IMPORTANT INFORMATION ABOUT THIS GUIDE The Clean Energy Regulator is updating the information in this guide to align it with the Emissions Reduction Fund. While the information in this guide about the piggeries method is current, and may be used to help you read and understand the method and its explanatory statement, general information about how to participate in the Emissions Reduction Fund requires updating. For general information about how to participate in the Emissions Reduction Fund please see Participating in the Emissions Reduction Fund – Getting started and Participating in the Emissions Reduction Fund – Claiming and selling ACCUs. The Emissions Reduction Fund The Emissions Reduction Fund (ERF) is a voluntary scheme that aims to reduce Australia’s greenhouse gas emissions by providing incentives for a range of organisations and individuals to adopt new practices and technologies to reduce their emissions. A number of activities are eligible under the scheme and individuals and organisations taking part may be able to earn Australian carbon credit units (ACCUs). One ACCU is earned for each tonne of carbon dioxide equivalent (tCO2-e) stored or avoided by a project. ACCUs may be sold to generate additional income, either to the Government through a Carbon Abatement Contract or on the secondary market. Emissions Reduction Fund projects must be conducted according to an approved method. Approved methods include all Emissions Reduction Fund methods and all original Carbon Farming Initiative methods. Why participate? As well as contributing to Australia’s efforts to reduce the amount of greenhouse gas entering the atmosphere and the opportunity to earn ACCUs, running an Emissions Reduction Fund project may offer a range of other benefits for scheme participants. Examples include increases in biodiversity, better air quality, reduced energy consumption or income from electricity generation exported into the grid or to generate heat to heat boilers and farrowing sheds. Using this booklet This booklet is a guide to using the Carbon Credits (Carbon Farming Initiative— Destruction of Methane Generated from Manure in Piggeries) Methodology Determination 2012, which you can access through the Clean Energy Regulator website. Methods set out the rules for conducting activities under the Emissions Reduction Fund to earn ACCUs. The booklet is one of a set of booklets called Participating in the Emissions Reduction Fund. One booklet, Getting Started, provides an overview of the Emissions Reduction Fund – how it works and what you need to know to get started. The booklet Claiming and selling ACCUs, provides more detail about reporting and auditing requirements as well as auctions, contracts with the Commonwealth Government and selling your ACCUs. Other booklets in the set are like this one: designed to provide a summary to help you read individual methods. Together, the booklets will help you understand what is involved in conducting an Emissions Reduction Fund project from start to end. The booklets are complementary to the Carbon Credits (Carbon Farming Initiative) Act 2011, the associated legislative rules, approved methods and their explanatory statements, but do not replace them. They have been prepared by the Clean Energy Regulator, an independent Australian statutory authority responsible for administering legislation to reduce carbon emissions and increase the use of clean energy. A guide to the destruction of methane generated by manure in piggeries method 1 Overview of a piggeries project A piggeries project involves the treatment of pig waste in a covered pond that has a minimum depth of 2 metres. Gas from the covered pond is collected and combusted using flaring, an electricity generation system or a gas boiler to ensure the destruction of methane. In doing so, the project helps to reduce the amount of greenhouse gas (methane) entering the atmosphere. To conduct a piggeries project and earn ACCUs make sure you read and understand the method and other legislative requirements. To do this you will need to: Download the Carbon Farming (Destruction of Methane Generated from Manure in Piggeries) Methodology Determination 2012 and Explanatory Statement Download and understand how the Carbon Credits (Carbon Farming Initiative) Act 2011 (the CFI Act), the Carbon credits (Carbon Farming Initiative) Regulations 2011 and the Carbon Credits (Carbon Farming Initiative) Rule 2015 apply to a project. Download and use the free PigBal model from the Clean Energy Regulator website and use it to calculate abatement for your reporting obligations. Ensure you have the legal to conduct your project. Apply to register as a scheme participant, to open an account in the Australian National Registry of Emissions Units (ANREU) and to conduct a piggeries project. Set up your project according to the instructions in Part 2 and 3 of the method. Set up record keeping and monitoring systems for your project as required by Part 5 of the method. Estimate the average annual abatement of your project, obtain an audit schedule for your project from the Clean Energy Regulator and Engage a Category 2 or 3 Greenhouse and Energy Auditor early on in your project. Submit audits of your project according to your audit schedule. Determine the amount of carbon your project stores using the calculations in Part 4 of the method. Convert the amount of carbon captured into carbon dioxide equivalents (CO 2-e). Submit your project report and application for ACCUs to the Clean Energy Regulator for assessment. A guide to the destruction of methane generated by manure in piggeries method 2 What does a piggeries project look like? • Pig waste is treated in a pond, with a minimum depth of two metres. In a piggeries project, the pond used to collect effluent from a piggery is covered to prevent release of methane into the atmosphere. Input to the pond consists only of manure from the operation of piggery sheds, which might include undigested feed and bedding. Gas from the covered pond is collected and combusted using flaring, an electricity generation system or a gas boiler to ensure the destruction of methane. Herd data (pig numbers and classes) and feed usage data (types and quantity) is recorded weekly, based on daily figures and status of the pre-treatment screening using the PigBal model. The quantity of gas sent to the combustion device is recorded continuously (an average value in a time interval not greater than one hour). The PigBal model is used to calculate abatement. Project owners also need to record the number of ponds, pond dimensions, climate data (as noted in PigBal) and non-effluent waste entering the pond in the year prior to the project commencement. Setting up and running a piggeries project Approved abatement activities under the method involve collecting the emitted gas by covering open ponds to prevent the release of gas (a mixture of methane and carbon dioxide). This requires: installing and operating covers, and gas capture and combustion equipment to existing uncovered treatment ponds, or replacing conventional ponds with covered pond systems, and combusting the methane component of the gas using flares, and/or an electricity generation system, and/or a gas boiler, which converts the methane to carbon dioxide. For a project to be eligible under this methodology, ponds need to have the following features: Manure must be treated in ponds with a minimum depth of 2 metres. Construction, operation and maintenance of ponds must meet the standards and protocols detailed in the National Environmental Guidelines for Piggeries 2010. Inputs to ponds must consist only of manure from the operation of piggery sheds. This may include undigested feed and any bedding which would, under normal operations, enter the effluent stream. Methane combustion using a flaring system must: use a flare that sparks every two seconds to ensure continuous destruction of methane, or include a control system that prevents gas flow through the flare when the flare is not operational. A guide to the destruction of methane generated by manure in piggeries method 3 For abatement activities that use an electricity generation system, the system must use the default or you must measure the combustion efficiency of the device. You must also measure the electricity generated by the device. The device must be operated in accordance with the manufacturer’s specifications, with calibration at least every five years. Calibration must be conducted by the manufacturer or by an accredited third party. For abatement activities that use a gas boiler, the system must be operated in accordance with the manufacturer’s specifications, with calibration at least every five years. Calibration must be conducted by the manufacturer or by an accredited third party. Calculate project baseline You must calculate the baseline for your project at least once every 12 months, in line with the calculations set out in the method. The baseline for your project is the methane that would have been generated and released from each pond included in the project in the absence of the project abatement activity. Measuring abatement against a baseline ensures that only abatement beyond what would have occurred anyway can be credited under the Carbon Credits (Carbon Farming Initiative) Act 2011 (Carbon Farming Initiative Act). Some emissions are not included in the project baseline, such as stationary energy, wash-down fuel use or sludge disposal practices. The project baseline must be calculated on the basis of the amount of volatile solids in the effluent stream deposited into each pond included in the project. To calculate the volatile solids in the pond, the PigBal Model (version 2.14) or more recent must be used. PigBal Model estimates of volatile solids are based on the number of animals (in various classes), the feed mix used, climatic conditions and the waste pre-treatment system (before entry of effluent into the pond) during the year. The actual calculation of baseline requires the output from PigBal (quantity of volatile solids) to be multiplied by the methane producing capability of volatile solids in pigs (standard factor for pigs of 0.45). This volume of methane is then converted to a carbon dioxide equivalent (CO 2-e) amount by a standard conversion factor, detailed in the method at Equation 1.1. Establish your project’s greenhouse gas assessment boundary The method specifies a method for calculating the net abatement amount for the project in relation to a reporting period. The greenhouse gas assessment boundary is all greenhouse gas emissions and reductions directly affected by the activity. Part 3.1 of the method provides details of which emissions sources must be included in your greenhouse gas assessment boundary. A summary of the emissions sources is in Table 1. A guide to the destruction of methane generated by manure in piggeries method 4 Table 1: Gases accounted for in the abatement calculation Source Greenhouse gas/carbon pools Baseline Greenhouse gas emissions from anaerobically treated waste in project ponds Methane (CH4) Project Activity Electricity from the grid and fuel used for gas capture and combustion Carbon dioxide (CO2) Methane (CH4) Nitrous oxide (N2O) and/or Gas capture and combustion via internal combustion engine Gas capture and combustion via gas boiler use to heat water, or generate steam Methane (CH4) Nitrous oxide (N2O) Gas capture and combustion via flaring Calculate emissions from the project Every project needs to take into account emissions that arise from running it (see Subdivisions 4.2.7, 4.2.8, 4.2.9 in the method). This is to ensure these emissions are included in calculations that determine net CO2-e abatement for a reporting period and crediting period. Calculate the net amount of abatement and number of ACCUs All offsets reports must demonstrate that all of the stipulated emissions sources and none of the excluded ones have been included in your greenhouse gas assessment boundary, and consequently, in the calculation of abatement. Emissions and sources that must be accounted for in the abatement calculations are: emissions from anaerobically treated waste in project ponds grid-derived electricity and/or fuel used in the process of gas capture and combustion (For example, pumps and engines are used in the operation of flares, as well as in the operation of control and monitoring systems.) emissions from gas capture and combustion via an internal combustion engine and electricity generation system A guide to the destruction of methane generated by manure in piggeries method 5 emissions from gas capture and combustion via a gas boiler used to heat water or generate steam, and emissions from gas capture and combustion via flaring. Some calculations will require inputs based on measurement of the following: herd data (pig numbers and classes) daily feed usage data (types and quantity) and status of the pre-treatment screening the amount of gas sent to the combustion device continuously (an average value in a time interval not greater than one hour) the number of ponds, pond dimensions, climate data (as noted in PigBal) and non-effluent waste entering the pond in the year prior to the project commencement. Equations for calculating the CO2 –e net abatement amount for a project are in Part 3 of the method. Monitoring and record keeping The Clean Energy Regulator recommends you draw up a plan for the monitoring, data collecting and record keeping required for a project report as specified in Part 4 of the method. The means of collecting and recording data will need to be in place from the start of the project. Should a project report and associated audit show that data collecting and record keeping has not been in place for the entire reporting period, ACCUs may not be issued for some or all of that reporting period. When developing your plan, make sure you have the right controls and processes around your data. Are you collecting your data efficiently? Will you be able to maintain your data in the event of an emergency such as a fire? Project and audit reports You need to report on your project to the Clean Energy Regulator and may report as frequently as every six months where allowed for in the legislative rules made under the Carbon Farming Initiative Act (2011). Audits are required where indicated in your project’s audit schedule, which the Clean Energy will provide following registration of your project. For a piggeries project, which is an emissions avoidance project, the first report must be made between six months to two years from the date the project was registered and then up to every two years thereafter. Division 4.3 of the method lists the information that must be included in your project reports. Applications for ACCUs can be made at the same time as you submit your project and audit reports using the Certificate of entitlement including offsets report form. Full reporting, record keeping and monitoring requirements are set out in regulations and rules made under the Act. You should familiarise yourself with these requirements. A guide to the destruction of methane generated by manure in piggeries method 6 The Clean Energy Regulator will not issue Australian carbon credit units automatically on receipt of a project report. Emissions Reduction Fund projects are able to generate credits throughout their crediting period. Crediting periods for each type of project are set out in Part 5 of the CFI Act. The crediting period for a piggeries project is 7 years. The role of audit Audits assess whether a project complies with the project registration, the relevant method and legislative requirements. Audit reports must be prepared by a registered category 2 or 3 greenhouse and energy auditor; a list of auditors is available on the Clean Energy Regulator website under National Greenhouse and Energy Reporting. The Clean Energy Regulator recommends you engage your auditor early when developing your project to ensure the project is auditable and to assist the auditor to plan activities throughout the reporting and post-reporting periods. The costs of any audit are your responsibility or the responsibility of your organisation. You must make available to the auditor all necessary documents and information, including data records, receipts and other supporting documentation, and calculation spread sheets. For more information about auditing your project see Participating in the Emissions Reduction Fund – Claiming and selling ACCUs. Making changes to my project You must notify the Clean Energy Regulator of any changes to your or your project’s circumstances or operations that may affect project ownership, the project’s eligibility or the amount of abatement reported and the number of ACCUs claimed. A project owner must seek approval from the Clean Energy Regulator if they intend to make a significant change from the project as outlined in the application. A guide to the destruction of methane generated by manure in piggeries method 7 Resources For more information on participating in the ERF - www.cleanenergyregulator.gov.au For more information regarding method development – www.environment.gov.au www.comlaw.gov.au is the site where you can find all legislative instruments including the: » Carbon credits (Carbon Farming Initiative) Act 2011 (current version) » Carbon credits (Carbon Farming Initiative) Regulations 2011 » Carbon Credits (Carbon Farming Initiative) Rule 2015 » Carbon Farming (Destruction of Methane Generated from Manure in Piggeries) Methodology Determination 2012 » Explanatory Statement Participating in the Emissions Reduction Fund – Getting started Participating in the Emissions Reduction Fund – Claiming and selling ACCUs Enquiries on participating in the ERF - 1300 553 542; enquiries@cleanenergyregulator.gov.au The National Environmental Guidelines for Piggeries 2010 The PigBal Model IMPORTANT INFORMATION ABOUT THIS GUIDE The Clean Energy Regulator is updating the information in this guide to align it with the Emissions Reduction Fund. While the information in this guide about the piggeries method is current, and may be used to help you read and understand the method and its explanatory statement, general information about how to participate in the Emissions Reduction Fund requires updating. For general information about how to participate in the Emissions Reduction Fund please see Participating in the Emissions Reduction Fund – Getting started and Participating in the Emissions Reduction Fund – Claiming and selling ACCUs. A guide to the destruction of methane generated by manure in piggeries method 8