waterloo landfill gas project

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Waterloo Landfill Gas Project Emission Reduction Credit Creation Report - Revised Protocol - ` Submitted for review to the : Pilot Emission Reduction Trading Project (PERT) Prepared on behalf of: Toromont Energy Ltd Concord, Ontario Prepared by: Guy J. Couturier, M.A.Sc., P.Eng ALCO Engineers Inc Markham, Ontario (905) 477-4957 October, 2000

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Waterloo Landfill Gas Project

Emission Reduction Credit Creation Report

- Revised Protocol -

` Submitted for review to the : Pilot Emission Reduction Trading Project (PERT) Prepared on behalf of: Toromont Energy Ltd Concord, Ontario Prepared by: Guy J. Couturier, M.A.Sc., P.Eng ALCO Engineers Inc Markham, Ontario (905) 477-4957 October, 2000

October, 2000 ALCO Engineers Inc

Executive Summary In April of 1999, Toromont Energy Ltd submitted a protocol and associated notices of Emission Reduction Credits (ERCs) for this project. This documentation was reviewed by PERT and the applicable notices of creation were posted. The purpose of this report is to amend the previous protocol and associated results. Accordingly this report provides the supporting material to amend the levels of Emission Reductions Credits covered in the previous creations reports for the period of 1995 up to June 30th, 1999 . This report also includes new ERC creation reports for subsequent periods. The main reason for amending the previous protocol pertains to a change of position within PERT regarding the calculations of ERCs for the combustion of methane contained in municipal landfill gas. The production of carbon dioxide from the combustion of municipal waste landfill gas was previously thought to contribute to an increase in carbon dioxide level in the environment. Subsequent investigation by PERT indicated that it should be treated as part of a sustainable carbon dioxide cycle. This change results in increased ERCs for a given amount of landfill gas combusted. Furthermore, PERT recommended that ERCs created from the combustion of methane be treated separately from ERCs resulting from the displacement of utility generated electrical power. This request was also addressed herein. Summarized hereafter are the ERCs resulting from the combustion of methane contained in landfill gas, as well as the ERCs resulting from the displacement of fossil fired utility generated power. A) ERCs resulting from the combustion of methane contained in Landfill Gas

1. ERCs registered for this project based on the April 1999 protocol and ERCs resulting from the modified protocol.

Period Previously Registered Unregistered Total CO 2 ERCs CO 2 ERCs CO 2 ERCs (Mg) 1995 to June 30th, 1999 367,520 46,092 413,612

2. New ERCs for subsequent period Period Total CO 2 ERCs (Mg) July 1st, 1999 to July 31st, 2000 135,874 B) ERCs resulting from the displacement of fossil fired utility generated power Period CO 2 ERCs NO x ERCs SO 2 ERCs (Mg) Ozone Non-Ozone (Mg) (Mg) (Mg) August 15th, 1999 to December 31st,1999 7,185 0.96 4.79 31.11 Jan 1st, 2000 to July 31st, 2000 13,413 6.27 4.46 58.07

October, 2000 ALCO Engineers Inc

Table of Contents

1 Creation Strategy Summary ...........................................................................................1

2 Ownership .............................................................................................................5

2.1 Sources 5

2.2 General Information on the Waterloo Landfill and Power Plant........................5

2.3 Credits 5

2.4 Ownership of credits ............................................................................................6

3 Quantification of Emission Reduction ...........................................................................7

3.1 Baseline and Associated Emission Reduction Activities......................................7 3.1.1 Baseline Emission Rate and Emission Reduction Activity Pertaining

to the Combustion of Methane Contained in Landfill Gas..................7 3.1.2 Baseline Emission Rate and Emission Reduction Activity Pertaining

to the Displacement of Fossil Fired Utility Power ..............................7

3.2 Data Integrity and Accuracy................................................................................8 3.2.1 Data used for ERCs resulting from combustion of Methane ..............8 3.2.2 Data used for ERCs Resulting from Utility Displaced Electrical Power

.............................................................................................................8

3.3 Sample Calculations ............................................................................................9 3.3.1 Conversion of Landfill Gas Volume to Equivalent Methane Mass.....9 3.3.2 ERCs Calculations for Methane Combustion .....................................9 3.3.3 ERC Calculations for the Displacement of Utility Generated Power10

3.4 Emission Reduction Credits Created .................................................................13 3.4.1 ERCs from combustion of methane ..................................................13 3.4.2 ERCs from Displacement of Utility Generated Electrical Energy ....13

4 Demonstration of Surplus .............................................................................................14

5 Demonstration of Real Status of Proposed Credits ....................................................15

5.1 Combustion of methane in landfill gas ..............................................................15

5.2 Displacement of Utility Generated Power.........................................................15

5.3 Effect of Practice on Other Pollutants...............................................................15

6 References: ...........................................................................................................17 Appendix A Ontario Hydro Data for Calculating ERCs Appendix B Emission Credit Application Forms

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1 Creation Strategy Summary The content of the report is summarized hereafter, with specific reference to where information can be found in the body of the report. Item Description Location Addressed 1

Proponent and Overview

Entity taking action : Toromont Energy Ltd Facility: Waterloo landfill and landfill gas power plant located in Waterloo, Ontario.

Section 2.3 Page 5

Yes

2 Applicable Dates The ERCs notification periods covered under this report are:

► Notice of Creation of Emission Credits for

combustion of landfill gas for the period covering the start of incineration in 1995 up to and including June 30th , 1999. This is an amendment of the previous notices covering that period.

► Notice of Creation of Emission Credits for combustion of landfill gas for the period covering July 1st ,1999 up to and including July 31st,2000.

► Notice of Creation of Emission Credits for displacement of fossil fired utility generated power for the period of August 15th, 1999 to December 31st 1999.

► Notice of Creation of Emission Credits for displacement of fossil fired utility generated power for the period of January 1st, 2000 to July 31st 2000.

Appendix B

Yes

3 Date of Submission of the Action to PERT

Submitted to PERT, October 17th , 2000

Yes

4 Project Description The ERCs created at this site are the results of two activities: ► Collection and combustion of methane

contained in landfill gas. Landfill gas is combusted in an electrical power generation plant (using lean burn reciprocating engine technology), or an incinerator.

► Production of electricity in a landfill gas fired electrical power generation plant which displaces electricity which would otherwise be generated in OPG’s coal fired plants.

Section 2.3 Page 5

Yes

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5 Pollutants and Quantities

The pollutants reduced are: ► Through methane combustion:

CO2: 549,486 Mg equiv. ► Through displacement of OPG generated

electrical power: CO2: 20,599 Mg NOx : 7,97 Mg ozone season NOx: 10.20 Mg non ozone season SOx: 89.18 Mg

Section 3.4 Page 13

Yes

6 Other Pollutants Combustion of landfill gas also destroys undesirable odorous mercaptans, VOCs, and hydrogen sulfide contained in the landfill gas. ERCs are not claimed in this report for destruction of these compounds. Relevant combustion by products created by the combustion process are also discussed.

Section 5.3 Page 15

Yes

7 Source The sources of emissions that are reduced by this strategy are: A) i) Source: Waterloo Landfill ii) Address: 1001 Erb Street West Waterloo, Ontario N2J 2Z4 B) i) Source: Any or all of Ontario Power

Generation (OPG) thermal generating stations

Section 2.1 Page 5

Yes

8 Duration The ERC activities started in 1995, and will continue for an indefinite period.

Section 2.2 Page 5

Yes

9 Baseline ► Combustion of methane

Baseline: The baseline emission rate for this project represents the situation where the present power plant and landfill gas collection and incineration system would not exist. In that scenario, methane generated by the landfill, would be left to seep into the atmosphere. ► Displacement of OPG coal fired power

Baseline: If the power plant did not exist, all the electrical power produced by the landfill gas power plant would be generated by the utility. The emission baseline in this situation is dictated by the utility’s emission rates depicted in the

Section 3 Page 7

Yes

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fossil on margin protocol outlined in Appendix A.

10 Real The ERCs associated with this project are as a result of concrete activities which are not mere changes in activity levels. ERCs are real.

Section 5 Page 15

Yes

11 Quantifiable The amount of ERCs is quantifiable and the reductions are calculated in a reliable and replicable manner.

Section 3 Page 7

Yes

12 Surplus Operation of the landfill gas collection and combustion started in 1995, subsequent to the baseline date of 1990 set by the Kyoto protocol. Landfill gas collection and combustion is not mandated by regulations at this site. ERCs are therefore surplus to the baseline.

Section 4 Page 14

Yes

13 Verifiable CO2 ERCs are calculated based on input field measurements of landfill gas volumes and methane concentration as well as electrical power generation. All field measured quantities can be verified by independent parties. NOx and SOx emission rates of the landfill gas power plant were estimated , but can also be field verified by others.

Section 3.2 Page 8

Yes

14 Unique ERCs for the incineration of methane , covering the period of 1995 to June 30th, 1999, were filed previously under a separate protocol in April of 1999. ERCs corresponding to that period are recalculated as part of the revised protocol contained herein. This results in additional ERCs for that period and it is noted that only the incremental amounts of CO 2 ERCs are filed in this report.

Section 3.4.1 Page 13

Yes

15 Risks/Uncertainties The data used to calculate CO 2 equivalent ERCs from the combustion of methane is based on field measurements of methane volumes and concentrations. The measuring devices have a high degree of accuracy which can be verified by others. Hence the risks/uncertainties are considered low from that perspective. NOx , SOx and CO2 ERCs resulting from displaced utility power are calculated based on emissions rates per unit of electricity produced. The electricity is measured using a utility grade meter of high accuracy. The risk in this area is therefore low. NOx emission rates of the landfill power plant is based on the reported factory calibration of the engine at 1.41 kg/MWh. This emission rate was not measured in the field. There is therefore

Section 3.2 Page 8

Yes

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some level of uncertainty associated with this figure. SOx emission rates of the landfill power plant is based on a reported H2S content of approximately 0.069 g/m3 in the landfill gas. It is assumed that none of the H2S is removed by the scrubbing system, and that it is all combusted to SO2 in the engines. This is a conservative estimate, since the scrubbing system more than likely removes a significant portion of the H2S. The conservative approach is taken, since the SOx level in the engine exhaust gas was not measured in the field.

16 Ownership Under contractual arrangements with the Regional Municipality of Waterloo, Toromont Energy Ltd owns all ERCs resulting from the operation of the landfill gas power plant including the operation of the landfill gas collection and incineration process starting with its initial operation in 1995.

Section 2.4 Page 6

Yes

17 Economic Data No Comments 18 Proponent’s

Experience Toromont Energy gained valuable experience in the PERT process. However, the pilot project’s rules & regulations and protocols are in a state of development. This caused additional work and costs for Toromont, including the resubmission of this protocol. However Toromont understands that this is inherent to a pilot project and is nonetheless pleased to be part of the process and contribute to the pilot project development.

Yes

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2 Ownership

2.1 Sources The sources of emissions that are reduced by this strategy are: A) i) Source: Waterloo Landfill ii) Address: 1001 Erb Street West Waterloo, Ontario N2J 2Z4 iii) Pollutant reduced: Methane from landfill gas. B) i) Source: Any or all of Ontario Power Generation (OPG) Thermal

Generating stations ii) Pollutants reduced: “Indirect” CO2, NOx and SO2

2.2 General Information on the Waterloo Landfill and Power Plant The Waterloo municipal waste landfill site is owned and operated by the Regional Municipality of Waterloo. The site covers an area of 72 hectares and is designed for, and has received provincial approval for, a total landfill capacity of 15 million tonnes. Landfilling commenced in 1972 and is scheduled to be completed by 2028. To date the landfill contains five million tonnes of municipal refuse. The gas collection system and incineration (flaring) system commenced operation in 1995. The site has presently 52 gas wells and will have 80 gas wells by the year 2003. Toromont Energy Ltd built a 3.5 MW landfill gas fuelled electrical power generation plant at the Waterloo landfill site. The power plant commenced operation August 15th, 1999. Some of the features of the power plant include gas conditioning (scrubbing, filtration, compression and de-watering) and power generation using lean burn reciprocating engine technology.

2.3 Credits The legal entity that is making this Emission Reduction Credit submission is Toromont Energy Ltd. Toromont owns and operates the Waterloo landfill gas power plant. The Regional municipality of Waterloo owns and operates the Waterloo landfill. The contact person at Toromont Energy is: Luigi Colangelo, (416) 667- 5746 Manager, Energy Services.

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2.4 Ownership of credits In 1998, Toromont Energy Ltd negotiated a 22-year landfill gas utilization agreement with the Regional Municipality of Waterloo. Under the terms of this agreement Toromont Energy is entitled to claim all emission reduction credits generated during the life of the project including the landfill gas incineration period which began in 1995.

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3 Quantification of Emission Reduction

3.1 Baseline and Associated Emission Reduction Activities Emission Reduction Credits for this project come from two activities:

1. Combustion of landfill gas generated from municipal solid waste. Applicable ERCs: CO2 equivalent

2. Production of electricity which displaces electricity produced by Ontario Power

Generation’s fossil fired power plants. Applicable ERCs: CO2, NOx, SOx

3.1.1 Baseline Emission Rate and Emission Reduction Activity Pertaining to the Combustion of Methane Contained in Landfill Gas

The Kyoto protocol aims at lowering emissions rates relative to 1990 emission rate levels. Emission reduction actions which were implemented subsequent to 1990 contribute to the overall Kyoto goal. The gas collection and combustion of landfill gas started operation in 1995 at the Waterloo site and therefore contributes to the Kyoto protocol goal. Therefore the baseline emission rate for this project represents the situation where the present power plant and landfill gas collection and incineration system would not exist. In that scenario, methane generated by the landfill, would be left to seep into the atmosphere.

3.1.2 Baseline Emission Rate and Emission Reduction Activity Pertaining to the Displacement of Fossil Fired Utility Power

Electrical power generation using landfill gas displaces power that Ontario Power Generation (OPG) would have to otherwise generate. A portion of this power would have been generated in OPG’s fossil fired power plants. This process creates additional “indirect” emission reduction credits for carbon dioxide, oxides of nitrogen and oxides of sulfur. These credits are over and above the credits associated with the combustion of methane to carbon dioxide and are treated as a separate source of ERCs in this submission. ERCs associated with the electrical power displaced from OPG are calculated in accordance with the “fossil on margin” procedure outlined in OPG's document included in Appendix A. The same section includes fossil on margin data for the years 1994 to 1999. This data is compiled on an annual basis. Since data for the year 2000 were not available at the time of writing this report, ERCs for the year 2000 were calculated using 1999 data.

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3.2 Data Integrity and Accuracy

3.2.1 Data used for ERCs resulting from combustion of Methane The data used to calculate CO 2 equivalent ERCs from the combustion of methane is based on field measurements of methane volumes and concentrations. The measuring devices have a high degree of accuracy which can be verified by others. The accuracy associated with the metering devices is as follows; i) Landfill gas flow meter accuracy: (+/-) 1.25% ii ) Methane and oxygen content accuracy: (+/-) 1%

3.2.2 Data used for ERCs Resulting from Utility Displaced Electrical Power NOx , SOx and CO2 ERCs resulting from displaced utility power are calculated based on emissions rates per unit of electricity produced. The electricity produced from the Waterloo power plant is measured using a utility grade revenue meter with the following accuracy:

i) Electrical power production accuracy: Utility grade revenue meter (+/- 0.25%) NOx emission rate of the landfill power plant is based on the reported factory calibration of the engine at 1.41 kg/MWh. This emission rate is not confirmed by field measurement. There is therefore some level of uncertainty associated with this figure. Toromont reports that the Waterloo engines are scheduled to be tested and tuned at regular intervals to maintain the factory calibration. Testing results were not available at the time of writing this report. SOx emission rates of the landfill power plant is estimated based on a reported H2S content of 0.069 g/m3 in the landfill gas. It is assumed that none of the H2S is removed by the scrubbing system, and that it is all combusted to SO2 in the engines resulting in an SO2 emission rate of 0.13 g/m3 of landfill gas combusted. This is a conservative estimate, since the scrubbing system more than likely removes a significant portion of the H2S. This conservative approach is taken, since the SOx level in the engine exhaust gas was not confirmed by field measurements. NOx, SOx and CO 2 emission rates for the utility generated power are reported by OPG on an annual basis. Accuracy levels are not reported and cannot be commented on in this report. Furthermore, since fossil on margin data for the year 2000 were not available at the time of writing this report, ERCs for the year 2000 were calculated using 1999 data.

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3.3 Sample Calculations

3.3.1 Conversion of Landfill Gas Volume to Equivalent Methane Mass The landfill gas recovery data is recorded as total landfill gas volume. For the purposes of this report the methane portion of a given volume is converted to equivalent mass of methane using the following relationship. 1) MCH4 = P x CCH4 x V x MWCH4 RT x 1,000,000 Mg/g where P = pressure in atmosphere V = Volume of landfill gas (cm3) CCH4 = Concentration of methane in the landfill gas expressed as volume

fraction MCH4 = mass of methane (Mg) R = gas constant 82.05 cm3. atm/(mole. oK) T = reference temperature (oK) = 288oK MWCH4)= molecular weight of methane = 16 g/mole MCH4 = 1 atm x 16g/mole x V 82.05 cm3. atm/(mole. oK) x 288oK = 0.000677 g/cm3 x Cch4 x V (volume expressed in centimeters cube) = 0.000677 Mg/m3 x Cch4 x V (volume expressed in meters cube)

3.3.2 ERCs Calculations for Methane Combustion Previous protocol (April 1999) Emission reduction credits for the combustion of methane are expressed in mass of carbon dioxide which would have an equivalent global warming potential (GWP) as the methane combusted. The International Panel on Climate Change (IPCC) establishes the GWP of methane relative to carbon dioxide over a 100-year period at 21:1. However the combustion of one mole of methane to carbon dioxide also produces one mole of carbon dioxide. Hence the carbon dioxide ERCs in the previous protocol submission of April 1999, were adjusted accordingly to a net methane GWP of 18:1 relative to carbon dioxide. Revised Protocol Subsequent investigation by PERT indicated that IPCC treats the carbon dioxide resulting from the biodegradation of organic waste in municipal landfills as being part of the baseline sustainable carbon cycle in the atmosphere. Hence for the combustion of methane resulting from the biodegradation of waste the net GWP of methane relative to carbon dioxide is remains at 21:1.

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The ERC for the combustion of methane contained in landfill gas is calculated according to the following equation. This equation is applicable whether methane is combusted in incinerators, or reciprocating engines. 2) ERCco2 = Mch4 x 21 Mg CO2/Mg CH4 Where: ERCco2 = Emission reduction credits in equivalent mass of CO2 (Mg) Mch4 = Mass of methane combusted (Mg) (see equation 1, section 3.3.1) Example Field measured values (October ,1999) Total landfill gas combusted: 1,439,458 m3 Landfill gas composition: 53% ERCco2 = 1,439,458 m3 x 0.53 x 0.000677 Mg /m3 x 21MgCO2/MgCH4 = 10,846 Mg

3.3.3 ERC Calculations for the Displacement of Utility Generated Power ERCs associated with electrical power displaced from OPG are calculated in accordance with the “fossil on margin” procedure outlined in the document included in Appendix A. The same section includes fossil on margin data for the years 1994 to 1999. This data is compiled on an annual basis. Since data for the year 2000 were not available at the time of writing this report, ERCs for the year 2000 were calculated using 1999 data. The emission reduction factors for the displacement for power produced by OPG, are shown below (see Appendix A for the source of data). In each case the Fossil Emission Rates are multiplied by the relevant Percent Fossil on Margin factors. In the case of SOx and CO2, the Percent Fossil on Margin factor represents the 1999 annual average where as in the case of NOx the calculations are split between ozone and non-ozone seasons. 3) NOx: 2.09 kg/MWh x 1.00 = 2.09 kg/MWh : Ozone Season (1999 data) NOx: 2.09 kg/MWh x 1.00 = 2.09 kg/MWh : Non-Ozone Season (1999 data) 4) SOx: 3.76 kg/MWh x 1.00 = 3.76 kg/MWh 5) CO2: 850 kg/MWh x 1.00 = 850 kg/MWh Ozone season: April 1 to September 31 Non- Ozone season: October 1 to March 31

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Listed below are the emission rates of oxides of nitrogen and oxides of sulfur associated with the combustion of landfill gas in the Waterloo power plant. 6) NOx: 1.41 kg/MWh (reported factory setting of the engine) 7) SOx: 0.078 kg/MWh ( Estimate based on H2S content of present landfill gas of

approximately 0.069 g/m3) The net ERC produced from displacement of OPG generated electricity are calculated as follows: 8) Ozone Season ERC (NOx): = NOx from OPG fossil fuel plant – NOx from Waterloo power plant = (2.09kg/MWh - 1.41 kg/MWh) x Energy = 0.68 kg/MWh x Energy : Ozone Season Where : Energy = Electrical energy produced by the Waterloo power plant (MWhs) ERC (NOx) = Emission reduction credits for NOx (kg) 9) Non-Ozone season ERC (NOx): = (2.09kg/MWh - 1.41 kg/MWh) x Energy = (0.68 kg/MWh) x Energy: Non-Ozone Season Where : Energy = Electrical energy produced by the Waterloo power plant (MWhs) ERC (NOx) = Emission reduction credits for NOx (kg) 10) ERC (SOx): = SOx from OPG fossil fuel – SOx from Waterloo power plant = (3.76 kg/MWh - 0.078kg/MWh) x Energy = 3.68 kg/MWh x Energy Where : Energy = Electrical energy produced by the Waterloo power plant (MWhs) ERC (SOx) = Emission reduction credits for SOx keg)

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11) ERC (CO2) = 850 kg/MWh x Energy Where : Energy = Electrical energy produced by the Waterloo power plant (MWhs) ERC (CO2) = Emission reduction credits for CO2 (kg) Example: The following example depicts the calculation of ERCs associated with the displacement of utility generated electrical power for the month of October 1999 Field measured data: Electrical Energy Production: 2,440 MWhr ERC (NOx) = 0.68 kg/MWhr x 2,440 MWhr = 1,830 kg = 1.66 Mg ERC (SOx) = 3.68 kg/MWhr x 2,440 MWhr = 8,978 kg = 8.98 Mg ERC (CO2) = 850 kg/MWhr x 2,440 Mwh = 2,074,000 kg = 2,074 Mg

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3.4 Emission Reduction Credits Created

3.4.1 ERCs from combustion of methane

Summarized in Table 1a) are the ERCs resulting from the combustion of methane. This covers the period of 1995 to July 31st , 2000. ERCs were filed under the previous protocol for the period covering 1995 to June 30th, 1999. There was no power production at site during that period. Hence the latter submission only covered combustion of methane. The following table lists the previously registered ERCs as well as the total ERCs created under the new protocol covered herein. Period Previously New Total Registered Unregistered Action CO2 ERCs CO2 ERCs CO2 ERCs 1995 to June 30th, 1999 367,520 46,092 413,612 Note that the creation report previously submitted for the period of 1995 to June 30th, 1999 was based in part on estimating a portion of landfill gas volume for the period of 1998 and 1999. The present revised protocol is based solely on actual measured landfill gas volumes, and removes that uncertainty. The results form part of this revised protocol.

3.4.2 ERCs from Displacement of Utility Generated Electrical Energy Summarized in Table 1b) are the ERCs resulting from the displacement of utility generated electrical energy. This covers the period of August 1999 to July 31st, 2000.

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4 Demonstration of Surplus The planning and construction of the Waterloo Landfill was done in accordance with the requirements of the Environmental Protection Act of Ontario. An environmental assessment (EA) process was undertaken to study the environmental impact of the landfill. The Region of Waterloo reports the gas collection and flaring system was built as an internal initiative on their part and was not mandated by legislation or the EA process at the time. Provincial regulations governing the construction and operation of landfills in Ontario were revised in 1998. The new regulation (reg. 232/98) requires that any new landfill or any existing landfill applying for expansion with a total size greater than 3 million cubic meters (approximately 2 million tonnes of refuse), must have a gas collection and disposal system put in place. This does not apply to existing landfills other than for the exception noted above. The Region of Waterloo obtained a Certificate of Approval from the Ministry of Environment for the flaring operation. This certificate is required under Regulation 346 of Section 9 of the EPA, and confirms the suitability of the flares to meet combustion and air emissions requirements. Similarly, Toromont Energy is also required to meet the requirements of Regulation 346 and obtained a Certificate of Approval for air and noise emissions associated with the Waterloo electrical power generation plant. The Kyoto protocol aims at lowering emission rates relative to 1990 emission rate levels. Operation of the landfill gas collection and combustion at the Waterloo landfill started in 1995. The construction of the gas collection system and combustion systems (flares and power plant) creates emission reductions which are surplus relative to the Kyoto baseline and relative to applicable regulations.

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5 Demonstration of Real Status of Proposed Credits

5.1 Combustion of methane in landfill gas If the gas collection and combustion systems were not built at the Waterloo site, the methane contained in the landfill gas would discharge into the atmosphere. This is a naturally occurring process which takes place in all municipal waste landfills of significant size like this one. The emission reductions produced in this project are therefore real and come as a result of concrete actions undertaken in this project, and not mere change in activity level.

5.2 Displacement of Utility Generated Power The production of electricity generated at this site displaces electrical energy which would otherwise be generated in part by OPG’s coal fired plants. Coal fired fossil plants have different emission characteristics than the Waterloo landfill site. The emission reductions produced in this project are therefore real and come as a result of concrete actions undertaken in this project, and not mere change in activity level.

5.3 Effect of Practice on Other Pollutants The organic fraction of landfilled waste decomposes over a prolonged period of time resulting in a gas by-product with a typical bulk composition of approximately equal portions of methane and carbon dioxide. The gas is also laced with trace volatile organic compounds originating from the waste, hydrogen sulfide and odorous mercaptans. The decomposition process referred to as anaerobic digestion, is the result of naturally occurring bacterial presence which decomposes the organic fraction of the waste. The rate of decomposition is affected by the chemical composition of the waste, water content, and the physical characteristics of the landfill including refuse depth and drainage characteristics. Left seeping into the atmosphere, landfill gas can cause a number of environmental and safety problems. Trace hydrogen sulfide and mercaptans generate undesirable odors for neighboring properties. This effect is particularly noticeable during atmospheric temperature inversions. Underground migration of methane can cause gas accumulations in neighboring basements and buildings which can reach explosive concentrations. Volatile organic compounds escaping in the atmosphere contribute to smog problems. A detailed landfill gas analysis outlining chemical compounds composition other than methane was not available at the time of writing this report. Therefore the environmental benefit of disposing of the VOCs, mercaptans etc, contained in the landfill gas can only be qualified and not quantified for this project at this particular stage. The gas treatment process of the proposed Waterloo Landfill power plant treats the raw landfill gas to render it compatible for combustion in the reciprocating engines. Since the treatment

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process does not remove all volatile organic compounds some VOCs will be burnt in the engines. Emissions tests recently conducted by Environment Canada indicate that the reciprocating engine used in this project has an excellent VOC destruction capability in the range of 98.5%. (Reference 3). This compares very favorably with a poor 38.6% destruction efficiency for open flares and 99.9%+ for suitably designed closed flares of the type such as the one located presently at the Waterloo landfill. The same study also investigated dioxin and furan emissions in reciprocating engines and flares and indicates that the results are well below acceptable standards. The landfill gas incineration process inherently produces oxides of nitrogen (NOx) as a combustion by-product. At the time of writing this report, we did not have precise information on the NOx production characteristics of the incinerators located at the Waterloo landfill. Although this impact could not be quantified at this point, this issue is duly noted.

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6 References: 1) Climate Change 1995:The Science of Climate Change, Intergovernmental Panel on Climate

Change, Cambride UK, Cambridge University Press. 2) 1996 IPCC Guidelines for National Greenhouse Inventory: Reference Manual 3) Characterization of Semi-volatile Organic Compounds and Volatile Organic Compounds

from vented landfills, Renata Mortazavi, Pollution Measurement Division, Environmental Technology Advancement Directorate, Environment Canada, Report PMD/96-6, August 1996.

Emission Reduction Credits Summary TablesWaterloo Landfill Gas Recovery Project

Table 1-aEmission Reduction Credits for Methane Combustion

Report Year Month Comments Total Landfill Avg. CH4 CH4 CH4 CH4 Equiv. CO2 Period Gas Volume Concentration Volume Mass Combusted ERCs

( m3) (%) (m3) (Mg) (Mg) (Mg)

1995 total annual Combustion in flares 260,000 53% 137,800 93.3 93 1,959

1995 1996 total annual Combustion in flares 14,460,000 53% 7,663,800 5,188 5,188 108,956to

Dec 31st , 1998 1997 total annual Combustion in flares 15,890,000 53% 8,421,700 5,701 5,701 119,731

1998 total annual Combustion in flares 15,836,124 53% 8,393,146 5,682 5,682 119,325Total 46,446,124 24,616,446 16,665 16,665 349,972

1999 Jan Combustion in flares 1,459,855 53% 773,723 524 524 11,000Jan 1st, 1999 1999 Feb " 1,260,720 53% 668,182 452 452 9,500

to 1999 Mar " 1,478,793 53% 783,760 531 531 11,143June 30th, 1999 1999 Apr " 1,439,634 53% 763,006 517 517 10,848

1999 May " 1,465,499 53% 776,714 526 526 11,0431999 Jun " 1,341,742 53% 711,123 481 481 10,110

Total 8,446,243 4,476,509 3,031 3,031 63,640

1999 Jul Combustion in flares 1,271,069 53% 673,667 456 456 9,5781999 Aug Combustion in engines 1,345,249 53% 712,982 483 483 10,1361999 Sep " 1,337,134 53% 708,681 480 480 10,075

July 1st ,1999 1999 Oct " 1,439,458 53% 762,913 516 516 10,846to 1999 Nov " 1,392,138 53% 737,833 500 500 10,490

July 31st, 2000 1999 Dec " 1,363,456 53% 722,632 489 489 10,2742000 Jan " 1,249,714 53% 662,348 448 448 9,4172000 Feb " 1,355,182 53% 718,246 486 486 10,2112000 Mar " 1,516,642 53% 803,820 544 544 11,4282000 Apr " 1,394,064 53% 738,854 500 500 10,5042000 May " 1,417,111 53% 751,069 508 508 10,6782000 Jun " 1,439,176 53% 762,763 516 516 10,8442000 Jul " 1,511,966 53% 801,342 543 543 11,393

Total 18,032,359 9,557,150 6,470 6,470 135,874

Total for all periods 72,924,726 38,650,105 26,166 26,166 549,486

CH4 CombustionLandfill Gas Recovery

September, 2000 ALCO Engineers Inc

Emission Reduction Credits Summary TablesWaterloo Landfill Gas Recovery Project

Table 1-b

ERCs from Electrical Energy ProductionReport Year Month Comments Electrical Energy Equiv.CO2 Net NO2 Net SO2Period Produced ERCs ERCs ERCs

(kWh) (Mg) (Mg) (Mg)Ozone Non-Ozone Ozone Non-OzoneSeason Season Season Season

1999 Aug Aug 15th-start of power plant 35 0 30 0.02 0.00 0.13August 15th, 1999 1999 Sep 1,379 0 1,172 0.94 0.00 5.07

to 1999 Oct 0 2,440 2,074 0.00 1.66 8.98December 31st, 1999 1999 Nov 0 2,441 2,075 0.00 1.66 8.98

1999 Dec 0 2,158 1,834 0.00 1.47 7.94Total 1,414 7,039 7,185 0.96 4.79 31.11

2000 Jan 0 2,101 1,786 0.00 1.43 7.732000 Feb 0 2,088 1,775 0.00 1.42 7.68

Jan 1st, 2000 2000 Mar 0 2,376 2,019 0.00 1.62 8.74to 2000 Apr 2,436 0 2,071 1.66 0.00 8.97

July 31st, 2000 2000 May 2,223 0 1,889 1.51 0.00 8.182000 Jun 2,260 0 1,921 1.54 0.00 8.322000 Jul 2,297 0 1,953 1.56 0.00 8.45

Total 9,216 6,565 13,413 6.27 4.46 58.07

Total for all periods 10,630 13,603 20,599 7.23 9.25 89.18

Emission Reduction Credits for Displacement of Utility Generated Electrical Energy

September, 2000 ALCO Engineers Inc

October,2000 ALCO Engineers Inc

Appendix A Ontario Power Generation Data For Calculating ERCs for Displaced Electrical Power

October,2000 ALCO Engineers Inc

Appendix B

Emission Reduction Credits Applications Forms

Submit to: Clean Air Registry, Inc. 6505 Clagett Ave, Fair Haven, MD 20754 Phone (410) 286-2995, Fax (410) 286-3463, Registry (310) 855-4441 Version CA-3.1 7/30/97 Copyright 1995 Clean Air Action Corporation

NOTICE OF CREATION OF EMISSION REDUCTION CREDITS

CREATOR INFORMATION

1. Business Name: Toromont Energy Ltd.

2. Company Contact: Lou Colangelo Manager, Energy Services 416 667-5746 Name (Print or Type) Title Telephone No.

3. Mailing Address: 151 Corstate Avenue Concord Ont. L4K 4Y2 Street City Province Postal Code

4. Nature of Business:

Landfill Gas Power Plant Developer

INFORMATION FOR ERC CREATION

5. Source Name: Waterloo Landfill Gas Power Plant, 1001 Erb. St., West, Waterloo, Ontario

6. Source Description:

Landfill site, combustion of methane contained in landfill gas

7. Certificate No. (if applicable):

8. Other ID (if applicable):

9. Pollutant #1: CO2 10. Created: 46,096 Mg Total Ozone Season Non Ozone Season

11. Pollutant #2:

12. Created:

Total Ozone Season Non Ozone Season

11. Pollutant #2:

12. Created:

Total Ozone Season Non Ozone Season

13. Period Credits Created:

1995 June 30, 1999

Start Date End Date Ozone Days Non Ozone Days

14. ERC Creation Protocol Summary: (use additional attachments if necessary)

ERC’s resulting from the combustion of methane contained in Landfill Gas

15. Protocol Ref. No.:

16. FOR REGISTRY USE ONLY Reference Number Assigned by Registry:

I am a duly authorized corporate officer of the company mentioned above and have personally examined and am familiar with the information submitted in this Notice of Creation report and all attachments thereto. Based upon reasonable investigation,

Submit to: Clean Air Registry, Inc. 6505 Clagett Ave, Fair Haven, MD 20754 Phone (410) 286-2995, Fax (410) 286-3463, Registry (310) 855-4441 Version CA-3.1 7/30/97 Copyright 1995 Clean Air Action Corporation

including my inquiry of those individuals responsible for obtaining the information, the submitted information is true, accurate and complete to the best of my knowledge and belief. I understand that any false statement made in the submitted information may be punishable as a criminal offense in accordance with applicable provincial or federal statutes.

17. Authorized Signature

18. Date October 17, 2000

19. Name (Type or Print)

Lou Colangelo 20. Telephone 416 667-5746

Submit to: Clean Air Registry, Inc. 6505 Clagett Ave, Fair Haven, MD 20754 Phone (410) 286-2995, Fax (410) 286-3463, Registry (310) 855-4441 Version CA-3.1 7/30/97 Copyright 1995 Clean Air Action Corporation

NOTICE OF CREATION OF EMISSION REDUCTION CREDITS

CREATOR INFORMATION

1. Business Name: Toromont Energy Ltd.

2. Company Contact: Lou Colangelo Manager, Energy Services 416 667-5746 Name (Print or Type) Title Telephone No.

3. Mailing Address: 151 Corstate Avenue Concord Ont. L4K 4Y2 Street City Province Postal Code

4. Nature of Business:

Landfill Gas Power Plant Developer

INFORMATION FOR ERC CREATION

5. Source Name: Waterloo Landfill Gas Power Plant, 1001 Erb. St., West, Waterloo, Ontario

6. Source Description:

Landfill site, combustion of methane contained in landfill gas

7. Certificate No. (if applicable):

8. Other ID (if applicable):

9. Pollutant #1: CO2 10. Created: 135,874 Mg Total Ozone Season Non Ozone Season

11. Pollutant #2:

12. Created:

Total Ozone Season Non Ozone Season

11. Pollutant #2:

12. Created:

Total Ozone Season Non Ozone Season

13. Period Credits Created:

July 1, 1999 July 31, 2000

Start Date End Date Ozone Days Non Ozone Days

14. ERC Creation Protocol Summary: (use additional attachments if necessary)

ERC’s resulting from the combustion of methane contained in Landfill Gas

15. Protocol Ref. No.:

16. FOR REGISTRY USE ONLY Reference Number Assigned by Registry:

I am a duly authorized corporate officer of the company mentioned above and have personally examined and am familiar with the information submitted in this Notice of Creation report and all attachments thereto. Based upon reasonable investigation,

Submit to: Clean Air Registry, Inc. 6505 Clagett Ave, Fair Haven, MD 20754 Phone (410) 286-2995, Fax (410) 286-3463, Registry (310) 855-4441 Version CA-3.1 7/30/97 Copyright 1995 Clean Air Action Corporation

including my inquiry of those individuals responsible for obtaining the information, the submitted information is true, accurate and complete to the best of my knowledge and belief. I understand that any false statement made in the submitted information may be punishable as a criminal offense in accordance with applicable provincial or federal statutes.

17. Authorized Signature

18. Date October 17, 2000

19. Name (Type or Print)

Lou Colangelo 20. Telephone 416 667-5746

Submit to: Clean Air Registry, Inc. 6505 Clagett Ave, Fair Haven, MD 20754 Phone (410) 286-2995, Fax (410) 286-3463, Registry (310) 855-4441 Version CA-3.1 7/30/97 Copyright 1995 Clean Air Action Corporation

NOTICE OF CREATION OF EMISSION REDUCTION CREDITS

CREATOR INFORMATION

1. Business Name: Toromont Energy Ltd.

2. Company Contact: Lou Colangelo Manager, Energy Services 416 667-5746 Name (Print or Type) Title Telephone No.

3. Mailing Address: 151 Corstate Avenue Concord Ont. L4K 4Y2 Street City Province Postal Code

4. Nature of Business:

Landfill Gas Power Plant Developer

INFORMATION FOR ERC CREATION

5. Source Name: Waterloo Landfill Gas Power Plant, 1001 Erb. St., West, Waterloo, Ontario

6. Source Description:

Landfill site, combustion of methane contained in landfill gas to produce electricity.

7. Certificate No. (if applicable):

8. Other ID (if applicable):

9. Pollutant #1: CO2 10. Created: 7,185 Mg Total Ozone Season Non Ozone Season

11. Pollutant #2:

NOx 12. Created: 5.75 Mg 0.96 Mg 4.79 Mg

Total Ozone Season Non Ozone Season

11. Pollutant #2:

SO2 12. Created: 31.11 Mg

Total Ozone Season Non Ozone Season

13. Period Credits Created:

August 15, 1999 December 31, 1999

Start Date End Date Ozone Days Non Ozone Days

14. ERC Creation Protocol Summary: (use additional attachments if necessary)

ERC’s resulting from the displacement of fossil fired utility generated electricity.

15. Protocol Ref. No.:

16. FOR REGISTRY USE ONLY Reference Number Assigned by Registry:

I am a duly authorized corporate officer of the company mentioned above and have personally examined and am familiar with the information submitted in this Notice of Creation report and all attachments thereto. Based upon reasonable investigation,

Submit to: Clean Air Registry, Inc. 6505 Clagett Ave, Fair Haven, MD 20754 Phone (410) 286-2995, Fax (410) 286-3463, Registry (310) 855-4441 Version CA-3.1 7/30/97 Copyright 1995 Clean Air Action Corporation

including my inquiry of those individuals responsible for obtaining the information, the submitted information is true, accurate and complete to the best of my knowledge and belief. I understand that any false statement made in the submitted information may be punishable as a criminal offense in accordance with applicable provincial or federal statutes.

17. Authorized Signature

18. Date October 17, 2000

19. Name (Type or Print)

Lou Colangelo 20. Telephone 416 667-5746

Submit to: Clean Air Registry, Inc. 6505 Clagett Ave, Fair Haven, MD 20754 Phone (410) 286-2995, Fax (410) 286-3463, Registry (310) 855-4441 Version CA-3.1 7/30/97 Copyright 1995 Clean Air Action Corporation

NOTICE OF CREATION OF EMISSION REDUCTION CREDITS

CREATOR INFORMATION

1. Business Name: Toromont Energy Ltd.

2. Company Contact: Lou Colangelo Manager, Energy Services 416 667-5746 Name (Print or Type) Title Telephone No.

3. Mailing Address: 151 Corstate Avenue Concord Ont. L4K 4Y2 Street City Province Postal Code

4. Nature of Business:

Landfill Gas Power Plant Developer

INFORMATION FOR ERC CREATION

5. Source Name: Waterloo Landfill Gas Power Plant, 1001 Erb. St., West, Waterloo, Ontario

6. Source Description:

Landfill site, combustion of methane contained in landfill gas to produce electricity.

7. Certificate No. (if applicable):

8. Other ID (if applicable):

9. Pollutant #1: CO2 10. Created: 13,413 Mg Total Ozone Season Non Ozone Season

11. Pollutant #2:

NOx 12. Created: 10.73 Mg 6.27 Mg 4.46 Mg

Total Ozone Season Non Ozone Season

11. Pollutant #2:

SO2 12. Created: 58.07 Mg

Total Ozone Season Non Ozone Season

13. Period Credits Created:

January 1, 2000 July 31, 2000

Start Date End Date Ozone Days Non Ozone Days

14. ERC Creation Protocol Summary: (use additional attachments if necessary)

ERC’s resulting from the displacement of fossil fired utility generated electricity.

15. Protocol Ref. No.:

16. FOR REGISTRY USE ONLY Reference Number Assigned by Registry:

I am a duly authorized corporate officer of the company mentioned above and have personally examined and am familiar with the information submitted in this Notice of Creation report and all attachments thereto. Based upon reasonable investigation,

Submit to: Clean Air Registry, Inc. 6505 Clagett Ave, Fair Haven, MD 20754 Phone (410) 286-2995, Fax (410) 286-3463, Registry (310) 855-4441 Version CA-3.1 7/30/97 Copyright 1995 Clean Air Action Corporation

including my inquiry of those individuals responsible for obtaining the information, the submitted information is true, accurate and complete to the best of my knowledge and belief. I understand that any false statement made in the submitted information may be punishable as a criminal offense in accordance with applicable provincial or federal statutes.

17. Authorized Signature

18. Date October 17, 2000

19. Name (Type or Print)

Lou Colangelo 20. Telephone 416 667-5746