Within the context of the HFC-23 methodology revision request, it is important to note that the Board will also address the first request to renew the crediting period by a HFC-23 destruction project. The HFC-23 Decomposition Project in Ulsan, South Korea, operated by the Ineos Group (Project 003) has generated 1,4 Mio credits of at least 10€/credit over the first crediting period (2003-2010) and is planning to cash in on another 2,2 Mio credits from 2010 to 2017.
However, the analysis of monitoring data shows that also the Ulsan project has artificially increased HCFC-22 production. The figure illustrates that from 2001 to 2005 the project produced HCFC-22 in the range from about 1000 – 4000 kt/year. When submitting the project for CDM registration, the plant operators declared that they would produce about 4111 kt/yr. However, after the registration of the CDM project in 2005, the annual HCFC-22 production increased to about 7000 kt/year.
Action to be taken by the Board: In light of the serious concerns highlighted in the HFC-23 revision request as well as in the note by the Meth Panel, CDM Watch believes that a decision about the renewal of the crediting period can only be taken once the Board has considered the significant concerns in the current methodology. The Board must put the request for renewal of the crediting period of this project on hold until a full investigation has been carried out and a revised methodology adopted.