Ferry Engine Replacement Program

Ferry Engine Replacement Project GHG Quantification Report August 2009

Department of Transportation Energy and Greenhouse Gas Emission Reduction Quantification Plan

Prepared by CSA Standards in Conjunction with the Department of Transportation, Government of New Brunswick

1 Ferry Engine Replacement Project GHG Quantification Report August 2009

1 GENERAL ...... 3 1.1 BACKGROUND ...... 3 1.2 ISO PRINCIPLES FOLLOWED IN EMISSION REDUCTION ESTIMATION ...... 3 1.3 BEST PRACTICE GUIDANCE ...... ERROR! BOOKMARK NOT DEFINED. 1.4 BEST PRACTICE GUIDANCE ...... 3 1.5 PROGRAM AND INTENDED USER ...... 3 2 PROJECT DESCRIPTION ...... 4 2.1 TECHNOLOGY ...... 5 2.2 CURRENT SITUATION IN NEW BRUNSWICK ...... 6 2.3 GHG REDUCTIONS STRATEGY...... 6 2.4 PROJECT TIMELINE ...... 7 2.5 CO-BENEFITS OF PROJECT ...... 7 3 SELECTION AND JUSTIFICATION OF THE BASELINE SCENARIO ...... 7 4 IDENTIFICATION OF SSRS ATTRIBUTABLE TO THE PROJECT AND BASELINE ...... 8 5 QUANTIFICATION OF GHG EMISSIONS AND/OR REMOVALS ...... 9 5.1 ESTIMATING BAU EMISSIONS ...... 10 5.2 QUANTIFICATION OF GHG EMISSION REDUCTIONS AND REMOVAL ENHANCEMENTS ...... 11 5.3 DATA AND METHOD TO IMPROVE ACCURACY AND RIGOUR OF EMISSION ESTIMATES ...... 12 6 ASSESSMENT OF COSTS OF PROJECT IMPLEMENTATION AND QUANTIFICATION ...... 12 7 ASSESSMENT OF RISKS AND REWARDS ...... 13

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1 General

1.1 Background

The New Brunswick Climate Change Action Plan 2007-2012 provides a greenhouse gas emissions reduction target of 1.2 million tonnes (Mt) CO2e from transportation related activities. The NB Climate Change Action Plan 2007-2012 also states that the secretariat aims to track and report on greenhouse gas emissions trends and progress regarding the implementation of all climate change initiatives in this action plan. Furthermore the provincial authorities have decided to quantify the emission reductions according to the ISO 14064 framework.

This document quantifies the impact of the Department of Transportation Ferry Engine Replacement Program on GHG emission reductions according to ISO 14064–2 principles. The Ferry Engine Replacement Program has received $200,000 of funding through the Climate Action Fund. Since the project involved will result in emission reductions below 25,000 tonnes of CO2e, this specific quantification follows a track 2 quantification that is consistent with ISO 14064-2 principles. This is a simplified approach to estimating emissions. It is meant to be transparent, with a level of rigour that is balanced by the availability of data and level of effort required.

1.2 ISO Principles Followed in Emission Reduction Estimation The following principles from the ISO-14064 standards were followed in the estimation of emission reductions resulting from the implementation of this project:

Transparency: We have tried to make the estimation of emission reductions as transparent as possible by explaining all data sources used and providing all equations used in the estimation

Accuracy and rigour: We have followed or adapted best practices in order to help ensure accuracy and rigour in the emission estimations

Conservativeness: In order to not overestimate emission reductions, we have been conservative in our assumptions

1.3 Best Practice Guidance Other than the requirements identified in ISO 14064-2 the following documents were used as a best practice guidance documents:

Direct Emissions from Mobile Combustion Sources developed for the United States Environmental Protection Agency1

1.4 Program and Intended User

This quantification is intended to be used to: Track progress by efficiency NB towards internal goals and targets surrounding energy consumption reductions and greenhouse gas emission reductions; and

1 US Environmental Protection Agency – Climate Leaders - http://www.google.ca/url?sa=t&source=web&cd=1&ved=0CBUQFjAA&url=http%3A%2F%2Fwww.epa.gov% 2Fclimateleaders%2Fdocuments%2Fresources%2Fmobilesource_guidance.pdf&ei=eHhITaD_LsPKgQeF1ZjgB Q&usg=AFQjCNEJW35PJXrubZ5P_W35MrAUNRPXpQ

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Report to the Climate Change Secretariat on the greenhouse gas emissions reductions that have occurred due to this program as part of the Climate Change Action Plan 2007-2012 reporting requirements. Report back to the people of New Brunswick on the impact of the actions taken to reduce GHG emissions

This quantification does not take into account any other program requirements. The project proponent is the Department of Transport. The contact details of the project proponent are:

Name: Susi Derrah Title: Assistant Director Email: [email protected]

Role and responsibilities:

. Overseeing project implementation

Other personnel working on the project

Name: Mike Rosehart P.Eng. Title: Assistant to the District Engineer [email protected]

Role and responsibilities:

. Technical specialist on project

2 Project Description The Department of Transportation received $200,000 to replace diesel engines in two cable ferries with modern electronic, fuel-efficient engines. The two cable ferries are located in the communities of Westfield and Evandale.2

The Evandale Ferry is a cable ferry in the Canadian province of New Brunswick. The ferry has the following operational statistics and is pictured below3:

2 A cable ferry is a means of water transportation by which a ferry or other boat is guided and in many cases propelled across a river or other larger body of water by means of cables connected to both shoresFrom http://en.wikipedia.org/wiki/Cable_ferry 3 From http://en.wikipedia.org/wiki/Evandale_Ferry

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Operates on: Saint John River between Evandale on Rte. 102 and Rte. 124 Length of Crossing: 0.5 km Crossing Time: 5 min. Capacity: 18 Car Schedule: 24 Hours - Year Round

The Westfield Ferry is a cable ferry crossing the Saint John River, linking Grand Bay- Westfield on the west bank to Hardings Point on the east bank. It has the following operating statistics, and is pictured4 below.

Operates on: Saint John River between Grand Bay- Westfield on Rte. 177 and Hardings Point off Rte. 845 Length of Crossing: 0.7 km Crossing Time: 5 min. Woolastook I (F79) Capacity: 15 Car Schedule: See below Westfield Ferry (F85) Capacity: 15 Car Schedule:

. From Victoria Day weekend until July first weekend Friday, Saturday and Sunday and holiday Mondays 12 p.m.-8 p.m. . July First weekend to Labor Day weekend 7 days a week from 6 a.m.-10 p.m. . From Labor Day weekend to Thanksgiving weekend Friday, Saturday, and Sunday and holiday Mondays 1 p.m.-9 p.m.

2.1 Technology The Department of Transportation replaced 671 Detroit Diesel engines in two cable ferries with modern electronic, fuel-efficient engines. The ferries are located in the communities of Westfield and Evandale. The new Caterpillar C12 engines meet the highest standards for fuel efficiency and for low-level greenhouse-gas emissions. The cost to replace an engine, including related design and conversion of related equipment, is $100,000 per ferry. Both ferries have ran at about 24 litres of diesel per hour prior to the conversion to the Caterpillar C12 engines. After the conversion to the Caterpillar C12, engines the fuel consumption has dropped to 14 litres of diesel per hour.

Caterpillar is the manufacturer of the engines being replaced. The following table shows the technical specifications of the specific C12 engine series:

Table 1 Engine Specifications for Caterpillar C12 Series5

4 From http://en.wikipedia.org/wiki/Westfield_Ferry 5 From Caterpillar

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The specific engines being used in the respective ferries run at about 1,200 RPM.

2.2 Current Situation in New Brunswick There are 14 ferries operating in New Brunswick, the largest which is the 65 car, 300 passenger MS Grand Manan V (see figure below).

Figure 1 Ferries operating in New Brunswick (from http://www.gnb.ca/0113/ferries/ferries-e.asp#F46)

There currently three ferries (F44, F46, and F74) that have the 471 Detroit Diesel engines. However due to reduction in services, by the end of April it is expected that only one of these ferries (F74) will still be in operation that being F74.

2.3 GHG reductions strategy This project falls under the energy efficiency area. The GHG reduction strategy is to replace inefficient engine technology with more efficient engines. This will in turn reduce fuel consumption and GHG emissions to the atmosphere.

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2.4 Project timeline The engines were replaced as follows: F85 June 2008, and F49 November 2008. Therefore, emission reductions for F85 only started in June 2008, and for F49, started in November 2008.

2.5 Co-benefits of project Other than the reduction of GHG emissions, the co-benefits of this project are multi-fold, and can be summarized as follows:

1. Reductions in the amount of fuel consumed and upstream emissions 2. Reductions in air pollution resulting from a reduction in fuel consumption, including sulphur dioxide (SO2), nitrogen oxides (NOx), carbon monoxide (CO), and particulate matter. 3. Increased economic production and employment related to manufacturing and delivery of replacement engine technologies 4. Reductions in operating costs since engines require less fuel 5. Know-how gained from implementing project, and possibility to build upon project for wider-scale implementation and initiatives.

3 Selection and Justification of the Baseline Scenario A baseline scenario is used to establish what the quantified emissions are relative to what would have occurred under “business as usual” (BAU) conditions. It is therefore important to establish what the baseline scenario is. The common practice is to identify multiple possibilities for the baseline scenario, and then to identify the one most likely to occur through the process of barrier analysis (see below).

The following scenarios were identified for the purposes of this project:

1) Keeping ferry engines as is (i.e. no replacement) 2) Replacing ferry engines with same technology 3) Replacing ferry engines with advanced fuel efficient technology (this is the project)

A barrier test is used to help identify barriers to any of these scenarios occurring. A barrier test in a common technique used to help justify a baseline scenario and to substantiate the claim that a project is in fact additional to the business as usual.

Figure 2 Barrier analysis of business as usual scenarios

Possible 1. Keeping ferry engines as 2. Replacing ferry 3. Replacing ferry engines with baselines is (i.e. no replacement) engines with advanced fuel efficient equivalent technology (this is the project) Barriers technology

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Regulatory barriers No barrier No barrier No barriers

Common practice Barriers. Technology is Barriers. Barriers. This is not common on barriers inefficient Technology is the market inefficient Financial barriers No barrier No barrier Yes. More expensive that standard engine Barriers due to the No barrier No barrier No barrier geographical location Barriers due to Yes – these would be Yes – these would Barrier of public perception over public perception perceived worse due to be perceived worse higher up front capital cost their low energy efficiency due to their low energy efficiency. Market barriers No barrier No barrier No barrier

Technological No barrier No barrier Some barriers. New technology barriers

Based on the barrier test, it is appropriate to conclude that the most likely business case would be not to replace the ferry engines. The primary reason is the capital costs that would be incurred would be negatively perceived by the public, especially in an era with constrained government budgets. 4 Identification of SSRs attributable to the project and baseline Sources, sinks, and reservoirs (SSRs) are defined in order to determine the full breathe of emissions attributable to the project being implemented.6 The following SSRs were identified associated with both the project and the baseline.

Figure 3 Sources, Sinks, Reservoirs Associated with Project and Baseline

Upstream SSRs during operation

P3: Electricity P4 : Fossil fuel Production production 6 A source means any process or activity that releases a greenhouse gas into the atmosphere, whereas a sink means any process, activity or mechanism that removes a greenhouse gas from the atmosphere and a reservoir means a physical unit or component of the biosphere, geosphere or hydrosphere with the capability to store or accumulate Upstream GHGs (from SSRs http://www.ec.gc.ca/creditscompensatoires Onsite SSRs - Downstream SSRs offsets/default.asp?lang=En&n=7CAD67C6 -1&offset=12&toc=show ).

Ferry Engine Replacement Project GHG Quantification Report August 2009

P1: Manufacturing of engine technology P5: Operation of engine technology P8: Market transformation P2: Transportation of engine (specific to project) technology

P6: Transportation of P7: Disposal of replaced replaced inefficient engine inefficient engine technology technology

The following table presents a brief description of the SSRs identified along if these SSRs are related or owned by the project proponent7:

Table 2 Defining Attributable SSRs

SSR Owned, related or affected P1: Manufacturing of efficient engine technology Related

P2: Transportation of efficient engine technology Related

P3: Electricity production Related

P4 : Fuel production Related

P5 : Operation Owned

P6:Transportation of replaced inefficient engine technology Related

P7:Disposal of replaced inefficient engine technology Related

P8: Market transformation Affected

Since this is a track 2 project, attention is only given to emissions that are “owned” by the project – namely, emissions directly attributable to the fuel used and combusted for the purposes of powering the engines required for vessel propulsion and use. 5 Quantification of GHG emissions and/or removals Since fuel consumption data was not available for the baseline or the project, emissions and emission reductions have been estimated based on activity and the use of fuel burn rates for

7 Emission reductions that are “owned” by the project proponent can be claimed for the purposes of emission reduction and be retired or sold. Emission reductions which are “related”, alternatively, refer to those emissions that are affected by the project indirectly (e.g. emissions associated with manufacturing the equipment). Emission reductions that are “affected” generally refer to the wider impacts of fuller implementation of a policy or a program (i.e. the emission reduction benefits accrued with fuller adoption of the renewable energy or technology)

9 Ferry Engine Replacement Project GHG Quantification Report August 2009 engines and replacement engines. Specifically, this involves first estimating the hours each ferry vessel operates per year and then multiplying this by engine-specific FBRs to estimate fuel consumption and the emissions resulting from this.

Hourly fuel burn rates have been established by the Department of Transportation, Government of New Brunswick, by taking weekly fuel consumption totals and dividing this by the number of hours each vessel is in operation. This was repeated for multiple weeks in order to obtain an average fuel burn rate. This was done both for the baseline and for the project.

Estimates of activity are made using ferry schedules as provided by the Government of New Brunswick’s Department of Transportation in conjunction with data received by personnel in the government.8 This is summarized in table 3.

Table 3 Estimates of Evandale and Westfield ferry trip activity

Total Total hours per hours per Days day year per vessel in vessel in Ferry yeara operationa operation F-49: Evandale 365 24 8,760 F-85: Westfield 97 14 1,358

Table notes:

a) source: from http://www.gnb.ca/0113/ferries/ferries-e.asp#F49 b) Based on correspondence with personnel from the Department of Transportation, GNB

The Evandale Ferry operates 365 days a year, 24 hours a day. According to information received from GNB, it takes 230 trips on average per day. The average time per trip is about 5 minutes. This means that the vessel is in cruise mode just over 19 hours per day and is at dock just over 4 hours per day.

Meanwhile, the Westfield Ferry operates fewer days per year (97 based on their schedule). In addition, the ferry is in operation just over 14 hours per day on average, the majority of which is in cruise mode (it is presumed that there is much less wait time on average since the ferry does not operate at night).

5.1 Estimating BAU emissions BAU emissions are estimated using the estimated number of hours vessels are in operation.

The BAU scenario, as described, is to continue using the same engines in the Evandale and Westfield ferries (671 Detroit Diesels operating at a fuel efficiency of 24 l hr).

Table 4 shows estimated fuel consumption and emissions for the Evandale and Westfield ferries.

Table 4 Fuel consumption and emissions under BAU conditions - Evandale and Westfield ferries

8 Please see http://www.gnb.ca/0113/ferries/ferries-e.asp#F49 for the ferry schedule for F49 and F85, the two ferries part of this emission reduction project.

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Fuel consumption Fuel Hours of Days per Hours of rate consumed operation year operation (litres/hour) (litres/year) F-49: Evandale 24 365 8,760 24 210,240 F-85: Westfield 14 97 1,381 24 33,148

Table notes:

The number of hours operating per day for the Westfield ferry has been calculated using the weekly schedule for the ferry. This is a weighted average.

Based on the estimated activity and based on the FCRs of the two ferry engines, it is estimated that the Evandale and Westfield ferries consume 210,240 and 33,148 litres of diesel each, respectively. This would result in emissions of 587 and 92 tonnes of emissions for each vessel over the course of year.

5.2 Quantification of GHG emission reductions and removal enhancements The project involves replacement of the inefficient conventional diesel engines with modern electronic, fuel efficient engines. Specifically, this is expected to improve FCRs from 24 l/hr to about 14 l/hr.

The resulting changes in fuel consumption are shown in table 5.

Table 5 Analysis of fuel consumption and emissions with project to replace ferry engines

Fuel consumption Fuel Hours of Days per Hours of rate consumed operation year operation (litres/hour) (litres/year) F-49: Evandale 24 365 8,760 14 122,640 F-85: Westfield 14 97 1,381 14 19,337

Based on the estimated activity and based on the FCRs of the two ferry engines, with implementation of this project, it is estimated that the Evandale and Westfield ferries consume 122,640 and 19,337 litres of diesel each, respectively. This would result in emissions of 342 and 54 tonnes of emissions for each vessel over the course of year.

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The actual emission reductions that resulted from this project in 2008 (when considering the dates that each ferry engine were replaced), and the expected annual reduction in emissions associated with the replacement of the engines on both ferries (i.e. what will occur in 2009 through to 2015) is presented in table 6.

Table 6 Reductions in GHG emissions associated with project across project lifetime (2008 to 2016)

Annual Emission Reductions (kg CO2e) Project start date 2008 2009 2010 2011 2012 2013 2014 2015 2016 Total F-85: Westfield Jun-08 22,477 38,532 38,532 38,532 38,532 38,532 38,532 38,532 16,055 308,258 F-49: Evandale Nov-08 40,731 244,386 244,386 244,386 244,386 244,386 244,386 244,386 203,655 1,955,091 Total 63,208 282,919 282,919 282,919 282,919 282,919 282,919 282,919 219,710 2,263,349

5.3 Data and method to improve accuracy and rigour of emission estimates

The estimates of emission reductions produced in this report has been done so using activity metrics alongside fuel consumption rates for engines to estimate emissions for the baseline and then for the project. Emission reductions have then be calculated as the difference of these two.

It is strongly advised that to improve the accuracy and rigour of the calculation of emission reductions, actual fuel consumption data be used rather than estimates of activity. Using fuel consumption data is an approach more grounded in reality, and will increase the validity of claims related to emission reduction. This is especially important if the government intends to expand this program and ultimately seek to register and verify the emission reductions (thereby making them eligible for sale or retirement).

The most simple approach to do this is to collect data on fuel consumed, by ferry. This data can then be used in conjunction with fuel specific emission factors as provided by Environment Canada. The basic equation for calculating emission reductions would therefore be:

(FuelConsumedBaseline X FuelEmissionFactor) - (FuelConsumedProject X FuelEmissionFactor)

6 Assessment of Costs of Project Implementation and Quantification The table below summarizes the costs of project implementation and quantification:

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Table 7 Summary of Time and Costs of Project Implementation and Quantification

Project Step Description Estimated Estimated Time (Days) Costs (CAD $) Project funding Funds received from Climate Action Fund Not applicable $200,000 Other start-up Other investment or funding into climate Not applicable costs change action project Quantification/ Total costs for estimating and quantifying the 3-5 days $4,162.5 - estimation of project. This should include $6,937,5 emission . Administrative time and costs reductions associated with setting up the project . Time and costs associated with quantifying the project, including data collection, data analysis, monitoring (if applicable) and reporting . Administrative time and costs associated with quantification and documenting of project Registry of Registries for emission reduction projects Not applicable project and exist for track 1 projects (e.g. projects that emission exceed 25,000 tonnes per year), and track 2 reductions on projects. All climate change action projects project registry receiving funding through the Climate Action Fund are being registered. Track 1 projects are being registered on the CSA CleanProjects registry, while Track 2 projects are being registered on the CSA Reductions registry. Verification of Assertions of emission reductions must be Not applicable emission verified by a third party if project proponents reductions (if wish to sell or retire these emission applicable) reductions. Other costs Any other costs that might have been accrued Not applicable during the implementation or quantification/estimation of the project Registration The costs to register the project $200 costs Total $204,362.50 - time/costs $207,137.50

7 Assessment of Risks and Rewards A Risk/Reward framework has been established as a tool to help illustrate the costs relative to the benefits of a project. To apply this, for this project we have documented:

a) The policy objectives of the project:

The primary policy objective of this project is the reduction of GHG emissions to the atmosphere

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b) The number of tonnes of GHG emission reductions estimated:

282,919 kg CO2e per year, or 2,263,352 kg (2,263 tonnes) of CO2e over eight years

c) The estimated cost of quantifying, tracking and reporting emission reductions:

$204,362.50 - $207,137.50

d) The resulting cost per tonne of GHG emission reductions:

$722.34/tonne - $732.14/tonne if considering only 1 year, and $90.29/tonne - $91.52/tonne if considering 8 years of emission reductions.

e) The co-benefits (other than GHG emission reductions) associated with the climate action project: