AGGREGATED WASTE HEAT RECOVERY OFFSET …...AGGREGATED WASTE HEAT RECOVERY OFFSET PROJECT Greenhouse...

AGGREGATED WASTE HEAT RECOVERY OFFSET PROJECT

Greenhouse Gas Emissions Reduction

Offset Project Report

For the Period February 1, 2017 – March 31, 2017

FINAL REPORT, version 1.1

15 May 2017

Prepared by: Blue Source Canada ULC (Project Proponent) Suite 700, 717-7th Avenue SW Calgary, Alberta T2P 3R5 T: (403) 262-3026 F: (403) 269-3024 www.bluesourceCAN.com

Prepared for: Genalta Power Inc. (Project Participant) #600, 505 8 Ave SW Calgary, AB T2P 1G2 T: (403) 237-9740 F: (403) 668-0883

www.genaltapower.com

Prepared for: Repsol Oil & Gas Canada Inc. (Project Participant) Suite 2000, 888 - 3rd Street S.W. Calgary, AB T2P 5C5 T: (403) 237-1234 F: (403) 237-1902

http://www.repsol.com/ca_en/

http://www.bluesourcecan.com/

http://www.genaltapower.com/


Prepared by: Blue Source Canada ULC 700, 717 7th Ave. SW, Calgary, AB, T2P 0Z3 Tel: (403) 262-3026 Fax: (403) 269-3024

Contents Contents ........................................................................................................................................................ 2

List of Tables ................................................................................................................................................. 3

List of Figures ................................................................................................................................................ 3

List of Abbreviations ..................................................................................................................................... 3

1 PROJECT SCOPE AND PROJECT DESCRIPTION ....................................................................................... 4

2 PROJECT CONTACT INFORMATION ....................................................................................................... 8

3 PROJECT DESCRIPTION AND LOCATION ................................................................................................ 9

3.1 Cadotte and West Cadotte WGP ................................................................................................ 10

3.2 Bigstone WHR ............................................................................................................................. 10

4 PROJECT IMPLEMENTATION AND VARIANCES ................................................................................... 11

5 REPORTING PERIOD ............................................................................................................................ 16

6 GREENHOUSE GAS CALCULATIONS ..................................................................................................... 16

Emissions under SS (B1) Fuel Extraction / Processing ........................................................................ 17

Emissions under SS (B4) Generation of Heat and Power .................................................................... 17

Emissions under SS (B11) Electricity Usage ........................................................................................ 18

Emissions under SS (P9b) Unit Operation (Grid Electricity Consumption) ......................................... 19

7 GREENHOUSE GAS ASSERTION ........................................................................................................... 21

8 OFFSET PROJECT PERFORMANCE ....................................................................................................... 22

9 PROJECT DEVELOPER SIGNATURES ..................................................................................................... 23

10 STATEMENT OF PEER REVIEW ........................................................................................................ 24

11 REFERENCES .................................................................................................................................... 25


List of Tables TABLE 1 - EMISSION FACTORS USED FOR AGGREGATED WASTE HEAT RECOVERY OFFSET PROJECT FOR THIS

REPORTING PERIOD ............................................................................................................................................ 20

TABLE 2 - OFFSET TONNES CREATED BY VINTAGE YEAR AND GHG ............................................................................. 21

List of Figures FIGURE 1- MAP OF WGP AND WHP FACILITY LOCATIONS............................................................................................. 9

FIGURE 2. WEST CADOTTE SUPPLIED GAS METERING DIAGRAM ................................................................................ 14

FIGURE 3 – MONTHLY CREDITS CREATED BY EACH SUBPROJECT ............................................................................... 22

List of Abbreviations AEOR Alberta Emissions Offset Registry

AENV Alberta Environment (now Alberta Environment & Parks)

AEP Alberta Environment and Parks (previously Alberta Environment & Sustainable Resource

Development)

AESRD Alberta Environment & Sustainable Resource Development (previously Alberta

Environment)

Blue Source Blue Source Canada ULC

CH4 Methane

CO2 Carbon Dioxide

CO2e Carbon Dioxide-equivalent

GHG Greenhouse gas

GWP Global Warming Potential

HFC Hydrofluorocarbon(s)

LHV Lower Heating Value

N2O Nitrous Oxide

ORC Organic Rankine Cycle

PFC Perfluorocarbon(s)

SF6 Sulphur Hexafluoride

SGER Specified Gas Emitters Regulation

SS Sources and Sinks

WGP Waste Gas to Power

WHP Waste Heat to Power


1 PROJECT SCOPE AND PROJECT DESCRIPTION The project title is: Aggregated Waste Heat Recovery Offset Project (‘the Project’)

The project’s purpose(s) and objective(s) are:

This aggregated offset project includes four waste heat recovery projects by Genalta Power (Genalta) and one waste heat recovery project by Repsol Oil and Gas Canada (Repsol). The Genalta projects use waste heat from industrial processes and gas plants to generate electricity and offset power sourced from the Alberta Grid. The Repsol project uses waste heat to reduce fossil fuel usage for heating purposes.

Date when the project began:

Repsol Bigstone WHR was installed in 2009 and the first Genalta project began May 14, 2012. Therefore, the Project is a result of actions taken on, or after, January 1, 2002. Galloway WGP and Judy Creek Waste Heat to Power (WHP) were commissioned in March and April of 2013. The West Cadotte WGP facility was commissioned on February 15, 2015.

Expected lifetime of the project:

The microturbine modules at the Cadotte and Galloway WGP sites have a lifetime expectancy of approximately 10-15 years. The Judy Creek WHP consisting of the Organic Rankine Cycle (ORC) unit is built to last 20+ years. The power generation reciprocating engines at the West Cadotte facility and the Bigstone WHR unit have a lifetime expectancy of 10-15 years.

Credit start date: The crediting start date for the Project is January 1, 2013.

Credit duration period: The credit duration for this Project is 8 years ending on December 31, 2020. This end date will be consistent for all subprojects including West Cadotte WGP and Bigstone WHR added in the 2015 calendar year. After the 8-year crediting, the Project will be re-assessed for additionality and, as circumstances permit may apply for a 5-year crediting extension period.

Reporting period: February 1, 2017 to March 31, 2017

Actual emissions reductions:

The total project emission reductions as a result of this project since January 1, 2013 (the project credit start date) are listed here:

1 January 2013 - 31 December 2013: 8,208 tonnes of CO2e

1 January 2014 - 30 September 2014: 7,900 tonnes of CO2e

1 October 2014 - 30 September 2015: 47,383 tonnes of CO2e

1 October 2015 – 31 January 2016: 28,717 tonnes of CO2e

1 January 2015 - 31 May 2016 (Bigstone WHR only):

1,855 tonnes of CO2e

1 February 2016 – 31 May 2016 (Genalta subprojects):

24,164 tonnes of CO2e

1 June 2016 – 30 September 2016: 24,362 tonnes of CO2e

1 October 2016 – 31 January 2017: 26,088 tonnes of CO2e

1 February 2017 – 31 March 2017: 13,334 tonnes of CO2e

Total – 182,011 tonnes CO2e

Applicable Quantification Protocol(s):

The quantification protocol used is the Quantification Protocol for Waste Heat Recovery Projects (Version 1.0, September 2007) published by Alberta Environment and Parks (AEP).


Protocol(s) Justification:

The source of fuel in all individual subprojects is a waste heat resource. For Judy Creek WHP, gas turbines are producing waste heat that is vented to atmosphere. This heat is recovered and utilized to generate electricity using an Organic Rankine Cycle unit. The Cadotte, Galloway and West Cadotte facilities are using gas that would otherwise be flared, with the heat of the flare wasted to atmosphere. The Bigstone WHR unit captures waste heat from operation of a sales compressor and transfers it to heat medium fluids in the plant. At all five facilities, the production of energy reduces GHG emissions through the avoidance of fossil fuel consumption to produce the equivalent amount of energy. The energy produced from the waste heat source is either utilized on site (as is the case for the Judy Creek WHP and Bigstone WHR) or supplied as electricity onto the grid (in the case of Cadotte, Galloway and West Cadotte WGP). The activities from these facilities are not business as usual and are considered additional.

Other Environmental Attributes:

This Project is not generating Renewable Energy Certificates (RECs) or other environmental benefits/attributes. There are no opportunities for potential double counting as this project is only registered with the AEOR.

Legal land description of the project or the unique latitude and longitude:

All five subprojects are located in Alberta. The Project locations are as follows: Cadotte, West Cadotte and Galloway WGP are located at the following site location: LSD: 10-28-84-18 W5M Latitude: 56.3137291 N Longitude: 116.7786604 W Judy Creek WHP is located at: LSD: 07-06-064-010 W5M Latitude: 54.5067970 N Longitude: 115.4978737 W Bigstone WHR is located in the northwest region of Alberta near the town of Fox Creek, Alberta. The exact location is at: LSD: 14-28-59-22 W5M Latitude: 54.135833 N Longitude: 117.240833 W

Ownership: Genalta Power Inc. and its wholly owned and controlled subsidiaries are the owners of the assets of the Cadotte, West Cadotte and Galloway WGP subprojects. The Judy Creek WHP subproject is a joint venture with Pengrowth Energy.


The Bigstone WHR unit is part of the Repsol Bigstone plant. Repsol Oil & Gas Canada Inc. is listed as the majority owner and operator of the Bigstone Gas Plant. There are four other parties that have a working interest in the site through joint venture (JV) arrangements. Each party is entitled to their share of offset credits according to their working interest. Blue Source is the project aggregator and is also the project proponent on behalf of the project participants, Genalta and Repsol.

Reporting details: The first reporting period for the Project was January 1, 2013 to December 31, 2013. The second and third reporting periods ended on September 30 of 2014 and 2015 respectively. This change was made to coincide with Genalta’s financial calendar. Therefore, the second reporting period covered nine months from January 1, 2014 to September 30, 2014 and the third reporting period covered 12-months from October 1, 2014 to September 30, 2015. The 4th – 7th reporting periods for the Genalta subprojects covered 4-month consecutive periods starting from 1-October-2015 with the 7th period ending on 31-January-2017. The Bigstone WHR subproject was added to the Project in December 2015. It’s first reporting period covered a 17-month period from January 1, 2015 to May 31, 2016. The addition of the subproject as well as the 2015 calendar year crediting was approved by Alberta Environment and Parks. The current reporting period is from 1-February-2017 to 31-March-2017 for all subprojects. All future crediting will involve a common start and end date for all subprojects.

Verification details: The verifier, Brightspot Climate Inc., is an independent third-party that meets the requirements outlined in the Specified Gas Emitters Regulation (SGER). An acceptable verification standard (e.g. ISO14064-3) has been used and the verifier has been vetted to ensure technical competence with this project type. This is the 1st verification carried out by the verifier for this project.

Project activity: This Project meets the requirements for offset eligibility as outlined in section 3.1 of the Technical Guidance for Offset Project Developers (version 4.0, February 2013). In particular: 1. The project occurs in AB: as outlined above;

2. The project results from actions not otherwise required by law and

beyond business as usual and sector common practices: Offsets being claimed under this project originate from a voluntary action. The Project activities (i.e. Waste Heat to Power, Waste Gas to Power and Waste Heat Recovery) occur at non-regulated facilities and are not required by law. The Project uses a government approved quantification protocol, which


indicates that the activity is undertaken by less than 40% of the industry and is therefore not considered to be sector common practice;

3. The project results from actions taken on or after January 1, 2002: as

outlined above; 4. The project reductions/removals are real, demonstrable, quantifiable

and verifiable: the Project is creating real reductions that are not a result of shutdown, cessation of activity or drop in production levels. The emission reductions are demonstrable, quantifiable and verifiable as outlined in the remainder of this plan.

5. The project has clearly established ownership: As described above

Genalta is the owner and operator of the WGP facilities and a joint partner of the Judy Creek WHP. Repsol is the majority owner and operator of the Bigstone Gas Plant with four other parties that have a working interest in the site through joint venture (JV) arrangements. Blue Source Canada is the project aggregator and is also the project proponent on behalf of the project participants, Genalta and Repsol.

6. The project will be counted once for compliance purposes: The Project credits will be registered with the Alberta Emissions Offset Registry (AEOR) which tracks the creation, sale and retirement of credits. Credits created from the specified reduction activity have not been, and will not be, created, recorded or registered in more than one trading registry for the same time period.


2 PROJECT CONTACT INFORMATION Project Participant Contact Information (Genalta Power)

Genalta Power Inc. Marina Spahlinger Regulatory Coordinator #600, 505 8 Ave SW Calgary, AB T2P 1G2 Phone: 403-237-9740 x298 Fax: 403-668-0883 Email: [email protected] www.genaltapower.com

Alternate: Meredith Conrad Business Development Account Manager #600, 505 8 Ave SW Calgary, AB T2P 1G2 Phone: 403-237-9740 Fax: 403-668-0883 Email: [email protected] www.genaltapower.com

Project Participant Contact Information (Repsol)

Repsol Oil & Gas Canada Inc. Greg Unrau Senior Environmental Specialist Phone: 403.701.8906 Email: [email protected]

Suite 2000, 888 - 3rd Street S.W. Calgary, Alberta Canada T2P 5C5 Web: http://www.repsol.com/ca_en/

Project Proponent Contact Information

Blue Source Canada ULC Tooraj Moulai Senior Engineer, Carbon Services Suite 700, 717 – 7th Avenue SW Calgary, AB T2P 0Z3 Phone: 403-262-3026 x259 Fax: 403-269-3024 Email: [email protected] Web: www.bluesource.com

Alternate: Kelly Parker Engineer, Carbon Services Suite 700, 717 – 7th Avenue SW Calgary, AB T2P 0Z3 Phone: 403-262-3026 x260 Fax: 403-269-3024 Email: [email protected] Web: www.bluesource.com

Verifier

Brightspot Climate Inc. Aaron Schroeder Lead Verifier Phone: (604) 353-0264 Email: [email protected]

Brightspot Climate Inc. 225 West 8th Avenue, Vancouver BC V5Y 1N3 Web: www.brightspot.co

This is the 1st verification carried out by the verifier for this project.

mailto:[email protected]







http://www.bluesource.com/


http://www.bluesource.com/


http://www.brightspot.co/


3 PROJECT DESCRIPTION AND LOCATION The Aggregated Waste Heat Recovery Offset Project (‘the Project’) includes four of Genalta's waste-to-

energy facilities and one Repsol waste heat recovery project aggregated into one offset project:

Cadotte Waste Gas to Power (WGP)

Galloway Waste Gas to Power (WGP)

West Cadotte Waste Gas to Power (WGP)

Judy Creek Waste Heat to Power (WHP)

Bigstone Waste Heat Recovery (WHR)

The Cadotte, Galloway and West Cadotte facilities are located at one site in the northwest region of

Alberta near Cadotte Lake, Alberta. The Judy Creek WHP facility is at Pengrowth’s Judy Creek Water

Complex located 52 km north of Whitecourt. The Bigstone WHR unit is installed at the Repsol Bigstone

plant also located in the northwest region of the Alberta near Fox Creek, Alberta.

The combined energy produced from these sites displaces grid electricity and fossil fuel combustions

resulting in reduced carbon emissions. Thus, these projects are eligible to generate carbon credits for sale

in the Alberta carbon offset market. Figure 1 below is a map of the site locations.

For the current crediting period the emissions reductions from the Cadotte and West Cadotte WGP site

as well as the Bigstone WHR site are quantified (See Section 4 for further details).

Figure 1- Map of WGP and WHP Facility Locations


3.1 Cadotte and West Cadotte WGP At Cadotte and West Cadotte waste gas that would have otherwise been flared, with the heat of

combustion lost to atmosphere, is instead captured and combusted to produce electricity. The waste gas

is sourced from two companies:

The Cadotte facility receives all its waste gas from Baytex Energy. Prior to May 2014 Husky was

supplying waste gas that generated 3 MW of power and Baytex Energy was supplying the

remainder of the gas for an additional 1 MW of power generation. However, Baytex Energy

acquired Husky's assets on May 2014 and since then all of the waste gas supplied to Cadotte

comes from Baytex Energy;

The West Cadotte facility receives waste gas from Baytex Energy for 12 MW of power generation

and from Shell Canada for 8 MW of power generation. Total power generation at this facility is 20

MW.

At both facilities, some of the power is used on-site and the rest is sent to the grid for sale to the Alberta

power pool. Baytex is an oil and gas extraction and production company (“supplier” or “producer”). The

waste gas is a solution gas that is extracted during oil production from the suppliers’ nearby oil wells. The

solution gas composition is approximately 85% methane, 10% CO2 and the remaining 5% contains traces

of hydrocarbons. Its Lower Heating Value (LHV) is approximately 30 MJ/m3 allowing for efficient and

sustained combustion without the addition of other fuels.

3.2 Bigstone WHR The Bigstone plant was built by Petromet Resources Ltd. in 1995 as a sweet gas processing facility. The

plant capacity is 80 mmcf/day of sales gas and 85 mmcf/day of raw gas. There are 4 inlet compressors and

2 Solar Turbine sales compressors. In 2009 a waste heat recovery unit was installed at the exhaust outlet

of the plant’s K-360 sales gas compressor. Captured waste heat was transferred via a heat exchanger to

heat medium fluids used at the plant. As a result, the demand on two natural gas fueled heaters was

significantly reduced saving natural gas consumption.

The exhaust flow from the K-360 sales gas compressor is approximately 20,215 kg/hr at a temperature of

527 °C for a total of 11 MM BTU/hr of heat output. The two natural gas heaters were supplying heat to

hot oil and glycol loops with a combined total heat load of 7.5 mm BTU/hr. Most of this heat is now

supplied by the WHR unit and any excess amount of heat produced by the sales gas compressor is diverted

through a dump stack. Where necessary to supplement the heat from the WHR units the natural gas

heaters are operated to meet the process medium fluid heat requirements.

The WHR unit operates as follows:

Setpoint temperatures are manually entered for target temperatures of both the hot oil and

glycol.

The WHR unit reads the inlet temperature of the fluid and will utilize varying amounts of waste

heat flowing through the system by controlling exhaust dampers.


The lower the inlet temperature of the fluids the damper controls will be in a more closed state.

The nearer the inlet temperatures are to the temperature setpoints the dampers are further

opened to reduce the amount of heat capture and to avoid overheating the fluids.

If the inlet temperatures are equal to or above the setpoint temperature than the waste heat is

fully diverted through an exhaust stack.

The natural gas heaters that are located downstream from the WHR unit may be operated to

supplement the heat supplied by the WHR unit.

If the WHR unit is unable meet the setpoint temperature, then the downstream natural gas

heaters will operate for supplemental heating to reach the desired target temperature.

Hot oil flow into the WHR unit is measured by the FIT-340 flow meter.

There is no flow meter measuring the glycol flow. However, the glycol pump has a rated output

of 126 gallons per minute (28.6 m3/hour).

4 PROJECT IMPLEMENTATION AND VARIANCES Highlighted below are the variances and, or, modifications made to this reporting period, as compared

to the Offset Project Plan dated 13 July 2016.

The following variances are applicable to the project since the previous reporting period (i.e. 1 October

2016 – 31 January 2017) and are summarized as follows:

(i) Bigstone WHR CH4 and N2O emission factor

The CH4 and N2O emission factors previously used for natural gas combustion in the Bigstone

WHR subproject were based on the “construction, commercial/ institutional, agricultural”

emission factors in the Carbon Offset Emission Factors Handbook version 1.0, March 2015.

However, the Bigstone plant is operating within the industrial sector and therefore, it is more

appropriate to use the emission factors under the “industrial” category in the Handbook. The

CH4 and N2O emission factors were updated to the “industrial” category to increase the

accuracy of the calculations and for transparency and completeness purposes.

(ii) Bigstone WHR Site Specific CO2 emission factor

Fuel gas composition data was obtained from the Bigstone gas plant to determine a site-

specific CO2 emission factor for natural gas combustion (SS B4 Generation of Heat) replacing

the previously used CO2 emission factor from the Carbon Offset Emission Factors Handbook

version 1.0, March 2015. This increases the accuracy of the emissions calculations and utilizes

a protocol flexibility for substitution of site specific emission factors for generic emission

factors. Additional detail provided below:

a. Application of protocol flexibility mechanism 3 – site specific emission factors can be

substituted for the generic emission factors. However, the methodology for the

generation of these emission factors must be sufficiently robust as to ensure


reasonable accuracy. The specific composition of the fuel gas used on site, sourced

from a gas chromatograph taking daily samples of the natural gas.

The methodology for the calculation of the fuel gas emission factor was sourced from

best practice guidance from the Canadian Association of Petroleum Producers (CAPP),

Calculating Greenhouse Gas Emissions (CAPP and Altus Environmental Engineering

Ltd, 2003) as shown below.

[(a+2b + 3c + 4d + 5e + f) × 44.01]/23.64 = kg CO2/m3 fuel burned

Where,

a to f = mole fractions of natural gas components (a=C1, b=C2, c=C3, etc).

44.01 = molecular weight of CO2

23.64 = volume in m3 occupied by 1 kmole of gas at STP (15°C and 101.3 kPa)

Using these site-specific analyses and best practice calculation method, the accuracy

of the emission factor increased.

b. Updates to Quantification Plan (Section 4.0 of OPP) – changes relative to the OPP

have been made in Section 6.0 of this report under (B4) Generation of Heat and

Power.

c. Updates to Monitoring Plan (Section 5.0 of OPP) – an additional table with

information on the gas composition data provided here:

Source/sink identifier or name: B1 Fuel Extraction and Processing B4 Generation of Heat and Power

Data parameter: CO2 Emission Factor for fuel gas at the Bigstone Gas Plant

Estimation, modeling, measurement or calculation approaches:

Fuel gas composition is measured by a gas chromatograph on-site using daily samples and the CO2 Emission Factor for fuel gas is calculated

Data unit: tonnes CO2/e3m3

Source/origin: Fuel gas for on-site use

Bigstone 14-28-059-22 W5 chromat_GAS Model: PLGC II S/N: 1312GC2339 Components Measured: N2, H2, CO2, C1, C2, C3, IC4, NC4, IC5, NC5, C6, C7

Monitoring frequency: Measured daily


Description and justification of monitoring method:

Composition of fuel gas is measured daily and increases the accuracy of the offset quantification by obtaining a site-specific emission factor for CO2

Uncertainty: Methane: +/-0.52% Ethane: +/-0.1% Other Components: +/-0.02%

Provide the details for any deviations for the protocol including the justification and rationale:

No deviation from the protocol. This approach utilizes the flexibility mechanism that permits use of site-specific emission factors in place of a generic emission factor.

d. Updates to Data Management and QA/QC at Repsol (Section 6.2 of OPP) –

information on the gas chromatograph maintenance and calibration are provided

here (i.e. Table 6 in OPP):

Project Specific Data

Meter ID Meter Model Maintenance Schedule

Calibration Schedule

Accuracy Rating

Fuel Gas Composition

Station Name: Plant Sales LSD: 14-28-59-22W5

PLGC II S/N: 1312GC2339

Once a month Once a month

Methane: +/-0.52% Ethane: +/-0.1% Other Components: +/-0.02%

The following variances are applicable to the project since the third reporting period (i.e. 1 October 2014

– 30 September 2015) and are summarized as follows:

(iii) Baytex Energy Non-Conserving Status

In the first two reporting periods the Baytex gas supplied to Cadotte making up the 1 MW

portion of generation was not credited. The non-conserving status of the gas could not be

confirmed for those two reporting periods. However, for reporting periods 3-7 the AER issued

letters confirming that all solution gas supplied from Baytex to Cadotte as well as all additional

solution gas delivered to the new West Cadotte facility has a non-conserving status. For this

reporting period the AER issued another letter on April 12, 2017 to confirm the non-

conserving status of the Baytex solution gas for the current reporting period February 1, 2017

to March 31, 2017. As such, power generated from these Baytex gas streams are included in

the quantification of emissions for this reporting period.

The total West Cadotte power generated is prorated based on the portion of gas that is

sourced from Baytex only, which is measured using the following meters:

Baytex gas into engines 1-3: Gas metered by M1 minus gas metered by M3


Baytex gas into engines 4-5: Gas metered by M3

Figure 2 below shows the gas metering schematic for the West Cadotte WGP facility.

Figure 2. West Cadotte Supplied Gas Metering Diagram

(iv) Updated Grid Emissions Factors

AEP released the Carbon Offset Emission Factors Handbook Version 1.0 in March of 2015. This

document contains updated emission factors for projects in the Alberta carbon offset system.

The handbook was accompanied with a memo from AEP indicating that the emission factors

are for use in all new projects and current projects are only required to use the updated

factors after receiving a crediting period extension. For the Project, the Cadotte, Galloway

WGP and Judy Creek WHP subprojects began crediting in 2013 and as current projects these

subprojects continue to use the same grid emissions factors. West Cadotte WGP was

commissioned in February 2015 and it was credited for the first time in the 1 October 2014 -

30 September 2015 reporting period. Its first reporting occurred after the release of the

Carbon Offset Emission Factors Handbook. Therefore, West Cadotte WGP is treated as a new

project requiring use of the updated emissions factors.

For Bigstone WHR, which was added to the aggregation pool in December 2015, the most

recent emission factors from the Carbon Emissions Handbook are used.


(v) Heater Emissions

The Cadotte compressor building is heated using a Catadyne MK24x24 5.8 kW natural gas

heater. The heater maintains an optimal temperature for effective operating conditions

during the winter months. This is the only equipment at the Cadotte WGP facility which uses

fuel gas from the utility during 6 months of the year (October - March). At 24 hr/day operation

its emissions are negligible at less than 5 tonnes of CO2e for the reporting period. At the West

Cadotte facility there is no usage of utility fuel gas as all heaters are electric powered.

Therefore, emissions from P9a Fuel Gas Consumption are not included in the project.

(vi) Trailer Propane Usage

A new trailer was built in Aug-2014 to support the expansion of the West Cadotte facility. This

trailer uses propane for heating during winter months, which is re-filled typically once a year.

Annual consumption of propane is between 1,200 – 1,500 litres resulting in negligible

emissions of 2.5 tonnes of CO2e per year. These emissions are not included in the project.

The following variances are applicable to the project since the first reporting period (i.e. 1 January 2013

– 31 December 2013) and are summarized as follows:

(vii) Shell Conserving Status

Within the registered Offset Project Plan July 2016, Galloway WGP is listed as one of the four

subprojects; however, Galloway’s eligibility to generate offset credits relies upon Shell Canada

(the gas supplier to Galloway) to hold a non-conserving status issued by the AER based on

Directive 060. This regulatory status was not confirmed for Shell in the previous reporting

periods, and therefore this subproject was removed from the offset project reporting period.

For this reporting period, the Galloway sub-project continues to be excluded as the regulatory

status remains unconfirmed. In addition, the power generated from Shell gas that is supplied

to the West Cadotte facility is also ineligible to create offset credits. As such, the following

changes to the offset project plan are applicable for this reporting period:

a. B11 Electricity Usage – Baseline emissions from the generation of electricity at the

Galloway WGP site are not quantified.

b. P9a Fuel Gas Consumption, P1 Fuel Extraction & Processing – The utility gas

consumption is used mainly for the pilot light at the Galloway flare, with some small

quantities going to the compressor buildings. Information provided on the Catadyne

heaters in the compressor buildings allow the emissions to be calculated and these

emissions are determined to be insignificant (See (iii) Cadotte Heater Emissions).

Therefore, emissions utility gas consumption is not included.

c. P9b Project Grid Consumption – Project emissions from the grid electricity

consumption at the Galloway site are not quantified.

d. All equations associated with the Galloway WGP SSs are removed and the equations

in Section 6 reflect these changes.


(viii) Judy Creek WHP Site Commissioning

The Judy Creek WHP facility was not officially commissioned by Genalta in the previous

reporting periods. For this reason and various operational issues that made it difficult to

obtain required information for the quantification and verification of GHG emissions at the

site, this subproject was removed. Genalta is continuing to work on the issues. As such, the

sub-project site will not be included in this reporting period. The following changes to the

quantification plan in the offset project plan are applicable for this reporting period:

a. B11 Electricity Usage – Baseline emissions from the generation of electricity at the Judy

Creek facility are not included.

b. P9c HFC-134a Leakage – Project emissions from the leakage of HFC-134a refrigerant used

within the Judy Creek WHP ORC are not included.

c. All equations (See Section 6) have been updated to reflect these changes.

5 REPORTING PERIOD For the purposes of this project report, the carbon dioxide equivalent emission reduction credits are

claimed for the reporting period 1 February 2017 to 31 March 2017.

6 GREENHOUSE GAS CALCULATIONS GHG emission reductions were calculated following the Quantification Protocol for Waste Heat Recovery

Projects version 1.0 (AEP, 2007). The activities and procedures outlined in the Offset Project Plan (dated

13 July 2016) provide a detailed description of the Project’s adherence to the requirements of the

quantification protocol. The formulas used to quantify greenhouse gas offsets for this reporting period by

the Project are listed below.

The following equations serve as the basis for calculating the emission reductions from the comparison of

the baseline and project conditions:

Emission Reduction = Emissions Baseline – Emissions Project

Emissions Baseline = sum of the emissions under the baseline condition.

Emissions Fuel Extraction and Processing = emissions under SS (B1) Fuel Extraction and Processing

Emissions Generation of Heat and Power = emissions under SS (B4) Generation of Heat and Power

Emissions Electricity Generation = emissions under SS (B11) Electricity Usage

Emissions Project = sum of the emissions under the project condition.

Emissions Unit Operation = emissions under SS (P9b) Unit Operation (Grid Electricity Consumption)


Emissions under SS (B1) Fuel Extraction / Processing1

Emissions of CO2 = FG x NEPCO2EF

Emissions of CH4 = FG x NEPCH4EF

Emissions of N2O = FG x NEPN2OEF

Where,

NEPCO2EF/NEPCH4EF/NEPN2OEF (tonnes/e3m3) = Emission factor for natural gas extraction and processing of

CO2, CH4, and N2O;

FG (e3m3) = Fuel gas consumed at the Bigstone plant for heating of the hot oil and glycol loops. Detailed

calculations under SS B4 Generation of Heat and Power

Emissions under SS (B4) Generation of Heat and Power

Emissions of CO2 = FG x NGCO2EF−Bigstone

Emissions of CH4 = FG x NGCH4EF

Emissions of N2O = FG x NGN2OEF

Where,

NGCO2EF (tonnes/e3m3) = Bigstone site-specific CO2 emission factor for natural gas

combustion;

NGCH4EF/NGN2OEF (tonnes/e3m3) = Natural gas combustion emission factor for CO2, CH4, and

N2O; the site-specific CO2 emission factor is based on on-site

fuel gas composition data

FG (e3m3) = Fuel gas consumed at the Bigstone plant for heating of the hot oil and glycol loops.

The volume of gas is determined based on an equivalent amount of energy required to generate the heat

utilized by the hot oil and glycol loops in the plant under the project condition. Using the setpoint

temperatures and average hourly temperature input readings from the WHR unit, the flow rates of the

hot oil and glycol and the specific heat capacities and densities of the fluids, the amount of energy

absorbed in the waste heat recovery process is calculated. The equivalent amount of energy required by

the natural gas heaters in the baseline is then determined by applying the efficiency factor of each heater.

Detailed calculations are provided below.

FG(e3m3) = (WHGlycol ÷ EffEG_Htr + WHHotOil ÷ EffHO_Htr) / NGHHV

1 Emission factors from Carbon Offset Emission Factors Handbook version 1.0, March 2015


Where,

EffEG_Htr (%) = Efficiency of Glycol Heater provided by manufacturer

EffHO_Htr (%) = Efficiency of Hot Oil Heater provided by manufacturer

NGHHV (MJ/m3) = Natural gas high heating value

WHHotOil (MJ) = Waste heat energy used to heat hot oil

WHGlycol (MJ) = Waste heat energy used to heat glycol

WHHotOil/WHGlycol = Q = m * Cp * ΔT ÷ 1000 MJ/kJ

Where,

Q (MJ) = heat energy required to change the temperature of the fluid mass by ΔT

ΔT (°C) = change in temperature of fluid:

If inlet temperature > setpoint temperature: ΔT = 0

If inlet temperature > outlet temperature: ΔT = 0

If inlet temperature ≤ outlet temperature: ΔT = (outlet temp – inlet temp)

Cp (kJ/kg.K) = heat capacity of fluid at mean temperature

m (kg) = mass of fluid = Flow rate * Hrs * ρ

Where,

Flow rateHot Oil = Hourly averaged metered parameter

Flow rateGlycol = Glycol pump rated normal flow rate specification

ρ (kg/m3) = density of fluid at median temperature (i.e. temperature mid-point between metered

inlet and outlet temperature)

Emissions under SS (B11) Electricity Usage

Emissions of CO2e = (ECadotte + EWest−Cadotte) x GDCO2eEF

Where,


GDCO2eEF (t CO2/MWh) = Grid electricity displacement emissions factor2 (See Table 1);

ECadotte (MWh) = Net electricity exported by Cadotte WGP;

EWest-Cadotte-Baytex (MWh) = Net electricity exported by West Cadotte WGP;

EWest-Cadotte-Baytex (MWh) = BWCPCT * EWest_Cadotte-ATCO

BWCPCT (% ) = Percentage of Total Monthly Gas that is Baytex Supplied;

BWCPCT (%) = BMGWest_Cadotte / TMGWest_Cadotte

BMGWest_Cadotte (GJ) = Baytex Monthly Gas Consumption obtained from Genalta metered data;

TMGWest_Cadotte (GJ) = Total Monthly Gas Consumption (includes Baytex + Shell) obtained from Genalta

metered data

Emissions under SS (P9b) Unit Operation (Grid Electricity Consumption)

Emissions of CO2e = (EBDCadotte + EBDWest−Cadotte) x GICO2eEF

Where,

EBDCadotte (MWh) = Grid electricity consumed at Cadotte WGP when onsite power is down;

EBDWest-Cadotte (MWh) = Grid electricity consumed at West Cadotte WGP when onsite power is down;

GICO2eEF (t CO2/MWh) = Grid intensity emissions factor3 (See Table 1);

2 For Cadotte WGP grid electricity displacement emissions factor is based on the AEP memorandum issued on December 20, 2011,” Notice of Change for Emissions Factor for Increased Grid Electricity Usage.” Available at: https://extranet.gov.ab.ca/env/infocentre/info/library/8429.pdf. The grid electricity displacement factor for West Cadotte WGP is based on the Carbon Offset Emission Factors Handbook version 1.0, March 2015. 3 For Cadotte WGP grid intensity emissions factor is based on the AEP memorandum issued on December 20, 2011,” Notice of Change for Emissions Factor for Increased Grid Electricity Usage.” Available at: https://extranet.gov.ab.ca/env/infocentre/info/library/8429.pdf. The grid emissions intensity factor for West Cadotte WGP is based on the Carbon Offset Emission Factors Handbook version 1.0, March 2015.

https://extranet.gov.ab.ca/env/infocentre/info/library/8429.pdf

https://extranet.gov.ab.ca/env/infocentre/info/library/8429.pdf


Table 1 - Emission factors used for Aggregated Waste Heat Recovery Offset Project for this reporting period

Parameter Relevant SS

Subproject that it applies

to

CO2 Emission

Factor

CO2 Emission Factor Source

CH4 Emission

Factor

CH4 Emission Factor Source

N2O Emission

Factor

N2O Emission Factor Source

CO2e Emission

Factor

CO2e Emission Factor Source

Natural gas

extraction and

processing

B1 Bigstone

WHR

0.133 tonnes /e3m3

Carbon Offset Emission Factors Handbook,

Version 1.0 March 2015

0.0026 tonnes /e3m3


Version 1.0 March 2015

0.000007 tonnes /e3m3

Carbon Offset Emission Factors

Handbook, Version 1.0 March 2015

n/a n/a

Natural gas

combustion B4

Bigstone WHR

2.112 tonnes /e3m3

Site-Specific 0.000037

tonnes /e3m3


Version 1.0 March 2015; Industrial

0.000033 tonnes /e3m3


Handbook, Version 1.0 March 2015; Industrial

n/a n/a

Grid Electricity

Intensity P9b

Cadotte WGP

n/a n/a n/a n/a n/a n/a 0.88

tonnes/MWh

Government of Alberta.

December 20, 2011

Memorandum

Grid Electricity

Displacement B11 n/a n/a n/a n/a n/a n/a

0.65 tonnes/

MWh

Grid Electricity

Intensity P9b

West Cadotte WGP

n/a n/a n/a n/a n/a n/a 0.64

tonnes/MWh


Handbook, Version 1.0 March 2015

Grid Electricity

Displacement B11 n/a n/a n/a n/a n/a n/a

0.59 tonnes/MWh


7 GREENHOUSE GAS ASSERTION The greenhouse gas assertion is a statement of the number of offset tonnes achieved during the reporting

period. The assertion identifies emissions reductions per vintage year and includes a breakout of

individual greenhouse gas types (CO2, CH4, N2O, SF6, HFCs, and PFCs) applicable to the Project and total

emissions reported as CO2e. The total in units of tonnes of carbon dioxide equivalent (CO2e) is calculated

using the global warming potentials (GWPs) referenced in the SGER.

Table 2 identifies the greenhouse gas assertion, containing the calculated number of offset tonnes

achieved, separated by each unique vintage year and GHG released.

Table 2 - Offset tonnes created by vintage year and GHG

February 1,

2017 - March

31, 2017

Greenhouse Gas (GHG) in tonnes CO2e

CO2 CH4 N2O PFCs HFCs SF6 CO2e Total

Baseline 312.54 9.18 1.66 0.00 0.00 0.00 13,012.11 13,335.49

Project 0.00 0.00 0.00 0.00 0.00 0.00 1.03 1.03

Reductions 312.54 9.18 1.66 0.00 0.00 0.00 13,011.08 13,334


8 OFFSET PROJECT PERFORMANCE Figure 3 shows the monthly trend of offset credits created from the start of project crediting beginning

on January 1, 2013 for all the subprojects and the sum of the aggregated project. There was a significant

increase in credit generation with the addition of the West Cadotte WGP site in February of 2015.

Figure 3 – Monthly Credits Created by each subproject

For the two-month reporting period covering 1-February-2017 to 31-March-2017 the West Cadotte WGP

facility showed an increase in offsets generated per month. This is attributed to increased supply of Baytex

solution gas to the facility. Power generation at the Cadotte facility showed a slight increase during these

months as the operation of the gas turbines improved after a period requiring frequent maintenance and

downtime.

The Bigstone WHR site averaged 162 tonnes CO2e/month for the current reporting period and monthly

credits ranged from 158 and 166 tonnes CO2e showing a decrease from the previous 4-month reporting

period. As winter months come to an end and temperatures increase heating requirements are reduced

at the Bigstone facility.

0.00

1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

6,000.00

7,000.00

8,000.00

9,000.00

Mo

nth

ly O

ffse

ts C

reat

ed

(tC

O2

e/m

on

th)

Month

Cadotte WGP Offsets (tCO2e/mo)

West Cadotte WGP Offsets (tCO2e/mo)

Bigstone WHR Offsets (tCO2e/mo)

Total Monthly Offsets (tCO2e/mo)


9 PROJECT DEVELOPER SIGNATURES I am a duly authorized corporate officer of the project developer mentioned above and have personally

examined and am familiar with the information submitted in this Offset Project Report including the

accompanying Greenhouse Gas Assertion on which it is based. Based upon reasonable investigation,

including my inquiry of those individuals responsible for obtaining the information, I hereby warrant that

the submitted information is true, accurate and complete to the best of my knowledge and belief, and

that all matters affecting the validity of the emission reduction claim or the protocol upon which it is based

have been fully disclosed. I understand that any false statement made in the submitted information may

result in de-registration of credits and may be punishable as a criminal offence in accordance with

provincial or federal statutes.

The project developer has executed this Offset Project Report as of the 15TH day of May, 2017.

Project Title: Aggregated Waste Heat Recovery Offset Project

Project Developer: Blue Source Canada

Signature: ___________________

Date: May 15, 2017

Name: Yvan Champagne

Title: President


10 STATEMENT OF PEER REVIEW This offset project report was prepared by Tooraj Moulai, Senior Engineer, Blue Source Canada and peer

reviewed by Kelly Parker, Engineer, Blue Source Canada. Although care has been taken in preparing this

document, it cannot be guaranteed to be free of errors or omissions.

Prepared by:

Peer reviewed by:

Tooraj Moulai Senior Engineer

Kelly Parker Engineer

15/05/2017 15/05/2017


11 REFERENCES Alberta Environment and Parks, 2013, Technical Guidance for Offset Project Developers - Version 4.0,

February 2013.

Alberta Environment and Parks, 2007, Quantification Protocol for Waste Heat Recovery Projects – Version

1.0, September 2007.

Alberta Energy Regulator, 2011, Directive 060: Upstream Petroleum Industry Flaring, Incinerating, and

Venting. [pdf] Calgary, Alberta: Energy Resources Conservation Board. Available at:

http://www.aer.ca/documents/directives/Directive060.pdf

Alberta Environment and Parks, 2012, “Notice of Change for Emission Factors for Increased Grid

Electricity Usage”, http://environment.alberta.ca/03851.html

Alberta Environment and Parks, 2015, "Carbon Offset Emission Factors Handbook Version 1.0 March

2015", http://aep.alberta.ca/climate-change/guidelines-legislation/specified-gas-emitters-

regulation/documents/CarbonEmissionHandbook-Mar11-2015.pdf

http://environment.alberta.ca/03851.html

http://aep.alberta.ca/climate-change/guidelines-legislation/specified-gas-emitters-regulation/documents/CarbonEmissionHandbook-Mar11-2015.pdf

http://aep.alberta.ca/climate-change/guidelines-legislation/specified-gas-emitters-regulation/documents/CarbonEmissionHandbook-Mar11-2015.pdf

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