Community Advisory Panel Environment - TIS Greenhouse Gas Emissions Mississauga Cement Plant 1 07-02-2017 Richard Lalonde
Technical Information Session - Welcome CRH is pleased to host this Technical Information Session (TIS) as part of our ongoing commitment to transparency and education. The TIS will provide details: on the cement making process and the aspects of our operations and related greenhouse gas emissions. on the emission reporting, carbon credit allocation and compliance requirements for the plant under Ontario s Cap and Trade System. The intent of the TIS is to share information and facilitate dialogue. Questions you may have throughout the session are encouraged for clarification or other interests or concerns you may have. 2 07-02-2017 Richard Lalonde
TIS Agenda CRH Environmental Policy Cement Making process Greenhouse Gas (GHG) Emissions from Cement Manufacturing Calculating and Reporting GHGs Cap and Trade System: Allocation of Credits Meeting our Carbon Obligations Opportunities to Reduce GHG Emissions Potential Funding Opportunities 3 07-02-2017 Richard Lalonde
Environmental Policy CRH Canada CRH Canada is committed to responsible stewardship of the natural environment. We seek to minimize natural resources consumption, waste, and adverse environmental impacts while optimizing the use of technology and pursuing the achievement of our economic objectives. In pursuit of this environmental policy, we are committed to the following: Management systems We apply environmental management guidelines and standards and monitor our performance. We commit to meeting all governmental requirements and strive to exceed them. We promote our commitment through training and integration into business processes. Resources utilization We promote eco-efficiency, conservation of non-renewable natural resources and recovery of secondary materials. We invest in the development of innovative and sustainable products and processes. Environmental impacts We measure our performance, continuously improve and promote best practices in our industry. We manage and conduct our operations in an environmentally sound manner and implement effective controls to reduce or eliminate the release of pollutants to the environment. Stakeholder engagement We engage our stakeholders and report publicly on compliance, performance and progress.
Environmental Policy CRH Global At the corporate level, CRH is committed to the highest standards of environmental management in all of our activities and to proactively addressing the challenges and opportunities of climate change. In all our activities, increasing energy efficiency and reducing CO 2 emissions remains a major focus. CRH sees climate change and high energy costs as twin innovative driving forces of the future and we recognise that the challenges of today can quickly become the opportunities of tomorrow. http://www.crh.com/sustainability/sustainability-incrh/environment-climate-change 5 28-07-2015 Presenter's name
Climate Change CRH Position Climate change CRH is committed to playing its part in developing practical solutions at national, regional and global levels. CRH is very actively addressing the challenges of climate change through specific CO 2 reduction programs in its worldwide operations. CRH is a core member of the Cement Sustainability Initiative (CSI) of the World Business Council for Sustainable Development (WBCSD), and actively supports its pioneering work in developing and promoting industry solutions. CRH has endorsed the WBCSD Low Carbon Technology Partnership Initiative (LCTPi), a statement of ambition, which seeks a reduction in global cement CO 2 emissions in the range of 20 25% by 2030. 6 28-07-2015 Presenter's name
Cement Making Process 7 28-07-2015 Presenter's name
Cement Making Process Extraction All limestone for Mississauga comes from Ogden Point Quarry. Limestone is blasted, crushed and shipped by boat. The boat makes 4-5 trips per week with loads of approx. 19,000 tonnes. 8 28-07-2015 Presenter's name
Cement Making Process Raw Grinding Raw materials are offloaded and transported to material stockpiles. Limestone is ground with shale to produce raw meal that is uniform in size and chemistry. 310 tonnes per hour. 9 28-07-2015 Presenter's name
Cement Making Process Raw Grinding 10 28-07-2015 Presenter's name
Cement Making Process Kiln Processing Raw meal enters the preheater, precalciner kiln. Kiln burning zone temperatures exceed 1,450 C. In the kiln, raw meal becomes partially molten and results in the formation of new minerals. The white hot substance that exits the kiln is called clinker. The kiln is monitored by a sophisticated control system. 11 28-07-2015 Presenter's name
Cement Making Process Kiln Processing 12 28-07-2015 Presenter's name
Cement Making Process Cement Grinding General purpose cement is composed primarily of clinker blended with gypsum and/or limestone. Grinding occurs within the cement mills with cascading steel balls. 160 tonnes per hour capacity. The entire process is strictly monitored and carried out with rigorous environmental, process and quality parameters. 13 28-07-2015 Presenter's name
Cement Making Process Cement Grinding 14 28-07-2015 Presenter's name
GHGs A greenhouse gas (GHG) is any gaseous compound in the atmosphere that is capable of absorbing infrared radiation, thereby trapping and holding heat in the atmosphere. Ontario and Canada require facilities to report on the following GHGs: Carbon dioxide (CO 2 ); Methane (CH 4 ); Nitrous oxide (N 2 O); Sulphur hexafluoride (SF 6 ); Hydrofluorocarbons (HFCs); and Perfluorocarbons (PFCs) GHGs are reported together as CO 2 e (CO 2 equivalent). CRH Mississauga emits CO 2, Methane and Nitrous oxide. 15 28-07-2015 Presenter's name
GHGs - Cement Manufacturing Kiln Processing Process Emissions Combustion Emissions 16 28-07-2015 Presenter's name
GHGs Cement Manufacturing In Ontario, the cement industry emits approximately 3-4 million tonnes of CO 2 per year, or about 2% of Ontario s emissions. ~60% of cement emissions are generated by the calcination of limestone. The calcination of limestone - The resulting reaction produces lime (CaO) and carbon dioxide. A simplified version of this reaction can be expressed as CaCO 3 CaO + CO 2 Process Emissions ~40% of cement emissions are generated by the combustion of [fossil] fuel The combustion of fuel When a hydrocarbon is combusted with oxygen, the resulting reaction releases thermal energy as well as water and carbon dioxide molecules. A simplified version of this reaction can be expressed as C x H y + n O 2 (y/2) H 2 O + x CO 2 Combustion Emissions 17 07-03-2017 R. Lalonde
Calculating and Reporting GHGs in Ontario O.Reg. 452 sets out the requirements for emission calculations. All cement plants are required to calculate their emissions the same way. In accordance with this Guideline, emissions are based on a series of emission factors for a wide range of process materials and fuel types used in the clinker manufacturing process. GHG emissions are verified by a 3 rd -party auditor and submitted to the government. 18 07-03-2017 R. Lalonde
Calculating and Reporting GHGs in Ontario CRH constantly monitors the chemical and physical properties of the raw material and fuels entering the system, as well as the products and by-products. Process emissions are calculated based on: Clinker production rates; Determining the weight content of the minerals calcium and magnesium in the clinker; The weight of non-calcined calcium oxide (CaO) and magnesium oxide (MgO) in the clinker and cement kiln dust (CKD); quantity of raw materials consumed (i.e. limestone, sand, shale, iron oxide, alumina, and non-carbonate raw materials); and The amount of cement kiln dust generated. 19 28-07-2015 Presenter's name
Calculating and Reporting GHGs in Ontario Fuel emissions are calculated based on: The amount fuels combusted (Coal, petcoke, natural gas, bunker C oil, solvents/oils). CO 2, CH 4, and N 2 O emissions from fuel combustion. Coal storage Methane (CH 4 ) emissions are calculated based on: emission factors for each type of coal stored (as defined in the methodology). 20 28-07-2015 Presenter's name
Cap and Trade System: Allocation of Credits Ontario will reduce the number of total allowance that will be created and allocated each year. Facilities are issued free allocations each operating year based on the performance of the facility 2-year s earlier (t -2 ). Cement production includes the amount of clinker produced plus the amount of gypsum and limestone added to the clinker to produce cement. CRH Slag Cement is not defined as cement for the purposes of the Cap and Trade System. The amount of allocations issued will reduce over time, based on a defined declining factor (4.57%/year on fuel CO2 emissions during the first compliance period). CRH will receive fewer and fewer allocations each year. 21 07-03-2017 R. Lalonde
Meeting our Carbon Obligations Obtaining Credits At the end of a compliance period, CRH will need to cover the difference between the GHG emissions they ve generated and the allocations they had been issued over that period. GHGs emitted Allocations received = Compliance Obligation If more GHGs were emitted than allocations received, there are 3 ways the required credits can be obtained: Auction Secondary Market Carbon Offset Credits Facilities that are able to reduce their GHG emissions below the amount of allocations they ve received can sell their credits on the secondary market. 22 07-03-2017 R. Lalonde
Meeting our Carbon Obligations Offset Credits Offset credits may be generated for projects that effectively reduce or remove greenhouse gas levels in the environment. Ontario is currently considering adapting the following protocols: Landfill Gas Capture and Destruction Mine Methane Capture and Destruction Ozone Depleting Substances Capture and Destruction N2O Reductions from Fertilizer Management Emission Reductions from Livestock Organic Waste Digestion Organic Waste Management Forest Project (reforestation, avoided conversion, and improved forest management) Afforestation Urban Forest Project Grassland Conservation Cropping Refrigeration Systems 23 07-03-2017 R. Lalonde
Meeting our Carbon Obligations - Looking to the Future In accordance with CRH policies, the direction of Ontario and several jurisdictions, as well as the cement industry, CRH is committed to producing high quality cement products while reducing the amount of coal and GHGs at Mississauga. Ontario has initiated the development of the requirements for the Cap and Trade System s 2 nd compliance period (2021-2030). CRH will provide comments to the government as the process for the regulatory developments is ongoing. 24 28-07-2015 Presenter's name
Opportunities to Reduce GHG Emissions The Mississauga Plant is considering a number of future projects to reduce coal usage and GHG emissions, and to increase energy efficiency. In general, the cement industry can reduce GHG emissions by: Producing Lower-carbon Cement Utilizing a Carbon-Capture technology Using Low-Carbon Fuels 25 07-03-2017 R. Lalonde
Opportunities to Reduce GHG Emissions Producing Lower-carbon Cement Portland Limestone Cement (PLC) has been used in Europe for more than 25 years. It is relatively new to Canada. Regular Portland Cement may contain up to 5% limestone. PLC is made by intergrinding Portland cement clinker with 6-15% limestone, allowing for production of cement with less clinker (potential for up to 10% reduction in GHG emissions per tonne of cement produced). The clinker manufacturing process is the predominant source of GHG emissions at a cement plant. The cement industry in Canada is also looking to align CSA product standards with European Standards ( that allow <30% limestone). 26 07-03-2017 R. Lalonde
Opportunities to Reduce GHG Emissions Utilizing Carbon-Capture Technology Incorporation of a carbon capture technology into the kiln gas exhaust system to recover/capture CO 2 emissions, with associated purification and handling systems. Pilot-scale carbon capture technologies under consideration include: Algae, Calcium looping, Amine Scrubbing, Direct Capture technologies Based on current technologies and applicable project scales, reasonable potential to capture an estimated 5,000 10,000 tonnes per year of CO 2. 27 07-03-2017 R. Lalonde
Opportunities to Reduce GHG Emissions Low-Carbon Fuels Modify plant infrastructure to allow for the receipt, handling, storage and use of low-carbon fuels, in order to replace coal. An excellent resource is the white paper titled, Alternative Fuel Use in Cement Manufacturing Implications, opportunities and barriers in Ontario, written by The Pembina Institute and Environmental Defence in 2014. Any potential Low Carbon Fuel needs to meet essential manufacturing criteria for the four major components of cement: calcium, iron, aluminum and silica. Other important factors include availability, price, incentives and regulatory constraints. (The Pembina Institute and Environmental Defence, 2014) LCFs being considered in Ontario include cellulose shingles, railroad ties and telephone poles, non-recyclable or composite plastics, tire recycling fluff, municipal solid waste, off-specification products.. (The Pembina Institute and Environmental Defence, 2014) 28 07-03-2017 R. Lalonde
Opportunities to Reduce GHG Emissions Low-Carbon Fuels The cement industry is eager to continue its efforts to reduce greenhouse gas emissions. Shifting to lower-carbon fuels is the single most effective mechanism to achieve these emissions reductions. Bringing Ontario s regulatory framework for alternative fuels in line with leading practices globally will help provide the certainty needed to support significant investments in Ontario s plants, bridge the gap with Europe and other jurisdictions (where fuel substitution rates are over ten times higher than in Ontario), and make a significant contribution to Ontario s GHG reductions goal. - Cement Association of Canada, Sept. 26, 2014 29 07-03-2017 R. Lalonde
Region of Peel - Update The Region continues to assess the potential option to create a consistent, low-carbon fuel (LCF) for industrial facilities in support of their waste management system. CRH is supporting the Region s investigation of this potential option by providing technical expertise and worldwide experience on the applicable physical and chemical quality requirements and analytical methods. The next step in the investigation of this option is for CRH to analyze samples of various LCFs generated from the Region s waste in the plant s laboratory equipment to analyze fuels currently used at the plant. The results from CRH s analyses and other external information will increase the Region s understanding of the potential to divert a portion of the remaining waste from landfill disposal, as a LCF. 30 04-10-2016 Richard Lalonde
Potential Funding Opportunities Ontario has committed to using the proceeds from the Cap & Trade system to invest in initiatives that will reduce GHGs. CRH will look to apply for funding for applicable projects. For example, the Ontario Centres of Excellence currently is assessing applications under their TargetGHG Program. The program is supported by the Ontario government with $74 million in funding from its Ontario Green Investment Fund, which is dedicated to projects that reduce greenhouse gas emissions, increase energy efficiency, support cleantech innovation and drive job creation and economic development. (Ontario Centres of Excellence, 2017) CRH has not applied under the TargetGHG Program. 31 07-03-2017 R. Lalonde
Continued Stakeholder Engagement CRH will continue to engage the CAP related to the plant s operation and future planning. In addition to communication directly with the CAP, CRH will engage local stakeholders through: CRH Website Social Media Meetings with regulatory agencies Etc. 32 28-07-2015 Presenter's name
Technical Information Session Open Floor Questions? Comments? Discussion? Thank you 33 04-10-2016 Richard Lalonde