Managing GHG EmissionsManaging GHG Emissions(Measure to Manage)( g )

DG ButlerDG ButlerAlliance Group Ltd

TopicsTopics

• Introduction to emissions trading scheme ETS

• AGL’s environment programme EMS• AGL s environment programme EMS

• Emissions profile since 2000 EP

• Utility key performance indicators KPI

• Energy efficiency & conservation EEC

• Where to next? XYZWhere to next? XYZ

Kyoto SpeakKyoto SpeakC b t• Carbon footprints

• Carbon neutral• Carbon tax• AAUs, CERs, RMUs

CP1 CP2• Food Miles• Carbon labelling

• CP1, CP2• Points of Obligation

• Emissions trading• EF+

• Pricing Carbon• LCA

• Sustainability • NZ Units• Participants• Free Allocation

NZ GovernmentNZ Government

DOMESTIC

INTERNATIONAL

NZ and AgricultureNZ and Agriculture• NZ is 0.2% of global emissions (of Kyoto countries)• Agriculture is 49% of NZ total emissions

Livestock emissions - methane - nitrous oxide

• Processing industry - carbon dioxide from electricity and fuels

NZ Greenhouse Gases by Sector in 2005

Industrial 6%

Waste2%

Agriculture48%

Energy44%

‘NZ Meat Inc ’NZ Meat Inc.Industrial Processes SectorIndustrial Processes Sector• 1 July 2010 - Electricity and fuel price increases.• Meat (and milk) processing are not ‘energy intensive’Meat (and milk) processing are not energy intensive

enough to qualify for free allocation of NZ Units.• ‘Protein meal production’ may be EITE. Free allocation

of NZUsof NZUs

Agriculture Sectorg cu u e Sec o• NZ Meat: 22 million tonnes @ $30/t = $660m p.a.*• Meat Processors are Participants in ETS. Not farmers.• Emissions factors for livestock set in regulations• 1 Jan 2011 – Voluntary reporting

*NB. Without transitional assistance by Free Allocation of Units

AGL Environmental ProgrammeAGL Environmental Programme

• Systems based

ISO 14001 EMS– ISO 14001 - EMS

– Enviro-Mark®NZ – Diamond

• Pollution Prevention

• Resource Use and Process Efficiencies

• Climate Change IssuesClimate Change Issues

AGL CO2 Emissions from Processing Energy Use

Nine Season Review (2000-2009)

• Total emissions (tonnes CO2) reduced by 10%Total emissions (tonnes CO2) reduced by 10%

• Production (Meat Equivalents) increased 20%

Combined:

E i i (k CO / ME) d d b 2 % hi– Emission rate (kg CO2 / t ME) reduced by 25% this

decade

AGLAGL CO2 Emissions from Processing Energy Use

AGL CO2 Em iss ions Rate: 00/01 - 08/09ne

ME

2 pe

r ton

kg C

O2

00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/0900/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09

Resource and Process Efficiency

Utilities Key Performance Indicator (KPI) weekly reporting– Electricity: GJ / t EFW

– Fuel: GJ / t FAP

– Water: L per SU

GHG emissions t CO e / t ME– GHG emissions: t CO2-e / t ME

• Presented to each plant as weekly, monthly, year to date, and annual trends,

• Targets set and monitored at each plant

KPI Report for the week ending Sat 24 Apr-10

SmithfieldSmithfield

Utility YTD KPI Status Trend

☺ Below target KPI

Ab t t KPI

Electricity (GJ/tonne EFW) 3.10 ☺Above target KPI

KPI lower than last week

KPI higher than last weekWater (litres/le su) 567 ☺

Fuel (GJ/tonne FAP) 3.07 ☺

Weekly Year to date

Electricity: Weekly KPI

EFW

Electricity: YTD KPI

EFW

Ener

gy K

PI, G

J/t E

Ener

gy K

PI, G

J/t E

1 5 9 13 17 21 25 29 33 37 41 45 49

WeekCurrent season Last season

1 5 9 13 17 21 25 29 33 37 41 45 49Week

Current season Last season

Boiler fuel: YTD KPIBoiler fuel: Weekly KPIEn

ergy

KPI

, GJ/

t FA

P

Ener

gy K

PI, G

J/t F

AP

1 5 9 13 17 21 25 29 33 37 41 45 49

WeekCurrent season Last season1 5 9 13 17 21 25 29 33 37 41 45 49

Week

E

Current season Last season

Water: Weekly KPIe

suWater: YTD KPI

e su

Wat

er K

PI, l

itres

/le

KPI

, litr

es w

ater

/le

1 5 9 13 17 21 25 29 33 37 41 45 49Week

W

Current season Last season

1 5 9 13 17 21 25 29 33 37 41 45 49

WeekCurrent season Last season

CO2 emissions: YTD KPI

e M

.E.

CO2 emissions: annual KPI

e M

.E.

KPI

, kg

CO

2/ton

ne

KPI

, kg

CO

2/ton

n

1 5 9 13 17 21 25 29 33 37 41 45 49Week

Current season CO2 electricity Current season CO2 fuelLast season CO2 fuel Last season CO2 electricty

00/0

1

01/0

2

02/0

3

03/0

4

04/0

5

05/0

6

06/0

7

07/0

8

08/0

9

YearCO2 - fuel CO2 - electricity

Energy ProjectsEnergy ProjectsEECA Audits – Level 3

– Implementing recommendations– $1.3m project costs for $1.4m p.a. savings

Refrigeration Projects– $7.2m costs for $3.9m p.a. savings

Process Reviews

GHG Footprints p

Protein Meal ProductionProtein Meal Production

• Qualifying for free allocation of NZ Units as EITE

industrial processindustrial process.

• All renderers provided energy, production and revenue data for three financial yearsdata for three financial years.

• Govt assessing NZ average emissions intensity and may

set allocative baseline. (Ave t CO2/t MBM)

R d bl t l f NZ U it t f MBM• Renderers able to apply for NZ Units per tonne of MBM.

• Partial compensation for increased energy costs.p gy

Where to Next?Where to Next?I t l t i• Inter-plant comparisons

• Capital development programme• Processing logistics• Processing logistics• Off-setting energy cost increases due to NZETS• Qualifying for free NZ Units from ‘protein meal’• Qualifying for free NZ Units from protein meal

production• Linking to on-farm emissions monitoringg g• NZ ETS – Agriculture

1 Jan 2011 – Voluntary reporting1 J 2012 M d t ti1 Jan 2012 – Mandatory reporting1 Jan 2015 – Full participation

• First formal review of ETS during 2011g

Thank You