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A division of Richmond Systems, Inc.
8365 Hogum Bay Lane, NE|Olympia, WA 98516|Office 360.956.0384|Fax 360.352.1275
Pellet Plant Feasibility Study
Project Report
Prepared for:
Quinault Indian Nation
Prepared by:
GEORGE M. RICHMOND, P.E. RICHMOND ENGINEERING
December 2014
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Table of Contents
1. Executive Summary............................................................................................... 2
2. Introduction – Why Pellets? ................................................................................... 4
3. Availability and Types of Biomass ......................................................................... 6
4. Plant Details ........................................................................................................ 10
5. Startup Costs ....................................................................................................... 13
6. Operating Costs .................................................................................................. 15
7. Environmental Regulations .................................................................................. 16
8. Emissions ............................................................................................................ 17
9. Logging Slash Testing ......................................................................................... 19
10. Pellet Testing Summary ................................................................................... 21
11. Fuel Comparison .............................................................................................. 22
12. Market Analysis ................................................................................................ 24
13. Pellet Plants Visited ......................................................................................... 25
14. Feasibility Summary ......................................................................................... 30
15. Appendix A – Kyoto Protocol............................................................................ 31
16. Appendix B - Exploring Biomass at Boardman................................................. 53
17. Appendix C - Nile FiberTM as an Energy Crop .................................................. 76
18. Appendix D – Torrefaction ............................................................................... 78
19. Appendix E – Pellet Testing Data ..................................................................... 83
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1. Executive Summary This study will show that a pellet mill can be an economically viable business in the Taholah area and that it should be pursued not only to provide employment but also to reduce both pollution and reliance on fossil fuel. Burning wood to produce power (in the form of heat, steam, or electricity) is classified as carbon neutral. The carbon released during the combustion of wood is carbon that was sequestered from the air over the life of the tree. No new carbon is released into the atmosphere as occurs in the combustion of fossil fuels. Furthermore, because Washington’s forests grow at a much faster rate than those in Europe, it is cheaper for us to manufacture pellets which should allow for the U.S. manufacturers to export them and be competitive in a world market. Japan is a consumer of wood pellets that has little or no means of supplying for their own needs and would perhaps be a customer that could be pursued once the new pellet plant is firmly established. Japan and Europe are much further ahead in switching to biomass fuels, and they utilize wood pellets as a high density renewable fuel. Wood pellets are a good solution because material handling is simplified and the fuel meets the requirements of the Kyoto Protocol (see Appendix A), since it is carbon neutral. The potential growth of the pellet industry is promising and as the timber industry begins to recover, the market for pellets should grow. A pellet mill, producing 480 tons per month, would cost $1.3-1.5 million to construct over a two year period. This sized production facility would be adequate to supply the proposed heating plant for the Taholah administrative buildings and educational facilities with surplus product to market. It is economically viable and should be considered as a means of reducing heating fuel costs while consuming a large portion of the slash from Reservation logging operations. The economic gains for the Taholah region do not end with just the few jobs that the mill will provide, it will also benefit from spin-off businesses such as pellet stove and boiler installers as well as the jobs to produce logging or mill waste materials that are needed at the pellet mill. Raw material This report will show that while there may be adequate volumes of hog fuel, logging slash, pre-commercial thinning waste, and other wood debris to meet the local region’s demand for wood pellets, these materials aren’t suitable for producing the premium grade pellets needed. While fiber is available in adequate volume, the type of fiber required is going to be the problem. Clean, debarked wood fiber suitable for premium grade pellets, such as sawdust and shaving waste is already a sought after commodity in the pulp industry. The plant under consideration here is small compared to the fiber resources available.
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The available materials are best used in large industrial type heating plants where robust ash handling equipment can accommodate the ash volumes and clinkers associated with burning lower quality wood fiber pellets. Residential wood stove owners will not be satisfied with anything less than premium grade pellets. Labor costs A modern pellet plant sized to meet the local region demand would employ approximately 5 people with family wage jobs. The pellet plant envisioned by this study would best fit an owner/operator with a small core-group of full time employees. Although peak pellet production would take place in the summer, peak sales are in the winter heating months. The fiber gathering and pellet distribution activities can easily become a year-round operation. Transportation costs A plant sized to meet the local region wood pellet energy demand would limit haul distances to approximately 60 miles, inherently limiting transportation costs. Raw fiber haul costs would be $15 and less per ton with similar expense for pellet delivery. The region is estimated to have a population base of approximately 60,000 people within a 60 mile radius. Market demand for pellets Residential, commercial, and public heating demand within 60 miles of Taholah has been estimated at approximately 10,000 tons of wood pellets per year. This would equate to approximately 24,000 tons of green, wet sawdust and hog fuel. These numbers assume that less than 50% of the existing heating systems would be converted to pellets. Environmental concerns Working with environmental regulations would be a frequent occurrence for the operator of the pellet plant, from logging regulations in fiber procurement to emission regulations controlling particulate release during combustion. In particular, air quality regulations for solid fuel combustion will present the most challenging obstacles to expanding pellet heating systems into a larger customer base spreading across residential, commercial, and public buildings. Existing air quality regulations cover large power producers and small residential stoves but there are no regulations now in place to certify the in-between sized furnaces suitable for large residential and small commercial heating systems. This leaves most potential commercial heating systems without a cost effective solution to use wood pellets as a heating fuel.
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2. Introduction – Why Pellets?
Renewable Energy Wood biomass represents the largest volume of readily available, renewable energy on the planet. Forests cover 30% of the terrestrial (non-water covered) surface of the Earth. New crops can be produced in Pacific Northwest forests every 20 to 30 years as compared to 70 year crop rotations for the Scandinavian countries where woody biomass is being widely used. Wood pellets are a readily available, dried and compressed form of fuel that provides clean burning energy to replace fossil based heating oil, propane, natural gas, coal, and electricity The small amount of ash left over from burning pellets (1% or less) can be used as a fertilizer which can increase the productivity of farms or be put back into the forest to increase tree growth. Long term benefits could include National recognition for green energy use that should be achieved if most of the homes and businesses switch to pellet heating. It is also possible that pellets could eventually be used to provide clean electricity production in place of fossil fuels. For every 1,000 board feet of timber harvested less than 1 BDT of logging slash is produced. Timber harvests and forest management create 32,000 BDT of biomass-slash annually on the Quinault Reservation. Removal of logging slash from recently logged areas was in the past done by piling and burning. Burning of slash piles will soon not be allowed due to air quality control regulations. A significant percentage of that logging slash could be used as biomass fuel. Greenhouse Gas Emission Reduction Burning wood for heat is defined as carbon neutral. The carbon dioxide released during the combustion of wood is carbon that came from the air over the life of the tree through photosynthesis. No new carbon is released into the atmosphere as occurs in the combustion of fossil fuels. Even the energy needed to dry the fiber in the pellet plant comes from burning fiber, reducing fossil fuel demands and reducing new carbon emissions. Economic Development Assuming 10,000 tons of pellets sold per year, the local pellet plant could expect gross sales of more than $2 million per year. The plant in Taholah would generate approximately 5 direct jobs, while fiber collection, hauling, and pellet distribution would contribute another 4 or 5 seasonal jobs. In addition to employment, pellet sales would keep the money spent on heating in the local economy rather than going overseas.
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An indirect benefit could be removal of waste debris from the forest which would reduce the danger of wild fires and/or removal of waste from the mills, allowing an income stream from waste products. The ash left over from burning pellets could be used as a fertilizer for farms or forest. Safety and Availability Oil and natural gas must be handled by professionals and require expensive equipment dedicated to the product. Gas is typically supplied by underground pipe which limits its’ area of availability. Oil is delivered by truck to the point of service and it can only be delivered to areas that allow the transport of flammable, hazardous material. Wood chips and pellets can be handled safely by anyone, and in the case of wood pellets they come readily transportable in 40lb bags or bulk. Efficiency Assuming that all heat exchanger efficiencies are essentially equal, wood chips and pellets have dramatically different combustion efficiencies due to moisture content. Wood pellets are much more efficient than wood chips because the moisture content of pellets is approximately 5% while wood chips contain 50% moisture (and potentially much more).
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3. Availability and Types of Biomass Types and Quantities of Woody Biomass A requirement to identify the feasibility and sustainability of a pellet plant in the vicinity of Taholah is to find the current availability and the future availability of woody biomass in the area. In the vicinity of Taholah there are many different types of biomass residue available which include logging slash, thinning slash, hog fuel, cedar shake mill waste and storm debris. Note: Pulp chips were not included in this study since they experience a high demand from the paper industries and are consequently more costly and unavailable. Also a possibility for biomass supply are biomass crops such as Nile Fiber™ which could be added to logging slash to improve wood pellet quality. There is much research still needed to understand if and how well this biomass fuel will perform on tribal land in the coastal climate and soil. Nile Fiber™ is a specialized cultivar of Arundo Donax cultivated by Treefree Biomass Solutions Inc. in Seattle, Washington. Nile Fiber™ has a direct combustion high heating value of 8,000 BTU/lb. and can be used in most biomass heating facilities. Nile Fiber™ is a strong candidate for use as a renewable biofuel source because of its fast growth rate, ability to grow in different soil types and climatic conditions. Nile Fiber™ will produce an average of 25 tons per acre of biomass once established. Nile Fiber’s™ ability to grow 20 to 25 years without replanting is also significant. (See Appendix C) Close up of fresh harvest
Arundo Donax
Close up of Nile Fiber ™ screened chips
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In an effort to focus on the local economy and market sustainability, a region within 50 miles of Taholah was analyzed for this biomass availability research. In this region there are large quantities of biomass available fit for the sustainability of a plant sized to meet the local community’s needs. To support the potential market in Taholah and its surroundings, as well as allowing for market growth, an estimated 24,000 GT (green tons) or 12,000 BDT (bone dry tons) per year of biomass is required. There is also a substantial amount of low valued mill waste in the vicinity. Using a three year average, the Interfor sawmill and planing mill combined with the Allen Logging sawmill produces over 100,000 BDT per year of residual biomass. There are also sources for underutilized cedar shake mill waste in the vicinity that add to the availability of wood fiber. Mill waste would be an ideal material for a pellet mill since it would not have to be ground or produce excess material to be recycled. Using mill waste would require some method of collection, likely a commercial truck with a vacuum system used to remove the waste from the site and which would also be used to blow the waste out into a storage area at the mill. The preceding information provides sufficient means to recommend that the availability of woody biomass in the general vicinity of Taholah is stable and sustainable for a pellet plant that meets the community’s needs and provides ample room for market growth. Availability Assuming a 60 mile radius as an economical range of supply, there are many different types of biomass residue available. These include: sawdust; shavings; logging slash, such as limbs, tree tops, and cull logs; thinning slash, consisting primarily of small trees; hog fuel; cedar shake mill waste; and storm debris. Note that pulp chips were not included as a biomass source in this study since these chips have a higher market value than practical for pellets and the pulp and paper industry is already hard pressed for survival. Compared to our conceptual pellet plant needs, there is a large amount of quality fiber available in the vicinity. Using a three year average, the Interfor sawmill and planing mill combined with the Allen Logging sawmill produce well over 100,000 bone dry tons (BDT) per year of waste fiber. Unfortunately for potential pellet uses, these waste streams are already highly sought after by the several large pulp and paper mills in the region. Underutilized waste fiber includes cedar shake mill waste and logging slash. Available waste fiber from local shake mills is estimated at more than 50,000 tons per year. Shake mill waste has the advantage of being partially processed, requiring further size reduction before palletizing.
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A drawback is that the material is often not stored or handled carefully allowing dirt and other debris to get into the process. Specialized equipment will be required for loading, hauling, and unloading of the raw material. The potential available logging slash alone is on the order of 175,000 to 260,000 green tons per year. Pre-commercial thinning activities produce another 65,000 green tons per year. The actual amount that could be harvested successfully is probably less than half, meaning that total available fiber from these sources would most probably be in the range of 140,000 green tons per year. The picture below shows four different biomass fuels used by a single District Heat Power Plant in Finland; sawdust, canary grass, waste wood chips, and stump grindings.
Suitability of Biomass Options for Pellet Production The wood pelleting process involves the drying, grinding, conditioning, pelleting or extrusion, cooling and screening of wood fiber to produce pellets. Wood fiber is pelleted to increase its bulk density, improve its material handling characteristics, and to give the biomass a shape, which is conducive to automatic burner infeed systems. The pelleting process will increase the bulk density of the wood fiber by approximately four fold, i.e., 10 lbs. /cubic foot to about 40-42 lbs. /cubic foot. The pelleting process does not increase the BTU per pound of the wood fiber. It simply compresses more BTUs (and pounds of wood), into a particular space. There are three different grades of pellets used for fuel recognized by the Pellet Fuels Institute (PFI); Premium, Standard, and Utility grades. The percent of ash content in the pellet is what distinguishes the categories.
1. Premium pellets must contain no more than 1% ash 2. Standard grade pellets are allowed up to 3% ash content 3. Utility pellets up to 6% ash content
Premium pellets are generally produced using hardwood and softwood without inclusion of bark and can be burned in any pellet heating appliance. The highest quality pellets are made from a Douglas-fir and cedar mix. These pellets burn very hot and clean due to their high heating value and low ash content. On the other side, standard and utility pellets can include bark, needles and other low valued forest residue such as logging slash. However, these pellets, especially utility grade, can produce significant amounts of ash and clinkers (incombustible residue that has fused together - rocks, dirt, etc.) when burned. Whole tree pellets, which normally contain about 7% ash, can create in excess of 8 times more ash and clinkers than premium pellets due to the added amount of bark and needles. This can create a nuisance increase in maintenance required for normal residential boilers and stoves but may be feasible for large commercial boilers with large automatic ash removal systems such as the boilers in the Tahola heating plant.
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Hemlock and Spruce are often used in pellet production as well but the quality is less than that of Douglas-fir/cedar pellets because of its higher ash content. Pure cedar pellets are not made due to their detrimental effects to the manufacturing equipment - cedar is very abrasive and can quickly wear out pellet mill dies which are costly to replace. Research shows that standard grade pellets can consistently be made from a mixture of chipped logging slash and clean chips (no bark) or sawdust. Chipping of aged slash in the forest and hauling to the pellet mill in a chip van is the most efficient way of harvesting slash biomass from the forest. Smaller truck trailer size would be necessary for more inaccessible areas which will not support the larger chip vans. Logging slash and thinning slash would have to be processed through a grinder or chipper and the majority of dirt and needles separated out. Two pounds of dirt in a ton of wood fiber would contribute 0.1% of ash content in the finished product. Dirt and needles cause excessive ash formation and also ash fusion (clinkers). Rocks are a problem for every fuel delivery system and also cause problems in the fire box. Therefore, using slash as a fuel supply for heating requires careful handling of the slash material to avoid contamination with dirt and rocks. Waiting a year before chipping a slash pile allows time for the needles to naturally fall off as well as lowering the moisture content. Also chippers can be equipped with a port or opening in the discharge chute so that most of the needles can be eliminated from the product. With a little care in the piling of the slash and the right choices in slash handling equipment the dirt and rocks can be held to an acceptable minimum producing a very viable feedstock source for the pellet mill to produce standard or utility grade pellets.
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4. Plant Details
Why Taholah? The Taholah region has many of the needed resources for a pellet plant. The rural location makes other sources of fuel expensive due to transportation costs, while there is an abundance of raw fiber in the form of mill waste and logging residue. Given the apparent benefits, this feasibility study was commissioned to weigh all the factors and determine whether it would be economically sound to build a pellet plant in Taholah. The primary factors that were considered were availability and suitability of wood fiber, economic feasibility of operating a pellet plant, potential market demand for pellets, and impact of environmental regulations.
Plant Sizing The estimated output capacity of a pellet mill to supply the Taholah Administration buildings and the proposed school is 100 tons per month, or approximately 800 tons per year. A 5 ton per hour pellet plant, which is considered small, would produce approximately 17,600 tons per year of pellets. Note: We recommend two shifts per day with one month production lost to maintenance per year.
A 5-ton per hour pellet mill can fit within a relatively compact location. A pelleting production line from start to finish will fit within an indoor area that is 40 feet wide by 80 feet long with a minimum ceiling height of 22 feet. Dry storage for sawdust, wood chips, and any other biomass to be used would require a building approximately 80 feet x 100 feet. Also required would be a small office space, roughly 10 feet x 24 feet.
Building Site Approximately ten acres of land would be large enough to meet production needs. The land would need to meet or exceed any environmental restrictions and depending on the selected site location, a cultural artifact investigation may need to take place before building can occur. Any selected site need only have road access, allowable septic tank, water, and electricity. Since mill waste would likely be the most ideal raw material for pelletizing, a location near an operating wood products operation would be preferable since it would decrease transportation costs.
Raw material storage will take up the most room. A single shift (8 hours) worth of suitable wood would be 50 tons which would fit in 800 square feet of floor space. Allowing for 3 to 4 weeks of operation from inventory, a covered storage area of approximately 14,000 square feet would be required. If sawdust from the local mills is used as the primary or only source of raw material, then a silo might be utilized, requiring less floor space. An industrial lot of one to two acres should be sufficient room for this size of operation. We believe there are several good potential sites on Reservation land.
Pellet storage will be required during summer months as the highest production is in the summer months with the lowest sales volumes. The storage area required will depend primarily on relative volumes of bagged versus bulk pellets produced. A bulk pellet operation will be the lowest first cost approach but it will require coordination with customer installations and delivery systems.
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Equipment Layout Examples of pellet mill equipment layouts. All three of these setups could be configured to fit in the 3,200sf space recommended for the QIN pellet production facility. Small pellet mill only setup with a +/- 1,600sf footprint.
Small pellet mill only setup with a +/- 1,600sf footprint.
Large pellet mill only setup with a +/- 5,000sf footprint.
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Combined Heat and Power Options One option that is available is the ability to produce electricity with the same appliance that is heating your home or workplace. Combined Heat and Power (CHP) is the name given to this technology. Pellet boilers are available now in the United States that utilize the excess heat that is produced to power an engine to make electricity. This is a technology that has been used in Europe but has primarily been used at a more industrial scale; however the technology has been adapted to work at residential and commercial levels. This technology has been used in such a way that a pellet heating system can be self powered to allow it to still operate if the utility power goes out. Due to its’ complexity, we are not recommending adding CHP to the project at this time. Torrefaction/Gasification Torrefaction is a pretreatment process of creating a form of biomass ‘coal’ by heating the biomass to temperatures between 230° and 300°C. This creates a much better fuel quality for combustion and gasification. Torrefied biomass has water repellent properties making bulk storage in open air environments possible. (See Appendix D) Gasification is the practice of taking carbon based fuels and heating them with a controlled amount of oxygen to ensure full oxidization of the fuel occurs. This process ensures that the fuel is completely burned and if the ash is separated from the exhaust then this type of system is extremely clean burning. Gasification has been used on the commercial scale for about 50 years and has been proven to be safe and reliable. Gasification does have the disadvantage of being expensive and requires extra equipment that smaller businesses as well as individuals may find prohibitive for their scale of operation. Again, torrefaction can be considered in a future phase.
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5. Startup Costs Equipment Options Complete pellet systems are readily available, new or used. Anyone can make a quick survey on the internet and find complete equipment packages starting as low as $150,000. A basic pellet production system consists of:
1. Screw conveyors for mixing and moving chips, sawdust, shavings, etc.
2. Screens to prevent unwanted debris from entering the system
3. Hammer hog to reduce particulate size to +/- ¼” largest dimension.
4. Material handling fans and high pressure ductwork for transferring raw
materials between processing steps.
5. High efficiency dust cyclones for capturing dust and particulates from
airstream.
6. Rotary or conveyor type dryer.
7. Boiler/Furnace for pellet drying and building heat.
8. Storage bins to accumulate materials at several stages of the process to
handle surge and uneven flow requirements.
9. Feeders to regulate material flow rates.
10. Two pellet mills. these machines are the workhorses of the system and
run at high horsepower levels with high material stresses and
temperatures. They require regular maintenance to stay in operation. .
11. Cooling station: Pellets come out of the pellet mills warm and soft.
Cooling is required to toughen them and make them durable enough for
packaging and handling.
12. Packaging systems. Pellets are usually sold in bulk or in polyethylene
bags. The packaging system can easily be one of the most complicated
and expensive parts of the pellet plant. One large plant visited reported
spending more than $1 million on the robotic bagging operation alone.
13. Additional major pieces of equip would include:
a. 200hp chipper b. Chip truck c. Frontend loader d. Forklift
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Whole tree chipper Pellet mill machine Small chip truck Quonset style storage and silo There are existing commercial enterprises that already collect and chip slash to sell to facilities that utilize biomass in the region. It is recommended that hauling and chipping be contracted out rather than adding the equipment, personnel, and training necessary to supply fuel to the pellet plant. Companies already in this type of business would be more efficient and have access to equipment and more power needed to keep a dependable, steady supply of fuel. These companies, such as Hermann Brothers Logging Inc., enter into contracts with the facilities to secure a fair price and a steady stream of product for both parties. Hermann Brothers recommends entering into a 5 year long contract for a facility the size of Clallam Bay. Contracting long term with a private company such as this would allow them to invest in the proper personnel and equipment necessary for the collection of the material and provide fuel at a lower price. This would add to the economic growth of the region.
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6. Operating Costs There are many studies that can be found detailing operating costs for new pellet plants. The Tables below show a simple analysis that can be a starting point for further study. It is the opinion of this study that a pellet operation can be profitable based on an economic analysis.
Table 1a. Cost/Benefit Analysis at 240 tons per month of pellet production Source Cost per month
Building/property lease/loan $5,000 Labor/Management $17,000 Energy $2,000 Equipment loan payment $5,500 Overhead $2,000 Raw materials purchase $13,920 Miscellaneous $1,000 Total Expenditures $46,420.00
Source Income per month
Sale of Pellets Bagged & Bulk $ 55,200.00 Delivery Fee Included in Pricing Total Income $ 55,200.00
Net Profit per Month $8,780.00
Table 1b. Cost/Benefit Analysis at 480 tons per month of pellet production Source Cost per month
Building/property lease/loan $5,000 Labor/Management $21,000 Energy $6,500 Equipment loan payment $10,500 Overhead $6,000 Raw materials purchase $27,840 Miscellaneous $2,000 Total Expenditures $78,840.00 Source Income per month Sale of Pellets Bagged & Bulk $ 110,400 Delivery Fee Included in Pricing Total Income $ 110,400 Net Profit per Month $31,560.00
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7. Environmental Regulations Air Pollution Control Requirements In 2011 the Olympic Region Clean Air Agency (ORCAA) permitted a new woody biomass boiler in Forks and is reviewing proposals for several others. There is no indication that existing regulations would prohibit a project of this scale. Current combustion techniques and emission controls technology can meet existing emission standards. The following are Washington State Administrative Code (WAC) regulations which should be considered on this project with regard to air quality:
• WAC 173-400 General regulation for air pollution sources • WAC 173-401 Operating permit regulation
State regulations are administered through the Olympic Region Clean Air Agency (ORCAA) and the Washington Department of Ecology (WDOE). This project falls under EPA regulations. Fire Code Compliance The International Fire Code, International Mechanical Code, and International Building Code all have sections that would pertain to the fire safe construction and operation of a pellet mill. In some instances manufacturer guidelines are also important in following fire code and should be clearly understood. In addition to these, local code requirements would also need to be followed if present.
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8. Emissions On-site Combustion Life cycle emissions associated with the disposal of woody biomass through on-site decomposition include emissions from gathering logging residuals into slash piles and combustion of slash piles, as shown in the diagram below. There are no new products generated under the disposal options and therefore no avoided use emissions from displaced products. Logging residuals
Gasoline Emissions Diesel Slash pile Emissions
Data from gathering is based on an average of logging residual volume across PNW forest types, bulldozer operational capacity, and emissions to gather logging residuals into slash piles. Combustion emissions for slash pile logging residuals are based on values reported in the U.S. Environmental Agency’s AP-42, Compilation of Air Pollutant Emission Factors. Life cycle emissions data for on-site combustion of slash piles are presented in Table 1. System, displaced, and net emissions are given. Data presented assume the chip-then-transport woody biomass preprocessing approach – 50 mile transport distance, 100 mile distribution distance, and a fixed market demand. Values that are approximately zero (<0.005 or >0.005) are indicated by ~0. Table 2. On-site combustion life cycle emissions estimates
CO2 N2O CH4 CO PM2.5
(t CO2e/bdt) (lb/bdt)
Method Gathering 0.01 ~0 ~0 0.14 0.01
Combustion 1.74 0.06 0.03 74.01 8.00 System Emissions 1.75 0.06 0.03 74.15 8.02
Displaced - - - - - - - - - - Net Emissions 1.75 0.06 0.03 74.15 8.02
This analysis assumes that slash piles are ignited by hand, on-site. Complete combustion of residues is assumed. Burning wood pellets for heat is classified as carbon neutral. The gas released during the combustion of wood pellets is carbon that was sequestered from the air over the life of the tree.
Gathering
On-site combustion
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No new carbon is released into the atmosphere as occurs during the combustion of fossil fuels. The pellets and raw materials collected and produced by the mill will be the major supply of fuel for the dryer which further reduces the use of electricity, thereby reducing carbon emissions even further. Pelletization and Combustion in Pellet Stove The system emissions for the production of pellets and combustion in a pellet stove includes emissions associated with woody biomass preprocessing, pellet processing, packaging, distribution and combustion in pellet stove. The net emissions are the system emissions minus the avoided use emissions of minus displaced emissions from fuel wood or fossil fuel heat usage, as shown in the diagram on the following page. Logging residuals Gasoline & Diesel Emissions Slash pile Gasoline & Diesel Emissions Chips Diesel Emissions Chips Electricity, Oil, & Natural Gas Emissions Pellets Electricity, Oil, & Natural Gas Emissions Pellets Gasoline & Diesel Emissions Pellets Electricity Emissions Emissions Energy Emissions Emissions
Gathering
Packaging
Distribution
Combustion in wood stove
Processing
Pellet Processing
Transport
Furnace
Wood fuel
Fossil fuel
Other wood stove
Decomposition
Slash pile combustion
Combustion in pellet stove
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9. Logging Slash Testing Logging slash from the Quinault Reservation was collected and chipped from several piles of logging residue from a site which had been logged in the first few months of 2014. The slash had already dried to very low moisture content by August when it was chipped for the test. Most of the needles had already dropped off and so the slash was in good condition to be pelleted without much drying time. The following are pictures of the abundant supply of woody biomass which, with the right equipment could be chipped and made into pellets. The chipping of this slash would result in a clean environment for new stands of timber and lower fire danger on the Quinault Reservation as well as jobs for tribal members.
Slash pile
The piles of slash used for the testing contained as close as possible the average of the species, type, and size of biomass material found after logging throughout most of the Quinault Reservation. Unfortunately the chipper used to chip the test slash was limited in size of material it could chip so most of what was chipped was limbs and small poles less than 3” in diameter with bark over most of their surface area. In all 80% of the wood in the slash piles was larger than could be chipped by our test chipper. This resulted in a higher percentage of bark to wood ratio than could be obtained if all of the slash pile were used. Higher percentages of bark in pellets results in more ash and less BTU out put.
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Chipping log slash into the truck.
The chipped slash weighed approximately two and one half tons and was transported to Mid-Valley Milling in Prosser Washington to await pelleting. Nile FiberTM was mixed with the logging slash in (2) different percentages in one of the four batch tests which were performed at Mid-Valley. The four different batches ran at Mid-Valley for testing were: 1) 100% slash 2) 100% Nile Fiber 3) 50% slash/50% Nile Fiber 4) 60% Nile Fiber/40% slash
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10. Pellet Testing Summary Testing for BTU and ash content was conducted on November 3, 2014 by AmTest Laboratories in Kirkland, Washington. Test results can be found in Appendix F. In summary, the lab results came in very well across all the samples but we are especially pleased with the heating and pelleting results for the wood slash. The purpose of this testing was to verify or debunk previous reports that slash pelletizing could not be done successfully. We did not find that to be true at all.
A general summary of the tests indicates that the Nile Fiber has a higher BTU content but also the highest ash content and from our samples, it appears that the Nile pellets "dust" badly which is not a desirable quality in residential use pellets. The 100% woody slash pellets provide about 30% less energy per pound than 100% Nile Fiber but the output gets closer with blending. The blended pellets did not exhibit the dusting that the 100% Nile Fiber pellets did due to the natural wood resins acting as a binder for the Nile Fiber. In all cases the ash produced in our testing was greater than the 1% allowed to make Premium pellets. However, our testing did show that even using the lowest grade of slash (high bark to wood ratio) that utility grade pellets could be produced. This grade of pellets would work well for the proposed Council building heat plant. It is the feeling of Richmond Engineering that with the available fuel supplies in the area Standard and Utility grades of pellets could be produced.
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11. Fuel Comparison Cost Residential heating oil prices decreased by nearly 2 cents per gallon to reach a price of $4.02 per gallon during the period ending January 6, 2014. This is less than 2 cents per gallon higher than last year's price at this time. Wholesale heating oil prices decreased 15 cents per gallon last week to $3.07 per gallon but are forecast to rise as the heating season nears. The average residential propane price increased by almost 3 cents per gallon to nearly $2.93 per gallon, 56 cents per gallon higher than the same period last year. Wholesale propane prices decreased by less than a penny per gallon to just under $1.69 per gallon as of January 6, 2014. The major sources of competitive boiler based heating are oil, natural gas, wood pellets (bulk price shown), and wood chips. The statistics for each are given in the Tables below.
Table 3. Fuel Comparison
Pellets Natural Gas Wood Chips Oil Propane
Unit price USD 0.085/LB 0.01257/ft3 0.07/LB 2.50/gal 2.93/gal
BTU / gallon 138,690
BTU / cubic ft 1020 2,516
BTU / LB 8500 4700
Price (USD) / million BTUs
10.00 12.32 14.89 18.03 32.11
Storage On-site storage of fuel is an advantageous option since it allows a certain amount of freedom from price variation in the short term, and it also provides for a means of continuing to heat homes or businesses if the supply runs into a short term problem (i.e. a gas line breaking, snow stopping a fuel truck, etc.). Natural gas is not readily available to be stored residentially because of its explosive nature and the pressures required. Oil is generally stored at the site where it will be used, but it requires a specially constructed storage tank which brings along other potential risks since it is a hazardous material. Wood chips and pellets (in water-tight bags) can be stored anywhere including outside on the ground. However, it is better to store wood chips and pellets indoors in a dry location to maintain the efficiency at which they will burn by maintaining a low moisture content. Handling Oil and natural gas must be handled by professionals and require expensive equipment dedicated to the purpose of moving them. Gas is supplied by pipe and is very expensive to obtain in significant volumes. Oil is delivered by truck to the location of service and it can only be delivered to areas that allow for the transport of flammable hazardous material.
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Wood chips and pellets can be handled by anyone, and in the case of wood pellets they come readily transportable in a 40lb bag. Pellets can also be purchased in bulk at a cheaper price but then require a dry environment for storage. Efficiency High efficiency oil heaters can operate at up to 80% efficiency when new while older ones may operate at as low as 15% efficiency. New gas heaters can have efficiencies as high as 92% but older models near the end of their useful life may have efficiencies as low as 40%. Wood chip and pellet heaters can have efficiencies in the high 90s, but this is dependent on the quality of the fuel. Wood pellets are more efficient than wood chips because the moisture content of pellets is less than 10% while wood chips contain from 25% to 50% moisture. Electricity Electric heating is a more difficult to compare source of heating. Electric heating can operate near 100% efficiency. However, the electricity is typically produced by using fossil fuels which may be being produced at just 50% efficiency and then there is the loss of efficiency due to the long distances that the power must be transported across which may cause an additional 40% loss. Electricity costs also vary with the cost of the fossil fuel that is used to produce it.
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12. Market Analysis Market Strategy Wood pellets can and should be marketed as being a green renewable energy source that is locally based and will provide employment to people within the Olympic Peninsula region. With more than forty thousand homes in Grays Harbor and Clallam County, it would be wise to market to the home owners. The average home uses approximately three tons of pellets per year for heating. If only 5% of those homes switched to pellet heating it would provide a demand for 6,000 tons of pellets per year. However, if one large facility chose to use pellet heating it could use 3,000 or more tons of pellets by itself in one year. If local uses for the pellets do not match up with the supply then it may be possible to ship the pellets to other parts of the country or to other countries and still remain profitable. Potential Obstacles The initial cost of starting a pellet mill is the first obstacle to overcome. There are fortunately many potential solutions including: stimulus funds, government rebates, loans, and grants. Another potential obstacle is having enough raw materials supplied to the pellet mill and having a large enough consumer base to use the full fuel supply capacity of the mill. There are many sources of raw material in the Taholah area, most notably the saw and planer mills which would produce a more easily pelletized fiber than green wood. The mill waste, however, could be mixed with purchased logging slash from tribal logging to add to the raw material supply. The logging slash if handled carefully could be a major supply of fiber for the pellet mill. The consumer base is a more difficult challenge that would probably best be solved through marketing the pellets as a low cost green fuel in combination with some potential for government incentives to switch to pellet heating as a renewable fuel supply. Distributing brochures and flyers from some of the pellet stove and boiler manufacturers would probably also help, especially if the people and businesses using oil heat are targeted specifically. Distribution of the pellets could also be a potential challenge, though much of the supply produced would be used primarily for heat on the Reservation. Excess pellets would need to be sold once produced and they could be sold in bulk, by the bag, or in some combination of the two. A combination of bag and bulk selling would likely allow for a broader consumer base, and in this case it would be most advantageous to have a few large bulk consumers and then sell the rest of the pellets by the bag to individuals for heating their homes. To allow distribution of the bulk supply it will be necessary to have a commercial vehicle that has some means of transferring the load to a silo or warehouse. The bagged pellets could be sold from the mill directly or transported by truck to local suppliers.
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13. Pellet Plants Visited During the study existing pellet plants were visited to obtain operational information as to biomass sources being used for pellet production, work flows, and equipment used both for manufacture and handling. These are a few of the pellet plants used in the study:
• Bear Mountain • Lazy S. Lumber • Banks Lumber • Mid Valley Milling • Olympus Pellets
The Bear Mountain plant headquarters is located in Cascade Locks Oregon and they have another plant in Brownsville Oregon in the Willamette River Valley. The company was started in 1988 by Bob Sourek using the mountains of sawdust and shavings available from the Columbia River Gorge mills and the Willamette River Valley lumber mills in Oregon as their biomass fuel source. They produce several different kinds of pellet products to the western United States including Washington, Idaho, Oregon, California, Nevada, Montana and Utah, as well as other states across USA and other countries.
• Cozy Den Animal Bedding (cedar and pine wood shavings) • Bear Mountain BBQ Pellets (many different 100% hardwood flavors) • Bear Mountain Bear Bricks (fire logs and fire starters) • Golden Fire Wood Fuel Pellets
Bear Mountain office Woody Biomass (primarily sawdust or chips) is either trucked in or brought in by railroad car to the plant. The mill has a large dry storage area where the biomass is stored to be added to whatever pellet or product they are producing at the time.
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The Lazy S Lumber Plant is located in Beaver Creek Oregon. The mill was first started by Francis and Chris Sharron in Portland and then moved to the Beaver Creek site because of the need for expansion and increased production for their customers. The brothers did consulting designing and installing pellet equipment through a spin off company called Natural Resource Recovery. From 1989 to 1995 they designed and installed equipment for over 15 pellet mills. During this time period the demand for pellet products so outstripped the company’s ability to meet production demands that they started construction of another large mill in 1992 in Columbia City Oregon where it eventually developed production of a premium grade fuel pellet. The old mill also continued to operate to produce premium hardwood pellets and kitty litter.
Drying Kilns Lazy S storage
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In addition a state of the art wood pellet fuel plant Banks Lumber has recently been added in Banks Oregon. The company produces an equivalent of 450,000 bags per month of various product lines, including commercial grade sawdust, animal bedding, and all-wood fire-logs, and fuel and barbecue pellets. The company employs 45 full-time employees and up to 5 part-timers. It is recognized nationally and locally as a model for turning waste wood into usable commodities, and for providing rural job opportunities. They offer two different premium heating pellets as well as these other products:
• Blazer Wood Pellets (premium wood pellets) • Hot Shot Wood Pellets (premium wood pellets) • Wow Fire Starters • High Energy Logs • Noah’s Choice (animal bedding) • High Energy Quick Fire (campfire logs that start with match or lighter) • Lil’ Devils BBQ Pellets
The different mills produce most of the pellet biomass needed for the company’s pellet operations. (mill waste, sawdust and chips). However some biomass product is brought in by truck or rail for the production of hardwood pellets.
Banks Lumber Company Banks Lumber Company delivery and storage
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The Mid-Valley Milling plant located in Prosser Washington is owned by Dennis Cavin. Dennis has 40 plus years experience producing pellets of one kind or another and there is not many biomass products that he has not pelleted. He has helped in the design of several other pellet mills as well as Mid-Valley Milling. Mid-Valley Milling was selected for testing of the logging slash chipped on the Quinault Reservation because of Dennis Cavin’s willingness to help with the project and his experience with pelleting of a variety biomass products. Some of the products the mill pellets are:
• Alfalfa pellets • Blended Feed pellets • Fertilizer • Wood pellets • Wild Game Feed pellets
• Custom pellets
None of the raw materials are produced at the mill and the biomass to be pelleted is delivered by truck to the mill and stored. Mid-Valley Milling is largely dependent on nearby farms (within trucking distance) to provide biomass material to be pelleted. (hay, corn, peas, wheat, etc. and shell for fertilizer)
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The Olympus pellet mill is located in Shelton Washington and was formerly the Atlas pellet mill started in 2008. The mill was restarted by its new owners PCFF of Spokane in August 2011. The designer of the mill remains a part owner of PCFF. Plant manager Ray McLeod, who helped start up and operate the Shelton plant originally, stayed on for the re-start and ongoing operations. And Stan Elliot, a longtime former sales executive with pioneer West Coast pellet producer Bear Mountain joined the team and is heading up the Olympus Pellets sales and marketing efforts. The plant produces 4,000 tons a month with only 9 employees. The bag-house is 20% over-designed for plant production which creates a very safe and dust free environment. Excess dust in a pellet plant can result in fires and explosions but with the generous design used at the Olympus plant and the use of spark detectors it has created a very safe environment for its workers. Olympus Pellet uses Douglas Fir for it’s pellet furnish and raw material is readily available in the local area. Some of the products produced are:
• Olympus Pellets (premium pellet) • Cascade Pellets (sold as ultra premium lower moisture content) • Sierra Supreme Pellets (sold as supreme)
Raw material storage
Purchased raw material is roughly 70% sawdust and 30% planer shavings. Incoming trucks are weighed at their respective mills and when drivers enter the Olympus yard they place their weigh tickets and a load sample in a mailbox where it is picked up and tested for moisture content using a CSC machine and sent back to each mill showing moisture content for each load and total bone-dry tons delivered. The Olympus Pellet Mill, Shelton, Washington
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14. Feasibility Summary The challenges involved in operating a pellet mill in the Taholah area are many but they are surmountable. The primary concern when looking to build a new fuel supply company is establishing the current demand and determining what the demand will be in the future. Both the Quinault Indian Nation and local counties have an abundant supply of potential customers including other tribes, home owners, commercial and industrial businesses of all sizes, and government facilities. If a significant amount of advertising and marketing is put into place as the pellet mill design is started, then many people will become aware of the advantages of wood pellet fuel and will look to the new mill as their local community supplier. Sufficient raw materials exist in the Taholah area to not only support a small pellet mill but are of such scale that future expansion of the plant should also not pose a problem for the supply. Although it may be possible to successfully start and operate a pellet mill in the current economy it would be much easier to persuade people and businesses to change from their existing heating to pellet heating if the market was in better shape. However the economy appears to be on the upswing, with new home construction starting to move again. People are becoming increasingly aware of the need to become more environmentally friendly which can only help with perception of a new pellet plant. With the cost of pellet boilers being somewhat high in comparison to other fuel boilers enticing people to spend money up front in the current market is a challenging proposition. As with all new endeavors the proposed pellet mill will have to be helped along by the people who will be managing, marketing and earning their livelihood from the mill. However with planning at current market prices, a small local pellet plant in the Taholah area should be capable of making a profit.
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15. Appendix A – Kyoto Protocol (21 pages)
KYOTO PROTOCOL TO THE UNITED NATIONS FRAMEWORK
CONVENTION ON CLIMATE CHANGE
UNITED NATIONS
1998
KYOTO PROTOCOL TO THE UNITED NATIONS FRAMEWORK
CONVENTION ON CLIMATE CHANGE
The Parties to this Protocol,
Being Parties to the United Nations Framework Convention on Climate Change,
hereinafter referred to as “the Convention”,
In pursuit of the ultimate objective of the Convention as stated in its Article 2,
Recalling the provisions of the Convention,
Being guided by Article 3 of the Convention,
Pursuant to the Berlin Mandate adopted by decision 1/CP.1 of the Conference of the
Parties to the Convention at its first session,
Have agreed as follows:
Article 1
For the purposes of this Protocol, the definitions contained in Article 1 of the Convention
shall apply. In addition:
1. “Conference of the Parties” means the Conference of the Parties to the Convention.
2. “Convention” means the United Nations Framework Convention on Climate Change,
adopted in New York on 9 May 1992.
3. “Intergovernmental Panel on Climate Change” means the Intergovernmental Panel on
Climate Change established in 1988 jointly by the World Meteorological Organization and the
United Nations Environment Programme.
4. “Montreal Protocol” means the Montreal Protocol on Substances that Deplete the Ozone
Layer, adopted in Montreal on 16 September 1987 and as subsequently adjusted and amended.
5. “Parties present and voting” means Parties present and casting an affirmative or negative
vote.
6. “Party” means, unless the context otherwise indicates, a Party to this Protocol.
7. “Party included in Annex I” means a Party included in Annex I to the Convention, as
may be amended, or a Party which has made a notification under Article 4, paragraph 2 (g), of
the Convention.
Article 2
1. Each Party included in Annex I, in achieving its quantified emission limitation and
reduction commitments under Article 3, in order to promote sustainable development, shall:
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(a) Implement and/or further elaborate policies and measures in accordance with its
national circumstances, such as:
(i) Enhancement of energy efficiency in relevant sectors of the national
economy;
(ii) Protection and enhancement of sinks and reservoirs of greenhouse gases not
controlled by the Montreal Protocol, taking into account its commitments
under relevant international environmental agreements; promotion of
sustainable forest management practices, afforestation and reforestation;
(iii) Promotion of sustainable forms of agriculture in light of climate change
considerations;
(iv) Research on, and promotion, development and increased use of, new and
renewable forms of energy, of carbon dioxide sequestration technologies
and of advanced and innovative environmentally sound technologies;
(v) Progressive reduction or phasing out of market imperfections, fiscal
incentives, tax and duty exemptions and subsidies in all greenhouse gas
emitting sectors that run counter to the objective of the Convention and
application of market instruments;
(vi) Encouragement of appropriate reforms in relevant sectors aimed at
promoting policies and measures which limit or reduce emissions of
greenhouse gases not controlled by the Montreal Protocol;
(vii) Measures to limit and/or reduce emissions of greenhouse gases not
controlled by the Montreal Protocol in the transport sector;
(viii) Limitation and/or reduction of methane emissions through recovery and
use in waste management, as well as in the production, transport and
distribution of energy;
(b) Cooperate with other such Parties to enhance the individual and combined
effectiveness of their policies and measures adopted under this Article, pursuant to Article 4,
paragraph 2 (e) (i), of the Convention. To this end, these Parties shall take steps to share their
experience and exchange information on such policies and measures, including developing
ways of improving their comparability, transparency and effectiveness. The Conference of the
Parties serving as the meeting of the Parties to this Protocol shall, at its first session or as soon
as practicable thereafter, consider ways to facilitate such cooperation, taking into account all
relevant information.
2. The Parties included in Annex I shall pursue limitation or reduction of emissions of
greenhouse gases not controlled by the Montreal Protocol from aviation and marine bunker fuels,
working through the International Civil Aviation Organization and the International Maritime
Organization, respectively.
- 3 -
3. The Parties included in Annex I shall strive to implement policies and measures under
this Article in such a way as to minimize adverse effects, including the adverse effects of climate
change, effects on international trade, and social, environmental and economic impacts on other
Parties, especially developing country Parties and in particular those identified in Article 4,
paragraphs 8 and 9, of the Convention, taking into account Article 3 of the Convention. The
Conference of the Parties serving as the meeting of the Parties to this Protocol may take further
action, as appropriate, to promote the implementation of the provisions of this paragraph.
4. The Conference of the Parties serving as the meeting of the Parties to this Protocol,
if it decides that it would be beneficial to coordinate any of the policies and measures in
paragraph 1 (a) above, taking into account different national circumstances and potential effects,
shall consider ways and means to elaborate the coordination of such policies and measures.
Article 3
1. The Parties included in Annex I shall, individually or jointly, ensure that their aggregate
anthropogenic carbon dioxide equivalent emissions of the greenhouse gases listed in Annex A
do not exceed their assigned amounts, calculated pursuant to their quantified emission limitation
and reduction commitments inscribed in Annex B and in accordance with the provisions of this
Article, with a view to reducing their overall emissions of such gases by at least 5 per cent
below 1990 levels in the commitment period 2008 to 2012.
2. Each Party included in Annex I shall, by 2005, have made demonstrable progress in
achieving its commitments under this Protocol.
3. The net changes in greenhouse gas emissions by sources and removals by sinks resulting
from direct human-induced land-use change and forestry activities, limited to afforestation,
reforestation and deforestation since 1990, measured as verifiable changes in carbon stocks in
each commitment period, shall be used to meet the commitments under this Article of each Party
included in Annex I. The greenhouse gas emissions by sources and removals by sinks associated
with those activities shall be reported in a transparent and verifiable manner and reviewed in
accordance with Articles 7 and 8.
4. Prior to the first session of the Conference of the Parties serving as the meeting of the
Parties to this Protocol, each Party included in Annex I shall provide, for consideration by the
Subsidiary Body for Scientific and Technological Advice, data to establish its level of carbon
stocks in 1990 and to enable an estimate to be made of its changes in carbon stocks in
subsequent years. The Conference of the Parties serving as the meeting of the Parties to this
Protocol shall, at its first session or as soon as practicable thereafter, decide upon modalities,
rules and guidelines as to how, and which, additional human-induced activities related to
changes in greenhouse gas emissions by sources and removals by sinks in the agricultural soils
and the land-use change and forestry categories shall be added to, or subtracted from, the
assigned amounts for Parties included in Annex I, taking into account uncertainties, transparency
in reporting, verifiability, the methodological work of the Intergovernmental Panel on Climate
Change, the advice provided by the Subsidiary Body for Scientific and Technological Advice in
accordance with Article 5 and the decisions of the Conference of the Parties. Such a decision
shall apply in the second and subsequent commitment periods. A Party may choose to apply
such a decision on these additional human-induced activities for its first commitment period,
provided that these activities have taken place since 1990.
- 4 -
5. The Parties included in Annex I undergoing the process of transition to a market
economy whose base year or period was established pursuant to decision 9/CP.2 of the
Conference of the Parties at its second session shall use that base year or period for the
implementation of their commitments under this Article. Any other Party included in Annex I
undergoing the process of transition to a market economy which has not yet submitted its first
national communication under Article 12 of the Convention may also notify the Conference
of the Parties serving as the meeting of the Parties to this Protocol that it intends to use an
historical base year or period other than 1990 for the implementation of its commitments under
this Article. The Conference of the Parties serving as the meeting of the Parties to this Protocol
shall decide on the acceptance of such notification.
6. Taking into account Article 4, paragraph 6, of the Convention, in the implementation of
their commitments under this Protocol other than those under this Article, a certain degree of
flexibility shall be allowed by the Conference of the Parties serving as the meeting of the Parties
to this Protocol to the Parties included in Annex I undergoing the process of transition to a
market economy.
7. In the first quantified emission limitation and reduction commitment period, from 2008
to 2012, the assigned amount for each Party included in Annex I shall be equal to the percentage
inscribed for it in Annex B of its aggregate anthropogenic carbon dioxide equivalent emissions
of the greenhouse gases listed in Annex A in 1990, or the base year or period determined in
accordance with paragraph 5 above, multiplied by five. Those Parties included in Annex I
for whom land-use change and forestry constituted a net source of greenhouse gas emissions
in 1990 shall include in their 1990 emissions base year or period the aggregate anthropogenic
carbon dioxide equivalent emissions by sources minus removals by sinks in 1990 from land-use
change for the purposes of calculating their assigned amount.
8. Any Party included in Annex I may use 1995 as its base year for hydrofluorocarbons,
perfluorocarbons and sulphur hexafluoride, for the purposes of the calculation referred to in
paragraph 7 above.
9. Commitments for subsequent periods for Parties included in Annex I shall be established
in amendments to Annex B to this Protocol, which shall be adopted in accordance with the
provisions of Article 21, paragraph 7. The Conference of the Parties serving as the meeting of
the Parties to this Protocol shall initiate the consideration of such commitments at least
seven years before the end of the first commitment period referred to in paragraph 1 above.
10. Any emission reduction units, or any part of an assigned amount, which a Party acquires
from another Party in accordance with the provisions of Article 6 or of Article 17 shall be added
to the assigned amount for the acquiring Party.
11. Any emission reduction units, or any part of an assigned amount, which a Party transfers
to another Party in accordance with the provisions of Article 6 or of Article 17 shall be
subtracted from the assigned amount for the transferring Party.
12. Any certified emission reductions which a Party acquires from another Party in
accordance with the provisions of Article 12 shall be added to the assigned amount for the
acquiring Party.
- 5 -
13. If the emissions of a Party included in Annex I in a commitment period are less than its
assigned amount under this Article, this difference shall, on request of that Party, be added to the
assigned amount for that Party for subsequent commitment periods.
14. Each Party included in Annex I shall strive to implement the commitments mentioned in
paragraph 1 above in such a way as to minimize adverse social, environmental and economic
impacts on developing country Parties, particularly those identified in Article 4, paragraphs 8
and 9, of the Convention. In line with relevant decisions of the Conference of the Parties on the
implementation of those paragraphs, the Conference of the Parties serving as the meeting of the
Parties to this Protocol shall, at its first session, consider what actions are necessary to minimize
the adverse effects of climate change and/or the impacts of response measures on Parties referred
to in those paragraphs. Among the issues to be considered shall be the establishment of funding,
insurance and transfer of technology.
Article 4
1. Any Parties included in Annex I that have reached an agreement to fulfil their
commitments under Article 3 jointly, shall be deemed to have met those commitments provided
that their total combined aggregate anthropogenic carbon dioxide equivalent emissions of the
greenhouse gases listed in Annex A do not exceed their assigned amounts calculated pursuant to
their quantified emission limitation and reduction commitments inscribed in Annex B and in
accordance with the provisions of Article 3. The respective emission level allocated to each of
the Parties to the agreement shall be set out in that agreement.
2. The Parties to any such agreement shall notify the secretariat of the terms of the
agreement on the date of deposit of their instruments of ratification, acceptance or approval
of this Protocol, or accession thereto. The secretariat shall in turn inform the Parties and
signatories to the Convention of the terms of the agreement.
3. Any such agreement shall remain in operation for the duration of the commitment period
specified in Article 3, paragraph 7.
4. If Parties acting jointly do so in the framework of, and together with, a regional economic
integration organization, any alteration in the composition of the organization after adoption of
this Protocol shall not affect existing commitments under this Protocol. Any alteration in the
composition of the organization shall only apply for the purposes of those commitments under
Article 3 that are adopted subsequent to that alteration.
5. In the event of failure by the Parties to such an agreement to achieve their total combined
level of emission reductions, each Party to that agreement shall be responsible for its own level
of emissions set out in the agreement.
6. If Parties acting jointly do so in the framework of, and together with, a regional economic
integration organization which is itself a Party to this Protocol, each member State of that
regional economic integration organization individually, and together with the regional economic
integration organization acting in accordance with Article 24, shall, in the event of failure to
achieve the total combined level of emission reductions, be responsible for its level of emissions
as notified in accordance with this Article.
- 6 -
Article 5
1. Each Party included in Annex I shall have in place, no later than one year prior to the
start of the first commitment period, a national system for the estimation of anthropogenic
emissions by sources and removals by sinks of all greenhouse gases not controlled by the
Montreal Protocol. Guidelines for such national systems, which shall incorporate the
methodologies specified in paragraph 2 below, shall be decided upon by the Conference of
the Parties serving as the meeting of the Parties to this Protocol at its first session.
2. Methodologies for estimating anthropogenic emissions by sources and removals by sinks
of all greenhouse gases not controlled by the Montreal Protocol shall be those accepted by the
Intergovernmental Panel on Climate Change and agreed upon by the Conference of the Parties
at its third session. Where such methodologies are not used, appropriate adjustments shall be
applied according to methodologies agreed upon by the Conference of the Parties serving as the
meeting of the Parties to this Protocol at its first session. Based on the work of, inter alia, the
Intergovernmental Panel on Climate Change and advice provided by the Subsidiary Body for
Scientific and Technological Advice, the Conference of the Parties serving as the meeting of the
Parties to this Protocol shall regularly review and, as appropriate, revise such methodologies and
adjustments, taking fully into account any relevant decisions by the Conference of the Parties.
Any revision to methodologies or adjustments shall be used only for the purposes of ascertaining
compliance with commitments under Article 3 in respect of any commitment period adopted
subsequent to that revision.
3. The global warming potentials used to calculate the carbon dioxide equivalence of
anthropogenic emissions by sources and removals by sinks of greenhouse gases listed in
Annex A shall be those accepted by the Intergovernmental Panel on Climate Change and agreed
upon by the Conference of the Parties at its third session. Based on the work of, inter alia, the
Intergovernmental Panel on Climate Change and advice provided by the Subsidiary Body for
Scientific and Technological Advice, the Conference of the Parties serving as the meeting of the
Parties to this Protocol shall regularly review and, as appropriate, revise the global warming
potential of each such greenhouse gas, taking fully into account any relevant decisions by the
Conference of the Parties. Any revision to a global warming potential shall apply only to
commitments under Article 3 in respect of any commitment period adopted subsequent to that
revision.
Article 6
1. For the purpose of meeting its commitments under Article 3, any Party included in
Annex I may transfer to, or acquire from, any other such Party emission reduction units resulting
from projects aimed at reducing anthropogenic emissions by sources or enhancing anthropogenic
removals by sinks of greenhouse gases in any sector of the economy, provided that:
(a) Any such project has the approval of the Parties involved;
(b) Any such project provides a reduction in emissions by sources, or an
enhancement of removals by sinks, that is additional to any that would otherwise occur;
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(c) It does not acquire any emission reduction units if it is not in compliance with its
obligations under Articles 5 and 7; and
(d) The acquisition of emission reduction units shall be supplemental to domestic
actions for the purposes of meeting commitments under Article 3.
2. The Conference of the Parties serving as the meeting of the Parties to this Protocol
may, at its first session or as soon as practicable thereafter, further elaborate guidelines for
the implementation of this Article, including for verification and reporting.
3. A Party included in Annex I may authorize legal entities to participate, under its
responsibility, in actions leading to the generation, transfer or acquisition under this Article
of emission reduction units.
4. If a question of implementation by a Party included in Annex I of the requirements
referred to in this Article is identified in accordance with the relevant provisions of Article 8,
transfers and acquisitions of emission reduction units may continue to be made after the
question has been identified, provided that any such units may not be used by a Party to meet
its commitments under Article 3 until any issue of compliance is resolved.
Article 7
1. Each Party included in Annex I shall incorporate in its annual inventory of anthropogenic
emissions by sources and removals by sinks of greenhouse gases not controlled by the Montreal
Protocol, submitted in accordance with the relevant decisions of the Conference of the Parties,
the necessary supplementary information for the purposes of ensuring compliance with Article 3,
to be determined in accordance with paragraph 4 below.
2. Each Party included in Annex I shall incorporate in its national communication,
submitted under Article 12 of the Convention, the supplementary information necessary to
demonstrate compliance with its commitments under this Protocol, to be determined in
accordance with paragraph 4 below.
3. Each Party included in Annex I shall submit the information required under paragraph 1
above annually, beginning with the first inventory due under the Convention for the first year
of the commitment period after this Protocol has entered into force for that Party. Each such
Party shall submit the information required under paragraph 2 above as part of the first national
communication due under the Convention after this Protocol has entered into force for it and
after the adoption of guidelines as provided for in paragraph 4 below. The frequency of
subsequent submission of information required under this Article shall be determined by the
Conference of the Parties serving as the meeting of the Parties to this Protocol, taking into
account any timetable for the submission of national communications decided upon by the
Conference of the Parties.
4. The Conference of the Parties serving as the meeting of the Parties to this Protocol shall
adopt at its first session, and review periodically thereafter, guidelines for the preparation of the
information required under this Article, taking into account guidelines for the preparation of
- 8 -
national communications by Parties included in Annex I adopted by the Conference of the
Parties. The Conference of the Parties serving as the meeting of the Parties to this Protocol
shall also, prior to the first commitment period, decide upon modalities for the accounting of
assigned amounts.
Article 8
1. The information submitted under Article 7 by each Party included in Annex I shall be
reviewed by expert review teams pursuant to the relevant decisions of the Conference of the
Parties and in accordance with guidelines adopted for this purpose by the Conference of the
Parties serving as the meeting of the Parties to this Protocol under paragraph 4 below. The
information submitted under Article 7, paragraph 1, by each Party included in Annex I shall be
reviewed as part of the annual compilation and accounting of emissions inventories and assigned
amounts. Additionally, the information submitted under Article 7, paragraph 2, by each Party
included in Annex I shall be reviewed as part of the review of communications.
2. Expert review teams shall be coordinated by the secretariat and shall be composed of
experts selected from those nominated by Parties to the Convention and, as appropriate, by
intergovernmental organizations, in accordance with guidance provided for this purpose by the
Conference of the Parties.
3. The review process shall provide a thorough and comprehensive technical assessment
of all aspects of the implementation by a Party of this Protocol. The expert review teams shall
prepare a report to the Conference of the Parties serving as the meeting of the Parties to this
Protocol, assessing the implementation of the commitments of the Party and identifying any
potential problems in, and factors influencing, the fulfilment of commitments. Such reports
shall be circulated by the secretariat to all Parties to the Convention. The secretariat shall list
those questions of implementation indicated in such reports for further consideration by the
Conference of the Parties serving as the meeting of the Parties to this Protocol.
4. The Conference of the Parties serving as the meeting of the Parties to this Protocol
shall adopt at its first session, and review periodically thereafter, guidelines for the review
of implementation of this Protocol by expert review teams taking into account the relevant
decisions of the Conference of the Parties.
5. The Conference of the Parties serving as the meeting of the Parties to this Protocol
shall, with the assistance of the Subsidiary Body for Implementation and, as appropriate, the
Subsidiary Body for Scientific and Technological Advice, consider:
(a) The information submitted by Parties under Article 7 and the reports of the expert
reviews thereon conducted under this Article; and
(b) Those questions of implementation listed by the secretariat under paragraph 3
above, as well as any questions raised by Parties.
6. Pursuant to its consideration of the information referred to in paragraph 5 above,
the Conference of the Parties serving as the meeting of the Parties to this Protocol shall take
decisions on any matter required for the implementation of this Protocol.
- 9 -
Article 9
1. The Conference of the Parties serving as the meeting of the Parties to this Protocol
shall periodically review this Protocol in the light of the best available scientific information
and assessments on climate change and its impacts, as well as relevant technical, social and
economic information. Such reviews shall be coordinated with pertinent reviews under
the Convention, in particular those required by Article 4, paragraph 2 (d), and Article 7,
paragraph 2 (a), of the Convention. Based on these reviews, the Conference of the Parties
serving as the meeting of the Parties to this Protocol shall take appropriate action.
2. The first review shall take place at the second session of the Conference of the Parties
serving as the meeting of the Parties to this Protocol. Further reviews shall take place at regular
intervals and in a timely manner.
Article 10
All Parties, taking into account their common but differentiated responsibilities and their
specific national and regional development priorities, objectives and circumstances, without
introducing any new commitments for Parties not included in Annex I, but reaffirming existing
commitments under Article 4, paragraph 1, of the Convention, and continuing to advance the
implementation of these commitments in order to achieve sustainable development, taking into
account Article 4, paragraphs 3, 5 and 7, of the Convention, shall:
(a) Formulate, where relevant and to the extent possible, cost-effective national
and, where appropriate, regional programmes to improve the quality of local emission factors,
activity data and/or models which reflect the socio-economic conditions of each Party for the
preparation and periodic updating of national inventories of anthropogenic emissions by sources
and removals by sinks of all greenhouse gases not controlled by the Montreal Protocol, using
comparable methodologies to be agreed upon by the Conference of the Parties, and consistent
with the guidelines for the preparation of national communications adopted by the Conference
of the Parties;
(b) Formulate, implement, publish and regularly update national and, where
appropriate, regional programmes containing measures to mitigate climate change and measures
to facilitate adequate adaptation to climate change:
(i) Such programmes would, inter alia, concern the energy, transport and
industry sectors as well as agriculture, forestry and waste management.
Furthermore, adaptation technologies and methods for improving spatial
planning would improve adaptation to climate change; and
(ii) Parties included in Annex I shall submit information on action under this
Protocol, including national programmes, in accordance with Article 7;
and other Parties shall seek to include in their national communications,
as appropriate, information on programmes which contain measures that
the Party believes contribute to addressing climate change and its adverse
impacts, including the abatement of increases in greenhouse gas emissions,
and enhancement of and removals by sinks, capacity building and
adaptation measures;
- 10 -
(c) Cooperate in the promotion of effective modalities for the development,
application and diffusion of, and take all practicable steps to promote, facilitate and finance,
as appropriate, the transfer of, or access to, environmentally sound technologies, know-how,
practices and processes pertinent to climate change, in particular to developing countries,
including the formulation of policies and programmes for the effective transfer of
environmentally sound technologies that are publicly owned or in the public domain and the
creation of an enabling environment for the private sector, to promote and enhance the transfer
of, and access to, environmentally sound technologies;
(d) Cooperate in scientific and technical research and promote the maintenance and
the development of systematic observation systems and development of data archives to reduce
uncertainties related to the climate system, the adverse impacts of climate change and the
economic and social consequences of various response strategies, and promote the development
and strengthening of endogenous capacities and capabilities to participate in international and
intergovernmental efforts, programmes and networks on research and systematic observation,
taking into account Article 5 of the Convention;
(e) Cooperate in and promote at the international level, and, where appropriate, using
existing bodies, the development and implementation of education and training programmes,
including the strengthening of national capacity building, in particular human and institutional
capacities and the exchange or secondment of personnel to train experts in this field, in particular
for developing countries, and facilitate at the national level public awareness of, and public
access to information on, climate change. Suitable modalities should be developed to implement
these activities through the relevant bodies of the Convention, taking into account Article 6 of
the Convention;
(f) Include in their national communications information on programmes and
activities undertaken pursuant to this Article in accordance with relevant decisions of the
Conference of the Parties; and
(g) Give full consideration, in implementing the commitments under this Article,
to Article 4, paragraph 8, of the Convention.
Article 11
1. In the implementation of Article 10, Parties shall take into account the provisions of
Article 4, paragraphs 4, 5, 7, 8 and 9, of the Convention.
2. In the context of the implementation of Article 4, paragraph 1, of the Convention, in
accordance with the provisions of Article 4, paragraph 3, and Article 11 of the Convention,
and through the entity or entities entrusted with the operation of the financial mechanism of the
Convention, the developed country Parties and other developed Parties included in Annex II to
the Convention shall:
(a) Provide new and additional financial resources to meet the agreed full costs
incurred by developing country Parties in advancing the implementation of existing
commitments under Article 4, paragraph 1 (a), of the Convention that are covered in
Article 10, subparagraph (a); and
- 11 -
(b) Also provide such financial resources, including for the transfer of technology,
needed by the developing country Parties to meet the agreed full incremental costs of advancing
the implementation of existing commitments under Article 4, paragraph 1, of the Convention that
are covered by Article 10 and that are agreed between a developing country Party and the
international entity or entities referred to in Article 11 of the Convention, in accordance with
that Article.
The implementation of these existing commitments shall take into account the need for adequacy
and predictability in the flow of funds and the importance of appropriate burden sharing among
developed country Parties. The guidance to the entity or entities entrusted with the operation of
the financial mechanism of the Convention in relevant decisions of the Conference of the Parties,
including those agreed before the adoption of this Protocol, shall apply mutatis mutandis to the
provisions of this paragraph.
3. The developed country Parties and other developed Parties in Annex II to the
Convention may also provide, and developing country Parties avail themselves of, financial
resources for the implementation of Article 10, through bilateral, regional and other multilateral
channels.
Article 12
1. A clean development mechanism is hereby defined.
2. The purpose of the clean development mechanism shall be to assist Parties not included
in Annex I in achieving sustainable development and in contributing to the ultimate objective
of the Convention, and to assist Parties included in Annex I in achieving compliance with their
quantified emission limitation and reduction commitments under Article 3.
3. Under the clean development mechanism:
(a) Parties not included in Annex I will benefit from project activities resulting in
certified emission reductions; and
(b) Parties included in Annex I may use the certified emission reductions accruing
from such project activities to contribute to compliance with part of their quantified emission
limitation and reduction commitments under Article 3, as determined by the Conference of the
Parties serving as the meeting of the Parties to this Protocol.
4. The clean development mechanism shall be subject to the authority and guidance of the
Conference of the Parties serving as the meeting of the Parties to this Protocol and be supervised
by an executive board of the clean development mechanism.
5. Emission reductions resulting from each project activity shall be certified by operational
entities to be designated by the Conference of the Parties serving as the meeting of the Parties to
this Protocol, on the basis of:
(a) Voluntary participation approved by each Party involved;
- 12 -
(b) Real, measurable, and long-term benefits related to the mitigation of climate
change; and
(c) Reductions in emissions that are additional to any that would occur in the absence
of the certified project activity.
6. The clean development mechanism shall assist in arranging funding of certified project
activities as necessary.
7. The Conference of the Parties serving as the meeting of the Parties to this Protocol
shall, at its first session, elaborate modalities and procedures with the objective of ensuring
transparency, efficiency and accountability through independent auditing and verification of
project activities.
8. The Conference of the Parties serving as the meeting of the Parties to this Protocol shall
ensure that a share of the proceeds from certified project activities is used to cover administrative
expenses as well as to assist developing country Parties that are particularly vulnerable to the
adverse effects of climate change to meet the costs of adaptation.
9. Participation under the clean development mechanism, including in activities mentioned
in paragraph 3 (a) above and in the acquisition of certified emission reductions, may involve
private and/or public entities, and is to be subject to whatever guidance may be provided by the
executive board of the clean development mechanism.
10. Certified emission reductions obtained during the period from the year 2000 up to the
beginning of the first commitment period can be used to assist in achieving compliance in the
first commitment period.
Article 13
1. The Conference of the Parties, the supreme body of the Convention, shall serve as the
meeting of the Parties to this Protocol.
2. Parties to the Convention that are not Parties to this Protocol may participate as observers
in the proceedings of any session of the Conference of the Parties serving as the meeting of the
Parties to this Protocol. When the Conference of the Parties serves as the meeting of the Parties
to this Protocol, decisions under this Protocol shall be taken only by those that are Parties to this
Protocol.
3. When the Conference of the Parties serves as the meeting of the Parties to this Protocol,
any member of the Bureau of the Conference of the Parties representing a Party to the
Convention but, at that time, not a Party to this Protocol, shall be replaced by an additional
member to be elected by and from amongst the Parties to this Protocol.
4. The Conference of the Parties serving as the meeting of the Parties to this Protocol
shall keep under regular review the implementation of this Protocol and shall make, within its
mandate, the decisions necessary to promote its effective implementation. It shall perform the
functions assigned to it by this Protocol and shall:
- 13 -
(a) Assess, on the basis of all information made available to it in accordance with the
provisions of this Protocol, the implementation of this Protocol by the Parties, the overall effects
of the measures taken pursuant to this Protocol, in particular environmental, economic and social
effects as well as their cumulative impacts and the extent to which progress towards the objective
of the Convention is being achieved;
(b) Periodically examine the obligations of the Parties under this Protocol, giving due
consideration to any reviews required by Article 4, paragraph 2 (d), and Article 7, paragraph 2,
of the Convention, in the light of the objective of the Convention, the experience gained in its
implementation and the evolution of scientific and technological knowledge, and in this respect
consider and adopt regular reports on the implementation of this Protocol;
(c) Promote and facilitate the exchange of information on measures adopted by the
Parties to address climate change and its effects, taking into account the differing circumstances,
responsibilities and capabilities of the Parties and their respective commitments under this
Protocol;
(d) Facilitate, at the request of two or more Parties, the coordination of measures
adopted by them to address climate change and its effects, taking into account the differing
circumstances, responsibilities and capabilities of the Parties and their respective commitments
under this Protocol;
(e) Promote and guide, in accordance with the objective of the Convention and
the provisions of this Protocol, and taking fully into account the relevant decisions by
the Conference of the Parties, the development and periodic refinement of comparable
methodologies for the effective implementation of this Protocol, to be agreed on by the
Conference of the Parties serving as the meeting of the Parties to this Protocol;
(f) Make recommendations on any matters necessary for the implementation of
this Protocol;
(g) Seek to mobilize additional financial resources in accordance with Article 11,
paragraph 2;
(h) Establish such subsidiary bodies as are deemed necessary for the implementation
of this Protocol;
(i) Seek and utilize, where appropriate, the services and cooperation of, and
information provided by, competent international organizations and intergovernmental and
non-governmental bodies; and
(j) Exercise such other functions as may be required for the implementation of this
Protocol, and consider any assignment resulting from a decision by the Conference of the
Parties.
5. The rules of procedure of the Conference of the Parties and financial procedures applied
under the Convention shall be applied mutatis mutandis under this Protocol, except as may be
otherwise decided by consensus by the Conference of the Parties serving as the meeting of the
Parties to this Protocol.
- 14 -
6. The first session of the Conference of the Parties serving as the meeting of the Parties to
this Protocol shall be convened by the secretariat in conjunction with the first session of the
Conference of the Parties that is scheduled after the date of the entry into force of this Protocol.
Subsequent ordinary sessions of the Conference of the Parties serving as the meeting of the
Parties to this Protocol shall be held every year and in conjunction with ordinary sessions of the
Conference of the Parties, unless otherwise decided by the Conference of the Parties serving as
the meeting of the Parties to this Protocol.
7. Extraordinary sessions of the Conference of the Parties serving as the meeting of the
Parties to this Protocol shall be held at such other times as may be deemed necessary by the
Conference of the Parties serving as the meeting of the Parties to this Protocol, or at the written
request of any Party, provided that, within six months of the request being communicated to the
Parties by the secretariat, it is supported by at least one third of the Parties.
8. The United Nations, its specialized agencies and the International Atomic Energy
Agency, as well as any State member thereof or observers thereto not party to the Convention,
may be represented at sessions of the Conference of the Parties serving as the meeting of the
Parties to this Protocol as observers. Any body or agency, whether national or international,
governmental or non-governmental, which is qualified in matters covered by this Protocol
and which has informed the secretariat of its wish to be represented at a session of the
Conference of the Parties serving as the meeting of the Parties to this Protocol as an observer,
may be so admitted unless at least one third of the Parties present object. The admission and
participation of observers shall be subject to the rules of procedure, as referred to in paragraph 5
above.
Article 14
1. The secretariat established by Article 8 of the Convention shall serve as the secretariat
of this Protocol.
2. Article 8, paragraph 2, of the Convention on the functions of the secretariat, and
Article 8, paragraph 3, of the Convention on arrangements made for the functioning of the
secretariat, shall apply mutatis mutandis to this Protocol. The secretariat shall, in addition,
exercise the functions assigned to it under this Protocol.
Article 15
1. The Subsidiary Body for Scientific and Technological Advice and the Subsidiary Body
for Implementation established by Articles 9 and 10 of the Convention shall serve as,
respectively, the Subsidiary Body for Scientific and Technological Advice and the Subsidiary
Body for Implementation of this Protocol. The provisions relating to the functioning of these
two bodies under the Convention shall apply mutatis mutandis to this Protocol. Sessions of the
meetings of the Subsidiary Body for Scientific and Technological Advice and the Subsidiary
Body for Implementation of this Protocol shall be held in conjunction with the meetings of,
respectively, the Subsidiary Body for Scientific and Technological Advice and the Subsidiary
Body for Implementation of the Convention.
- 15 -
2. Parties to the Convention that are not Parties to this Protocol may participate as observers
in the proceedings of any session of the subsidiary bodies. When the subsidiary bodies serve as
the subsidiary bodies of this Protocol, decisions under this Protocol shall be taken only by those
that are Parties to this Protocol.
3. When the subsidiary bodies established by Articles 9 and 10 of the Convention exercise
their functions with regard to matters concerning this Protocol, any member of the Bureaux of
those subsidiary bodies representing a Party to the Convention but, at that time, not a party to
this Protocol, shall be replaced by an additional member to be elected by and from amongst the
Parties to this Protocol.
Article 16
The Conference of the Parties serving as the meeting of the Parties to this Protocol shall,
as soon as practicable, consider the application to this Protocol of, and modify as appropriate,
the multilateral consultative process referred to in Article 13 of the Convention, in the light of
any relevant decisions that may be taken by the Conference of the Parties. Any multilateral
consultative process that may be applied to this Protocol shall operate without prejudice to the
procedures and mechanisms established in accordance with Article 18.
Article 17
The Conference of the Parties shall define the relevant principles, modalities, rules and
guidelines, in particular for verification, reporting and accountability for emissions trading. The
Parties included in Annex B may participate in emissions trading for the purposes of fulfilling
their commitments under Article 3. Any such trading shall be supplemental to domestic actions
for the purpose of meeting quantified emission limitation and reduction commitments under that
Article.
Article 18
The Conference of the Parties serving as the meeting of the Parties to this Protocol shall,
at its first session, approve appropriate and effective procedures and mechanisms to determine
and to address cases of non-compliance with the provisions of this Protocol, including through
the development of an indicative list of consequences, taking into account the cause, type, degree
and frequency of non-compliance. Any procedures and mechanisms under this Article entailing
binding consequences shall be adopted by means of an amendment to this Protocol.
Article 19
The provisions of Article 14 of the Convention on settlement of disputes shall apply
mutatis mutandis to this Protocol.
Article 20
1. Any Party may propose amendments to this Protocol.
2. Amendments to this Protocol shall be adopted at an ordinary session of the Conference
of the Parties serving as the meeting of the Parties to this Protocol. The text of any proposed
amendment to this Protocol shall be communicated to the Parties by the secretariat at least
- 16 -
six months before the meeting at which it is proposed for adoption. The secretariat shall also
communicate the text of any proposed amendments to the Parties and signatories to the
Convention and, for information, to the Depositary.
3. The Parties shall make every effort to reach agreement on any proposed amendment to
this Protocol by consensus. If all efforts at consensus have been exhausted, and no agreement
reached, the amendment shall as a last resort be adopted by a three-fourths majority vote of the
Parties present and voting at the meeting. The adopted amendment shall be communicated by
the secretariat to the Depositary, who shall circulate it to all Parties for their acceptance.
4. Instruments of acceptance in respect of an amendment shall be deposited with the
Depositary. An amendment adopted in accordance with paragraph 3 above shall enter into
force for those Parties having accepted it on the ninetieth day after the date of receipt by the
Depositary of an instrument of acceptance by at least three fourths of the Parties to this Protocol.
5. The amendment shall enter into force for any other Party on the ninetieth day after the
date on which that Party deposits with the Depositary its instrument of acceptance of the said
amendment.
Article 21
1. Annexes to this Protocol shall form an integral part thereof and, unless otherwise
expressly provided, a reference to this Protocol constitutes at the same time a reference to
any annexes thereto. Any annexes adopted after the entry into force of this Protocol shall be
restricted to lists, forms and any other material of a descriptive nature that is of a scientific,
technical, procedural or administrative character.
2. Any Party may make proposals for an annex to this Protocol and may propose
amendments to annexes to this Protocol.
3. Annexes to this Protocol and amendments to annexes to this Protocol shall be adopted at
an ordinary session of the Conference of the Parties serving as the meeting of the Parties to this
Protocol. The text of any proposed annex or amendment to an annex shall be communicated to
the Parties by the secretariat at least six months before the meeting at which it is proposed for
adoption. The secretariat shall also communicate the text of any proposed annex or amendment
to an annex to the Parties and signatories to the Convention and, for information, to the
Depositary.
4. The Parties shall make every effort to reach agreement on any proposed annex or
amendment to an annex by consensus. If all efforts at consensus have been exhausted, and no
agreement reached, the annex or amendment to an annex shall as a last resort be adopted by a
three-fourths majority vote of the Parties present and voting at the meeting. The adopted annex
or amendment to an annex shall be communicated by the secretariat to the Depositary, who shall
circulate it to all Parties for their acceptance.
5. An annex, or amendment to an annex other than Annex A or B, that has been adopted in
accordance with paragraphs 3 and 4 above shall enter into force for all Parties to this Protocol
six months after the date of the communication by the Depositary to such Parties of the adoption
of the annex or adoption of the amendment to the annex, except for those Parties that have
- 17 -
notified the Depositary, in writing, within that period of their non-acceptance of the annex or
amendment to the annex. The annex or amendment to an annex shall enter into force for Parties
which withdraw their notification of non-acceptance on the ninetieth day after the date on which
withdrawal of such notification has been received by the Depositary.
6. If the adoption of an annex or an amendment to an annex involves an amendment to this
Protocol, that annex or amendment to an annex shall not enter into force until such time as the
amendment to this Protocol enters into force.
7. Amendments to Annexes A and B to this Protocol shall be adopted and enter into force
in accordance with the procedure set out in Article 20, provided that any amendment to Annex B
shall be adopted only with the written consent of the Party concerned.
Article 22
1. Each Party shall have one vote, except as provided for in paragraph 2 below.
2. Regional economic integration organizations, in matters within their competence, shall
exercise their right to vote with a number of votes equal to the number of their member States
that are Parties to this Protocol. Such an organization shall not exercise its right to vote if any
of its member States exercises its right, and vice versa.
Article 23
The Secretary-General of the United Nations shall be the Depositary of this Protocol.
Article 24
1. This Protocol shall be open for signature and subject to ratification, acceptance or
approval by States and regional economic integration organizations which are Parties to the
Convention. It shall be open for signature at United Nations Headquarters in New York from
16 March 1998 to 15 March 1999. This Protocol shall be open for accession from the day after
the date on which it is closed for signature. Instruments of ratification, acceptance, approval or
accession shall be deposited with the Depositary.
2. Any regional economic integration organization which becomes a Party to this Protocol
without any of its member States being a Party shall be bound by all the obligations under this
Protocol. In the case of such organizations, one or more of whose member States is a Party
to this Protocol, the organization and its member States shall decide on their respective
responsibilities for the performance of their obligations under this Protocol. In such cases, the
organization and the member States shall not be entitled to exercise rights under this Protocol
concurrently.
3. In their instruments of ratification, acceptance, approval or accession, regional economic
integration organizations shall declare the extent of their competence with respect to the matters
governed by this Protocol. These organizations shall also inform the Depositary, who shall in
turn inform the Parties, of any substantial modification in the extent of their competence.
- 18 -
Article 25
1. This Protocol shall enter into force on the ninetieth day after the date on which not less
than 55 Parties to the Convention, incorporating Parties included in Annex I which accounted in
total for at least 55 per cent of the total carbon dioxide emissions for 1990 of the Parties included
in Annex I, have deposited their instruments of ratification, acceptance, approval or accession.
2. For the purposes of this Article, “the total carbon dioxide emissions for 1990 of the
Parties included in Annex I” means the amount communicated on or before the date of adoption
of this Protocol by the Parties included in Annex I in their first national communications
submitted in accordance with Article 12 of the Convention.
3. For each State or regional economic integration organization that ratifies, accepts or
approves this Protocol or accedes thereto after the conditions set out in paragraph 1 above for
entry into force have been fulfilled, this Protocol shall enter into force on the ninetieth day
following the date of deposit of its instrument of ratification, acceptance, approval or accession.
4. For the purposes of this Article, any instrument deposited by a regional economic
integration organization shall not be counted as additional to those deposited by States members
of the organization.
Article 26
No reservations may be made to this Protocol.
Article 27
1. At any time after three years from the date on which this Protocol has entered into force
for a Party, that Party may withdraw from this Protocol by giving written notification to the
Depositary.
2. Any such withdrawal shall take effect upon expiry of one year from the date of receipt by
the Depositary of the notification of withdrawal, or on such later date as may be specified in the
notification of withdrawal.
3. Any Party that withdraws from the Convention shall be considered as also having
withdrawn from this Protocol.
Article 28
The original of this Protocol, of which the Arabic, Chinese, English, French, Russian
and Spanish texts are equally authentic, shall be deposited with the Secretary-General of the
United Nations.
DONE at Kyoto this eleventh day of December one thousand nine hundred and
ninety-seven.
IN WITNESS WHEREOF the undersigned, being duly authorized to that effect, have
affixed their signatures to this Protocol on the dates indicated.
- 19 -
Annex A
Greenhouse gases
Carbon dioxide (C02)
Methane (CH4)
Nitrous oxide (N20)
Hydrofluorocarbons (HFCs)
Perfluorocarbons (PFCs)
Sulphur hexafluoride (SF6)
Sectors/source categories
Energy
Fuel combustion
Energy industries
Manufacturing industries and construction
Transport
Other sectors
Other
Fugitive emissions from fuels
Solid fuels
Oil and natural gas
Other
Industrial processes
Mineral products
Chemical industry
Metal production
Other production
Production of halocarbons and sulphur hexafluoride
Consumption of halocarbons and sulphur hexafluoride
Other
Solvent and other product use
Agriculture
Enteric fermentation
Manure management
Rice cultivation
Agricultural soils
Prescribed burning of savannas
Field burning of agricultural residues
Other
Waste
Solid waste disposal on land
Wastewater handling
Waste incineration
Other
- 20 -
Annex B
Party Quantified emission limitation or reduction commitment
(percentage of base year or period)
Australia 108
Austria 92
Belgium 92
Bulgaria* 92
Canada 94
Croatia* 95
Czech Republic* 92
Denmark 92
Estonia* 92
European Community 92
Finland 92
France 92
Germany 92
Greece 92
Hungary* 94
Iceland 110
Ireland 92
Italy 92
Japan 94
Latvia* 92
Liechtenstein 92
Lithuania* 92
Luxembourg 92
Monaco 92
Netherlands 92
New Zealand 100
Norway 101
Poland* 94
Portugal 92
Romania* 92
Russian Federation* 100
Slovakia* 92
Slovenia* 92
Spain 92
Sweden 92
Switzerland 92
Ukraine* 100
United Kingdom of Great
Britain and Northern Ireland
92
United States of America 93
* Countries that are undergoing the process of transition to a market economy.
-----
RICHMOND ENGINEERING Page 53 of 86
16. Appendix B - Exploring Biomass at Boardman (22 pages)
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RICHMOND ENGINEERING Page 76 of 86
17. Appendix C - Nile FiberTM as an Energy Crop (1 page)
Home NileFiber™ Solutions About Us Contact
A measurement of 50,000 acres of Nile
Fiber™ produces as much usable
biomass as 1,250,000 acres of trees. The
current and best-performing agricultural
source of any biomass can only produce
usable biomass at less than 40% the rate
of Nile Fiber™.
Nile Fiber™ Competitive Outlook
2010 US Energy Production
Nile Fiber™ as an Energy CropEnergy crops are plants which are produced with the express purpose of using
their biomass energetically and at the same time reduce carbon dioxide
emission. Biofuels derived from lignocellulose plant material represent an
important renewable energy alternative to transportation fossil fuels. Perennial
rhizomatous grasses (such as Nile Fiber™) display several positive attributes as
energy crops because of their high productivity, low (no) demand for nutrient
inputs consequent to the recycling of nutrients by their rhizomes, exceptional soil
carbon sequestration – 4X switchgrass, multiple products, adaptation to saline
soils and saline water, and resistance to biotic and abiotic stresses.
Nile Fiber™ has been recognized by experts worldwide to be one of the most
promising crops for energy production for the Mediterranean climate, where it
has showed advantages as an indigenous crop (already adapted to the
environment), durable yields, and resistance to long drought period. Several field
studies have highlighted the beneficial effect of Arundo Donax on the
environment due to its minimal soil tillage, fertilizer and pesticide. Furthermore it
offers protection against soil erosion, one of the most important land degradation
processes in Mediterranean and US environments.
Nile Fiber™ bioenergy feedstock has an impressive potential for several
conversion processes. Dried biomass has a direct combustion high heating
value of 8000 BTUs/lb. Today several screening studies on energy crops have
been carried out by several Universities in the US as well as in the EU to
evaluate and identify best management practices for maximizing biomass yields
and assess environmental impacts.
Nile Fiber™ shows great promise as a vehicle for economic development. The
company intends to create new jobs and economic growth through every stage
of the value chain, from harvesting natural stands and agricultural farms of the
crop, to pulping, papermaking and shipping. The Nile Group, Inc. points out that
Nile Fiber™ cultivation "can bring new life to rural economies shattered by the
demise of their original industries."
Click to visit the Nile Fiber™ Website.
Propagation & iBPS Technology The Invasive Question Our Product Overview Environment Competitive Analysis
Nile Fiber™ A Competitive Outlook
TreeFree Biomass Solutions, Inc., Seattle, WA | Nile Fiber - Overview http://www.treefreebiomasssolutions.com/#!nile_fiber__overview/cutf
1 of 1 8/26/2014 9:48 AM
RICHMOND ENGINEERING Page 78 of 86
18. Appendix D – Torrefaction (4 pages)
Torrefaction removes moisture and volatiles
from biomass, leaving bio-coal.
TorrefactionFromWikipedia, the free encyclopedia
Torrefaction of biomass, e.g. wood, can be described as a mild form
of pyrolysis at temperatures typically ranging between 200 and
320 °C. During torrefaction, the biomass properties are changed to
obtain a much better fuel quality for combustion and gasification
applications. Torrefaction leads to a dry product with no biological
activity like rotting. Torrefaction combined with densification leads
to a very energy-dense fuel carrier of 20 to 25 GJ/ton lower heating
value (LHV).[1] Torrefaction makes the material undergo Maillard
reactions.
Biomass can sometimes be an important energy source.[2]However,
nature provides a large diversity of biomass with varying
characteristics. In order to create highly efficient biomass-to-energy
chains, torrefaction of biomass in combination with densification
(pelletisation or briquetting) is a promising step to overcome logistic
economics in large-scale sustainable energy solutions, i.e. make it easier to transport and store it. Pellets or
briquets are lighter, drier and stable in storage as opposed to the biomass they are made of.
Contents
1 Process
2 Added value of torrefied biomass
2.1 Higher energy density
2.2 More homogeneous composition
2.3 Hydrophobic behavior
2.4 Elimination of biological activity
2.5 Improved grindability
3 Markets for torrefied biomass
3.1 Wood powder fuel
3.2 Large-scale co-firing in coal-fired power plants
3.3 Steel production
3.4 Residential/decentralized heating
3.5 Biomass-to-Liquids
4 References
5 External references
Process
Torrefaction is a thermochemical treatment of biomass at 200 to 320 °C. It is carried out under atmospheric
pressure and in the absence of oxygen, i.e. with no air. During the torrefaction process, the water contained in
the biomass as well as superfluous volatiles are released, and the biopolymers (cellulose, hemicellulose and
lignin) partly decompose, giving off various types of volatiles.[3] The final product is the remaining solid, dry,
Torrefaction - Wikipedia, the free encyclopedia http://en.wikipedia.org/wiki/Torrefaction#Markets_for_torrefied_biomass
1 of 4 2/26/2014 9:11 AM
blackened material[4]which is referred to as “torrefied biomass” or “bio-coal”.
During the process, the biomass typically loses 20% of its mass (dry bone basis) and 10% of its heating value,
with no appreciable change in volume. This energy (the volatiles) can be used as a heating fuel for the
torrefaction process. After the biomass is torrefied it can be densified, usually into briquettes or pellets using
conventional densification equipment, to increase its mass and energy density and to improve its hydrophobic
properties. The final product may repel water and thus can be stored in moist air or rain without appreciable
change in moisture content or heating value, unlike the original biomass from which it is made.
With relation to brewing and food products, torrefaction occurs when a cereal (barley, maize, oats, wheat, etc.)
is cooked at high temperature to gelatinise the starch endosperm creating the expansion of the grain and creating
a puffed appearance. The cereal can then be used whole or flaked. In brewing, the use of small quantities of
torrefied wheat or barley in the mashing process aids in head retention and cling to the glass. Additionally,
torrefied cereals are generally less expensive than equal amounts of malted products.
The history of torrefaction goes back to the beginning of the 19th century, and it was also used on a large scale
during the Second World War.[5]
Added value of torrefied biomass
Torrefied and densified biomass has several advantages in different markets, which makes it a competitive
option compared to conventional biomass wood pellets:
Higher energy density
An energy density of 18–20 GJ/m³ can be achieved when combined with densification (pelletizing or
briquetting) compared to values of 10–11 GJ/m³ for raw biomass, driving a 40–50% reduction in transportation
costs. Importantly, pelletizing or briquetting primarily increases energy density. Torrefaction alone typically
decreases energy density, though it allows the material to be more easily pelletized or briquetted.
More homogeneous composition
Torrefied biomass can be produced from a wide variety of raw biomass feedstocks while yielding similar product
properties. Most woody and herbaceous biomass consists of three main polymeric structures: cellulose,
hemicellulose and lignin. Together these are called lignocellulose. Torrefaction primarily drives moisture and
oxygen-rich and hydrogen-rich functional groups from these structures, resulting in similar char-like structures
in all three cases. Therefore, most biomass fuels, regardless of origin, produce torrefied products with similar
properties with the exception of the ash properties, which largely reflect the original fuel ash content and
composition.
Hydrophobic behavior
Torrefied biomass has hydrophobic properties, i.e. repels water, and when combined with densification make
bulk storage in open air feasible.
Elimination of biological activity
All biological activity is stopped, reducing the risk of fire and stopping biological decomposition like rotting.
Torrefaction - Wikipedia, the free encyclopedia http://en.wikipedia.org/wiki/Torrefaction#Markets_for_torrefied_biomass
2 of 4 2/26/2014 9:11 AM
Improved grindability
Torrefaction of biomass leads to improved grindability of biomass. This leads to more efficient co-firing in
existingcoal-fired power stations or entrained-flow gasification for the production of chemicals and
transportation fuels.
Markets for torrefied biomass
Torrefied biomass has added value for different markets. Biomass in general provides a low-cost, low-risk route
to lower CO2-emissions.[citation needed]When high volumes are needed, torrefaction can make biomass from
distant sources price competitive because of denser material easier to store and transport.
Wood powder fuel
Torrefied wood powder can be ground into a fine powder and when compressed, mimics liquefied
petroleum gas (LPG) [citation needed].
Large-scale co-firing in coal-fired power plants
Torrefied biomass results in lower handling costs;
Torrefied biomass enables higher co-firing rates;
Product can be delivered in a range of LHVs (20–25 GJ/ton) and sizes (briquette, pellet).
Co-firing torrefied biomass with coal leads to reduction in net power plant emissions.
Steel production
Fibrous biomass is very difficult to deploy in furnaces;
To replace injection coal, biomass product needs to have LHV of more than 25 GJ/ton.
Residential/decentralized heating
Relatively high percentage of transport on wheels in the supply chain makes biomass expensive.
Increasing volumetric energy density does decrease costs;
Limited storage space increases need for increased volumetric density;
Moisture content important as moisture leads to smoke and smell.
Biomass-to-Liquids
Torrefied biomass results in lower handling costs;Torrefied biomass serves as a ‘clean’ feedstock for production of transportation fuels (Fischer–Tropsch
process), which saves considerably on production costs of such fuels.
References
^ Austin, Anna (April 20, 2010). "French torrefaction firm targets North America"
(http://www.biomassmagazine.com/articles/3665/french-torrefaction-firm-targets-north-america/). Biomass Power
and Thermal. Retrieved February 29, 2012.
1.
^ Johnson, Robin (2007). "Torrefaction - A Warmer Solution to a Colder Climate"2.
Torrefaction - Wikipedia, the free encyclopedia http://en.wikipedia.org/wiki/Torrefaction#Markets_for_torrefied_biomass
3 of 4 2/26/2014 9:11 AM
(http://www.wcwtinternational.org/torrefaction.htm). World Conservation and Wildlife Trust. Retrieved September
30, 2013.
^ Bates, R.B.; Ghoniem, A.F. (2012). "Biomass torrefaction: Modeling of volatile and solid product evolution
kinetics" (http://www.sciencedirect.com/science/article/pii/S0960852412010656). Bioresource Technology 124:
460–469. doi:10.1016/j.biortech.2012.07.018 (http://dx.doi.org/10.1016%2Fj.biortech.2012.07.018).
3.
^ "Torrefaction: The future of energy" (http://www.dutchtorrefactionassociation.eu/en/). Dutch Torrefaction
Association (DTA). Retrieved February 29, 2012.
4.
^ "Torrefaction – A New Process In Biomass and Biofuels" (http://newenergyandfuel.com/http:/newenergyandfuel
/com/2008/11/19/torrefaction-%E2%80%93-a-new-process-in-biomass-and-biofuels/). New Energy and Fuel.
November 19, 2008. Retrieved February 29, 2012.
5.
External references
"Torrefied Wood Powder to Propane"; "About Us" (http://www.summerhillbiomass.com/about-us).
Summerhill Biomass Systems, Inc. Retrieved February 29, 2012.
Zwart, R.W.R.; “Torrefaction Quality Control based on logistic & end-user requirements”, ECN report,
ECN-L—11-107
Verhoeff, F.; Adell, A.; Boersma, A.R.; Pels, J.R.; Lensselink, J.; Kiel, J.H.A.; Schukken, H.; “TorTech:
Torrefaction as key Technology for the production of (solid) fuels from biomass and waste”, ECN report,
ECN-E--11-039
Bergman, P.C.A.; Kiel, J.H.A., 2005, “Torrefaction for biomass upgrading”, ECN report, ECN-RX
—05-180
Bergman, P.C.A.; Boersma, A.R.; Zwart, R.W.R.; Kiel, J.H.A., 2005, “Development of torrefaction for
biomass co-firing in existing coal-fired power stations”, ECN report ECN-C—05-013
Bergman, P.C.A., 2005, “Combined torrefaction and pelletisation – the TOP process”, ECN Report,
ECN-C—05-073
Bergman, P.C.A.; Boersma, A.R.; Kiel, J.H.A.; Prins, M.J.; Ptasinski, K.J.; Janssen, F.G.G.J., 2005,
“Torrefied biomass for entrained-flow gasification of biomass”, ECN Report ECN-C—05-026.
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19. Appendix E – Pellet Testing Data (3 pages)
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