata expectation), but is undermined by the absence of a buffer pool, a project-specific modeled baseline, 16 outstanding corrective actions (including a questioned financial viability with IRR at −18%), and a contradiction in how leakage is justified across documents. The project is in its first 9 months of a 5-year crediting period, so the monitoring record is still thin.

Project Description

Red Flags

• ⚠No buffer pool or permanence mechanism identified in any available document, leaving reversal risk unmitigated for a 5-year crediting period.
• ⚠16 corrective actions remain open, including the VVB's request to clarify financial viability given an equity IRR of −18%, undefined operational lifetime, and an unjustified 10-vs-15-year investment period.
• ⚠Leakage justification is contradictory: the verification report (Nov 2024) states it is 'quantified' while the monitoring report (Nov 2024) states it is 'deemed negligible,' yet the deduction is 0%.
• ⚠Six material findings relate to missing or out-of-period calibration documentation for flow meters, gas analyzers, and electricity meters, each requiring ad-hoc correction factors of 0.3–0.5%.
• ⚠FPIC was not conducted despite the project operating in a community setting in Turkey.

Credit Vintages