GREENHOUSE GAS PROJECT REPORT PRISM FARMS BIOMASS HEATING PROJECT

Transcription

1 11 June 2012 GREENHOUSE GAS PROJECT REPORT PRISM FARMS BIOMASS HEATING PROJECT Prepared By: Blue Source Canada ULC (Authorized Project Contact) Suite 700, th Avenue SW Calgary, Alberta T2P 0Z3 T: (403) F: (403)

2 Table of Contents Table of Figures:... iii List of Abbreviations... iv 1. Introduction Review of Project Consistency with ISO Part 2 Principles Relevance Completeness Consistency Accuracy Transparency Conservativeness Project Description Project Title Project Purpose / Objective Expected Lifetime of Project Project Type Location of Project Conditions Prior to Project Initiation Description of How GHG Reductions are Achieved Project Technologies Assertion of GHG Emission Reductions Identification of Risks to Project Roles and Responsibilities Project Eligibility Summary Environmental Impact Assessment Stakeholder Consultations Project History Selection and Justification of the Baseline Scenario Inventory of Sources, Sinks and Removals (SSRs) for the Project and Baseline Conditions Project Condition Prepared by Blue Source Canada ii

3 5.2. Baseline Condition Comparison of Project and Baseline SSRs Quantification and Calculation of GHG Emissions and Reductions Sample Calculations Data Monitoring and Controls Data Sources: Quantification Approaches: Measurement and Monitoring Approaches: QA/QC Procedures: Data Management and QA/QC at Blue Source Record keeping practices: Back-up Procedures at Blue Source Reporting and Verification Details Statement of Senior Review Appendix A IT Backup Procedure for Blue Source Table of Figures: Figure 1: Pre-Project and Project Condition Biomass Use Configurations... 6 Figure 2: 6 MW Wicks Biomass Boiler at Prism Farms... 8 Figure 3: Project Element Lifecycle Diagram for Project Condition Figure 4: Process Flow Diagram for Project Condition Figure 5: Baseline Element Lifecycle Diagram Figure 6: Process Flow Diagram for Baseline Condition Figure 7: Data flow from Suppliers to Prism Farms and to Blue Sourceue Source Table 1 - GHG Emission Reductions, Table 2: Barriers Assessment of Baseline Alternative Scenarios Table 3: Project Condition Sources, Sinks, and Removals of GHG Emissions Table 4: Baseline Condition Sources, Sinks, and Removals of GHG Emissions Table 5: Inclusion and Exclusion of Sources, Sinks, and Removals of GHG Emissions Table 6: Justification of SSRs Exluded from Quantification Table 7: Quantification Procedures Table 8: Emission Intensity of Fuel Extraction and Production (Diesel, Natural Gas, and Gasoline) Prepared by Blue Source Canada iii

4 Table 9: Emission Intensity of Combustion Table 10: Energy Content of Different Fuels Table 11: Data Monitoring and Collection Table 12: Meter Maintenance and Calibration List of Abbreviations Blue Source Blue Source Canada ULC CH 4 Methane CO 2 Carbon Dioxide CO 2 e Carbon Dioxide-equivalent GHG Greenhouse gas GWP Global Warming Potential HDD Heating Degree Days HFC Hydrofluorocarbon(s) m 3 Cubic metres N 2 O Nitrous Oxide PFC Perfluorocarbon(s) SF 6 Sulphur Hexafluoride SGER Specified Gas Emitters Regulation SS Sources and Sinks Prepared by Blue Source Canada iv

5 1. Introduction This report provides the details of a conversion of heat supplied at Prism Farms from fossil fuel based, to biomass based. Prism Farms is a large commercial greenhouse operation in southern Ontario, near the town of Leamington that consists of 17.5 acres of covered greenhouse area. Prism Farms produces 6 million pounds of tomatoes per year and ships Roma and Camparai tomatoes to markets within Canada and the United States. Planting operations begin in December and harvesting starts in February and continues through to November. Since the farm operates year-round in a cold climate, there is a high heating demand that was initially met with oil-fired boilers that burned Bunker C fuel (fuel oil #6). The boilers were also equipped to burn natural gas. Due to the high costs associated with burning fossil fuels for heating, Prism Farms investigated the use of biomass for heat. They found local suppliers of wood chips that are sourced from various industrial sources that would have otherwise been destined for disposal at a municipal landfill. Prism thus installed a series of biomass boilers to provide heat to the greenhouse operations. The existing fossil fuel boilers remain in place, but are only used for supplemental heating on very cold days when the biomass cannot meet the heating demand. Greenhouse gas offset credits are generated by this project by the displacement of fossil fuels that would have otherwise been burned to heat the greenhouses with biomass. 2. Review of Project Consistency with ISO Part 2 Principles 2.1. Relevance The methodology referenced in quantifying GHG emission reductions from the Prism Farms Biomass Heating Project (herein in referred to as the Project ) was developed and approved under the Alberta Offset System, regulated under the Province s Climate Change and Emissions Management Act. The Alberta Offset System Quantification Protocol for Diversion of Biomass to Energy from Biomass Combustion Facilities, 1 (herein in referred to as the Biomass Protocol ) was developed following the ISO Part 2 standard as required under the Alberta Offset System protocol development process. Additionally, the protocol development process included a multi-step stakeholder review process consisting of a technical expert review, a broader stakeholder review process and a public posting period, all of which were managed by the Government of Alberta. The Alberta Offset System Biomass Protocol is a well-established quantification protocol applicable to biomass energy generation projects in Canada and was therefore considered to be the best available quantification protocol to apply for this Project. 1 Alberta Quantification Protocol for Diversion of Biomass to Energy from Biomass Combustion Facilities (Version 1, September 2007), Prepared by Blue Source Canada ULC 1

6 Sources, Sinks and Reservoirs (SSRs) considered to be relevant and included for quantification under the Biomass Protocol are defined in Section 4 of this document, including justification for the exclusion of SSRs identified in the life cycle elements of the project and baseline conditions. SSRs for the project condition are summarized in Table 3 and Figure 3 and Figure 4. SSRs under the baseline condition are summarized in Table 4, Figure 5 and Figure Completeness The specific scope of this project has been limited to GHG emission reductions achieved through the displacement of fossil fuels through the generation of thermal energy from biomass. Indirect GHG emission reductions from the diversion of biomass wastes from landfill and the avoidance of the methane emissions that would have occurred from the anaerobic (oxygen-free) decomposition of these residues in landfill or stockpile are also quantified under the protocol. The project does not include any electricity generation and as such, the GHG emissions related to electricity generation have been excluded. Data collection and monitoring approaches as they pertain to the quantification approaches used in calculating GHG emission reductions are summarized in Table 11 in this report. 2.3 Consistency The Biomass Protocol used in the quantification of GHG reductions is consistent in its application of functional equivalence between the baseline and project condition. The unit of functional equivalence is defined as the m 3 of natural gas, L of fuel oil, and kg of coal per Heating Degree Day displaced by the Vynke biomass-fired boilers in the project condition. 2.4 Accuracy Bias and uncertainties in quantification were limited through the use of utility meter readings (natural gas consumption) and financially audited data (biomass, fuel oil and coal sales data) in combination with using the most relevant natural gas higher heating values for the southern Ontario region and up to date emission factors from Environment Canada. Additionally, a number of comparative analyses were completed to compare the quantified gas savings to alternative methods to ensure that the estimated gas savings were as accurate and conservative as possible, as summarized in Section 6 of this report. Data collection, monitoring, and quantification approaches are summarized in Table 11 in this report. 2.5 Transparency Data collection, monitoring, and quantification approaches are summarized in Section 6 and Table 11 of this report. The annual emission reduction claims are also summarized in this document to support the transparency of the GHG emission reduction assertion. 2.6 Conservativeness As discussed in Section 6, calculations are considered conservative for a number of reasons. In order to conservatively calculate the natural gas and fuel oil savings resulting from the implementation of the biomass energy generation system, the relative consumption of each fuel was calculated for 2005 which is the last full year of fossil-fuel consumption prior to the implementation of the biomass heating Prepared by Blue Source Canada ULC 2

7 system. This ensures that fuel-oil consumption is not overstated, which is important since the emissions from this fuel are greater than those for natural gas. Additionally, annual baseline intensities were compared to monthly baseline intensities, and again the most conservative baseline was selected. Finally, the baseline intensity approach was compared to measured heat output data from 2006 to 2011 to check that the gas savings were not overestimated. Prepared by Blue Source Canada ULC 3

8 3. Project Description 3.1. Project Title Prism Farms Biomass Heating Project 3.2. Project Purpose / Objective The Prism Farms Biomass Heating Project (the Project) is a biomass energy generation project located in the town of Leamington, Ontario. The Project is owned and operated by Prism Farms Ltd. The opportunity for generating carbon offsets with this protocol arises mainly from indirect GHG emission reductions through the use of biomass to offset non-renewable thermal energy production and from direct GHG emission reductions due to the avoidance of methane emissions from the decomposition of organic wood wastes in landfills. Methane is a powerful GHG with a global warming potential 21 times that of carbon dioxide and is passively emitted from the disposal of waste biomass in landfills or other oxygen-free conditions where the biomass undergoes anaerobic decomposition. The diversion of biomass away from an anaerobic storage site, such as a landfill, to a combustion facility altogether avoids the formation of methane gas and achieves a reduction in anthropogenic GHG emissions from the use of biomass for thermal energy generation in place of fossil fuels used in previous years. Prism Farms is a family run farming operation that began operations in 1997 with the installation of 2.5 acres of covered greenhouses for growing tomatoes. The operation was expanded in 1998 with the addition of 2.5 acres of extra greenhouse capacity and again in 1999 as another 2.5 acres was added. In 2001 another 3 acres were added and in 2004 a further 7 acres of greenhouses were added, for a total of 17.5 acres of greenhouses. Prism Farms produces 6 million pounds of tomatoes per year and ships Roma and Camparai tomatoes to markets within Canada and the United States. Planting operations begin in December and harvesting starts in February and continues through to November. The use of biomass at Prism Farms began in 2006 due to high natural gas prices that were seriously affecting competitiveness of their greenhouse operations which require heat and CO 2 for optimal plant growth throughout the year. At that time the primary options to replace expensive natural gas were coal or biomass heating systems. Although the costs of coal and biomass were similar at the time, biomass was selected due to the potential value of greenhouse gas emission reductions. In December 2005 a 4.6 MW (thermal) Vyncke boiler was installed to produce heat from biomass, which also has the capability to burn coal if biomass feedstock costs rise to uneconomic levels. In January 2007 a 6MW (thermal) Wicks boiler was added to increase the thermal output from biomass and decrease the use of natural gas. Overall the two combustion boilers can produce up to a maximum of 10.6 MW of thermal energy using biomass sourced from municipal waste sorting facilities and forestry processing sites through a third party fuel supplier. Prepared by Blue Source Canada ULC 4

9 3.3. Expected Lifetime of Project The replacement of the existing natural gas combustion systems with boilers capable of running on biomass began at the end of The 4.6MW Vyncke boiler operated in a start-up phase for all of December 2005 and January 2006 until it was fully commissioned in February 2006 and the 6MW Wicks boiler was commissioned one year later in February Since commissioning both boilers have operated at near full capacity with no major unscheduled shut downs. Each biomass boiler is anticipated to operate for at least a period of 15 years Project Type The opportunity for generating carbon offsets from this project arises from the direct GHG emission reductions achieved through the use of biomass in place of fossil fuels used to generate the thermal energy required to heat the greenhouses at Prism Farms. Note that this project also results in indirect GHG emission reductions through the diversion of biomass from landfill (i.e. the methane emissions resulting from the anaerobic decomposition of wood wastes) Location of Project The Project is a biomass thermal energy generation project located near Leamington in Southern Ontario. The Project is wholly owned and operated by Prism Farms Ltd. The site is located at 731 Mersea Road 7, Leamington, ON, N8H 3V8, Canada. The unique spatial identifier of the project is: Latitude: N Longitude: W 3.6. Conditions Prior to Project Initiation Prior to the start-up of the biomass combustion boilers at the Prism Farms site, all of the heat requirements for the greenhouses were produced by natural gas combustion in one or more of five natural gas boilers at the site. The natural gas boilers were rated at two 500 hp, two 800 hp and one 600 hp. One 500 hp boiler and one 800 hp boiler had the capability of burning fuel oil as a means of flexibility if natural gas prices rose. However, the greenhouse operation required a source of CO 2 to enhance plant growth, which meant that fuel oil could not be used as the sole source of heating unless a separate liquid CO 2 system was put in place. An existing hot water distribution system was in place to distribute hot water from each boiler to different parts of the greenhouses to keep the tomato plants warm throughout the year. The biomass used by the project would have previously been sent for disposal to landfill without the creation of a market for biomass as a fuel, which is in part due to the third party biomass supplier and end users such as Prism Farms. The creation of a market for biomass has led operators of waste sorting facilities and wood waste processing facilities to separate clean biomass materials for sale to third party suppliers that then distribute the biomass fuel to end users. Prepared by Blue Source Canada ULC 5

10 The baseline condition is thus the anaerobic decomposition of that portion of biomass which has been diverted from landfill and transported to Prism Farms, and the generation of an equivalent quantity of thermal energy using fossil fuels. Figure 1 below illustrates the biomass residue uses before and after the implementation of the Project. Figure 1: Pre-Project and Project Condition Biomass Use Configurations Pre-Project Condition Project Condition Municipal Wood Waste Municipal Wood Waste Third Party delivery of wood for fuel Landfill Anaerobic Decomposition Sorting and diversion of wood Wood burned in Prism boilers for heating Combustion 3.7. Description of How GHG Reductions are Achieved The Project results in a reduction in greenhouse gas emissions through the use of a less carbon intensive fuel (biomass) than would have been used in the baseline to generate an equivalent quantity of thermal energy. The use of biomass residues to displace a portion of the heat load required to operate the Prism Farms greenhouse facility significantly reduces the carbon intensity of the operations compared to the business as usual use of fossil fuels (natural gas, fuel oil, and coal). Currently, the biomass coming from the supplier (Ecostrat) is diverted from landfill. As mentioned previously in section 3.3, none of the material diverted from these landfills would have undergone landfill gas capture. Therefore, had Prism Farms not provided a market value for this biomass it would not have been diverted from landfill and would have undergone facilitated anaerobic decomposition. Credit for this portion is therefore gained as a result of the direct avoidance of anaerobic decomposition of biomass to form methane. The quantity of natural gas displaced by the thermal energy output from the biomass boilers is estimated based on the difference between the natural gas consumption per heating-degree-day (HDD) in the project condition and the historical energy consumption per unit of production for the 2005 year before the project was implemented. The use of this intensity metric (m 3 natural gas per HDD) ensures that functional equivalence is maintained in the comparison of baseline and project conditions. To ensure conservativeness, the calculated natural gas savings were compared against the measured heat output from 2006 and This quantity of energy is representative of the amount of energy that would have been generated from the continued operation of the existing natural gas burners at the Prepared by Blue Source Canada ULC 6

11 greenhouse, had the biomass heating system not been installed as an environmentally preferable option Project Technologies The project consists of the production of thermal energy from two biomass combustion boilers located at the Prism Farms greenhouse facilities in Leamington, Ontario, wholly owned and operated by Prism Farms Ltd. The thermal energy generation system consists of two combustion boilers with a combined rated thermal capacity of 10.6MW and associated piping for distribution of hot water throughout the greenhouses to provide heat to the tomato plants throughout the year. Each boiler is equipped with multi-stage cyclones to capture particulate matter (fly ash) from the combustion exhaust. Thermal energy in the form of hot water is produced from the combustion of biomass in a 4.6MW Vyncke boiler and a 6MW Wicks boiler. Biomass is delivered to Prism Farms from a single biomass fuel supplier in 25 to 30 tonne shipments and typically loads are received per week. Biomass is unloaded directly into the storage hopper that feeds the two boilers so additional transportation of biomass in not required. The biomass is burned as received and no drying, grinding or processing of the biomass takes place at the Prism Farms site. A two week supply of biomass is maintained at the site in case of disruptions to the delivery schedule. Figure 2 shows a portion of the new 6 MW Wicks biomass boiler installed at Prism Farms. Prepared by Blue Source Canada ULC 7

12 Figure 2: 6 MW Wicks Biomass Boiler at Prism Farms Prepared by Blue Source Canada ULC 8

13 Prepared by Blue Source Canada ULC 9

14 3.9. Assertion of GHG Emission Reductions Table 1 illustrates the quantity of GHG reductions achieved by the project, disaggregated by vintage year and GHG type. This covers the period Table 1 - GHG Emission Reductions, Vintage Year CO 2 (t CO 2 ) CH 4 (t CH 4 ) CH 4 Global Warming Potential N 2 0 (t N 2 O) N 2 O Global Warming Potential Total (t CO 2 e) , , , , , , , , , , , ,109 Total 25, ,715 *Note that totals may not add up due to rounding Identification of Risks to Project The identification and analysis of risks associated with the quantification of GHG emission reductions from this project has been completed by the third party verifier, listed below in Section 2.11, in accordance with ISO The generation of thermal energy using biomass in place of fossil fuels results in a permanent GHG emission reduction since the fossil fuel displacement cannot be reversed. This project type does not involve biological or geological sequestration-related risks. Prepared by Blue Source Canada ULC 10

15 3.11. Roles and Responsibilities Project Proponent: Prism Farms Ltd. Address: 731 Mesea Road 7, Leamington, ON, N8H 3V8, Canada Contact: Mike Tiessen Phone: (519) Fax: (519) Authorized Project Contact: Blue Source Canada ULC Address: Suite 700, th Avenue S.W Calgary, Alberta T2P 0Z3 Contact: Warren Brooke, Carbon Services Project Manager Phone: (403) x259 Fax: (403) rd Party Verification Team: Internat Energy Solutions Canada Inc. Address: Suite 200, 294 Richmond Street East, Toronto, ON, M5A 1P5 Lead Verifier: Livio Nichilo, P.Eng. Phone: (416) ext.140 Fax: (888) Project Eligibility The project is eligible to create emission reductions as follows: The GHG emission reduction assertion was quantified using a quantification methodology considered to be industry best practice guidance (Alberta Quantification Protocol for the Diversion of Biomass to Energy from Biomass Combustion Facilities, Version 1, September 2007); The quantification protocol referenced was developed in accordance with the ISO Part 2 standard, as required under the Alberta Offset System Protocol development process; The GHG assertion has been verified by an independent third-party; The facility is not subject to any regulations requiring the use of biomass or prohibiting the combustion of natural gas, fuel oil, or coal for thermal energy generation in Ontario. The project is not currently subject to any climate change or emissions management legislation in the province of Ontario or Federally in Canada; Potential GHG emission reductions generated by this project are not listed on any other GHG reduction registry in Canada or internationally; and, Prepared by Blue Source Canada ULC 11

16 The project has not received any public funds in exchange for GHG emission reductions (e.g. offsets) resulting from this project. All environmental attributes generated by the project, including any GHG emission reduction benefits, are owned solely by C&B Farms Ltd Summary Environmental Impact Assessment An environmental impact assessment was not required for this Project Stakeholder Consultations Stakeholder consultations were not required for this Project. The Alberta Offset System Biomass Quantification Protocol used to quantify VERRs from the Project was developed following a transparent consultation process with industry stakeholders to ensure the relevance, accuracy, conservativeness, consistency, and transparency of the protocol Project History The following provides a chronological history of the project to date: Prior to the project (Pre-February 2006): Prior to the implementation of the project, all of the heating requirements for the greenhouses at Prism Farms were met with fossil fuels. There were two 500-hp, two 800-hp and one 600-hp natural-gas-fired boilers. One of the 500-hp boilers and one of the 800-hp boilers had the capability of burning fuel oil. December 2005: Onsite construction of a 4.6 MW Vynke biomass boiler and all associated equipment and feedstock is completed. February, 2006: The new 4.6 MW Vynke biomass boiler is fully commissioned. February, 2007: New 6.0 MW Wicks biomass boiler is fully commissioned. It is anticipated that the project will continue to create credits in subsequent years during the month of April for the previous calendar year. Prepared by Blue Source Canada ULC 12

17 4. Selection and Justification of the Baseline Scenario Two baseline scenarios were evaluated for the Project. These scenarios and the relevant barriers affecting each of these scenarios are summarized in Table 2 below: Table 2: Barriers Assessment of Baseline Alternative Scenarios Baseline Scenario Alternatives Relevant Barriers Financial/Economic: The use of biomass rather than fossil fuels has the potential to be a cheaper fuel source for C&B Farms when comparing fuel costs, as biomass materials were locally available from a third-party supplier at the time the project was conceptualized. However, the high capital costs of implementing a new biomass fueled heating system would serve to be a significant impediment in the implementation of this project. The return on investment from implementing the biomass heating system may have appeared to be attractive relative to the continued operation of the preexisting gas burners, but there were significant risks in investing a large amount of capital in a new technology. Alternative 1: The generation of heat using a biomass heating system in the absence of commercializing GHG reductions. The implementation of the biomass gasification system and related infrastructure was a significant capital expenditure, which could have been avoided by continuing to operate the existing infrastructure. Also, the implementation of a biomass energy generation system requires infrastructure to convey the wood residues, to control particulate matter and to handle ash from the boilers. Institutional: The biomass boiler system also requires trained personnel to operate and troubleshoot. The operation and maintenance of the biomass gasification system and fuel feeding equipment is much more challenging and costly than the continued operation of the natural gas burners. New Technology: The implementation of biomass boiler technology required a significant amount of training of staff to operate the system, and infrastructure development on-site to facilitate the commissioning and operation of the biomass system. Financial/Economic: Greenhouse operations in Canada have very high heating loads and thus can be vulnerable to volatile fuel prices. The volatility of natural gas prices posed a risk to Prism Farm s competitiveness in the commercial greenhouse business as fuel prices significantly impact operating costs. The use of biomass wastes for thermal energy generation would likely result in lower fuel costs than the continued use of fossil fuels. Alternative 2: The generation of heat using fossil fuels. The continued operation of the natural gas-fired or fuel-oil fired heating systems would not require any incremental capital costs. The continued operation of the fossil-fuel-fired heating systems at Prism Farms would represent the fewest operational challenges and fewest risks as the existing infrastructure could continue to be operated with no new technology, infrastructure or fuel supply. Environmental/Social: The continued use of natural gas would have relatively low net environmental impacts from criteria air contaminants as Prepared by Blue Source Canada ULC 13

18 natural gas is clean burning. Greenhouse gas emissions would be significantly higher than if biomass were used, but would remain the same as historical operations. However, the continued use of fossil fuels would not support claims of environmental sustainability. No social impacts would be expected from the continued use of fossil fuels. Based on the barriers test above, BASELINE SCENARIO ALTERNATIVE 2 is considered the most likely baseline scenario. The baseline scenario is defined as the use of the pre-existing fossil fuel combustion equipment at Prism Farm s facility to meet the thermal energy demands of the greenhouses. The continuation of previous practices represents the most likely alternative as the implementation of a new biomass heating technology posed a number of risks. The baseline condition for this project is defined as the use of natural gas, fuel oil and coal to meet the heat load generated from the use of biomass in the project condition. Functional equivalence is maintained through the use of a baseline energy intensity (m 3 of natural gas consumed per Heating Degree Day) and comparing this intensity to the intensity in the project condition. Prepared by Blue Source Canada ULC 14

19 5. Inventory of Sources, Sinks and Removals (SSRs) for the Project and Baseline Conditions 5.1. Project Condition In the development of the Biomass Protocol, SSRs were identified by reviewing relevant process flow diagrams, consulting with relevant industry stakeholders (through the Alberta Offset System Quantification Protocol Development Process) and reviewing available good practice guidance. This iterative process confirmed that the SSRs in the process flow diagrams included below cover the full scope of eligible biomass project activities under the protocol. The project condition, as defined in the Biomass Protocol, includes relevant SSRs and processes as shown in Table 3, Figure 3 and Figure 4 below. Note that the following table has not been adapted to fit this particular project, but instead includes the generic definitions as written in the Alberta Biomass Protocol. Table 3: Project Condition Sources, Sinks, and Removals of GHG Emissions 1. SSR 2. Description Upstream SS s during Project Operation Biomass may be collected from the forest floor, agricultural facilities, landfills or from industrial facilities into storage piles using heavy equipment or conveyors. Collection of biomass from the forest floor is typically a component of the forest management plan or an additional function to gather the material for use. This would typically be completed by diesel fuelled bulldozers. 3. Controlled, Related or Affected P1 Collection of Biomass Collection of biomass from agricultural facilities, such as tree farms, would be completed by heavy equipment such as tractors or bulldozers as part of the site operational plan. Collection of biomass from a landfill is a resource recovery procedure. It reduces the quantity of waste in the landfill and serves to extend the life cycle of existing landfills. This is typically accomplished using heavy equipment such as bulldozers and excavators. Related Collection of biomass from industrial facilities is typically done as a means of keeping the work area clean. The biomass would either be mechanically or manually collected, and conveyed or moved in batches by heavy equipment. Prepared by Blue Source Canada 15

20 P2 Storage of Biomass P3 Processing of Biomass P4 Transfer of Biomass P5 Transport of Biomass P22 Fuel Extraction / Processing For the majority of situations, collection activities are fuelled by diesel, gasoline, or natural gas, resulting in GHG emissions. Other fuels may also be used in some rare cases. Quantities of each of the energy inputs would be contemplated to evaluate functional equivalence with the baseline condition. Biomass may be stored in piles where anaerobic decomposition may occur, resulting in the emission of methane gas. These piles may consist of storage piles at forestry, agricultural or industrial sites. Any energy inputs to this SS, for wetting of biomass or agitation of biomass, would be covered under P4 Transfer of Biomass as these elements are typically related. The characteristics of these storage piles, in terms of size, shape, composition and duration of storage are all pertinent to evaluate functional equivalence with the baseline condition. Biomass may be processed off site using a series of mechanical processes, heavy equipment and conveyors. This equipment would be fuelled by diesel, gasoline or natural gas, resulting in GHG emissions. Other fuels may also be used in some rare cases. Quantities and types for each of the energy inputs would be tracked. Biomass may be transferred from storage piles into containers (truck trailers, rail cars or storage bins) or onto conveyors for transport to the project site. This may involve the use of heavy equipment such as loaders and cranes, or other mechanized devices. This equipment would be fuelled by diesel, gasoline, natural gas or electricity, resulting in GHG emissions. Other fuels may also be used in some rare cases. Any energy inputs associated with P2 Storage of Biomass, such as wetting of biomass or agitation of biomass, are to be included here. Further, if the material is conveyed to the project site, then the related energy inputs would be captured under this SS. Quantities for each of the energy inputs would be contemplated to evaluate functional equivalence with the baseline condition. Biomass may be transported to the project site by truck, barge and/or train. The related energy inputs for fuelling this equipment are captured under this SS, for the purposes of calculating the resulting greenhouse gas emissions. Type of equipment, number of loads and distance travelled would be used to evaluate functional equivalence with the baseline condition. Each of the fuels used throughout the on-site component of the project will need to be sourced and processed. This will allow for the calculation of the greenhouse gas Related Related Related Related Related Prepared by Blue Source Canada 16

21 P23 Fuel Delivery Onsite SS s during Project Operation P7 Storage of Biomass P6, P8 to P11, P13, P14 and P16 Facility Operation emissions from the various processes involved in the production, refinement and storage of the fuels. The total volumes of fuel for each of the on-site SS s are considered under this SS. Volumes and types of fuels are the important characteristics that may need to be tracked. Each of the fuels used throughout the on-site component of the project will need to be transported to the site. This may include shipments by tanker or by pipeline, resulting in the emissions of greenhouse gases. It is reasonable to exclude fuel sourced by taking equipment to an existing commercial fuelling station as the fuel used to take the equipment to the site is captured under other SS s and there are no other delivery emissions as the fuel is already going to the commercial fuelling station. Distance and means of fuel delivery as well as the volumes of fuel delivered are the important characteristics that may need to be tracked. Biomass may be stored on-site in piles where anaerobic decomposition may occur, resulting in the emission of methane gas. These piles are typically maintained as small mounds with short residency times on-site due to lack of storage, in order to maintain the functional order of the facility and/or to mitigate risks from self-combustion. The characteristics of these storage piles, in terms of size, shape, composition and duration of storage may all need to be tracked. Biomass may be transferred from transportation bins to the processing systems using a combination of loaders, cranes, conveyors and other mechanized devices. This equipment would be fuelled by diesel, gasoline or natural gas, resulting in GHG emissions. Other fuels may also be used in some rare cases. Any energy inputs associated with P7 Storage of Biomass, such as wetting of biomass or agitation of biomass, are to be included here. Quantities and types for each of the energy inputs would be tracked. Biomass may be processed on site using a series of mechanical processes, heavy equipment and conveyors. This equipment would be fuelled by diesel, gasoline or natural gas, resulting in GHG emissions. Other fuels may also be used in some rare cases. Quantities and types for each of the energy inputs would be tracked. Related Controlled Controlled Prepared by Blue Source Canada 17

22 P12 Combustion of Biomass Biomass may be transferred from processing (or from the storage piles if there are no processing systems) to the combustion facility using a combination of loaders, cranes, conveyors and other mechanized devices. This equipment would be fuelled by diesel, gasoline or natural gas, resulting in GHG emissions. Other fuels may also be used in some rare cases. Quantities and types for each of the energy inputs would be tracked. Greenhouse gas emissions may occur that are associated with the start-up of the biomass power facility. This may include the running of auxiliary equipment or burning of various fuels to warm up the equipment. These start-up periods may be after both scheduled and non-scheduled shut-downs of the facility. Quantities and types for each of the energy inputs would be tracked. Greenhouse gas emissions may occur that are associated with the operation and maintenance of the biomass power facility. This may include running any auxiliary or monitoring systems. Quantities and types for each of the energy inputs would be tracked. The operation of air quality control equipment on site may be powered by diesel, gasoline or natural gas. Other fuels may also be used in some rare cases. Quantities and types for each of the energy inputs would be tracked. Waste may be transferred from the combustion process to a storage area using a combination of loaders, cranes, conveyors and other mechanized devices. This equipment would be fuelled by diesel, gasoline or natural gas, resulting in GHG emissions. Other fuels may also be used in some rare cases. Quantities and types for each of the energy inputs would be tracked. Waste may be transferred from the waste storage area to containers for the transportation of the waste offsite using a combination of loaders, cranes, conveyors and other mechanized devices. This equipment would be fuelled by diesel, gasoline or natural gas, resulting in GHG emissions. Other fuels may also be used in some rare cases. Any energy inputs associated with P15 Storage of Waste, such as wetting, sorting or agitation of the waste, are to be included here. Quantities and types for each of the energy inputs would be tracked. The combustion of biomass yields greenhouse gas emissions. The carbon dioxide component of these emissions is deemed to be biogenic, however the remaining components must be considered. Quantity of biomass combusted would be tracked. Controlled P15 Storage of Waste Waste, representing predominantly non-combustible inert materials such as fly ash, sand Controlled Prepared by Blue Source Canada 18

23 and rocks, may be stored on-site in piles where limited anaerobic decomposition may occur, resulting in the emission of methane gas. These piles are typically maintained with short residency times on site in order to maintain the order of the facility. P21 Electricity Usage Downstream SS s during Project Operation P17 Transport of Waste P18 Disposal of Waste P19 and P20 Decomposition of Waste and Methane Collection / Destruction Other The characteristics of these storage piles, in terms of size, composition, shape and duration of storage may all need to be tracked. Electricity may be required for operating the facility. This power may be sourced either from internal generation, connected facilities or the local electricity grid. Metering of electricity may be netted in terms of the power going to and from the grid. Quantity and source of power are the important characteristics that may need to be tracked as they directly relate to the quantity of greenhouse gas emissions. Waste materials may be transported to disposal sites by truck, barge and/or train. The related energy inputs for fuelling this equipment are captured under this SS, for the purposes of calculating the resulting greenhouse gas emissions. Type of equipment, number of loads and distance travelled would be used to evaluate functional equivalence with the baseline condition. Waste may be disposed of at a disposal site (typically landfill or land application location) by transferring the waste from the transportation container, spreading, burying, processing, otherwise handling the waste using a combination of loaders, conveyors and other mechanized devices. This equipment would be fuelled by diesel, gasoline or natural gas, resulting in GHG emissions. Other fuels may also be used in some rare cases. Quantities and types for each of the energy inputs may need to be tracked. Waste may decompose in the disposal facility resulting in the production of methane. Under two alternatives, the fly ash (either with or without the other waste products from the facility) may either be used as a soil amendment or as a concrete amendment. Disposal site characteristics and mass disposed of at each site may need to be tracked. A methane collection and destruction system may be in place at the disposal site. If such a system is active in the area of the landfill where this waste is being disposed, then this methane collection must be accounted for in a reasonable manner. The characteristics of the methane collection and destruction system may need to be tracked Controlled Related Related Related Prepared by Blue Source Canada 19

24 P24 Development of Site P25 Building Equipment P26 Transportation of Equipment P27 Construction on Site P28 Testing of Equipment P29 Site Decommissioning The site of the energy from biomass facility may need to be developed. This could include civil infrastructure such as access to electricity, natural gas and water supply, as well as sewer etc. This may also include clearing, grading, building access roads, etc. There will also need to be some building of structures for the facility such as storage areas, storm water drainage, offices, vent stacks, firefighting water storage lagoons, etc., as well as structures to enclose, support and house the equipment. Greenhouse gas emissions would be primarily attributed to the use of fossil fuels and electricity used to power equipment required to develop the site such as graders, backhoes, trenching machines, etc. Equipment may need to be built either on-site or off-site. This includes all of the components of the storage, handling, processing, combustion, air quality control, system control and safety systems. These may be sourced as pre-made standard equipment or custom built to specification. Greenhouse gas emissions would be primarily attributed to the use of fossil fuels and electricity used to power equipment for the extraction of the raw materials, processing, fabricating and assembly. Equipment built off-site and the materials to build equipment on-site, will all need to be delivered to the site. Transportation may be completed by truck, train and/or barge. Greenhouse gas emissions would be primarily attributed to the use of fossil fuels to power the equipment delivering the equipment to the site. The process of construction at the site will require a variety of heavy equipment, smaller power tools, cranes and generators. The operation of this equipment will have associated greenhouse gas emission from the use of fossil fuels and/or electricity. Equipment may need to be tested to ensure that it is operational. This may result in running the equipment using test biomass fuels or fossil fuels in order to ensure that the equipment runs properly. These activities will result in greenhouse gas emissions associated with the combustion of fossil fuels and the use of electricity. Once the facility is no longer operational, the site may need to be decommissioned. This may involve the disassembly of the equipment, demolition of on-site structures, disposal of some materials, environmental restoration, re-grading, planting or seeding, and transportation of materials off-site. Greenhouse gas emissions would be primarily attributed to the use of fossil fuels and electricity used to power equipment required to decommission the site. Related Related Related Related Related Related Prepared by Blue Source Canada 20

25 Figure 3: Project Element Lifecycle Diagram for Project Condition Prepared by Blue Source Canada 21

26 Figure 4: Process Flow Diagram for Project Condition Prepared by Blue Source Canada 22

27 5.2. Baseline Condition The baseline condition selected and justified in Section 3 considers the generation of a functionally equivalent quantity of thermal energy, using the most likely fuel, as the quantity of heat generated under the project condition. In this particular case, the most likely alternative fuel would have been the continued use of natural gas and fuel oil in the pre-existing boilers to provide heat for the greenhouses. Thermal energy produced from biomass combustion at Prism Farms is used on site to provide heat to greenhouses growing tomatoes using a network of hot water pipes that circulate hot water throughout the greenhouses, and is therefore offsetting a portion of the heat load required to operate the greenhouses, which would have been derived from fossil fuel combustion. A combination of natural gas, fuel oil and coal would have been used if the biomass combustion system had not been installed. The biomass combustion boiler was originally selected as a flexible option to allow for the combustion of coal or biomass depending on price. The baseline condition, as defined in the Biomass Protocol, includes relevant SSRs and processes as shown in Table 4 and Figure 5 and Figure 6 below. Note that the following table has not been adapted to fit this particular project, but instead includes the generic definitions as written in the Alberta Biomass Protocol. Table 4: Baseline Condition Sources, Sinks, and Removals of GHG Emissions 1. SSR 2. Description Upstream SS s during Baseline Operation Biomass may be collected from either the forest floor, agricultural facilities or from industrial facilities into storage piles using heavy equipment or conveyors. Collection of the biomass from the forest floor is typically a component of the forest management plan or an additional function to gather the material for use. This would typically be completed by diesel fuelled bulldozers. 3. Controlled, Related or Affected B1 Collection of Biomass Collection of biomass from agricultural facilities, such as tree farms, would be completed by heavy equipment such as tractors or bulldozers as part of the site operational plan. Related Collection of biomass from industrial facilities is typically done as a means of keeping the work area clean. The biomass would either be mechanically or manually collected, and conveyed or moved in batches by heavy equipment. Prepared by Blue Source Canada 23

28 B2 Storage of Biomass For the majority of situations, collection activities are fuelled by diesel, gasoline, natural gas or electricity, resulting in GHG emissions. Other fuels may also be used in some rare cases. Quantities of each of the energy inputs would be contemplated to evaluate functional equivalence with the project condition. Biomass may be stored in piles where anaerobic decomposition may occur, resulting in the emission of methane gas. These piles may consist of storage piles at forestry, agricultural or industrial sites. Any energy inputs to this SS, for wetting of biomass or agitation of biomass, would be covered under B4 Transfer of Biomass as these elements are typically related. Related B3 Processing of Biomass B4 Transfer of Biomass The characteristics of these storage piles, in terms of size, shape, composition and duration of storage are all pertinent to evaluate functional equivalence with the project condition. Biomass may be processed off site using a series of mechanical processes, heavy equipment and conveyors. This equipment would be fuelled by diesel, gasoline or natural gas, resulting in GHG emissions. Other fuels may also be used in some rare cases. Quantities and types for each of the energy inputs would be tracked. Biomass may be transferred from storage piles into containers (truck trailers, rail cars or storage bins) on onto conveyors for transport to the disposal site. This may involve the usage of heavy equipment such as loaders and cranes, or other mechanized devices. This equipment would be fuelled by diesel, gasoline, natural gas or electricity, resulting in GHG emissions. Other fuels may also be used in some rare cases. Any energy inputs associated with B2 Storage of Biomass, such as wetting of biomass or agitation of biomass, are to be included here. Further, if the material is conveyed to the project site, then the related energy inputs would be captured under this SS. Related Related B5 Transport of Biomass Quantities for each of the energy inputs would be contemplated to evaluate functional equivalence with the project condition. Biomass may be transported to the disposal site by truck, barge and/or train. The related energy inputs for fuelling this equipment are captured under this SS, for the purposes of calculating the resulting greenhouse gas emissions. Type of equipment, number of loads and distance travelled would be used to evaluate functional equivalence with the project Related Prepared by Blue Source Canada 24

29 condition. B13 Fuel Extraction / Processing B14 Fuel Delivery Onsite SS s during Baseline Operation B11 Electricity Production B12 Thermal Energy Production B6 Transfer of Biomass B8 Disposal of Biomass Each of the fuels used throughout the on-site component of the project will need to be sourced and processed. This will allow for the calculation of the greenhouse gas emissions from the various processes involved in the production, refinement and storage of the fuels. The total volumes of fuel for each of the on-site SS s are considered under this SS. Volumes and types of fuels are the important characteristics to be tracked. Each of the fuels used throughout the on-site component of the project will need to be transported to the site. This may include shipments by tanker or by pipeline, resulting in the emissions of greenhouse gases. It is reasonable to exclude fuel sourced by taking equipment to an existing commercial fuelling station as the fuel used to take the equipment to the site is captured under other SS s and there is no other delivery. Electricity will be produced off-site to match the electricity being produced by the energy from biomass facility net of parasitic loads. This electricity will be produced at an emissions intensity as deemed appropriate by the Program Authority. Measurement of the gross quantity of electricity produced by the facility will need to be tracked to quantify this SS. The gross quantity of electricity produced should be net of any electricity sold as Renewable Energy Credits (RECs) as defined by the Environmental Choice Program. The production of thermal energy may be required to meet the demands of facilities being provided with thermal energy from the project site. This thermal energy may have been derived from waste heat recovery systems resulting in an energy burden on the systems from which the heat is being recovered or directly from combustion of fossil fuels. Energy requirements, fuel volumes and fuel types will need to be tracked. Biomass may be transferred from transportation containers to the disposal systems using a combination of loaders, cranes, conveyors and other mechanized devices. This equipment would be fuelled by diesel, gasoline, natural gas or electricity, resulting in GHG emissions. Other fuels may also be used in some rare cases. Quantities and types for each of the energy inputs would be tracked. Biomass may be disposed of at a disposal site by transferring the biomass from the transportation container, spreading, burying, processing, otherwise handling the biomass Related Related Controlled Controlled Controlled Controlled Prepared by Blue Source Canada 25