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PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM Executive Board

CLEAN DEVELOPMENT MECHANISM


PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD)
Version 03 - in effect as of: 22 December 2006

CONTENTS

A. General description of the small scale project activity

B. Application of a baseline and monitoring methodology

C. Duration of the project activity / crediting period

D. Environmental impacts

E. Stakeholders comments

Annexes

Annex 1: Contact information on participants in the proposed small scale project activity

Annex 2: Information regarding public funding

Annex 3: Baseline information

Annex 4: Monitoring information

Appendix

Appendix 1: Additional information

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Revision history of this document

Version Date Description and reason of revision


Number
01 21 January Initial adoption
2003
02 8 July 2005 The Board agreed to revise the CDM SSC PDD to reflect
guidance and clarifications provided by the Board since
version 01 of this document.
As a consequence, the guidelines for completing CDM SSC
PDD have been revised accordingly to version 2. The latest
version can be found at
<http://cdm.unfccc.int/Reference/Documents>.
03 22 December The Board agreed to revise the CDM project design
2006 document for small-scale activities (CDM-SSC-PDD), taking
into account CDM-PDD and CDM-NM.

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SECTION A. General description of small-scale project activity

A.1 Title of the small-scale project activity:


>>
Biogas energy plant from palm oil mill effluent
Document version: 2.51
Date of completion: January 7th, 2008

A.2. Description of the small-scale project activity:


>>
Purpose of project activity

The project consists of capturing and combusting methane gas released from anaerobic lagoons used for
the treatment of wastewater generated at Extractora del Atlantico, a palm oil mill located near to the
Champona village. The mill processed 110,000 tons of Fresh Fruit Bunch (FFB) in 2006 and will increase
its capacity to 220,000 tons by 2014. The extraction process of palm oil generates about 1.1 m3 of palm
oil mill effluent waste (POME) for each ton of FFB processed.
In order to reduce the impact on the environment, the discharge limits of POME are reduced by treatment
in a series of lagoons. It consists of several steps including cooling, oil removal, anaerobic and aerobic
treatment to reduce the BOD/COD to a level acceptable for irrigation purpose.
The anaerobic decay of organic matter inside the lagoons is accompanied by the production of biogas
containing methane, released in an uncontrolled manner to the atmosphere.
Currently no legislations are in place in Guatemala to regulate the effluents discharge, nor the capture of
methane from the open lagoons.

The project activity involves the capture of biogas and its valorization by generation of electricity that
will be both exported to the grid and used to replace electricity currently generated on-site by fossil fuel.
The excess biogas (if any) will be combusted in an enclosed type flare. For financing reasons, the project
will be implemented in three phases corresponding to the covering of each of the three existing lagoons or
by using an anaerobic digestor (AD) for the second and third lagoon. The project activity does not impact
the sludge treatment nor the effluent discharge characteristics which remain identical to the baseline. Only
gas is captured by covering the anaerobic lagoons.

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Over the crediting period (2008-2014), the project activity will result in the following achievements:

Overview of project activity parameters Value Units


Capacity of the mill (fresh fruit bunch)
2008 116,000 Tons per year
2014 220,000 Tons per year
Effluent treated (POME)
2008 128,000 m3 /year
2014 245,000 m3 /year
Methane captured over the crediting period 12.2 million m3
377 TJ
Emissions reduction over the crediting period 212,332 tCO2e
Total electricity production for the user 15 million kWh
Total electricity exported to the grid 21.6 million kWh

Contribution to sustainable development

On February 7th 2007, the DNA issued its support letter (see Appendix 1) confirming that the project
meets the Host country sustainable development criteria:

Social criteria
Extractora del Atlantico supports various initiatives aiming at the improvement of the quality of life,
health and education of surrounding villagers. The Company also founded in 2005 Asoservicios, a
socio-economic non-profit organization aiming at managing the harmony and well being of its employees
and workers, based on respect and mutual aid.
The details of the various initiatives implemented by Extractora del Atlantico and Asoservicios are
described in Appendix 1: Description of social actions undertaken by Extractora del Atlantico, S.A.

Extractora del Atlantico has committed to donate 1 to 2% of the CDM revenues to the worker association
ASOSERVIOS that will benefit to the development and welfare of the workers and their families.1

Economic criteria
It contributes to poverty reduction by creating short term jobs (17) during the construction period
of the plant and in the long term for its operation and maintenance (6).

Project phase Job description Amount of jobs


During construction (on-site) Civil workers 3
Mechanics 4
Welders 2
Electrician 1
Unskilled workers 7
For operation and maintenance of the Operators 6 ( 3 shifts of 2 people)
project activity

1
Letter of Extractore de Altlantico to ASOSERVICIOS dated of 01/08/2006

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During the first crediting period (2008-2014), the displacement of fossil fuel will result in a
positive impact on the balance of payments for the country.
Transfer new technology: the project activity is a first of its kind in Guatemala.

Environmental criteria
The project will contribute to reduce GHG emissions by capturing methane emissions from the
anaerobic lagoons. In Guatemala, there are no regulations applicable to the palm oil industry to
capture methane from open lagoons.
The project contributes to the development of sustainable electricity production reducing the
dependence to fossil fuel. The project activity displaces the use of non-renewable fossil fuels by a
renewable energy: biogas.

Further detailed are provide at section D.

Health and safety criteria

The project activity reduces health and safety problems associated with uncontrolled release of biogas
into the atmosphere:
1. Odors cause nuisance for the surrounding villages and workers at the mill.
2. Explosion hazards (mainly with methane)
3. Health issues mainly related to the emissions of sulfides

Palm oil industry sustainability

The project activity contributes to the sustainability of the palm oil industry as defined per the
Roundtable on sustainable palm oil2: Sustainable palm oil production is comprised of legal,
economically viable, environmentally appropriate and socially beneficial management and operations
which is delivered through the application of a set of criteria. The project activity is inline with the
following criteria:

1) Waste management: reduced and reused, the project will improve the management of effluent
water
2) Use of renewable energy is maximized: energy is recovered from biogas instead of fossil fuel
3) Reduction of pollution and greenhouse gases: reduction of CO2 emissions and odors

2
See www.rspo.org criteria 5.3, 5.4 and 5.6

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A.3. Project participants:


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Name of Party involved Private and/or public entity (ies) project Kindly indicate if the Party
((host) indicates a host Party) participants (*) (as applicable) wishes to be considered as
project participant (Yes/No)
Guatemala (Host) Extractora del Atlantico, S.A. NO

A.4. Technical description of the small-scale project activity:

A.4.1. Location of the small-scale project activity:


>>
A.4.1.1. Host Party(ies):
>>
Guatemala

A.4.1.2. Region/State/Province etc.:


>>
Located in the department of Izabal, North East of Guatemala

A.4.1.3. City/Town/Community etc:


>>
Km 276 road to Puerto Barrios, Champona village, Municipality of Morales.
Access from the Atlantic highway, direction Puerto Barrios. At km 276, turn right and follow for ~1.5
km. After the railway crossing, turn left to access to the farm.

A.4.1.4. Details of physical location, including information allowing the


unique identification of this small-scale project activity :
>>
The Farm is located at: N15 34.88, W088 33.89

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A.4.2. Type and category(ies) and technology/measure of the small-scale project activity:
>>
The project activity combines three components:

Component Type Category


1 III (Other project activities) III.H: Methane recovery in wastewater treatment3
Hereafter referred as AMS-III.H.
2 I (Renewable energy project) I.A: Electricity generation by the user 4
Hereafter referred as AMS-I.A.
3 I (Renewable energy project) I.D: Grid connected renewable electricity generation 5
Hereafter referred as AMS-I.D.

Technology description

The project activity consists of capturing the biogas emissions from three (3) anaerobic lagoons by
covering them with an impermeable membrane. The bank to bank cover spans completely the lagoon
surface with a fabricated floating membrane which is secured on the banks by burying the edges in
perimeter trenches. This system creates a completely anaerobic environment and ensures the capture of all
off-gases produced during the process. The biogas captured is piped to a gas conditioning unit to
eliminate the impurities (mainly sulfides H2S removal) and to control its pressure, moisture and
temperature. Detailed drawings of lagoons, covers and piping system are available below.

List of equipment used in the project activity are:

1. Geo-membranes Characteristics: PVC material coated with anti-UV and


chemical resistant layers, reinforced by HD polyester to
achieve high strength resistance. The membrane is delivered
in roll and assembled onsite by welding. Transport to the site
is done 40 foot containers. The assembly of the lagoon will
be completed by a leak test.
2. Characteristics of lagoons Lagoon 1 Lagoon 2 Lagoon 3
(baseline)
Length (m) 68 68 65
Width (m) 28 28 34
Depth (m) 4 4 4
Hydraulic Retention Time (days) >30 >30 >30
3. Biogas engines 540 kW 540 kW 540 kW
4. Biogas Cleaner6 - Container size : 40 High Cube container with H x W x L:

3
Indicative simplified baseline and monitoring methodologies for selected small-scale CDM project activity
categories. Type III-Other project activities: III.H/Version 4/Scope 13 / 23 December 2006
4
Indicative simplified baseline and monitoring methodologies for selected small-scale CDM project activity
categories. Type I-Renewable energy projects: I.A./Version 9/Scope 1/ 23 December 2006
5
Indicative simplified baseline and monitoring methodologies for selected small-scale CDM project activity
categories. Type I-Renewable energy projects: I.D/Version 10/Scope 1/23 December 2006

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2,9m x 2,4m x 12m


- Capacity : 330 / 500 Nm/h
5. Flare description7 Max Biogas flow: 1000 Nm3/h
Biogas pressure: 100 mbar
Ambient temperature: -15 to +40
Methane content : > 50 % (wet basis)
Biogas temperature : 20 40 degrees Celsius
Flare efficiency : > 99 %
6. Anaerobic Digestor (optional) The anaerobic digestor is introduced as an option for the 2nd
and 3rd lagoons instead of covering it by using geo-
membrane to enhance main anaerobic activity. The COD of
treated water will be equal or lower than with the existing
lagoons, resulting in lower project emissions. The electricity
consumption for the digestor equipments will be produced
by the biogas GENSET therefore no additional project
emissions are generated.

Estimated biogas composition:

Biogas composition (dry)8 Value


Methane 55 %
CO2 43 %
Others 2%
H2S >2,000 ppm
Moisture (saturated) 7%

The biogas will be combusted in three (3) biogas engines specially designed for this application (GE
Jenbacher). The project activity will be implemented in phases corresponding to the covering of each of
the three existing lagoons or by using an anaerobic digestor system for the third lagoon only.

Phase Start Covering of Production of electricity Utilization of Flaring of


Date lagoon in new gas GENSET energy excess
Biogas if any
1 End 1 540 KW For the user
2007
2 Earliest 2 +540 KW Export to the grid
2009
3 Earliest 3 +540 KW Export to the grid
2011

6
See details specification in Annex 4
7
See Annex 4 for details
8
Suppliers Data

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A.4.3 Estimated amount of emission reductions over the chosen crediting period:
>>
Years Annual estimation of emission reductions in tones of
CO2e
2008 (year 1) 13,084
2009 (year 2) 24,736
2010 (year 3) 24,341
2011 (year 4) 35,879
2012 (year 5) 38,194
2013 (year 6) 37,971
2014 (year 7) 38,126
Total estimated reductions 212,332
(tones of CO2e)
Total number of crediting years 7
Annual average over the crediting period 30,333
of estimated reductions (tones of CO2e)

A.4.4. Public funding of the small-scale project activity:


>>
The project will not receive public funding from Parties included in Annex I to the Convention.

A.4.5. Confirmation that the small-scale project activity is not a debundled component of a
large scale project activity:

Based on the criteria set to determine the occurrence of debundling 9, we confirm that the project activity
is not a debundled component of a large project activity as the project participants did not register or
applied for another small-scale CDM project activity:
- With the same project participants
- In the same project category and technology/measure; and
- Registered within the previous 2 years; and
- Whose project boundary is within 1 km of the project boundary of the proposed small-scale
activity at the closest point.

9
Appendix C of the Simplified Modalities & Procedures for Small-Scale CDM project activities Determining
the occurrence of debundling

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SECTION B. Application of a baseline and monitoring methodology

B.1. Title and reference of the approved baseline and monitoring methodology applied to the
small-scale project activity:
>>
Component Title Reference
1 Methane recovery in wastewater treatment AMS-III.H
2 Electricity generation by the user AMS-I.A
3 Grid connected renewable electricity generation AMS-I.D

B.2 Justification of the choice of the project category:


>>
The table here below review for each component of the project activity the limits set for eligibility as
small scale CDM projects.

Compon Criteria to qualify as SSC Project activity Reference


ent
1 (i) This category comprises measures that The project activity consists of AMS-
recover methane from biogenic organic covering all three anaerobic III.H,
matter in waste wastewaters by means of lagoons or using anaerobic point 1
introduction of methane recovery and digestors for the 2nd and/or 3rd (iv)
combustion to an existing anaerobic waste lagoon in stead of covering, to
water treatment system such as anaerobic recover the biogas for
lagoon on an industrial plant . combustion.
(ii) Annual emissions reductions lower (ii) The emission reductions AMS-
than 60,000 tCO2e/year remain below 60,000 tCO2e III.H,
throughout the crediting period point 3
(see emission reductions in
B.6.3 and B.6.4)
2 (i) No connection to the grid10 (i) The nearest grid is 3 km AMS-I.A,
Connection to the grid will be effective in away from the plant point 1
the future for phases 2 & 3.
(ii) Capacity of new generators < 15 (ii) 1 x 540 kWe installed AMS-I.A,
MWe (phase 1) point 1
3 (i) Displace electricity from the grid that (i) >48% of installed capacity AMS-I.D,
would have been supplied by at least one is fossil fuel based 11 point 1
fossil fuel fired generating plant
(ii) Capacity of new generators < 15 (ii) 2 x 540 kWe installed in AMS-I.D,
MWe12 phases 2 and 3 point 2

10
A connection is foreseen in the future (from phase 2) in which case the production of renewable units 2 &
3 will be exclusively for export to the grid
11
Mercado Mayorista de Electricidad de Guatemala, informe estadistico 2005, tendencias e indicadores
generacin por tipo de combustible, see page 14

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Each component of the project activity complies with their limits therefore the project activity is eligible
as small scale and will remain as such during the entire crediting period.

B.3. Description of the project boundary:


>>
The project boundary is the physical, geographical site where:

Component Boundary description Project activity


1: III.H. The wastewater treatment takes place13 The anaerobic lagoons are
located within the site of the
mill
2: I.A. The renewable energy generating unit and the The GENSETS will be
equipment that uses the electricity produced installed in a new building
delineates the project boundary14 nearby the Palm Oil Mill
3: I.D. The project boundary encompasses the physical, Palm Oil Mill + Grid
geographical site of the renewable generation
source15

12
Indicative simplified baseline and monitoring methodologies for selected small-scale CDM project activity
categories. Type I-Renewable energy projects: I.D/Version 9/Scope 1/28 July 2006, see points 1 to 5
13
AMS-III.H., Point 4
14
AMS-I.A., Point 6
15
AMS-I.D., Point 6

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B.4. Description of baseline and its development:

>>
Component 1: Methane recovery in wastewater treatment

The baseline scenario is the existing anaerobic wastewater without methane recovery and combustion
units 16. The lagoons are open type, with a depth of at least 4 m and a residence time of at least 30 days.
The temperature of the effluent is above 25C throughout the year. The methane is released into the
atmosphere in an uncontrolled manner.

Key data for the baseline Value Units Source


3
POME/FFB Ratio 1.1 m POME/ton FFB Plant historical data
128,000 to 3
Qy,ww m Plant historical data
245,000
CODy,ww, untreated 47,000 mg/l Plant historical data (lab reports)
Table III.H, low value (anaerobic
MCFww,treatment 0.8 -
deep lagoons deeper than 2m) 17

The baseline emission scenario consists of the methane generation potential of the wastewater treatment
plant18

BEy1= (MEPy,ww,treatment + MEPy,s,treatment) * GWP_CH4

Where: BEy1 = Baseline emissions in the year y(tones CO2e)


MEPy,ww,treatment = Methane emission potential of the wastewater plant in the year y (tones)
MEPy,s,treatment = Methane emission potential of the sludge treatment system in the year y.
GWPCH4 = Global warming potential for methane

And MEPy,ww,treatment= Qy,ww * CODy,ww,untreated * Bo,ww * MCFww,treatment (Equation 1)

Where: Qy,ww = Volume of wastewater in the year y (m3)


CODy,ww,untreated = Chemical oxygen demand of the untreated wastewater in the year y
(tones/m3)
Bo,ww = Methane generation capacity of the treated wastewater (0.21 kgCH4/kg COD)
MCFww,treatment = Methane correction factor for the wastewater treatment plant
(MCF lower values in table III.H)

And: MEPy,s,untreated = S y,untreated * DOC y,s,untreated * DOCF * F * 16/12 * MCFy,s,treatment

Where: S y,untreated = Amount of untreated sludge generated in the year y (tones)


DOC y,s,untreated = Degradable organic content of the untreated sludge generated in the year y

16
AMS-III.H, Point 6 (iv)
17
AMS-III.H, Point 7 (b), MCF lower value applies
18
AMS-III.H, Point 7 (b)

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(mass fraction)
DOCF = Fraction of DOC dissimilated to biogas
F = Fraction of CH4 in biogas
MCFy,s,treatment = Methane correction factor for the sludge treatment plant

Note: In the project activity, the sludge is not considered as the characteristics and amount of sludge
generated in the baseline will not vary with the project activity MEPy,s,treatment = 0 (Equation 1a)

Hence: BEy1= MEPy,ww,treatment * GWP_CH4 (Equation 2)

Component 2: Electricity generation by the user

The baseline scenario is the production of electricity from two (2) existing diesel generators located on-
site that have a combined capacity of 770 kW. All the production of electricity is used on-site by the user
(within the mill) mainly for the start up of the milling process and for auxiliary buildings.

Characteristics of existing diesel GENSET GENSET 1 GENSET 2


Brand Caterpillar Caterpillar
Model 3306 3412
Power 225 kW 545 kW
Voltage / Freq. 480 V, 60Hz 480 V, 60Hz
Year of manufacturing 2002 2002

The energy baseline is the fuel consumption of diesel generators in use or that would have been used in
the absence of the project activity.

Energy baseline formula (option 2): EB,2= i Oi / (1-l) 19


Where: EB,2= annual energy baseline in KWh per year
i = the sum over the group i" renewable energy technologies implemented as part of the project
Oi = the estimated annual output of the renewable energy technologies of the group i" renewable
energy technologies installed (in KWh per year).
l = average technical distribution losses that would have been observed in diesel powered mini-
grids installed by public programmes or distribution companies in isolated areas, expressed
as a fraction

Electrical users installed at the site


Users Description Installed capacity (kW)
1 Kernel oil extraction 220
2 Kitchen 35
3 Refinery 120
4 Mill (startup) 35
5 Offices & Lab & Weighbridge 25
6 Workshops 50
7 Sludge dryer 25
8 By-pass fat 25
9 Bio-diesel plant 80

19
AMS-I.A., Point 7 (b), Option 2

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TOTAL 615

The emission baseline is the energy baseline time the CO2 emission coefficient for diesel oil.

BEy,2 = EB,2 (kWh/year) * EFy,2 (kg CO2e/kWh) (Equation 3)

Where: EFy,2 = 0.8 kg CO2e/kWh20


EB,2 = the annual energy baseline (kWh/year) as detailed in Appendix 1

Component 3: Grid connected renewable electricity generation

The baseline scenario21 is the production of electricity from the existing current power generators in
Guatemala that comprises bunker oil, coal, diesel, geothermal, hydroelectric and biomass sources of
energy. The methane emissions from the waste water treatment plant are eligible under type III.H.

The emission baseline22 is therefore the kWh produced by the renewable generating units multiplied by an
emission factor (kg CO2e/kWh) of the grid in Guatemala calculated as the weighted average of the
operating margin (OM) and the build margin (BM) according to the procedures prescribed in the
approved methodology ACM0002.

BEy,3 = EB,3 (kWh/year) * EFy,3 (kg CO2e/kWh) (Equation 4)

Where: EB,3 = the annual energy baseline (kWh/year) as detailed in Appendix 1


EFy,3= the baseline emission factor calculated as a combined margin (CM), consisting of
the operating margin (OM) and build margin (BM) factors. The data must be
from official sources (where available) and made publicly available (see details in
annex 3).

Hence the total baseline emissions are: BEy = BEy,1 + BEy,2 + BEy,3 (Equation 5)

The final draft of this baseline was completed on 11/09/2007 by:


Mr Michel Buron
KYOTOenergy Pte. Ltd.
80 Raffles Place, UOB Plaza 1, Level 36-01, Singapore 048624
Tel.: +65 6248 4728, Fax: +65 6248 4531
e-mail: michel.buron@kyotoenergy.net

KYOTOenergy provides carbon advisory services for CDM projects and is not a project participant listed
in Annex 1.

20
AMS-I.A.: point 9
21
AMS-1.D: point 7
22
AMS-I.D: point 9

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B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below
those that would have occurred in the absence of the registered small-scale CDM project activity:

The emissions of GHG by sources are reduced below those that would have occurred in the absence of
the registered CDM project activity. The project activity is additional and would have not occurred
otherwise due to the following barriers23:

1) Investment:
In the context of meeting the discharge limits, there is no incentive to implement the project
activity. They are no discharge limits applicable for the palm oil industry in Guatemala and the
limits achieved today in the baseline scenario are suitable for irrigation (voluntary basis).
Additionally the present diesel electricity generators are properly operating and sufficient to cope
with the demand. The sole revenue generated by the project will come from the electricity
produced by the gas engines. However the internal electricity needs at the mill are limited,
therefore exporting to the grid is proposed in the second and third phases of the project.

The project activity requires the covering of three lagoons, ancillary equipment for the piping and
cleaning of the biogas and the acquisition of three gas engines for the production of electricity
(Biogas GENSETs) which represent a total investment of 2.1 million US$ (as per 2006).

IRR analysis:
The Internal Rate of Return over the crediting period (7 years) has been calculated for unit values
of CER varying from 0 (no CDM income) to 12 US$/tCO2e. The project is unprofitable without
CDM revenues with a IRR=1.3% which is much below the average interest rate in Guatemala
which is 7.1% (2006 data) 24. The project becomes profitable with a unit price of CER> 4US$
which is very likely as the project proponent will sell the credits after registration of the project.
The sensitivity analysis here below shows the impact of CDM on the financial viability of the
project. The income from emission reductions is the most important factor influencing the return
of the project.

23
According to the Attachment A to Appendix B of the simplified modalities and procedures for small-scale
CDM project.
24
See Public Information provided by the International Monetary Fund at
http://www.imf.org/external/np/sec/pn/2007/pn0741.htm

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Project IRR

25

22.3
20 19.4

16.3
15
IRR (%)

11.3
10

1.3
0
0 5 8 10 12
CER unit value (US$/tCO2)

The details of the IRR calculation are provided in Appendix 1.

2) Technology barrier: the project activity is the first of its kind in the country. There is a lack of
skilled staff to operate and maintain the plant, especially biogas gensets. Training will be planned
and supervised by the equipment suppliers and includes sending key personnel overseas for on-
site training.

3) Prevailing practice: in the palm oil industry in Guatemala, the use of anaerobic ponds without
biogas recovery is the common practice to treat effluent and do not require any additional
investment. In a majority of cases, palm oil mills are not connected to an electricity grid. The use
of diesel generators to produce electricity when the mill is not in operation is the common
practice.
In the business as usual, the mill is not connected to the national grid and currently relies on 2
diesel generators for the production of electricity. They are in good operating conditions and
properly maintained. From a technical point of view, the present generators meet the
requirements of the mill in terms of power, availability and flexibility of use. Therefore
continuation of the existing practice is the most economical solution.

4) Other barriers: National Policies


Presently, no Government policies or legislations are in place to govern the capture of biogas
emissions in the palm oil industry. The consequence is the uncontrolled released of large
quantities of GHG gases into the atmosphere.

Without CDM revenues, the project activity is unprofitable and would not be implemented.

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B.6. Emission reductions:

B.6.1. Explanation of methodological choices:


>>
Component 1: Methane recovery in wastewater treatment

The ex-ante emission reductions for the methane recovery are calculated as per AMS-III.H according to
the scenario (iv) that applies to the project activity.
In order to maximise the biogas production, POME will be distributed to each lagoon in order to
maximise its loading. Lagoon 1 will be the first to be covered and will be loaded to its maximum
capacity. When maximum capacity is achieved, POME will be diverted to the second lagoon that will be
covered in phase 2. When the second lagoons capacity is reached, POME will be sent to lagoon 3 that
will be covered in phase 3. In this way, biogas recovery will be optimized (compare to even distribution
of POME to the three lagoons).

The ex-post emission reductions are calculated from the amount of methane recovered and fuelled in the
biogas engines or flared in the enclosed type flare. The use of a default efficiency of 90% has been
selected for the calculation of the flare project emissions (option a).

Component 2: Electricity generation by the user

During the first phase of the project activity, there will be no grid connection. The electricity generated by
the first biogas engine will be used on-site only, no export to the grid. The next phases 2 & 3 will
involved the connection of the project activity to the grid in order to export the entire electricity
production from biogas engines 2 & 3. The connection to the grid implies that no more carbon credits can
be claimed for the internal use as the applicability of AMS-I.A is limited to users without a grid
connection.
The energy baseline is based on the maximum capacity of biogas engine 1 (540 KWh/h) as it is lower
than the present consumption of the existing users.

Component 3: Grid connected renewable electricity generation

At the start of the crediting date, no grid connection is available at the project activity site. The
connection to the grid will be done during the implementation of the second phase of the project.

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B.6.2. Data and parameters that are available at validation:

Data / Parameter: GWP_CH4


Data unit: ton CO2/t CH4
Description: Global Warming Potential
Source of data used: IPCC
Value applied: 21
Justification of the Default value
choice of data or
description of
measurement methods
and procedures actually
applied :
Any comment:

Data / Parameter: l
Data unit:
Description: Average technical distribution losses
Source of data used:
Value applied: 0
Justification of the Conservative value used for ex-ante evaluation
choice of data or
description of
measurement methods
and procedures actually
applied :
Any comment: 20% is a reasonable value for low voltage rural grid and will be used for post
calculation (as per AMS-I.A, footnote 4)

Data / Parameter: EFy,2


Data unit: kg CO2e/kWh
Description: Emission factor for diesel generator systems
Source of data used: SSC-AMS-I.A, point 9 and table I.D.1
Value applied: 0.8
Justification of the The 2 existing GENSET have a capacity of 225 KW and 545 KW therefore we
choice of data or use the default value of small diesel generator >200 kW
description of
measurement methods
and procedures actually
applied :
Any comment:

Data / Parameter: EFy,Power


Data unit: kg CO2e/kWh
Description: Emission factor for diesel generator systems that will supply the biogas plant
with electricity
Source of data used: Table I.D.1

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Value applied: 1
Justification of the A Small diesel generator of 45 KW with load factor > 50% will be installed for
choice of data or the electricity needs of the biogas plant when the biogas GENSET are not
description of operational
measurement methods
and procedures actually
applied :
Any comment:

Data / Parameter: EFy,3


Data unit: kg CO2e/kWh
Description: Emission factor for the grid in Guatemala
Source of data used: AMM (Mercado Mayorista de Electricidad de Guatemala): years 2004-2006
Value applied: 0.637
Justification of the The grid emission factor is calculated according to ACM0002
choice of data or The simple OM method (a) is used because the low-cost/must run resources
description of constitute less than 50% of the total grid generation. Details in Annex 3
measurement methods
and procedures actually
applied :
Any comment:

Data / Parameter: hflare


Data unit: -
Description: Flare efficiency
Source of data used: AMS-III.H, point 12 a
Value applied: 0.9
Justification of the Default value for enclosed type flare
choice of data or
description of
measurement methods
and procedures actually
applied :
Any comment: Default values for enclosed flare:25
0% if the temperature in the exhaust gas of the flare (Tflare) is below 500
C for more than 20 minutes during the hour h .
50%, if the temperature in the exhaust gas of the flare (Tflare) is above 500
C for more than 40 minutes during the hour h, but the manufacturers
specifications on proper operation of the flare are not met at any point in
time during the hour h.
90%, if the temperature in the exhaust gas of the flare (Tflare) is above 500
C for more than 40 minutes during the hour h and the manufacturers
specifications on proper operation of the flare are met continuously during
the hour h.

25
Step 6, EB28, Meeting report, Annex 13

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Data / Parameter: Bo,ww


Data unit: kg CH4/kg COD
Description: Methane generation capacity of the treated wastewater
Source of data used: AMS-III.H, point 5, page 2
Value applied: 0.21 (conservative)
Justification of the See IPCC2006, Volume 5, chapter 6 Wastewater, see 6.2.3 Industrial water,
choice of data or point 6.2.3.2 Choice of emission factors: if no country specific data are
description of available, it is good practice to use the IPCC COD default factor for Bo (0.25 kg
measurement methods CH4/COD)
and procedures actually
applied :
Any comment:

Data / Parameter: MCFww,treatment (low value)


Data unit: N/A
Description: Methane conversion factor for the anaerobic decay of the untreated wastewater
Source of data used: Table III.H
Value applied: 0.8
Justification of the The lagoons depth are > 4 m deep anaerobic lagoons (> 2m)
choice of data or
description of
measurement methods
and procedures actually
applied :
Any comment:

Data / Parameter: MCFww,treatment (high value)


Data unit: N/A
Description: Methane conversion factor for the anaerobic decay of the untreated wastewater
Source of data used: Table III.H
Value applied: 1
Justification of the The lagoons depth are > 4m deep anaerobic lagoons (> 2m)
choice of data or
description of
measurement methods
and procedures actually
applied :
Any comment:

Data / Parameter: CFEww


Data unit: N/A
Description: Capture and flare efficiency of the methane recovery and combustion equipment
in the wastewater treatment
Source of data used: AMS-III.H, point 5, page 4
Value applied: 0.9
Justification of the No other appropriate data is available therefore 0.9 is taken as default value
choice of data or
description of

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measurement methods
and procedures actually
applied :
Any comment:

Data / Parameter: F
Data unit: N/A
Description: Fraction of CH4 in biogas
Source of data used: AMS-III.H, point 5, page 3
Value applied: 0.5
Justification of the IPCC2006 default value
choice of data or
description of
measurement methods
and procedures actually
applied :
Any comment:

Data / Parameter: CH4


Data unit: Kg/m3
Description: Density of methane gas at normal conditions
Source of data used: EB28, Meeting report, Annex 13
Value applied: 0.716
Justification of the Default Value
choice of data or
description of
measurement methods
and procedures actually
applied :
Any comment:

B.6.3 Ex-ante calculation of emission reductions:


>>
A. Ex-ante formulae related to the baseline:

Component 1:

BEy1 = MEPy,ww,treatment * GWP_CH4

Component 2:

BEy,2 = EB,2 (kWh/year) * EFy,2 (kg CO2e/kWh)

Component 3:

BEy,3 = EB,3 (kWh/year) * EFy,3 (kg CO2e/kWh)

Hence the total baseline emissions are: BEy = BEy,1 + BEy,2 + BEy,3

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(see details in section B.4)

B. Ex-ante formulae related to the project activity direct emissions:

Component 1: Methane recovery in wastewater treatment

PEy,1= PEy,power + PEy,ww, treated + PEy,s,final + PEy,fugitive + PEy,dissolved


Where:
PEy,1= Project activity emissions in the year y(tones CO2e) for project activity component 1
PEy,power = Emissions through electricity or diesel consumption in the year y.
PEy,ww, treated = Emissions though degradable organic carbon in treated wastewater in the year y
PEy,s,final = Emissions through anaerobic decay of the final sludge produced in the year y.
PEy,fugitive = Emissions through methane release in capture and flare systems in the year y
PEy,dissolved = Emissions through dissolved methane in treated wastewater in the year y

Taken into consideration the project characteristics (sludge and effluent characteristics remain unchanged
compared to the baseline):

PEy,s,final = 0; the characteristics of sludge are the same in the project activity as in the baseline
where the sludge is used for soil application: there is no sludge generated in the project activity.
Therefore this term is negligible. (Equation 6a)
PEy,ww,treated= 0: Because the characteristics of degradable organic content in the treated
wastewater (after the anaerobic lagoons) are the same than in the baseline. The project activity
relates to the anaerobic lagoons, leaving the aerobic lagoons outside the project boundaries.
(Equation 6b)
PEy,dissolved= 0: Because the characteristics of sludge are the same in the project activity than in
the baseline (Equation 6c)

And: PEy,power = EB,Power (kWh/year) * EFy,Power (kg CO2e/kWh) (Equation 6)

Where: EB,Power= annual KWh consumed by the project activity


EFy,Power = 1.0 (kg CO2e/kWh) (small diesel generator of 53 KW with load factor > 50%)

And: PEy,fugitive= PEy,fugitive,ww+ PEy,fugitive,s (Equation 7)

Where:
PEy,fugitive,ww,= Fugitive emissions through capture and flare inefficiencies in the anaerobic
wastewater treatment in the year y
PEy,fugitive,s= Fugitive emissions though capture and flare inefficiencies in the anaerobic sludge
treatment in the year y. The characteristics of sludge are the same in the project activity as in
the baseline where the sludge is used for soil application: there is no sludge generated in the
project activity.
Therefore this term is negligible PEy,fugitive,s = 0; (Equation 7b)

And: PEy,fugitive,ww = (1-CFEww) * MEy,ww,treatment* GWH_CH4 (Equation 7c)

Where:

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CFEww = Capture and flare efficiency of the methane recovery and combustion equipment in the
wastewater treatment
MEy,ww,treatment= Methane emission potential of the untreated wastewater in the year y (tones)

MEy,ww,untreated= Qy,ww * CODy,ww,untreated * Bo,ww * MCFww,treatment


(Equation 8)

Where:
Qy,ww, = Volume of wastewater in the year y (m3)
CODy,ww,untreated = Chemical oxygen demand of the untreated wastewater in the year y
(tonnes/m3)
Bo,ww = Methane generation capacity of the treated wastewater (= 0.21 kg CH4/kg. COD)
MCFww,treatment = Methane correction factor for the wastewater treatment plant system (higher
value)

Hence: PEy,1= PEy,power + PEy,fugitive ,ww (Equation 9)

Component 2: Electricity generation by the user

PEy,2 = 0: Project activity emissions in the year y(tons CO2e) for project activity component 2.
The electricity is produced by combustion of biogas, a renewable source of energy
which is considered carbon neutral that does not result in GHGs emissions. AMS-I.A
does not mention at all the project emissions which are negligible
(Equation 10)
Component 3: Grid connected renewable electricity generation

PEy,3 = 0: Project activity emissions in the year y(tons CO2e) for project activity component 3.
The electricity is produced by combustion of biogas, a renewable source of energy
which is considered carbon neutral that does not result in GHGs emissions. AMS-I.D
does not mention at all the project emissions which are negligible (Equation 11)
Hence the total project emissions are:

PEy,= PEy,power + PEy,fugitive ,ww (Equation 12)

C. Formulae related to leakage

Component Leakage formulae Comments


Component 1: III.H. No leakage calculation required 26 The equipment used for the methane
recovery is new and therefore not
transferred from another activity.
Component 2: I.A. No leakage calculation required27 The energy generation is new and
therefore not transferred from another
activity.
Component 3: I.D No leakage calculation required28 The energy generation is new and

26
AMS-III.H., Point 8
27
AMS-I.A., Point 10

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therefore not transferred from another


activity.

Hence: LEy = 0 (Equation 13)

The ex-ante calculation details are given in Annex 3

B.6.4 Summary of the ex-ante estimation of emission reductions:


>>
Estimation of
Estimation of Estimation of Cumulated
Estimation overall
project activity baseline Emission
YEAR of leakage emission
emissions emissions Reductions
(tCO2e) reductions
(tCO2e) (tCO2e) (tCO2e)
(tCO2e)
2008 1,898 14,982 0 13,084 13,084
2009 3,613 28,349 0 24,736 37,820
2010 3,556 27,898 0 24,341 62,161
2011 5,031 40,910 0 35,879 98,040
2012 5,327 43,521 0 38,194 136,234
2013 5,298 43,270 0 37,971 174,206
2014 5,318 43,444 0 38,126 212,332
TOTAL (7
years) 212,332
Average per
year 30,333

B.7 Application of a monitoring methodology and description of the monitoring plan:

B.7.1 Data and parameters monitored:


Data / Parameter: FVFl,y
Data unit: Nm3
Description: Volumetric flow rate of biogas flared in dry basis during the year y measured
in normal conditions
Source of data to be Measurement by project participant by using a flow meter
used:
Description of The volumetric flow rate is measured by a flow meter with differential pressure
measurement methods transmitter specially designed for biogas applications with an accuracy 3%
and procedures to be Data are logged electronically and stored for up to 2 years after the end of the
applied: crediting period.
QA/QC procedures to Calibration as per manufacturers recommendations or at least every year
be applied: Maintenance will be done in strict compliance with the maintenance schedule
recommended by the supplier

28
AMS-I.D., Point 12

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Monitoring frequency Continuous. Values to be averaged hourly or at a shorter interval


Any comment:

Data / Parameter: FVelectricity,y =


Data unit: Nm3
Description: Volumetric flow rate of biogas in dry basis destroyed by generation of electricity
during the year y measured in normal conditions
Source of data to be Measurement by project participant by using a flow meter
used:
Description of The volumetric flow rate is measured by a flow meter with differential pressure
measurement methods transmitter specially designed for biogas applications with an accuracy 3%
and procedures to be Data are logged electronically and stored for up to 2 years after the end of the
applied: crediting period.
QA/QC procedures to Calibration as per manufacturers recommendations or at least every year
be applied: Maintenance will be done in strict compliance with the maintenance schedule
recommended by the supplier
Monitoring frequency Continuous. Values to be averaged hourly or at a shorter interval
Any comment:

Data / Parameter: fvCH4,RG


Data unit: m3 CH4/ m3 biogas
Description: Average volumetric fraction of methane in the biogas corrected on dry basis
Source of data to be Measurement by project participant by using a periodical gas analyser at a 95%
used: confidence level or continuously
Description of The volumetric fraction of methane is measure with a gas analyzer with an
measurement methods accuracy 2%.
and procedures to be Data are logged electronically and stored for up to 2 years after the end of the
applied: crediting period.
QA/QC procedures to Calibration as per manufacturers recommendations or at least every year
be applied: A zero check and a typical value check should be performed by comparison with
a standard certified gas.
Maintenance will be done in strict compliance with the maintenance schedule
recommended by the supplier
Monitoring frequency Hourly
Any comment:

Data / Parameter: EGy,i


Data unit: KWhe
Description: The yearly electricity generation of the renewable generation unit i' for the year
y
Source of data to be Measurement by project participant by using a energy meter (KWh)
used:
Description of The electricity production is measured continuously with an accuracy 2%.
measurement methods Data are logged and stored for up to 2 years after the end of the crediting period
and procedures to be
applied:
QA/QC procedures to Calibration as per manufacturers recommendations or at least every year
be applied: Maintenance will be done in strict compliance with the maintenance schedule

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recommended by the supplier


Monitoring frequency Continuous, aggregated monthly

Data / Parameter: EBpower,y


Data unit: KWhe
Description: The yearly electricity consumption of the project activity for the year y
Source of data to be Measurement by project participant by using a energy meter (KWh)
used:
Description of The electricity production is measured continuously with an accuracy 2%.
measurement methods Data are logged and stored for up to 2 years after the end of the crediting period
and procedures to be
applied:
QA/QC procedures to Calibration as per manufacturers recommendations or at least every year
be applied: Maintenance will be done in strict compliance with the maintenance schedule
recommended by the supplier
Monitoring frequency Continuously, aggregated monthly
Any comment:

Data / Parameter: Tflare


Data unit: C
Description: Temperature in the exhaust of the flare
Source of data to be Measurement by project participant by using a thermocouple
used:
Value of data >500 C
Description of Measure the temperature of the exhaust gas stream in the flare by a thermocouple
measurement methods type N
and procedures to be Data are logged electronically and stored for up to 2 years after the end of the
applied: crediting period
QA/QC procedures to Calibration as per manufacturers recommendations or at least every year
be applied: Maintenance will be done in strict compliance with the maintenance schedule
recommended by the supplier
Monitoring frequency Continuously
Any comment: A temperature above 500 C indicates that the flare is operating with an
efficiency of 90%

Data / Parameter: Tbiogas


Data unit: C
Description: Temperature of biogas
Source of data to be Measurement by project participant by using a thermocouple
used:
Description of Measure the temperature of the biogas by a thermocouple type N with build-in
measurement methods transmitter.
and procedures to be Data are logged electronically and stored for up to 2 years after the end of the
applied: crediting period
QA/QC procedures to Calibration as per manufacturers recommendations or at least every year
be applied: Maintenance will be done in strict compliance with the maintenance schedule
recommended by the supplier
Monitoring frequency Continuously

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Any comment:

Data / Parameter: Pbiogas


Data unit: Barg
Description: Pressure of biogas
Source of data to be Measurement by project participant by using a pressure gauge
used:
Description of SS Pressure transmitter with display to measure the pressure in the biogas
measurement methods system.
and procedures to be Data are logged electronically and stored for up to 2 years after the end of the
applied: crediting period
QA/QC procedures to Calibration as per manufacturers recommendations or at least every year
be applied: Maintenance will be done in strict compliance with the maintenance schedule
recommended by the supplier
Monitoring frequency Continuously
Any comment: This signal will be used by an indicating controller installed in the control panel
to control the position of the shut off valve so that the gas pressure in the biogas
system stays at a constant value.

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The ex-post emission reductions will be calculated as per the following formulae:

Component 1: Methane recovery in wastewater treatment plant

ERy,1= TMproject, y * GWP_CH4 PEy,

The methane destroyed by the project activity TMproject, y (tonnes CH4) during a year is determined by
monitoring the quantity of methane effectively flared or combusted in the electricity generation units:

Hence: TM RG , h = ( FV
h
FL , h + FVelectricity ,h ) fvCH 4,h CH 4

Where:
FVFl,y = volumetric flow rate of biogas flared during the year y measured in (Nm3,dry
basis)
FVelectricity,y = volumetric flow rate of biogas destroyed by generation of electricity during the
year y measured in (Nm3,dry basis)
fvCH4,h = average volumetric fraction of methane fraction of the biogas on dry basis (m3
3
CH4/ m biogas)
CH4 = methane density (kg CH4/ Nm3 CH4) = 0.716

And: PEy,= PEy,power + PEy,fugitive ,ww = PEy,power + PEflare,y


= (EB,power x EFy,power)+ PEFlare,y

GWPCH 4 (tonCO 2 / tonCH 4 )


PE flare , y (tonCO 2 / year ) = TM RG ,h (kg CH 4 / h) (1 flare )
h 1000( Kg CH 4 / tonCH 4 )

Where: PEflare,y = Project emissions from flaring of residual gas (FVFl,y) in the year y.
PEy,power = Emissions through electricity or diesel consumption in the year y.
EB,power = The annual energy baseline in kWh/y
EFy,power = 0.8 kgCO2/kWh
GWPCH4 = 21
Flare efficiency = 0.9 (Default Value)
Note: The above parameters are calculated as per the methodological tool to determine project
emissions from flaring gases containing methane29.

Component 2: Electricity generation by the user

ERy,2 = EGy,1 * EFy,2

Where: EFy,2 = 0.8 (ton CO2e/MWhe)


EGy,1 is the yearly electricity generation (MWh) of the renewable generation
unit 1 for the year y.

29
EB28, Meeting report, Annex 13

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Component 3: Grid connected renewable electricity generation

ERy,3 = (EGy,2 + EGy,3 ) * EFy,3

Where: EGy,2 and EGy,3 are the yearly electricity generation (MWh) of the renewable generation unit 2
and 3 for the year y
EFy,3 = emission factor for the National grid in Guatemala (ton CO2e/MWhe)

Finally the ex-post emission reductions are calculated as: ERy = ERy,1 + ERy,2 + ERy,3

B.7.2 Description of the monitoring plan:


>>

The CDM team will be composed by staff of the project owner: operator, supervisor and plant manager;
and an external CDM consultant.

Plant manager

CDM consultant Laboratory

Supervisor

Operators

The monitoring plan will be implemented according to a quality assurance and quality control based on
the recommendations of IPCC Good Practice Guidance and Uncertainty Management in National Green
House Gas Inventories, Chapter 8: Quality Assurance and Quality Control and ISO 14064-part 2.

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It will include but not be limited to:

Frequency Description of monitoring event


of events
Continuous Flow, pressure, temperature, yearly electric consumption and electric
generation, methane fraction will be monitored and recorded continuously at the
project site by using adequate calibrated electronic measuring devices. The data
will be both stored digitally (computer file) and on paper.
Daily The data will be check for consistency, calculation errors and transcription
errors on a daily basis and integrated in a report.
Maintenance of monitoring equipments will be performed in strict compliance
with the manufacturer requirements
Weekly A check of the data completeness will be undertaken
The results will be compared with the estimates (from the production planning)
Monthly The emission reductions calculation will be checked
The integrity of the database will be checked. A back up procedure will be
implemented.
If required, data reconstruction will be implemented
Yearly An audit will be performed at least once a year to verify the monitoring
procedures and documentations. The report will be available at least two weeks
prior the verification visit by the DOE
An emissions monitoring report will be prepared at least two weeks before the
verification visit of the DOE.

The monitoring parameters are described in the following diagram:

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CDM Management team:

The CDM team will be made of staff of the palm oil mill: the technical supervisor, plant manager and
general manager and a CDM consultant. The various monitoring tasks will be distributed as follow:

Description of tasks Technical Plant General CDM


manager Manager Manager consultant
Flow, pressure and temperature will be
monitored and recorded continuously at the
project site by using adequate calibrated
electronic flow meter. The data will be both
stored digitally (computer file) and on paper.
A check of the data completeness will be
undertaken
The data will be check for consistency,
calculation errors and transcription errors on a
daily basis and integrated in a report.
The results will be compared with the
estimates (from the production planning)
The emissions calculations will be checked
The integrity of the database will be check. A
back up procedure will be implemented. Data
reconstruction from historic if required
An external internal audit will be performed at
least once a year to verify that the monitoring
procedures and documentations are properly
implemented and identify any deficiencies or
deviations. The report will be available at least
two weeks prior the verification visit by the
DOE
An emissions monitoring report will be
prepared at least two weeks before the
verification visit of the DOE.

Data measuring, recording, verification and data reconstruction

The technical manager will be responsible for the daily readings of the meters and its registration in a log
book. They will be also responsible for any defects occurring with the measurement device and for
checking inconsistencies in the data and for the calibration/maintenance of measuring devices.

The technical manager will report to the plant manager the following information:
- Raw data
- Graph that represents the daily key parameters
- Results of the emission reductions calculation

The plant manager and general manager will be responsible for the verification of the reports that will
include:

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- The comparison with the computed expected data as per planning


- Check for inconsistencies (e.g. typing errors, decimal point errors, incorrect units, missing
data) will be analysed and commented.

The data will be kept for 2 years after the end of the crediting period.

In case of defect of monitoring equipment resulting in losses of data, historical records or recalculation
of missing parameters (if possible) will be used provided that it results in a conservative evaluation of the
emission reductions.

Instruments calibration

Calibration will occur at intervals determined on the basis of instrument manufacturers' recommendations,
stability, purpose, usage and history of repeatability. Recalibration should be performed whenever an
event occurs that places the accuracy of the instrument in doubt. Calibration will take place at least every
year.

Procedures for training and monitoring of plant operators


All new workers will be given a safety briefing at the plant on day one of reporting to work.
The new worker will undergo on job training for minimum of three months covering all
monitoring process.
The superior will assess the worker at the end of training period, to check their competency.
For any in-house/external training program, the selected workers will be notified through memo.
During the training, they are required to sign training attendance for record.
All training record shall be documented inclusive of training attendance, training memo and
training material if any.
Type of training required will be indicated from Training Need Analysis conducted yearly.
The training will cover at least the following aspects:

Biogas engines: Initial training by supplier at their factory overseas and at the
project activity site for mechanical, electrical and control aspects
of the operation and maintenance
Assistance from supplier during the commissioning
Biogas conditioning Class-room and onsite training by supplier:
General process (biological)
Daily inspection to perform
Control functions
Solving troubleshooting
Maintenance

Procedure Non-conformance treatment and corrective and preventive actions

In order to reduce the uncertainties related to the monitoring of the emissions reduction, nonconformities
arising during operation of the project activity that may effect the monitoring will be identified,
documented and analyzed. As well, preventive and corrective actions will be implemented. The
distribution of tasks within the CDM team is as follows:

Description of tasks Technical Plant General

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manager Manager Manager


Identification and registration of nonconformities Anyone Anyone Anyone
Assessment of the nonconformities validity
Report of accepted nonconformities and proposal of causes
and corrective/preventive actions
Analysis and treatment of conformities report and
recommendation of corrective/preventive action
Implementation of corrective/preventive actions
Verification and effectiveness of implementation of
corrective/preventive actions

B.8 Date of completion of the application of the baseline and monitoring methodology and the
name of the responsible person(s)/entity(ies)
>>
The final draft of this baseline was completed on 11/09/2007 by:
Mr Michel Buron
KYOTOenergy Pte. Ltd.
80 Raffles Place, UOB Plaza 1, Level 36-01, Singapore 048624
Tel.: +65 6248 4728, Fax: +65 6248 4531
e-mail: michel.buron@kyotoenergy.net
KYOTOenergy provides carbon advisory services for CDM projects and is not a project participant listed
in Annex 1.

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SECTION C. Duration of the project activity / crediting period

C.1 Duration of the project activity:

C.1.1. Starting date of the project activity:


>>
Starting date: March 2006
Engagement of carbon consultant: March 2006
Engagement of DOE: July 2006
Letter of support from Guatemala: 07 February 2007
Finalisation of project design: May 2007
Procurement of equipments: May 2007
Start of construction: August 2007
Commercial operation:
Phase 1: 1st February 2008
Phase 2: Earliest by 1st January 2009
Phase 3: Earliest by 1st January 2010

C.1.2. Expected operational lifetime of the project activity:


>>
21 years and 0 month

C.2 Choice of the crediting period and related information:

The project activity will make use of renewable crediting periods

C.2.1. Renewable crediting period

C.2.1.1. Starting date of the first crediting period:


>>
First crediting period will start on 01/03/2008 or the date of project being registered, whichever is later

C.2.1.2. Length of the first crediting period:


>>
7 years and 0 month

C.2.2. Fixed crediting period:

C.2.2.1. Starting date:


>>
N/A

C.2.2.2. Length:
>>N/A

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SECTION D. Environmental impacts


>>

D.1. If required by the host Party, documentation on the analysis of the environmental impacts
of the project activity:
>>
The Environmental Impact Assessment was performed on a voluntary basis in compliance with the
Guatemalan laws for the protection and improvement of the environment.

The National Authority of Guatemala requests the following documents:


- A copy of the general Environmental Impact Assessment (EIA) performed in 2003 for the
entire mill, along with the approval letter by the Ministry of Environment and Natural
Resources reference 198-2003 (resolution 302-2004). Both documents are available
- A declaration from Extractore that the project is in conformity with the National Policies
related to the Environment

Extractora del Atlantico performed, on a voluntary basis, a Environmental Impact Assessment which has
been submitted to the Ministry of Environment (MARN) on 11th September 2006 (reference 521-06).

The EIA confirms that the project activity is considered environmentally friendly as it will not cause
negative impacts and contributes to the reduction of GHGs.

Water supply:
Beside water needed during the construction phase, the project activity is not consuming water.

Wastewater:
The project will not generate any waste water. Domestic wastewater (if any) will be sent back to the
lagoons.

Solid residues: none

Waste gases: CO2 will be the main gas produced from the combustion of CH4 in the flare or gas engines,
reducing the overall effect of GHGs (positive impact)

Electricity consumption and other fuel sources:


The project will consume a very small amount of electricity for its operation, generated by the project
itself.

The project activity is located in an area allocated for agriculture and has been exploited by African palm
and banana plantations for the past 20 years. The project activity is not a threat to any protected areas of
fragile ecosystems. As well the project will not have any impact on the displacement of communities and
will not impact any historical, archeological or cultural sites.
Because the project is located within the boundaries of the existing farm and will consist of solely of
recovering and using the biogas generating by the existing wastewater, the surrounding communities
interviewed had no negative comments and welcome the use of renewable energy instead of diesel.

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Summary of the environmental impact:

Environmental Impact Affected Means Value of the impact


Contributes to the generation of Socio-economic, generation of Positive
employment employment.
Reduction on GHGs Atmosphere, quality of the air Positive
Improvement of the quality of life of Socio-economic, use generation. Positive
the population
Risk of explosions or fires Health and security of workers at Negative
the plant

The environmental management plan (including risks mitigation) during construction and operation is
detailed in the EIA.

D.2. If environmental impacts are considered significant by the project participants or the host
Party, please provide conclusions and all references to support documentation of an environmental
impact assessment undertaken in accordance with the procedures as required by the host Party:
>>
No negative impact on the environment.

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SECTION E. Stakeholders comments


>>
E.1. Brief description how comments by local stakeholders have been invited and compiled:
>>
Stakeholders have been invited on 24th July 2006 for a public meeting at the project site. The content was
drafted to take into account the particular situation of stakeholders (e.g. education background,
languages). Direct meetings were also organized with various other stakeholders as described in the table
here below.

Stakeholder Actions
Ministerio de Ambiente y Recursos Preliminary presentation of the project
Naturales (MARN) activity by letter on March 16th 2006
Presentation of the project activity by letter
on July 27th 2006
Submission of the project activity EIA on a
voluntary basis (September 11th 2006)
Department of Alternative energy Preliminary presentation of the project activity on
generation (Direction general of May 2nd 2006
Energy)
FONDA ECO Fundacin (see Appendix Presentation of the project activity on August 17th
1) 2006 (power point document available upon request)
The presentation presents the project and its benefits
toward the environment, reduction of fossil fuel use
and financial benefits for the association
ASOSERVICIOS (see Appendix 1) Presentation of the project activity on October 17th
and 19th 2006 (power point document available upon
request)
The presentation presents the project and its benefits
toward the environment, reduction of fossil fuel use
and financial benefits for the association.

Content of stakeholder consultation

The stakeholder consultation presented appropriate information about the project activity that includes:
The objectives and procedures of the project
Changes compared to the current situation (without the project)
The specific short to long term impacts of the project
Possible alternatives to the project
Possible positive impacts might for example include the employment created by the project and
the access to benefits created by the project.
The Impact on the Environment
The overall contribution to the sustainable criteria (e.g. employment, environment, social)

The presentation was followed by a Question / answer session where the stakeholders got the
opportunity to raise their concerns and emit their opinion. This presentation is available upon request.

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E.2. Summary of the comments received:


>>
Stakeholder Comments received
Ministerio de Ambiente y Recursos List of documents to submit for CDM application has
Naturales been handed over to the project owner
No requirements for an additional EIA other than the
existing mill. However an additional EIA on a
voluntary basis is welcome.
Department of Alternative energy No specific laws/regulations apply to the project activity. No
generation (Direction general of EIA required.
Energy)
FONDA ECO Fundacin Positive towards the project activity as it will reduce the
GHGs and provides a revenue for the workers association.
ASOSERVICIOS They support the project and welcome the commitment of the
Company to grant 1 to 2% of the CDM revenues to the
workers association.

E.3. Report on how due account was taken of any comments received:
>>

Stakeholder Actions taken


Ministerio de Ambiente y Recursos Preparation of PDD and requested documents
Naturales Project activity EIA has been done on a voluntary
basis
Department of Alternative energy Project activity EIA has been done on a voluntary basis
generation (Direction general of
Energy)
FONDA ECO Fundacin Invite the foundation to visit the project activity
ASOSERVICIOS They support the project and welcome the commitment of the
Company to grant 1 to 2% of the CDM revenues to the
workers association.

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Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY

Organization: Extractora del Atlntico, Sociedad Annima


Street/P.O.Box: N/A
Building: Va 5, 4-50, zona 4, Edificio Maya, 4to. Nivel, Oficina 409
City: Guatemala city
State/Region: N/A
Postfix/ZIP: N/A
Country: Guatemala
Telephone: (502) 2361 9575
FAX: (502) 2361-0528
E-Mail: N/A
URL: www.agrocaribe.com
Represented by:
Title: Controller
Salutation: Mr
Last Name: Santiago Morales
Middle Name: N/A
First Name: Carlos Augusto
Department: N/A
Mobile: N/A
Direct FAX: N/A
Direct tel: N/A
Personal E-Mail: csantiago@agrocaribe.com

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Annex 2

INFORMATION REGARDING PUBLIC FUNDING

No public funding is provided for the project.

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Annex 3

BASELINE INFORMATION

Baseline emission factor for the grid: EFy,3

The baseline emission factor (EFy,3) is calculated as a combined margin (CM), consisting of the simple
operating margin (OM) and build margin (BM) factors.
The data have been obtained from AMM 30for the last three years available: 2004-2006.

STEP 1: Calculate the Operating Margin emission factor (EFOM,y)

The low operating cost and must run plants capacity represents 49% (less than 50%) of the total grid
resources in average of the five most recent years therefore Simple OM method has been selected31.

i,j Fi,j,y * COEFi,j


EFOM,y = _______________
GENj,y
Where:
Fi,j,y is the amount of fuel i consumed by relevant power sources j in the year(s) y,
j refers to the power sources delivering the electricity to the grid, not including low-operating
and must-run plants
COEFi,j is CO2 emission coefficient of the fuel i (tCO2/kg), taking into account the carbon
content of the fuels used by relevant power sources j and the percent of oxidation of the fuel
in year(s) y, and
GENj,y is the electricity (MWh) delivered to the grid by source j

Notes:
- In Guatemala, during the harvest season from November to May, the cogenerators use 70%
bagasse and 30% bunker fuel (Fuel Oil No 6). Outside of the harvest season, they use only
bunker oil.
- During the harvest season, cogenerators operates as low-cost/must-run plants
- Low-cost/must run plants in Guatemala consist of geothermal, hydro and cogenerators during
the harvest season

The CO2 emission coefficient COEFi is obtained as

COEFi= NCVi * EFCO2 * OXIDi

Where:

30
Mercado Mayorista de Electricidad de Guatemala: www.amm.org.gt. Depacho de carga ejecutado del sistema
internconectado An 2004, 2005, 2006
31
ACM0002/Version 06, Sectoral scope 1, 3 September 2004: see page 4

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NCVi is the net calorific value (energy content) per mass unit of a fuel i
EFCO2 is the CO2 emission factor per unit of energy of the fuel i
OXIDi is the oxidation factor of the fuel

The following (default) values have been used:

COEFi,j,y32 NCVi33 OXIDi34 Density


Fuel type (tCO2/TJ) (TJ/ton fuel) (kg/l)
Coal 98.3 0.0267 0.98 N/A
Bunker C fuel 77.4 0.0404 0.99 0.99
Diesel oil 74.1 0.043 0.99 0.827
Orimulsion 77 0.0275 0.99 -

The amount of fuel (Fi,j,y ) consumed by the relevant power sources of the interconnected national system
(SNI) in Guatemala is calculated from the plant efficiency which are kept confidential by the generators.
No information about reference values was made available by AMM or other sources on the amount of
fuel consumed or plant efficiency. As an alternative solution to calculate the baseline, we propose to use
conservative estimates35 of power plant efficiency obtained from other project participants that registered
their project with the CDM-EB.

The following average values have been obtained from CDM project references: 172, 174, 604 and 606:

Type of technology Fuel consumption Per GWh produced Overall efficiency


Efficiency steam turbine 11.34 TJ/GWh 31.5%
Efficiency gas turbine 13.31 TJ/GWh 37.0%
Efficiency combustion engine 9.198 TJ/GWh 25.6%
Cogenerators (harvest season) 2.78 TJ/GWh 23.2%

Summary of calculation (see details in the spreadsheet)

A B C D E F

fraction carbon oxidised


TJ/year tCO2/TJ tC02/year (Fij * COEFi) GWh tCO2 / MWh
Operating Margin OXID
2006 IPCC Guidelines for 2006 IPCC Guidelines for
See table A1 National Greenhouse Gas National Greenhouse Gas ( = A * B *D ) See Table A3 (= D/ E)
Inventories Inventories
Fuel oil No 6/orimulsion 22,643 77.4 0.99 1,735,019 2,446 0.709
Diesel 154 74.1 0.99 11,284 12 0.976
Coal 10,966 98.3 0.98 1,056,421 967 1.092
33,763 2,802,724 3,425 0.818

The calculated value for EFOM,y= 0.81 tCO2e/MWh

32
2006 IPCC Guidelines for National Greenhouse Gas Inventories:, Volume 2 energy, table 2.2
33
2006 IPCC Guidelines for National Greenhouse Gas Inventories: Volume 2 energy, table 1.2
34
2006 IPCC Guidelines for National Greenhouse Gas Inventories
35
ACM0002/Version 01, Page 4, footnote 3, point 3

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STEP 2: Calculate the Build Margin emission factor (EFBM,y) as the generation-weighted average
emission factor (tCO2e/MWh) of a sample of power plants

i,m Fi,m,y * COEFi,m


EFBM,y = _______________
GENm,y
Where Fi,m,y , COEFi,m and GENj,m are analogous to the variable described for the Simple OM method
above for plants m selected according to option1 36:

EFBM,y ex-ante based on the most recent information available on plants already built for sample group m
at the time of PDD submissions. The sample group consists of the power plant capacity addition in the
electricity system that comprises 20% of the system generation (in MWh) and that have been built
recently.

The calculated value for EFBM,y= 0.457 tCO2e/MWh

STEP 3: Calculate the baseline emission factor EF,y as the weighted average of the Operating Margin
emission factor (EFOM,,y) and the Build Margin emission factor (EFBM,y)

EFy = wOM * EFOM,,y + wBM EFBM,,y

Where wOM and wBM are by default 0.5.

The calculated value for EFy,3= 0.637 tCO2e/MWh

36
ACM0002/Version 06, Sectoral scope 1, 3 September 2004: see page 8, option 1

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Annex 4

MONITORING INFORMATION

Flare specifications

General
Max Biogas flow: 1000 Nm3/h
Biogas pressure: 100 mbar
Methane content: Min. 50 % (wet basis)
Ambient temperature: -15 to +40
Relative humidity: Max. 90 %
Methane content : > 50 % (wet basis)
Biogas temperature : 20 40 degrees Celsius

Performances
Flare efficiency : > 99 %
Relative humidity : Max. 30% at compressor outlet

Burner
One high retention flare tip DN100 material AISI 310. (1.4841)

Ignition
One High Energy ignition system, with high temperature weather proof electrode mounted on the pilot
burner. Sparks are produced with a frequency of two hertz.
No weather conditions nor dirt or water can prevent the system from sparking.

Pilot Burner
Stainless steel AISI 310 (1.4841) pilot burner with venturi operating on biogas.
The biogas enters the pilot burner via a flame arrester and solenoid valve.

Flame detection
One self check false save UV-detector.

Stack
Self supporting free standing flare stack, constructed in AISI 304. Total height 10m.
Two air dampers are integrated in the body of the stack on the bottom side to control the amount of
combustion air equipped with one electric control motor with position transmitter and electric heater.

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APPENDIX 1: ADDITIONAL INFORMATION


Calculation of emission reductions

Biogas energy plant from palm oil mill effluent Extractora del Atlantico, S.A.,
Last update: January 7, 2008
Champona, Guatemala

Data not monitored


Bo,ww 0.21
CODy,ww,untreated 47,000
MCFww,treatment (high value) 1
MCFww,treatment (low value) 0.8
CFEww 0.9
GWP_CH4 21
Density of methane (kg/Nm3) 0.716
Low heating value methane (MJ/KG) (IPCCC2006, table 1.2 (gas) 43
(MJ/Nm3) 30.788
EFy,2 (ton Co2/MWhe): Production for Internal use 0.80
EFy,3 (ton Co2/MWhe): grid 0.637
EFy,Power (tonCO2e/MWh) 1

Data monitored
EB,power (KWh/year) 240,000

Other data
Biogas design capacity (KW) 545.00
Biogas motor yearly operating hours 4,375
Biogas motor average load 90%
Biogas generator efficiency (see specifications of GE Jenbacher ) 0.35

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Phase 1 Phase 2 Phase 3
YEAR Equation ref. 2008 2009 2010 2011 2012 2013 2014
Project activity emissions (tCO2e/year) PEy=PE1,y 9 (Section B.6.3) 1,898 3,613 3,556 5,031 5,327 5,298 5,318
Emissions though electricity of diesel consumption in year y (tons CO2e) PEy, power 6 (Section B.6.3) 240 240 240 240 240 240 240
Emissions through degradable organic carbon in treated wastewater in year y PEy,ww, treated 6b (Section B.6.3) 0 0 0 0 0 0 0
Methane emissions from the anerobic decay of the final sludge generated in the wastewater
system in the year y (tonnes CO2 eq) PEy,s,final 6a (Section B.6.3) 0 0 0 0 0 0 0
Emissions through methane realease in capture and flare systems in year y PEy,fugitive 7 (Section B.6.3) 1,658 3,373 3,316 4,791 5,087 5,058 5,078
Emissions through capture and flare inefficiencies in the anaerobic wastewater treatment in
the year y (tonnes of CO2 eq) PEy,fugitive,ww 7c (Section B.6.3) 1,658 3,373 3,316 4,791 5,087 5,058 5,078
Methane emission potential of wastewater-high value (tonnes) MEPy,ww,treatment 1 (Section B.4) 790 1,606 1,579 2,281 2,422 2,409 2,418
Methane emission potential of wastewater- low value(tonnes) MEPy,ww,treatment 8 (Section B.6.3) 632 1,285 1,263 1,825 1,938 1,927 1,935
Lagoon 1 MEPy,ww,treatment,1 8 (Section B.6.3) 632 632 632 632 632 632 632
Lagoon 2 MEPy,ww,treatment,2 8 0 653 632 632 632 632 632
Lagoon 3 MEPy,ww,treatment,3 8 0 0 0 562 675 664 671
Total volume of wastewater Qy,ww 128,409 162,721 193,444 231,147 245,424 244,049 245,002
3
Volume of waste water directed to lagune 1 (m /year) Qy,ww,1 80,000 80,000 80,000 80,000 80,000 80,000 80,000
3
Volume of waste water directed to lagune 2 (m /year) Qy,ww,2 48,409 82,721 80,000 80,000 80,000 80,000 80,000
3
Volume of waste water directed to lagune 3 (m /year) Qy,ww,3 0 0 33,444 71,147 85,424 84,049 85,002
3
COD of incoming POME (tonnes/m ) CODy,ww,untreated 0.047 0.047 0.047 0.047 0.047 0.047 0.047
Fugitive emissions through capture and flare inefficiencies in the anaerobic sludge treatment
(tonnes CO2 eq) PEy,fugitive,s 7b (Section B.6.3) 0 0 0 0 0 0 0
Emissions through dissolved methane in treated wastewater in year y PEy,dissolved 6c (Section B.6.3) 0 0 0 0 0 0 0

Baseline emissions (tCO2e/year) BE,y 5 (Section B.4) 14,982 28,349 27,898 40,910 43,521 43,270 43,444
BE1,y 2 (Section B.4) 13,265 26,982 26,531 38,328 40,695 40,467 40,625
Estimation of electricity that can be produced from the biogas captured
Estimation of CH4 production from lagoon 1 (m3/year) CH4 L1 715,816 715,816 715,816 715,816 715,816 715,816 715,816
Estimation of CH4 production from lagoon 2 (m3/year) CH4 L2 0 740,161 715,816 715,816 715,816 715,816 715,816
Estimation of CH4 production from lagoon 3 (m3/year) CH4 L3 0 0 0 636,606 764,351 752,048 760,571
Estimation of total CH4 catpured (m3/year) CH4 CAPTURED 715,816 1,455,977 1,431,632 2,068,237 2,195,983 2,183,680 2,192,203
Estimation of CH4 captured (TJ/year) CH4 (TJ/year) 22.07 44.89 44.14 63.77 67.70 67.33 67.59
Thermal energy of methane captured MWth CH4 0.70 1.42 1.40 2.02 2.15 2.13 2.14
Maximum electricity that can be produced based on the methane captured Pe (kWhe/year) 2,145,628 4,364,229 4,291,257 6,199,455 6,582,367 6,545,489 6,571,038
BE2,y=ER2,y 3 (Section B.4) 1,717 0 0 0 0 0 0
Maximum electricity that can be produced by GROUP 1 (for the user): Kwhe produced Pe prod(KWh) 2,145,938 2,145,938 2,145,938 2,145,938 2,145,938 2,145,938 2,145,938
BE3,y=ER3,y 4 (Section B.4) 0 1,367 1,367 2,582 2,826 2,803 2,819
TOTAL (for the grid) Pe prod(KWhe) 0 2,145,938 2,145,938 4,053,518 4,436,429 4,399,551 4,425,100
GROUP 2 (for the grid): Kwhe produced Pe prod(KWhe) 0 2,145,938 2,145,938 2,145,938 2,145,938 2,145,938 2,145,938
GROUP 3 (for the grid): Kwhe produced Pe prod(KWhe) 0 0 0 1,907,580 2,290,492 2,253,614 2,279,163

Emission Reductions per year (t CO2e/year) ERy 13 (Section B.6.3) 13,084 24,736 24,341 35,879 38,194 37,971 38,126
Crediting period (years) 7
TOTAL CER Period 1 212,332
Average per year (over 7 years) 30,333

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IRR Calculation (Without CER)


Financial returns: calculation of IRR (7 years basis)
Working hours of group no 1,2,3 / year 4,375
1 2 3 4 5 6 7
Revenues US$/year Year 2008 2009 2010 2011 2012 2013 2014
Electricity Group 1(US$/Kwhe buying price) 0.15 321,891 321,891 321,891 321,891 321,891 321,891 321,891
Electricity Group 2 (US$/Kwhe buying price) 0.08 0 171,675 171,675 171,675 171,675 171,675 171,675
Electricity Group 3(US$/Kwhe buying price) 0.08 0 0 0 152,606 183,239 180,289 182,333
CER (US$/tCO2) 0 0 0 0 0 0 0 0
TOTAL REVENUES 321,891 493,566 493,566 646,172 676,805 673,855 675,899
Operating expenses
Depreciation 157,143 225,714 225,714 300,000 300,000 300,000 300,000
Interest on loan 37,896 54,432 54,432 72,346 72,346 72,346 72,346
O&M (6.5 US$/working hour per group) 6.5 27,893 56,735 55,786 80,593 85,571 85,091 85,423
Miscellaneous (5% of investment) 55,000 79,000 79,000 105,000 105,000 105,000 105,000
O&M staff 30,000 30,000 30,000 30,000 30,000 30,000 30,000
Total O&M 307,932 445,881 444,933 587,939 592,917 592,438 592,770
Operational income/EBIT 13,959 47,684 48,633 58,233 83,888 81,417 83,129
Income tax (30% of net profit, taken here as 0% as profit is below taxable scale) 0% 0 0 0 0 0 0 0
Net income 13,959 47,684 48,633 58,233 83,888 81,417 83,129
Free cash flow (FCF) 171,102 273,399 274,347 358,233 383,888 381,417 383,129
Accumulated FCF 171,102 444,500 718,847 1,077,080 1,460,968 1,842,385 2,225,514
IRR(5 years) -10.0% -2,100,000 171,102 273,399 274,347 358,233 383,888 381,417 383,129
IRR(7years) 1.3% -2,100,000 171,102 273,399 274,347 358,233 383,888 381,417 383,129

CAPITAL INVESTMENT US$ Interest


Investment Phase 1 1,100,000 37,896
Phase 2 1,580,000 54,432
Phase 3 2,100,000 72,346
Depreciation year 7

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Description of social actions undertaken by Extractora del Atlantico, S.A.

A. Support to ASOSERVICIOS

ASOSERVICIOS is a socio-economic movement aiming at managing the harmony and well being of
the employers and workers of Extractora del Atlantico, based on respect and mutual aid.

It promotes solidarity and goodwill between workers and employers. It has no political commitments,
partisan, religious or ideological character. ASOSERVICIOS is an association which has adopted the
following chart:

- Voluntarily: The employees enter and retire as they wish; there is no commitment to anybody
to enter or to stay in it.

- Democratic: their leaders are elected by their own companions in General Assembly.

- Independent: Each association is developed by itself.

- Reliable: The worker does not lose any of his benefits given by laws, in fact, he/she grows as
time goes by.

- Participative: All members have the same rights and opportunities.

- Organized: It counts legal function and position, statutes, regulations and control
mechanisms.

- Beneficial: for the worker, employer, their families and the Nation.

- Respectful: it recognizes and defends the right of free Association, protected by the
constitution of the republic.

Objectives of ASOSERVICIOS:

a) Being an example of human coexistence.

b) Strengthen the relations of union, mutual aid and goodwill between workers and employers.

c) Promote economic progress of the workers, improve the living standard of their families and
communities.

d) Develop a series of services that benefit the members, their families, the company and the country.

ASOSERVICIOS is established as a Corporation, called Asociacin Solidarista de Trabajadores de


Servicios Agrcolas del Atlntico, founded in the beginning of 2005. The association perceives a
contribution from its members (5 % of wage) and a similar percentage from the Company. The money
serves as working capital to fund its projects. The Company also contributes to an additional Q. 50.00 per
employee to promote savings for the employees.

At the end of year 2005, ASOSERVICIOS collected around US$12, 700.

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- The Company subsidizes the operational costs such as accounting, buildings, office
equipment, etc.

- The Company provides a refectory at the mill where around 2,000 employees may have their
meals for free. The Company spends around US$ 660,000 per year which includes the food,
but also reinforced drinks, hydrated serums, salaries, transport and gasoline to distribute the
food.

- The Company finances the purchase of motorcycles that ASOSERVICIOS sells to its
member with a 48 months loan at no cost.

- ASOSERVICIOS plans from 2007 to implement medical checkups that will cover:
ophthalmology, dentistry and general medicine.

- Under project now: the construction of a bakery preparing bread for all the personnel at the
farms and mill. As well ASOSERVICIOS will buy the necessary machinery and tools to
repair flat tires of all vehicles that are used in the field.

B. Improvement of health

- The Company is taking active steps towards the improvement of his peoples health by hiring
a doctor specialized in nutrition that determines an equilibrated alimentation for the meals
served at the refectory.
- The Company built two clinics: two paramedics and two nurses are working there, providing
first aids to every worker who needs it.
- The Company provides free of charge any medicine needed by the worker.
- The company spends around US$ 30,600 per year on health support actions.

C. Support to local communities

- In order to improve local peoples health and reduce poverty in the nearest communities, the
Company contributes, along with local authorities; to repair local roads and improve
drainages in order to eliminated ponds formed by the rain water. Indeed they constitute a
breading ground for mosquitoes incubation of larvae), which may spread Malaria. The
Company spends around US$65,000 per year by providing equipment, material and fuel for
fighting Malaria. It helps providing a healthier environment for the surrounding communities.

- The Company has contributed to construction of the drinking water network of its nearest
village by providing PVC pipes, sand, cement and machinery.

The Company contributes to the local public schools by giving basic stationeries (e.g. blackboards, chalk,
whiteboards, non permanent markers, crayons, white sheets, glue, rulers, books, ball pens, pencils, etc.)
for a amount of US$ 7,000 per year.

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STAKEHOLDER PRESENTATION TO FONDA ECO AND MARN

On August 17th of 2006, a meeting took place at EXTRACTORA DEL ATLANTICO plant
offices. Attended to the meeting FONDA ECO and MARN representatives, also attended
AGROCARIBE and EXTRACTORA DEL ATLANTICO General Manager, Enrique Arriola; Plant
Manager, Jose Alberto Luna; Agriculture Manager, Harold Dominguez and Controller, Carlos Santiago.

Mr. Arriola explained to FONDA ECO and MARNs representatives the process of the oil palm,
from the plantation till extraction of oil from the palm fruit and the effluent treatment after the process. It
was followed by the explanation of the project activity.

Mr. Luna gave everybody a tour around the mill, explaining that the process is a humid process,
thats why at the end of the extraction process there is an effluent, which is stored in three different
lagoons. He also explained how he controls the buffer capacity on each lagoon, taking the last lagoons
COD down to 150 ppm. At this level, the water along with the sludge is spread into the plantation as
organic fertilizer.

Mr. Arriola explained that this methane gas will replace the diesel that is use to start the mill and
in a second phase will help to generate energy to the grid. With this, EXTRACTORA DEL
ATLANTICO will help the environment reducing the consumption of a fossil fuel and reducing in a
way, the global heating (green house effect).

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At the end of the meeting, Mr. Arriola told them that from de CERs obtained from the capture of
methane gas, 2% of it will be given to the Solidarism Association, this with the intention to improve the
incomes of each members of the association and their families.

Before leaving EXTRACTORA DEL ATLANTICO, ASOSERVICIOS which is the


Solidarism Association offered a custom lunch at the restaurant.

The comments received from FONDA ECO were very motivating, because they were amazed
how AGROCARIBE and EXTRACTORA DEL ATLANTICO were treating the land; how we were
improving the flora and fauna around the plantation and the way we were concerned about the
environment.

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STAKEHOLDER PRESENTATION TO AGROCARIBE


AND EXTRACTORA DEL ATLANTICO
EMPLOYEES
(MEMBERS OF ASOSERVICIOS)

On October 17th and 19th of 2006, a meeting took place at different places of EXTRACTORA
DEL ATLANTICO plant and at AGROCRIBE farms. Most of all employees representativess from
AGROCARIBE and EXTRACTORA DEL ATLANTICO were present.

At AGROCARIBE main quarters the meeting was led by Carlos Santiago, controller of the
company, he explained the process of palm oil extraction and the effluent after the process, the CDM
project and the capture, transport and consumption of methane gas project.

He explained the intention of covering the lagoons at EXTRACTORA to capture the methane
gas produced in them. He also explained that this methane gas will replace the diesel that is use to start
the mill and other users and in a second phase will help to generate energy to the grid. With this,

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EXTRACTORA DEL ATLANTICO will help the environment reducing the consumption of a fossil
fuel and reducing in a way, the global heating (green house effect).

Mr. Santiago explained them that for every ton burned or replace for fossil fuel the project will
receive a CER which cost may vary depending on what kind of use will be given to the methane gas.

At the end of the meeting, Mr. Santiago told them that from the CERs obtained from the capture
of methane gas, 2% of it will be given to the Solidarism Association, this with the intention of improve
the savings of each member of the association.

The comments received from main quarters employees were very motivating, because they were
amazed how AGROCARIBE and EXTRACTORA DEL ATLANTICO were treating the effluent, they
had no idea of what kind of use could be given to the methane gas; and were very pleased of knowing that
their savings in the Solidarism Association will increase yearly.

The meetings at AGROCARIBE farms and at EXTRACTORA were led by Harold Dominguez,
Agriculture Manager and by Jose Alberto Luna, Plant Manager.

They also explained the process of extraction of palm oil and the effluent to most of all
employees, among them, workers from different departments, such as Administration, Industrial Kitchen,
workshop, land field and mill personnel.

They explained the project of covering the lagoons at EXTRACTORA with the intention of
capturing the methane gas produced in them, to transport it to a burner and to replace the diesel use in
EXTRACTORA, in a near future use it in the kitchen to replace the propane gas and inclusive generate
electricity to the grid.

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They explained on large scale the CDM project and how the burning of methane gas will help the
environment.
Not all of the employees in the plantations are associated to the Solidarism Association, but when
they learnt that AGROCARIBE will give 2% of the CERs, they were interested and mentioned that they
would like to join the Solidarism Association and increase their savings.

All employees were amazed because they didnt know how the methane gas could replace a fossil
fuel and the burning of it could help the environment, they also were pleased because they have noticed
the help both companies are given to the communities near EXTRACTORA.

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Non-Annex 1 support letter

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