Roadmap to Carbon Neutrality

October 30, 2008

Overview

• Climate change and buildings• BC policy context and legislative requirements• Emissions management & financial risk• Getting to carbon neutral• Strategies, technology options, and case studies

The Carbon Issue

Climate change is a global issue. Consequences include rising sea levels, more extreme weather events, water shortages, changing disease vectors and millions of refugees.

Climate Change and Buildings

Source: Energy Information Administration Statistics (Architecture 2030)

Where Do We Need to Go?

Source: Mazria Inc. 2005 (Assumes a 15% embodied energy reduction in the construction of new buildings) (Architecture 2030)

Endorsed by ASHRAE, AIA, USGBC, RAIC, & others.At a minimum, an equal amount of existing building area shall be renovated annually to meet a fossil fuel, GHG-emitting, energy consumption performance standard of 50% of the regional (or country) average for that building type. • 2010 60% reduction• 2015 70% reduction• 2020 80% reduction • 2025 90% reduction• 2030 100% reduction

2030 Challenge

Trends

Goal to have Net Zero Energy economical to build by 2030

ASHRAE 2008 Conference: Net Zero Energy

Trends

2008 BC Climate Action Plan:• Bill 44 - legislated emissions targets (33% by 2020, 80% by 2050)• Comprehensive Carbon Tax• Cap and Trade System (Western Climate Initiative)• Carbon Neutral public sector by 2010 (covers 6,500 provincial

buildings)• New BC Green Building Code – Energy and Water efficiency• All new provincial buildings = LEED Gold or equivalent

British Columbia – Leading the Way

BC Energy Plan• Electrically self-sufficient by 2016• Zero net GHG emissions from all new plants• Maintain 90% clean power target• Meet 50% of reductions through conservation by 2020

Public Sector Energy Conservation Agreement• Conservation targets (5% by 2011, 14% by 2016, 20% by 2020)• Alternative energy options

British Columbia – Leading the Way

BC Hydro – Significant Changes Coming:

Local Government

More than 100 municipalities voluntarily committed to: • Measuring and reporting annual GHG emissions• Meeting Provincial GHG reduction targets• Carbon Neutral operations by 2012• Creating complete, compact energy efficient communities • Community energy planning as part of OCP process

BC Climate Action Charter

Proposal Calls for Carbon Management• Post-secondary Institutions

• Health Authorities

• School Boards

• Municipalities and Regional Districts

• Private sector organizations

Industry Trends

Terms

• GWP (Global Warming Potential – a number that reflects how much damage a GHG can do)

• CO2e (the sum of the carbon equivalent of all greenhouse gases – takes into account the GWP of each one)

• Metric tonnes (1 MT CO2e = 1,000 kg CO2e)

• kg CO2e / m2 (GHG per floor area; a means of generalizing the value to make comparisons size-independent)

A Few Definitions…

• Emissions factors are a measure of GHG emissions per unit of energy consumption (typical units are CO2e / kWh)

• Environment Canada is recognized authority• Range of Protocols to govern emissions quantification and

reporting• GHG Protocol (World Resources Institute / WBCSD)• Canadian GHG Challenge Registry (CSA)• California Climate Action Registry

• BC allows the use of all three protocols

Quantifying GHG Emissions

GHG Emissions for Natural Gas

• Buildings “emit” GHG via the utilities they consume

• Natural Gas consumption produces a constant:

0.204 kg CO2e / kWh or 204 tonnes CO2e / GWH

• … electricity is another matter

GHG Emissions for Electricity

• Provinces generate electricity differently

• Hydro power vs. fossil fuels

• Different emissions factor for each province

Natural Gas =

0.2 kg CO2e/ ekWh

In BC (and similar provinces) with relatively clean electrical power

• 81% GHG emissions from heating• 19% GHG emissions from

electricityIn Alberta (and similar provinces)

with coal based electrical power• 15% GHG emissions from heating• 85% GHG emissions from

electricityGHG reduction solutions aredifferent

GHG Emissions from Buildings

A Carbon Neutral organization has:1) Calculated total emissions2) Pursued actions to reduce those emissions3) Applied offsets to net those emissions to zero (by 2010)

What does the Act require?• Carbon Neutral Action Reports beginning June 2009 (2008 year)• 2008 and 2009 reports document emissions reduction efforts• 2010 report must include a GHG inventory and statement of offsets

What Does Carbon Neutral Mean?

USE LESS ENERGY

Buildings are Primary Source

• Direct emissions from stationary combustion (boilers and generators for heating, cooling and power)

• Indirect emissions from electricity use

Other sources may include fleet vehicles, business travel, paper use

What Emission Sources are Included?

For every 100,000 GJ of Natural Gas consumed:

The cost of the BC Carbon Tax is:

• 2008 @ $10 / tonne $50,000 / year

• 2012 @ $30 / tonne $150,000 / year

The cost of carbon offsets is (anticipated):

• 2012 @ $25 / tonne $125,000 / year

Total EXTRA cost of 100,000 GJ of natural gas in 2012:

$275,000 / year

What about offset costs?

• Determine your building’s carbon footprint

• Review opportunities for the site, neighborhood, region

• Evaluate options for practicality, cost, functionality, availability

• Review capital, operating, maintenance costs

• Review funding options for capital and operating costs

Getting to Carbon Neutral

Step 1 - DEFINE ITDEFINE EMISSIONS AND ENERGY USAGE

• Benchmarking against similar buildings• Analysis of utility data for existing buildings• GHG/Carbon Footprint calculations• Carbon tax calculation

Don’t Just Fuel Switch

Steps to GHG Emissions Reductions

Step 2 – REDUCE ITREDUCE ENERGY USAGE/ RESOURCES

• Audit process- Identifies areas for saving energy- Research/liaison for applicable incentive programs.

• Upgrade systems and Design- Design of low temp heating systems- Integrated Systems- Higher efficiency Equipment and Systems- Envelope Improvement measures- Natural Ventilation system design

Steps to GHG Emissions Reductions

Step 3 – PLAN FOR ITLOOK FOR SYNERGIES WITHIN REGION & NEIGHBORHOOD

• Central heating design• Waste heat from neighboring buildings.

Steps to GHG Emissions Reductions

Step 4 – PRACTICE ITREACHING CARBON NEUTRALITY

• Green House Gas free fuel• Biomass Incineration/Co-generation, Tri-generation system design• Solar Heat collectors• Solar PV Generation (requires incentives/ subsidies)• Wind power• Micro Hydro• Biogas• Heat Pumps• Carbon Offsetting Strategies

Steps to GHG Emissions Reductions

Rethinking Energy

What are we doing?

What is District Energy?

System Synergies – Opportunities in the Community

Interactions Between All Systems

Dockside Green, Victoria, BC

Funding opportunities, etc.

How do we actually do this?

What Help is Out There?

• Funding available as part of DSM program for both new and existing buildings

• New funding for community energy• Projects must meet minimum criteria• Future funding to come before end of 08

BC Hydro – PowerSmart Program:

• DSM more limited than Hydro• Typically, high efficiency gas boiler incentives• Linking to Terasen Energy Services may provide

more options• More funding opportunities coming in 08

Terasen Gas:

• Innovative Clean Energy Funding - $25 million• BC Bioenergy Strategy may have ~ $35 million• Money also available for research

Government Funding:

Green House Gas Reductions in Action

What are we doing?

• Net Energy Producer!• Very low energy use building• Some PV and Solar Collectors• Remote micro hydro could be

developed by project partners and power CIRS

Architect: Busby Perkins Will

Projects

Center for Interactive Research on SustainabilityVancouver, BC

• Waste wood gasification heat- gas peaking

• Sell heat to hotel at non peak time to offset GHG from gas boilers and electricity

Architect: Busby Perkins Will Architects

Projects

Dockside Green Development (Carbon Neutral)Victoria, BC

• 43,000m2 addition requiring more heat/cool plant and electricity

• Use gas turbine tri-gen system- Electricity, heating, cooling

• Will about achieve Kyoto in spite of 400% increase in area

• Looking at sour gas flaring as alternative fuel

• 5 yr simple payback – smaller turbine unit• 4 yr simple payback – larger turbine unitArchitect: Stantec Architecture

Projects

Edmonton International AirportEdmonton, AB

Conclusions

• Step-by-step, carbon neutrality is possible

• Consider choices at the neighborhood or community scale to make building decisions easier

• The key is to start taking action!