CDM PDD Caracol Knits v2

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 04
CDM Executive Board
page 1
CLEAN DEVELOPMENT MECHANISM

PROJECT DESIGN DOCUMENT FORM (CDM-PDD)
Version 04
CONTENTS
A.
General description of project activity
B.
Application of a baseline methodology
C.
Duration of the project activity / Crediting period
D.
Application of a monitoring methodology and plan
E.
Estimation of GHG emissions by sources
F.
Environmental impacts
G.
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
Annex 5: Notation
This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

CDM Executive Board
page 2
SECTION A. General description of project activity

A.1. Title of the project activity:
Caracol Knits Trigeneration Project. This is PDD version 1.0, completed on May 2006.
A.2. Description of the project activity:

Caracol Knits Trigeneration Project consists of the installation of a generation unit of: electricity,
heat and cold for their use in an existing textile industry in Honduras. The unit is composed, mainly, of
the following equipment:
-
one heavy fuel-oil engine + alternator unit, is in charge of transforming, with optimal yield, the
energy contained in the fuel into mechanical energy for operating the alternator to produce
electricity,
one heat recovery boiler, recovers residual thermal energy of exhaust gases to produce steam,
two chiller units, recover residual thermal energy of the HT (High Temperature) water cooling
circuit to produce cold water.
The trigeneration unit is designed to supply all produced electrical energy to the textile industry.
When the textile process stops or the requirement of production is less, the surplus generated electricity
would be sold to the National Electrical Company.
By introducing this trigeneration system, the total amount of fossil fuel for the existing boilers
and electricity for the existing chillers in the textil industry to produce the same amount of energy, would
be reduced. Besides, the emissions resulting to produce electrical energy from the engine are less than
importing electricity from the power grid, resulting in a significant reduction in CO2 emissions of
182,744.57 tons CO2-eq over 7 years.
A.3. Project participants:
Name of Party involved
Private and/or public

entity(ies) project participants
Honduras
Spain
Caracol Knits S.A. de C.V.

INGEMAS, S.A.
Kindly indicate if the Party

involved wishes to be
considered as project
participant (Yes/No)
Yes
Yes
A.4. Technical description of the project activity:

A.4.1. Location of the project activity:

CDM Executive Board
page 3
Figure 1: Honduras country area, showing location of Potrerillos
A.4.1.1. Host Party (ies):

Honduras
A.4.1.2. Region/State/Province etc.:
Department of Cortes
A.4.1.3. City/Town/Community etc:
Aldea El Caracol, Potrerillos
A.4.1.4. Detail of physical location, including information allowing the unique
identification of this project activity (maximum one page):
Caracol Knits is located in Aldea El Caracol, Potrerillos, Cortes Department, in nor-occidental of
the country (See Figure 1). The installation is located at 50 Km of San Pedro Sula, the industrial and
economical focus of Honduras.
A.4.2. Category (ies) of project activity:
Sectors/Source categories: Non renewable source energy industry.

CDM Executive Board
page 4
A.4.3. Technology to be employed by the project activity:

The essential element of the installation will be a reciprocating engine which will use heavy fueloil as fuel. The fuel is introduced directly in the combustion chamber through the injectors, mixing with
the combustion air coming from the turbocompressor. During combustion, the production of some gases
takes place, originating a pressure gradient which moves the air piston. This reciprocating movement
becomes a shaft rotating movement, by a connecting rod-lever system, which activates the alternator
rotor. This engine is MAN 12V48/60 model with the following features:
- Mechanical power
- Electrical power (on-site conditions)
- Engine speed
12,600 kW
12,260 kW
514 rpm
Besides this electrical energy, a residual thermal energy is produced in the cooling process of the
mechanical parts of the reciprocating engine during its operation.
The engine is cooled by two independent water circuits. The low temperature (LT) circuit cools
the air supply, the oil and the fuel injectors, whereas the high temperature (HT) circuit cools the cylinder
heads and liners and the first refrigeration phase of the air supply.
Recovery
Boiler
Exhausted
Gases
WOUT
Engine
QIN
WOUT
HEAT
ELECTRICITY
Heavy
Fuel Oil
WOUT
High
Temperature
Water
COLD
Absorption
Chillers
Figure 2: Diagram of Trigeneration system with inputs and outputs
The high temperature (HT) cooling water will be used in two lithium bromide absorption chillers for
production of cold water to be used in the textile plant. The main technical characteristics of these equipment
are:
-
Maximum power
Water flow
2 x 400 t refrigeration
403.7 m3/h

CDM Executive Board
Cold water temperature (inlet/outlet)
page 5
14C/8C
The cooling energy of the engine will be partially dissipated in the abovementioned consumption
point. The rest will dissipate in the cooling towers and air coolers.
Other part of the residual thermal energy, in the form of exhaust gases, will be utilized in a waste
heat boiler. The main data of waste heat boiler for steam production from engine exhaust gases are :
- Exhaust gases rate
- Gas temperatures (inlet/outlet)
- Nominal steam production
87,800 kg/h
338.5 C/195 C
5,563.63 kg/h (135 psia)
Part of this steam will be used for the own trigeneration in different circuits (lubricating oil,
heavy fuel-oil and diesel). The rest will be sent for its consumption by the textile plant.
A.4.4. Brief explanation of how the anthropogenic emissions of anthropogenic greenhouse

gas (GHGs) by sources are to be reduced by the proposed CDM project activity, including why the
emission reductions would not occur in the absence of the proposed project activity, taking into
account national and/or sectoral policies and circumstances:
The trigeneration system provides electricity, cold and heat to an industrial facility which does
not need to purchase electricity from the power grid and consumes less fuel-oil. Considering the
emissions factors of GHGs with and without the trigeneration system, there is a substantial reduction in
GHG emissions. This is the result of three factors:
There is a reduction of emissions using heavy fuel-oil in the engine to produce

electricity regarding the emissions using the electricity directly from the power
grid reducing also the transmission and distribution losses
The residual thermal energy of the exhaust gases from engine reduces fuel
consumption to produce steam.
The residual thermal energy of the HT water cooling system reduces electricity
imported from the power grid to produce cold water.
A.4.4.1. Estimated amount of emission reductions over the chosen crediting period:
GHG emissions from project implementation are calculated in later sections of this PDD. The
total estimated reductions for the project are 182,744.57 t CO2 in seven years.

CDM Executive Board
page 6
YEAR
2007
2008
2009
2010
2011
2012
2013
TOTAL
Emissions
Reductions
(t CO2eq/year)
26,106.37
26,106.37
26,106.37
26,106.37
26,106.37
26,106.37
26,106.37
182,744.57
Table 1: Emissions reductions in 7 years period
A.4.5. Publics funding of the project activity:

No funds from public national or international sources were used in any aspect of the proposed
project.
SECTION B. Application of a baseline methodology

B.1. Title and reference of the approved baseline methodology applied to the project activity:
There is no approved UNFCCC-CDM baseline methodology for trigeneration project. Thus, a
new methodology is proposed here. The new Baseline methodology is designated:
Baseline Methodology for heavy fuel-oil Trigeneration
B.1.1. Justification of the choice of the methodology and why it is applicable to the project
activity:
The industrial plant, where the proposed trigeneration system is going to be installed, is a
manufactured production of textile products. The plant currently purchases electricity from the power grid
and purchases heavy fuel-oil to fulfill the requirements of the process.
The proposed project involves the installation of an engine which consumes heavy fuel-oil and
supply electricity, heat and cold to the industrial plant.
The emissions reductions are those that are avoided at the industrial facility due to cold, heat and
electricity supplied by the trigeneration system.
The fuel currently used by the industrial plant is heavy fuel-oil, which is also the fuel to be used
in the proposed trigeneration system. Thus the proposed project involves the use of heavy fuel-oil. The
new methodology proposed is specifically designed for trigeneration system using heavy fuel-oil.

CDM Executive Board
page 7
B.2. Description of how the methodology is applied in the context of the project activity:
To estimate emissions reductions, an estimation of annual operating hours in the trigeneration
plant is considered.
For the estimation of baseline emissions, a baseline emission factor of the electricity is calculated
as an average of the operating and build margin emission factor and a baseline emission factor of the
heavy fuel-oil is taken from IPCC guidelines.
For the calculation of the Operating Margin Emission Factor, the Simple Operating Margin (OM)
Method was applied due to the lack of information on Dispatch Data. The calculation of the Build Margin
Emission Factor was completed using the emission factors of power plants whose capacity adds the 20%
of the system generation.
To estimate project emissions, is used the emission factor of the heavy fuel-oil from IPCC
guidelines.
The calculation of the emissions reductions also requires knowing the heat, cold and electricity
output rates of the trigeneration and the efficiencies of the existing boilers and the existing chillers of the
textile factory whose heat an cold output is going to be substituted by output from the trigeneration
system. An upper limit of efficiencies is taken to be the most conservative estimation. The higher the
efficiencies, the lower are the heavy fuel and electricity consumption and associated emissions. The
resulting a priori estimates values are presented in the PDD, and also used to estimate emissions
reductions.
The details of the calculation procedure and results, are shown in the spreadsheet model called
CARACOL_KNITS_EMISSIONS.xls.
The monitoring procedure, rather than estimating annual operating hours of the trigeneration
system, emissions reductions are determined by actual monitored heat, cold and electricity supplied by
the trigeneration system to the industrial facility. Besides, the efficiencies of the existing boilers and
chillers of the textile factory are fixed.
This procedure, to be used for determining and documenting project and baseline emissions and
emissions reductions, form part of the monitoring and verification protocol. The actual procedure is
formalized in another spreadsheet model called DATA.XLS.
The main difference between the procedures for a priori estimates and the actual, is in how the
heat, cold and the electricity output of the trigeneration system are determined. Emission factors remain
unchanged in the two procedures.
B.3. 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:
The proposed project is additional, insofar as it faces and would need to overcome a number of
barriers. In order to determine if the project activity is additional, it is going to be demonstrated by the
Tool for the demonstration and assessment of additionality approved by the Executive Board.

CDM Executive Board
page 8
In that document provides for a step-wise approach to demonstrate and assess additionality.
These steps include:
Identification of alternatives to the project activity
Investment analysis to determine that the proposed project activity is not the most
economically or financially attractive
Barriers analysis
Common practice analysis
Impact of registration of the proposed project activity as a CDM project activity.
In this section, we describe the steps mentioned previously and a general framework for
demonstrating and assessing the additionality.
Step 0.Preliminary screening of project started after 1 January 2000 and prior to 31 December
2005
The Honduran Government undertook efforts to promote the Clean Development Mechanism
(CDM) and the role of Honduras in the provision of low-cost emissions reductions. The Government has
been very proactive in informing to the most important industries on the opportunities that this market has
to offer. Therefore, it is clear that Caracol Knits were aware of the CDM incentives and included them in
the planning of the expansion to its trigeneration facilities.
From the Country Survey Reports made of the Program of National CDM/JI Strategy Studies by
the NSS Program, it is obtained a general description mentioned below about the current scenario in
Honduras.
The major hurdles for the Kyoto Mechanisms in Honduras would be:
-
a lack of local/regional financing sources to execute CDM projects.
The main barriers to participation of the private sector in the CDM project are:
-
lack of capital to finance baseline study and Project Design Document
lack of financing to execute investment project.
Step 1.Identification of alternatives to the project activity consistent with the current laws and
regulations
Sub - Step 1a.Define alternatives to the project activity

The following scenarios may be considered as likely alternatives:
1. Industrial plant continues operating with the same equipment

2. Installation of a trigeneration system.

CDM Executive Board
page 9
The first two scenarios correspond to a business-as-usual (BAU) scenario.
The trigeneration project provides the company with electricity and residual heat and cold for
their industrial process. To obtain similar outputs to the ones provided by the CDM project activity,
Caracol Knits had the alternative to use electricity from the grid to operate its facilities and to produce the
same amount of cold and to use heavy fuel-oil as fuel for producing the same amount of heat in the
textile process. This alternative would increase the emission of greenhouse gases to produce the same
amount of energy due to its lower energy efficiency and to the consumption of energy produced by the
State with a high usage of thermal plants.
Besides the difference on impact on the environment, there are other considerations that must be
analyzed when comparing both alternatives. For example, the alternative to the project activity increases
the dependency of the continuity of the electrical service by the State.
Sub Step 1b.Enforcement of applicable laws and regulations
The usage of heavy fuel-oil and electricity from the grid is in complete compliance with all
applicable legal and regulatory requirements. The use of thermal electricity in the generation system is
not only in compliance with regulations but also widespread and of increasing importance. We can
conclude therefore that the proposed project activity is not the only alternative in compliance with
regulations.
Step 3.Barrier Analysis
Sub-Step 3a.Identify barriers that would prevent the implementation of type of the proposed
project activity.
Technological and Logistical Barriers
The technology used in the trigeneration project is not well known in Honduras except an only
project: Elcatex High Efficiency Cogeneration Project and besides it is the first installation with this
kind of engine (MAN). There are barriers of technological and logistical nature associated with its
application since the equipment for the operation of the trigeneration system is not produced in Honduras,
so it must be imported. This represents a problem to the project developer since they must depend on
imports to set up and maintain the new facility. Besides, the new methodology demands a specific
training to the technicians. Such training could not be payed without the incentives of the CDM.
Barriers due to prevailing practice
The project activity is not the first of its kind in Honduras, there is one trigeneration project
activity of this type currently operational in the host country, but this project is not a CDM project.
Caracol Knits decided to make the registration of the proposed project activity based on the procedures
which are approved by the Executive Board. This project would be potential project proponents from new
proposed project activities in this host country.
Investment Barriers
The process of funding a project such as the trigeneration project of Caracol Knits is a very
challenging task. Honduras suffers from a weak local economy and local banks charge high interest rates,
up to 33% for loans based in Lempiras and 15% for loans based in US dollars. Although there are

CDM Executive Board
page 10
international banks that offer loans in Honduras, the process to get such loans is very long and complex,
since those banks are generally not willing to lend into the country without significant levels of
guarantees and secured hard currency.
As you can see in the below Table 2, Caracol Knits trigeneration project yields a return of
19.3%, without the revenues from CERs sale. When you compare this return to local benchmarks such as
the passive rate of return of banks in Honduras, we could think that the trigeneration project is a better
investment choice. To do a proper comparison of investments, we must not only compare returns but also
risks associated with every investment. The alternative of leaving the money in the bank has low risk for a
company and could give it an average return of 12%.
Investment (US$)
Annual Operating and Maintenance Costs (US$)
Heavy Fuel Oil Consumption Costs (US$)
Annual Incomes (US$)
Annual Cash-Flow (US$)
IRR (%)
Pay-Back (Years)
11,573,680
1,114,375
6,086,111
10,915,127
WITHOUT CERs
2,360,104
19.30
5.08
WITH CERs
2,663,983
22.16
4.56
Table 2. Feasibility Study

By undertaking the trigeneration project, Caracol Knits has also taken several additional risks as
the technological and logistical risks mentioned above. In order to undertake this project, Caracol Knits
should be compensated for the additional risks.
The Caracol Knits Trigeneration Project should, therefore, be compensated with any available
source of additional return; this includes the revenue to be received from the sale of CERs. This will have
a positive effect for the country beyond the evident reductions in GHG.
Step 4.Common Practice Analysis
Sub-Step 4a. Analyze other activities similar to the proposed project

This is the second trigeneration project installed in Honduras, the first with this kind of engine.
Sub-Step 4b. Discuss any similar options that are occurring
There is not more trigeneration projects participating in CDM.
Step 5.Impact of CDM Registration
The reliability of Honduras on thermal generation has increased dramatically in the past years and
it is expected to increase, according to ENEEs generation expansion plans.
The usage of trigeneration technology to import less electricity from the grid and reduce the
greenhouse gas emissions has a strong impact on the environment and the economy. With this
trigeneration project, the contribution is the improvement of the process efficiency.
The implementation of the high efficiency modern systems is an unquestionable tool to reduce
the cost and improve the reliability and quality the energetic supply, and at the same time reduce the
pollution.

CDM Executive Board
page 11
The revenues from the sale of the CERs would increase the projects Internal Rate of Return, thus
making it possible for the project owner to be righteously compensated for the additional risk undertaken.
The sale of the emission reductions will help diversify the income of Caracol Knits, a company with debts
in dollars and business mainly in Lempiras. This hard currency revenue would help Caracol Knits hedge
against depreciation/exchange rate risk.
Moreover, the registration might influence other textile producers in Honduras to set up new
trigeneration plants. The registration of the proposed project activity will have a strong impact in paving
the way for similar projects to be implemented in Honduras, especially in the important textile sector.
Once additionality is determined, the project and baseline scenarios correspond to the cases
where the proposed trigeneration system is or is not installed.
LEAKAGE
BASELINE
PROJECT
Estimates of project and baseline emissions are determined by the model

CARACOL_KNITS_EMISSIONS.xls considering a 7 years project lifetime, the values are summarized
below:
TRIGENERATION
59,570.07 t CO2 eq./ year
COLD ENERGY
SUBSTITUTED
9,428.07 t CO2 eq./ year
HEAT ENERGY
SUBSTITUTED
8,537.23 t CO2 eq./ year
ELECTRICITY ENERGY
SUBSTITUTED
67,789.21 t CO2 eq./ year
BASELINE
13.06 t CO2 eq./ year
PROJECT
91.14 t CO2 eq./ year
EMISSIONS REDUCTIONS
26,106.37 t CO2 eq./ year
Thus, project implementation implies substantial reduction in GHG emissions with respect to the
baseline: 26,106.37 t CO2 eq. / year
B.4. Description of how the definition of the project boundary related to the baseline methodology
selected is applied to the project activity:
The project boundary is the trigeneration system whose input is heavy fuel-oil and whose outputs
are electricity, heat and cold supplied to an industry. Although the project is installed at the industrial site,
the project boundary is strictly the trigeneration system.

CDM Executive Board
page 12
Emissions of CO2,
CH4 and N2O from fuel
combustion
CO2 emissions
from heavy fueloil transport
HEAVY
FUEL OIL
BOILER
HEAT
OM, BM
ELECTRI
CITY
FROM
THE GRID
CHILLER
HEAVY
FUEL-OIL
TEXTILE
FACTORY
COLD
HEAT
TRIGENERATION
SYSTEM
COLD
ELECTRICITY
CO2 emissions
Emissions of CO2,
CH4 and N2O from
fuel combustion
PROJECT
BOUNDARY
Figure 3: Project boundary for heavy fuel-oil trigeneration system
Prior to project installation, and in the absence of the project, the plant acquires all of its
electricity and cold requirements from the power grid and all of its heat requirements with heavy-fuel oil.
Once the project (trigeneration system) is installed, the plant acquires all of its electricity and a
part of heat and cold requirements from the system. The remaining heat demand is met by existing boilers
that operate with heavy fuel-oil and the remaining cold demand is met by existing electrical chillers that
operate from the power grid.
Thus the emission reduction is determined by the electricity and fuel purchases by the industrial
plant that are avoided as a result of electricity, heat and cold supplied from trigeneration system to the
industrial plant.
The project emissions depend entirely on heavy fuel oil input to the trigeneration system, while
the emissions avoided can be determined from heat, cold and electricity produced by the trigeneration
system and used in the factory. Thus we need not only to estimate emissions associated with heavy fueloil consumption of the trigeneration system but also the emissions avoided at the industrial plant, because

CDM Executive Board
page 13
of the heat, cold and electricity output of the trigeneration plant. The associated monitoring determines
both project and baseline emissions.
B.5. Details of baseline information, including the date of completion of the baseline study and
the name of person (s)/entity (ies) determining the baseline:
Date of completing the final draft of this baseline section: May 2006
Name of person/entity determining the baseline: INGEMAS, S.A.
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 project activities could be initiated at the beginning of 2007, once methodology has been
approved and project has been validated.
C.1.2. Expected operational lifetime of the project activity:

25 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 project is expected to be operating by the end of 2007.
C.2.1.2. Length of the first crediting period:
7 years

CDM Executive Board
page 14
C.2.2. Fixed crediting period:

C.2.2.1. Starting date:
Not selected.
C.2.2.2. Length:
Not selected.
SECTION D. Application of a monitoring methodology and plan
D.1. Name and reference of approved monitoring methodology applied to the project activity:
There is no methodology choice available in the UNFCCC website yet, but this project requires
only a straightforward monitoring methodology. The project uses the monitoring methodology
designated:
Monitoring Methodology for heavy fuel-oil Trigeneration
D.2. Justification of the choice of the methodology and why it is applicable to the project activity:
This methodology is applicable to heavy fuel-oil trigeneration project activities in an industrial
process. It has been designed specifically for this type of project.
The document Monitoring Plan of this project presents the methods for collecting data,
calculating GHG emissions reduction, and maintaining the documents to support monitoring and
verification of the Project GHG emissions. A customized procedure was developed in the form of the
Project GHG emission electronic worksheets (DATA.XLS), which must be used by project implementers.
Considering the project boundary, the following data need to be monitored in order to estimate
project and baseline emissions, and emissions reductions:
Annual Heavy fuel-oil consumption by the trigeneration system (kg) (TFCFO)
Net Annual electricity supplied by the trigeneration system (MWh) (TEO)
Net Annual Cold supplied by trigeneration system (MWh) (TCO)
Net Annual Heat supplied by trigeneration system (MWh) (THO)
These four parameters are monitored continuously while being recorded once a year.

CDM Executive Board
page 15
Besides these monitored data, we need to estimate CO2, methane and nitrous oxide from heavy
fuel-oil combustion in the trigeneration system, using a standard emissions factors. We also need to
estimate emissions from heavy fuel-oil transportation as a leakage (external to project site), using a
standard emissions factor.
D.2.1. Option 1: Monitoring of the emissions in the project scenario and the baseline
scenario
This option is not applicable.
D.2.1.1. Data to be collected in order to monitor emissions from the project activity,
and how this data will be archived:
ID number
(Please use
numbers to
ease crossreferencing
to D.3)
Data
variable
Source
of data
Data
unit
Measured
(m),
calculated
(c) or
estimated
(e)
Recording
frequency
Proportio
n of data
to be
monitored
How will
the data be
archived?
(electronic/
paper)
Comment
D.2.1.2. Description of formula used to estimate project emissions (for each gas,
source, formula/algorithm, emissions units of CO2 equ.)
D.2.1.3. Relevant data necessary for determining the baseline of anthropogenic
emissions by sources of GHGs within the project boundary and how such data will be collected and
archived :
ID number
(Please use
numbers to
ease crossreferencin
g to table
D.3)
Data
variable
Sourc
e of
data
Data
unit
Measured
(m),
calculated
(c),
estimated
(e),
Recordin
g
frequency
Proportio
n of data
to be
monitored
How will
the data be
archived?
(electronic
/ paper)
Comment

CDM Executive Board
page 16
D.2.1.4. Description of formula used to estimate baseline emissions (for each gas, source, formula/algorithm, emissions units of CO2
equ.)
D. 2.2. Option 2: Direct monitoring of emission reductions from the project activity (values should be consistent with those in section E).
D.2.2.1. Data to be collected in order to monitor emissions from the project activity, and how this data will be archived:
ID number
(Please use numbers to
ease cross-referencing
to table D.3)
Data
variable
TFCFO
TEO
TCO
THO
Source of data
Annual heavy
Fuel-Oil
Consumption in
the Trigeneration
Trigeneration
system net
Electricity
Output capacity
Trigeneration
Cold Output
Rate
Trigeneration
Heat Output
Rate
Data
unit
Measured (m),
calculated (c),
estimated (e),
Recording
frequency
Proportion of data
to be monitored
How will the data be

archived? (electronic/
paper)
Kg.
Fuel
Year
100%
Electronic (spreadsheet)
MWh
Year
100%
MWh
Year
100%
MWh
Year
100%
Comment
D.2.2.2. Description of formula used to calculate project emissions (for each gas, source, formula/algorithm, emissions units of CO2
equ.):
The project emissions are produced by the heavy fuel-oil combustion in the trigeneration system. These emissions will be represented as the
multiplication of an emissions factor by energy consumption, which depends on the heavy fuel-oil consumption in the trigeneration system.
PROJECT DESIGN DOCUMENT FORM (CDM-PDD) - Version 04

CDM Executive Board
page 17
Summing up, the emissions are proportional to the heavy fuel-oil consumption in the
trigeneration system, which is monitored. These emissions will be:
1.
CO2 actual emissions from heavy fuel-oil combustion (t CO2/year)
The CO2 actual emissions from heavy fuel oil combustion, PECO2 (t CO2/year) are determined by
the following expression:
PECO 2 = TEC FO * EFCO 2
(D.1)
where:
TECFO: actual energy trigeneration consumption (MWh/year)
EFCO2: CO2 emission factor of heavy fuel-oil (t CO2/MWh, net calorific value basis)
2.
CH4 methane actual emissions from heavy fuel oil combustion (tCH4/year)
The project methane actual emissions from heavy fuel oil combustion, PECH4 (t CH4/year) are
determined by the following expression:
PECH 4 =
TECFO * MEF
10 3
(D.2)
where:
TECFO = actual energy trigeneration consumption (MWh/year)
MEF = methane emission factor for heavy fuel-oil combustion (kg CH4/MWh, net calorific value
basis)
In units of carbon dioxide equivalent, PECH4.EQ (t CO2 eq/year)
PECH 4.EQ = PECH 4 * GWPCH 4
(D.3)
where:
GWP (CH4) = global warming potential of methane = 21
3.
N2O actual emissions from heavy fuel-oil combustion (t N2O/year)
The project N2O actual emissions from heavy fuel oil combustion, PEN2O (t N2O/year) determined
by the following expression:

CDM Executive Board
page 18
PE N 2O =
TEC FO * NEF
10 3
(D.4)
where:
TECFO = actual energy trigeneration consumption (MWh/year)
NEF = nitrous oxide emission factor heavy fuel-oil combustion (kg N2O/MWh, net calorific
value basis)
In units of carbon dioxide equivalent, PEN2O , EQ (t CO2 eq/year)
PE N 2O.EQ = PE N 2O * GWPN 2O
(D.5)
where:
GWP (N2O) = global warming potential of nitrous oxide = 310
Total project actual emissions are given by the sum of the components analyzed above:
PEtotal= PECO2 + PECH4,EQ + PEN2O,EQ
(D.6)
Baseline actual emissions depend on heat, cold and electricity output from the trigeneration
system that is supplied to the industrial plant. By considering baseline and project emissions, emissions
reductions are determined in a straightforward manner.
The staff responsible for project monitoring should complete the electronic worksheets on a
yearly basis (DATA.XLS). The spreadsheet automatically provides annual totals in terms of GHG
reductions achieved through the implementation of the trigeneration system.
The monitoring methodology is highly compatible with the New Baseline Methodology termed
Baseline Methodology for Heavy Fuel-oil Trigeneration. A monitoring methodology must be
compatible with the baseline methodology used.
D.2.3. Treatment of leakage in the monitoring plan
D.2.3.1. If applicable, please describe the data and information that will be collected
in order to monitor leakage effects of the project activity
ID number
(Please use
numbers to
ease crossreferencin
g to table
D.3)
5
Data
variable
BT
Source
of data
Baseline
Data unit
No
Measured
(m),
calculated
(c) or
estimated
(e)
Recording
frequency
Proportio
n of data
to be
monitored
How will
the data be
archived?
(electronic/
paper)
year
100%
paper
Comment

CDM Executive Board
Trucks
6
PT
Project
Trucks
Distanc
e
page 19
trucks/yea
r
No
trucks/yea
r
km
year
100%
paper
year
100%
paper
We need to calculate emissions from heavy fuel-oil transportation as a leakage (external to

project site), using a standard emissions factor.
D.2.3.2. Description of formula used to estimate leakage (for each gas, source,
formula/algorithm, emissions units of CO2 equ.)
To calculate the leakage emissions from heavy fuel-oil transportation, using a standard emissions
factor, we consider the trucks emissions.
The baseline leakage emissions must be calculated as it follows:
BLE =
BT * D * DEF
10 3
(D.7)
BLE Baseline Leakage Emissions (t CO2eq/year)

BT Baseline Trucks (No trucks/year)
D Distance between sources fuel to project situation (km)
DEF Diesel Emissions Factor (kg CO2/km)
And the Project leakage emissions are calculated with the formula mentioned below:
PLE =
PT * D * DEF
10 3
(D.8)
PLE Project Leakage Emissions (t CO2eq/year)

PT Project Trucks (No trucks/year)
D.2.4. Description of formula used to estimate emission reductions for the project activity
(for each gas, source, formula/algorithm, emissions units of CO2 equ.)
To determine reductions emissions for the project activity, the used formula is consistent with the
formula outlined in the description of the baseline methodology.
ER = BETOTAL + BE ELEC + BE ch, ELEC + BLE (PETOTAL + PLE )
(D.9)

CDM Executive Board
page 20
D.3. Quality control (QC) and quality assurance (QA) procedures are being undertaken for data
monitored
Data (Indicate
table and ID
number e.g. 3.1.; 3.2.)
1
Uncertainty level of data

(High/Medium/Low)
Low
Low
Low
Low
Low
Low
Low
Explain QA/QC procedures planned for these data, or why such

procedures are not necessary.
These data will be directly used for calculation of emissions

reductions
reductions
reductions
reductions
reductions
reductions
reductions
D.4. Please describe the operational and management structure that the project operator will
implement in order to monitor emission reductions and any leakage effects, generated by the
project activity
Besides the measured parameters or calculated from measured parameters named in this
Monitoring Methodology, there are two parameters which affect the calculation of emission reduction.
The methodology and monitoring proposed to calculate emissions reduction are affected by the
efficiencies of the chillers and the boilers of the textile plant. The values of these efficiencies used to the
calculation were supplied by Caracol Knits and they are fixed for all crediting period.
D.5
Name of person/entity determining the monitoring methodology:

INGEMAS
SECTION E. Estimation of GHG emissions by sources

E.1.
Estimate of GHG emissions by sources:
The figures below compare the current situation (1) for heat, electricity and cold supply to the
industrial plant with the situation (2) after the trigeneration system has been installed. As in baseline
section B.4., the project boundary is shown by the dashed line in Figure 3.
(1) Baseline

CDM Executive Board
page 21
Emissions of CO2,
combustion
CO2 emissions
HEAVY
FUEL OIL
BOILER
HEAT
OM, BM
ELECTRI
CITY
FROM
THE GRID
CHILLER
COLD
TEXTILE
FACTORY
Figure 4: Baseline diagram

CDM Executive Board
page 22
(2) Project line

Emissions of CO2,
combustion
CO2 emissions
HEAVY
FUEL OIL
BOILER
HEAT
OM, BM
CHILLER
ELECTRI
CITY
FROM
THE GRID
TEXTILE
FACTORY
COLD
HEAVY
FUEL-OIL
HEAT
TRIGENERATION
SYSTEM
COLD
ELECTRICITY
CO2 emissions
Emissions of CO2,
CH4 and N2O from
fuel combustion
PROJECT
BOUNDARY
Figure 5: Project diagram
The project emissions are associated with the heavy fuel-oil combustion. This emission contains CO2,
CH4 and N2O GHG emissions.
PAEC FO =
PAFC FO * NCV FO
860 * 10 3
(E.1)
PAFCFO Annual heavy Fuel-oil Consumption of the trigeneration (Kg fuel)

PAECFO Annual Energy Consumption of heavy fuel-oil in the trigeneration (MWh)
NCVFO Net Calorific Value of heavy fuel-oil (kcal/kg)

CDM Executive Board
page 23
a) CO2 Project Emissions:
PECO 2 = PAEC FO * EFCO 2
(E.2)
PECO2 CO2 Project Emissions from heavy fuel-oil combustion in the Trigeneration
System (t CO2/year)
PAECFO Energy Consumption of heavy fuel-oil in the trigeneration (MWh/year)
EFCO2 CO2 Emissions Factor of heavy fuel-oil = 77.4 (t CO2/TJ, Net Calorific Value
basis) = 0.279 t CO2/MWh (Source IPCC)
b) CH4 Project Emissions:
PECH 4 =
PAECFO * MEF
10 3
(E.3)
PECH4 CH4 Project Emissions from heavy fuel-oil combustion in the Trigeneration
System (t CH4/year)
MEF = Methane Emission Factor for heavy fuel-oil combustion = 3.0 (kg CH4/TJ, Net
Calorific Value basis) = 0.011 kg CH4/MWh (Source IPCC)
In units of carbon dioxide equivalent, PECH4.EQ (t CO2 eq/year)
PECH 4.EQ = PECH 4 * GWPCH 4
(E.4)

c) N2O Project Emissions:
PE N 2O =
PAEC FO * NEF
10 3
(E.5)
PEN2O N2O Project Emissions from heavy fuel-oil combustion in the Trigeneration
System (t N2O /year)
NEF = nitrous oxide emission factor heavy fuel-oil combustion = 0.3 (kg N2O/TJ, Net
Calorific Value basis) =0.001 kg N2O/MWh (Source IPCC)
In units of carbon dioxide equivalent, PEN2O.EQ (t CO2 eq/year)
PE N 2O.EQ = PE N 2O * GWPN 2O
(E.6)

CDM Executive Board
page 24
Using the formulas explained above, project emissions were calculated and summarized in the
table below:

CDM Executive Board
Year
Year
1
2
3
4
5
6
7
2007
2008
2009
2010
2011
2012
2013
page 25
PECO2
PAECFO
Annual Energy Consumption
t CO2
of heavy Fuel-Oil in the
emissions/year
trigeneration (MWh)
213,450.35
59,450.19
213,450.35
59,450.19
213,450.35
59,450.19
213,450.35
59,450.19
213,450.35
59,450.19
213,450.35
59,450.19
213,450.35
59,450.19
PECH4
PECH4,EQ
PEN2O
t CH4
emissions/year
t CO2 eq.
emissions/year
t N 2O
emissions/year
2,31
2,31
2,31
2,31
2,31
2,31
2,31
48.41
48.41
48.41
48.41
48.41
48.41
48.41
0.23
0.23
0.23
0.23
0.23
0.23
0.23
PEN2O,EQ
PETOTAL
Total t CO2 eq.
t CO2 eq.
Emissions/yea
Emissions/year
r
71.46
59,570.07
71.46
59,570.07
71.46
59,570.07
71.46
59,570.07
71.46
59,570.07
71.46
59,570.07
71.46
59,570.07
Table 3: Estimated Project Emissions
E.2. Estimated leakage:

The estimated leakage emissions proceed from heavy fuel-oil transportation. We consider the trucks emissions using the Diesel Emission Factor
DEF (kgCO2/km) from IPCC. The estimated project leakage emissions are showed in the table below:
PT
PLE
Year
Year
Project Heavy Duty

Diesel Trucks
(No.trucks/year)
t CO2 eq
emissions/year
1
2
3
4
5
6
7
2007
2008
2009
2010
2011
2012
2013
644
644
644
644
644
644
644
91.14
91.14
91.14
91.14
91.14
91.14
91.14
Table 4: Estimated project leakage emissions

CDM Executive Board
page 26
E.3. The sum of E.1 and E.2 representing the project activity emissions:
Project emissions are the sum of heavy fuel-oil combustion and project leakage emissions. The
table below showed the total project emissions:
PETOTAL
PLE
PE
Year
Year
Project
Leakage
Total Project
Emissions
(t CO2/year)
1
2
3
4
5
6
7
2007
2008
2009
2010
2011
2012
2013
59,570.07
59,570.07
59,570.07
59,570.07
59,570.07
59,570.07
59,570.07
91.14
91.14
91.14
91.14
91.14
91.14
91.14
59,661.21
59,661.21
59,661.21
59,661.21
59,661.21
59,661.21
59,661.21
TOTAL
417,628.46
Table 5: Total Estimated Project Emissions
E.4.
Estimated anthropogenic emissions by sources of greenhouse gases of the baseline:
The baseline is associated with the heavy fuel-oil combustion to produce heat and with the supply
from the grid of the electricity to consumption in the plant and in the electric chillers to produce cold. The
formula to calculate the baseline emissions due to heavy fuel-oil consumption are the same as used in the
project, are showed below:
a) CO2 Baseline Emissions:
BECO 2 =
ABHC FO * EFCO 2
eb , b
(E.7)
BECO2 CO2 Baseline Emissions from heavy fuel-oil combustion (t CO2/year)

ABHCFO Annual Baseline Heat Consumption (MWh)
EFCO2 CO2 Emissions Factor of heavy fuel-oil (t CO2/TJ, Net Calorific value basis) =
77.4 (t CO2/TJ) = 0.279 t CO2/MWh (Source IPCC)
eb,b existing Boiler Efficiency Baseline
b) CH4 Baseline Emissions:
BECH 4 =
ABHCFO * MEF
eb ,b * 10 3
(E.8)
BECH4 CH4 Baseline Emissions from heavy fuel-oil combustion (t CH4/year)

CDM Executive Board
page 27
MEF = Methane Emission Factor for heavy fuel-oil combustion = 3.0 (kg CH4/TJ, Net
Calorific value basis) = 0.011 kg CH4/MWh (Source IPCC)
In units of carbon dioxide equivalent, BECH4.EQ (t CO2 eq/year)
BE CH 4.EQ = BE CH 4 * GWPCH 4
(E.9)

c) N2O Baseline Emissions:
BE N 2O =
ABHC FO * NEF
eb ,b *10 3
(E.10)
BEN2O N2O Baseline Emissions from heavy fuel-oil combustion (t N2O /year)
NEF = nitrous oxide emission factor heavy fuel-oil combustion = 0.3 (kg N2O/TJ, Net
Calorific value basis) = 0.001 kg N2O/MWh (Source IPCC)
In units of carbon dioxide equivalent, BEN2O.EQ (t CO2 eq/year)
BE N 2O.EQ = BE N 2O * GWPN 2O
(E.11)

CDM Executive Board
page 28
The table below shows the result of baseline emissions due to the heavy fuel-oil combustion to produce heat:
Year
Year
1
2
3
4
5
6
7
TOTAL
2007
2008
2009
2010
2011
2012
2013
BECO2
ABHCFO
Annual
t CO2
Baseline Heat
emissions/yea
consumption
r
(MWh)
30,590.45
8,520.05
30,590.45
8,520.05
30,590.45
8,520.05
30,590.45
8,520.05
30,590.45
8,520.05
30,590.45
8,520.05
30,590.45
8,520.05
BECH4
BECH4,EQ
BEN2O
t CH4
emissions/yea
r
t CO2 eq.
emissions/yea
r
t N 2O
emissions/yea
r
0.33
0.33
0.33
0.33
0.33
0.33
0.33
6.94
6.94
6.94
6.94
6.94
6.94
6.94
0.03
0.03
0.03
0.03
0.03
0.03
0.03
BEN2O,EQ
BETOTAL
t CO2 eq.
Total t CO2 eq.
emissions/yea Emissions/yea
r
r
Table 6: Estimated Baseline Emissions from heavy fuel-oil combustion.
10.24
10.24
10.24
10.24
10.24
10.24
10.24
8,537.23
8,537.23
8,537.23
8,537.23
8,537.23
8,537.23
8,537.23
59,760.63

CDM Executive Board
page 29
For the calculation of baseline emissions due to electricity, a baseline emissions factor BEFELEC
was calculated as an average of the operating margin (BEFOM) and the build margin (BEFBM). This
calculation of OM and BM was done in the CARACOL_KNITS_EMISSIONS.xls using the most recent
data of Honduras National Interconnected System obtained from the national dispatch center.
The Operating Margin is calculated by Simple Operating Margin Method. We do not have the
data of the 3 years, therefore the data of the available last year are used.
The Simple OM Emission Factor (BEFOM) is calculated as the generation-weighted average
emissions per electricity unit (t CO2eq/MWh) of all generating sources serving the system, not including
low-operating cost and must-run power plants:
F * COEF
=
GEN
i, j
BEFOM
i, j
i, j
(E.12)
where:
Fi,j is the amount of fuel i (MWh / year)consumed by relevant power sources j ; j refers to the
power sources delivering electricity to the grid, not including low-operating cost and must-run
power plants, and including imports to the grid
COEFi,j is the CO2 emission coefficient of fuel i (t CO2 / MWh), taking into account the carbon
content of the fuels used by relevant power sources j and the percent oxidation of the fuel
GENj is the electricity (MWh/year) delivered to the grid by source j.
The CO2 emission coefficient COEFi is obtained as:
COEFi = EFCO2,i OXIDi
(E.13)
where:
OXIDi is the oxidation factor of the fuel i (see page 1.29 in the 1996 Revised IPCC
Guidelines for default values)
EFCO2,i is the CO2 emission factor per unit of energy of the fuel i.
The obtained BEFOM value is 0.75 (see CARACOL_KNITS_EMISSIONS.xls).
The Build Margin Emission Factor (BEFBM) as the generation-weighted average emission
factor (t CO2eq/MWh) of a sample of power plants m, as follows:
F * COEF
=
GEN
i,m
BEFBM
i,m
i,m
(E.14)
where:
Fi,m COEFi,m and GENm are analogous to the variables described for the simple OM
method above for plants m.

CDM Executive Board
page 30
To calculate the Build Margin emission factor BEFBM ex-ante,we have to base on the most recent
information available on plants already built for sample group m at the time of PDD submission. In our
case, the sample group m consists of the power plants capacity additions in the electricity system that
comprise 20% of the system generation and that have been built most recently.
Power plant capacity additions registered as CDM project activities should be excluded from the
sample group m.
The obtained BEFBM value is 0.72 (see CARACOL_KNITS_EMISSIONS.xls)
To calculate the baseline emission factor BEELEC as the weighted average of the Operating Margin
emission factor (BEFOM) and the Build Margin emission factor (BEFBM):
BEFELEC = w OM * BEFOM + w BM * BEFBM
(E.15)
where the weights wOM and wBM, by default, are 50% (i.e., wOM = wBM = 0.5), and BEFOM and BEFBM are
calculated as described above and are expressed in tCO2eq/MWh.
The obtained BEFELEC value is 0.74 (see CARACOL_KNITS_EMISSIONS.xls)
Once the baseline emissions factor from electricity grid to supply the plant and the chillers is
obtained, the baseline emissions are calculated with the following formula:
BE ELEC = ABEC * BEFELEC
(E.16)
BEELEC - Emissions from Electricity supply to plant, those is offset by output from trigeneration
system (t CO2eq/year)
ABEC- Estimated Trigeneration system net Annual Electricty Output capacity (MWh)
BEFELEC- Baseline Emissions Factor for electricity generation (t CO2eq/MWh, Electricity Mix)
To calculate the baseline emissions from electricity supply to chillers, that is offset by output
from trigeneration system, the formula below must be applied:
ABCEC =
ETCO
ech ,b
(E.17)
ETCO- Estimated Trigeneration Cold Output Rate (MWh)

ABCEC Annual Baseline Cold Electricity Consumption (MWh)
ech,b electrical Chiller Efficiency - Baseline
BE ch , ELEC = ABCEC * BEFELEC
(E.18)
BEch,ELEC - Emissions from Electricity supply to chillers, those is offset by output from trigeneration
system (t CO2eq/year)

CDM Executive Board
page 31
ABCEC Annual Baseline Cold Electricity Consumption (MWh)

BEFELEC- Baseline Emissions Factor for electricity generation (t CO2eq/MWh, Electricity Mix)
ABCEC
Year
Year
1
2
3
4
5
6
7
2007
2008
2009
2010
2011
2012
2013
Annual Baseline
Cold Electricity
Consumption
(MWh/year)
12,740.64
12,740.64
12,740.64
12,740.64
12,740.64
12,740.64
12,740.64
ABEC
Estimated
Trigeneration system
net Annual Electricity
Output capacity
(MWh/year)
91,607.04
91,607.04
91,607.04
91,607.04
91,607.04
91,607.04
91,607.04
BEFELEC
BEELEC+BEch,ELEC
CO2 factor
emissions
(t CO2eq/MWh)
CO2 emissions
(t CO2eq/year)
0.74
0.74
0.74
0.74
0.74
0.74
0.74
77,217.28
77,217.28
77,217.28
77,217.28
77,217.28
77,217.28
77,217.28
Table 7: Estimated Baseline Emissions from electricity supply
The estimated baseline leakage emissions proceed from heavy fuel-oil transportation. We
consider the trucks emissions using the Diesel Emission Factor DEF (kgCO2/km) from IPCC.
The estimated baseline leakage emissions are showed in the table below:
Year
Year
1
2
3
4
5
6
7
2007
2008
2009
2010
2011
2012
2013
BT
Baseline
Heavy Duty
Diesel Trucks
(No trucks)
92
92
92
92
92
92
92
BLE
t CO2 eq
emissions/yea
r
13.06
13.06
13.06
13.06
13.06
13.06
13.06
Table 8: Estimated Baseline Leakage emissions
Baseline emissions are the sum of heavy fuel-oil combustion, the electricity emissions and
baseline leakage emissions due to the heavy fuel-oil in trucks transport. The table below showed the total
project emissions:
BETOTAL
BEELEC +BEch,ELEC
BLE
BE

CDM Executive Board
page 32
Year
Year
Heavy
Fuel-oil
Electricity
Leakag
e
Total Baseline
Emissions
(t CO2eq/year)
1
2
3
4
5
6
7
2007
2008
2009
2010
2011
2012
2013
8,537.23
8,537.23
8,537.23
8,537.23
8,537.23
8,537.23
8,537.23
77,217.28
77,217.28
77,217.28
77,217.28
77,217.28
77,217.28
77,217.28
13.06
13.06
13.06
13.06
13.06
13.06
13.06
85,767.57
85,767.57
85,767.57
85,767.57
85,767.57
85,767.57
85,767.57
TOTAL
600,372.99
Table 9: Total Estimated Baseline Emissions
E.5.
Difference between E.4 and E.3 representing the emission reductions of the project activity:
The emissions reductions are calculated as the difference between baseline and project emissions,
taking into account any adjustments for leakage. The formula used to estimate the emission reduction
from this CDM project activity is a simple equation:
ER = ( BETOTAL + BE ELEC + BE ch , ELEC + BLE ) ( PETOTAL + PLE )
(E.19)

CDM Executive Board
E.6.
page 33
Table providing values obtained when applying formula above:
Caracol Knits Trigeneration Project will displace electricity from the grid and decrease the heavy
fuel-oil consumption, reducing the GHG emissions with the high efficiency trigeneration process. The
result of the emissions reductions are showed in the table below:
The ex post calculation of baseline emission rates may only be used if propoer justification is
provided. Notwithstanding, the baseline emission rates shall also be calculated ex ante and
reported in the CDM-PDD. The result of the application of the formulae above shall be
indicated using the following tabular format.
Estimation of
Estimation
Estimation of
Estimation of
of baseline
project
emission
Year
leakage
activity
emissions
reductions
(tonnes of CO2e)
emissions
(tonnes of
(tonnes of
(tones of CO2e)
CO2e)
CO2e)
2007
59,570.07
85,767.57
91.14
26,106.37
2008
59,570.07
85,767.57
91.14
26,106.37
2009
59,570.07
85,767.57
91.14
26,106.37
59,570.07
85,767.57
91.14
26,106.37
2010
2011
59,570.07
85,767.57
91.14
26,106.37
2012
59,570.07
85,767.57
91.14
26,106.37
2013
59,570.07
85,767.57
91.14
26,106.37
416,990.48
600,372.99
637.98
182,744.59
Total
(tonnes
of
CO2e)
Table 10: Total Emission Reduction

CDM Executive Board
page 34
SECTION F. Environmental impacts

F.1.
Documentation on the analysis of the environmental impacts, including transboundary
impacts:
>>
F.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:
>>
SECTION G. Stakeholders comments
>>
G.1.
>>
Brief description how comments by local stakeholders have been invited and compiled:
G.2.
>>
Summary of the comments received:
G.3.
>>
Report on how due account was taken of any comments received:

CDM Executive Board
page 35
Annex 1
CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY
Organization:
Ingemas S.A.
Street/P.O.Box:
Avda. Jos Garca Bernardo, 340, 33203
Building:
Ingemas
City:
Gijn
State/Region:
Asturias
Postfix/ZIP:
Country:
Spain
Telephone:
+34 985 13 15 16
FAX:
+ 34 985 13 09 60
E-Mail:
comercial@ingemas.com
URL:
http://www.ingemas.com/inicio.html
Represented by:
Laura Fernndez
Title:
PhD. Mining Engineer
Salutation:
Technical advisor
Last Name:
Soto
Middle Name:
Fernndez
First Name:
Laura
Department:
Sales Department
Mobile:
Direct FAX:
+ 34 985 13 09 60
Direct tel:
+34 985 13 15 16
Personal E-Mail:
lfernandez@ingemas.com
Organization:
Street/P.O.Box:
Building:
City:
State/Region:
Postfix/ZIP:
Country:
Telephone:
FAX:
E-Mail:
URL:
Represented by:
Title:
Salutation:
Last Name:
Middle Name:
First Name:
Department:
Mobile:
Direct FAX:
Direct tel:
Personal E-Mail:
Caracol Knits, S.A. de C.V.

Caracol
Potrerillos
Corts
Honduras
(504) 230 - 5444
(504) 230 - 5422
caracolknits@confecciones.hn
Daniel Roberto Facuss
President
Project sponsor
Facuss
Daniel Roberto

CDM Executive Board
page 36
Annex 2
INFORMATION REGARDING PUBLIC FUNDING
No funds from public national or international sources were used in any aspect of the proposed
project.
Annex 3

CDM Executive Board
page 37
BASELINE INFORMATION
For detail, please see CARACOL_KNITS_EMISSIONS.xls.
Emissions factor for electricity supplied from the grid
Electricity supplied from the trigeneration system to the industrial plant reduces the amount of
electricity that the plant needs to acquire from the grid. The emissions reductions corresponding to this
reduced acquisition depends on the emissions factor for electricity supplied from the grid. This emissions
factor, which only applies in the baseline emissions calculation is determined in this Annex.
The emissions of GHG for electricity supply from the grid to any point of consumption depend
on the emissions factor for electricity generation, as well as transmission and distribution losses.
The emissions factor for electricity generation is based on an economic dispatch analysis of
Honduras National Interconnected System (SIN), which provides electricity to the region where the
proposed project is located. The basic data and results of the dispatch analysis are provided below.
Consumption forecast on the National Interconnected System (SIN)
The consumption forecast and annual average growth of the electricity for the next seven years
are shown in Table 3.1.
YEAR
ELECTRICITY
SALES (MWh)
2007
2008
2009
2010
2011
2012
2013
5,034
5,332
5,644
5,957
6,277
6,613
6,961
NET
CONSUMPTION
(MWh)
6,539
6,863
7,221
7,575
7,925
8,289
8,662
LOAD
FACTOR
(%)
65.01
65.01
65.01
65.01
65.01
65.01
65.01
TOTAL
DEMAND
(MWh)
1,158.8
1,217.7
1,280.6
1,342.9
1,404.5
1,468.5
1,534.3
YEAR
PERIOD
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
Table 3.1.Consumption Forecast in Honduras (Data obtained from ENEE)
Projected Generation Units

The generation units considered for the operation of SIN, correspond to the information of ENEE
contained in yearly statistics are as follow:
PROJECTS
2007
2008
2009
2010
2011
2012
2013

CDM Executive Board
El Cisne
San Carlos
Cortecito
Suyapa
San Juan
Texiguat
Cangrejal
Diesel
medium speed
Patuca 3
Tabln
Coal Plant
(PFBC)
Patuca 2
TOTAL
page 38
0.7
2.3
3.2
8.5
6.1
3.4
40
160
80
100
18.6
500
6,2
18
200
180
18,6
500
270
270
Table 3.2.Projected Generation Units (Data obtained from ENEE)
On the other hand, we collected the Hydrothermal Plan from 2007 to 2013. The dispatch analysis
we applied is rather simple and straightforward.
HYDROTHERMAL PLAN 2007 2013
YEAR
PROJECT
ADDITION/RETIRED
MW
2007
La Puerta
-10
2008
Gas Turbine
100
2009
Cangrejal
40.2
Gas Turbine
200
2010
Santa Fe
-5
2011
Patuca 2
270
Elcosa
-80
Lufussa I
-39.5
ROM
-82
Combinated Cycle
250
Gas Turbine
100
2013
Table 3.3.Thermal Plan by ENEE (Data obtained from ENEE)
The participation of fossil fuel in the total electrical generation will be the most important source.

CDM Executive Board
page 39
The emissions factor for electricity generation can be determined from a combined margin of the
Operating Margin and Build Margin emission factor of the electricity generation in Honduras in 2004.
Fuel Type
Year online
Generation
(GWh/year)
Rio Blanco
Hydro
Sept. 2004
8.00
La Esperanza
Hydro
June 2004
1.90
Babilonia
Hydro
May. 2004
17.75
La Nieve
Hydro
2002
1.20
Nacaome
Hydro
2002
16.20
El Coyolar
Hydro
2000
0.00
Santa Mara del Real
Hydro
1986
6.00
Zacapa
Hydro
1994
0.01
Caaveral
Hydro
1964
149.82
El Cajn
Hydro
1985
702.39
El Nspero
Hydro
1982
29.69
Rio Lindo
Hydro
1971
467.49
Tres Valles
Biomass
April 2004
5.04
Aysa
Biomass
1998
1.30
Aguan
Biomass
2002
1.80
La Grecia
Biomass
2002
36.80
Lean
Biomass
2002
1.80
Eda
Biomass
1998
0.00
Bunker
Bunker
Bunker
Bunker
Bunker
Aug. 2004
Aug. 2004
June 2004
March 2004
Feb. 2004
7.62
407.21
60.38
534.35
15.41
Bunker
2002
144.09
Bunker
Bunker
Bunker
Bunker
Bunker
Bunker
Bunker
Diesel
2002
2002
1999
1999
1984
1994
1994
1994
132.90
270.19
380.68
460.93
470.88
0.10
421.96
1.46
Diesel Gas T.
Diesel Gas T.
Diesel Gas T.
1994
1995
1970
3.44
66.59
7.79
Diesel Motors / Bunker
BIOMASS
HYDRO
Plant Identification
Gas
Turb.
Total
Laeisz Naco
Lufussa III
Elcatex
Enersa
Laeisz Tocontn
Nacional de Ing
(LP+CTE)
Laeisz Miraflores
Cemcol La Puerta
Emce II
Lufussa II
Emce I
Ampac
Elcosa
Santa Fe
La Puerta Mex
Lufussa I
La Puerta
4,833.16
Table 3.4.Electricity generation in Honduras in 2004 (ENEE 2004)

CDM Executive Board
page 40
To calculate the Operating Margin emission factor (BEFOM,) is calculated as the generationweighted average emissions per electricity unit (t CO2eq/MWh) of all generating sources serving the
system, not including low-operating cost and must-run power plants:
i, j
BEFOM =
i, j
* COEFi, j
GEN
(3.1)
j
where:
Fi,j is the amount of fuel i (MWh / year) consumed by relevant power sources j; j refers to the
power sources delivering electricity to the grid, not including low-operating cost and must-run
power plants, and including imports to the grid
COEFi,j is the CO2 emission coefficient of fuel i (t CO2 /Mwh), taking into account the carbon
content of the fuels used by relevant power sources j and the percent oxidation of the fuel
GENj is the electricity (MWh/year) delivered to the grid by source j.
The CO2 emission coefficient COEFi is obtained as:
COEFi = EFCO2,i OXIDi
(3.2)
where:
OXIDi is the oxidation factor of the fuel i (see page 1.29 in the 1996 Revised IPCC
Guidelines for default values)
EFCO2,i is the CO2 emission factor per unit of energy of the fuel i.
OXIDdiesel
EFdiesel (tC/TJ)
EF diesel (t CO2/TJ)
OXIDbunker
EFbunker (tC/TJ)
EFbunker (tCO2/TJ)
0.99
20.20
74.07
0.99
21.10
77.37
IPCC Table 1-6

IPCC Table 1-1
IPCC Table 1-6
IPCC Table 1-1
Table 3.5.IPCC guidelines values

CDM Executive Board
Diesel Motors / Bunker (Eff=0,37)
Plant
Identification
Laeisz Naco
Lufussa III
Elcatex
Enersa
Laeisz Tocontn
Nacional de Ing
(LP+CTE)
Laeisz Miraflores
Cemcol La Puerta
Emce II
Lufussa II
Emce I
Ampac
Elcosa
Santa Fe
La Puerta Mex
Gas
Turb.
(Eff=0,27 Lufussa I
)
La Puerta
page 41
Bunker
Bunker
Bunker
Bunker
Bunker
Generation in
2004
(GWh/year)
7.62
407.21
60.38
534.35
15.41
Bunker
144.09
389.44
107,386.19
Bunker
Bunker
Bunker
Bunker
Bunker
Bunker
Bunker
Diesel
Diesel
Gas T.
Diesel
Gas T.
Diesel
Gas T.
132.90
270.19
380.68
460.93
470.88
0.10
421.96
1.46
359.19
730.24
1,028.86
1,245.75
1,272.66
0.26
1,140.44
3.95
99,045.23
201,362.15
283,703.83
343,511.05
350,931.62
71.55
314,472.69
1,042.39
3.44
12.75
3,366.30
66.59
246.61
65,102.73
7.79
28.85
7,616.47
3,385.97
9,229.18
2,541,478.20
Fuel
Type
Total
Fuel Consumption
(GWh/year)
Emissions
(t CO2/year)
20.58
1,100.57
163.19
1,444.19
41.64
5,675.91
303,478.60
44,998.88
398,230.37
11,482.24
0,75
Operating Margin
Table 3.6.Power Plants included in the determination of the Operating Margin
The Build Margin (BEFBM) emission factor as the generation-weighted average emissions factor
(t CO2eq/MWh) of a sample of power plants m, as follows:
F * COEF
=
GEN
i ,m
BEFBM
i ,m
i ,m
(3.3)
where:
Fi,m ,COEFi,m and GENm are analogous to the variables described for the simple OM
method above for plants m.
To calculate the Build Margin emission factor BEFBM ex-ante, we have to base on the most recent
information available on plants already built for sample group m at the time of PDD submission. In our
case, the sample group m consists of the power plants capacity additions in the electricity system that
comprise 20% of the system generation and that have been built most recently.

CDM Executive Board
page 42
Power plant capacity additions registered as CDM project activities should be excluded from the
sample group m.
Plant
Identificatio
n
Fuel
Type
Rio Blanco
La Esperanza
Babilonia
Tres Valles
Laeisz Naco
Lufussa III
Elcatex
Enersa
Hydro
Hydro
Hydro
Biomass
Bunker
Bunker
Bunker
Bunker
Total
Generation in
Fuel
2004
Consumption
(GWh/year)
(GWh/year)
Emissions
(t CO2/year)
8.00
1.90
17.75
5.04
7.62
407.21
60.38
534.35
0.00
0.00
0.00
0.00
20.58
1,100.57
163.19
1,444.19
0.00
0.00
0.00
0.00
5,675.91
303,478.60
44,998.88
398,230.37
1,042.25
2,728.53
752,383.76
Build Margin
0.72
Table 3.7.Power Plants included in the determination of the Build Margin
To calculate the baseline emission factor BEELEC as the weighted average of the Operating
Margin emission factor (BEFOM) and the Build Margin emission factor (BEFBM):
BEFELEC = w OM * BEFOM + w BM * BEFBM
(3.4)
where the weights wOM and wBM, by default, are 50% (i.e., wOM = wBM = 0.5), and BEFOM and BEFBM are
calculated as described above and are expressed in tCO2eq/MWh.
The obtained BEFELEC value (see CARACOL_KNITS_EMISSIONS.xls) is:

0.74 t CO2eq/MWh

CDM Executive Board
page 43
Annex 4
MONITORING PLAN
General Quality Control System for Trigeneration Project
The purpose of the quality control system is to obtain reliable data that will be used for the calculation of
emission reduction.
For this kind of project, it is important to note that the DOE will be in charge of auditing only the part of
the quality management system linked to the CDM project. The final responsibility for monitoring,
verification, and quality control will be of Caracol Knits, S.A. of C.V.
If the company has quality control system, they need to adapt their procedures or create new ones that
contemplate those that are detailed below. If the company does not have a quality control system, it
should implement procedures in order to ensure correct data measurement for this kind of project. A
unique format for the procedure does not exist. Each company will develop its own procedure according
to the size of the project.
Procedure for measuring heavy fuel-oil consumption in the engine
The company has a procedure for measuring heavy fuel-oil consumption in the engine. The general
procedure includes the following items:
Equipment
Heavy fuel-oil consumption will be measured at an appropriate measuring station. This station shall have
a mass meter with calibration certificate issued by the factory.
These measurements will be displayed and recorded in the local control panel.
Verification and Calibration of meter
The equipment needs to be calibrated in accordance with the procedures established by the companys
quality management system. A Test Procedure provided by the meter manufacturer may be used, and
shall include a certified reference meter. A procedure shall be performed at least once every 5 years.
Internal Audit
The person in charge of the project has to conduct annual internal audits, checking the above mentioned
procedure, in order to ensure its compliance. Thus, the company shall have an internal audit procedure,
which will be evaluated by the DOE.

CDM Executive Board
page 44
Procedure for measuring of electricity, heat and cold delivered to the textile plant
Equipment
Electricity:
The measurement of electricity will be carried out according to National Regulations in
force. The new installation has a power meter in the outlet of the Trigeneration (after the
selfconsumers of the Trigeneration) and another power meter which will measure the
exported power to the grid.
Heat:
To know the heat energy, we will use:
-
a flow measurement of the exported steam to the textile plant

efficiency value of the existing boilers (fixed value for all crediting period)
Cold:
To know the cold energy, we will use:
-
a flow measurement of the exported cooling water to the textile plant

the temperatures of this water in the inlet and in the outlet
efficiency value of the existing chillers (fixed value for all crediting period)
Verification and calibration of meters
The equipment need to be calibrated in accordance with the procedures established by the companys
quality management system. The procedures will follow the same guidelines as heavy fuel-oil
consumption measurement, being made by the same Unit System. The employees using these meters will
receive prior training.
o
Internal Audit
The person in charge of the project has to conduct annual internal audits checking all the procedures
mentioned above, in order to ensure their compliance. Therefore, the company will have an internal audit
procedure, which will be evaluated by the DOE.
Procedure for measuring the leakage
To know the emissions due to transport of fuel, we need to collect:

- Number of trucks used to transport consumed heavy fuel oil in the engine
- Travelled distance for each truck

CDM Executive Board
page 45
Annex 5
NOTATION
MWh
ABFCFO
Annual Baseline Cold Electricity

Consumption
Annual Baseline Electricity
Consumption of the trigeneration
Annual Consumption of heavy fuel-oil
of Baseline
ABHCFO
Annual Baseline Heat Consumption
MWh
ABCEC
ABEC
DEF
eb,b
Annual Operating Hours of

trigeneration
Total Baseline Emissions
Emissions from electricity supply to
chillers
Baseline methane Emissions from
heavy fuel-oil combustion
CO2 Equivalent Baseline Emissions
from CH4 emissions
CO2 Baseline Emissions from heavy
fuel-oil combustion
Baseline Emissions for electricity
generation
Baseline N2O Emissions from heavy
fuel-oil combustion
CO2 Equivalent Baseline Emissions
from N2O emissions
Total Baseline Emissions from heavy
fuel-oil combustion
Baseline Emissions Factor Build
Margin
Baseline Emissions Factor combinated
by OM and BM
Baseline Emissions Factor Operating
Margin
Baseline Leakage Emissions
Baseline Trucks
CO2 Emissions Coefficient of fuel i by
relevant power sources j
CO2 Emissions Coefficient of fuel i by
relevant power sources m
Distance between sources fuel to
project situation
Diesel Emissions Factor
existing Boiler Efficiency -Baseline
ech,b
electrical Chiller Efficiency - Baseline
EF
Emissions Factor of Transport fuel

CO2 Emissions Factor of heavy fuel-oil
combustion
AOH
BE
BEch,ELEC
BECH4
BECH4,EQ
BECO2
BEELEC
BEN2O
BEN2O,EQ
BETOTAL
BEFBM
BEFELEC
BEFOM
BLE
BT
COEFi,j
COEFi,m
D
EFCO2
MWh
kg
h/year
t CO2eq/year
t CO2eq/year
t CH4/year
t CO2 eq/year
t CO2 /year
t CO2 eq/year
t N2O/year
t CO2 eq/year
t CO2 eq/year
t CO2 eq/MWh
t CO2 eq/MWh
t CO2 eq/MWh
t CO2 eq/year
No. trucks/year
t CO2/MWh
t CO2/MWh
km
kg CO2/km
t CO2eq/MWh
0,279 t CO2/MWh, NCV (from
IPCC)

CDM Executive Board
ER
ETCO
Fj,j
Fi,m
GENj
GENm
GWPCH4
GWPN2O
LEY
NCVFO
NEF
MEF
OXIDi
PAECFO
PAFCFO
PE
PECH4
PECH4,EQ
PECO2
PEN2O
PEN2O,EQ
PETOTAL
PLE
PT
Q
TC
TCO
THO
TEO
TECFO
TFCFO
Total Emissions Reductions

Estimated Trigeneration Cold Output
rate
Amount of fuel i consumed by relevant
power sources j
Amount of fuel i consumed by relevant
power sources m
Electricity delivered to the grid by
source j
Electricity delivered to the grid by
source m
Global Warming Potential of CH4
Global Warming Potential of N2O
Leakage Emissions from heavy fuel-oil
transport
Net Calorific Value of heavy Fuel-Oil
N2O factor Emissions fo heavy fuel-oil
combustion
Methane Emissions Factor for heavy
fuel-oil combustion
Oxidation Factor of fuel i
Project Annual Energy Consumption of
heavy fuel-oil
Project Annual heavy fuel-oil
Consumption
Total Project Emssions
CH4 Project Emissions from heavy fueloil combustion in the trigeneration
system
CO2 Equivalent Project Emissions from
CH4 emissions
CO2 Project Emissions from heavy fueloil combustion in the trigeneration
system
N2O Project Emissions from heavy fueloil combustion in the trigeneration
system
CO2 Equivalent Project Emissions from
N2O emissions
Total Project Emissions from heavy
fuel-oil combustion
Project Leakage Emissions
Project Trucks
Transportation Energy Quantity
Heavy fuel-oil Trucks capacity
Trigeneration Cold Output rate
Trigeneration Heat Output Rate
Trigeneration Electricity Output
capacity
Trigeneration Energy heavy Fuel-Oil
Consumption
Trigeneration heavy Fuel-Oil
Consumption
page 46
t CO2 eq/year
MWh
MWh/year
MWh/year
MWh/year
MWh/year
21 for Kyoto Protocol
310 for Kyoto Protocol
t CO2 eq/year
kcal/kg
0,001 kg N2O/MWh, NCV (from
IPCC)
0,011 kg CH4/MWh, NCV (from
IPCC)
MWh
Kg fuel
t CO2 eq/year
t CH4/year
t CO2 eq/year
t CO2/year
t N2O/year
t CO2 eq/year
t CO2 eq/year
t CO2 eq/year
No. trucks/year
MWh/year
l
MWh/year
MWh/year
MWh/year
MWh/year
Kg/year

CDM Executive Board
wOM, wBM
page 47
weights (as default)
0,5

CDM PDD Caracol Knits v2

Uploaded by

Copyright:

Available Formats

You might also like

CDM PDD Caracol Knits v2

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

CDM PDD Caracol Knits v2

Uploaded by

Copyright:

Available Formats

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 04

CDM Executive Board

CLEAN DEVELOPMENT MECHANISM

General description of project activity

Application of a baseline methodology

Duration of the project activity / Crediting period

Application of a monitoring methodology and plan

Estimation of GHG emissions by sources

Annex 1: Contact information on participants in the project activity

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 04

SECTION A. General description of project activity

A.2. Description of the project activity:

A.3. Project participants:

Name of Party involved

Private and/or public

Caracol Knits S.A. de C.V.

Kindly indicate if the Party

A.4. Technical description of the project activity:

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 04

Figure 1: Honduras country area, showing location of Potrerillos

A.4.1.1. Host Party (ies):

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 04

A.4.3. Technology to be employed by the project activity:

Figure 2: Diagram of Trigeneration system with inputs and outputs

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 04

Cold water temperature (inlet/outlet)

A.4.4. Brief explanation of how the anthropogenic emissions of anthropogenic greenhouse

There is a reduction of emissions using heavy fuel-oil in the engine to produce

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 04

Table 1: Emissions reductions in 7 years period

A.4.5. Publics funding of the project activity:

SECTION B. Application of a baseline methodology

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 04

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 04

Identification of alternatives to the project activity

Common practice analysis

Impact of registration of the proposed project activity as a CDM project activity.

a lack of local/regional financing sources to execute CDM projects.

lack of capital to finance baseline study and Project Design Document

lack of financing to execute investment project.

Sub - Step 1a.Define alternatives to the project activity

1. Industrial plant continues operating with the same equipment

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 04

The first two scenarios correspond to a business-as-usual (BAU) scenario.

Sub Step 1b.Enforcement of applicable laws and regulations

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 04

Table 2. Feasibility Study

Sub-Step 4a. Analyze other activities similar to the proposed project

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 04

Estimates of project and baseline emissions are determined by the model

59,570.07 t CO2 eq./ year

9,428.07 t CO2 eq./ year

8,537.23 t CO2 eq./ year

67,789.21 t CO2 eq./ year

13.06 t CO2 eq./ year

91.14 t CO2 eq./ year

26,106.37 t CO2 eq./ year

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 04