OFFSET PROJECT REPORT for

Transcription

1 OFFSET PROJECT REPORT for CARBON CREDIT SOLUTIONS INC. WIND PROJECT #1 REPORTING PERIOD: JANUARY 1, 2014 DECEMBER 31, 2015 May 2016

2 Carbon Credit Solutions Inc OFFSET PROJECT REPORT for CARBON CREDIT SOLUTIONS INC. WIND PROJECT #1 Section Contents Introduction 1. Project Scope and Site Description 2. Project Contact Information 3. Project Description 4. Project Implementation and Variances 5. Greenhouse Gas Calculation 6. Greenhouse Gas Assertion 7. Project Developer Signature Appendix A Appendix B Offset Project Plan for Carbon Credit Solutions Inc. Wind Project #1 Credit Extension Letter & Request for Clarification on Credit Extension Letter Offset Project Report for Carbon Credit Solutions Inc. Wind Project #1 Page 2

3 Carbon Credit Solutions Inc Project Developer: Carbon Credit Solutions Inc. Date: May 25, 2016 Reporting Period: January 1, 2014 December 31, 2015 Carbon Credit Solutions Inc. ( CCSI ) uses the Specified Gas Emitters Regulation Quantification Protocol for Wind- Powered Electricity Generation Version 1.0 March 2008 ( Wind Protocol ) which can be found in the Offset Project Plan for CCSI Wind Project #1 (dated August 2010) which sets out the requirements for quantification of greenhouse gas ( GHG ) emission reductions associated with a change to generating electricity that would have otherwise been generated by using fossil fuel based sources in the Province of Alberta. Carbon Credit Solutions Inc. Wind Project #1 referred to as the Project, consistently followed the process described in the Offset Project Plan for CCSI Wind Project #1 (dated August 2010). A report generated from the CCSI software program lists all legal land descriptions, carbon package and project year for the locations included within the Project, as requested by Alberta Environment and Sustainable Resource Development. 1. Project Scope and Site Description Project Title: Project Purpose and Objective(s): Project Start Date: Credit Start Date: Credit Duration Period: Carbon Credit Solutions Inc. Wind Project #1 referred to as the Project. This Project consists of the aggregation of greenhouse gas ( GHG ) emission reductions generated through the change to generating electricity that would have otherwise been generated by using fossil fuel based sources in the Province of Alberta. Carbon Credit Solutions Inc. referred to as CCSI, as an aggregator, has collected greenhouse gas emission reductions created by individual participants in order to provide sufficient quantities of greenhouse gas emission reductions as required by interested buyers. These greenhouse gas emission reductions have been generated in accordance with the Specified Gas Emitters Regulation Quantification Protocol for Wind-Powered Electricity Generation Version 1.0 March 2008 ( Wind Protocol ). The quantification of reductions achieved by the Project will be based on actual measurements and monitoring as prescribed by the Wind Protocol and Technical Guidance for Offset Project Developers (version 4.0 February 2013). The Project includes the aggregation of greenhouse gas emission reductions generated from individual participants and their turbines within each individual operation. The lands included within this Project will be an accumulation of operations located entirely within the Province of Alberta. The Project start dates vary between facilities. Project specific start dates are: Lundbreck Developments Ltd. referred to as Facility #1 January 29, REIDCO Power Corp referred to as Facility #2 June 1, Lagerway Wind Project referred to as Facility #3 June 1, The crediting start date for each facility is the same as the project start date listed above. The credit duration periods vary between facilities. An extension to the crediting period for facilities #1 and #3 were granted by the climate change secretariat on June No extension was requested for facility #2 as it is still generating credits for the initial 8 year crediting period. The credit duration for each facility are: Facility #1 January 29, 2002 to January 29, 2015 Offset Project Report for Carbon Credit Solutions Inc. Wind Project #1 Page 3

4 Carbon Credit Solutions Inc Facility #2 June 1, 2009 to June 1, 2017 Facility #3 June 1, 2003 to June 1, 2016 Reporting Period: Expected lifetime of the Project: Actual Emission Reductions/Removals Achieved: Applicable Quantification Protocols: Protocol Justification: Other Environmental Attributes: Legal Land Description of the Project/Other Unique Site Descriptions: Ownership: The reporting period (ERC Creation Period) for this project is January 1, 2014 to December 31, The expected lifetime of this project varies between facilities. Expected lifetimes are: Facility #1 January 29, 2002 to January 29, 2015 Facility #2 June 1, 2009 to June 1, 2017 Facility #3 June 1, 2003 to June 1, 2016 The actual annual emission removals achieved from this project is 4,869 tonnes CO2e. Carbon Credit Solutions Inc. ( CCSI ) uses the Specified Gas Emitters Regulation Quantification Protocol for Wind-Powered Electricity Generation Version 1.0 March 2008 ( Wind Protocol ) which sets out the requirements for quantification of greenhouse gas ( GHG ) emission reductions associated with a change to generating electricity that would have otherwise been generated by using fossil fuel based sources in the Province of Alberta. The Project has been completed in accordance with the Technical Guidance for Offset Project Developers (version 4.0 February 2013). The assembly of wind turbines used for electricity generation is entirely voluntary in a non-regulated sector operation. The project meets the requirements under the Wind Protocol and generates offsets as a result of an action that is not required by law. Each emission offset has been generated from the voluntary action of the owner of the wind turbines and is not otherwise required by law. This project is not generating any other environment attributes/credits/benefits such as Renewable Energy Certificates (RECs). CCSI has aggregated using the Wind Protocol throughout the Province of Alberta. Within our database, any additional information will be made available for specific review upon request. Ownership of the greenhouse gas emission reductions has been established as per ownership and lease agreements. Contractual agreements for aggregation of the GHG emission reductions exist between CCSI, the landowner and turbine owner. Option 1: Direct Purchase (The aggregator owns the credits) In this scenario, the aggregator purchases the offset credits from the individual project developer. The aggregator must be able to demonstrate to the satisfaction of the third party verifier, regulated facility, and Alberta Environment and Water that ownership and title have transferred from the producer of the credits to the aggregator at the time of verification. Option 2: Agent (The aggregator acts as an agent) The aggregator acts as an agent on behalf of the offset credit producer. In this case, the contractual agreement between the credit producer and aggregator must clearly stipulate the right of the aggregator to act as an agent on behalf of the credit producer. Title remains with the project developer until the offset credits are sold to a buyer. Offset Project Report for Carbon Credit Solutions Inc. Wind Project #1 Page 4

5 Carbon Credit Solutions Inc Reporting Verification Details: Project Activity: and CCSI is an aggregator and is acting as an Agent as defined in section Considerations for Aggregated Projects in the Technical Guidance for Offset Project Developers (version 4.0 February 2013). CCSI has obtained legal right to transact on the offset credits on behalf of the credit producer. The greenhouse gas emission reductions have been verified by a third party verifier according to the Technical Guidance for Offset Project Developers (version 4.0 February 2013). CCSI has hired AET Group Inc., as the independent third party verification team to review the Project. The verifier has met the requirements as outlined in SGER. The verifier s auditors have inspected the assurance documents to ensure the information was accurately entered into the CCSI data management system. The verification was conducted to a reasonable level of assurance. The Project has been verified in accordance with the ISO Standards and the requirements of the Wind Protocol. The time period to be covered in the initial verification audit will be from January 1, 2014 to December 31, The next verification is tentative scheduled to occur in the spring of The verification process has been used to ensure CCSI used the CAN/CSA-ISO Part 3 standards, we have: enhanced our integrity through the GHG quantification; provided credibility, consistency and transparency; facilitated in the development and implementation of the GHG management strategies and plans; provided assurance in the development and implementation of our Project; developed strong materiality in the development and implementation of our Project; ensured competence and transparency in tracking performance and progress of our Project; provided solutions and identified the GHG risks or liabilities; presented sufficient strength to ensure investor confidence; and provided clarity and conservativeness in the crediting and trading of the CCSI developed GHG emission reductions. Section 7 of the Specified Gas Emitters Regulation defines the minimum eligibility criteria that must be met for an offset project to be eligible to generate offset credits for use as a compliance option in Alberta. In order to qualify, project-based emission reductions/removals must: Occur in Alberta; Result from actions not otherwise required by law and be beyond business as usual and sector common practices; Result from actions taken on or after January 1, 2002; Occur on or after January 1, 2002; Be real, demonstrable, quantifiable, and verifiable; Have clearly established ownership; and Be counted once for compliance purposes; Offset Project Report for Carbon Credit Solutions Inc. Wind Project #1 Page 5

6 Carbon Credit Solutions Inc In addition to the requirements stated above, Alberta also requires that offset projects: Be implemented according to a Government of Alberta-approved quantification protocol; Be third party verified by a qualified person(s) meeting the requirements for a third party auditor under section 18 of the Regulation; and Be registered on the Alberta Emissions Offset Registry. All of credits generated in the project meet all of the criteria stated in the Technical Guidance Document for Offset Project Developers (version 4.0 February 2013). All turbines in the project are in Alberta. The facility owner s actions are not required by law and go beyond business as usual as per the Wind Protocol which makes use of standardized baseline. All credits are real, demonstrable, quantifiable and verifiable. Ownership criteria has been clearly established and is demonstrable, quantifiable and verifiable. Credits will be counted once for compliance purposes. Other: All credits will be generated using the Wind Protocol and verified and registered with the Alberta Emissions Offset Registry. The Project did not deviate from the Offset Project Plan for Wind Project #1. This project will only be registered once and in one offset system, the Alberta Offset Registry. 2. Project Contact Information Project Developer Contact Information Verification Carbon Credit Solutions Inc. Vanessa Weitz Project Manager East Lake Road N.E. Airdrie, Alberta Phone: (403) Fax: (403) vanessa@carboncreditsolutions.ca AET Group Inc. 38 John Street East Exeter, ON N0M 1S6 T C F Carbon Credit Solutions Inc. Alastair Handley President Unit # Bowers St. N.E. Airdrie, Alberta Phone: (403) Fax: (403) alastair@carboncreditsolutions.ca Offset Project Report for Carbon Credit Solutions Inc. Wind Project #1 Page 6

7 Carbon Credit Solutions Inc AET Group Inc. has conducted 3 prior consecutive verifications. 3. Project Description Carbon Credit Solutions Inc. Wind Project #1 referred to as the Project includes the aggregation of greenhouse gas emission reductions associated with a change to generating electricity that would have otherwise been generated by using fossil fuel based sources in the Province of Alberta. The Project did not deviate from the Offset Project Plan for Wind Project #1. The life time of this project is January 1, 2012 to December 31, This is a result of the different crediting periods for the facilities in the project. As outlined within the Wind Protocol document, each wind facility within the Project meets the protocol applicability and can supply evidence to prove: Metering of net electricity production is made downstream before entering the transmission grid. There are no electricity storage systems at any of the facilities. Quantification of reductions in this project are based on actual measurement and monitoring as indicated in the Wind Protocol; Meets the requirements for offset eligibility as specified in the applicable regulation and guidance documents for the Alberta Offset System. Of particular note: Ownership of the greenhouse gas emission reductions has been established as per ownership and lease agreements. In addition to the requirements stated above, Alberta also requires that offset projects: Be implemented according to a Government of Alberta-approved quantification protocol; Be third party verified by a qualified person(s) meeting the requirements for a third party auditor under section 18 of the Regulation; and Be registered on the Alberta Emissions Offset Registry and no other registry. Ownership of the greenhouse gas emission reductions has been established as per land ownership and lease agreements. Contractual agreements for aggregation of the GHG emission reductions exist between CCSI, the landowner, and turbine owner. Aggregating a number of small projects into a single, larger project can help manage transaction costs for offset projects. Aggregators typically use one of two business models for ownership of offset credits: Direct Purchase or Agent. Both models are acceptable in the Alberta offset system and should be clearly identified in the contract with the land owner/land lessee. CCSI is an aggregator and is acting as an Agent as defined in section Considerations for Aggregated Offset Project Report for Carbon Credit Solutions Inc. Wind Project #1 Page 7

8 Carbon Credit Solutions Inc Projects in the Technical Guidance for Offset Project Developers (version 4.0 February 2013). CCSI has obtained legal right to transact on the offset credits on behalf of the credit producer. The time period covered in this Project is from January 1, 2014 to December 31, The credit duration period of the project has been adopted every 8 years with a possible 5 year extension as outlined in the tables below. Extensions to the credit duration period of Lundbreck Developments Ltd and the Lagerway Wind Project have been granted by Alberta Environment. A copy of the extension letter can be found in Appendix B. Table 1 Facility Reporting Period Start Date Lundbreck Developments Ltd. referred to as Facility #1 January 1, 2014 REIDCO Power Corp referred to as Facility #2 January 1, 2014 Lagerway Wind Project referred to as Facility #3 January 1, 2014 Table 2 Facility Credit Duration Period Lundbreck Developments Ltd. referred to as Facility #1 January 29, 2015 REIDCO Power Corp referred to as Facility #2 June 1, 2017 Lagerway Wind Project referred to as Facility #3 June 1, Project Implementation and Variances This Project consists of the aggregation of greenhouse gas emission reductions generated from the reductions of greenhouse gas emissions through the change to generating electricity that would have otherwise been generated by using fossil fuel based sources. The quantification of reductions achieved by the Project is based on actual measurements and monitoring. Using the Wind Protocol as a guidance document, each participant provided evidence to ensure all eligibility was met and all criteria were followed. This process is described in detail in the Offset Project Plan for Wind Project #1 (dated August 2010), and was consistently following for the duration of this project. The Project did not deviate from the Offset Project Plan for Wind Project #1. 5. Greenhouse Gas Calculation Calculation of the reductions, removals and reversals of relevant SS s for each of the greenhouse gases has been used the methodologies outlined Table 3, below as per emissions factors listed in the Wind Protocol page 14. For calculating the emission reductions from the comparison of the baseline and Project conditions, these calculation methodologies serve to complete the following three equations. The calculations and emissions factors below in Table 1 have been used in this project. Table 3 Emission Reduction = Emissions Baseline Emissions Project Emissions Baseline = Emissions Electricity Generation Emissions Project = Emissions Facility Operation + Emissions Electricity Storage Systems + Emissions Fuel Extraction and Processing Where: Emissions Baseline = sum of the emissions under the baseline condition. Emissions Electricity Generation= emissions under SS s B1 Electricity Generation Offset Project Report for Carbon Credit Solutions Inc. Wind Project #1 Page 8

9 Carbon Credit Solutions Inc Emissions Project = sum of the emissions under the Project condition. Emissions Facility Operation = emissions under SS P1 Facility Operation Emissions Electricity Storage Systems = emissions under SS P2 Electricity Storage Systems Emissions Fuel Extraction and Processing = emissions under SS P3 Fuel Extraction and Processing CCS has collected information from each participant regarding the volume of GHG sources, sinks and reservoirs relevant to the activity and relevant to the baseline scenarios. The Offset Project Plan for Wind Project #1 describes the calculation methodologies. Our process described in the Offset Project Plan for Wind Project #1 has been consistency followed. Emissions related to maintenance Emissions from travel to and from each facility for the purposes of maintenance must be accounted for. An accurate measurement of fuel consumption as required by the protocol was not available. Therefore we deviated from the Protocol and estimated the volume of fuel consumed by taking into consideration the number of maintenance events, the distance traveled by the maintenance providers and an estimate of fuel economy. In order to err on the side of conservatism a fuel economy of 15 L/100 km was used for all maintenance vehicles in this project. The emission factors for fuel consumption were obtained from the Appendix A of the Wind-Powered Electricity Generation Protocol The emissions for the maintenance of each of these facilities are calculated using the formulas below. Emission factors for diesel are as follows: Emission Factors CO2 kg/l CH4 kg/l N2O kg/l Extraction and production Combustion Total Emission factors for gasoline are as follows: Emission Factors CO2 kg/l CH4 kg/l N2O kg/l Extraction and production Combustion Total Gasoline extraction and combustion emission calculation Assume 10 liters was consumed Emissions = 10L * kg CO2/L + (10L * Kg CH4/L ) + ( 10 * Kg N20/L) Emissions = Kg CO Kg CH Kg N20 Converting to CO2e we get Emissions Kg CO2e = (21 * ) + (310 * ) = Kg C02e Offset Project Report for Carbon Credit Solutions Inc. Wind Project #1 Page 9

10 Carbon Credit Solutions Inc Diesel extraction and combustion emission calculation Assume 10 liters of diesel was consumed Emissions from processing and combusting 10L of diesel are calculated as follows. Emissions = (10L * Kg CO2/L) + (10L * Kg CH4/L) + (10L * Kg N2)/L) Emissions = Kg CO Kg CH Kg N20 Converting to CO2e we get Emissions Kg CO2e = (21 *.1103) + (310 *.00404) = Kg CO2e Emissions related to Maintenance for Facility #1 Maintenance for the turbine owned by Lundbreck Developments was performed from Enercon, the service provider, provided a complete breakdown of all maintenance work done at this facility. Included in this report, are the number of hours spent driving to and from the facility. Time traveled was converted to KM driven by assuming and average speed of 80KM/hr. Based on this information we determined that the maintenance crew drove the following distances per year. Year Vehicle Total Distance 2014 Dodge Ram 2500 HD 3240 km 2015 Dodge Ram 2500 HD 40 km An accurate measurement of fuel consumption as required by the protocol was not available. Therefore we deviated from the protocol and estimated the volume of fuel consumed by taking into consideration the number of maintenance events, the distance traveled by the maintenance providers and an estimate of fuel economy. In order to err on the side of conservatism a fuel economy of 15 L/100 km was used for all maintenance vehicles in this project. Therefore the total fuel consumption from 2014 to 2015 is approximately 492 liters of diesel. The emissions from the consumption of 492 liters of diesel are tonnes CO2e. Emissions related to Maintenance for Facility #2 Maintenance for the turbine owned by Reidco Power Corp was performed by one company since the turbine was commissioned in Maintenance records were used to determine the number of trips made by the providers. Maintenance workers traveled from two different bases to complete the required work The number of maintenance visits and total distance travelled covered by each maintenance provider are detailed below. Year Vehicle Total Distance 2014 Dodge Ram 2500 HD 5769 km 2015 Dodge Ram 2500 HD 1827 km An accurate measurement of fuel consumption as required by the protocol, was not available. Therefore we deviated from the Protocol and estimated the volume of fuel consumed by taking into consideration the number of maintenance events, the distance traveled by the maintenance providers and an estimate of fuel economy. In order to err on the side of conservatism a fuel economy of 15 L/100 km was used for all maintenance vehicles in this project. Therefore the total fuel consumption for is approximately 1139 liters of diesel. Offset Project Report for Carbon Credit Solutions Inc. Wind Project #1 Page 10

11 Carbon Credit Solutions Inc The emissions from the consumption of 1139 liters of diesel are tonnes CO2e. Emissions related to Maintenance for Facility #3 Lagerway maintenance was performed from 2014 to The number of maintenance visits and total distance travelled covered is detailed below. Year Vehicle Total Distance Ford F150 (gas) 3642 km Ford F150 (gas) 4406 km An accurate measurement of fuel consumption as required by the protocol, was not available. Therefore we deviated from the Protocol and estimated the volume of fuel consumed by taking into consideration the number of maintenance events, the distance traveled by the maintenance providers and a estimate of fuel economy. In order to err on the side of conservatism a fuel economy of 15 L/100 km was used for all maintenance vehicles in this project. Therefore the total fuel consumption from 2014 to 2015 is approximately 1207 liters of regular gasoline. The emissions from the consumption of 1207 liters of gasoline are tonnes CO2e. Emissions Electrical Consumption Emissions related to Electrical Consumption for Facility #3 Facility#3 is not net metered. From January 1, 2014 to December 31, 2015 this facility consumed MWH of electricity. This equates to Tonnes of CO2e. These emissions were accounted for in the project. Emissions related to Electrical Consumption for Facility #2 Facility #2 is not net metered. From January 1, 2014 to December 31, 2015 this facility consumed MWH of electricity. This equates to Tonnes of CO2e. These emissions were accounted for in the project. Emissions related to Electrical Consumption for Facility #1 Facility #1 owned by Lundbreck Developments is net metered. Total Emissions for Each Facility in tonnes CO2e Total Emissions Facility 1 Emissions Facility 2 Emissions Facility 3 Emissions Power Consumption Fuel Emissions Total Greenhouse Gas Assertion The emission factor 0.65 tonnes of CO2e/MWh was the factor used to quantify GHG reductions as stated in the Alberta Offset Guidance Document (version 1.2 February 2008). The emission reductions of each vintage year for wind energy are: (Reductions are rounded down to the nearest whole number as requested by Alberta Environment) Offset Project Report for Carbon Credit Solutions Inc. Wind Project #1 Page 11

12 Carbon Credit Solutions Inc Emission reductions by facility and vintage year Vintage Year Facility 1 Facility 2 Facility 3 Total Tonne Tonne Reduction Tonne Reduction Tonne Reduction Reduction 2014 Reductions , , Emissions (1.5673) (5.9272) ( ) ( ) 2014 Net Reductions 612 1, , Reductions , , Emissions (0.0193) (3.0450) ( ) ( ) 2015 Net Reductions 93 1, ,179 Emission Reduction Types: Vintage Year PFC (tco2e) HFC (tco2e) SF6 (tco2e) CH4 (tco2e) N2O (tco2e) tco2e (tco2e) Total (tco2e) Project Developer Signature I am duly authorized corporate officer of the Project Developer mentioned above and have personally examined and am familiar with the information submitted in this Offset Project Report including the accompanying GHG Assertion on which it is based. Based upon reasonable investigation, including my inquiry of those individuals responsible for obtaining the information, I hereby warrant that the submitted information is true, accurate and complete to the best of my knowledge and belief, and that all matters affecting the validity of the emission reduction claim or the protocol upon which it is based have been fully disclosed. I understand that any false statement made in the submitted information may result in de-registration and may be punishable as a criminal offence in accordance with provincial or federal statutes. The project developer has executed this Offset Project Report as of the 25th day of May, Project Name: Carbon Credit Solutions Inc. Wind Project #1 Project Developer: Carbon Credit Solutions Inc. Alastair Handley President May 25th, 2016 Offset Project Report for Carbon Credit Solutions Inc. Wind Project #1 Page 12

13 Carbon Credit Solutions Inc Appendix A Offset Project Plan for Carbon Credit Solutions Inc. Wind Project #1 Offset Project Report for Carbon Credit Solutions Inc. Wind Project #1 Page 13

14 OFFSET PROJECT PLAN for CARBON CREDIT SOLUTIONS INC. WIND PROJECT #1 AUGUST 2010

15 Carbon Credit Solutions Inc OFFSET PROJECT PLAN for CARBON CREDIT SOLUTIONS INC. WIND PROJECT #1 Section Contents Introduction 1. Project Scope and Project Site Description 1.1 Conditions Prior to Project Initiation 1.2 Description of How the Project Will Achieve GHG Emission Reductions 1.3 Project Technologies, Products, Services and the expected level of activity 1.4 Identification of Risks 1.5 Roles and Responsibilities 2. Inventory of Sources and Sinks 3. Identification of Baseline 4. Quantification of Greenhouse Gas Emission Reductions 5. Monitoring Plan 6. Data Information Management System and Data Controls 7. Verification of CCS Wind Project #1 Appendix A Project Site Maps Appendix B Quantification Protocol for Wind-Powered Electricity Generation Offset Project Plan for Carbon Credit Solutions Inc. Wind Project #1 Page 2

16 Carbon Credit Solutions Inc Introduction Carbon Credit Solutions Inc. ( CCS ) uses the Specified Gas Emitters Regulation Quantification Protocol for Wind-Powered Electricity Generation Version 1 March 2008 ( Wind Protocol ) which sets out the requirements for quantification of greenhouse gas ( GHG ) emission reductions associated with a change to generating electricity that would have otherwise been generated by using fossil fuel based sources. Carbon Credit Solutions Inc. Wind Project #1 referred to as the Project. The emission factor 0.65 tonnes of CO2e/MWh was the factor used to quantify GHG reductions as stated in the Alberta Offset Guidance Document (version 1.2 February 2008). CCS has conformed to all relevant requirements of the GHG programme including the guidelines of the legislation that has been approved. For Alberta sales involving Large Final Emitters registered in the Province of Alberta, CCS has ensured compliance with the regulations of Bill C Climate Change and Emissions Management Act (Alberta) proclaimed in March of CCS has ensured the CAN/CSA-ISO requirements have been adhered to. CCS has fulfilled the requirements and have identified, considered and used relevant current good practice guidance as set out in the guidance document. CCS has hired ICF International as the independent third party verification team to review the CCS Project. CCS did not deviate from these guidance procedures. Offset Project Plan for Carbon Credit Solutions Inc. Wind Project #1 Page 3

17 Carbon Credit Solutions Inc Project Scope and Project Site Description Project Title: Carbon Credit Solutions Inc. Wind Project #1 referred to as the Project. The project s purpose(s) and objective(s) are: The Project consists of the aggregation of greenhouse gas ("GHG") emission reductions generated from the through the change in electricity generation by wind power verses fossil fuel based sources. Carbon Credit Solutions Inc. referred to as CCS acts as an aggregator, has collected GHG emission reductions created by wind turbines in order to provide sufficient quantities of GHG emission reductions as required by interested buyers. These GHG emission reductions have been generated in accordance with the Specified Gas Emitters Regulation Quantification Protocol for Wind-Powered Electricity Generation Version 1 March 2008 ( Wind Protocol ), attached as Appendix B. The Project consists of three facilities located in the Province of Alberta. Date when the project began: The Project start dates for the projects being aggregated are: Lundbreck Developments Ltd. referred to as Facility #1 February 1, REIDCO Power Corp referred to as Facility #2 June 1, Lagerway Wind Project referred to as Facility #3 June 1, The greenhouse gas reductions from all turbines are a result of actions taken after January 1, The greenhouse gas reductions end date is December 31, Credit duration period The credit duration period is, as defined by the Alberta Offset Guidance Document, eight years with a possible extension of five years as noted below. No Renewable Energy Certificates or 'green tags' we're included in the quantification of GHG offsets in the Project. The VERRS identified in the project per year are only posted and listed once. Facility Credit Duration Period Lundbreck Developments Ltd. (Facility #1) February 1, REIDCO Power Corp (Facility #2) June 1, Lagerway Wind Project (Facility #3) June 1, Type of greenhouse gas emission reduction or removal project CCS complies with the Specified Gas Emitters Regulation Quantification Protocol for Wind-Powered Electricity Generation Version 1 March 2008 ( Wind Protocol ) which sets out the requirements for quantification of greenhouse gas ( GHG ) emission reductions associated with a change to generating electricity by wind that would have otherwise been generated by using fossil fuel based sources. The Project has been completed in accordance with the Alberta Offset Credit Project Guidance Document (AENV, 2008 version 1.2). Offset Project Plan for Carbon Credit Solutions Inc. Wind Project #1 Page 4

18 Carbon Credit Solutions Inc Legal land description of the project or the unique latitude and longitude The wind power facilities included within the Project will be an accumulation of operations located entirely within the Province of Alberta. The location of the wind powered facilities and project site maps are provided in Appendix A. The three wind facilities are located within the province of Alberta as follows: Facility #1 Lundbreck Developments Ltd. The project site is located in the municipal district of Pincher Creek on Lot 1, Block 1, Plan The ATS reference is SW See the project site maps in appendix A. Facility #2 REIDCO Power Corp is located in the municipal district of Pincher Creek on SE See the project site maps in appendix A. Facility #3 Lagerway Wind Project is located in the municipal district of Pincher Creek SE See the project site maps in appendix A. Ownership of the greenhouse gas emission reductions has been established through current land title certificates and lease agreements. Reporting and verification details The quantity of electricity produced from each turbine has been metered by AESO and TransAlta at meters downstream prior to entry in the transmission grid. The GHG emission reductions will be verified by a third party verifier according to the Offset Credit Verification Guidance Document (2007 Version 1.0) provided by AENV. CCS will an independent third party verification team to review the Project. The independent third party verifier will meet the requirements as outlined in SGER and will inspected the monthly production statements to ensure the information was accurately entered into the CCS data management system. The scope of verification will be limited to emission reductions and removals associated with a change to generating electricity by wind that would have otherwise been generated by using fossil fuel based sources by landowners who have contracted with Carbon Credit Solutions Inc. to claim greenhouse gas reductions. The verification process adheres to the international standard CAN/CSA-ISO Part 3 Greenhouse Gases: Specification with guidance for the validation and verification of greenhouse gas assertions. Project activity The assembly of wind turbines used for generated electricity is entirely voluntary in a non-regulated sector operation. The project meets the requirements under the Wind Protocol and generates offsets as a result of an action that is not required by law. Offset Project Plan for Carbon Credit Solutions Inc. Wind Project #1 Page 5

19 Carbon Credit Solutions Inc Other As outlined within the Wind Protocol document, each wind facility within the Project meets the protocol applicability and can supply evidence to prove: a. Metering of net electricity production is made downstream before entering the transmission grid.. There are no electricity storage systems at any of the facilities. b. Quantification of reductions in this project are based on actual measurement and monitoring as indicated in the Wind Protocol; c. Meets the requirements for offset eligibility as specified in the applicable regulation and guidance documents for the Alberta Offset System. Of particular note: i. Ownership of the greenhouse gas emission reductions has been established as per ownership and lease agreements. The Project meets the requirements of SGER, and the quantification methodology used has not deviated from the methodology outlined within the Wind Protocol. Backup documentation indicating that the Project meets the above requirements is contained within the client files. 1.1 Conditions prior to Project Initiation The baseline condition for the facilities included in this project is the generation of an equivalent amount of eletricity from other facilities including coal fired plants. There are no electricity storage systems at any of the project sites. 1.2 Description of How the Project Will Achieve GHG Emission Reductions The baseline used in this project is defined as the change in electricity generation by wind power verses fossil fuel based sources. GHG emission reductions and removals are achieved through the generation of wind powered electricity. To prove that the GHG emission reductions are real, demonstrable, and quantifiable CCS can supply sufficient evidence to demonstrate that: The metering of net electricity productions has been made a point downstream prior to entering the grid; Actual measurements and monitoring has been collected and reviewed to confirm the reductions achieved; and The Project has met the requirements for offset eligibility as specified in the applicable regulation and guidance documents for the Alberta Offset System. 1.3 Project Technologies, Products, Services and the expected level of activity The wind power facilities included within the Project consists of the following: Offset Project Plan for Carbon Credit Solutions Inc. Wind Project #1 Page 6

20 Carbon Credit Solutions Inc Facility #1 contains 1 turbine (Enercon E40/600), blade diameter of 22 meters, 600 kw of total power, 2157m 2 total wing surface, power density of 2.09m 2 /kw, 3 wings, 46 meter tower height, 33 RPM maximum, and 25 KVA overhead transmission line connecting the turbine directly to a FORTIS ulitity line. Facility #2 contains 1 turbine (Enercon E48/800), rotor diameter of 48 meters, 800 kw of total power, 1810m 2 total wing surface, power density of 2.3m 2 /kw, 3 wings, 50 meter tower height, 31 RPM maximum, and 25 KVA overhead transmission line connecting the turbine directly to a FORTIS ulitity line. Facility #3 contains 1 turbine (Lagerway 52), rotor diameter of 51.5 meters, 750 kw of total power, 3 wings, 33 meter tower height, 27 RPM maximum, and 25 KVA overhead transmission line connecting the turbine directly to a directly to a FORTIS utility line. 1.4 Identification of Risks While risk is inherent in every protocol and every process, CCS has developed a data collection and process review to try to mitigate as much risk as possible. Our staff and agents are trained to ensure the highest level of attention is put into each and every file and all data collected. CCS has developed a process to mitigate risk factors that includes its own software program with the coefficients built into the process. Participants supply digital or hard copy data to our team of data input staff. All information is gathered by CCS to ensure the highest level of assurance can be reached. It includes the collection of hourly or monthly power production records, power consumption records, maintenance records and documents that clearly establish ownership of the offsets. Utilizing power production and consumption reports entities such as Trans-Alta, EPCOR and AESO limits the potential for fraudulent or erroneous power production reports. 1.5 Roles and Responsibilities Project Developer Contact Information Carbon Credit Solutions Inc. Vanessa Weitz Project Administrator Suite Main Street N.E. Airdrie, Alberta Canada Phone: (403) Fax: (403) vanessa@carboncreditsolutions.ca Alastair Handley Vice President Suite Main Street N.E. Airdrie, Alberta Canada (403) Phone: (403) Fax: (403) alastair@carboncreditsolutions.ca Authorized Project Contact Not Applicable Offset Project Plan for Carbon Credit Solutions Inc. Wind Project #1 Page 7

21 Carbon Credit Solutions Inc Inventory of Sources and Sinks The criteria used in the identification of sources and sinks and the quantification methodologies for the Project has been determined within the guidelines of the Wind Protocol. As outlined within the Wind Protocol document, each wind facility within the Project: a. Metering of net electricity production is made downstream before being transmitted to the transmission grid by Alberta Electric System Operator and TransAlta. There is no electricity storage system. b. Quantification of reductions in this project are based on actual measurement and monitoring as indicated in the Wind Protocol; c. must meet the requirements for offset eligibility as specified in the applicable regulation and guidance documents for the Alberta Offset System. Of particular note: i. ownership of the greenhouse gas emission reductions has been established as per ownership and lease agreements. This Project meets the requirements outlined above, and the quantification methodology used has not deviated from the methodology outlined within the Wind Protocol. Backup documentation indicating that the Project meets the above requirements is contained within the client files. The sources and sinks (SS s) were identified for the Project by carefully reviewing the Wind Protocol and relevant process flow diagrams found within the Wind Protocol. This process was confirmed through the review of the Project activities followed within wind powered facility. As per Table 2.1 in the Wind Protocol, please see a listing of the sources and sinks is below Table 1. Our project did not deviate from the protocol and it included and quantified the source the sinks as listed below. Table 1 1. SS 2. Description Upstream SS's during Project Operation P3 Fuel Extraction and Processing P4 Fuel Delivery Each of the fuels used throughout the on-site component of the project will need to 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. Onsite SS's during Project Operation P1 Facility Operation Greenhouse gas emissions may occur that are associated with the operation and maintenance of the overall generation facility. This may include running vehicles and operating buildings on the site. Quantities and types of the fuels used would need to be tracked. 3. Controlled, Related or Affected Related Related Controlled Offset Project Plan for Carbon Credit Solutions Inc. Wind Project #1 Page 8

22 Carbon Credit Solutions Inc P2 Electricity Storage Systems Electricity storage systems may be included at the project site as a means of balancing power generation relative to demand. These systems will have emissions associated with their development, installation and maintenance. Downstream SS's during Baseline Operations Other P5 Development of Site P6 Building Equipment P7 Transportation of Equipment P8 Construction on Site P9 Transmission Infrastructure Development P10 Testing of Equipment P11 Site Decommissioning None The site may need to be developed. This could include civil infrastructure such as access to electricity, 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, and system control and safety systems. These may be sourced as premade 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 train, truck, by some combination, or even by courier. 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 electricity. Electricity transmission infrastructure will need to be developed and installed in order to transmit power from the generating station to the grid. The installation of this equipment will have associated greenhouse gas emissions as a result of the use of fossil fuels to power the installation equipment and land clearing activities. Equipment may need to be tested to ensure that it is operational. This may result in running the equipment using 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. Controlled Related Related Related Related Related Related Related Offset Project Plan for Carbon Credit Solutions Inc. Wind Project #1 Page 9

23 Carbon Credit Solutions Inc Identification of Baseline The quantity of electricity generated fluctuates; therefore the baseline scenario for this project is dynamic. Baseline scenario for this Project is dynamic. The baseline used in this project is defined as the change in electricity generation by wind power verses fossil fuel based sources. The baseline condition for this project is the generation of an equivalent amount of electricity from other facilities including coal fired plants. The baseline condition for the Project taken from the Wind Protocol. The Project uses the relevant SS's and processes from figure 1.2 in the Wind Protocol, shown in Figure 1.0 below. FIGURE 1.0 : Process Flow Diagram for Baseline Condition B1 Electricity Generation The SS's within this Project are outlined below and categorized by life cycle, in Figure 2 which is found on page 10 of the Wind Protocol. Table 2 below contains the descriptions and classifications of the SS's in Figure 2, from page 11 of the Wind Protocol. Figure 2 Baseline Element Life Cycle Chart Upstream SS's During Baseline B1 Electricity Generation Upstream SS's Before On Site SS's During Baseline Baseline Downstream SS's After Baseline Offset Project Plan for Carbon Credit Solutions Inc. Wind Project #1 Page 10

24 Carbon Credit Solutions Inc Downstream SS's During Baseline Table 2: Baseline SS's 1. SS 2. Description 3. Controlled, Related or Affected Upstream SS's during Baseline Operation B1 Electricity Generation B1 Electricity Generation Controlled Electricity will be produced off-site to match the electricity being produced by the wind-powered electricity generation facility. This electricity will be produced at an emission s intensity as deemed appropriate by the Alberta Environment. Measurement of the net quantity of electricity produced by the facility will need to be tracked to quantify this SS. Measurement must occur downstream of any electricity storage and transmission systems at the point where the electricity is tied into the electricity grid to account for on-site losses and parasitic loads. The gross quantity of electricity produced should be net of any electricity sold as Renewable Energy Credits (RECs) as discussed in section 1. Onsite SS's during Baseline Operation None Downstream SS's during Baseline Operation None Other None 4. Quantification of Greenhouse Gas Emission Reductions Quantification of the reductions, removals and reversals of relevant SS s for each of the greenhouse gases has been used the methodologies outlined Table 3, below as per emissions factors listed in the Wind Protocol page 14. For calculating the emission reductions from the comparison of the baseline and Project conditions, these calculation methodologies serve to complete the following three equations. The calculations and emissions factors below in Table 3 have been used in this project. Table 3 Emission Reduction = Emissions Baseline Emissions Project Emissions Baseline = Emissions Electricity Generation Emissions Project = Emissions Facility Operation + Emissions Electricity Storage Systems + Emissions Fuel Extraction and Processing Where: Emissions Baseline = sum of the emissions under the baseline condition. Emissions Electricity Generation = emissions under SS s B1 Electricity Generation Offset Project Plan for Carbon Credit Solutions Inc. Wind Project #1 Page 11

25 Carbon Credit Solutions Inc Emissions Project = sum of the emissions under the Project condition. Emissions Facility Operation = emissions under SS P1 Facility Operation Emissions Electricity Storage Systems = emissions under SS P2 Electricity Storage Systems Emissions Fuel Extraction and Processing = emissions under SS P3 Fuel Extraction and Processing CCS has collected information from each participant regarding the volume of GHG sources, sinks and reservoirs relevant to the activity and relevant to the baseline scenarios. Project emissions can occur if power is used by a facility in order to maintain the facility or generate power. Two sources of emissions have been identified on the facilities included in this project. These sources include emissions from vehicles used to perform maintenance on the turbines and electrical power consumption used to keep the facilities running. Emissions Related to Consumption of Electricity Emissions from electricity usage are not relevant to the project as these emissions are covered under existing GHG regulations. Emissions Related to Maintenance Emissions related to the fuel consumed for the maintenance of the three facilities is relevant to this project and must be accounted for. Records for maintenance visits to all three projects exist and emissions resulting from these visits were calculated and accounted for in the project. 4.2 Data Sources Within each participant file, the source information is provided and checked for accuracy. Within the Wind Protocol data quality management requires sufficient data capture such as the mass and energy balances that provide for minimal assumptions and use of contingency procedures. The data must be of sufficient quality to fulfil the quantification requirements and be substantiated by company records for the purpose of verification. Written procedures were established for each measurement and documentation assurance factors. The requirements for CCS purposes were developed and required to satisfy the participation of each participant. For the purposes of this Project, the quantity of electricity produced is calculated using monthly production statements at the meter downstream prior entry in the transmission grid. 5. Monitoring Plan The sources and sinks (SS s) were identified for the Project by carefully reviewing the Wind Protocol and relevant process flow diagrams found within the Wind Protocol. This process was confirmed through the review of the Project activities followed by each participant. As per the Wind Protocol please see a listing of the sources and sinks is below as taken from Table 2.4 in the Wind Protocol. Our project did not deviate from the protocol and it included and quantified the source the sinks as listed below. Offset Project Plan for Carbon Credit Solutions Inc. Wind Project #1 Page 12

26 Carbon Credit Solutions Inc Table 2.3: Comparison of SS's 1. Identified SS 2. Baseline (C, R, A) 3. Project (C, R, A) 4. Include or Exclude from Quantification 5. Justification for Exclusion Upstream SS s B1 Electricity Controlled N/A Include N/A Generation P3 Fuel Extraction N/A Related Include N/A and Processing P4 Fuel Delivery N/A Related Exclude Excluded as the emissions from transportation are negligible and likely greater under the baseline condition. Onsite SS s P1 Facility Operation N/A Controlled Include N/A P2 Electricity N/A Controlled Include N/A Storage Systems Downstream SS s None Other P5 Development of Site P6 Building Equipment P7 Transportation of Equipment P8 Construction on Site P9 Transmission Infrastructure Development P10 Testing of Equipment P11 Site Decommissioning N/A Related Exclude Emissions from site development are not material given the long project life, and the minimal site development typically required. N/A Related Exclude Emissions from building equipment are not material given the long project life, and the minimal building equipment typically required. N/A Related Exclude Emissions from transportation of equipment are not material given the long project life, and the minimal transportation of equipment typically required. N/A Related Exclude Emissions from construction on site are not material given the long project life, and the minimal construction on site typically required. N/A Related Exclude Emissions from transmission infrastructure development are not material given the long project life, and the minimal transmission infrastructure development typically required. N/A Related Exclude Emissions from testing of equipment are not material given the long project life, and the minimal testing of equipment typically required. N/A Related Exclude Emissions from decommissioning are not material given the long project life, and the minimal decommissioning typically required. Offset Project Plan for Carbon Credit Solutions Inc. Wind Project #1 Page 13

27 Carbon Credit Solutions Inc The CCS monitoring and quality assurance/quality control (QA/QC) methodology is incorporated within the CCS software program and is described in greater detail below. QA/QC are applied to provide confidence that all the measurements and calculations have been made and entered correctly. It includes using a software program that has internal checks and balances to safeguard against human error and data entry mistakes. It protects the records of the data in off-site dedicated servers. Members of the data input team regularly check each others work to ensure data integrity and to ensure against typing errors and data entry problems. CCS provides sufficient training to data input teams to ensure proper use of the equipment and software. CCS provides on-going training and supervision to ensure the establishment of minimum experience and requirement guidelines for its staff. Regular recalculations are made to ensure no mathematical errors have been made. The client provides his/her monthly production statements indicating the quantity of electricity produced at the meter downstream prior entry in the transmission grid and power consumption statements. These data are entered into CCS s data management system by CCS staff. After data entry is complete, the clients file goes through a thorough review at the project administration level. When this review is complete, the client file is locked down and ready for audit. Ownership of the offsets from these projects is determined from land title certificates and lease agreements, where applicable. 6. Data Information Management System and Data Controls The data collection methodology has been developed to ensure accuracy throughout the process. The data is entered into a database software program specifically developed for CCS. To eliminate any issues around double counting, no Renewable Energy Certificates or 'green tags' we're included in the quantification of GHG offsets in the project. While the owners of the turbines have expressed an interest in REC s none have been sold by these individuals. To initiate participation in our program for each wind-powered facility, a CCS staff member conducts an initial information meeting and interview with the owner/operator. During this initial meeting, the CCS staff member will discuss the process and ascertain whether the particular wind-powered facility will qualify using the definitions and guidelines provided in the Wind Protocol. Ownership of the windpowered facility and lands will be discussed, as well as our contract. The CCS staff member provides the client with a list of information that he/she must provide and have available to participate in our program. The contract will be provided to the verifier and government individuals upon request. The CCS data input team member collects monthly production data from the participant, ownership information and the details of each projects turbines. The CCS data input team member collects pertinent information from the client to provide assurance backup documentation which is stored on the client file and kept in the CCS offices. Once the data has been entered into the system and locked down, none of the CCS staff is authorized to tamper with or change any information. The system administrator is the only person authorized to make changes and any changes are recorded qualifying why system information was changed. After data entry is complete, the clients file goes through a review at the project administration level. The project administrator reviews each vintage year of the data, as well as thoroughly reviews each ownership document. When this review is complete, the client file is locked down and ready for audit. Offset Project Plan for Carbon Credit Solutions Inc. Wind Project #1 Page 14

28 Carbon Credit Solutions Inc The server has an array of redundant hard drives to ensure that the data will not be lost if a hard drive fails. In addition the application database is backed up and stored on another computer on a regular basis. The formulas and coefficients are entered into the system using a series of fields, reporting programs and codes. This information is tested using sample data and manually reviewed to ensure accuracy within the calculation process. The mathematical formulas are also manually reviewed to ensure the same level of accuracy. The decimal system is set to a level of one then thousandth to ensure the most accurate process and to handle any rounding issues that may occur during the calculation of the formulas and coefficients. This information is again checked by the accounting team and the verification experts to provide confirmation of the accuracy of the programming. The data monitoring and quantification methodology utilized by CCS was developed to address the following potential sources of errors: a. Inaccurate details from wind-powered facility operators; b. Transcription error during data input into the data base; c. Duplicate entries; d. Changes to data in the system after it has been entered; and e. Calculation error due to database programming. The entire CCS Quantification process is outlined from start to finish in Table 4 below. Table 4 Data Entry Staff pull Land Titles Data Entry Staff enters Production data into database Data reviewed in office and locked down Data is reviewed at office and locked down Third Party Verifier reviews all data Participant provides Participant Monthly production provides Tax Assessments reports and as proof ownership of ownership info Data Entry Staff meets with Participant Agent receives signed contract from participant Carbon Credit Solutions Inc. Business Process for Aggregation of Wind Projects Third Party Verifier reviews all data Offsets are created and registered with CCC Buyer purchases serialized offsets Payment reports are created Agent meets with participant Cheque sent to Participants Offset Project Plan for Carbon Credit Solutions Inc. Wind Project #1 Page 15

29 Carbon Credit Solutions Inc Verification of CCS Wind Project #1 The CCS GHG Report for Wind Project #1 has been provided to the independent third party verifier team chosen by CCS to conduct the verification. The verification process will adhere to the international standard CAN/CSA-ISO Part 3 Greenhouse Gases: Specification with guidance for the validation and verification of greenhouse gas assertions. The time period to be covered in the initial verification audit will be from facility start dates to December 31, Subsequent verification audits will occur on a yearly basis examining the previous year s data. The verification process has been used to ensure we have: enhanced our integrity through the GHG quantification; provided credibility, consistency and transparency; facilitated in the development and implementation of the GHG management strategies and plans; provided assurance in the development and implementation of our Project; developed strong materiality in the development and implementation of our Project; ensured competence and transparency in tracking performance and progress of our Project; provided solutions and identified the GHG risks or liabilities, if any; presented sufficient strength to ensure investor confidence; and provided clarity and conservativeness in the crediting and trading of the CCS developed GHG emission reductions. Carbon Credit Solutions Inc. has chosen ICF International to complete the verification for the Project. ICF International uses the Alberta Specified Gas Emitters Regulated system and ISO 14064;3 for compliant verification services and meets the requirements of the regulated facility. ICF International will verify that the Carbon Credit Solutions Inc. Wind Project #1 is: substantiated by sufficient and appropriate evidence, and; meets the criteria of the Specified Gas Emitters Regulation Quantification Protocol for Wind-Powered Electricity Generation Version 1 March A Verification Report will be issued to Carbon Credit Solutions Inc. for inclusion in their greenhouse gas emission reductions submission to Alberta Environment. Carbon Credit Solutions Inc. will correct any errors, omissions or misrepresentations identified during the course of the verification. The GHG reductions or removals (in tonnes CO2e) were calculated, including clearly identifying all inputs, emission factors, equations and methods using the Specified Gas Emitters Regulation Quantification Protocol for Wind-Powered Electricity Generation Version 1 March 2008 using their inputs, tables, emission factors, equations and methods as outlined within Section 4 Quantification of Greenhouse Gas Emission Reductions. ICF International verification criteria are described in the Verification and Sampling Plan. Offset Project Plan for Carbon Credit Solutions Inc. Wind Project #1 Page 16

30 Carbon Credit Solutions Inc The GHG Report for CCS Wind Project #1, sets out the levels of assurance as prescribed by the Specified Gas Emitters Regulation Offset Credit Project Guidance Document February 2008 Version 1.2. They include: The highest level of assurance is known as an audit or reasonable level of assurance. This is also known as positive assurance because the opinion is a direct factual statement expressing the opinion of the assurance practitioner. The middle level is known as review or limited level of assurance. This is also known as negative assurance because the opinion is based on the identification of anomalies rather than the confirmation of the assertion. Typically, this is worded Based on our review, nothing has come to our attention that causes us to believe that the GHG statement is not, in all material respects, in accordance with the approved quantification protocols. The lowest level of assurance is a no assurance engagement. The most common example is a compilation engagement, such as hiring a person to prepare a tax return, which is not considered to be an assurance engagement because the verifier cannot express an opinion on their work. The level of effort and cost required to complete a verification increases with the level of assurance. Alberta Environment has requested that at a minimum that a review level of assurance be provided for the GHG emission reductions submissions. Given that all of the participants have provided an assurance document to support their GHG emission reductions and ownership is determined from land title certificates and lease agreements, where applicable, it is believed the Auditor will be able to offer a limited level of assurance, depending on the results of the audit. The greenhouse gas emission reductions achieved as a result of this Project will be claimed on an annual basis and quantified in accordance with the calculation methodology described in the Specified Gas Emitters Regulation Quantification Protocol for Wind-Powered Electricity Generation Version 1 March The greenhouse gas emission reductions have been verified by a third party verifier according to the Offset Credit Verification Guidance Document (2007 Version 1.0) provided by AENV. Offset Project Plan for Carbon Credit Solutions Inc. Wind Project #1 Page 17

31 Carbon Credit Solutions Inc Appendix A Project Site Maps Facility 1 - Lundbreck Development Offset Project Plan for Carbon Credit Solutions Inc. Wind Project #1 Page 18

32 Carbon Credit Solutions Inc Facility 2 - Lagerway Offset Project Plan for Carbon Credit Solutions Inc. Wind Project #1 Page 19

33 Carbon Credit Solutions Inc Facility 3 - REIDCO Power Corp. Picture #1 Offset Project Plan for Carbon Credit Solutions Inc. Wind Project #1 Page 20

34 Carbon Credit Solutions Inc Facility 3 - REIDCO Power Corp. Picture #2 Offset Project Plan for Carbon Credit Solutions Inc. Wind Project #1 Page 21

35 Carbon Credit Solutions Inc Facility 3 - REIDCO Power Corp. Picture #3 Offset Project Plan for Carbon Credit Solutions Inc. Wind Project #1 Page 22

36 Carbon Credit Solutions Inc Appendix B Quantification Protocol for Wind-Powered Electricity Generation Version 1 March 2008 Offset Project Plan for Carbon Credit Solutions Inc. Wind Project #1 Page 23

37 Wind-Powered Electricity Generation Protocol SPECIFIED GAS EMITTERS REGULATION QUANTIFICATION PROTOCOL FOR WIND-POWERED ELECTRICITY GENERATION MARCH 2008 Version 1