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© August Mack Environmental, Inc. Understanding Your Carbon Footprint - Quantifying Your Carbon Emissions September 14, 2010 Geoffrey A. Glanders, LPG

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© August Mack Environmental, Inc.

Understanding Your Carbon Footprint -Quantifying Your Carbon Emissions

September 14, 2010Geoffrey A. Glanders, LPG

© August Mack Environmental, Inc.

Presentation Overview

• Define Carbon Emissions/Greenhouse Gases• Identify Key Issues Associated with Carbon

Inventories• Present A Case Study of a Carbon Inventory of

an Industrial Facility• Identify Key Issues Associated with New Carbon

Reporting Regulation• Present A Case Study Determining Applicability

of the New Carbon Reporting Rule

© August Mack Environmental, Inc.

What are Greenhouse Gases (GHG)?

• IPCC defines Greenhouse Gases as:– Gaseous constituents of the atmosphere, both natural

and anthropogenic, that absorb and emit radiation at specific wavelengths within the spectrum of thermal infrared radiation emitted by the Earth’s surface, the atmosphere itself, and by clouds.

• The EPA definition of Greenhouse Gases is much simpler:– Gases that trap heat in the atmosphere

• Four Main Types of Greenhouse Gases– CO2, CH4, N2O and Fluorinated Gases

© August Mack Environmental, Inc.

Global Warming Potential (GWP)

• Gases “trap” radiation at much different efficiencies

• The ability to trap radiation of each of these gases is referenced back to carbon dioxide– Carbon dioxide (CO2) is the least efficient, has

the shortest atmospheric lifetime, yet is emitted in the largest quantities

– CH4 has a GWP of 21 times CO2

– N2O has a GWP of 310 times CO2

© August Mack Environmental, Inc.

Greenhouse Gas Emission Inventories

© August Mack Environmental, Inc.

Who May Wish to Conduct Inventories?

• Businesses• Municipalities • Other government agencies• Industrial facilities • Homeowners• Commercial buildings• Retail chains

© August Mack Environmental, Inc.

Why Conduct Inventories?

• Current or Pending Regulations• Quantify Carbon Risk• Business Strategic Planning• Sustainability Commitments

© August Mack Environmental, Inc.

How to Conduct a GHG Emissions Inventory

• Establish inventory boundaries (select which gases and from which sources to quantify using baseline information)

• Identify GHG emission sources• Choose GHG emissions calculation approach• Accumulate activity data and select emission

factors• Apply calculation tools• Compile and report emissions data

© August Mack Environmental, Inc.

GHG Emission Inventory Case Study

• Portland cement plant – annual production 750,000 tons clinker per year

• Direct point source emissions– Cement kiln(s)– Fuel oil (No. 2) fired boiler (100 MMBtu/hr)

© August Mack Environmental, Inc.

GHG Emission Inventory Boundaries

• Includes:– All point source emissions as part of production

process – Mobile sources on site – Indirect emissions from building electricity usage

• Does not include:– Emissions from vehicles traveling beyond

property boundaries

© August Mack Environmental, Inc.

GHG Emission Inventory Emissions Calculations• Portland cement kilns• 750,000 tons/yr clinker x 0.5071 tons CO2/ton clinker =

380,325 tons CO2/yr– Note: CO2 emissions are a function of lime content of the

clinker. This EF assumes the fraction of lime in the clinker is 0.646. If lime content is different from 0.646, the EF can be converted as follows: emission factor (tons CO2/ton clinker) = 0.5701 x (fraction of lime) / 0.646

– Emission factors for clinker production are from the revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories: Workbook.

– See: http://www.ipcc-nggip.iges.or.jp/public/gl/invs1.htm

© August Mack Environmental, Inc.

GHG Emission Inventory Emissions Calculations• Electricity, natural gas and fuel oil usage• 5,000,000 KWhr/yr x 0.000673 MT CO2e/KWhr =

3,363 MT CO2e/yr• 750,000 therm/yr x 0.0000545 MT CO2e/therm =

40.88 MT CO2e/yr• 300,000 gal/yr x 0.0102 MT CO2e/gal = 3,072 MT

CO2e/yr– Note: Electricity emission factors from Energy

Information Administration at http://www.eia.doe.gov/environment.html

– Natural gas and fuel oil emission factors from 40 CFR 98

© August Mack Environmental, Inc.

GHG Emission Inventory Case Study

• Compute as CO2equivalents using the conversions shown in the table

GHG GW Potential

CO2 1

CH4 21

N2O 310

SF6 22,200

PFCs 4,800-9,200

HFCs 12-12,000

© August Mack Environmental, Inc.

GHG Emission Inventory Case Study

GHG Contribution by Source

© August Mack Environmental, Inc.

GHG Emission Inventory Case Study

• Action Items– Create internal emission reductions team

• Production• Engineering• Facilities• Health safety and environmental• Marketing

– Set a reduction target

© August Mack Environmental, Inc.

GHG Emission Inventory Case Study

• Production emissions are the key– Clinker production (fuel and raw materials)– Fuel modifications (need to be permitted)

• Supplemental and alternative fuels– Carbon neutral biomass (wood, saw dust, etc.)– Nylon fiber– Sewage sludge

© August Mack Environmental, Inc.

GHG Emission Inventory Case Study

• Considerations Resulting From the Inventory– Convert From Fuel Oil to Natural Gas Boiler

• 100 MMBtu/hr Boiler (40 CFR 98 Emission Factors)– 7.42 MT CO2e for No. 2 Fuel Oil– 5.31 MT CO2e for Natural Gas

– Increased Energy Efficiencies for all Systems• Optimize heat recovery• Clinker cooler upgrades• Increased maintenance

• Raw Material Alternatives (Need to Be Permitted)– Slag– Fly ash (Geopolymers)– Silica fumes– Gypsum

© August Mack Environmental, Inc.

GHG Emission Inventory Case Study

• Purchase Carbon Offsets– Chicago Climate Exchange– European Climate Exchange Carbon

Sequestration• Agricultural sinks• Biomass energy• It should be noted that all of these

recommendations will improve sustainability equally as much as reducing GHG and most will reduce costs as well

© August Mack Environmental, Inc.

Current EPA Reporting Requirements

• EPA issued the Final Rule for Mandatory Reporting of Greenhouse Gases (GHG) on September 22, 2009

• EPA anticipates the rule will capture GHG emissions from large emitters responsible for approximately 85 percent of the GHG emission in the U.S.– This rule will apply to approximately 10,000

facilities

© August Mack Environmental, Inc.

Who Does the Rule Affect?

• Fossil fuel and industrial GHG suppliers• Motor vehicle and engine manufacturers• Any facility and supplier emitting 25,000 metric

tons or more of CO2 equivalent per year– Facilities will need to perform the calculation if

they have stationary fuel combustion equipment with an aggregate maximum rated heat input capacity greater than or equal to 30 mm BTU/hr

© August Mack Environmental, Inc.

Exemptions to the Rule

• Most small business should be below the 25k metric ton threshold

• Agricultural sector except manure management systems exceeding 25k metric ton threshold

• Research and development Activities• Manufacturers of vehicles and engines outside

of the light-duty sector will begin reporting for the 2011 model year

© August Mack Environmental, Inc.

Source & Supply Categories Not Included in the Rule

• Electronics manufacturing

• Ethanol production• Fluorinated GHG

production• Food processing• Industrial landfills• Magnesium

production

• Oil and natural gas systems

• SF6 from electrical equipment

• Underground coal mines

• Wastewater treatment• Suppliers of coals

© August Mack Environmental, Inc.

Requirements of the Rule

• Start collecting and tracking data on January 1• Implement monitoring methods to calculate GHG

emissions no later than March 2010• Submit annual report by March 31, 2011• Develop a written GHG monitoring plan• Conduct certification and Quality Assurance

tests of the monitoring systems• Retain all applicable records for 3 years

© August Mack Environmental, Inc.

Required Information to Report

• Annual GHG report must include the following information:– Facility or supplier name and address– Year and months covered by the report– Description of any “best available monitoring

method” used for 2010– Missing data procedures, including data elements

and total hours in the year, used to fill gaps in monitoring data

© August Mack Environmental, Inc.

Required Information to Report

• Facilities that directly emit GHGs:– Annual facility emissions in metric tons CO2e

aggregated for all source categories– Annual emissions for each source category

located at the facility in metric tons of each GHG– Additional information, such as unit or process

level emissions, activity data or QA/QC data specified in an applicable subpart.

© August Mack Environmental, Inc.

Required Information to Report

• Suppliers:– Annual quantity of GHGs supplied, aggregated

for all GHGs from all applicable supplier categories and expressed in metric tons of CO2e

– Annual quantity of each GHG supplied from each supplier category, expressed in metric tons of each GHG

– Additional information specified in each applicable subpart, such as data used to calculate GHG quantities or support QA/QC

© August Mack Environmental, Inc.

Next Steps

• Determine the rule’s applicability to your facility– Conduct a comprehensive GHG Emission Inventory

• Implement a GHG Tracking Program on or before January 1, 2010– Document the GHG monitoring plan– Maintain records of all applicable information– Consider reducing GHG emissions to eliminate your

facility’s reporting requirements• Submit an annual GHG Report to the EPA on or

before March 31, 2011

© August Mack Environmental, Inc.

Case Study

• Client– Secondary Aluminum smelter (mill) and provides

finish and painted coils. – Facility produces 3000 series alloy.– Raw material used to produce the 3000 series

alloy is 100 percent scrap-based.

© August Mack Environmental, Inc.

Case Study: Methodology

• As required by 40 CFR 98, three applicability scenarios must be considered to identify sources required to maintain records of GHG emissions for the EPA.– Facility is not one of the primary regulated source

categories listed in Per 40 CFR 98.2(a)(1).– Facility is not one of the secondary regulated

source categories listed in Per 40 CFR 98.2(a)(2).– Facility is subject to the general reporting

threshold per 40 CFR 98.2(a)(3) and must quantify certain emissions.

© August Mack Environmental, Inc.

• If a facility has a total combined maximum rated heat input capacity of 30 million British thermal units per hour (mmBTU/hr) or more from all stationary combustion units on site, then calculations must be performed to determine GHG emissions for the facility.

• Determine maximum rated heat capacity from stationary sources.

Case Study: Methodology

© August Mack Environmental, Inc.

Case Study

Emission Unit Name Emission Unit ID

Maximum Rated

Heat Input

Capacity

Unit of Measure

Boiler #1 Boiler #1 4.85 mmBTU/hr

Boiler #2 Boiler #2 4.85 mmBTU/hr

Annealing Furnace #1 Annealing Furnace #1 9 mmBTU/hr

Annealing Furnace #2 Annealing Furnace #2 16 mmBTU/hr

Annealing Furnace #3 Annealing Furnace #3 16 mmBTU/hr

Annealing Furnace #4 Annealing Furnace #4 13.5 mmBTU/hr

Annealing Furnace #5 Annealing Furnace #5 13.5 mmBTU/hr

Aluminum Reverberatory Furnace

#2

Furnace #2 20 mmBTU/hr

Aluminum Reverberatory Furnace

#6

Furnace #6 20 mmBTU/hr

Holding Furnace Holding Furnace #1 10 mmBTU/hr

Aluminum Dross-Only Furnace #7 Furnace #7 6.0 mmBTU/hr

Dross-Only Rotary Furnace #8 Rotary Furnace #8 7.5 mmBTU/hr

Plant-wide Heating Activities Insignificant Activities 14 mmBTU/hr

TOTAL 155.2 mmBTU/hr

© August Mack Environmental, Inc.

• Client has a total maximum rated heat input capacity of 155.2 mmBTU/hr site wide; therefore, emission calculations are required to determine applicability.

• Based upon fuel usage determine which GHG are emitted.

• After determination calculate CO2e.

Case Study: Applicability

© August Mack Environmental, Inc.

Case Study: GHG Emission

YearEmissions - Metric Tons CO2 Equivalent - Metric Tons

CO2 CH4 N2O CO2 CH4 N2O Total

2007 7,023.23 0.13 0.02 7,023.23 2.82 4.26 7,030.30

2008 20,228.73 0.38 0.04 20,228.73 8.03 11.89 20,248.64

2009 20,188.29 0.38 0.04 20,188.29 8.07 12.12 20,208.48

© August Mack Environmental, Inc.

Case Study: Comparison to Regulatory Threshold

Year Reporting Threshold(metric tons CO2e)

Actual CO2e Emitted(metric tons CO2e) Percent of Threshold

2007 25,000 7,030.30 28.12%

2008 25,000 20,248.64 80.99%

2009 25,000 20,208.48 80.83%

© August Mack Environmental, Inc.

Summary

• Many Good Reasons to Measure Carbon Footprint

• Setting Boundary Conditions are the Key Part of Carbon Emission Inventories

• Must Consider all Aspects (Production, Permitting, Product Quality, Etc.) When Setting Goals for GHG Reductions

• New Reporting Regulation is in Effect NOW with 2011 Reporting Deadline

© August Mack Environmental, Inc.

Questions?

Geoffrey A. GlandersPresident and Principal Hydrogeologist

[email protected]