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Verification Report for Orica Carseland Works Nitric Acid Plant 2: Nitrous Oxide (N2O) Abatement from Nitric Acid Production Offset Project

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Verification Report for Orica Carseland Works Nitric Acid Plant 2: Nitrous Oxide (N2O) Abatement from Nitric Acid Production Offset Project Verification Report for Orica Carseland Works Nitric Acid Plant 2: Nitrous Oxide (N2O) Abatement From Nitric Acid Production Offset Project Prepared for: Capital Power Corporation 8th floor, 505 2 Street SW Calgary, Alberta T2P 1N8 & Orica Canada Inc. P.O. Box 250 Carseland, Alberta T0J 0M0 Prepared by: Stantec Consulting Ltd. 845 Prospect Street Fredericton, NB E3B 2T7 Project Number: 1232-10331 March 17, 2014 VERIFICATION REPORT FOR ORICA CARSELAND WORKS NITRIC ACID PLANT 2: NITROUS OXIDE (N2O) ABATEMENT FROM NITRIC ACID PRODUCTION OFFSET PROJECT TABLE OF CONTENTS EXECUTIVE SUMMARY .......................................................................................................................... 1 1.0 INTRODUCTION ......................................................................................................................... 1 1.1 PROJECT DESCRIPTION ................................................................................................................. 1 1.1.1 Location ....................................................................................................................... 1 1.2 PROCESSES AND ACTIVITIES ......................................................................................................... 1 1.3 BASELINE AND PROJECT CONDITIONS ....................................................................................... 2 1.4 GHG ASSERTION ............................................................................................................................ 2 2.0 VERIFICATION METHODOLOGY ............................................................................................... 4 2.1 VERIFICATION OBJECTIVES ........................................................................................................... 4 2.2 LEVEL OF ASSURANCE .................................................................................................................. 4 2.3 VERIFICATION CRITERIA ................................................................................................................ 4 2.4 VERIFICATION SCOPE ................................................................................................................... 4 2.5 MATERIALITY ................................................................................................................................... 5 2.6 VERIFICATION PLAN ...................................................................................................................... 5 3.0 VERIFICATION TEAM: QUALIFICATIONS, ROLES AND RESPONSIBILITIES ................................. 6 3.1 STATEMENT OF COMPLIANCE WITH THE SGER ........................................................................... 6 4.0 VERIFICATION ACTIVITIES ......................................................................................................... 7 4.1 INHERENT RISK ................................................................................................................................ 7 4.2 CONTROL RISK ............................................................................................................................... 7 4.3 DETECTION RISK ............................................................................................................................. 7 4.4 SITE VISIT .......................................................................................................................................... 9 4.5 VERIFICATION PROCEDURES ........................................................................................................ 9 4.6 CONFIRMATIONS ......................................................................................................................... 10 5.0 SUMMARY OF FINDINGS ......................................................................................................... 11 6.0 CONCLUSION ......................................................................................................................... 16 6.1 OPINION ....................................................................................................................................... 16 6.2 SUBMISSION DOCUMENTS .......................................................................................................... 16 7.0 CLOSURE ................................................................................................................................. 17 March 17, 2014 i VERIFICATION REPORT FOR ORICA CARSELAND WORKS NITRIC ACID PLANT 2: NITROUS OXIDE (N2O) ABATEMENT FROM NITRIC ACID PRODUCTION OFFSET PROJECT LIST OF TABLES Table E.1 Verification Summary ...............................................................................................E.1 Table 1.1 GHG Assertion ............................................................................................................. 3 Table 3.1 Verification Team ....................................................................................................... 6 Table 4.1 Schedule of Verification Activities ........................................................................... 8 Table 5.1 Verification and Sampling Plan .............................................................................. 11 Table 5.2 Identified Misstatements and Resolutions ............................................................. 15 LIST OF APPENDICES Appendix A Final Verification Plan Appendix B Submission Documents ii March 17, 2014 VERIFICATION REPORT FOR ORICA CARSELAND WORKS NITRIC ACID PLANT 2: NITROUS OXIDE (N2O) ABATEMENT FROM NITRIC ACID PRODUCTION OFFSET PROJECT EXECUTIVE SUMMARY A summary of the verification of Orica Carseland Works Nitric Acid Plant 2: Nitrous Oxide (N2O) Abatement From Nitric Acid Production Offset Project (the Project) is provided in Table E.1. Table E.1 Verification Summary Project Name Orica Carseland Works Nitric Acid Plant 2: Nitrous Oxide (N2O) Abatement From Nitric Acid Production Offset Project Project Description The Project reduces greenhouse gas (GHG) emissions associated with nitric acid production by using a dedicated catalyst to abate the nitrous oxide formed during ammonia oxidation in the nitric acid plant. Project Location 264077 Township Road 221, Carseland, Alberta T0J 0M0 (50 km southeast of Calgary); latitude 20033E to 200730E, 23063N to 25296N. Project Start Date March 29, 2012 Credit Start Date March 29, 2012 Credit Duration Period March 29, 2012 to March 29, 2020 Expected Lifetime of the 20 years Project Project Contact Jeff Zubach, Health and Environment Specialist 264077 Township Road 221 Carseland, AB, T0J 0M0, Canada T: (403) – 936 - 2228 E: [email protected] www.orica.com Applicable Quantification Quantification Protocol for Nitrous Oxide Abatement from Nitric Acid Production Protocol (version1.0, October 2009) Other Environmental No other environmental attributes / credits / benefits have been claimed by the Attributes Project as asserted by the Project Developer. Project Registration The Project is registered under the Alberta Emissions Offset Registry (AEOR). Ownership Orica Canada Inc. GHG Assertion The fundamental assertion verified is the quantification of 116,860 t CO2e in GHG reductions for the period of January 1, 2013 to December 31, 2013 resulting from the direct GHG emission reductions from the NAP2 plant due to the abatement of N2O as a result of the presence of the secondary catalyst in the ammonia burner under the primary catalyst where the abatement of N2O takes place. Level of Assurance The SGER and ESRD require the verifier to conduct sufficient procedures to deliver a reasonable level of assurance. The verification was planned and executed accordingly. Verification Criteria Climate Change and Emissions Management Act (the Act), SA 2003, c C-16.7; Specified Gas Emitters Regulation (SGER) Alta Reg. 139/2007; Technical Guidance for Offset Project Developers (version 4.0, February 2013); and Quantification Protocol for Nitrous Oxide Abatement from Nitric Acid Production (October 2009, V1.0) Verification Objective The objective of the verification was to assess whether the Project Report and the GHG assertion satisfies the verification criteria above. Verification Standards The verification was conducted in accordance with ISO 14064:3, ISO 14065, and guidance contained within the Technical Guidance for Greenhouse Gas Verification at Reasonable Level Assurance, January 2013, version 1.0. March 17, 2014 E.1 VERIFICATION REPORT FOR ORICA CARSELAND WORKS NITRIC ACID PLANT 2: NITROUS OXIDE (N2O) ABATEMENT FROM NITRIC ACID PRODUCTION OFFSET PROJECT Table E.1 Verification Summary Project Activity The Project Activity is eligible under the SGER to generate offsets as it meets the following conditions. Result from actions taken on or after January 1, 2002 – the Project began operation after this date. Be real, demonstrable, quantifiable – the Project has been verified according to the Verification Criteria above. Not be required by law – the Project is not required by any current or proposed law. Have clearly established ownership – the Project Developer provided sufficient and appropriate evidence that Orica owns the offset credits generated by the Project. Be counted once for compliance purposes – the Project’s offset credits are serialized on the Alberta Emission Offset Registry (AEOR). Be verified by a qualified third party – Stantec is a qualified third party (see Section 1.0, 3.1, and Statement of Qualifications). Have occurred in Alberta – the Project is physically located
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