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					Air & Waste Management Association
 Conducting a Greenhouse Gas
  (GHG) Inventory: Why Every
Company Should Complete One!

                      Jerry P. Bauer
                      816-822-3527



              November 14, 2007
GHG Inventory
Before starting,
Survey says……….


 A) Global warming is the most serious threat facing the
    planet and must be addressed regardless of cost and
    inconvenience.
 B) Global warming is a moderate problem that should be
    addressed but only if costs are not prohibitive and
    lifestyles not severely impacted.
 C) Is a hoax.
 D) Not sure/undecided.
    Conducting a GHG Inventory
Should be Non-Controversial
       Whether you are an “a, b, c, or d”….

Conducting a GHG inventory & publishing data
        …Is wise policy
        …Particularly for a publicly traded company
        …Is not a political statement
        …Does not require reducing GHG emissions
Reasons for Conducting a GHG Inventory

    1. The Public and Investment
      Community are demanding it!
Reasons for Conducting a GHG Inventory


2. Assess companies
   liabilities/assets
   going forward.
Reasons for Conducting a GHG Inventory

   3.May  be beneficial if and when
     allowances are given out under a
             “cap and trade”.
  CO2
  Allowances              $
Reasons for Conducting a GHG Inventory

  4.   Some companies are reducing
       GHG emissions and not
       documenting the reductions.
  Investment Community Rankings
CERES-
• Coalition of investors, environmental groups, and other
  public interest organizations.
• Influences $ 3.0 Trillion in Investment Assets
• Published a report in March 2006, “Corporate
  Governance and Climate Change: Making the
  Connection”
• Rated Companies on “performance” related to GHG
  emissions and climate change
The
      Grades          # 1
            Who got A s?


• Dupont (85 out of 100)

• BP (90)
  The Grades
         Who got F s?
• Williams (3 out of 100)

• UAL (3)

• ConAgra (4)
The Grades



     Who got        ?



    •Exxon Mobil (35)
  Investment Community Rankings
     How to Get a Failing Grade
• Don’t Conduct a GHG Inventory!
• Don’t Report GHG Emissions!
Investment Community Rankings

How to Get a Passing Grade
                             • Absolute minimum
                               requirement: conduct a
                               GHG inventory and
                               publish the data!

                             • Aggressive reduction
                               targets not necessary.
    What is a GHG Inventory?
• Organization’s GHG emission sources,
  quantities, sinks, and removals.
• Should cover direct and indirect emissions
• Sinks include forrestration and sequestration (if
  applicable)
            Green House Gases
                 Inventory Protocol
In accordance with:
ANSI/ISO/NSF 14064-1 Greenhouse Gases- Part 1:
  Specification with Guidance at the Organizational Level
  for Quantification and Reporting of GHG Emissions and
  Removals

• World Resource Institute (WRI) Greenhouse Gas
  Protocol- A Corporate Accounting and Reporting
  Standard
                     GHGs
    What needs to be Covered in the Inventory

• Carbon dioxide, CO2
• Methane, CH4
• Nitrous Oxide, N2O
• Hydrofluorocarbons (HFCs) and Chlorofuorocarbons
  (CFCs) (covers 13 chemicals)
• Perfluorocarbons, PFCs (covers 7 chemicals)
• Sulfur Hexafluoride, SF6
     Not All GHGs are Equal
Global Warming Potentials for Common GHGs
                       Global Warming
     Greenhouse Gas       Potential
 Carbon Dioxide              1.0
 Methane                      21
 Nitrous oxide, N2O          310
 HFC 134a                  1,300
 Sulfur hexafluoride       23,900
        Sample GHG Calculation
Example Calculation- Converting to CO2-e

                    Emissio       Global     Metric Tons
      GHG             ns         Warming       CO2-e
                    (Metric      Potential
                     Tons)
 Carbon              10,000          1         10,000
 Dioxide
 Methane                 500        21         10,500
 HFC 134a                 1.0      1300         1300
 Sulfur                  0.06     23,900        1434
 hexafluoride
                   Totals                      23,234
Organizational Boundaries
    • Identifies which GHG emissions corporation is
      responsible for

    • Complex with fractional ownership/ different
      owner than operator
    Organizational Boundaries
Illustration of Organizational Boundary Determinations
               Operational Boundaries
Define scope of GHG Emissions
• Scope 1- Direct GHG Emissions*
• Scope 2- Electricity Indirect Emissions*
• Scope 3- Other Indirect Emissions#


* =Mandatory reporting under ISO
# =Optional reporting under ISO
Scope 1 Direct Emissions

• Combustion Sources
• Company owned vehicles
• Decomposition of coal, wood, or solid waste.
• Leaking valves and flanges in natural gas
  transmission
• CFC and HFC losses from refrigeration
  equipment
• Sulfur hexafluoride losses from electrical
  equipment
Scope 2 Indirect Emissions


        • Purchased electricity

        • Purchased steam/chilled water
    Scope 3 Indirect Emissions
•   Transportation of purchased material or goods (such
    as coal deliveries by rail car and fuel oil delivery by
    truck)
•   Employee Business Travel
•   Employees commuting to and from work
•   Transportation of waste from the company
Identifying and Calculating GHG Emissions
     1.   Identify sources
     2.   Select calculation approach
     3.   Collect data and emission factors
     4.   Calculate emissions from sources
     5.   Convert to CO2 equivalents
     6.   Summarize into Scope I, Scope 2, and Scope 3
          Emissions
  Combustion Emission Factors
For those that love
 chemistry…


Stoichometry
    Combustion Emission Factors
               STOICHEMETRY
• Natural gas is about 95% methane
• CH4 + 2 02 > CO2 + 2 H2O
• Assume 99.9% of natural gas is burned
• Therefore, burning 1 volume of natural gas
  produces 0.95 volume of CO 2
• Use ideal gas law to get density of CO 2 (0.11
  lbm/cu ft)
  Combustion Emission Factors
A typical house with a $200/month heating bill
• Assume the cost of natural gas is $8.00/thousand cubic
   feet (MCF)

CO2 Emissions
$200/month x MCF/$8.00 x 1000 CF/MCF x 0.95 CH 4/1
  natural gas x 0.11 lb CO2/ cu ft CO2 x metric ton/2204 lbs

= 1.1 metric ton of CO2
     Combustion Emission Factors
     For those not that found of chemistry……

1.   “Calculation Tool for Direct Emissions From Stationary
     Combustion”
2.   “Technical Guidelines- Voluntary Reporting of
     Greenhouse Gases”, Office of Policy and International
     Affairs, US DOE. (watch for typos!)
3.   “Discussion Paper for a Natural Gas Transmission and
     Distribution GHG Reporting”, WRI
  Combustion Emission Factors
For those not that found of chemistry Common Factors
                           Helpful CO2 Combustion Emissions Factors

                                            Emission     Emission Factor Units
                    Process/Fuel             Factor

     Coal Combustion

          Anthracite                         102.58         kg CO 2 /MMBtu

          Bituminous                          92.53         kg CO 2 /MMBtu

          Sub-bituminous                      96.12         kg CO 2 /MMBtu

          Lignite                             95.47         kg CO 2 /MMBtu

     Natural Gas                             119.90    lbs CO2 /1000 cf

                                              52.80     metric tons CO 2 /Billion
                                                                  Btu

     Aviation Gasoline                        18.15          lb CO 2 /gallon

     Diesel (No. 1 and No. 2)                 22.15          lb CO 2 /gallon

     Gasoline                                 19.36          lb CO 2 /gallon

     Jet Fuel (Kerosene)                      20.88          lb CO 2 /gallon

     Fuel Oil (No. 5 and 6)                   25.75          lb CO 2 /gallon

     Propane                                  12.60          lb CO 2 /gallon
          Carbon Intensity Ratios
• Ratio of GHG emissions to a production ratio that
  normalizes emissions
• Examples: production quantities, kilowatt-hour, vehicle
  mile traveled
• More favorable comparison than absolute GHG
  emissions
      Carbon Intensity Ratios
Large airline
     RECOMMENDATIONS
1. Conduct a GHG Inventory and Publish
   Data
2. Address Scope 1 Direct and Scope 2
   Indirect Emissions (Skip Scope 3)
3. Document GHG reductions (energy
   conservation/productivity improvements)
4. Use “an intensity ratio” to show a
   favorable GHG emissions trend.

				
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