canadian forest products ltd. grande prairie sawmill biomass

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CANADIAN FOREST PRODUCTS LTD.

GRANDE PRAIRIE SAWMILL

BIOMASS ENERGY PROJECT

GREENHOUSE GAS REDUCTION PROJECT REPORT (2005-2008)

SEPTEMBER 2009

Canadian Forest Products Ltd – Grande Prairie. Biomass to Energy Project Report (2005-2008) – September 2009

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EXECUTIVE SUMMARY

This Project Report fulfills the requirement for annual reporting under the Alberta Offset System for the Biomass to Energy Project (the “Project”) at Canadian Forest Products Ltd.’s (“Canfor”) Grande Prairie sawmill. This report covers the period including a portion of calendar 2005 and calendar 2006, 2007, and 2008. The Project Start date was January 1, 2005. Calculations of the GHG reduction is performed using the Quantification Protocol for Diversion of Biomass to Energy from Biomass Combustion Facilities (AENV, September 2007). The resultant GHG reductions of CO2e are outlined according to the table below:

Year CO2e (tonnes) 2005 22,521 2006 29,493 2007 31,765 2008 31,565 Total 115,344


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CONTENTS CANADIAN FOREST PRODUCTS LTD................................................................................................1 GRANDE PRAIRIE SAWMILL ...............................................................................................................1 BIOMASS ENERGY PROJECT .............................................................................................................1 GREENHOUSE GAS REDUCTION PROJECT REPORT (2005-2008) ............................................1 EXECUTIVE SUMMARY ........................................................................................................................2 CONTENTS .............................................................................................................................................3 1.0 OVERVIEW .................................................................................................................................4 2.0 PROJECT INFORMATION ........................................................................................................4 3.0 REPORTING PERIOD.................................................................................................................4 4.0 PROJECT CHANGES.................................................................................................................4 5.0 GHG REDUCTION CALCULATION...........................................................................................5 6.0 TOTAL GHG REDUCTION .........................................................................................................5 7.0 SIGNATURE................................................................................................................................5 8.0 APPENDIX - PROJECT PLAN ………………………………………………………………………………………. 6


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1.0 OVERVIEW This Project Report is intended to provide a summary of the Project operations and processes that give rise to GHG reductions. Further details and evidence regarding the Project are provided in the Offset Project Plan attached.

2.0 PROJECT INFORMATION The Project is an energy substitution project at Canfor’s Grande Prairie sawmill, located in Grande Prairie, Alberta. The offset credits claimed herein are owned by Canfor. The opportunity for generating carbon offsets with this project arises from direct GHG emission reductions as a result of a reduction in the consumption of natural gas used at the facility and from indirect GHG emission reductions resultant from the supply of electricity from the combustion of biomass. Greenhouse gases (CO2e’s) were emitted from the mill as a result of burning natural gas to supply the required heat to the process. This project reduces the natural gas burned by the mill. A new CHP (Combined Heat and Power) biomass burning system was designed and installed by Canadian Gas & Electric Inc. adjacent to the mill to burn wood residue. With the project in place, thermal and electrical energy is produced. High pressure steam is used to operate a turbine which generates electricity for the CHP plant, the sawmill, and for external parties. A portion of the steam produced by the CHP plant is extracted at low pressure from the turbine and is supplied to the sawmill for lumber drying. The original lumber drying system utilized direct natural gas fired burners. Heated air generated by the burners was moved by fans to dry the lumber.

3.0 REPORTING PERIOD

This Project creates verified offsets for the periods of 2005 through 2008.

4.0 PROJECT CHANGES

To ensure ongoing compliance with the Specified Gas Emitters Regulation and supporting Alberta Offset Quantification Protocols, Project Guidance and Verification Guidance, Canfor engaged Keystone Environmental Ltd., an independent 3rd party reviewer, to verify that Canfor’s process complies with the guiding regulations and associated protocols. There were no changes during the reporting period in reporting methods.


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5.0 GHG REDUCTION CALCULATION The applicability criteria, identification of sources and sinks (“SS”), and quantification methodologies for this Project have been determined in accordance with the Quantification Protocol for Diversion of Biomass to Energy from Biomass Combustion Facilities (AENV, September 2007). Quantification of the reductions, removals, and reversals of relevant SS’s for each of the greenhouse gases have been completed using the methodologies outlined in section 2.5 of the Protocol. These calculation methodologies serve to complete the necessary calculations for determining the emission reductions from the comparison of the baseline and project conditions.

6.0 TOTAL GHG REDUCTION Based on the above calculation methodology, the total tonnes of CO2e offset by the Project for the reporting period are:


7.0 SIGNATURE For Canfor: ______________________ Ken Higginbotham Director


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8.0 APPENDIX – PROJECT PLAN

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CANADIAN FOREST PRODUCTS LTD.

GRANDE PRAIRIE SAWMILL

BIOMASS TO ENERGY PROJECT

GREENHOUSE GAS REDUCTION OFFSET PROJECT PLAN

SEPTEMBER 2009

Canadian Forest Products Ltd – Grande Prairie Sawmill. Biomass to Energy Project Offset Project Plan – September 2009 2

EXECUTIVE SUMMARY The Biomass to Energy Project (“the Project”) is located adjacent to Canadian Forest Products Ltd.’s (“Canfor”) Grande Prairie sawmill in Grande Prairie, Alberta. This Offset Project Plan includes a description of the baseline and project condition, as well as sub-plans for quantification, monitoring and QA/QC procedures.

A biomass (wood residue) fired combined heat and power plant (“CHP”) was designed and installed adjacent to the Grande Prairie sawmill to burn the wood residue generated by the sawmill. This wood residue was previously burned on the sawmill site in an incinerator without energy recovery. The CHP facility is owned and operated by Canadian Gas and Electric Inc. (“CG&E”), a separate company from Canfor. An agreement between CG&E and Canfor stipulates that where the operation of the power plant may qualify under laws relating to the control of or reduction of greenhouse gas emissions, any domestic offset credits that may arise from or be attributable to such operation shall accrue to Canfor as to a pro rata share of electricity and heat energy purchased from the power plant and the displacement of natural gas consumption. Under the Project condition, the thermal energy generated by the burning of the biomass is used to generate steam and to produce electricity. Some of the steam is used to dry lumber in the sawmill and some is used by the CHP plant for process heating. The remainder of the steam is used to generate electricity. Some of the electricity is supplied to the sawmill. Additional electricity is sold by CG&E to third parties. Prior to the Project, the lumber was dried in kilns by a natural gas forced hot air system, and the space heating was done using natural gas. Electricity was supplied from the Alberta grid. The installation of the project substantially reduces the consumption of natural gas used for drying the dimensioned lumber in the kilns, and substantially reduces the electricity supplied by the Alberta grid to the sawmill. The reduced natural gas consumption creates an associated direct reduction in GHG emissions. The change in supply of electricity from the grid to supply from the CHP plant creates an associated indirect reduction in GHG emissions. These changes result in the creation of GHG offset credits. The baseline for the Project is the three year period from 2002 through 2004. Although electricity and steam supply from CG&E to Canfor began late in 2004, supply was unstable during commissioning, so the start of the project was taken as January 1, 2005. The GHG emission reduction credits from this project are outlined in the table below.



CONTENTS EXECUTIVE SUMMARY ........................................................................................................................2 CONTENTS .............................................................................................................................................3 1. INTRODUCTION.............................................................................................................................4 2. PROJECT AND PROPONENT IDENTIFICATION .......................................................................5 3. PROJECT DESCRIPTION..............................................................................................................6

a. Project Scope ............................................................................................................................6 b. Project Site Description...........................................................................................................8 c. Pre-Project Conditions ..........................................................................................................10 d. Actions Taken..........................................................................................................................10 e. Project Condition ....................................................................................................................10 f. Quantification Protocol Applicability ..................................................................................13 g. Inventory of Source and Sinks .............................................................................................13 h. Quantification of Reductions................................................................................................24 i. Offset Eligibility Requirements ............................................................................................24

4. IDENTIFICATION AND JUSTIFICATION OF BASELINE .........................................................25 a. Selection of Relevant Project and Baseline SS’s ..................................................................26

5. QUANTIFICATION OF EMISSION REDUCTIONS .....................................................................34 a. Process Description ...............................................................................................................34 j. Data Sources ...........................................................................................................................40 k. Quantification Plan.................................................................................................................40 l. Monitoring Plan.......................................................................................................................44 m. Metering Maintenance and Calibration ...............................................................................46 a. Record Keeping.......................................................................................................................47

6. REPORTING OF EMISSION REDUCTIONS ...............................................................................48


1. INTRODUCTION The Project is an energy substitution project at Canadian Forest Products Ltd.’s (“Canfor”) Grande Prairie sawmill, located in Grande Prairie, Alberta. The offset credits claimed herein are owned by Canfor. The opportunity for generating carbon offsets with this project arises from direct GHG emission reductions as a result of a reduction in the consumption of natural gas used at the facility and from indirect GHG emission reductions resulting from the supply of electricity from the combustion of biomass. GHG’s (CO2e’s) were emitted from the sawmill as a result of burning natural gas to supply the required heat to the process, and electricity was consumed from the Alberta grid. This project reduces the natural gas burned by the sawmill, and changes the supply of electricity to the sawmill from the Alberta grid to supply from the adjacent biomass-fired CHP plant. A new CHP biomass burning plant was designed and installed adjacent to the sawmill to burn wood residues. With the project in place, wood residues are efficiently combusted, high-pressure steam produced in boilers and electricity is generated by a steam driven turbine. A small amount of the electricity is used by the CHP plant, with the remainder sold to Canfor and other external parties. Low pressure steam is extracted off the turbine and used to supply thermal energy to the sawmill for lumber drying. Prior to the CHP project, the lumber drying and space heating systems utilized direct natural gas fired burners. Heated air generated by the burners was moved by fans to dry the lumber. The sawmill space heating systems continue to use natural gas fired forced air systems. This Offset Project Plan has been completed in accordance with the Offset Credit Project Guidance Document Version 1.2 (AENV, February 2008) and meets necessary eligibility criteria for generating and using emission offsets for registration in Alberta. The Project meets the requirements of the Quantification Protocol for Diversion of Biomass to Energy from Biomass Combustion Facilities (AENV, September 2007).


2. PROJECT AND PROPONENT IDENTIFICATION Corporate Contact Information: Canadian Forest Products Ltd. 100 – 1700 West 75th Ave. Vancouver, B.C. V6P 6G2

Contact: Michael Jordan Phone: 604- 661-5367 Fax: 604-661-5381 Email: [email protected]

Grande Prairie Sawmill Contact Information :

Canadian Forest Products Ltd. Postal Bag 100

9401 – 108th Street Grande Prairie, AB T8V 3A3

Contact : Don Dion Phone : 780 538 – 7784 Email : [email protected]

Direct and indirect emission reductions generated by the project are owned solely by Canadian Forest Products Ltd.

mailto:[email protected]

mailto:[email protected]


3. PROJECT DESCRIPTION

a. Project Scope Historically, finished lumber at the sawmill was dried in kilns using a natural gas, forced air system. Space heating was performed using natural gas fired air heating systems. Electricity for the sawmill was supplied from the Alberta grid. The lumber that is milled and planed needs to be heat treated in lumber drying kilns to meet moisture specifications for quality as set out by the Alberta Forest Products Association (AFPA) or similar market requirements. The dry kilns are designed to circulate hot air around each board of dimension lumber and dry the product to a desired moisture content. Prior to the project, the direct natural gas fired burners provided the necessary thermal energy to produce hot air for this lumber treatment. Space heating was accomplished using natural gas fired forced air systems. Electricity was supplied to the sawmill to operate various sawmill systems from the Alberta grid. No other source of electricity was available to the sawmill. Wood residue generated by the sawmill was burned on site in an incinerator with no on site energy recovery with a portion sent to a particleboard plant in Wanham Alberta for utilization. The baseline condition for the sawmill is depicted in Figure 3.1 below.

Figure 3.1 – Baseline Condition Process Flow Diagram

Sawmill

Natural Gas

Electricity

Ash

Kiln Dried Lumber

Chips

Indirect Emissions Due to Electricity Consumption and Natural Gas Extraction

and Processing and offsite trucking of some sawdust and shavings to Wanham.

Direct Emissions Due to Natural Gas Combustion

Direct Emissions Due to Wood Residue (Bark and White Wood)

Combustion in sawmill incinerator

Raw Logs

Project Boundary


The project was developed to recover heat content in the low cost (or no cost) wood residue generated by the sawmill during sawmilling and planing by burning it as a displacement for high cost grid based electricity and natural gas. The Project was designed and built by Canadian Gas & Electric (CG&E) a wholly owned subsidiary of Canadian Hydroelectric Developers Inc. CG&E and Canfor entered into an agreement stipulating, among other things, the purchase and sale of land for the project, shared maintenance of the CHP project facility, wood residue supply to the power plant, heat energy supply to the sawmill, capacity and electricity supply to the sawmill, and environmental cooperation. As a part of this agreement, any domestic offset credits that may arise from or be attributable to the operation of the power plant shall accrue to Canfor as to a pro rata share of electricity and heat energy purchased from the power plant and the displacement of natural gas consumption. The CHP plant includes a steam turbine and generator with a capacity of up to 25 MW, stepped grate combustors for incinerating wood residue, steam boilers, a contained wood residue storage area, a wood residue sorting and handling system, a heat energy delivery system including above ground steam and condensate return lines, all interconnections for electricity delivery to Canfor, separate transmission line for power sales into the Alberta Power Pool and back-up grid electricity supply, heat energy connections, required utilities connections, and roadways. Wood residue is conveyed from the sawmill directly to the CHP plant. The CHP plant also accepts delivery of wood residue from external sources. Electricity and steam from the CHP plant is delivered to the Canfor sawmill and replaces the electricity and natural gas (except for space heating) used in the baseline condition. Ash from the combustion of biomass is now produced at the CHP plant and appropriately disposed. The Project condition is depicted in Figure 3.2 below. The CHP plant has a higher capacity than the wood residue delivered via conveyor directly from the Grande Prairie Sawmill. Additional wood residue is trucked to the CHP plant and consequently, the plant produces excess electricity which is sold to third parties. However, all of the energy required by the Grande Prairie Sawmill (both electricity and steam) can be generated through a portion of the wood residue provided by the Grande Prairie sawmill alone. In fact, the Grande Prairie sawmill delivers wood residue far in excess of what is necessary to generate its required electricity and steam.


Figure 3.2 – Project Condition Process Flow Diagram

b. Project Site Description The Grande Prairie sawmill is located on 108th Street (Wapiti Road) in Grande Prairie Alberta. The legal description of the site is Section 23, Township 71, Range 6, Meridian 6. A site plan is shown below in Figure 3.3.

Canfor Sawmill

Natural Gas (Back Up)

Kiln Dried Lumber

Chips

Electricity (Back Up)

Direct Emissions Due to Wood Residue Combustion

Direct Emissions Due to Natural Gas Combustion (Back Up Only)

Indirect Emissions Due to Electricity Consumption (Back Up Only), and

Natural Gas Extraction and Processing

CHP Plant Ash

Electricity and Steam from CHP Plant to

Mill

Wood Residue,

(Bark, White Wood) from sawmill to CHP Plant

Electricity to 3rd Parties Wood Residue from other sources

Project Boundary

Natural Gas (For Space Heating Only)

Raw Logs

Electricity (back up)

~2/3

~1/3

Condensate from Sawmill to CHP Plant

Direct Emissions due to Natural Gas Combustion

Indirect Emissions due to Natural Gas Extraction and Processing

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.Figure 3.3 - Site Plan

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c. Pre-Project Conditions Prior to the implementation of the Project, lumber was dried in the kilns using natural gas. Natural gas also was used for space heating in the sawmill buildings. Figure 3.4 outlines the inputs and outputs of the kiln in the pre project condition. As such, had the Project not been initiated by Canfor and CG&E, energy requirements for the sawmill would not have changed, and natural gas and electricity consumption would have remained at pre Project levels. The baseline condition for this project is the operation of the sawmill without the adjacent biomass combustion facility including the use of natural gas and electricity to operate the sawmill and natural gas for space heating. Incineration of biomass was performed on site. The baseline selected is an historical one, as it best represents the conditions that would have persisted had the Project not taken place.

d. Actions Taken The actions taken were to:

a) Design and install a 25 MW CHP plant to utilize wood residue and displace electricity and natural gas usage; and,

b) Design and install systems to transfer the wood residue directly to the combustion system, and

c) Design and install systems to transfer steam and electricity from the CHP plant to the sawmill and systems to transfer condensate from the sawmill to the CHP plant.

d) Eliminate the use of a wood residue incinerator on the Grande Prairie site.

e. Project Condition Since the installation and commencement of the project on January 1, 2005, apart from periods during initial commissioning, all of the sawmill’s wood residue is burned in the new CHP plant. The sawmill incinerator was kept operational to deal with wood residue accumulations during the initial commissioning period. The offset calculation reflects this initial commissioning period. The steam energy transferred to the sawmill completely eliminates the consumption of natural gas in the lumber drying process. Space heating requirements of the sawmill continue to be supplied by natural gas. Electricity is supplied to the sawmill from the CHP plant. Other components of the wood (chips) continue to be shipped to local pulp mills as was the case prior to the Project implementation. No material changes occurred for these components. Figure 3.5 below outlines the Project Condition.


Figure 3.4: Pre Project Condition

Raw Logs

Natural Gas

Electricity from Alberta Grid

Finished Lumber (Heat Treated)

SAWMILL

Production Related

Emissions Related

Production Related

Emissions Related

CO2e Emissions due to Burning of Natural Gas

Indirect Emissions due to Electricity Consumption and offsite trucking to Wanham

INPUTS OUTPUTS

Chips

CO2e Emissions due to Burning of Wood Residue


Figure 3.5: Project Condition

Sawmill Production average for the period of 2005 through 2008 is slightly reduced from the baseline (3 year average of 2002 through 2004 = 219,041 MMfbm) as shown in Table 3.1. However, the reduction of consumption of natural gas and purchased grid electricity are proportionally much larger than any production decline. Therefore, the GHG intensity and absolute direct and indirect GHG emissions have fallen significantly.

Table 3.1: Grande Prairie Lumber Production

Year Sawmill Production (MMfbm) 2002 207,718 2003 210,198 2004 239,206 2005 225,634 2006 217,960 2007 203,538 2008 216,167

Sawmill & Part of

the CHP plant

Production Related (No Changes)

Emissions Related (Electricity and Heat now from CHP Plant) Emissions Related

(Direct sawmill emissions are now all related to the combustion of natural gas for space heating)

Production Related (No Changes)

INPUTS OUTPUTS

Raw Logs

Finished Lumber (Heat Treated)

Chips

A Portion of the Natural Gas Backup to CHP Plant

Electricity from the Grid to Sawmill (periodic)

Natural Gas (Space Heating Only Mill)

CO2e Emissions due to Burning of Natural Gas

Indirect Emissions due to Electricity Consumption

CO2e Emissions due to Burning of Wood Residue


f. Quantification Protocol Applicability The applicability criteria, identification of sources and sinks, and quantification methodologies for this Project have been determined in accordance with the Quantification Protocol for Diversion of Biomass to Energy from Biomass Combustion Facilities (AENV, September 2007)(“the Protocol”). As outlined in the Protocol, the project proponent has sufficient evidence to demonstrate:

1. That the thermal energy produced from biomass is offsetting fossil fuel generated energy from natural gas;

2. That the Quantification of reductions of greenhouse gases achieved by the Project is based

on actual measurement and monitoring of energy consumption (except where indicated in the protocol), and;

3. That the Project meets the requirements for offset eligibility as specified in the application

regulation and guidance documents for the Alberta Offset System. Of particular Note:

a. The Project was implemented after January 1, 2002; b. Ownership of the emission reduction offsets is established as indicated by facility

records and contract between Canfor and CG&E c. The emission reductions are real, demonstrable and quantifiable d. The emission reductions are not required by law e. The emission reduction project is located in Alberta f. The emissions reduction is only being counted once g. The emission reduction will be verified by 3rd party

Note: Since most of the wood residue was burned prior to Project implementation (small amount to Wanham Particleboard Plant), the Project is not claiming further emission reductions from avoided anaerobic decomposition. The exclusion of this source results in a more conservative baseline. A minor exception to this approach is described below in Section 4, Identification and Justification of Baseline – Temporary Beneficial Use of Shavings and Sawdust.

g. Inventory of Source and Sinks

The various sources and sinks (“SS”) described in the protocol were analyzed in terms of their reasonableness with respect to the Project. Tables 3.2 and 3.3 below summarize all of the sources and sinks considered by the protocol. Below the table is an analysis of how the various sources and sinks relate to the Project.

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TABLE 3.2 Project Sources and Sinks

1. SS 2. Description 3.

Controlled, Related or Affected

Upstream SS’s during Project Operation P1 Collection of Biomass

Biomass may be collected from the forest floor, agricultural facilities, landfills or from industrial facilities into storage piles using heavy equipment or conveyors. Collection of biomass from the forest floor is typically a component of the forest management plan or an additional function to gather the material for use. This would typically be completed by diesel-fuelled bulldozers. Collection of biomass from agricultural facilities, such as tree farms, would be completed by heavy equipment such as tractors or bulldozers as part of the site operational plan. Collection of biomass from a landfill is a resource recovery procedure. It reduces the quantity of wood residue in the landfill and serves to extend the life cycle of existing landfills. This is typically accomplished using heavy equipment such as bulldozers and excavators. Collection of biomass from industrial facilities is typically done as a means of keeping the work area clean. The biomass would either be mechanically or manually collected, and conveyed or moved in batches by heavy equipment. For the majority of situations, collection activities are fuelled by diesel, gasoline, or natural gas, resulting in GHG emissions. Other fuels may also be used in some rare cases. Quantities of each of the energy inputs would be contemplated to evaluate functional equivalence with the baseline condition.

Related

P2 Storage of Biomass

Biomass may be stored in piles where anaerobic decomposition may occur, resulting in the emission of methane gas. These piles may consist of storage piles at forestry, agricultural or industrial sites. Any energy inputs to this SS, for wetting of biomass or agitation of biomass, would be covered under P4 Transfer of Biomass as these elements are typically related. The characteristics of these storage piles, in terms of size, shape, composition and duration of storage are all pertinent to evaluate functional equivalence with the baseline condition.

Related

P3 Processing

Biomass may be processed off site using a series of mechanical processes, heavy equipment and conveyors. This equipment would be fuelled by diesel, gasoline or

Related


of Biomass natural gas, resulting in GHG emissions. Other fuels may also be used in some rare cases. Quantities and types for each of the energy inputs would be tracked.

P4 Transfer of Biomass

Biomass may be transferred from storage piles into containers (truck trailers, rail cars or storage bins) or onto conveyors for transport to the project site. This may involve the use of heavy equipment such as loaders and cranes, or other mechanized devices. This equipment would be fuelled by diesel, gasoline, natural gas or electricity, resulting in GHG emissions. Other fuels may also be used in some rare cases. Any energy inputs associated with P2 Storage of Biomass, such as wetting of biomass or agitation of biomass, are to be included here. Further, if the material is conveyed to the project site, then the related energy inputs would be captured under this SS. Quantities for each of the energy inputs would be contemplated to evaluate functional equivalence with the baseline condition.

Related

P5 Transport of Biomass

Biomass may be transported to the project site by truck, barge and/or train. The related energy inputs for fuelling this equipment are captured under this SS, for the purposes of calculating the resulting greenhouse gas emissions. Type of equipment, number of loads and distance travelled would be used to evaluate functional equivalence with the baseline condition.

Related

P22 Fuel Extraction / Processing

Each of the fuels used throughout the on-site component of the project will need to be sourced and processed. This will allow for the calculation of the greenhouse gas emissions from the various processes involved in the production, refinement and storage of the fuels. The total volumes of fuel for each of the on-site SS’s are considered under this SS. Volumes and types of fuels are the important characteristics that may need to be tracked.

Related

P23 Fuel Delivery

Each of the fuels used throughout the on-site component of the project will need to be transported to the site. This may include shipments by tanker or by pipeline, resulting in the emissions of greenhouse gases. It is reasonable to exclude fuel sourced by taking equipment to an existing commercial fuelling station as the fuel used to take the equipment to the site is captured under other SS’s and there are no other delivery emissions as the fuel is already going to the commercial fuelling station. Distance and means of fuel delivery as well as the volumes of fuel delivered are the important characteristics that may need to be tracked.

Related

Onsite SS’s during Project Operation P7 Storage Biomass may be stored on-site in piles where anaerobic decomposition may occur, Controlled


of Biomass resulting in the emission of methane gas. These piles are typically maintained as small mounds with short residency times on-site due to lack of storage, in order to maintain the functional order of the facility and/or to mitigate risks from self-combustion. Storage piles generally represent 1 month’s operation or less, so this SS is expected to be negligible. The characteristics of these storage piles, in terms of size, shape, composition and duration of storage may all need to be tracked.

Biomass may be transferred from transportation bins to the processing systems using a combination of loaders, cranes, conveyors and other mechanized devices. This equipment would be fuelled by diesel, gasoline or natural gas, resulting in GHG emissions. Other fuels may also be used in some rare cases. Any energy inputs associated with P7 Storage of Biomass, such as wetting of biomass or agitation of biomass, are to be included here. Quantities and types for each of the energy inputs would be tracked. Biomass may be processed on site using a series of mechanical processes, heavy equipment and conveyors. This equipment would be fuelled by diesel, gasoline or natural gas, resulting in GHG emissions. Other fuels may also be used in some rare cases. Quantities and types for each of the energy inputs would be tracked. Biomass may be transferred from processing (or from the storage piles if there are no processing systems) to the combustion facility using a combination of loaders, cranes, conveyors and other mechanized devices. This equipment would be fuelled by diesel, gasoline or natural gas, resulting in GHG emissions. Other fuels may also be used in some rare cases. Quantities and types for each of the energy inputs would be tracked. Greenhouse gas emissions may occur that are associated with the start-up of the biomass power facility. This may include the running of auxiliary equipment or burning of various fuels to warm up the equipment. These start-up periods may be after both scheduled and non-scheduled shut-downs of the facility. Quantities and types for each of the energy inputs would be tracked.

P6, P8 to P11, P13, P14 and P16 Facility Operation

Greenhouse gas emissions may occur that are associated with the operation and maintenance of the biomass power facility. This may include running any auxiliary or monitoring systems. Quantities and types for each of the energy inputs would be tracked.

Controlled


The operation of air quality control equipment on site may be powered by diesel, gasoline or natural gas. Other fuels may also be used in some rare cases. Quantities and types for each of the energy inputs would be tracked. Wood residue may be transferred from the combustion process to a storage area using a combination of loaders, cranes, conveyors and other mechanized devices. This equipment would be fuelled by diesel, gasoline or natural gas, resulting in GHG emissions. Other fuels may also be used in some rare cases. Quantities and types for each of the energy inputs would be tracked. Wood residue may be transferred from the wood residue storage area to containers for the transportation of the wood residue offsite using a combination of loaders, cranes, conveyors and other mechanized devices. This equipment would be fuelled by diesel, gasoline or natural gas, resulting in GHG emissions. Other fuels may also be used in some rare cases. Any energy inputs associated with P15 Storage of Wood residue, such as wetting, sorting or agitation of the wood residue, are to be included here. Quantities and types for each of the energy inputs would be tracked.

P12 Combustion of Biomass

The combustion of biomass yields greenhouse gas emissions. The carbon dioxide component of these emissions is deemed to be biogenic, however the remaining components must be considered. Quantity of biomass combusted would be tracked.

Controlled

P15 Storage of Wood residue

Wood residue, representing predominantly non-combustible inert materials such as fly ash, sand and rocks, may be stored on-site in piles where limited anaerobic decomposition may occur, resulting in the emission of methane gas. These piles are typically maintained with short residency times on site in order to maintain the order of the facility. The characteristics of these storage piles, in terms of size, composition, shape and duration of storage may all need to be tracked.

Controlled

P21 Electricity Usage

Electricity may be required for operating the facility. This power may be sourced either from internal generation, connected facilities or the local electricity grid. Metering of electricity may be netted in terms of the power going to and from the grid. Quantity and source of power are the important characteristics that may need to be tracked as they directly relate to the quantity of greenhouse gas emissions.

Controlled

Downstream SS’s during Project Operation P17 Wood residue materials may be transported to disposal sites by truck, barge and/or Related


Transport of Wood residue

train. The related energy inputs for fuelling this equipment are captured under this SS, for the purposes of calculating the resulting greenhouse gas emissions. Type of equipment, number of loads and distance travelled would be used to evaluate functional equivalence with the baseline condition.

P18 Disposal of Wood residue

Wood residue may be disposed of at a disposal site (typically landfill or land application location) by transferring the wood residue from the transportation container, spreading, burying, processing, otherwise handling the wood residue using a combination of loaders, conveyors and other mechanized devices. This equipment would be fuelled by diesel, gasoline or natural gas, resulting in GHG emissions. Other fuels may also be used in some rare cases. Quantities and types for each of the energy inputs may need to be tracked.

Related

Wood residue may decompose in the disposal facility resulting in the production of methane. Under two alternatives, the fly ash (either with or without the other wood residue products from the facility) may either be used as a soil amendment or as a concrete amendment. Disposal site characteristics and mass disposed of at each site may need to be tracked.

P19 and P20 Decomposition of Wood residue and Methane Collection / Destruction

A methane collection and destruction system may be in place at the disposal site. If such a system is active in the area of the landfill where this wood residue is being disposed, then this methane collection must be accounted for in a reasonable manner. The characteristics of the methane collection and destruction system may need to be tracked

Related

Other

P24 Development of Site

The site of the energy from biomass facility may need to be developed. This could include civil infrastructure such as access to electricity, natural gas and water supply, as well as sewer etc. This may also include clearing, grading, building access roads, etc. There will also need to be some building of structures for the facility such as storage areas, storm water drainage, offices, vent stacks, firefighting water storage lagoons, etc., as well as structures to enclose, support and house the equipment. Greenhouse gas emissions would be primarily attributed to the use of fossil fuels and electricity used to power equipment required to develop the site such as graders, backhoes, trenching machines, etc.

Related

P25 Building Equipment

Equipment may need to be built either on-site or off-site. This includes all of the components of the storage, handling, processing, combustion, air quality control, system control and safety systems. These may be sourced as pre-made standard

Related


equipment or custom built to specification. Greenhouse gas emissions would be primarily attributed to the use of fossil fuels and electricity used to power equipment for the extraction of the raw materials, processing, fabricating and assembly.

P26 Transportation of Equipment

Equipment built off-site and the materials to build equipment on-site, will all need to be delivered to the site. Transportation may be completed by truck, train and/or barge. Greenhouse gas emissions would be primarily attributed to the use of fossil fuels to power the equipment delivering the equipment to the site.

Related

P27 Construction on Site

The process of construction at the site will require a variety of heavy equipment, smaller power tools, cranes and generators. The operation of this equipment will have associated greenhouse gas emission from the use of fossil fuels and/or electricity.

Related

P28 Testing of Equipment

Equipment may need to be tested to ensure that it is operational. This may result in running the equipment using test biomass fuels or fossil fuels in order to ensure that the equipment runs properly. These activities will result in greenhouse gas emissions associated with the combustion of fossil fuels and the use of electricity.

Related

P29 Site Decommissioning

Once the facility is no longer operational, the site may need to be decommissioned. This may involve the disassembly of the equipment, demolition of on-site structures, disposal of some materials, environmental restoration, re-grading, planting or seeding, and transportation of materials off-site. Greenhouse gas emissions would be primarily attributed to the use of fossil fuels and electricity used to power equipment required to decommission the site.

Related

TABLE 3.3 Baseline Sources and Sinks

1. SS 2. Description 3.

Controlled, Related or Affected

Upstream SS’s during Baseline Operation B1 Collection of Biomass

Biomass may be collected from either the forest floor, agricultural facilities or from industrial facilities into storage piles using heavy equipment or conveyors. Collection of the biomass from the forest floor is typically a component of the forest management plan or an additional function to gather the material for use. This would typically be completed by diesel fuelled bulldozers. Collection of biomass from agricultural facilities, such as tree farms, would be

Related


completed by heavy equipment such as tractors or bulldozers as part of the site operational plan. Collection of biomass from industrial facilities is typically done as a means of keeping the work area clean. The biomass would either be mechanically or manually collected, and conveyed or moved in batches by heavy equipment. For the majority of situations, collection activities are fuelled by diesel, gasoline, natural gas or electricity, resulting in GHG emissions. Other fuels may also be used in some rare cases. Quantities of each of the energy inputs would be contemplated to evaluate functional equivalence with the project condition.

B2 Storage of Biomass

Biomass may be stored in piles where anaerobic decomposition may occur, resulting in the emission of methane gas. These piles may consist of storage piles at forestry, agricultural or industrial sites. Any energy inputs to this SS, for wetting of biomass or agitation of biomass, would be covered under B4 Transfer of Biomass as these elements are typically related. The characteristics of these storage piles, in terms of size, shape, composition and duration of storage are all pertinent to evaluate functional equivalence with the project condition.

Related

B3 Processing of Biomass

Biomass may be processed off site using a series of mechanical processes, heavy equipment and conveyors. This equipment would be fuelled by diesel, gasoline or natural gas, resulting in GHG emissions. Other fuels may also be used in some rare cases. Quantities and types for each of the energy inputs would be tracked.

Related

B4 Transfer of Biomass

Biomass may be transferred from storage piles into containers (truck trailers, rail cars or storage bins) on onto conveyors for transport to the disposal site. This may involve the used of heavy equipment such as loaders and cranes, or other mechanized devices. This equipment would be fuelled by diesel, gasoline, natural gas or electricity, resulting in GHG emissions. Other fuels may also be used in some rare cases. Any energy inputs associated with B2 Storage of Biomass, such as wetting of biomass or agitation of biomass, are to be included here. Further, if the material is conveyed to the project site, then the related energy inputs would be captured under this SS. Quantities for each of the energy inputs would be contemplated to evaluate functional equivalence with the project condition.

Related

B5 Transport of Biomass

Biomass may be transported to the disposal site by truck, barge and/or train. The related energy inputs for fuelling this equipment are captured under this SS, for the purposes of calculating the resulting greenhouse gas emissions. Type of equipment,

Related


number of loads and distance travelled would be used to evaluate functional equivalence with the project condition.

B13 Fuel Extraction / Processing

Each of the fuels used throughout the on-site component of the project will need to be sourced and processed. This will allow for the calculation of the greenhouse gas emissions from the various processes involved in the production, refinement and storage of the fuels. The total volumes of fuel for each of the on-site SS’s are considered under this SS. Volumes and types of fuels are the important characteristics to be tracked.

Related

B14 Fuel Delivery

Each of the fuels used throughout the on-site component of the project will need to be transported to the site. This may include shipments by tanker or by pipeline, resulting in the emissions of greenhouse gases. It is reasonable to exclude fuel sourced by taking equipment to an existing commercial fuelling station as the fuel used to take the equipment to the site is captured under other SS’s and there is no other delivery.

Related

Onsite SS’s during Baseline Operation B11 Electricity Production

Electricity will be produced off-site to match the electricity being produced by the energy from biomass facility net of parasitic loads. This electricity will be produced at an emissions intensity as deemed appropriate by the Program Authority. Measurement of the gross quantity of electricity produced by the facility will need to be tracked to quantify this SS. The gross quantity of electricity produced should be net of any electricity sold as Renewable Energy Credits (RECs) as defined by the Environmental Choice Program.

Controlled

B12 Thermal Energy Production

The production of thermal energy may be required to meet the demands of facilities being provided with thermal energy from the project site. This thermal energy may have been derived from wood residue heat recovery systems resulting in an energy burden on the systems from which the heat is being recovered or directly from combustion of fossil fuels. Energy requirements, fuel volumes and fuel types will need to be tracked.

Controlled


Biomass may be transferred from transportation containers to the disposal systems using a combination of loaders, cranes, conveyors and other mechanized devices. This equipment would be fuelled by diesel, gasoline, natural gas or electricity, resulting in GHG emissions. Other fuels may also be used in some rare cases. Quantities and types for each of the energy inputs would be tracked.

Controlled

B8 Disposal of Biomass

Biomass may be disposed of at a disposal site by transferring the biomass from the transportation container, spreading, burying, processing, otherwise handling the biomass using a combination of loaders, conveyors and other mechanized devices.

Controlled


This equipment would be fuelled by diesel, gasoline, natural gas or electricity, resulting in GHG emissions. Other fuels may also be used in some rare cases. Quantities and types for each of the energy inputs would be tracked if the SS is to be included. Wood residue may decompose in the disposal facility resulting in the production of methane. Disposal site characteristics and mass disposed of at each site are to be tracked

B9 and B10 Decomposition of Biomass and Methane Collection / Destruction

A methane collection and destruction system may be in place at the disposal site. If such a system is active in the area of the landfill where this wood residue is being disposed, then this methane collection must be accounted for in a reasonable manner. The characteristics of the methane collection and destruction system must be tracked

Controlled

Downstream SS’s during Baseline Operation B7 Beneficial Use of Biomass

Biomass may be put to beneficial use. Biomass may be included in new, refurbished, processed or recycled products. This may also include use in electrical and power generation. The greenhouse gas emissions are associated with the energy inputs and processes required would need to be tracked.

Related

Others B15 Development of Site

The site may need to be developed under the baseline condition. This could include civil infrastructure such as access to electricity, natural gas and water supply, as well as sewer etc. This may also include clearing, grading, building access roads, etc. There will also need to be some building of structures for the facility such as storage areas and offices, etc., as well as structures to enclose, support and house any equipment. Greenhouse gas emissions would be primarily attributed to the use of fossil fuels and electricity used to power equipment required to develop the site such as graders, backhoes, trenching machines, etc.

Related

B16 Building Equipment

Equipment may need to be built either on-site or off-site. This can include the baseline components for the storage, handling and processing of the biomass. These may be sourced as pre-made standard equipment or custom built to specification. Greenhouse gas emissions would be primarily attributed to the use of fossil fuels and electricity used to power equipment for the extraction of the raw materials, processing, fabricating and assembly.

Related

B17 Transportation of Equipment

Equipment built off-site and the materials to build equipment on-site, will all need to be delivered to the site. Transportation may be completed by truck, train and/or barge. Greenhouse gas emissions would be primarily attributed to the use of fossil fuels to power the equipment delivering the equipment to the site.

Related


B18 Construction on Site

The process of construction at the site will require a variety of heavy equipment, smaller power tools, cranes and generators. The operation of this equipment will have associated greenhouse gas emission from the use of fossil fuels and electricity.

Related

B19 Testing of Equipment

Equipment may need to be tested to ensure that it is operational. These activities may result in greenhouse gas emissions associated with the combustion of fossil fuels and the use of electricity.

Related

B20 Site Decommissioning

Once the facility is no longer operational, the site may need to be decommissioned. This may involve the disassembly of the equipment, demolition of on-site structures, disposal of some materials, environmental restoration, re-grading, planting or seeding, and transportation of materials off-site. Greenhouse gas emissions would be primarily attributed to the use of fossil fuels and electricity used to power equipment required to decommission the site.

Related

24

h. Quantification of Reductions

Quantification of reductions of greenhouse gases achieved by the Project is achieved by actual measurement and monitoring of energy consumption, as outlined in section 5 of this Offset Project Plan, using the sources and sinks identified in section 3g above.

i. Offset Eligibility Requirements

The Project meets the requirements for offset eligibility as specified in the applicable regulation and guidance documents for the Alberta Offset System. In particular:

a. The start-up of the CHP Plant was January 1, 2005, which is after the specified start date of January 1, 2002.

b. As mentioned above, Canfor possesses ownership rights to the offsets generated under

the Project. An agreement between CG&E and Canfor stipulates that where the operation of the power plant may qualify under laws relating to the control of or reduction of greenhouse gas emissions, any domestic offset credits that may arise from or be attributable to such operation shall accrue to Canfor as to a pro rata share of electricity and heat energy purchased from the power plant and the displacement of natural gas consumption.

c. The emission reductions are real, demonstrable and quantifiable.

d. The emission reductions are not required by law.

e. The emission reduction project is located in Grande Prairie Alberta.

f. The emissions reduction is only being counted once.

g. The emission reduction will be verified by 3rd party.


4. IDENTIFICATION AND JUSTIFICATION OF BASELINE The condition that would have persisted had the Project not been implemented is that natural gas would have continued to be used to supply 100% of the heat energy required in the lumber drying kilns. Electricity would have continued to be supplied from the Alberta grid. As of January 1, 2005, apart from periods during initial CHP plant commissioning, all of the wood residue generated by the Grande Prairie sawmill had been diverted to the CHP plant. The sawmill incinerator was kept operational to deal with wood residue accumulations during the initial commissioning period. The offset calculation reflects this initial commissioning period. Wood residue was used in the CHP plant, and chips continued to be shipped off site, with the exception of the temporary beneficial use of shavings and sawdust described below. Accordingly, the baseline condition for the Project includes the fossil fuel (natural gas) consumed by the lumber drying system and the space heating system for the sawmill, and the electricity consumed by the sawmill in the pre-project condition. The baseline selected is historical, and is the average of 2002, 2003 and 2004 for these factors. All other factors are considered to be immaterial or functionally equivalent. This baseline is the condition that most likely would have persisted for the facility if the CHP plant was not installed. For the purposes of the Project, this is assumed to be the three calendar year period immediately proceeding the calendar year in which the Project was implemented. Temporary beneficial use of Shavings and Sawdust A change occurred in 2003 when a portion of the wood residue (shavings and sawdust) was diverted from on site combustion to the manufacture of particleboard. Shavings and sawdust were trucked from the Grande Prairie sawmill to a particle board facility 180 km away (Wanham, Alberta). This resulted in the beneficial use of this portion of the wood residue. This condition continued until the fall of 2005 at which point this portion of the wood residue was no longer trucked offsite, and it was re-directed to the new CHP plant and once again combusted. During the temporary period of off site usage, GHG’s associated with the transportation of the shavings and sawdust to the offsite facility were generated and GHG’s associated with the combustion of this wood residue were avoided. If the CHP plant had not been built, the GHG’s associated with this offsite transportation would have persisted, and therefore, a shorter baseline (starting in 2003) could have been constructed using a higher amount of GHG’s emitted by including these transportation related GHG’s in the baseline calculation. However, under this circumstance, it would also be necessary to add to the project condition, emissions associated with the combustion of the shavings and sawdust. The transportation GHG’s during the temporary beneficial use period have been calculated and are higher per unit time than the non biogenic GHG’s (methane and oxides of nitrogen) associated with


the combustion of this portion of the wood residue. This means that if the baseline had been selected as described above, there would be an additional credit associated with the Project. However, excluding these transportation GHG’s in the baseline results in a lower baseline and is more conservative. Due to the temporary nature of offsite usage, and the fact that prior to this temporary use the shavings and sawdust were combusted, Canfor is not claiming a reduction in GHG’s associated with the elimination of trucking of this portion of the wood residue to offsite facilities.

a. Selection of Relevant Project and Baseline SS’s As discussed in the protocol, many of the sources and sinks in Tables 3.2 and 3.3 are excluded from the quantification of the GHG reduction because they are considered to be immaterial or functionally equivalent under both baseline and project conditions (See Section 5, Quantification). Some elements are excluded because they are not affected by the implementation of the project (for example, sawmill and planer operations, administration building heating, mobile equipment workshop heating). Each of the SS’s from the project and baseline condition were compared and evaluated as to their relevancy using the guidance provided in Annex VI of the “Guide to Quantification Methodologies and Protocols: Draft”, dated March 2006 (Environment Canada). The justification for the exclusion or conditions upon which SS’s may be excluded is summarized in Table 4.1 below. All other SS’s listed previously are included.

27

Table 4.1 Sources and Sinks 1. Baseline Options

2. Baseline (C, R, A)

2. Project (C, R, A)

4. Include or Exclude from Quantification

5. Justification for Exclusion

Upstream SS’s P1 Biomass Collection N/A Related

B1 Biomass Collection Related N/A

Exclude Under the majority of project and baseline configurations, the collection of biomass will be functionally equivalent. These SS’s may therefore be excluded.

P2 Storage of Biomass N/A Related

B2 Storage of Biomass

Related N/A Exclude

Under the majority of project and baseline configurations, the storage of biomass will be functionally equivalent. In addition, under the majority of project configurations, the storage of biomass under conditions conducive to anaerobic digestion (i.e. in piles, windrows or in landfill) under the project condition is for less than six months. The generation of methane from typical biomass materials over a period of less than 6 months is considered to be negligible.

P3 Processing of Biomass N/A Related

B3 Processing of Biomass Related N/A

Exclude

Under the majority of project and baseline configurations, the transfer of biomass will be functionally equivalent and therefore these SS’s may therefore be excluded.

P4 Transfer of Biomass N/A Related

B4 Transfer of Biomass Related N/A

Exclude

Under the majority of project and baseline configurations, the transfer of biomass will be functionally equivalent and therefore these SS’s may therefore be excluded.

P5 Transport of Biomass N/A Related

B5 Transport of Biomass Related N/A

Exclude Under the Majority of project and baseline configurations, the transfer of biomass will be functionally equivalent and therefore these SS’s may be excluded.

P22 Fuel Extraction / Processing

N/A Related

B13 Fuel Extraction / Processing

Related N/A

Include

N/A


P23 Fuel Delivery

N/A Related

B14 Fuel Delivery

Related N/A Exclude

These SS’s are not relevant to the project as the emissions from these practices are covered under proposed greenhouse gas regulations.

Onsite SS’s P7 Storage of Biomass

N/A Controlled Exclude

As per the discussion on P2 and B2 Storage of Biomass, the majority of project configurations limit the storage of biomass under conditions conducive to anaerobic digestion (i.e. in piles, windrows or in landfill) to less than six months. The emissions from the storage under this SS will be similarly minimal and therefore are excluded. However, this SS may be included as a flexibility mechanism in cases where extended storage occurs, i.e. greater than six months.


N/A Controlled Include

The operation of the CHP plant does not involve the use of natural gas or other fossil fuels, except under unusual conditions (there is a loader that moves wood residues in the storage building and yard at the CHP plant, but emissions have been calculated and are not material). The equipment involved in the storage and movement of wood residue utilize electricity (for example, motors for conveyors) supplied by the CHP system (parasitic load). This includes the operation of the electrostatic precipitator (ESP). Therefore, the only GHG’s associated with the facility operation relate to the natural gas used for space heating, except under unusual conditions.

P12 Combustion of Biomass

N/A Controlled Exclude

Since the wood residue from the Grande Prairie sawmill was burned in the baseline condition (with the exception of the Wanham residues discussed above) and it is also burned in the Project condition (even though it is outside the boundary of the sawmill), the GHG emissions from the combustion of biomass are treated as functionally equivalent, and therefore excluded from the analysis.

P15 Storage of Wood residue N/A Controlled Exclude

As per the discussion on P2 and B2 Storage of Biomass, the project proponent can demonstrate that the storage of wood residue under conditions conducive to anaerobic digestion (i.e. in piles, windrows or in landfill) under the project condition was for less than six months. The wood residue material is of much smaller


volumes compared to the biomass processed by the facility. Further, it is rendered essentially inert and would therefore undergo anaerobic digestion to a lesser extent than the non-combusted biomass. Therefore, the emissions from the storage of wood residue under this SS will be small and therefore may be excluded.

P21 Electricity Usage

N/A Controlled Exclude This SS is not relevant because as the emissions from the electricity consumed at the facility are covered under proposed greenhouse gas regulations

B11 Electricity Production N/A N/A Include

Only the electricity consumed by the sawmill is included as this is the electricity being displaced by the CHP system. Canfor is not claiming additional offsets beyond the electricity consumed by the sawmill.

B12 Thermal Energy Production

Controlled N/A Include Natural gas is consumed by the sawmill for the drying of lumber and for space heating.


Controlled N/A Exclude

The greenhouse gas emissions covered under this SS result from the operation of equipment and machinery at the disposal site for transferring wood residue from the transportation containers. The incremental operation of this equipment to deal with the biomass is the primary concern. Emissions under this SS represent incremental emissions under the baseline condition. Therefore, inclusion of this SS in the calculation increases the emission reduction claim, so excluding this SS is conservative.

B8 Disposal of Biomass Controlled N/A Exclude

Excluded as the volume of biomass being disposed of represents less than 5% of the annual wood residue disposed of at the disposal facility under the majority of configurations.

B9 and B10 Decomposition of Biomass and Methane Collection / Destruction

Related N/A Exclude

In accordance with section 3f above, Canfor is NOT claiming any reductions from avoided anaerobic decomposition as all biomass generated by the sawmill was combusted on site or utilized off site during the baseline condition. Sources B9 and B10 of the protocol are not included in the analysis, which results in a lower baseline, making the assessment of any emissions reductions in the project condition more conservative

Downstream SS’s P17 N/A Related Exclude Under the majority of project configurations, the volume of waste


Transport of Waste

generated is less than 2% of the total biomass processed at the facility. Further, the distance travelled to the disposal site is typically less than 50 km, one way. Therefore, for a typical project the total emissions from transport of waste would be less than 2 tonnes per year, and therefore immaterial. Therefore, this SS is excluded.

P18 Disposal of Waste

N/A Related Exclude The greenhouse gas emissions covered under this SS result from the operation of equipment and machinery at the disposal site. The incremental operation of this equipment to deal with the biomass is the primary concern. Given the nominal volumes of material being disposed of as waste, as discussed in P17 Transport of Waste, this SS can be excluded. (all biomass is combusted or transported to other beneficial user – no change from baseline to project)

P19 and P20 Decomposition of Waste and Methane Collection / Destruction

N/A Related Exclude The waste from energy from biomass facilities is essentially inert as the non-combustible component of the biomass material. As such, the disposal of waste in the landfill would not contribute to methane production, and would have no impact on methane collection and destruction systems. Therefore, this SS is excluded.

B7 Beneficial Biomass Use

Related N/A Exclude Excluded as the GHG emissions under the baseline condition serve only to increase the stated emission reduction. The emissions under this SS may also be covered under proposed greenhouse gas regulations.

Other P24 Development of Site

N/A Related Exclude Energy from biomass facilities are similar in scope to other fossil fuel power facilities that would be built to provide a similar power source. Thus, the emissions from development of the site would be similar.

P25 Building Equipment

N/A Related Exclude Energy from biomass facilities are similar in scope to other fossil fuel power facilities that would be built to provide a similar power source. Thus, the emissions from building the equipment for the site would be similar.

P26 Transportation of

N/A Related Exclude Energy from biomass facilities are similar in scope to other fossil fuel power facilities that would be built to provide a similar power source. Thus, the emissions from transportation of equipment to


Equipment the site would be similar. P27 Construction on Site

N/A Related Exclude Energy from biomass facilities are similar in scope to other fossil fuel power facilities that would be built to provide a similar power source. Thus, the emissions from construction on the site would be similar.

P28 Testing of Equipment

N/A Related Exclude Energy from biomass facilities are similar in scope to other fossil fuel power facilities that would be built to provide a similar power source. Thus, the emissions from testing of equipment would be similar, if not lower due to the biogenic source of the predominant fuel source.

P29 Site Decommissioning

N/A Related Exclude Energy from biomass facilities are similar in scope to other fossil fuel power facilities that would be built to provide a similar power source. Thus, the emissions from site decommissioning would be similar, if not lower due to the lower toxicity of the facility fuel compared to fossil fuel power facilities.

B15 Development of Site

Related N/A Exclude Excluding emissions from the development of the site for the baseline scenario represents a conservative approach of accounting for these emissions.

B16 Building Equipment

Related N/A Exclude Excluding emissions from the building of equipment for the baseline scenario represents a conservative approach of accounting for these emissions.

B17 Transportation of Equipment

Related N/A Exclude Excluding emissions from the transportation of equipment to the site for the baseline scenario represents a conservative approach of accounting for these emissions.

B18 Construction on Site

Related N/A Exclude Excluding emissions from the construction on the site for the baseline scenario represents a conservative approach of accounting for these emissions.

B19 Testing of Equipment

Related N/A Exclude Excluding emissions from the testing of equipment at the site for the baseline scenario represents a conservative approach of accounting for these emissions.

B20 Site Decommissioning

Related N/A Exclude Excluding emissions from the decommissioning of the site for the baseline scenario represents a conservative approach of accounting for these emissions.

32

From the above list of sources and sinks, the following SS are relevant:

• P22 Fuel Extraction/Process • P11 Facility Operation • B13 Fuel Extraction/Processing • B11 Electricity Production • B12 Thermal Energy Production

Due to the nature of this project some amendments have been made to the inclusion/exclusion of sources and sinks using the flexibility mechanisms. These amendments are outlined below:

B9 and B10 Decomposition of Biomass and Methane Collection/Destruction Additionally, and in accordance with section 3f above, Canfor is NOT claiming any reductions from avoided anaerobic decomposition as the biomass was all burned or utilized prior to the project implementation. Sources B9 and B10 of the protocol are not included in the analysis, which results in a lower baseline, making the assessment of any emissions reductions in the project condition more conservative. Electrical and thermal energy for lumber drying were supplied to the sawmill 100% through electricity and natural gas. Therefore, quantification of the reduction in use of these two items will conservatively capture any material reductions in GHG emissions as a result of the Project. P6, P8 to P11, P13, P14 and P16 Facility Operation The operation of the CHP plant does not involve the use of natural gas or other fossil fuels, except under unusual circumstances, such as the outage of one of the combustors where there is inadequate steam supply for the operation of the CHP plant from a single combustor, or if both combustors are off line. In the case where a single combustor is off line, steam is still supplied to the Grande Prairie sawmill from the CHP system, but the stand by boiler may be operated on natural gas to supply steam to the CHP plant. In extreme circumstances, such as the condition when both combustors are off line and the kilns at the sawmill are running, natural gas is burned in the stand by boiler to generate steam for the Grande Prairie sawmill. While this is an infrequent occurrence, natural gas burned in the stand by boiler to generate steam for the kilns at the Grande Prairie sawmill is accounted for in the GHG calculations. The GHG’s associated with natural gas use at the standby boiler for the purposes of steam generation for the kilns are counted as emissions under the Project condition for the Grande Prairie sawmill. The equipment involved in the storage and movement of wood residue utilize electricity (for example, motors for conveyors) is supplied by the CHP system (parasitic load). This includes the operation of the Electrostatic Precipitator (“ESP”). There is a loader that is used to move


wood residue on the CHP site. The emissions from this loader have been calculated and are not material. Therefore, there are no GHG’s associated with the facility operation. A possible exception to this situation is described in section 5K below, Quantification Plan.

P5 Transport of Biomass The delivery of biomass to the CHP facility is the responsibility of Canfor. The CHP plant consumes more wood residue than generated at the Grande Prairie sawmill. Additional wood residue is trucked to the CHP plant from other Alberta sawmills and forest industry operations, and also from outside of Alberta (Fort St. John BC, Chetwynd BC, and Taylor BC). The GHG’s emitted as a result of the transport of the wood residue to the CHP facility from facilities other than the Grande Prairie sawmill are incremental. The offset credits being claimed by Canfor are limited to the electrical and thermal energy that is replaced at the Grande Prairie Sawmill by the Project. The wood residue provided by the Grande Prairie Sawmill to the CHP plant produces almost 4 times the energy required to operate the Grande Prairie sawmill. Therefore, the incremental emissions due to the transportation of the biomass are outside the boundary of the project, and are not included in the Project condition emissions. The CHP plant consumes approximately 0.75 ODT (“oven dry tonnes”) of wood residue per MWh of electricity generated. The Canfor sawmill consumes approximately 27,000 MWh of electricity per year. Therefore, the wood residue required to generate electricity and steam for the Canfor sawmill is in the order of 20,250 ODT per year. The wood residue directly transferred from the Grande Prairie sawmill to the CHP plant is approximately 78,000 ODT per year.

P12 Combustion of Biomass Since most of the wood residue from Canfor Grande Prairie was burned in the baseline condition and it is also burned in the Project condition, the GHG emissions from the combustion of biomass from the Grande Prairie sawmill are treated as functionally equivalent, and therefore excluded from the analysis. Since the wood residue delivered to the CHP plant from other Alberta or BC facilities was not necessarily burned during the baseline condition and is now burned in the Project condition, GHG’s from some of these sources are incremental. However, wood residue delivered to the CHP plant from locations outside the province of Alberta, even though it may have been burned in the baseline condition, could be included in the Project condition GHG emissions because the combustion of this wood residue now occurs in Alberta, whereas under the baseline condition, the combustion occurred outside the province of Alberta. However, the offset credits being claimed by Canfor are limited to the electrical and thermal energy that is replaced at the Grande Prairie Sawmill by the Project. The wood residue provided by the Grande Prairie Sawmill directly to the CHP plant produces almost 4 times the energy required to operate the Grande Prairie sawmill. Therefore, the incremental emissions


due to the combustion of the biomass delivered from external sources are outside the boundary of the project, and are not included in the Project condition emissions.

5. QUANTIFICATION OF EMISSION REDUCTIONS

a. Process Description Quantification of the reductions, removals, and reversals of relevant SS’s for each of the greenhouse gases will be completed using the methodologies outlined in section 2.5 of the Protocol, and in conjunction with section 3g above. These calculation methodologies serve to complete the following three equations for calculating the emission reductions from the comparison of the baseline and project conditions. The details of the parameters used in the equations are presented in Table 5.1:

Where: Emission Baseline = sum of the emissions under the baseline condition.

Emissions Thermal Heat = emissions under SS B12 Thermal Energy Produced. Emissions Electricity Production = emissions under SS B11 Electricity Production. Emission Fuel Extraction / Processing = emissions under SS B13 Fuel Extraction and

Processing. Emissions Project = emissions under the project condition.

Emissions Fuel Extraction / Processing = emissions under SS P22 Fuel Extraction and Processing.

Emissions Facility Operation = emissions under SS P11 Facility Operation.

Emission reduction = Emission baseline – Emissions Project

Emission baseline = Emissions Electricity Production + Emissions Thermal Heat + Emissions Fuel Extraction/Processing

Emission Project = Emissions Fuel Extraction/Processing + Emissions Facility Operation


Table 5.1 Quantification Methodology

1. Project Base Line SS

2.Parameter/ Variable 3. Unit 4. Measured/

Estimated 5. Method 6. Frequency 7. Justify Measurement or Estimation and Frequency

Project SS’s Emissions facility = Σ (Vol. Fuel i * EF Fuel i CO2); Σ (Vol. Fuel i * EF Fuel i CH4) ; Σ (Vol. Fuel i * EF Fuel i N20)

Emissions Facility Operation

kg of CO2 ; CH4 ; N2O

N/A N/A N/A

Quantity being calculated in aggregate form as fuel and electricity use on site is likely aggregated for each of these SS’s.

Volume or Energy of Each Type of Fuel / Vol Fuel i

L, m3, GJ or

other Measured

Direct metering or reconciliation of

volume in storage (including volumes

received).

Continuous metering or

monthly reconciliation.

Both methods are standard practice. Frequency of metering is highest level possible. Frequency of reconciliation provides for reasonable diligence.

CO2 Emissions Factor for Each Type of Fuel / EF Fuel i CO2

Kg CO2 per L, m3 or other

Estimated Canada NIR 06 Annex 12 pg 596 Annual Reference values adjusted

periodically.

CH4 Emissions Factor for Each Type of Fuel / EF Fuel i CH4

kg CH4 per L, m3 or other


periodically.


N20 Emissions Factor for Each Type of Fuel / EF Fuel i N2O

kg N2O per L, m3 or other


periodically.


Emissions Fuel Extraction / Processing = Σ (Vol. Fuel i * EF Fuel i CO2); Σ (Vol. Fuel i * EF Fuel i CH4) ; Σ (Vol. Fuel i * EF Fuel i N20)

Emissions Fuel Extraction /Processing

kg of CO2 ; CH4 ; N2O

N/A N/A N/A


Volume or Energy of Fuel Combusted for P6, P8 to P11, P13, P14 and P16 Facility Operation / Vol. Fuel

L, m3, GJ or

other Measured



received).




CO2 Emissions Factor for Fuel Including Production and Processing / EF Fuel CO2


Estimated SGER Waste Heat Recovery Protocol

pg 32 Annual Reference values adjusted

periodically.

CH4 Emissions Factor for Fuel Including Production and Processing / EF Fuel CH4

kg CH4 per L, m3 or other


pg 32. Annual Reference values adjusted

periodically.

P22 Fuel Extraction and Processing

N20 Emissions Factor for Fuel Including Production and Processing / EF Fuel N2O

kg N2O per L, m3 or other



periodically.


Baseline SS’s Emissions Electricity = Electricity *EF Elec.

Emissions Electricity

Kg of CO2e N/A N/A N/A Quantity being calculated

Electricity Produced at the Site / Electricity

KWh Measured

Direct Metering of all electricity

produced at the site, net of

parasitic loads

Continuous Metering

Continuous direct metering represents the industry practice and the highest level of detail.

B11 Electricity Production

Emissions Factor for Electricity / EF Elec

Kg of CO2e

per kWh Estimated

(0.65tonnes/MWh) SGER Guidance Document 2.7.3

pg. 22

Annual Reference value adjusted periodically by AENV.

Emissions thermal operation = Σ (Vol. Fuel i * EF Fuel i CO2); Σ (Vol. Fuel i * EF Fuel i CH4) ; Σ (Vol. Fuel i * EF Fuel i N20)

Emissions Thermal Heat

Kg of CO2 ; CH4 ; N2O

N/A N/A N/A Quantity being calculated.

Volume or Energy of Each Type of Fuel / Vol Fuel i

L, m3, GJ or

other Measured



received).




B12 Thermal

CO2 Emissions Factor for Each Type of Fuel / EF Fuel i CO2



periodically.


CH4 Emissions Factor for Each Type of Fuel / EF Fuel i CH4

Kg CH4 per L, m3 or other


periodically.

Energy Produced

N20 Emissions Factor for Each Type of Fuel / EF Fuel i N2O

Kg N2O per L, m3 or other


periodically.

Emissions Fuel Extraction / Processing = Σ (Vol. Fuel i * EF Fuel i CO2) ; Σ (Vol. Fuel i * EF Fuel i CH4) ; Σ (Vol. Fuel i * EF Fuel i N2O)

Emissions Fuel Extraction /Processing

Kg of CO2 ; CH4 ; N2O

N/A N/A N/A


Volume or Energy of Fuel Combusted for P6, P8 to P11, P13, P14 and P16 Facility Operation / Vol. Fuel

L, m3, GJ or

other Measured



received).




B13 Fuel Extraction and Processing

CO2 Emissions Factor for Fuel Including Production and Processing / EF Fuel CO2




periodically.


CH4 Emissions Factor for Fuel Including Production and Processing / EF Fuel CH4

Kg CH4 per L, m3 or other



periodically.

N20 Emissions Factor for Fuel Including Production and Processing / EF Fuel N2O

Kg N2O per L, m3 or other



periodically.


j. Data Sources As the information in the previous section indicates, there are two main data sources required for the calculation methodology outlined in the protocol:

Fossil Fuels • Volume of fossil fuels used to operate the kilns during the baseline. • Volume of fossil fuels used for space heating at the Grande Prairie Sawmill under both the

baseline and project conditions. • Volume of fossil fuels used in situations where the CHP plant is unable to process sufficient

wood residue and must use natural gas to supply some or all of the steam to the sawmill lumber drying kilns during the Project.

Electricity • Amount of electricity used during the baseline. • Amount of electricity used directly from the grid in situations where the CHP plant is unable

to process sufficient wood residue and some or all of the electricity is being supplied to the sawmill directly from the grid (Electricity consumption and source are measured and logged via MIDAS system at CG&E).

k. Quantification Plan Carbon offsets will be quantified on an annual basis, according to the protocol. Project condition data will be collected as laid out in table 5.2, and will then be manually input into a calculator to quantify the number of carbon offsets on an annual basis.

TABLE 5.2: Project Condition Data Collection Methodology

Data Source Meter ID Method of Quantification

Volume of fuels used to operate space heaters at the

Grande Prairie Sawmill.

“Gas Micro” ATCO # A05729 located near the Canfor Grande

Prairie Kilns S/N 0401-03608

Data from the meter is transmitted directly to the gas supply company. The gas company sends a bill for the site to the Grande Prairie sawmill. In this way, the gas consumption for space heating of the sawmill is determined.

Volume of fuels used to operate the CHP Plant in back

up mode.

“Gas Micro” S/N 030402072 located near the CG&E ESP

Data from the meter is transmitted directly to the gas supply company. The gas company sends a bill for the


site to the CHP Plant. In this way, the additional gas consumption of the CHP plant is determined. Some of the natural gas and steam generated by the stand by boiler is used for operational purposes of the CHP plant. Some of the natural gas is required for steam generation for the Grande Prairie sawmill, and this portion is apportioned to the sawmill’s consumption.

Amount of Electricity used by the sawmill when the CHP

Plant is not supplying.

Located in CG&E MCC room, Cell 1, E308-521

PK 0311 A047-01

The electricity to the Grande Prairie sawmill is metered at the CHP plant. By combining the periods of time when electricity is coming from the grid with the metering information from CG&E’s “MIDAS” system, it is possible to determine the amount of electricity consumed by the sawmill during periods of partial or full outage at the CHP plant.

The sections below elaborate on the reasoning associated with the data collection methodology in table 5.2 above Although the intention of the project is for all of the energy requirements of the Grande Prairie sawmill exclusive of space heating to be furnished from the CHP plant from the combustion of wood residue, there are back up systems in place to supply both electricity and steam to the sawmill in the event that the CHP plant is not able to supply the sawmill requirements. These systems are described below in terms of how the use of back-up systems, if necessary, would affect the GHG emissions under the project condition, and how GHG’s are to be calculated under such circumstances. Natural Gas The CHP plant has back up natural gas supply and standby natural gas boiler should it not be possible to produce adequate steam from processing wood residue in the CHP process or if the CHP plant is not operating. During some of the periods of time when natural gas is used at the CHP plant in the standby boiler to generate steam, some or all of the steam supplied to the sawmill is resultant from the combustion of natural gas. Therefore, during such periods, GHG emissions


relating to the natural gas consumed to produce steam for the kilns have to be quantified and accounted for in the offset calculations. Although these periods are expected to be small, there is the possibility that they could represent greater than 5% of the annual operating time, and therefore, outage periods are tracked as part of this Project. The method used to calculate the portion of the natural gas consumed by CG&E that is attributable to steam generation for Canfor involves examining the percentage of grid sourced electricity supplied to CG&E/Canfor that is attributable to Canfor vs. how much is attributable to CG&E and multiplying this ratio by the total amount of natural gas consumed by CG&E. This is a reasonable approximation, because it can be reasonably assumed that during periods of time that electricity is being sourced from the grid, the combustors are not generating adequate steam for sufficient power generation to meet sawmill requirements, and likewise, there is inadequate steam for the sawmill from the combustors. This method has been used for the years 2006 through 2008 and will be used going forward. See Equation 1 below: Equation 1:

(A/B) X C = D

Where: A = Grid Sourced Electricity that is attributable to Canfor (MWh) B = Total Grid Sourced Electricity into the Canfor/CG&E system (MWh) C = Total Natural Gas Burned by CG&E (GJ) D = Natural Gas burned by CG&E attributable to Canfor (GJ) For 2005, measurement systems were not yet fully in place to determine the percentage of grid electricity attributable to Canfor vs. CG&E, however, the total amount of grid sourced electricity into the Canfor/CG&E system was available on a monthly basis. For 2005 only, the percentage of natural gas attributable to Canfor is determined by taking the ratio of grid sourced electricity to Canfor’s maximum monthly electricity consumption for that year, and multiplying this ratio by the natural gas consumption at CG&E in each month. For the months of January and February 2005, CG&E produced no net electricity to the grid. In these months, it is assumed that all the electricity from the grid was for Canfor’s purposes, and thus all the natural gas is attributable to Canfor. This is conservative, because CG&E does have some parasitic gas load. See Equation 2 below: Equation 2:

(A/B) X C = D

Where: A = Total Grid Sourced Electricity into the Canfor/CG&E system (MWh) B = Maximum Canfor monthly electricity consumption for 2005 (MWh) = 2911 MWh* C = Total Natural Gas Burned by CG&E (GJ) D = Natural Gas burned by CG&E attributable to Canfor (GJ) * this figure is from Canfor’s electricity consumption records.


Additionally, the sawmill maintains an independent natural gas connection for the purposes of space heating only. Natural gas is burned from this supply source, resulting in GHG’s. These GHG’s are quantified and accounted for in the offset calculations. Electricity If the CHP plant cannot generate sufficient electricity for the Canfor Grande Prairie sawmill, an automatic switch is activated that begins supply of electricity to the sawmill from the Alberta grid, resulting in no power supply interruption to the Grande Prairie sawmill. The electricity to the Grande Prairie sawmill is metered, and by combining the periods of time when electricity is sourced from the grid with the metering information (from the MIDAS system), it is possible to determine the amount of electricity consumed by the sawmill during periods of outage at the CHP plant. During such periods, indirect GHG emissions are quantified and accounted for in the offset calculations. Although these periods are expected to be small, there is the possibility that they could represent greater than 5% of the annual operating time, and therefore, grid supply periods are tracked as part of this Project. The amount of grid electricity attributable to Canfor is directly measured and recorded for the years 2006 through 2008. This will be the method used going forward to determine the amount of grid sourced electricity attributable to Canfor. For 2005, measurement systems were not yet fully in place to determine the percentage of grid electricity attributable to Canfor vs. CG&E however, the total amount of grid sourced electricity into the Canfor/CG&E system is available on a monthly basis. For 2005 only, the grid sourced electricity attributable to Canfor is determined by taking the total amount of grid sourced electricity and subtracting the known average parasitic load for the CG&E plant in any given month. This results in any electricity entering the Canfor/CG&E system in 2005 that is not for CG&E’s purposes to be attributable to Canfor. For the months of January and February 2005, CG&E produced no net electricity to the grid. In these months, it is assumed that all the electricity from the grid was for Canfor’s purposes. This is conservative, because CG&E does have some parasitic electrical load, even when there is no net generation to the grid. See Equation 3 below: Equation 3:

A-B = C

Where: A = Total Grid Sourced Electricity into the Canfor/CG&E system in a month (MWh) B = Average Parasitic Load for CG&E’s systems on a monthly basis (MWh) = 1106 MWh* C = Grid Sourced Electricity attributable to Canfor in a month (MWh) * This figure is calculated from a sampling of CG&E records from the years 2006,2007, and 2008.


l. Monitoring Plan In general, the data control process employed for the Project consists of electronic data capture and reporting, and manual entry of monthly total or average values into a quantification calculator developed by Canfor. There are two types of data streams involved in this project:

a. Electronic data captured and reported by metering systems; and b. Manual data entry

There are three potential data streams:

a. Natural gas consumption for space heating at the Grande Prairie Sawmill, b. Possible natural gas consumption at the CHP plant for steam generation for the Grande

Prairie sawmill, and, c. Possible electricity supply from the grid to supply the Grand Prairie sawmill.

The data flow process and general monitoring and Quality Assurance/Quality Control (“QAQC”) plan for each data stream is illustrated in Figure 5.1 through 5.5 below. The specifics of the monitoring and QAQC plan are discussed in the following sections.


FIGURE 5.1: Data Flow Diagram – Natural Gas for Space Heating

Figure 5.2 Data Flow Diagram – Natural Gas at CHP Plant

Final results from offset calculator

Electronic recording of gas usage by gas company

Transfer of CHP plant gas consumption to Canfor accounting

on a monthly basis

Reconciliation of gas used at CHP that results in steam to GP saw mill

Manual checking of calculator data

Manual entry of fuel burned into calculator

Retention of physical invoices and calculations as back up

reference

Raw data captured by gas meter, sent to gas company by telephone

Gas company issues monthly bill to CHP plant


Electronic recording of gas usage by gas company

Transfer of gas company data to Canfor accounting via monthly

invoices Comparison of gas invoices with

meter readings.


Manual entry of fuel burned into calculator

Retention of physical invoices and Internal readings as back

up reference

Raw data captured by gas meter, sent to gas company by telephone

Gas company issues monthly bill to Canfor saw mill


Figure 5.3 Data Flow Diagram – Electricity from Grid to GP Sawmill

m. Metering Maintenance and Calibration Monitoring and QAQC for the metering systems used at Grande Prairie consists of a maintenance and calibration program designed to ensure the accuracy of the data collection system. The details of the maintenance and calibration for each meter used in the collection of data for emission reduction calculations are provided in Table 5.3.

TABLE 5.3: Metering Maintenance and Calibration Details

Project Specific

Data

Meter ID Meter Make & Model

Maintenance Schedule

Calibration Schedule

Accuracy Rating

Canfor GP Natural Gas

meter (Space

Heating)

“Gas Micro” ATCO # A05729 located between the Canfor Grande Prairie

Kilns S/N 0401-03608

Gas Micro Model EVC

As Required Last Checked

September 2004

As Required Last Checked

September 2004

'+/-0.25%

CHP natural gas meter

“Gas Micro” S/N 030402072 located near

the CG&E ESP

Gas Micro Model EVC As Required As Required '+/-0.25%


Electronic recording of elec usage by CHP data capture system

(Midas System)

Reconciliation of metering information to determine CG&E parasitic and wood

handling load vs Canfor loads


Manual entry of grid electricity used into calculator

Retention of physical invoices and Internal readings as back

up reference

Raw data captured by electricity Meters, Reconciliation of metering information to determine

amount of grid sourced power

Calculation of electricity used at Canfor that is directly from Grid


CHP electrical meter to

Canfor GP

Located in CG&E MCC room, Cell 1, E308-521

PK 0311 A047-01 Ion 7500

As Required, Last Checked

2004

Last Calibrated 2004, Next

Scheduled for 2010

+/-0.2%


CHP parasitic

load

Located in CG&E MCC room, Cell 1, E311-08, GE

PQM Ion 7330


2004


Scheduled for 2010

+/-0.5%


CHP wood handling system

Located in CG&E MCC room E308-524

S/N PB 0411 A426-11 Ion 7330


2004


Scheduled for 2010

+/-0.5%

CHP electrical

meter to and from the grid

Located at CG&E Substation E317-00

S/N PK 0311 A046-01 Ion 7500


2004


Scheduled for 2010

+/-0.2%

a. Record Keeping Record keeping practices for the Project consist of:

a) Electronic recording of values of logged primary parameters for each measurement interval.

b) The CHP plant collects and logs electricity data from the MIDAS system which allows for the determination of periods where the Grande Prairie sawmill is supplied with grid based electricity.

c) Invoices are sent to Grande Prairie sawmill from CHP Plant on a monthly basis which outline the amount of steam and electricity consumed.

d) Invoices are sent to Grande Prairie sawmill on a monthly basis which outline the natural gas consumed by the sawmill for space heating purposes

e) Natural gas consumption at the CHP plant is tracked and the amount used attributable to the sawmill is calculated and tracked by the Canfor.

f) All resultant consumption information is entered into a sawmill system. g) Records retained of all logged data. h) Written logs of operations and maintenance of the Project system including notation of all

shut downs, start ups, and periods of time when the CHP is offline. i) Retention of copies of logs and all logged data for a period of 7 years, and j) Keeping all records available for review by a verification body.


6. REPORTING OF EMISSION REDUCTIONS On a go forward basis, emission reductions achieved through this Project will be claimed on an annual basis and quantified in accordance with the calculation methodology described in the Quantification Protocol for Diversion of Biomass to Energy from Biomass Combustion Facilities (AENV, 2007), and this Offset Project Plan. Emission reductions will be verified by a third party verifier according to the Guidance Documents provided by AENV.