Serres Jardins-Nature
Transcription
Serres Jardins-Nature
Serres Jardins-Nature Verification report on a Greenhouse Gas Emissions (“GHG”) reduction project – Biomass boilers used for greenhouse heat generation at Serres Jardins-Nature November 1, 2013 November 1, 2013 Raymond Chabot Grant Thornton LLP Suite 2000 National Bank Tower 600 De La Gauchetière Street West Montréal, Quebec H3B 4L8 Mr. François Bouchard General Manager Serres Jardins-Nature 200 Perron Boulevard East New Richmond (Québec) G0C 2B0 Telephone: 514-878-2691 Fax: 514-878-2127 www.rcgt.com Dear Sir: Subject: Verification report on a Greenhouse Gas Emissions (“GHG”) reduction project – Biomass boilers used for greenhouse heat generation at Serres Jardins-Nature Enclosed herewith is our verification report on a GHG emissions reduction project performed at 200 Perron Boulevard East, New Richmond, (Québec), G0C 2B0. The quantification report that is subject to our verification is included in Appendix 1. Please do not hesitate to contact us for any additional information you may require. Yours truly, Chartered Professional Accountants Lead Verifier Christine Brosseau, CPA, CA Partner Roger Fournier CPA, CA Chartered Professional Accountants Member of Grant Thornton International Ltd Verification Notice on the Declaration of GHG Emissions Reductions Raymond Chabot Grant Thornton LLP Suite 2000 National Bank Tower 600 De La Gauchetière Street West Montréal, Quebec H3B 4L8 Telephone: 514-878-2691 Fax: 514-878-2127 www.rcgt.com Mr. François Bouchard General Manager Serres Jardins-Nature 200 Perron Boulevard East New Richmond (Québec) G0C 2B0 Dear Sir : We have been engaged by Serres Jardins-Nature (SJN) to perform the verification of SJN’s GHG emissions reduction project as an independent third party verifier. We have verified the accompanying greenhouse gas (“GHG”) emissions reduction quantification report entitled Greenhouse Gas Project Report Period 2007-2011 (the “quantification report”), of the biomass boilers used for greenhouse heat generation at Serres Jardins-Nature. This quantification report dated June 12, 2013 is included, along with the related GHG assertions, in Appendix 1 of our report which is intended to be publicly posted on CSA’s GHG CleanProjectsTM Registry. The present report is the first verification report issued for this project. However, at the request of CSA’s GHG CleanProjectsTM Registry for additional information, this report replaces a previous report issued on July 10, 2013. Responsibilities Management is responsible for the relevance, consistency, transparency, conservativeness, completeness, accuracy and method of presentation of the quantification report. This responsibility includes the design, implementation and maintenance of internal controls relevant to the preparation of a GHG emissions reduction quantification report that is free from material misstatements. Our responsibility is to express an opinion based on our verification. Standards Our verification was conducted under ISO 14064-3 International Standard, entitled: Specification with guidance for the validation and verification of greenhouse gas assertions (2006). This standard requires that we plan and perform the verification to obtain either a reasonable assurance or a limited assurance about whether the emission reductions declaration that is contained in the attached quantification report is fairly stated, is free of material misstatements, is an appropriate representation of the data and GHG information of SJN and the materiality threshold has not been reached or exceeded. Chartered Professional Accountants Member of Grant Thornton International Ltd 2 Level of assurance It was agreed with SJN’s representatives that a reasonable assurance level of opinion would be issued and we planned and executed our work accordingly. Consequently, our verification included those procedures we considered necessary in the circumstances to obtain a reasonable basis for our opinion. Scope A reasonable assurance engagement with respect to a GHG statement involves performing procedures to obtain evidence about the quantification of emissions, and about the other information disclosed as part of the statement. Our verification procedures were selected based on professional judgment, including the assessment of the risks of material misstatement in the GHG statement. In making those risk assessments, we considered internal control relevant to the entity‘s preparation of the GHG statement. Our engagement also included: Assessing physical and technological infrastructure, processes and control over data. Evaluating the appropriateness of quantification methods and reporting policies used and the reasonableness of necessary estimates made by SJN. Identifying GHG sources sinks and reservoirs, types of GHG involved and time periods when emissions occurred. Establishing quantitative materiality thresholds and assessing compliance of results to these thresholds. Ensuring ownership of the project by observing that all reductions are obtained directly by the client on its own premises. The verification team Before undertaking this assignment, we ensured there were no conflicts of interest that could impair our ability to express an opinion and the conflict of interest review form was completed by all participants to this assignment (see Appendix 2). We also ensured we had the skills, competencies and appropriate training to perform this specific assignment. The work was performed by ISO 14064-3 trained professionals. Training was provided by the Canadian Standards Association. This is a Greenhouse heat generation from biomass project that the selected lead verifier is competent to undertake since, on top of his professional training, he has performed many similar projects. The auditor assigned to this audit work was: Roger Fournier, CPA, CA, Lead Verifier Mr. Fournier is an ISO 14064-3 trained professional. He has issued more than 80 GHG reduction project verification reports. The majority of which are registered on the GHG CleanProjectsTM Registry. Mr. Fournier was responsible for the verification work and ensured the production of this report. The verification team has reviewed and understands GHG CleanProjectsTM Registry’s registrations requirements. 1 CPA auditor, CA public accountancy permit no. A115050 3 Serres Jardins-Nature Serres Jardins-Nature is a leader of organic tomatoes culture in greenhouses; and the most important producer of organic tomatoes in Canada. The emissions reduction project The project is located at 200 Perron Boulevard East, New Richmond, QC, G0C 2B0 and the geographical coordinates are Lat. 48o09’03.8’’N Long. 65o 50’09.37’’W. SJN’s project consists in the use of biomass to fuel a boiler to provide heat for its needs. Before the project, SJN used both light-fuel and biomass for its boilers to meet its energy needs for heat generation. The project has started on January 1, 2007 and the emissions reduction initiatives were completed on December 31, 2011. The main GHG sources for the project are electricity, light oil and biomass consumption. The various gases involved at SJN are carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O). The expected life time of this project, as per page 8 of the attached quantification report entitled Greenhouse Gas Project Report Period 2007-2011, is 10 years. The project was under the responsibility of Mr. François Bouchard, General Manager, who is the signing authority in this matter and the person responsible for the data collection and monitoring. Serres Jardins-Nature has implemented a monitoring system that aims at insuring that all installed elements of the project that contribute to GHG emissions reduction are in operation constantly and consistently. As indicated in paragraph 2.15 of the attached quantification report, it is the declared intention of Serres Jardins-Nature to issue a GHG report every year until 2016. The quantification report The quantification report was prepared by L2I Financial Solutions, in accordance with ISO 14064-2 “Specification with guidance at the project level for quantification, monitoring and reporting of greenhouse gas emission reductions or removal enhancement (2006)”. The Clean Development Mechanism (CDM) AM0036 version 3 – Fuel switch from fossil fuels to biomass in heat generation equipment has been used by the quantifier only for the selection of the GHG sources, sinks and reservoirs to be taken into account for the quantification. The approach that was used for the quantification of the GHG emission reductions was to compare the emissions in the baseline scenario (Used oil) with those in the project (Biomass). The quantifier determined the GHG emissions for every source of energy by using appropriate emission factors multiplied by the consumption of every GHG source. The emission factors chosen are based on the National Inventory Report 1990-2010, Greenhouse Gas Sources and Sinks in Canada and the IPCC 2006, Guidelines for National Greenhouse gases Inventories . The verification work Planning At the planning phase of this verification assignment, the following points were reviewed with SJN’s representatives: Major processes of SJN’s operations, comprehension of the different operation stages with the purpose of assessing the complexity of the operation, SJN’s internal control with the purpose of assessing its risk mitigation capacity and finally, emission sources and GHG involved. This preliminary review resulted in the assessment of the following risks: 4 The inherent risk which is associated with the complexity of the project and the task being performed; The control risk which concerns the risk that the GHG project controls will not be able to prevent or detect a material discrepancy; and The detection risk which concerns the risk that the verifier will not detect a material discrepancy that has not been detected or prevented by the GHG project controls. As a result of the assessment of the inherent and control risks, a materiality level was defined, a verification program was designed to mitigate the detection risk and a sampling plan was developed accordingly. Assessing performance materiality Materiality is an amount that, if omitted or misstated, will influence the reader of the report in his decision making. Performance materiality is defined in the Canadian Auditing Standards as an amount, set by the auditor at less than materiality to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds the materiality. We have assessed a materiality level based on the above definitions, using Raymond Chabot Grant Thornton’s performance materiality determination system. This system considers the following information: User expectations; Prior year’s measures of materiality; Industry standards; The entity’s concept of materiality; Our assessment of detection risks; Other entity specific information. We have assessed performance materiality at 5% of declared emission reductions. The inherent risk and the control risk were assessed at an acceptable level for verification purposes. The detection risk, considering the verification program that was designed, is assessed at an acceptable level for verification purposes. 5 Sampling plan determination Standard sampling and testing procedures were the following: Documentation review: Quantifier’s calculations, purchasing volume reports, delivery slips; Interviews with key personnel: François Bouchard, General manager; Cross-checking of Quantification report’s calculations: The project emissions are based on the quantity of biomass used over the period of the project adjusted for different levels of humidity. Total usage was calculated on the basis of the total tonnage purchased over the period. 35% of purchases were traced to delivery slips and purchasing volume reports. Humidity levels were compared to boilers specification sheet, to suppliers declarations and to Serres Jardins-Nature’s humidity tests; Reconciliation of Quantification report to worksheets: 100%; Sampling of 25% of GHG emissions was decided at the beginning of the mandate; we had to increase our sampling to 35% of GHG emissions after we received the supporting documents for our 25% sampling because those documents were incomplete; Description of relevant information systems used for data collection and monitoring. Conclusion of planning No outstanding issues remained unresolved after the preliminary review. . Consequently, we could proceed with the verification work. Execution A draft of the quantification report was submitted to us on October 19, 2012. Our initial review of the documentation was undertaken on November 12, 2012 and a verification plan was prepared. We then toured SJN’s premises on November 27, 2012. In doing so, we interviewed Mr. François Bouchard. We subsequently received the final quantification report datedhis quantification report dated June 12, 2013. Information systems Each monitoring system that may have an effect on the data used for emissions reduction calculations has been identified. The staff responsible for data input and reporting of these systems was interviewed and the control procedures were described and assessed. Where deemed necessary, spot checking was used to ensure the controls had been operating properly throughout the verified period. All reports used in the calculation were reconciled to the calculations. Because of the relative simplicity of the data collection and monitoring systems, and because the limited number of calculations that are necessary to establish the emission reductions, it was deemed more efficient and more accurate to substantiate and reconcile a larger amount of data and calculations in order to ensure completeness and accuracy of data and calculations. Assessing quantification methodology We have assessed the appropriateness of using the CDM AM 0036 Version 03; Fuel switch from fossil fuels to biomass residues in heat generation equipment, as a methodology. This methodology has been chosen only for the selection of the GHG sources, sinks and reservoirs to be taken into account for the quantification. The quantifier used his own methodology for the calculations of GHG reductions. We also assessed the appropriateness of this methodology. We agree with the methodologies used for this project. Because the quantifier used his own methodology, it must be considered as a deviation to ISO 14064-2. 6 Findings Findings were listed, valued and compared to our established materiality levels. No findings or aggregates of findings exceeded the materiality level. All other findings were revisited at the conclusion of the verification to determine if they should be aggregated to generate a request for correction. During the course of our verification, we obtained all the necessary cooperation and documents required from SJN management. Criteria 1. The attached quantification report is in conformance with the requirements and principles of ISO 14064-2. 2. The approach and methodology used for the quantification are appropriate. 3. The baseline scenario is appropriate. 4. The supporting data are subject to sufficient controls to be considered fair and accurate and should not cause any material discrepancy. 5. The calculations supporting the GHG assertion are sufficiently accurate to be considered fair and should not cause any material discrepancy. 6. There are no competing claims to the ownership of the GHG project and the resulting emission reductions or removals. 7. The project start date is accurate and the lifetime estimation of the project is fairly stated. 8. The quantification report has a low degree of uncertainty and the materiality threshold has not been reached or exceeded. Reasonable assurance opinion Our verification was conducted under ISO 14064-3 International Standard, entitled: Specification with guidance for the validation and verification of greenhouse gas assertions (2006). In our opinion: 1. The quantification report is prepared in accordance with ISO 14064-2 standard: Specification with guidance at the project level for quantification, monitoring and reporting of greenhouse gas emission reductions or removal enhancements (2006), and the principles of relevance, completeness, consistency, accuracy, transparency and conservativeness have been respected except for the quantification methodology as explained in the section entitled ‘’Assessing Quantification Methodology’’. 2. The approach and methodology used for the quantification are appropriate. 3. The baseline scenario is appropriate. 4. Serres Jardins-Nature’s data controls management system is appropriate. 5. The quantification report and the GHG assertion are free of material misstatements and are an appropriate representation of the data and GHG information of Serres Jardins-Nature. 6. To our knowledge, there are no competing claims to the ownership of the GHG project and the resulting emission reductions or removals. 7. The quantification report has a low degree of uncertainty and the materiality threshold has not been reached or exceeded. 7 8. The GHG emission reductions presented in the quantification report entitled Greenhouse Gas Project Report Period 2007-2011 of the biomass boilers used for greenhouse heat generation at Serres Jardins-Nature, and his quantification report dated June 12, 2013 are, in all material respect, fairly stated at 16,702 tCO2e and are additional to what would have occurred in the baseline scenario. The following breakdown of those emission reductions by vintage year is fairly stated: Year CO2 CH4 N2O Total 2007 3,705 19 25 3,749 2008 3,132 16 21 3,169 2009 3,172 16 21 3,209 2010 2,505 12 17 2,534 2011 3,993 21 27 4,041 Total 16,507 84 111 16,702 9. The project start date is accurate and the lifetime estimation of the project is fairly stated. Restricted usage and confidentiality This verification report is produced to be used by the management of Serres Jardins-Nature and parties interested in the above described GHG emissions reduction project. Reliance on the conclusions of this verification report for any other usage may not be suitable. The quantification report entitled Greenhouse Gas Project Report Period 2007-2011 and dated his quantification report dated June 12, 2013, is an integral part of this verification report and should in no circumstances be separated from it. This verification report and the supporting work files are kept confidential and are available to the client on request and will not be disclosed to anyone else unless compelled by law. They will be safeguarded for 10 years after which period they will be safely destroyed. Chartered Professional Accountants Lead Verifier Christine Brosseau, CPA, CA Partner Roger Fournier CPA, CA Montréal, November 1, 2013 Appendix 1- Quantification report Greenhouse Gas Project Report Period 2007-2011 Project proponent: Serres Jardins- Nature 200, Boul. Perron Est, New Richmond, Gaspésie (Québec) G0C 2B0 Prepared by: L2I Financial Solutions 2015, Victoria Street, Suite 200 Saint-Lambert (Québec) J4S 1H1 June 12, 2013 TABLE OF CONTENT TABLE OF CONTENT .................................................................................................... ii LIST OF TABLES ........................................................................................................... iii ABBREVIATIONS .......................................................................................................... iv SOMMAIRE EXÉCUTIF ................................................................................................ 5 1. INTRODUCTION ............................................................................................ 6 2. PROJECT DESCRIPTION............................................................................. 8 2.1. Project title .......................................................................................................... 8 2.2. Objectives ........................................................................................................... 8 2.3. Project lifetime and crediting period................................................................... 8 2.4. Type of GHG project .......................................................................................... 8 2.5. Location .............................................................................................................. 8 2.6. Conditions prior to project initiation................................................................... 8 2.7. Description of how the project will achieve GHG emission reductions or removal enhancements ....................................................................................... 8 2.8. Project technologies, products, services and expected level of activity ............. 9 2.9. Aggregate GHG emission reductions and removal enhancements likely to occur from the GHG project......................................................................................... 9 2.10. Identification of risks .......................................................................................... 9 2.11. Roles and Responsibilities ................................................................................ 10 2.11.1. 2.11.2. 2.11.3. 2.11.4. Project proponent and representative ...................................................... 10 Monitoring and data collection ............................................................... 10 Quantification and reporting responsible entity ...................................... 10 Authorized project contact ...................................................................... 11 2.12. Project eligibility under the GHG program ...................................................... 11 2.13. Environmental impact assessment .................................................................... 11 2.14. Stakeholder consultations and mechanisms for on-going communication ....... 11 2.15. Detailed chronological plan .............................................................................. 11 2.16. Ownership ......................................................................................................... 11 3. SELECTION OF THE BASELINE SCENARIO AND ASSESSMENT OF ADDITIONALITY ......................................................................................................... 12 Serres Jardins-Nature 2007-2011 GHG Report ii 4. IDENTIFICATION AND SELECTION OF GHG SOURCES, SINKS AND RESERVOIRS ....................................................................................................... 14 5. QUANTIFICATION OF GHG EMISSIONS AND REMOVALS ............ 16 5.1. Baseline GHG emissions/removals................................................................... 17 5.2. Project GHG emissions/removals ..................................................................... 19 5.3. Emission reductions .......................................................................................... 20 5.4. Emission factors ................................................................................................ 20 6. DATA MONITORING AND CONTROL ................................................... 21 6.1. Data management and backups ......................................................................... 21 6.2. Data controls and procedures ............................................................................ 21 7. REPORTING AND VERIFICATION DETAILS....................................... 23 Appendix A ...................................................................................................................... 25 LIST OF TABLES Table 2-1 Expected and Achieved Emission Reductions (t CO2e) .................................... 9 Table 3-1 Barrier Assessment ........................................................................................... 12 Table 4-1 SSR’s Baseline Scenario Inventory .................................................................. 14 Table 4-2 SSR’s Project Inventory ................................................................................... 15 Table 5-1 Emission factors summary ............................................................................... 20 Table 6-1 Monitored data.................................................................................................. 21 Table 7-1 Baseline scenario GHG emissions for 2007 to 2011 (t CO2e) ......................... 23 Table 7-2 Project scenario GHG emissions for 2007 to 2011 (t CO2e) ............................ 24 Table 7-3 GHG emission reductions for 2007 to 2011 (t CO2e) ...................................... 24 Serres Jardins-Nature 2007-2011 GHG Report iii ABBREVIATIONS BS: CDM: CH4: CO2: CO2bio: CO2e: CSA: EF: EPA : HDD: GHG: ISO: IPCC: kWh : N2O: PS: SSR : t: VER : Baseline Scenario (GHG Emission Source) Clean Development Mechanism Methane Carbon dioxide Biogenic carbon dioxide Carbon dioxide equivalent (usually expressed in metric tons) Canadian Standards Association Emission Factor Environmental Protection Agency (USEPA) Heating degree day Greenhouse gases International Organization for Standardization Intergovernmental Panel on Climate Change Kilowatt hour Nitrous oxide Project Scenario (GHG emission source) Source, Sink and Reservoir Ton (metric) Verified Emission Reduction Serres Jardins-Nature 2007-2011 GHG Report iv SOMMAIRE EXÉCUTIF (Please note that the remainder of the document is in English) Serres Jardins-Nature est un leader de la culture biologique de tomates en serres et il est le plus important producteur de tomates biologiques au Canada. Ces cultures se font en terre et elles sont nourries avec des composts. Trois différentes variétés sont cultivées aux Serres Jardins-Nature. Avec le climat québécois, les serres ont besoin d’une source importante d’énergie pour être chauffées et pour ce faire, Serres Jardins-Nature a choisi dès ses débuts des alternatives vertes de chauffage. Dès la première année de production, Serres JardinsNature a opté pour la récupération de la chaleur résiduelle de la papetière voisine et d’un chauffage d’appoint aux granules de bois. Suite à la fermeture de la papetière et suite à l’augmentation de la superficie des serres, une nouvelle option de chauffage devait être envisagée pour combler les besoins énergétiques, l’ajout d’une nouvelle chaudière à la biomasse a donc été choisi. La biomasse nécessaire provient de résidus de bois de différents fournisseurs. Le choix de cette option permet d’éviter l’utilisation de carburants fossiles pour les besoins en chauffage des serres et ainsi d’éviter le grand volume de gaz à effet de serre émis associé à cette technologie. L’utilisation de la biomasse permet donc d’éviter l’émission d’un volume important de CO2. Le projet et les réductions d’émission de GES seront enregistrés au GHG CleanProjectsTM Registry. Ces réductions sont obtenues et leur quantification effectuée suivant les principes et lignes directrices de la norme ISO 14064 tel que stipulé par le GHG CleanProjectsTM Registry. La méthodologie “Fuel switch from fossil fuels to biomass residues in heat generation equipment” 1 du CDM a été sélectionnée afin de choisir les sources, puits et réservoirs de GES à inclure dans la quantification. Les réductions d’émission pour les années 2007 à 2011 sont au nombre de : Année 2007 2008 2009 2010 2011 TOTAL 1 Réductions d’émission (t CO2e) 3749 3169 3209 2534 4041 16702 Fuel switch from fossil fuels to biomass residues in heat generation equipment, (December 2009), AM0036 - Version 03, Internet link: http://cdm.unfccc.int/filestorage/C/U/O/CUOTDYZSL8EV3F0WR96MXKIJA271BQ/EB51_repan06_AM 0036_ver3.pdf?t=NzF8bWF6NjlrfDDt5wsyHBPStmYRNH81UTLG 1. INTRODUCTION As a leader of organic tomatoes culture in greenhouses, Serres Jardins-Nature became the most important producer of organic tomatoes in Canada. Those tomatoes, nourished by compost, are grown in soil. Three different varieties are produced. In Quebec due to the rigorous climate, greenhouses need to be heated. From the beginning, Serres Jardins-Nature chose green alternatives to meet its needs for heating. Since their first production year, Serres Jardins-Nature decided to recuperate the residual heat of a paper mill and have a boiler fueled with wooden granules as an auxiliary heating system. After the paper mill has been shut down and after the greenhouses area increased, Serres Jardins-Nature opted for a biomass boiler for heat generation to meet its needs. Wood waste is used as fuel and is provided by many suppliers of different wood industries. Biomass emits way less than used oil that usually fueled boilers for greenhouses in this area. The CDM “Fuel switch from fossil fuels to biomass residues in heat generation equipment”2 methodology has been chosen specifically for the selection of GHG sources, sinks, and reservoirs to take into account for the quantification and for the calculation methodology. Some differences from previously stated methodology have been implemented and are discussed in section 4 and 5. The selection of the baseline scenario and the assessment of additionality were discussed following the best practices and the expertise of the quantification team. The selection of the most plausible baseline scenario is done considering alternatives that would have really been implemented on-site. A barrier analysis is performed and used to confirm the most plausible scenario and to give argumentation for the additionality assessment. This GHG report is presented in a format that meets the requirements of CSA CleanProjectsTM Registry and the ISO 14064-2 guidelines and principles: Relevance: All relevant GHG sources are meticulously selected and presented in section 4. A precise methodology is used along with project specific parameters values. Completeness: A complete assessment of GHG sources is made and all GHG types are considered in the applied quantification methodology. Complete information regarding project implementation, activities and GHG quantification is given through this GHG report. 2 Fuel switch from fossil fuels to biomass residues in heat generation equipment, (December 2009), AM0036 - Version 03, Internet link: http://cdm.unfccc.int/filestorage/C/U/O/CUOTDYZSL8EV3F0WR96MXKIJA271BQ/EB51_repan06_AM 0036_ver3.pdf?t=NzF8bWF6NjlrfDDt5wsyHBPStmYRNH81UTLG Serres Jardins-Nature 2007-2011 GHG Report 6 Consistency: Chosen quantification methodology is appropriate for Serres Jardins-Nature’s specific project. Established baseline scenario, as explained in section 3, is consistent with the project level of activity related to heat generation for greenhouses. Accuracy: Calculation uncertainties are kept as small as possible. Transparency: Project related information is transparently communicated through this document so that the intended user knows what the important data are, how they are collected and how the project actually leads to GHG emissions reduction. Data monitoring and GHG emission reductions calculation are clearly detailed in order to provide the reader sufficient information to allow the user to confidently make decisions. Conservativeness: GHG emission reductions are not overestimated. When accuracy is jeopardized because of assumptions, conservative choices are made to make sure that GHG reductions are not overestimated. This report will be made available for public consultation. It is intended to serve as a transparent reference document to support the prospection of potential verified emission reductions (VER) buyers. Serres Jardins-Nature 2007-2011 GHG Report 7 2. PROJECT DESCRIPTION 2.1. Project title Biomass boilers used for greenhouse heat generation at Serres Jardins-Nature 2.2. Objectives The objective of this project is to lower the total amount of GHG emitted by using biomass boilers fueled with wood waste to heat greenhouses instead of the common fossil fuels boilers. 2.3. Project lifetime and crediting period Project started on January 1st 2007 and the ten-year crediting period extends until December 31st 2016. 2.4. Type of GHG project Biomass energy activities are valid projects for the CSA CleanProjectsTM Registry. 2.5. Location Serres Jardins-Nature 200, Boul. Perron Est, New Richmond, Gaspésie (Québec) G0C 2B0 Latitude: 48° 9' 5.1408"N Longitude: 65° 50' 35.091"W 2.6. Conditions prior to project initiation Before project initiation, Serres Jardins-Nature used the remaining energy contained in hot water of the nearby Smurfit-Stone paper mill for heating purposes and had a homemade modified boiler as auxiliary heating system. The paper mill closed in 2005 and Serres Jardins-Nature had to modify their existing boiler to supply all the energy for heating purposes. In 2007, Serres Jardins-Nature expanded the greenhouse area and had to find an additional heating system to meet their new needs. A biomass boiler was chosen. 2.7. Description of how the project will achieve GHG emission reductions or removal enhancements The use of biomass as a fuel generates way less GHG emissions than the use of fossil fuels. Once combusted, biomass emits biogenic CO2. Biogenic CO2 emissions can be defined as CO2 emissions from the combustion or decomposition of biological materials other than fossil fuels. This type of biogenic CO2 is not accounted for as GHG emissions for the quantification. By choosing biomass instead of the common used oil or any other fossil fuels for boilers, Serres Jardins-Nature contributes to reduce GHG emissions. Serres Jardins-Nature 2007-2011 GHG Report 8 2.8. Project technologies, products, services and expected level of activity Besides the biomass boiler, a loader is used for on-site operations and the biomass is transported from suppliers to Serres Jardins-Nature site. The loader is a 2003 John Deer TC54H. Truck capacity varies with the moisture content of the matter: 15 tons of dry matter to 33 tons of wet matter. The maximum overall truck capacity is 35 tons. Since 2007, greenhouses area is still the same. From 2007 up to year 2011, production may vary with no effect on achieved GHG emission reductions because the baseline scenario is not based on a baseline year. One year is compared to itself with a different technology (different fuel). For each year, emissions from the biomass boiler are compared to emissions from a used oil boiler for the same heat generation needs. 2.9. Aggregate GHG emission reductions and removal enhancements likely to occur from the GHG project This is the first GHG report for this project and GHG emission reductions are accounted for years 2007 to 2011. A yearly GHG report will follow until 2016. Table 2-1 Expected and Achieved Emission Reductions (t CO2e) Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 TOTAL Expected Emission Reductions (t CO2e) 3 301 3 336 2 814 2 339 3 996 4 000 4 000 4 000 4 000 4 000 35 786 Achieved Emission Reductions (t CO2e) 3749 3169 3209 2534 4041 ----------16702 2.10. Identification of risks Wood waste relies on residues of different wood industries and the production is influenced by the market demand. Fortunately, Quebec and other Canadian provinces offer numerous different wood industries therefore wood waste supply is not an issue and does not lead to an increase of those industries production. There is a risk that the ten-year crediting period will be shortened if the common practice becomes the use of biomass boilers for heating purposes, therefore there will be no GHG project as it is presented and described in this document. Serres Jardins-Nature 2007-2011 GHG Report 9 This emission reductions report was written according to ISO 14064-2 Specifications Requirements for quantification, monitoring and reporting of greenhouse gas emission reductions and removal enhancements assertions. In order to minimize risks, the methodology and GHG emission factors were selected based on their completeness and their international recognition. 2.11. Roles and Responsibilities 2.11.1. Project proponent and representative Serres Jardins-Nature Mr. François Bouchard General Manager 200, Boul. Perron Est, New Richmond, (Québec), G0C 2B0 (418) 392-2000 – 1 800 299-5479 #106 [email protected] 2.11.2. Monitoring and data collection Serres Jardins-Nature is responsible for the project implementation and data monitoring. Data are provided by Mr. François Bouchard. Mr. François Bouchard General Manager 200, Boul. Perron Est, New Richmond, (Québec), G0C 2B0 (418) 392-2000 – 1 800 299-5479 #106 [email protected] 2.11.3. Quantification and reporting responsible entity L2I Financial Solutions is a firm specialized in non-traditional corporate financing. An expertise has been developed in the quantification of GHG emissions. Services are offered for GHG inventory, GHG emissions reduction project implementation, GHG markets advising, regulatory requirements and much more. Joséanne Bélanger-Gravel works at L2I as a carbon credits advisor. She has a mechanical engineering degree from Université de Sherbrooke and EPF-École d’ingénieurs de Sceaux in France. She also is about to complete an engineering master degree in renewable energies and a second one in environment with specialisation in sustainable development. She is responsible for the quantification and the GHG report. Joséanne Bélanger-Gravel Carbon credits advisor L2I Financial Solutions [email protected] Mr. David Beaudoin works at L2I as director of environment and climate change services. He holds a Bachelor's Degree in Biotechnological Engineering from the University of Serres Jardins-Nature 2007-2011 GHG Report 10 Sherbrooke. During his career, Mr. Beaudoin has occupied several positions such as Process Engineering Consultant, Project Manager in R&D and research assistant for different environmental firms. He is the project team leader. He also performs reviews of the monitored data and the GHG emission reductions calculation. David Beaudoin, B.Ing. Director, Environment & Climate change L2I Financial Solutions [email protected] 450-923-9381 ext.31 2.11.4. Authorized project contact Christine Lagacé is shareholder and vice-president of financial relations at L2I Financial Solutions and has the signing authority for L2I. She is authorized by the project proponent to perform requests and administrative tasks regarding the project registration. Christine Lagacé, Adm.A. Vice-president, Financial relations L2I Financial Solutions [email protected] 2.12. Project eligibility under the GHG program The project is eligible under the GHG CleanProjectsTM Registry. It is implemented following the ISO 14064-2 guidelines and principles, is not attempted to be registered under another GHG program and does not create any other environmental credit. 2.13. Environmental impact assessment The nature of the project does not involve a required environmental impact assessment as the impact on the environment is limited to the GHG emissions. 2.14. Stakeholder consultations communication and mechanisms for on-going Mr. François Bouchard, from general manager at Serres Jardins-Nature, is responsible for the communications with the quantifier, the verifier and with all relevant stakeholders within the company and outside the company. 2.15. Detailed chronological plan Data monitoring for the project of the new biomass boiler started in 2007. The project ends in 2016. GHG emission reductions are reported in this report for year 2007 to 2011. A GHG report will follow every year for the remaining of the 10-year crediting period, thus until 2016. 2.16. Ownership The emissions reduction described in this report are a result of Serres Jardins-Nature efforts to diminish their impact on the environment. By proceeding to a fuel switch in its installation, the company prevents the emissions of GHG that would have otherwise been Serres Jardins-Nature 2007-2011 GHG Report 11 produced if they would have only used fossil fuel. Serres Jardins-Nature is the rightful owner of these reductions because it owns the equipment and installation and can provide proof for biomass purchased as a fuel to heat the greenhouses, the main aspect of the project. 3. SELECTION OF THE BASELINE SCENARIO AND ASSESSMENT OF ADDITIONALITY The baseline scenario is selected among alternative scenarios representing what would have happened without the project. The alternative scenario that is most likely to occur is selected as the baseline scenario. Those alternatives were listed following a discussion about their feasibility of implementation with the project proponent. Only the alternatives that really could be implemented on-site are listed below, so three options are identified as plausible scenarios to fuel boilers for greenhouses heat generation at Jardins Nature: 1. Light-fuel oil boiler 2. Used oil boiler (baseline scenario) 3. Biomass boiler (project scenario) Two options are possible as the baseline scenario to heat greenhouses: (1) light-fuel oil and (2) used oil boiler. The most common option used in Quebec for greenhouse heating is option 1, light fuel oil boiler. Compared to used oil, light fuel oil price is expensive therefore this option is not financially sustainable and this scenario wouldn’t have been implemented at Jardins Nature. The only option that could have been implanted at Jardins Nature is (2), a used oil boiler. Used oil boiler is a plausible scenario because used oil can be provided in New Richmond, Gaspésie and sufficient volume are available. Even though there is significant transportation distance, used oil is so affordable that it still make a viable option. The biomass boiler (option 3) is the project scenario. Table 3-1 Barrier Assessment Potential Barrier Financial: Capital investment Baseline Scenario Project Scenario Other Scenario Used Oil Boiler Biomass Boiler Light fuel oil boiler No barrier No barrier Financial: Fuel cost No barrier Barrier Significant Investment required for additional equipment and infrastructure No barrier Technology No barrier Common practice Barrier Not the most common practice Serres Jardins-Nature 2007-2011 GHG Report Barrier Additional equipment and infrastructure needed Barrier Not the most common practice Significant Barrier No go due to high fuel cost No barrier No barrier 12 The project scenario is additional because of significant technological and financial barriers. Additional equipment and infrastructure are needed especially to haul and feed biomass boilers and to store biomass3. For example, warehouse size and infrastructure required for biomass storage is important and it is not needed for used oil boiler. Those additional equipment and infrastructure generate a substantial capital investment. This capital investment can be up to 4 times higher for biomass boiler implementation than it is for a fuel oil boiler.4 3 Naturel Resources Canada, Les petites installations de chauffage à la biomasse : Guide de l’Acheteur (2000). p. 17. Available at : http://agroenergie.ca/pdf/Applications_commerciales/Guide_RNC_chauffage_biomasse.pdf 4 Idem 4. p.20 and 46 Serres Jardins-Nature 2007-2011 GHG Report 13 4. IDENTIFICATION AND SELECTION SOURCES, SINKS AND RESERVOIRS OF GHG The SSRs for the baseline and the project scenario are identified in the table below and it is stated whether they are included or excluded from the quantification and whether they are controlled, related, or affected SSR. The CDM “Fuel switch from fossil fuels to biomass residues in heat generation equipment”5 methodology has been chosen for the selection of GHG sources, sinks, and reservoirs to take into account for the quantification. For sources to be included, CH4 and N2O emission factors are known, therefore those emissions are accounted for in the quantification and this is considered to be more accurate. The combustion of wood biomass for heat generation is included in the baseline scenario as well as in the project scenario. More explanation is available in the next section. Fossil fuel combustion emits a large quantity CO2 and CH4 and N2O in smaller proportions. Other GHG such as PFC, HFC and SF6 are not accounted for because they are not specific to the combustion of fossil fuel, biomass and diesel. Excluded GHG types are not shown in tables presenting the GHG emissions and reductions to ease the understanding. Table 4-1 SSR’s Baseline Scenario Inventory SSR - Baseline Included / excluded BS1 - Fossil fuel combustion in boilers for heat generation BS2 - Combustion wood biomass for heat generation Included Controlled / Related / Affected Controlled Included Controlled BS3 - Uncontrolled burning or decay of the biomass residues Excluded Related 5 GHG Explanation CO2 CH4 N2O CO2 CH4 N2O A significant source of greenhouse gases due to fuel combustion. --- This emission source is assumed to be negligible compared to fuel combustion. This is conservative. This source is considered for the project scenario, so it is accurate to consider it. Fuel switch from fossil fuels to biomass residues in heat generation equipment, (December 2009), AM0036 - Version 03, Internet link: http://cdm.unfccc.int/filestorage/C/U/O/CUOTDYZSL8EV3F0WR96MXKIJA271BQ/EB51_repan06_AM 0036_ver3.pdf?t=NzF8bWF6NjlrfDDt5wsyHBPStmYRNH81UTLG Serres Jardins-Nature 2007-2011 GHG Report 14 Table 4-2 SSR’s Project Inventory SSR - Project Included / excluded GHG Explanation Included Controlled / Related / Affected Controlled PS1 - Combustion of wood waste as biomass residues for heat generation CO2bio CH4 N2O PS2 - Off-site transportation of wood waste Included Related CO2 CH4 N2O A significant source of greenhouse gases for the project due to combustion. CO2 biogenic emissions are not accounted for with the other GHG emissions because wood waste or biomass residues do not lead to changes to carbon pools of the Land Use, Land-Use Change and Forestry sector as stated in the methodology. Fossil fuel combustion is an important source of greenhouse gases. PS3 - On-site fossil fuel consumption Included Controlled CO2 CH4 N2O On-site fossil fuel consumption can be a significant source of GHG emissions. PS4 - Biomass storage Excluded Related --- This emission source is assumed to be negligible compared to the combustion for CH4 and N2O emissions. CO2 emissions are not accounted for because wood waste or biomass residues do not lead to changes to carbon pools of the Land Use, Land-Use Change and Forestry sector as stated in the methodology. Serres Jardins-Nature 2007-2011 GHG Report 15 5. QUANTIFICATION REMOVALS OF GHG EMISSIONS AND The calculation methodology is based on the CDM “Fuel switch from fossil fuels to biomass residues in heat generation equipment”6 methodology that has also been chosen for SSR’s selection. As discussed in the previous section, CH4 and N2O emissions are accounted for in the quantification and it is not requested in the methodology. Another important change is in the calculations below, the efficiency of equipment for biomass combustion is considered along with efficiency for the heat generation equipment fired with fossil fuels. This is considered to be more accurate than not considering biomass equipment efficiency as proposed in the referred methodology. Here are more details about the differences between the referred methodology and the calculation methodology applied. For baseline emission calculation, as stated in the previous section, the source of emissions from uncontrolled burning or decay of biomass residues are excluded, so no calculation is needed. Also, the referred methodology proposed to find the heat generated by biomass residues from the quantity of biomass residues used and the calorific value of this biomass. In this project, the biomass boiler efficiency is accounted for, which represents the real situation. The heat generated by biomass residues is calculated as stated in the methodology; however an efficiency ratio is applied to consider that not all of the heat is useful to the process and this tends to diminish the equivalent energy needed for fossil fuel combustion. Therefore, this is more conservative because this calculation methodology applied tends to consider the combustion of a smaller quantity of fossil fuel, so less GHG emissions for the baseline scenario. Furthermore, to take account for the use of biomass previous to the project start date, the calculation are done as stated in the methodology, so the heat generated considered is the heat from the total amount of biomass residues minus the heat equivalent to the amount of biomass residues used before the project implementation. However, the quantification includes the emissions of the combustion of biomass residues used before project implementation. This is considered to be accurate considering the real situation where the biomass is actually combusted. Considering efficiency of the biomass boiler (calculation methodology implemented) decreases around 30% the reductions emissions from the referred methodology. Considering the emissions from biomass combustion for the baseline increases reductions of less than 0.07%. Overall, the calculation methodology is more conservative than the one proposed in the selected methodology. For project emissions, the same logic as the referred methodology is executed to find emissions for biomass combustion and on-site diesel consumption, except in the calculation applied the CO2, CH4 and N2O are considered. For transportation calculation, it is a mix of both suggested ways of calculation that is performed because of the format of data and parameters available. The number of trips and the average round trip distance 6 Fuel switch from fossil fuels to biomass residues in heat generation equipment, (December 2009), AM0036 - Version 03, Internet link: http://cdm.unfccc.int/filestorage/C/U/O/CUOTDYZSL8EV3F0WR96MXKIJA271BQ/EB51_repan06_AM 0036_ver3.pdf?t=NzF8bWF6NjlrfDDt5wsyHBPStmYRNH81UTLG Serres Jardins-Nature 2007-2011 GHG Report 16 is used to find a total distance in km that is transferred into an amount of liters of diesel consumed for transportation using the fuel economy of an average middle size truck. Knowing the fuel consumption needed, emissions factor are directly applied to find GHG emissions. Finally, no leakage is considered, so emission reductions result from the subtraction of project emissions from baseline emissions. Calculation samples are available in Appendix A. 5.1. Baseline GHG emissions/removals BSTE = BS1E + BS2E BSTE = BS1E = BS2E = Baseline scenario total emissions resulting from the baseline scenario: use of common boilers (metric tons CO2 eq); Baseline scenario emissions resulting from the used oil combustion in boilers (metric tons CO2 eq); Baseline scenario emissions resulting from biomass combustion (metric tons CO2 eq); BS1E = [EFUO,CO2 + (EFUO,CH4 * GWPCH4) + (EFUO,N2O * GWPN2O)] * EoilBL / 1000 EFUO,CO2, EFUO,CH4, EFUO,N2O = GWPCH4 = GWPN2O = EoilBL = 1000 = GHG emission factors for used oil combustion (kg of GHG/TJ); Global Warning Potential of methane (21); Global Warning Potential of nitrous oxide (310); Used oil energy equivalent to project biomass energy without energy from annual biomass use before the project for the year ‘y’ (TJ); 1000 kg / ton; EoilBL = Eoil,t – EoilBPJ,t Eoil,t = EoilBPJ = Used oil energy equivalent to project biomass energy for boilers for the year ‘y’ (TJ); Used oil energy equivalent to energy from annual average biomass use before the project (TJ); Eoil,t = Eoil,u / EFFb,oil EoilBPJ,t = EoilBPJ,u / EFFb,oil Eoil,u = Serres Jardins-Nature 2007-2011 GHG Report Useful used oil energy for heating equivalent to project biomass energy (TJ); 17 EoilBPJ,u = Useful used oil energy for heating equivalent to energy from annual average biomass use before the project (TJ); Used oil boiler efficiency (0.85)7 EFFb,oil = Eoil,u = Ebio,u EoilBPJ,u = EbioBPJ,u Ebio,t = EbioBPJ,t = Useful biomass energy for heating for the project (TJ); Useful biomass energy for heating for annual average biomass use before the project (TJ); Ebio,u = Ebio,t * EFFb,bio EbioBPJ,u = EbioBPJ,t * EFFb,bio Ebio,t = EbioBPJ,t = EFFb,bio = Total biomass energy for the project (TJ); Total biomass energy for annual average biomass use before the project (TJ); Boiler efficiency (0.70)8; Ebio,t = WWM*HHVM / 1000 EbioBPJ,t = WWM*HHVM / 1000 WWM = HHVM = 1000 = Biomass wet weight at moisture content “M” (tons); Biomass high heating value for matters at moisture content “M” (MJ/kg); Unit conversion factor; HHVM = HHVd*(1-M) HHVd = M= High heating value for dry biomass – 0% moisture content (MJ/kg); Biomass moisture content on a wet basis (%); HHVd = HHV50 / (1-50%) HHV50 = 50%= High heating value for biomass at 50% of moisture content (MJ/kg); Biomass moisture content associated with HHV50 on a wet basis (%); BS2E = [EFWW50,CO2 + (EFWW50,CH4 * GWPCH4) + (EFWW50,N2O * GWPN2O)] * WW50BL / 1000 7 Natural Resources Canada, Help from RETScreen 4 software – Typical seasonal efficiencies of heating systems (2012). 8 Goyette, J., Symposium Q-web – Valorisation de la biomasse forestière et des résidus de transformation, (Avril 2008), p. 22, Internet Link : http://www.quebecwoodexport.com/biomasse/documents/Goyette.pdf Serres Jardins-Nature 2007-2011 GHG Report 18 EFWW50,CO2, EFWW50,CH4, EFWW50,N2O = GWPCH4 = GWPN2O = WW50BL = GHG emission factors for wood fuel or wood waste combustion (g of GHG/kg of biomass); Global Warning Potential of methane (21); Global Warning Potential of nitrous oxide (310); Biomass equivalent wet weight for matter at 50% of moisture content for the 1000 = baseline scenario (TJ); Conversion factor; 5.2. Project GHG emissions/removals PSTE = PS1E + PS2E + PS3E PSTE = PS1E = PS2E = PS3E= Project scenario total emissions resulting from the project scenario: use of biomass in boilers (metric tons CO2 eq); Project scenario emissions resulting from the biomass (wood waste) combustion in boilers (metric tons CO2 eq); Project scenario emissions resulting from biomass transportation (metric tons CO2 eq); Project scenario emissions resulting from on-site fossil fuel consumption (metric tons CO2 eq); PS1E = [EFWW50,CO2 + (EFWW50,CH4 * GWPCH4) + (EFWW50,N2O * GWPN2O)] * WW50 / 1000 EFWW50,CO2, EFWW50,CH4, EFWW50,N2O = GWPCH4 = GWPN2O = WW50 = GHG emission factors for wood fuel or wood waste combustion (g of GHG/kg of biomass); Global Warning Potential of methane (21); Global Warning Potential of nitrous oxide (310); Biomass equivalent wet weight for matter at 1000 = 50% of moisture content (TJ); Conversion factor; WW50 = DW / (1 - 50%) DW = 50% = Biomass equivalent dry weight – at 0% moisture content (tons); Biomass moisture content associated with WW50 on a wet basis (%); DW = WWM * (1 - M) PS2E = [EFD,CO2 + (EFD,CH4 * GWPCH4) + (EED,N2O * GWPN2O)] * DQTy / 106 EFD,CO2, EFD,CH4, EFD,N2O = GHG emission factors for diesel combustion (g of GHG / L); GWPCH4 = GWPN2O = DQTy = 106 = Serres Jardins-Nature 2007-2011 GHG Report Global Warning Potential of methane (21); Global Warning Potential of nitrous oxide (310); Diesel quantity used for transportation for the year ‘y’ for a supplier (liters); 106 g / ton; 19 DQTy = DTOT * FET DTOT = FET = Total transportation distance for a supplier (km); Fuel economy of the truck (L/km); DTOT = DJN-S * 2 * Nrun DJN-S = 2= Nrun = Transportation distance between Serres Jardins-Nature and supplier (km); Round trip factor; Number of runs for this supplier; PS3E = [EFD,CO2 + (EFD,CH4 * GWPCH4) + (EED,N2O * GWPN2O)] * DQOy / 106 DQOy = 106 = 5.3. Diesel quantity used for project on-site operations for the year ‘y’ (liters); 106 g / ton; Emission reductions TPERy = BSTE - PSTE TPERy = 5.4. Total Project Emission Reductions in year “y” Emission factors Table 5-1 Emission factors summary Factor EFUO EFWW50 EFD Gas Value Unit CO2 73 300 kg/TJ CH4 30 kg/TJ N2O 4 kg/TJ CO2bio 840 g/kg CO2 0 g/kg CH4 0.09 g/kg N2O 0.02 g/kg CO2 2663 g/L CH4 0.14 g/L N2O 0.082 g/L Serres Jardins-Nature 2007-2011 GHG Report Source IPCC 2006, Guidelines for National Greenhouse Gases Inventories, Vol.2, Ch.2, p.2.17 National Inventory Report 1990-2010, Greenhouse Gas Source and Sinks in Canada, part 2, Table A8-26 National Inventory Report 1990-2010, Greenhouse Gas Sources and Sinks in Canada, Part 2, Table A8-11, p.199, HDDV, moderate control 20 6. DATA MONITORING AND CONTROL 6.1. Data management and backups Data are compiled in excel files daily and are moved to Accomba, a management system every month. Data are kept on a separated server which is managed by an expert external firm. An employee from Serres Jardins-Nature brings back every night a backup on a hardcopy and replaces the backup disk with a new one. The external firm verifies the condition of the server every week. 6.2. Data controls and procedures Monthly financial statements can corroborate the validity of the data entered in excel files and in Accomba management system. Every year, financial statements are verified by an external firm to ensure the accuracy of the data kept over the year. If more procedures and controls are done for a specific data or parameter, this information is included in the table below under “description of measurement methods and procedures to be applied” for the specific data or parameter. Table 6-1 Monitored data Data / Parameters Data unit : Description : Source of data to be used : Description of measurement methods and procedures to be applied : Data / Parameters Data unit : Description : Source of data to be used : Description of measurement methods and procedures to be applied : Data / Parameters Data unit : Description : Source of data to be used : Description of measurement methods and procedures to be applied : Serres Jardins-Nature 2007-2011 GHG Report WWM Metric tons Wet weight at moisture content M Delivery orders Data collection from delivery orders which include weight, supplier and delivery date. Delivery orders are signed by an employee from Jardins-Nature upon delivery. Data are compiled in a log. Information is verified with supplier invoices. M Percentage on a wet basis Wet weight at moisture content M On-site measurements For 2007 to 2011, a conservative assumption is made using 50% of moisture content. For 2012 and onwards, on-site measurements will be done for each supplier. Moisture content is evaluated from the difference between the wet and dry weight. Nrun # Numbers of run between Serres Jardins-Nature and the biomass supplier Delivery orders Data collection from delivery orders which include weight, supplier and delivery date. Delivery orders are signed by an employee from Jardins Nature upon 21 Data / Parameters Data unit : Description : Source of data to be used : Description of measurement methods and procedures to be applied : Data / Parameters Data unit : Description : Source of data to be used : Description of measurement methods and procedures to be applied : Serres Jardins-Nature 2007-2011 GHG Report delivery. Data are compiled in a log. Information is verified with supplier invoices. DJN-S km Distance between Serres Jardins-Nature and the biomass supplier Road distance to the supplier site Road distance between the supplier and JardinsNature addresses calculated with an online map. DQO L On-site diesel consumption Supplier invoices Data collection from bills. 22 7. REPORTING AND VERIFICATION DETAILS The project plan and report is prepared in accordance with ISO 14064-2 standard and the GHG CleanProjectsTM Registry program requirements. The methodology that is used, the choice of region specific emission factors and a rigorous monitoring plan allow for a reasonably low level of uncertainty. L2I Solutions is confident that the emission reductions are not overestimated and that the numbers of emission reductions that are reported here are real and reflect the actual impacts of the project. The GHG report is prepared in accordance with ISO 14064-2 and GHG CleanProjectsTM Registry requirements. Emission reductions will be verified by an independent third party to a reasonable level of assurance. Raymond-Chabot-Grant-Thornton will be the verifying firm for this reporting period and will verify in conformance with ISO 14064-3. Emission reductions are reported here for the year 2007-2011. Table 7-1 Baseline scenario GHG emissions for 2007 to 2011 (t CO2e) BS1 BS2 SousSousYear CO2 CH4 N2O total CO2 CH4 N2O total CO2 2007 3741 32 63 3836 0 0 2 2 3741 2008 3153 27 53 3233 0 0 2 2 3153 2009 3195 27 54 3276 0 0 2 2 3195 2010 2544 21 43 2608 0 0 2 2 2544 2011 4057 34 68 4159 0 0 2 2 4057 TOTAL 16690 141 281 17112 0 0 10 10 16690 Serres Jardins-Nature 2007-2011 GHG Report TOTAL CH4 32 27 27 21 34 141 N2O TOTAL 65 3838 55 3235 56 3278 45 2610 70 4161 291 17122 23 Table 7-2 Project scenario GHG emissions for 2007 to 2011 (t CO2e) PS1 PS2 SousSousYear CO2 CH4 N2O total CO2 CH4 N2O total CO2 2007 0 13 40 53 25 0 0 25 11 2008 0 11 34 45 10 0 0 10 11 2009 0 11 35 46 15 0 0 15 8 2010 0 9 28 37 33 0 0 33 6 2011 0 13 42 55 56 0 1 57 8 TOTAL 0 57 179 236 139 0 1 140 44 PS3 CH4 0 0 0 0 0 0 N2O 0 0 0 0 0 0 Table 7-3 GHG emission reductions for 2007 to 2011 (t CO2e) TOTAL CO2 CH4 N2O TOTAL Year t CO2e t CO2e t CO2e t CO2e 2007 3705 19 25 3749 2008 3132 16 21 3169 2009 3172 16 21 3209 2010 2505 12 17 2534 2011 3993 21 27 4041 TOTAL 16507 84 111 16702 Jardins Nature 2007- 2011 GHG Report 24 TOTAL Soustotal 11 11 8 6 8 44 CO2 36 21 23 39 64 183 CH4 13 11 11 9 13 57 N2O TOTAL 40 89 34 66 35 69 28 76 43 120 180 420 Appendix A Calculation examples These calculations are not round up or round down. Baseline scenario calculation for 2007 = BS1E + BSTE 2007 3836,59 + 3836,59 = =[ 3836,59 =[ Before pj Prject eq. Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7 Supplier 8 BS2E 3,72 BS1E EFUO,CO2 +( 73 300,00 +( EFUO,CH4 * 30,00 * EoilBL = 51,04 = Eoil,t EoilBPJ,t EoilBPJ,t = 3,97 = EoilBPJ,u Eoil,t 0,76 12,73 5,76 5,23 2,59 13,05 0,99 3,04 Jardins Nature 2007- 2011 GHG Report = = = = = = = = = 55,01 - EFFb,oil / / / / / / / / / EFFb,oil 0,65 10,82 4,90 4,45 2,20 11,09 0,84 2,59 EFUO,N2O * 4,00 * 3,97 / 3,37 / Eoil,u GWPCH4 )+( 21 )+( 0,85 0,85 0,85 0,85 0,85 0,85 0,85 0,85 0,85 25 GWPN2O )] * 310 )] * EoilBL / 51,04 / 1000 1000 Supplier 9 TOTAL 10,85 = 55,01 9,22 / Before pj EoilBPJ,u = 3,37 = EbioBPJ, u 3,37 Project eq. Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7 Supplier 8 Supplier 9 Eoil,u Ebio, u Before pj EbioBPJ,u = 3,37 = EbioBPJ,t Project eq. Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7 Ebio,u Ebio,t 0,65 10,82 4,90 4,45 2,20 11,09 0,84 2,59 9,22 0,65 10,82 4,90 4,45 2,20 11,09 0,84 Serres Jardins-Nature 2007-2011 GHG Report = = = = = = = = = = = = = = = = = = 0,85 0,65 10,82 4,90 4,45 2,20 11,09 0,84 2,59 9,22 * 4,82 * EFFb, bio 70,00% * * * * * * * * EFFb, bio 70,00% 70,00% 70,00% 70,00% 70,00% 70,00% 70,00% 0,93 15,46 7,00 6,35 3,14 15,84 1,20 26 Supplier 8 Supplier 9 Before pj 2,59 = 9,22 = EbioBPJ,t = 3,70 * 13,17 * WWM * 460 * HHVM / 10,47 / 1000 1000 * * * * * * * * * * HHVM / / / / / / / / / / 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 4,82 = Project eq. Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7 Supplier 8 Supplier 9 Ebio,t 0,93 15,46 7,00 6,35 3,14 15,84 1,20 3,70 13,17 = = = = = = = = = = WWM Before pj = HHVM 10,47 = HHVd *( 20,94 *( Project eq. Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 HHVM 10,47 10,47 10,47 10,47 10,47 10,47 = = = = = = = HHVd *( *( *( *( *( *( *( Serres Jardins-Nature 2007-2011 GHG Report 70,00% 70,00% 89 1476 669 607 300 1513 115 353 1258 20,94 20,94 20,94 20,94 20,94 20,94 10,47 10,47 10,47 10,47 10,47 10,47 10,47 10,47 10,47 1 1 - M ) 50% ) 1 1 1 1 1 1 1 M ) ) ) ) ) ) ) - 50% 50% 50% 50% 50% 50% 27 Supplier 7 Supplier 8 Supplier 9 10,47 = 10,47 = 10,47 = Before PJ HHVd Project eq. Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7 Supplier 8 Supplier 9 HHVd 20,94 *( 20,94 *( 20,94 *( 1 1 1 - 50% ) 50% ) 50% ) 1 1 - 50% ) 50% ) 1 1 1 1 1 1 1 1 1 1 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% = 20,94 = HHV50 /( 10,47 /( = = = = = = = = = = HHV50 /( /( /( /( /( /( /( /( /( /( 20,94 20,94 20,94 20,94 20,94 20,94 20,94 20,94 20,94 BS2E =[ 3,72 =[ 10,47 10,47 10,47 10,47 10,47 10,47 10,47 10,47 10,47 EFWW50,CO2 + ( EFWW50,CH4 * 0 +( 0,09 * Project scenario calculation for 2007 = PS1E PSTE 2007 86,73 = PS1E Supplier 1 =[ 0,72 =[ Serres Jardins-Nature 2007-2011 GHG Report - + 51,61 + PS2E + 24,69 + EFWW50,CO2 + ( EFWW50,CH4 * 0 +( 0,09 * ) ) ) ) ) ) ) ) ) ) GWPCH4 ) + ( EFWW50,N2O * 21 ) + ( 0,02 * GWPN2O )] * WW50 / 310 )] * 460 / 1000 1000 PS3E 10,43 GWPCH4 ) + ( EFWW50,N2O * 21 ) + ( 0,02 * 28 GWPN2O )] * WW50 / 310 )] * 88,60 / 1000 1000 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7 Supplier 8 Supplier 9 11,94 5,41 4,91 2,43 12,24 0,93 2,86 10,18 PS1Ebio Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7 Supplier 8 Supplier 9 74,42 1239,98 561,61 509,51 252,20 1271,04 96,47 296,58 1056,86 WW50 Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7 88,60 1476,17 668,58 606,56 300,24 1513,14 114,84 Serres Jardins-Nature 2007-2011 GHG Report =[ =[ =[ =[ =[ =[ =[ =[ = = = = = = = = = = = = = = = = = = 0 0 0 0 0 0 0 0 +( +( +( +( +( +( +( +( 840 840 840 840 840 840 840 840 840 * * * * * * * * * * 44,30 738,09 334,29 303,28 150,12 756,57 57,42 /( /( /( /( /( /( /( /( EFWW50,CO2bio DW 0,09 0,09 0,09 0,09 0,09 0,09 0,09 0,09 * * * * * * * * 21 21 21 21 21 21 21 21 88,60 1476,17 668,58 606,56 300,24 1513,14 114,84 353,07 1258,17 / / / / / / / / / / 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1 1 1 1 1 1 1 1 - 50% 50% 50% 50% 50% 50% 50% 50% WW50 )+( )+( )+( )+( )+( )+( )+( )+( 0,02 0,02 0,02 0,02 0,02 0,02 0,02 0,02 ) ) ) ) ) ) ) ) 29 * * * * * * * * 310 310 310 310 310 310 310 310 )] * )] * )] * )] * )] * )] * )] * )] * 1476,17 668,58 606,56 300,24 1513,14 114,84 353,07 1258,17 / / / / / / / / 1000 1000 1000 1000 1000 1000 1000 1000 Supplier 8 Supplier 9 353,07 = 1258,17 = DW Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7 Supplier 8 Supplier 9 44,30 738,09 334,29 303,28 150,12 756,57 57,42 176,54 629,09 = = = = = = = = = = =[ PS2E 176,54 /( 629,09 /( WWM 89 1476 669 607 300 1513 115 353 1258 EFD,CO2 Supplier 1 3,66 =[ 2663 Supplier 2 1,51 =[ 2663 Supplier 3 1,24 =[ 2663 Supplier 4 7,10 =[ 2663 Supplier 5 4,13 =[ 2663 Supplier 6 1,66 =[ 2663 Supplier 7 1,19 =[ 2663 Serres Jardins-Nature 2007-2011 GHG Report 1 1 - *( *( *( *( *( *( *( *( *( *( + ( + ( + ( + ( + ( + ( + ( + ( 1 1 1 1 1 1 1 1 1 1 EFD,CH4 50% ) 50% ) - M * GWPCH4 50% 50% 50% 50% 50% 50% 50% 50% 50% ) ) ) ) ) ) ) ) ) ) ) + ( EED,N2O * GWPN2O )] * DQTy / 1000000 0,14 * 21 ) + ( 0,082 * 310 )] * 1359,36 / 1000000 0,14 * 21 ) + ( 0,082 * 310 )] * 562,01 / 1000000 0,14 * 21 ) + ( 0,082 * 310 )] * 461,24 / 1000000 0,14 * 21 ) + ( 0,082 * 310 )] * 2636,59 / 1000000 0,14 * 21 ) + ( 0,082 * 310 )] * 1534,00 / 1000000 0,14 * 21 ) + ( 0,082 * 310 )] * 617,85 / 1000000 0,14 * 21 ) + ( 0,082 * 310 )] * 440,38 / 1000000 30 Supplier 8 0,59 =[ Supplier 9 3,62 =[ DQTy Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7 Supplier 8 Supplier 9 1359,36 562,01 461,24 2636,59 1534,00 617,85 440,38 218,06 1344,16 DTOT Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7 Supplier 8 Supplier 9 5760,00 2381,40 1954,40 11172,00 6500,00 2618,00 1866,00 924,00 5695,60 PS3E Serres Jardins-Nature 2007-2011 GHG Report + 2663 ( + 2663 ( = = = = = = = = = = DTOT = = = = = = = = = = DJN-S = [ 5760,00 2381,40 1954,40 11172,00 6500,00 2618,00 1866,00 924,00 5695,60 960 24 70 266 250 24 93 39 49 EFD,CO2 * * * * * * * * * * 21 ) + ( 0,082 * 310 )] * 218,06 / 1000000 0,14 * 21 ) + ( 0,082 * 310 )] * 1344,16 / 1000000 FET 0,236 0,236 0,236 0,236 0,236 0,236 0,236 0,236 0,236 * * * * * * * * * * + ( 0,14 * 2 2 2 2 2 2 2 2 2 2 EFD,CH4 * * * * * * * * * * Nrun * GWPCH4 3 49 14 21 13 55 10 12 58 ) + ( EED,N2O 31 * GWPN2O )] * DQOy / 1000000 2007 = 10,43 [ + 2663 ( 0,14 * 21 ) + ( 0,082 * Project emission reductions calculation for 2007 = 3749,87 = TPERy 2007 Serres Jardins-Nature 2007-2011 GHG Report BSTE 3836,59 - PSTE 86,73 32 310 )] * 3875 / 1000000 Appendix 2 – Conflict of interest review checklist Conflict of interest review checklist The verifier and the verification team must ensure that they are truly independent from the project, project proponent(s), quantifier, and/or other agents related to the project. The verifier shall avoid any actual or potential conflicts of interest with the project proponent and the intended users of the GHG information. Client name: Serres Jardins-Nature Report identification: Verification report on a Greenhouse Gas Emissions (“GHG”) reduction project – Verification report on a Greenhouse Gas Emissions (“GHG”) (“ reduction project – Biomass boilers used for greenhouse heat generation at Serres Jardins-Nature Date of report: November 1, 2013 Professional: Christine Brosseau, CPA, CA I confirm the following: Yes No Details Independence I remained independent of the activity being verified, and free from bias and conflict of interest. I maintained objectivity ity throughout the verification to ensure that the findings and conclusions will be based on objective evidence generated during the verification. Ethical conduct I have demonstrated ethical conduc conduct through trust, integrity, confidentiality and discretion throughout the verification process. Fair presentation I have reflected truthfully and accurately verification activities, findings, conclusions usions and reports. I have reported significant obstacles encountered during the verification process, as well as unresolved, diverging opinions among verifiers, the responsible party and the client. Due professional care I have exercised due professional care and judgment in accordance with the importance of the task performed and the confidence placed by clients and intended users. I have the necessary skills and competences to undertake the verification. November 1, 2013 Signature Date Conflict of interest review checklist The verifier and the verification team must ensure that they are truly independent from the project, project proponent(s), quantifier, and/or other agents related to the project. The verifier shall avoid any actual or potential conflicts of interest with the project proponent and the intended users of the GHG information. Client name: Serres Jardins-Nature Report identification: Verification report on a Greenhouse Gas Emissions (“GHG”) reduction project – Verification report on a Greenhouse Gas Emissions (“GHG”) reduction project – Biomass boilers used for greenhouse heat generation at Serres Jardins-Nature Date of report: November 1, 2013 Professional: Roger Fournier CPA, CA I confirm the following: Yes No Details Independence I remained independent of the activity being verified, and free from bias and conflict of interest. I maintained objectivity throughout the verification to ensure that the findings and conclusions will be based on objective evidence generated during the verification. Ethical conduct I have demonstrated ethical conduct through trust, integrity, confidentiality and discretion throughout the verification process. Fair presentation I have reflected truthfully and accurately verification activities, findings, conclusions and reports. I have reported significant obstacles encountered during the verification process, as well as unresolved, diverging opinions among verifiers, the responsible party and the client. Due professional care I have exercised due professional care and judgment in accordance with the importance of the task performed and the confidence placed by clients and intended users. I have the necessary skills and competences to undertake the verification. November 1, 2013 Signature Date