Annex IV:     TAG SEIP Methodologies (Regulations) sub-group

Proposed Methodologies

Activity “formula” Point of measurement Notes Assumptions
Stationary Energy        
Importing coal { A -E + stockpile adjustment} *CV * e.f.

Where “stockpile adjustment” = opening stockpile – closing stockpile
{A1 – (A + A1 – B – E)}		 A = tonnes of coal at customs declaration point
A1= opening stockpile
B = tonnes of coal from stockpile off-take (including own use)
E = tonnes of coal exported
CV = gross calorific value of coal
e.f. = energy based emission factor by coal classification		 coal classification includes:
  • lignite
  • sub-bituminous
  • bituminous
  • Homogeneous stockpile
  • Standard energy based emission factor for stockpile
  • Year one, opening stockpile reset to zero
  • Year one = year ending 31 Dec 2010
Mining coal { [C+D] – [X+E] + stockpile adjustment } *CV *e.f.

Where “stockpile adjustment” = opening stockpile – closing stockpile
{A1 – (A + A1 – C – E)}		 A = tonnes of mined coal
A1 = opening stockpile
C = tonnes of coal at point of sale
D = tonnes of coal for own combustion including free use
E = tonnes of coal exported
X = tonnes of coal sold to opt-in participant
CV = gross calorific value of coal
e.f. = energy based emission factor by coal classification		 coal classification includes:
  • lignite
  • sub-bituminous
  • bituminous
  • Homogeneous stockpile
  • Standard energy based emission factor for stockpile
  • Coal seam methane calculation to be added
  • Year one, opening stockpile reset to zero
  • Year one = year ending 31 Dec 2010
Purchasing Coal
(for mixed stockpile of opt-in obligation fuel and purchases from wholesaler)		 { [C+C1+stockpile adjustment]*C/(C+C1) } *CV *e.f.

Where “stockpile adjustment” = opening stockpile – closing stockpile
{A1 – (C+C1 + A1 – B)}		 C = tonnes of mined coal at point of sale for which the purchaser has opted in
C1 = tonnes of coal purchased where emission charge already applied (eg, obligation fuel)
A1 = opening stockpile
B = tonnes of coal from stockpile off-take
CV = gross calorific value
e.f. = energy based emission factor by coal classification		 coal classification includes:
  • lignite
  • sub-bituminous
  • bituminous
  • Homogeneous stockpile
  • Standard energy based emission factor for stockpile
  • Assumes purchase ratio is applicable to stockpile also
  • Year one, opening stockpile reset to zero
  • Year one = year ending 31 Dec 2010
Purchasing coal
(for opt-in purchases only – ie, no purchases from wholesaler)		 { [C + stockpile adjustment } *CV *e.f.

Where “stockpile adjustment” = opening stockpile – closing stockpile
{A1 – (C + A1 – B)}		 C = tonnes of mined coal at point of sale for which the purchaser has opted in
A1 = opening stockpile
B = tonnes of coal from stockpile off-take
CV = gross calorific value
e.f. = energy based emission factor by coal classification		 coal classification includes:
  • lignite
  • sub-bituminous
  • bituminous
  • Homogeneous stockpile
  • Standard energy based emission factor for stockpile
  • Year one, opening stockpile reset to zero
  • Year one = year ending 31 Dec 2010
Importing natural gas [F + storage adjustment) * CV * e.f.

Where “storage adjustment” = opening storage – closing storage
{G – (F + G – H)}		 F = gigajoules of gas at customs declaration point
G = gigajoules of gas opening storage
CV = gross calorific value
H = gigajoules of storage off-take
e.f. = emission factor by gas type

gas type includes

  • LNG
  • CNG
  • LPG
  • Imported (where e.f. is different to NZ spec gas).
  • Where natural gas volume is not gigajoules (ie, energy based), then e.f. needs to be multiplied by calorific value of gas type.
Mining natural gas [I+K-L-E-Y1]*e.f raw + [J*e.f vent] + [M*e.f store] – [(Y2)*e.f spec] I = gigajoules of gas flared
J = gigajoules of gas vented
K = gigajoules of raw gas at point of valuation
L = gigajoules of gas put into storage
M = gigajoules of gas taken out of storage
Y1 = gigajoules of gas sold to opt-in participant (raw gas)
Y2 = gigajoules of gas sold to opt-in participant (including UFG) from pipeline
e.f. raw = emission factor of raw gas
e.f.vent = emission factor of vented gas
e.f. store = emission factor of gas extracted from storage facility
e.f. spec = emission factor for pipeline gas		 gas classification includes:
  • spec gas
  • Kapuni LTS gas
  • Kaimiro gas
Note: Formula is unaffected if the raw emission factor is a generic factor or by field
  1. Point of valuation is gas only (does not include condensate)
  2. Condensate is a Liquid Fossil Fuels obligation not SEIP
  3. Generic emission factor for raw natural gas with 5 per cent tolerance of spec gas (sub-group initial recommendation)
  4. Fields outside 5 per cent tolerance level (eg, Kapuni LTS, Kaimiro) apply for unique emission factor
  5. Kapuni LTS and Kaimiro have known emission factors outside 5 per cent tolerance level of spec gas so specific emission factor will be listed in types of gas for these two fields
  6. If fields don’t apply for unique emission factor then subject to audit (and penalties)
  7. Emission factor from storage facility may need to be measured and checked it is within 5 per cent tolerance level of spec gas
  8. Includes provision for Unaccounted for Gas (UFG) at same emission factor as pipeline spec gas
Purchasing natural gas
(for which the purchaser has opted-in)		 { [N -L] *e.f. spec} + [M* e.f. store] + [O*e.f raw] L = gigajoules of gas put into storage
M = gigajoules of gas taken out of storage
N = gigajoules of spec gas at delivery point (including UFG)
O = gigajoules of raw gas at delivery point
e.f. spec = emission factor of spec gas
e.f. raw = emission factor for untreated gas
e.f. store = emission factor of gas extracted from storage facility		  
  • As per proposed ETS, opt-in provision only goes one level
  • Assumes storage is underground, and difficult to measure what is in storage at any time, therefore uses in-out formula
  • Only one emission factor for spec gas at delivery point
  • Raw gas emission factor is by gas classification type (eg, Kaimiro, Kapuni LTS)
  • Includes provision for Unaccounted for Gas (UFG) at same emission factor as pipeline spec gas
Using geothermal fluid for electricity generation and industrial heat [(P)* e.f] P = tonnes of steam (includes tonnes of steam vented) measured at well head separator
e.f. = emission factor by field		 Geothermal fields for example:
  • Wairakei
  • Tauhara
  • Ohaaki
  • Ngawha
  • Rotokawa
  • Mokai
  • Kawerau
  • Geothermal fields are mutually exclusive from each other (ie, completely independent)
  • Assumes that policy intent is not to capture small commercial installations
Combusting used and waste oil for electricity and industrial heat [R-R1] * CV * e.f R = tonnes of relevant used and/or waste oil from stockpile off-take
R1 = used oil which has emission charge already applied upstream (obligation fuel)
CV = gross calorific value (if applicable)
e.f.= emission factor of waste type		 waste type includes:
  • used oil
  • waste oil
 
Combusting waste for electricity and industrial heat [S-S1] * CV * e.f (CO2 only) + S * CV * ef (CH4 and N2O) S = tonnes of relevant waste from stockpile off-take
SI = organic waste which has emission charge already applied upstream
CV = gross calorific value (if applicable)
e.f. = emission factor of waste type		 waste type includes:
  • used waste
  
Combusting used tyres for electricity and industrial heat [T] * e.ftrue
Where e.ftrue = h(biomass) * e(gross)		 T=tonnes of relevant waste from stockpile off-take
e.f.true = emission factor of used tyres taking into consideration biomass content
h(biomass) = (1-biomass content)
where biomass content is 15 per cent
e(gross) = emission factor of used tyres without biomass content accounted for		 waste type includes:
  • used tyres
Need to account for biomass content of tyres
Refining petroleum       Not discussed as assumed – to be added
Industrial Process  

 

 

 
Producing iron [(AA* e.f) + AB - AC]*3.67 AA = tonnes of mass reducing agent from stockpile off-take
AB = tonnes of carbon ore
AC = tonnes of carbon metal
e.f. = emission factor of mass reducing agent		   Any steel produced at the end of this process is deemed to be “emission free” as emissions already accounted for
Producing steel

CE * 44/12

 CE = quantity of carbon electrode consumed in the electric arc furnace

 

 Based on arc furnace process re: 2006 IPCC guidelines for National Greenhouse Gas Inventories
Producing aluminium [AD * e.f. pitch]+[AE * e.f. coke] +[AF * e.f. anode butts]+[AG * e.f. alumina] AD = tonnes of pitchAE = tonnes of cokeAF = tonnes of anode buttsAG = tonnes of aluminae.f. pitch = emission factor of pitch (measured)e.f. coke = emission factor of coke (measured)e.f. anode butts = emission factor of anode butts (calculated)e.f. alumina = emission factor of alumina (measured)    
Producing clinker (cement) [AH * e.f clinker] AH =tonnes of clinker produced
e.f.clinker = emission factor of clinker		   Using “clinker” as this is terminology included in Bill, and is consistent with IPCC guidelines
Producing burnt lime resulting in calcinations of limestone [AI* e.f lime] AH = tonnes of clinker produced
AI = tonnes of burnt lime produced
e.f.clinker = emission factor of clinker
e.f. lime = emission factor of burnt lime produced		    
Production of glass using soda ash [AJ * e.f. soda ash] AJ = tonnes of soda ash from stockpile off-take
e.f. soda ash = emission factor of soda ash		    
Production of gold [AK * e.f. limestone] AK = tonnes of limestone from stockpile off-take
e.f. limestone = emission factor of limestone		    
Importing SF6       Not discussed in this forum as obligation does not start until 2013
Importing HFCs       Not discussed in this forum as obligation does not start until 2013
Importing PFCs       Not discussed in this forum as obligation does not start until 2013

 

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Last updated: 15 September 2008