CDM - English - Formato Traducci N Pblica

TRADUCCIÓN PÚBLICA.
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TRANSLATION.--------------------------------------------------------------------------------------------------
[There are two logos on the letterhead, which reads on every page of the document:] PROJECT
DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board .Page [the
number of the appropriate page follows] -----------------------------------------------------------------------
CLEAN DEVELOPMENT MECHANISM. PROJECT DESIGN DOCUMENT FORM
(CDM-PDD) VERSION 03 - IN EFFECT AS OF: 28 JULY 2006. ------------------------------------
CONTENTS --------------------------------------------------------------------------------------------------------
A. General description of 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 project activity--------------------------------------
Annex 2: Information regarding public funding --------------------------------------------------------------
Annex 3: Baseline information ----------------------------------------------------------------------------------
Annex 4: Monitoring plan ----------------------------------------------------------------------------------------
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SECTION A. General description of project activity -----------------------------------------------------
A.1 Title of the project activity: -------------------------------------------------------------------------------
Molinos Río de la Plata- Cogeneration Plant – San Lorenzo. Version 01. October 24th, 2006 -----------
A.2.Description of the project activity: --------------------------------------------------------------
 Purpose ----------------------------------------------------------------------------------------------------------
The Cogeneration Project comprises the installation of equipment for the simultaneous generation
of 26.91 MW of electricity and 212 tonnes/hour of heat for the industrial plant located in the city of
San Lorenzo, Province of Santa Fe- Argentina. ---------------------------------------------------------------
The plant’s main activity is the production of soy flour, raw soy oil and other sub-products, mainly
for the foreign market. ---------------------------------------------------------------------------------------------
 Explain how the proposed project activity reduces greenhouse gas emissions ----------------------
Molinos Río de la Plata has an industrial plant located in the city of San Lorenzo. This industrial
plant’s main activity is the production of raw soy oil and soy flour. --------------------------------------
The current production capacity is 17,500 tonnes a day, and such industrial process demands an
electric power of 27 MW and a heat power of 180-230 tonnes/hour. --------------------------------------
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Should the project not be realized, the plant’s power demand is covered by:-----------------------------
 electricity purchased from the power grid, -----------------------------------------------------------
 heat produced in several boilers, using natural gas as fuel with the exception of about 30
days per year, when fuel oil is used. -------------------------------------------------------------------
The project activity comprises the installation of a cogeneration plant, i.e. the simultaneous
generation of electricity and heat using two high pressure boilers and a counter-pressure steam
turbine as technology. ---------------------------------------------------------------------------------------------
The emissions produced without the implementation of the project mainly include:--------------------
 emissions in the Argentine Electric Generation System for the 26.91 MW electric power
which the cogeneration plant would generate. -------------------------------------------------------
 emissions resulting from the combustion of fossil fuels in the boiler for heat generation.----
This is the current situation of the plant which has been operating since December 2005. The
emissions produced with the implementation of the project mainly include: -----------------------------
 emissions resulting from the combustion of fossil fuels in the boiler operating in high
pressure for the generation of electricity and heat for the production process. -----------------
The difference between both scenarios results in the reduction of emissions produced by the project
activity. With the project activity a reduction of emissions of 51,943 tonnes/CO2 per year is
estimated for the first two years and 26,711 tonnes/CO2 for the following years. ----------------------
Should the project not be realized, i.e. should the steam turbine not be installed and the boiler
continue to operate in the same way, there will not be a reduction of greenhouse gas emissions.-----
 Contribution to sustainable development ------------------------------------------------------------------
The Project contributes to the sustainable development of Argentina on the following grounds: -----
 it significantly reduces greenhouse gas emissions. --------------------------------------------------
 it allows the Electric System to have a higher electric power availability. ----------------------
 it contributes to the rational use of energy, as a result of a lower use of non-renewable fuels.
 it reduces the impact on the environment generated by industrial activity.----------------------
 it contributes to the general development of the economy as a result of a higher use of
workforce and transfer of technology.-----------------------------------------------------------------
The Project allows for the displacement of an average 30,828 tonnes/CO2 per year throughout the
first seven years. ----------------------------------------------------------------------------------------------------
A.3. Project participants:----------------------------------------------------------------------------------------
Name of party involved (host): Argentina (host).-----------------------------------------------------------
Private and/or public entity(ies) project participant: Molinos Río de la Plata S.A. -----------------
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The Cogeneration project is developed by Molinos Río de la Plata S.A. ----------------------------------
A.4. Technical description of the project activity: ---------------------------------------------------------
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A.4.1. Location of the project activity:-----------------------------------------------------------------------
Molinos industrial project is located in the city of San Lorenzo, Province of Santa Fe, Argentina.---
A.4.1.1. Host Party(ies): -----------------------------------------------------------------------------------------
The host country for the project is Argentina.------------------------------------------------------------------
A.4.1.2. Region/State/Province etc.: --------------------------------------------------------------------------
Province = Santa Fe ------------------------------------------------------------------------------------------------
A.4.1.3. City/Town/Community etc:-------------------------------------------------------------------------
City= San Lorenzo--------------------------------------------------------------------------------------------------
A.4.1.4. Detail of physical location, including information allowing the unique identification of
this project activity (maximum one page): -----------------------------------------------------------------
San Lorenzo city is located in the province of Santa Fe, to the north of the city of Rosario.-----------
Paraná River
San Lorenzo City
San Lorenzo
San Lorenzo City -

Rosario- Air View
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A.4.2. Category(ies) of project activity: ---------------------------------------------------------------------
Sectorial Scope: 4.- Manufacturing Industries. ----------------------------------------------------------------
A.4.3. Technology to be employed by the project activity: ---------------------------------------------
A cogeneration project comprises the simultaneous generation of electricity and heat to cover the
power needs of an industrial plant.-------------------------------------------------------------------------------
Of the thermal cycles which may be applied to the industry, the installation and operation of a high
pressure boiler has been selected. In this way, steam is generated first, then, that steam evolves in a
counter-pressure steam turbine which generates an electric power of 26.91 MW, using the output
heat of the turbine directly in the industrial process.----------------------------------------------------------
This is an old technology which suits Molinos’ process better than other technologies on the
following grounds:--------------------------------------------------------------------------------------------------
Electric Power/ Thermal Power Relation -----------------------------------------------------------------------
 the plant has a heat demand of 212 tonnes/hour and an electricity demand of 26.9 MW, and
the project comprises the simultaneous production of 100% of both values, compared to
other cycles, such as gas turbines, where it is not possible to generate both values
simultaneously.--------------------------------------------------------------------------------------------
Fuel Availability and Costs ---------------------------------------------------------------------------------------
 The plant is located in the province of Santa Fe and has a restriction of 30 days per year as
regards the supply of natural gas, using Fuel Oil as alternative fuel for such days. Other
cogeneration cycles, such as those based on gas turbines, demand gas oil as fuel for their
operation. This means that on the days of natural gas restriction, gas-based cogeneration
cycles use a much more expensive fuel than steam-turbine cycles and this significantly
affects the return on investment rate. ------------------------------------------------------------------
As regards the equipment to be used in the project, the cogeneration plant includes: -------------------
Boiler Number 3 ----------------------------------------------------------------------------------------------------
Brand = Gonella ----------------------------------------------------------------------------------------------------
Nominal Pressure = 70 kg/cm² -----------------------------------------------------------------------------------
Operating Pressure = 65 kg/cm² ----------------------------------------------------------------------------------
Temperature = 480 º------------------------------------------------------------------------------------------------
Steam Production = 120,000 kg/hour----------------------------------------------------------------------------
Year = 2006----------------------------------------------------------------------------------------------------------
Efficiency = 93% ---------------------------------------------------------------------------------------------------
Boiler Number 4 ----------------------------------------------------------------------------------------------------
Brand = Gonella ----------------------------------------------------------------------------------------------------
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Nominal Pressure = 70 kg/cm² -----------------------------------------------------------------------------------
Operating Pressure = 65 kg/cm² ----------------------------------------------------------------------------------
Temperature = 480 º------------------------------------------------------------------------------------------------
Steam Production = 120,000 kg/hour----------------------------------------------------------------------------
Year = 2006----------------------------------------------------------------------------------------------------------
Efficiency = 93% ---------------------------------------------------------------------------------------------------
Steam Turbine-------------------------------------------------------------------------------------------------------
Input Pressure = 65 kg/cm²----------------------------------------------------------------------------------------
Capacity = 234 tonnes/hour ---------------------------------------------------------------------------------------
Temperature = 480 ºC ---------------------------------------------------------------------------------------------
Extraction 1 – Pressure = 14 kg/cm² -----------------------------------------------------------------------------
Temperature = 281.2 ºC-------------------------------------------------------------------------------------------
Capacity = 50 tonnes/hour-----------------------------------------------------------------------------------------
Extraction 2 – Pressure = 8 kg/cm² ------------------------------------------------------------------------------
Temperature = 221 ºC ---------------------------------------------------------------------------------------------
Capacity = 184 tonnes/hour ---------------------------------------------------------------------------------------
Isoenthropic Efficiency = 87.2% ---------------------------------------------------------------------------------
Electric Power = 28.7 MW ----------------------------------------------------------------------------------------
A.4.4 Estimated amount of emission reductions over the chosen crediting period: ---------------
Year Annual estimation of emission
reductions in tonnes of CO2 e
2007 30,300
2008 51,943
2009 51,943
2010 26,711
2011 26,711
2012 26,711
2013 26,711
Total estimated reduction (tonnes of 215,800
CO2 e)-------------------------------------- -----------------------------------------------
Total number of crediting years 7 (first crediting period)
Annual average of estimated reduction 30,828
(tonnes of CO2 e) over the crediting
-----------------------------------------------
period
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For 2007 the emission reductions correspond to just 7 months of operation of the cogeneration
project. In 2008 and 2009 there will be higher reductions as a higher grid emission factor is
expected, similar to that of 2005. Likewise, as from 2010, there are a series of energy projects of
new generation plants which shall bring about emission factor reductions of the power grid. ---------
A.4.5. Public funding of the project activity: ---------------------------------------------------------------
No public funding has been used for the project development. ---------------------------------------------
SECTION B. Application of a baseline and monitoring methodology -------------------------------
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B.1. Title and reference of the approved baseline and monitoring methodology applied to the
project activity: ---------------------------------------------------------------------------------------------------
The approved Baseline Methodology which shall be used in the project is AM0014 “Natural Gas –
based – package cogeneration” / Version 02, Sectorial Scope: 1 and 4 - 28 July 2006. ----------------
The approved Monitoring Methodology which shall be used in the project is AM0014 “Natural Gas
– based package cogeneration” Version 02, Scope 1 and 4, 28 July 2006. --------------------------------
The following documents have also been used:----------------------------------------------------------------
 “Tool for demonstration and assessment of additionality” - Version 2 - 28 November 2005
 ACM0002 - Consolidated baseline methodology for grid-connected electricity generation
from renewable source" Version 06 - Sectorial Scope: 01 - 19 May 2006 ----------------------
B0.2 Justification of the choice of the methodology and why it is applicable to the project
activity: --------------------------------------------------------------------------------------------------------------
Molinos’ project consists in the installation of a Cogeneration plant. To this end, we use the
AM0014 “Natural Gas – based – package cogeneration” methodology, approved for a similar
cogeneration scheme. ----------------------------------------------------------------------------------------------
Firstly, in Technological Aspects, we will describe the different cogeneration technologies to which
the AM0014 methodology may be applied. Secondly, in Applicability, the AM0014 methodology
applicability conditions to Molinos' project are analyzed. Thirdly, the Methodology Title is
analyzed and its reference to Molinos' project; and in fourth place, in Emission from Electricity
Generation the criteria for the calculation of power grid emissions are defined. -------------------------
Technological Aspects ---------------------------------------------------------------------------------------------
Cogeneration projects are applicable to the industry and their technical implementation differs as
regards the thermal machines used. -----------------------------------------------------------------------------
In this regard, there are:--------------------------------------------------------------------------------------------
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 Systems where the electricity generation is produced with an internal combustion engine
and with exhaust gases and cooling water, hot water or low-pressure steam is produced.
These engines may use natural gas, fuel oil, diesel oil or gas oil.---------------------------------
 Systems where the electricity generation is produced in a gas turbine, and with the exhaust
gases, steam is produced in a recovery boiler. These turbines normally use natural gas or
gas oil as fuel. ---------------------------------------------------------------------------------------------
 Systems where steam is produced in a high-pressure boiler, then electricity is generated
using a counter-pressure steam turbine, and such heat is then used in the process. ------------
In all cases, fossil fuel is used, electricity is generated and thermal energy is generated as steam or
hot water.-------------------------------------------------------------------------------------------------------------
The choice of each kind of technology depends on two main aspects:-------------------------------------
 the prices of fuels and the hours of use of each fuel per year. -------------------------------------
 the amount of steam in tonnes/h needed for the process in function of the electricity
generated. --------------------------------------------------------------------------------------------------
There are industrial processes where: ---------------------------------------------------------------------------
 There is no natural gas supply every day of the year and liquid fuels must be used at
different prices.--------------------------------------------------------------------------------------------
 The three technologies available have certain typical features: -----------------------------------
- Molinos’ project requires almost 27 MW of electricity generation and it is not usual
to have internal combustion engines of such size in the market. An important
engine for these applications has a module of about 3 MW; therefore, a significant
number of machines would have to be installed. ------------------------------------------
- In the market there are gas turbines to generate about 27 MW of electricity and
such power generates in turn about 50 tonnes/hour of steam with the heat contained
in the exhaust gases. Molinos has a demand of 212 tonnes/hour of steam, which
makes it necessary to produce an additional amount of steam in a conventional
boiler or with post-combustion in the same recovery boiler. ----------------------------
- In the cycle used, about 212 tonnes/hour of steam are generated, which corresponds
to the basic consumption of the plant and that allows for the generation of about
26.9 MW of electricity. Therefore, this cogeneration cycle meets the requirements
of Molinos Río de la Plata S.A. industrial process.----------------------------------------
Nevertheless, the three technologies described above have a common denominator: -------------------
 they are all intensive capital activities, thus low return rate projects. ----------------------------
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 they are all technological projects for efficiency improvement, thus representing a lower
consumption of fuel as regards traditional power supply solutions. ------------------------------
 as a result of a lower use of fossil fuels, these projects produce GHG emission reductions.
We consider that the existing AM0014 methodology, approved for a Cogeneration Project, may be
used for Molinos’ project. ----------------------------------------------------------------------------------------
Applicability---------------------------------------------------------------------------------------------------------
The methodology is applicable to the project since we consider that the following applicability
conditions set forth in said methodology are met: -------------------------------------------------------------
 The cogeneration system is a third party cogeneration system, i.e. not owned or operated by
the consuming facility that receives the project heat and electricity or the cogeneration
system is owned by the industrial user (henceforth referred to as self-owned) that consumes
the project heat and electricity. In our case, Molinos Río de la Plata is the owner of the
Cogeneration plant and the user of the cogeneration’s heat and electricity produced. --------
 The cogeneration system provides all or part of the electricity and/or heat demand of the
consuming facility. Molinos’ project comprises electricity generation with a counter-
pressure turbine having a maximum capacity of 234 tonnes/hour. If the plant consumes
more than such value, the heat is generated with conventional boilers which are outside the
project boundary and do not produce emission reductions. Such heat values may generate
between 24 and 27 MW depending on the volumes of each 7 and 12 kg/cm² extraction. ----
 No excess electricity is supplied to the power grid and no excess heat from the cogeneration
system is provided to another user. No excess heat is supplied to third parties. The
cogeneration plant shall provide heat and electricity to cover the total values foreseen. No
supply of electricity to third parties has been foreseen.---------------------------------------------
Molinos’ project meets the applicability conditions set forth in the AM0014 methodology.-----------
Methodology Title --------------------------------------------------------------------------------------------------
The Methodology Title (“Natural gas-based package cogeneration” ) refers to natural gas as the fuel
used. In Molinos’ project, the cogeneration project uses natural gas and fuel oil, which does not
invalidate the project’s emission reductions. In fact, Molinos uses fuel oil on 30 days per year, when
the gas demand for residential use increases in winter and the industries and factories with
interruptible service use alternative fuel. This produces an increase in the emissions of Molinos’
boiler, but, in the same winter period the use of fuel oil and gas oil also increases for the same
reasons in the thermal plants making up the last 10% of the dispatched machines. Therefore, the
electricity displaced from the power grid also suffers increases in GHG emissions. -------------------
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Despite the fact that the Methodology Title refers to natural gas as fuel, the AM0014 methodology
may also be applied using the corresponding emission factors for each fuel used. ----------------------
Emission from Electricity Generation ---------------------------------------------------------------------------
CO2 emissions resulting from electricity generation of the cogeneration project are estimated
proportionally to the electricity generated by the project. The BEFelec (Baseline Emission Factor
tonne CO2/kWh) proportionality factor as per the stipulations of the AM0014 methodology shall
refer to the "Consolidated Baseline Methodology for Zero-emissions Grid-Connected Electricity
Generation from Renewable Source" where different ways of determining CO2 emission factors for
electricity supply from the grid are provided, or to the "Simplified Methodology for Small-scale
CDM Project activities"(in case electricity displaced is less than or equal to 15 MW equivalent). ---
Molinos' project exceeds 15 MW; therefore, it is not a small-scale project and for the estimation of
the grid electricity generation emissions the method considering a detailed analysis of the
generation dispatch has been used. Such method was approved by the AM0002 consolidated
methodology. This methodology (AM0002) requires a large amount of information in order to
make a detailed assessment of the combined margin. CAMMESA(1) has the detailed information
on the required data, which is available for Molinos. ---------------------------------------------------------
For the estimation of the Electric System emissions displaced by the Cogeneration Plant a computer
method was developed. This method analyzes the dispatch of hydro-thermal machines on an hourly
basis, determining the metric tonnes of GHG. Its calculation details are described in Annex 4. ------
(1) CAMMESA Compañía Administradora del Mercado Eléctrico Mayorista Sociedad Anónima. ---
B.3. Description of the sources and gases included in the project boundary ------------------------
Factory Boundary---------------------------------------------------------------------------------------------------
The Factory Boundary comprises all the facilities of the San Lorenzo industrial plant of Molinos
Río de la Plata. Figures B3.1. and B.3.2 show two air views of the industrial complex.----------------
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Figure B.3.1. Air View of the Industrial Plant.----------------------------------------------------------------
Figure B.30.2. Air View of the Industrial Plant. --------------------------------------------------------------

Project Site-----------------------------------------------------------------------------------------------------------
The Project Site comprises the facilities of the Cogeneration Plant, which includes: -------------------
 High pressure boilers-------------------------------------------------------------------------------------
 High pressure steam facilities---------------------------------------------------------------------------
 Turbo-generator -------------------------------------------------------------------------------------------
 Auxiliary systems-----------------------------------------------------------------------------------------
Within the Project Site we have high pressure boilers using fuel oil and natural gas and the
combustion of which is the source of CO2, CH4 and N2O. ---------------------------------------------------
Project Boundary ---------------------------------------------------------------------------------------------------
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The project boundary for the CDM project include: ----------------------------------------------------------
 Project Site-------------------------------------------------------------------------------------------------
 SADI (1) Generators -------------------------------------------------------------------------------------
(1) SADI: Sistema Argentino de Interconexión (Argentine Interconnection System): comprises all
the hydroelectric, nuclear and thermo-electric generators which generate supplying the grid.----
The following table shows the GHG sources included within the project boundary, indicating the
Methodology originating them.-----------------------------------------------------------------------------------
Source Gas Included Justification / Explanation
Boiler CO2 Yes Methodology AM0014
Fuel: Fuel Oil CH4 Yes Methodology AM0014
---------------------------------- N2O Yes Methodology AM0014
Fuel: Natural Gas CH4 Yes Methodology AM0014
Baseline
Leakage CO2 No Methodology AM0014

Natural Gas Transport CH4 Yes Methodology AM0014
---------------------------------- N2O No Methodology AM0014
Grid Emission CO2 Yes Methodology ACM0002
---------------------------------- CH4 No Methodology ACM0002
---------------------------------- N2O No Methodology ACM0002
Fuel: Fuel Oil CH4 Yes Methodology AM0014
Project Activity

Fuel: Natural Gas CH4 Yes Methodology AM0014
Leakage CO2 No Methodology AM0014
Natural Gas Transport CH4 Yes Methodology AM0014
---------------------------------- N2O No Methodology AM0014
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B.4. Description of how the baseline scenario is identified and description of the identified
baseline scenario: -------------------------------------------------------------------------------------------------
How the methodology determines the baseline scenario: ----------------------------------------------------
The baseline scenario is that which would take place in the absence of the project activity. ----------
The alternatives to the project activity considered are those described in the “Additionality” section
of AM0014 Methodology.-----------------------------------------------------------------------------------------
A.- Alternatives to the project activity --------------------------------------------------------------------------
1.- Industrial plant continues to operate with equipment replacement as needed and no change in
equipment efficiency (the frozen-efficiency scenario). -------------------------------------------------------
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All soy oil production plants in Argentina cover their power demands with the purchase of
electricity from the power grid and with the independent heat generation in a boiler. This includes a
whole set of existing plants, installed between the 80s and 2004 and a whole set of new industrial
ventures installed in 2004, 2005 and 2006, such as Cargill (Villa Gobernador Galvez- Santa Fe -
Argentina) and T6 Industrial (Puerto General San Martín - Santa Fe - Argentina). ---------------------
This means that Molinos Río de la Plata, just as the rest of the agro-industrial sector, may continue
with its customary practices for the procurement of power demands.--------------------------------------
In fact, the industrial plant has been operating since December 2005 in what we call customary
practices, that is to say, generating heat in the boiler by using fossil fuels and purchasing electricity
from the power grid.------------------------------------------------------------------------------------------------
In December 2005, Molinos industrial plant increased its production capacity of soy milling from
5,500 tonnes/day to 17,500 tonnes/day with the incorporation of a third production line.--------------
The plant engineering development attempted not just to increase production capacity but also to
have a lower demand of electric and thermal power per product unit. ------------------------------------
Consequently, we consider that the baseline scenario is to continue operating the existing plant
through customary practices, that is to say, by generating heat in a boiler and purchasing electricity
from the power grid. -----------------------------------------------------------------------------------------------
2.- Industrial plant continues to operate with improved efficiency new equipment at the time of
equipment replacement: -------------------------------------------------------------------------------------------
There is no improved efficiency to be achieved with new equipment at the time of equipment
replacement since we are talking about a recently enhanced plant with all possible improvements as
regards efficiency already incorporated. ------------------------------------------------------------------------
Therefore, this alternative does not correspond to the baseline scenario.----------------------------------
3.- The efficiency of boiler(s) is upgraded immediately: -----------------------------------------------------
Molinos industrial plant has two high-efficiency (93%) boilers acquired in mid-2005, which cover
all the plant demands. ----------------------------------------------------------------------------------------------
The boiler’s performance cannot be improved as it is a highly efficient boiler. Moreover, the heat
generation process is made in high pressure (64 kg/cm²), reducing pressure through laminating
valves, which accounts for a heat generation system of higher efficiency than direct generation in
low pressure.---------------------------------------------------------------------------------------------------------
When taking efficiency improvement measures, the selection of the boiler has been made from the
beginning of the industrial plant project based on its performance and heat production system
design. ---------------------------------------------------------------------------------------------------------------
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Therefore, there are no efficiency improvement measures concerning the boiler which may be
implemented. This is due to the fact that they were adopted before the Cogeneration Project. Should
the Cogeneration Project not be implemented, the plant would operate with new high pressure and
high performance boilers, which means the same efficiency before and after the Cogeneration
Project implementation.--------------------------------------------------------------------------------------------
4.- The heat and or electricity demand of the industrial plant is reduced through improvements in
end-use efficiency.--------------------------------------------------------------------------------------------------
There are no improvements which may be implemented in order to reduce the end-use electricity
and fuel consumption since they were introduced in the improvements made in 2005.-----------------
5.- Installation of a cogeneration system owned by industrial plant: --------------------------------------
The AM0014 Methodology establishes that the Cogeneration Plant may be owned by the user,
which is the case for Molinos. This is the CDM project scenario. ------------------------------------------
6.- Installation of a package cogeneration system owned by a company other than the industrial
plant . -----------------------------------------------------------------------------------------------------------------
Molinos Cogeneration Project is also owned by Molinos, which means that it is not a third-party
project. In some countries, there are companies called Energy Services which offer the installation
of cogeneration packages. They are responsible for the investment, operation and maintenance and
they sell electricity and heat to the industrial user. In Argentina, there are no major Cogeneration
records, and in the particular case of projects owned by third parties, there is only one case: CMS
Energy in the Cogeneration Project of CMS Ensenada. -----------------------------------------------------
In our case, this is not the project scenario or the baseline scenario. ---------------------------------------
7.- Analysis of Other Cogeneration Technologies:------------------------------------------------------------
There are other technologies to implement cogeneration cycles which have been discarded.----------
 There are cycles implemented with internal combustion engines on natural gas or dual.
These machines are usually manufactured with 3MW modules, which means that 9
machines would be required to cover the 27 MW needed. This implies significant overcosts
of infrastructure. Moreover, it is impossible to generate the 212 tonnes/h of steam with the
residual heat of such machines. Consequently, this technology has been discarded. ----------
 There are cycles implemented with gas turbines and recovery boiler. With the installation
of a 27 MW GT we would be generating 100% of the electricity needs. With exhaust gases
80 tonnes/h of steam would be generated. This means that the other 130 tonnes/h would
have to be produced in a conventional boiler or in the same recovery boiler with post-
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combustion. Besides the difference in performance, the most serious problem is that the GT
operates with natural gas or gas oil as alternative fuel. When the GT operates with gas oil,
costs are very high and the project is not economically viable. The GT uses distilled fuels
which are more expensive than the fuel oil used in a boiler.---------------------------------------
Molinos industrial process uses about 27 MW of electricity and 212 tonnes/hour of heat. This
means that with a high pressure boiler for the heat volume needed for the process, 100% of the
electricity needs of the plant may be generated. ---------------------------------------------------------------
Moreover, the alternative fuel to natural gas is fuel oil, cheaper than other distilled fuels. In
consequence, both measures indicate that the best technological choice is the one using a boiler and
a counter-pressure steam turbine. --------------------------------------------------------------------------------
For this reason, the cogeneration based on other kinds of technology is not the baseline scenario,
either. -----------------------------------------------------------------------------------------------------------------
B.- Identify the customary practices in the market for the power supply of other industrial plants
producing soy sub-products. --------------------------------------------------------------------------------------
The project activity is the first Cogeneration project in a Soy Oil plant in Argentina. No soy project
in Argentina has worked with the technology described. ----------------------------------------------------
Molinos Río de la Plata has the first soy oil extraction plant which would operate with a
Cogeneration plant. Most industrial projects generate steam in low pressure boilers, between 7 and
15 kg/cm².------------------------------------------------------------------------------------------------------------
The heat generation project using high pressure boiler is a more efficient process than customary
practices, which proves that Molinos aims to have the most efficient project of its kind in terms of
power. ----------------------------------------------------------------------------------------------------------------
In Argentina, there are a number of Soy Oil plants which operate generating heat in a boiler and
purchasing electricity from the power grid. --------------------------------------------------------------------
Molinos’ industrial plant in San Lorenzo has a milling capacity of 17,500 tonnes/day, i.e. 6,000,000
tonnes/year. Molinos increased its production capacity in December 2005. It should be pointed out
that the whole soy market has shown a strong growth in the last years. Table S.3.1. shows soy
milling in thousand tonnes per year, broken down by company. Each company has two or more oil
plants and the table shows the actual production for 2005 and forecast production for 2006 and 2007
(prepared by Molinos).---------------------------------------------------------------------------------------------
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Table S.3.1. – Soy Milling per Industrial Plant
Capacity 2005 Capacity 2006 Capacity 2007

Mtonne/year Mtonne/year Mtonne/year
BUNGE 4,862 6,375 6,375
Tancacha 945 945 945
San Martín 2,083 2,083 2,083
San Jerónimo S 608 608 608
Terminal 6 1,226 2,739 2,739
DREYFUS 3,553 4,763 5,973

Gral.Lagos 3,553 3,553 3,553
Timbues 1,210 2,420
0 0
MOLINOS 2,274 6,357 6,357
Santa Clara 712 712 712
San Lorenzo 1,562 5,645 5,645
AGD 3,672 5,548 5,548

Chabas 1,103 1,103 1,103
Terminal 6 1,220 2,732 2,732
Deheza soy/sunfl. 323 323 323
Deheza soy 1,027 1,390 1,390
CARGILL 4,518 6,665 8,631

San Martin 2,942 2,942 2,942
Buyatti 930 930 930
Reconquista 229 229 229
Bahia Blanca 185 185 185
Necochea 232 414 414
VGG 1,966 3,932
VICENTIN 2,603 5,627 5,627

Ricardone 652 652 652
Puerto 1,950 4,975 4,975
OTHERS 2,339 2,339 2,339
TOTAL 23,821 37,674 40,851
In 2005, total milling reached 23,821,000 tonnes/year, of which Molinos processed 10%. Total
milling expected for 2007 is 40,851,000 tonnes/year, of which Molinos would process 16%. This
implies that Molinos has increased its share in the soy market, but also that it is the first plant with a
cogeneration project. -----------------------------------------------------------------------------------------------
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Table S.3.2. – Soy Milling per Company Plant
Capacity 2005 Capacity 2006 Capacity 2007

BUNGE 4,862 20.41% 6,375 16.92% 6,375 15.60%
DREYFUS 3,553 14.92% 4,763 12.64% 5,973 14.62%
MOLINOS 2,274 9.55% 6,357 16.87% 6,357 15.56%
AGD 3,672 15.42% 5,548 14.73% 5,548 13.58%
CARGILL 4,518 18.97% 6,665 17.69% 8,631 21.13%
VICENTIN 2,603 10.93% 5,627 14.94% 5,627 13.78%
OTHERS 2,339 9.82% 2,339 6.21% 2,339 5.73%
TOTAL 23,821 37,674 40,851
Molinos has increased its milling capacity by building a new oil plant but so have other companies,
such as Cargill, Dreyfus, Bunge, AGD and Vicentín in the same period. However, all these plants
have continued to follow their customary practices, that is to say, generating heat in a boiler and
purchasing electricity from the power grid. --------------------------------------------------------------------
Table S.3.3. shows a detail of some of the plants mentioned above, including the electric power they
demand from the power grid. -------------------------------------------------------------------------------------
Table S.3.3.---------------------------------------------------------------------------------------------------------------------
Company Location Power (1)------------------------------------------
Cargill Puerto San Martin Plant 15 MW------------------------------------------------
Cargill Villa Gobernador Galvez Plant 13 MW------------------------------------------------
Buyatti Puerto San Martín Plant 4 MW--------------------------------------------------
Buyatti Reconquista Plant 3 MW------------------------------------------------
Vicentin San Lorenzo 20 MW------------------------------------------------
Louis Dreyfus General Lagos 22 MW------------------------------------------------
(1) Source: CAMMESA, Economic Transactions Document, April 2006- Maximum Electricity
Purchased from the grid.------------------------------------------------------------------------------------------
This proves that there are other industrial plants comparable to Molinos San Lorenzo as regards
power demand. All industrial plants producing soy flours and oils cover their power demands by
purchasing electricity from the power grid and by generating heat in a conventional boiler. ----------
Baseline Determination ------------------------------------------------------------------------------------------
The alternative analysis has been made through the study of alternatives to customary practices. The
baseline scenario is the alternative which would take place in the absence of the project activity.
The AM0014 methodology establishes a set of scenarios which may be considered as Project
Alternatives to determine the baseline scenario. ---------------------------------------------------------------
Should the project not be implemented, Molinos would operate the plant in accordance with the
customary practices of the oil industry, that is to say, by generating heat in a boiler and purchasing
electricity from the power grid. This is the way in which all the existing soy plants operate. In fact,
16
prior to the plant’s enhancement works towards the end of 2005, Molinos operated the San Lorenzo
plant in accordance with the customary practices used by the other industries. --------------------------
The installation of the cogeneration plant is not a result of the increase in milling capacity since it is
foreseen that in 2007 Argentina’s total milling will be 70% higher than that of 2005, and
notwithstanding such fact, all new industrial plants but Molinos continue to follow customary
practices. -------------------------------------------------------------------------------------------------------------
Due to the number of soy industries in Argentina, a highly competitive export market has emerged,
where other recently installed plants may operate applying the customary practices, without losing
competitiveness as a result. ---------------------------------------------------------------------------------------
Therefore, the baseline scenario corresponds to heat generation in a boiler and purchasing of
electricity from the power grid.-----------------------------------------------------------------------------------
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 CDM project activity
(assessment and demonstration of additionality): ---------------------------------------------------------
Additionality:--------------------------------------------------------------------------------------------------------
The AM0014 Methodology establishes that in order to determine the project’s additionality, the
alternative scenarios to the project must be determined first. Then, five Additionality Tests are
conducted, including an analysis of technological and institutional barriers. All the Additionality
assessment is based on a Qualitative Test. ---------------------------------------------------------------------
In the CDM Molinos Río de la Plata project, additionality is demonstrated by using the latest
version of “Tools for the demonstration and assessment of additionality” approved by the CDM
Executive Board, available at UNFCCC CDM web site. The Additionality Test described in the
AM0014 Methodology has also been included.----------------------------------------------------------------
This change is proposed since the AM0014 Methodology is limited to the use of natural gas as fuel
and Molinos’ project uses natural gas and fuel oil.------------------------------------------------------------
Step 0 - Preliminary screening based on the starting date of the project activity: ------------------------
The incorporation of the CDM into the San Lorenzo - Molinos Río de la Plata S.A. Cogeneration
Project has a set of elements that we describe hereinbelow: -------------------------------------------------
 Throughout 2005, a series of economic assessments were made for the installation of a
Cogeneration Plant in Molinos Río de la Plata. ------------------------------------------------------
 As a result of such assessments, the project’s Internal Return Rate was evaluated, with and
without the incorporation of the sale of CER future bonds in the market.-----------------------
 Said analysis was presented to the company’s Board of Directors, who analyzed the results
and on October 31, 2005 approved the investments in the cogeneration project considering
17
the revenue which may be gained from the sale of CER bonds as per Board of Directors’
Decision number 1769. ----------------------------------------------------------------------------------
 On August 8, 2006, the Environment and Sustainable Development Secretariat granted
Molinos the No-objection Letter as regards the Project Form (PIN) presented on November
10, 2005. ---------------------------------------------------------------------------------------------------
Therefore, there are clear evidences that CDM incentives to the Cogeneration Project were crucial
for the approval of the investment project. ---------------------------------------------------------------------
Step 1 - Identification of alternatives to the project activity consistent with current laws and
regulations -----------------------------------------------------------------------------------------------------------
Sub-Step 1 a . Define alternatives to the project activity -----------------------------------------------------
The alternatives to the project activity considered are those described in the “Additionality” Section
of the AM0014 Methodology and were analyzed in sub-section B.4 where the baseline scenario was
determined. ----------------------------------------------------------------------------------------------------------
1.- Industrial plant continues to operate with equipment replacement as needed and no change in
equipment efficiency (the frozen-efficiency scenario). -------------------------------------------------------
This is the baseline scenario relative to the operation of the existing industrial plant, supplying the
demand of thermal energy with a conventional boiler and purchasing electricity from the power
grid. ------------------------------------------------------------------------------------------------------------------
2.- Industrial plant continues to operate with improved efficiency new equipment at the time of
equipment replacement: -------------------------------------------------------------------------------------------
There are no improvements on the equipment and, therefore, this alternative does not apply to the
baseline scenario. ---------------------------------------------------------------------------------------------------
3.- The efficiency of boiler(s) is upgraded immediately: -----------------------------------------------------
Existing boilers are high-efficiency boilers, making replacement unnecessary. Therefore, this
alternative does not apply to the baseline scenario. -----------------------------------------------------------
4.- The heat and or electricity demand of the industrial plant is reduced through improvements in
end-use efficiency.--------------------------------------------------------------------------------------------------
There are no improvements made on the thermal and electric power in the plant. Therefore, this
alternative does not apply to the baseline scenario. -----------------------------------------------------------
5.- Installation of a cogeneration system owned by industrial plant: --------------------------------------
The AM0014 Methodology establishes that the Cogeneration Plant may be owned by the user,
which is the case for Molinos. This is the CDM project scenario. ------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
18
6.- Installation of a package cogeneration system owned by a company other than the industrial
plant. ------------------------------------------------------------------------------------------------------------------
In our case, this is not the project scenario or the baseline scenario. ---------------------------------------
7.- Analysis of Other Cogeneration Technologies:------------------------------------------------------------
The cogeneration based on other kinds of technology does not apply to the baseline scenario either,
due to the limitations set by the production process in terms of electricity and heat demand. ---------
Sub-Step 1 b. Enforcement of applicable laws and regulations: --------------------------------------------
The section above mentioned alternatives to the CDM project and it must be pointed out that there
are no legal regulations opposed to such project alternatives. -----------------------------------------------
There are no regulations opposed to the usual practices. In fact, both San Lorenzo Molinos Río de la
Plata industrial plant and other oil industries cover their power demands without the implementation
of a cogeneration project. Neither are there legal regulations promoting or offering tax incentives,
subsidies or other facilities to industries which install cogeneration projects. ----------------------------
Step 2 - Investment Analysis--------------------------------------------------------------------------------------
Investment analysis is a quantitative assessment of the CDM additionality. Notwithstanding the
fact that the implementation of a cogeneration project is not the customary practice, in order to
demonstrate that it is not a baseline scenario, a benchmark analysis will be made to prove the effect
that the revenue from the sale of carbon bonds has on the project. -----------------------------------------
Sub-step 2 a Determine appropriate analysis method: the implementation of the CDM project on the
project activity generates an improved profitability which will be analyzed. -----------------------------
The criterion used for the analysis is a benchmark: -----------------------------------------------------------
"...determine whether the proposed project activity is economically or financially less attractive
than other alternatives without the revenue from the sale of CERs" Step 2, Annex 3 to the 15
meeting of the CDM EB.-----------------------------------------------------------------------------------------
Sub-step b - Option III . Apply benchmark analysis ----------------------------------------------------------
Below is the description of a compared economic analysis with and without CDM incentives.-------
Firstly, we adopt the IRR Internal Return Rate as the most suitable financial indicator for the type of
project and the decision context. The Internal Tax Rate is widely used in the evaluation of
investment projects and will consequently be used in this analysis instead of other indicators, such
as NPV (Net Present Value) and the cost-benefit ratio. ------------------------------------------------------
The project implies an investment of USD 10,900,000, which includes the purchase of equipment
and their start-up, together with all equipment and facilities needed for their operation. ---------------
The alternatives to the project that we have considered are two: -------------------------------------------
 implementing the project without the CDM benefits -----------------------------------------------
19
 continuing with customary practices ------------------------------------------------------------------
If the project is implemented without the CDM benefits, we have an investment project with its own
Internal Return Rate. On the one hand, we have the initial investment in infrastructure. The
revenues are the result of the difference of expenses in electricity and fuel between the cogeneration
project and customary practices. ---------------------------------------------------------------------------------
Together with the CDM benefits, we consider an additional yearly revenue from the sale of the
CER bonds. By considering this additional revenue, we have an increase in the IRR. ------------------
In order to determine whether the cogeneration project’s IRR without the CDM benefits is
appropriate, a Benchmark analysis is conducted. A Benchmark is a representation of a standard rate
in the market which considers the specific risk of the kind of project. For the CDM project, the
reference rate used is the following: -----------------------------------------------------------------------------
 USA Treasury Bonds (Risk-free rate) -----------------------------------------------------------------
 S&P 500 (it includes the risk-free rate plus an expected market return) -------------------------
 Argentina’s Country Risk -------------------------------------------------------------------------------
The S&P500 rate is a reference of the performance of the 500 most important companies in USA
considered as a suitable rate to reflect private investment risk. ---------------------------------------------
On the other hand, we consider that the Country Risk Rate represents another suitable additional
rate to take into account as regards the economic risk of the region or country where the project is to
be implemented.-----------------------------------------------------------------------------------------------------
All indicators were estimated as regards the time when the decision to conduct the investment
project and the CDM project was made (August - September 2005). The analysis was made together
with the decision of the investment project. Reference values were considered, dismissing values
prior to July 2005, since the Country Risk Rate exceeded 29% as a result of the economic default of
2002. ------------------------------------------------------------------------------------------------------------------
Chart 2.b.
Financial Indicators
Baseline Scenario
S&P 500 Country Risk USA Bonds S&P 500 +
Country Risk
September 2005 10.51% 4.02% 4.25% 14.53%
August 2005 12.02% 4.18% 4.25% 16.20%
Average 11.27% 4.10% 4.25% 15.36%

Chart 2.b- shows financial indicators and the resulting IRR with and without the incentive of carbon
bonds for the most likely scenario described in detail in subsection 2.c. ----------------------------------
-------------------------------------------------------------------------------------------------------------------------
20
Cogeneration
Análisis Project
TIR Proyecto IRR Analysis
de Cogeneracion
18,00%
16,00%
14,00%
12,00%
10,00%
8,00%
6,00%
4,00%
2,00%
0,00%
Country USA S&P 500 IRR without IRR with CER
S&P 500 Riesgo
Risk
Pais Bonos
Bonds
USA S&P 500 + TIR s/CER
CER
TIR c/CER
+ Country
Riesgo
Risk Pais
As it can be observed, CDM incentives have a positive effect on the investment project’s
profitability.----------------------------------------------------------------------------------------------------------
Sub-step 2 c. Calculation and comparison of financial indicators (only applicable to options II and
III) ---------------------------------------------------------------------------------------------------------------------
2.c.1- Initial Investment: The investment project comprises the installation if a high pressure boiler
and of a counter-pressure steam turbine, the investment of which amounts to:---------------------------
1- adaptation to heat generation system USD 4,000,000
2- counter-pressure steam turbine USD 3,250,000
3- civil works USD 1,299,000
4- facilities USD 1,144,000
5- auxiliary equipment USD 842,000
6- mechanical assembly USD 160,000
7- electrical assembly USD 145,000
8- engineering and approvals USD 105,000
Total USD 10,900,000
One of the alternatives to the project is to continue with customary practices, which- as it has
already been mentioned above- includes the heat generation in a conventional boiler and the
purchasing of electricity from the power grid. In this case, the boiler is not necessarily a high
pressure 64 kg/cm² boiler, but the heat for the process may be produced in a lower pressure 15
kg/cm² boiler, with a lower cost. --------------------------------------------------------------------------------
In consequence, the implementation of the cogeneration project implies the acquisition of a high
pressure boiler, together with the turbine, accessories and assembly. -------------------------------------
For the purpose of evaluating the investment project, only the additional cost incurred on account of
the acquisition of the high pressure boiler instead of the low pressure boiler must be allocated to the
project, together with the higher costs in plant as regards water treatment and particularly the steam
turbine. ---------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
21
2.c.2.- Determination of Savings: should the cogeneration project not be implemented, the
customary practice is the generation of heat in a boiler and the purchasing of electricity from the
power grid.-----------------------------------------------------------------------------------------------------------
In such case, the industrial plant has the following power expenses: --------------------------------------
- purchasing of electricity from the power grid ----------------------------------------------
- purchasing of natural gas and fuel oil as fuel for the boiler ------------------------------
Molinos’ Gas Price: In this respect, a set of different scenarios for power and fuel prices have been
considered. Molinos Río de la Plata S.A. may acquire throughout the project natural gas and fuel oil
at different values on account of the international price of petroleum, the gas imports negotiations
with Bolivia and the domestic energy policies of Argentina. ------------------------------------------------
At the time of evaluating the project, Argentina has agreed on a gas imports price from Bolivia of
USD 5/MM BTU. This price is affected by a 50% of royalties in such country. Domestic market
prices tend to be aligned with the resulting value. Therefore, for the purposes of the project, the
following price scenarios of gas at the pit’s mouth have been considered for the purchase of
Molinos: --------------------------------------------------------------------------------------------------------------
--------------------------------------------USD 2.30/MM BTU---------------------------------------------------
--------------------------------------------USD 2.45/MM BTU---------------------------------------------------
--------------------------------------------USD 2.60/MM BTU – (1)---------------------------------------------
--------------------------------------------USD 2.75/MM BTU---------------------------------------------------
--------------------------------------------USD 3.00/MM BTU--------------------------------------------------
--------------------------------------------USD 3.15/MM BTU---------------------------------------------------
(1) Most likely value taken as a reference ----------------------------------------------------------------------
The most likely value as long-term price that we have considered is USD 2.60/MM BTU. This
value corresponds to 50% of the gas price of Bolivia placed at city gate Buenos Aires. The other
values are considered for a sensitivity analysis described in sub-step 2.d. --------------------------------
The price of gas in plant results from the sum of: -------------------------------------------------------------
- Pit’s Mouth Gas: described above.-----------------------------------------------------------
- Retained Gas: it is the natural gas additional to the plant consumption needed for
the transportation of gas. It is a fixed percent value for each transport route.---------
- Transport and Distribution: this is a value regulated and fixed by the Natural Gas
Distribution Licenses. --------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
22
-------------------------------------------------------------------------------------------------------------------------
Chart 2.c.2,-1
Natural Gas Costs Molinos Río de la
Plata
Baseline Scenario
Pit’s Mouth USD/MM BTU 2.30 2.45 2.60 2.75 3.00 3.15
$/dm3 262.37 279.48 296.59 313.70 342.22 359.33
Retained Gas $/dm3 13.12 13.97 14.83 15.69 17.11 17.97
ID Transport $/dm3 25.47 25.47 25.47 25.47 25.47 25.47
Total in Plant $/dm3 300.96 318.92 336.89 354.86 384.80 402.77
USD/MM BTU 2.64 2.80 2.95 3.11 3.37 3.53
Chart 2.c.2.-1 shows the price of gas in plant for each one of the scenarios studied, taking into
consideration the regulated values and the prices of gas at the pit’s mouth described above.----------
Fuel Cost: For the baseline scenario, the fuel consumption throughout the year depends on the
hours the plant operates on fuel oil and the hours the plant operates on natural gas. --------------------
The operating scenario which has been considered as most likely is the following:---------------------
Fuel Oil Operation: a total of 30 days per year, with a cost of USD 300/tonne.--------------------------
Interruptible Service Natural Gas Operation: 255 days per year with a cost as per the stipulations of
Chart 2.c.2.1. --------------------------------------------------------------------------------------------------------
Natural Gas Operation with Assistance: In Argentina’s gas system, soy plants purchase natural gas
with interruptible transport. This means that there are a total of 90 days of natural gas outage, as a
result of the transport congestion of the Gas Distributor. This is due to the increase of household
consumption in winter months. In actual operation, Molinos purchases assistance services, that is to
say, it purchases gas and transport from third parties, other than the Distributor. This means that of
the 90 days of gas outage, Molinos reduces to 30 days the actual time of gas outage, only using fuel
oil on 30 days per year. As regards prices, gas with transport in those shortage periods is paid at
alternative fuel costs, that is, at the cost of fuel oil. Therefore, for price purposes, there are 90 days
on which the fuel price is like that of fuel oil, that is to say USD 300/tonne, while in the operating
phase there are only 30 days of actual operation with fuel oil. ----------------------------------------------
Fuel cost in the baseline scenario can be observed in Chart 2.c.2.-2. --------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
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23
-------------------------------------------------------------------------------------------------------------------------
Chart 2.c.2.-2
Molinos Río de la Plata Natural Gas Costs
Baseline Scenario
Natural Gas Consumption 16,712.19 m3/h

Fuel Oil Consumption 14,617.07 kg/h
Operation Days per Year 345 days/year
Gas Outage Days 90 days/year
Fuel Oil Cost 300 u$s/tonne
Gas Scenario Outage Days

USD/MM BTU 75 90 105
ID Fare- Incr.0% B.P. 2.30 USD/MM BTU 2.64 18,475,077.94 19,465,841.04 20,456,604.14
Molinos’ Electricity Price: ---------------------------------------------------------------------------------------

In the Argentine Electric System, power generation is made with a set of power plants of the
following kinds:-----------------------------------------------------------------------------------------------------
- Hydroelectric ------------------------------------------------------------------------------------
- Nuclear -------------------------------------------------------------------------------------------
- Thermal-------------------------------------------------------------------------------------------
For the purposes of electricity price in the market, there is an Organization in Charge of the
Dispatch, conducted by a company named CAMMESA (Compañía Administradora del Mercado
Eléctrico Mayorista S.A., Wholesale Electrical Market Managing Company), responsible for the
requirements of the demand, the determination of the machines that generate energy hourly, while
establishing costs and prices for energy. ------------------------------------------------------------------------
Energy prices are set based on an economic dispatch, where the thermal machines are ordered from
the lowest to the highest price. Besides the efficiency of the thermal machine fixing the market
price, energy prices are in function of fuel prices. That is to say, as a result of the dispatch, there are
thermal machines which generate liquid fuel (gas oil, fuel oil), coal or natural gas. Each machine
has its specific consumption and its price depends on the price of fuels. ----------------------------------
Therefore, fuel and energy markets are interrelated. All this is intended to show that the investment
project assessments have been made based on different price scenarios of fuels used by Molinos.
But those fuels are directly related to the generation costs of electricity, which Molinos will
purchase in case the project is not implemented and it continues with customary practices.-----------
In general, thermal power plants have a purchasing volume much higher than that of industries. In
consequence, the gas purchasing price of power plants is lower than that paid by industries. On
24
these grounds, for each price scenario of gas purchase by Molinos, different cases for the price of
gas at the pit’s mouth of thermal power plants have been analyzed. ---------------------------------------
Analyzed cases include: -------------------------------------------------------------------------------------------
Molinos Pit’s Mouth Gas Factories Pit’s Mouth Gas
USD/MM BTU USD/MM BTU
2.30 2.30
2.45 2.30
2.60 2.30 (1)
2.60 2.60
2.75 2.60
3.00 2.60
3.15 2.60
(1) Most likely value taken as reference ------------------------------------------------------------------------
The rest of the analyzed cases were considered for the sensitivity analysis of the investment.
Moreover, the system’s generation costs depend on the cost of fuel and the efficiency in the
generation. Three scenarios of the system have been analyzed in a 10-year horizon in order to
evaluate the project. Molinos cogeneration plant has a specific fuel consumption of 1,094 kcal/kWh,
and such value competes in the market with the generation of different thermal power plants the
specific consumption of which varies as regards the kind of technology used.---------------------------
- Combined cycles: they are modern power plants, installed in the last 10 years, the
representative specific consumption of which is 1600 kcal/kWh, and whose power
is 800 MW per power plant. ------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
Combined Cycle Power kcal/kWh Consumption
AES Parana 845 1508
Capex 661 1808 (1)
Buenos Aires 321 1603
Central Puerto 798 1487
Doce Sud 795 1528
Genelba 674 1524
C.T.Mendoza 290 1650
S.M.Tucuman 382 1725
Costanera 851 1486
Tucuman 446 1757
(1) combined cycle with post-combustion in recovery boiler.
-------------------------------------------------------------------------------------------------------------------------
- Heat power plants: they are older power plants, installed more than 10 years ago,
the specific consumption of which is 2300 kcal/kWh, in the case of the larger plants
and whose power ranges from 500 to 1000 MW per plant. ------------------------------
----------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
25
Heat power plants Power kcal/kWh Consumption
Piedrabuena 620 2300
Guemes 261 2296
San Nicolás 650 2428
Costanera 1131 2158
-------------------------------------------------------------------------------------------------------------------------
- Open Cycle Gas Turbines: we have plants less than 10 years old, the specific
consumption of which is 2500 kcal/kWh and machines more than 10 years old with
3000 to 4500 kcal/kWh. In new power plants we are in the 300 MW range and
older machines are below the 50 MW range.-----------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
Gas Turbines Power kcal/kWh Consumption
Central Neuquén 375 2550
Pluspetrol Norte 232 2613
-------------------------------------------------------------------------------------------------------------------------
In a 10-year horizon, we expect a generation dispatch with a significant participation of combined
cycles, to a lesser extent with heat power plants and a marginal contribution of older machines.-----
Based on the future operation of the system, the Molinos cogeneration plant with 1,094 kcal/kWh
will compete in the market and we have identified three different scenarios.-----------------------------
- 1600 kcal/kWh generation --------------------------------------------------------------------
- 1800 kcal/kWh generation (1) ----------------------------------------------------------------
- 2200 kcal/kWh generation --------------------------------------------------------------------
(1) the baseline scenario of the Molinos project for a 10-year assessment is to compete with a
1800 kcal/kWh system as average machine fixing the market price.-----------------------------
The price scenarios for the purchasing of electricity by Molinos will depend on the gas price of
factories and of the average specific consumption of the system. The baseline scenario corresponds
to a gas price at the pit’s mouth of factories of 2.30 USD/MM BTU and a specific consumption of
1800 kcal/kWh. The prices of electricity in plant have been estimated based on such values for
Molinos’ project.----------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
26
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-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
Chart 2.c.2.- 3.
Molinos Río de la Plata Electricity Cost
Baseline Scenario
Cost of Gas at Pit’s Mouth in Factories 2.30 USD/MM BTU

Factories’ Average Consumption 1,800.00 kcal/kWh
Spot Energy Market Cost 21.69 USD/MWh
Cost of Dispatched Power 5.07 USD/MWh

Additional Power Charge 1.00 USD/MWh
National Energy Fund 2.00 USD/MWh
MEM Investment Fund 1.17 USD/MWh
Reserve Charge and Associated Services 2.03 USD/MWh
Dispatch Temporary Overcosts 1.03 USD/MWh
500 and 132 kV Power Transport 3.79 USD/MWh
Power Cost in Plant 37.78 USD/MWh

Power Cost without back up 31.96 USD/MWh
The plant power cost comprises generation costs and other charges on associated services and
transport. Specific charges are detailed below: ----------------------------------------------------------------
National Energy Fund: it is a tax levied on the demand created by Act 24,065. -------------------------
Additional Power Charge: it is a charge on losses in the transport system which are not function of
power flows. ---------------------------------------------------------------------------------------------------------
MEM (Wholesale Electrical Market) Investment Funds: it is a temporary charge foreseen for the
construction of a set of combined cycle power plants between 2008 and 2009. (1) ---------------------
Cost of Dispatched Power: it is charge for generators on the power made available by their
machines in the market. (1) ---------------------------------------------------------------------------------------
Dispatch Temporary Overcosts: it is a charge on overcosts for the generation with liquid fuels (1).
All these charges are proportional to the power consumption of the plant. -------------------------------
(1) The charges mentioned above may have a strong variation throughout the duration of the
project. Nevertheless, the sum of all of them is expected to remain stable. Throughout time, the
Dispatch Temporary Overcosts would be eliminated and the Wholesale Electrical Market
27
Investment Temporary Charge would also be eliminated, but the Cost of Dispatched Power would
be increased in the same volume. --------------------------------------------------------------------------------
500 kV and 132 kV Power Transport: it is the cost of transporting power from the wholesale market
to the plant. It is a value expressed in USD/MWh, but in practice it is a charge proportional to the
15-minute maximum demanded power.-------------------------------------------------------------------------
Reserve Charge and Associated Services: they are charges on market machinery in reserve,
frequency primary and secondary regulation services, start-up expenses and stoppage of steam
turbines. It is expressed in USD/MWh, even though they are charges proportional to the 15-minute
maximum demanded power. --------------------------------------------------------------------------------------
Power Cost in Plant: it is the power cost resulting from adding all the charges indicated.-------------
Power Cost without Back Up: it is the wholesale power cost, that is to say without the charges
which continue to be paid when the cogeneration starts to operate, since the grid back-up continues
to be considered. This means that the cogeneration project implementation is made with the
generation connected in parallel to the grid. Therefore, the system’s and the transport network’s
back-up charges shall continue to be paid.----------------------------------------------------------------------
Higher Costs due to Cogeneration: the implementation of Cogeneration in Molinos has the
following overcosts allocated to the project: -------------------------------------------------------------------
- higher workforce cost for the operation of the power plant, estimated at 202,597
USD/year. ----------------------------------------------------------------------------------------
- an expenditure of 150,000 USD/year in regular revisions and spare parts.------------
The cogeneration plant requires a special de-mineralized water treatment, the overcosts of which are
to be allocated to the project. Nevertheless, savings can be made in low pressure boilers as a result
of fuel savings due to the lower number of boiler water purges. --------------------------------------------
Determination of Savings: in the baseline scenario, we have the following annual expenses: ---------
- fuel used for the heat generation without turbine needed for the process. -------------
- electricity purchased from the power grid. -------------------------------------------------
When the project is implemented, we will have the following annual expenses: ------------------------
- fuel used for the heat generation with turbine----------------------------------------------
- insufficient electricity --------------------------------------------------------------------------
- electric power grid back-up in case of failure ----------------------------------------------
- higher workforce expenses --------------------------------------------------------------------
- spare parts and annual revisions of the turbine---------------------------------------------
28
The difference between both cost charts shows the project savings. The Internal Return Rate is then
estimated for the Investment and determined Savings, considering a 10-year amortization of the
equipment as it is an industrial asset and an income tax rate of 35% (general tax regime). ------------
For the most likely price scenario, the investment analysis results can be observed in Chart 2.c.2.-4.
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
Chart 2.c.2.- 4.
Molinos Río de la Plata Power Costs
IRR Base Case
1.- Investment 10,900.00 M USD
2.- Baseline Scenario

2.1.- Cost of Fuel Purchase
Natural Gas Price ID Fare- Incr.0% B.P. 2.60 USD/MM BTU
Price of gas in Plant 2.95 USD/MM BTU
Fuel Oil Cost 300.00 USD/tonne
Annual Cost of Fuels 20,659,091 USD/year
2.2.- Electricity Cost
Price of Factory Gas 1800 kcal/kWh - 2.30 USD/MM BTU - ID 0% - Spot 21.69 USD/MWh
Price of Electricity in Plant 37.48 USD/MWh
Annual Cost of Electricity 8,282,807.75 USD/year
2.3.- Cost of Electricity and Fuel
28,941,899 USD/year
3.- Project Scenario
3.1.- Cost of Fuel Purchase
Natural Gas Price ID Fare- Incr.0% B.P. 2.60 USD/MM BTU
Price of Gas in Plant 2.95 USD/MM BTU
Fuel Oil Cost 300.00 USD/tonne
Annual Cost of Fuels 24,991,793 USD/year
3.2.- Electricity Cost
Price of Factory Gas 1800 kcal/kWh - 2.30 USD/MM BTU - ID 0% - Spot 21.69 USD/MWh
Price of power without back up 31.96 USD/MWh
Annual Cost of Electricity 1,110,623.97 USD/year
3.3.- Cost of Electricity and Fuel
26,102,417 USD/year
4.- Savings
2,839,482 USD/year
Life: 10 years
Income Tax Rate: 35%
Outage Rate: 12%
Years 1 2 3 4 5 6 7 8 9 10
Investment M USD -10,900.00 -1,500.00
Savings 1,892.99 2,839.48 2,839.48 2,839.48 2,839.48 2,839.48 2,839.48 2,839.48 2,839.48
Amortizations M USD -1,090.00 -1,090.00 -1,090.00 -1,090.00 -1,090.00 -1,090.00 -1,090.00 -1,090.00 -1,090.00
Pre-tax result M USD 802.99 1,749.48 1,749.48 1,749.48 1,749.48 1,749.48 1,749.48 1,749.48 1,749.48
Income Tax M USD -281.05 -612.32 -612.32 -612.32 -612.32 -612.32 -612.32 -612.32 -612.32
Net result M USD 521.94 1,137.16 1,137.16 1,137.16 1,137.16 1,137.16 1,137.16 1,137.16 1,137.16
+ Amortizations M USD 1,090.00 1,090.00 1,090.00 1,090.00 1,090.00 1,090.00 1,090.00 1,090.00 1,090.00
Cash flow M USD -10,900.00 1,611.94 2,227.16 2,227.16 2,227.16 727.16 2,227.16 2,227.16 2,227.16 2,227.16
IRR
10 years 12.61%
The same investment analysis may be made considering the revenue from the sale of carbon bonds.
On the basis of the emission reductions forecast per year, and considering a future market value of
12 USD/tonne, the improvement in IRR (INTERNAL RETURN RATE) is of 3.50%.-----------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
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29
-------------------------------------------------------------------------------------------------------------------------
Years
1 2 3 4 5 6 7 8 9 10
Investment M us$ -10,900.00
-1,500.00
Savings tonne CO2/year 1,892.99 2,839.48

without CER
2,839.48 2,839.48 2,839.48 2,839.48 2,839.48 2,839.48 2,839.48
CER Bonds Mus$ 30,300.00 51,943.00
51,943.00 26,711.00 26,711.00 26,711.00 26,711.00 26,711.00 26,711.00
Savings Mus$ 2,256.59 3,462.80
3,462.80 3,160.01 3,160.01 3,160.01 3,160.01 3,160.01 3,160.01
Amortizations Mus$ -1,090.00 -1,090.00

-1,090.00 -1,090.00 -1,090.00 -1,090.00 -1,090.00 -1,090.00 -1,090.00
Pre-tax Mus$ 1,166.59 2,372.80
Results 2,372.80 2,070.01 2,070.01 2,070.01 2,070.01 2,070.01 2,070.01
Income Tax Mus$ -408.31 -830.48

-830.48 -724.50 -724.50 -724.50 -724.50 -724.50 -724.50
Net Result Mus$ 758.28 1,542.32

1,542.32 1,345.51 1,345.51 1,345.51 1,345.51 1,345.51 1,345.51
Amortizations Mus$ 1,090.00 1,090.00

1,090.00 1,090.00 1,090.00 1,090.00 1,090.00 1,090.00 1,090.00
Cash flow Mus$ -10,900.00 1,848,.8 2,632.322

2,632.32 2,435.51 935.51 2,435.51 2,435.51 2,435.51 2,435.51
RATIOS IRR IRR

15.81% Improvement
10years 3.20%
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
The IRR Improvement on the project results in a significant improvement, which was considered in
the Prior Consultation Mechanism filed with the Environment and Sustainable Development
Secretariat of the Nation. ------------------------------------------------------------------------------------------
Sub-step 2 d. Sensitivity analysis --------------------------------------------------------------------------------
A sensitivity analysis of the project has been conducted in function of the different scenarios of fuel
prices. The cases shown are the scenarios considered to be extreme with the lowest likelihood of
occurrence. In all cases, the IRR improvement as a result of the revenue from the sale of CER bonds
has been assessed. --------------------------------------------------------------------------------------------------
In Chart 2.d.-1 we can see the resulting IRR for other higher prices of natural gas. As fuel prices
increase, the project’s IRR improves. In general, in all power efficiency projects, the higher are fuel
prices, the higher is the return. We have analyzed the cases with the same price of gas in factories
and in Molinos and the cases where Molinos has a higher price of natural gas. In general, industries
buy gas at higher prices than factories as purchasing volumes are much lower. -------------------------
The IRR improvement in all scenarios is about 3.50%. Moreover, despite the improvement in the
IRR, the difference does not reach the level of indicators on account of country risk. ------------------
30
Chart 2.d.-1. Sensitivity Analysis ------------------------------------------------------------------------------
IRR (including the improvement on account of Carbon Bonds) --------------------------------------------
Molinos’ Gas Price Factory Gas Efficiency of IRR Improvement

Price 1800 kcal/kWh
System
IRR 10 years
2.30 2.30 18.69% 3.46%
2.60 2.60 21.03% 3.35%
2.45 2.30 17.74% 3.51%
2.60 2.30 16.77% 3.56%
2.75 2.60 20.10% 3.39%
3.00 2.60 18.54% 3.47%
3.15 2.60 17.58% 3.52%
-------------------------------------------------------------------------------------------------------------------------
The IRR improvement is estimated considering 30,828 tonnes/year of CO2. ------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
Step 3. Barrier Analysis--------------------------------------------------------------------------------------------
Sub-step 3 a. Identify barriers that would prevent the implementation of type of the proposed
project activity.------------------------------------------------------------------------------------------------------
The AM0014 methodology establishes four additionality tests that in the case of self owned
Cogeneration project activities shall be additional if all the four additionality tests result in project
being assessed, the analysis of which is described hereinbelow:--------------------------------------------
1.- Are there technological barriers to cogeneration in the country? ---------------------------------
The project activity implies the use of new technology for Molinos, with its associated risks which
may affect the normal operation of the industrial plant with economic consequences for the
company. An industrial plant such as Molinos has a continuous electricity demand every hour of the
day and a very regular heat demand. The introduction of a new technological element represents a
risk as a result of unforeseen stoppage and loss of production. ---------------------------------------------
For the operation of the cogeneration plant, specialized staff training and education will be needed,
and it will be performed by the supplier of technology (Siemens). -----------------------------------------
In Argentina, we have the following cogenerators: -----------------------------------------------------------
Argener GT 163.3 MW --------------------------------------------------------------------------------------------
CMS Ensenada GT 128 MW-------------------------------------------------------------------------------------
C.T.Mendoza GT 2*22.8 MW -----------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
These powers are relatively low as regards the system’s total demand which is over 17,000 MW.---
31
Additionality test 1 is applied by following the flow chart below. A low market share of
cogeneration means that there is insufficient infrastructure to support installation and maintenance
of such systems, acting as a technological barrier to project participants.---------------------------------
[There follow some flow charts, which I reproduce and translate on the following pages] ------------
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32
Does the country have a
study quantify its Yes Has 10% of the economic
Economic cogeneration Potential been reached?
Potential ? NO
No
No Yes Cogeneration faces

technological barriers
(1) Is installed cogeneration capacity more than 5% of total

installed thermal generating capacity? NO
(2) Is installed thermal cogeneration capacity more than 500 MW ? NO
(3) Is installed number of cogeneration more than 25 ? NO
One or more
All No Yes
Cogeneration does not face

Cogeneration faces Technological barriers
technological barriers
2.A Institutional barrier: Are there institutional barriers to cogeneration in general ? ----------
The industries installing electricity generation systems, such as cogenerators, must operate with the
back up of the grid in case of turbine unavailability. Said availability may be forced or scheduled by
maintenance. A description of energy costs in Argentina, where there is a de-regulated system for
the electrical sector, has been performed. If the industrial plant is not operating, in order to have the
grid back-up, it is necessary to pay certain charges which are proportional to the generated power.
These charges apply to the following services: ----------------------------------------------------------------
 Availability of the Transport Network (132 kV and 500 kV)--------------------------------------
 Frequency regulation and power reserve services ---------------------------------------------------
These charges are not penalties but actual costs of the electrical service in order to have certain
power available. Thus, Molinos generation costs must be compared to the grid’s generation costs,
since the other charges continue to be paid in the cogeneration scenario. ---------------------------------
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33
Does cogenerator receive preferential
tariffs, financing and/or fiscal benefits Yes Cogeneration does not face
institutional barrier A
compared to other generators? NO
No
Does cogenerator face economic penalties

when the system is down, penalties that are Yes
more onerous than those faced by other
Cogeneration faces
generators when they are down and
unjustified on a purely economic basis? Technological barriers
No
Test is inconclusive with respect to

institutional barrier A
2.B. Institutional barriers for ESCOs In Argentina there are no Energy Services Companies.
There is a very small set of energy generation projects which are not owned by the user, such as the
ones which have already been mentioned: CMS Ensenada, Argener and CT Mendoza.----------------
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34
Have energy service companies
(ESCOs) installed package
cogeneration systems at energy user'
locations? YES
No
Yes
Package cogeneration faces

Have ESCOs conducted al least 20 recent institutional barrier B
installations in the country or a number of
No
installations representing 5% of total
installed thermal generating capacity in the
country? NO
Yes
Package cogeneration does not face

institutional barrier B
2.C. Institutional barriers for Industrial Users: Industry cogeneration projects are not common
practice in Argentina. Firstly, because Argentina has historically had lower energy and fuel costs
than other regions of the world and this has created little interest in energy efficiency projects.
Secondly, there are no incentives for the industry to install efficient electricity and heat generation
plants. For the last 15 years in Argentina, all new thermal generation has been based on combined
cycles, which are high efficiency thermal power plants, using mainly natural gas.----------------------
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35
Have industrial energy users installed
package cogeneration systems at their
site locations or at any of their
No
associated companies (mother, sister,
daughter) in the same country? No
Yes
Cogeneration by industrial user

Have industrial energy users conducted at faces institutional barrier C
least 20 % of recent installations in the
No
country or a number of installations
representing 5% of total installed thermal
generating capacity in the country ? NO
Yes
Cogeneration by industrial user

does not face institutional barrier C
2.D. Barriers for the use of fuels: For the purposes of the implementation of the Molinos Río de
la Plata S.A. Cogeneration Project, it should be considered that such project is applied in a region
where the customary practice is the purchase of natural gas with interruptible transportation. At
country level, the use of gas pipelines is optimized, offering an economic signal through the fares at
which thermal-electric factories and large industries, such as soy oil industries, purchase gas from a
gas producer, with interruptible transportation service. This implies cost reduction and optimization
of gas pipelines. At times like these, when there are restrictions to the transportation of gas,
factories and large industries start using liquid fuels. Thus, the cogeneration project’s GHG
emissions increase due to the use of fuel oil, which has a higher emission factor than natural gas.
But the factories that make up the last 10% dispatched and part of the most recently installed
factories are also using liquid fuels (fuel oil and gas oil). Therefore, the electricity displacing the
cogeneration package also increases its emissions. -----------------------------------------------------------
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36
Does the cogeneration
package foresee to use natural Yes
gas as sole fuel? NO
No There are no institutional barriers

to the use of fuels (D)
If another liquid fuel such as Fuel Oil is
used, is it a customary practice of the
power market for the industry to use
alternative fuel on certain days?
Yes
No
There are institutional barriers to
the use of natural gas (D)
The test is inconclusive as regards
institutional barrier D.
Sub-step 3 b. Show that the identified barriers would not prevent the implementation of at least one
of the alternatives (except the proposed project activity)-----------------------------------------------------
The barriers mentioned above do not affect the operation of the industrial plant with the operating
mode called “customary practice”. Neither do they affect industrial growth, since all industrial
plants installed of this type cover their power supply for “customary practice”. -------------------------
Step 4. Customary practice analysis -----------------------------------------------------------------------------
Sub-step 4 a. Analysis of other activities similar to the project activity -----------------------------------
Soy oil plants have a very regular electricity and heat demand throughout the year. This makes it
possible to consider a cogeneration project, that is to say, the simultaneous generation of electricity
and heat needed for the process.----------------------------------------------------------------------------------
An oil plant with a 24 MW demand of electricity has a heat consumption of about 180 to 210
tonnes/hour. Consequently, the technology which may be used is based on a high pressure boiler
and a counter-pressure steam turbine. A gas turbine with post-combustion recovery boiler may also
be used to meet the heat demand. From the investment point of view, gas turbine projects require a
higher investment than steam turbines. Moreover, a 24 MW GT can barely generate a third of the
heat needed for the process, thus, the other two thirds must be generated with a conventional boiler
37
or with post-combustion. This means that technologically, cogeneration cycles based on gas
turbines suit best other industries that -for example- need 50 tonnes of heat with 24MW. -------------
Besides, gas supply in the industry may be performed with firm transportation or with interruptible
transportation. Molinos and the whole oil industry use interruptible transportation, thus having 30
days with total restrictions when alternative fuel must be used. The option of firm transportation and
no restrictions offers the advantage of not having gas outage, but the overcosts of transportation are
higher than the overcosts of using fuel oil. In case of gas turbines, the alternative fuel would be gas
oil, which is more onerous than fuel oil and thus results in higher generation costs. --------------------
Nevertheless, there are different industrial projects in other countries of the world which use gas
turbine technology with recovery boiler, but in general they occur in countries promoting
cogeneration (Mexico or Spain), or where there are limitations on the purchase of power from the
grid, leading the industries to self-generate energy. It also depends on relative costs of fuel, since
Argentina has had a gas cost historically lower than the rest of the world.--------------------------------
Therefore, there are no other activities similar to the project activity, such as the operation of a high
pressure boiler and a counter-pressure steam turbine which may be offered as a technical alternative
which is also economically viable.-------------------------------------------------------------------------------
Sub-step 4 b. Discuss any similar options that are occurring ------------------------------------------------
As we have already mentioned, there are no other activities similar to the project activity which
may apply. -----------------------------------------------------------------------------------------------------------
Step 5.- Impact of CDM registration ----------------------------------------------------------------------------
Molinos’ Cogeneration Project would not have occurred had it not been for the actual possibility of
rating it as a CDM Project, taking advantage of the additional revenues from the sale of carbon
bonds.-----------------------------------------------------------------------------------------------------------------
Energy generation projects in the industry do not usually represent a customary practice in any
country of the world. Argentina is no exception. Since 1991, only two cogenerations projects have
been incorporated in the industry:--------------------------------------------------------------------------------
- CMS Ensenada supplying electricity and heat to the petroleum distillery of the
former YPF La Plata.---------------------------------------------------------------------------
- Siderar Campana supplying electricity to the steel plant of “Siderúrgica Campana”
– Argener.----------------------------------------------------------------------------------------
- CT.Mendoza with YPF Lujan de Cuyo distillery. -----------------------------------------
These projects were implemented using gas turbine technology on account of the relation between
thermal and electric energy in the production process. Besides, in the case of distilleries the quality
38
needed in the electric service is generally higher than the grid’s average. The impact of failure
(service quality) on a petroleum distillery is much more critical than in a soy plant.--------------------
In Argentina, the soy milling capacity has increased in the last years with the incorporation of new
plants.-----------------------------------------------------------------------------------------------------------------
Capacity tonnes/year
10,000
8,000
6,000
4,000
2,000
0
BUNGE DREYFUS MOLINOS AGD CARGILL VICENTIN OTHER
year 2005 year 2006 year 2007
Nevertheless, Molinos is the only project different from customary practices. The Cogeneration
project was driven by the benefits that Molinos would gain from the sale of CER bonds, by its
contribution to sustainable development and by its share in the future market of carbon bonds. ------
This analysis shows that the Project Activity is additional. --------------------------------------------------
B.6. Emission reductions:----------------------------------------------------------------------------------------
B.6.1.Explanation of methodological choices: ---------------------------------------------------
This section offers a detailed description of the application of the AM0014 methodology to the
Molinos’ project, where the project emissions, the baseline emissions and the emission reductions
are estimated. -------------------------------------------------------------------------------------------------------
Project Emissions--------------------------------------------------------------------------------------------------
This section describes the application of the procedures used for the estimation of the Project
Activity emissions, following the steps described in the AM0014 methodology.------------------------
For the Project Activity scenario, the following scheme of GHG emissions per source is offered: ---
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39
CH 4 emissions from
natural gas production, Emissions of CO 2, CH 4, and N 2O
transport and distribution from fuel combustion
Factory boundary
Project Boundary
Heat
losses
Heat Food
Natural Gas
Cogeneration system Electricity
processing
Fuel Oil
Natural Gas
Boiler
Fuel Oil
Electricity from the grid
Figure B.6.1-1.- Supply Flow Chart for the Project Scenario -------------------------------------------
The Diagram of Figure B.6.1.1. shows: -------------------------------------------------------------------------
 The cogeneration system uses natural gas and fuel oil as fuel. ------------------------------------
 The cogeneration system supplies heat and electricity to the industrial plant. ------------------
 The plant may also be supplied with heat from other boilers outside the project boundary.--
 The plant may be supplied with electricity from the grid.------------------------------------------
The plant has four boilers with the following features: -------------------------------------------------------
Boiler Number 1 Boiler Number 2 Boiler Number 3 Boiler Number 4

Brand: Mellor Goodwin Nebraska Gonella Gonella
Nominal
Capacity kg/h 40,000 50,000 120,000 120,000
Maximum Operating
Pressure kg/cm² 13 13 70 70
Normal Operating
Pressure kg/cm² 11 11 64 64
Year of Assembly 1987 1995 2005 2005
-------------------------------------------------------------------------------------------------------------------------
Boilers Number 1 and 2 are outside the project boundary, while Boilers Number 3 and 4 are modern
boilers which are within the project boundary. ---------------------------------------------------------------
Figure B.6.1.2 shows the plant cogeneration diagram. -------------------------------------------------------
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40
Gas Natural
Fuel Oil
Figure B.6.1.2.- Steam Flow Chart ----------------------------------------------------------------------------

Within the project boundary we have:---------------------------------------------------------------------------
 Boilers Number 3 and 4 using natural gas and fuel oil. --------------------------------------------
 Of the 100% of useful energy of fuel, measured on the basis of the lower heating power,
just a percentage indicated by the boiler efficiency is transferred to the steam. ----------------
 The steam is produced in the boilers and supplies a 64 kg/cm² high pressure collector. ------
 Steam evolves in the steam turbine. Of the thermal energy of high pressure steam, a part
goes to the turbine and the rest to the industrial process.-------------------------------------------
 The turbine has outputs of two pressures, 7 and 12 km/cm², with nominal capacities of
166.1 and 46.9 tonnes/hour.-----------------------------------------------------------------------------
 The turbo-generator group has an efficiency guaranteed by the manufacturer; thus, we can
determine the thermal energy that is transformed into electricity in the generator’s terminal.
In the Project Activity scenario, the only emissions that we have within the Project Boundary result
from the combustion of natural gas and fuel oil in the boiler. -----------------------------------------------
In order to determine the project emissions it is necessary to monitor the consumption of the fuel
used by the cogeneration system. The variables to be measured are:---------------------------------------
HNGCh = hourly natural gas consumption (m3/h) – Measured variable corrected by LHV.-----------
HFOCh = hourly fuel oil consumption (kgr/h) – Measured variable corrected by LHV.----------------
Gas consumption is measured in delivered m3 and such volume shall be corrected to m3 equivalent
to 8,400kcal/m3 of Lower Heating Value. Fuel Oil consumption shall be considered as equivalent
to 9,800 kcal/kg of Lower Heating Value.----------------------------------------------------------------------
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41
HNGCh(m3/h) * PCING * 4,184.09 J/kcal
AECNG = h
109
AECNG = Annual energy consumption of natural gas in cogeneration system (GJ/year)
LHVNG = Lower Heating Value of Gas = 8,400 kcal/m3
HFOCh(kg/h) * LHVFO * 4,184.09 J/kcal

AECFO = h
109
AECFO = Annual energy consumption of fuel oil in cogeneration system (GJ/year)

LHVFO = Lower Heating Value of Fuel Oil = 9,800 kcal/kg
HNGCh = hourly natural gas consumption (m3/h) – Measured variable corrected by LHV
HFOCh = hourly fuel oil consumption (kgr/h) - Measured variable corrected by LHV
h = Sum of all 8760 hours of the year
Once we have the fuel consumption, the project emissions are estimated with the following
formulas, where all GHG emissions are proportional to the annual consumption of fuels:-------------
a) CO2 emission from natural gas and fuel oil combustion in cogeneration system:---------------
AECNG * EF NG + AECFO * EF FO
ECS(tonne CO2/year) =
103
where:
AECNG = annual energy consumption of natural gas in cogeneration system (GJ/year), and
EF NG = CO2 emission factor of natural gas (kg CO2/GJ, lower heating value basis)
AECFO = annual energy consumption of fuel oil in cogeneration system (GJ/year), and
EF FO = CO2 emission factor of fuel oil (kg CO2/GJ, lower heating value basis)
b) Methane emission from natural gas and fuel oil combustion in cogeneration system: --------
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42
Methane emission from natural gas and fuel oil combustion in the cogeneration system,
Emet comb (tonne CH4/year), are given for:
AECNG * MEF NG + AECFO * MEF FO

Emet comb(tonne CO4/year) =
106
where:
MEF NG = methane emission factor for natural gas combustion = 1.4kg CH4/TJ, lower heating
value basis
MEF FO = methane emission factor for fuel oil combustion = 3.0 kg CH4/TJ, lower heating value
basis
In units of carbon dioxide equivalent emission, Eequiv met comb (tonne CO2 equiv/year)
Eequiv met comb (tonne CO2/equiv/year) = Emet comb * GWP (CH4)
Where GWP (CH4) = global warming potential of methane = 21
c) Nitrous oxide emission from natural gas and fuel oil combustion in cogeneration system:-
Nitrous oxide from natural gas and fuel oil combustion in the cogeneration system, EN2O comb
(tonne N2O/year), are given for:
AECNG * NEF NG + AECFO * NEF FO

EN2O comb(tonne N2O/year) =
106
where:
NEF NG = nitrous oxide emission factor for natural gas combustion = 0.0 kg N2O/TJ, lower heating
value basis
NEF FO = nitrous oxide emission factor for fuel oil combustion = 0.3 kg N2O/TJ, lower heating value
basis
In units of carbon dioxide equivalent emission, Eequiv NO2 comb (tonne CO2 equiv/year)
Eequiv N2O comb (tonne CO2/equiv/year) = ENO2 comb * GWP (N2O)
Where GWP (N2O) = global warming potential of nitrous oxide = 310
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43
d) Methane emission from natural gas production and pipeline leaks in the transport and
distribution of natural gas, including transport within the industrial plant. ------------------------
AECNG * MLR NG
Eth fug(tonne CH4/year) =
103
where:
AECNG = annual energy consumption of natural gas in cogeneration system (GJ/year), and = 0.16
kg CH4/GJ, lower heating value basis
In units of carbon dioxide equivalent emission, Eth equiv fug (tonne CO2 equiv/year)
Eth equiv fug (tonne CO2 equiv/year) = Eth fug * GWP (CH4)
Total Project emissions are given by the sum of the components analyzed above:------------------
Etotal = ECS + Eequiv met comb +Eequiv N2O comb +Eequiv fug
ECS = CO2 emissions from natural gas and fuel oil combustion in cogeneration system
Eequiv met comb = Methane emissions from natural gas and fuel oil combustion in the cogeneration
system
Eequiv N2O comb = Nitrous oxide emissions from natural gas and fuel oil combustion in the
cogeneration system
Eequiv fug = Methane emissions from natural gas production and pipeline leaks in the transport and
distribution of natural gas, including leakage within the industrial plant.
Baseline Emission -------------------------------------------------------------------------------------------------

This section describes the application of the procedures used for the estimation of the baseline
emissions, following the steps described in the AM0014 methodology. ----------------------------------
In the baseline scenario, GHG emissions are those which would take place in the absence of project
activity. The baseline scenario is that of customary practices, that is to say, the generation of heat in
a boiler and the purchasing of electricity from the power grid. ---------------------------------------------
Figure E.4.1 shows a power supply scheme of the industrial plant for the baseline scenario.----------
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44
Factory boundary
Natural Gas Food

Boiler processing
Fuel Oil
Electricity from the grid

Figure B.6.1.3. - Baseline Scenario Flow Chart ---------------------------------------------------------------
GHG emissions for baseline scenario are: ----------------------------------------------------------------------
 (a) emissions resulting from the combustion in the boiler considering the fuels used in the
boiler: fuel oil and natural gas: -------------------------------------------------------------------------
CO2 from combustion --------------------------------------------------------------------------
CH4 from combustion --------------------------------------------------------------------------
N2O from combustion--------------------------------------------------------------------------
CH4 leaks-----------------------------------------------------------------------------------------
 (b) emissions in the power grid resulting from the electricity from the grid. -------------------
CO2 from electricity generation --------------------------------------------------------------
The baseline emissions for the first four items (a) are proportional to the natural gas and fuel oil
consumption in the factory that is offset by heat supplied by the cogeneration system. Each can be
represented as the product of an emissions factor and an energy consumption, which depends on the
heat output of the cogeneration system. -------------------------------------------------------------------------
The consumption of natural gas avoided in the baseline for the supply of heat is determined as
follows: ---------------------------------------------------------------------------------------------------------------
Annual baseline natural gas energy consumption for heat supply, ABECNG
(GJ/year)
CAHO
ABECNG =
eb
Where
ABECNG = annual baseline natural gas energy consumption for heat supply (GJ/year),
and
CAHO = annual heat output from cogeneration system (GJ/year)
eb = industrial boiler efficiency (fraction, lower heating value basis)
45
This is estimated on the basis of the heat output rate of the cogeneration system (CHOR) and an
estimate of annual operating hours (AOH) of the cogeneration system. The formula is described
below:-----------------------------------------------------------------------------------------------------------------
Annual baseline natural gas energy consumption for heat supply, ABECNG
(GJ/year)
CHORNG * AOH
ABECNG =
eb
Where
ABECNG = annual baseline natural gas and fuel oil consumption for heat supply
(GJ/year)
CHOR = cogeneration system heat output rate (GJ/h)
AOH = annual operating hour (h/year), and
eb = boiler efficiency (fraction, lower heating value basis)
Determination of fuel consumption of boiler in baseline scenario ------------------------------------------

The CHOR accounts for the amount of heat in steam thermal energy that goes to the industrial
process. Due to the energy conservation principle, we assume that of the total energy entering
through the fuel to the boiler, a part is lost in heat useless for the process that is represented by
boiler efficiency. ---------------------------------------------------------------------------------------------------
After the thermal energy that the steam has in high pressure, a part is transformed into mechanic
energy in the steam turbine and the rest is the thermal energy that goes to the process, the volume of
which we have to determine.--------------------------------------------------------------------------------------
Thermal Energy * Efficiency = Thermal Energy + Thermal Energy

Of Fuel Boiler used by process entering turbine
------------------------------------------------------------------------------------------------------------------------
Electricity = Thermal Energy * Efficiency of

Generated entering Turbine Turbo-Generator
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46
Heat losses
Heat losses
Heat to Efficiency
generator turbine 87,2%
100% Boiler Electricity
generator 96,9
Fuel Oil Efficiency
Gas Oil 93%
Heat to Industrial Plant
Heat losses
Heat losses
114,56 GJ/h
26,91 MW
710,56 GJ/h
660,82 GJ/h
Heat to Industrial Plant
546,26 GJ/h
Figure B.6.1.4. [The figure hereinabove is written in English in the original]---------------------------

Figure B.6.1.4 shows a balance of the energy of the cogeneration process:-------------------------------
 the fuel used, natural gas or fuel oil, offers 710.56 Gj/h of energy, measured over the Lower
Heating Value. --------------------------------------------------------------------------------------------
 Of the total energy of fuel, a part is transformed into 660.82 Gj/h of thermal energy
contained in high pressure steam. ----------------------------------------------------------------------
 Of the total energy contained in steam, 114.56 GJ/h is transformed in the turbo-generator
and 546.26 GJ/h goes to the industrial process as thermal energy. -------------------------------
 High pressure steam thermal energy is transformed in the turbo-generator into 99.90 GJ/h,
affected by the efficiency of the turbine and electric generator set. Such energy in thermal
units is equivalent to 26,910 kW of electric power generated by the turbine.-------------------
Variables to be measured in order to determine baseline emissions ----------------------------------------
In order to determine baseline emissions it is necessary to monitor the consumption of the fuel used
by the cogeneration system. The variables to be measured are: ---------------------------------------------
HNGCh = hourly natural gas consumption (m3/h) – Measured variable corrected by LHV.-----------
HFOCh = hourly fuel oil consumption (kgr/h) – Measured variable corrected by LHV.----------------
EEh = electricity generation (MWh) at h hour -----------------------------------------------------------------
47
Gas consumption is measured in delivered m3 and such volume must be corrected to m3 equivalent
to 8,400kcal/m3 of Lower Heating Value. Fuel Oil consumption must be considered as equivalent
to 9,800 kcal/kg of Lower Heating Value.----------------------------------------------------------------------
Determination of the consumption of fuel attributable to electricity generation -------------------------
The AM0014 methodology determines the fuel used in the baseline scenario by considering the
thermal energy which goes to the industrial process, multiplied by the annual operating hours AOH.
Applying this criterion, the consumption of each fuel in the baseline scenario is estimated as: -------
HNGCh* LHVNG * 4,184.09 (J/kcal) EEh-NG * 860 (kcal/kWh) * 4,184 (J/kcal)

ABECNG = h -
109 etg * eb * 109
ABECNG = annual baseline natural gas consumption for heat supply (GJ/year)
HNGCh = hourly natural gas consumption (m/hour), at hour h
EEh-NG = electricity generation (kWh / h) at hour h with natural gas
etg = Turbo-Generator efficiency
eb = Boiler efficiency
LHVNG = Lower Heating Value of Gas = 8,400 kcal/m3
HFOCh* LHVFO * 4,184.09 (J/kcal) EEh-FO * 860 (kcal/kWh) * 4,184 (J/kcal)

ABECFO = h -
109 etg * eb * 109
ABECFO = annual baseline fuel oil consumption for heat supply (GJ/year)
HFOCh = hourly fuel oil consumption (kg/hour), at hour h
EEh-FO = electricity generation (kWh / h) at hour h with fuel oil
etg = Turbo-Generator efficiency
eb = Boiler efficiency
LHVFO = Lower Heating Value of Fuel Oil = 9,800 kcal/m3
h = Sum of all 8760 hours of the year
Once we have the energy consumption in the boiler for the baseline scenario, the four items of the
GHG emissions may be determined as follows: ---------------------------------------------------------------
a.- baseline CO2 emission from natural gas combustion for heat supply to plant.------------------------
b.- baseline methane emissions from natural gas combustion for heat supply to plant. -----------------
c.- baseline nitrous oxide emissions from natural gas combustion for heat supply to plant.------------
d.- baseline methane emissions from natural gas production and pipeline leaks in the transport and
distribution. ----------------------------------------------------------------------------------------------------------
48
a) Baseline emission of CO2 from natural gas and fuel oil combustion for heat supply to plant.
ABECNG * EF NG + ABECFO * EF FO
BEth(tonne CO2/year) =
103
where:
ABECNG = annual baseline natural gas consumption for heat supply (GJ/year), and
EF NG = CO2 emission factor of natural gas (kg CO2/GJ, lower heating value basis)
ABECFO = annual baseline fuel oil consumption for heat supply (GJ/year), and
EF FO = CO2 emission factor of fuel oil (kg CO2/GJ, lower heating value basis)
b) Baseline methane emission from natural gas and fuel oil combustion for heat supply to
plant. ----------------------------------------------------------------------------------------------------------------
Baseline methane emission from natural gas and fuel oil combustion for heat supply,
BEmet comb (tonne CH4/year), are given for:
ABECNG * MEF NG + ABECFO * MEF FO

BEmet comb(tonne CO4/year) =
106
where:
ABECNG = annual baseline natural gas energy consumption for heat supply (GJ/year), and
MEF NG = methane emission factor for natural gas combustion = 1.4kg CH4/TJ, lower heating
value basis
ABECFO = annual baseline fuel oil energy consumption for heat supply energy (GJ/year), and
MEF FO = methane emission factor for fuel oil combustion = 3.0 kg CH4/TJ, lower heating
value basis
In units of carbon dioxide equivalent emission, BEequiv met comb (tonne CO2 equiv/year)
BEequiv met comb (tonne CO2/equiv/year) = BEmet comb * GWP (CH4)
c) Baseline nitrous oxide emission from natural gas and fuel oil combustion for heat supply to
plant. -----------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
49
Baseline nitrous oxide emission from natural gas and fuel oil combustion for heat supply to
plant BEN2O comb (tonnes N2O/year), are given for:
ABECNG * NEF NG + ABECFO * NEF FO

BEN2O comb(tonnes N2O/year) =
106
where:
ABECNG = annual baseline natural gas energy consumption for heat supply (GJ/year), and
NEF NG = nitrous oxide emission factor for natural gas combustion = 0.0 kg N2O/TJ, lower heating
value basis
ABECFO = annual baseline fuel oil energy consumption for heat supply (GJ/year), and
NEF FO = nitrous oxide emission factor for fuel oil combustion = 0.3 kg N2O/TJ, lower heating value
basis
In units of carbon dioxide equivalent emission, BEequiv NO2 comb (tonnes CO2 equiv/year)
BEequiv N2O comb (tonnes CO2/equiv/year) = BENO2 comb * GWP (N2O)
Where GWP (N2O) = global warming potential of nitrous oxide = 310
Leakage Emission --------------------------------------------------------------------------------------------------

d) Baseline methane emission from natural gas production and pipeline leaks in the transport
and distribution of natural gas, including leakage within the industrial plant. ---------------------
ABECNG * MLR NG
BEth fug(tonnes CH4/year) =
103
where:
ABECNG = annual baseline energy consumption of natural gas in cogeneration system (GJ/year),
and
MLR NG = MLRng = 0.16 kg CH4/GJ, lower heating value basis
In units of carbon dioxide equivalent emission, Eth equiv fug (tonne CO2 equiv/year)
BEth equiv fug (tonne CO2 equiv/year) = BEth fug * GWP (CH4)
----------------------------------------------------------------------------------------------------------------------
50
e) Baseline emission of CO2 from electricity supply to industrial plant, that is offset by
electricity supplied from cogeneration system--------------------------------------------------------------
The BEFelec emission factor from the grid is estimated following the procedure described in
ACM0002 Methodology considering the following options:------------------------------------------------
1.- Dispatch Data Analysis: For the Operating Margin calculation, the detailed calculation based on
the hydrothermal dispatch data has been chosen. This is due to the fact that Molinos’ project is not a
small-scale project and we have the data needed to implement the calculation.--------------------------
2.- Build Margin Emission Factor: Option 2 has been chosen, that is "For the first crediting period,
the Build Margin emission factor EFBM,y must be updated annually ex-post for the year in which
actual project generation associated emissions reductions occur. For subsequent crediting periods,
EFBM,y should be calculated ex-ante, as described in option 1 above”.-------------------------------------
3.- The set of machines which will be used for the Build Margin calculation correspond to those
machines most recently built, generating 20% of the total generation of the system. -------------------
4.- WOM y WBM weight factors are adopted equal to 0.5. ----------------------------------------------------
Operating Margin
EOM,y
EFOM, y =
EGy
EFOM,,y = the dispatch data Operation Margin emission factor
EGy = generation of the project (MWh) in year y
EOM,y = h EGh * EFDD,h

EGh = generation of the project (MWh) in each hour h
EFDD,h = hourly generation-weighted average emissions per electricity unit
(tonneCO2/MWh) of the set power plant (n) in the top 10% of grid system dispatch order
during hour h:
i,n Fi,n,h * COEFi,n
EFDD,h =
n GENn,h
Fi,n,h = is the amount of fuel i (in a mass or volume unit) consumed by relevant power source
j in year(s) y
COEFi,n = is the CO2 emission coefficient of fuel i (tCO2 / mass or volume unit of the fuel),
taking into account the carbon content of the fuels used by relevant power source j, and the
percent oxidation of the fuel in year(s) y
GENn,h = is the electricity (MWh) delivered to the grid by source j.
51
Build Margin
i,m Fi,m,h * COEFi,m

EFBM,y =
m GENm,h
Fi,n,h = is the amount of fuel i (in a mass or volume unit) consumed by relevant power source
j in year(s) y for plants m
COEFi,m = is the CO2 emission coefficient of fuel i (tCO2 / mass or volume unit of the fuel),
taking into account the carbon content of the fuels used by relevant power source j, and the
percent oxidation of the fuel in year(s) y
GENm,h = is the electricity (MWh) delivered to the grid by source j.
BEFelec = (WOM * EFom,y + WBM * EFBM,y) * 103
EFOM,,y = the dispatch data Operation Margin emission factor (tonnes CO2/MWh)
EFBM,,y = the dispatch data Build Margin emission factor (tonnes CO2/MWh)
BEFelec = Baseline Emission Factor (kg CO2/MWh)
h EEh
AEG =
103
AEG * BEFelec
BEelec (tonnes CO2/year) =
103
EEh = Electricity Generated in hour h (kWh)

AEG = annual electricity generation (MWh/year)
BEFelec = Baseline emission factor - electrical grid (kg CO2/MWh)
BEelec = Baseline emission - electrical grid (tonnes CO2/year)
Total Project emissions are given by the sum of the components analyzed above: ----------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
52
BEtotal = BEth + BEequiv met comb +BEequiv N2O comb +BEequiv fug+BEelec
BEth = Baseline CO2 emissions from natural gas and fuel oil combustion for heat supply to
plant.
BEequiv met comb = Baseline methane emissions from natural gas and fuel oil combustion for heat
supply to plant
BEequiv N2O comb = Baseline nitrous oxide emissions from natural gas and fuel oil for heat supply
to plant.
BEequiv fug = Baseline methane emissions from natural gas production and pipeline leaks in the
transport and distribution of natural gas, including leakage within the industrial plant. For heat
supply to plant.
Emission Reductions: ----------------------------------------------------------------------------------------------

Emission reductions are calculated as the difference between baseline and project emissions. Project
emissions are those associated with natural gas consumption by the cogeneration system, including
CO2, CH4 and N2O emissions from natural gas and fuel oil combustion and CH4 emissions from
natural gas production, transport and distribution, associated with the gas consumption of the
cogeneration system. -----------------------------------------------------------------------------------------------
B.6.2. Data and parameters that are available at validation:---------------------------------
This section includes a compilation of information on the data and parameters that are not
monitored throughout the crediting period but that are determined only once and thus remain fixed
throughout the crediting period. ---------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
Methane Emission Factor (MEF): it is an emission factor, resulting from the natural gas and fuel oil
combustion, which has been adopted from the IPCC Guidelines. ------------------------------------------
Data / Parameter:------ MEF met NG --------------------------------------------------------------------------
Data unit:----------------- tonne CH4/TJ ----------------------------------------------------------------------
Description:-------------- Methane emission factor - Natural Gas-----------------------------------------
Source of data used: Table 1.16 – Industrial Boiler Performance – Page 1.54 – Revised 1996
----------------------------- IPCC Guidelines for National Greenhouse Gas Inventories: Reference
----------------------------- Manual – Natural Gas – Large Boilers------------------------------------------
Value applied:----------- 1.40-----------------------------------------------------------------------------------
Justification of the The value published in the IPCC Guidelines mentioned above was
choice of data or considered since there are no actual measurements or national data
description of sources.------------------------------------------------------------------------------
measurement methods ----------------------------------------------------------------------------------------
and procedures actually ----------------------------------------------------------------------------------------
applied :------------------ ----------------------------------------------------------------------------------------
Any comment:----------- ----------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
53
Data / Parameter:------ MEF met FO---------------------------------------------------------------------------
Data unit:----------------- tonne CH4/TJ ----------------------------------------------------------------------
Description:-------------- Methane emission factor - Fuel Oil ---------------------------------------------
Source of data used:----- Table 1.16 – Industrial Boiler Performance – Page 1.54 – Revised 1996
Value applied:----------- 3.00----------------------------------------------------------------------------------
description of sources.------------------------------------------------------------------------------
measurement methods ---------------------------------------------------------------------------------------
applied: ------------------ --------------------------------------------------------------------------------------
Any comment: ---------- ---------------------------------------------------------------------------------------
Nitrous Oxide Emission Factor: it is an emission factor, resulting from the natural gas and fuel oil
combustion, which has been adopted from the IPCC Guidelines. ------------------------------------------
Data / Parameter:------ NEF NO2 NG --------------------------------------------------------------------------
Data unit:----------------- tonne NO2/TJ -----------------------------------------------------------------------
Description:-------------- Nitrous Oxide emission factor - Natural Gas-----------------------------------
Source of data used:----- Table 1.16 – Industrial Boiler Performance – Page 1.54 – Revised 1996
Value applied: ----------- 0.00 ----------------------------------------------------------------------------------
description of sources. -----------------------------------------------------------------------------
applied :------------------- ----------------------------------------------------------------------------------------
Any comment:----------- ----------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
Data / Parameter:------ NEF NO2 FO --------------------------------------------------------------------------

Data unit: ---------------- Tonne NO2/TJ----------------------------------------------------------------------
Description: ------------- Nitrous Oxide emission factor – Fuel Oil.-------------------------------------
Source of data used: ---- Table 1.16 – Industrial Boiler Performance – Page 1.54 – Revised 1996
Value applied: ----------- 0.30 ----------------------------------------------------------------------------------
description of sources. -----------------------------------------------------------------------------
applied: ------------------ ----------------------------------------------------------------------------------------
Any comment: ---------- ----------------------------------------------------------------------------------------
Methane emissions as a result of natural gas production, transport and distribution: these emissions
are proportional to the gas used in plant (ABECNG and AECNG). -------------------------------------------
54
Data / Parameter:------ MRL ---------------------------------------------------------------------------------
Data unit: ---------------- kg CH4/GJ --------------------------------------------------------------------------
Description: ------------- Methane leakage from natural gas production, pipelines and distribution.-
Source of data used: ---- Table1-64 Page1.131 revised 1996 IPCC Guidelines for National
----------------------------- Greenhouse Gas Inventories – Reference manual-----------------------------
Value applied: ----------- 0.16 kg CH4/GJ --------------------------------------------------------------------
Justification of the Emission Type Emission Factor
choice of data or kg/petaJoule
description of Gas Production 39,590 – 96,000
measurement methods
and procedures actually Gas Processing, Pipeline
applied : ------------------ and Distribution 116,610 – 340,000
----------------------------- The values adopted in this PDD are conservative and estimated in values
----------------------------- close to the lower limit of 40,000 + 120,000 kg CH4/petaJoule = 0.16 kg
----------------------------- CH4/GJ ------------------------------------------------------------------------------
Any comment: ---------- ----------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
B.6.3 Ex-ante calculation of emission reductions:----------------------------------------------
Project Activity Emissions ----------------------------------------------------------------------------------------
Once the fuel consumption of the cogeneration plant has been determined, the project emissions can
be estimated by applying the stipulations of the AM0014 methodology. Fuel consumption,
estimated ex-ante, is determined from the design parameters of the cogeneration plant, conducting a
thermal-dynamic analysis of the thermal cycle. The results are shown below: ---------------------------
1.- Electricity from the Grid 0.00 MWh/year
2.- Hourly Fuel Consumption

Natural Gas 20,217.13m3/hour
Fuel Oil 17,682.62kg/hour
3.- Annual Operation 8,280.00 hour/year
Actual 100% Day with Fuel Oil 30.00 days

Actual Hours of operation with F.O. 720.00 hours/year
Hours of operation with N.G. (1) 7,560.00 hours/year
4.- Annual Fuel Consumption

Natural Gas 152,841,513.98m3/year
1.28E+12kcal/year
5,371,822.26GJ/year
F.O. 12,731,488.04kg/year
1.25E+11kcal/year
522,042.98GJ/year
55
a.- CO2 emission from natural gas combustion for heat supply to plant: CO2 emissions from
combustion are proportional to the amount of fuel per year used. -----------------------------------------
E th (tonnes CO
2
/year) = AEC
NG * EFNG / 1,000 = 301,359.23 ton CO2/year
EF NG = 56,10 kg CO2/G J
AECNG = 5.371.822,26 GJ/year
CO2 emission from fuel oil combustion for heat supply to plant---------------------------------------
-------------------------------------------------------------------------------------------------------------------------
E th (tonnes CO2 /year) = AECFO * EFFO / 1,000 = 40,580.14 tonnesCO2/year
EF FO = 77.73 kg CO2/G J
AECFO = 522,042.98 GJ/year
TOTAL--------------------------------------------------------------------------------------------------------------
CO2 emission from Natural Gas Fuel Oil Total

E th (tonnes CO2/year) 301,359.23 40,580.14 341,939.37
------------------------------------------------------------------------------------------------------------------------
b.- Methane emission from natural gas combustion for heat supply, E met comb (tonnes
CH4/year) ----------------------------------------------------------------------------------------------------------
E met comb (tonnes CH

4/year) = AECNG * MEFNG / 1,000,000 = 7.52 tonnesCH4/year
MEF NG= 1.40 ton CH4/T J

AECNG = 5,371,822.26 GJ/year
E equiv met comb (tonne CO2 - equiv/year) = Emet comb * GWP(CH4) = 157.93 tonnes CO
2/year
GWP (CH4) = 21
------------------------------------------------------------------------------------------------------------------------
Methane emission from fuel oil combustion for heat supply, E met comb (tonnes CH4/year)----
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
56
E met comb (tonnes CH
4/year) = AECFO * MEF FO/ 1,000,000 = 1.57 tonnes CH
4/year
MEF FO = 3.00 ton CH4/T J

E equiv met comb (tonnesCO2 - equiv/year) = Emet comb * GWP(CH4) = 32.89 tonnes CO
2/year
GWP (CH4) = 21
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
TOTAL --------------------------------------------------------------------------------------------------------------
Methane emission fromNatural Gas Fuel Oil Total

E equiv met comb (tonnes CO
2 - equiv/year) 157.93 32.89 190.82
------------------------------------------------------------------------------------------------------------------------
c.- Nitrous oxide emission from natural gas combustion for heat supply, E NO2 comb (tonnes
NO2/year) -----------------------------------------------------------------------------------------------------------
E N2O comb (ton N2O/year) = AEC
NG * NEFNG / 1,000,000 = 0,00 ton N2O/year
NEFNG= 0,00 kg N2O/T J

AECNG = 5.371.822,26GJ/year
E equiv N2O comb (ton CO2 - equiv/year) = E

N2O comb * GWP(N2O) = 0,00 ton CO2/year
GWP (N2O) = 310
Nitrous oxide emission from fuel oil combustion for heat supply, E NO2 comb (tonnes
NO2/year)
E N2O comb (tonnes N

2O/year) = AECFO * NEFFO / 1,000,000 = 0.16 tonnes N
2O/year
NEFFO = 0.30 kg N2O/T J

E equiv N2O comb (tonnesCO2 - equiv/year) = EN2O comb * GWP(N2O) = 3.29 tonnes CO
2/year
GWP (N2O) = 310
------------------------------------------------------------------------------------------------------------------------
57
TOTAL -------------------------------------------------------------------------------------------------------------
Nitrous Oxide emission from Natural Gas Fuel Oil Total

E N2O comb (tonnes CO
2 - equiv/year) 0,00 3.29 3.29
------------------------------------------------------------------------------------------------------------------------
d.- Methane emission from natural gas production and pipeline leaks in the transport and
distribution ---------------------------------------------------------------------------------------------------------
E th fug (tonnes CH
4/year) = AECNG * MLRNG / 1,000 = 859.49 tonnes CH
4/year
MLRNG = 0.16 kg CH4/GJ

AECNG = 5,371,822.26 GJ/año
E th equiv fug (tonnes CO

2 - equiv/year) = Eth fug * GWP(CH4) = 18,049.32 tonnes CO
2/year
GWP (CH4) = 21
------------------------------------------------------------------------------------------------------------------------
Total Emissions for Project Scenario -----------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
E th (tonne CO2/year) 341,939,37

E equiv met comb (tonne CO2 - equiv/year) 190.82
E NO2 comb (tonne CO2 - equiv/year) 3.29
E th equiv fug (tonne CO 2 - equiv/year) 18,049.32
E elec (tonne CO 2/year) 0.00
E total (tonne CO2/year) 360,182.80
------------------------------------------------------------------------------------------------------------------------
We can observe the volume of the CO2 emissions for each of the estimated items, which clearly
shows that most of the emissions result from combustion.---------------------------------------------------
Baseline Emissions: For the baseline scenario, CO2 emission ex-ante calculations have been made,
considering again a thermal-dynamic analysis of the thermal cycle, which has offered the following
results: ----------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
58
1.- Electricity from the Grid 222,885.45 MWh/year
2.- Hourly Fuel Consumption

Natural Gas 16,712.19 m3/hour
Fuel Oil 14,617.07 kg/hour
3.- Annual Operation 8,280.00 hours/year
Actual 100% Day with F.O. 30.00 days

Actual hours of operation with F.O. 720.00 hours/year
Hours of operation with N.G. (1) 7,560.00 hours/year
4.- Annual Fuel Consumption

Natural Gas 126,344,147.40 m3/year
1.06E+12 kcal/year
4,440,536.38 GJ/year
F.O. 10,524,293.83 kg/year
1.03E+11 kcal/year
431,539.01 GJ/year
------------------------------------------------------------------------------------------------------------------------
a.- Baseline CO2 emission from natural gas and fuel oil combustion for heat supply to plant:
CO2 emissions resulting from the use of fossil fuels are calculated in function of the emission factor
for each type of EFfuel. The fuels used in the project are natural gas and fuel oil and the emission
factors used are detailed in Annex 3. ----------------------------------------------------------------------------
NATURAL GAS---------------------------------------------------------------------------------------------------
BE th (tonnes CO2/year) = ABECNG * EFNG / 1,000 = 249,114.09 tonnes CO2/year
EF NG = 56.10 kg CO2/G J
ABECNG = 4,440,536.38 GJ/year
-----------------------------------------------------------------------------------------------------------------------
EF NG = emission factor from natural gas in tonnes CO2/TJ---------------------------------------------------------------------------
ABECNG = annual baseline natural gas energy consumption for heat supply (GJ/year) ------------------------------------------
FUEL OIL ----------------------------------------------------------------------------------------------------------
59
BE th (tonnes CO2/year) = ABECFO * EFFO / 1,000 = 33,544.97 tonnes CO2/year
EF FO = 77.73 kg CO2/G J
ABECFO = 431,539.01 GJ/year
------------------------------------------------------------------------------------------------------------------------
EF FO = emission factor from Fuel Oil in tonnes CO2/TJ ------------------------------------------------------------------------------
ABECFO = annual baseline fuel oil energy consumption for heat supply (GJ/year) -----------------------------------------------
TOTAL --------------------------------------------------------------------------------------------------------------
Baseline CO 2 emission from Natural Gas Fuel Oil Total

BE th (tonnes CO2/year) 249,114.09 33,544.97 282,659.06
------------------------------------------------------------------------------------------------------------------------
b.- Baseline methane emissions from natural gas combustion for heat supply to plant:----------
As product of combustion in the boiler, methane is produced and its emissions are estimated in
function of the consumption of each fuel. ----------------------------------------------------------------------
NATURAL GAS---------------------------------------------------------------------------------------------------
BE met comb (tonnes CH

4/year) = ABECNG * MEFmet - NG / 1,000,000 = 6.22 tonnes CH
4/year
MEFmet - NG = 1.40 tonnes CH

4/T J
BE equiv met comb (tonnes CO

2 - equiv/year) = BEmet comb * GWP(CH4) = 130.55 tonnes CO
2/year
GWP (CH4) = 21
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
FUEL OIL ----------------------------------------------------------------------------------------------------------
60
BE met comb (tonnes CH
4/year) = ABECFO * MEFmet - FO / 1,000,000 = 1.29 tonnes CH
4/year
MEF met - FO= 3.00 tonnes CH

4/T J
BE equiv met comb (tonne CO2 - equiv/year) = BEmet comb * GWP(CH4) = 27.19 tonnes CO
2/year
GWP (CH4) = 21
------------------------------------------------------------------------------------------------------------------------
TOTAL --------------------------------------------------------------------------------------------------------------
Baseline CO2 emission from Natural Gas Fuel Oil Total

BEequiv met comb (tonnes CO
2 - equiv/year) 130.55 27.19 157.74
c.- Baseline nitrous oxide emissions from natural gas and fuel oil combustion for heat supply
to plant. --------------------------------------------------------------------------------------------------------------
As product of combustion in the boiler, nitrous oxide is produced and its emissions are estimated in
function of the consumption of each fuel. ----------------------------------------------------------------------
NATURAL GAS---------------------------------------------------------------------------------------------------
BE N2O comb (tonnes N

2O/year) = ABECNG * NEFN2o - NG / 1,000,000 = 0.00 tonnes N
2O/year
NEF N2O - NG = 0.00 kg N2O/T J

BE equiv N2O comb (tonnes CO

2 - equiv/year) = BEN2O comb * GWP(N2O) = 0.00 tonnes CO
2/year
GWP (N2O) = 310
----------------------------------------------------------------------------------------------------------------------
FUEL OIL --------------------------------------------------------------------------------------------------------
BE N2O comb (tonnes N2O/year) = ABEC FO * NEF N2O - FO/ 1,000,000 = 0.13 tonnesN2O/year
NEF N2O - FO = 0.30 kg N2O/T J

BE equiv N2O comb (tonnes CO2 - equiv/year) = BE N2O comb * GWP (N2O) = 2.72 tonnes CO2/year
GWP (N2O) = 310
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
61
TOTAL --------------------------------------------------------------------------------------------------------------
Baseline CO2 emission from Natural Gas Fuel Oil Total

BE N2O comb (tonnes CO
2 - equiv/year) 0.00 2.72 2.72
------------------------------------------------------------------------------------------------------------------------
d.- Baseline methane emissions from natural gas production and pipeline leaks in the
transport and distribution.------------------------------------------------------------------------------------
Methane emissions resulting from production, transport and distribution of natural gas are
proportional to the gas used in plant (ABECNG). --------------------------------------------------------------
BE th fug (tonnes CH
4/year) = ABECNG * MLR / 1,000 = 710.49 tonnes CH
4/year
MLR = 0.16 kg CH4/GJ

BE th equiv fug (tonnes CO

2 - equiv/year) = BEth fug * GWP(CH4) = 14,920.20 tonnes CO
2/year
GWP (CH4) = 21
-----------------------------------------------------------------------------------------------------------------------
e.- Baseline emission of CO2 from electricity supply to industrial plant, that is offset by
electricity supplied from cogeneration system -------------------------------------------------------------
When the project activity is developed, the plant is generating 26.91 MW of electric power. ---------
In the baseline scenario, such electricity is purchased from the power grid and therefore we must
estimate the grid emissions in such case. Molinos Cogeneration Project comprises the generation of
energy of over 15 MW, which means that this is not a small-scale project. ------------------------------
For the calculation of GHG emissions from the grid which displaces the cogeneration project the
method of the Consolidated Methodology ACM0002, “Consolidated baseline methodology for grid-
connected electricity generation from renewable source” is used, with a detailed analysis of the
hydro-thermal dispatch.--------------------------------------------------------------------------------------------
In the methodology used for this project, AM0014, the grid emissions are estimated with a
simplified calculation method, which is applicable to small-scale projects, with generation powers
below 15 MW. The project of Molinos Río de la Plata foresees a generation of 26.91 MW and we
consider it appropriate to use a calculation method based on the actual dispatch of hydro-thermal
generation of the electric system. --------------------------------------------------------------------------------
The electric system (grid) emissions are calculated following the steps of the procedure described in
the ACM0002 Methodology: (C) dispatch data analysis OM. The data detailing the hydro-thermal
dispatch is processed and loaded onto a spreadsheet containing the different reports with an hourly
detail of: --------------------------------------------------------------------------------------------------------------
62
- machines comprising the last 10% of the dispatch and their respective emissions,
detailed per machine. --------------------------------------------------------------------------
- hourly emissions of the whole set of machines comprising the last 10% dispatched.
- hourly emissions of each one of the power plants comprising the set of machines
considered for the Build Margin estimation (see Table E.4.1.). -------------------------
Table E.4.1. – Machines Considered for the Build Margin ----------------------------------------------
Installation Power MW
Date
Cacheuta Hydro Apr-02 120.0
Pluspetrol Norte 2 GT Mar-02 232.0
Pluspetrol CT San Miguel de Tucuman CC Feb-02 382.2
AES Parana CC Sep-01 845.3
Central Dock Sud CC Feb-01 797.6
-------------------------------------------------------------------------------------------------------------------------
The operating margin comprises 10% of the last machines dispatched on an hourly basis (in
accordance with the order of dispatch), while the Build Margin is estimated with the most recently
installed machines comprising 20% of the energy demanded (MWh). ------------------------------------
We can thus estimate CO2 emissions which are displaced as a result of the electricity generation on
account of project activity. The calculation procedure is detailed in Annex 4. ---------------------------
The emission factors adopted are detailed in Annex 3. -------------------------------------------------------
The combined margin for 2005 was: ----------------------------------------------------------------------------
BEF elec = 513.21 kg CO2/MWh ---------------------------------------------------------------------------------
BE elec (tonnes CO2/year) =AEG * BEFelec / 1,000 = 114,387.04 tonnes CO2/year
AEG = 222,885.45 MWh/year

BEF elec = 513.21 kg CO2/MWh
------------------------------------------------------------------------------------------------------------------------
The project activity foresees an electricity generation of 222,885.45 MWh/year, which means
emission reductions of the project based on 2005 of: ---------------------------------------------------------
f.- Total emission in the baseline scenario -------------------------------------------------------------------
BE th (tonnesCO2/year) 282,659.06
BE equiv met comb (tonnes CO 2 - equiv/year) 157.74
BE N2O comb (tonnes CO 2 - equiv/year) 2.72
BE th equiv fug (tonnes CO 2 - equiv/year) 14,920.20
BE elec (tonnes CO 2/year) 114,387.04
BE total (tonnes CO 2/year) 412,126.76
63
Emission Reduction ------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
The emission reduction is calculated as the difference between the baseline emissions and the
project emissions.---------------------------------------------------------------------------------------------------
Baseline Total Emission (tonne CO 2/year) 412,126.76

Cogeneration Project Emission (tonne CO 2/year) 360,182.80
Emission Reduction (tonne CO 2/year) 51,943.95
B.6.4 Summary of the ex-ante estimation of emission reductions:-------------------

Molinos estimates that from 2007 to 2009, emission reduction will reach the value estimated in
section B.6.3, that is, 51,943 tonnes CO2/year. Throughout 2007, the plant will solely operate
during 8 months as from May.------------------------------------------------------------------------------------
As from 2010, Molinos estimates that the emission reduction will be lower, of about 26,711 tonnes
CO2/year, the estimation of which is identical to the one described in section B.6.3. unless SADI
emissions are reduced to 0.4 tonnes CO2/MWh. This is due to the introduction of new, more
efficient generation, which will use natural gas as fuel. ------------------------------------------------------
B.7 Application of the monitoring methodology and description of the monitoring plan:-------
----------------------------------------------------------------------------------------------------------------------
B.7.1 Data and parameters monitored: --------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
Data / Parameter:------ HNGCh-----------------------------------------------------------------------------
Data unit: m3/hora -----------------------------------------------------------------------------
Description: ------------- Hourly consumption of natural gas ---------------------------------------------
Source of data to be Measurement in Molinos----------------------------------------------------------
used: --------------------- ----------------------------------------------------------------------------------------
Value of data applied ----------------------------------------------------------------------------------------
for the purpose of ----------------------------------------------------------------------------------------
calculating expected ----------------------------------------------------------------------------------------
emission reductions in ----------------------------------------------------------------------------------------
section B.5 --------------- ----------------------------------------------------------------------------------------
Description of The natural gas consumption per boiler is measured, with a meter of the
measurement methods following features:-----------------------------------------------------------------
and procedures to be Type: Concentric Inlet. ----------------------------------------------------------
applied:------------------- Material: AISI 316 ----------------------------------------------------------------
----------------------------- Assembly: Between flanges -----------------------------------------------------
----------------------------- Pressure: 3 bar ---------------------------------------------------------------------
----------------------------- Temperature: 20 C-----------------------------------------------------------------
----------------------------- Maximum capacity: 12,000 m3/h (standard)-----------------------------------
----------------------------- Brand: Welsz------------------------------------------------------------------------
64
QA/QC procedures to Uncertainty level of data: low ---------------------------------------------------
be applied: --------------- Natural gas consumption in m3/h is corrected to gas values of m3/h of
----------------------------- 8400 kcal/m3 Lower Heating Value. The correction factor is obtained
----------------------------- from the Gas Distribution company, which provides a monthly report.----
---------------------------- ----------------------------------------------------------------------------------------
Any comment: ---------- ----------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
Data / Parameter:------ HFOCh -----------------------------------------------------------------------------
Data unit: ---------------- Kg/hour-----------------------------------------------------------------------------
Description: ------------- Hourly consumption of fuel oil---------------------------------------------------
used: ---------------------- ----------------------------------------------------------------------------------------
section B.5 --------------- ---------------------------------------------------------------------------------------
Description of The natural gas consumption per boiler is measured, with a meter of the
measurement methods following features: ----------------------------------------------------------------
and procedures to be Type: Masico – Coriolis ----------------------------------------------------------
applied:------------------- Material: Carbon Steel ------------------------------------------------------------
----------------------------- Assembly: Between flanges – 1: 970 mm -------------------------------------
----------------------------- Pressure: 12 bar -------------------------------------------------------------------
----------------------------- Temperature: 150 C --------------------------------------------------------------
----------------------------- Maximum capacity: 0 a 55,200 m3/h (standard) ------------------------------
----------------------------- Brand: ABB ------------------------------------------------------------------------
be applied: --------------- Fuel Oil consumption in kg/h will be considered as equivalent to 9,800
----------------------------- kcal/kg of Lower Heating Value. The Fuel Oil Heating Value is informed
----------------------------- by the fuel supplier.----------------------------------------------------------------
Any comment: ---------- ---------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
Data / Parameter:------ EEh ----------------------------------------------------------------------------------
Data unit: ---------------- MWh --------------------------------------------------------------------------------
Description: ------------- Generated Electricity --------------------------------------------------------------
used: ---------------------- ----------------------------------------------------------------------------------------
section B.5 -------------- ----------------------------------------------------------------------------------------
Description of The electricity measurement is made at the generator outlet. In order to
measurement methods implement the energy measurement measuring transformers type 0.2 IEC
and procedures to be and energy meters type 0.2S IEC shall be used. ------------------------------
applied:------------------- ----------------------------------------------------------------------------------------
be applied: --------------- The main energy measurement is performed with a main meter and a
----------------------------- second control meter. In order to store the data, each meter shall have
65
----------------------------- enough memory to store 90 days of hourly records.--------------------------
Any comment: ---------- ----------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
B.7.2 Description of the monitoring plan: ---------------------------------------------------------------
The monitoring plan includes the continuous measurement with an hourly discrimination of fuel
consumption (natural gas and fuel oil) and of the generated electricity. -----------------------------------
These three volumes are measured with electronic meters and transducers and such data is stored
electronically. -------------------------------------------------------------------------------------------------------
With the data from the three measured variables, the emission reductions will be estimated as per
the procedure explained in section B.6. -------------------------------------------------------------------------
Additionally, for the calculation of the electric system emissions which are displaced by
cogeneration, it is necessary to estimate the SADI emissions as per the procedure established in
Annex 4.--------------------------------------------------------------------------------------------------------------
The information needed, described in Annex 4, comprises: -------------------------------------------------
 files detailing the dispatch of thermal machines, hydro-electric machines and fuel. ----------
 generators comprising the set of machines considered for the calculation of the Build
Margin. -----------------------------------------------------------------------------------------------------
All these data are sufficient for the emission reduction calculation of the Molinos Cogeneration
Project. All the information needed for the calculation of the power grid emissions is obtained from
CAMMESA (Entity in Charge of the Dispatch) ---------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
B.8 Date of completion of the application of the baseline study and monitoring methodology
and the name of the responsible person(s)/entity(ies) ---------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Name Pablo Valentin Funes -------------------------------------------------------------
Street/P.O.Box: Leandro Alem 1988 ---------------------------------------------------------------
City: Banfield -----------------------------------------------------------------------------
State/Region: Buenos Aires -----------------------------------------------------------------------
Postfix/ZIP: 1828 ---------------------------------------------------------------------------------
Country: Argentina ---------------------------------------------------------------------------
Telephone: 54 11 4264 6494 -------------------------------------------------------------------
FAX: 54 11 4264 6494 -------------------------------------------------------------------
E-Mail: ingfunespablo@infovia.com.ar / ingfunespablo@yahoo.com.ar -----------
Title: Electrical Engineer ----------------------------------------------------------------
Date of completion 24 October 2006 -------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
66
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: -----------------------------------------------------------------
The starting date of the project activity is 1 May 2007. ------------------------------------------------------
C.1.2. Expected operational lifetime of the project activity: ----------------------------------
The operational lifetime of the project is 21 years.------------------------------------------------------------
C.2 Choice of the crediting period and related information: -------------------------------------------
----------------------------------------------------------------------------------------------------------------------
C.2.1. Renewable crediting period-----------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
C.2.1.1. Starting date of the first crediting period: -------------------------------------------------------
The starting date of the first crediting period is 1 May 2007.------------------------------------------------
C.2.1.2. Length of the first crediting period: ----------------------------------------------------------------
The length of the first crediting period is 7 years. -------------------------------------------------------------
C.2.2. Fixed crediting period: ----------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
C.2.2.1. Starting date: --------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
C.2.2.2. Length: ---------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
SECTION D. Environmental impacts ------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
D.1. Documentation on the analysis of the environmental impacts, including transboundary
impacts: ----------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
The Environmental Impact Assessment was conducted for the construction of the new soy oil plant
for a total production of 17,500 tonnes/day.--------------------------------------------------------------------
Up until 2005, the plant had a production of 5,500 tonnes/day and as a result of the enhancement
works it was necessary to conduct a new Environmental Impact Assessment for the incorporation of
line 3 of production. -----------------------------------------------------------------------------------------------
67
We should take into consideration, for the purposes of the CDM project, that the main source of
emission is the boilers for steam production. The incorporation of the cogeneration project implies
an increase in the consumption of fuel of about 20%, either of natural gas or fuel oil. -----------------
Through Resolution 0093/2004, the Environment and Sustainable Development Secretariat decides:
Section 1. To approve the Environmental Impact Assessment presented by the company Molinos
Río de la Plata, domiciled at Benielli 398, city of San Lorenzo, legal domicile at Osvaldo Cruz
3350, Autonomous City of Buenos Aires, for the enhancement works of its industrial plant of grain
stockyard and storage to be installed in the city of San Lorenzo, and the construction of a docking
and mooring quay, located at kilometer 442 of the Paraná River. ------------------------------------------
After the construction of the industrial plant, Molinos decides to conduct an energy cogeneration
project, taking advantage of the benefits of the Clean Development Mechanism. -----------------------
Said Res.0093 by the Environment and Sustainable Development Secretariat establishes that: -----
Section 10. Should the company Molinos Río de la Plata S.A. plan or cause alterations to the
approved project, it shall previously notify the Environment and Sustainable Development
Secretariat so that the latter may evaluate the proposal and decide on its authorization.----------------
The cogeneration project was incorporated after the approved project of the industrial plant. --------
On 8 June 2006, Molinos Rio de la Plata informed the Environment and Sustainable Development
Secretariat (record number 00115-0001554-0) that: ----------------------------------------------------------
- The company Molinos Río de la Plata S.A., San Lorenzo plant, has concluded the
construction phase of the new facilities which started up production line number 3,
to process 12,000 tonnes/day of soy seeds. -------------------------------------------------
- This new production line, which shall be incorporated to the already existing Lines
1 and 2, processing a total of 17,500 tonnes a day, was authorized by the
Environment and Sustainable Development Secretariat through Resolution
093/2004. Said resolution permitted the construction of all the buildings comprising
the production process of Line 3, as evidenced in the blueprints of Molinos Río de
la Plata S.A.--------------------------------------------------------------------------------------
- In the case in question, the dispositions on alterations shall not apply as all the
structures have already been declared and there shall not be an increase in
production, but the start-up operation of the husking process included in the
preparation stage, as detailed in the Annual Report attached to the environmental
impact assessment which originated Resolution number 093/2004 as well as the
installation of a turbo-generator for the total usage of steam generation of the boiler
installed.------------------------------------------------------------------------------------------
68
- The start-up of this new turbo-generator system shall mean an energy saving in the
provincial system, with an immediate positive impact, which implies a considerable
decrease in the interconnected electricity system. In this respect, there are four
issues which bear significance: ---------------------------------------------------------------
1.- The production of oil and flour shall not be increased, which leads to
the conclusion that there shall not be amendments to the project approved
by Resolution 093/2004.-------------------------------------------------------------
2.- An isonorization system shall be built with the same features as that
built for the boiler rooms. -----------------------------------------------------------
3.- The location, as detailed in the husking process scheme, is found in the
center of the premises and within what is today Line 3.------------------------
4.- The electricity is not intended to be supplied to any other system than
the one belonging to Molinos Río de la Plata S.A. ------------------------------
On 13 October 2006, the Environment and Sustainable Development Secretariat concluded that: ---
1.- The incorporation of a turbo-generator shall not have a relevant impact, but, on the
contrary, shall cause a better use of dissipated energies. Therefore, no objections are
raised to its installation. --------------------------------------------------------------------------------
2.- The company Molinos Río de la Plata S.A. shall incorporate to the general
Environment Management Plan of all the Plants, all the preventive measures, monitoring
and mitigation plans arising from the incorporation of this energy generating source. ------
The results of the Environmental Impact Assessment conducted for the project were summarized in
an impact data matrix. The Impact Data Matrix is used to identify those elements which may be
affected as a result of the tasks conducted by the project, the alterations of actions whenever
possible or the corrective measures taken, which are unavoidable for the normal development of the
project.----------------------------------------------------------------------------------------------------------------
The Impact Data Matrix shows a summary of the results of relevant aspects of each one of the
sectorial studies conducted. ---------------------------------------------------------------------------------------
The Impact Data Matrix is shown hereinbelow (as approved by Resolution 93/2004). -----------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
69
QUALITY OF UNDERGROUND WATERS
QUALITY OF SURFACE WATER

USE OF WATER RESOURCES
STANDARD COMPLIANCE
STANDARD COMPLIANCE
STANDARD COMPLIANCE
RECEPTORS HUMAN SOIL WATER AIR FLORA AND FAUNA
NAVIGATION AVAILABLE
ENDANGERED SPECIES
ECONOMIC DYNAMICS
GEOMORPHOLOGY
PRODUCTION CAP.
QUALITY OF SOILS
ICHTHYIC FAUNA
QUALITY OF LIFE
NATURAL PARKS
OTHER SPECIES
USE OF SPACE
EMPLOYMENT
MICROFLORA
LAND FAUNA
AIR QUALITY
HARVEST
CLIMATE
HEALTH
ESTATE
ACTIONS
PARTICLES IN LN IN NS NN NN NN NN
NOISE IN IN NS NN NN NN NN
HANDLING
LIQUID WASTE
RECEP.&
SOLID WASTE NN NS
GRAIN
EXPL/FIRE RISK IN NN
ACTIVITY/TECHNOLOGY HP HP NS
PARTICLES IN LN IN NS NN NN NN NN
GASES IN IN NS NN NN NN NN
NOISE IN LN NN NN NN NN NN
PROCESS
LIQUID WASTE NN NS
SOLID WASTE NS
EXPL/FIRE RISK IN IN IN NN
ACTIVITY/TECHNOLOGY HP HP LN NS NS
PARTICLES IN LN IN NS NN
TREAT.LIQ SOURCE SHIPPIN
LIQUID WASTE
SOLID WASTE
ACTIVITY/TECHNOLOGY HP HP NS NS
G
PARTICLES IN IN NS NS NS NS NS
GASES IN IN NS NS NS NS NS
FUEL
NOISE IN NS NS NS NS NS
EXPL/FIRE RISK
UID WASTE S
GASES NS
NOISE NS
EFFLUENTS NN NS NN
SOLID WASTE NS
ACTIVITY/TECHNOLOGY LP NS NS
PARTICLES NS
MAT/SUPPLIES
NOISE NS
LIQUID WASTE NS
STORAGE
SOLID WASTE NS
LEAKS NN NS NS NN NS
TRANSPOR RAW
ACTIVITY/TECHNOLOGY LP LP NS NS
EXPL/FIRE RISK IN IN NS
GRAINS HP HN HP NIn IN
SUPPLIES IN IN IN NIn IN
TRAFFIC
OILS IN IN IN NIn IN
FLOURS IN IN IN NIn IN
T&
FUELS IN IN IN NIn IN
HP High Positive
MP Medium Positive
References LP Low Positive
HN High Negative
MN Medium Negative
LN Low Negative
NS Neutral Satisfactory
NN Neutral Non-defined
Nin Neutral Insatisfactory
IN Insignificant
--------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------
70
Summary of Laws Applicable to the Environmental Impact Assessment----------------------------
Act 20,284/72. Air Resource Protection ------------------------------------------------------------------------
Type: Framework Act----------------------------------------------------------------------------------------------
This Act establishes the maximum permissible limits of generic air pollutants (resulting from the
burning of fossil fuels- Carbon monoxide- CO; Sulphur dioxide- SO2; Particles; Nitrous Oxides-
NOx; Ozone- O3 and Lead- Pb): it does not expressly establish the limit emissions from fixed
sources. It has never been regulated at a national level but it represents the basis of local regulations
(Puerto San Martín; San Lorenzo; Capitán Bermúdez). The future enforcement of the sections
concerning air quality of provincial law 11,717 shall void the validity of this national act.------------
Resolution Number 404/94 by the Secretary of Energy ------------------------------------------------------
Type: Instrumental. Safety Audits.-------------------------------------------------------------------------------
This resolution by the National Secretary of Energy establishes in its Annex II A “Technical
Regulations for the control of leakage and contamination of underground hydrocarbons and
derivatives storage systems at liquid fuels outlets” for refineries, gas stations, warehouses and other
fuel outlets across the country and fractioning plants. It should be remarked that even if industrial
plants are not expressly reached by this Resolution, the latter constitutes an environmental reference
for the protection of soils and underground waters. -----------------------------------------------------------
Act 11,717/99. December 0063/99. Santa Fe ------------------------------------------------------------------
Type: Framework Act for Environment and Sustainable Development.-----------------------------------
It has the following objectives: To establish within a comprehensive development policy in the
Province the guidelines for the preservation, conservation, improvement and recovery of the
environment, natural resources and quality of life of the population. To ensure the right- which
cannot be waived- of any person to live in a healthy, ecologically balanced environment, suitable
for the development of life and the dignity of any human being. To guarantee the citizen
participation as a way to promote the enjoyment of human rights in an integral and interdependent
way. -------------------------------------------------------------------------------------------------------------------
It creates the Provincial Committee for the Environment and Sustainable Development as a non-
binding counseling body of the Environment and Sustainable Development Secretariat. It
establishes citizen participation mechanisms. ------------------------------------------------------------------
Among the issues covered, the following stand out: the need to regulate through specific decrees the
Environmental Impact Assessment and Dangerous Waste Management. ---------------------------------
Act 10,550/91 – Act 3,473 Section 74 (as amended) ---------------------------------------------------------
Type: Code of Minor Offences. ----------------------------------------------------------------------------------
71
It incorporates to the Code of Minor Offences of the Province of Santa Fe Section 74 (as amended)
“Contamination of Water Resources" and punishes with 90 (ninety) days of arrest and/or fine of up
to 45 (forty-five) lus units, the person who contaminates either directly or indirectly public or
private, running or not, surface or underground waters through the use or incorporation in a
negligent or intentional manner of any kind of substances, waste or toxic or dangerous residues,
detrites, residential liquids, agrochemicals, fertilizers, herbicides and pesticides, industrial effluents
or any other means in such a way that they may harm animal or human health, the vegetation or the
soil or the quality of waters used for population supply. -----------------------------------------------------
Decree 1,650. “Awareness and Preparation Program for the assistance of technological emergencies
at local level” --------------------------------------------------------------------------------------------------------
Type: Framework ---------------------------------------------------------------------------------------------------
Prepared by the provincial Office of Defensa Civil (Civil Defense), it intends to review, update or
develop response plans before local emergencies; to integrate emergency plans of Industries to local
emergency plans to form a global plan; to make all sectors of the Community aware of the dangers
existing in their community as well as to offer advice on the measures to adopt for limiting risks; to
foster and engage the local Community’s participation.------------------------------------------------------
The program demands the participation of local Authorities, Industries (State or Private), local
Communities and Interest Groups, establishing co-ordination groups. ------------------------------------
Resolution 1.089/82 Provincial Office of Works of Santa Fe -----------------------------------------------
Type: Instrumental.-------------------------------------------------------------------------------------------------
It establishes: --------------------------------------------------------------------------------------------------------
“Liquid Waste Discharge Conditions” (Limit concentrations) to different receptors and for different
dilution regimes; requirements for the "Application" of the Discharge Authorization: Poor (when
the Discharge Conditions are not met) or Conditional (when the quality of liquid waste meets the
Discharge Conditions).---------------------------------------------------------------------------------------------
There is a Regulation related to the former Resolution establishing the Penalties, Warning, Fines
and Loss of Qualification for the discharge.--------------------------------------------------------------------
Decree 101/03. Regulating Sections 12, 18, 19, 20, 21 and 26 of Law 11,712. Santa Fe. --------------
It establishes: --------------------------------------------------------------------------------------------------------
Industrial Categorization. Formal details of the “Categorization Application” which must be filed
by the Environment and Sustainable Development Secretariat. The Secretariat has 30 days to inform
the categorization. --------------------------------------------------------------------------------------------------
72
Requirements of an “Environmental Compliance Report” and of the request of an "Environmental
Certificate" to be filed in a maximum term of 60 days as from the notice of Category assigned to the
Industrial Plant. The Environment and Sustainable Development Secretariat shall issue the relevant
“Environmental Certificate” if the Audit and the Environmental Report are satisfactory. Should it
not be the case, the Environmental Certificate shall be restricted, forcing the company to develop an
“Environmental Management Plan”. ----------------------------------------------------------------------------
The obligation to conduct an Environmental Impact Assessment for new projects and ventures.-----
Decree 1,844/02. Regulating Sections 22 and 23 of Act 11,717. -------------------------------------------
It rectifies Decree 592 of April 2002 (Dangerous Waste) ----------------------------------------------------
It covers all the management stages of Dangerous Waste, Generation, Transport, Treatment, Shut-
down; etc. ------------------------------------------------------------------------------------------------------------
“Solid" waste generated at the Plant must be identified. If dangerous waste is generated, the plant
must be registered as “Generator” in the provincial records, pay the applicable fee and “manage”
(treat, dispose of, transport) such residues in a suitable manner.--------------------------------------------
Resolution 0267/02: Electrical Equipment Inventory---------------------------------------------------------
Resolution of the Environment and Sustainable Development Secretariat of the province of Santa
Fe. ---------------------------------------------------------------------------------------------------------------------
It establishes the obligation to create an Electrical Equipment Inventory (Transformers and
Capacitors); inventory protocol and term. ----------------------------------------------------------------------
Resolution 046/03. Analysis of Electric Fluids (PCB)--------------------------------------------------------
Resolution of the Environment and Sustainable Development Secretariat of the province of Santa
Fe. ---------------------------------------------------------------------------------------------------------------------
It establishes the Method of Analysis, the Protocol of Analysis, the reference Laboratory, liabilities
and terms. ------------------------------------------------------------------------------------------------------------
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:--------------------------------------------------------------------------------------------------
Environmental Management Plan-----------------------------------------------------------------------------
The Environmental Management Plan takes a whole set of issues into consideration so as to reduce
the environmental impact at the construction stage.-----------------------------------------------------------
73
For the purposes of this Environmental Impact Assessment, we study the Impact of the new
Cogeneration plant and the measures considered are: --------------------------------------------------------
Construction Phase: Verify the full compliance with the Workers’ Safety Act (Act 19587 and
Decree 351/79) ------------------------------------------------------------------------------------------------------
The construction of the Cogeneration Plant is made inside the San Lorenzo plant while it is in full
production process. The civil works are conducted in a new machine room to be built next to the
boiler room. The assembly of the turbine in the machine room and all of its accessories shall be
made in compliance with the safety regulations in force. ----------------------------------------------------
Environmental Monitoring Plan-------------------------------------------------------------------------------
Throughout the cogeneration plant operation, Molinos shall be compelled to monitor the funnel
emissions resulting from the combustion in the boilers.------------------------------------------------------
The Environmental Impact Assessment approved by Resolution 0093/2004 of the Environment and
Sustainable Development Secretariat decides: ----------------------------------------------------------------
Section 4. The company Molinos Río de la Plata S.A. shall implement an Environmental
Management Plan. The Air Quality Monitoring Plan shall follow the stipulations shown in Annex
“A” hereto attached and is part of these administrative proceedings at the start-up date of the
industrial plant.------------------------------------------------------------------------------------------------------
Section 5. The Environment and Sustainable Development Secretariat shall audit itself or through
third parties the construction and operation of the enhancement works of the industrial plant, its
preventive, contingency and safety measures, and it shall inform the intermediate entities
representing the neighbors and the Municipality of San Lorenzo of the conclusions of said Audits. -
Section 7. The company Molinos Río de la Plata S.A. shall have the following documents in order
to present them at the Audits foreseen by the regulations in force: -----------------------------------------
a) Documents referred to the compliance with the National Contingency Plan and the International
Code of Protection for ships and docking facilities.-----------------------------------------------------------
b) Record of tons, categories and disposition sites of urban solid, semi-solid and dangerous
generated waste.-----------------------------------------------------------------------------------------------------
c) Air quality reports as per “Annex A” hereto attached and as part of these administrative
proceedings. ---------------------------------------------------------------------------------------------------------
d) Quality record of industrial liquid effluents. ----------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
Annex A- Air Quality Monitoring Plan. ------------------------------------------------------------------------
Air quality monitoring shall include the following: -----------------------------------------------------------
74
1.- Suspended particulate material (PM10) *24 hours. Bi-monthly for a year, quarterly in the second
year and bi-annually thereafter.-----------------------------------------------------------------------------------
2.- Sedimentable particulate material * 30 days. Bi-monthly for a year, quarterly in the second year
and bi-annually thereafter.-----------------------------------------------------------------------------------------
3.- Combustion gases emission. Bi-monthly for a year, quarterly in the second year and bi-annually
thereafter. Determinations: NOx – SO2 – CO – CO2 % -------------------------------------------------------
4.- Total hydrocarbons (immission levels). Bi-monthly for a year, quarterly in the second year and
bi-annually thereafter.----------------------------------------------------------------------------------------------
5.- Measurement of noise levels as per IRAM 4062/01 Standard. ------------------------------------------
The sample taking records shall be accompanied by: ---------------------------------------------------------
a.- The location of sampling places in a plan ------------------------------------------------------------------
b.- Records of atmospheric conditions: wind direction and speed, temperature and atmospheric
pressure. --------------------------------------------------------------------------------------------------------------
c.- Indication of analytical methods and sample-taking, which shall be conducted as per IRAM or
equivalent standards. -----------------------------------------------------------------------------------------------
SECTION E. Stakeholders’ comments-----------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
E.1. Brief description of how comments by local stakeholders have been invited and compiled:
Stakeholders’ comments were compiled in October 2006. Molinos prepared the following
questionnaire:--------------------------------------------------------------------------------------------------------
Mr./Ms. [blank] --------------------------------------------------------------------------------------------------
To the attention of [blank] ---------------------------------------------------------------------------------------
We hereby request you as stakeholder in the project to answer the short questionnaire on the
Cogeneration Project that is being developed at our San Lorenzo plant in the Province of Santa Fe.
Brief description of the Project---------------------------------------------------------------------------------
Molinos is developing a Cogeneration Project which allows for the simultaneous generation of
electricity and heat needed for the process of its Soy Milling Plant located in the city of San
Lorenzo. The project, framed as Energy Efficiency Project, allows for a reduction in the
consumption of fossil fuels with a resulting reduction of about 50,000 tonnes CO2/year in
greenhouse gases emissions. The project implies using non-renewable fuels with a higher efficiency
than that used by the best thermo-electric power plant installed in our country. -------------------------
With the following questionnaire, Molinos wishes to know your opinion in this regard in order to
assess our Energy Efficiency Project. ---------------------------------------------------------------------------
Questions: -----------------------------------------------------------------------------------------------------------
75
1.- What do you think about climatic change and the Kyoto Protocol mechanism intended to ease
this phenomenon?---------------------------------------------------------------------------------------------------
2.- What do you think about the Environmental Impact caused by a cogeneration plant in an
industry? How can you define such impact? (Positive - Neutral – Negative)-----------------------------
3.- Would you recommend the Industries and the Argentine Government to support the
development of these Energy Efficiency Projects?------------------------------------------------------------
4.- Do you think that a Cogeneration Project in an industry contributes to the Sustainable
Development of the province of Santa Fe and Argentina? ---------------------------------------------------
5.- Please add any further information or comments that you deem appropriate for the project. ------
We thank you for your time. Should you have any query, do not hesitate to contact us.----------------
Regards. --------------------------------------------------------------------------------------------------------------
Luciano Ferrer. Molinos Río de la Plata. ---------------------------------------------------------------------
The people questioned were:--------------------------------------------------------------------------------------
1.- Mr. Jorge Albornoz – Neighbor of the industrial plant. --------------------------------------------------
2.- Mr.Alberto Calsiano – Unión Industrial Argentina (Argentine Industrial Union) -------------------
3.- Mr.Cristian Ciancia – Gas Distribution Company: Litoral Gas S.A. -----------------------------------
4.- Mr.Martin Mandarano - Petrobras S.A. ---------------------------------------------------------------------
5.- Mr. Fabio Jeambeaut - Energy Consulting Services. -----------------------------------------------------
6.- Mr.Daniel Cantalejo – Energy Provincial Company of Santa Fe. --------------------------------------
7.- Mr.Juan Manuel Fontan - Pan American Energy ---------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
E.2. Summary of the comments received: -------------------------------------------------------------------
The comments received were: ------------------------------------------------------------------------------------
Person Question 1 Question 2 Question 3 Question 4 Question 5
------------------- What do you think What do you think Would you Do you think that a Please add any
------------------- about climatic about the recommend the Cogeneration further information
change and the Environmental Industries and the Project in an or comments that
------------------- Kyoto Protocol Impact caused by a Argentine industry contributes you deem
------------------- mechanism cogeneration plant Government to to the Sustainable appropriate for the
------------------- intended to ease in an industry? support the Development of the project. -----------
------------------- this phenomenon? How can you development of province of Santa
-------------------
------------------ define such impact? these Energy Fe and Argentina?-
------------------- (Positive - Neutral Efficiency -------------------
------------------ -------------------
------------------- – Negative) ------- Projects? ---------- -------------------
------------------ -------------------
------------------- ------------------- ------------------- ------------------- -------------------
Jorge Albornoz --- The stipulations of I think that any I think it is I think that any A company such as
------------------- the Kyoto Protocol cogeneration plant essential for the investment project Molinos Río de la
may help to ease has a positive Argentine generating a lower Plata S.A. shows
------------------- climatic changes as impact, especially Government to use of fuel should with this type of
------------------- long as there is a due to the reduction support the achieve a projects its
76
------------------- commitment by the of fossil fuels development of Development and commitment to the
------------------- governments and which generate these kinds of Sustainable Growth environment. ------
the companies to most CO2 projects to achieve for our province -------------------
------------------- generate and and for all the
emissions--------- energy efficiency -
------------------- promote energy -------------------
------------------- ------------------- country------------
------------------- efficiency projects -------------------
------------------- ------------------- -------------------
------------------- and the use of -------------------
renewable energies ------------------- ------------------- -------------------
------------------- -------------------
which are very ------------------- ------------------- -------------------
------------------- -------------------
positive for society ------------------- ------------------- -------------------
------------------- and offer other -------------------
------------------- ------------------- -------------------
------------------- alternatives. ------------------
Alberto Calsiano -- A change which the Any generation By principle, any Answered in item No further
------------------- society should project requires an action leading to a 3------------------ comments.--------
consider in order to environmental more efficient use ------------------- -------------------
------------------- implement the impact assessment, of energy must be
------------------- appropriate which should be ------------------- -------------------
supported ---------
------------------- measures to ease conducted in ------------------- -------------------
-------------------
------------------- the undesired accordance with the ------------------- -------------------
effects produced by legal regulations in -------------------
------------------- ------------------- -------------------
the accelerated force. Once this has -------------------
------------------- ------------------- -------------------
increase in the been done, a -------------------
------------------- average cogeneration plant ------------------- -------------------
-------------------
------------------- temperature of our should decrease the ------------------- -------------------
planet. The KP will environmental
-------------------
------------------- ------------------- -------------------
help in this task---- impact of the whole -------------------
------------------- ------------------- -------------------
------------------- process in which it -------------------
------------------ participates---------- ------------------- ------------------
Cristian Ciancia --- We consider that Since a All projects The environmental No further
------------------- Global Climatic Cogeneration Plant implying advances benefit caused by comments. --------
Change implies a is more efficient in in energy efficiency the decrease in -------------------
------------------- risk for human the use of primary are welcomed and emissions to the
------------------- communities and energy (fuel) for needed. atmosphere and the -------------------
------------------- eco-systems as it the procurement of It is desirable that saving of fuel -------------------
------------------- modifies one of the heat and electricity, both the Industries implied by this type -------------------
main variables of and thus reduces and the of projects is very -------------------
------------------- life, i.e. climate. the consumption of Governments positive for a
------------------- And, in turn, it fossil fuels, its support the province and a
-------------------
------------------- implies a concrete environmental development of country with -------------------
------------------- challenge of action impact is positive projects which limited energy -------------------
------------------- in order to ease it as compared to the make the resources and -------------------
and, if possible, use of traditional consumption of growing energy -------------------
------------------- revert it: one of the technology for the energy more demands. We,
------------------- mechanisms same purpose.------ efficient.---------- therefore, believe -------------------
------------------- established at ------------------- ------------------- that it contributes -------------------
------------------- global level is the ------------------- ------------------- to the regional -------------------
Kyoto Protocol.---- development.------ ------------------
------------------ ------------------- -------------------
Martin Mandarano I consider that the It is undoubtedly Yes, I would Yes, it does.-------
-------------------
------------------- Kyoto Protocol positive as it recommend it.----- -------------------
-------------------
------------------- mechanism to ease significantly ------------------- -------------------
-------------------
global climatic contributes to the
------------------- change is an energy efficiency ------------------- -------------------
-------------------
------------------- essential tool that and emission ------------------- -------------------
-------------------
------------------- will help the reduction of ------------------- -------------------
-------------------
------------------- sustainable pollutants.--------- ------------------- -------------------
-------------------
------------------- development of ------------------- ------------------- ------------------- -------------------
countries.----------
------------------ ------------------- ------------------- ------------------- -------------------
-------------------
Fabio Jeambeaut--- We agree with Typically a Yes------------------- Given the fact that In a market that is
------------------- promoting cogeneration ------------------------ such processes going through a
77
------------------- industrial processes implies an increase ------------------------ introduce high demand
------------------- that minimize the in the efficiency of ------------------------ efficiency, they
process and
emission of the energy ------------------------ clearly contributeregulatory
------------------- pollutants. This can generation process. ------------------------ with sustainable
framework
------------------- occur as a result of Therefore, this type ------------------------ development for
problems, a
------------------- technological of process should ------------------------ the region in which
cogeneration
------------------- changes or as a have a positive ------------------------ they are
project typically
result of process impact.--------------- ------------------------ implemented. ------
introduces in
------------------- efficiency.----------- ------------------------ ------------------------ ------------------------
addition to what
------------------------
------------------- ------------------- ------------------- ------------------- has been expressed
-------------------
------------------- ------------------- ------------------- ------------------- before, in terms of
------------------- efficiency, an
------------------- ------------------- ------------------- -------------------
------------------- ------------------------ ------------------------ ------------------------ ------------------------ important
------------------------ guarantee of supply
------------------- ------------------- ------------------- ------------------- for the plant
-------------------
------------------- ------------------- ------------------- ------------------- undertaking it.------
-------------------
------------------- ------------------- ------------------- ------------------- ------------------------
-------------------
Daniel Cantalejo--- To our Undoubtedly, this This kind of No doubt, the All projects where
------------------- understanding, the kind of projects – projects are cogeneration energy efficiency is
------------------- climatic changes due to their high evidently very projects, while present such as
that have been power efficiency of important. In this incorporating cogeneration
------------------- occurring are not over 90%- sense, the EPESF distributed projects, rational
------------------- good for the planet minimize the fosters the generation, result in use of energy, use
------------------- that naturally offers contamination to development of this the reduction of of renewable
------------------- favorable the environment. kina of enterprises transport costs, energies, etc. are
conditions for the Their impact is and participates important in convenient for
------------------- development of therefore positive together with other Argentina due to society; therefore,
------------------- life, being for now as compared to distributors in a the size of the they should be
------------------- and for a very long other alternative Power Efficiency country, also fostered and part of
------------------- time, the only place thermal generation Program in contributing with long-term energy
------------------- where we can be if types. Argentina, driven higher reliability on policies included in
we maintain the ------------------------ by the Secretary of the electrical the Electrical
------------------- right environment ------------------------ Energy of the service with the Regulation of the
------------------- and become aware ------------------------ Nation, where the benefits that this country.--------------
------------------- that natural ------------------------ main objective is offers to the whole ------------------------
------------------- resources are ------------------------ the emission society. This ------------------------
limited. ------------------------ reduction of CO2 in proves the ------------------------
------------------- As regards the ------------------------ the atmosphere.----- contribution of the ------------------------
------------------- Kyoto protocol, it ------------------------ ------------------------ project to the ------------------------
------------------- is an important ------------------------ ------------------------ sustainable ------------------------
------------------- global initiative ------------------------ ------------------------ development of the ------------------------
------------------- with high ------------------------ ------------------------ province and the ------------------------
adherence from ------------------------ ------------------------ country.-------------- ------------------------
------------------- countries that show ------------------------ ------------------------ ------------------------ ------------------------
------------------- a high level of ------------------------ ------------------------ ------------------------ ------------------------
------------------- awareness which ------------------------ ------------------------ ------------------------ ------------------------
------------------- starts to turn into ------------------------ ------------------------ ------------------------ ------------------------
practical measures ------------------------ ------------------------ ------------------------ ------------------------
------------------- aimed at reducing ------------------------ ------------------------ ------------------------ ------------------------
------------------- the trends towards ------------------------ ------------------------ ------------------------ ------------------------
------------------- contamination to ------------------------ ------------------------ ------------------------ ------------------------
------------------- reach the reference ------------------------ ------------------------ ------------------------ ------------------------
values.--------------- ------------------------ ------------------------ ------------------------ ------------------------
J. Manuel Fontan--- It is a useful effort The efficiency Definitively. These Yes. Energy The presentation of
------------------- but it is not enough. optimization projects must be efficiency is the these projects
------------------- ------------------- schemes in general supported mainly basis of the within the MDL is
------------------- and the by the government. region’s going to help
------------------- cogeneration ones Companies must be sustainability.------- develop local
------------------- ------------------- in particular are responsible as ------------------------ resources and
------------------- ------------------- convenient from regards the ------------------------ knowledge for the
------------------- ------------------- the environmental environment and ------------------------ performance of
78
------------------- ------------------- point of view, support these ------------------------ other projects of
------------------- ------------------- although, even if initiatives by not ------------------------ this kind in the
they minimize it, obstructing the ------------------------ country. Therefore,
------------------- ------------------- they do not main projects they ------------------------ I think it is
------------------- ------------------- eliminate it supply.--------------- ------------------------ important to share
------------------- ------------------- completely. ------------------------ ------------------------ the experiences and
------------------- ------------------- Therefore, the ------------------------ ------------------------ lessons learned
environmental ------------------------ ------------------------ from the rest of the
------------------- ------------------- impact is negative, ------------------------ ------------------------ industry, clients
------------------- ------------------- even if better than ------------------------ ------------------------ and/or supplier
------------------- ------------------- other more harmful ------------------------ ------------------------ companies.----------
------------------- ------------------- ones.----------------- ------------------------ ------------------------ ------------------------
------------------------ ------------------------ ------------------------ ------------------------
-------------------------------------------------------------------------------------------------------------------------
E.3.Report on how due account was taken of any comments received:-------------------------------
The responses received have been included in the list and we have perceived an excellent attitude of
the people questioned. In general, there is a widespread concern on the environment, and as
Molinos is the main food industry in Argentina, with a very vast number of brands, the promotion
of the Cogeneration project has a positive impact on society. -----------------------------------------------
Annex 1 --------------------------------------------------------------------------------------------------------------
CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY-----------
Organization: Molinos Río de la Plata -----------------------------------------------------------
Street/P.O.Box: Uruguay 4075 ----------------------------------------------------------------------
Building: Headquarters -----------------------------------------------------------------------
City: Victoria -----------------------------------------------------------------------------
State/Region: Buenos Aires ----------------------------------------------------------------------
Postfix/ZIP: ----------------------------------------------------------------------------------------
Telephone: 54 11 4340 1100 -------------------------------------------------------------------
FAX: ----------------------------------------------------------------------------------------
E-Mail: Luis.Palacios@molinos.com.ar --------------------------------------------------
URL: www.molinos.com.ar -------------------------------------------------------------
Represented by: ----------------------------------------------------------------------------------------
Title: ----------------------------------------------------------------------------------------
Salutation: ----------------------------------------------------------------------------------------
Last Name: Palacios -----------------------------------------------------------------------------
Middle Name: ----------------------------------------------------------------------------------------
First Name: Luis ----------------------------------------------------------------------------------
Department: Industrial Executive ---------------------------------------------------------------
Mobile: ----------------------------------------------------------------------------------------
Direct FAX: ----------------------------------------------------------------------------------------
Direct tel: ----------------------------------------------------------------------------------------
Personal E-Mail: ----------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
79
City: Victoria -----------------------------------------------------------------------------
Postfix/ZIP: ----------------------------------------------------------------------------------------
Telephone: 54 11 4340 1100 -------------------------------------------------------------------
FAX: ----------------------------------------------------------------------------------------
E-Mail: ----------------------------------------------------------------------------------------
Represented by: ----------------------------------------------------------------------------------------
Title: ----------------------------------------------------------------------------------------
Salutation: ----------------------------------------------------------------------------------------
Last Name: Mazany -----------------------------------------------------------------------------
Middle Name: ----------------------------------------------------------------------------------------
First Name: Omar -------------------------------------------------------------------------------
Department: Procurement-------------------------------------------------------------------------
Mobile: ----------------------------------------------------------------------------------------
Direct FAX: ----------------------------------------------------------------------------------------
Direct tel: ----------------------------------------------------------------------------------------
Personal E-Mail: ----------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
City: Victoria -----------------------------------------------------------------------------
Postfix/ZIP: ----------------------------------------------------------------------------------------
Country: Argentina --------------------------------------------------------------------------
Telephone: 54 11 4340 1100 -------------------------------------------------------------------
FAX: ----------------------------------------------------------------------------------------
E-Mail: Luciano.ferrer@molinos.com.ar -----------------------------------------------
Represented by: ----------------------------------------------------------------------------------------
Title: ----------------------------------------------------------------------------------------
Salutation: ----------------------------------------------------------------------------------------
Last Name: Ferrer---------------------------------------------------------------------------------
Middle Name: ----------------------------------------------------------------------------------------
First Name: Luciano -----------------------------------------------------------------------------
Department: Procurement ------------------------------------------------------------------------
Mobile: 54 11 53285456 -------------------------------------------------------------------
Direct FAX: ----------------------------------------------------------------------------------------
Direct tel: ----------------------------------------------------------------------------------------
Personal E-Mail: ----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
Street/P.O.Box: ----------------------------------------------------------------------------------------
Building: Planta San Lorenzo----------------------------------------------------------------
City: San Lorenzo ------------------------------------------------------------------------
State/Region: Santa Fe -----------------------------------------------------------------------------
Postfix/ZIP: ----------------------------------------------------------------------------------------
80
Telephone: ----------------------------------------------------------------------------------------
FAX: ----------------------------------------------------------------------------------------
E-Mail: Juan.Carlos.Fernandez@molinos.com.ar---------------------------------------
Represented by: ----------------------------------------------------------------------------------------
Title: ----------------------------------------------------------------------------------------
Salutation: ----------------------------------------------------------------------------------------
Last Name: Fernandez---------------------------------------------------------------------------
Middle Name: Carlos--------------------------------------------------------------------------------
First Name: Juan ----------------------------------------------------------------------------------
Department: Chief of Services ------------------------------------------------------------------
Mobile: 54 341 49944263 ------------------------------------------------------------------
Direct FAX: ----------------------------------------------------------------------------------------
Direct tel: 54 341 4628035 --------------------------------------------------------------------
Personal E-Mail: ----------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Organization: Consultant --------------------------------------------------------------------------
Street/P.O.Box: Alem 1988 -------------------------------------------------------------------------
Building: ----------------------------------------------------------------------------------------
City: Banfield -----------------------------------------------------------------------------
Postfix/ZIP: 1828 ---------------------------------------------------------------------------------
Telephone: 54 11 4264 6494 -------------------------------------------------------------------
FAX: 54 11 4264 6494 -------------------------------------------------------------------
E-Mail: ingfunespablo@infovia.com.ar --------------------------------------------------
URL: ----------------------------------------------------------------------------------------
Represented by: ----------------------------------------------------------------------------------------
Title: Electrical Engineer ----------------------------------------------------------------
Salutation: ----------------------------------------------------------------------------------------
Last Name: Funes --------------------------------------------------------------------------------
Middle Name: Valentin -----------------------------------------------------------------------------
First Name: Pablo --------------------------------------------------------------------------------
Department: External Consultant ---------------------------------------------------------------
Mobile: 54 11 40648726 --------------------------------------------------------------------
Direct FAX: ----------------------------------------------------------------------------------------
Direct tel: ----------------------------------------------------------------------------------------
Personal E-Mail: ingfunespablo@yahoo.com.ar ---------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
Annex 2 --------------------------------------------------------------------------------------------------------------
INFORMATION REGARDING PUBLIC FUNDING --------------------------------------------------
No public funding is involved in this project activity. --------------------------------------------------------
Annex 3 --------------------------------------------------------------------------------------------------------------
BASELINE INFORMATION ----------------------------------------------------------------------------------
Fuel Emission Factors --------------------------------------------------------------------------------------------
81
[All the charts on this page are written in English in the original, and I reproduce them]. ------------
Fuel Emission Factor
kg C/TJ
Gas / Diesel Oil 20,2
Residual Fuel Oil 21,2
Natural Gas 15,3
Coking Coal 25,8
Revised 1996 – IPCC Guidelines for National Greenhouse Gas Inventories – Reference Manual. ---
Operating Margin Calculation: the following table shows the results of the detailed analysis of
the generation dispatch for 2005 for the emissions of the last 10% dispatched. --------------------------
Year EG2005 EOM,2005 EFOM,2006

MWh/year ton CO 2 /year ton CO2/MWh
2005 9,815,793.00 6,554,272.64 0.6677
Build Margin Calculation: the following table shows the results for the latest generation installed,
contributing with 20% of the total generation of the system. ------------------------------------------------
Year EG2005 EBM,2005 EFBM,2006
MWh/year ton CO2/year ton CO2/MWh
2005 98,157,930.00 35,209,719.33 0.3587
Combined Margin: it is the result of the average between the Build Margin and the operating
margin. ---------------------------------------------------------------------------------------------------------------
Year EFBM,2005 EFOM,2005 BEFBM,2005
tonne tonne kg
CO2/MWh CO2/MWh CO2/MWh
2005 0.36 0.67 513.22
-----------------------------------------
----------------------------------------------------------------------------------------------------------------------
Annex 4 --------------------------------------------------------------------------------------------------------------
MONITORING INFORMATION ----------------------------------------------------------------------------
Calculation of Grid Emissions----------------------------------------------------------------------------------
The electricity generated by Molinos’ project displaces generation from the grid, the emissions of
which must be calculated. For the estimation of grid emissions, a calculation model has been
prepared based on the detailed analysis of the hydro-thermal dispatch described below:---------------
Background---------------------------------------------------------------------------------------------------------
CAMMESA: it stands for Compañía Administradora del Mercado Eléctrico Mayorista Sociedad
Anónima. This Company is responsible, among other things, for the Programming of Operation,
Load Dispatch and Pricing. In order to conduct this task there are a set of legal regulations
82
establishing the conditions under which the hydro-thermal dispatch must be made. The text listing
the legal regulations is called the Procedures. Its compliance is compulsory for all WEM agents,
including Generators and Molinos Río de la Plata.------------------------------------------------------------
WEM: Wholesale Electrical Market. ----------------------------------------------------------------------------
SADI: Sistema Argentino de Interconexión (Argentine Interconnection System)------------------------
Purpose --------------------------------------------------------------------------------------------------------------
The purpose of the Monitoring Plan is to determine the Electric System emissions resulting from
the generation hydro-thermal dispatch for electric energy generated as a result of the project
activity. ---------------------------------------------------------------------------------------------------------------
Data Sources--------------------------------------------------------------------------------------------------------
The data needed for the calculations have been gathered from:---------------------------------------------
- CAMMESA -------------------------------------------------------------------------------------
- National Secretary of Energy -----------------------------------------------------------------
- IPCC ----------------------------------------------------------------------------------------------
1.- CAMMESA Reports: the information needed for the calculation of SADI emissions has been
provided by CAMMESA. CAMMESA publishes three files on an hourly basis: ------------------------
- Thermal dispatch: order of thermal generators by price, from lowest to highest. It is
detailed by thermal machine: steam turbine, gas turbine. --------------------------------
- Hydro-electric dispatch: hydro-electric generation at such hour by hydro-electric
plant. ----------------------------------------------------------------------------------------------
- Fuel dispatch: for each thermal generator a detail of type of fuel used, the
percentage of use.-------------------------------------------------------------------------------
The format of each file is: -----------------------------------------------------------------------------------------
Thermal dispatch: the file has a heading with the codes used, time and date in three columns. -------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
83
Column 1: We have the Column 2: We have the Column 3: They are the
generation units per generation units per machines in reserve.
machine dispatched at machine dispatched at These machines are not
spot cost. These are the operating cost. These generating and thus not
units that are being machines are also emitting GHG.-------------
generated at such hour generating and thus -------------------------------
and ordered form the emitting GHG. The
highest to the lowest difference with Column 1
price. These are the is that they are machines
machines dispatched dispatched forced by
without considering the transport, forced in valley
operating restrictions of hours by requirement of
the generation or peak hours and start-up
transport system, i.e. the machines. Like column 2,
free dispatch of thermal we have the available
machines. ------------------ machine power and the
------------------------------- actual power that is being
generated.------------------
-------------------------------
-------------------------------
-------------------------------
-------------------------------
C.A.M.M.E. S.A. List Date: 30/06/05 22:40
THERMAL GENERATION DISPATCH

+-----------------+
: Date Time :
:30/06/05 22 :
*** References *** +-----------------+
A :Start-up Phase E :Forced by Generator B :Forced by Distrib. R :Forced by Freq.Reg. V :Forced by Tension
D :Available T :Forced by Transport P :Forced by Power S :Forced by Safety N :A Operating cost by AyP
C :E/S cycle st-up M :Technical Min. Problem U :A C.O. (Edge ST) G :Disp.w/lack of fuel
===================================================================================================================================
MARKET
--------------- AT SPOT COST ----------------+---------------- AT OPERATING COST ---------------+--------- IN RESERVE -------------

Descrip Cost Pow. Pow. Res. Accum + Descrip Est Costo Pow. Pow. Res. Accum + Descrip Est Cost Pow . Accum f/
tion EspMed Gener Av. Rot. f/low + tion EspMed Gener Dis. Rot. f/Up + tion EspMed Dis. Enter
-------- ------ ------ ---- ------ ------- + -------- - ------ ------ ---- ------ ------- + -------- - ------ ---- -------
COSTTV01 81.80 92.0 92 .0 47.0 + PILATV01 U 125.28 15.0 28 13.0 13.0 + AESPTG02 G 28.64 262 .0
PALPTG22 63.50 6.0 10 4.0 53.0 + PILATV02 U 131.22 14.0 28 14.0 27.0 + PPNOTG02 G 40.27 20 .0
DIQUTG04 59.23 14.0 14 .0 67.0 + PILATV04 U 172.13 45.0 72 27.0 54.0 + INDETG22 G 51.64 18 .0
DIQUTG03 59.23 13.0 13 .0 80.0 + PILATV03 U 179.07 40.0 72 32.0 86.0 + LBANTG21 G 54.43 13 .0
LEVATG02 56.63 18.0 19 .7 98.0 + SNICTV15 U 181.67 294.0 332 38.0 124.0 + FRIATG22 G 55.47 13 .0
DFUNTG02 55.65 12.0 13 1.0 110.0 + NPUETV06 U 187.19 170.0 250 80.0 204.0 + CDPITG21 G 57.65 13 .0
VMARTG03 54.41 14.0 15 .5 124.0 + SNICTV12 U 196.65 29.0 60 31.0 235.0 + SARCTG21 G 58.17 10 .0
MDPATG20 53.38 8.0 16 8.0 132.0 + PNUETV09 U 197.55 162.0 250 88.0 323.0 + SARCTG23 G 58.17 10 .0
LDCUTG22 52.45 21.0 22 1.0 153.0 + NPUETV05 U 213.25 42.0 110 68.0 391.0 + DIQUTG02 G 59.23 10 .0
MDPATG13 50.07 23.0 23 .0 176.0 + PNUETV07 U 222.55 79.0 145 66.0 457.0 + INDETG21 G 64.69 10 .0
MDPATG21 50.07 22.0 23 1.0 198.0 + ------ ---- ------ + SARNTG22 G 64.74 10 .0
SNICTV13 46.14 24.0 60 36.0 197.0 + TOTAL 890.0 1347 457.0 + COSTTV04 D 146.65 120 .0
MDPATV08 41.95 25.0 27 2.0 210.0 + + NECOTV02 G 147.56 28 .0
NECOTV03 39.56 53.0 55 2.0 241.0 + + CEPUTG12 D 158.97 246 246.0
GUEMTV12 39.49 59.0 63 4.0 260.0 + + CEPUTV10 D 158.97 130 246.0
GUEMTV11 39.40 58.0 63 5.0 278.0 + + SORRTV13 D 189.13 145 246.0
MMARTG01 36.88 34.0 36 1.5 312.0 + + COSTTV03 D 195.12 112 246.0
MMARTG02 36.88 33.0 36 2.5 345.0 + + BATLTV05 D 198.97 80 246.0
GUEMTV13 35.52 125.0 135 10.0 420.0 + + COSTTV07 D 200.84 190 246.0
BSASTG01 33.55 138.0 215 77.0 558.0 + + NECOTV04 D 206.17 53 246.0
BSASTV01 33.55 66.0 105 39.0 579.0 + + BATLTV06 D 208.69 115 246.0
COSTTV10 30.87 310.0 325 15.0 739.0 + + NECOTV01 G 218.31 23 246.0
COSTTG09 30.87 242.0 260 18.0 981.0 + + BBLATV29 D 220.49 310 246.0
COSTTG08 30.87 241.0 268 27.0 1222.0 + + BBLATV30 D 220.49 310 246.0
TUCUTV01 29.13 136.0 136 .0 1358.0 + + LDCUTV11 D 270.21 60 246.0
TUCUTG01 29.13 131.0 141 10.0 1489.0 + + LDCUTV12 D 275.47 55 246.0
TUCUTG02 29.13 128.0 139 11.0 1617.0 + + DSUDTG08 G 318.28 35 246.0
LDCUTG25 29.03 182.0 191 9.0 1799.0 + + NPUETV04 G 342.64 30 246.0
LDCUTV15 29.03 81.0 84 3.0 1817.0 + + TABLTG02 D 460.34 110 356.0
SMTUTV01 28.76 132.0 143 11.0 1949.0 + + TABLTG01 D 460.34 106 462.0
SMTUTG02 28.76 100.0 111 11.0 2049.0 + + SFRATG02 D 461.42 18 480.0
SMTUTG01 28.76 98.0 109 11.0 2147.0 + + VGESTG16 D 468.34 16 496.0
AESPTG01 28.64 248.0 265 17.0 2395.0 + + MDAJTG15 D 470.91 16 512.0
AESPTV01 28.64 137.0 145 8.0 2532.0 + + MDAJTG17 D 482.73 16 528.0
ENSETG01 28.44 122.0 128 6.0 2654.0 + + SOESTG03 D 482.81 27 555.0
GEBATV01 28.20 208.0 228 20.0 2862.0 + + SFRATG01 D 486.07 14 569.0
GEBATG01 28.20 206.0 228 22.0 3068.0 + + MDPATG12 D 488.38 16 585.0
GEBATG02 28.20 198.0 217 19.0 3266.0 + + VMARTG02 D 492.38 15 599.5
ATUCNUCL 27.75 368.0 368 .0 3266.0 + + VMARTG01 D 492.38 14 613.9
EMBANUCL 20.52 646.0 646 .0 3266.0 + + RCUATG01 D 502.62 13 626.9
84
LDCUTG23 18.25 25.0 25 .0 3291.0 + + RCUATG02 D 502.62 13 639.9
LDCUTG24 18.25 23.0 23 .0 3314.0 + + LEVATG01 D 510.89 18 657.9
LDCUTV14 .00 13.0 14 1.0 3318.0 + LDCUTG21 G 530.58 22 +

657.9
SHELTG01 .00 7.0 7 .0 3325.0 + LRIOTG22 G 530.70 13 +
657.9
------- ---- ------ DIQUTG01 D 533.11 10 +
667.9
TOTALS 4840.0 5254 414.2 + SARCTG22 G 562.73 10 667.9
----
TOTALS 2898
===================================================================================================================================
LOCAL AREA: COMAHUE BY

Descrip Cost Pow. Pow. Res. Accum + Descrip Est Cost Pow. Pow. Res. Accum + Descrip Est Cost Pow. Accum p/
tion EspMed Gener Avai. Rot. f/low + tion EspMed Gener Avail. Rot. f/Up + tion EspMed Dis. Enter
-------- ------ ------ ---- ------ ------- + -------- - ------ ------ ---- ------ ------- + -------- - ------ ---- -------
LDLATG01 48.36 82.0 123 41.0 82.0 + ------ ---- ------ + FILOTG01 G 20.44 20 .0
LDLATG02 48.36 81.0 122 41.0 163.0 + TOTAL + ACAJTG02 G 36.20 49 .0
LDLATG03 48.36 80.0 122 42.0 243.0 + + AVALTG22 G 38.74 26 .0
ACAJTG05 36.20 50.0 51 1.0 293.0 + + AVALTV12 G 38.74 15 .0
ACAJTG04 36.12 50.0 51 1.0 343.0 + + ACAJTG03 G 48.39 48 .0
ACAJTG06 34.55 135.0 141 6.0 478.0 + ----
ACAJTV07 34.55 121.0 121 .0 599.0 + TOTAL 158
FILOTG02 20.44 18.0 20 2.0 617.0 +
FILOTG03 20.44 15.0 20 5.0 632.0 +
PHUITG01 .00 24.0 24 .0 656.0 +
ELOMTG01 .00 2.0 2 .0 658.0 +
------- ---- ------
TOTAL 658.0 797 139.0
----------------------------------------------------
Note: The information provided in this document shall be confirmed by the relevant Post-Operating Control Report. .
At the end of the report we have the thermal generation total, both at spot cost and at operating cost.
On certain days, there are transport restrictions and some areas are affected or not by such
restrictions. Consequently, local dispatches are made at local prices resulting from local thermal
generation dispatches. These thermal machines which are locally dispatched also release GHG and,
in consequence, are also considered within the thermal park. -----------------------------------------------
Fuel Dispatch: -------------------------------------------------------------------------------------------------------
In a second file, also prepared on an hourly basis, we find the fuel dispatch, with a detail for each
thermal machine, and the type of fuel used at such hour. Possible fuels are Natural Gas, Gas Oil,
Fuel Oil and Coal. --------------------------------------------------------------------------------------------------
Thermal Fuel
Machine
Fuel Dispatch in Thermal Park

+----------------+
| Date Time |
|30/06/05 22 |
** Reference Condition**+----------------+ ** Other References **
S :E/S A :Start-up Phase Rg Fr - Freq. Reg.
D :Available I :Unavailable S :Yes N : No
G :Avail.w/lack of fuel Pl Car – Full Load
S :Yes N :No R :Yes, regulating
---- Hourly Condition---------------------------------------------
Region Descrip Cond Rg Pl Area Fuel Gas Gas Coal
Electric. tion itionFr car Loc Oil Oil
-------- -------- - - - --- ----- ----- ----- -----
BAS BBLATV29 D N N 1 100
BBLATV30 D N N 1 100
MDPATV07 I N N 1 100
MDPATV08 S S R 1 100
NECOTV01 G N N 1 100
NECOTV02 G N N 1 60 40
NECOTV03 S S R 1 100
NECOTV04 D N N 1 100
85
NIDETV I N N 1 100
MDAJTG15 D N N 1 100
MDAJTG17 D N N 1 100
MDPATG12 D N N 1 100
MDPATG13 S N N 1 100
MDPATG19 I N N 1 100
VGESTG11 I N N 1 100
VGESTG16 D N N 1 100
ATUCNUCL S N S 1
========================================================
CEN DFUNTV I N N 1 100
PILATV01 S N N 1 35 65
PILATV02 S N N 1 35 65
PILATV03 S S N 1 65 35
PILATV04 S S N 1 65 35
DFUNTG01 I N N 1 100
DFUNTG02 S S R 1 100
LEVATG01 D N N 1 100
LEVATG02 S S R 1 100
MMARTG01 S S R 1 100
MMARTG02 S S R 1 100
RCUATG01 D N N 1 100
RCUATG02 D N N 1 100
SFRATG01 D N N 1 100
SFRATG02 D N N 1 100
SOESTG01 I S N 1 100
SOESTG02 I N S 1 100
SOESTG03 D N N 1 100
SOESTG04 I N 1 100
VMARTG01 D N N 1 100
VMARTG02 D N N 1 100
VMARTG03 S S R 1 100
EMBANUCL S N S 1
========================================================
COM ACAJTV07 S N S 10
AVALTV11 I N N 10
AVALTV12 G N N 10
ACAJTG01 I N N 10 100
ACAJTG02 G N N 10 100
ACAJTG03 G N R 10 100
ACAJTG04 S N R 10 100
AVALTG21 I N N 10 100
AVALTG22 G N N 10 100
AVALTG23 I N N 10 100
ELOMTG01 S N N 10 100
FILOTG01 G N N 10 100
FILOTG02 S N N 10 100
FILOTG03 S N N 10 100
LDLATG01 S S R 10 100
PHDZTG01 I N N 1 100
PHUITG01 S N N 10 100
ROCATG01 I N N 10 100
TRAPTG01 I N N 1 100
========================================================
CUY LDCUTV11 D N N 1 100
LDCUTV12 D N N 1 100
LDCUTV14 S S R 1
LDCUTV15 S S R 1
CDPITG21 G N N 1 100
LDCUTG21 G N N 1 100
LDCUTG22 S S R 1 100
LDCUTG23 S N S 1 100
LDCUTG24 S N S 1 100
LDCUTG25 S S R 1 100
86
SARCTG21 G N N 1 100
========================================================
GBA BSASTV01 S N N 1
CEPUTV10 D N N 1
COSTTV01 S N S 1 27 73
COSTTV02 I N N 1 67 33
COSTTV03 D N N 1 100
COSTTV04 D N N 1 69 31
COSTTV06 I N N 1 100
COSTTV07 D N N 1 100
COSTTV10 S S R 1
CVARTV I N N 1 100
CVISTV I N N 1 100
DSUDTV11 I N N 1
GEBATV01 S S R 1
NPUETV04 G N N 1 100
NPUETV05 S S N 1 100
NPUETV06 S S N 1 100
PNUETV07 S S N 1 100
PNUETV08 I N N 1 100
PNUETV09 S S N 1 100
BSASTG01 S S N 1 100
CEPUTG11 I N N 1 100
CEPUTG12 D N N 1 100
COSTTG08 S S N 1 100
COSTTG09 S S R 1 100
DIQUTG01 D N N 1 100
DIQUTG02 G N N 1 100
DIQUTG03 S N S 1 100
DIQUTG04 S N S 1 100
DSUDTG07 I N N 1 100
DSUDTG08 G N N 1 100
ENSETG01 S S R 1 100
GEBATG01 S S R 1 100
GEBATG02 S S R 1 100
SHELTG01 S N N 1 100
========================================================
LIT AESPTV01 S S R 1
APARTV_A I N N 1 100
CALCTV11 I N N 1 100
SNICTV11 I N N 1 100
SNICTV12 S N N 1 100
SNICTV14 I N N 1 100
SORRTV11 I N 1 100
SORRTV12 I N N 1 100
SORRTV13 D N N 1 100
AESPTG01 S S R 1 100
AESPTG02 G N N 1 100
ARGETG01 I N N 1 100
SFOETG21 I N N 1 100
SFOETG22 I N N 1 100
SNICTG01 I N N 1 100
========================================================
NEA BARRTV I N N 1 100
BARRTG21 I N N 1 100
CORRTG21 I N 1 100
FORMTG21 I N N 1 100
GOYATG21 I N N 1 100
SCATTG22 I N N 1 100
SCATTG23 I N N 1 100
========================================================
87
NOA AZAPTV I N N 1 100
GUEMTV11 S S R 1 100
LEDETV I N N 1 100
SMTUTV01 S S R 1
TUCUTV01 S N S 1
FRIATG21 I N N 1 100
FRIATG22 G N N 1 100
INDETG21 G N N 1 100
INDETG22 G N N 1 100
LBANTG21 G N N 1 100
LRIOTG21 I N N 1 100
LRIOTG22 G N N 1 100
PALPTG21 I N N 1 100
PALPTG22 S N N 1 100
PPNOTG01 I N N 1 100
PPNOTG02 G N N 1 100
SALTTG21 I N 1 100
SARNTG22 G N N 1 100
SMTUTG01 S S R 1 100
SMTUTG02 S S R 1 100
SPEDTG21 I N N 1 100
SPEDTG22 I N S 1 100
TUCUTG01 S S R 1 100
TUCUTG02 S S R 1 100
LRIODI I N N 1 100
========================================================
UTE BATLTV03 I N N 1 100
BATLTV04 I N N 1 100
BATLTV05 D N N 1 100
BATLTV06 D N N 1 100
MALDTG01 I N N 1 100
TABLTG01 D N N 1 100
TABLTG02 D N N 1 100
========================================================
Note: The information provided in this document shall be confirmed by the relevant Post-Operating Control Report.------------------------
At some hours it can happen that the same steam turbine generates 40% with Natural Gas and 60%
with Fuel Oil.--------------------------------------------------------------------------------------------------------
As regards the machines using coal, in the whole generation park there are only three units in San
Nicolás Thermal Plant which use coal on some winter days.------------------------------------------------
In general, steam plants can burn in the boiler Natural Gas and Fuel Oil, gas turbines use natural gas
and/or gas oil. -------------------------------------------------------------------------------------------------------
Hydro-electric Dispatch:-------------------------------------------------------------------------------------------
The hydro-electric dispatch is in a third file where we find the power generated for each hydro-
electric plant and the total hydraulic generation dispatched.-------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
88
HIDRAULIC GENERATION DISPATCH

+-----------------+
: Date Time :
:30/06/05 22 :
*** References *** +-----------------+
A :Start-up Phase E :Forced by Generator B :Forced by Distrib. R :Forced by Freq.Reg V :Forced by Tension
D : Available T :Forced by Transport P :Forced by Power S :Forced by Safety F :Forced by Req.Downstream
===================================================================================================================================
MARKET

Descrip Value Pow. Pow. Res. Accum + Descrip Cnd Value Pow. Pow. Res. Accum + Descrip Cnd Value Pow. Accum f/
tion Water Gener Avail Rot. f/low + tion Water Gener Avail. Rot. f/up + tion Water Avail. Enter
-------- ------ ------ ---- ------ ------- + -------- - ------ ------ ---- ------ ------- + -------- - ------ ---- -------
ADTOHI 51.87 134.0 146 12.0 134.0 + ------ ---- ------ + LREYHB D .00 197 197.0
NIH1HI 51.85 162.0 209 47.0 296.0 + TOTALS + CONDHI D .00 50 247.0
YACYHI 1684.0 1900 216.0 1980.0 + + LVINHI D 14 261.0
SGDEHIAR .00 1451.0 1451 .0 3431.0 + + RGDEHB D 60.00 570 831.0
CCORHI .00 85.0 90 5.0 3516.0 + ----
ULLUHI 24.0 34 10.0 3540.0 + TOTALS 831
CACHHI .00 22.0 27 5.0 3562.0 +
LMO1HI 21.0 25 4.0 3583.0 +
REOLHI 21.0 23 2.0 3604.0 +
CASSHI 14.0 15 1.0 3618.0 +
ESCAHI 14.0 14 .0 3632.0 +
QULLHI 11.0 45 34.0 3643.0 +
FSIMHI 10.0 11 .6 3653.0 +
LMADHI .00 10.0 10 .0 3663.0 +
PMORHI 6.0 6 .0 3669.0 +
SROQHI 5.0 6 1.0 3674.0 +
TUNAHI 5.0 5 .0 3679.0 +
CADIHI 4.0 5 1.0 3683.0 +
PVIEHI 4.0 5 1.2 3687.0 +
LMO2HI 2.0 3 1.0 3689.0 +
------- ---- ------
TOTALS 3689.0 4030 340.8
===================================================================================================================================
LOCAL AREA: COMAHUE BY

Descrip Value Pow. Pow. Res. Accum + Descrip Cnd Value Pow. Pow. Res. Accum + Descrip Cnd Value Pow. Accum f/
tion Water Gener Avail. Rot. f/low + tion Water Gener Avail. Rot. f/Up + tion Water Avail. Enter
-------- ------ ------ ---- ------ ------- + -------- - ------ ------ ---- ------ ------- + -------- - ------ ---- -------
PAGUHI 60.00 1088.0 1360 272.0 1088.0 + ------ ---- ------ ----
PBANHI 58.01 453.0 470 17.0 1541.0 + TOTAL TOTAL
CHOCHI 55.55 1137.0 1210 73.0 2678.0 +
ALICHI .00 604.0 1040 436.0 3282.0 +
PPLEHI 276.0 285 9.0 3558.0 +
ARROHI 112.0 127 15.0 3670.0 +
CPIEHI 15.0 20 5.0 3685.0 +
------- ---- ------
TOTAL 3685.0 4512 827.0
Note: The information provided in this document shall be confirmed by the relevant Post-Operating Control Report.. ---------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
Generators Database------------------------------------------------------------------------------------------------
With each Seasonal Programming, CAMMESA publishes the general parameters of each thermal
generator. This is the specific consumption of each unit expresses in kcal/kWh. ------------------------
Calculation Model of SADI Emissions--------------------------------------------------------------------------
GHG emissions are calculated with the information discriminated on an hourly basis, with thermal
machines dispatch in order and with the detail of the fuel used, efficiency, etc. per each machine
comprising the last 10% of the total generation dispatch. ----------------------------------------------------
The total dispatch includes thermal, nuclear and hydro-electric generation. The calculation model
was developed by Visual Basic on an Excel spreadsheet which reads the information of the three
hourly dispatch files throughout the analysis period. ---------------------------------------------------------
GHG emissions are also calculated for each one of the combined cycle plants. In Argentina there
are a significant number of combined cycle plants comprising GT and ST units operating with the
heat generated from exhaust gases from GT.-------------------------------------------------------------------
GT Gas Turbines. ------------------------------------------------------------------------------------------------------------------------------------------------------
ST Steam Turbines. ----------------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------
89
Detailed description of the calculation method: ---------------------------------------------------------------
The calculation process allows to determine the GHG emissions of the generating units comprising
the last 10% of the machines in function of the order of dispatch in tonnes CO2/hour which,
dividing the generated MWh by such 10% results in an average value in tonnes CO2/MWh. ---------
Steps ------------------------------------------------------------------------------------------------------------------
1.- Determine the total hydro-electric generation for the h hour in MW (hydro-electric dispatch file).
-------------------------------------------------------------------------------------------------------------------------
2.- Determine the total thermal generation for the h hour in MW (thermal dispatch file).--------------
3.- Determine the total generation and the 10% of the total.-------------------------------------------------
4.- Prepare a chart with the detail of the thermal machines ordered by dispatch considering: ---------
- the machines that are at spot cost (column 1 of thermal file) ----------------------------------------------
- the machines that are at operating cost (column 2 of thermal file)----------------------------------------
- the machines that are in local dispatch.------------------------------------------------------------------------
- the unit generation cost, with which the dispatch order was fixed (columns 1 and 2 of the thermal
dispatch file) ---------------------------------------------------------------------------------------------------------
- specific consumption of each thermal machine (CAMMESA Seasonal Programming database). --
5.- Calculate in detail the CO2 emissions of the last 10% dispatched.-------------------------------------
6.- Calculate the emissions on an hourly basis for each one of the combined cycles, which will be
later used for the calculation of the Build Margin. -----------------------------------------------------------
7.- Calculate the hourly generation for each one of the hydro-electric plants comprising the Build
Margin. ---------------------------------------------------------------------------------------------------------------
Results of the Model: the emissions are estimated with the method described, offering the following
results: ----------------------------------------------------------------------------------------------------------------
Hourly Detail of Generators comprising 10% of the TOP dispatched --------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------
Month 6
Day 17
Time 4
Thermal Generation in total MW 5316
Thermal Generation in MW at Spot Cost 4235
Thermal Generation in MW at Operating Cost 1081
Hydro-electric Generation in MW 4247
Total dispatched power in MW 9563
Last 10% dispatched in MW 956
Machine Pwer/MW) Accum.Power/MW) kcal/kWh $/MWh Operat/Spot Fuel Oil Gas Gas Oil Coal
MMARTG02 31 31 1600 28.72 CO 0 0 100 0
MMARTG01 31 62 1600 30.12 CO 0 0 100 0
PILATV02 16 78 2857 30.33 CO 100 0 0 0
PILATV01 15 93 2857 30.33 CO 100 0 0 0
LDCUTV11 55 148 2587 30.56 CO 100 0 0 0
PILATV03 37 185 2483 30.56 CO 100 0 0 0
PILATV04 67 252 2501 31.66 CO 100 0 0 0
NPUETV05 44 296 2404 31.78 CO 100 0 0 0
90
PNUETV07 79 375 2389 33.41 CO 100 0 0 0
MDPATV08 15 390 2895 33.49 CO 100 0 0 0
BBLATV30 156 546 2300 39.45 CO 100 0 0 0
BBLATV29 157 703 2300 39.46 CO 100 0 0 0
NECOTV04 25 728 2600 39.71 CO 100 0 0 0
PNUETV09 100 828 2248 40.60 CO 100 0 0 0
SORRTV13 78 906 2450 49.63 CO 100 0 0 0
SNICTV15 175 1081 2144 66.87 CO 0 0 0 100
-------------------------------------------------------------------------------------------------------------------------
Detailed calculation of the operating margin on an hourly basis and monthly graph: the fuel
consumption, the generated MWh with each type of fuel and the emission factor in tonnes/MWh for
thermal plants comprising the last 10% dispatched are estimated on an hourly basis. ------------------
----------------------------------------------------------------------------------------------------------------------
Monthly total emissions- Operating Margin
Total Generated Energy 834,542 MWh

Total Emissions 615,262 tonnes CO2/month
Emission Factor of the month 0.737 tonnes CO2/MWh
Detail of energy generated per fuel, fuel consumption and emissions
day month time Tonnes F.O. MWh F.O. dm3 Gas MWh Gas Tonne s G.O. MWh G.O Tonnes Coal MWh C.O. total MWh
tonnes/MWh
1 6 1 170 718 41 128 0 0 72 182 1.028 0,753
1 6 2 151 638 52 170 0 0 72 182 990 0,744
1 6 3 149 629 36 116 0 0 71 180 925 0,755
1 6 4 149 627 31 101 0 0 73 184 912 0,756
1 6 5 149 630 52 170 0 0 73 184 984 0,744
1 6 6 167 705 21 78 0 0 70 177 960 0,752
1 6 7 275 1.146 0 0 0 0 0 0 1.146 0,762
1 6 8 275 1.146 0 0 0 0 0 0 1.146 0,762
1 6 9 280 1.166 0 0 4 25 0 0 1.191 0,756
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Operating Margin ton CO2/MWh
1.00
0.90
0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00
1 2 4 5 7 8 10 11 13 14 16 17 19 20 22 23 25 26 28 29
Operating Margin ton CO2/MWh
Figure A4.1.- Operating Margin - June 2005 ---------------------------------------------------------------
91
For the calculation of the Build Margin, the hourly emissions are calculated for each one of the
thermal and hydro-electric plants generating 20% of the energy generated in the system. We then
have the San Miguel de Tucumán Combined Cycle emissions by Pluspetrol Energy. ------------------
-------------------------------------------------------------------------------------------------------------------------
San Miguel de Tucumán Combined Cycle Plant of Pluspetrol
GT SMTUTG01 113.50 MW Generated Energy 196,177 MWh

GT SMTUTG02 117.20 MW Total Emissions 77,921 tonnes CO2
ST SMTUTV01 151.53 MW Emission Factor 0.397 tonnes CO2/MWh
Day Month Time MW dm3/gas Tonnes G.O. FE tonnes CO2/MWh

1 6 1 164 31.78 0.00 0.382
1 6 2 180 34.53 0.00 0.378
1 6 3 174 33.62 0.00 0.381
1 6 4 178 33.62 0.00 0.372
1 6 5 178 34.23 0.00 0.379
1 6 6 181 34.23 0.00 0.373
1 6 7 177 34.23 0.00 0.381
1 6 8 176 33.31 0.00 0.373
-------------------------------------------------------------------------------------------------------------------------
In the model, the emissions of each one of the most recently installed plants are calculated and then
the emissions for the 20% of total generated energy is determined.----------------------------------------
The calculation model not only determines the general values for the determination of the build and
operating margin but also has a detail per hour, day and plant. The calculation model is run by
processing over 2000 text files per month, with the details mentioned.------------------------------------
Emission Monitoring: The Procurement Management of Molinos Río de la Plata is in charge of
implementing the Monitoring Plan of the CDM Project. Molinos has the resources to perform the
SADI Emission Calculation under the mechanism described above and its model shall be run per
year in order to calculate the emission reduction as a result of the project activity. ---------------------
-------------------------------------------------------------------------------------------------------------------------
I, María Soledad Suares, a sworn translator, duly admitted, qualified and sworn in the Public
Translators’ Association of the City of Buenos Aires, do hereby certify the foregoing to be a true
and accurate translation of the document, written in Spanish and translated into English, hereunto
attached. --------------------------------------------------------------------------------------------------------------
IN WITNESS WHEREOF I have hereunto set my hand and official seal in Buenos Aires, this 15th
January 2007.--------------------------------------------------------------------------------------------------------
ES TRADUCCIÓN FIEL del original de su referencia, escrito en idioma castellano y traducido al
idioma inglés, que he tenido a la vista y al que me remito en Buenos Aires, a los quince días del
mes de enero del año 2007. ---------------------------------------------------------------------------------------
92
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TRADUCCIÓN PÚBLICA.

San Lorenzo City -

Figure B.30.2. Air View of the Industrial Plant. --------------------------------------------------------------

Leakage CO2 No Methodology AM0014

---------------------------------- N2O Yes Methodology AM0014

Capacity 2005 Capacity 2006 Capacity 2007

DREYFUS 3,553 4,763 5,973

AGD 3,672 5,548 5,548

CARGILL 4,518 6,665 8,631

VICENTIN 2,603 5,627 5,627

OTHERS 2,339 2,339 2,339

TOTAL 23,821 37,674 40,851

Capacity 2005 Capacity 2006 Capacity 2007

Average 11.27% 4.10% 4.25% 15.36%

Natural Gas Consumption 16,712.19 m3/h

Gas Scenario Outage Days

Molinos’ Electricity Price: ---------------------------------------------------------------------------------------

Cost of Gas at Pit’s Mouth in Factories 2.30 USD/MM BTU

Cost of Dispatched Power 5.07 USD/MWh

500 and 132 kV Power Transport 3.79 USD/MWh

Power Cost in Plant 37.78 USD/MWh

1.- Investment 10,900.00 M USD

2.- Baseline Scenario

Savings tonne CO2/year 1,892.99 2,839.48

Amortizations Mus$ -1,090.00 -1,090.00

Income Tax Mus$ -408.31 -830.48

Net Result Mus$ 758.28 1,542.32

Amortizations Mus$ 1,090.00 1,090.00

Cash flow Mus$ -10,900.00 1,848,.8 2,632.322

RATIOS IRR IRR

Molinos’ Gas Price Factory Gas Efficiency of IRR Improvement

No Yes Cogeneration faces

(1) Is installed cogeneration capacity more than 5% of total

Cogeneration does not face

Does cogenerator face economic penalties

Test is inconclusive with respect to

Package cogeneration faces

Package cogeneration does not face

Cogeneration by industrial user

Cogeneration by industrial user

No There are no institutional barriers

year 2005 year 2006 year 2007

Electricity from the grid

Boiler Number 1 Boiler Number 2 Boiler Number 3 Boiler Number 4

Figure B.6.1.2.- Steam Flow Chart ----------------------------------------------------------------------------

HFOCh(kg/h) * LHVFO * 4,184.09 J/kcal

AECFO = Annual energy consumption of fuel oil in cogeneration system (GJ/year)

h = Sum of all 8760 hours of the year

AECNG * MEF NG + AECFO * MEF FO

Eequiv met comb (tonne CO2/equiv/year) = Emet comb * GWP (CH4)

Where GWP (CH4) = global warming potential of methane = 21

AECNG * NEF NG + AECFO * NEF FO

Eequiv N2O comb (tonne CO2/equiv/year) = ENO2 comb * GWP (N2O)

Where GWP (N2O) = global warming potential of nitrous oxide = 310

Where GWP (CH4) = global warming potential of methane = 21

Baseline Emission -------------------------------------------------------------------------------------------------

Natural Gas Food

Electricity from the grid

Determination of fuel consumption of boiler in baseline scenario ------------------------------------------

Thermal Energy * Efficiency = Thermal Energy + Thermal Energy

Electricity = Thermal Energy * Efficiency of

Heat to Industrial Plant