Carbon Farming Initiative workshop: from Plan to Practice Piggeries: destruction of methane generated from manure 2013 Page 1 Page 1 11 September 2013 www.cleanenergyregulator.gov.au
Welcome • Introductions • Housekeeping Workshop purpose • support your participation • help you to understand what’s involved Page 2 11 September 2013 www.cleanenergyregulator.gov.au
Introduction • Understand Clean Energy Regulator’s role • Understand key concepts behind Carbon Farming Initiative’s operation Page 3 11 September 2013 www.cleanenergyregulator.gov.au
Clean Energy Regulator Our vision is to support Australia in transitioning to a low carbon economy through an informed and efficient market for carbon and investment in renewable energy. Page 4 11 September 2013 www.cleanenergyregulator.gov.au
Three government organisations have a role in the Carbon Farming Initiative Department of Department of Agriculture, Industry: Fisheries and Development of Forestry: Provides policy, legislation information and and support for methodologies landholders and funds research Clean Energy Regulator: Assessment of projects, education, issue of Australian carbon credit units Page 5 11 September 2013 www.cleanenergyregulator.gov.au
Page 6 11 September 2013 www.cleanenergyregulator.gov.au
Australian Government response to Climate Change • International: Kyoto Agreement • Domestic: Reduction in greenhouse gas pollution using the market » Carbon pricing mechanism Page 7 11 September 2013 www.cleanenergyregulator.gov.au
How the Carbon Farming Initiative works • You can earn Australian carbon credit units (ACCUs) by: » storing carbon, or » reducing greenhouse gas emissions on the land • 1 ACCU = 1 tonne of carbon dioxide equivalent (CO 2 -e) Page 8 11 September 2013 www.cleanenergyregulator.gov.au
Methodology determinations Set out the rules for undertaking a specific activity to earn Australian carbon credit units Page 9 11 September 2013 www.cleanenergyregulator.gov.au
Industry perspective: Australian Pork Limited • Pork’s carbon footprint • Opportunities for the pork industry Janine Price, Manager Environment and Climate Change, Australian Pork Limited Sam Lawrence, Senior Policy Analyst, Australian Pork Limited Page 10 11 September 2013 www.cleanenergyregulator.gov.au
AUSTRALIAN PORK LIMITED The Carbon Farming Initiative: From Plan to Practice Sam Lawrence Janine Price Senior Policy Analyst Manager, Environment
APL and the Australian pork industry APL Australian Pork Limited (APL) is the peak national representative body for Australian • pig producers. • It is a producer-owned not-for-profit company combining marketing, export development, research & innovation and strategic policy development to assist in securing a profitable and sustainable future for the Australian pork industry.
Cost of production • Cost of production for Australian pork is high. - ie labour, feed grain, energy • Subsidisation in export markets. Over the last three years electricity prices have risen by: QLD 35.8% NSW 40.2% NT 27.3% WA 26.5% TAS 29.2% SA 25.2% ACT 33.0% Source: www.dme.qld.gov.au
Pork’s carbon footprint • Livestock accounts for 66% of Aust. agriculture’s greenhouse gas (GHG) emissions, which amounts to approx 16% of Australia’s total GHG emissions. • Pork production represents just 0.4% of livestock greenhouse gas emissions. Most of our emissions (nearly 70%) come from the effluent system. This offers a • significant opportunity to reduce. Garnaut, 2008
Pork’s carbon footprint A recent APL funded project analysed these options and showed that emissions from • effluent treatment may be reduced by 62-80%. Treatments for capturing and destroying CH 4 : • Covered Anaerobic ponds (CAPs) with flaring (CAP-F) • Methane for heat to offset farm gas use (CAP – G) • Combined heat & power generation on farm (CAP- CHP) • Transporting effluent off site to a centralised anaerobic digestion plant (CAD) Greenhouse gas emissions from four alternative effluent Wiedemann et al, 2012 treatment systems for a simplified piggery system Potential to have the lowest GWP for pork production worldwide. • • Significant opportunity to reduce ecological footprint, reduce energy inputs, differentiate our product and promote the industry’s environmental credentials.
The Carbon Farming Initiative Opportunities The Carbon Farming (CFI) is a carbon offsets scheme that allows pig farmers to • earn carbon credits by reducing GHG emissions • APL provided input into policy and legislation. Worked in partnership with Government- CER, DCCEE, DAFF • The Aust. Pork industry was the first Industry to have a methodology endorsed and approved by government – “Destruction of methane generated from manure in piggeries” - Developed by APL, DCCEE and industry experts. • Second methodology recently approved for biodigesters • Other opportunities for reduction of GHG Example A 5000 standard production unit (SPU) piggery would produce ≈103,500m 3 of • methane per year, (≈1556t CO 2 equivalent per year). • With CFI credits of approximately $16/T, at $2.45 per finished pig @ 9900 pigs = $24,255 per year.
CFI: Case Study Blantyre farms • Blantyre Farms (Young, NSW) was the first piggery in Aust. to secure approval to participate in the CFI scheme. • With 22,000 pigs, Blantyre Farms installed a biogas system to generate electricity from manure by covering an effluent pond - powers the entire farm The owners, no longer pay $15,000 a month • for electricity and gas, but earn $5,000 a month from the power sold back to the electricity grid. Blantyre Farms generates CFI credits and • renewable energy certificates from the project.
APL and the Pork CRC APL APL priorities continue to focus on GHG mitigation on-farm. • There are several projects, including covered ponds and the Biogas Code. • • The National Agricultural Manure Management Program (NAMMP) is worth $6.19m (with $2.97m from DAFF) with other RDCs to address knowledge gaps leading to further CFI methodologies for producers. Pork CRC • The bio-energy support program offers free advice for producers. • Dr Stephan Tait – University of Queensland Ph: 0466 699 817. • NAMMP is currently running a project on solid manure in anaerobic digesters.
Guide to undertaking a piggeries – destruction of methane generated from manure project • Support your decision to participate in the Carbon Farming Initiative, using the piggeries methodology Page 19 11 September 2013 www.cleanenergyregulator.gov.au
What does a piggery • Manure treated in a covered pond project look like? • Pond contains only manure from operations of piggery sheds • Gas from the covered pond is collected and combusted: » Flare » Electricity generation system » Gas boiler • Use PigBal model to calculate carbon abatement. Page 20 11 September 2013 www.cleanenergyregulator.gov.au
Why participate? • Capturing emissions from effluent ponds has several benefits • Earn Australian carbon credit units (ACCUs) and sell these for a financial benefit • Watch the video at: http://www.cleanenergyfuture.gov.au/video/grantham- piggery/ Page 21 11 September 2013 www.cleanenergyregulator.gov.au
How do I get started? • Check your eligibility • Assess the feasibility • Check your expectation for return on investment • Decide on your business model • Apply: » Recognised Offsets Entity » ANREU account » Eligible Offsets project Page 22 11 September 2013 www.cleanenergyregulator.gov.au
How do I undertake a piggery project? • Meet eligibility requirements » Flare » Electricity generation » Gas boiler • Maintain your equipment • Measure inputs to PigBal PigBal Model is a computer program that predicts piggery manure production. Model inputs include daily herd information, weekly. Page 23 11 September 2013 www.cleanenergyregulator.gov.au
Project boundary • Baseline: » Greenhouse gas emissions from treatment pond (methane - CH 4 ) • Project activity: » Electricity from the grid, fuel used for gas capture and combustion (CO 2 , N 2 0, CH 4 ) » Gas capture and combustion (N 2 0, CH 4 ) Page 24 11 September 2013 www.cleanenergyregulator.gov.au
Measure and calculate abatement • Baseline calculation • Greenhouse gas abatement calculation • Monitor • Use PigBal Page 25 11 September 2013 www.cleanenergyregulator.gov.au
Monitoring and record keeping • Project information • Combustion device information • Monitoring and gas Quality assurance and composition information control matters • Direct and indirect measurement (inputs and outputs from PigBal) • Other records Page 26 11 September 2013 www.cleanenergyregulator.gov.au
More on record keeping Monitoring data is crucial to your application for ACCUs. Will you be able to protect your data in an unforseen event? Page 27 11 September 2013 www.cleanenergyregulator.gov.au
Audit report Provides a ‘reasonable assurance’ opinion on whether or not your project complies with the methodology determination and Carbon Farming legislation. Page 28 11 September 2013 www.cleanenergyregulator.gov.au
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