TOLKO SLAVE LAKE BIOMASS OFFSET PROJECT

Transcription

1 TOLKO SLAVE LAKE BIOMASS OFFSET PROJECT Greenhouse Gas Emissions Reduction Offset Project Report For the 2 nd Reporting Period of January 1, 2016 December 31, 2016 FINAL REPORT, version 2.2 September 8, 2017 Prepared by: (Authorized Project Contact) Suite 700, th Avenue SW Calgary, Alberta T2P 3R5 T: (403) F: (403) Prepared for: Tolko Industries Ltd. (Project Proponent) PO Box 39, th Street Vernon, British Columbia, V1T 6M1 T: (250) F: (250)

2 P a g e i Contents Contents... i List of Figures and Tables... ii List of Abbreviations... ii 1 PROJECT SCOPE AND PROJECT DESCRIPTION PROJECT CONTACT INFORMATION PROJECT DESCRIPTION AND LOCATION PROJECT IMPLEMENTATION AND VARIANCES REPORTING PERIOD GREENHOUSE GAS CALCULATIONS... 5 Biomass Total Dry tonnes Calculation... 6 SS B4 (Fuel Extraction and Processing)... 7 SS B18 (Displaced On-Site Heat Generation)... 8 SS P4 (Fuel Extraction and Processing)... 8 SS P6 (Off-site heat and electricity not displaced)... 9 SS P12 (Facility Operation)... 9 SS P15 (Combustion of Biomass and Fossil Fuels) HISTORIC OFFSET PROJECT PERFORMANCE GREENHOUSE GAS ASSERTION PROJECT DEVELOPER SIGNATURES STATEMENT OF SENIOR REVIEW REFERENCES Appendix A Exemption approval Appendix B Deviation approval Appendix C METER MAINTENANCE AND CALIBRATION DETAILS... 18

3 Page ii List of Figures and Tables TABLE 2: EMISSION FACTORS USED FOR TOLKO SLAVE LAKE BIOMASS OFFSET PROJECT... 6 TABLE 1: TRIM LOSS OF THE TOP SIX PRODUCT LINES, COMPRISING OVER 91% OF THE TOTAL PRODUCTION... 7 TABLE 3: OFFSET TONNES CREATED BY VINTAGE YEAR AND GHG TABLE 4: UPDATED METERING MAINTENANCE AND CALIBRATION DETAILS FIGURE 1: VINTAGE EMISSION REDUCTION PERFORMANCE List of Abbreviations AEOR Alberta Emissions Offset Registry AENV AEP AESRD Bluesource CH 4 CO 2 CO 2e GHG GWP HFC KPI MC OSB OSL N 2O PFC SF 6 SGER SS VC3H8 VD MF MHP MB Feed ERs Alberta Environment (now Alberta Environment & Parks) Alberta Environment and Parks (previously Alberta Environment & Sustainable Resource Development) Alberta Environment & Sustainable Resource Development (now Alberta Environment & Parks) Methane Carbon dioxide Carbon dioxide-equivalent Greenhouse gas Global warming potential Hydrofluorocarbon(s) Key performance indicator moisture content Oriented strand board Oriented strand lumber Nitrous oxide Perfluorocarbon(s) Sulphur hexafluoride Specified Gas Emitters Regulation Sources and sinks Volume of propane volume of diesel mass of fines waste mass of hog pile waste total mass of biomass, dry tonnes total annual feed production Emission reductions

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5 P a g e 1 1 PROJECT SCOPE AND PROJECT DESCRIPTION The project title is: Tolko Slave Lake Biomass Offset Project (herein referred to as the Project ) The project s The Project uses waste biomass to generate thermal energy that is required purpose(s) and to heat the mill dryers, log ponds, buildings and the on-site steam generator. objective(s) The opportunity for generating carbon offsets arises primarily from direct reductions of GHG emissions by displacing fossil fuel usage with waste biomass. The Project does not claim credits for the diversion of feedstock from landfill. Date when the project The project began November 27, 2007, and is a result of actions taken on, began or after, January 1, Expected lifetime of The Project is a commercial enterprise with no fixed end-date and is the project expected to continue for if the equipment is operational and commercially viable. This is expected to be well in excess of the credit duration period. Credit start date The crediting start date for the Project is January 1, Credit duration period Proponents for the Project intend to claim offsets for a period of 8 years, starting on January 1, 2015 and ending on December 31, After this period, the Project will be re-assessed for additionality and, as circumstances permit may apply for a 5-year crediting extension period. Reporting period The reporting period is January 1, 2016 December 31, Actual emissions The Project has created the following emission reductions: reductions ,151 tonnes CO 2e ,503 tonnes CO 2e Total 107,654 tonnes CO 2e Applicable Quantification Protocol Protocol Justification The quantification protocol used is the Quantification Protocol for Energy Generation from the Combustion of Biomass Waste (Version 2.0, April 2014) protocol published by Alberta Environment (AENV). The Project uses waste biomass to produce heat energy through a thermal energy system. This heat energy is used on site to heat the adjoining mill dryers, log ponds, building and on-site steam generator. The use of the biomass derived thermal energy displaces higher intensity fossil fuels that would have been used in the absence of the project. As a result of the thermal energy system, Tolko Industries Ltd. (Tolko), herein referred to as the Proponent, is directly reducing GHG emissions by displacing a portion of fossil fuel usage with biomass derived thermal energy. As the activities of the project are applicable under the Quantification Protocol for Energy Generation from the Combustion of Biomass Waste (Version 2.0, April 2014) and are not an industry standard, the results of this

6 Page 2 Other Environmental Attributes Legal land description of the project or the unique latitude and longitude Ownership Reporting details Verification details Project activity project are considered additional and would not have occurred under business as usual circumstances. This Project is not generating Renewable Energy Certificates (RECs) or other environmental benefits/attributes. There are no opportunities for potential double counting as this project is only registered with the AEOR. The project is located in Alberta. The Tolko Athabasca Engineered Wood Plant (previously referred to as the Slave lake OSB mill in the OPP) is located 10km southeast of Slave Lake. LSD: W5 Latitude: o Longitude: o The Project is owned and operated by Tolko Industries Ltd. Emission reductions achieved through this Project will be claimed starting in 2015 with the first reporting period covering January 1, 2015 to December 31, Subsequent reporting is annual. The verifier, Keystone Environmental Ltd., is an independent third-party that meets the requirements outlined in the Specified Gas Emitters Regulation (SGER). An acceptable verification standard (e.g. ISO ) has been used and the verifier has been vetted to ensure technical competence with this project type. This is the second verification carried out by the verifier for this project. This project meets the requirements for offset eligibility as outlined in section 3.1. of the Technical Guidance for Offset Project Developers (version 4.0, February 2013). In particular: 1. The project occurs in AB: as outlined above; 2. The project results from actions not otherwise required by law and beyond business as usual and sector common practices: Offsets being claimed under this project originate from a voluntary action. The project activity (i.e. conversion of biomass to energy) occurs at a non-regulated facility and is not required by law. The protocol 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.

7 Page 3 5. The project has clearly established ownership: The Proponent owns and operates the Athabasca Engineered Wood Plant. As such, direct emission reductions generated by the project, from the production of thermal energy from biomass, are owned solely by the Proponent. 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. 6. The project will be counted once for compliance purposes: The project credits will be registered with the Alberta Emissions Offset Registry (AEOR) which tracks the creation, sale and retirement of credits. Credits created from the specified reduction activity have not been, and will not be, created, recorded or registered in more than one trading registry for the same time period. 2 PROJECT CONTACT INFORMATION Project Proponent Tolko Industries Ltd. Michael Towers Manager, Tolko Energy Supply and Systems PO Box th Street Vernon, British Columbia V1T 6M1 Authorized Project Contact Verifier Phone: (250) Fax: (250) Michael.Towers@tolko.com Kelly Parker Engineer Phone: x260 Fax: kellyp@bluesourcecan.com Keystone Environmental Ltd. Judy Tai Project Engineer Phone: (604) Fax: (604) jtai@keystoneenvironmental.ca Web: Suite th Avenue SW Calgary, AB T2P 3G2 Canada Web: Suite Dominion Street Burnaby, British Columbia V5G 4G3 Web: 3 PROJECT DESCRIPTION AND LOCATION Tolko s Athabasca mill began operations in 2008, and is located 10km southeast of Slave Lake, Alberta. Due to poor market conditions, operations were curtailed in 2009, but restarted in December 2013,

8 Page 4 reaching full capacity in The Athabasca mill produces oriented strand board (OSB) and engineered lumber (oriented strand lumber, OSL ) and supplements its thermal energy requirements with waste forest mill residues, including bark and screen fines from the adjoining wood products facility. The Proponent implemented a renewable energy generation system to facilitate energy self-sufficiency and improve the environmental performance of the Athabasca mill operations. To achieve this goal, in 2007, the Proponent purchased two 57 MMBtu/hr GTS Energy Reciprocating Grate Combustion systems from GTS Energy. These gasifiers could convert approximately 40,000 bone dry tonnes per year of wood residues into renewable syngas. The produced syngas would be used to displace natural gas consumption at the mill, producing heat for dryers and thermal oil for the heating of the press, log ponds, building and steam generator. In the 2016 calendar year, the Project used four different sources of biomass. These were: a. Hog fuel from pile hog fuel consumption used for the furnaces are measured using a weigh-belt; b. Wet fines wet fines mixed with hog fuel were measured using a separate weigh-belt; c. Trimmings wood trimmings off of the press to ensure finished product dimensions. On-site fossil fuel consumption consisted of propane required for the gasifier operation as well as the DH heater when that is supplemental to the GTS system during system upsets and diesel for supporting equipment operation. 4 PROJECT IMPLEMENTATION AND VARIANCES Several variances and modifications, as compared to the Offset Project Plan, were made for this reporting period and are as follows: 1. For the 2016 year, the total direct specified gas emissions from the Project exceeded 100,000 tco 2e. The Project has received an exemption from the compliance obligation under the Specified Gas Emitters Regulation (SGER) for the 2016 compliance year, also receiving permission to create vintage 2016 offsets. Please see Appendix A for the exemption approval. 2. Use of Protocol Flexibility Mechanism #5: The Project does not directly meter steam output from the energy system. As such, baseline emissions from fuel combustion are calculated using energy generation data, as described by SS P15. The project has received a protocol deviation approval allowing for the application of flexibility mechanism #5 to a baseline fuel source. Please see Appendix B for the protocol deviation approval. 3. Section of the OPP states that emissions from electricity usage under SS B12 facility operations is functionally equivalent and therefore excluded from the baseline quantification as conveyor belts would have still been required in the baseline to remove the wood waste from the

9 Page 5 production line to a storage areas before transport off-site. Similar to the inclusion of diesel emissions from on-site biomass transfer in source P12, which is included to maintain conservativeness, the upstream electricity emissions associated with the hog fuel material handling system, and the heat energy system will be included under SS P6 Off-site Heat and Electricity not displaced in the project, originally an excluded source in the Protocol. There is no incremental off-site heat generation used in the project. SSP6 was selected as a more appropriate source than SSP12 as electricity emissions from the operation of this equipment occur from grid electricity upstream of the project boundary, and is not generated on-site. This approach preserves the transparency, and conservativeness principle of the Project. 4. The quantification of source SSB4 (fossil fuel extraction and processing) and SS B18 (displaced onsite heat generation) uses the HHV of the biomass instead of LHV. This is to ensure consistency of the project s system efficiency calculation (which uses HHV of the biomass), with the energy determination of the biomass fuel. 5. During the 2017 site visit, it was observed that the trimmings of the board edges post press were redirected back to the burner as fuel. This waste feedstock mass is not captured under the wet fines scales or the hog infeed scale. Therefore, an additional calculation as described in Section 6 was included in the quantification to increase the accuracy of the assertion. 5 REPORTING PERIOD The carbon dioxide equivalent emission reduction credits are claimed for activities occurring from 1 January, 2016 to 31 December, GREENHOUSE GAS CALCULATIONS This project quantifies GHG emission reductions according to the Quantification Protocol for Energy Generation from the Combustion of Biomass (version 2.0, April 2014). The activities and procedures outlined in the Offset Project Plan provide a detailed description of the project s adherence to the requirements of the quantification protocol. The formulas used to quantify greenhouse gas offset by the project are listed below. Please note that this section has been updated to include the baseline natural gas boiler efficiency in relevant quantification equations. The following is based upon the equations presented in Section 4 of the OPP and serve as the basis for calculating the emission reductions from the comparison of the baseline and project conditions: Emission Reduction = Emissions Baseline Emissions Project

10 Page 6 Emissions Baseline = sum of the emissions under the baseline condition. Emissions displaced on-site heat generation = emissions under SS B18 Emissions fuel extraction and processing = emissions under SS B4 Emissions Project = sum of the emissions under the project condition. Emissions fuel extraction and processing = emission under SS P4 Emissions under electricity consumption = emissions under SS P6 Emissions facility operation = emissions under SS P12 Emissions combustion of biomass and fossil fuels = emission under SS P15 Table 1: Emission factors 1 used for Tolko Slave Lake Biomass Offset Project Parameter Relevant SS CO 2 Emission Factor CH 4 Emission Factor N 2O Emission Factor Natural gas combustion B kg/m kg/m kg/m 3 Natural Gas Extraction and Processing B4, P kg/m kg/m kg/m 3 Diesel Combustion P kg/l kg/l kg/l Diesel Production P kg/l kg/l kg/l Biomass 50%MC (2015 National Inventory Report ), Table A6-32 P t CO 2e/tonne fuel 0.09 g/kg fuel 0.06 g/kg fuel Propane Combustion P kg/l kg/l kg/l Electricity SS P tco 2e/MWh - - Biomass Total Dry tonnes Calculation M B,DRY = M F (1 %MC F ) + M HP (1 %MC HP ) + M TRIM Where: M B,DRY = mass of wood waste, dry tonnes M F = mass of fines, wet tonnes MC F = moisture content of fines, % 1 Emission factors sourced from the Carbon Offset Emission Factor Handbook, version 1.0, 2015 unless otherwise indicated

11 Page 7 M HP = mass of hog fuel, wet tonnes MC HP = moisture content of hog waste M TRIM = M Press,NET %TrimLoss average And: M TRIM = mass of trimmings recycled to burner. The mass of trimmings recycled to the burner are calculated on an annual basis and prorated monthly based upon the combined hog fuel and fines combusted for that month. %TrimLoss average = average trim loss for the top six products as show in Table 2 Table 2: Trim loss of the top six product lines, comprising over 91% of the total production Product Percent of Trim Loss 7/16" PRS/S1 3.95% 15/32" PRS/S1 3.79% 3/8" PRS/S1 3.95% 23/32" RSIF FF 2.61% 19/32" PRS/S1 3.79% 1/2" PRS/S1 3.79% Other 2.61% M Press,NET = M WOOD,TOTAL M Nose,Total Where: M Press,NET M WOOD, TOTAL M Nose, TOTAL = net mass of wood waste to the press, dry tonnes = Total woody biomass sent to press as measured by the DGS system, including nose waste recycle = total nose waste diverted from press during upset conditions SS B4 (Fuel Extraction and Processing) Emissions of CO 2 = Equivalent Volume of natural gas (m 3 ) x EF NGEP-CO2 = 4, t CO 2 Emissions of CH 4 = Equivalent Volume of natural gas (m 3 ) x EF NGEP-CH4 = t CH 4 Emissions of N 2O = Equivalent Volume of natural gas (m 3 ) x EF NGEP-N2O = 0.22 t N 2O Where, Equivalent volume of natural gas (m 3 ) = Biomass Energy (GJ) HHV NG ( MJ m 3 ) η system η boiler = 1,481, GJ GJ e 3 m m3 = 31, e 3 m 3 m3

12 Page 8 Biomass energy (GJ) = Biomass (tonnes) HHV Biomass (GJ/tonne) = 136,635 bone dry tonnes GJ = 1,481, GJ tonne And, Biomass = 136,635 bone dry tonnes HHV Biomass = GJ/tonne HHV = GJ/e 3 m 3 η system = 69% η boiler = 83% EF NGEP-CO2/ EF NGEP-CH4/ EF NGEP-N2O = Emission factor for natural gas extraction and processing for CO 2, CH 4 and N 2O (see Table 1) SS B18 (Displaced On-Site Heat Generation) Emissions of CO 2 = Equivalent volume of natural gas (m 3 ) x EF NG-CO2 = 59, t CO 2 Emissions of CH 4 = Equivalent volume of natural gas (m 3 ) x EF NG-CH4 = 1.15 t CH 4 Emissions of N 2O = Equivalent volume of natural gas (m 3 ) x EF NG-N2O = 1.03 t N 2O SS P4 (Fuel Extraction and Processing) Emissions of CO 2 = Volume of propane gas (m 3 ) x EF PEP-CO2 + Volume of diesel (litres) x EF DP-CO2 = = t CO 2e Emissions of CH 4 = Volume of propane gas (m 3 ) x EF PEP-CH4 + Volume of diesel (litres) x EF DP-CO2 = ( ) t CH 4 x 25 = t CO 2e Emissions of N 2O = Volume of propane gas (m 3 ) x EF PEP-N2O + Volume of diesel (litres) x EF DP-CO2 = ( ) t N 2O x 298 = 0.53 t CO 2e Where, Volume of propane gas (m 3 ) = volume of propane (litres) x Propane ideal liquid to gas ratio /1000 = 262,553 litres = 71, m 3 Volume of propane = 262,553 litres Volume of diesel = 323,255 litres EF PEP-CO2/ EF PEP-CH4/ EF PEP-N2O = Emission factor for natural gas extraction and processing for CO 2, CH 4 and N 2O EF DP-CO2/ EF DP-CH4/ EF DP-N2O = Emission factor for propane extraction and processing for CO 2, CH 4 and N 2O

13 Page 9 SS P6 (Off-site heat and electricity not displaced) Power loads deemed functionally equivalent are related to the heating and cooling mediums that would be used in either a natural gas or biomass burner, such as equipment associated with the movement of air, water or oil. Table 3: Power equipment removed from the determination of project electricity usage Equipment ID 31_E_08195M01 31_E_08295M01 51_E_08120M04 51_E_08120M05 51_E_08120M10 51_E_08150M01 51_E_08161M01 51_E_08163M01 51_E_08165M01 51_E_08186M02 52_E_08220M03 52_E_08220M04 52_E_08220M05 52_E_08230M01 52_E_08250M01 52_E_08262M01 52_E_08263M01 52_E_08265M01 52_E_08286M02 Description Heater 1 ID Fan Motor Heater 2 ID Fan Motor Furnace 1 Hydraulic Cooling Pump Motor Furnace 1 Hydraulic Cooling Fan 1 Motor Furnace 1 Hydraulic Cooling Fan 2 Motor Furnace 1 Primary Air Fan Motor Furnace 1 Secondary Air Fan Motor Furnace 1 Cooling Water Pump Motor Furnace 1 Blend Air Fan Motor Thermal Oil Heaters 1 Transition Duct A Airlock Motor Furnace 2 Hydraulic Cooling Pump Motor Furnace 2 Hydraulic Cooling Fan 1 Motor Furnace 2 Hydraulic Cooling Fan 2 Motor Furnace 2 Primary Air Fan Motor Furnace 2 Secondary Air Fan Motor Furnace 2 Water Cooled Fan Motor Furnace 2 Cooling Water Pump Motor Furnace 2 Blend Air Fan Motor Thermal Oil Heaters 2 Transition Duct A Airlock Motor Electricity emissions from incremental project usage = (Electricity Hog Fuel Systems + Electricity Heat Load) (kw/day) x Uptime (days) x EF GRID = (9, kw/day + 2, kw/day)/1000 x 360 days x 0.64 t CO2e/MWh = t CO 2e + 3, t CO 2e = 3, tco 2e SS P12 (Facility Operation) Emissions of CO 2 = Volume of propane (litres) x EF P-CO2 + Volume of diesel (litres) x EF D-CO2 = ( ) tco 2 = 1,256.5 t CO 2e Emissions of CH 4 = Volume of propane (litres) x EF P-CH4 + Volume of diesel (litres) x EF D-CO2 = ( ) tch 4 x 25 GWP

14 Page 10 = 1.23 t CO 2e Emissions of N 2O = Volume of propane (litres) x EF P-N2O + Volume of diesel (litres) x EF D-CO2 = ( ) t N 2O x 298 = tco 2e SS P15 (Combustion of Biomass and Fossil Fuels) Emissions of CH 4 = Biomass 50%MC (GJ) x EF B-CH4 = t CH 4 Emissions of N 2O = Biomass 50%MC (GJ) x EF B-N2O = t N 2O Where: Biomass 50%MC = M B,Dry = 273,269 tonnes 100% 50% Biomass 50%MC M B,Dry = mass of biomass at 50% moisture content = mass of biomass, dry tonnes 7 HISTORIC OFFSET PROJECT PERFORMANCE The project first created emission reductions in January 1, The following figure tracks the offset creation performance against feed (or production values) since the beginning of the offset project. 350, , , , , , , , , , , , , , ,000-27, , , , VC3H8 VD (litres MF MHP MB,dry ERs Feed (million) Figure 1: Vintage emission reduction performance

15 Page 11 Increase in product output has led to the increase in hog fuel available as waste feedstock into the GTS energy system. Increase in debarking efficiency resulting from process optimization has also resulted in less fines production during the conditioning process, causing a decrease in the fines sent to the gasifier, but an increase in the overall hog fuel generated. This further reduced the propane usage as a supplementary fuel in the GTS energy system despite an increase in product and associated uptime.

16 Page 12 8 GREENHOUSE GAS ASSERTION The greenhouse gas assertion is a statement of the number of offset tonnes achieved during the reporting period. The assertion identifies emissions reductions per vintage year and includes a breakout of individual greenhouse gas types (CO 2, CH 4, N 2O, SF 6, HFCs, and PFCs) applicable to the project and total emissions reported as CO 2e. The total in units of tonnes of carbon dioxide equivalent (CO 2e) is calculated using the global warming potentials (GWPs) referenced in the SGER. Table 4 identifies the greenhouse gas assertion, containing the calculated number of offset tonnes achieved, separated by each unique vintage year and GHG released. Please note that there are no sources of SF 6, HFCs or PFCs for this Project. Table 4: Offset tonnes created by vintage year and GHG ALL YEARS Greenhouse Gas (GHG) in tonnes CO 2e CO 2 CH 4 N 2O PFCs HFCs SF 6 CO 2e Total Baseline Project Reductions 63, , , , , , , , , , , ,503.00

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18 Page STATEMENT OF SENIOR REVIEW This offset project report was prepared by Kelly Parker, Engineer, Blue Source Canada and senior reviewed by Tooraj Moulai, Senior Engineer, Carbon Services, Blue Source Canada. Although care has been taken in preparing this document, it cannot be guaranteed to be free of errors or omissions. Prepared by: Senior reviewed by: Kelly Parker 9/08/2017 Tooraj Moulai 9/08/17

19 Page REFERENCES AESRD, Specified Gas Emitters Regulation: Technical Guidance for Offset Project Developers (version 4.0). [pdf] Edmonton, Alberta: Alberta Environment and Sustainable Resource Development. AESRD, Quantification Protocol for Energy Generation from the Combustion of Biomass Waste Usage (version 2.0). [pdf] Edmonton, Alberta: Alberta Environment and Sustainable Resource Development. AESRD, Carbon Offset Emission Factor Handbook (version 1.0). [pdf] Edmonton, Alberta: Alberta Environment and Sustainable Resource Development. Environment Canada, National Inventory Report : Greenhouse Gas Sources and Sinks in Canada: Part 2. [pdf] Pollutant Inventories and Reporting Division. Available at: <

20 Page 16 Appendix A EXEMPTION APPROVAL

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22 Page 17 Appendix B DEVIATION APPROVAL

23 Climate Change Policy and Regulations Branch 12 th Floor, Street Edmonton, Alberta T5J 1G4 Canada Telephone: May 9, 2016 Aleena Dewji Blue Source Canada Suite 700, th Avenue SW Calgary, AB T2P 0Z3 Dear Ms. Dewji, Subject: Request to obtain audit findings and clarify calculation of fuel combustion emissions in the Tolko Slave Lake Biomass Offset Project ( ) The Climate Change Office has reviewed your sent April 5, 2016 requesting access to the government audit findings from recent biomass projects and clarification on the calculation of emissions from the combustion of biomass in the Quantification Protocol for Energy Generation from the Combustion of Biomass v2.0. Blue Source is collecting energy generation data and utilizing emission factors to calculate emissions from fuel combustion (as described through source/sink P15 in the project condition) and is requesting to use this same methodology to calculate emissions from fuel combustion in the baseline condition. A government audit has not been conducted thus far on a project that is using the current (2014) version of the protocol, thus there are no audit reports available to share at this time. Blue Source may use the methodology described for source/sink P15 of Table 6 to calculate emissions from heat generation in the baseline condition, provided that all protocol requirements related to the application of this methodology are met in both the baseline and project condition. If you have further questions please do not hesitate to contact our office directly at ESRD.GHG@gov.ab.ca. Sincerely, John Storey-Bishoff, P.Eng. Director, Climate Change Compliance Alberta Climate Change Office cc: Alberta Emissions Offset Registry (file)

24 Page 18 Appendix C METER MAINTENANCE AND CALIBRATION DETAILS

25 Page 19 Table 5: Updated metering maintenance and calibration details Project Specific Data Propane Consumption Diesel Consumption Biomass Consumption Meter ID Meter Model Maintenance Schedule Calibration Schedule Accuracy Rating Bluewave Energy (supplier) Third Party Third Party Third Party Third Meter Meter Meter Party Meter PetroCanada (supplier) Third Party Third Party Third Party Third Meter Meter Meter Party Meter AB05380M01EL Miltronics Weekly Weekly +/-0.10% AB03328M01 BW500 Prepared by: 700, th Ave. SW, Calgary, AB, T2P 0Z3 Tel: (403) Fax: (403)