GREENHOUSE GAS PROJECT REPORT C&B FARMS BIOMASS HEATING PROJECT

11 June 2012 GREENHOUSE GAS PROJECT REPORT C&B FARMS BIOMASS HEATING PROJECT Prepared By: Blue Source Canada ULC (Authorized Project Contact) Suite ...
Author: Louise Bryant
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11 June 2012

GREENHOUSE GAS PROJECT REPORT C&B FARMS BIOMASS HEATING PROJECT

Prepared By: Blue Source Canada ULC (Authorized Project Contact) Suite 700, 717-7th Avenue SW Calgary, Alberta T2P 0Z3 T: (403) 262-3026 F: (403) 269-3024 www.bluesourceCAN.com

GHG Report – C&B Farms Biomass Heating Project

11 June 2012

Table of Contents Table of Figures: ............................................................................................................................... iii List of Abbreviations ......................................................................................................................... iv 1.

Introduction ...............................................................................................................................1

2.

Review of Project Consistency with ISO-14064 Part 2 Principles ...................................................1

3.

2.1

Relevance ...................................................................................................................................... 1

2.2

Completeness................................................................................................................................ 3

2.3

Consistency ................................................................................................................................... 3

2.4

Accuracy ........................................................................................................................................ 3

2.5

Transparency................................................................................................................................. 3

2.6

Conservativeness .......................................................................................................................... 3

Project Description .....................................................................................................................5 3.1.

Project Title ................................................................................................................................... 5

3.2.

Project Purpose / Objective .......................................................................................................... 5

3.3.

Expected Lifetime of Project ......................................................................................................... 6

3.4.

Project Type .................................................................................................................................. 6

3.5.

Location of Project ........................................................................................................................ 6

3.6.

Conditions Prior to Project Initiation ............................................................................................ 6

3.7.

Description of How GHG Reductions are Achieved ...................................................................... 7

3.8.

Project Technologies ..................................................................................................................... 8

3.9.

Assertion of GHG Emission Reductions ...................................................................................... 10

3.10.

Identification of Risks to Project ............................................................................................. 11

3.11.

Roles and Responsibilities ....................................................................................................... 11

3.12.

Project Eligibility...................................................................................................................... 12

3.13.

Summary Environmental Impact Assessment ........................................................................ 12

3.14.

Stakeholder Consultations ...................................................................................................... 12

3.15.

Project History......................................................................................................................... 12

4.

Selection and Justification of the Baseline Scenario ................................................................... 13

5.

Inventory of Sources, Sinks and Removals (SSRs) for the Project and Baseline Conditions ........... 15 5.1.

Project Condition ........................................................................................................................ 15

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6.

5.2.

Baseline Condition ...................................................................................................................... 24

5.3.

Comparison of Project and Baseline SSRs ................................................................................... 31

Quantification and Calculation of GHG Emissions and Reductions .............................................. 36 6.1.

7.

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Sample Calculations .................................................................................................................... 46

Data Monitoring and Controls ................................................................................................... 51 7.1

Data Sources: .............................................................................................................................. 51

7.2

Quantification Approaches: ........................................................................................................ 51

7.3

Measurement and Monitoring Approaches: .............................................................................. 53

7.4

QA/QC Procedures: ..................................................................................................................... 57

7.5

Data Management and QA/QC at Blue Source ........................................................................... 59

7.6

Record keeping practices ............................................................................................................ 59

Back-up Procedures at Blue Source .................................................................................................... 59 8.

Reporting and Verification Details ............................................................................................. 60

9.

Statement of Senior Review ...................................................................................................... 61

Appendix A – IT Backup Procedure for Blue Source ........................................................................... 62

Table of Figures: Figure 1: Pre-Project and Project Condition Biomass Use Configurations ................................................... 7 Figure 2: 4.5 MW Vynke Biomass Boiler at C&B Farms ................................................................................ 9 Figure 3: Project Element Lifecycle Diagram for Project Condition............................................................ 22 Figure 4: Process Flow Diagram for Project Condition ............................................................................... 23 Figure 5: Baseline Element Lifecycle Diagram ........................................................................................... 29 Figure 6: Process Flow Diagram for Baseline Condition ............................................................................. 30 Figure 7: Data flow from Suppliers to C&B Farms and to Blue Source ....................................................... 58

Table 1 - GHG Emission Reductions, 2006 - 2011 ....................................................................................... 10 Table 2: Barriers Assessment of Baseline Alternative Scenarios ................................................................ 13 Table 3: Project Condition Sources, Sinks, and Removals of GHG Emissions ............................................. 16 Table 4: Baseline Condition Sources, Sinks, and Removals of GHG Emissions ........................................... 24 Table 5: Inclusion and Exclusion of Sources, Sinks, and Removals of GHG Emissions................................ 31 Table 6: Justification of SSRs Exluded from Quantification ........................................................................ 36 Table 7: Quantification Procedures ............................................................................................................ 38 Table 8: Emission Intensity of Fuel Extraction and Production (Heavy Oil and Natural Gas) .................... 43

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Table 9: Emission Intensity of Combustion ............................................................................................... 44 Table 10: Energy Content of Different Fuels............................................................................................... 45 Table 11: Data Monitoring and Collection .................................................................................................. 55 Table 12: Meter Maintenance and Calibration ........................................................................................... 56

List of Abbreviations Blue Source CH4 CO2 CO2e GHG GWP HDD HFC m3 msf N2O PFC SF6 SGER SS

Blue Source Canada ULC Methane Carbon Dioxide Carbon Dioxide-equivalent Greenhouse gas Global Warming Potential Heating Degree Days Hydrofluorocarbon(s) Cubic metres Thousand square feet (of plywood) Nitrous Oxide Perfluorocarbon(s) Sulphur Hexafluoride Specified Gas Emitters Regulation Sources and Sinks

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1. Introduction This report provides the details of a conversion of heat supplied at C&B Farms from fossil fuel based, to biomass based. C&B Farms is a large commercial greenhouse operation in southern Ontario, near the town of Leamington that consists of 9.2 acres of covered greenhouse area. C&B Farms currently produces more than 2 million pounds of bell peppers per year and ships yellow, red, orange and green bell peppers to grocery stores in Canada and the United States. C&B Farms recently began growing miniature bell pepper and sweet point pepper varieties. Planting operations begin in January and harvesting starts in April and continues through to December. Since the farm operates year-round in a cold climate, there is a high heating demand that was initially met with oil-fired boilers that burned Bunker C fuel (fuel oil #6). The boilers were also equipped to burn natural gas. Due to the high costs associated with burning fossil fuels for heating, C&B Farms investigated the use of biomass for heat. They found local suppliers of wood chips that are sourced from various industrial sources that would have otherwise been destined for disposal at a municipal landfill. C&B Farms thus installed a series of biomass boilers to provide heat to the greenhouse operations. The existing fossil fuel boilers remain in place, but are only used for supplemental heating on very cold days when the biomass cannot meet the heating demand. Greenhouse gas offset credits are generated by this project by the displacement of fossil fuels that would have otherwise been burned to heat the greenhouses with biomass.

2. Review of Project Consistency with ISO-14064 Part 2 Principles 2.1

Relevance

The methodology referenced in quantifying GHG emission reductions from the C&B Farms Biomass Heating Project (herein in referred to as “the Project”) was developed and approved under the Alberta Offset System, regulated under the Province’s “Climate Change and Emissions Management Act.” The Alberta Offset System Quantification Protocol for Diversion of Biomass to Energy from Biomass Combustion Facilities,1 (herein in referred to as “the Biomass Protocol”) was developed following the ISO 14064 Part 2 standard as required under the Alberta Offset System protocol development process. Additionally, the protocol development process included a multi-step stakeholder review process consisting of a technical expert review, a broader stakeholder review process and a public posting period, all of which were managed by the Government of Alberta. The Alberta Offset System Biomass

1

Alberta Quantification Protocol for Diversion of Biomass to Energy from Biomass Combustion Facilities (Version 1, September 2007), http://environment.gov.ab.ca/info/library/7908.pdf

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Protocol is a well-established quantification protocol applicable to biomass energy generation projects in Canada and was therefore considered to be the best available quantification protocol to apply for this Project. Sources, Sinks and Reservoirs (SSRs) considered to be relevant and included for quantification under the Biomass Protocol are defined in Section 4 of this document, including justification for the exclusion of SSRs identified in the life cycle elements of the project and baseline conditions. SSRs for the project condition are summarized in Table 3 and Figure 3 and

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Figure 4. SSRs under the baseline condition are summarized in Table 4, Figure 5 and Figure 6.

2.2

Completeness

The specific scope of this project has been limited to GHG emission reductions achieved through the displacement of fossil fuels through the generation of thermal energy from biomass. Indirect GHG emission reductions from the diversion of biomass wastes from landfill and the avoidance of the methane emissions that would have occurred from the anaerobic (oxygen-free) decomposition of these residues in landfill or stockpile are also quantified under the protocol. The project does not include any electricity generation and as such, the GHG emissions related to electricity generation have been excluded. Data collection and monitoring approaches as they pertain to the quantification approaches used in calculating GHG emission reductions are summarized in Table 11 in this report.

2.3

Consistency

The Biomass Protocol used in the quantification of GHG reductions is consistent in its application of functional equivalence between the baseline and project condition. The unit of functional equivalence is defined as the m3 of natural gas, L of fuel oil, and kg of coal per Heating Degree Day displaced by the Vynke biomass-fired boilers in the project condition.

2.4

Accuracy

Bias and uncertainties in quantification were limited through the use of utility meter readings (natural gas consumption) and financially audited data (biomass, fuel oil and coal sales data) in combination with using the most relevant natural gas higher heating values for the southern Ontario region and up to date emission factors from Environment Canada. Additionally, a number of comparative analyses were completed to compare the quantified gas savings to alternative methods to ensure that the estimated gas savings were as accurate and conservative as possible, as summarized in Section 6 of this report. Data collection, monitoring, and quantification approaches are summarized in Table 11 in this report.

2.5

Transparency

Data collection, monitoring, and quantification approaches are summarized in Section 6 and Table 11 of this report. The annual emission reduction claims are also summarized in this document to support the transparency of the GHG emission reduction assertion.

2.6

Conservativeness

As discussed in Section 6, calculations are considered conservative for a number of reasons. In order to conservatively calculate the natural gas and fuel oil savings resulting from the implementation of the biomass energy generation system, the relative consumption of each fuel was calculated for 2005 which is the last full year of fossil-fuel consumption prior to the implementation of the biomass heating system. This ensures that fuel-oil consumption is not overstated, which is important since the emissions from this fuel are greater than those for natural gas. Additionally, annual baseline intensities were compared to monthly baseline intensities, and again the most conservative baseline was selected.

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Finally, the baseline intensity approach was compared to measured heat output data from 2006 to 2011 to check that the gas savings were not overestimated.

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3. Project Description 3.1. Project Title C&B Farms Biomass Heating Project

3.2. Project Purpose / Objective The C&B Farms Biomass Heating Project (the Project) is a biomass energy generation project located in the town of Leamington, Ontario. The Project is owned and operated by C&B Farms Ltd. The opportunity for generating carbon offsets with this protocol arises mainly from indirect GHG emission reductions through the use of biomass to offset non-renewable thermal energy production and from direct GHG emission reductions due to the avoidance of methane emissions from the decomposition of organic wood wastes in landfills. Methane is a powerful GHG with a global warming potential 21 times that of carbon dioxide and is passively emitted from the disposal of waste biomass in landfills or other oxygen-free conditions where the biomass undergoes anaerobic decomposition. The diversion of biomass away from an anaerobic storage site, such as a landfill, to a combustion facility altogether avoids the formation of methane gas and achieves a reduction in anthropogenic GHG emissions from the use of biomass for thermal energy generation in place of fossil fuels used in previous years. C&B Farms is a family run farming operation that began operations in 1995 with the installation of 2.7 acres of covered greenhouses originally for growing tomatoes and in later years for growing bell peppers. The operation was expanded in 1997 with the addition of 2.8 acres of extra greenhouse capacity and again in 2004 as another 3.7 acres were added. In 2001 the farm stopped growing tomatoes and switched to specialty bell peppers. C&B Farms currently produces more than 2 million pounds of bell peppers per year and ships yellow, red, orange and green bell peppers to grocery stores in Canada and the United States. C&B Farms recently began growing miniature bell pepper and sweet point pepper varieties. Planting operations begin in January and harvesting starts in April and continues through to December. The use of biomass at C&B Farms began in 2006 due to high natural gas and fuel oil prices which threatened closure of their greenhouse operations which require heat and CO2 for optimal plant growth throughout the year. At the time the primary options to replace expensive natural gas were coal and biomass. Although the costs of coal and biomass were similar at the time, biomass was selected due to the potential value of greenhouse gas emission reductions. In October 2006 a 4.5 MW (thermal) Vyncke boiler was installed to produce heat from biomass, which also has the capability to burn coal if biomass feedstock costs rise to uneconomic levels. The biomass is purchased from a third party fuel supplier who sources biomass from municipal waste sorting facilities and forestry processing sites.

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3.3. Expected Lifetime of Project The installation of a biomass boiler began in 2006, and was fully commissioned on October 11, 2006. The biomass boiler is anticipated to operate for at least a period of 15 years.

3.4. Project Type The opportunity for generating carbon offsets from this project arises from the direct GHG emission reductions achieved through the use of biomass in place of fossil fuels used to generate the thermal energy required to heat the greenhouses at C&B Farms. Note that this project also results in indirect GHG emission reductions through the diversion of biomass from landfill (i.e. the methane emissions resulting from the anaerobic decomposition of wood wastes).

3.5. Location of Project The Project is a biomass thermal energy generation project located near Leamington in Southern Ontario. The Project is wholly owned and operated by C&B Farms Ltd. The site is located at 327 Essex Road 18, Leamington, ON, N8H 3V5, Canada. The unique spatial identifier of the project is: Latitude: 50° 50’ 27.24”N Longitude : 120° 16’ 33.96”W

3.6. Conditions Prior to Project Initiation Prior to the start-up of the biomass combustion boiler at the C&B Farms site, all of the heat requirements for the greenhouses were produced by natural gas and fuel oil combustion in one or more of four existing boilers at the site. The boilers are rated at 2x200Hp, 800 Hp and 700Hp. One 200Hp boiler and the 700Hp boiler have the capability of burning fuel oil as a means of flexibility when natural gas prices are high. The greenhouse operation requires a source of CO2 to enhance plant growth, which means that fuel oil could not be used as the sole source of heating unless a separate liquid CO2 system were put in place. An existing hot water distribution system was in place to distribute hot water from each boiler to different parts of the greenhouses through pipes along the ground near the pepper plants to keep the plants warm throughout the year. An above ground steam distribution is connected to 3 of the boilers as a back-up heating source that is only used during the coldest months of the year or for melting snow off the greenhouses. The biomass used by the project would have previously been sent for disposal to landfill without the creation of a market for biomass as a fuel, which is in part due to the third party biomass supplier and end users such as C&B Farms. The creation of a market for biomass has led operators of waste sorting facilities and wood waste processing facilities to separate clean biomass materials for sale to third party suppliers that then distribute the biomass fuel to end users. As such, had the Project not been initiated by C&B Farms, the biomass would have decomposed anaerobically in a landfill to form methane emissions. Additionally the thermal energy produced by Prepared by Blue Source Canada ULC

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biomass combustion in this project would have been produced by natural gas, fuel oil and coal combustion. The baseline condition is thus the anaerobic decomposition of that portion of biomass which has been diverted from landfill and transported to C&B Farms, and the generation of an equivalent quantity of thermal energy using fossil fuels. Figure 1 below illustrates the biomass waste uses before and after the implementation of the Project. Figure 1: Pre-Project and Project Condition Biomass Use Configurations Pre-Project Condition

Project Condition

Municipal Wood Waste

Municipal Wood Waste

Third Party delivery of wood for fuel

Landfill

Sorting and diversion of wood

Wood burned in C&B boilers for heating

Anaerobic Decomposition

Combustion

3.7. Description of How GHG Reductions are Achieved The Project results in a reduction in greenhouse gas emissions through the use of a less carbon intensive fuel (biomass) than would have been used in the baseline to generate an equivalent quantity of thermal energy. The use of biomass residues to displace a portion of the heat load required to operate the C&B Farms greenhouse facility significantly reduces the carbon intensity of the operations compared to the business as usual use of fossil fuels (natural gas, fuel oil, and coal). Currently, the biomass coming from the supplier (Ecostrat) is diverted from landfill. As mentioned previously in section 3.3, none of the material diverted from these landfills would have undergone landfill gas capture. Therefore, had C&B Farms not provided a market value for this biomass it would not have been diverted from landfill and would have undergone facilitated anaerobic decomposition. Credit for this portion is therefore gained as a result of the direct avoidance of anaerobic decomposition of biomass to form methane. The quantity of natural gas displaced by the thermal energy output from the biomass boilers is estimated based on the difference between the natural gas consumption per heating-degree-day (HDD) in the project condition and the historical energy consumption per unit of production for the 2005 year before the project was implemented. The use of this intensity metric (m3 natural gas per HDD) ensures that functional equivalence is maintained in the comparison of baseline and project conditions. To

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ensure conservativeness, the calculated natural gas savings were compared against the measured heat output from biomass between 2006 and 2011. This quantity of energy is representative of the amount of energy that would have been generated from the continued operation of the existing natural gas burners at the mill, had the biomass heating system not been installed as an environmentally preferable option.

3.8.

Project Technologies

The project consists of the generation of thermal energy through a 4.5 MW Vynke biomass boiler. The thermal energy generation system consists of one biomass combustion boiler with a rated capacity of 4.5MW and associated piping for distribution of hot water throughout the greenhouses to provide heat to the pepper plants throughout the year. The boiler is equipped with a multi-stage cyclone to capture particulate matter (fly ash) from the combustion exhaust. Thermal energy, in the form of hot water, is produced from the combustion of biomass in a 4.5MW Vyncke boiler. Biomass is delivered to C&B Farms from one primary biomass fuel supplier in 25 to 30 tonne shipments and typically 6-7 loads are received per week for just in time delivery of fuel during the heating season. Two additional biomass suppliers are utilized when required. Biomass is unloaded directly into the covered storage hopper that feeds the boiler via a conveyor belt so additional transportation of biomass in not required. The biomass is burned as received and no additional drying, grinding or processing of the biomass takes place at the C&B Farms site. The covered storage silo can hold up to eight loads of biomass or approximately one week’s worth of biomass. Figure 2 shows a portion of the new 4.5 MW Vynke biomass boiler installed at C&B Farms.

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Figure 2: 4.5 MW Vynke Biomass Boiler at C&B Farms

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3.9.

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Assertion of GHG Emission Reductions

Table 1 illustrates the quantity of GHG reductions achieved by the project, disaggregated by vintage year and GHG type. This covers the period October 11, 2006 – December 31, 2011. Table 1 - GHG Emission Reductions, 2006 - 2011 Vintage Year

2

CO2 (t CO2)

CH4 (t CH4)

CH4 Global Warming Potential

N20 (t N2O)

N2O Global Warming Potential

Total (t CO2 e)

2,090.5

58.948

21

- 0.0072

310

3,326

2007

2,905.7

79.779

21

- 0.0082

310

4,578

2008

3,495.2

67.590

21

0.0139

310

4,918

2009

3,212.4

63.143

21

0.0119

310

4,542

2010

3,102.1

63.789

21

0.0092

310

4,444

2011

3,303.2

65.876

21

0.0115

310

4,690

Total

18,109.1

399.124

21

0.0311

310

26,498

2006

*Note that totals may not add up due to rounding

2

Partial year, October 11 – December 31 only.

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3.10.

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Identification of Risks to Project

The identification and analysis of risks associated with the quantification of GHG emission reductions from this project has been completed by the third party verifier, listed below in Section 2.11, in accordance with ISO-14064. The generation of thermal energy using biomass in place of fossil fuels results in a permanent GHG emission reduction since the fossil fuel displacement cannot be reversed. This project type does not involve biological or geological sequestration-related risks.

3.11.

Roles and Responsibilities

Project Proponent: C&B Farms Ltd. Address: Contact: Phone: Fax: Email:

327 Essex Road 18, Leamington, ON, N8H 3V5, Canada Brady Tiessen (519) 322-2772 (519) 322-2576 [email protected]

Authorized Project Contact: Blue Source Canada ULC Address: Suite 700, 717- 7th Avenue S.W Calgary, Alberta T2P 0Z3 Contact: Warren Brooke, Carbon Services Project Manager Phone: (403) 262-3026 x259 Fax: (403) 269-3024 Email: [email protected] 3rd Party Verification Team: Internat Energy Solutions Canada Inc. Address: Suite 200, 294 Richmond Street East, Toronto, ON, M5A 1P5 Lead Verifier: Livio Nichilo, P.Eng. Phone: (416) 628-4658 ext. 140 Fax: (888) 868-0960 Email: [email protected]

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3.12.

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Project Eligibility



The project is eligible to create emission reductions as follows:The GHG emission reduction assertion was quantified using a quantification methodology considered to be industry best practice guidance (Alberta Quantification Protocol for the Diversion of Biomass to Energy from Biomass Combustion Facilities, Version 1, September 2007);



The quantification protocol referenced was developed in accordance with the ISO 14064 Part 2 standard, as required under the Alberta Offset System Protocol development process;



The GHG assertion has been verified by an independent third-party;



The facility is not subject to any regulations requiring the use of biomass or prohibiting the combustion of natural gas, fuel oil, or coal for thermal energy generation in Ontario.



The project is not currently subject to any climate change or emissions management legislation in the province of Ontario or Federally in Canada;



Potential GHG emission reductions generated by this project are not listed on any other GHG reduction registry in Canada or internationally; and,



The project has not received any public funds in exchange for GHG emission reductions (e.g. offsets) resulting from this project.



All environmental attributes generated by the project, including any GHG emission reduction benefits, are owned solely by C&B Farms Ltd.

3.13.

Summary Environmental Impact Assessment

An environmental impact assessment was not required for this Project.

3.14.

Stakeholder Consultations

Stakeholder consultations were not required for this Project. The Alberta Offset System Biomass Quantification Protocol used to quantify VERRs from the Project was developed following a transparent consultation process with industry stakeholders to ensure the relevance, accuracy, conservativeness, consistency, and transparency of the protocol.

3.15.

Project History

The following provides a chronological history of the project to date: 

Prior to the project (Pre-October 2006): Prior to the implementation of the project, all of the heating requirements for the greenhouses at C&B Farms were met with fossil fuels. There were two 200-hp, one 800-hp and one 700-hp natural-gas-fired boilers. One of the 200-hp boilers and the 700-hp boiler had the capability of burning fuel oil.



October 2006: Onsite construction of a 4.5 MW Vynke biomass boiler and all associated equipment and feedstock is completed.

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October 11, 2006: The new 4.5 MW Vynke biomass boiler is fully commissioned.

It is anticipated that the project will continue to create credits in subsequent years during the month of April for the previous calendar year.

4. Selection and Justification of the Baseline Scenario Two baseline scenarios were evaluated for the Project. These scenarios and the relevant barriers affecting each of these scenarios are summarized in Table 2 below: Table 2: Barriers Assessment of Baseline Alternative Scenarios Baseline Scenario Alternatives

Relevant Barriers Financial/Economic: The use of biomass rather than fossil fuels has the potential to be a cheaper fuel source for C&B Farms when comparing fuel costs, as biomass materials were locally available from a third-party supplier at the time the project was conceptualized. However, the high capital costs of implementing a new biomass fueled heating system would serve to be a significant impediment in the implementation of this project. The return on investment from implementing the biomass heating system may have appeared to be attractive relative to the continued operation of the preexisting gas burners, but there were significant risks in investing a large amount of capital in a new technology.

Alternative 1: The generation of heat using a biomass heating system in the absence of commercializing GHG reductions.

The implementation of the biomass system and related infrastructure was a significant capital expenditure, which could have been avoided by continuing to operate the existing infrastructure. Also, the implementation of a biomass energy generation system requires infrastructure to convey the wood residues, to control particulate matter and to handle ash from the boilers. Institutional: The biomass boiler system also requires trained personnel to operate and troubleshoot. The operation and maintenance of the biomass gasification system and fuel feeding equipment is much more challenging and costly than the continued operation of the natural gas burners. New Technology: The implementation of biomass boiler technology required a significant amount of training of staff to operate the system, and infrastructure development on-site to facilitate the commissioning and operation of the biomass system.

Alternative 2: The generation of heat using fossil fuels.

Financial/Economic: Greenhouse operations in Canada have very high heating loads and thus can be vulnerable to volatile fuel prices. The volatility of natural gas prices posed a risk to C&B Farm’s competitiveness in the commercial greenhouse business as fuel prices significantly impact operating costs. The use of biomass wastes for thermal energy generation would likely result in lower fuel costs than the continued use of fossil fuels. The continued operation of the natural gas-fired or fuel-oil fired heating systems would not require any incremental capital costs.

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The continued operation of the fossil-fuel-fired heating systems at C&B Farms would represent the fewest operational challenges and fewest risks as the existing infrastructure could continue to be operated with no new technology, infrastructure or fuel supply. Environmental/Social: The continued use of natural gas would have relatively low net environmental impacts from criteria air contaminants as natural gas is clean burning. Greenhouse gas emissions would be significantly higher than if biomass were used, but would remain the same as historical operations. However, the continued use of fossil fuels would not support claims of environmental sustainability. No social impacts would be expected from the continued use of fossil fuels.

Based on the barriers test above, BASELINE SCENARIO ALTERNATIVE 2 is considered the most likely baseline scenario. The baseline scenario is defined as the use of the pre-existing fossil fuel combustion equipment at C&B Farm’s facility to meet the thermal energy demands of the greenhouses. The continuation of previous practices represents the most likely alternative as the implementation of a new biomass heating technology posed a number of risks. The baseline condition for this project is defined as the use of natural gas, fuel oil and coal to meet the heat load generated from the use of biomass in the project condition. Functional equivalence is maintained through the use of a baseline energy intensity (m3 of natural gas consumed per unit of production) and comparing this intensity to the intensity in the project condition.

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5. Inventory of Sources, Sinks and Removals (SSRs) for the Project and Baseline Conditions 5.1. Project Condition In the development of the Biomass Protocol, SSRs were identified by reviewing relevant process flow diagrams, consulting with relevant industry stakeholders (through the Alberta Offset System Quantification Protocol Development Process) and reviewing available good practice guidance. This iterative process confirmed that the SSRs in the process flow diagrams included below cover the full scope of eligible biomass project activities under the protocol. The project condition, as defined in the Biomass Protocol, includes relevant SSRs and processes as shown in Table 3, Figure 3 and

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Figure 4 below. Note that the following table has not been adapted to fit this particular project, but instead includes the generic definitions as written in the Alberta Biomass Protocol. Table 3: Project Condition Sources, Sinks, and Removals of GHG Emissions 1. SSR

2. Description

3. Controlled, Related or Affected

Upstream SS’s during Project Operation 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.

P1 Collection of Biomass

Collection of biomass from a landfill is a resource recovery procedure. It reduces the quantity of waste 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.

Related

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.

P2 Storage of Biomass

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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. 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

Related

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with the baseline condition.

P3 Processing of Biomass

P4 Transfer of Biomass

P5 Transport of Biomass

P22 Fuel Extraction / Processing

P23 Fuel Delivery

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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. 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. 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. 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. 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

Related

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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. Onsite SS’s during Project Operation

P7 Storage of Biomass

Biomass may be stored on-site in piles where anaerobic decomposition may occur, 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.

Controlled

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

Prepared by Blue Source Canada

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.

Controlled

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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. 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. 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. Waste 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. Waste may be transferred from the waste storage area to containers for the transportation of the waste 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.

P12 Combustion of Biomass

P15 Storage of Waste

Any energy inputs associated with P15 Storage of Waste, such as wetting, sorting or agitation of the waste, are to be included here. Quantities and types for each of the energy inputs would be tracked. 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. Waste, 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.

Controlled

Controlled

The characteristics of these storage piles, in terms of size, composition, shape and duration of storage may all need to be tracked.

Prepared by Blue Source Canada

19

GHG Report – C&B Farms Biomass Heating Project 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 P21 Electricity Usage 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. Downstream SS’s during Project Operation Waste materials may be transported to disposal sites by truck, barge and/or train. The related energy inputs for fuelling this equipment are captured under this SS, for the P17 Transport of Waste 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. Waste may be disposed of at a disposal site (typically landfill or land application location) by transferring the waste from the transportation container, spreading, burying, processing, otherwise handling the waste using a combination of loaders, conveyors and P18 Disposal of Waste 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. Waste may decompose in the disposal facility resulting in the production of methane. Under two alternatives, the fly ash (either with or without the other waste products from the facility) may either be used as a soil amendment or as a concrete amendment. P19 and P20 Decomposition of Disposal site characteristics and mass disposed of at each site may need to be tracked. Waste and Methane Collection / A methane collection and destruction system may be in place at the disposal site. If such Destruction a system is active in the area of the landfill where this waste 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 Other

Prepared by Blue Source Canada

11 June 2012

Controlled

Related

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P24 Development of Site

P25 Building Equipment

P26 Transportation of Equipment

P27 Construction on Site

P28 Testing of Equipment

P29 Site Decommissioning

Prepared by Blue Source Canada

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. 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 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. 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. 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. 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. 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.

11 June 2012

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Figure 3: Project Element Lifecycle Diagram for Project Condition

Prepared by Blue Source Canada

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Figure 4: Process Flow Diagram for Project Condition

Prepared by Blue Source Canada

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5.2. Baseline Condition The baseline condition selected and justified in Section 3 considers the generation of a functionally equivalent quantity of thermal energy, using the most likely fuel, as the quantity of heat generated under the project condition. In this particular case, the most likely alternative fuel would have been the continued use of natural gas and fuel oil in the pre-existing boilers to provide heat for the greenhouses. Thermal energy produced from biomass combustion at C&B Farms is used on site to provide heat to greenhouses growing peppers using a network of hot water pipes that circulate hot water throughout the greenhouses, and is therefore offsetting a portion of the heat load required to operate the greenhouses, which would have been derived from fossil fuel combustion. A combination of natural gas, fuel oil and coal would have been used if the biomass combustion system had not been installed. The biomass combustion boiler was originally selected as a flexible option to allow for the combustion of coal or biomass depending on price. The baseline condition, as defined in the Biomass Protocol, includes relevant SSRs and processes as shown in Table 4 and Figure 5 and Figure 6 below. Note that the following table has not been adapted to fit this particular project, but instead includes the generic definitions as written in the Alberta Biomass Protocol. Table 4: Baseline Condition Sources, Sinks, and Removals of GHG Emissions 1. SSR

2. Description

3. Controlled, Related or Affected

Upstream SS’s during Baseline Operation 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. B1 Collection of Biomass

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.

Related

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.

Prepared by Blue Source Canada

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GHG Report – C&B Farms Biomass Heating Project

B2 Storage of Biomass

B3 Processing of Biomass

B4 Transfer of Biomass

B5 Transport of Biomass

Prepared by Blue Source Canada

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

11 June 2012

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condition.

B13 Fuel Extraction / Processing

B14 Fuel Delivery

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. 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

Related

Onsite SS’s during Baseline Operation 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. B11 Electricity Production

B12 Thermal Energy Production

B6 Transfer of Biomass

B8 Disposal of Biomass

Prepared by Blue Source Canada

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. 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 waste 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. 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. Biomass may be disposed of at a disposal site by transferring the biomass from the transportation container, spreading, burying, processing, otherwise handling the biomass

Controlled

Controlled

Controlled

Controlled

26

GHG Report – C&B Farms Biomass Heating Project using a combination of loaders, 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 if the SS is to be included. Waste 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 A methane collection and destruction system may be in place at the disposal site. If such Biomass and Methane Collection / a system is active in the area of the landfill where this waste is being disposed, then this Destruction methane collection must be accounted for in a reasonable manner. The characteristics of the methane collection and destruction system must be tracked Downstream SS’s during Baseline Operation 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 B7 Beneficial Use of Biomass generation. The greenhouse gas emissions are associated with the energy inputs and processes required would need to be tracked. Others 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, B15 Development of Site 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. 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 B16 Building Equipment 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.

Prepared by Blue Source Canada

11 June 2012

Controlled

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GHG Report – C&B Farms Biomass Heating Project

B17 Transportation of Equipment

B18 Construction on Site

B19 Testing of Equipment

B20 Site Decommissioning

Prepared by Blue Source Canada

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. 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. 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. 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.

11 June 2012

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Figure 5: Baseline Element Lifecycle Diagram

Prepared by Blue Source Canada

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Figure 6: Process Flow Diagram for Baseline Condition

Prepared by Blue Source Canada

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5.3. Comparison of Project and Baseline SSRs Table 5, below, provides a summary of the SSRs included and excluded from quantification as defined in the Biomass Protocol. It should be noted, that the inclusion/exclusion of SSRs and related justifications in Table 5, below, are generic and were not modified for this specific project as the exclusion of SSRs that are not relevant to the project configuration at C&B Farms is discussed in Section 5.0. Table 5: Inclusion and Exclusion of Sources, Sinks, and Removals of GHG Emissions 2. Baseline 2. Project 4. Include or Exclude 1. Baseline Options (C, R, A) (C, R, A) from Quantification Upstream SS’s P1 Collection of Biomass

N/A

Related

B1 Collection of Biomass

Related

N/A

N/A

Related

P2 Storage of Biomass

Exclude

Exclude B2 Storage of Biomass

Related

N/A

P3 Processing of Biomass

N/A

Related

B3 Processing of Biomass

Related

N/A

P4 Transfer of Biomass

N/A

Related

B4 Transfer of Biomass

Related

N/A

P5 Transport of Biomass

N/A

Related

B5 Transport of Biomass

Related

N/A

P22 Fuel Extraction / Processing

N/A

Related

Include

B13 Fuel Extraction / Processing

Related

N/A

Include

N/A

Related

Exclude

P23 Fuel Delivery

Prepared by Blue Source Canada

Exclude

Exclude

Exclude

5. Justification for Exclusion

Under the majority of project and baseline configurations, the collection of biomass will be functionally equivalent. These SS’s may therefore be excluded. 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. Under the majority of project and baseline configurations, the processing of biomass will be functionally equivalent and therefore these SS’s may therefore be excluded. 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. Under the majority of project and baseline configurations, the transport of biomass will be functionally equivalent and therefore these SS’s may therefore be excluded. N/A These SS’s are not relevant to the project as the emissions from

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B14 Fuel Delivery

Related

11 June 2012

N/A

Exclude

these practices are covered under proposed greenhouse gas regulations.

Onsite SS’s

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

N/A

N/A

Controlled

Include

P15 Storage of Waste

N/A

Controlled

Exclude

P21 Electricity Usage

N/A

Controlled

Exclude

Controlled Controlled

N/A N/A

Include Include

N/A As per the discussion on P2 and B2 Storage of Biomass, the project proponent can demonstrate that the storage of waste 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 waste 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 noncombusted biomass. Therefore, the emissions from the storage of waste under this SS will be small and therefore may be excluded. This SS is not relevant to the project as the emissions from the electricity consumed at the facility are covered under proposed greenhouse gas regulations. N/A N/A

P7 Storage of Biomass

P6, P8 to P11, P13, P14 and P16 Facility Operation P12 Combustion of Biomass

B11 Electricity Production B12 Thermal Energy Production

Prepared by Blue Source Canada

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B6 Transfer of Biomass

Controlled

N/A

Exclude

B8 Disposal of Biomass

Controlled

N/A

Exclude

Controlled

N/A

Include

B9 and B10 Decomposition of Biomass and Methane Collection / Destruction Downstream SS’s

P17 Transport of Waste

N/A

Related

Exclude

P18 Disposal of Waste

N/A

Related

Exclude

P19 and P20 Decomposition of Waste and Methane Collection / Destruction

N/A

Related

Exclude

Prepared by Blue Source Canada

The greenhouse gas emissions covered under this SS result from the operation of equipment and machinery at the disposal site for transferring waste 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 reasonable. Excluded as the volume of biomass being disposed of represents less than 5% of the annual waste disposed of at the disposal facility under the majority of configurations. N/A

Under the majority of project configurations, the volume of waste generated is less than 2% of the total biomass processed at the facility. Further, the distance to the disposal site is typically less than 50 kilometres, 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. 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. 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

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11 June 2012 impact on methane collection and destruction systems. Therefore, this SS is excluded.

B7 Beneficial Biomass Use

Related

N/A

Exclude

Excluded as greenhouse gas 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

P25 Building Equipment

N/A

Related

Exclude

P26 Transportation of Equipment

N/A

Related

Exclude

P27 Construction on Site

N/A

Related

Exclude

P28 Testing of Equipment

N/A

Related

Exclude

P29 Site Decommissioning

N/A

Related

Exclude

Prepared by Blue Source Canada

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. 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. 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 the site would be similar. 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. 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. 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

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11 June 2012 lower toxicity of the facility fuel compared to fossil fuel power facilities.

B15 Development of Site

Related

N/A

Exclude

B16 Building Equipment

Related

N/A

Exclude

B17 Transportation of Equipment

Related

N/A

Exclude

B18 Construction on Site

Related

N/A

Exclude

B19 Testing of Equipment

Related

N/A

Exclude

B20 Site Decommissioning

Related

N/A

Exclude

Prepared by Blue Source Canada

Excluding emissions from the development of the site for the baseline scenario represents a conservative approach of accounting for these emissions. Excluding emissions from the building of equipment for the baseline scenario represents a conservative approach of accounting for these emissions. Excluding emissions from the transportation of equipment to the site for the baseline scenario represents a conservative approach of accounting for these emissions. Excluding emissions from the construction on the site for the baseline scenario represents a conservative approach of accounting for these emissions. Excluding emissions from the testing of equipment at the site for the baseline scenario represents a conservative approach of accounting for these emissions. Excluding emissions from the decommissioning of the site for the baseline scenario represents a conservative approach of accounting for these emissions.

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6. Quantification and Calculation of GHG Emissions and Reductions The quantification of relevant SSRs for each of the three greenhouse gases (CO2, CH4, and N2O) is defined using the three equations below, as presented in the Alberta Biomass Protocol. These calculation methodologies serve to complete the following three equations for calculating the emission reductions from the comparison of the baseline and project conditions.

Emission Reduction = Emissions Baseline – Emissions Project Emissions Baseline = Emissions Decomp Biomass + Emissions Electricity + Emissions Thermal Heat Generation + Emissions Fuel Extraction / Processing

Emissions Project = Emissions Facility Operation + Emissions Combustion of Biomass + Emissions Fuel Extraction / Processing

Where: Emissions Baseline = sum of the emissions under the baseline condition. 1. Emissions Decomp Biomass = emissions under SSR B9 and B10 Decomposition of Biomass and Methane Collection/Destruction 2. Emissions Thermal Heat = emissions under SSR B12 Thermal Energy Produced. 3. Emissions Fuel Extraction / Processing = emissions under SSR B13 Fuel Extraction and Processing Emissions Project = emissions under the project condition. 4. Emissions Facility Operation = emissions under SSR P6, P8 to P11, P13, P14 and P16 Facility Operation. 5. Emissions combustion of biomass = emissions under P12 Combustion of Biomass The following two SSRs (shown in Table 6) were not applicable to this project and as such were not quantified: Table 6: Justification of SSRs Exluded from Quantification Emissions Electricity = emissions under SSR B11 Electricity Electricity is not generated from biomass on-site and Production. therefore no electricity displacement occurs in the baseline scenario and this SSR is not relevant to this project. Emissions Fuel Extraction / Processing = emissions under SSR P22 No fossil fuels are consumed on site for conducting Fuel Extraction and Processing facility operations. All natural gas consumption at the greenhouses (e.g. when the biomass units are not

Prepared by Blue Source Canada

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GHG Report – C&B Farms Biomass Heating Project

11 June 2012 operating due to downtime) has been netted out in the baseline calculation for SSR B12 and therefore emissions related to fuel extraction and processing are not accounted for in the project condition.

Table 7 includes the detailed equations used for this project. Table 8 and Table 9 include the details of the emission factors used.

Prepared by Blue Source Canada

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GHG Report – C&B Farms Biomass Heating Project

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Table 7: Quantification Procedures 1. Project/ Baseline SS

2. Parameter / Variable

3. Unit

4. Measured / Estimated

5. Method

6. Frequency

7. Justify measurement or estimation and frequency

Project SS’s Emissions Combustion of Biomass = (Mass Biomass * EF CH4) ; (Mass Biomass * EF N2O) Emissions

Combustion

of Biomass

P12 Combustion of Biomass

Mass of Total Amount of Biomass Processed at the Facility / Mass

kg of CH4 ; N2O

kg

N/A

N/A

N/A

Quantity being calculated.

Measured

Direct measurements of mass of representative units of biomass received at the energy from biomass facility for combustion measured either at the facility or at load origin, prorated to number of loads received.

Measurement of weight of a representative number of loads as well as absolute number of loads of biomass as received at the biomass facility.

Measuring the mass of each load as it is received can be too much of a burden and delivery cycles tend to be uniform. This represents the industry practice.

Estimated

From Environment Canada reference documents.

Annual

Reference values adjusted annually as part of Environment Canada reporting on Canada's emissions inventory.

Biomass

CH4 Emissions Factor for Biomass / EF CH4

Prepared by Blue Source Canada

kg CH4 per kg

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GHG Report – C&B Farms Biomass Heating Project

N20 Emissions Factor for Biomass / EF N2O

kg N2O per kg

11 June 2012

Estimated

From Environment Canada reference documents.

Annual

Reference values adjusted annually as part of Environment Canada reporting on Canada's emissions inventory.

Baseline SS’s Emissions Decomp of Biomass = (Mass Biomass * MCF * DOC * DOCF * F * 16/12 - R) * (1 - OX) Emissions Decomp of Biomass

B9 and B10 Decomposition of Biomass and Methane Collection/ Destruction

Mass of Biomass Diverted from Stockpile, Storage or Landfill / Mass

kg of CH4

kg

N/A

N/A

N/A

Quantity being calculated.

Measured

Direct measurements of mass of representative units of biomass received at the energy from biomass facility for combustion measured either at the facility or at load origin, prorated to number of loads received.

Measurement of weight of a representative number of loads as well as absolute number of loads of biomass as received at the biomass facility.

Measuring the mass of each load as it is received can be too much of a burden and delivery cycles tend to be uniform. This represents the industry practice.

Estimated

Calculated based on IPCC and Environment Canada guidelines, provided in Appendix B and C.

Annual

Values calculated based on values published by IPCC. Reference values adjusted periodically as part of internal IPCC review of its methodologies.

Biomass

Methane Correction Factor / MCF

Prepared by Blue Source Canada

-

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GHG Report – C&B Farms Biomass Heating Project

Degradable Organic Carbon / DOC

Fraction of Degradable Organic Carbon Dissimilated / DOCF

-

-

11 June 2012

Estimated

Calculated based on IPCC and Environment Canada guidelines, provided in Appendix B and C.

Estimated

Calculated based on IPCC and Environment Canada guidelines, provided in Appendix B and C.

Fraction of CH4 in Landfill Gas / F

-

Estimated

From IPCC guidelines.

Recovered CH4 at Landfill / R

kg of CH4

Measured

Direct metering.

Estimated

From IPCC guidelines.

Oxidation Factor / OX

-

Annual

Values calculated based on values published by IPCC. Reference values adjusted periodically as part of internal IPCC review of its methodologies.

Annual

Values calculated based on values published by IPCC. Reference values adjusted periodically as part of internal IPCC review of its methodologies.

Annual

Reference values adjusted periodically as part of internal IPCC review of its methodologies.

Annual

Mass of methane collected and destroyed.

Annual

Reference values adjusted periodically as part of internal IPCC review of its methodologies.

Emissions Thermal Heat = Σ (Vol. Fuel i * EF Fuel i CO2); Σ (Vol. Fuel i * EF Fuel i CH4) ; Σ (Vol. Fuel i * EF Fuel i N20) B12 Thermal Energy Production

Emissions Thermal Heat

kg of CO2 ;

N/A

N/A

N/A

Quantity being calculated.

CH4 ; N2O

Prepared by Blue Source Canada

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GHG Report – C&B Farms Biomass Heating Project

11 June 2012

Thermal Energy Produced at Site / Electricity

GJ

Emissions Factor for Electricity / EF

kg of CO2e per kWh

Estimated

Thermal energy delivered to greenhouses is estimated based on direct measurement of calorific value of fuel and combustion efficiency of the boiler.

Estimated

From Environment Canada reference documents.

Monthly

Represents the standard industry practice and appropriate level of detail for small combustion systems providing thermal energy.

Annual

Reference values adjusted annually as part of Environment Canada reporting on Canada's emissions inventory.

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

Emissions Fuel B13 Fuel Extraction and Processing

Extraction / Processing

Volume of Fuel Combusted for B12 / Vol. Fuel

Prepared by Blue Source Canada

kg of CO2e

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.

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.

3

L/ m / other

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GHG Report – C&B Farms Biomass Heating Project CO2 Emissions Factor for Fuel Including Production and Processing / EF Fuel CO2

kg CO2 per L/ 3 m/ other

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

kg CH4 per L/ 3 m/ other

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

kg N2O per L/ 3 m/ other

Prepared by Blue Source Canada

11 June 2012

Estimated

From Environment Canada reference documents.

Estimated

From Environment Canada reference documents.

Estimated

From Environment Canada reference documents.

Annual

Reference values adjusted annually as part of Environment Canada reporting on Canada's emissions inventory.

Annual

Reference values adjusted annually as part of Environment Canada reporting on Canada's emissions inventory.

Annual

Reference values adjusted annually as part of Environment Canada reporting on Canada's emissions inventory.

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GHG Report – C&B Farms Biomass Heating Project

11 June 2012

Relevant Emission Factors: Table 8: Emission Intensity of Fuel Extraction and Production (Heavy Oil and Natural Gas) 1 Heavy Oil (Fuel Oil #6) Production Emissions Factor (CO2e) 0.179967 Natural Gas Emissions Factor (CO2) Emissions Factor (CH4) Emissions Factor (N2O) Emissions Factor (CO2) Emissions Factor (CH4) Emissions Factor (N2O) 1.

2.

Extraction 0.043 0.0023 0.000004 Processing 0.090 0.0003 0.000003

kg CO2e per Litre

2

3

kg CO2 per m 3 kg CH4 per m 3 kg N2O per m 3

kg CO2 per m 3 kg CH4 per m 3 kg N2O per m

Canadian Association of Petroleum Producers (CAPP) “Technical Report: A National Inventory of Greenhouse Gas (GHG), Criteria Air Contaminants (CAC), and Hydrogen Sulphide (H2S) Emissions by the Upstream Oil and Gas Industry Volume 1, Overview of the GHG Emissions Inventory – September 2004” Table 1 provides Light/Medium Crude Oil production data for Canada as 55,588.0 x 103 m3 in year 2000 (their latest figure) Table 2 provides absolute GHG emissions for production of Light/Medium Crude Oil in Cnada as 10,004 ktonneCO2e in year 2000 (their latest figure) Emissions factor for Light/Medium Crude Oil is therefore (10,004,000,000 kgCO2e) / (55,588,000,000 L) = 0.179967 kgCO2e/L Although production, extraction and processing emissions factors for extraction and processing of Natural Gas, Gasoline and Diesel fossil fuels are not listed in the Offset Protocol for Diversion of Biomass to Energy from Biomass Combustion Facilities, consistent emissions factors are referenced in many Offset Protocols under the Alberta Environment Specified Gas Emitter’s Regulation (SGER). Examples include: a. Alberta Environment, 2008, Quantification Protocol for Acid Gas Injection, May 2008. b. Alberta Environment, 2008, Quantification Protocol for Wind-Powered Electricity Generation, March 2008, Version1. c. Alberta Environment, 2008, Quantification Protocol for Low-Retention, Water-Powered Electricity Generation as Run-of-River or on an Existing Reservoir, May 2008, Version 1.

Prepared by Blue Source Canada

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GHG Report – C&B Farms Biomass Heating Project

11 June 2012

Table 9: Emission Intensity of Combustion Natural Gas Marketable (Ontario), Agricultural Use 3

Emissions Factor (CO2) 4 Emissions Factor (CH4) Emissions Factor (N2O)

Heavy Fuel Oil

3

1.879 0.000037 0.000035

kg CO2 per m 3 kg CH4 per m 3 kg N2O per m

3.124 0.00012 0.000064

kg CO2 per L kg CH4 per L kg N2O per L

0.840 0.00009 0.00002

kg CO2 per kg fuel kg CH4 per kg fuel kg N2O per kg fuel

5

Industrial Emissions Factor (CO2) Emissions Factor (CH4) Emissions Factor (N2O) Wood Fuel

6

Industrial Combustion Emissions Factor (CO2) Emissions Factor (CH4) Emissions Factor (N2O)

3

National Inventory Report 1990-2010, Part 2, Annex 8, 2012, Table A8-1, Page 194

4

National Inventory Report 1990-2010, Part 2, Annex 8, 2012, Table A8-2, Page 195

5

National Inventory Report 1990-2010, Part 2, Annex 8, 2012, Table A8-4, Page 196

6

National Inventory Report 1990-2010, Part 2, Annex 8, 2012, Table A8-26, Page 207

Prepared by Blue Source Canada

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GHG Report – C&B Farms Biomass Heating Project

11 June 2012

To determine the quantities of fossil fuels displaced by burning biomass fuels, the energy content of each source must be used. Table 10 gives the details of the energy content of the fossil fuels consumed on site, and the range of energy content for biomass delivered to the site. Table 10: Energy Content of Different Fuels Fuel Energy Content Fuel Natural Gas Fuel Oil #6 (Residual Fuel Oil) Biomass wood chips

Prepared by Blue Source Canada

Energy Content 0.0378 GJ/m3 0.0425 GJ/L 6,200 – 7,800 BTU/lb

Source From Union Gas website http://www.uniongas.com/aboutus/aboutng/composition.asp National Inventory Report 1990-2010, Part 2, 2012, Table A4-2, p171 Independent laboratory testing of biomass from supplier

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GHG Report – C&B Farms Biomass Heating Project

6.1.

11 June 2012

Sample Calculations

Biomass is delivered to site as it is required, so cumulative annual energy consumption was used rather than monthly breakdowns. The following sample calculations are presented using data from 2011. In 2011 the mass of wood chips consumed by C&B Farms was 2700.73 tonnes. The heating value of the wood chips varied between 6300 – 7800 BTU/lb based on independent laboratory tests done on samples from every 4th delivery from the biomass supplier, Ecostrat. The total biomass energy supplied in 2011 was 46,246.96 GJ. To determine how much fossil fuel is displaced in each project year, we must determine how much heat is delivered to the greenhouses based on the efficiency of the biomass boiler and the efficiency of the fossil fuel boilers. From the 2005 baseline year, it was determined that C&B Farms burned natural gas and fuel oil #6 in a ratio of 35.93% Natural Gas, and 64.07% Fuel Oil. 1. Heat Supplied to Greenhouses = (Biomass Energy Delivered to Site) x (Efficiency of Biomass Boiler7) Heat Supplied to Greenhouses in 2011 = (46,246.96 GJ) x (0.86) = 39,772.381 GJ 2. Fossil Fuel Energy Required in 2011 = (Heat Supplied to Greenhouses in 2011) / (Fossil Fuel Boiler Efficiency8) Fossil Fuel Energy Required in 2011 = (39,772.381 GJ) / (0.83) = 47,918.531 GJ 3. Fuel Oil #6 Displaced = (0.6407) x (Heat Supplied to Greenhouses) x (Energy Content of Fuel Oil) Fuel Oil #6 Displaced = (0.6407) x (47,918.531 GJ) x (23.53 L/GJ) = 722,385.96 L 4. Natural Gas Displaced = (0.3593) x (Heat Supplied to Greenhouses) x (Energy Content of Natural Gas) Natural Gas Displaced = (0.3593) x (47,918.531 GJ) x (26.46 m3/GJ) = 455,479.59 m3 With the quantities of fossil fuels offset by burning of biomass determined, the relative quantities of greenhouse gases emitted in the Baseline and Project conditions can be calculated as follows.

7

Natural Resources Canada - Report - "Combustion Testing at C&B Farms Inc". Saved as PDF called "C&B_Combustion_Testing_biomass_boiler.pdf" 8

Efficiency of Cleaver-Brooks boiler on natural gas = 81-82%, and on #6 oil = 82-83% according to April 13, 2012, email from Dino Lusetti at Industrial Boiler Specialties. 83% was used as the most conservative value.

Prepared by Blue Source Canada

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GHG Report – C&B Farms Biomass Heating Project

11 June 2012

Emissions Baseline = Emissions Decomp Biomass + Emissions Thermal Heat Generation + Emissions Fuel Extraction / Processing

5. Emissions Decomp Biomass = emissions under SS B9 and B10 Decomposition of Biomass and Methane Collection / Destruction The methane generation potential of waste streams disposed of in a landfill is determined from the following calculation outlined in the “National Inventory Report – Greenhouse Gas Sources and Sinks in Canada, 1990 – 2004” Environment Canada, April 2006. L0 = MCF * DOC * DOCF * F * 16/12 Where: L0 = CH4 generation potential (tonnes_CH4/tonne_waste) MCF = CH4 correction factor (fraction) = 0.4 for Unmanaged Landfill with shallow depth (