PROPOSED PROJECT

Objective:

To make charcoal from sustainably managed planations a viable alternative to coal/coke in pig iron production

Project:

23,100 ha of FSC certified fuelwod plantations on degraded pasture or old plantation lands: (3,300 ha x 7 years);

Cerrado forest ecosystem rehabilitation: 478 ha

Improved Charcoal production (reducing methane, and local air pollution from condensable oils/tars, and particulates)

Charcoal displacing Coal/Coke in Blast Furnace Pig iron production

Estimated Core Proposal ERs

Category of ERs ERs (t/CO2) by source over project life

Substitution of Coke in Blast Furnace

5,946,000

Sequestration in Plantations and Forest Ecosystem Rehabilitation

4,300,000

Methane Emissions Reductions

1,781,000

Totals 12,027,000

Certifiable Additional Benefits

• Biodiversity: restoration of endangered ‘cerrado’ ecosystem

• Reduction in atmospheric pollution

• Respiratory health of charcoal workers

Baseline Approach for Plantar

• Fuel-Switching Component– Scenario analysis based on historical trends– Investment constraints (most plausible approach is not

financable without carbon)

• Charcoal Production Emissions Reductions– Control group of 10 peers in pig iron industry; included in

MVP for revalidation (>50% rule)

• “Cerrado” Rehabilitation – Scenario analysis based on historical trends– Investment analysis (if needed)

Annexed Slides

Traditional Brazilian Brick Beehive Kiln

used in about 90% of Brazilian charcoal operations

Efficiency: about 4m3 wood for 1m3 Charcoal

Improved Brazilian Brick Kiln: < 2m3 wood to 1m3 charcoal

(considered to constitute a baseline for the production improvement component of the project)

Advanced Brazilian Beehive Kiln

collects tars and pyrolytic oils in smoke – minimizes local air pollution. Efficiency: better than 2m3 wood per m3 charcoal

CARBON STORED IN THE PLANTATION

• The chart below shows the accumulated carbon in one ha of forest, in the various parts of the tree, through three harvesting cycles.

Carbon Accumulation Dynamics in one Hectare of Forest

0,00

10,00

20,00

30,00

40,00

50,00

60,00

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

Forest Age (years)

Acc

um

ula

ted

Car

bo

n (

t/h

a)

C- Stemwood C-Leaves C-Rootses C-total