Asserting Carbon Offsets from Landfill Gas Flaring at Regina’s

Landfill SitePresented at CPANS Lunch Meeting

Calgary, Alberta

November 17, 2010

By: Paresh Thanawala, P.Eng; QEP

Objectives

• Explain LFG Collection & Flaring Project• Other LFG Experience• Regulatory Aspects of Credits/Offsets• Validation/Verification Steps• Emission Assertion – Approach• Conclusion

Fleet Street Landfill

PROJECT SCOPEPhase 1 (North Hill) Main

Components:• 27 vertical gas wells• Gas collection headers• Condensate removal sump and

tank• Blower building• Instrumentation and Control

Room• Flare header, flame arrestor

and candlestick flare

System Commissioned in July 2008

Gas Wells & Collection System

Flare & Blower Building

Typical Quantity and Quality

• 250 – 350 acfm• HHV 16 – 18 MJ/m3

• Up to 1.5 MW potential

Compound Mol %CH4 50CO2 40N2 9O2 0.5H2O TraceH2S TraceSiloxanes Trace

LFG UTILIZATION IN CANADA

Number of Sites Surveyed by Environment Canada, January Number of Sites Surveyed by Environment Canada, January 20092009

Year Utilization (U) Flaring (F) U & F

2006 26 44 122007 29 50 15

Year Power (P) Heating (H) CPH

2006 17 9 0

2007 17 10 2

Number of Landfills Capturing LFG in Canada

0

10

20

30

40

50

60

70

1997 1999 2001 2003 2005 2006 2007

Year

Lan

dfill

Experience of Selected LandfillsWestern Canada

Vancouver Cogeneration (Electricity + Waste heat). 4 x 1.7 MW Cat Engines. Waste heat for greenhouse heating

Prince George Gas recovery system. No power or heat recovery

Kelowna (Glenmore) Generate electricity (kW TBC) + Waste heat utilization. Micro-turbines. Export power

Victoria 1.6 MW Cat engine

Edmonton (Clover Bar) 3 x 1.6 MW Cat engines

Calgary (Shepard) Gas recovery/clean up - 400 kW engine

Calgary East 70 kW micro-turbine. Expand to install 1 -2 MW engines

Brandon, MB Open flare. MB to buy LFG credits. Discussing “design – build – operate – finance” scheme for LFG energy use with IGR

Carbon CreditsValue of GHG emission reduction as carbon dioxide equivalent (COValue of GHG emission reduction as carbon dioxide equivalent (CO22E) in tonnesE) in tonnes

GHG CO2 CH4 N2OGWP 1 21 310CO2E 1*CO2 + 21*CH4 + 310*N2O

CER Certified emission reductions, CDM, Kyoto

ERU Emission reduction unit, JI, Kyoto

VER Verified emission reductions, Voluntary

Regulatory FrameworkFramework Key Highlights Website

Federal

Draft Offset System Documents (summer 2009). Finalization delayed – awaiting US directive. Administer under CEPA. Must achieve real, incremental, quantifiable, verifiable and unique reductions of greenhouse gases

http://www.ec.gc.ca/creditscompensatoires-offsets/default.asp?lang=En&n=92CA76F4-1

SK

LFG not regulated and hence eligible. Bill 126. Target 20% reduction by 2020. Registry for offsets. Adopt/merge with AB. Reduction Targets for regulated emitters. Climate R&D Corp. Expect regulated frame work in place by 2010

http://www.qp.gov.sk.ca/documents/english/FirstRead/2009/Bill-126.pdf

BCBill 18 - Greenhouse Gas Reduction Cap & Trade Act 2008. Partner with WCI. Registry, trading, verification as of 2010. Compliance unit tracking system

http://www.leg.bc.ca/38th4th/3rd_read/gov18-3.htm

ABClimate Change Central. Offset registry in place. Trade within AB only. LFE > 100,000 t CO2E to meet targets or pay to carbon fund. Quantification protocols in place and under development.

http://carbonoffsetsolutions.climatechangecentral.com/

MB Bill 15 - the climate change and Emissions Reduction Act. MB will buy out credits from LFG operators. http://web2.gov.mb.ca/bills/39-2/b015e.php

Western Climate Initiative

Launched Cap & Trade Program in 2008. Partners are: Arizona, California, Montana, New Mexico, Oregon, Utah, and Washington, Manitoba, BC, ON and Quebec. AB and SK oppose the scheme (cash grab)

http://www.westernclimateinitiative.org/

Montreal Carbon Exchange (MCeX)

Created in 2006. CO2E futures contracts. Joint venture between CCX and MCeX.

www.m-x.ca

Chicago Climate Exchange (CCX)

Voluntary Cap & Trade System. Sell surplus allowances or purchase carbon financial instrument (CFI) http://www.chicagoclimatex.com/content.jsf?id=821

Project Validation• Eligibility [real, additional, quantifiable, verifiable,

unique]• Description/Quantification methods• Assertion [relevance, completeness, consistency,

accuracy, transparency, conservativeness]• Monitoring• Document so 3rd party can verify• Follow ISO 14064(3)Generally occurs once, before registration

Verification• Systematic, independent and documented

process to confirm assertion of credits• Reasonable (high level) or limited (low level)

assurance• Occurs after emission reductions have occurred• Usually once a year• Validated project/documentation must be in place• 3rd party, knowledgeable of industry, no conflict• Follow ISO 14064 (3) guidance

Project Registration• After project is validated• SK or Federal System• “License” for creating carbon credits• Can occur as part of verification

Project Proponent

Validates the project. Applies to the Project Authority toregister GHG reduction report

REGISTRATION OF PROJECT

Project Authority

Project Proponent

Verifier

Project Authority

REPORTING & VERIFICATION OF REDUCTIONS

ISSUANCE OF OFFSET CREDITS

Reviews the project and registers the ProjectDocument

Implements the Project

Asserts/reports the GHG reductions in the Reduction/Removal Report

Engages verifier to verify the assertion/claim

Conducts verification

Issues instructions to deposit offset credits inaccount in the tracking system

Certifies all conditions for credit issuance have been satisfied

Submits Verification Report to Project Authority

Schematic of Flare & Monitoring System

Data Management

Asserting LFG Offsets• CO2E Offsets = CO2E Baseline – CO2E Project • CO2E Offsets = 21(mass of methane in LFG that is destroyed in the flare) • MR = (QLFG)(CCH4)( t)(ρCH4)( η)(1 tonne/1,000 kg) )/(35.31 ft3/m3)

MR = Mass of methane reductions (tonnes CH4/day)QLFG = Average flow of LFG collected (sft3/min) @ 1 atmosphere and 0 °CCCH4 = Mol fraction of CH4 in LFGt = Net operational period (min/day)ρCH4 = Density of methane (kg/m3) = 0.7174 @ 1 atmosphere and 0 °Cη = Methane destruction efficiency of flare (80%)

Calculated Offsets: 2008 15,582 t CO2E2009 21,829 t CO2E

About DRE and CEDestruction & Removal η (DRE)

DRE = 100* (Wt. of Compound in –Wt. of Compound Out)/(Wt. of Compound in)

DRE indicates how well a specific compound is destroyed during combustion

_______________________________________________________________

Combustion η = 100* (Mass Rate of Carbon in fuel converted to CO2)/(Mass Rate of Carbon in Fuel)

CE is a measure of how much carbon is converted to CO2

Flare Testing: DRE of CH4

CH4 + 2O2 = CO2 + 2H2O

•Grab samples at various points •Testing by Maxxam Analytics, Nov, 2009•Follow Alberta Stack Sampling Code/•US EPA Methods

Impact of Wind on Flare Efficiency

Ref: Efficiency Measurements of Flares in a Cross Flow, by M.R. Johnson, O. Zastavniuk, D.J. Wilson and L.W. Kostiuk, Department of Mechanical Engineering, University of Alberta, Edmonton, Alberta, Presented at Combustion Canada 1999, Calgary Alberta, May 26, 1999

DRE of Methane

• Flare gas testing in November 2009 indicated average DRE of 86%. • Flame color – blue or colorless (mostly)• HHV ~ 16 MJ/m3 indicating good combustion• Flare velocity and design comply with 40 CFR60.18 which recommends a

minimum DRE of 93% (for compliant flares)• Auto pilot ignition• KO Pot to remove water. No free liquids or hydrocarbons carried to the

flare – which may impair combustion• Wind guard to minimize wind impacts and loss of DRE• O/M procedures in place• 3% reduction allowed due to possible wind impacts• Additional 3% reduction allowed to add conservativeness• 80% DRE assumed for offsets calculations

Anticipated Price of Carbon• AB – Trades between $12/t - $15/t • SK – Expect AB trend. +$15/t anticipated (once

offset framework in place)• BC – Pacific Carbon Trust proposed to buy @

$25/t• FED – LFE to comply if cost of reduction < $15/t• CCX – $0.15/t• MCEx – $2.00 settlement price for March 2011

contract• Voluntary – ($3/t - $8/t)

Conclusion• Carbon offsets from flaring of LFG at the Regina

landfill are eligible for registration and trading• Emission offsets verified to “reasonable level of

assurance” by ICF International• Awaiting SK regulations and registry to be

finalized• 30,000 t CO2E offered for sell• Carbon trading prices expected around ~ $15/t or

more