NEW FRONTIERS IN CLIMATE ACTION OZONE DEPLETING SUBSTANCES PROTOCOL Climate Action Reserve Workshop September 2011 © 2011 EOS Climate. All rights reserved. GLOBAL WARMING POTENTIAL OF ODS [GWP] REFRIGERATION & AIR CONDITIONERS Vapor Compression: FOAM BLOWING AGENT Refrigerators Buildings Automobiles Furniture Packaging Many More CO2 1 GWP CFC-11 4,750 GWP © 2011 EOS Climate. All rights reserved. Refrigerator Cabinet Refrigerator Room Office Building Warehouse CFC-12 10,900 GWP 1 REMAINING ODS BANKS = “SIGNIFICANT CLIMATE THREAT” Montreal Protocol stops at production of CFCs and other ODS Kyoto Protocol does not include ODS ODS produced prior to their phase out deadlines remain in legal use In US and many other countries, no controls over emissions at end of life © 2011 EOS Climate. All rights reserved. 2 OZONE DEPLETING & GLOBAL WARMING POTENTIALS Equal mass amounts (ODP) © 2011 EOS Climate. All rights reserved. (GWP) 3 ODS: BUSINESS AS USUAL CLIMATE CHANGE HALOCARBONs OZONE DEPLETION USE & BANKS PRODUCTION Business as usual scenario all ODS is emitted © 2011 EOS Climate. All rights reserved. 4 IPCC/TEAP 2005-2010 “If over the next two decades the emissions of all ODS in banks were prevented, the direct, positive radiative forcing would be equal to approximately 3-4% of the total radiative forcing from all anthropogenic GHG emissions over the same period. “ “Without immediate action, reachable banks will emit approximately 6 billion tons of CO2 equivalent by 2015--- offsetting and surpassing the 5 Gt CO2 eq reduction sought during the first commitment period of the Kyoto Protocol.” © 2011 EOS Climate. All rights reserved. 5 CARBON FINANCE PROVIDES INCENTIVES Two ODS destruction protocols approved by CAR (Feb 2010): 1. CFC refrigerants and foam blowing agents originating in US (Domestic)** 2. CFC refrigerants originating in Article 5 countries • Both protocols require destruction in US ** ARB adopted domestic protocol for AB 32 offsets © 2011 EOS Climate. All rights reserved. 6 ELIGIBILITY FOR DOMESTIC PROJECTS Location Project Start Date Additionality ODS must be sourced and destroyed in U.S. or its territories Destruction within 6 months of project submission Legal test: Montreal Protocol and U.S. law limit production and intentional release of ODS, but no requirements for destruction Performance standard: Destruction rare Regulatory Compliance 99.99% destruction efficiency RCRA/Clean Air Act permits © 2011 EOS Climate. All rights reserved. 7 DOMESTIC ODS PROJECT DEFINITION Only eligible for gases completely phased out of production: − CFC-11, CFC-12 refrigerant or foam − CFC-114, CFC-115 refrigerant − HCFC-141b foam blowing agent − Excludes halons All ODS destroyed within a twelve month period at a single destruction facility © 2011 EOS Climate. All rights reserved. 8 QUANTIFYING EMISSIONS REDUCTIONS Emission reductions = [Baseline-Project] emissions Baseline emissions account for: Refrigerant-specific leak rates Foam blowing agent attenuation in landfills Project emissions include: Transportation Energy at destruction facility Replacement refrigerants 10 year crediting period © 2011 EOS Climate. All rights reserved. 9 PROJECT OPERATIONS AND MONITORING ODS Origin and Chain of Custody Equipment/location Container IDs, weight Technician IDs Custody/Ownership Transport and transfer of ODS Mode of transport, vehicle miles, etc Preparation for destruction Mixing Purification Mass/composition Destruction unit operating parameters Feedrate, temperature/pressure, continuous emissions, energy inputs 99.99% destruction efficiency Instrument calibrations © 2011 EOS Climate. All rights reserved. 10 EOS SYSTEM: SCALABLE TO MEET MARKET DEMAND EOS Climate integrates scientific & operational expertise with best in class business partners and cutting edge technologies to create the world’s first GHG emission reduction system © 2011 EOS Climate. All rights reserved. 11 PROJECT OVERVIEW - APPLIANCES JACO Environmental Hudson Technologies Inc Clean Harbors Environmental Services, AR. © 2011 EOS Climate. All rights reserved. 12 NATIONAL OPERATIONS - LOGISTICS © 2011 EOS Climate. All rights reserved. 13 STEP 1: EXTRACT R12 OUT OF THE COMPRESSOR JACO Environmental JACO Environmental © 2011 EOS Climate. All rights reserved. 14 STEP 2: FURTHER PURIFICATION & BULK STORAGE Hudson Technologies, Inc. Hudson Technologies, Inc. © 2011 EOS Climate. All rights reserved. 15 Step 3: How much was destroyed? Clean Harbors Environmental Services, Inc. © 2011 EOS Climate. All rights reserved. Clean Harbors Environmental Services, Inc. 16 ODS DESTRUCTION PREVENT BAU EMISSIONS CLIMATE CHANGE HALOCARBONs Reclaimed ODS is reused in older equipment, and ultimately leaked. OZONE DEPLETION BUSINESS AS USUAL USE & BANKS © 2011 EOS Climate. All rights reserved. ODS OFFSET PRODUCTION Reclaimed ODS is destroyed, creating a verifiable and permanent emission reduction. EOS Climate is recognized as pioneer of ODS destruction in carbon markets. 17 EOS CLIMATE – RESULTS DELIVERED 1st company to deliver domestic CRTs Delivered over 1,500,000 CRTs Repeated this accuracy 12 times for all eligible domestic ODS from both commercial & residential sources. Variance <0.0001 by 3rd party analysis Destruction to issuance < 3months Merchandizing and financial partnership with Cargill Sold to voluntary and compliance buyers seeking permanent emissions reductions. © 2011 EOS Climate. All rights reserved. 18 NEW FRONTIERS IN CLIMATE ACTION THANK YOU. Saskia Feast, Ph.D VP Business Development EOS Climate sfeast@eosclimate.com 626-840-6955 Arjun Patney Carbon Market Strategist Cargill arjun_patney@cargill.com 952-984-5521 © 2011 EOS Climate. All rights reserved.