Verdant Energy Ltd – Dapp Power Electric Generation Facility February 2020
Offset Project Report Verdant Energy Ltd – Dapp Power Electric Generation Facility
Project Developer: Dapp Power L.P., Calgary, Alberta
Prepared by: Dapp Power L.P.
Reporting Period: October 1 – December 31, 2019
Date: February 28, 2020
Verdant Energy Ltd – Dapp Power Electric Generation Facility February 2020
Greenhouse Gas Assertion
Project Developer: Dapp Power LP
Contact Name Grant Noll
Company Street Address 201, 525 – 11th Avenue SW
City, Province, Postal Code Calgary, Alberta, T2R 0C9
Telephone number with area code 403-261-9754
Website Address www.fortistar.com
Email address [email protected]
Project Documents:
Offset Project Report Verdant Energy Ltd – Dapp Power Electric Generation Facility October 1 – December 31, 2019
Offset Project Plan for Verdant Energy Ltd. – Dapp Power Electric Generation Facility, Revised December 3, 2019
Quantification Protocol for Energy Generation from the Combustion of Biomass Waste (AEP version Version 2.2, June 2018)
Project Identification:
Verdant Energy Ltd. – Dapp Power Electric Generation Facility Indicate the reporting period covered by the greenhouse gas assertion and associated project report October 1 – December 31, 2019
Provide a brief project description. The Dapp Power LP and its wholly owned subsidiary Bio-Fuels Inc. (the Project) is an electrical energy from biomass project located northwest of Westlock, Alberta and wood recycling depot located at a landfill on the west side of Edmonton respectively. The Project is owned and operated by Verdant Energy Ltd. which is the Alberta based enterprise under the FORTISTAR Biomass Group of White Plains, New York. The facility produces 16.5 MW of electricity from landfill diverted wood waste and forest products related wood residuals, using a bubbling fluidized bed gasifier/boiler and steam turbine. This electricity is transmitted to the Alberta electricity grid.
Verdant Energy Ltd – Dapp Power Electric Generation Facility February 2020
Dapp Electrical Generation Facility is located NW of the town of Westlock, AB. The legal description of the site is the SW ¼ of Section 1, Township 63, Range 2 west of the 5th Meridian. The Bio-Fuels Inc. wood recycling depot is located on the Northland Sand and Gravel Landfill in Edmonton at 231st St. and Hwy 16A in Parkland County (Edmonton). Wood biomass is received at this site and is processed before being shipped to the Dapp Generating Facility. Dapp Power periodically receives “processed” wood waste from other landfill owner/operators. The Project creates emission offsets by production of electrical energy from a renewable fuel (wood waste biomass) and avoidance of methane creation by diverting a portion of its wood biomass fuel from landfill. All power generated is sold into the Alberta power grid with the majority under power purchase agreement, and a small amount on the wholesale spot market. In the absence of the Project the methane avoidance at landfill and electricity generation would not occur. These emission offsets are recognized under the Quantification Protocol (Version 2.2, June 2018). Methane, a powerful GHG, is passively emitted from the storage of biomass where it undergoes anaerobic decomposition. The combustion of the methane component of the landfill gas results in emissions of biogenic carbon dioxide thus achieving a reduction in anthropogenic GHG emissions. In addition, the generation of electricity will offset other sources on the Alberta grid which in this case includes the combustion of fossil fuels.
Provide the legal land location for the project SW ¼ of Section 1, Township 63, Range 2 west of the 5th Meridian.
Emission Reduction Removal, Sequestration or Capture Assertion:
Vintage Gas Type Quantity (tCO2e)
2019 October 1 – December 31 CO2 (1,438.7) CH4 11,202.5 N2O (811.7) tCO2e 13,953.4
Total Quantity CO2e 22,905.5
Verdant Energy Ltd – Dapp Power Electric Generation Facility February 2020
Project Developer Signature: I am a duly authorized corporate officer of the project developer mentioned above and have personally examined and am familiar with the information submitted in this greenhouse gas assertion, the accompanying project report on which it is based. Based upon reasonable investigation, including my inquiry of those individuals responsible for obtaining the information, I hereby warrant that the submitted information is true, accurate and complete to the best of my knowledge and belief, and that all matters affecting the validity of the emission reduction claim or the protocol(s) upon which it is based have been fully disclosed. I understand that any false statement made in the submitted information may result in de-registration of credits and may be punishable as a criminal offence in accordance with provincial or federal statutes. The project developer has executed this offset project report as of the 28th day of February 2020.
Signature: ______
Name: Grant Noll Title: Vice President, Operations
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Verdant Energy Ltd – Dapp Power Electric Generation Facility February 2020
Table of Contents Greenhouse Gas Assertion ...... 2 1.0 Contact Information ...... 6 2.0 Project Scope and Site Description ...... 7 2.1 Project Implementation ...... 8 2.2 Protocol ...... 8 2.3 Risks ...... 9 3.0 Project Quantification ...... 10 3.1 Summary Table Non-Levied Emissions ...... 10 3.1 Summary Table Levied/Fuel Charge Emissions and Biogenic CO2 ...... 11 3.2 Calculations ...... 11 4.0 References ...... 12 Appendix A: Supporting Information ...... 13
List of Tables Table 1: Project Contact Information ...... 6 Table 2: Project Information ...... 7
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Verdant Energy Ltd – Dapp Power Electric Generation Facility February 2020
1.0 Contact Information Table 1: Project Contact Information
Project Developer Contact Information Additional Contact Information Verdant Energy Ltd. Dapp Power LP
Grant Noll, VP Operations Dominick Zimmerman, Plant Manager
201, 525-11th Avenue SW Box 6, Site 4, RR1
Calgary, Alberta Westlock, Alberta, T7P 2N9
403-261-9754 780-954-2393
www.fortistar.com Website Address n/a [email protected]
Authorized Project Contact (if applicable)
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Verdant Energy Ltd – Dapp Power Electric Generation Facility February 2020
2.0 Project Scope and Site Description Table 2: Project Information
Project title Verdant Energy Ltd. – Dapp Power Electric Generation Facility
Project purpose and The project’s purpose is to generate electrical energy from biomass. The objectives opportunity for generating carbon offsets with this project arises mainly from indirect GHG emission reductions through the use of biomass to offset non-renewable electricity and due to the avoidance of methane emissions from decomposition of waste in the landfill.
Activity start date September 2005.
Offset start date January 1st 2006.
Offset crediting January 1, 2006 to December 31, 2023. The project received a 5-year period crediting period extension in 2014. The Project received a second 5- year extension for Period January 1, 2019 to December 31, 2023 Reporting period October 1 – December 31, 2019 covered by the project Actual emission 22,905 tCO2e reductions/capture/se questration Unique site identifier Latitude: 54.415042 Longitude : -114.176788 The Dapp Power Generation Facility is located 50 km north of the town of Westlock, AB. The legal land description of the site is the SW ¼ of Section 1, Township 63, Range 2, west of the 5th Meridian.
Is the project located Yes in Alberta? Are Emission Reductions in Yes Alberta? th Project boundary SW ¼ of Section 1, Township 63, Range 2, west of the 5 Meridian. Operating facility is within this owned parcel of land described above and located on the SW corner of this owned property. Land not used for project operation is undeveloped treed land.
A map of the operating site and operating boundary is provided in Appendix A. Ownership Verdant Energy Ltd wholly owned subsidiary of Fortistar LLC
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Verdant Energy Ltd – Dapp Power Electric Generation Facility February 2020
Dapp Power LP owns and transacts Offsets by permission of parent company Verdant Energy Ltd.
Commercial contracts or agreements with counterparties for wood fuel supply or power generation include acknowledgement of ownership of environmental attributes by Dapp Power or subsidiary Biofuels Inc.
No other party could claim such emission reductions under this Protocol.
2.1 Project Implementation A new Offset Project Plan was created for 2019 to discriminate between levied and non- levied fuels as well as included Offset Eligibility Extension Letters from AEP. There were no levied fuels in this reporting period of Q4 2019. The project has been implemented as described in the Project Plan and under the guidelines and requirements set out in the Protocol for Energy Generation from the Combustion of Biomass Waste. There is no change to the emission reduction methodology from prior periods. Electricity has been generated from waste biomass and methane has been avoided by use of some wood biomass material whose ultimate fate would be deposit into landfill, in absence of the project. The flexibility mechanisms and CO2e calculations have been implemented in line with the Protocol described in 2.2 and Carbon Offset Emissions Factor Handbook.
There is a semi-annual reporting period and verification for the project. The first period is from January to September, the second period is from October to December.
There are no changes to calculations procedures, data collection, record keeping or emission factors from the last reporting period: - There were no fossil fuels subject to the carbon levy during this period. - AEP advised that for this period we may continue to use emission factors from the Carbon Emission Factors Handbook V1, March 2015
2.2 Protocol Quantification Protocol for Energy Generation from the Combustion of Biomass Waste (AESRD version 2.2, April 2018) As outlined in the protocol, the project proponent has sufficient evidence to demonstrate that: The energy is produced from biomass waste and is offsetting fossil fuel generated energy; The quantification of reductions achieved by the project is based on actual measurement and monitoring (except where indicated in the protocol); and, The project must meet the requirements for offset eligibility as specified in the applicable regulation and guidance documents for the Alberta Offset System.
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Verdant Energy Ltd – Dapp Power Electric Generation Facility February 2020
Flexibility mechanisms 1 has been implemented as described in the project plan for this reporting period. Waste biomass diverted from landfill is separately measured and is eligible to be included as methane avoidance as described in the Protocol, above, and Carbon Offset Emission Factors Handbook. Other eligibility requirements have been met including:
• The Project activities occur in Alberta. • The project and any of its activities are not required or mandated under any law or regulation. • The project was initiated after January 1, 2002 • Emission reductions occur after 2002. • The emission reductions are real, demonstrable, quantifiable and verifiable using replicable means • The project has clear ownership • Offset credits generated in this project are counted once
2.3 Risks
All material risks to the project or emission offsets have been identified in Section 3.5 of the Project Plan.
There are no other emission offset projects on this legal land description.
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Verdant Energy Ltd – Dapp Power Electric Generation Facility February 2020
3.0 Project Quantification
3.1 Summary Table Non-Levied Emissions Non-levied emissions are described as project emissions fossil fuels that were exempt from carbon levy (site diesel, natural gas, electricity purchased) and electricity sold to grid during the period. The Carbon Offset Emission Factor Handbook is used to determine CO2e from grid electricity displaced in a reporting period.
Vintage Gas Type Baseline Project Total Reduction, Emissions Emissions Sequestration, or Q4 2019 Capture tCO2e tCO2e
CO2 0 1,438.7 (1,438,7)
CH4 landfill 11,321.8 119.3 11,202.5
N2O 0 811.7 (811.7)
CO2e Grid 13,953.4 0 13,953.4
Total for CO2e 25,275.2 2,369.7 22,905.5 Reporting Period
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Verdant Energy Ltd – Dapp Power Electric Generation Facility February 2020
3.1 Summary Table Levied/Fuel Charge Emissions and Biogenic CO2 Levied emissions are described as project emissions from levied fuel fuels (transport and processing diesel, gasoline, propane). Biogenic emissions are CO2 from combustion of biomass as fuel and CH4 from landfill diverted biomass. In the Protocol, CO2 from biomass combustion is considered neutral and avoided CH4 created from landfill mass is treated as a reduction. The Carbon Offset Emission Factor Handbook is used to determine allowable CH4 reduction to be claimed in a reporting period.
Vintage Gas Type Baseline Project Total Reduction, Emissions Emissions Sequestration, Q4 2019 or Capture tCO2e tCO2e
CO2 0 0 0
CH4 0 0 0
N2O 0 0 0
CO2 Biogenic 37,511.5 37,511.5 0
Total for CO2e 37,511.5 37,511.5 0 Reporting Period
3.2 Calculations The quantification of the reductions, removals and reversals of relevant SS’s for each of the greenhouse gases will be completed using the methodologies outlined in Section 4 of the Protocol. The methodologies serve to complete the following equations for calculating emission reductions:
Eligible Emission Reductions = Emissions Non-Levied Baseline – Emissions Non-Levied Project
Emissions Non-Levied Baseline = (B4) Emissions Fuel Extraction and Processing + (B6) Emissions Off-Site Electricity + (B13) Emissions On-site Electricity + (B15) Emissions Disposal of Biomass + (B12) Emissions Facility Operation + (B3) Emissions Processing of Biomass
Emissions Non-Levied Project = (P4) Emissions Fuel Extraction and Processing + (P15) Emissions Combustion of Biomass + (P12) Emissions Facility Operations + (P3) Emissions Processing of Biomass
Therefore:
22,905.5 tonnes CO2e (reduction) = 25,275.2 tonnes (baseline emissions) – 2,369.7 (project emissions)
Detailed GHG reduction calculation summary in Appendix A.
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Verdant Energy Ltd – Dapp Power Electric Generation Facility February 2020
Levied Emission Reductions = Emissions Levied Baseline – Emissions Levied Project
Emissions Levied Baseline = (B1) Emissions Collection, Transfer, Transport + (B3) Emissions Processing of Biomass + (B12) Emissions Facility Operations + (B16) Emissions Off-Site Heat + (B18) Emissions On-Site Heat
Emissions Levied Project = (P1) Emissions Collection, Transfer, Transport + (P3) Emissions Biomass Processing + (P12) Emissions Facility Operations + (P15) Emissions Combustion of Biomass & Fossil Fuels
The details of the parameters used in the equations and associated quantification methodology are presented in Appendix A.
4.0 References Include references. Author, Year, Title.
1. Carbon Offset Emission Factors Handbook, V1, March 2015, Alberta Environment and Sustainable Resource Development
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Verdant Energy Ltd – Dapp Power Electric Generation Facility February 2020
Appendix A: Supporting Information
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Detailed GHG Reduction Calculation Summary
Total tCO2 tCH4 tN2O tCO2e Baseline CO2e B6 - Offsite Electricity Generation Displaced in Project 13,953.4 13,953.4 B15 - Disposal of Biomass (Flex 1 and 2) 452.9 11,321.8 B15 - Disposal of Biomass (Flex 3) 0.0 0.0 0.0 B15 - Disposal of Biomass (Flex 4) 0.0 0.0 0.0 Total Baseline 0.0 452.9 0.0 13,953.4 25,275.2
Total tCO2 tCH4 tN2O tCO2e Project CO2e P1 - Collection Transfer and Transport of Biomass 883.7 0.0 0.0 893.0 P3 - Processing of Biomass 277.1 0.0 0.0 0.0 280.0 P4 - Extraction and Processing of Fuels 16.3 0.7 0.0 32.9 P12 - Facility Operation 261.6 0.0 0.0 0.0 264.8 P15 - Combustion of Biomass and Fossil Fuels 4.0 2.7 898.9 Total Project 1,438.7 4.8 2.7 0.0 2,369.7
Total Emission Reductions -1,438.7 448.1 -2.7 13,953.4 22,905.5
CO2 CH4 N2O tCO2e Total (tCO2) (tCO2e) (tCO2e) (tCO2e) (tCO2e) Total Emission Reductions (tCO2e) -1,438.7 11,202.2 -811.4 13,953.4 22,905.5
Page 14 of 18 Verdant Energy Ltd – Dapp Power Electric Generation Facility February 2020 Overview of Detailed Calculation Methodology The quantification of the reductions, removals and reversals of relevant SS’s for each of the greenhouse gases will be completed using the methodologies outlined in Section 4.1.2 and 4.1.3 of the Protocol. The methodologies serve to complete the following equations for calculating emission reductions:
Eligible Emission Reductions = Emissions Non-Levied Baseline – Emissions Non-Levied Project
Emissions Non-Levied Baseline = (B4) Emissions Fuel Extraction and Processing + (B6) Emissions Off-Site Electricity + (B13) Emissions On-site Electricity + (B15) Emissions Disposal of Biomass + (B12) Emissions Facility Operation + (B3) Emissions Processing of Biomass
Emissions Non-Levied Project = (P4) Emissions Fuel Extraction and Processing + (P15) Emissions Combustion of Biomass + (P12) Emissions Facility Operations + (P3) Emissions Processing of Biomass
Levied Emission Reductions = Emissions Levied Baseline – Emissions Levied Project
Emissions Levied Baseline = (B1) Emissions Collection, Transfer, Transport + (B3) Emissions Processing of Biomass + (B12) Emissions Facility Operations + (B16) Emissions Off-Site Heat + (B18) Emissions On-Site Heat
Emissions Levied Project = (P1) Emissions Collection, Transfer, Transport + (P3) Emissions Biomass Processing + (P12) Emissions Facility Operations + (P15) Emissions Combustion of Biomass & Fossil Fuels
Where:
Emissions Baseline = Sum of included emissions under the baseline condition Emissions Collection, Transfer, Transport = Emissions under SS B1 Collection, Transfer and Transport of Biomass Emissions Biomass Processing = Emissions under SS B3 Processing of Biomass Emissions Fuel Extraction / Processing = Emissions under SS B4 Fuel Extraction / Processing Emissions Electricity = Emissions under SS B6 Offsite Electricity Generation Displaced in Project and SS B13 Onsite Electricity Generation – (there is no applicable heat generation that is relevant to this project) Emissions Facility Operations = Emissions under SS B12 Facility Operations Emissions Biomass Disposal = Emissions under SS B15 Disposal of Biomass Emissions Project = Sum of included emissions under the project condition Emissions Collection, Transfer, Transport = Emissions under SS P1 Collection, Transfer and Transport of Biomass Emissions Biomass Processing = Emissions under SS P3 Processing of Biomass Emissions Fuel Extraction / Processing = Emissions under SS P4 Fuel Extraction / Processing Emissions Facility Operations = Emissions under SS P12 Facility Operations Emissions Combustion of Biomass = Emissions under SS P15 Combustion of Biomass and Fossil Fuels
As per the protocol, emissions from levied fuels are quantified and reported where there is a difference in the project and baseline emissions. The following list includes the parameters that will be measured and those that will be estimated:
Page 15 of 18 Verdant Energy Ltd – Dapp Power Electric Generation Facility February 2020 Source or Procedure Description Justification Sink B1 & P1 Measured Volume of fuel used for Direct measurement of combusted biomass collection & transport fuel – highest frequency possible B1 & P1 Estimated Emission factors for fuel Reference values adjusted as combustion needed by ECCC B3 & P3 Measured Volume of fuel used for Direct measurement of combusted biomass processing fuel – highest frequency possible B3 & P3 Measured Volume of electricity consumed Direct measurement of electricity – for biomass processing or vendor invoice B3 & P3 Estimated Emission factors for fuel Reference values adjusted as combustion & electricity needed by ECCC or ACCO B4 & P4 Measured Volume of fuel for extraction Direct measurement of combusted and processing emissions fuel – highest frequency possible B4 & P4 Estimated Emission factors for fuel Reference values adjusted as extraction and processing needed by ECCC or ACCO B12 & P12 Measured Volume of fuel used for facility Direct measurement of combusted operations fuel – highest frequency possible B12 & P12 Measured Volume of electricity consumed Direct measurement of electricity – for facility operations or vendor invoice B12 & P12 Estimated Emission factors for fuel Reference values adjusted as combustion & electricity needed by ECCC or ACCO B13 N/A Emissions from electricity Not applicable since there is no on- generation displaced on-site site electricity generation displaced B6 Measured Electricity generated by the Continuous direct metering project represents industry practice and the highest level of detail B6 N/A Electricity consumed by the There is no additional electricity project consumed by the project, electricity is net generation sold to grid B6 N/A Historic levels of on-site There is no historic displacement of generation electricity in the project, electricity is net generation sold to grid B6 Estimated Emission factor for grid Reference values adjusted as electricity needed by ACCO
Page 16 of 18 Verdant Energy Ltd – Dapp Power Electric Generation Facility February 2020 P15 Measured Mass of biomass fuel Direct measurement of biomass combusted received by the facility according to industry practice P15 Estimated CH4 and N2O emission factors Reference values adjusted as for waste wood combustion needed P15 N/A Volume of supplementary fossil No supplementary fossil fuel was fuel combusted combusted in the project B15 (flex- Measured Biomass waste diverted from Measurement is more accurate than 1) landfill or stockpile estimation – scale used for each truckload diverted from landfill B15 (flex- Calculated Amount of methane emitted Using methodology and factors 1) from stockpile or landfill published by ACCO B15 (flex- Measured Biomass waste diverted from Measurement is more accurate than 2) open air combustion estimation – scale B15 (flex- Estimated CH4 and N2O emission factors Using AP-42 emission factors 2) for open air combustion (section 13.1) B20 & P20 Measured Mass of Biomass Fuel Measurement is more accurate than Combusted estimation – scale used for each truckload diverted from landfill B20 & P20 Estimated CO2 emission factors for waste Reference values are adjusted as wood combustion needed (NIR)
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Site Map and Operating Boundary
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