Tomato greenhouse heated with landfill gas: entering the carbon market
| Region(s) | Québec, Canada |
|---|---|
| In domains | Agriculture, Food and Beverage Industry, Reduction of Greenhouse Gases |
| Participants |
In 2007, a new complex of greenhouses was built in the community of Saint-Étienne-des-Grès in the Mauricie region of Québec. Covering an area of five hectares, the complex uses a source of clean energy that helps to reduce the amount of greenhouse gas (GHG) emissions that are generated by more traditional forms of energy.
The greenhouse complex is heated by biogas (gas produced by the breakdown of organic materials) from an adjoining sanitary landfill site operated by the Mauricie waste management board, which gave the company exclusive ownership over all CO2 credits created by the project as well as the right to sell them on the carbon market. The application of this technology will in fact allow for the creation of voluntary carbon credits.
There are two advantages to the practice: i) the capture of methane from the landfill site prevents it from being released into the atmosphere; ii) the collected biogas is a source of thermal energy and serves as a replacement for natural gas, a fossil fuel.
There are a number of steps involved in setting up a project to create GHG credits:
1) Design the project (conception);
2) Conduct feasibility and eligibility studies;
3) Choose an appropriate methodology for reducing GHGs, or develop such a methodology (Canadian Standards Association and its Carbon Accounting and Management Standards [ISO 14064-1, 2, 3]);
4) Develop a Project Idea Note (PIN);
5) Draft a Project Design Document (PDD);
6) Obtain approval;
7) Negotiate a contract to purchase credits;
8) Select a registry and register; 8) Implement an ongoing audit and certification system;
9) Sell carbon credits through a broker.
The third step mentioned above is of particular significance; the chosen methodology sets out in detail how the project should be carried out and specifies both the recording requirements and the main physical parameters to be measured. In this case, the methodology focuses on the flow and temperature of the captured gas as well as a series of physico-chemical parameters to be recorded on an ongoing basis, all in an effort to ensure that the credits are valid for sale.
The governments of Canada and Québec have assumed a substantial portion of the costs involved in building an underground piping network and compression station and installing a water supply for the greenhouse.
Those interested in sponsoring such projects will be pleased to know that the Canadian government’s ecoACTION program is investing more than $3.6 billion in ecoENERGY initiatives aimed at making clean energy more accessible and affordable.
A significant amount of the company’s assets are tied up, as the greenhouse complex cost $18 million. However, the company has received federal and provincial government subsidies of $4 million and $2.1 million, respectively. The expenses incurred by the waste management board are also quite substantial for a small municipality.
Technical difficulties will arise if external experts are not brought in to measure the potential reduction in emissions.
Any project likely to generate carbon credits should establish benchmarks to determine its “additionality”, a term that indicates whether a given project will lead to a greater reduction in GHGs than would otherwise occur if it were not implemented. Current environmental legislation is often used to establish these benchmarks. In this case, such legislation may have included Québec’s Regulation respecting solid waste and the Regulation respecting the landfilling and incineration of residual materials. Given that this information could not be verified with the company, it is probable that the Saint-Étienne-des-Grès landfill site is not legally obligated to capture existing biogas or burn it off. In summary, to market carbon credits that represent the bulk of the returns on investment, the company had to demonstrate the project’s additionality.
Returns on investment may not necessarily materialise during the first year (as carbon credits will accumulate over numerous years).
Marketing the carbon credits involves various additional steps. Given that carbon market regulations are still relatively new and that procedural steps are rather complex, a sponsor of a GHG-reduction project will have to rely on external experts.
The project has been beneficial to both the company and the community near the landfill site (reduction of odours). The environment has also benefited: the capture of biogas has resulted in a drop in GHG emissions equivalent to 56,000 tonnes of CO2 per year, and there has been a reduction in atmospheric pollutants such as chlorine and ozone compounds. This has had a positive impact on the area’s ecosystems and the health of residents in local communities. It is expected that the CO2 credits created will generate returns that compensate for the investment.
Indirect results:
More than 200 jobs directly created by the new complex.
The complex will allow the company to increase production and strengthen its presence in the U.S. market.
Numerous facilities in Canada use landfill gas to produce electricity and generate heat. The Environment Canada website provides a list of projects in its “Waste Management: Landfill Gas Overview” section.
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