Alberta Distillers Energy Efficiency Upgrade Project

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Alberta Distillers Energy Efficiency Upgrade Project Greenhouse Gas Emissions Reduction Offset Project Report For the Period January 1, 2012– July 31, 2017 FINAL REPORT 1 November 2017 Prepared by: Blue Source Canada ULC (Project Contact) Suite 1605, 840-7 th Avenue SW Calgary, Alberta T2P 3G2 T: (403) 262-3026 F: (403) 269-3024 www.bluesourceCAN.com Prepared for: Alberta Distillers Limited (Project Proponent) 1521 34 Ave SE Calgary, Alberta T2G 1V9 T: (403) 265-2541 www.beamglobal.com

Transcript of Alberta Distillers Energy Efficiency Upgrade Project

Alberta Distillers Energy Efficiency Upgrade Project

Greenhouse Gas Emissions Reduction

Offset Project Report For the Period January 1, 2012– July 31, 2017

FINAL REPORT

1 November 2017

Prepared by: Blue Source Canada ULC (Project Contact) Suite 1605, 840-7th Avenue SW Calgary, Alberta T2P 3G2 T: (403) 262-3026 F: (403) 269-3024 www.bluesourceCAN.com

Prepared for: Alberta Distillers Limited (Project Proponent) 1521 34 Ave SE Calgary, Alberta T2G 1V9 T: (403) 265-2541

www.beamglobal.com

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Contents Contents ........................................................................................................................................................ 2

List of Tables ................................................................................................................................................. 2

List of Figures ................................................................................................................................................ 3

List of Abbreviations ..................................................................................................................................... 3

1 PROJECT SCOPE AND PROJECT DESCRIPTION ....................................................................................... 4

2 PROJECT CONTACT INFORMATION ....................................................................................................... 6

3 PROJECT DESCRIPTION AND LOCATION ................................................................................................ 7

4 PROJECT IMPLEMENTATION AND VARIANCES ..................................................................................... 8

5 REPORTING PERIOD .............................................................................................................................. 8

6 GREENHOUSE GAS CALCULATIONS ....................................................................................................... 8

6.1 Baseline Condition .................................................................................................................... 9

6.2 Natural Gas Regression Analysis ............................................................................................... 9

6.3 SS B1/P1 (Fuel Extraction and Processing) .............................................................................. 10

6.4 SS B4/P4 (Generation of Heat and Power) ............................................................................. 11

6.5 Electricity Regression Analysis ................................................................................................ 11

6.6 SS B10/P10 (Electricity Usage) ................................................................................................ 12

7 GREENHOUSE GAS ASSERTION ........................................................................................................... 13

8 OFFSET PROJECT PERFORMANCE ....................................................................................................... 15

9 PROJECT DEVELOPER SIGNATURES ..................................................................................................... 16

10 STATEMENT OF SENIOR REVIEW .................................................................................................... 17

11 REFERENCES .................................................................................................................................... 18

Appendix A – Credit Extension Approval Letter.......................................................................................... 19

List of Tables TABLE 1. MULTIPLE LINEAR REGRESSION RESULTS FOR NATURAL GAS CONSUMPTION IN THE HISTORIC PERIOD

(2000-2004) WITH HDDS AND LAAS. .................................................................................................................. 10

TABLE 2. REGRESSION STATISTICS FOR HISTORIC ELECTRICITY CONSUMPTION (MWH) AND LAA PRODUCTION

(2000-2004)......................................................................................................................................................... 12

TABLE 3 - EMISSION FACTORS USED FOR THE ALBERTA DISTILLERS ENERGY EFFICIENCY PROJECT (2012-2017). ..... 13

TABLE 4 - OFFSET TONNES CREATED BY THE PROJECT PER YEAR. ............................................................................... 14

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List of Figures FIGURE 4 - CREDITS CREATED BY THE PROJECT, BY VINTAGE YEAR ............................................................................ 15

List of Abbreviations ACCO Alberta Climate Change Office

AEOR Alberta Emissions Offset Registry

AER Alberta Energy Regulator

AENV Alberta Environment (now Alberta Climate Change Office)

AESRD Alberta Environment & Sustainable Resource Development (now Alberta Climate

Change Office)

AEUB Alberta Energy and Utilities Board

AEP Alberta Environment and Parks (previously Alberta Environment & Sustainable Resource

Development)

Blue Source Blue Source Canada ULC

CH4 Methane

CO2 Carbon Dioxide

CO2e Carbon Dioxide-equivalent

ERCB Energy Resources Conservation Board

GHG Greenhouse gas

GWP Global Warming Potential

HFC Hydrofluorocarbon(s)

LAA Litres of Absolute Alcohol

N2O Nitrous Oxide

PFC Perfluorocarbon(s)

SGER Specified Gas Emitters Regulation

SS Sources and Sinks

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1 PROJECT SCOPE AND PROJECT DESCRIPTION The project title is: Alberta Distillers Energy Efficiency Upgrade Project

The project’s purpose(s) and objective(s) are:

The opportunity for generating carbon offsets with this project arises from

the direct greenhouse gas (GHG) emission reductions resulting from the

implementation of industrial process changes and facility retrofits that result

in energy efficiencies to reduce fossil fuel combustion for heating and

electricity generation.

Date when the project began:

The Project began on August 1, 2004, and is a result of actions taken on, or

after, August 1, 2004.

Expected lifetime of the project:

The expected lifetime of the Project corresponds to the expected lifetime of

the equipment installed, or until the equipment is retrofitted.

Credit start date: The credit start date for this project is January 1, 2012.

Credit duration period: The original crediting period of the project was from August 1, 2004 to July

31, 2012. During the first reporting period, credits were claimed from August

2004 to December 31, 2011. A 5-year extension was granted in June of 2015,

allowing credit generation from August 1, 2012 to July 31, 2017. Because the

first reporting period only included up to the end of 2011, the entire 2012

period is covered within this second, and final, reporting period for the

project.

Reporting period: January 1st, 2012 to July 31st, 2017.

Actual emissions reductions:

The total project emission reductions as a result of this project since August 1,

2004 (the original Project credit start date) are listed below in carbon dioxide

equivalents (CO2e), with the current and final reporting period italicized:

2004 721 tonnes CO2e/year

2005 3,930 tonnes CO2e/year

2006 3,250 tonnes CO2e/year

2007 3,966tonnes CO2e/year

2008 1,505 tonnes CO2e/year

2009 2,535 tonnes CO2e/year

2010 1,555 tonnes CO2e/year

2011 1,076 tonnes CO2e/year

2012 1,136 tonnes CO2e/year

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2013 3,025 tonnes CO2e/year

2014 2,610 tonnes CO2e/year

2015 2,015 tonnes CO2e/year

2016 3,847 tonnes CO2e/year

To July 31, 2017 1,544 tonnes CO2e/year

Emissions reductions from this final reporting period which covers January 1, 2012 to July 31, 2017 are:

14,175 tonnes CO2e

Total project lifetime reductions: 32,713 tonnes CO2e

Applicable Quantification Protocol(s):

The quantification protocol used is the Quantification Protocol for Energy

Efficiency projects, Version 1, September 2007 (AENV, 2007) published by

Alberta Environment (AENV). There have been no revisions to the protocol

since the credit extension approval was made.

Protocol(s) Justification: The opportunity for generating carbon offsets with this project arises from

the direct greenhouse gas (GHG) emission reductions resulting from the

implementation of industrial process changes and facility retrofits that result

in overall efficiencies in energy use per unit of alcohol productivity.

Other Environmental Attributes:

No other environmental attributes, credits, or benefits are being sought or

created by this Project.

Legal land description of the project or the unique latitude and longitude:

The Project is located in Calgary, Alberta.

Latitude: 51.022872°

Longitude: 114.027167°

Ownership: Alberta Distillers Ltd. is the sole owner of the facility and responsible for

operating all elements of the facility.

Reporting details: This is the second offset report for this project, covering January 1, 2012 to July 31, 2017 following the credit extension granted in 2015.

Verification details: The verifier, GHD, is an independent third-party that meets the requirements

outlined in the Specified Gas Emitters Regulation (SGER). An acceptable

verification standard (e.g. ISO14064-3) has been used and the verifier has

been vetted to ensure technical competence with this project type.

This is the 1st verification carried out by the verifier for this project.

Project activity: This Project meets the requirements for offset eligibility as outlined in section

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3.1. of the Technical Guidance for Offset Project Developers (version 4.0,

February 2013). In particular:

1. The project occurs in Alberta: 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. energy efficiency retrofits) occurs at a non-

regulated facility and is not required by law. The protocol uses a

government approved quantification protocol, which indicates 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 August 1, 2004;

4. The project reductions/removals are real, demonstrable, quantifiable

and verifiable: The Project is creating real reductions that are

demonstrated through directly measured natural gas and electricity

consumption, with 3rd party invoices to support credit claim.

5. The project has clearly established ownership; as discussed above.

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 Developer Contact Information

Alberta Distillers Limited

Don Peters

Chief Engineer & Energy Supervisor

Direct: 403-513-8271

Email: [email protected]

1521-34 Ave SE

Calgary, AB

T2G 1V9

Web: www.beamglobal.com

Authorized Project Contact

Blue Source Canada ULC

Kelsey Locke, AIT

Carbon Solutions Analyst

Phone: 403-262-3026 x228

Fax: 403-269-3024

Suite 1506

840-7th Ave SW

Calgary, AB

T2P2G3

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Email: [email protected]

Web: www.bluesourcecan.com

Verifier

GHD Jack Wallace, P.Eng Co-Lead Verifier Phone: 403-271-2000 Email: [email protected]

Suite 205 3445 114th Avenue SE Calgary, AB T2Z 0K6 Web: www.ghd.com

This is the 1st verification carried out by the verifier for this project.

3 PROJECT DESCRIPTION AND LOCATION The Alberta Distillers Energy Efficiency Upgrade Project (‘the Project’) is located at the Alberta Distillers

Ltd. (ADL) plant in Calgary, Alberta. The Project is owned and operated by the Proponent.

The opportunity to generate offset credits from the Project arises from the direct GHG reductions from

reduced natural gas and electricity demand and consumption achieved through the energy efficiency

retrofits implemented at the distillery during beverage production. In addition, indirect emission

reductions are realized due to avoided use of fossil fuels that would have been required in electricity

generation.

The Quantification Protocol for Energy Efficiency Projects, version 1.0 (September 2007) (‘the Protocol’)

is intended for projects where the opportunity for generating carbon offsets arises from the direct and

indirect reductions of GHG emissions resulting from the implementation of industrial, commercial, and

agricultural process changes and facility retrofits. As a result, overall energy efficiencies in energy use

per unity of productivity – alcohol production – are achieved. Because the process changes may include

mechanical, biological, and/or chemical components of the operation and may impact on-site heat,

electrical and power requirements, the protocol is applicable to the Project.

In 2004, ADL began to improve the boiler operations at the distillery to reduce energy consumption and

improve the overall reliability and performance of the equipment. In July 2004, the burner on Boiler #7

was replaced with a new, more efficient burner. The combustion, level, and steam controls were

upgraded and tied into and controlled by a Programmable Logic Controller (PLC system) and Plantscape

interface. Automation allowed for the use of the excess boiler O2 sensors in the control to maximize the

potential savings through O2 trim. Further, automation improves boiler level control from a single

element (level) to a three element (level, steam flow, and water flow) to reduce carry over issues,

remove obsolete controllers and equipment, and improve steam header pressure control. As a result,

Boiler #7 increased capacity from 45,000 lb/hr to 60,000 lb/hr and the plant is able to run off Boiler #7

alone rather than utilizing multiple boilers. Boiler #7 is able to run the entire plant at a higher efficiency

load instead of running two boilers at less efficient reduced capacity. Now, Boiler #6 that was used along

side Boiler #7 in the past is available on hot standby if needed.

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4 PROJECT IMPLEMENTATION AND VARIANCES As no revisions or additions have been made to the Quantification Protocol for Energy Efficiency

Projects, version 1.0 (Sept 2007), there have been no required methodological changes to the

quantification approach. Emission factors have been updated to the most recent published factor in the

Alberta Carbon Offset Emission Factor Handbook (No.1, 2015).

5 REPORTING PERIOD For the purposes of this project report, the carbon dioxide equivalent (CO2e) emission reduction credits

are claimed for activities from the 1st of January 2012 until the 31st of July 2017 – for a total of nearly 5

years.

6 GREENHOUSE GAS CALCULATIONS GHG emission reductions were calculated following the Quantification Protocol for Energy Efficiency

Projects, version 1.0 (AENV, 2007). The activities and procedures outlined in the original Offset Project

Plan prepared by TransCanada and Leading Caron Ltd. provide a detailed description of the Project’s

adherence to the requirements of the quantification protocol. The formulas used to quantify GHG offset

by the Project are listed below.

Emission Reduction = Emissions Baseline – Emissions Project

Emissions Baseline = Emissions Fuel Extraction & Processing + Emissions Electricity + Emissions Heat & Power Gen

Emissions Project = Emissions Fuel extraction & Processing + Emissions Electricity + Emissions Power Gen

Whereby Emissions Baseline = sum of the emissions under the baseline condition.

(i) Emissions Fuel Extraction & Processing = emissions under SS (B1) Fuel Extraction/ Processing

(ii) Emissions Electricity = emissions under SS (B10) Electricity Usage

(iii) Emissions Power Gen = emissions under SS (B4) Generation of Heat and Power.

Emissions Project = sum of the emissions under the project condition.

(i) Emissions Fuel Extraction and Processing = emissions under SS (P1) Fuel Extraction/ Processing

(ii) Emissions Electricity = emissions under SS (P10) Electricity Usage

(iii) Emissions Power Gen = emissions under SS (P4) Generation of Heat and Power.

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6.1 Baseline Condition

The baseline condition is represented by historical data from January 2000 until December 2004 (4.5-

year period), to generate the dynamic project baseline for 2012 to 2017. The data encompassed litres-

of-absolute-alcohol (LAA) production, electricity, and natural gas consumption records for the historical

period. These sources of data were used to generate two regression analyses described below, in order

to predict natural gas and electricity consumption that were weather and production normalized.

6.2 Natural Gas Regression Analysis

The natural gas consumption of the facility during the project period is dependent on both the LAA

productivity of the facility (e.g. unit of production for functional equivalence) and the weather since

natural gas is the heat source as well as process fuel. Using historical weather data from Environment

Canada with a base temperature of 18°C, a heating degree day (HDD) correction was made to normalize

natural gas consumption data with weather data for the baseline years. HDD data was obtained from

both the Calgary INT’L A and Calgary INT’L CS weather stations – both of which are located near the

Calgary airport – depending on the completeness of the data file for each year. Where there was missing

HDD data for entire months, the alternative station location was used to supplement the data for a

complete yearly record.

A multiple linear regression analysis is a commonly used technique for HDD corrections. Under this

method of analysis, it is assumed that the natural gas consumption of a heated facility is proportional to

the number of HDDs over that period as well as the LAA productivity. To normalize the data, a year’s

worth of monthly degree days and LAA production is plotted along the x-axis against monthly natural

gas consumption (m3) data on the y-axis. The regression line is the line of best fit through the points in

the scatter chart.

Monthly data for gas consumption, HDDs, and LAAs were collected for each month in the selected

historical period, 2000-2004, and a multiple linear regression analysis was performed. The regression

generated a unitless R-Squared “R2” value between 0.0 and 1.0, whereby 1.0 indicates the perfect ‘fit’,

to determine the strength of the relationship between HDDs, LAAs and natural gas consumption.

By multiplying the monthly HDDs in the project years by the slope of the regression line for the

predicted baseline year and adding the y-intercept from the baseline year, the predicted volume of

baseline gas consumed for that month was determined. Therefore, the historical 2000-2004 period was

used to generate ‘regression-predicted’ natural gas consumption data for the dynamic baseline period

to be compared against the metered consumption. The data used in the historic period was derived

from “ATCO” measurements and was the only data source available for those years. For the project

years however, Shell consumption data was used because it contained complete monthly records for all

years.

The resulting regression equation is:

Pred_NGB-201x (m3) = 734.5(HDDPY) + 0.583(LAAPY) – 7337.8

Where,

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Pred_NGB-2001x (m3) = regression predicted dynamic baseline natural gas consumption for the specified

project year

HDDPY = Heating Degree Days in the project year for a specified month

LAAPY = Litres of Absolute Alcohol in the project year for a specified month

The statistics generated by the regression analysis are presented below in Table 1.

Table 1. Multiple linear regression results for natural gas consumption in the historic period (2000-2004) with HDDs and LAAs.

Regression Statistics

Multiple R 0.983364132

R Square 0.967005016

Adjusted R Square 0.965735979

Standard Error 88563.00702

Observations 55

The regression analysis generated a strong correlation between the variables, indicated by the high R2

value of 0.967.

6.3 SS B1/P1 (Fuel Extraction and Processing)

The following calculation is based on Table 2.4 of the Protocol.

Dynamic baseline (B1) emissions were determined through the following calculations.

Emissions of CO2 = (Pred_NGB−201x x EFCO2EX) + (Adj_NG201x x EFCO2P)

Emissions of CH4 = (Pred_NGB−201x x EFCH4EX) (Adj_NG201x x EFCH4P)

Emissions of N2O = (Pred_NGB−201x x EFN2OEX) (Adj_NG201x x EFN2OP)

Where,

Pred_NGB-201x = predicted volume of natural gas consumed (m3) in the baseline condition, generated

using the historic regression formula

EFCO2EX/EFCH4EX/EFN2OEX (tonnes/m3) = Emission factor for natural gas extraction of CO2, CH4, and N2O from

the Carbon Emission Factors Handbook.

EFCO2P/EFCH4P/EFN2OP (tonnes/m3) = Emission factor for natural gas processing of CO2, CH4, and N2O from

the Carbon Emission Factors Handbook.

Project (P1) emissions were determined through the following equations:

Emissions of CO2 = (NG_Pro201x x EFCO2EX) + (NG_Pro201x x EFCO2P)

Emissions of CH4 = (NG_Pro201x x EFCH4EX) (NG_Pro201x x EFCH4P)

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Emissions of N2O = (NG_Pro201x x EFN2OEX) (NG_Pro201x x EFN2OP)

Where,

NG_Pro201x (m3) = Metered natural gas consumption in the project years (2012-2017) as obtained from

Shell consumption data.

EFCO2EX/EFCH4EX/EFN2OEX (tonnes/m3) = Emission factor for natural gas extraction of CO2, CH4, and N2O from

the Carbon Emission Factors Handbook.

EFCO2P/EFCH4P/EFN2OP (tonnes/m3) = Emission factor for natural gas processing of CO2, CH4, and N2O from

the Carbon Emission Factors Handbook.

6.4 SS B4/P4 (Generation of Heat and Power)

The calculation of generation of heat and power emissions also used the volume of natural gas

consumption derived from the multiple linear regression analysis.

Dynamic baseline (B4) emissions were determined through the following calculations.

Emissions of CO2 = Pred_NGB−201x x EFNG−COMB,CO2

Emissions of CH4 = Pred_NGB−201x x EFNG−COMB,CH4

Emissions of CO2 = Pred_NGB−201x x EFNG−COMB,N2O

Where,

Pred_NGB-201x (m3) = predicted volume of natural gas consumed (m3) in the baseline condition, generated

using the historic regression formula

EFNG-COMB, CO2/ EFNG-COMB, CH4/ EFNG-COMB, N2O (tonnes/m3) = Emission factor for natural gas combustion of

CO2, CH4, and N2O from the Carbon Emission Factors Handbook.

Project (P4) emissions were determined through the following equations:

Emissions of CO2 = NG_Pro201x x EFNG−COMB,CO2

Emissions of CO2 = NG_Pro201x x EFNG−COMB,CH4

Emissions of CO2 = NG_Pro201x x EFNG−COMB,N2O

Where,

NG_Pro201x (m3) = Metered natural gas consumption in the project years (2012-2017) as obtained from

Shell consumption data.

EFNG-COMB, CO2/ EFNG-COMB, CH4/ EFNG-COMB, N2O (tonnes/m3) = Emission factor for natural gas combustion of

CO2, CH4, and N2O from the Carbon Emission Factors Handbook.

6.5 Electricity Regression Analysis

A linear regression analysis was also run to determine the relationship between electricity consumption

(MWh) and LAA productivity in the historic period (2000-2004). The regression equation was then used

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to predict the electricity consumption for the dynamic baseline condition of the project, and be

compared against the metered electricity consumption in those years (2012-2017).

The resulting linear regression formula was as follows:

Pred_E201x = 0.000957(LAAPY)+306.9

Where,

Pred_E201x = Predicted baseline electricity consumption (MWh) using the historic regression equation.

LAAPY = LAA productivity in the project year for a given month

The statistics for the regression are presented below in Table 2.

Table 2. Regression statistics for historic electricity consumption (MWh) and LAA production (2000-2004).

Regression Statistics

Multiple R 0.980632262

R Square 0.961639633

Adjusted R Square 0.960915852

Standard Error 115.0033122

Observations 55

Similar to the natural gas regression, the R2 value of 0.962 indicates a strong relationship between

electricity consumption and LAA production.

6.6 SS B10/P10 (Electricity Usage)

The calculation of electricity usage emissions used the predicted electrical consumption (MWh) derived

from the linear regression analysis above.

Baseline (B10) emissions, in CO2e, were determined using the following equation:

Emissions of CO2e = Pred_EB−201x x EFE−CON,CO2𝑒

Where,

Pred_EB-201x (MWh) = Predicted electricity consumption in the baseline year determined from the historic

regression analysis.

EFE-CON,CO2e (tonnes CO2e) = Emission factor from the Handbook for electricity consumption on-site in

Alberta.

Similarly, project (P10) emissions in CO2e were determined through the following equation:

Emissions of CO2e = E_Pro201x x EFE−CON,CO2𝑒

Where,

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E_Pro201x (MWh) = Billed electricity consumption in the specified project year.

EFE-CON,CO2e (tonnes CO2e) = Emission factor from the Handbook for electricity consumption on-site in

Alberta.

For the historic year 2000, used in the electricity regression analysis, billed electricity consumption data

was not available; therefore, metered consumption was used instead. For the remaining historic years

(2001-2004), billed data was used to maintain consistency with the data source used in the initial project

reporting period.

Table 3 provides the emission factors used for the Project calculations.

Table 3 - Emission factors used for the Alberta Distillers Energy Efficiency Project (2012-2017).

Parameter Relevant SS

CO2 Emission

Factor

CH4 Emission

Factor

N2O Emission

Factor

CO2e Emission

Factor

Emission Factor Source

Natural Gas Combustion (Industrial)

B4/P4 1.918 kg/m3

0.000037 kg/m3

0.000033 kg/m3

- Carbon Offset

Emission Factors

Handbook, Version 1.0 March 2015

Natural Gas Extraction

B1/P1 0.043 kg/m3

0.0023 kg/m3

0.000004 kg/m3

-

Natural Gas Processing

B1/P1 0.090 kg/m3

0.0003 kg/m3

0.000003 kg/m3

-

On-site Electricity

Consumption

B10/P10 - - - 0.64

tonnes/MWh

7 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 (CO2, CH4, N2O, SF6, HFCs, and PFCs) applicable to the Project and

total emissions reported as CO2e. The total in units of tonnes of carbon dioxide equivalent (CO2e) 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. As shown, the Project created

14,186 tonnes of GHG reductions in the reporting period, from January 1, 2012 to July 31, 2017.

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Table 4 - Offset tonnes created by the Project per year1.

Year Greenhouse Gas Reductions in tonnes CO2e

CO2 CH4 N2O PFCs HFCs SF6 CO2e Total

VY 2012 848.8 27.3 4.9 n/a 254.8 1,135.8

VY 2013 2,303.0 73.4 13.4 n/a 634.1 3,023.9

VY 2014 1,892.0 60.8 11.0 n/a 646.4 2,610.1

VY 2015 1,228.5 39.5 7.1 n/a 739.4 2,014.5

VY 2016 2,803.9 90.1 16.3 n/a 936.3 3,846.6

January 1, 2017 – July 31, 2017

1,287.0 41.4 7.5 n/a 207.8 1,543.6

Total Reductions 10,363.2 332.4 60.2 0 3,418.8 14,175

1 Emission reductions per GHG species, as shown in table, are subjected to rounding errors and may not work to

total tonnages displayed; however, the GHG assertion is correct.

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8 OFFSET PROJECT PERFORMANCE The Project created credits in eight previous vintage years, prior to the 2012-2017 reporting period.

Figure 1 shows the credits created by the Project annually for its full 8-year crediting duration starting

August 1, 2004 and ending on December 31, 2011 in addition to the 5-year extension period

encompassed within this report.

Figure 1 - Credits Created by the Project, by Vintage Year

The total credits generated during the first crediting period (2004-2011) were 18,538 tonnes of CO2e.

Comparatively, total credits in the second reporting period (2012-2017) were tonnes 14,175 CO2e. The

average credit volume per year was 2,471 tonnes in the first project period; whereas the average

volume per year in the current reporting period is 2,579 tonnes, an increase of 4.3%.

The trend in offset volume created per year corresponds to the trends in natural gas and electricity

consumption, as well as LAA production per year. All three variables were lowest in 2012, and highest in

2016, as indicated by subsequent offset volume in those years.

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Vintage Year

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10 STATEMENT OF SENIOR REVIEW This offset project report was prepared by Kelsey Locke, Blue Source Canada and reviewed by Tooraj

Moulai, 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:

Kelsey Locke Carbon Solutions Analyst November 1, 2017

Tooraj Moulai Senior Engineer, Carbon Services November 1, 2017

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Prepared by: Blue Source Canada ULC 1506, 840-7th Ave. SW, Calgary, AB, T2P 2G3 Tel: (403) 262-3026 Fax: (403) 269-3024

11 REFERENCES Alberta Environment and Sustainable Resource Development, 2013, Technical Guidance for Offset

Project Developers - Version 4.0, February 2013.

Alberta Environment and Sustainable Resource Development, 2015, Carbon Offset Emission Factor

Handbook – Version 1.0, March 2015.

Alberta Environment and Sustainable Resource Development, 2007, Quantification Protocol for Energy

Efficiency Projects (September 2007, Version 1).

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Appendix A – Credit Extension Approval Letter

Air and Climate Change Policy Branch 12

th Floor, Baker Centre

10025 106 Street Edmonton, Alberta T5J 1G4 Canada Telephone: 780-427-5200 www.alberta.ca

June 11, 2015 Aleena Dewji, Blue Source Canada Suite 700, 717 – 7th Avenue SW, Calgary, Alberta T2P 0Z3 Subject: Alberta Distillers Energy Efficiency Upgrade Project: Request for Crediting Extension Period Approval Dear Mrs. Dewji,

Alberta Environment and Parks has received a 5-year extension request for the Alberta Distillers Energy Efficiency Upgrade Project, project 3520-5876, under the Quantification Protocol for Energy Efficiency, Version 1, September 2007. The original 8 year crediting period was from July 2004 to July 2012, and therefore the extension period for this project is from August 2012 to July 31, 2017. Please direct any questions you may have to [email protected]. Sincerely, John Storey-Bishoff Acting Section Head, Climate Change Regulatory and Mitigation Policy Alberta Environment and Parks cc – Alberta Emissions Offset Registry