Myths or Distractions Is the Global Climate Changing? g Does Man play a significant part in Global Warming? Are CO2 emissions the proper measuring sti

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1 Greenhouse Gas Emissions i Inventory Development FPA Environmental Summit Bobby Cullom January 2009

2 Myths or Distractions Is the Global Climate Changing? g Does Man play a significant part in Global Warming? Are CO2 emissions the proper measuring stick? Can the world come together to tackle this Global issue? Are there technical or societal restrictions to our efforts to correct the problem?

3 Answers: For the purpose p of this discussion We shall agree to the following: 1. The Global Climate is constantly changing. 2. The other questions are irrelevant.

4 Back to the Basics - Definitions What is an Emission Inventory? The collection and calculation lation of data to quantify the amount of specific emissions or pollutants released to the environment from a location.

5 How does a Greenhouse Gas Emission Inventory Differ from a Standard d Emission i Inventory? Emissions = Emission Factor * Throughput It Doesn t! There may be more variables or pollutants to sum for greenhouse gases, but tth the concepts and processes are identical.

6 What are some factors driving GHG inventory reporting? Kyoto Protocol (United Nations Framework on Climate Change) Federal / State /Local Regulatory Requirements The EPA Climate Registry 21 State Climate Action Plans Cities for Climate Protection

7 What are some factors driving GHG inventory reporting? Non-Government Organizations Carbon Disclosure Project (CDP) and others Investment Groups Chicago Exchange Corporate management and marketing How do we compare to our competition? Customers How do we emit per unit product?

8 What are Greenhouse Gases? Carbon Dioxide (CO 2 ) Methane (CH 4 ) Nitrous Oxide (N 2 O) Hydroflourocarbons (HFCs) Perflourocarbons (PFCs) Chloroflourocarbons (CFCs) Sulfur Hexafloride (SF 6 )

9 What are not considered Greenhouse Gases for inventory purposes? Water Vapor Criteria Pollutants (CO, SO 2, NO X, PM) Non-methane VOCs / HAPs Ozone (O 3 ) * The short-lived gases such as water vapor, tropospheric ozone, ozone precursors (e.g., NOx, CO, and NMVOCs), and tropospheric aerosols (e.g., SO2 products) vary regionally, and consequently it is difficult to quantify their global radiative forcing impacts.

10 How do we express total GHG emissions? CO 2 equivalents Emissions of individual GHG s are calculated/estimated and then converted to the equivalent quantity of CO 2 based upon Global Warming Potentials

11 How do we calculate total GHG emissions? i Emissions = Energy/Usage * Emission Factor * Global Warming Potential Emission i Factor Sources: U.S. EPA U.S. Department of Energy Databases Intergovernmental Panel on Climate Change (IPCC) Country specific estimates Third Party Researchers Company or Site Specific Testing Data Chemical Reactions or Stoichiometery GHG Protocol ( World Resources Institute)

12 What are sources of Greenhouse Gases from flexible packaging operations? CO 2 direct emissions Generation from chemical reactions, liquid/gas usage, tanks Fuel Combustion Boilers, dryers, forklifts, or vehicles Energy Usage Electricity, steam, or heat HFCs/CFCs/PFCs emissions/losses Chillers, AC units, firefighting, aerosols SF 6 releases from electrical equipment VOC/HAP Combustion (emission control devices)

13 What are the keys principles to completing an GHG inventory? 1) Relevance (Conveys the right information/boundary) 2) Completeness b d 2) Completeness (All information within boundary) 3) Consistency (Methodologies / in comparison) 4) Transparency (Assumptions, information & sources) 5) Accuracy (Reduce uncertainties) t es) 5)

14 What are the keys principles to completing an GHG inventory? 1) Relevance (Conveys the right information/boundary) 2) Completeness b d 2) Completeness (All information within boundary) 3) Consistency (Methodologies / in comparison) 4) Transparency (Assumptions, information & sources) 5) Accuracy (Reduce uncertainties) t es) 5)

15 1) Relevance 1) How do you define the boundaries? Manufacturing operations / warehouses / offices Transportation (sales travel / airline / employee travel to plant) Transportation (raw materials /products) Are upstream / downstream operations included? Individual plant versus Global operations Are joint ventures included? New acquisitions/plant i i closures Does the purpose or report define any boundaries? (ie CDP) Are Direct (fuel usage) and Indirect sources (electricity usage) differentiated?

16 1) Relevance 1) How do you select emission factors? U.S. EPA (i.e. AP-42, E-Grid, ect) U.S. Department of Energy Databases Intergovernmental Panel on Climate Change 3 rd party sources (i.e. Leonardo Academy) Chemical reaction mechanisms / mass balance How often do emission factors change over time?

17 What are the keys principles to completing an GHG inventory? 1) Relevance (Conveys the right information/boundary) 2) Completeness b d 2) Completeness (All information within boundary) 3) Consistency (Methodologies / in comparison) 4) Transparency (Assumptions, information & sources) 5) Accuracy (Reduce uncertainties) t es) 5)

18 2) Completeness 2) How do you account for and report all GHG emissions sources and activities within the chosen inventory boundary? Are any specific exclusions specified and justified?

19 What are the keys principles to completing an GHG inventory? 1) Relevance (Conveys the right information/boundary) 2) Completeness b d 2) Completeness (All information within boundary) 3) Consistency (Methodologies / in comparison) 4) Transparency (Assumptions, information & sources) 5) Accuracy (Reduce uncertainties) t es) 5)

20 3) Consistency 3) Do methodologies to allow meaningful comparison of emissions over time? Are any changes to the data, inventory boundary, methods, or any other relevant factors in the time series documented?

21 What are the keys principles to completing an GHG inventory? 1) Relevance (Conveys the right information/boundary) 2) Completeness b d 2) Completeness (All information within boundary) 3) Consistency (Methodologies / in comparison) 4) Transparency (Assumptions, information & sources) 5) Accuracy (Reduce uncertainties) t es) 5)

22 4) Transparency 4) Disclose any relevant assumptions boundaries or omissions Make appropriate references to the accounting and calculation methodologies and data sources used. Can the information be verified Internally or by a 3 rd party (audited)

23 What are the keys principles to completing an GHG inventory? 1) Relevance (Conveys the right information/boundary) 2) Completeness b d 2) Completeness (All information within boundary) 3) Consistency (Methodologies / in comparison) 4) Transparency (Assumptions, information & sources) 5) Accuracy (Reduce uncertainties) t es) 5)

24 5) Accuracy 5) Data should be sufficiently precise to enable intended users to make decisions with reasonable assurance that the reported information is credible. Do not over or under report values Minimize uncertainty in calculations. Use appropriate references to the accounting and calculation methodologies and data sources.

25 Sample Calculations Assumptions: The facility only fires natural gas as a fuel. Used for process and comfort heating. No emission controls are present.

26 Sample Calculations: Using AP-42 factors The proposed p facility used 35,000,000 scf of Natural Gas during year. CO 2 Emissions: 35,000,000 ft 3 NG 10 6 scf Natural Gas 120,000 lb CO2 year 1,000,000 ft 3 NG 10 6 scf Natural Gas = 4,200, lb CO 2 /year = 2,100 tons per year CO 2 Other Notable Greenhouse gases from the combustion of natural gas include N 2 O and Methane. * Using U. S. EPA AP-42 CO2 emission factors for natural gas combustion for Stationary External Combustion Sources (1998).

27 GHG s From Natural Gas Combustion (cont.) N 2 O Emissions: 35,000,000 ft 3 NG 10 6 scf Natural Gas 2.2 lb N 2 O year 1,000,000 ft 3 NG 10 6 scf Natural Gas = 77 lb N 2 O/ /year To convert to CO 2 equivalents, multiply the emissions by the global warming potential of N 2 2O. 1 lb. N 2 O is equivalent to 310 lbs. of CO 2 77 lb N 2 O 310 lb CO 2 eq. = 23,870 lbs. CO 2 eq. / year year 1 lb N 2 O * Using U. S. EPA AP-42 CO2 emission i factors for natural gas combustion for Stationary External Combustion Sources (1998).

28 GHG s From Natural Gas Combustion (cont.) Methane Emissions: 35,000,000 ft 3 NG 10 6 scf Natural Gas 2.3 lb Methane year 1,000,000 ft 3 NG 10 6 scf Natural Gas = lb Methane /year To convert to CO 2 equivalents, multiply the emissions by the global warming potential of Methane. 1 lb. Methane is equivalent to 21 lbs. of CO lb Methane 21 lb CO 2 eq. = 1,690.5 lbs. CO 2 eq. / year year 1 lb Methane * Using U. S. EPA AP-42 CO2 emission i factors for natural gas combustion for Stationary External Combustion Sources (1998).

29 GHG s From Natural Gas Combustion (cont.) Overall: Greenhouse Gas Emissions from the combustion of Natural gas is the sum of the contribution from CO 2, N 2 O, and Methane. GHG = 4,200,000 lb CO ,870 lbs. CO 2 eq + 1,691 lbs. CO 2 eq year year year Emissions GHG s = 4,225,561 lbs. CO 2 eq /year = 2,113 tons CO 2 eq /year 0.6% due to emissions other than CO 2

30 From AP-42

31 From IPCC Global Warming Potentials

32 2007 Summary Direct versus Indirect Emissions - CO2 Equivalents (MT) Indirect Emissions (67%) Direct Emissions (33%) Propane 2.40% Natural Gas 26.22% Fuel Oil 3.36% 2007 Global Energy Distribution (MWh) Coal/Coke 0.00% Gasoline 0.11% Electricity 67.91% Electricity Fuel Oil Natural Gas Propane Gasoline Coal/Coke Propane 1.06% Gasoline 0.05% Natural Gas 9.22% 2007 Global GHG Emissions Estimates - CO2 Eq. SF % Fuel Oil 2.06% Electricity 66.75% Electricity Fuel Oil Natural Gas Propane Gasoline Coal/Coke SF6

33 2006 Boundaries Based upon IPCC GHG Protocol methodology Based upon CDP instructions and guidance. Eti Estimate t includes Manufacturing operations & most warehouses and offices No upstream / downstream operations included Estimate excludes Some office and warehouse locations Transportation (sales travel / airline / employee travel to plant) Transportation (raw materials /products) CFCs, HFCs, PFCs excluded by reporting system (CDP) VOC combustion

34 2007 Boundaries Based upon IPCC GHG Protocol methodology Based upon CDP instructions and guidance. Estimate includes Manufacturing operations & warehouses No upstream / downstream operations included VOC combustion included Direct CO 2 usage / generation (from processes) Estimate excludes Some office locations Transportation (sales travel / airline / employee travel to plant) Transportation (raw materials /products) CFCs, HFCs, PFCs excluded by reporting system (CDP) CO 2 from fire suppression equipment

35 Useful Websites / References International Panel on Climate Change (IPCC) Greenhouse Gas Protocol Initiative U.S. EPA Greenhouse Gas Inventories p / t h / mi i n /ind html