Ministry of Environment Climate Action Secretariat Emission Offset Project Report Template Version 2.1 December 2017

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1 Ministry of Environment Climate Action Secretariat Emission Offset Project Report Template Version 2.1 December 2017 Emission Offset Project Report Title: Project Title: Project Proponent: Intended User of Document: Document prepared by: Landfill Gas Collection, Transmission, and/or Flaring System for the Salmon Arm Landfill, Ver.2.2, April 30, 2018 Landfill Gas Collection, Transmission, and/or Flaring System for the Salmon Arm Landfill Columbia Shuswap Regional District This report has been prepared for the Director under the Act. Ben Van Nostrand, Team Leader Environmental Health Services, Columbia Shuswap Regional District 555 Harbourfront Drive NE, Box 978 Salmon Arm BC V1E 4P1 Date: April 30, 2018 Reference/Project/Number: NA

2 TABLE OF CONTENTS 1 LIST OF ABBREVIATIONS INTRODUCTION PROJECT SCOPE & DESCRIPTION PROJECT PROPONENT CONTACT INFORMATION PROJECT DESCRIPTION AND LOCATION DESCRIPTION OF PROJECT ACTIVITY PROJECT IMPLEMENTATION STATUS AND DEVIATIONS NEW PROJECT IDENTIFICATION INFORMATION IMPLEMENTATION STATUS OF THE PROJECT ACTIVITY PROJECT PLAN DEVIATIONS PROJECT GHG CALCULATIONS PROCEDURES AND CRITERIA USED ASSESSMENT OF PERMANENCE BASELINE EMISSIONS CALCULATIONS PROJECT EMSSIONS CALCULATIONS EMISSIONS REDUCTION PROJECT REDUCTION DISCOUNTS AND CONTINGENCY ACCOUNT CONTRIBUTIONS ASSERTIONS PROJECT START DATE PROJECT REPORT PERIOD COMPLIANCE TO THE PROJECT PLAN GHG ASSERTIONS OWNERSHIP ANOTHER REGULATORY REQUIREMENT OR EMISSION OFFSET RECOGNITION SCHEME MANAGEMENT OF REVERSALS REGULATORY COMPLIANCE PROTOCOL REQUIREMENTS DECLARATION APPENDIX A: TEMPLATE MODIFICATION LOG... 14

3 1 LIST OF ABBREVIATIONS CAR Climate Action Reserve SSR - Project Sources, Sinks, and Reservoirs GHG Greenhouse Gas PSA Pressure Swing Absorption CSRD Columbia Shuswap Regional District GGIRCA Greenhouse Gas Industrial Reporting and Control Act Site Salmon Arm Landfill 2 INTRODUCTION 2.1 PROJECT SCOPE & DESCRIPTION Project Title ( The Project ): Validation Statement Expected Lifetime of the Project Landfill Gas Collection, Transmission, and/or Flaring System for the Salmon Arm Landfill GHG Project Plan. The Project Plan is dated June, 2011, REF. NO (4) Version 1.0 Validation Engagement Report for the Landfill Gas Collection, Transmission and/or Flaring System for the Salmon Arm Landfill GHG Project Plan June 16, years Crediting Period February 1, 2011 to December 31, 2020 Project Start Date February 11, 2011 Project Report Period January 1, 2017 to December 31, 2017 Protocol Project Scope Project Reductions Greenhouse Gas Industrial Reporting and Control Act section 54(1) grandfathering Quantification of GHG emission reduction credits completed using a modified version of the CAR Landfill Project Protocol, "Collecting and Destroying Methane from Landfills", Version 3.0, December 2, 2009 Waste Handling and Disposal In this report the total Project Reduction is calculated to be: 7,291 tco 2e April 5, 2016

4 2.2 PROJECT PROPONENT CONTACT INFORMATION Contact Name and Title Project Proponent Address Jodi Pierce, Manager, Financial Services Columbia Shuswap Regional District Box 978 Harbourfront Drive NE, Salmon Arm BC V1E 4P1 Telephone Secondary Contact(s) Name and Title Ben Van Nostrand, Team Leader, Environmental Health Services Telephone PROJECT DESCRIPTION AND LOCATION 3.1 DESCRIPTION OF PROJECT ACTIVITY The CSRD operates a LFG collection and transmission/destruction system at the Site. The LFG collection system captures, upgrades and transmits and/or combusts the LFG that would previously be vented into the atmosphere, reducing CH4 emissions. The PSA and related LFG upgrading equipment is owned and operated by Fortis BC, a Canadian-owned, BC-based energy company that serves more than 1.1 million customers in more than 135 communities across British Columbia. The CH4 is upgraded using PSA technology and transported to the Fortis BC natural gas utility pipeline. Any LFG not directed through the PSA unit will be combusted in the on-site candlestick flare, owned and operated by the CSRD. 4 PROJECT IMPLEMENTATION STATUS AND DEVIATIONS 4.1 NEW PROJECT IDENTIFICATION INFORMATION None to report. 4.2 IMPLEMENTATION STATUS OF THE PROJECT ACTIVITY The CSRD asserts that the project was carried out as described in the Project Plan. Throughout 2017 gas was either destroyed using the Fortis BC gas upgrading equipment, which sends gas to pipeline, or the CSRD s flaring equipment.

5 The CSRD asserts that, as per the Project Plan the Flare Flowmeter and Continuous Methane Analyzer was: cleaned and inspected on a quarterly basis, with the activities performed and as found/as left condition of the equipment documented; and field checked for calibration accuracy by a third-party technician with the percent drift documented, using either a portable instrument (such as a pitot tube) or manufacturer specified guidance, at the end of - but no more than two months prior to - the end date of the reporting period. The CSRD wishes to use this project report to describe compliance with Section 6.3 of the Project Plan and has supplied the following documents to the verifier to support the verification process: - a detailed description of the equipment used to measure, monitor and flare landfill gas associated with this project; - supporting information which describes assertion of ownership of the credits associated with this project; - data to support project emissions and reductions; inspection and calibration reports; and - information to support claims related to the Fortis BC components of the gas plant. 4.3 PROJECT PLAN DEVIATIONS Fortis BC is an electric power and gas distribution/retail company in the Canadian province of BRITISH COLUMBIA and a subsidiary of FORTIS INC. Newfoundland-based Fortis Inc. is Canada s largest private utility company. On March 1, 2011, Terasen Gas Inc., British Columbia's largest natural gas distributor, was renamed FortisBC Energy Inc., as both companies are owned by Fortis Inc. The CSRD began sending gas to Fortis BC gas upgrading equipment in This resulted in the reliance on Fortis BC to monitor, inspect and quantify gas destruction from their operations. The CSRD has supplied the verifier with supporting documentation to justify any and all deviations from the Protocol and/or Project Plan as well as documentation to support reductions, emissions and removals of carbon dioxide equivalencies asserted in this Project Report. Noted deviations from the Protocol include: - Fortis BC destruction claims the standard conditions for the Fortis flow meter is corrected to 25C (77F) versus the specified 60 degrees Fahrenheit as prescribed in the Protocol; - Fortis BC, being a gas utility company, have equipment and related protocols that deviate from the Landfill Project Protocol. Deviations include missing the required quarterly cleaning and inspection and the field check at the end of the reporting period as required by the Protocol for all gas flow meters and continuous methane analyzers. - The global warming potential of 25 was used as per the definition of greenhouse gas in GGIRCA. This deviates from the global warming potential specified in the original Project Plan of 21.

6 - The data for the outflow meter used by Fortis BC to measure flow is logged hourly which is a deviation from the stated 15 minute interval identified in the Landfill Project Protocol. The volume accumulated during the interval is logged and is an average flow rate for the interval (cubic feet per hour). - The data for methane (CH4) concentrations supplied by Fortis BC is being logged every hour which is a deviation from the stated 15 minute interval identified in the Landfill Project Protocol. - Project emissions from Flare pilot calculated using gigajoule of energy from natural gas supplier and natural gas emission factor from Protocol (Equation 5.9 of the Protocol), rather than equation 5 in Section Horizontal gas collection wells were installed in 2013 and 2015, which were not identified in the initial project identification work. Horizontal wells will allow the CSRD to begin capturing landfill gas earlier in the process and before that Phase of the landfill is closed. Due to the issues related to air intrusion, which have detrimental impacts on the operation of the landfill and the quality of the gas being collected, the horizontal gas wells are producing a very limited amount of gas and are in the opinion of the CSRD non-material to the Project. Furthermore, the CSRD maintains that the oxidation factor in Section 5.1 (Equation 2) is still assumed to be zero. The CSRD asserts that the aforementioned deviations from the Protocol are insignificant and do not present a risk of material misstatement. 5 PROJECT GHG CALCULATIONS 5.1 PROCEDURES AND CRITERIA USED Data calculations were performed by the CSRD s consultants, GHD, to account for all claims associated with the destruction of landfill gas, and calculations used are based on the applicable Protocols outlined in the Project Plan. Equation 1: Calculating GHG Emission Reductions ER BE PE Where: ER = GHG emission reduction of the LFG collection and transmission/ destruction system during the reporting period (tco 2e) BE = Baseline emissions during the reporting period (tco 2e) PE = Project emissions during the reporting period (tco 2e)

7 The baseline emissions will be calculated as per equations 2 through 3b as follows: Equation 2: Calculating Baseline Emissions CH DestPR *25* 1 OX * DF Destbase BE 4 1 x (1-OX) Where: BE = Baseline emissions during the reporting period (tco 2e) CH 4Dest PR = Total methane destroyed by the project LFG collection and destruction system during the reporting period (tch 4) 25 = Global Warming Potential of methane to carbon dioxide equivalent (tco 2e/tCH 4) OX = Factor for the oxidation of methane by soil bacteria. Equal to 0.1 (Unitless) Dest base = Adjustment to account for pre-project LFG destruction device. Equal to 0 as the baseline did not have a LFG collection system component (tco 2e) DF = Discount factor to account for uncertainties associated with the monitoring equipment. Equal to 0 as the Site is using a continuous methane monitor. (Unitless) Due to the assumptions made above, Equation 2 becomes: Equation 2a: Revised Calculating Baseline Emissions CH Dest *25* OX BE 4 PR 1 To determine the methane destroyed by the project LFG collection and destruction system during the reporting period the following equations will be used: Equation 3: Total Methane Emissions Destroyed CH 4 DestPR 4Dest i Where: CH * *0. i CH 4Dest PR = Total methane destroyed by the project LFG collection and destruction system during the reporting period (tch 4)

8 CH 4Dest i = Net quantity of methane destroyed by destruction device i during the reporting period (scf CH 4) = Density of methane (lbch 4/scfCH 4) = Conversion factor (tch 4/lbCH 4) Metric Equivalent (for Flare conversion): = Density of methane (tonnech 4/m3CH 4) at 15 C and 1 atm Metric Equivalent (for Fortis BC conversion): = Density of methane (tonnech 4/m3CH 4) at 25 C and 1 atm Equation 3a: Net Quantity of Methane Destroyed by Device i CH 4Desti Qi * DE Where: CH 4Dest i = Net quantity of methane destroyed by destruction device i during the reporting period (scf CH 4) Q i = Total quantity of landfill methane sent to destruction device i during the reporting period (scf) DE i = Default methane destruction efficiency for device i. Equals 0.96 for an Open Flare and 0.98 for an upgrade and injection into a natural gas pipeline (Percentage) Equation 3b: Total Quantity of Methane Sent to Destruction Device i Q i i, t * CH4, t i LFG PR Where: Q i = Total quantity of landfill methane sent to destruction device i during the reporting period (scf or m 3 ) LFG i,t = Total quantity of LFG fed to the destruction device i in time interval t (scf/t or m 3 /t)

9 t = Time interval for which LFG flow and concentration measurements are aggregated. Equal to one day for continuous monitoring (t) PR CH4,t = The average methane fraction of LFG in time interval t as measured (volume CH 4/ volume LFG) The project emissions will be calculated as per equations 4 through 5 as follows: Equation 4: Calculating Project Emissions PE FF EL FF CO2 CO2 CH4 Where: PE = Project emission during the reporting period (tco 2e) FF CO2 = Total carbon dioxide emission from the destruction of fossil fuel during the reporting period. Equal to 0 as there is no fossil fuel required for operation of the LFG collection and destruction system (tco 2) EL CO2 = Total indirect carbon dioxide emission from the consumption of electricity from the grid during the reporting period (tco 2). Equal to 0 as the emission factor for new electricity use in British Columbia is zero in British Columbia (PCT Offset Regulation Guidance, V2.0). FF CH4 = Total quantity of emissions from supplemental natural gas, including both un-combusted methane and carbon dioxide emissions during the reporting period (tco 2) Due to the assumptions stated above the Project Emissions calculation becomes: Equation 4a: Revised Calculating Project Emissions PE EL CO FF 2 CH4 To determine the remaining components of the Project Emissions calculation the following equations will be used: Equation 5: Calculating Project Emissions from the Use of Supplemental Fuel

10 FF CH4 i FFi * FFGCH4 * * * 1 DE i * 25 DEi * * Where: FF CH4 = Total quantity of emissions from supplemental natural gas, including both un-combusted methane and carbon dioxide emissions during the reporting period (tco 2e) FF i = Total quantity of supplemental natural gas delivered to the destruction device i during the reporting period (scf) DE i = Default methane destruction efficiency for device i. Equals 0.96 for an Open Flare and 0.98 for an upgrade and injection into a natural gas pipeline (Percentage) FFG CH4 = Average methane fraction of the supplemental natural gas as provided for by the fuel vendor (volume CH 4/ volume LFG) = Density of methane (lbch 4/scfCH 4) = Conversion factor (tch 4/lbCH 4) Metric Equivalent: = Density of methane (tonnech 4/m3CH 4) at 15 C and 1 atm 25 = Global Warming Potential of methane to carbon dioxide equivalent (tco 2e/tCH 4) 12/16 = Carbon ratio of methane (C/CH 4) 44/12 = Carbon ration of carbon dioxide (CO 2/C) 5.2 ASSESSMENT OF PERMANENCE This section is not applicable as this project is not a sequestration or storage project. 5.3 BASELINE EMISSIONS CALCULATIONS See attached Table 1 for the baseline emissions. A sample calculation of the baseline emissions is presented in Attachment 1. Baseline emissions are based on the volume of landfill gas collected in the landfill gas collection system. The baseline condition is that in the absence of the project the landfill gas would be vented to the atmosphere. 5.4 PROJECT EMSSIONS CALCULATIONS See attached Table 1 for the project emissions presented in Attachment 1. The project emissions result from the combustion of natural gas in the flare pilot. Natural gas is metered separately and the invoiced amount is used to calculate the annual project emissions.

11 5.5 EMISSIONS REDUCTION Table 1: Emissions Reduction Project Report Period A B C Baseline Emissions (tco 2e) Project Emissions (tco 2e) (A-B=C) Emissions Reduction (tco 2e) 01/01/2017 to 31/12/2017 7, , PROJECT REDUCTION Table 2: Project Reduction Project Report Period 01/01/2017 to 31/12/2017 [Removals Enhancement Or Emissions Reduction] (tco 2e) C D E Leakage (tco 2e) 7, ,291 (C-D=E) Project Reduction (tco 2e) 5.7 DISCOUNTS AND CONTINGENCY ACCOUNT CONTRIBUTIONS This section is not applicable as this project is not a sequestration or storage project. 6 ASSERTIONS 6.1 PROJECT START DATE Columbia Shuswap Regional District asserts the Project Start Date is February 11, 2011 as per the accepted Project Plan.

12 6.2 PROJECT REPORT PERIOD Columbia Shuswap Regional District asserts: a. the project report period covered by this project report is January 1, 2017 to December 31, 2017; b. the project report period is within the crediting period February 1, 2011 to December 31, 2020; and c. the project report period is consistent with the project report period under the applicable protocol. 6.3 COMPLIANCE TO THE PROJECT PLAN In consideration of the changes listed in section 4 of this Project Report, Columbia Shuswap Regional District asserts the Project was carried out substantially as described in the accepted Project Plan. 6.4 GHG ASSERTIONS Columbia Shuswap Regional District asserts the amount of each of the following calculated for the Project Report Period: 38 tco 2e of project emission; 7,291 tco 2e of emissions reduction; For all projects: 7,291 tco 2e of project reduction. 6.5 OWNERSHIP The Columbia Shuswap Regional District asserts the Columbia Shuswap Regional District is entitled to the Offset Units or any other benefit issued in respect of the Project Reductions for the Project Report Period. 6.6 ANOTHER REGULATORY REQUIREMENT OR EMISSION OFFSET RECOGNITION SCHEME Columbia Shuswap Regional District asserts the asserted amounts of the 7,291 tco 2e has not been or will not be applied to comply with a regulatory requirement under another enactment or submitted for recognition under another voluntary or mandatory emission offset scheme. 6.7 MANAGEMENT OF REVERSALS This section is not applicable as this Project is not a Sequestration or Storage Project.

13 6.8 REGULATORY COMPLIANCE The Columbia Shuswap Regional District asserts this Project Report complies with the Greenhouse Gas Emission Control Regulation. 7 PROTOCOL REQUIREMENTS Quantification of GHG emission reduction credits were completed using a modified version of the CAR Landfill Project Protocol, "Collecting and Destroying Methane from Landfills", Version 3.0, December 2, The CAR Landfill Project Protocol is a North American National based voluntary system that was adopted based upon principles of the Clean Development Mechanism (CDM) of the United Nations Framework Convention on Climate Changes (UNFCCC), and the California Climate Action Reserve (CCAR). Despite the fact that CAR is a North American Protocol many of the specific default parameters and eligibility requirements are specific to only the United States or Mexico. As such, certain sections of the CAR Landfill Project Protocol are required to be adapted to suit BC regulatory requirements for the Site. 8 DECLARATION In signing this declaration, I certify that: I am an authorized officer of the Project Proponent and have personally examined and am familiar with the information submitted in this emission offset Project Report. 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 asserted Project Reduction and the accepted Project Plan upon which it is based have been fully disclosed. I understand that any false statement made in the submitted information may be punishable as a criminal offence in accordance with provincial or federal statutes.

14 The Project Proponent has executed this emission offset Project Report as of the date below: Project Proponent Signatory Name: Columbia Shuswap Regional District Signature: Date: April 30, 2018 Title: Ben Van Nostrand, Team Leader, Environmental Health Services 9 APPENDIX A: TEMPLATE MODIFICATION LOG Not Applicable no modifications were made to this template.

15 Attachment 1 Table 1 Baseline Emissions Calculation 2017 GHG Offset Summary - Salmon Arm Landfill Operating Condition Methane rich Methane rich gas LFG Flaring gas to pipeline to flare Total Period tonnes CO2e Jan 1 - Dec 31 1, , , Total 1, , , Project Emission Natural Gas Usage GJ Fortis Meter - Billed NG Usage Natural Gas Average Energy Content 1029 Btu/scf Protocol Unit Conversion GJ/MMBtu Volume of Natural Gas scf Flare Destruction Efficiency 0.96 Methane Content of NG 100% Conservative Assumption Project Emissions tonnes eco Emission Reductions 6, tonnes eco2 Convert to GWP of 25 from 21 7, tonnes eco2 Baseline Emissions Net 2017 Emission Reductions (rounded) 7, tonnes eco2 Reality Check on Fortis Flows Using Energy Total Reported Energy 13,961 GJ Energy Content of Methane 55.5 GJ/tonne CH4 Destruction Efficiency 98% Mass of Methane 247 tonnes Mass of CO2e 5177 (21 GWP, corrected at the end of the calculation) % Difference -1.70%

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