Offset Project Report

Transcription

1 CHICKADEE CREEK GENERATING STATION Greenhouse Gas Emissions Reduction Offset Project Report For the Period December 8, 2014 November 30, 2016 FINAL REPORT, version February 2017 Suite 700, th Avenue SW Calgary, Alberta T2P 3R5 T: (403) F: (403) Prepared for: NRGreen Power Limited Partnership (Project Proponent) #800, Ave SW Calgary, AB T2P 3H5 T: (403) F: (403)

2 Page 2 Contents Contents... 2 List of Tables... 3 List of Figures... 3 List of Abbreviations PROJECT SCOPE AND PROJECT DESCRIPTION PROJECT CONTACT INFORMATION PROJECT DESCRIPTION AND LOCATION PROJECT IMPLEMENTATION AND VARIANCES REPORTING PERIOD GREENHOUSE GAS CALCULATIONS... 9 Emissions under SS (B11) Electricity Usage... 9 Emissions under SS (P1) Fuel Extraction / Processing... 9 Emissions under SS (P9) Unit Operation (Grid Electricity Consumption) Emissions under SS (P11) Electricity Generation GREENHOUSE GAS ASSERTION OFFSET PROJECT PERFORMANCE PROJECT DEVELOPER SIGNATURES STATEMENT OF PEER REVIEW REFERENCES... 17

3 Page 3 List of Tables TABLE 1 - EMISSION FACTORS USED FOR CHICKADEE CREEK GENERATING STATION FOR THIS REPORTING PERIOD 12 TABLE 2 - OFFSET TONNES CREATED BY VINTAGE YEAR AND GHG TYPE List of Figures FIGURE 1 MONTHLY OFFSET CREDITS CREATED FOR THIS REPORTING PERIOD List of Abbreviations AEOR Alberta Emissions Offset Registry AENV Alberta Environment (now Alberta Environment & Parks) AEP AESRD APL Bluesource CCGS CH 4 CO 2 CO 2e GHG GWP HFC LHV N 2O ORC PFC SF 6 SGER SS WHP Alberta Environment and Parks (previously Alberta Environment & Sustainable Resource Development) Alberta Environment & Sustainable Resource Development (previously Alberta Environment) Alliance Pipeline Ltd. Blue Source Canada ULC Chickadee Creek Generating Station Methane Carbon Dioxide Carbon Dioxide-equivalent Greenhouse gas Global Warming Potential Hydrofluorocarbon(s) Lower Heating Value Nitrous Oxide Organic Rankine Cycle Perfluorocarbon(s) Sulphur Hexafluoride Specified Gas Emitters Regulation Sources and Sinks Waste Heat to Power

4 1 PROJECT SCOPE AND PROJECT DESCRIPTION The project title is: The project s purpose(s) and objective(s) are: Date when the project began: Expected lifetime of the project: Page 4 Chickadee Creek Generating Station ( the Project ) Alliance Pipeline Ltd. (APL) will provide heat energy currently lost to the atmosphere from its existing industrial operations at its Windfall natural gas compressor station site, located near Whitecourt Alberta, to NRGreen Power Limited Partnership (NRGreen). NRGreen will capture and convert this heat energy into electrical energy for sale to the Alberta grid resulting in Greenhouse Gas (GHG) reductions from electricity generation through offsite combustion of fossil fuels. NRGreen developed, owns, and operates the project. NRGreen is the project proponent and sole owner of any emission offset credits generated by the project. Facility construction began in 2012 and project started operations on December 8, The expected lifetime of the project and its installed technologies is 20 years. Electricity generation is expected to occur for the entire lifetime of the project. Offset credits will be generated for the maximum allowable credit duration period from the credit start date. Credit start date: The crediting start date for the Project is December 8, Credit duration period: The credit duration for this Project is 8 years ending on December 8, Reporting period: December 8, 2014 to November 30, 2016 Actual emissions reductions: The total project emission reductions as a result of this project since December 8, 2014 (the project credit start date) are listed here: 2014 (Dec 8 Dec 31) 2,676 tonnes of CO 2e 2015 (Jan 1 Dec 31) 7,136 tonnes of CO 2e 2016 (Jan 1 Nov 30) 32,934 tonnes of CO 2e Total 42,746 tonnes of CO 2e Applicable Quantification Protocol(s): Protocol(s) Justification: Other Environmental Attributes: Legal land description of the project or the The quantification protocol used is the Quantification Protocol for Waste Heat Recovery Projects (Version 1.0, September 2007) published by Alberta Climate Change Office (ACCO). This quantification protocol is applicable to the quantification of direct and indirect reductions of GHG emissions resulting from the implementation of waste heat recovery projects. The waste heat recovery protocol quantifies emission reductions on the basis that the heat and power demand being offset was originally achieved through fossil fuel combustion, either on-site or off-site. This Project is not generating Renewable Energy Certificates (RECs) or other environmental benefits/attributes. There are no opportunities for potential double counting as this project is only registered with the Alberta Emissions Offset Registry (AEOR). The Project is located near Whitecourt, Alberta. The Project location is as follows:

5 Page 5 unique latitude and longitude: Ownership: Reporting details: Verification details: Project activity: LSD: W5M Latitude: N Longitude: W NRGreen is the owner, developer, and operator of the project and has sole right and ownership of the electrical energy produced and sold from the project along with all GHG offset credits produced. NRGreen has a waste heat energy purchase contract with APL. APL will provide the heat to NRGreen and waive any right to environmental benefits or obligations as a result of the project. As the electrical energy is owned by NRGreen, NRGreen will produce, verify and register all GHG offsets generated by the project within the AEOR. NRGreen will be the sole owner of offsets from the Project. For the purposes of this offset project report, the offsets generated for the period of December 8, 2014 to November 30, 2016 will be claimed. The Proponent intends to submit annual reports for the Project on a go-forward basis. The verifier, ICF Canada, is an independent third-party that meets the requirements outlined in the Specified Gas Emitters Regulation (SGER). An acceptable verification standard (e.g. ISO ) has been used and the verifier has been vetted to ensure technical competence with this project type. This is the 1 st verification carried out by the verifier for this project. This Project meets the requirements for offset eligibility as outlined in section 3.1 of the Technical Guidance for Offset Project Developers (version 4.0, February 2013). In particular: 1. The project occurs in AB: as outlined above; 2. The project results from actions not otherwise required by law and beyond business as usual and sector common practices: Offsets being claimed under this project originate from a voluntary action. The Project activities (i.e. waste heat to power) occurs at a non-regulated facility (i.e. Chickadee Creek Generating Station) and are not required by law. The Project uses a government approved quantification protocol, which indicates that the activity is undertaken by less than 40% of the industry and is therefore not considered to be sector common practice; 3. The project results from actions taken on or after January 1, 2002: as outlined above; 4. The project reductions/removals are real, demonstrable, quantifiable and verifiable: The Project is creating real reductions that are not a result of shutdown, cessation of activity or drop in production levels. The emission reductions are demonstrable, quantifiable and verifiable as outlined in the remainder of this plan.

6 Page 6 5. The project has clearly established ownership: As described above NRGreen is the owner, developer, and operator of the project and has sole right and ownership of the electrical energy produced and sold from the project along with all GHG offset credits produced. See Ownership section above. 6. The project will be counted once for compliance purposes: The Project credits will be registered with the Alberta Emissions Offset Registry (AEOR) which tracks the creation, sale and retirement of credits. Credits created from the specified reduction activity have not been, and will not be, created, recorded or registered in more than one trading registry for the same time period.

7 Page 7 2 PROJECT CONTACT INFORMATION Project Proponent Contact Information Contact Information for Consultant (Report Prepared By) NRGreen Power Limited Partnership Jim Walsh Vice President, Operations #800, Ave SW Calgary, AB T2P 3H5 Phone: Fax: jim.walsh@nrgreenpower.com Blue Source Canada ULC Tooraj Moulai Senior Engineer, Carbon Services Suite 700, th Avenue SW Calgary, AB T2P 0Z3 Alternate: Rob Cooney Environmental Advisor Alliance Pipeline Ltd. Phone: Cell: Rob.Cooney@alliancepipeline.com Alternate: Kelly Parker Engineer, Carbon Services Suite 700, th Avenue SW Calgary, AB T2P 0Z3 Verifier Phone: x259 Fax: tooraj@bluesourcecan.com Web: ICF Consulting Canada, Inc. Julie Tartt Senior Manager Phone: Julie.Tartt@icf.com Phone: x260 Fax: kellyp@bluesourcecan.com Web: This is the 1 st verification carried out by the verifier for this project.

8 Page 8 3 PROJECT DESCRIPTION AND LOCATION Alliance Pipeline Ltd. (APL) uses natural gas fired turbine generators to create mechanical energy to compress and transport natural gas on its transmission pipeline system. The by-product of this industrial process is heat energy that is concurrently released to the atmosphere and was subsequently lost. NRGreen Power Limited Partnership (NRGreen) (the Proponent) and General Electric Oil and Gas Canada (GE) have constructed the Chickadee Creek Generating Station (the Project) at APL s Windfall compressor station. The Project uses a newly developed system called ORegen TM to recover turbine exhaust heat lost to the atmosphere and generates usable electricity for transmission into the Alberta grid. The ORegen TM system is a closed loop Organic Rankine Cycle (ORC) system that does not burn any fossil fuels and does not generate any new emissions as part of its process. Its input is heat energy and output is electrical energy. The Project captures the exhaust gas stream of the APL gas turbines. The project boundary begins from the point at which the APL gas turbine exhaust plenum(s) connect with the Project and includes the entire NRGreen facility. The APL facility boundary includes all equipment within the APL fence line excluding the NRGreen facility. The Project is located next to Alliance Pipeline s Windfall Generating Station, which is about 38 km from Whitecourt, Alberta. 4 PROJECT IMPLEMENTATION AND VARIANCES Highlighted below are the variances and, or, modifications made to this reporting period, as compared to the Offset Project Plan dated 18 December 2014: (i) P9 Unit Operation Project emissions from grid electricity consumption were quantified under P9 Unit Operation. Metered data indicating electricity consumption was identified and used in calculating grid consumption emissions. This is a variance from the Offset Project Plan, which had excluded emissions from P9 Unit Operation. The total emissions resulting from grid electricity consumption was 1,380 tonnes CO 2e for this reporting period. 5 REPORTING PERIOD For the purposes of this project report, the carbon dioxide equivalent emission reduction credits are claimed for the reporting period 8 December 2014 to 30 November 2016.

9 Page 9 6 GREENHOUSE GAS CALCULATIONS GHG emission reductions were calculated following the Quantification Protocol for Waste Heat Recovery Projects version 1.0 (AEP, 2007). The activities and procedures outlined in the Offset Project Plan (dated 18 December 2014) provide a detailed description of the Project s adherence to the requirements of the quantification protocol. The formulas used to quantify greenhouse gas offsets for this reporting period by the Project are listed below. The following equations serve as the basis for calculating the emission reductions from the comparison of the baseline and project conditions: Emission Reduction = Emissions Baseline Emissions Project Emissions Baseline = sum of the emissions under the baseline condition. Emissions Electricity Generation = emissions under SS (B11) Electricity Usage Emissions Project = sum of the emissions under the project condition. Emissions Fuel Extraction and Processing = emissions under SS (P1) Fuel Extraction and Processing Emissions Unit Operation = emissions under SS (P9) Unit Operation (Grid Electricity Consumption) Emissions Electricity Generation = emissions under SS (P11) Electricity Generation Emissions under SS (B11) Electricity Usage Emissions of CO 2 e = EP Grid x GD CO2eEF Where, GD CO2eEF (t CO 2/MWh) = Grid electricity displacement emissions factor 1 (See Table 1); EP Grid (MWh) = Net electricity production to the grid by the Project; Emissions under SS (P1) Fuel Extraction / Processing 2 Emissions of CO 2 = D x DEP CO2 EF Emissions of CH 4 = D x DEP CH4 EF Emissions of N 2 O = D x DEP N2 OEF 1 The grid electricity displacement emissions factor is based on the AEP memorandum issued on December 20, 2011, Notice of Change for Emissions Factor for Increased Grid Electricity Usage. Available at: 2 Diesel Extraction and Processing Emission factors are based on the Carbon Offset Emission Factors Handbook version 1.0, March 2015

10 Page 10 Where, DEP CO2EF/DEP CH4EF/DEP N2OEF (tonnes/litre) = CO 2, CH 4, and N 2O emissions from diesel production; D (litres) = Diesel fuel consumed to generate supplementary electricity for the Project. Emissions under SS (P9) Unit Operation (Grid Electricity Consumption) Emissions of CO 2 e = EC Grid x GI CO2eEF Where, EC Grid (MWh) = Grid electricity consumed by the Project when onsite power is down; GI CO2eEF (t CO 2/MWh) = Grid intensity emissions factor 3 (See Table 1); Emissions under SS (P11) Electricity Generation Where, Emissions of CO 2 = D x DEC CO2 EF Emissions of CH 4 = D x DEC CH4 EF Emissions of N 2 O = D x DEC N2 OEF DEC CO2EF/DEC CH4EF/DEC N2OEF (tonnes/litre) = CO 2, CH 4, and N 2O emissions from diesel combustion; D (litres) = Diesel fuel consumed to generate supplementary electricity for the Project. D (litres) = RM / 60 * DU RM (minutes) = Logged runtime minutes for the auxiliary power unit (APU) operated by diesel fuel DU (litres/hour) = Rated fuel consumption for diesel powered auxiliary power unit AEP released the Carbon Offset Emission Factors Handbook Version 1.0 in March of This document contains updated emission factors for projects in the Alberta carbon offset system. The handbook was accompanied with a memo from AEP indicating that the emission factors are for use in all new projects and current projects are only required to use the updated factors after receiving a crediting period extension. For this Project the project Offset Project Plan was registered in 2014 and the crediting start 3 The grid intensity emissions factor is based on the AEP memorandum issued on December 20, 2011, Notice of Change for Emissions Factor for Increased Grid Electricity Usage. Available at:

11 Page 11 date is December 8, 2014 and as a current project it uses the same grid emission factors indicated in the Offset Project Plan (dated 18 December 2014), which are based on the AEP memorandum issued on December 20, 2011, Notice of Change for Emissions Factor for Increased Grid Electricity Usage. The emission factors for the diesel production are consistent between the new Handbook and the Acid Gas Injection protocol (reference for Alberta diesel emission factors before the release of the Handbook). Therefore, the Carbon Offset Emission Factors Handbook Version 1.0 is used as the source for diesel production emission factors.

12 Page 12 Table 1 - Emission factors used for Chickadee Creek Generating Station for this reporting period Parameter Relevant SS CO2 Emission Factor CO2 Emission Factor Source CH4 Emission Factor CH4 Emission Factor Source N2O Emission Factor N2O Emission Factor Source CO2e Emission Factor CO2e Emission Factor Source Diesel Gas Production Grid Electricity Intensity Grid Electricity Displacement P tonnes /litre Carbon Offset Emission Factors Handbook, Version 1.0 March 2015; Residential, Construction, Commercial/Institutional, Agriculture tonnes /litre Carbon Offset Emission Factors Handbook, Version 1.0 March 2015; Residential, Construction, Commercial/Institutional, Agriculture tonnes /litre Carbon Offset Emission Factors Handbook, Version 1.0 March 2015; Residential, Construction, Commercial/Institutiona l, Agriculture P9 n/a n/a n/a n/a n/a n/a 0.88 B11 n/a n/a n/a n/a n/a n/a 0.65 n/a n/a Government of Alberta. December 20, 2011 Memorandum Diesel Gas Combustion P kg/litre Carbon Offset Emission Factors Handbook, Version 1.0 March 2015; Residential, Construction, Commercial/Institutional, Agriculture kg /lite Carbon Offset Emission Factors Handbook, Version 1.0 March 2015; Residential, Construction, Commercial/Institutional, Agriculture kg /litre Carbon Offset Emission Factors Handbook, Version 1.0 March 2015; Residential, Construction, Commercial/Institutiona l, Agriculture n/a n/a

13 Page 13 7 GREENHOUSE GAS ASSERTION The greenhouse gas assertion is a statement of the number of offset tonnes achieved during the reporting period. The assertion identifies emissions reductions per vintage year and includes a breakout of individual greenhouse gas types (CO 2, CH 4, N 2O, SF 6, HFCs, and PFCs) applicable to the Project and total emissions reported as CO 2e. The total in units of tonnes of carbon dioxide equivalent (CO 2e) is calculated using the global warming potentials (GWPs) referenced in the SGER. Table 2 identifies the greenhouse gas assertion, containing the calculated number of offset tonnes achieved, separated by each unique vintage year and GHG released. Table 2 - Offset tonnes created by vintage year and GHG type 2014 (Dec 8 - Dec 31) Greenhouse Gas (GHG) in tonnes CO 2e CO 2 CH 4 N 2O PFCs HFCs SF 6 CO 2e Total Baseline , ,742.1 Project Reductions , , (Jan 1 Dec 31) Greenhouse Gas (GHG) in tonnes CO 2e CO 2 CH 4 N 2O PFCs HFCs SF 6 CO 2e Total Baseline ,186 8,186 Project ,049.8 Reductions , , (Jan 1 Nov 30) Greenhouse Gas (GHG) in tonnes CO 2e CO 2 CH 4 N 2O PFCs HFCs SF 6 CO 2e Total Baseline , ,382.8 Project Reductions , ,934

14 Monthly Offsets Created (tco2e/month) Page 14 8 OFFSET PROJECT PERFORMANCE Figure 1 shows the monthly trend of offset credits created from the start of project crediting beginning on December 8, The Project created 42,746 tonnes of CO 2e offset credits for the current reporting period. There was a significant increase in credit generation during the fourth quarter of 2015 and throughout 2016 when the Windfall compressor station was regularly operated providing a more consistent source of heat energy. 5,000 4,000 3,000 2,000 1, ,000 Month Figure 1 Monthly Offset Credits Created for this reporting period The Project averaged 1,781 tonnes CO 2e/month for the current reporting period and monthly credits ranged from -226 and 4,697 tonnes CO 2e. For this reporting period 90% of the reductions occurred during the 14-months between October-2015 to November During this time the average reductions achieved were 2,748 tonnes CO 2e/month.

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16 Page STATEMENT OF PEER REVIEW This offset project report was prepared by Tooraj Moulai, Senior Engineer, Blue Source Canada and peer reviewed by Aleena Dewji, Senior Carbon Project Analyst, Blue Source Canada. Although care has been taken in preparing this document, it cannot be guaranteed to be free of errors or omissions. Prepared by: Peer reviewed by: Tooraj Moulai Aleena Dewji Senior Engineer Senior Carbon Project Analyst 01/02/ /02/2017

17 Page REFERENCES Alberta Environment and Parks, 2013, Technical Guidance for Offset Project Developers - Version 4.0, February Alberta Environment and Parks, 2007, Quantification Protocol for Waste Heat Recovery Projects Version 1.0, September Alberta Environment and Parks, 2008, Quantification Protocol for Acid Gas Injection Version 1.0, May Alberta Environment and Parks, 2011, Notice of Change for Emission Factors for Increased Grid Electricity Usage, Alberta Environment and Parks, 2015, "Carbon Offset Emission Factors Handbook Version 1.0 March 2015",