Revised Monitoring Plan. Name and reference of approved monitoring methodology applied to the project activity:

Transcription

1 CDM Executve Board page 1 Revsed Montorng Plan Project name: Nueva Aldea Bomass Power Plant Phase 1 Project ref. no: 0258 Dated: 23 June 2008 Verson: 1 SECTION D. Applcaton of a montorng methodology and plan D.1. Name and reference of approved montorng methodology appled to the project actvty: The montorng methodology appled for ths project actvty corresponds to the montorng methodology of the ACM0006 (Verson 01). The name of the appled montorng methodology s: Consoldated montorng methodology for grd-connected electrcty generaton from bomass resdues (Verson 01) Ths project actvty also reles on the montorng methodology of the followng baselne methodology: ACM0002 Consoldated baselne methodology for grd-connected electrcty generaton from renewable sources (Verson 04). D.2. Justfcaton of the choce of the methodology and why t s applcable to the project actvty: The montorng methodology, as well as the baselne methodology used for ths project actvty was orgnally developed by Arauco for the Trupan Power Plant project actvty. The methodology was then consoldated by the Meth Panel nto a broader and more flexble methodology, whch s now presented as the methodology appled for the proposed project actvty. The chosen montorng methodology nvolves, where possble, drect measurements of the varables requred for montorng baselne and project emssons. Commercal data s collected and saved for the purpose of verfyng the measured data whenever possble and avalable. Where drect measurements are not possble, commercal data s used as the prmary data, wth an approprate qualty control measure. The methodology s straghtforward and accurate n ts approach. By obtanng actual data pertnent to the project actvty and by ensurng an approprate qualty control measure for every pece of data collected, t allows for the most accurate calculaton of GHG emsson reductons assocated wth the project actvty. Where the collecton of the relevant data s possble, as s the case for ths Project, ths approach s the most approprate. All data collected as part of the montorng (baselne, project and leakage emssons), wll be archved electroncally and kept for at least 2 years after the end of the last credtng perod.

2 CDM Executve Board page 2 D Opton 1: Montorng of the emssons n the project scenaro and the baselne scenaro D Data to be collected n order to montor emssons from the project actvty, and how ths data wll be archved: ID number. Data varable. 1. BF,y Quantty of bomass type combusted n the project plant durng the year y. Source of data. Power Plant s procurement department. Data unt. Mass or volume unt (BDt 1 or cubc meters). Measured (m), calculated (c) or estmated (e). Measured. Recordng Frequency. Contnuously, prepare annually an energy balance. Proporton of data to be montored. How wll the data be archved? (electronc / paper). Comment. 100% Electronc. The quantty of bomass combusted wll be collected separately for each type of bomass and wll be determned based on measured data. Montorng of ths parameter for project emssons s only requred f CH 4 emssons from bomass combuston are ncluded n the project boundary or f bomass s transported to the project ste and correspondng CO 2 emssons are calculated wth equaton (3) n the baselne methodology. 2. NCV Net calorfc value of bomass or Power Plant s procurement GJ/mass or volume Measured or calculated. followng the end of the credtng perod. Annually. 100% Electronc. The net calorfc value should be determned separately for all types of bomass and fossl fuels. Net calorfc 1 BDt stands for Bone dry ton or Dry ton.

3 CDM Executve Board page 3 fossl fuel type. department and authorzed laboratores. unt. values should be based on measurements or relable local or natonal data. Montorng of ths parameter for project emssons s only requred f CH 4 emssons from bomass combuston are ncluded n the project boundary. 3. EF CH4 Methane emsson factor for combuston of bomass n the project plant. 4. AVD y Average return trp dstance between bomass fuel supply stes and the project ste. 5. TL y Average truck load of the Measuremen ts by project proponent or IPCC default factors. Power Plant s procurement department. Power Plant s Kg CH 4 /TJ Measured or estmated. followng the end of the credtng perod. Annually. 100% Electronc. Montorng of ths parameter for project emssons s only requred f CH 4 emssons from bomass combuston are ncluded n the project boundary and f measurements are undertaken to determne the emsson factor. followng the end of the credtng perod. Km Measured. Contnuously. 100% Electronc. If bomass s suppled from dfferent stes, ths parameter should correspond to the mean value of km traveled by trucks that supply the bomass plant. Mass or volume followng the end of the credtng perod. Measured. Regularly. 100% Electronc. Project partcpants have to montor ether the number of truck trps N y or

4 CDM Executve Board page 4 6. EF km,co2 7. F Trans,,y (n the PDD, ths varable appears as OF,y ) 8. COEF CO2, trucks used for transportaton of bomass. Average CO 2 emsson factor for transportaton of bomass wth trucks. Fuel consumpton of fuel type used for transportaton of bomass. CO 2 emsson factor for the fuel type. procurement department. Project ste or default values from the IPCC. Power Plant s procurement department. Power Plant s procurement department and IPCC manual. unt ths parameter. (BDt or cubc meters). followng the end of the credtng perod. tco 2 /km Calculated. Annually. 100% Electronc. Local or natonal data should be preferred. Default values from the IPCC may be used alternatvely and should be chosen n a conservatve manner. Mass or volume unt tco 2 / mass or volume unt. followng the end of the credtng perod. Measured. Contnuously. 100% Electronc. followng the end of the credtng perod. Measured or calculated. Annually. 100% Electronc. These emsson factors wll be appled to fuel consumpton for transportaton (7) and on-ste fuel consumpton (9). Measurements or local / natonal data should be preferred. Default values from the IPCC may be used alternatvely. 9. FF project plant,,y (n On-ste fossl fuel Power Plant s Mass or volume followng the end of the credtng perod. Measured. Contnuously. 100% Electronc. Any type of fossl fuel consumpton n the Power Plant wll be contnuously

5 CDM Executve Board page 5 the PDD, ths varable appears as FF y ) consumpton of fuel type for co-frng n the project plant. procurement department. unt. montored and recorded. The data wll be checked wth purchase recepts, whenever possble and avalable. followng the end of the credtng perod. Note: Only addtonal quanttes of bomass and fossl fuels due to the CDM project actvty wll be used to calculate baselne and project emssons.

6 CDM Executve Board page 6 D Descrpton of formulae used to estmate project emssons (for each gas, source, formulae/algorthm, emssons unts of CO 2 equ.) The anthropogenc emssons by sources of GHGs of the project actvty n year y (EM P,y ) can be determned as follows: EM P,y = P E1,y + P E2,y + P E3,y + P E4,y Where: EM P,y : Total project actvty emssons (tco 2 eq/yr). P E1,y : Project emssons from bomass controlled burnng n the Power Plant (tco 2 eq/yr). P E2,y : Project emssons from bomass transportaton to the bomass Power Plant (tco 2 /yr). P E3,y : Project emssons from bomass transportaton wthn the Power Plant ste (tco 2 /yr). P E4,y : Project emssons from fossl fuel consumpton n the Plant s power boler (tco 2 /yr). boler: D Emssons from bomass controlled burnng n the Power Plant s power Consstent wth IPCC Gudelnes 2, CO 2 emsson from bomass combuston at the Nueva Aldea Power Plant Phase 1, beng the release of the CO 2 absorbed on a sustanable bass by forest that s replanted every year (forest companes replant the surfaces they harvest 3 ). The same treatment s not extended to methane emssons. When bomass s combusted n a well-controlled envronment at the Nueva Aldea Power Plant Phase 1, methane emssons are small n quantty but stll not zero. BF P E1, y = GWPCH 4 EFBomass, CH 4, y NCVBomass, Where: P E1 : Project emssons from bomass controlled burnng (tco 2 eq/yr). GWP CH4 : Global Warmng Potental of methane (21 tco 2 eq/tch 4 ). EF Bomass,CH4 : Bomass methane emsson factor (tch 4 /TJ). BF,y : Bomass of type used by the project actvty (BDt/yr). NCV Bomass, : Net calorfc value of bomass of type (TJ/BDt). 2 Revsed 1996 IPCC Gudelnes for Natonal Greenhouse Gas Inventores: Reference Manual, p.6.1 Please also see Revsed 1996 IPCC Gudelnes for Natonal Greenhouse Inventores, Workbook and IPCC Good Practce Gudance and Uncertanty Management n Natonal Greenhouse Gas Inventores, P Chlean Law D.L. 701 oblges forest companes to reforest the areas that have been harvested, unless the area s not sutable for forest actvty. Such cases consttute less than 1% of cases.

7 CDM Executve Board page 7 D Emssons from bomass transportaton to the Power Plant: Transportng bomass from the supplers to the Nueva Aldea Power Plant Phase 1 s normally done by trucks, whch result n drect off-ste GHG emssons. The emssons related to bomass transportaton to the Power Plant n year y can be calculated as follows: P BF T,, y E 2, y = * AVDy * EFkm, CO2 TLy Where: P E2,y : Project emssons from bomass transportaton to the bomass Power Plant (tco 2 /yr). BF T,,y : Bomass of type (wet) transported by trucks used by the project actvty (wet ton/yr). TL y : Average truck load of the trucks used (ton). AVD y : Average return trp dstance between the bomass fuel supply stes and the ste of the project plant (km). EF km,co2 : Average CO 2 emsson factor for the transportaton fuel (tco 2 /km). D Emssons from bomass transportaton wthn the Nueva Aldea Power Plant Phase 1 ste: Wthn the Nueva Aldea ste, desel-fuelled trucks and bulldozers wll transport the bomass to the power boler area. As n the prevous case, such transportaton also generates project-related GHG emssons, whch for year y can be estmated as follows: = P E3, y OF, y COEFCO 2, Where: P E3,y : Project emssons from bomass transportaton wthn the Power Plant ste (tco 2 /yr). OF,y : Fossl fuel of type used for on-ste transportaton of bomass (kg/yr). COEF CO2, : CO 2 emsson factor for the transportaton fuel of type (tco 2 /kg). boler: D Emssons from fossl fuel consumpton n the Power Plant s power

8 CDM Executve Board page 8 Havng a larger power boler, wth hgher bomass combuston capacty and hgher steam pressure generaton capacty than the baselne case boler mples a hgher consumpton of fossl fuel for start-ups and for mantanng the power boler temperature, especally n wnter tme, when the bomass has a hgher humdty. Ths addtonal consumpton of fossl fuels n the power boler generates GHG emssons, whch for a year y can be estmated as follows: = P E 4, y FF, y COEFCO 2, Where: P E4,y : Project emssons from fossl fuel consumpton n the Plant s power boler (tco 2 /yr). FF,y : On-ste fossl fuel consumpton of type for co-frng n the project plant (kg/yr). COEF CO2, : CO 2 emsson factor for the fossl fuel of type used n the power boler (tco 2 /kg). For the Nueva Aldea Power Plant Phase 1 project actvty, the followng consderatons must be taken: Accordng to the chosen baselne methodology, the project proponent wll montor the consumpton and net calorfc values of each type of bomass consumed n the power plant. For smplcty, ths PDD wll consder the total bomass consumpton and the correspondng weghted average net calorfc value of the bomass mx for emsson reducton calculatons. As mentoned n D.2.1.1, only addtonal quanttes of bomass and fossl fuels attrbuted to the project actvty wll be consdered to calculate the baselne and project emssons. Ths s ndcated for bomass n page 32 of the ACM0006 (Verson 01) and for fossl fuels, n page 18 of the ACM0006 (Verson 01). Accordng to the above, the bomass related to the CDM project actvty wll be determned n accordance wth equaton 24 of the ACM0006 (Verson 01). On-ste fossl fuel consumpton wll be determned assumng a relaton of drect proportonalty between the amount of on-ste fossl fuel consumpton (for on-ste transportaton and for co-frng n the power boler) and the bomass consumpton n the power boler. Ths relaton of drect proportonalty was confrmed usng data from other power bolers of dfferent sze of Arauco, and therefore, was consdered approprate to determne the amount of fossl fuel assocated to the CDM project actvty.

9 CDM Executve Board page 9 D Relevant data necessary for determnng the baselne of anthropogenc emssons by sources of GHGs wthn the project boundary and how such data wll be collected and archved : ID number. Data varable. Source of data. Data unt. Measured (m), calculated (c), estmated (e). Recordng Frequency. Proporton of data to be montored. How wll the data be archved? (electronc/ Comment. 10. EG project plant,y Net quantty of electrcty generated n the project plant durng the year y. 11. Q y Net quantty of heat generated from frng bomass n the project plant. Power Plant electrc meters. Project proponent (Power plant meters) paper). MWh Measured. Contnuously. 100% Electronc. EG project plant,y s the net electrcty generated by the project actvty dsplaced from the grd. followng the end of the credtng perod. GJ Measured. Contnuously. 100% Electronc. Only relevant for cogeneraton project actvtes. Project partcpants should calculate the net heat generaton and subtract any condensate return. In case of scenaro 3, montorng of ths parameter for project emssons s only requred, f CH 4 emssons due to natural decay or uncontrolled burnng are ncluded n the project boundary. followng the end of the credtng perod.

10 CDM Executve Board page EF y CO 2 emsson factor of the grd. 13. EF OM,y CO 2 Operatng Margn emsson factor of the grd. 14. EF BM,y CO 2 Buld Margn emsson factor of the grd. 15. F,y Amount of each fossl fuel consumed by each power source / plant. Relevant dspatch center, electrc power companes publc nformaton, host country government offcal nformaton and IPCC values. Relevant dspatch center, electrc power companes publc nformaton, host country government offcal nformaton and IPCC values. Relevant dspatch center, electrc power companes publc nformaton, host country government offcal nformaton and IPCC values. Relevant dspatch center, electrc power companes publc nformaton and host country offcal nformaton. tco 2 /MWh Calculated. Annually. 100% Electronc. Calculated as a weghted sum of the OM and BM emsson factors. followng the end of the credtng perod. tco 2 /MWh Calculated. Annually. 100% Electronc. Calculated as ndcated n the ACM0002 baselne methodology. followng the end of the credtng perod. tco 2 /MWh Calculated. Annually. 100% Electronc. Calculated as ndcated n the ACM0002 baselne methodology. Mass or volume. followng the end of the credtng perod. Measured. Annually. 100% Electronc. Ths nformaton wll be obtaned from the relevant dspatch center, electrc power companes or the latest offcal statstcs publcly avalable. followng the end of the credtng perod.

11 CDM Executve Board page COEF CO 2 emsson coeffcent of each fuel type consumed by the electrc power generators n the relevant grd. 17. GEN j/k/n,y Electrcty generaton of each power source / plant j/k or n. 18. Identfcaton of power source / plant for the OM calculaton. 19. Identfcaton of power source / plant for the BM calculaton. Relevant dspatch center, electrc power companes publc nformaton and host country offcal nformaton. Relevant dspatch center, electrc power companes publc nformaton and host country offcal nformaton. Relevant dspatch center, electrc power companes publc nformaton and host country offcal nformaton. Relevant dspatch center, electrc power companes publc nformaton and host country offcal nformaton. tco 2 / (mass or volume unt). Measured. Annually. 100% Electronc. Plant or country-specfc values to calculate COEF are preferred to IPCC default values. followng the end of the credtng perod. MWh/yr Measured. Annually. 100% Electronc. Ths nformaton wll be obtaned from the relevant dspatch center, electrc power companes or the latest offcal statstcs publcly avalable. Text. Estmated. Annually. 100% of set of plants. Text. Estmated. Annually. 100% of set of plants. Electronc. Electronc. followng the end of the credtng perod. Identfcaton of plants (j, k, or n) to calculate the Operatng Margn emsson factors. followng the end of the credtng perod. Identfcaton of plants (m) to calculate the Buld Margn emsson factors. followng the end of the credtng perod.

12 CDM Executve Board page λ y Fracton of tme durng whch low-cost / mustrun sources are on the margn. 21.a GEN j/k/ll,y IMPORTS Electrcty mports to the project electrcty system. Relevant dspatch center, electrc power companes publc nformaton and host country offcal nformaton. Relevant dspatch center and host country offcal nformaton. Number. Calculated. Annually. 100% Electronc. Factor accountng for number of hours per year durng whch low-cost / must-run sources are on the margn. followng the end of the credtng perod. KWh Calculated. Annually. 100% Electronc. Obtaned from the latest local statstcs. If local statstcs are not avalable, IEA statstcs are used to determne mports. If there are no mports n the relevant system, the montorng of ths varable does not apply. followng the end of the credtng perod.

13 CDM Executve Board page b COEF,j,y IMPORTS CO 2 emsson coeffcent of fuels used n connected electrcty systems (f mports occur). Relevant dspatch center, electrc power companes publc nformaton and host country offcal nformaton. tco 2 / (mass or volume unt). Calculated. Annually. 100% Electronc. Obtaned from the latest local statstcs. If local statstcs are not avalable, IPCC default values are used to calculate the coeffcents. If there are no mports n the relevant system, the montorng of ths varable does not apply. followng the end of the credtng perod.

14 CDM Executve Board page 14 D Descrpton of formulae used to estmate baselne emssons (for each gas, source, formulae/algorthm, emssons unts of CO 2 equ.) Snce the baselne scenaro s that the current practce contnues,.e., the bomass related to the project actvty would be dsposed and not utlzed for electrc power generaton. The emsson reductons then, result from the avodance of bomass open-ar burnng and the dsplacement of electrc power generated wth fossl fuels. Accordng to ths, the baselne emssons for year y can be calculated accordng to the followng formula: Where: BL E,y = BL E1,y + BL E2,y BL E,y : Total baselne emssons (tco 2 eq/yr). BL E1,y : Baselne emssons from avoded bomass dsposal (tco 2 eq/yr). BL E2,y : Baselne emssons from grd electrcty dsplacement (tco 2 /yr). D Baselne emssons from avoded bomass dsposal: The emssons from avoded bomass dsposal are calculated assumng a conservatve baselne scenaro; that s, that the bomass s burned n the open-ar. Accordng to ths, the emssons from avoded bomass dsposal used by the project actvty n year y can be calculated usng equaton 24 of the ACM0006 (Verson 01): y BL E1, y = GWPCH 4 BF, y * NCVBomass, EFburnng, CH 4, ε Boler Q Where: BL E1,y : Emssons due to natural decay or burnng of anthropogenc sources of bomass durng the year y (tco 2 eq/yr). GWP CH4 : Global Warmng Potental of methane (21 tco 2 eq/tch 4 ). BF,y : Bomass of type used by the project actvty (BDt/yr). NCV Bomass, : Net calorfc value of bomass fuel type (GJ/mass or volume of bomass). Q y : Net quantty of heat generated n the cogeneraton project plant durng the year y (GJ). ε Boler : Energy effcency of the boler that would be used n the absence of the project actvty. EF CH4burnng, : CH 4 emsson factor for uncontrolled burnng of bomass type (tch 4 /GJ). Consstent wth D.2.1.2, only the bomass related to the CDM project actvty wll be consdered for the emsson reducton calculaton.

15 CDM Executve Board page 15 D Baselne emssons from grd-electrcty dsplacement: Emsson reductons from grd-electrcty dsplacement are acheved through the dsplacement of electrcty generated by the power plants connected to the relevant grd system. The formulae presented here are taken drectly from the ACM0002 (Verson 04), therefore only the basc formulae and algorthms are presented here. The emsson factor for the dsplaced energy, (EF electrcty,y ), s calculated as a functon of the buld margn (EF BM,y ) and the operatng margn (EF OM,y ) emsson factor of the correspondng grd system: EF electrcty,y = w OM * EF OM,y + w BM * EF BM,y For the purpose of determnng the buld margn (BM) and operatng margn (OM) emsson factors, as descrbed below, a (regonal) project electrcty system s defned by the spatal extent of the power plants that can be dspatched wthout sgnfcant transmsson constrants. Smlarly, a connected electrcty system, e.g. natonal or nternatonal, s defned as a (regonal) electrcty system that s connected by transmsson lnes to the project electrcty system and n whch power plants can be dspatched wthout sgnfcant transmsson constrants. The detals for calculatng the Operatng and Buld margns (EF OM,y, EF BM,y ) can be found n the baselne methodology chosen for the proposed project actvty. Calculaton of baselne emssons due to dsplacement of electrcty Baselne emssons due to dsplacement of electrcty are calculated by multplyng the electrcty baselne emssons factor (EF electrcty,y ) wth the net electrcty generaton of the project actvty. BL E2,y = BE electrcty,y = EF electrcty,y * EG y Where: BE electrcty,y : Baselne emssons due to dsplacement of electrcty durng the year y (tco 2 /yr). EF electrcty,y : CO 2 baselne emsson factor for the electrcty dsplaced due to the project actvty n durng the year y (tco 2 /MWh). EG y : Net quantty of electrcty generated n the power plant durng the year y (MWh/yr).

16 CDM Executve Board page 16 D Opton 2: Drect montorng of emsson reductons from the project actvty (values should be consstent wth those n secton E). Ths opton was not chosen. D Data to be collected n order to montor emssons from the project actvty, and how ths data wll be archved: ID number (Please use numbers to ease crossreferencng to table D.3) Data varable Source of data Data unt Measured (m), calculated (c), estmated (e), Recordng frequency Proporton of data to be montored How wll the data be archved? (electronc/ paper) Comment CO 2 equ.): D Descrpton of formulae used to calculate project emssons (for each gas, source, formulae/algorthm, emssons unts of Ths opton was not chosen.

17 CDM Executve Board page 17 D.2.3. Treatment of leakage n the montorng plan D If applcable, please descrbe the data and nformaton that wll be collected n order to montor leakage effects of the project actvty ID number Data varable Source of data 22. BF,y Amount of bomass type for whch leakage could not be ruled out usng one of the approaches n the baselne methodology 23. Amount of bomass of type fred n all grdconnected power plants n the regon / country. 24. Amount of bomass of type that s avalable n surplus n the Power Plant s procurement department. Host country offcal data (Dspatch center, statstcs, relevant ndustry offcal publcatons, etc.). Host country offcal data (Dspatch center, statstcs, relevant ndustry offcal Data unt Mass or volume unt. Mass or volume unt. Mass or volume unt. Measured (m), calculated (c) or estmated (e) Recordng frequency Proporton of data to be montored How wll the data be archved? (electronc/ paper) Comment Measured. Annually. 100% Electronc. The amount of bomass combusted wll be collected separately for each type of bomass and wll be determned based on measured data. Measured or calculated. Measured or calculated. followng the end of the credtng perod. Annually. 100% Electronc. Ths parameter wll be obtaned from offcal nformaton. If not avalable, the parameter wll be calculated or estmated usng offcal data. followng the end of the credtng perod. Annually. 100% Electronc. Ths parameter wll be obtaned from offcal nformaton. If not avalable, the parameter wll be calculated or estmated usng offcal nformaton. The quantty

18 CDM Executve Board page 18 regon / country. publcatons, etc.). of surplus supply s the dfference between avalable bomass and bomass used for other purposes than grd-connected electrcty generaton. 25. COEF CO2,j CO 2 emsson factor of the most carbon ntensve fuel n the calculaton of the combned margn wth methodology ACM0002. Relevant dspatch center, electrc power companes publc nformaton and host country offcal nformaton. tco 2 / mass or volume unt. Measured or calculated. followng the end of the credtng perod. Annually. 100% Electronc. Measured or local / natonal data should be preferred. Default values from the IPCC may be used alternatvely. followng the end of the credtng perod. Note: As stated n the chosen baselne and montorng methodology for the proposed project actvty, leakage emssons wll be calculated and deducted only f the Nueva Aldea Phase 1 project actvty causes other bomass-fuel consumers change to fossl fuels because of nsuffcent bomass supply. To do so, a bomass surplus ndex ndcator wll be annually calculated and montored. If the ndcator shows enough quantty of bomass avalable, leakage wll be assumed to be zero. Other leakage emssons are not apparent from the project actvty, snce all detectable GHG emsson sources have been ncluded nsde the project actvty boundary, and are therefore, consdered as project emssons.

19 CDM Executve Board PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Verson 02 D Descrpton of formulae used to estmate leakage (for each gas, source, formulae/algorthm, emssons unts of CO 2 equ.) The man source of potental leakage s that the project dverts bomass from other users and thereby ncreases fossl fuel use n the surroundng area. Accordng to the baselne methodology appled to ths project actvty, there are two alternatves to estmate leakage emssons: Alternatve A: Demonstrate that the bomass consumpton of the power plant wll not result n ncreased fossl fuel consumpton elsewhere. To do so, the baselne methodology presents three optons: 1. Opton L 1 : Show that bomass s not used at all, but burned or left for decay and that ths stuaton would contnue wthout the mplementaton of the project actvty. 2. Opton L 2 : Show that there s a consderable surplus of bomass n the area, whch s not utlzed. 3. Opton L 3 : Show that bomass supplers n the area are not able to sell all ther bomass n the project area. If the project proponent can prove the abundance of bomass through any of these optons, leakage s assumed to be zero. L y = 0 It wll be shown n subsequent sectons of ths PDD that the Nueva Aldea Phase 1 project actvty does not ncrease the consumpton of fossl fuels due to the dverson of bomass from other users n the power plant area and therefore, leakage can be assumed to be zero. Alternatve B: If the project proponent s not able to demonstrate that the bomass consumpton of the power plant wll not result n ncreased fossl fuel consumpton elsewhere, then leakage must be montored and deducted from the net project emssons. Leakage effects n year y are gven by: L y = COEFCO 2, j BF, y NCV Q ε y boler Where: L y : Are the leakage emssons durng the year y n tons of CO 2. COEF CO2,j : Is the CO 2 emsson coeffcent (per an energy unt) of the most carbon ntensve fuel used n the country. BF,y : Is the quantty of bomass type used as fuel n the project plant durng the year y n a volume or mass unt. : Are the types of bomass for whch leakage effects could not be ruled out wth one of the approaches L 1, L 2 or L 3 above. NCV : Net calorfc value of the bomass type (per volume or mass). Q y : Is the net quantty of heat generated n the cogeneraton project plant durng the year y n GJ. ε boler : Is the energy effcency of the boler that would be used n the absence of the project actvty.

20 CDM Executve Board PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Verson 02 Other montored data: ID numb er Data varable 26. Bomass mosture 27. Bomass source dentfca ton Source of data Nueva Aldea Phase 1 power plant. Nueva Aldea Phase 1 s recepto n blls and CONAF dspatch blls. Data unt Measured (m), calculated (c) or estmated (e) Recordng frequency Proport on of data to be montor ed How wll the data be archved? (electronc/ paper) Comment % Measured. Contnuously. 100% Electronc. Data wll be archved 2 years followng the end of the credtng perod. N.A. Measured. Contnuously. 100% Electronc. The Nueva Aldea Phase 1 power plant only receves bomass from supplers who declare to fully comply wth the forest Chlean Law, whch necessarly means that the bomass comes from sustanably managed forests. Data wll be archved 2 years followng the end of the credtng perod. Note: Varable 26 needs to be montored n order to determne the dry bomass used n the Nueva Aldea Phase 1 power plant. Varable 27 was ncluded n the montorng plan due to an ndcaton of the Executve Board n ts 24 th meetng (EB24) related to a smlar project actvty by Arauco, located n the same regon as the Nueva Aldea Phase 1 project actvty.

21 CDM Executve Board PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Verson 02 Addtonal data, not montored ID number 28. ε Boler Data varable Boler energy effcency n the absence of the project actvty. Source of data Project proponent nformaton, relevant publcatons, expert opnon n the relevant ndustry. Data unt Measured (m), calculated (c) or estmated (e) Recordng frequency % Estmated. Determned once, at the begnnng of the credtng perod. Data value Comment 85% Ths effcency value was determned based on the effcency calculaton of a real low-pressure boler nstalled n one of the Arauco ndustral facltes. The effcency was calculated n accordance wth the ASME PTC 4.1 Norm and was further valdated wth an expert opnon from a hghly reputed consultng company, n the feld of heat and power generaton. Note: Varable 28 was ncorporated due to an ndcaton of the Executve Board n ts 38 th meetng (EB38). D.2.4. Descrpton of formulae used to estmate emsson reductons for the project actvty (for each gas, source, formulae/algorthm, emssons unts of CO 2 equ.) From the equatons n sectons D.2.1.2, D and D.2.3.2, the total net emsson reductons from the project actvty durng a gven year y can be calculated as follows: Project Actvty Net Emsson savngs = Baselne Emssons Project Actvty Emssons Leakage or PNE y = BL E,y - EM P,y - L y or PNE y = (BL E1,y + BL E2,y ) (P E1,y + P E2,y + P E3,y + P E4,y ) - L y

22 CDM Executve Board PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Verson 02 Where: BL E1,y : Baselne emssons from avoded bomass dsposal (tco 2 eq/yr). BL E2,y : Baselne emssons from grd electrcty dsplacement (tco 2 /yr). P E1,y : Project emssons from bomass controlled burnng n the Power Plant (tco 2 eq/yr). P E2,y : Project emssons from bomass transportaton to the bomass Power Plant (tco 2 /yr). P E3,y : Project emssons from bomass transportaton wthn the Power Plant ste (tco 2 /yr). P E4,y : Project emssons from fossl fuel consumpton n the Power Plant (tco 2 /yr). L y : Are the leakage emssons (tco 2 /yr).

23 CDM Executve Board page 23 D.3. Qualty control (QC) and qualty assurance (QA) procedures are beng undertaken for data montored Data Uncertanty level of Explan QA/QC procedures planned for these data, or why such procedures are not necessary. data (Hgh/Medum/Low) 1, 22 Low Any drect measurements wth mass or volume meters at the plant ste wll be cross-checked wth an annual energy balance that s based n purchased quanttes and stock changes. 2 Low Check consstency of measurements and local / natonal data wth default values by the IPCC. If the values dffer sgnfcantly from IPCC default values, possbly collect addtonal nformaton or conduct measurements. 3, 6, 8, 16, 21.b, 25 Low (CO 2 ) / Medum (CH 4 ) Check consstency of measurements and local / natonal data wth default values by the IPCC. If the values dffer sgnfcantly from IPCC default values, possbly collect addtonal nformaton or conduct measurements. 4 Low Check consstency of the montored data wth nformaton provded by the transportaton companes, road maps and / or other sources. 5 Low Equpment used to measure the trucks capactes wll receve calbraton and mantenance accordng to proper ndustry standards. 7, 9 Low Total quanttes of fossl fuel consumpton wll be checked wth purchase recepts whenever possble and avalable. Flow meters wll receve proper mantenance and calbraton. Front loaders fuel consumpton wll be crosschecked aganst hourly fuel consumpton rates. 10 Low The electrcty meters wll undergo mantenance / calbraton subject to approprate ndustry standards. The accuracy of the meter readngs for electrcty sold to the grd wll be verfed by recepts ssued by the purchasng power company and / or the correspondng dspatch center. The consstency of metered net electrcty generaton wll be cross-checked wth recepts from sales (f avalable) and the quantty of bomass fred (e.g. check whether the electrcty generaton dvded by the quantty of bomass fred results n a reasonable effcency that s comparable to prevous years). 11 Low All nstruments used to determne the amount of heat generated by the cogeneraton plant wll receve mantenance and calbraton accordng to proper ndustry standards. The consstency of metered net heat generaton should be crosschecked wth recepts from sales (f avalable) and the quantty of bomass fred (e.g. check whether the net heat generaton dvded by the quantty of bomass fred results n a reasonable thermal effcency that s comparable to prevous years). 12, 13, 14, 15, Low Default data (for emsson factors) and IEA statstcs (for energy statstcs) are used to check the local data. 17, 18, 19, 20, 21.a 23, 24 Medum Where possble, supplementary data sources and expert judgment should be used to support fndngs. 26 Low Scales used to determne the bomass mosture wll receve proper mantenance and calbraton accordng to the user manual. 27 Low Qualty control and assurance of ths varable reles on the enforcement of the outstandng law pertnent to the forestry sector n Chle. 28 Low The selected effcency value wll be checked wth an expert opnon n the correspondng ndustry. Ths factor, however, wll be determned at the begnnng of the frst credtng perod.

24 CDM Executve Board page 24 D.4 Please descrbe the operatonal and management structure that the project operator wll mplement n order to montor emsson reductons and any leakage effects, generated by the project actvty The project proponent, Arauco, wll mplement montorng procedures accordng to the montorng methodology chosen for ths project actvty. Ths montorng methodology wll account for emsson reductons and leakage effects n an accurate and conservatve manner. Arauco counts wth on-ste personnel (at the project actvty ste), who wll be n charge of gatherng and regsterng all the requred nformaton descrbed n the montorng plan. Such dutes wll be ncorporated to the personnel s everyday actvtes to ensure contnuty and hgh-qualty standards. The nformaton wll be partally processed and stored there, and wll be sent perodcally (monthly) to Arauco Generacón S.A. n Santago for further and fnal processng (table formats, reports, etc.). Wth the nformaton at ths level, Arauco wll be n condton to certfy the emsson reducton of the Nueva Aldea Phase 1 project actvty perodcally (.e. once every year). Montorng nformaton flow of Nueva Aldea Power Plant Phase 1 project actvty Arauco Headquarters (Santago) Receves the pre-processed montorng data for further and fnal processng. Delegates ths functon to one of ts dvsons (Arauco Generacón). Arauco Generacón (Santago) Paneles Arauco / Celulosa Arauco (Nueva Aldea) Supervses and nstructs local management to enforce montorng plan on the ste. Montorng nformaton flow Nueva Aldea Complex (Nueva Aldea Power Plant Phase 1) Nueva Aldea personnel performs perodcal montorng at the ste. Drect supervson of the Plant manager. D.5 Name of person/entty determnng the montorng methodology: Arauco s the project partcpant responsble for the techncal servces related to GHG emsson reductons, and s therefore, on behalf of Paneles Arauco, the author of ths document, and all ts contents. Arauco s, therefore, the entty that determned the methodology proposed n secton D of ths document.