NuVista Waste Heat Recovery Aggregated Offset Project

NuVista Waste Heat Recovery Aggregated Offset Project

June 2018

Offset Project Plan Form:


Project Developer:

NuVista Energy Ltd.

Prepared by:

Bluesource Canada ULC

Date:

June 21, 2018


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Table of Contents

1.0 Contact Information .............................................................................................. 3 2.0 Project Scope and Site Description .......................................................................... 3

2.1 Project Description ................................................................................................ 5 2.2 Protocol ............................................................................................................. 12 2.3 Risks ................................................................................................................. 13

3.0 Project Quantification .......................................................................................... 13 3.1 Inventory or Sources and Sinks ............................................................................ 13 3.2 Baseline and Project Condition .............................................................................. 15 3.3 Quantification Plan .............................................................................................. 16 3.4 Monitoring Plan ................................................................................................... 18 3.5 Data Management System.................................................................................... 19

4.0 Project Developer Signature ................................................................................. 20 5.0 References ......................................................................................................... 21

List of Tables

Table 1: Project Contact Information ...................................................................................... 3 Table 2: Project Information .................................................................................................. 3 Table 3. Exhaust Temperature of NuVista Compressor Units ...................................................... 6 Table 4. Specified gas emissions anticipated for each reporting period ...................................... 16 Table 5. Emission factors used for the Project ........................................................................ 18

List of Figures

Figure 1. Simplified PFD of the baseline condition for the Project ................................................ 7 Figure 2. Process Flow Diagram for Waste Heat Recovery System (E-420) at Bilbo ....................... 8 Figure 3. Process Flow Diagram for Waste Heat Recovery System (E-425) at Elmworth................. 9 Figure 4. Process Flow Diagram for Waste Heat Recovery System (E-426) at Elmworth............... 10 Figure 5. Process Flow Diagram for Waste Heat Recovery System (E-427) at Elmworth............... 11 Figure 6. Process flow diagram for the project condition of WHR (adapted from Quantification

Protocol for Waste Heat Recovery (version 2.0, June 2018)) ..................................... 14


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1.0 Contact Information

Table 1: Project Contact Information

Project Developer Contact Information Additional Contact Information

NuVista Energy Ltd

NuVista Energy Ltd.

Reid Tannahill

Mark Lansing

2500, 525 8th Ave SW

Calgary, Alberta T2P 1G1

403-781-2400 403-538-1956

www.nuvistaenergy.com

[email protected] [email protected]

Authorized Project Contact (if applicable)

Blue Source Canada ULC

Tooraj (TJ) Moulai

1605, 840-7th Avenue SW

Calgary, AB, T2P 3G2

(403) 262-3026 (ext. 259)

www.bluesource.com

[email protected]

2.0 Project Scope and Site Description

Table 2: Project Information

Project title NuVista Waste Heat Recovery Offset Project (“the Project”)

Project purpose and

objectives

The Project involves the aggregation of four waste heat recovery (WHR)

systems at two NuVista facilities. The WHR systems capture exhaust

heat from compressors and use it to heat medium fluids at each facility

avoiding fuel consumption by natural gas fired heaters that were

previously the source of the heat supply and thereby resulting in

emissions reductions. The four WHR systems include:

1. Bilbo Compressor (K 605 Unit – E-420)

2. Elmworth (K 603 Unit – E-425)

http://www.nuvistaenergy.com/


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The operation start date for each WHR system are as follows:

Bilbo Compressor (K 605 Unit) May 1, 2017

Elmworth (K 603 Unit) August 19, 2016

Elmworth (K 604 Unit) July 24, 2017

Elmworth (K 605 Unit) July 24, 2017

Offset crediting

period

The offset crediting period for the Project is July 3, 2018 – July 3, 2026.

NuVista’s facilities are exempt from the carbon levy under section

15(1)(d) of the Climate Leadership Act until December 31, 2022. The

Project will not be eligible to create credits past this date as per the

carbon levy alignment requirements for projects developed using the

new Waste Heat Recovery Protocol (version 2.0, June 2018). Therefore,

the functional crediting end date for this Project is December 31, 2022

for a total duration of four years, five months and 28 days.

Estimated emission

reductions/capture/se

questration

The estimated greenhouse gas emission reductions from the Project are

as follows:

3 July 2018 – 31 January 2019 3,000 tonnes of CO2e

1 February 2019 – 31 December 2019 4,600 tonnes of CO2e

1 January 2020 – 31 December 2020 5,000 tonnes of CO2e



Total: 22,600 tonnes of CO2e

Unique site identifier All four subprojects are located in Alberta. The Project locations are as

follows:

Bilbo compressor site location (Unit K605):

LSD: 03-36-065-06W6

Latitude: 54.664751 N

Longitude: 118.771623 W

Elmworth site location (Unit K603, K604, K605):

LSD: 08-10-068-08W6

Latitude: 54.868908 N


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Longitude: 119.119685 W

Project boundary The Project involves capture of waste heat via heat exchange systems

installed on four compressor units at two NuVista compressor station

sites. The captured heat is used to heat medium fluids at the facility and

result in avoidance of fuel consumption by natural gas fired heaters at

each site.

The operational boundaries of the Project are the compressor units, the

heat exchange and capture systems, medium fluid pumps and metering

equipment that determines temperature and flow rate of the medium

fluids.

Geographically, the two compressor stations, Bilbo and Elmworth are

located in the north-western part of Alberta and between 50 – 70 km

south of the city of Grande Prairie, AB.

Ownership NuVista Energy Ltd. (herein referred to as ‘the Proponent’) is the sole

owner of the compressor stations and the WHR projects.

2.1 Project Description

The Bilbo and Elmworth compressor stations were built by NuVista Energy Ltd. in 2014 and 2015,

respectively. These compressor stations were built to support NuVista’s production of natural gas

from the Wapti Montney formation. An Additional Compressor was added to the Bilbo Facility in

2017 to bring the gross throughput capacity of 85 MMcf/d. The Waste Heat Recovery system was

installed during this 2017 capacity expansion. The Elmworth facility had an initial throughput

capacity of 40 MMcf/d, which was expanded to 85 MMcf/d in 2016. There is one compressor unit,

K-605, at the Bilbo station which has a Heat Recovery Unit attached (E-420). At Elmworth there

are three compressor units including K-603, K-604 & K-605 with Heat Recovery Units Attached

(Heat Recovery Units labelled E-425, E-426 and E-427, respectively). Waste heat recovery units

were installed at the exhaust outlet of these four compressors. Captured waste heat is transferred

via heat exchanger to heat medium fluids used at the plant. As a result, operation of natural gas-

powered heaters previously used for heating the fluids has been reduced significantly or no longer

need to be operated. The medium fluids being heated are petrotherm (“hot oil”).

The table below includes some of the key parameters of each compressor in the Project:


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Table 3. Exhaust Temperature of NuVista Compressor Units

Compressor Temperature of

Exhaust (°C)

K-605 443.76

K-603 477.80

K-604 484.59

K-605 479.43

Prior to the installation of the WHR systems the heaters were supplying heat to the medium fluids

at a maximum rate of 8.0 mm BTU/hr at each site (4.0 mm BTU/hr per burner unit). The four

compressors were releasing all the generated waste heat through an exhaust stack. Most of the

heat required for the medium fluids is now supplied by the WHR units while the heaters will be

used at a significantly lower demand to supplement any additional heat required to meet the

setpoint temperature.

The WHR units operate as follows:

• Setpoint temperatures are manually entered for target temperatures of the medium fluids.

• 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.

• The flow of the medium fluids into the WHR units are measured by individual flow meters.

Each WHR unit has a life expectancy of 15-20 years well beyond their crediting duration, which is

about 4.5 years. The pre-project and post-project conditions are depicted in the figures below.


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Figure 1. Simplified PFD of the baseline condition for the Project

The Project reduces greenhouse gas emissions through a reduction in natural gas combustion. The

capture and use of the waste heat from the NuVista compressors displaces the consumption of

natural gas to generate the equivalent amount of heating.


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Figure 2. Process Flow Diagram for Waste Heat Recovery System (E-420) at Bilbo


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Figure 3. Process Flow Diagram for Waste Heat Recovery System (E-425) at Elmworth


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2.2 Protocol

The Project involves an aggregation of four waste heat recovery units across two NuVista sites

in northwest Alberta. Therefore, the applicable quantification protocol is the Quantification

Protocol for Waste Heat Recovery Projects (Version 2.0, June 2018). This is justified as the

activities involve the capture and utilization of waste heat that was previously unused and

released to the atmosphere. The captured waste heat is used to heat medium fluids at the

NuVista compressor stations thereby avoiding fuel consumption by natural gas-powered heaters

resulting in GHG reductions.

The project meets the requirements of the protocol as follows:

1. The heat collected was not previously being used in the baseline either in a passive or an

active manner, as confirmed by historical operating practices at the facility that is the

source of the waste heat. Projects that are importing industrial heat that was reported

as a product in the compliance report of a regulated facility must account for the

emissions based on the established benchmark for industrial head and do not need to

confirm historical practices. For projects at greenfield sites, the project proponent must

demonstrate that the incorporation of waste heat recovery equipment is not standard

practice for that greenfield application.

The waste heat at the NuVista Bilbo and Elmworth compressor stations was being released

through the exhaust system and therefore was not being used in a passive or active manner.

Thus, the capture of this heat is the only source of energy to the waste heat recovery units and

does not have to be accounted for through a supplementary source. The incorporation of waste

heat recovery equipment is not standard practice for compressor station greenfield applications.

2. The protocol is only applicable to projects that include the addition of heat

exchangers/heat transfer equipment to recover thermal energy that was previously

wasted. Projects that recover waste heat and subsequently convert the waste heat into

electricity through organic Rankine cycle technologies, thermoelectric processes or other

waste heat to power technologies are also eligible to apply this protocol. Projects that

install new equipment to generate electricity through the combustion of natural gas,

solution gas associated with oil production, or other waste gas streams that were

previously vented, flared, or incinerated are not eligible under this protocol, except

where the fossil fuel combustion equipment is used to provide supplemental heat/power

(as quantified under P4 as a source of project emissions) or back-up the operation of the

core waste heat recovery project equipment. […]

The Project uses heat exchangers/heat transfer equipment to recover thermal energy that was

previously being released through the exhaust system.

3. If the project configuration uses a refrigerant that has a published global warming

potential (e.g. such as HFC-134a) as part of the waste heat recovery equipment, the

proponent must provide documentation to demonstrate that no refrigerant leaks have

occurred (e.g. no refrigerant was added to the refrigerant loop and no refrigerant

purchases were made). If a refrigerant leak has occurred, the project proponent must

include those GHG emissions (mass refrigerant leaked times global warming potential) in

the project emissions calculations under unit operation.

The Project does not use refrigerant in the waste heat recovery process.


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4. The quantification of reductions achieved by the project is based on actual measurement

and monitoring (except where indicated in this protocol) as indicated by the proper

application of this protocol;

For each of the four WHR subprojects the inlet and outlet temperatures of the heat mediums

flowing through the WHR unit are continuously recorded. The change in temperature (ΔT) of the

fluids is used to model the operation of the natural gas fueled heaters in the absence of the

project.

5. The project must meet the requirements for offset eligibility as specified in the

applicable regulation and guidance documents for the Alberta Offset System.

The Project meets the requirements for an emissions offset project in Part 2 of the Standard for

Greenhouse Gas Emission Offset Project Developers (Version 1.0, December 2017).

No flexibility mechanisms were used in this project.

2.3 Risks

There is risk of operational failure where the equipment that utilizes the waste heat resources (i.e.

the heat exchanger) malfunctions and the heat supplied must be released or wasted as it would

have been in the baseline condition. There is also a risk that the compressor units are down due to

maintenance resulting in no source of waste heat energy. Under these scenarios the natural gas-

powered heaters located downstream from the WHR units are triggered to operate to ensure the

medium fluids receive the heating they require. The metered inlet and outlet temperature readings

of the medium fluids entering and leaving the WHR units will capture the data showing the times

WHR unit was down and waste heat was not transferred to the fluids. In these scenarios there is an

increase in GHG emissions as the use of the natural gas-powered heaters will increase emissions

from natural gas consumption and the offset credits generated will be reduced or zero during these

times.

3.0 Project Quantification

3.1 Inventory or Sources and Sinks

The Quantification Protocol for Waste Heat Recovery Projects (version 2.0, June 2018) contains

a list of baseline and project sources and sinks (SSs) that were deemed applicable for projects

developed according to the protocol. The SSs for the project are identified in Figure 2, below.


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Figure 6. Process flow diagram for the project condition of WHR (adapted from

Quantification Protocol for Waste Heat Recovery (version 2.0, June 2018))

Calculating the emissions reductions requires only determining the baseline emissions. Project

emissions are not calculated because any consumption of natural gas by the heaters is functionally

equivalent with the baseline. The following equations were selected and apply to this emissions

offset project based on the Quantification Protocol for Waste Heat Recovery Projects (version 2.0,

June 2018):

Emission Reduction = Emissions Baseline

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

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

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

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

Processing

At the Bilbo and Elmworth NuVista sites, emissions from the extraction and processing of natural

gas used by the heaters in the baseline condition are calculated. The volume of gas is determined

based on an equivalent amount of energy required to generate the heat utilized by the medium

fluids at the compressor stations under the project condition. Using average hourly temperature

input and output readings from each WHR unit, the flow rates of medium fluids 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.


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

and Power

Emissions from combustion of natural gas to supply heat to the medium fluids are calculated in the

baseline condition. The volume of gas is determined based on an equivalent amount of energy

required to generate the heat utilized by the medium fluids used in the compressor stations under

the project condition. Using average hourly temperature input and output readings metered from

the WHR unit, the flow rates of the medium fluids 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.

3.2 Baseline and Project Condition

Prior to the installation of the WHR systems, the compressor units were operating with all heat

energy generated being released to the atmosphere via an exhaust stack. Natural gas fired heaters

were being operated for the heating of the medium fluids at each compressor station.

In the project condition, the WHR units reduce greenhouse gas emissions through a reduction in

natural gas combustion. The capture and use of the waste heat from the compressors displaces

fuel consumption by the natural gas-powered heaters. There are no project emissions quantified

for this Project. If the WHR systems are down the natural gas heaters would be operated in place,

however, these heaters would have been used in the baseline condition nonetheless and therefore,

their emissions are considered functionally equivalent with the baseline.

Only one baseline scenario is identified where the compressor units are operated without any

capture and utilization of waste heat occurring.

Table 4 provides an estimate of the specified gas emissions generated in the baseline condition if

the emissions offset project is not carried out. If the project is not carried out there would be no

removal of emissions from the atmosphere occurring. These estimates are separated by each

unique vintage year and GHG released. The first crediting period for the Project will cover July 3,

2018 to January 31, 2019.


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Table 4. Specified gas emissions anticipated for each reporting period

Reporting Period tCO2 tCH4 tN2O tCO2e

Total

(tonnes

CO2e)

3 July 2018 - 31

January 2019 3,768 4.46 0.068 0 3,000

1 February 2019 –

31 December 2019 4,445 5.26 0.080 0 4,600

1 January 2020 –

31 December 2020 4,831 5.71 0.087 0 5,000

1 January 2021 –

31 December 2021 4,831 5.71 0.087 0 5,000

1 January 2022 –

31 December 2022 4,831 5.71 0.087 0 5,000

ALL YEARS 22,707 26.85 0.407 0 22,600

3.3 Quantification Plan

This project quantifies GHG emission reductions according to the Quantification Protocol for Waste

Heat Recovery (version 2.0, June 2018). Section 3.1 of this plan provides a description of the

emissions sources included in the Project and how they are calculated. Project emissions are not

calculated because any consumption of natural gas by the heaters is functionally equivalent with

the baseline. The following section gives a sample calculation for quantifying GHG emission

reductions from the Project.

NuVista’s facilities are exempt from the carbon levy under section 15(1)(d) of the Climate

Leadership Act until December 31, 2022. The Project will not be eligible to create credits past this

date as per the carbon levy alignment requirements for projects developed using the Quantification

Protocol for Waste Heat Recovery (version 2.0, June 2018). Therefore, the crediting end date for

this Project is December 31, 2022, and levied emissions reductions are not considered in the

Project calculations.

Emission Reduction = Emissions Baseline

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

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

Processing

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

Power

Emissions under SS (B1) Fuel Extraction / Processing


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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 Bilbo and Elmworth compressor stations for heating of the

medium fluids. 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

Emissions of CH4 = FG x NGCH4EF

Emissions of N2O = FG x NGN2OEF

Where,

NGCO2EF/NGCH4EF/NGN2OEF (tonnes/e3m3) = Natural gas combustion emission factor for CO2, CH4, and

N2O;

FG (e3m3) = Fuel gas consumed at the Bilbo and Elmworth compressor stations for heating of the

medium fluids.

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

the heat utilized by the medium fluids in the Bilbo and Elmworth compressor stations under the

project condition. Using the average hourly metered temperature input and temperature output

from the WHR unit, the flow rates of the medium fluids 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) = (WHHotOil ÷ EffHO_Htr) / NGHHV

Where,

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

WHHotOil = 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 <= setpoint 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,


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Flow rateHot Oil = Hourly averaged metered parameter

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

metered inlet and outlet temperature)

Table 5. Emission factors used for the Project

Parameter Relevant SS

CO2 Emission

Factor

CH4 Emission Factor

N2O Emission

Factor

CO2e Emission

Factor

Emission Factors Source

Natural gas

extraction and

processing

B1 0.133 tonnes /e3m3

0.0026 tonnes /e3m3

0.000007 tonnes /e3m3

n/a Carbon Offset Emission

Factors Handbook, Version 1.0 March

2015 Natural gas

combustion B4

1.918 tonnes /e3m3

0.000037 tonnes /e3m3

0.000033 tonnes /e3m3

n/a

3.4 Monitoring Plan

Source/sink identifier or name: B1 Fuel Extraction and Processing

B4 Generation of Heat and Power

Data parameter: Natural gas that would have been consumed

in the baseline condition to generate heat

that is supplied in the project condition by

the WHR units at the Bilbo and Elmworth

compressor stations.

Estimation, modeling, measurement or

calculation approaches:

The temperature differential (ΔT) of the WHR

unit based on the metered inlet and outlet

temperatures of the hot oil fluid and the flow

rate of the fluids is determined. This ΔT

value as well as the specific heat capacities

and the densities of the fluids are used to

calculate the energy absorbed by the fluids

during operation of the WHR unit.

Data unit: e3m3

Source/origin: Metered temperature

readings from Hot Oil

fluid going into and

out of WHR unit.

Description of fluid

Specific Heat

Capacity and Density

Engineering design

documents for Bilbo

and Elmworth

compressor stations


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of Hot Oil Fluids

Monitoring frequency: Continuous

Description and justification of

monitoring method:

Most accurate method for determining

parameter

Uncertainty: +/-0.25%

Provide the details for any deviations

for the protocol including the

justification and rationale:

Temperature readings from the hot oil fluids

and the hot oil flow are recorded

continuously. This data is provided as hourly

averages and is the most accurate method

of measuring this parameter.

3.5 Data Management System

In general, the data control processes employed for this Project consist of manual or electronic

data capture and reporting, and manual entry of monthly totals or average values into a

Quantification Calculator developed by Blue Source Canada ULC. For monitoring and quality

assurance purposes, the quantification methods and formulas used in the Quantification Calculator

have been reviewed on behalf of the project participants.

Each of the WHR units’ temperature data points obtained from NuVista originates from a field

instrument at either the Bilbo or Elmworth compressor stations. These instruments and associated

wiring systems are managed by local maintenance personnel as part of NuVista’s Asset

Management program and industry best practices.


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5.0 References

Alberta Environment and Parks, 2018, Quantification Protocol for Waste Heat Recovery Projects –

Version 2.0, June 2018.

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://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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