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Cargill High River Fluidized Bed Boiler Offset Project Greenhouse Gas Emissions Reduction Offset Project Report For the Period January 1, 2016 – December 31, 2016 FINAL REPORT, version 3.0 May 3, 2017 Prepared by: Blue Source Canada ULC (Authorized Project Contact) Suite 700, 717-7 th Avenue SW Calgary, Alberta T2P 3R5 T: (403) 262-3026 F: (403) 269-3024 Web: www.bluesourceCAN.com Prepared for: Cargill Meat Solutions, A Division of Cargill Limited 472 Avenue and Hwy 2A North, P.O. Bag 3850 High River, Alberta T1V 1P4 T: (403) 652-4688 F: (316) 266-7468 Web: www.cargillmeatsolutions.com
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Page 1: Cargill High River Fluidized Bed Boiler Offset Project

Cargill High River Fluidized Bed Boiler Offset Project

Greenhouse Gas Emissions Reduction

Offset Project Report

For the Period January 1, 2016 – December 31, 2016

FINAL REPORT, version 3.0

May 3, 2017

Prepared by: Blue Source Canada ULC (Authorized Project Contact) Suite 700, 717-7th Avenue SW Calgary, Alberta T2P 3R5 T: (403) 262-3026 F: (403) 269-3024

Web: www.bluesourceCAN.com

Prepared for: Cargill Meat Solutions, A Division of Cargill Limited 472 Avenue and Hwy 2A North, P.O. Bag 3850 High River, Alberta T1V 1P4 T: (403) 652-4688 F: (316) 266-7468

Web: www.cargillmeatsolutions.com

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Prepared by: Blue Source Canada ULC 700, 717 7th Ave. SW, Calgary, AB, T2P 0Z3 Tel: (403) 262-3026 Fax: (403) 269-3024

Contents Contents ......................................................................................................................................................... i

List of Tables ................................................................................................................................................. ii

List of Abbreviations ..................................................................................................................................... ii

1 PROJECT SCOPE AND PROJECT DESCRIPTION ....................................................................................... 3

2 PROJECT CONTACT INFORMATION ....................................................................................................... 5

3 PROJECT DESCRIPTION AND LOCATION ................................................................................................ 6

4 PROJECT IMPLEMENTATION AND VARIANCE ....................................................................................... 6

4.1 Prior variance to OPP valid in 2016 operations ............................................................................ 6

4.2 Additional 2016 Operational Variance to OPP .............................................................................. 7

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

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

SS B1 Emissions Collection, Transfer, and Transport ................................................................................................ 9

SS B15 Methane Emissions due to Landfill Avoidance ......................................................................... 9

SS B6 Emissions Electricity ........................................................................................................................ 10

SS B18 Displaced On-Site Heat Generation ........................................................................................ 10

SS B4 Emissions Fuel Extraction/Processing ....................................................................................................... 11

SS P4 Emissions Fuel Extraction/Processing ....................................................................................................... 11

SS P12 Emissions Facility Operation .............................................................................................................. 11

SS P15 Emissions Combustion of Biomass, Biogas and Fossil Fuels ............................................................................... 11

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

8 PROJECT DEVELOPER SIGNATURES ..................................................................................................... 15

9 STATEMENT OF SENIOR REVIEW ........................................................................................................ 16

10 REFERENCES .................................................................................................................................... 17

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Prepared by: Blue Source Canada ULC 700, 717 7th Ave. SW, Calgary, AB, T2P 0Z3 Tel: (403) 262-3026 Fax: (403) 269-3024

List of Tables TABLE 6-1 - EMISSION FACTORS USED FOR THE 2016 REPORTING PERIOD, (ALBERTA ENVIRONMENT AND

SUSTAINABLE RESOURCE DEVELOPMENT, MARCH 2015) .................................................................................... 8

TABLE 6-2: LANDFILL DESIGN FACTORS ......................................................................................................................... 9

TABLE 7-1 - OFFSET TONNES CREATED BY VINTAGE YEAR AND GHG, DISPLAYED IN T CO2E ...................................... 13

List of Abbreviations AEOR Alberta Emissions Offset Registry

AENV Alberta Environment (now Alberta Environment and Parks)

AEP Alberta Environment and Parks

AESRD Alberta Environment & Sustainable Resource Development (now Alberta Environment

and Parks)

Blue Source Blue Source Canada ULC

CH4 Methane

CO2 Carbon Dioxide

CO2e Carbon Dioxide-equivalent

DAF Dissolved Air Flotation

FBB Fluidized Bed Boiler

GHG Greenhouse gas

GWP Global Warming Potential

HFC Hydrofluorocarbon(s)

LSD Legal Site Description

N2O Nitrous Oxide

PFC Perfluorocarbon(s)

PLC Programmable Logic Controller

SF6 Sulphur Hexafluoride

SGER Specified Gas Emitters Regulation

SRM Specified Risk Materials

SS Sources and Sinks

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Prepared by: Blue Source Canada ULC 700, 717 7th Ave. SW, Calgary, AB, T2P 0Z3 Tel: (403) 262-3026 Fax: (403) 269-3024

1 PROJECT SCOPE AND PROJECT DESCRIPTION The project title is: Cargill High River Fluidized Bed Boiler Offset Project, “the Project”

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

The Project is the implementation of a fluidized bed boiler (FBB) fuelled by biomass sourced from bovine by-products and other compostable plant wastes including meat, pen manure, paunch, dissolved air flotation (DAF) grit, sludge, tri-canter solids, and specified risk materials (SRM). The FBB displaces a portion of the natural gas as fuel for process steam requirements and fossil fuel generated electricity through on-site generation at the Cargill High River Beef Processing Plant.

Date when the project began:

The project began 01 November 2012 and is a result of actions taken on, or after, 01 January 2002.

Expected lifetime of the project:

The project is expected to continue for the lifetime of the equipment, provided that the High River facility continues to be economic. This lifetime is expected to be far in excess of the credit duration period.

Credit start date: 09 May 2013

Credit duration period: The initial eight-year crediting period for the project starts on 09 May 2013 and ends on 08 May 2021.

Reporting period: January 1, 2016 – December 31, 2016

Actual emissions reductions:

The previous emission reduction claimed for this project are: 2013 – 13,289 tonnes CO2e 2014 – 17,159 tonnes CO2e 2015 – 20,170 tonnes CO2e In this report, which covers the period 01 January 2016 – 31 December 2016, the total project emission reductions from this project are calculated to be 26,039 tonnes CO2e. Total project emission reductions to date are: 76,657 tCO2e

Applicable Quantification Protocol(s):

The quantification protocol used is the Quantification Protocol for Energy Generation from the Combustion of Biomass Waste, version 2.0, April 2014, “the Protocol”, published by Alberta Environment.

Protocol(s) Justification:

The use of bovine by-products as a solid fuel source to the FBB displaces natural gas demands and electricity sourced from the commercial grid and, therefore, directly avoids the release of non-biogenic CO2, CH4, and N2O into the atmosphere as a result of combustion processes. Furthermore, in the absence of the Project, the SRMs would have continued to be sent to a landfill for disposal where varying degrees of anaerobic decomposition may take place and result in the release of non-biogenic CH4.

As the activities of the Project are applicable under the Protocol and the displacement of fossil fuels with biomass is not an industry standard, the results of this Project is considered additional and would not have occurred under business as usual circumstances.

Other Environmental Attributes:

The Project is eligible for producing renewable energy credits (RECs) in Alberta; however, the Proponent will not be creating RECs associated with

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Prepared by: Blue Source Canada ULC 700, 717 7th Ave. SW, Calgary, AB, T2P 0Z3 Tel: (403) 262-3026 Fax: (403) 269-3024

the production of electricity through its combined heat and power facility at the Cargill High River Beef Processing Plant.

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

The Project is located at the Cargill High River Beef Processing Plant in the northwest quarter of Section 19 (Township Road 19, and Range Road 28) and 5 km north of the town of High River, Alberta. LSD: 3-04-019-28 W4 Latitude/Longitude: 50°37'27.9"N 113°52'41.1"W

Ownership: The Project Proponent is Cargill Meat Solutions, “the Proponent”. The Proponent is the sole owner of the Cargill High River Beef Processing Plant. All greenhouse gas reduction benefits resulting from displacing natural gas and fossil fuel derived electricity from the commercial grid through on-site heat and power generation are owned by the Proponent.

Reporting details: For the purposes of this Offset Project Report, the offsets to be claimed are from 01 January 2016 to 31 December 2016. The Proponent is expected to continue to submit annual reports based upon the calendar year for the Project.

Verification details: The Verifier, ClearSky Engineering Inc., 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 second verification carried out by the verifier for this project.

Project activity: 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 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.

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Prepared by: Blue Source Canada ULC 700, 717 7th Ave. SW, Calgary, AB, T2P 0Z3 Tel: (403) 262-3026 Fax: (403) 269-3024

5. The project has clearly established ownership: Insert statement on ownership. 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 Developer Contact Information

Cargill Meat Solutions, a division of Cargill Ltd Sean Murray t: 403.652.8489 f: 316.266.7468 e: [email protected]

472 Ave & Hwy 2A North P.O. Bag 3850 High River, AB Canada T1V 1P4 Web: www.cargillmeatsolutions.com

Authorized Project Contact

Blue Source Canada ULC Kelly Parker Carbon Services Project Analyst t: 403.262.3026 x260 f: 403.269.3024 e: [email protected]

Suite 700 717 - 7th Avenue SW Calgary, AB Canada T2P 0Z3 Web: www.bluesourcecan.com

Verifier

ClearSky Engineering Inc.

Klym Bolechowsky, P.Eng Lead Verifier t: (403) 982-5596 e: [email protected]

221 Drake Landing Lane, Suite 1 Okotoks, Alberta Canada T2S 2M4 Web: www.clearskyeng.com

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

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Prepared by: Blue Source Canada ULC 700, 717 7th Ave. SW, Calgary, AB, T2P 0Z3 Tel: (403) 262-3026 Fax: (403) 269-3024

3 PROJECT DESCRIPTION AND LOCATION The Cargill High River Beef Processing Plant (herein referred to as ‘the Plant’) began operations in 1989.

The Plant consists of holding pens, and houses facilities for animal slaughter, cutting, packaging and

freezing, rendering of non-consumable materials, hide curing, and wastewater treatment. Approximately

4,500 cattle heads are processed per day at the facility.

The construction of a fluidized bed boiler (FBB) has reduced the Plant’s waste by utilizing both

compostable wastes and SRMs as fuel to displace a portion of the electricity load and process steam

requirements through on-site generation. The FBB project was approved by both Alberta Environment

(Approval 683-03-00, dated March 31, 2011) and the Alberta Utilities Commission (Approval No U2011-

400, dated November 9, 2011).

In 2013, the Proponent began to utilize the bovine by-products, DAF fines, tricanter solids, and dewatered

activated sludge as a solid fuel in the FBB. The Proponent collects, dewaters and combusts the biomass

in an FBB system to produce high pressure steam in a water-tube boiler. This steam then passes through

a back pressure 1.4 MW turbine and produces a portion of the base electrical load for first the FBB facility,

and then any excess electricity generation is sent to the plant. The reduced pressure steam leaving the

turbine is then captured and used in the plant production processes. As a result, the use of biomass as a

solid fuel feedstock directly offsets the demand for natural gas and electricity sourced from the

commercial distribution grid at the Plant.

4 PROJECT IMPLEMENTATION AND VARIANCE

4.1 Prior variance to OPP valid in 2016 operations The project continues to experience minor communication errors with the low pressure steam meter (tag

FT-5000) less than 5% of total time, between the meter and SCADA system. Correct measurement data

was used to create a statistically conservative average steam flowrate value that can be substituted when

meter error exists, by selecting a confidence interval that introduced minimal variability in the estimated

steam flow volume and impact to the GHG assertion (<5% uncertainty).

The revised methodology is outlined stepwise below:

1. The daily average and standard deviation of steam generation per month both for weekday and

weekend operations was calculated from available metered data.

2. For days where a meter ERROR is listed, the conservative value applied is the minimum steam

flowrate value at which a selected percentage of data is equal to or greater than. This is

determined through statistical analysis of a normal data distribution of metered data (removed

of errors) by calculating the mean mass steam flowrate per day subtract the standard deviation

of the steam meter values for the selected confidence interval (i.e. at a 95% confidence interval,

the mean steam flowrate is subtracted by 1.645 times the standard deviation to achieve a

minimum value of which 95% of the data is above). As the weekend flowrates are much smaller

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Prepared by: Blue Source Canada ULC 700, 717 7th Ave. SW, Calgary, AB, T2P 0Z3 Tel: (403) 262-3026 Fax: (403) 269-3024

and have less data variability this analysis often resulted in a negative value. When this occurred

steam generation was assumed 0.

3. Consecutive days with repeat were compared to the operating days assigned to the thermal FBB

operation via the SRM receiving records (tFBB,T).

a. If there was no record of material received for that day the FBB was assumed non-

operational, and the flowrate value set to 0;

b. If there was a record of material received for the day the meter error occurred, the 95%

steam flowrate value was used.

Two additional source emissions were added to the quantification methodology captured under the

source P12 – Facility Operations. These source emissions are the combustion emissions associated with

the weekly testing of the emergency diesel generator and the electricity consumption emissions of two

screw pumps located in the basement of the main facility used to pump the paunch to the FBB loading

area. The diesel generator model is DS500, and while no specifications could be found on the engine, a

genset package for SDS500 by engine manufacturer MTU Onsite Energy was used to approximate the fuel

consumption at 100% power rating of 91 l/hr. The two screw pumps have a power rating of 50 hp and are

assumed to run 100% of the year, data provided by Thomas D’Amato, Process Engineer.

The fuel consumption to transport the biomass from site to landfill in the baseline is not directly measured

or reconciled based upon storage volume. As source emission B1 was an upstream emission that was not

directly controlled by the Proponent, measured data is unavailable. As such, the baseline source emission

B1 is calculated reconciling the trailer capacity, the measured mass of biomass, trip distance and fuel

efficiency.

4.2 Additional 2016 Operational Variance to OPP A biogas pipeline was tied into the FBB overbed burner to increase the capacity of the plant to combust

the biogas generation from the on-site wastewater treatment plant. Biogas began being received at the

FBB on May 14, 2017 mainly on weekends, experiencing a slow ramp up. Combustion emissions and

natural gas offset from the biogas usage are quantified in source P15 of the FBB offset project. The avoided

venting emissions from the biogas are quantified in the methane generation waste water offset project.

The FBB experienced an unplanned shutdown spanning the dates: February 20, 2016 – February 29, 2016

due to emergency repairs that were conducted on the boiler. Six tubes were replaced in the secondary

superheater, structural repairs and two tubes plugged as per work order #2452984. This shutdown

resulted in a cessation of electricity generation and steam production for the dates indicated.

Dewatered activated sludge is no longer used in the FBB as the energy content is too low.

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Prepared by: Blue Source Canada ULC 700, 717 7th Ave. SW, Calgary, AB, T2P 0Z3 Tel: (403) 262-3026 Fax: (403) 269-3024

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

claimed for activities from 01 January 2016 to 31 December, 2016. The project is intended to proceed

with annual quantification and verification as indicated in the project plan.

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

from the Combustion of Biomass wastes, 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.

The following equations serve as the basis for calculating the emission reductions from the comparison of

the baseline and project conditions:

EmissionReduction = EmissionsBaseline – EmissionsProject

EmissionsBaseline = sum of the emissions under the baseline condition

= Emissions from Collection, Transfer and Transport of Biomass (B1) + Emissions from Biomass Disposal (B15) + Emission from Displaced Off-site Electricity Generation (B6) + Emission from Displaced On-site Heat Generation (B18) + Emission from Fuel Extraction and Processing (B4)

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

+ Emissions from combustion of biomass, biogas and fossil fuels (P15) + Emissions from facility operation (P12) + Emissions from fuel extraction and processing (P4)

Table 6-1 provides the emission factors used for the project. A site specific natural gas combustion CO2 emission factor is used for sources P15 and B18.

Table 6-1 - Emission factors used for the 2016 Reporting period, (Alberta Environment and Sustainable Resource Development, March 2015)

Parameter Relevant SS

CO2 Emission Factor CH4 Emission Factor

N2O Emission Factor

Electricity Generation B6, P12 0.59 tonnes CO2e/MWh

- -

Electricity Consumption

B6, P12 0.64tonnes CO2e/MWh

- -

Natural gas combustion

P15, B18 2.03 kg/m3 0.037 g/m3 0.035 g/m3

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Prepared by: Blue Source Canada ULC 700, 717 7th Ave. SW, Calgary, AB, T2P 0Z3 Tel: (403) 262-3026 Fax: (403) 269-3024

Natural Gas Extraction

P4 0.043 kg/m3 2.3 g/m3 0.004 g/m3

Natural Gas Processing

P4 0.090 kg/m3 0.3 g/m3 0.003 g/m3

Diesel Combustion B1 2663 g/l 0.133 g/l 0.4 g/l

Diesel Production B4 0.138 kg/l 0.0109 0.000004 kg/l

SS B1 Emissions Collection, Transfer, and Transport

𝑆𝑆𝐵1 = 𝐹𝑜𝑠𝑠𝑖𝑙 𝐹𝑢𝑒𝑙 𝑓𝑜𝑟 𝑇𝑟𝑎𝑛𝑠𝑝𝑜𝑟𝑡×𝐸𝐹𝑡𝑟𝑎𝑛𝑠𝑝𝑜𝑟𝑡×10−6 (1)

Where,

𝐹𝑜𝑠𝑠𝑖𝑙 𝐹𝑢𝑒𝑙 𝑓𝑜𝑟 𝑇𝑟𝑎𝑛𝑠𝑝𝑜𝑟𝑡 =𝑀𝐵𝑖𝑜𝑚𝑎𝑠𝑠

𝑇𝑟𝑢𝑐𝑘 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦×𝑇𝑟𝑎𝑛𝑠𝑝𝑜𝑟𝑡 𝐷𝑖𝑠𝑡𝑎𝑛𝑐𝑒×

𝑇𝑟𝑢𝑐𝑘 𝐹𝑢𝑒𝑙 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 (2)

And:

EFtransport = Product Transport Emission Factors, g CO2e/l

Truck fuel Efficiency = 39.5 l/100 km (NRCAN, 2013)1

Transport Distance = 750 km round trip

SS B15 Methane Emissions due to Landfill Avoidance

𝑄CH4,𝑡 = ∑ [k ×(M𝑆𝑅𝑀 − 𝑀𝐴𝑆𝐻)×𝐿𝑜×𝑒−𝑘(𝑡−1)×(1 − 𝑂𝑥)]𝑡=40𝑡=1 ×(1 − 𝑅) (1)

Equation 1 is used in conjunction with Table 6-2 to determine the emissions from avoided biomass

disposal.

Table 6-2: Landfill Design Factors

Design factor Notation Value

Methane Correction Factor MCF 1

Degradable Organic Carbon DOC 0.17

Fraction of Degradable Organic Carbon Dissimilated DOCF 0.5

Fraction of CH4 in Off gas from Disposal Site F 0.5

Recovered CH4 at Disposal Site R 0

Oxidation factor Ox 0.1

30 yr Annual Average Precipitation (mm/yr) – Brownfield, AB PCPN 470

1 The fuel efficiency for heavy duty trucks may be updated following the phase-in of Environment Canada’s proposed Heavy Truck GHG Emission Standards as it applies to the Project.

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Prepared by: Blue Source Canada ULC 700, 717 7th Ave. SW, Calgary, AB, T2P 0Z3 Tel: (403) 262-3026 Fax: (403) 269-3024

SS B6 Emissions Electricity

Emissions of CO2e = max(𝐸𝑔𝑒𝑛𝑒𝑟𝑎𝑡𝑒𝑑,𝑝𝑟𝑜𝑗𝑒𝑐𝑡 − 𝐸𝑐𝑜𝑛𝑠𝑢𝑚𝑒𝑑,𝑝𝑟𝑜𝑗𝑒𝑐𝑡 −

𝐸𝑔𝑒𝑛𝑒𝑟𝑎𝑡𝑒𝑑,ℎ𝑖𝑠𝑡𝑜𝑟𝑖𝑐,𝑎𝑑𝑗𝑢𝑠𝑡𝑒𝑑 , 0) × EFP

Where,

Egenerated,project = electricity generated by the Project, kWh;

Econsumed, project = electricity consumed by the Project, kWh;

Egenerated, Historic, adjusted = Historic electricity generated on site scaled to meet current production,

kWh. This term will always be zero for the Project as previously no electricity was generated on-

site.

EFP (tonnes CO2e/kWh) =Emission factor for on-site renewable electricity production

SS B18 Displaced On-Site Heat Generation

The avoided emissions from displacing natural gas used in the baseline occur through the distribution of

low pressure steam to the Cargill High River Plant. The low pressure steam generation is calculated using

the methods as outlined below:

𝐼𝑓 (𝐻𝑔,𝑝𝑟𝑜𝑗 − 𝐻𝑐,𝑝𝑟𝑜𝑗) < 0, 𝑡ℎ𝑒𝑛:

𝐻𝑔,𝑝𝑟𝑜𝑗 = 𝑉𝑁𝐺,𝑒𝑞× EFNG,𝑖 (7)

Where,

Hg,proj (HLP) = heat generated by the project, GJ Hc,proj (HHP – HLP) = Thermal heat energy used by the project, internal heat loss in the

system, GJ VNG,eq = Equivalent volume of natural gas displaced by thermal energy production, e3m3; EFNG,i = Natural Gas Combustion emission factor for GHG species, i, tonnes/e3m3 i = CO2, CH4, N2O And:

𝑉𝑁𝐺,𝑒𝑞 = QLP

HHVNG×1000÷ EfficiencyNG−Boiler (8)

Where,

QLP = Energy of Low Pressure steam produced, GJ HHVNG = higher heating value of natural gas, MJ/m2 EfficiencyNG-Boiler = Boiler efficiency curve of pre-existing natural gas boiler, % Where,

𝑄𝐿𝑃 = 𝐻𝐿𝑃×𝑀𝑆 (9)

2 HHV was used as the boiler efficiency of Saskatoon boiler was calculated using HHV values

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And: HLP = Enthalpy of low pressure steam, BTU/lbm,

MS = Mass flow rate of steam, klbs

The enthalpy of the steam at the specific temperature and pressure can be found using steam tables, or

as in this case, calculated through the Excel add in: WINSTEAM 4.0.

If (𝐻𝑔𝑝𝑟𝑜𝑗 − 𝐻𝑐,𝑝𝑟𝑜𝑗) > 0, then the heat generated by the project must be compared to the average

adjusted historic heat generation over a 3- year period scaled to current operations. As this is a newly

constructed facility there is no average historic heat generation to compare against, and a natural gas

baseline is assumed.

SS B4 Emissions Fuel Extraction/Processing

ENGXP = ∑ VNGeq × EFNXP𝑖 (10)

Where,

EFNXPi= Emission factor for natural gas extraction and processing, i= CO2, CH4, and N2O,

tonnes/e3m3

SS P4 Emissions Fuel Extraction/Processing

Extraction and Processing Emissions = ∑ ( V𝑗× XPi)𝑗𝑖 (13)

XP = extraction and processing emission factors

i = Greenhouse gas species: carbon dioxide, methane, nitrous oxide

j = fossil fuel: diesel, natural gas

SS P12 Emissions Facility Operation

Emissions, i = ∑ ((𝑉𝐷𝑇+𝑉𝐺𝐸𝑁𝑆𝐸𝑇) × EFDiesel,i)𝑖 + (FBBGrid × EFC) (11)

FBBGrid = Electricity required to operate the primary and auxiliary electrical equipment located in

the boiler building, MWh;

EFC = Emission factor for grid electricity consumption

SS P15 Emissions Combustion of Biomass, Biogas and Fossil Fuels

Combustion Emissions, P15 = Natural Gas Combustion + Biogas Combustion + Biomass Combustion

Natural Gas Combustion Emissions = ∑ ((𝑉𝑁𝐺) × EF𝑁𝐺,𝑖)𝑖 (12)

Where: VNG = total volume of natural gas required for start-up of the under-bed burner, and supplementary gas for the over-bed burner when required, e3m3; EF NG, i = natural gas combustion emission factor for industrial processes of specified greenhouse gas species , i i = Carbon dioxide, methane, nitrous oxide

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Biomass Combustion Emissions = ∑ (Energy HP Steam−QTOTAL,IN

𝜂𝐹𝐵𝐵) ×EF𝐵,𝑖𝑖 (13)

(12)

Where,

ENERGY HP STEAM = high pressure steam energy produced (energy output), GJ EFB, i = CH4 and N2O emission factors for the combustion of biomass,(CO2

emissions are biogenic and excluded from the quantification) tonne/GJ ƞFBB = FBB efficiency, % QTOTAL, IN = total energy input to FBB, GJ

And

QTOTAL, IN = QNG + QBIOGAS Where,

QNG = energy of natural gas used in the FBB, GJ QBiogas = energy of the biogas used in the FBB, GJ

Biogas Combustion Emissions = ∑ ((𝑉𝐵𝐺) × EF𝑁𝐺,𝑖)𝑖 (14)

Where, VBG = volume of biogas sent to FBB, e3m3 EFNG,I = CH4 and N2O emission factors for the combustion of natural gas, assumed to be representative of the biogas (CO2 emissions are biogenic and excluded from the quantification), tonne/e3m3

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Prepared by: Blue Source Canada ULC 700, 717 7th Ave. SW, Calgary, AB, T2P 0Z3 Tel: (403) 262-3026 Fax: (403) 269-3024

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 7-1 - Offset tonnes created by vintage year and GHG, displayed in t CO2e

Table 7-1 identifies the greenhouse gas assertion, containing the calculated number of offset tonnes achieved, separated by each unique vintage

year and GHG released. The total assertion is 26,039 t CO2e.

The main contribution to CO2 emissions in the baseline results from the equivalent volume of natural gas that would have been combusted to

generate the same amount of energy generated by the FBB contained in the low pressure steam.

t CO2 t CH4 t N2O PFCs HFCs SF6 t CO2e t CO2e

B1 transportation 452.51 0.56 20.25 - - - - 473.33

B4 Fuel Extraction and Processing 1,613.75 831.90 25.84 - - - - 2,471.49

B6 Electricity Production - - - - - - 651.11 651.11

B15 Decomposition of Biomass and Methane

Collection/Destruction- 13,736.73 - - - - - 13,736.73

B18 Thermal Energy Produced 24,272.57 11.05 124.62 - - - - 24,408.24

26,338.83 14,580.25 170.71 651.11 41,740.90

t CO2 t CH4 t N2O PFCs HFCs SF6 t CO2e t CO2e

P4 Fuel Extraction and Processing 587.45 290.19 9.47 - - - - 887.12

P12 Facility Operations 42.11 0.05 1.88 - - - 1,597.84 1,641.88

P15 Combustion of Biomass and Fossil Fuels 8,966.17 3,615.34 590.45 - - - - 13,171.97

9,595.73 3,905.59 601.81 - - - 1,597.84 15,700.97

t CO2 t CH4 t N2O PFCs HFCs SF6 t CO2e t CO2e

16743.10 10674.66 -431.10 0.00 0.00 0.00 -946.73 26,039.00

SS

Total Baseline

Total Project

ALL

Baseline Emissions

Project Emissions

Emission Offset Credits Created

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Prepared by: Blue Source Canada ULC 700, 717 7th Ave. SW, Calgary, AB, T2P 0Z3 Tel: (403) 262-3026 Fax: (403) 269-3024

The main source of baseline methane emissions results from the decomposition of the SRM in landfill.

Project methane emissions result mostly from the combustion of the biomass in the FBB.

Figure 1: Vintage offset creation from May 9, 2013 – December 31, 2016, disaggregated by year

0

5000

10000

15000

20000

25000

30000

2013 2014 2015 2016

Off

set

Vo

lum

e, t

CO

2e

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Page 17: Cargill High River Fluidized Bed Boiler Offset Project

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Prepared by: Blue Source Canada ULC 700, 717 7th Ave. SW, Calgary, AB, T2P 0Z3 Tel: (403) 262-3026 Fax: (403) 269-3024

9 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, 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, P.Eng Tooraj Moulai, P.Eng.

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Prepared by: Blue Source Canada ULC 700, 717 7th Ave. SW, Calgary, AB, T2P 0Z3 Tel: (403) 262-3026 Fax: (403) 269-3024

10 REFERENCES Alberta Environment, 2013, Technical Guidance for Offset Project Developers - Version 4.0, February

2013.

Alberta Environment, 2014. Quantification Protocol for Energy Generation from the Combustion of

Biomass Waste, version 2.0, April 2014.

Environment Canada, 2016, National Inventory Report 1990-2014: Greenhouse Gas Sources and Sinks in

Canada. Environment Canada, Ottawa.

Gas Processors Association, 2009, GPA Standard 2145-09: Table of Physical Properties for Hydrocarbons

and Other Compounds of Interest to the Natural Gas Industry. GPA, Tulsa.

Alberta Environment and Sustainable Resource Development. (March 2015). Carbon Offset Emission

Factors Handbook, version 1.0. Edmonton: Government of Alberta.

IPCC. (2006). Stationary Combustion . Guidelines for National Greenhouse Gas Inventories. IPCC.

NRCAN. (2013, 11 18). Fuel Efficiency Benchmarking in Canada's Trucking Industry. Retrieved 12 17,

2014, from Natural Resources Canada:

http://www.nrcan.gc.ca/energy/efficiency/transportation/commercial-vehicles/reports/7607


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