VERDANT ENERGY INC. DAPP POWER ELECTRIC GENERATION FACILITY DIVERSION OF BIOMASS TO ENERGY FROM BIOMASS COMBUSTION FACILITIES OFFSET PROJECT PLAN OCTOBER, 2007 Dapp Power Electric Generation Facility October 2007 Contents 1.0 INTRODUCTION ..................................................................................................................... 2 2.0 PROJECT AND PROPONENT IDENTIFICATION ............................................................. 3 3.0 PROJECT DESCRIPTION ..................................................................................................... 4 3.1 Project Scope ...................................................................................................................... 4 3.2 Project Site Description ..................................................................................................... 5 3.3 Pre-Project Conditions ....................................................................................................... 7 3.4 Actions Taken ..................................................................................................................... 7 3.5 Project Conditions .............................................................................................................. 7 3.5.1 Bio Fuels Inc. .................................................................................................................. 7 3.5.2 Dapp Electricity Generation Facility ............................................................................ 8 3.6 Inventory of Sources and Sinks ....................................................................................... 8 3.6.1 Fossil Fuel Offsets ..................................................................................................... 9 3.6.2 Baseline Condition ..................................................................................................... 9 3.6.3 Affirmation from Biomass Supplier .......................................................................... 9 3.6.4 Quantification of Reductions .................................................................................... 9 3.6.5 Offset Eligibility Requirements ................................................................................. 9 4.0 IDENTIFICATION AND JUSTIFICATION OF BASELINE ............................................... 10 5.0 QUANTIFICATION OF EMISSION REDUCTIONS .......................................................... 11 5.1 Process Description ......................................................................................................... 11 5.2 Data Sources .................................................................................................................... 18 5.3 Quantification Plan ........................................................................................................... 18 5.4 Monitoring Plan ........................................................................................................................ 19 5.4.1 Metering Maintenance and Calibration .................................................................... 21 5.4.2 Manual Checking of Calculator Data ........................................................................ 21 5.4.3 Record Keeping ............................................................................................................ 22 6.0 Reporting of Emission Reductions ...................................................................................... 22 Diversion of Biomass to Energy from Biomass Facilities Page 1 Dapp Power Electric Generation Facility October 2007 1.0 INTRODUCTION The Dapp Energy Project (the Project) is an energy from biomass project located northwest of the town of Westlock, Alberta. The Project is owned and operated by Verdant Energy Ltd. The opportunity for generating carbon offsets with this protocol arises mainly from indirect GHG emission reductions through the use of biomass to offset non- renewable electricity production and from direct GHG emission reductions due to the avoidance of methane emissions from destruction of waste in the landfill. Methane, a powerful GHG, is passively emitted from the storage of biomass where it undergoes anaerobic decomposition. The combustion of the methane component of the landfill gas results in emissions of biogenic carbon dioxide thus achieving a reduction in anthropogenic GHG emissions. In addition, the generation of electricity will offset other sources on the Alberta grid which in this case includes the combustion of fossil fuels. The facility produces 16.5 MW of electricity from landfill and forestry biomass, using a bubbling fluidized bed boiler and steam turbine. This electricity is transmitted to the Alberta electricity grid. Diversion of Biomass to Energy from Biomass Facilities Page 2 Dapp Power Electric Generation Facility October 2007 2.0 PROJECT AND PROPONENT IDENTIFICATION Corporate Contact Information: Verdant Energy Ltd. Suite 910, 1122 – 4th Street SW : Calgary, AB, Canada T2R 1M1 Contact: Grant Noll Phone: (403) 261 – 9940 Fax: (403) 269 – 9799 Email: [email protected] Direct emission reductions generated by the Project, or the emission reductions due to the avoidance of methane emissions from the landfill, are owned solely by Verdant Energy Inc., or its wholly owned subsidiaries Dapp Power LP and Bio Fuels Inc. Indirect emission reductions or the emission reductions due to the offset of fossil fuel use for electricity production corresponding to the electricity generated by the Dapp Generating Facility are also owned solely by Verdant Energy Inc., or its wholly owned subsidiaries. Diversion of Biomass to Energy from Biomass Facilities Page 3 Dapp Power Electric Generation Facility October 2007 3.0 PROJECT DESCRIPTION 3.1 Project Scope The project consists of a wood recycling depot, located on the Northland Sand and Gravel Landfill in Edmonton, owned by Bio Fuels Inc., a wholly owned subsidiary of Verdant Energy, and Dapp Generating station near Westlock, AB, also wholly owned by Verdant Energy. The Dapp Generating station has all the components of a conventional steam power plant, including a Babcock and Wilcox circulating fluidized bed boiler, a Turbodyne steam turbine and a substation and grid tie-in. Biomass arrives at Dapp Generating Facility by two methods: 1. Direct transportation to the Dapp Generating Facility; 2. Transportation to the Bio Fuels Inc. wood recycling depot [Bio Fuels Inc.] where it is processed and then transported approximately 135 km to the Dapp Generating Facility. Biomass being transported directly to the Dapp Generating Facility is received at its wood receiving system. The wood waste is processed to proper size through a “hog” located at the plant site. From there, a wheel loader moves product either into open air storage or to the fuel reclaim system that carries it by conveyor to the power plant. Once in the power plant, the biomass is fed into a steam power boiler that generates steam to turn a steam turbine coupled to an electric generator. Steam exhaust from the steam turbine is cooled and returned to the boiler in a closed loop system. Biomass transported to Bio Fuels Inc. is diverted from landfill. This biomass includes material such as construction and demolition waste, shipping pallets and crates, manufacturing waste and tree trimmings, all of which is free of paint or preservatives. The biomass is processed through a high capacity 600 hp diesel powered wood grinder, before being separated from any nails or metals. Mobile equipment, such as a trackhoe to feed the grinder and wheel loader to load tractor trailer units with the finished product, are used to support the operation of the wood grinder. Following this, the biomass is shipped to Dapp Generating Station. Transportation to both facilities is accomplished by 5 Dapp power tractor / trailer units, and up to 8 contractor owned units. The majority of the biomass is transported directly to the Dapp Generating Facility. The remainder, that which is transported to Bio Fuels Inc., is the portion Diversion of Biomass to Energy from Biomass Facilities Page 4 Dapp Power Electric Generation Facility October 2007 of the biomass which has been diverted from landfill, and therefore from anaerobic decomposition. Each year, both of these biomass streams are combusted to produce 16.5 MW of electricity. 10 MW of this power is sold under a power purchase agreement, and the remaining 6.5 MW is sold to the wholesale spot market. As a result of landfill avoidance, as well as the avoidance fossil fuel combustion to generate electricity, carbon offsets are generated. These carbon offsets are generated in accordance with the Quantification Protocol for Diversion of Biomass to Energy from Biomass Combustion Facilities (AENV, 2007). 3.2 Project Site Description Dapp Generation Facility is located NW of the city of Westlock, AB. The legal description of the site is the SW ¼ of Section 1, Township 53, Range 2 west of the 5 th Meridian. A plot plan for this site is included as Figure 3.1. The Bio Fuels Inc. wood recycling depot is located on the Northland Sand and Gravel Landfill in Edmonton at 231 st St. and Hwy 16A in Parkland County (Edmonton). Clean wood biomass is received at this site and is processed before being shipped to the Dapp Generating Facility. Diversion of Biomass to Energy from Biomass Facilities Page 5 Dapp Power Electric Generation Facility October 2007 Figure 3.1: Dapp Generating Facility Plant Layout Diversion of Biomass to Energy from Biomass