Project Report
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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 Project Description and Emission Reduction Report – January – December 2004 Page 2 of 22 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 Project Description and Emission Reduction Report – January – December 2004 Page 3 of 22 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 Project Description and Emission Reduction Report – January – December 2004 Page 4 of 22 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. Project Description and Emission Reduction Report – January – December 2004 Page 5 of 22 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