INABENSA. Guidelines for Suppliers for the Determination of Greenhouse Gas Emissions from Products Supplied to Inabensa.

Transcription

1 Guidelines for Suppliers for the Determination of Greenhouse Gas Emissions from Products Supplied to Inabensa.

2 Table of Contents 1. Purpose Battery limits Criteria for equipment and products Criteria for services Criteria for transport Emission estimation techniques Measuring / calculating direct emissions Indirect emissions (scope 2) Indirect emissions (scope 3)...12

3 1. Purpose. The purpose of this document is to set out the basic guidelines for suppliers to enable them to prepare the information required by Abengoa as part of its greenhouse gas emissions (GEI) monitoring and reporting system. Abengoa has developed internal standards, the purpose of which is to monitor and report all its companies greenhouse gas emissions. The scope of this standard includes: - Scope 1: Direct emissions: Emissions of greenhouse effect gases associated with sources that are under control of a company, as the emissions emanating from the combustion in boilers, ovens machinery or vehicles, and the emissions emanating from processing equipment, as well as fugitive emissions from equipment or installations. - Scope 2: Indirect emissions associated with the generation of electricity or heat energy (steam, thermal oil, hot water, etc), purchased. - Scope 3: Other indirect emissions associated with the production chain of Abengoa goods and services (e.g. the battery limit incorporates upstream emissions associated with Abengoa supplies). The GHG covered in the inventory are the GHG in the Kyoto Protocol: - Carbon dioxide - Methane - Nitrous oxide - Hydrofluorocarbons - Perfluorocarbons - Sulphur hexafluoride Therefore, for the scope 3 emissions inventory, Abengoa requires the collaboration of its suppliers, which must facilitate the greenhouse gas emissions generated during the different stages of the value chain of the products or services supplied. The emission data must refer to the unit of product or service supplied (for example, metric tonnes of CO 2 per metric tonnes of concrete supplied). The data on the total activity emission is not required, only the part corresponding to the production of the goods or services supplied. In the event that the supplier produces different types of products, the emissions should be distributed among the products following a specific criterion (for example, energy requirements, market value of each product, hours of work, etc.)

4 2. Battery Limits. The inclusion of any products or services in an organisation s processes generally involves long chains of supplies. Therefore, any suppliers should always include a series of products or services in its processes, so when we talk about the supply chain we are referring to a tree of complex products and services that are added to the processes from the extraction of the raw materials until the final supply is reached. The monitoring of emissions in Scope 3 does not necessarily involve the detailed analysis of the life-cycle of all the products and operations with regard to greenhouse gas emissions. It is usually enough to concentrate on two or three stages of the main activities generating the greenhouse gas emissions. Set out below, as guidance, are the stages in the value chain to be considered when measuring the greenhouse gas emissions associated with the materials and products, services and transport supply chain Criteria for equipment and products. Firstly the case is analysed for the following types of purchased products: - Fuels and energy products. - Untransformed raw material which is incorporated in the products and services. - Semi-elaborated materials or products which are incorporated into products and services. - Manufactured products which are incorporated into products and services. Residue which an Abengoa company treats for the owner is not considered as a supply, even though materials are obtained from this residue which can be incorporated into the production process. In any case, emissions associated with transport from the collection point and pre-treatment for this residue are included in the inventory. As a general rule, the indirect greenhouse gas emissions inventory includes emissions associated with the following stages of the value chain. A) Latest transformation of material or product (or when appropriate, extraction, when it refers to primary material consumed raw). B) Logistics chain from its last transformation point to acceptance by an Abengoa company

5 C) Stages in the value chain which are intensive in greenhouse gases, particularly the following: - Energy-related activities: Combustion installations (given that practically all industrial processes include combustion facilities, this will only include processes that use energy intensively). Petroleum refinement. Coking plants. - Production or transformation of iron ore minerals: Calcination or sinterizing of metal minerals included in the sulphurate mineral. Production of pig iron or steel. - Mineral industries: Manufacturing cement. Manufacturing glass and fiber glass. Manufacturing ceramic products by firing. - Other activities included in the European emission rights trading system: Manufacturing paper paste. Manufacturing paper and cardboard. - Any other process with intensive use of fuel or electrical energy such as: Aluminium production. Copper production. Production of other metals and metal alloys. Production of certain chemical products, particularly alkalis. Production of fertilizers. - Extraction and transport of petroleum and natural gas. Within the value chain stages, it is possible to jump several steps, considering only stages with the most intensive greenhouse gas emissions. For example, by estimating indirect emissions in construction works which use aluminium elements, it would be possible to include primary aluminium production and rule out transformation stages from primary aluminium to the element which is used. The criteria above mentioned shall be applied to commercial mediators, whom would provide, at least, emissions related to the product manufacturing and those emissions emitted during the stages from the last transformation of the product and its acquisition

6 2.2. Criteria for services. In the event that the services purchased by Abengoa companies, which have been divided into onsite services (services provided on location) or external services, a simple value chain has been proposed, which is not complicated in most cases. The indirect greenhouse gas emissions inventory includes emissions associated with the following stages of the value chain: A) Fuel consumption B) Energy consumption C) Transport of materials to provide the service. D) Supplies used in the service provision associated with processes which have intensive greenhouse gas emissions or energy consumption. In many cases, the services purchased can include a combination of supply of materials or products and services themselves. This occurs in certain maintenance or installation repair services or, very clearly, by contracting packages to construct turnkey plants, which include supplying equipment and installations, their assembly and even the tests. Such cases should consider the equipment and material and the services themselves separately Criteria for transport. Transporting equipment is not complicated in the suggested value chain given that we will only consider emissions associated with the following stages of the value chain: A) Fuel consumption B) Energy consumption We consider both the transport service contracted by an Abengoa company, and the value chain part corresponding to transporting equipment purchased by an Abengoa company as a scope 3 emission

7 3. Emission Estimation Techniques Measuring / calculating direct emissions. Direct emissions can be determined by calculation or measurement. The main methodology for determining emissions is calculation. The methodology based on measurement is limited to determining distributed emissions. The general expression employed to calculate greenhouse gas emissions from emission factors is as follows: E i = Emission of substance i. E =AD*EF i i AD = EF i = Activity data, that is the parameter that defines the activity grade of the installation, and to which the corresponding emission factor is referred. Emission factor of the substance i, that is defined as the quantity of the substance i emitted by each unit of the AD parameter. An emission factor indicates the quantity of a particular contaminant emitted from a particular activity by unit of product, volume, duration, quantity of raw material or fuel etc, that is by unit of what has been designated activity data. Below is a link to the main bibliographic references where you can obtain these emission factors: - IPCC guidelines for national GHG inventories, version IPCC guidelines 2006 consist of five volumes: - Volume 1: General guidance and reporting - Volume 2: Energy - Volume 3: Industrial processes and products uses - Volume 4: Agriculture, forestry and another land uses - Volume 5: Waste Volume 1 is a good practices guide regarding matters common to all the estimation methods covered in the specific sector guides, set out in Volumes 2 to 5. Volumes 2 to 5 provide a methodological guide for specific emissions and elimination categories, together with specific recommendation for cases of uncertainty, guarantees and quality control, consistence of chronological series and reports. - Greenhouse Gas Protocol calculation tools:

8 These tools consist of a step-by-step guide to the corresponding greenhouse gas emission sheets. The calculation tools currently available are: - Cross sector tools: - Emissions from stationary combustion. - Emissions from mobile combustion. - Measurement and estimation uncertainty of GHG emissions. - CFH in the use of air conditioning in refrigeration - Determination of greenhouse gases in cogeneration plants - Indirect CO 2 emissions deriving from electricity, heat and/or steam consumption. - Revised tool for determining the emissions produced by combustion at stationary sources. - Sector specific tools: - GHG emissions from the production of aluminum - CO 2 emissions from the production of iron and steel - N 2 O emissions from the production of nitric acid - CO 2 emissions from the production of ammonia - N 2 O emissions from the production of adipic acid - CO 2 emissions from the production of cement - CO 2 emissions from the production of lime - GHG emissions from pulp and paper mills - HFC-23 emissions from the production of HCFC-22 - PFC emissions from the production of semiconductor wafers The method for determining emissions from combustion is included as an example: GHG emissions from fuel combustion: The greenhouse gases resulting from combustion are CO 2 and to a lesser extent, N 2 O and CH 4. CO 2 emissions The calculation of emissions of CO 2 from combustion is based on the following expression: Activity data E =AD*EF CO2 CO2 The activity data represents the fuel consumption in energy units (TJ). This value is obtained from the product of the quantity of the fuel consumed (in mass or volume units) and its lower calorific power. Activity data (TJ) = Fuel consumption (t or m 3 ) * Net calorific value (TJ/t or TJ/m 3 ) If the fuel NCV is unknown, it s possible to use the default values from IPCC, which are showed as follow - 7 -

9 - 8 -

10 EF CO2 : emission factor for CO 2 Emission factor, generally expressed in t CO 2 / TJ and depends on the type and characteristics of the fuel used in each case. Sometimes, the emission factor is expressed by mass unit of fuel, and is obtained directly from the carbon content of the fuel, in which case, the activity data should be expressed in mass units. The emission factor used for the determination of the CO 2 emissions can be obtained from different sources, from lower to higher analysis tier, as follows: - Default emission factors obtained from bibliographical reference sources, as IPCC guidelines. - Emission factor specific to the country, obtained from the latest national inventory submitted to the secretary of the United Nations Framework Convention on Climate Change. ns/items/3929.php - Specific emission factor obtained from analytical determination The IPCC guidelines provide the following emission factors: - 9 -

11 - 10 -

12 3.2. Indirect emissions (scope 2). Greenhouse gas emissions derived from generating electricity are calculated by applying the following expression: EI gen=ad *EF AD = Activity data, which is the quantity of electricity consumed during the notification period, expressed in kwh. EF = Emission factor, which represents the unitary emissions from generated electricity (kg CO 2 equiv / kwh). The procedure to determine factors involved in the calculation is specified below:

13 Emission factor for electricity: - Use an average emission factor per country or region. The GHG Protocol for indirect emissions calculation sheet derived from consumption of electricity, heat or steam proposes that these factors are applied and provides a list of the emission factors per country expressed in g CO 2 / kwh, obtained from the International Energy Agency. - Example of emission factors obtained directly from the electricity bill. - Example of emission factors provided by energy regulation bodies (for example, in Spain, the CNE). Emission factor of the energy acquired: The emission factor is determined taking into account the fuel consumed and its corresponding emission factors, by unit of useful energy consumed Indirect emissions (scope 3). In addition to the direct and indirect emissions from energy consumption, the emissions derived from the value chain of the raw materials and/or intermediate products used in the production of the supply must also be provided (and at very least the emissions associated with the stages of the raw materials and/or intermediate products that cause the greatest greenhouse gas emissions must be included). For example, concrete manufacturers must supply the emissions associated with the manufacture of cement, including the emissions associated with the clinkerisation stage. In order to determine the emissions in scope 3, information must be requested from the suppliers of these intermediate products. Should this not be an option, greenhouse gas emission data published regarding the lifecycle of the products acquired can be used. Set out below are some bibliographic references where this information can be found: - Analysis of the lifecycle of the products and databases for analysing the life cycle: o European Platform for Life Cycle Analysis: rials&subcategory=metals+and+semimetals - Product environmental declarations: