GrowTEC Biogas Offset Project. Grow the Energy Circle Ltd.

Transcription

1 Offset Project Report for: GrowTEC Biogas Offset Project Project Developer: Grow the Energy Circle Ltd. 1 st Reporting Period: August 1, 2015 December 31, 2016 Blue Source Canada ULC June 5, 2017 Version 1.0

2 Contents Contents... ii List of Tables... ii List of Abbreviations... iii 1 Project Scope and Site Description Project Contact Information Project Description Project Implementation and Variances Greenhouse Gas Calculations...7 SS B8 Feedstock Disposal... 8 SS B10 Electricity Production... 9 SS B11 Emissions from thermal energy production... 9 SS P6, P7, P8a, P9b, P12, P15, P16, P18, P19, and P23 Feedstock Processing SS P20 Flaring SS P21 Venting SS P22 Electricity Usage SS P24 Fuel Extraction and Processing Greenhouse Gas Assertion Statement of Senior Review Project Developer Signature Works Cited List of Tables Table 1: Categorical waste feedstock baseline disposal management and handling practices... 7 Table 2: Emission factors used in the Project, (Government of Alberta, March 2015)... 7 Table 3: 2015 GHG assertion, t CO 2e Table 4: 2016 Assertion, t CO 2e Table 5: Greenhouse gas assertion, vintage, t CO 2e ii Page

3 List of Abbreviations Bluesource Blue Source Canada ULC CH 4 Methane CO 2 CO 2e GHG GWP HFC N 2O PFC SF 6 Carbon Dioxide Carbon Dioxide-equivalent Greenhouse gas Global Warming Potential Hydrofluorocarbon(s) Nitrous Oxide Perfluorocarbon(s) Sulphur Hexafluoride iii Page

4 1 Project Scope and Site Description Project Title: GrowTEC Biogas Offset Project, the Project Project Purpose and Direct greenhouse gas emission (GHG) reductions occur from this utilizing Objective(s): livestock manure, animal by-products, and organic food waste residues to produce biogas as a biogenic replacement of natural gas. Biogas produced at the plant is processed through a cogeneration unit to generate renewable electricity distributed to the Alberta grid. The Project displaces grid electricity and the specified greenhouse gases: CO 2, CH 4, and N 2O from the combustion of an equivalent volume of natural gas for thermal energy production. Project Start Date: September 30, 2014 Credit Start Date: August 1, 2015 Credit Duration August 1, 2015 July 31, 2023 Period: Reporting Period: August 1, 2015 December 31, 2016 Expected Lifetime of The Project is a commercial enterprise with no fixed end-date and is expected the Project: to continue for as long as the equipment is operational and commercially Actual Emissions Reductions/Removals Achieved: Applicable Quantification Protocol(s): Protocol(s) Justification: Other Environmental Attributes: Legal Land Description of the Project/Other Unique Site Descriptions: Ownership: viable. This is expected to be well in excess of the credit duration period. Vintage Volume (tco 2e) ,231 Total 3,627 Quantification Protocol for the Anaerobic Decomposition of Agricultural Materials, version 1.0 (Alberta Environment, 2007) The Project activities displace higher intensity electricity with lower intensity electricity produced by processing biogas and supplementary natural gas. The electricity produced by the on-site cogeneration units in this Project have a lower emissions intensity than the emissions intensity for the primarily coalbased Alberta grid. As the activities of the Project are applicable under the Quantification Protocol for the Anaerobic Decomposition of Agricultural Materials, version 1.0 (AENV, 2007) and biogas production is not an industry standard, this project is additional and would not have occurred under business as usual circumstances. The Project is eligible for renewable energy credits (RECs) in Alberta; however, Grow the Energy Circle Ltd or GrowTEC (herein referred to as the Proponent ) will not be creating RECs associated with the production of electricity through their biogas cogeneration plant. The GrowTEC Biogas Power Plant (herein referred to as the Power Plant ) is located 30km east of the City of Lethbridge, Alberta. LSD: SW W4 Latitude: Longitude : The Project is owned and operated by GrowTEC. GrowTEC is the general operating partner for CKPPQ Farms LP, which is a partnership of CKP Farms and Perry Quest. These businesses are all owned and operated by the Perry family. 4 Page

5 Reporting and Verification Details: Project Activity: Other: Emission reductions achieved through this Project will be claimed starting in 2015 with the first reporting period covering August 1, 2015 to December 31, Thereafter, the Proponent is expecting to submit annual reports for the Project. The verifier, Green Sky Sustainability Consulting Inc., Green Sky, is an independent third-party that meets the requirements outlined in the Specified Gas Emitters Regulation (SGER). An acceptable verification standard (e.g. ISO ) was used and the verifier vetted to ensure technical competence with this project type. This is the first verification conducted by Green Sky. 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 (AESRD, 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 activity (i.e. biogas production and cogeneration) occurs at a nonregulated facility and is 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. 5. The project has clearly established ownership: The Proponent is Grow the Energy Circle Ltd. Credits created from the specified reduction activity have not been created, recorded or registered in more than one trading registry for the same time period. The project will be counted once for compliance purposes: The Project credits are 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. The Proponent has received approvals for two deviation requests to claim landfill avoidance for this Project activity as well as to bring forward a project under a flagged protocol. 2 Project Contact Information Project Developer Contact Information Grow the Energy Circle Ltd. (GrowTEC) Christopher Perry President Box 210 Coaldale, Alberta Canada, T1M 1M3 5 Page

6 Phone: (403) Fax: (403) Authorized Project Contact Blue Source Canada, ULC Kelly Parker Engineer t: (403) x260 e: fax: (403) Verification Company Green Sky Sustainability Consulting Inc. Nelson Lee, M.A.Sc., P.Eng., GHG-V t: (778) e: Suite 700, th Avenue SW Calgary, Alberta Canada, T2P 0Z3 Web: Suite 2501, 1166 Melville Street Vancouver, BC V6E 4P5 3 Project Description The Project was commissioned on September 30, The Project consists of an anaerobic digester which utilizes waste organics to produce renewable energy. This energy is produced in the form of waste heat used for the anaerobic digestion process and electricity with surplus being sold to the Alberta grid. The Power Plant is located 30km east of the City of Lethbridge in Coaldale, Alberta. The Project is owned and operated by Grow the Energy Circle Ltd (GrowTEC). The project boundary includes the operation of one reciprocating engine cogeneration unit with an electrical capacity of 633 kw. This engine uses a combination of natural gas and biogas produced from the facility to produce a continuous supply of cleaner power for plant operations and the Alberta grid. The anaerobic digester is capable of processing source separated organics, agricultural waste and other organic residues. 4 Project Implementation and Variances This reporting period, the quantification includes the following baseline sources which were excluded from the Offset Project Plan: 1. SS B11 Thermal Energy Production The offset project plan justified the exclusion of this baseline source as there was no initial design for offsetting thermal energy loads by the project. However, a secondary combined heat and power heat recovery loop was added in the design build of the existing engine to capture waste heat and redirect via glycol and hot water to supplement heating load of the anaerobic digester and storage systems. This onsite supplementation of thermal energy production reduces the energy burden of the facility 2. SS B8 Disposal in Landfill The project received approval to deviate from the required 3-year baseline landfilling documentation. Documented supplier statements were received for all waste included in this baseline source. For the 6 Page

7 reporting period, the project categorized waste feedstock received by type. Table 1 below lists those that have an eligible baseline disposal scenario from which further evaluation was conducted to meet the standards of ACCO s approval for inclusion. Table 1: Categorical waste feedstock baseline disposal management and handling practices Waste Feedstock Disposal Management & Handling Practices Eligibility Livestock manure Land applied No F.O.G. Landfilled Yes Oil seed processing residues Acidulation, Landfilled Yes Spice and grain residues Livestock feed, landfilled Yes Fruit and vegetable residues Burial No Potato residues Landfilled or land applied Yes Process water Holding Ponds No Whey Land applied No Kitchen and market residues landfilled Yes Other: Silage Diluted with clean silage No Below are the following project sources that are additional to those described in the OPP: 1. SS P22 Electricity Usage Electricity usage of the project was originally quantified in the OPP under the on-site, multiple emission source category, P6, P7, P8a, P9b, P12, P15, P16, P18, P19, P23, further abbreviated to P6+. This project period, for clarity and accuracy, emissions from grid electricity consumption required for feedstock processing have been removed from the P6+ on-site source category and instead reported in the upstream source category P22 Electricity Usage. P6+ remains in the quantification of project source emissions for feedstock processing, specifically quantifying the emissions of fossil fuel combustion and biogas combustion. 5 Greenhouse Gas Calculations The following is a detailed description of the equations used for the identified SSs in the quantification of emissions due to CO 2, CH 4, and N 2O for the Project. Reference sources for the emission factors used in the equations below are listed in Table 2. Table 2: Emission factors used in the Project, (Government of Alberta, March 2015) Emission Description Emission Units Source Factor B10 Electricity grid displacement with renewable energy generation 0.59 Tonnes CO 2e/MWh B11 Natural gas combustion, Carbon dioxide Tonnes CO 2/ e 3 m 3 B11, P6+ Natural gas (and biogas) combustion, Methane tonnesch 4/ e 3 m 3 B11, P6+, P20 Natural gas (and biogas) combustion, Nitrous oxide Tonnes N 2O/ e 3 m 3 P6+ Diesel combustion, Carbon dioxide Tonnes Co 2/litre 7 Page

8 Emission Description Emission Units Source Factor P6+ Diesel Combustion, Methane Tonnes CH 4/litre P6+ Diesel combustion, Nitrous oxide Tonnes N 2O/litre P22 Increased on-site grid electricity usage 0.64 Tonnes CO 2e/MWh P24 Natural gas extraction and processing emissions, Carbon Dioxide Tonnes CO 2/e 3 m 3 P24 Natural gas extraction and processing emissions, Tonnes CH 4/ methane e 3 m 3 P24 Natural gas extraction and processing emissions, Tonnes N 2O/ Nitrous oxide e 3 m 3 P24 Diesel Production, Carbon dioxide Tonnes CO 2/litre P24 Diesel Production, Methane Tonnes CH 4/litre P24 Diesel Production, Nitrous oxide Tonnes N 2O/litre Emission Reduction = Emissions Baseline Emissions Project Emissions Baseline = sum of the emissions under the baseline condition. (i) Emissions Feedstock Disposal = emissions under SS B8 (ii) Emissions Electricity = emissions under SS B10 (iii) Emissions Thermal Energy = emissions under SS B11 Emissions Project = sum of the emissions under the project condition. (iv) Emissions Multiple Sources = emissions under SS P6, P7, P8a, P9b, P12, P15, P16, P18, P19 and P23 (feedstock processing) (v) Emissions Flaring = emissions under SS P20 (vi) Emissions Venting = emissions under SS P21 (vii) Emissions Electricity Usage = emissions under SS P22 (viii) Emissions Fuel Extraction and Processing = emissions under SS P24 SS B8 Feedstock Disposal 40 Emissions of CH 4 = [k W C L O e k(x 1) (1 R) (1 OX) x=1 k (yr -1 ) = methane generation constant; the methane generation constant was calculated using the equation provided in the Handbook, k = PCPN +.01 PCPN = precipitation experienced at landfill location, this would equal mm over the Canadian climate normal station data for Lethbridge A. 8 Page

9 W C (wet weight, tonnes) = amount of eligible waste diverted from disposal in current year; Total eligible waste diverted from landfill from August 1, 2015 December 31, 2015 was tonnes. In 2016, 2, tonnes of eligible waste was diverted. L O = methane generation potential (tch 4 / tonne waste), t CH 4 per tonne of waste generated from landfills with a comprehensive waste diversion program in place.; R = methane captured and destroyed (fraction), no methane recovery at landfill; OX = oxidation of methane in cover material (fraction), 10%; x = iterative emissions in year 1 to 40 from a given mass of waste. SS B10 Electricity Production Emissions of CO 2 = PBG x EF Elec PBG EF Elec (t CO 2e/MWh) = Net electricity distributed to the grid produced from biogas, MWh; = Intensity factor for grid electricity displacement. PBG = EtoGrid %B, MWh; EtoGrid = Net electricity distributed to the grid by the cogeneration unit, (2015 = 1, MWh, 2016 = 3, MWh) %B = portion of electricity produced by biogas combustion, %, (2015 average = 86%, 2016 average = 97%) And, %B = EPROD 3.6 GJ/MWh NGT ηcogen EPROD 3.6 GJ/MWh ηcogen Eprod = electricity production by the cogeneration unit, GJ (2015 = 1, MWh, 2016 = 4, MWh) η Cogen = Cogeneration unit system efficiency, 35%; NGT = Volume of natural gas combusted in cogeneration unit, (2015 = 1,734 GJ, 2016 = 832 GJ) SS B11 Emissions from thermal energy production MWh 3.6 GJ/MWh Emissions of CO 2 = HHV NG Emissions of CH 4 = Emissions of N 2 O = MWh 3.6 GJ/MWh HHV NG MWh 3.6 GJ/MWh HHV NG x EF NG CO2 x EF NG CH4 x EF NG N2 O 9 Page

10 MWh = Metered energy input to the glycol loop system HHV NG (MJ/m 3 ) = Higher heating value of natural gas; EF NG-CO2/EF NG-CH4/EF NG-N2O (tonnes/m 3 ) = CO 2, CH 4, and N 2O emission factors for natural gas combustion SS P6, P7, P8a, P9b, P12, P15, P16, P18, P19, and P23 Feedstock Processing Emissions of CO 2 = Fuel NG x EF NG CO2 + Grid Consume x EF CElect + Fuel Diesel x EF D CO2 + Fuel Diesel x EF DP CO2 Emissions of CH 4 = Fuel NG x EF NG CH4 + Fuel Biogas x EF B CH4 + Fuel Diesel x EF D CH4 + Fuel Diesel x EF DP CH4 Emissions of N 2 O = Fuel NG x EF NG N2 O + Fuel Biogas x EF B N2 O + Fuel Diesel x EF D N2 O + Fuel Diesel x EF DP N2 O EF NG-CO2/EF NG-CH4/EF NG-N2O (tonnes/e 3 m 3 ) = Emission factors for the combustion of natural gas; EF D-CO2/EF D-CH4/EF D-N2O (tonnes/litre) = Emission factors for the combustion of diesel; EF DP-CO2/EF DP-CH4/EF DP-N2O (tonnes/litre) = Emission factors for the production of diesel; EF B-CH4/EF B-N2O (tonnes/e 3 m 3 ) = Emission factors for the combustion of biogas; Fuel NG (e 3 m 3 ) = Volume of natural gas consumed for building heat; Fuel Diesel (litres) = Volume of diesel combusted on site; Fuel Biogas (e 3 m 3 ) = Volume of biogas combusted in cogeneration unit; SS P20 Flaring Emissions of CH 4 = Flare Biogas x %CH 4 x NEF CH4 Emissions of N 2 O = Flare Biogas x NEF N2 O Flare Biogas (e 3 m 3 ) = Volume of biogas flared during upset conditions through the emergency flare stack; As emission factors for CH 4 and N 2O not available for biogas, the emission factor of natural gas combustion is represented; therefore, as the biogas is approximately 60% in CH 4 composition which is less than the CH 4 component in processed natural gas, the emission factor used in the above equation is multiplied by the %CH 4 in the biogas to correct for this discrepancy. Please note that CO 2 emissions from flaring biogas are biogenic are therefore are not included in the quantification. 10 Page

11 SS P21 Venting Emissions of CH 4 = ( Flow Biogas x Time Venting ) x %CH 4 Flow Biogas Time Venting %CH 4 = Flow rate of biogas at steady state 1, m 3 /hr; = Time that vessel(s) is venting, hours; = Methane composition in biogas; SS P22 Electricity Usage Emissions of CO 2 e = Grid Consume x EF CElect Grid Consume (kwh) = Electricity consumption by auxiliary equipment on site EF CElect (t CO 2e/MWh) = Emission factor for the consumption of grid electricity; SS P24 Fuel Extraction and Processing Emissions of CO 2 = Fuel NG x EF NGEP CO2 Emissions of CH 4 = Fuel NG x EF NGEP CH4 Emissions of N 2 O = Fuel NG x EF NGEP N2 O EF NGEP-CO2/EF NGEP-CH4/EF NGEP-N2O = Emission factors for the extraction and processing of natural gas, tonnes/e 3 m 3 ) FuelNG = Volume of Natural Gas consumed for building heat, e 3 m 3 1 Maximum flow rate for upset condition is 250 m 3 /hr 11 Page

12 6 Greenhouse Gas Assertion Table 3: 2015 GHG assertion, t CO2e Baseline Emissions CO 2 CH 4 N 2O PFCs HFCs SF6 CO 2e TOTAL SS B8 Feedstock Disposal B11 Thermal Energy B10 Electricity Displacement ALL Project Emissions CO 2 CH 4 N 2O PFCs HFCs SF6 CO 2e TOTAL P6+ Processing Emissions P20 Biogas Flared biogenic P21 Biogas Vented P22 Electricity Usage SS P24 Fuel E&P ALL Emissions Offset Credits Created CO 2 CH 4 N 2O PFCs HFCs SF6 CO 2e TOTAL Page

13 Table 4: 2016 Assertion, t CO2e Baseline Emissions CO 2 CH 4 N 2O PFCs HFCs SF6 CO 2e TOTAL SS B8 Feedstock Disposal - 1, , B11 Thermal Energy B10 Electricity Displacement , , ALL , , , Project Emissions CO 2 CH 4 N 2O PFCs HFCs SF6 CO 2e TOTAL SS P6+ Processing Emissions P20 Biogas Flared biogenic P21 Biogas Vented P22 Electricity Usage P24 Fuel E&P ALL , Emissions Offset Credits Created CO 2 CH 4 N 2O PFCs HFCs SF6 CO 2e TOTAL , Table 5: Greenhouse gas assertion, vintage, t CO2e Emissions Offset Credits Created CO 2 CH 4 N 2O PFCs HFCs SF6 CO 2e TOTAL , , , Page

14 7 Statement of Senior Review This offset project report was prepared by Kelly Parker, Engineer, Bluesource Canada and senior reviewed by Tooraj Moulai, Senior Engineer, Bluesource Canada. Although care has been taken in preparing this document, it cannot be guaranteed to be free of errors or omissions. Prepared by: Senior reviewed by: Kelly Parker Tooraj Moulai 6/05/2017 June 5, Page

15 8 Project Developer Signature I am a 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 Greenhouse Gas 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 deregistration of credits 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 day June, Project Title: Project Developer: GrowTEC Biogas Offset Project Grow the Energy Circle Ltd. Signature: Date: June 5, 2017 Name: Christopher Perry Title: President 15 Page

16 9 Works Cited Alberta Environment. (2007). Quantification Protocol for the Anaerobic Digestion of Agricultural materials, version 1.0. Government of Alberta. (March 2015). Carbon Offset Emission Factors Handbook. Edmonton: Alberta Environment and Sustainable Resource Development. 16 Page