Monitoring Report 01

Monitoring Report 01 Monitoring Period 11/2002 to 03/2006 Project Site: Hünxener Straße 268, 46537 Dinslaken, Germany Prepared by Carbon-TF B.V. Date: April 2006

1 PROJECT CHARACTERISTICS Coal Mine Gas (CMM) is an unavoidable occurrence of hard coal mining. CMM mainly consists of the harmful green-house-gas methane (GWP 21). Even after the shut down of the mining activities the CMM escapes over many years through open shafts and cracks in the overburden, directly or diffuse, into the atmosphere. In this project the CMM has been sucked out of the fresh closed coal mine Lohberg. The methane has been burned in co-generating units to the less harmful CO 2. The cogenerating units have produced power and heat, which displaced conventional produced power and heat and therefore saved an additional amount of CO 2. The power and heat displacement is outside the project boundaries and is not taken into account, so that only CO 2 emission reductions resulting from the destruction of methane are calculated. The project will generate Emission Reduction Units (ERU) starting with the beginning of the first emissions-trading in the year 2008. Nevertheless all amount of emission reductions resulting from the destruction of methane since the starting date of the project down to the present day should be monitored for the purpose of the verification as Verified Emission Reductions (VER). Project developer s name and address Company name Mingas-Power GmbH Address Rüttenscheider Str. 1-3 Zip code + city postal address Country D-45128 Essen Germany Contact person Herr Brandt Job title Plant Manager Telephone number +49 (0) 201 801-2665 Fax number +49 (0) 201 801-2660 E-Mail address Andreas.Brandt@mingas-power.com Monitoring Report 2006 Page 2 of 40

Corresponder Company name Carbon-TF B.V Address Horsterweg 217 Zip code + city address Country Contact person Job title 5928 ND Venlo-Blerrick Netherlands Mr. Dr. Jürgen Meyer Director Business Development Telephone number +49 (0)208 / 8598-1417 Fax number +49 (0)208 / 8598-1423 E-mail address jm@carbon-tf.com Mingas-Power GmbH is a company, which operates CMM plants. It is a joint venture of Steag AG, which has the entrepreneurial leadership, and Harpen AG. Carbon-TF B.V. founded in 2005 is a consultant for Mingas-Power GmbH. Carbon- TF B.V. is cooperating with the research institute Fraunhofer Institute for Environmental, Safety and Energy Technology UMSICHT, which works together with Mingas-Power GmbH in the field of coal mine methane utilisation since 2001. Chronological sequence: The operation of the cogeneration plant started in November 2002. The PDD has been written by Carbon-TF B.V. in December 2005 [PDD]. Validation of the project has been finished in December 2005 [TÜV-Nord-1]. A Letter of Approval for this project has been applied from the German government in January 2006. Monitoring Report 2006 Page 3 of 40

2 STATEMENT TO WHAT EXTENT THE PROJECT HAS BEEN IMPLEMENTED AS PLANNED The CMM utilisation plant Lohberg consisting of six cogeneration units has been installed in Dinslaken, Germany at the recently closed coal mine "Lohberg" as described in the PDD [PDD]. The plant is in operation continuously since November 2002. In March 2006 the coal mine has been shut down, only cleanup and safety efforts are made now. Due to the shut down of the mining activities the amount of CMM decreases at present, so that 4 cogeneration units will be removed soon and only two units will remain with a total capacity of 2.716 MW. Due to the lacking gas amount it can momentarily occur that no unit is in operation at some days. In this report all units which have been in operation until march 2006 are regarded. The amount of CMM sucked out the coal mine is shared with DSK and Fernwärme Niederrhein. DSK is operating a boiler for heat generation for the premises of the coal mine Lohberg. Fernwärme Niederrhein is operating an own cogeneration unit (capacity about 2.7 MW). The amount of the CMM is shared in the following way: at first the boiler of DSK is supplied with CMM at second the cogeneration units of Fernwärme Niederrhein are supplied with CMM at last the remaining amount of CMM can be used by Mingas-Power The heat generated by the project is fed in into the district heating grid of Fernwärme Niederrhein and replaces of course conventionally generated heat in the grid. This district heating grid is very large and is registered within the German CO 2-Allocation Plan. According to the German Project Machinery Law (Projekt-Mechanismus Gesetz ProMechG) the additional ERU s or VER s are taken into account by Fernwärme Niederrhein and not by the project. Photos of the plant are attached in annex 2. Monitoring Report 2006 Page 4 of 40

3 TECHNICAL DATA Description of technology The plant consists of two gas engines with the following data: Table 3-1: Technical data of the gas engines Manufacturer Number / formation of cylinders Cylinder capacity Rotational frequency Capacity (electrical power) Deutz 16 / V 70.8 dm3 1,500 1/min 2x 1.35 MWel total 2.716 MWel Table 3-2: Types of measurements Data Method Manufacturer Classification Number of the meter Sold electricity CH4 - concentration Total amount CMM Electricity meter Infraredmeasurement Orifice measurement Iskra TE44H2-3T1B4E 960111-5000003 Maihak Unor Type 1 Hartmann + Braun Installation 2002-07- 10 All meters are clearly identifiable and have not been changed since installation. The electricity meter has been provided by RWE Rhein-Ruhr Verteilnetz GmbH. This company is the owner of the meter and is responsible for maintenance and calibrations. Installation documents and all necessary data are stored by the plant manager of Mingas-Power GmbH or at Steag AG. Monitoring Report 2006 Page 5 of 40

4 EMISSION REDUCTIONS The monitoring lasted from November 2002 to March 2006. The following table shows the measured values for sold electricity and resulting CO 2 reductions. Table 4-1: emission reductions Year Months Sold electricity in MWh CO 2 reduction in t 2002 11-12 1,663 6,200 2003 1-12 55,092 205,367 2004 1-12 49,369 184,163 2005 1-12 50,568 188,691 2006 1-3 2,761 10,292 Total 159,452 594,714 Detailed data have been handed over to the verifier - TÜV-Nord. Monitoring Report 2006 Page 6 of 40

5 MEASURES TO ENSURE THE RESULTS / RESPON- SIBILITIES The consistency, correctness and completeness of the data have been checked monthly by Mingas-Power GmbH with support from Carbon-TF B.V. and Harpen Energy Contracting GmbH (HEC). Recorded data, operational journal and annual reports are archived by Mingas-Power GmbH, HEC or Steag AG, joint owner of Mingas-Power GmbH. Mingas-Power GmbH is the operator of the coal-mine-methane gas engine and is responsible for the Operating Management Data recording Emission reductions monitoring Calculation of the emission reductions Verification of the emission reductions by an independent entity. Carbon-TF B.V. supports Mingas-Power GmbH in the monitoring, calculation and verification process. Monitoring Report 2006 Page 7 of 40

Table 5-1: Collected data Data Unit Method Frequency of Measurement Total coal-minemethane amount m 3 Vol. % Flow measurement Methane concentration Infraredmeasurement 15 min. cycle current value 15 min. cycle current value Methane amount Nm 3 Calculation 15 min. cycle cumulative value Power output kwh Electricity meter 15 min. cycle cumulative value Source Measurement Measurement Calculation by means of ACM0008 using P14 and P15 (source: power output) Measurement Net-efficiency % Calculation once expert measurement and appraisal by TÜV-Nord Sold electricity kwh Account of the net-operator Additional electricity consumption by project Monthly cumulative value kwh Estimation handwritten notes cumulative value based on the measurement operation journal Responsible DSK AG DSK AG Plant manager Plant manager Plant manager Steag Energy Center Plant manager German carbon emissions factor for electricity production CONS ELEC,PJ Efficiency of methane destruction/oxidation in power plant Carbon emission factor for combusted methane Carbon emission factor for combusted non methane hydrocarbons Global warming potential of methane NMHC- Concentration in CMM, PCNMHC NMHC- Concentration relative to CH4- Concentation, r tco 2 e/ kwh Calculation is published once per year [VDEW] VDEW, UBA % set to 99,5 % set value ACM0008 UNFCCC tco 2 e/ tch 4 tco 2 e/ NMHC Mass % set to 2.75 set value ACM0008 UNFCCC Calculation once DIN ISO 6976 (1995) Carbon-TF set to 21 set value ACM0008 UNFCCC lab analysis once Measurement Plant manager % Calculation once Measurements Carbon-TF Monitoring Report 2006 Page 8 of 40

For the net-efficiency of the plant an expert appraisal by TÜV-Nord Systems has been prepared in April 2006 [TÜV-Sys-1]. Result: 35 % The calculation of emission reductions as determined in the PDD bases of an estimated efficiency with 35% (see above). This value has been confirmed by the expert appraisal. This value is conservative, because the expected net efficiency of gas engines using CMM is lower [33.9 % expected efficiency] see expert appraisal [TÜV- Sys-1]. Lower net efficiencies lead to more emission reductions. But to keep conservative, the emission reductions are calculated out of the sold power, using the chosen capacity of 35 % [TÜV-Sys-1]. The electricity meter has been provided by RWE Rhein-Ruhr Verteilnetz GmbH. This company is the owner of the meters and is responsible for maintenance and calibrations. The measurements of the CMM amount and the methane concentration are provided by Deutsche Steinkohle AG (DSK). For an active coal mine these data are very important safety factors, so that the measurement equipment is regularly checked once a week. The power output and the methane amount are read out every night per remote data transmission to Steag AG, which stores the data and posts them on the Internet (the so-called Steag Energy Center Sites). The plant manager can control these data at any time by intranet access. If something goes wrong at the plant, the plant manager gets the accordant alarm message per SMS on his mobile phone. Monitoring Report 2006 Page 9 of 40

Table 5-2: Uncertainties and calibrations Data Coal-minemethane amount Methane concentration Uncertainty level of data (high/medium/ low) medium medium Calibrations, calibration intervals The continuous measurement is provided by DSK, which is also responsible for calibrations. DSK has own regulations for all equipment and measurement concerning a coal mine because of safety reasons. The quality of the measurement depends on the amount of the CMM. Generally the uncertainty is low. Because the gauge is designed for relatively large amounts of CMM, the uncertainty increases with the actually occurring lower values so that the over-all uncertainty is medium. The measurement is provided by DSK, which is also responsible for calibrations. DSK has own regulations for all equipment and measurement concerning a coal mine because of safety reasons. The indication of the gas analyser is drifting, so that it has to be recalibrated ically (once a week). Methane amount low The formula requires no further controlling once it has been programmed and checked. Power output low Last calibration: 2003/2004 validity of calibration: 2011/2012 Net-efficiency low Conservative calculation with 35 % Additional electricity consumption by project German carbon emissions factor for electricity production CON- S ELEC,PJ Carbon emission factor for combusted non methane hydrocarbons NMHC- Concentration in CMM, PCNMHC NMHC- Concentration relative to CH4- Concentation, r medium low low low medium expert appraisal, 2006-04-19, [TÜV-Sys-1] one-time estimation yearly determination one-time determination one-time determination One-time determination; an average CH4-concentration has been used for the determination of r. While the NMHCconcentration in CMM is nearly constant, the CH4- Concentration is varying in a wider range. Every 500-800 operating hours the gas engines had to be maintained with oil change e.g. through the maintenance firm G.A.S., which delivered the cogeneration units. Monitoring Report 2006 Page 10 of 40

Records used: List of obtained parameters (handed over to TÜV-Nord) Bills of RWE Rhein-Ruhr Verteilnetz GmbH (stored by Mingas-Power GmbH) Installation and calibration documents (stored by Mingas-Power GmbH) Measurement of net efficiency [TÜV-Sys-1] Operation journal (stored by Harpen Energy Contracting GmbH HEC) Annual reports (stored by Mingas-Power GmbH) Monitoring Report 2006 Page 11 of 40

6 DEVIATIONS FROM THE MONITORING PLAN The deviations from the monitoring plan established in the PDD are listed below: 1) The frequency of measurement as defined in P 3.1 in the PDD as permanent has been in fact recorded in a 15 minutes cycle. The 15 minutes cycle provides an optimum of significant recorded data respective a reduced amount of data which has to be stored and archived. 2) The net-efficiency has been estimated, calculated and measured once and not yearly, see external measurement report and expert appraisal by TÜV-Nord Systems GmbH, [TÜV-Sys-1]. 3) The own consumption of electricity has not been recorded electronically. An average value resulting from handwritten notes in the operation journal has been taken into account. 4) The produced electricity has not been recorded electronically. To keep conservative the sold electricity has been taken into account instead. 5) In the monitoring plan two more data are listed to be monitored: Temperature of CMM Pressure of CMM At present DSK is responsible for flow measurement and methane concentration. The measurements of temperature and pressure of CMM which are necessary for the correction of the CMM amount are included in the flow measurement gauge provided by DSK. This data are used for the internal correction within the gauge and are not available for external usage. Monitoring Report 2006 Page 12 of 40

7 CONSOLIDATION OF THE MONITORING PLAN WITH THE APPROVED CONSOLIDATED MONITORING METHODOLOGY ACM0008 In the following the monitoring plan established in the PDD, which has been validated by TÜV Nord, is consolidated with the Approved consolidated monitoring methodology ACM0008, which has been approved by the CDM Executive Board in the meantime. All additional demands which are requested in the ACM0008 are fulfilled to the extent to which they may be applicable. Monitoring Report 2006 Page 13 of 40

ACM0008 11 1. Project Emissions 11.1 Overall ID no Symbol Data variable Data unit P1 PE y Project emissions in year y P2 PEME Project emissions from energy use to capture and use methane P3 PE MD Project emissions from methane destroyed P4 PE UM Project emissions from uncombusted methane Measured (m), calculated (c) or estimated (e) Recording frequency Proportion of data to be monitored How will the data be archived? (electronic/ paper) For how long is archived data to be kept? tco 2e c monthly 100% electronic Crediting tco 2e c monthly 100% electronic Crediting tco 2 e c monthly 100% electronic Crediting tco 2 e c monthly 100% electronic Crediting Comment / Implementation by Carbon-TF is calculated using eq. (1), see below The CMM suction out of the active coal mine is always in operation for safety reasons (also in absence of the project, in this case the methane would be simply blown into atmosphere). Thus the energy use for capture of the methane is outside the project boundaries. The energy use for utilisation of the CMM by the project is calculated using eq. (2) together with P5 and P8. is calculated using eq. (3). is calculated using P14 and P15. Project emissions are defined by the following equation PEy = PEME + PEMD + PEUM (1) Monitoring Report 2006 Page 14 of 40

ACM0008-11.2 Combustion emissions from additional energy required for CBM/CMM capture and use P5 ID no Symbol Data variable Data unit CONS ELEC,PJ Additional electricity consumption by project P6 CONS HEAT,PJ Additional heat consumption by project P7 CONS FF_PJ Additional fossil fuel consumption by project P8 CEF ELEC_PJ Carbon emission factor of CONS ELEC PJ Measured (m), calculated (c) or estimated (e) Recording frequency Proportion of data to be monitored How will the data be archived? (electronic/ paper) MWh m continuous 100% electronic on paper only (operation journal) For how long is archived data to be kept? Crediting GJ m continuous 100% electronic Crediting GJ m continuous 100% electronic Crediting tco 2/ GJ m, c or e ex ante 100% electronic nearly constant [VDEW] Crediting Comment / Implementation by Carbon-TF An average value of 0.04 MW per gas engine is taken into account. This mean value results from the hand-written values in the operation journal and is multiplied with the hours of operation if available. Otherwise an electricity consumption of 4% relating to the power output is used. If any -none If any -none The Carbon emission factor of the electricity industry of 2004 is CEFELEC_PJ = 0.550 t/mwh This value is used as of 2004. Before 2004 the value of 2002 is used: CEFELEC_PJ = 0.570 t/mwh, so the value is nearly constant. The value is determined per annum by the Federal Environmental Monitoring Report 2006 Page 15 of 40

Agency (Umweltbundesamt UBA) and the German Electricity Association (Verband der deutschen Elektrizitätswirtschaft VDEW) [VDEW][; P9 CEF HEAT_PJ Carbon emission factor of CONSHEAT PJ tco 2 / GJ m, c or e ex ante 100% electronic Crediting P10 CEFFF_PJ Carbon emission factor of tco2/ m, c or e ex ante 100% electronic Crediting CONS FF PJ GJ Project emissions from energy use to capture and use methane (PE ME,) is obtained by the equation: The German electric power companies are legally obligated to publish their electricity mix and the emissions of CO 2 in comparison with the total German values. So the values are published once a year by electric utilities. not needed Use of IPCC default or national values would suffice - not needed PE ME = CONS ELEC,PJ X CEF ELEC + CONS HEAT,PJ X CEF HEAT + CONS Foss Fuel,PJ x CEF Foss Fuel (2) Monitoring Report 2006 Page 16 of 40

ACM0008 11.3 Combustion emissions from use of captured methane ID no P11 MD FL P12 MM FL Symbol Data variable Data unit Methane destroyed by flare Methane sent to flare Measured (m), calculated (c) or estimated (e) Recording frequency tch4 c calculated monthly Proportion of data to be monitored How will the data be archived? (electronic/ paper) For how long is archived data to be kept? 100% electronic Crediting tch4 m continuous 100% electronic Crediting not applicable Comment / Implementation by Carbon-TF Flow meters will record gas volumes, pressure and temperature. Density of methane under normal conditions of temperature and pressure is 0.67kg/m3 (Revised 1996 IPCC Reference Manual p 1.24 and 1.16) [IPCC] not applicable Monitoring Report 2006 Page 17 of 40

ID no P13 Eff FL Symbol Data variable Data unit Flare/combustion efficiency, determined by the operation hours and the methane content in the exhaust gas Measured (m), calculated (c) or estimated (e) Recording frequency Proportion of data to be monitored How will the data be archived? (electronic/ paper) For how long is archived data to be kept? % m / c annually n/a electronic During the crediting and two years after Comment / Implementation by Carbon-TF (1) Continuous measurement of operation time of flare (e.g. with temperature) (2) Periodic measurement of methane content of flare exhaust gas. In this case the operation of flare will be continuously monitored by run time meter connected to a flame detector. not applicable Monitoring Report 2006 Page 18 of 40

ID no P14 MD ELEC P15 MM ELEC Symbol Data variable Data unit Methane destroyed by power generation Methane sent to power plant Measured (m), calculated (c) or estimated (e) Recording frequency tch 4 c calculated monthly Proportion of data to be monitored How will the data be archived? (electronic/ paper) For how long is archived data to be kept? 100% electronic Crediting tch 4 m continuous 100% electronic Crediting Comment / Implementation by Carbon-TF calculated using the part of sold electricity, which has been generated by methane combustion, a conservative net-efficiency and the calorific value of methane. Flow meters will record gas volumes, pressure and temperature. Density of methane under normal conditions of temperature and pressure is 0.67kg/m3 (Revised 1996 IPCC Reference Manual p 1.24 and 1.16) [IPCC] - An orifice flow meter from the suction system of the active coal mine is used. Because the quality of the measurement result of the installed measurement depends highly on the current amount of the CMM, the uncertainty is medium (high for very low values). This is because the gauge is designed for relatively large amounts of CMM and the uncertainty increases highly with the actually occurring lower values. Monitoring Report 2006 Page 19 of 40

ID no P15 cont. Symbol Data variable Data unit Measured (m), calculated (c) or estimated (e) Recording frequency Proportion of data to be monitored How will the data be archived? (electronic/ paper) For how long is archived data to be kept? Comment / Implementation by Carbon-TF Furthermore a small amount of CMM is sent to the flare of the coal mine and therefore is not acquired. This case occurs when the total amount of CMM is larger than the amount that could be burned in the cogeneration units. P16 Eff ELEC Efficiency of methane destruction/oxidation in In order to improve the quality of the measurement result an improved alternative method for the determination of the amount of methane send to the power plant, according with the PDD, is used. The amount of methane is calculated out of the sold electricity using P14 and P16. The uncertainty of the power measurement is extremely low while the uncertainty of the net-efficiency is medium. The resulting total uncertainty of the methane amount is smaller than those using measurement results of the orifice. - e ex-ante set at 99.5%(IPCC) Monitoring Report 2006 Page 20 of 40

ID no P17 MD HEAT P18 MM HEAT P19 Eff HEAT P20 MD GAS P21 MM GAS Symbol Data variable Data unit power plant Methane destroyed by heat generation Methane sent to boiler Efficiency of methane destruction/oxidation in heat plant Methane destroyed by gas grid end-users Methane sent to gas grid for end users Measured (m), calculated (c) or estimated (e) Recording frequency tch 4 c calculated monthly Proportion of data to be monitored How will the data be archived? (electronic/ paper) For how long is archived data to be kept? 100% electronic Crediting tch 4 m continuous 100% electronic Crediting Comment / Implementation by not applicable Carbon-TF Flow meters will record gas volumes, pressure and temperature. Density of methane under normal conditions of temperature and pressure is 0.67kg/m3 (Revised 1996 IPCC Reference Manual p 1.24 and 1.16) [IPCC] not applicable - e ex ante set at 99.5% (IPCC) not applicable tch 4 c 100% electronic Crediting tch 4 m continuous 100% electronic Crediting not applicable Flow meters will record gas volumes, pressure and temperature. Density of methane under normal conditions of temperature and pressure is Monitoring Report 2006 Page 21 of 40

ID no P22 Eff GAS P23 CEF CH4 P24 CEF NMHC P25 PC CH4 P26 PC NMHC Symbol Data variable Data unit Overall efficiency of methane destruction / oxidation through gas grid Carbon emission factor for combusted methane Carbon emission factor for combusted non methane hydrocarbons (various) Concentration of methane in extracted gas NMHC concentration in coal mine gas Measured (m), calculated (c) or estimated (e) Recording frequency Proportion of data to be monitored How will the data be archived? (electronic/ paper) For how long is archived data to be kept? Comment / Implementation by Carbon-TF 0.67kg/m3 (Revised 1996 IPCC Reference Manual p 1.24 and 1.16) [IPCC] not applicable - e ex ante set at 98.5% (IPCC) not applicable % m (concentration meters, optical and calorific) % m (concentration meters, optical and calorific) Hourly/Daily 15 min cycle 100% Electronic Crediting once 100% Crediting set at 2.75 tco2e/tch4 To be obtained through ical analysis of the fractional composition of captured not applicable measurement Used to check if more than 1% of emissions and to calculate r lab analysis, lower than 1% Monitoring Report 2006 Page 22 of 40

ID no P27 r Symbol Data variable Data unit Relative proportion of NMHC compared to methane Measured (m), calculated (c) or estimated (e) Recording frequency Proportion of data to be monitored How will the data be archived? (electronic/ paper) For how long is archived data to be kept? % c annually 100% Crediting Comment / Implementation by - not needed Carbon-TF Project emissions from methane destroyed (PE MD) can be obtained by the equation PE MD = (MD FL + MD ELEC + MD HEAT + MD GAS ) x ( CEF CH4 + r x CEF NMHC ) (3) with: r = PC NMHC / PC CH4 where: 9 PE MD Project emissions from CMM/CBM destroyed (tco 2 e) MD FL Methane destroyed through flaring (tch4 MD ELEC Methane destroyed through power generation MD HEAT Methane destroyed through heat generation MD GAS Methane destroyed after being supplied to gas grid or for vehicle use CEF CH4 Carbon emission factor for combusted methane (2.75 tco 2 e/tch4) CEF NMHC Carbon emission factor for combusted non methane hydrocarbons (various) (tco 2 eq/tnmhc) r Relative proportion of NMHC compared to methane Pc CH4 Concentration (in mass) of methane in extracted gas (%) PC NMHC NMHC concentration (in mass) in extracted gas (%) In each end-use, the amount of gas destroyed depends on the efficiency of combustion of each end use. (4) Monitoring Report 2006 Page 23 of 40

9 Note that throughout this monitoring methodology, it is assumed that measured quantities of coal mine gas are converted to tonnes of methane using the measured methane concentration of the coal mine gas and the density of methane. Monitoring Report 2006 Page 24 of 40

ID no P28 GWP CH4 P29 MM i P30 Eff i ACM0008 11.4 Un-combusted methane from flaring and end uses Symbol Data variable Data unit Global warming potential of methane Methane measured sent to use i Efficiency of methane destruction / oxidation through use i Measured (m), calculated (c) or estimated (e) Recording frequency Proportion of data to be monitored How will the data be archived? (electronic/ paper) For how long is archived data to be kept? - e ex ante set at 21 tch 4 m continuous 100% electronic Crediting - m, c, or e ex ante or ex post 100% electronic Crediting Comment / Implementation by Carbon-TF Flow meters will record gas volumes, pressure and temperature. - not applicable - not applicable Uncombusted methane from flaring and end uses (PE UM ) can be obtained through the equation: PE UM = GWP CH4 x Σ [MM i x ( 1 - Eff i )] (9) Monitoring Report 2006 Page 25 of 40

ACM0008 12 2. Baseline emissions 12.1 Overall ID no Symbol Data variable Data unit B1 BE y Baseline emissions in year y B2 BE MD,y Baseline emissions from destruction of methane in the baseline scenario in year y B3 BE MR,y Baseline emissions from release of methane into the atmosphere in year y that is avoided by the project activity B4 BE Use,y Baseline emissions from the production of power, heat or supply to gas grid replaced by the project activity in year y Measured (m), calculated (c) or estimated (e) Baseline emissions are given by the following equation: BE y = BE MD,y + BE MR,y + BE Use,y Recording frequency Proportion of data to be monitored How will the data be archived? (electronic/ paper) For how long is archived data to be kept? tco 2 c yearly 100% electronic Crediting tco 2 c yearly 100% electronic Crediting tco 2 c yearly 100% electronic Crediting tco 2 c yearly 100% electronic Crediting Comment / Implementation by Carbon-TF calculated using eq. (10), see below none calculated using P15 none (10) Monitoring Report 2006 Page 26 of 40

ACM0008 12.2 Methane destruction due to thermal demand in the baseline ID no Symbol Data variable Data unit B5 CBM BL,i,y CBM that would have been captured, used and destroyed by use i in the baseline scenario in year y B6 CMM BL, i CMM that would have been captured, used and destroyed by use i in the baseline scenario in year y B7 PMM BL, i PMM that would have been captured, used and destroyed by use i in the baseline scenario in year y B9 TH BL, y Projected annual baseline CMM / CBM demand for thermal energy uses B10 CEF CH4 B11 d k max Measured (m), calculated (c) or estimated (e) Recording frequency tch 4 e estimated ex-ante at start of project tch 4 e estimated ex-ante at start of project tch 4 e estimated ex-ante at start of project Proportion of data to be monitored How will the data be archived? (electronic/ paper) For how long is archived data to be kept? 100% electronic crediting + 2 yrs 100% electronic crediting + 2 yrs 100% electronic crediting + 2 yrs tch 4 e ex-ante 100% electronic Crediting + 2yrs Comment / Implementation none none none by Carbon-TF estimated by procedure defined in the corresponding baseline methodology - not applicable Carbon emission factor for tco 2 e/ e ex-ante 100% methane tch 4 2.75 tco 2 e/tch 4 scalar adjustment factor for - c ex-ante 100% electronic crediting not applicable day k, based on the seasonal +2yrs load shape (Σ d max k > 365) Monitoring Report 2006 Page 27 of 40

Methane destruction due to thermal demand in the baseline (BEmd,y) is obtained by the equation: BE MDy =(CEF CH4 + r x CEF NMHC ) x Σ (CBM BLi,y + CMM BLi,y + PMM BLi, y ) i where: BE MD,y i CBM BL,i,y CMM BL,i,y PMM BL,i,y CEF CH4 CEF NMHC r Baseline emissions from destruction of methane in the baseline scenario in year y (tco 2 e) Use of methane (flaring, power generation, heat generation, supply to gas grid to various combustion end uses) CBM that would have been captured, sent to and destroyed by use i in the baseline scenario in the year y (expressed in tch 4 ) Pre-mining CMM that would have been captured, sent to and destroyed by use i in the baseline scenario in year y (expressed in tch 4 ) post-mining CMM that would have been captured, sent to and destroyed by use i in the baseline scenario in year y (tch 4 ) Carbon emission factor for combusted methane (2.75 tco2e/tch4) Carbon emission factor for combusted non methane hydrocarbons (various. To be obtained through ical analysis of captured methane) (tco2eq/tnmhc) Relative proportion of NMHC compared to methane with : r = PC NMHC / PC CH4 PC CH4 Concentration (in mass) of methane in extracted gas (%) PC NMHC NMHC concentration (in mass) in extracted gas (%) Monitoring Report 2006 Page 28 of 40

Where thermal demand is present in the baseline scenario, baseline thermal demand is estimated using the following variables. ( CBM BL, th, y + CMM BL, th, y + PMM BL, th, y) = 365 k = 1 TH BL, k (12) TH BL, y TH BL, k = 365 d max k (13) where: CBM BL,th,y CBM that would have been captured and destroyed by thermal demand in the baseline scenario (tch 4 ) CMM BL,th,y Pre-mining CMM that would have been captured and destroyed by thermal demand in the baseline scenario (tch 4 ) PMM BL,th,y post-mining CMM that would have been captured and destroyed by thermal demand in the baseline scenario (tch 4 ) TH BL,k Methane use to serve estimated thermal energy demand in the baseline for day k in year y (tch 4 ) TH BL,y Projected annual baseline thermal demand for year y (tch 4 ) d k scalar adjustment factor for day k to reflect seasonal variations, such that Σ d k = 365 max d k maximum scalar adjustment factor for day k over the 5 years prior to the start of the project activity (i.e. Σ d max k > 365) Monitoring Report 2006 Page 29 of 40

ACM0008 12.3 Baseline emissions from methane released into the atmosphere i. Overall ID no Symbol Data variable Data unit B12 CBMe i,y Eligible CBM captured, sent to and destroyed by use i in the project for year y B13 CBM BL,i,y CBM that would have been captured, sent to and destroyed by use i in the baseline scenario B14 CMM PJ,I,y Pre-mining CMM captured, sent to and destroyed by use i in the project activity in year y Measured (m), calculated (c) or estimated (e) Recording frequency Proportion of data to be monitored How will the data be archived? (electronic/ paper) For how long is archived data to be kept? tch 4 c yearly 100% electronic Crediting tch 4 c,e ex ante 100% electronic Crediting tch 4 m continuous 100% electronic Crediting Comment / Implementation by Carbon-TF none none calculated using P15 Monitoring Report 2006 Page 30 of 40

B15 ID no Symbol Data variable Data unit CMM BL,i,y Pre-mining CMM that would have been captured, sent to and destroyed by use i in the baseline scenario in year y Measured (m), calculated (c) or estimated (e) Recording frequency Proportion of data to be monitored How will the data be archived? (electronic/ paper) For how long is archived data to be kept? tch 4 c,e ex ante 100% electronic Crediting Comment / Implementation none by Carbon-TF B16 PMM PJ,i,y post-mining CMM captured, sent to and destroyed by use i in the project activity in year y B17 PMM BL,i,y post-mining CMM that would have been captured, sent to and destroyed by use i in the baseline scenario in year y tch 4 m continuous 100% electronic & Paper Crediting tch 4 c,e ex ante 100% electronic Crediting none included in B14, German CMMsuction systems on active coal mines don t distinguish between CMM and PMM B18 GWP CH4 Global warming potential of methane tco 2 e / tch 4 e ex ante 21 tco 2 e/tch 4 Monitoring Report 2006 Page 31 of 40

ID no Symbol Data variable Data unit B19 CEF CH4 Carbon emission factor for combusted methane tco 2 e / tch 4 Measured (m), calculated (c) or estimated (e) Recording frequency Proportion of data to be monitored How will the data be archived? (electronic/ paper) For how long is archived data to be kept? Comment / Implementation by Carbon-TF e ex ante 44/16 = 2.75 tco 2 e/tch 4 The baseline emissions from release of methane into the atmosphere in the year y (BE MR,y ) is obtained by the following equation: BE MR,y = [(CBM e,y - CBM BL,y ) + (CMM PJ,y - CMM BL,y ) + (PMM PJ,y - PMM BL,y )] x GWP CH4 (14) Monitoring Report 2006 Page 32 of 40

ACM0008 (12.3) ii. Estimation of eligible CBM ID no s: B28 B38 not applicable, because no CBM is used! Monitoring Report 2006 Page 33 of 40

ACM0008 12.4 Baseline emissions from power/heat generation and vehicle replaced by project ID no s: B39 B58 not applicable, because neither power/heat generation nor vehicle fuel is replaced by the project! The power generated by the project is fed into the grid and replaces of course conventionally generated power in the grid. Because the replacement of power is regulated by the German Renewable Energy Sources Act (Erneuerbare Energien Gesetz - EEG) it is not taken into account for generating additional ERU s or VER s for the project. According to the Project Mechanisms Act (Projekt-Mechanismus Gesetz ProMechG) no double marketing is allowed. The heat generated by the project is fed in into the district heating grid of the Fernwärme Niederrhein and replaces of course conventionally generated heat in the grid. This district heating grid is very large and is registered within the German CO 2 -Allocation Plan. According to the German Project Machinery Law (Projekt-Mechanismus Gesetz ProMechG) the additional ERU s or VER s are taken into account by Fernwärme Niederrhein and not by the project. Monitoring Report 2006 Page 34 of 40

ACM0008 12.5 Leakage emissions from displacement of baseline thermal energy uses ID no s: L1 L4 not applicable, because no baseline thermal energy uses are displaced by the project! Monitoring Report 2006 Page 35 of 40

[ACM0008] [IPCC] ANNEX 1 - REFERENCES Approved consolidated baseline methodology ACM0008 Consolidated baseline methodology for coal bed methane and coal mine methane capture and use for power (electrical or motive) and heat and/or destruction by flaring, Version 01, 28 November 2005 http://cdm.unfccc.int/methodologies/pamethodologies/approved.html Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories,Reference Manual (Volume 3),Chapter Energy, 1.4.1 Unoxidized Carbon, Page 1.32, 1996 http://www.ipcc-nggip.iges.or.jp/public/gl/invs6a.htm [PDD] Project Design Document; December 2005 [ProMechG] Gesetz zur Einführung der projektbezogenen Mechanismen nach dem Protokoll von Kyoto zum Rahmenübereinkommen der Vereinten Nationen über Klimaänderungen vom 11. Dezember 1997, zur Umsetzung der Richtlinie 2004/101/EG und zur Änderung des Kraft-Wärme-Kopplungsgesetzes; 2005-September-30 {Project Mechanisms Act - law of the German Government concerning project activities and emissions trading} [TÜV-Nord-1] Validation Report on the project: Utilization of Coal-Mine-Methane "Lohberg 1/2" [TÜV-Sys-1] [VDEW] Project No: 20664899-04/08 Rev 0 by RWTÜV Systems GmbH member of TÜV- Nord Group, dated 2005-December-19 Bericht über die Wirkungsgradbestimmung an Grubengas BHKW-Modulen dee Anlagen Haus Aden, Lohberg und Walsum; Geschäfts-Nr: 1409-210/06, Auftrags-Nr.: 810 235 8845 erstellt durch TÜV-Nord Systems, dated 2006-04-19 {Expert appraisal - Measurement of net efficiency} Verband der deutschen Elektrizitätswirtschaft (German Electricity Association) Internet: www.vdew.de VDEW press conference 2005-December-06 by Dr. Eberhard Meller: "Stromwirtschaft schlüsselt Energiemix auf" Monitoring Report 2006 Page 36 of 40

ANNEX 2 PHOTOS All photos are made by Carbon-TF B.V.: The plant Lohberg Electricity meter for all modules Monitoring Report 2006 Page 37 of 40

Transformer Control room at Lohberg Monitoring Report 2006 Page 38 of 40

ANNEX 3 OBTAINED PARAMETERS Table 1: Obtained Parameters Monitoring Report 2006 Page 39 of 40

Table 2: Constants Constants of ACM0008 ID no ACM0008 Symbol Data variable Value P5 CONS ELEC,PJ Additional electricity consumption by project 0,040 MW per gas engine P8 CEF ELEC_PJ Carbon emission factor of CONS ELEC,PJ 0.550 kg/kwh CO 2 (2004) 0.570 kg/kwh CO 2 (2002) P16 Eff ELEC Efficiency of methane destruction/oxidation in power plant 99.5% P23, B10, B19 CEF CH4 Carbon emission factor for combusted methane 2.75 tco 2 e/tch 4 (44/16) P28, B18 GWP CH4 Global warming potential of methane 21 P14 Calorific value methane (mass related) 50,05 MJ/kg Constants of the monitoring plan Equation Symbol Data variable Value 2.4.2 Eff Efficiency of the gas engine 0.35 2.4.2 H u Calorific value of methane 9.49 kwh/m 3 = 0.009949 MWh/m³ 2.4.2 Rho CH4 Density of methane 0.717 kg/m 3 = 0.000717 t/m³ Table 3: Gas Analysis Component Sample 1 Sample 2 12.04.2006 12.04.2006 CH4 39,98 37,20 C2H6 0,130 0,120 C3H8 0,000 0,000 n-c4h10 0,000 0,000 i-c4h9 0,000 0,000 O2 7,30 7,50 N2 49,20 51,60 CO2 3,40 3,60 H2O (rest) -0,01-0,02 mixture 100,00 100,00 Monitoring Report 2006 Page 40 of 40