abitibi-consolidated inc
Transcription
abitibi-consolidated inc
ABITIBI-CONSOLIDATED COMPANY OF CANADA MEETING THE CHALLENGE OF CLIMATE CHANGE UPDATE ON ENERGY USE AND GREENHOUSE GAS EMISSION INVENTORY Consolidated Report for 1995-2001 vs 1990 Prepared for: Canada’s Climate Change Voluntary Challenge and Registry (VCR) Program Date: June 30, 2003 Table of Contents Table of Contents.............................................................................................................................. 2 EXECUTIVE SUMMARY .................................................................................................................. 4 1.0 INTRODUCTION..................................................................................................................... 5 2.0 COMPANY PROFILE.............................................................................................................. 5 3.0 SENIOR MANAGEMENT COMMITMENT .............................................................................. 6 4.0 BASELINE YEAR – QUANTIFICATION.................................................................................. 8 4.1 Methodology ........................................................................................................................ 8 4.2 Quantification ....................................................................................................................... 9 5.0 RESULTS ACHIEVED ............................................................................................................ 9 5.1 Summary of Results – 1990 and 1995-2001 ....................................................................... 9 5.2 Emission rates for Individual Greenhouse Gases .............................................................. 13 5.2.1 Carbon Dioxide (CO2).................................................................................................. 13 5.2.2 Methane (CH4)............................................................................................................. 13 5.2.3 Nitrous oxide (N2O)..................................................................................................... 13 5.2.4 General discussion ...................................................................................................... 13 5.3 Other GHG Sources.......................................................................................................... 13 5.4 Contribution of Key Energy Sources to GHG Emission Projections .................................. 14 5.4.1 Fossil Fuels ................................................................................................................. 14 5.4.2 Auxiliary Fuels ............................................................................................................. 15 5.4.3 Biomass....................................................................................................................... 15 5.4.4 Electricity (Indirect Emissions)..................................................................................... 16 5.5 Verification ......................................................................................................................... 16 6.0 GHG EMISSION PROJECTIONS ......................................................................................... 16 6.1 Methodology ...................................................................................................................... 16 6.2 Quantification ..................................................................................................................... 17 7.0 GHG emissions reduction Objective ..................................................................................... 19 7.1 Objective Definition ............................................................................................................ 19 7.2 Process for Target Review and Update ............................................................................. 19 7.3 Measures to Achieve Target (Action Plan) ........................................................................ 19 8.0 EDUCATION, TRAINING AND AWARENESS...................................................................... 20 8.1 Climate Change and Abitibi-Consolidated Employees ...................................................... 20 8.2 Climate Change and External Stakeholders ...................................................................... 21 APPENDIX A ............................................................................................................................... 23 APPENDIX B ............................................................................................................................... 26 B-1: Environmental, Health and Safety Policy ........................................................................... 27 B-2 : Sustainable Forest Management Policy.............................................................................. 28 APPENDIX C ............................................................................................................................... 29 APPENDIX D ............................................................................................................................... 35 D-1: Estimate of GHG emissions produced by Solid Wood Product Divisions ........................... 36 APPENDIX E ............................................................................................................................... 39 Abitib Consolidated Company of Canada- VCR Report 2003 Page 2 List of Figures and Tables Figure 1: Pulp and Paper Production and Greenhouse Gas Emissions Figure 2: Change in relative and total (net) GHG emissions vs 1990 Figure 3: Specific Energy Trend Figure 4: Contribution of Principle Energy Sources to the Total Energy Consumption Figure 5: Abitibi-Consolidated Biomass Consumption 10 12 12 14 15 Table 1: Summary of total NET GHG emissions and inventory for each GHG in 1990, and for 1995-2001 – Canadian Pulp and paper divisions ....................................................................................................... 11 Table 2: Summary of Changes in GHG emissions for 1990 and for the 1995-2001 – Canadian Pulp and paper divisions ....................................................................................................................................... 11 Table 3: Actual and Projected GHG Emission Scenarios ............................................................................ 18 . Abitib Consolidated Company of Canada- VCR Report 2003 Page 3 EXECUTIVE SUMMARY With this progress report, Abitibi-Consolidated Company of Canada (ACCC) is reaffirming its participation in Canada’s Climate Change Voluntary Challenge and Registry (VCR) Program. Abitibi-Consolidated’s goal is to continue on our course as a socially, economically and environmentally responsible company, benefiting both our own interests and those of the communities in which we operate. We are proud of our performance in having reduced net greenhouse gas (GHG) emissions by 29% since 1990. This was made possible by the efforts of all our employees. We also recognize that climate change is an ongoing issue that continues to threaten all the earth’s ecosystems, and so in the coming years, we will continue to look for opportunities to reduce our direct and indirect GHG emissions. This submission is the first VCR report that consolidates the energy use and greenhouse gas (GHG) emissions inventory for all of the company’s 17 pulp and paper1 manufacturing facilities in Canada. It also describes the progress made since 1999 in reducing those emissions. In 2001, Abitibi-Consolidated’s direct GHG emissions, at 1.33 million tonnes carbon dioxide equivalent (CO2e), were nearly 29% lower than the 1990 baseline emissions of 1.87 million tonnes of CO2e. When considered as tonnes of CO2e per tonne of paper production, the GHG emissions intensity in 2001 was 35% lower than the 1990 baseline emissions. In other words, each tonne of paper produced in 2001, created 0.304 tonnes of greenhouse gases (in CO2e). In 1990, each tonne of product we made, produced 0.467 tonnes CO2e. The reduction in direct GHG emissions over the 1990-2001 period is primarily due to the following activities: replacement of Bunker C oil with natural gas at many facilities, the replacement of self generated steam with purchased steam (third party cogeneration), increased biomass combustion as an energy source (in lieu of fossil fuels) and improved energy efficiency (overall reduction in fossil fuel usage per tonne of production). 1 GHG emissions associated with the 24 sawmills and remanufacturing facilities operated by ACI are not included in the totals, but an estimate is attached. The St-Felicien pulp mill was sold in 2002 and therefore it has been excluded from this inventory of Abitibi-Consolidated’s pulp and paper mill emissions of greenhouse gases. Abitib Consolidated Company of Canada- VCR Report 2003 Page 4 1.0 INTRODUCTION Abitibi-Consolidated Company of Canada is pleased to reaffirm its participation in Canada’s Climate Change Voluntary Challenge and Registry (VCR) Program and in the Canadian Industry Program for Energy Conservation (CIPEC). These past years, the company has undergone several changes (namely the merger between Abitibi-Price and Stone-Consolidated in 1997 and the acquisition of Donohue Forest Products Inc. in 2000). To make things easier to understand, this report considers the present status of the company’s Canadian operations as if they had been part of the same corporate entity since 1990. Thus, comparisons are always made between the present divisions and their results for 1990. Additionally, when considered globally, company emissions are always compared to the same list of operating units. Appendix A presents a complete list of the company’s facilities. This appendix also includes a list of divisions that are no longer operated by Abitibi-Consolidated (sold or closed) and for which emissions are not included in the current inventory. VCR progress reports were submitted in 1996, 1997, 1998 and 1999 representing various groupings of mills, (submitted by by Abitibi-Price Inc., Stone-Consolidated Inc. and Donohue Forest Products Inc.) This report provides data on energy use and GHG emissions for all the Canadian pulp and paper divisions for the baseline year (1990) as well as the results achieved for the period between 1995 and 20012. It includes GHG emission projections and targets until 2010, along with summary descriptions of measures already taken or that may be taken to achieve future targets. Total GHG emissions are reported for the pulp and paper mills operated by the Company in Canada with individual facility results provided in Appendix C. Greenhouse gas emissions associated with the Company’s 25 sawmills and lumber remanufacturing facilities have not been included in the inventory presented in this report. An estimate of these emissions can be found in Appendix D. 2.0 COMPANY PROFILE Abitibi-Consolidated Company of Canada is a wholly owned subsidiary of Abitibi Consolidated Inc.. It is a Canadian company, with its headquarters at: 1155 Metcalfe, Suite 800 Montreal, Quebec Canada, H3B 5H2 Abitibi-Consolidated is a global leader in newsprint and uncoated groundwood 2 The 1991-1994 data were not recompiled for all divisions because the collection of raw data inputs and calculation methods used at the time were not consistent among all divisions. To ensure a fair comparison, the data for that period are not presented but those for the 1995-2002 period, and for the baseline year of 1990, have been reassessed using a common approach and are included for comparison purposes. Abitib Consolidated Company of Canada- VCR Report 2003 Page 5 papers with ownership interests in 27 paper mills in Canada, the U.S., the U.K. and Asia (including its 50% interest in Pan Asia Paper Co.) and in 22 sawmills, and 3 lumber remanufacturing facilities, and 10 paper recycling centers. The Company has approximately 16,000 employees and it sells its products in nearly 100 countries. Abitibi-Consolidated operates 17 pulp & paper mills in Canada. The complete list of Canadian operations with their addresses is shown in Appendix A. Abitibi-Consolidated owns hydroelectric operations with installed capacity of approximately 530 MW, used by our operations. 3.0 SENIOR MANAGEMENT COMMITMENT Abitibi-Consolidated is committed to reducing its direct GHG emissions through the efficient use and management of all forms of energy. Management of forests in a manner that helps to protect, maintain and enhance forest ecosystem health and productivity is also a key focal area for potential enhanced removal of atmospheric carbon. John W. Weaver, the President and CEO, continues to endorse the Company’s commitment to continue maintaining GHG emissions under 1990 levels. Bruno Tremblay, Senior Vice-President, Technology Services, is responsible for managing issues pertaining to the efficient use of energy and overall greenhouse gas reduction. Policies Senior management endorsement and commitment is further illustrated in the company’s Environmental, Health and Safety Policy and Sustainable Forest Management Policies. These policies show our commitment to the protection and enhancement of the natural resources in our care and to the minimization of the negative impacts of our activities on the environment. These policies are provided in Appendix B. Environmental Management System Abitibi-Consolidated is committed to upgrading its company-wide environmental management system and integrating sustainable forest management components into this system. This management system will allow the company to measure its environmental performance and progress, and to set targets, thereby encouraging continual improvement. In 2002, it was decided that all divisions must have their environmental management systems certified to the ISO 14001 standard. As of June 30th, 2003, eight pulp and paper mills and seven sawmills have obtained this certification. With one exception (Alma), all the remaining Canadian divisions should have their environmental management systems certified by the end of 2003. Abitib Consolidated Company of Canada- VCR Report 2003 Page 6 Sustainability is a key success factor for our industry as for our company as a whole. Accordingly, Abitibi-Consolidated has committed to manage the resources in its care, for the benefit of future generations. One of the tools used to reflect this commitment is forest certification; an independent third-party audit of our practices based on recognized standards. The company committed to develop and implement environmental management and forest management systems (FEMS) in all its woodland operations and to make sure that these systems were certified ISO 14001 by the end of 2002. The scope of our FEMS includes the six sustainable forest management criteria as defined by the Canadian Council of Forest Ministers (CCFM), adopted in 1995. These criteria include conservation of biodiversity; forest condition and ecosystem productivity; soil and water conservation; multiple benefits to society; global ecological cycles of the forest’s contribution to global processes, such as carbon cycles; and accepting society's responsibility to sustainable development. At the end of 2002, Abitibi-Consolidated met its initial goal for certification: currently, 17.3 million hectares of the forest lands under our care (96% of the lands under our management) were included in an FEMS certified to the ISO 14001 standard. In 2002, Abitibi-Consolidated committed to implementing a sustainable forest management standard for all North American operations by the end of 2005. The CSA Z809 standard is our chosen standard for all operations on Canadian public lands. We are well on our way to meeting this goal: as of June 2003, 2.4 milion hectares or 13% of the lands under our management have been certified to this standard. Participation in Research and Development The Company’s commitment to energy and GHG emission reduction is further illustrated through the active participation of senior management representatives on the following task forces to address the climate change issue: • • FPAC’s Sustainabilty Steering Committee FPAC Climate Change Committee Abitibi-Consolidated is an active partner in a number of research institutions that cover a wide range of sustainable forest management aspects and the increased efficiency of manufacturing processes. Among these institutions are: • • • • • Participation in the Sustainable Forest Management Network of the National Centres of Excellence Participation in the consortium de recherche sur la forêt boréale Partner in four model forests belonging to the Canadian Model Forest Network Partner in various university research chairs Partner in the research fund for northern species (Quebec) Abitib Consolidated Company of Canada- VCR Report 2003 Page 7 • Participation with the Pulp and Paper Research Institute of Canada (energy efficient processes and water use reduction for pulp and paper mills) In particular, the transfer of research knowledge to company foresters and forest managers is an essential part of each forest research program and helps AbitibiConsolidated to improve yield and forest planning, and to adapt operating strategies that ensure sustainability of the forest. These are actions that have a positive impact on the rate of carbon uptake and storage in the forest ecosystem. Procurement Policies that Support GHG Emission Reduction Although the company does not, at present, have specific company-wide procurement policies with respect to purchases which are supportive of GHG emission reduction, many of the individual mills have policies with respect to the purchase of energy efficient technologies, including energy efficient motors, variable speed drives, etc. in both new and replacement applications. 4.0 BASELINE YEAR – QUANTIFICATION 4.1 Methodology In this report, 1990 was again used as the baseline year. The greenhouse gases considered are carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O). The same methodology was used to quantify emissions for each subsequent year. First, in order to determine direct GHG emissions3, usage data for all types of fuels used in the 17 pulp and paper divisions were collected and validated4. Emissions of each one of the three gases are estimated by multiplying the quantity of each fuel used, by its emission coefficient as referenced in Environment Canada’s GHG inventories (see Canada’s Greenhouse Gas Inventories 1990-1997, Appendix C). These various gas emissions are then converted into CO2e by multiplying them by their respective global warming potentials (1 for CO2, 21 for CH4 and 310 for N2O). In accordance with the protocol developed by the Intergovernmental Panel on Climate Change (IPCC), we are principally concerned with net GHG emissions, (i.e. CO2 discharged when burning biomass is not included). For clarification however, methane (CH4) and nitrous oxide (N2O) emissions originating from biomass combustion have been included in total net emissions. Detailed GHG emission results are provided in Appendix C and discussed in the following sections of the report. Emissions produced by third parties, for our own manufacturing operations (such as purchased electricity) are considered as an indirect source of GHG and are generally excluded from the Company’s totals. GHG quantities from indirect sources are described in Appendix C and discussed in section 5.4. 3 Unless otherwise specified, references to GHG emissions mean direct emissions only, i.e. emissions resulting directly from our manufacturing operations and not the activities undertaken by third parties (such as purchased electricity). 4 GHG emissions from our lumber divisions (sawmills) and remanufacturing operations, hydroelectric stations and other facilities are not included in this inventory. Abitib Consolidated Company of Canada- VCR Report 2003 Page 8 An estimate of GHG emissions produced by the lumber divisions was developed using detailed data provided by only three of them. This estimate shows that the contribution by the Wood Products Division direct GHG emissions is quite low (less than 3% of total company emissions) as compared to that of the pulp and paper mills. Because of this and since the lumber operations’ information management systems are not as developed, it was decided that collecting detailed information for all remaining divisions for prior years (including the 1990 baseline year) was not practical. If required, a more accurate review may be conducted in the future. The results of this estimate are presented in Appendix D and are included for information purposes only. 4.2 Quantification In the following section (5.1), Table 1 presents the GHG emissions for the baseline year (1990) as compared to the years 1995-2001 for all pulp and paper divisions. In this report, total GHG emissions are generally reported in terms of net tonnes of CO2e and relative tonnes of CO2e (tonnes of CO2e per tonne of production). Data has also been provided for each GHG (CO2, CH4 and N2O). For the year 19905, net emissions exceeded 1.87 million tonnes of CO2e and this gave a net emission rate of 0.467 tonnes of GHG (as CO2e) per tonne of production. Gross emissions (which include CO2 originating from biomass combustion) are found in Table C2 (Appendix C). In 1990, gross emissions of GHG were approximately 3.23 million tonnes of CO2e. A detailed listing of gross GHG emissions can be seen in Appendix C. 5.0 RESULTS ACHIEVED 5.1 Summary of Results – 1990 and 1995-2001 Overall, there has been a significant increase in total production since 19906: production improvements of approximately 19%, 23% and 9% compared to the baseline year, are seen for 1999, 2000 and 2001 respectively. In this same period, total gross emissions7 (in tonnes of CO2e) of GHG have declined by between 2 and 8% while net emissions have declined by up to 29%. Figure 1 presents pulp and paper mill production and total net and gross GHG 5 As stated earlier this data does not include the results obtained for the lumber divisons. An estimate for those results can be found in Appendix D. 6 The overall results for 1998 are not reflective of normal company operations. They include reductions as a result of shutdowns at several Canadian mills for a period of approximately 5 months (due to a labour dispute). 7 A detailed listing of gross GHG emissions can be seen at Appendix C. Abitib Consolidated Company of Canada- VCR Report 2003 Page 9 emissions for the 1990-2001 period. Gross greenhouse gas emissions are provided for information purposes only: they include GHG emissions as a result of biomass combustion, which are considered neutral. Figure 1: Pulp and Paper Production and Greenhouse Gas Emissions 6,000,000 5,000,000 3,000,000 4,000,000 2,500,000 3,000,000 2,000,000 2,000,000 1,500,000 Production (Tonnes) GHG Emissions Tonnes CO2e/year 3,500,000 1,000,000 1,000,000 1990 1995 1996 1997 GHG (Gross) 1998 GHG (Net) 1999 2000 0 2001 Production The reduction in GHG emissions is mainly attributable to the following activities: • • • Replacement of Bunker C with natural gas at many divisions (boilers); Replacement of self generated steam with purchased steam (third party cogeneration activities); Improved energy efficiency (overall reduction in fossil fuel usage per tonne of production). Table 1 presents total GHG emissions for the baseline year (1990) as compared to the years 1995-2001 for all pulp and paper divisions. GHG emissions are reported in terms of absolute tonnes of CO2e, relative tonnes of CO2e (net tonnes of CO2e per tonne of production) and tonnes for each type of gas (CO2, CH4 and N2O). Table 2 shows the percent change in GHG emissions (in tonnes of CO2e) that has occurred since 1990. Table 2 also presents the change in GHG emissions intensity (tonnes CO2e / tonne production) between the baseline year and each year in the period 1995-2001 period. These changes are shown graphically in Figure 2. Abitib Consolidated Company of Canada- VCR Report 2003 Page 10 Table 1: Summary of total NET GHG emissions and inventory for each GHG in 1990, and for 1995-2001 – Canadian Pulp and paper divisions Production Year tonnes 1990 1995 1996 1997 1998 1999 2000 2001 4,015,626 4,671,703 4,333,623 4,597,322 3,688,452 4,766,678 4,924,393 4,376,052 CO2 equivalent net emissions CO2 CH4 N2O tonnes tonnes / tonne production tonnes tonnes tonnes 1,873,454 1,800,508 1,729,048 1,569,747 1,334,480 1,372,774 1,474,289 1,330,833 0.467 0.385 0.399 0.341 0.362 0.288 0.299 0.304 1,872,346 1,771,254 1,699,598 1,644,662 1,569,431 1,716,188 1,652,310 1,481,513 142.1 135.5 125.2 142.8 144.9 173.7 177.6 165.3 109.2 105.5 97.2 121.0 123.7 152.3 151.8 137.7 Table 2: Summary of Changes in GHG emissions for 1990 and for the 19952001 – Canadian Pulp and paper divisions CO2 equivalent Net Emissions Year 1990 1995 1996 1997 1998 1999 2000 2001 Intensity Basis tonnes CO2e/tonne Production tonnes Change Vs 1990 tonnes Change Vs 1990 1,873,454 1,800,508 1,729,048 1,569,747 1,334,480 1,372,774 1,474,289 1,330,833 N.A 3.9% 7.7% 16.2% 28.8% 26.7% 21.3% 29.0% 0.467 0.385 0.399 0.341 0.362 0.288 0.299 0.304 6.9 17.4% 14.5% 26.8% 22.5% 38.3% 35.8% 34.8% Specific energy data has been provided in Appendix C. The trend shown in Figure 3, indicates that total specific energy8 (energy/production unit in GJ/tonne) tends to decrease, especially for the last 3 years (6.8% reduction in 2001 as compared to 1990). 8 In this case, specific energy also includes energy purchased from third parties (electricity). Abitib Consolidated Company of Canada- VCR Report 2003 Page 11 Figure 2: Change in relative and total (net) GHG emissions vs 1990 0.0% 1990 1995 1996 1997 1998 1999 2000 2001 -5.0% % Change in total GHG Emissions versus 1990 -10.0% -15.0% -20.0% -25.0% -30.0% -35.0% % Change in relative GHG emissions versus 1990 -40.0% -45.0% Figure 3: Specific Energy Trend GigaJoules/tonne 25.0 20.7 20.1 20.0 19.9 19.7 19.0 18.8 19.3 18.2 15.0 1990 1995 1996 Abitib Consolidated Company of Canada- VCR Report 2003 1997 1998 1999 2000 2001 Page 12 5.2 Emission rates for Individual Greenhouse Gases The data for each one of the three GHGs can be found in Table 1 and the detailed results in Tables C-6 through C-9 (Appendix C). A brief description of each is included below. 5.2.1 Carbon Dioxide (CO2) Gross CO2 emissions have had an an overall decrease of nearly 9 % in 2001 compared to 1990. The decrease is more noticeable in net emissions: over time, net CO2 emission levels have always been lower than in 1990, and were 20.9% below the 1990 baseline level in 2001. 5.2.2 Methane (CH4) CH4 emissions have tended to increase in recent years: compared to 1990; increases range from 16-25 % in over the 1999 to 2001 period. However, CH4 contributes only 0.1 % to total gross CO2e emissions and around 0.3% of net emissions. 5.2.3 Nitrous oxide (N2O) N2O emissions follow the same trend as CH4 emissions and show an increase of between 25 and 40% over the past three years compared to 1990 levels. However, N2O contributes only 1.5% of gross CO2e emissions and around 3% of net emissions. 5.2.4 General discussion In general, the observed trend for each individual GHG can be explained by the increased use of biomass fuels and the replacement of Bunker C with natural gas. An examination of emission factors used shows that bark and biomass combustion produces more CH4 and N2O emissions than heavy and light oils or natural gas. However, when compared with fossil fuels, biomass produces half as much CO2e emissions. Therefore, while replacement of fossil fuels with biomass tends to increase CH4 and N2O production, it still results in a significant overall reduction in net CO2e emissions when compared to fossil fuel combustion. 5.3 Other GHG Sources Appendix E presents a discussion of potential methane emissions originating from pulp and paper mill process waste disposal sites (landfills). Abitib Consolidated Company of Canada- VCR Report 2003 Page 13 This analysis shows that emissions produced by the Company’s landfills could represent approximately 10% of total greenhouse gas emissions. These results are considered, at best, a conservative estimate and involve a significant level of uncertainty and so they have not been included in CO2e totals reported herein. In the future, it is expected that more extensive site-specific analysis can be done to validate these theoretical results. 5.4 Contribution of Key Energy Sources to GHG Emission Projections Figure 4 shows the contribution of the main energy sources to the overall energy usage for each year. The discussion of each of the key sources is provided below. Figure 4: Contribution of Principle Energy Sources to the Total Energy Consumption 100% 18% 17% 16% 46% 47% 47% 18% 19% 49% 49% 30% 1997 21% 22% 22% 50% 48% 49% 30% 26% 25% 23% 1998 1999 2000 2001 80% 60% 40% 20% 36% 34% 35% 1990 1995 1996 0% Fossil Fuels 5.4.1 Electricity Biomass Fossil Fuels The overall fossil fuel contribution (including auxiliary fuels) to total energy use decreased from 36% in 1990 to 23% in 2001. Bunker C use decreased sharply between 1990 and 1999 (up to 45% reduction compared to 1990 levels. In recent years consumption has remained below 1990 levels (24% below 1990 in 2000 and 12% below 1990 in 2001. Natural Gas consumption has also decreased significantly below 1990 levels: in 2001 usage was nearly 50 % below 1990 levels. Abitib Consolidated Company of Canada- VCR Report 2003 Page 14 5.4.2 Auxiliary Fuels Auxiliary fuels include the various fuels used in mobile equipment, i.e. gasoline, diesel and propane. Overall, the contribution of all these fuels has declined since 1990. Reductions ranging from 20% to 50% have been observed. 5.4.3 Biomass Overall, the contribution of biomass combustion to total energy (including purchased electricity) utilized, rose from 18% in 1990 to 22% in 2001. The use of biomass as an energy source increased significantly until 2000. Most of the increase was due to the burning of increased amounts of selfgenerated biomass (versus biomass purchased from external sources). Biomass combustion is considered to be “carbon neutral”. In 2001, the company consumed 25% more biomass (for energy purposes) than 1990. This trend is expected to continue increasing in the future. The overall trend in biomass consumption for energy purposes is shown in Figure 5 Figure 5: Abitibi-Consolidated Biomass Consumption 900,000 840,506 779,696 800,000 723,978 Tonnes /year 700,000 600,000 651,621 584,009 679,520 568,177 516,873 500,000 400,000 300,000 200,000 100,000 0 1990 1995 1996 1997 1998 1999 2000 2001 Year Abitib Consolidated Company of Canada- VCR Report 2003 Page 15 5.4.4 Electricity (Indirect Emissions) As seen in Figure 4, the overall contribution of electricity to total energy utilized is relatively stable. Energy needs from electricity account for between 46% and 49% of total energy needs for the 1990-2001 period. However, the absolute use of self-generated and purchased electricity has increased, peaking in 2000 (18% increase over 1990) and then decreasing in 2001 (8.4%, or a decrease of approximately 10% over the previous year). The use of electricity generated on site has levelled over the last three years while purchased electricity followed the general trend. Thus, a greater share of energy purchased from outside sources is being used to meet higher production rates. Indirect GHG emissions originating from purchased electricity follow much the same trend as electricity use). Indirect emissions account for 14% to 18% of total gross direct emissions but 25% to 40% of total net emissions. The details of these results can be seen in Appendix C. This trend with respect to indirect GHG emissions is partly the result of the general production rate increases and the greater use of thermomechanical pulping (TMP) manufacturing processes in some mills. TMP requires more electrical energy, however the process results in a significantly higher yield of raw fiber use (less wastage), and a reduction in the use of chemical pulp, both of which provide other measurable environmental benefits. 5.5 Verification Abitibi-Consolidated’s energy consumption is verified using energy/fuel supplier records. Quarterly energy use reports are submitted to Statistics Canada and to FPAC. Financial records are audited annually by the internal audit department. The calculation of GHG emissions has not been formally verified by a third party. 6.0 GHG EMISSION PROJECTIONS 6.1 Methodology GHG emissions are largely related to energy and fossil fuel use. It is difficult to accurately forecast consumption of these to the year 2010 since they may vary considerably from year to year due to external factors that will impact energy usage, including weather, economic conditions or other causes. Despite this uncertainty, a method for assessing potential future GHG emissions has been developed and is included here for illustrative purposes only. Abitib Consolidated Company of Canada- VCR Report 2003 Page 16 This estimate of future emissions does not take into account any specific obligations that will arise as a result of the federal government’s National action plan on climate change as established in November 2002. Two “extreme” scenarios were used to project actual GHG emissions. The real future emissions are expected to be somewhere between these two extremes. All results are provided in Table 3. Scenario 1: No further relative GHG reduction improvement after 2001, with constant production rate, For this analysis it is assumed that no additional measures will be taken to reduce GHG after 2001 and that the overall emission rate for the 2002-2010 period will remain constant and equal to that average of the past three years. Production is also assumed to be constant at the current average rate. Scenario 2 : Maintain current GHG intensity while Production increases. For this scenario, the GHG Emission intensity is assumed to be constant at current levels (average of past three years) while a more realistic production rate is used. In this scenario production is expected to increase by approximately 10% by 2010, as a result of general efficiency improvements. This increased is applied progressively as a 1.1 % production improvement annually. For both scenarios 1 and 2, future GHG emissions are estimated by multiplying the projected net GHG emission rate by the expected production rate. 6.2 Quantification Emission projections for the 2002-2010 period, calculated using the two scenarios described in section 6.1, are summarized in Table 3 below, along with the % change from the 1990 baseline. Under scenario 1, 2010 total GHG emissions could be on the order of 1.4 million tonnes CO2e. Under scenario 2, GHG emissions could be higher at approximately 1.54 million tonnes CO2e annually. Actual results are expected to be in between these two extremes. A less likely scenario, not shown here, for estimating future emissions of GHG assumes that the pulp & paper mills would be able to continue reducing GHG emissions at the same rate as in past years (decreasing emission intensity). This scenario is extremely optimistic and it does not reflect the technological limitations of current manufacturing processes. It would require a fundamental change to the current approach for providing energy at several mills (e.g.: increased use of third party cogeneration or extension of natural gas pipelines where currently not available). Abitib Consolidated Company of Canada- VCR Report 2003 Page 17 Table 3: Actual and Projected GHG Emission Scenarios 1990 1995 1996 1997 1998 1999 2000 2001 4.016 4.672 4.337 4.597 3.688 4.767 4.924 4.376 2002 Total Actual Production (million t/yr) 4.689 Total Forcasted Production (million t/yr) Scenario 1 4.741 Total Forcasted Production (million t/yr) Scenario 2 0.467 0.385 0.399 0.341 0.362 0.288 0.299 0.304 Actual net t CO2e/t 0.297 1999-2001 avg. net t CO2e/t 1.873 2.180 2.022 2.145 1.721 2.224 2.297 2.042 2.212 Projected GHG emission if no measures taken since 1990 (million t CO2e/yr) 0.0% 16.3% 7.9% 14.5% -8.1% 18.7% 22.6% 9.0% 18.1% % change from 1990 (base tonnes/year) 1.873 1.801 1.729 1.570 1.334 1.373 1.474 1.331 Actual GHG emissions (million t CO2e/yr) 0.0% -3.9% -7.7% -16.2% -28.8% -26.7% -21.3% -29.0% % change from 1990 (absolute emissions) 0.0% -17.4% -14.5% -26.8% -22.5% -38.3% -35.8% -34.8% % change of actual emissions intensity since 1990 1.393 Scenario 1: Projected GHG emissions if no additional measures after 2001 (Constant average GHG intensity and production rate % change from 1990 of projected emissions for Scenario 1 Scenario 2: Projected GHG At constant Emission intensity but increasing production % change from 1990 of projected emissions for Scenario 2 Abitib Consolidated Company of Canada- VCR Report 2003 2003 2004 2005 2006 2007 2008 2009 2010 4.709 4.709 4.709 4.709 4.709 4.709 4.709 4.709 4.793 4.846 4.899 4.953 5.007 5.062 5.118 5.174 0.297 0.297 0.297 0.297 0.297 0.297 0.297 0.297 2.236 2.261 2.286 2.311 2.336 2.362 2.388 2.414 19.4% 20.7% 22.0% 23.3% 24.7% 26.1% 27.5% 28.9% 1.393 1.393 1.393 1.393 1.393 1.393 1.393 1.393 -25.7% -25.7 25.7% -25.7 25.7% -25.7 25.7% -25.7 25.7% 1.408 1.423 1.439 1.455 1.471 1.487 1.503 1.520 1.537 -24.8% -24.0% -23.2% -22.3% -21.5% -20.6% -19.7% -18.9% -18.0% Page 18 7.0 GHG emissions reduction Objective 7.1 Objective Definition Abitibi-Consolidated’s objective with respect to GHG emissions is to consistently reduce its overall GHG emission rate in net tonnes of CO2e/tonne of production from the 1990 baseline level. With total production from all pulp and paper mill operations forecasted at over 5,000,000 tonnes/year, the GHG emission target in terms of absolute tonnes of CO2e would be to continue decreasing our GHG emission rate and to the extent possible remain below our current absolute emissions rate of 1.33 million net tonnes of CO2e. Currently, the federal government has targeted the pulp and paper sector for further GHG emission reductions, as a component of the national implementation plan for the Kyoto Protocol. At this time, it is not known what additional commitments might be imposed on the company. When these are known they will be integrated into our emission reduction plans. The overall company-wide energy reduction goal is 1% reduction per year. The actual reduction in direct GHG emissions from operations associated with this energy reduction over the next few years will depend on the implementation at each facilty, of a site specific energy strategy that optimizes the energy portfolio in such a way that minimizes use of high GHG intensity fuels (where equipment and processes allow), and increases consumption of biomass type fuels. This approach will allow the company to reduce direct GHG reductions where opportunities exist. The company’s overall energy reduction strategy should also permit reductions of indirect emissions as a result of reduced electricity purchases. 7.2 Process for Target Review and Update As previously mentioned, Abitibi-Consolidated has appointed the Senior VicePresident, Technology Services to coordinate and oversee activities and projects related to energy usage and GHG emission reduction. All projects are reviewed on an annual basis along with the overall performance of each division. 7.3 Measures to Achieve Target (Action Plan) In 2003, the company has undertaken a program to develop an inventory of GHG reduction opportunities across all pulp and paper divisions. Once these are identified, it will be possible to develop additional targets related to GHG emission reduction, in consideration of the full costs and co-benefits associated with such projects. For example, the capacity and opportunity to consume greater amounts of biomass must be assessed against the need for Abitib Consolidated Company of Canada- VCR Report 2003 Page 19 additional pollution control measures as a result of increased emissions of other contaminants. The company is currently collaborating with the Canadian Forest service on forest carbon modeling and sequestration projects at two of the model forests where we are partners (Lake Abitibi Model Forest and the Western Newfoundland Model Forest). Starting in 2004, the company will be tracking the GHG intensity of its operations on an annual basis as part of its performance incentive program. The inclusion of this new performance target may result in some divisions establishing specific improvement targets related to greenhouse gases. These targets would be in addition to general corporate targets energy reduction. Currently, the federal government has targeted the pulp and paper sector for further GHG emission reductions, as a component of the national implementation plan for the Kyoto Protocol. At this time, it is not known what additional commitments might be imposed on the company. For this reason, and as a result of the more substantive review of potential projects, underway (noted above), a list of specific activities or projects that may reduce GHG emissions or energy consumption is not available at this time. This also includes any additional projects that may enhance carbon sequestration or provide for afforestation potential, on the forest lands which are owned by Abitibi-Consolidated or under our management responsibility. 8.0 EDUCATION, TRAINING AND AWARENESS Abitibi-Consolidated’s goal is to continue on our course as a socially, economically and environmentally responsible company, benefiting both our own interests and those of the communities in which we operate. We will continue to work together with all our stakeholders but especially with those in the communities where we operate. The company is proud of its performance in having reduced net GHG emissions by 29% since 1990. This was made possible by the efforts of all our employees. We recognize that the forests upon which our activities depend may suffer from the consequences of climate change and so we will continue to work with all stakeholders to prevent thes impacts. We will continue to look for opportunities to reduce our direct GHG emissions. 8.1 Climate Change and Abitibi-Consolidated Employees Abitibi-Consolidated will utilize this report as a tool to continue to raise awareness of climate change issues within the organization and among our employees, and to encourage the use of ecologically efficient practices at work and at home. The report itself will be publicly available through its posting on the company website. Abitib Consolidated Company of Canada- VCR Report 2003 Page 20 More specifically it will be made available to all employees through the companywide intranet and by other means. Through the implementation of a local environmental management system, all divisions are required to establish processes that ensure employees are properly trained in the environmental impacts of their activities. Where necessary, this will include training on the tools that are available to them, to reduce emissions of greenhouse gases. We will continue to use the internal networks and discussion forums that are already established to promote the exchange and use of best practices, and sharing of information across all operations. Some of these, related to greenhouse gas reduction and energy efficiency include: 8.2 • The publication of climate change/GHG emission articles in addition to energy awareness articles in company newsletters, on the website or through the environmental intranet. • Employee participation in meetings and other forms of inter-divisional forums and technical meetings that promote the exchange of best practices between the different Abitibi-Consolidated operations, including best practices in the area of energy efficiency. • Use of company specific electronic forums / discussion groups / electronic billboards for information exchange • Promoting the establishment of local energy reduction committees and task forces. • Employee participation in external networks and industrial associations where knowledge of current practices and technologies can be obtained and retransmitted within our operations. • Participation in relevant research related to improving the overall energy efficiency of our processes and promoting system closure. Climate Change and External Stakeholders At present, Abitibi-Consolidated does not have a formal program aimed at external suppliers with respect to GHG emissions or climate change. However, for major capital projects and equipment replacement, we work with our suppliers to introduce processes that are less harmful to the environment and implement more energy-efficient technologies where economically feasible. Abitib Consolidated Company of Canada- VCR Report 2003 Page 21 Abitibi-Consolidated does participate in various external committees and working groups where energy reduction, greenhouse gases or climate change may be discussed. Some of these include: • • • • • Forest Carbon, Energy and Climate Change committees of the Forest Products Association Of Canada, The Council of Quebec Forest Industries The Ontario Forest Products Association etc. The EXCEL Forum Forest and environmental research networks as previously discussed. Abitib Consolidated Company of Canada- VCR Report 2003 Page 22 APPENDIX A Abitib Consolidated Company of Canada- VCR Report 2003 Page 23 Table A - 1 List of Canadian pulp and paper divisions DIVISION Alma Alma QC Amos Amos QC Baie-Comeau Baie-Comeau QC Beaupré Beaupré QC Belgo Shawinigan QC Clermont Clermont , QC Laurentide Grand-Mère QC Kénogami Jonquière QC Port-Alfred La Baie QC Fort Frances Fort Frances ON Fort William Thunder Bay ON Iroquois Falls Iroquois Falls ON Kenora Kenora ON Thorold Thorold ON Grand Falls Grand Falls NF Stephenville Stephenville, NF Mackenzie Paper Mackenzie BC Division TOTAL – 17 CANADIAN MILLS ADDRESS Table A - 2 List of pulp and paper divisions outside Canada DIVISION Alabama River Newsprint (50 % partnership) Augusta Newsprint (50 % partnership) (Georgia) Lufkin (Texas) Sheldon (Texas) Snowflake (Arizona) Bridgewater Paper Company (United Kingdom) ADDRESS Caliborne, Alabama USA Augusta, Georgia, USA Lufkin TX USA Houston TX USA Snowflake AZ, USA Ellesmere Port, UK Pan-Asia Paper Company – 50 % partnership (4 mills in South Korea, China, Thailand) n.a. TOTAL – 10 mills outside Canada Abitib Consolidated Company of Canada- VCR Report 2003 Page 24 Table A - 3 Sawmills and Secondary Manufacturing Operations Owned by ACCC DIVISION Québec - Abitibi region Senneterre ADDRESS Senneterre (Québec) Champneuf Champneuf (Québec) Comtois Lebel-sur-Quévillon (Québec) Québec - Lac-Saint-Jean region Chibougameau Girardville St-Félicien (Québec) Girardville (Québec) La Doré La Doré (Québec) Roberval Roberval (Québec) St-Prime (finger-jointing) St-Prime (Québec) St-Prime St-Prime (Québec) St-Thomas Québec - Mauricie region La Tuque Québec - North Shore region Outardes Québec - Charlevoix region Saguenay St-Thomas-Didyme (Québec) La Tuque (Québec) Baie Comeau (Québec) Jonquière (Québec) Chateau-Richer Château-Richer (Québec) Petit-saguenay Petit-Saguenay (Québec) St-Fulgence St-Hilarion British Columbia Mackenzie St-Fulgence (Québec) St-Hilarion (Québec) Mackenzie (BC) Table A - 4 Divisions sold or closed Explanation DIVISIONS Wayagamack ADDRESS Trois Rivieres QC Sold 2001 Chandler Chandler QC Sold 2000 West Tacoma West Tacoma, WA Closed 2000 St-Félicien St-Félicien QC Sold in 2002 Abitib Consolidated Company of Canada- VCR Report 2003 Page 25 APPENDIX B Abitib Consolidated Company of Canada- VCR Report 2003 Page 26 B-1: Environmental, Health and Safety Policy Abitibi-Consolidated knows that our long-term health is dependent on the sustainability of the natural resources in our care. We are committed to the protection and enhancement of these resources, as well as the health and safety of our employees and the protection of their communities. Our goal is to strive continuously for improvement in meeting these commitments for the benefit of society today and future generations and for the economic well-being of our company. We Value… The Law Our Policy Manage for compliance with all environmental, health and safety laws and regulations in all operating jurisdictions. Leadership Implement an environmental management program that is consistent with best practices and strives to go beyond compliance with laws and regulations. A Healthy Environment Minimize the negative impacts of all our activities on the environment. Biodiversity Maintain forest biodiversity and wildlife habitat over time and space, through careful planning, silvicultural prescriptions and forest renewal programs appropriate for each ecosystem. Wise Use of Resources Actively encourage waste reduction, recovery at source and recycling. Multiple Use and Sustainable Yield Our Sustainable Forest Management (SFM) practices encourage and seek balance in the multiple use of forest lands while ensuring that we manage for a sustainable yield of fibre. Public Participation and Open Communication Dialogue with all stakeholders, being sensitive and responsive to the concerns of those impacted by our operations. Learning Actively encourage a high level of environmental, health and safety knowledge among our employees and within our host communities. Health and Safety Place a top priority on the health and physical well-being of our employees by providing a safe working environment and promoting the best work practices. In meeting these objectives, the Company will inform and train employees in the procedures and risks related to their duties for their protection and that of their co-workers, recognizing that employee involvement is essential in meeting these objectives. Pollution Prevention Produce products that are safe for the environment, our employees and customers. Our Sustainable Forest Management and Health and Safety policies supplement this Environmental, Health and Safety Policy. We will only achieve our vision to be the world’s preferred marketer and manufacturer of papers for communication by meeting all of these commitments. This policy is available to the general public upon request. In addition, it can be found on the Company’s Web site at the following address: www.abicon.com. Abitib Consolidated Company of Canada- VCR Report 2003 Page 27 B-2 : Sustainable Forest Management Policy Abitibi-Consolidated is committed to Sustainable Forest Management (SFM) through the integration of environmental, economic, social and cultural values. Application of sustainable forest management practices balances the interests of all forest stakeholders while ensuring a continued and predictable supply of quality wood fibre at a competitive cost. We Value… Healthy Forests Our Policy Manage our forests in a manner that helps to protect, maintain and enhance forest ecosystem health and productivity. The Law and Leadership Meet or exceed applicable legislative, regulatory and policy requirements. Best management methods and practices will be applied to achieve excellence. Multiple Use Our SFM plans take into account the values and concerns of all stakeholders. Public Participation and Open Communication Dialogue with the public and other stakeholders promotes the application and benefits of multiple use and builds mutual understanding. The Contribution of our Human Resources All employees will be held to the highest standard of performance. Training, continuous learning and active participation in the decision-making process are encouraged. Research and Development Participate in research that advances understanding of forest science and best management practices. Continual Improvement Measure our progress and periodically assess our performance through control and audit processes to ensure continual improvement of SFM. Abitib Consolidated Company of Canada- VCR Report 2003 Page 28 APPENDIX C Abitib Consolidated Company of Canada- VCR Report 2003 Page 29 Table C - 1 Production of pulp and paper divisions in tonnes - 1990 and 1995-2001 Alma Amos Baie-Comeau Beaupré Belgo Clermont Fort Frances Fort William Iroquois Falls Grand Falls Kenora Kénogami Laurentide Mackenzie Port-Alfred Stephenville Thorold TOTAL %Change vs 1990 1990 1995 1996 1997 1998 1999 2000 2001 203,447 169,834 403,754 141,994 329,199 329,258 355,109 118,280 259,191 149,245 307,323 188,627 185,289 159,537 372,804 148,086 194,649 4,015,626 0.0% 248,577 175,457 506,788 175,749 335,742 313,169 373,262 144,892 303,615 207,904 302,324 238,064 273,189 162,904 394,177 179,198 336,692 4,671,703 16.3% 226,889 180,437 474,234 153,404 327,328 318,618 302,108 123,909 257,355 192,864 248,777 215,935 267,900 163,864 363,859 164,946 351,196 4,333,623 7.9% 259,964 180,627 509,822 177,604 334,165 335,030 333,197 132,867 295,038 190,325 281,556 225,179 261,691 165,274 373,081 174,907 366,995 4,597,322 14.5% 271,496 178,340 519,962 93,807 188,318 335,145 192,468 69,746 155,957 107,211 160,836 221,057 163,775 179,824 365,451 98,470 386,589 3,688,452 -8.1% 281,566 199,421 541,444 180,161 385,528 341,075 349,082 119,696 268,280 192,931 282,724 215,235 305,029 177,179 364,864 174,721 387,742 4,766,678 18.7% 288,245 196,018 560,382 171,688 372,790 351,772 375,057 141,751 278,849 206,017 329,036 223,524 321,821 182,429 360,561 180,168 384,285 4,924,393 22.6% 285,566 175,243 514,941 198,200 302,264 331,101 344,782 139,691 249,866 176,620 177,522 171,467 326,552 156,837 276,253 173,152 375,995 4,376,052 9.0% Table C - 2 Net GHG emissions from pulp and paper divisions in tonnes of CO2e - 1990 and 1995-2001 Alma Amos Baie-Comeau Beaupré Belgo Clermont Fort Frances Fort William Iroquois Falls Grand Falls Kenora Kénogami Laurentide Mackenzie Port-Alfred Stephenville Thorold TOTAL %Change vs 1990 1990 1995 1996 1997 1998 1999 2000 2001 116,853 18,203 257,344 56,974 164,717 143,147 146,860 22,949 70,461 78,179 131,076 131,085 126,354 75,507 174,466 90,921 68,359 1,873,454 0.0% 147,524 16,445 109,474 77,728 187,062 107,337 45,041 39,128 148,032 47,861 126,492 126,800 112,027 76,308 219,979 95,121 118,149 1,800,508 -3.9% 134,670 18,064 91,575 82,893 150,440 108,718 39,525 44,865 120,523 57,745 120,381 127,224 100,852 88,509 228,720 89,544 124,800 1,729,048 -7.7% 99,232 11,053 80,401 87,183 156,020 95,944 38,780 38,173 28,273 62,107 133,585 124,906 99,192 64,270 228,486 95,784 126,357 1,569,747 -16.2% 109,738 12,014 61,504 50,219 105,327 95,125 27,072 27,210 13,270 57,289 141,115 114,221 63,695 50,662 231,031 49,768 125,220 1,334,480 -28.8% 88,360 14,358 50,979 81,719 150,582 94,291 39,911 29,724 18,176 76,283 143,121 80,352 100,252 41,906 160,613 73,543 128,604 1,372,774 -26.7% 84,730 12,402 64,394 82,270 169,756 101,102 46,633 25,965 14,378 66,871 150,083 118,539 101,637 45,677 177,914 80,035 131,903 1,474,289 -21.3% 78,691 8,711 44,181 89,416 161,078 98,814 41,434 28,884 7,233 58,889 74,107 107,799 117,963 29,208 170,983 88,031 125,410 1,330,833 -29.0% Abitib Consolidated Company of Canada- VCR Report 2003 Page 30 Table C - 3 Gross GHG emissions from pulp and paper divisions in tonnes of CO2e - 1990 and 1995-2001 Alma Amos Baie-Comeau Beaupré Belgo Clermont Fort Frances Fort William Iroquois Falls Grand Falls Kenora Kénogami Laurentide Mackenzie Port-Alfred Stephenville Thorold TOTAL %Change vs 1990 1990 1995 1996 1997 1998 1999 2000 2001 155,606 185,393 271,924 74,803 166,208 178,862 655,173 79,589 234,186 139,424 198,069 131,085 184,638 75,507 306,361 129,681 68,359 3,234,867 0.0% 175,089 175,047 314,547 84,478 187,234 113,621 560,271 86,108 200,007 91,316 219,870 126,800 170,309 76,308 311,033 154,836 118,149 3,165,021 -2.2% 155,694 164,460 283,895 89,718 150,440 112,027 480,304 82,278 170,188 101,620 208,353 127,224 165,190 88,509 309,820 128,964 124,800 2,943,484 -9.0% 130,672 161,959 312,900 92,853 156,020 121,036 518,942 65,875 82,693 108,172 247,323 124,906 156,844 154,603 331,210 132,234 126,357 3,024,599 -6.5% 136,120 163,095 304,693 54,314 105,327 114,852 289,195 40,681 31,615 95,344 203,440 114,221 99,559 307,286 353,423 73,168 125,220 2,611,554 -19.3% 130,360 158,358 284,719 83,684 150,582 113,341 513,401 64,892 52,646 130,178 256,731 80,352 164,512 417,311 316,343 113,143 128,604 3,159,158 -2.3% 130,555 161,603 293,816 84,205 169,756 124,097 565,015 67,905 39,413 123,556 374,199 118,539 168,165 295,744 334,574 123,550 131,903 3,306,595 2.2% 125,626 160,991 286,947 91,456 161,078 119,259 485,143 83,874 19,023 114,524 251,647 107,799 180,607 205,746 339,840 115,805 125,410 2,974,775 -8.0% Table C - 4 Net GHG emission intensity from pulp and paper divisions in tonnes of CO2e per tonne of production- 1990 and 1995-2001 Alma Amos Baie-Comeau Beaupré Belgo Clermont Fort Frances Fort William Iroquois Falls Grand Falls Kenora Kénogami Laurentide Mackenzie Port-Alfred Stephenville Thorold Average Average % Change vs 1990 1990 0.574 0.107 0.637 0.401 0.500 0.435 0.414 0.194 0.272 0.524 0.427 0.695 0.682 0.473 0.468 0.614 0.351 0.467 0.0% 1995 0.593 0.094 0.216 0.442 0.557 0.343 0.121 0.270 0.488 0.230 0.418 0.533 0.410 0.468 0.558 0.531 0.351 0.385 -17.4% 1996 0.594 0.100 0.193 0.540 0.460 0.341 0.131 0.362 0.468 0.299 0.484 0.589 0.376 0.540 0.629 0.543 0.355 0.399 -14.5% Abitib Consolidated Company of Canada- VCR Report 2003 1997 0.382 0.061 0.158 0.491 0.467 0.286 0.116 0.287 0.096 0.326 0.474 0.555 0.379 0.389 0.612 0.548 0.344 0.341 -26.8% 1998 0.404 0.067 0.118 0.535 0.559 0.284 0.141 0.390 0.085 0.534 0.877 0.517 0.389 0.282 0.632 0.505 0.324 0.362 -22.5% 1999 0.314 0.072 0.094 0.454 0.391 0.276 0.114 0.248 0.068 0.395 0.506 0.373 0.329 0.237 0.440 0.421 0.332 0.288 -38.3% 2000 0.294 0.063 0.115 0.479 0.455 0.287 0.124 0.183 0.052 0.325 0.456 0.530 0.316 0.250 0.493 0.444 0.343 0.299 -35.8% 2001 0.276 0.050 0.086 0.451 0.533 0.298 0.120 0.207 0.029 0.333 0.417 0.629 0.361 0.186 0.619 0.508 0.334 0.304 -34.8% Page 31 Table C -5 Gross CO2 emissions from pulp and paper divisions in tonnes - 1990 and 1995-2001 Alma Amos Baie-Comeau Beaupré Belgo Clermont Fort Frances Fort William Iroquois Falls Grand Falls Kenora Kénogami Laurentide Mackenzie Port-Alfred Stephenville Thorold TOTAL %Change vs 1990 1990 153,839 179,487 270,034 74,058 165,810 177,226 654,503 77,529 228,117 137,110 204,148 130,629 182,315 75,219 301,216 128,132 68,101 3,207,474 0.0% 1995 173,558 169,446 307,120 84,077 186,793 113,133 562,868 84,334 197,571 89,691 217,508 126,340 167,955 76,017 307,120 152,542 117,702 3,133,775 -2.3% 1996 154,472 159,284 276,954 89,304 149,963 111,641 481,718 80,831 167,912 99,959 206,401 126,776 162,585 88,171 306,295 127,394 124,360 2,914,019 -9.1% 1997 129,178 156,640 304,572 92,470 155,409 119,901 520,030 71,421 80,608 106,364 238,708 124,443 154,485 151,193 326,087 130,756 125,884 2,988,147 -6.8% 1998 134,825 157,768 296,030 54,064 104,964 113,817 289,036 44,099 30,887 93,844 200,679 113,815 98,033 298,103 347,532 72,242 124,744 2,574,482 -19.7% 1999 128,598 153,237 276,362 83,437 150,121 112,343 513,082 63,525 51,317 128,068 252,145 80,045 161,904 404,000 310,324 111,518 128,089 3,108,116 -3.1% 2000 128,687 156,308 285,583 83,960 169,297 122,895 520,465 66,307 38,434 121,367 365,775 118,188 165,475 286,809 328,554 121,799 131,383 3,211,284 0.1% 2001 123,695 155,599 278,290 91,191 160,688 118,200 484,899 81,821 18,530 112,386 245,145 107,545 178,057 199,450 333,456 114,600 124,920 2,928,472 -8.7% Table C - 6 Net CO2 emissions from pulp and paper divisions in tonnes - 1990 and 1995-2001 Alma Amos Baie-Comeau Beaupré Belgo Clermont Fort Frances Fort William Iroquois Falls Grand Falls Kenora Kénogami Laurentide Mackenzie Port-Alfred Stephenville Thorold TOTAL %Change 1990 1995 1996 1997 1998 1999 2000 2001 115,087 12,297 255,454 56,229 164,319 177,226 146,252 20,889 64,392 75,865 127,663 130,629 124,031 75,219 169,321 89,372 68,101 1,872,346 0.0% 145,992 10,845 102,048 77,327 186,622 113,133 44,785 37,354 145,596 46,236 122,693 126,340 109,672 76,017 216,066 92,827 117,702 1,771,254 -5.4% 133,448 12,889 84,633 82,479 149,963 111,641 39,299 43,418 118,247 56,084 116,776 126,776 98,247 88,171 225,194 87,974 124,360 1,699,598 -9.2% 97,738 5,734 72,074 86,800 155,409 119,901 38,551 36,501 26,188 60,299 129,448 124,443 96,832 151,193 223,362 94,306 125,884 1,644,662 -12.2% 108,443 6,687 52,841 49,969 104,964 113,817 26,913 26,298 12,542 55,789 138,354 113,815 62,169 298,103 225,140 48,842 124,744 1,569,431 -16.2% 86,598 9,237 42,621 81,472 150,121 112,343 39,592 28,358 16,847 74,173 138,535 80,045 97,644 404,000 154,594 71,918 128,089 1,716,188 -8.3% 82,862 7,107 56,161 82,025 169,297 122,895 2,353 24,367 13,399 64,682 141,658 118,188 98,947 286,809 171,894 78,284 131,383 1,652,310 -11.8% 76,760 3,319 35,524 89,151 160,688 118,200 41,190 26,831 6,740 56,751 67,605 107,545 115,414 199,450 164,599 86,826 124,920 1,481,513 -20.9% Abitib Consolidated Company of Canada- VCR Report 2003 Page 32 Table C - 7 CH4 emissions from pulp and paper divisions in tonnes - 1990 and 1995-2001 1990 Alma Amos Baie-Comeau Beaupré Belgo Clermont Fort Frances Fort William Iroquois Falls Grand Falls Kenora Kénogami Laurentide Mackenzie Port-Alfred Stephenville Thorold TOTAL %Change vs 1990 1995 1996 1997 1998 1999 2000 2001 7.37 6.84 6.05 5.76 5.91 6.90 7.24 7.60 17.19 12.31 3.94 6.37 9.16 0.62 6.08 18.12 9.00 8.83 3.72 10.49 1.92 18.05 7.20 1.70 16.28 24.38 3.66 6.81 4.83 0.35 5.45 9.00 6.05 9.90 3.42 9.65 1.94 14.51 9.42 2.97 15.14 22.45 3.87 4.43 4.58 0.31 4.75 8.11 6.49 9.40 3.53 9.42 2.25 14.40 7.22 2.81 15.31 25.97 3.92 4.99 6.25 0.32 4.97 6.23 7.02 10.78 3.29 8.81 10.59 18.30 7.14 3.13 15.35 26.30 2.34 3.85 5.80 0.78 2.78 2.21 6.02 9.83 3.14 5.67 26.72 20.83 4.20 3.17 14.80 25.08 3.36 4.90 5.69 1.15 4.27 3.96 8.33 15.01 2.06 9.37 38.27 20.48 6.74 3.31 15.24 25.18 3.38 5.96 6.40 0.21 4.89 2.92 8.24 26.03 3.81 9.67 25.94 21.84 7.39 3.28 15.39 25.71 3.67 5.94 6.01 1.19 6.39 1.44 7.83 19.48 3.98 10.18 18.24 23.01 6.17 3.09 142 0.0% 135 -4.7% 125 -11.9% 143 0.5% 145 2.0% 174 22.3% 178 25.0% 165 16.3% Table C - 8 N2O emissions from pulp and paper divisions in tonnes - 1990 and 1995-2001 Alma 1990 5.20 1995 4.48 1996 3.53 1997 4.43 1998 3.78 1999 5.22 2000 5.53 2001 5.38 Amos Baie-Comeau Beaupré Belgo Clermont Fort Frances Fort William Iroquois Falls Grand Falls Kenora Kénogami Laurentide Mackenzie Port-Alfred Stephenville Thorold TOTAL %Change va 1990 17.89 5.26 2.14 0.85 4.65 1.92 6.23 18.35 6.85 10.41 1.22 6.78 0.80 15.37 4.51 0.72 109 0.0% 16.96 22.30 1.04 0.96 1.25 0.80 5.36 7.25 4.83 11.58 1.25 6.94 0.81 11.64 6.76 1.24 105 -3.4% 15.67 20.87 1.07 1.24 0.93 0.71 4.35 6.79 4.92 10.99 1.21 7.76 0.94 10.40 4.58 1.23 97 -11.0% 16.12 25.10 0.97 1.63 3.24 0.72 5.06 6.30 5.36 12.62 1.27 7.02 10.28 15.29 4.29 1.32 121 10.9% 16.14 26.16 0.65 0.91 2.95 0.46 2.75 2.20 4.43 8.24 1.10 4.54 27.81 17.59 2.70 1.32 124 13.4% 15.52 25.26 0.57 1.10 2.83 0.71 4.12 4.02 6.24 13.76 0.85 7.78 40.35 17.98 4.61 1.44 152 39.6% 16.05 24.85 0.56 1.03 3.44 0.32 4.82 2.96 6.49 25.41 0.87 8.02 27.06 17.88 5.05 1.45 152 39.1% 16.35 26.18 0.61 0.83 3.01 0.71 6.19 1.49 6.35 19.66 0.55 7.53 19.07 18.98 3.42 1.37 138 26.1% Abitib Consolidated Company of Canada- VCR Report 2003 Page 33 Table C --9 Indirect emissions of GHG from pulp and paper divisions in tonnes of CO2e - 1990 and 1995-2001 (electricity basis) 1990 1995 1996 1997 1998 1999 2000 2001 Alma Amos Baie-Comeau Beaupré Belgo Clermont Fort Frances Fort William Iroquois Falls Grand Falls Kenora Kénogami Laurentide Mackenzie Port-Alfred Stephenville Thorold 5,474 4,416 10,660 5,133 8,148 10,274 85,936 64,231 15,826 7,341 126,658 620 4,809 8,884 7,648 14,546 101,702 5,364 4,503 11,929 4,993 8,601 8,929 102,270 80,499 32,241 5,982 135,063 141 6,472 10,629 8,000 17,761 138,736 5,580 4,785 11,213 4,480 8,241 9,397 77,925 70,733 69,554 6,870 102,552 68 6,228 12,167 7,470 16,116 123,141 7,395 4,892 12,261 5,067 8,417 9,964 96,131 74,934 96,819 6,111 117,478 27 6,039 13,932 7,853 17,563 131,727 7,535 4,891 12,539 2,719 5,140 9,979 67,470 42,894 51,774 3,043 102,637 46 3,933 12,583 7,972 8,992 126,271 7,611 5,299 13,117 4,883 8,633 10,330 102,472 67,342 64,602 4,597 108,396 195 6,872 15,067 7,772 17,839 111,649 7,998 5,133 13,134 4,747 9,436 10,604 101,615 76,274 74,195 4,944 122,534 147 7,221 14,668 7,896 18,655 113,343 7,934 4,652 12,054 5,194 7,798 9,852 101,548 78,676 79,465 3,537 62,325 1,867 7,332 12,801 5,814 16,157 110,818 Total % Change vs 1990 482,307 0.0% 582,114 20.7% 536,521 11.2% 616,610 27.8% 470,417 -2.5% 556,676 15.4% 592,541 22.9% 527,824 9.4% Table C-10: Biomass (bark) Purchased and Self-generated (bark) (dry tonnes/year Consumed for Energy Purposes Alma Amos Baie-Comeau Beaupré Belgo Clermont Fort Frances Fort William Iroquois Falls Grand Falls Kenora Kénogami Laurentide Mackenzie Port-Alfred Stephenville Thorold Total % Change vs 1990 1990 25,835 111,460 9,720 11,886 9,942 23,810 0 37,760 109,150 40,830 50,990 0 38,856 0 87,930 25,840 0 1995 18,377 105,735 136,715 4,500 1,144 4,189 0 31,320 34,650 28,970 63,210 0 38,855 0 60,703 39,810 0 1996 14,016 97,597 128,214 4,550 0 2,206 0 24,942 33,110 29,250 59,750 0 42,892 0 54,067 26,280 0 1997 20,960 100,604 154,999 3,780 0 16,728 0 23,280 36,280 30,710 72,840 0 38,435 60,222 68,483 24,300 0 1998 17,588 100,721 162,126 2,730 0 13,151 0 11,867 12,230 25,370 41,550 0 23,909 171,083 81,595 15,600 0 1999 28,000 92,960 135,331 1,310 0 1,480 0 23,445 22,980 35,930 75,740 0 42,840 250,270 103,820 26,400 0 2000 30,550 94,930 85,173 1,290 0 4,779 0 27,960 16,690 37,790 149,411 0 44,352 166,711 91,050 29,010 0 2001 31,290 96,580 101,657 1,360 0 2,580 0 36,660 7,860 37,090 118,360 0 41,762 117,692 112,571 18,516 0 584,009 0.0% 568,177 -2.7% 516,873 -11.5% 651,621 11.6% 679,520 16.4% 840,506 43.9% 779,696 33.5% 723,978 24.0% Note: Not all facilities have the capacity to consume biomass for energy purposes, therefore in these cases no value is shown. Abitib Consolidated Company of Canada- VCR Report 2003 Page 34 APPENDIX D Abitib Consolidated Company of Canada- VCR Report 2003 Page 35 D-1: Estimate of GHG emissions produced by Solid Wood Product Divisions A list of all solid wood product divisions rates can be seen in Appendix A. An estimate of the GHG emissions from the 25 lumber divisions was developed using the detailed data provided by only three of them (La Tuque, Roberval and SaintFulgence). These results are provided in Tables D-1 to D-6. The production of these three facilities represents approximately 11% of the Company’s total production (expressed in million board feet). Their average GHG intensity (tonnes CO2e per unit of lumber production) is assumed to be representative of the GHG intensity for all remaining divisions. Using the actual production values for 2001 for the lumber divisions, we can estimate that the total GHG emissions for all solid wood divisions would be approximately 40,000 tonnes CO2e. By comparing this result to the net GHG emissions from company pulp and paper divisions, it can be seen that the solid wood divisions account for less than 3%of company GHG emissions. These estimated results are summarized in Table D-7. Since the lumber operations’ information management systems are not as developed as those available in the pulp and paper divisions (particularly for historical data), and because the solid wood divisions appear to be a relatively minor contribution to overall company emissions, it was decided to not include these small emissions in the company inventory at this time. If required, a more detailed review can be conducted in the future. Table D - 1 Production of the 3 sawmills selected in million board feet 1990 1995 1996 1997 1998 1999 2000 2001 La Tuque Roberval St-Fulgence 0 20 700 86 600 109 200 107 681 113 849 123 521 71 855 87 107 135 767 112 798 137 572 122 764 168 977 164 291 109 134 48 824 80 985 69 070 73 374 71 264 94 845 101 937 70 051 TOTAL 135 931 237 452 268 468 320 146 301 709 377 671 389 749 251 040 Table D - 2 Net GHG emissions of the 3 sawmills selected in tonnes of CO2e 1990 1995 1996 1997 1998 1999 2000 2001 La Tuque Roberval St-Fulgence 0 264 972 1 207 1 583 739 739 739 1 505 2 219 1 793 2 048 1 798 2 467 2 467 2 387 1 305 4 856 4 269 5 264 3 740 2 263 1 403 1 141 TOTAL 2 810 7 339 7 033 8 519 7 120 5 468 4 608 4 266 Abitib Consolidated Company of Canada- VCR Report 2003 Page 36 Table D - 3: Gross GHG emissions for the 3 sawmills selected in tonnes of CO2e 1990 1995 1996 1997 1998 1999 2000 2001 La Tuque Roberval St-Fulgence 0 7 772 28 597 35 527 46 583 21 739 21 739 21 739 6 005 11 905 9 893 10 778 10 348 19 965 19 963 17 599 5 805 11 666 10 257 11 870 11 776 15 658 14 528 14 266 TOTAL 11 810 31 342 48 747 58 175 68 706 57 362 56 229 53 604 Table D–4: Net GHG intensity for the 3 sawmills selected in tonnes of CO2e per million board feet 1990 1995 1996 1997 1998 1999 2000 2001 La Tuque Roberval St-Fulgence 0.000 0.013 0.011 0.011 0.015 0.006 0.006 0.010 0.017 0.016 0.016 0.015 0.015 0.015 0.015 0.022 0.027 0.060 0.062 0.072 0.052 0.024 0.014 0.016 Average 0.021 0.031 0.026 0.027 0.024 0.014 0.012 0.017 Table D - 4 Relative gross GHG emissions of the 3 sawmills selected in tonnes of CO2e per million board feet 1990 1995 1996 1997 1998 1999 2000 2001 La Tuque Roberval St-Fulgence 0.000 0.375 0.330 0.325 0.433 0.191 0.176 0.303 0.069 0.088 0.088 0.078 0.084 0.118 0.122 0.161 0.119 0.144 0.149 0.162 0.165 0.165 0.143 0.204 Average 0.087 0.132 0.182 0.182 0.228 0.152 0.144 0.214 Table D - 5 Specific energy of the three sawmills in GJ per million board feet La Tuque Roberval St-Fulgence Weighted average 1990 1995 1996 1997 1998 1999 2000 2001 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.4 1.5 1.6 1.4 1.5 4.6 4.7 6.8 2.1 2.3 2.4 2.6 2.6 2.6 2.3 3.2 1.6 1.7 1.3 1.2 1.2 2.7 2.6 3.9 Abitib Consolidated Company of Canada- VCR Report 2003 Page 37 Table D-6: Estimated GHG Emissions for Solid Wood Divisions Actual Results for 3 sawmill divisions Annual Production (million board feet / year) Net GHG emissions (tonnes of CO2e) 251,040 2,223,557 (actual) 4,266 37,800 (estimate) 0.017 0.017 (estimate) Emission intensity (Tonnes CO2e/mbf) 2001 Projection for all Solid wood divisions Net GHG Emissions from Pulp & Paper Divisions 1,330,833 % Company GHG emissions from solid wood operations 2.76% Abitib Consolidated Company of Canada- VCR Report 2003 Page 38 APPENDIX E Abitib Consolidated Company of Canada- VCR Report 2003 Page 39 General For the first time in the preparation of our GHG inventory we considered methane emissions originating from landfills. Since methane emission rates are not currently measured at all divisions, we made an estimation. The methodology used is based on the Scholl Canyon first-order decay model proposed in the Intergovernmental Panel on Climate Change’s 1996 guidelines with the suggested parameter values for wood waste disposal sites in Canada’s Greenhouse Gas Inventory 1997: where Q = Lo R (e-kc - e-kt) Q = methane generated in the current year (tonnes/yr) Lo = methane generation potential (tonnes/tonne of wastes) R = annual waste acceptance rate during the landfill’s active period (tonnes/yr) k = methane generation rate constant (1/yr) c = time since site closure (years) t = time since site opening (years) For more accuracy and if the data is available for each year, the differential form of the equation may also be used: QT,x = k Lo R e-k(T-x) where QT,x = quantity of methane generated in the current year T by wastes R x x = year of waste disposal R x = quantity of wastes disposed of during year x (tonnes) T = current year Resolving the previous equation for all R x values and adding them up gives present emissions from wastes disposed of in the previous years: QT = Σ QT,x where x = from opening year to year T We used the differential version with the Lo and k values used in Canada’s Greenhouse Gas Inventory for wood waste disposal sites. Thus, we resolved our equations Lo = 0.118 tonne of CH4/tonne of wood waste and k = 0.01 yr-1. Emissions were estimated with the global version for three divisions only (Amos, Fort Frances and Kenora) for which we had enough data. The assumption was that the preliminary conclusions might apply to the entire Company. There are many sources of uncertainty, especially in estimating quantities of wastes deposited. Most of the time, these wastes consist of wood refuse but they also contain secondary sludge, ash and other types of inorganic wastes in variable proportions, and this certainly has an impact on the generation of methane and the Abitib Consolidated Company of Canada- VCR Report 2003 Page 40 Lo value. The waste moisture content is not relevant. On the other hand, the quantities of wastes deposited since the site opening may have varied considerably and is not necessarily reflected by the use of a global average covering the entire period. This analysis has shown that methane emissions produced by the Company’s landfills (converted in CO2e) could represent approximately 5-10% of total gross direct emissions originating from mill operations. The proportion is higher when net emissions are considered, especially at Amos, where net emissions are already very low. This shows that a closer investigation of landfill emissions would likely produce more accurate results that could eventually encourage methane reclamation. The installation of flares like those at the Laurentide division could also be considered as an emission reduction strategy given the fact that methane’s global warming potential is 21 times that of CO2. Since these results are considered at best as a conservative estimate, they are not included in direct GHG emissions reported in section 5 of this report. Amos Methane emissions (tonnes of CO2e) 1990 1995 1996 1997 1998 1999 2000 2001 5057 8018 8593 9162 9725 10283 10835 10727 Fort Frances % gross % net emissions emissions 2.7% 4.6% 5.2% 5.7% 6.0% 6.5% 6.7% 6.7% 28% 49% 48% 83% 81% 72% 87% 123% Abitib Consolidated Company of Canada- VCR Report 2003 Methane emissions (tonnes of CO2e) 3533 12062 13718 15357 16979 18586 20176 21751 Kenora % gross % net emissions emissions 0.6% 2.2% 2.9% 3.0% 5.9% 3.6% 3.6% 4.5% 2% 27% 35% 40% 63% 47% 43% 52% Methane emissions (tonnes of CO2e) 16081 22826 24135 25431 26714 27984 29242 30487 % gross % net emissions emissions 8.1% 10.4% 11.6% 10.3% 13.1% 10.9% 7.8% 9.1% Page 41 12% 18% 20% 19% 19% 20% 19% 31%