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The ETS and Carbon Footprint. How will it effect me.

DARREN RAWNSLEY NATIONAL CONTRACTS MANAGER

Greenhouse effect

Refers to the change in thermal equilibrium of the Planet by presence of an atmosphere containing gas that absorbs infrared radiation There are several types of Greenhouse gases. Naturally occurring like Carbon Dioxide and Methane and Synthetic like HFCs. The Greenhouse gases warm the atmosphere by absorbing thermal infrared radiation emitted by the Earths surface. The atmosphere also radiates thermal infrared in all directions including downwards towards the Earth. http://earthguide.ucsd.edu/earthguide/diagrams/greenh ouse/

With out a Greenhouse effect the average surface


temperature of 14 degrees would be about 18 degrees Ice core data shows that over the last 800,000 years carbon dioxide values has varied from low of 180 ppm to a pre- industrial level of 270 ppm. Since 1960 the atmospheric concentration has increased from 313 ppm to 375 ppm in 2005 The current level (May 2008) of 387 ppm is 40% up since the industrial revolution. This level exceeds the geological record maximum of 300 ppm from ice core data

GWP
Global Warming Potential is a measure of how much a
given mass of greenhouse gas is estimated to contribute to global warming. The scale is relative and compares the gas in question to that of the same mass of Carbon Dioxide ( whose GWP is by definition 1 ) It is important to note that the GWP is calculated over a specific timeframe ( 100 years IPCC II 1996 ) GWP value depends on how the gas concentration decays over time in the atmosphere. A high GWP correlates with a large infrared absorption and long atmospheric life time.

GWP VALUES

R22 R134a R404a R410a R717 R744 1500 1300 3260 1720 0 1 ODP 0.055

All GWP values based on 100


year time scale according to IPCC II (1996) basis for Kyoto protocol

Relationship to 1 tonne of CO2-e


One of the difficulties is trying to relate to GWP values.
How big is 1 tonne of CO2 ? 1 Disposable of R404a GWP = 10.9kg x 3260 which = 35,534kg or 35.534 tonne CO2e. McAlpine Hussmanns 5 months Diesel consumption was 13,389 litres which generated 35.481 CO2e. Our Auckland facility consumed 159,544 kwh over the same 5 month period for 33.345 CO2e. The average 350 cow dairy farm generates 1632 CO2e tonnes per annum. When compared with R404a this equates to 500kg. A small to medium size Supermarket would have a similar charge. At a 20% annual leakage rate over 5 years we would have the same emissions.
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Carbon Footprint
To ascertain the plants carbon footprint we use a
calculation known as TEWI ( TOTAL EQUIVALENT WARMING IMPACT ) The TEWI calculation takes into account the direct and indirect emissions over the expected life time of the plant. In simple terms the direct emissions are refrigerant leakage and the indirect emissions is the annual energy consumption. It is important to note that the energy consumption of the plant is the significant proportion of the Carbon Footprint.

TEWI example
c:\my docs\Energy Analysis\TEWI Calcs_081107.xls

TEWI ANALYSIS
Project : Example Conventional System Lifetime = CO2 = R404a = R134a = Electricity = 20 1.00 3260.00 1300.00 0.45 (years) (CO2 equivalent) (CO2 equivalent) (CO2 equivalent) kgs CO2 / kwhr
As Tendered Conventional R404a DX System 3300 1204500.0

Effective : 7-Nov-08 Supercedes: nil

TEWI / GWP Details :-

Units kwhrs per 24hrs kwhrs per annum

Power Consumption Components Details Electricity consumption ex Energy Analysis worksheet (kWhrs / day) kWhrs/day x365 days/annum 365 Total (kwhrs per annum) Charge details R404a R134a CO2 (R744) Leak Rate (% per annum) Recovery at end of life (%) System Life (years) Leakage R404a (kgs per annum) Leakage R134a (kgs per annum) Leakage CO2 R744 (kgs per annum)

kilograms kilograms kilograms Customer specified % Customer specified % Customer specified (years) kgs per annum kgs per annum kgs per annum

968.0 0.0 0.0 10.0% 75.0% 20.0 96.8 0.0 0.0

TEWI (tonnes CO2 per annum)


tonnes CO2 per annum tonnes CO2 per annum tonnes CO2 per annum tonnes CO2 over System Life Total Indirect per annum Total Direct per annum Total per annum Total over System Specified Lifetime (20 years) 542.03 tonnes of CO2 per annum 315.57 tonnes of CO2 per annum 857.59 tonnes of CO2 per annum 17940.78 tonnes of CO2 per annum

TEWI @ 20% LEAK RATE


c:\my docs\Energy Analysis\TEWI Calcs_081107.xls

TEWI ANALYSIS
Project : Example Conventional System Lifetime = CO2 = R404a = R134a = Electricity = 20 1.00 3260.00 1300.00 0.45 (years) (CO2 equivalent) (CO2 equivalent) (CO2 equivalent) kgs CO2 / kwhr
As Tendered Conventional R404a DX System 3300 1204500.0

Effective : 7-Nov-08 Supercedes: nil

TEWI / GWP Details :-

Units kwhrs per 24hrs kwhrs per annum

Power Consumption Components Details Electricity consumption ex Energy Analysis worksheet (kWhrs / day) kWhrs/day x365 days/annum 365 Total (kwhrs per annum) Charge details R404a R134a CO2 (R744) Leak Rate (% per annum) Recovery at end of life (%) System Life (years) Leakage R404a (kgs per annum) Leakage R134a (kgs per annum) Leakage CO2 R744 (kgs per annum)

kilograms kilograms kilograms Customer specified % Customer specified % Customer specified (years) kgs per annum kgs per annum kgs per annum

968.0 0.0 0.0 20.0% 75.0% 20.0 193.6 0.0 0.0

TEWI (tonnes CO2 per annum)


tonnes CO2 per annum tonnes CO2 per annum tonnes CO2 per annum tonnes CO2 over System Life Total Indirect per annum Total Direct per annum Total per annum Total over System Specified Lifetime (20 years) 542.03 tonnes of CO2 per annum 631.14 tonnes of CO2 per annum 1173.16 tonnes of CO2 per annum 24252.14 tonnes of CO2 per annum

COMPARISIONS
Description LT Cooling Duty Conventional DX R404a System 68.0 kWs Cascade CO2 with High Side R134a Recip. Compressors 68.0 kWS Hybrid - LT DX CO2, MT DX R134a Screw Compressors 68.0 kWs

MT Cooling Duty Total Refrig. Costs (Cabinets, Rooms, Plant, Elect., Install) Total Refrig. Costs difference Average Daily Energy consumption Energy difference Energy Cost per annum at US$0.1125/kWhr Energy Cost per annum difference Carbon Footprint (per TEWI calculation) Carbon Footprint difference

250.0 kWS

250.0 kWs

250.0 kWs

US$ 1,760,480

US$ 1,916,600 US$ 156,120 ( 8.8% more) 3,150.0 kWhrs/day

US$ 1,829,022 US$ 68,542 ( 3.9% more) 3,000.0 kWhrs/day

Baseline

3,300.0 kWhrs/day

Baseline

4.7% less energy use

9.0% less energy use

US$ 134,392

US$ 129,346 US$ 5,046 less per annum 570.0 tonnes CO2 equivalent per annum 32.9% better (less)

US$ 123,187 US$ 11,205 less per annum 590. tonnes CO2 equivalent per annum 30.5% better (less)

Baseline 850.0 tonnes CO2 equivalent per annum Baseline

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Emissions Trading Scheme (ETS)


In December of 2002 the New Zealand Government
ratified the KYOTO PROTOCOL. In doing so the Government committed New Zealand to reduce the net average emissions of Green House Gases (GHG) over 2008-2012 (first commitment period) to 1990 levels or take responsibility for the difference. As of September 2008 with a current Kyoto carbon price of Euro 12.50 per tonne converted to $NZ = 26.84 per tonne. New Zealands liability is $583 million. The ETS bill was passed by Parliament in September 2008. The ETS is a cap and trade based system. The aggregate quantity of net emissions is set and then the market determines the price of emission units. The scheme is linked internationally and the price of units will track the international price.
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The ETS and our Industry


We will be affected in two ways, by our indirect and
direct emissions. Indirect emissions (electrical energy). The energy sector starts having obligations to surrender emission units on 1 January 2010. The first due date they must surrender units by is 30 April 2011 for the period 1 January 2010 to 31 December 2010. The government wont give electricity generators free emission units as they can pass on the costs of the scheme to their customers! It is expected that the ETS will add 2-4 cents per kwh to the price of electricity. This price increase will partly depend on the international price of carbon.

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Direct emissions (Refrigerant).Importers of Synthetic


gases will have obligations to surrender emission units from 1 January 2013. Importers wont receive free allocation of emission units because the costs can be passed onto customers. Those who re-export SGG for destruction or contained in manufactured equipment are eligible to receive free emission units. Voluntary reporting can occur from January 2011, with mandatory reporting of imports/exports from 1 January 2012. Regulations will be developed and released for public consultation over 2009 and 2010.
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Cost Implications
Due to the fact the cost of Carbon will be market driven
it is difficult to predict the actual cost. Values of between NZ$20 and $50 have been mentioned. If we use the current NZ Treasury value of 12.50 euro and round that up to a whole NZ$ we get $27.00. Current list price per Kg of R404A is $21.19 plus $1.50 per Kg levy. When we add the Carbon cost we get $27.00 x 3.26 (GWP) = $88.02 per Kg. So total cost per Kg = $110.71. Or $1206.73 a disposable. Using our example in slide 8 we would incur an additional cost of $85,203.00 for the Refrigerant cost.

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TEWI with carbon impact


c:\my docs\Energy Analysis\TEWI Calcs_081107.xls

TEWI ANALYSIS
Project : Example Conventional System Lifetime = CO2 = R404a = R134a = Electricity = 20 1.00 3260.00 1300.00 0.45 (years) (CO2 equivalent) (CO2 equivalent) (CO2 equivalent) kgs CO2 / kwhr
As Tendered Conventional R404a DX System 3300 1204500.0

Effective : 7-Nov-08 Supercedes: nil

TEWI / GWP Details :-

Units kwhrs per 24hrs kwhrs per annum

Power Consumption Components Details Electricity consumption ex Energy Analysis worksheet (kWhrs / day) kWhrs/day x365 days/annum 365 Total (kwhrs per annum) Charge details R404a R134a CO2 (R744) Leak Rate (% per annum) Recovery at end of life (%) System Life (years) Leakage R404a (kgs per annum) Leakage R134a (kgs per annum) Leakage CO2 R744 (kgs per annum)

99.0 36135.0

kilograms kilograms kilograms Customer specified % Customer specified % Customer specified (years) kgs per annum kgs per annum kgs per annum

968.0 0.0 0.0 10.0% 75.0% 20.0 96.8 0.0 0.0

85203.0

8520.0

TEWI (tonnes CO2 per annum)


tonnes CO2 per annum tonnes CO2 per annum tonnes CO2 per annum tonnes CO2 over System Life Total Indirect per annum Total Direct per annum Total per annum Total over System Specified Lifetime (20 years) 542.03 tonnes of CO2 per annum 315.57 tonnes of CO2 per annum 857.59 tonnes of CO2 per annum 17940.78 tonnes of CO2 per annum

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Future Considerations
Currently there is no 1 single answer. When designing Plant we need to consider the total Life
Cycle Cost (emissions,capital costs,operating costs and disposal costs). The type of plant and refrigerant utilized should be tailored to the application. Leakage rates can and should be reduced through best practices and regular maintenance.

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Thank You

CO2 Rack

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