St. Felicien Cogeneration Plant

Project Description and Emission Reduction Report

Period Covering:

January 1, 2004 through December 31, 2004

Submitted by:

CHI Canada, Inc.

Version 2; revised February 7, 2005

Project Description and Emission Reduction Report – January – December 2004 Page 1 of 22

Table of Contents

Corresponding Corresponding EMA Description Page Workbook section* Worksheet Proponent Identification 3 Not Applicable Section 3.1 Project Description 4 Not Applicable Section 3.2 Mandatory Criteria for Registration 6 Not Applicable Section 3.3 Project Details and Other Relevant Information 6 Not Applicable Section 3.4 Emission Reduction Report 10 Section 3.5 Section 1: Biomass Destruction 10 Biomass Subsection 1: Timing 13 Timing Section 2: Steam Delivery 13 Steam Section 3: Project Emissions 16 Project Emissions Section 4: Transportation Emissions 20 Transportation Section 5: Net Emissions 21 Attachments: A: Plant Schematic B: Letter for Quebec Government C: ASTM Designation E871: Standard Method for Moisture Analysis of Particulate Wood Fuels D: Emission Reduction Workbook Undertaking 22 Section 3.6

* As outlined in the CleanAir Canada Guidance Manual for the Registration of Emission Reductions as EMA Registry Credits, effective August 23, 2004

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St. Felicien Cogeneration Plant Project Description and Emission Reduction Report

Period Covering: January 1, 2004 through December 31, 2004

Proponent Identification

1. Proponent Company Name: CHI Canada Inc. on behalf of the St. Felicien Cogeneration Limited Partnership.

2. Contact Information:

Name: Pascal J. Brun

Address: CHI Canada Inc. CIBC Tower 1155 Rene-Levesque Boul. West, Suite 1715 Montreal, Quebec, Canada H3B 3Z7

Phone Number: (514) 397-0463 x224

Fax Number: (514) 397-0284

Email Address: [email protected]

3. Facility Name: St. Félicien Cogeneration Facility

4. Facility Owner: St.Felicien Cogeneration, Limited Partnership

5. Facility Operator: O&M Cogeneration, Inc. 6. Facility Location / Legal Property Description:

1250, rue de l'Énergie, St-Félicien, Québec, Canada G8K 3J2

7. Boundary (for mobile source(s)): Not applicable

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Project Description

Ex-ante Pre-Project Conditions (Baseline description): Describe the operation, output and emissions of the affected process(es) and/or facilities immediately preceding the implementation of the emission reduction project.

The St. Felicien Project (the “Project”) generates electricity using waste biomass as the primary fuel. Steam produced during the generation process is transported to a nearby company and used in its lumber-drying operation. For simplicity, these two processes are referred to as “biomass destruction” and “steam delivery” throughout this document.

Prior to the installation of the Project, greenhouse gas emissions were emitted from each of these two processes as follows:

• Biomass destruction: Wood waste produced by local sawmills was disposed in uncontrolled private landfills where its anaerobic decomposition resulted in the creation of methane and carbon dioxide over a period of time.

• Steam delivery: Bowater, formerly Alliance Forest Products (the “steam client”) used fossil fuel to generate the steam used in the company’s lumber-drying operations. The combustion of the fossil fuels created greenhouse gas emissions.

The date or time period used to characterize the baselines must be specified.

The pulp and paper industry has a long history in Quebec, given that close of half of Quebec’s land area is forested and approximately 70% of these forested areas are considered “productive.”1 Bark and chips are one of the major waste streams resulting from the pulp and paper industry. Landfilling wood waste has been a long-standing common practice in Quebec’s lumber processing industry.

The steam client has operated a wood drying and processing operation in the town of St. Felicien for at least 15 years before the start of the Project. The steam client historically used an industrial boiler, powered by Fuel Oil #2, installed at the operation’s site to generate the steam which is an integral component of the company’s wood drying process.

Historical practice gives a strong indication that these both of these baseline practices of (1) land filling wood waste and (2) using Fuel #2 to create steam would have been the practice during the period of this Emission Reduction Report, January 1, 2004 through December 31, 2004, in the absence of the Project.

Project Strategy:

Briefly state the strategy employed towards creating an emission reduction.

The Project creates emission reduction credits (ERCs) by diverting biomass, primarily bark residue produced from debarking operations at sawmills in the region, from being buried in landfills where methane would be emitted (biomass destruction). The wood waste is instead transported from sawmills to the Project where it is burned in a boiler to create steam. The majority of the steam is then used to generate electricity (net electrical output is 21.4 MW), with a portion of the steam transported to the steam

1 Quebec Forest Industries, A Portrait of the Québec Pulp and Paper Industry 2001 Association Page 4 http://www.cifq.qc.ca/imports/pdf/en/environment_performance.pdf

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client via a series of pipes (steam delivery). The transported steam is used by the steam client to dry its lumber in lieu of steam created in a boiler burning fossil fuel.

The electricity generated at the Project is sold to Hydro Quebec into the provincial utility grid. The Project is not quantifying or claiming whatever emission reductions may result from displacing electricity produced with greenhouse gas emitting fuels at this time.

The calculations for the amount of methane destroyed are based on mass-balance equations for methane emissions attributable to landfill biomass. The calculations for the displacement of fossil fuel are based on the steam deliveries to the mill.

Describe what was done to implement the emission reduction strategy including all key dates, studies and approvals.

The St. Felicien Cogeneration Project obtained all of the necessary licenses and permits, including an approved environmental impact study and commenced construction on September 20, 1999. The Project entered service on October 3rd, 2001. Prior to making the investment decision, the Project’s investors analyzed, among other things, the source and availability of fuel (the wood waste) as well as the value of the Project’s output – electricity, steam, and the potential sale of ERCs to third parties. Prior to construction, the Project developers had executed two key contracts (electricity and steam sales) and had exchanged a draft of an ERC contract, with pricing included, an emission reduction purchaser. First, the net electrical output of the plant was sold to Hydro-Quebec under a long term power sales contract. Second, a steam purchase contract was executed in 1998 to provide steam to a nearby industrial operation (steam client) to be used in its wood dryer for a term of 10 years beginning at the end of the year 2000. The Project was designed and built to accommodate both of these off-take agreements. The Project developers also had received a draft agreement for the purchase of ERC’s from a major Canadian utility, as part of its voluntary emission reduction commitments. The final contract for emission reductions purchase and transfer was signed in 2000.

Specify all major equipment that was installed. There may be several distinct actions that, together, implement the strategy.

The facility is a conventional biomass-fuelled plant that produces electricity and steam. The facility includes biomass handling and storage equipment, feed bin, boiler, turbine generator, condenser and cooling tower, water treatment equipment and other related equipment. A schematic of the Plant can be viewed in Attachment A.

Ex-post Project Conditions: Describe the operation, output and emissions of the affected process(s) in the period immediately following the commissioning of the emission reduction project.

The facility is a conventional biomass-fuelled plant that produces electricity and steam. With the commissioning of the St. Felicien Cogeneration Project in October 2001, the following change in the processes occurred:

• Biomass Destruction - The wood waste used by the plant, which would have been previously land filled, is destroyed in the Project’s electricity and steam generation process. The combustion of biomass at the Project leads to a reduction in methane that would have resulted had the biomass been left to decompose in local landfills.

• Steam Delivery – The local client purchases Project’s steam and uses it to meet an estimated 95% of its steam needs. As such, the steam client has ceased the use of its boiler for this quantity of steam. The Project was designed for this additional off-take of steam and a steam delivery system was installed. As a result, the emissions, based on No. 2 Fuel Oil, are avoided.

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Mandatory Criteria for Registration

The emission reductions are a direct result of the process changes resulting from the Project destruction of biomass Real to create steam. The steam is then used to generate electricity or delivered to a steam client to use in an industrial process. Biomass fuel input quantities and moisture content is continuously monitored, steam and electrical production is continuously metered, based on industry accepted standards. This measured data is used to compute CO2e emission reductions using standard formulae. Quantifiable

Quantification includes use of the IPCC theoretical gas yield (default) method which assumes all potential methane would be released to the environment over the life of the biomass in the landfill. There are currently no regulatory requirements, permits or agreements mandating other methods of biomass disposal (i.e. landfill gas capture and flaring) or dictating the primary fuel to be used in electricity or steam Surplus generation (i.e. renewable portfolio standards). As such, the emission reductions are currently surplus. A letter from the government of Quebec regarding current regulations is attached as Attachment B. The emission reductions claimed herein by the St. Felicien Cogeneration Project have not been reported anywhere except in this document nor claimed by any of Unique the entities mentioned in the Proponent Identification section, or to the best of our knowledge, by any other entities. All data used in calculations is based on metered inputs, Verifiable outputs, actual project installations and generally accepted industry practices and default values.

Project Details and Other Relevant Information

Project Details Describe the instruments, measurements and data sources used in the quantification of baselines, activity levels and emission reductions.

Biomass Destruction

Description of Process:

Estimating emission reductions from the diversion of biomass from landfills and destruction of the biomass requires monitoring two major inputs: (1) amount of biomass burned and (2) the moisture content of the biomass burned.

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(1) Amount of biomass burned – Biomass is measured at two distinct points in the process: (a) at the point of entry to the Project and (b) at the point of entry to the generation facility (for delivery to the boiler). The primary measurement data used for the calculation of emission reductions is obtained from the process described in (b) below. However, it is important to note that the measurement process outlined in (a) is a fundamental part of the Project’s operations and claimed emission reductions, both because it includes testing for the biomass’ moisture content and because the measurements may be used to derive quantity of biomass diverted should there be some failure in both of the scales associated with the weighing the biomass at point of entry to the generation facility. It is therefore a third-level contingency for the data.

a. At point of entry to Project – The biomass that would have otherwise been deposited in a landfill is delivered to the Project by trucks from different sawmills in the area per contractual supply agreements. The Project has an automated system installed whereby the truck driver must electronically register key facts about each load of bark. To do so, the truck driver scans his or her barcode-equipped identification card at the computer located at the Weigh Station. The driver then answers a series of questions posed by software, including the company and sawmill location sending the load. It is at this point that the computer will indicate whether a sample is required to test the moisture content (see #2 below). The gross tonnage of the truck, with the bark included, is then weighed. The driver next deposits the load into the bark receiving bin. The automated identification process at the Weigh Station is repeated upon departure from the Project, at which time the empty truck weight is recorded. The difference is registered as the amount of incoming biomass deposited. This data is processed by the Project’s administrative staff and used by the transportation company for invoicing the Project for biomass purchased. This scale is calibrated to established standards in accordance with Weights and Measurements Canada.

b. At point of entry to the generation facility – The biomass which is delivered by each truck is “hogged” to reduce the dimensions of the biomass particle size and to remove non- and/or unusable biomass pieces. The non-biomass pieces are disposed of. The large, unusable biomass pieces, referred to as overage, are sold to a local mill for use. The remaining, useable biomass is introduced to the Project’s generation facility. It enters by way of one of two conveyer belt systems which conveys it to the boiler. A separate and distinct scale is located on each conveyer. This scale weighs the hogged material as it is transported to the boiler. It is this weight that is used to determine the amount of biomass that has been diverted from the landfills and which is burned to generate steam for electricity and delivery to the steam client. It should be noted that the conveyer belts can be used in unison or independently. Therefore, if there is a scale failure on one of the belts, the other can be used exclusively to ensure accurate data outputs.

(2) Moisture Content: The moisture content of the biomass used at the Project is important to determining the burning efficiency of the biomass material and the associated emissions. A sampling methodology following international standards (American Society for Testing and Materials (ASTM), Designation E871: Standard Method for Moisture Analysis of Particulate Wood Fuels; Attachment C) is used for calculating the moisture content of the incoming biomass. The automated identification and measurement system described in #1 above is programmed to implement the sampling methodology. Specifically, the computer alerts the driver as to when a bark sample is to be submitted for analysis. The frequency of sampling occurs generally once every 5 trips, but varies randomly from 1 to every 3, to 1 to every 7 trips.

If the driver is alerted that he/she is to submit a bark sample, a plastic bag is provided as well as an ID card to distinguish the sample. The driver then fills the bag with a sample

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from the current truck load. The sample is returned to the Weigh Station together with the ID card.

On a daily basis the night Fuel Operator tests each sample of bark, in accordance with ASTM E871 standards to determine moisture content. Specifically, for each test, a representative bark sample is taken from the larger sample, placed in a weighed aluminium dish and is weighed on a calibrated scale to the nearest 0.01g. By subtracting the full dish weight from the empty dish weight, the weight of the bark is calculated.

This bark sample is then placed in a drying oven for 16 hours at 103 oC (+/- 1 oC). After this time it is removed from the oven, and the dried bark is weighed. The difference between the wet sample weight and the dry sample weight (less the container) is recorded as the sample’s moisture content.

Steam Delivery

Description of Process:

The steam is delivered to the steam client, pursuant to a steam supply contract. The steam is delivered and measured at an interconnection point located at the steam client’s wood dryer. This location gives the most accurate reading of steam delivered and actually used to offset boiler use. The Project is contractually obligated to maintain a metering system to verify the pressure, temperature, flow and quality of the steam. Said metering system must be electronic in nature of a high quality. The measurements are monitored and recorded electronically at the Project’s control center. This data is used to invoice the steam client. The price is based on the lower of a fixed price or a price indexed to the price of No.2 Fuel Oil, the fuel which would have been used in the steam client’s boiler. For emission reduction purposes, the data is used to determine how much steam the client would have had to produce in its boiler using No. 2 Fuel Oil if the Project had not supplied steam. In turn, the associated emission reductions can be calculated by establishing the amount of fossil-fuel displaced by producing the steam at the Project using biomass.

Other Project Activity

Description of Process:

Processes and equipment are also in place to monitor and record actual electricity generation.

Describe accuracy, calibration method and frequency and quality control procedures used.

Biomass Destruction

The Project ensures the quality of the process and data compiled to support emission reduction claims from biomass destruction as follows:

Equipment Accuracy and Redundancy a. Weight of biomass at point of entry to Project - The scale used for weighing the transport trucks is calibrated every three months Techtronics Inc. who is audited by Weight and Measures Canada as per the Quebec Standards Guidelines. For emission reduction calculation purposes, these measurements are considered a third-level contingency option, after the two meters located on the conveyer belts and described in (b) below.

b. Weight of biomass at point of entry to the generation facility - The scales used on each of the two conveyer belts are reset daily and calibrated three times per year in

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accordance with the manufacturer’s procedures. Since there are two independent scales, this primary point of data has a built in redundancy.

c. Moisture Content - The scale used to measure the moisture content samples is reset prior to every use and does a self calibration. The scale measures to the nearest 0.01g. The oven used to dry the samples contains a digital read-out of temperature to ensure that the heat is kept constant. Periodically a thermometer is installed in the oven to verify temperature. If the oven is out of service, moisture content data can be estimated using historical and reference information or by using a local certified laboratory to perform moisture analysis. To verify the accuracy of the testing procedure, a sample is taken every six months and sent to a local laboratory for testing. Laboratory test results are then compared to the Project’s results and appropriate corrective action is taken, if required, to correct any deficiencies.

Readings from all the measurement equipment, including electricity meters, are automatically and electronically transferred to the Project’s computers, thereby reducing the possibility of human error.

Steam Delivery

The metering system which tracks the pressure, temperature and flow rate of the steam delivered to the steam client is maintained by the Project. Verification tests are performed annually either by the Project or by an independent firm, as mutually agreed between the steam client and the Project. All data is entered automatically into the Project’s central control system, thus reducing the possibility of human error in the data.

Other Project Information

This section describes any other environmental impacts (air, water, wastewater, solid waste, noise, etc.) of relevance, positive or negative, that will result or otherwise be attributed to the project.

The Project has the following environmental impacts & procedures: • Wastewater discharge – process water is directed to retention basins, decanted, and then discharged to the municipal wastewater system. Cooling tower blowdown is directed to a sedimentation basin, held, and then discharged. Plant sanitary water is sent to the municipal sewer system.

• Surface Water Runoff – clean surface water runoff is channelled through drainage ditches to a sedimentation basin.

• Biomass Waste Stockpile Leachate – the biomass stockpile area is confined and covered with an asphalt surface over a gravel foundation. The total surface area cannot exceed 6,500 sq. meters. Any leachate from the wood waste stockpile is directed to a sedimentation basin.

• Noise – the noise level during the operation, as measured at the nearest residence, is limited to 40 dB(A) at night and 45 dB(A) during the daytime. All steam vents are equipped with silencers.

• Chemicals and Hazardous Materials - chemical product containers and tanks are located in concrete containment areas capable of holding 110% of the volume of the largest container. The containment area is covered with an impermeable membrane.

• Ash Disposal – the ash is disposed of at an approved landfill. The ash tested at least 4 times per year to determine if it is corrosive, leachable or toxic. The fly ash is sold as a fertilizer for use by local farmers. The bottom ash is landfilled.

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Emission Reduction Report Period: January 2004 – December 2004, Inclusive

The step-by–step method to be used for the computation of reductions is to be presented. Show all input sources (measurements, published data), formulae and units. Provide a rationale for the calculation procedure. List all documents examined in the course of writing the Project Description.

The Project’s total greenhouse-gas emissions reductions are calculated as

(1) The sum of emission reductions resulting from Biomass Destruction

Plus

(2) The sum of emission reductions resulting from displacing fossil-fuel in steam production and delivery to client

Less

(3) Direct emissions generated by the Project

Less

(4) Emission generated from transport associated with the Project activity

Each component is described in greater detail below, including data inputs and formulas. A detailed Emission Reduction Workbook, accompanies (Attachment D) and is an integral part of the Emission Reduction Report. The narrative descriptions below should be read in conjunction with the Workbook and its results.

Section 1: Biomass Destruction – The emission reductions achieved in the destruction of biomass result from calculating the carbon dioxide equivalent of methane emissions that would have been emitted if the baseline scenario of landfilling the biomass had occurred. Consistent with the Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories, the Project does not recognize CO2 emission reductions under the assumption that the wood is harvested in a sustainable manner. To calculate the methane avoided, Equation 1 of Chapter 6 of the Revised 1996 Guidelines for National Greenhouse Gas Inventories is used. Specifically, the formula is:

EQUATION 1 Methane emissions (Gg/yr) = (MSWT x MSWF x MCF x DOC x DOCF x F x 16/12 - R) x (1-OX)

where: MSWT = total MSW generated (Gg/yr) MSWF = fraction of MSW disposed to solid waste disposal sites MCF = methane correction factor (fraction) DOC = degradable organic carbon (fraction) DOCF = fraction DOC dissimilated F = fraction of CH4 in landfill gas (default is 0.5) R = recovered CH4 (Gg/yr) OX = oxidation factor (fraction - default is 0)

Given that the biomass is being diverted from landfills containing only woodwaste and measured in metric tonnes, the equation may be simplified to:

Methane emissions (t/yr) = (MSWT x MCF x DOC x DOCF x F x 16/12 - R) x (1-OX)

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where: MSWT = biomass (t/year) MCF = methane correction factor (fraction) DOC = degradable organic carbon (fraction) DOCF = fraction DOC dissimilated F = fraction of CH4 in landfill gas (default is 0.5) R = recovered CH4 (t/yr) OX = oxidation factor (fraction - default is 0)

As such the following inputs are required:

Data Inputs for Dry Biomass: 1.1 Biomass Consumed (MSWT): Data Point 1.1: Amount (in wet tons) of biomass consumed by Project on monthly basis Source: Actual data collected & recorded by Project from conveyer belt scales Workbook Location: Biomass

It should be noted that the Project actually diverts more biomass than it consumes. The “overage” or oversized biomass pieces separated during the hogging process are sold to a local sawmill for processing. The Project has not accounted for the emission reductions resulting from the diversion of this material from landfill.

1.2 Methane Correction Factor (MCF)

Data Point 1.2: Methane Correction Factor for unmanaged deep (over 5 m) landfill waste sites = 0.80

Source: Project Staff; Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories: Reference Manual; Volume 3; Chapter 6: Waste; Table 6 – 2

Workbook Location: Biomass

1.3 Degradable organic carbon (DOC)

Data Point 1.3: Default DOC value for wood and straw waste is 0.30

Source: Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories: Reference Manual; Volume 3; Chapter 6: Waste; Table 6 – 3

Workbook Location: Biomass

1.4 Fraction of CH4 in landfill gas - DOCF

Data Point 1.4: Portion of DOC that is converted to landfill gas, IPCC default = 0.77

Source: Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories: Reference Manual; Volume 3; Chapter 6: Waste; Page 6.9

Workbook Location: Biomass

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1.5 Fraction of CH4 in landfill gas - F

Data Point 1.5: Default fraction of CH4 in landfill gas = 0.50

Source: Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories: Reference Manual; Volume 3; Chapter 6: Waste; Equation 1

Workbook Location: Biomass

1.6 Conversion of carbon to methane by molecular weight

Data Point 1.6: Conversion of carbon to methane is 16/12 or 1.3333

Source: Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories: Reference Manual; Volume 3; Chapter 6: Waste; Equation 1

Workbook Location: Biomass

1.7 CH4 recovered from landfills supplying Project

Data Point 1.7: No methane is recovered at landfill sites from which biomass is used by the Project, thus value = 0

Source: Project Staff information; Quebec regulations (Attachment B)

Workbook Location: Biomass

1.8 Oxidation factor

Data Point 1.8: IPCC default = 0

Source: Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories: Reference Manual; Volume 3; Chapter 6: Waste; Page 6.9-6.10

Workbook Location: Biomass

1.9 Methane Global Warming Potential (CO2 equivalent)

Data Input 1.9: 1 ton of CH4 = 23 t of CO2 equivalent

Source: Intergovernmental Panel on Climate Change (IPCC) Climate Change 2001, The Scientific Basis, Section C6

Workbook Location: Biomass

Formulas:

1.A Application of IPCC Default Equation 1

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Formula 1.A: CH4 emissions (t/yr) = (MSWT x MCF x DOC x DOCF x F x 16/12 - R) x (1-OX)

Calculation: CH4 emissions (t/yr) = (Data Input 1.1 * Data Input 1.2 * Data Input 1.3 * Data Input 1.4 * Data Input 1.5 * Data Input 1.6 – Data Input 1.7) * (1-Data Input 1.8)

Workbook Location: Biomass

1.B. Calculate CO2e of Methane being avoided

Formula 1.B: Apply global warming potential (GWP) of methane

Calculation: Result of formula 1.A * Data Input 1.9 = CO2 equivalent of CH4

Workbook Location: Biomass

Subsection 1: Timing Issue

There has been an on-going debate at Clean Air Canada regarding the timing of creation of emission reductions (ERs) due to methane avoidance. An Ad-Hoc committee of CACI recommended in 2000 that timing, though unspecified, be considered when creating ERs due to methane destruction. The Project Company does not agree with the application of timing, believing that once the biomass has been incinerated the ability to release methane to the atmosphere no longer exists, permanently eliminating any source of methane. However, based on the recommendation of the committee, previous recognition by CACI and as agreed with the purchaser of the Emission Reductions, the emission reductions created in 2004 may be recognized evenly over a three year period. Specifically one-third will be recognized in 2004, one-third in 2005 and the final third in 2006.

Section 2: Displacement of Fossil Fuel in Steam Production - The Project produces steam and delivers it to a steam client that would otherwise use oil-fired boilers to produce steam for use in its industrial lumber drying operation. The following outlines how the emission reductions are calculated.

Steam Data Inputs:

2.1 Steam Produced and Sold to Steam Client

Data Input 2.1: Quantity of Steam Produced and Delivered to Client (t)

Source: Actual Data Collected and Monitored by Project at the point of delivery to steam client

Workbook Location: Steam

2.2 Characteristics of fuel oil #2, also known as distillate fuel oil (or heating oil), the type of fuel the steam client would have used to internally produce steam if the Project had not delivered steam from its cogeneration operations

Data Input 2.2: MMBtu/Barrel of Fuel Oil #2 = 5.825 MMBtu/barrel

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Source: Energy Information Administration, Annual Energy Review 2003, Appendix A: Thermal Conversion Factors (http://tonto.eia.doe.gov/ask/expertanswers.html)

Workbook Location: Steam

2.3 Convert barrels to gallon units

Data Input 2.3: 42 gallons (gal) = 1 barrel (bbl)

Source: Standard Conversion

Workbook Location: Steam

2.4 Pounds per ton

Data Input 2.4: 1 ton = 2,204.62 lbs

Source: Standard Conversion

Workbook Location: Steam

2.5 Energy Delivered to the steam client

Data Input 2.5: 1150 Btu/lb

Source: Steam Supply Contract

Workbook Location: Steam

2.6 Energy returned by the steam client to the Project

Data Input 2.6: 180 Btu/lb

Source: ASME Steam Tables

Workbook Location: Steam

2.7 Btu per 1 mmBtu

Data Input 2.7: 1,000,000 Btu = 1 mmBtu

Source: Standard Conversion

Workbook Location: Steam

2.8 Boiler Efficiency

Data Input 2.8: The efficiency of the boiler that the steam client would have used to generate steam is an estimated 79 %

Source: Estimate based on industry standards – considered to be conservative given that an aged boiler is more likely be to be of lower efficiency, thus consuming more fuel, resulting in higher emissions reduced

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Workbook Location Worksheet: Steam

2.9 CO2 emission coefficient for fuel oil no.2

Data Input 2.9: 1 gallon of No.2 distillate fuel oil emits 22.384 lbs/CO2

Source: Form EIA-1605 Long Form for Voluntary Reporting of Greenhouse Gases, Instructions, April 2004; “Appendix B: Fuel and Energy Codes and Emission Coefficients”, page 47 (http://www.eia.doe.gov/oiaf/1605/Forms.html)

Workbook Location: Worksheet: Steam

Steam Formulas

2.A. Net energy used by steam client

Formula 2.A: Determine the net energy used by steam client

Calculation: Data Input 2.5 less Data Input 2.6

Workbook Location: Steam

2.B Total Energy consumed by the Steam Host Process

Formula 2.B: Calculate the total energy from steam consumed by steam client

Calculation: Data Input 2.1 * Result of Formula 2.A * Data Input 2.4 / Data Input 2.7

Workbook Location: Steam

2.C. Adjustment of energy given boiler efficiency Formula 2.C: Since the boiler has an efficiency of 79%, it will take more oil to replace the steam. As such, an adjustment must be made to take into consideration the inefficiencies of the boiler that would have been used. Calculation: Result of formula 2.B ÷ Data Input 2.8 Workbook Location: Steam

2.D. Fuel Oil Btu per gallon

Formula 2.D: Determine the energy content of No. 2 fuel oil on gallon basis

Calculation: Data Input 2.2 / Data Input 2.3 = mmBtu / gallon No.2 Fuel oil

Workbook Location: Steam

2.E. Total amount of fuel oil displaced Formula 2.E: Quantity of no.2 fuel oil displaced

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Calculation: Result of formula 2.C ÷ Result of formula 2.D = Total gallons oil displaced Workbook Location: Steam

2.F Total amount (in pounds) of CO2 reduced by Project’s steam delivery process

Formula 2.F: Quantity of CO2 reduced (pounds)

Calculation: Result of formula 2.E * Data Input 2.9 = lbs CO2 reduced

Workbook Location: Steam

2.G. Convert CO2 from pounds to t

Formula 2.G: Conversion of CO2 to t

Calculation: Formula 2.F / Data Input 2.4 = t of CO2

Workbook Location: Steam

Section 3: Project Emissions

Direct Emissions Generated by the Project - Greenhouse gas emissions directly generated by the Project need to be considered and deducted from the emission reductions claimed. The following is an outline of emissions that will need to be netted out from the emission reductions claimed.

3.1 Facility boiler emissions

Data Inputs 3.1.1 CO2 Emissions from combustion in Project boiler

Data Input 3.1.1: CO2 emission from Project’s boiler = 0

Source: Current IPCC policy states that carbon dioxide emissions from biomass powered sources are part of the natural carbon cycle, unlike fossil fuels, and therefore carbon dioxide emissions from these projects are assumed to be zero.

Workbook Location: Project Emissions

3.1.2 Methane emissions from boiler combustion – It should be noted that the Project proponents believe that it is highly unlikely that any methane emissions occur in the combustion of the woodwaste, given the high temperatures and pressures of the actual boiler at the Project. Nonetheless, in the interest of conservatism, methane emissions, expressed as CO2e, are calculated.

Data Input 3.1.2: 0.05 grams CH4/kg of wood waste used in industrial combustion

Source: Canada’s Greenhouse Gas Inventory, 1990 – 2002, Annex 7:Emission Factors, Table A7-16: Biomass Emission Factors (www.ec.gc.ca/pdb/ghg/1990_02_report/ann7_e.cfm )

Workbook Location: Project Emissions

3.1.3 Conversion of grams (g) to kilograms (kg)

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Data Input 3.1.3: 1,000 grams = 1 ton

Source: Standard Conversion

Workbook Location: Project Emissions

3.1.4 Conversion of kg to t

Data Input 3.1.4: 1,000 grams = 1 t

Source: Standard Conversion

Workbook Location: Project Emissions

3.1.5 Conversion of g to t

Data Input 3.1.4: 1,000,000 grams = 1 ton

Source: Standard Conversion

Workbook Location: Project Emissions

Note: The calculations to determine the CH4 of wood waste combustion also include data points from Section 1 – See Workbook for inputs and calculations

Formulas

3.1.A Conversion of biomass volumes from t to kg

Formula 3.1.A: Express wood waste consumed in kg

Calculation: Standard Conversion

Workbook Location: Project Emissions

3.1.B Determine CH4 emissions of biomass consumed

Formula 3.1.B: CH4 emissions in grams

Calculation: Result of Formula 3.1.A * Data input 3.1.2 = grams CH4 emissions from biomass combustion at Project

Workbook Location: Project Emissions

3.1.C Conversion of CH4 emissions from g to t

Formula 3.1.C: CH4 emissions in t

Calculation: Result of Formula 3.1.B / Data Input 3.1.5 = t CH4 emissions from biomass combustion at Project

Workbook Location: Project Emissions

3.1.D Conversion of CH4 emissions to CO2e

Project Description and Emission Reduction Report – January – December 2004 Page 17 of 22

Formula 3.1.D: Conversion of CH4 to CO2e

Calculation: Result of Formula 3.1.B * Data Input 1.9 = t C02e emissions from biomass combustion at Project

Workbook Location: Project Emissions

3.2 Ignition Oil Emissions - The Project consumes diesel in its boiler during certain operational times and conditions. First, diesel is often used to start or “warm up” the boiler as it is more effective in doing so than biomass. Secondly, diesel is used for flame stabilization when the moisture content of the biomass exceeds 57%. The burning of this fossil fuel emits greenhouse gas which must be netted out of the Project’s emission reduction calculations. The emissions are calculated as follows:

Data Inputs 3.2.1 Volume of diesel consumed as ignition fuel

Data Input 3.2.1: Volume of diesel consumed (in liters)

Source: Actual Data Collected and Monitored by the Project. The primary way of measure diesel is by recording changes in the oil in the tank height. Alternatively, invoices from the diesel supplier can be used as a backup or confirmation data source.

Workbook Location: Project Emissions

3.2.2 Conversion of liters to gallons

Data Input 3.2.2: 3.785 liters (L) per 1 gallon (gal)

Source: Standard Conversion

Workbook Location: Project Emissions

Note: For ignition oil, the data inputs outlined in the Steam Delivery section (Section 2) are employed to derive emissions, based on ignition oil consumption at the facility over the creation period. The detail of these inputs are not repeated in this section, but are reflected in the formulas (below) and restated in the Project Emissions worksheet of the Workbook.

Formulas

3.2.A Volume of diesel consumed by the Project (in gallons)

Formula 3.2.A: Convert diesel consumed at Project to gallons

Calculation: Data Input 3.2.1 / Data Input 3.2.2 = Gallons of diesel consumed

Workbook Location: Project Emissions

3.2.B CO2 emitted by Project’s diesel consumption (pounds)

Formula 3.2.B: Determine CO2 emissions of diesel consumed at Project

Calculation: Result of Formula 3.2.A * Data Input 2.9 = CO2 emissions related to ignition oil in lbs

Project Description and Emission Reduction Report – January – December 2004 Page 18 of 22

Workbook Location: Project Emissions

3.2.C Convert pounds to tons

Formula 3.2.C: Conversion of CO2 from lbs to tons

Calculation: Formula 3.2.B / Data Input 2.4 = tons of CO2

Workbook Location: Project Emissions

3.3 Heating Fuel Emissions – The project consumes propane for heat. The propane consumption results in the following emissions:

Data Inputs 3.3.1 Volume of propane consumed at Project for heating

Data Input 3.3.1: Volume of propane consumed (liters)

Source: Actual Data Collected and Monitored by the Project. The volume is determined from invoices from the propane supplier.

Workbook Location: Project Emissions

3.3.2 CO2 emission coefficient of propane

Data Input 3.3.2: Propane emission coefficient: 12.669 lbs CO2 per US gallon of propane.

Source: Form EIA-1605 Long Form for Voluntary Reporting of Greenhouse Gases, Instructions, April 2004; “Appendix B: Fuel and Energy Codes and Emission Coefficients”, page 47(http://www.eia.doe.gov/oiaf/1605/Forms.html)

Workbook Location: Project Emissions

Formulas 3.2.A Volume of propane consumed by the Project (in gallons)

Formula 3.3.A: Convert propane consumed at Project to gallons

Calculation: Data Input 3.3.1 / Data Input 3.2.2 = Gallons of propane consumed

Workbook Location: Project Emissions

3.3.B CO2 emitted by Project’s propane consumption (pounds)

Formula 3.3.B: Determine CO2 emissions of propane consumed at Project

Calculation: Result of Formula 3.3.A * Data Input 3.3.2 = CO2 emissions related to propane heating in lbs

Workbook Location: Project Emissions

3.3.C Convert pounds to tons

Project Description and Emission Reduction Report – January – December 2004 Page 19 of 22

Formula 3.3.C: Conversion of CO2 from lbs to tons

Calculation: Formula 3.3.B / Data Input 2.4 = tons of CO2 emissions related to propane heating

Workbook Location: Project Emissions

Section 4: Transportation Emissions - Transportation emissions of the wood waste to the Project, in excess of those that would have otherwise resulted from transport of the wood waste to the landfills, are also considered in calculating the Project’s total emissions. Data Inputs 4.1 Kilometres traveled to deliver wood waste to Project

Data Input 4.1: Kilometres trucked to deliver biomass to Project Source: Source 1: The kilometre distance between the point of departure of the wood waste and St. Felicien Project is determined by using Transports Quebec “distances between cities” located on the website http://www.mtq.gouv.qc.ca/en/information/distances/index.asp . These distances are measured from town center to town center, which may sometimes over or underestimate actual kilometres traveled in the delivery of wood waste to the Project. Nonetheless, the estimate is deemed to be sufficient given that the Project is quantifying all round trips associated with wood waste delivery. In actuality, a significant amount of trips made would have been made by the wood waste supplier any way in the normal course of business for other purposes. For example, numerous suppliers previously sent empty trucks to the St. Felicien area to pick up loads of raw material for processing. In lieu of sending empty trucks, the suppliers now send truckloads of wood waste to the Project which is deposited prior to picking up unprocessed wood. Additionally, there was some transport associated with depositing the wood waste in landfills. Neither of these “business as usual” transport practices have been netted out from the transport emissions presented by the Project, making the emission estimates highly conservative.

Source 2: The location of each supplier location and the number of trips made monthly is provided from Project records.

Workbook Location: Project Emissions

4.2 Fuel Consumption Ratio of Heavy Duty Diesel Vehicles

Data Point 4.2: Fuel Consumption Ratio of Heavy Duty Diesel Vehicles = 43 liters/100 km

Source: Canada’s Greenhouse Gas Inventory, 1997 Emissions and Removals with Trends, Appendix B: Detailed Methodologies, B2 Transportation Methodology, Details of Vehicle Emissions in Canada for 1997, Environment Canada, April, 1999

Workbook Location: Project Emissions

Project Description and Emission Reduction Report – January – December 2004 Page 20 of 22

4.3 Fuel Consumption Ratio of Heavy Duty Diesel Vehicles

Data Point 4.3: CO2e Emission Factor for Heavy Duty Diesel Vehicles = 2,757 g/l

Source: Canada’s Greenhouse Gas Inventory, 1990 – 2002, Annex 7:Emission Factors, Table A7-5: Emission Factors for Energy Mobile Combustion Sources (www.ec.gc.ca/pdb/ghg/1990_02_report/ann7_e.cfm ); applying GWP of 23 to CH4 and 296 to N2O

Workbook Location: Project Emissions

Formulas 4.A l of fuel consumed per km of travel

Formula 4.A: Convert to l/km

Calculation: Data Input 4.2 / 100 km = 0.43 l/km

Workbook Location: Project Emissions 4.B Total l consumed based on total km travelled

Formula 4.B: Calculate total liters of diesel consumed

Calculation: Data Input 4.1 * Result of Formula 4.A = Total liters diesel consumed in transport

Workbook Location: Project Emissions

4.C Determine total amount of CO2e emissions related to transportation (grams)

Formula 4.C: Calculate total CO2e from transport

Calculation: Data Input 4.3 * Result of Formula 4.B = Total CO2e emissions in grams

Workbook Location: Project Emissions

4.D Determine total amount of CO2e emissions related to transportation (t)

Formula 4.D: Calculate total CO2e from transport

Calculation: Data Input 3.1.5 * Result of Formula 4.C = Total CO2e emissions in grams

Workbook Location: Project Emissions

Section 5 – Net Emissions

To determine net annual emission reductions claimed, the emission reductions from section 1 – Biomass Destruction and section 2 – Steam Delivery are totalled. The total emissions from the section 3 – Project Emissions and section 4 – Transportation are subtracted from the gross emission reductions for the annual emission reductions. Timing considerations are then applied to this result, consistent with the

Project Description and Emission Reduction Report – January – December 2004 Page 21 of 22

A B C D E F G H I J 1 Summary Table of ERC Created and Emissions Released 2 Creation Period: Jan to Dec 2004 3 4 Steam Project Emissions Total Transport Biomass ERCs Delivery Heating Project Emissions 5 ERCs Boiler Ignition Oil Fuel Emissions 6 CH4 CO2e CO2 CO2 CO2 CO2 CO2 CO2 7 Month (t) (t) (t) (t) (t) (t) (t) (t) 8 January 4,590 105,577 1,187 42.85 1,014.25 13.19 187.30 1,257.58 9 February 4,092 94,121 1,001 38.20 719.43 10.25 219.88 987.75 10 March 4,307 99,068 1,151 40.21 1,074.35 10.07 426.68 1,551.31 11 April 4,158 95,631 965 38.81 17.78 0.00 347.79 404.38 12 May 3,323 76,419 692 31.01 13.89 0.20 402.60 447.70 13 June 3,310 76,122 769 30.89 18.46 0.04 291.40 340.80 14 July 3,843 88,397 837 35.88 16.26 0.12 130.45 182.70 15 August 3,407 78,366 783 31.80 15.42 0.04 103.60 150.87 16 September 3,006 69,143 715 28.06 13.84 0.12 308.32 350.33 17 October 2,774 63,796 712 25.89 20.12 7.36 557.13 610.50 18 November 3,621 83,291 868 33.80 8.51 0.04 394.22 436.57 19 December 3,942 90,675 1,061 36.80 24.14 9.21 128.72 198.87 20 Total 44,374 1,020,606 10,741 414 2,956 51 3,498 6,919 21 22 23 Total Gross ERCs and Emissions 24 Emission Reductions Emissions 25 Month Avoided Methane CO2e CO2e 26 (t) (t) (t) 27 January 4,590 106,764 1,257.58 28 February 4,092 95,122 987.75 29 March 4,307 100,220 1,551.31 30 April 4,158 96,596 404.38 31 May 3,323 77,112 447.70 32 June 3,310 76,891 340.80 33 July 3,843 89,234 182.70 34 August 3,407 79,149 150.87 35 September 3,006 69,858 350.33 36 October 2,774 64,508 610.50 37 November 3,621 84,159 436.57 38 December 3,942 91,736 198.87 39 Total 44,374 1,031,347 6,919 40 41 ERCs Created Net of Project Emissions and Net CO2e (t) by Prior to Timing Process* 42 Considerations 43 Month CO2e Biomass Steam Delivery 44 (t) Destruction 45 January 105,507 104,320 1,187 46 February 94,134 93,133 1,001 47 March 98,668 97,517 1,151 48 April 96,191 95,227 965 49 May 76,664 75,972 692 50 June 76,550 75,781 769 51 July 89,051 88,214 837 52 August 78,998 78,215 783 53 September 69,507 68,792 715 54 October 63,897 63,185 712 55 November 83,722 82,854 868 56 December 91,537 90,476 1,061 57 Total 1,024,428 1,013,687 10,741 1,024,428

58 * All project emissions netted from biomass destruction 59 60 Labels: 61 Info that is manually inserted into the model 62 ERC Reductions Calculations 63 Emissions 64 text Calculations based on manupulation of existing numbers 65 text Referenced constants used in ERC calcualtions

Attachment D - Emission Reduction Workbook Jan-Dec 2004 v.4,Sum m a r y Page 1 of 6 18/04/2005 A B C D E F 1 Section 1: Emission Reductions: Biomass Destruction 2 2204.62 lbs/metric tonne 3 Data Point 1.1 Biomass Consumed - Wet Weight 4 Month Year Biomass (metric tonnes) Methane ERC (tonnes) CO2e ERC (tonnes) 5 January 2004 37,259 4,590 105,577 6 February 2004 33,216 4,092 94,121 7 March 2004 34,962 4,307 99,068 8 April 2004 33,749 4,158 95,631 9 May 2004 26,969 3,323 76,419 10 June 2004 26,864 3,310 76,122 11 July 2004 31,196 3,843 88,397 12 August 2004 27,656 3,407 78,366 13 September 2004 24,401 3,006 69,143 14 October 2004 22,514 2,774 63,796 15 November 2004 29,394 3,621 83,291 16 December 2004 32,000 3,942 90,675 17 Total 2004 360,180 44,374 1,020,606 18 Data Point 1.1 Source: Project records, specifically scale readings from conveyer belt scales at point of entry to generation facility 19 20 Name Description Value Unit Source 21 22 Data Input 1.2 Methane Correction Factor - MCF (Unmanaged - 0.80 Project Staff; Revised 1996 IPCC Guidelines for deep (>5m waste)) National Greenhouse Gas Inventories: Reference 23 Manual; Volume 3; Chapter 6: Waste; Table 6 - 2 24 Revised 1996 IPCC Guidelines for National Data Input 1.3 degradable organic carbon - DOC 0.3 Greenhouse Gas Inventories: Reference Manual; 25 Volume 3; Chapter 6: Waste; Equation 2 26 Default - Revised 1996 IPCC Guidelines for National Data Input 1.4 fraction DOC dissimilated - DOCF 0 .7700 Greenhouse Gas Inventories: Reference Manual; 27 Volume 3; Chapter 6: Waste; Page 6.9 28 Default - Revised 1996 IPCC Guidelines for National

Data Input 1.5 fraction of CH4 in landfill gas - F 0 .50 Greenhouse Gas Inventories: Reference Manual; 29 Volume 3; Chapter 6: Waste; Equation 1 30 Default - Revised 1996 IPCC Guidelines for National Conversion of carbon to methane by molecular Data Input 1.6 1 .3333 Greenhouse Gas Inventories: Reference Manual; weight Volume 3; Chapter 6: Waste; Equation 1 31 32

recovered CH (no methane recovered from Project Staff; Quebec letter regarding LFG regulations Data Input 1.7 4 0 landfills supplying Project) - R (Attachment B) 33 34 Default - Revised 1996 IPCC Guidelines for National Data Input 1.8 oxidation factor - OX 0 Greenhouse Gas Inventories: Reference Manual; 35 Volume 3; Chapter 6: Waste; Equation 1 36 37 Data Input 1.9 Global Warming Potential of Methane 23.00 IPCC, Climate Change 2001; Scientific Basis, C6 38

39 Formula 1.A (Wood Waste*MCF*DOC*DOCF*F*16/12-R)*(1-OX) = 44374.18 tonnes/CH4 reduced 40 41 Forumla 1.B CO2e of methane 1,020,606 CO2e of methane

Attachment D - Emission Reduction Workbook Jan-Dec 2004 v.4,Biomass Page 2 of 6 18/04/2005 A B C D E F 1 Section 2. Steam Production 2 3 Data Input 2.1 Quantity of Steam Produced and Sold to Steam Client 4 Month Year Steam Produced CO2 ERCs Gal. of No. 2 Fuel displaced 5 Tonnes tonnes 6 January 2004 5,992 116,945 1,187 7 February 2004 5,051 98,577 1,001 8 March 2004 5,810 113,401 1,151 9 April 2004 4,868 95,011 965 10 May 2004 3,494 68,193 692 11 June 2004 3,883 75,778 769 12 July 2004 4,222 82,400 837 13 August 2004 3,949 77,076 783 14 September 2004 3,608 70,421 715 15 October 2004 3,593 70,129 712 16 November 2004 4,380 85,487 868 17 December 2004 5,354 104,506 1,061 18 Total 2004 54,203 1,057,924 10,741 19 20 Name Description Value Unit Reference 21 INDUSTRIAL BOILER DISPLACEMENT EMISSION REDUCTIONS 22 23 Data Input 2.2 Energy Content of No. 2 Distillate Fuel Oil per barrel 5.825 MMBtu/Bar Energy Information Administration, 2003 24 25 Data Input 2.3 Conversion of barrels to gallons 42 gallons/barrel Standard Conversion 26 27 Data Input 2.4 pounds per metric tonne 2,204.62 lbs Standard Conversion 28 29 Data Input 2.5 Energy to the Steam Host 1150 Btu/lb Steam Sales Contract 30 31 Data Inpt 2.6 Energy returned to the Project 180 Btu/lb ASME Steam Tables 32 33 Data Input 2.7 btu per mmBtu 1,000,000 btus = 1mmBtu 34 35 Data Input 2.8 Boiler efficiency 79% % Steam Sales Contract 36 Form EIA-1605 Long Form for Voluntary Reporting of Greenhouse Gases, Instructions, Data Input 2.9 Emission Coefficient of No.2 Distillate fuel oil 22.384 lbs of CO per gallon 2 April 2004; p. 47; http://www.eia.doe.gov/oiaf/1605/Forms.html 37 38 39 Formula 2.A Net energy used by the steam client 970 Btu/lb 40 41 Formula 2.B Total Energy consumed by the steam client Process 115,912 mmBtu's/year 42 43 Formula 2.C Energy adjustment given boiler efficiency 146,724 mmBtu's/year 44 45 Formula 2.D Heat Content of 1 Gallon of fuel oil 0.139 MMBtu/gal 46 47 Formula 2.E Total quantity of fuel oil displaced 1,057,924 gallons 48

49 Formula 2.F Total CO2 reduced by Project's steam delivery process 23,680,560 lbs 50

51 Formula 2.G Total CO2 reduced by Project's steam delivery process 10,741 t

Attachment D - Emission Reduction Workbook Jan-Dec 2004 v.4, Steam Page 3 of 6 18/04/2005 A B C D E F G H I 1 Section 3: Project Emissions 2 Facility Boiler Ignition Oil Heating Fuel 3 Summary Table Month Year Biomass Consumed Deisel Consumed Heating Fuel CO2 Emissions CO2 Emissions CO2 Emissions 4 (metric tonnes) For Ignition (L) (Propane) L (mt) (mt) (mt) 5 January 2004 37,259 378,099 8,665 43 1,014.25 13.19 6 February 2004 33,216 268,195 6,733 38 719.43 10.25 7 March 2004 34,962 400,505 6,620 40 1,074.35 10.07 8 April 2004 33,749 6,628 0 39 17.78 0.00 9 May 2004 26,969 5,177 128 31 13.89 0.20 10 June 2004 26,864 6,882 26 31 18.46 0.04 11 July 2004 31,196 6,061 77 36 16.26 0.12 12 August 2004 27,656 5,750 26 32 15.42 0.04 13 September 2004 24,401 5,159 77 28 13.84 0.12 14 October 2004 22,514 7,501 4,835 26 20.12 7.36 15 November 2004 29,394 3,172 26 34 8.51 0.04 16 December 2004 32,000 9,000 6,051 37 24.14 9.21 17 Total 360,180 1,102,127 33,263 414.21 2,956 51 18 19 Emission Source Description Value Unit Source 20 Facility Boiler - Diesel used as ignition oil Project records, specifically scale readings from conveyer Data Input 1.1 Biomass Consumed - Wet Weight 360,180 metric tonnes 21 belt scales at point of entry to generation facility 22 23 Data Input 3.1.1 CO2 Emissions 0 metric tonnes IPCC 24

CH4 emission factor of industrial Canada’s Greenhouse Gas Inventory, 1990 – 2002, Annex Data Input 3.1.2 0.05 CH4 g/kg woodwaste combustion of wood waste 7:Emission Factors, Table A7-16: Biomass Emission Factors 25 (www.ec.gc.ca/pdb/ghg/1990_02_report/ann7_e.cfm ) 26 Data Input 3.1.3 Grams per kilogram 1 ,000 grams/kilogram Standard Conversion 27 28 Data Input 3.1.4 kilograms per metric tonne 1 ,000 kilograms/tonne Standard Conversion 29 30 Data Input 3.1.5 grams per metric tonne 1 ,000,000 grams/tonne Standard Conversion 31 Data Input 1.9 Global Warming Potential of Methane 23 0 IPCC, Climate Change 2001; Scientific Basis, C6 32 33 34 Formula 3.1.A Convert total biomass consumed to kg 3 60,180,000 kg wood waste 35 36 Formula 3.1.B Quantity of CH4 of consumed wood waste 1 8,009,000 grams CH4 37 38 Formula 3.1.C Quantity of CH4 of consumed wood waste 1 8.01 metric tonnes CH4 39 40 Formula 3.1.D Conversion of CH4 to CO2e 414.207 tonnes CO2e 41 42 43 Ignition Oil - Diesel Data Input 3.2.1 Volume of diesel consumed by Project 1,102,127 liters (L) 44 Aggregate of Project's monthly data (see column E above) 45 46 Data Input 3.2.2 Conversion of liters to gallons 3.785 L/gal Standard Conversion 47

Emission Coefficient of No.2 Distillate fuel Form EIA-1605 Long Form for Voluntary Reporting of Data Input 2.9 22.384 lbs of CO2 per gallon oil Greenhouse Gases, Instructions, April 2004; p. 47; 48 http://www.eia.doe.gov/oiaf/1605/Forms.html 49 50 Data Input 2.4 pounds per metric tonne 2204.62 lbs Standard Conversion 51 52 Formula 3.2.A Gal of fuel Consummed 291,183 gal 53 54 Formula 3.2.B CO2 Emissions related to ignition oil 6,517,834 pounds 55 56 Formula 3.2.6 CO2 Emissions related to ignition oil 2 ,956 metric tonnes CO2 57 58 Heating Fuel (Propane)

Data Input 3.3.1 Volume of propane consumed at Project 33,263 liters 59 Aggregate of Project's monthly data (see column F above) 60 Form EIA-1605 Long Form for Voluntary Reporting of Data Input 3.3.2 CO2 Emissions per US Gallon Propane 12.699 lbs CO2/Gal Greenhouse Gases, Instructions, April 2004; p. 47; 61 http://www.eia.doe.gov/oiaf/1605/Forms.html 62 63 Formula 3.3.A Gal of propane Consummed 8 ,788 gallons 64 65 Formula 3.3.B CO2 Emissions related to propane use 1 11,599 lbs CO2 66 67 Formula 3.3.C CO2 Emissions related to propane use 5 1 metric tonnes CO2

Attachment D - Emission Reduction Workbook Jan-Dec 2004 v.4, Project Emissions Page 4 of 6 18/04/2005 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AA AB AC AD AE AF AG 1 Section 4. Transportation Emissions 2 3 4 Trucking Kilometers to deliver wood waste to Project 2 5 Origin of Wood Waste Trips per month by Bark Providers Kilometers per month by Bark Provider - One Way Distance Location/Town (Point of Wood Waste Supplier Name from Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Total Trips Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Total km Departure) 6 Plant1 7 1 Abitibi Consolidated Inc. (km) 8 2 - Millage 54 Chibougameau 240 63 0 0 0 1 0 0 0 0 0 0 0 64 15,120 0 0 0 240 0 0 0 0 0 0 0 15,360 9 3 - La Doré La Dore 22 25 0 0 0 31 11 81 10 1 0 6 0 165 550 0 0 0 682 242 1,782 220 22 0 132 0 3,630 10 4 - St-Prime St-Prime 11 0 0 0 0 0 0 0 0 0 0 0 0 - 0 0 0 0 0 0 0 0 0 0 0 0 0 11 5 - Roberval Roberval 24 267 351 423 405 330 320 226 295 234 141 58 30 3,080 6,408 8,424 10,152 9,720 7,920 7,680 5,424 7,080 5,616 3,384 1,392 720 73,920 12 6 - St-Thomas St-Thomas-Didyme 43 0 0 0 0 0 0 0 0 0 0 0 0 - 0 0 0 0 0 0 0 0 0 0 0 0 0 13 7 - Girardville Girardville 52 3 0 0 0 0 0 0 0 0 0 0 0 3 156 0 0 0 0 0 0 0 0 0 0 0 156 14 8 - St-Fulgence (hors contrat) St-Fulgence 141 0 23 70 2 0 0 0 0 0 0 0 0 95 0 3,243 9,870 282 0 0 0 0 0 0 0 0 13,395 15 9 0 0 0 0 0 0 0 0 0 0 0 0 0 16 10 17 11 Abitibi Consolidated St-Hilarion 266 0 0 0 0 0 0 0 0 0 0 0 0 - 18 12 Bowater Dépotoir St-Felcien 10 0 0 0 0 0 0 0 0 0 0 0 0 - 0 0 0 0 0 0 0 0 0 0 0 0 0 19 13 Bowater Mistassini Mistassini 320 0 0 0 0 0 0 0 0 0 0 0 0 - 0 0 0 0 0 0 0 0 0 0 0 0 0 20 14 Bowater St-Félicien St-Felcien 10 891 580 645 339 378 642 608 544 474 547 776 615 7,039 8,910 5,800 6,450 3,390 3,780 6,420 6,080 5,440 4,740 5,470 7,760 6,150 70,390 21 15 Coopérative Forestière Petit Paris St-Ludger-De-Milot 86 101 115 74 0 0 0 0 0 0 0 0 0 290 8,686 9,890 6,364 0 0 0 0 0 0 0 0 0 24,940 22 16 Crête Site Vallière La Tuque 173 61 78 81 84 76 88 30 24 82 80 78 60 822 10,553 13,494 14,013 14,532 13,148 15,224 5,190 4,152 14,186 13,840 13,494 10,380 142,206 23 17 Escale du Lac (Petit bloc de bois) Roberval 24 0 0 0 0 0 0 0 0 0 0 0 0 - 0 0 0 0 0 0 0 0 0 0 0 0 0 24 18 Foresco GTH inc. Larouche 88 0 3 5 7 1 3 0 0 4 6 5 5 39 0 264 440 616 88 264 0 0 352 528 440 440 3,432 25 19 Francobec inc. La Tuque 173 0 0 3 15 17 1 0 3 0 0 0 0 39 0 0 519 2,595 2,941 173 0 519 0 0 0 0 6,747 26 20 Gaston Morin Sainte-Elizabeth-De-Proux (Mistissini?) 398 5 60 24 0 3 0 0 17 0 55 35 23 222 1,990 23,880 9,552 0 1,194 0 0 6,766 0 21,890 13,930 9,154 88,356 27 21 Germain Baril St-Felcien 10 0 0 0 0 0 0 0 0 1 3 0 0 4 0 0 0 0 0 0 0 0 10 30 0 0 40 28 22 Industrie St-Félicien (Pan-O-Starr) St-Felcien 10 38 70 74 8 8 0 0 0 0 0 0 0 198 380 700 740 80 80 0 0 0 0 0 0 0 1,980 29 23 Les Industries Piékouagame Inc. Mastouache (?) 446 14 7 1 6 1 19 0 0 3 0 0 0 51 6,244 3,122 446 2,676 446 8,474 0 0 1,338 0 0 0 22,746 30 24 Louisiana Pacifique Chambord 41 0 0 0 0 0 0 0 5 9 6 59 0 79 0 0 0 0 0 0 0 205 369 246 2,419 0 3,239 31 25 Martel BMR Alma 84 0 0 0 0 0 0 0 0 0 0 0 0 - 0 0 0 0 0 0 0 0 0 0 0 0 0 32 26 Produits Forestiers La Tuque La Tuque 173 21 60 137 81 2 0 0 0 28 58 91 60 538 3,633 10,380 23,701 14,013 346 0 0 0 4,844 10,034 15,743 10,380 93,074 33 27 Résidus de tamisage (Vallée) Larouche 88 3 0 0 0 0 0 0 0 0 0 0 0 3 264 0 0 0 0 0 0 0 0 0 0 0 264 34 28 Scierie Gauthier La Baie 142 4 7 12 0 0 0 0 6 6 1 21 18 75 568 994 1,704 0 0 0 0 852 852 142 2,982 2,556 10,650 35 29 Scierie Lac St-Jean Metabetchuan-Lac-a-la-Croix 58 0 0 41 0 0 0 0 31 39 30 49 18 208 0 0 2,378 0 0 0 0 1,798 2,262 1,740 2,842 1,044 12,064 36 30 Scierie Lachance St-Bruno 77 0 0 0 0 0 0 0 20 4 0 0 0 24 0 0 0 0 0 0 0 1,540 308 0 0 0 1,848 37 31 Scierie Lemay inc L'Ascension 630 0 0 10 0 0 0 0 1 1 165 103 18 298 0 0 6,300 0 0 0 0 630 630 103,950 64,890 11,340 187,740 38 32 Scierie Poirier La Dore 22 0 0 0 0 0 0 0 0 0 0 0 0 - 0 0 0 0 0 0 0 0 0 0 0 0 0 39 33 Scierie St-André Chambord 41 0 0 0 0 0 0 0 0 0 0 0 0 - 0 0 0 0 0 0 0 0 0 0 0 0 0 40 34 Scierie Thomas-Louis Tremblay St-Monique 82 5 30 20 6 4 0 0 0 0 0 37 25 127 410 2,460 1,640 492 328 0 0 0 0 0 3,034 2,050 10,414 41 35 Transport Jean-Guy Fortin (sciure) L'Ascension 630 0 0 0 0 0 0 0 0 0 0 0 0 - 0 0 0 0 0 0 0 0 0 0 0 0 0 42 36 Uniforêt L'Ascension L'Ascension 630 24 16 136 156 220 134 58 23 150 117 59 0 1,093 15,120 10,080 85,680 98,280 138,600 84,420 36,540 14,490 94,500 73,710 37,170 0 688,590 43 37 Bois JYL Joyal Roberval 24 0 0 0 0 0 0 0 0 0 0 0 3 3 0 0 0 0 0 0 0 0 0 0 0 72 72 44 38 Crible du Nord St-Felcien 10 0 0 0 0 0 0 0 0 0 0 3 0 3 0 0 0 0 0 0 0 0 0 0 30 0 30 45 39 Produits Forestiers Lambois La Dore 22 0 0 0 0 0 0 0 0 0 0 1 0 1 46 40 Stagem (Petit bloc de bois) Roberval 24 0 0 0 0 0 0 0 0 0 6 13 10 29 47 Total 1,525 1,400 1,756 1,109 1,072 1,218 1,003 979 1,036 1,215 1,394 8 85 14,592 78,992 92,731 179,949 146,676 169,793 122,897 55,016 43,692 130,029 234,964 166,258 54,286 1,475,283 48 1 Taken from the website: http://www.mtq.gouv.qc.ca/en/information/distances/index1.asp, except in the case where St. Felicien is the point of departure. In these cases, an estimate of 10 kilometers has been entered by the Project 14592 49 2 Project Records 50 51 Trucking Emissions 52 Month Year Total Trips Total Km CO2 53 Roundtrip tons 54 January 2004 1525 157,984 187.30 55 February 2004 1400 185,462 219.88 56 March 2004 1756 359,898 426.68 57 April 2004 1109 293,352 347.79 58 May 2004 1072 339,586 402.60 59 June 2004 1218 245,794 291.40 60 July 2004 1003 110,032 130.45 61 August 2004 979 87,384 103.60 62 September 2004 1036 260,058 308.32 63 October 2004 1215 469,928 557.13 64 November 2004 1394 332,516 394.22 65 December 2004 885 108,572 128.72 66 Total 2004 14,592 2,950,566 3498.09 67 68 69 70 Name Description Value Unit Source (1) Km distances taken from Transports Quebec "distances Total kilometers traveled in wood between cities" site : Data Input 4.1 2,950,566 km waste delivery http://www.mtq.gouv.qc.ca/en/information/distances/index.asp; (2) # of trips per supplier from Project records 71 72 Canada’s Greenhouse Gas Inventory, 1997 Emissions and Fuel Consumption Ratio of Heavy Removals with Trends, Appendix B: Detailed Methodologies, B2 Data Input 4.2 43.00 l/100 km Duty Diesel Vehicles Transportation Methodology, Details of Vehicle Emissions in 73 Canada for 1997, Environment Canada, April, 1999 74 Canada’s Greenhouse Gas Inventory, 1990 – 2002, Annex CO2e Emission Factor for Heavy 7:Emission Factors, Table A7-5: Emission Factors for Energy Data Input 4.3 2,757 g/l Duty Diesel Vehicles Mobile Combustion Sources (www.ec.gc.ca/pdb/ghg/1990_02_report/ann7_e.cfm ); applying 75 GWP of 23 to CH4 and 296 to N2O 76

Data Input 3.1.5 grams per metric tonne 1,000,000 grams/tonne Standard Conversion 77 78 79 Formula 4.A Conversion to liters per km 0.430 l/km 80 Total liters of diesel consumed by Formula 4.B liters diesel 81 transport 1,268,743 82 CO2e emission for transport Formula 4.C grams CO2e 83 (grams) 3,498,090,435 84 CO2e Conversion from grams to Formula 4.D metric tonnes CO2e 85 metric tonnes 3,498

Attachment D - Emission Reduction Workbook Jan-Dec 2004 v.4, Transportation Page 5 of 6 18/04/2005 A B C D E F G H 1 Timing Approach: 2 Three Year Recognition 3

4 Gross ERCs from 2003 Project Activity (Biomass Destruction Only) 1,020,606 metric tonnes CO2e 5 6 Project Emissions: 6,919 7 8 Net ERCs from biomass destruction: 1,013,687 9 10 Three Year Recognition (net of project emissions)

11 2003 Recognition 3 33,283 t CO2e

12 2004 Recognition 3 40,202 t CO2e

13 2005 Recognition 3 40,202 t CO2e 14 15 Total Net ERCs 1 ,013,687 +ok 16 Revised March 17, 2005

Attachment D - Emission Reduction Workbook Jan-Dec 2004 v.4,Timing Page 6 of 6 18/04/2005