# Technical Briefing:



# Reducing Carbon Dioxide Emissions from Canada’s Electricity Sector
U.S. Environmental Protection Agency March 27, 2015Page 2

– March 23, 2015 

# Electricity Sector Policies & Regulations Type Name Description

GHG • CO 2 regulations for coal - fired electricity (published 2012) Emission intensity standards applied to new and existing (end
- of
- life) units

• 420 tonnes CO 2 per gigawatt hour (t/ GWh )

• End
- of
- life generally defined as 50 years

• CO 2 regulations for natural gas fired electricity (proposed) Emission intensity standards for new natural gas
- fired turbines and boilers

• Large turbines (>100MW)

– 420 t/ GWh

• Small turbines (<100MW)

– 450 t/ GWh

• Boilers

– 420 t/ GWh

Air Pollution • Canada - wide Standards for Mercury Emissions from Coal - fired Electricity (published 2006) Provincial caps

• National target based on 60% capture rate

• NO x Guidelines for combustion turbines (proposed) Emission intensity standards applied to new turbines

• 85

– 500 g/GJ

• depends on size, output, and function

• SO 2 and NO

x standards for coal

fired electricity (proposed) Under development Chemicals Management Plan • Pollution Prevention Plan Notice for hydrazine (proposed ) Concentration limits

• 2.6 x 10 - 3 mg/L for freshwater

• 0.2 × 10 - 3 mg/L for sea waterPage 3

– March 23, 2015 

# Coal - Fired Electricity CO 2 

# Regulations

• The Government of Canada published the Reduction of Carbon Dioxide Emissions from Coal - fired Generation of Electricity Regulations (the regulations) in Canada Gazette, Part II in September 2012



### • These regulations:

– Are projected to reduce GHG emissions in Canada’s overall electricity sector by 46% from 2005 levels in 2030

– Will result in significant environmental and health benefits that outweigh associated costs

▪ Canadians will be better off by $7.3 billion over 21 years



### • The federal regulations will take effect July 1, 2015



### • An equivalency agreement based on achieving an equivalent environmental outcome was signed with Nova Scotia in 2014Page 4

– March 23, 2015 

# Scope of the Regulations(1)

• A coal - fired electricity generating unit is a unit that burns coal, exclusively or in combination with other fuels, for the purpose of producing electricity for sale to the grid

– Coal includes petroleum coke and fuels derived from coal (syngas)



### • New and old coal - fired electricity generation units must meet the performance standard

– A new unit is a unit that starts producing electricity commercially on or after July 1st, 2015

– An old unit is a unit that has reached its end of useful life



### • An existing unit does not need to meet the performance standard

– An existing unit is a unit that is neither old nor newPage 5

– March 23, 2015 

# Scope of the Regulations(2)

• The useful life of a unit is, in general, 50 years after starting to produce electricity commercially. However:

– Units commissioned before 1975 will reach their end
- of
- life after 50 years of operation or at the end of 2019 , whichever comes earlier

– Units commissioned in or after 1975 but before 1986 will reach their end
- of
- life after 50 years of operation or at the end of 2029 , whichever comes earlier



### • For units that began to produce electricity with a fuel other than coal, and switched to coal prior to June 23, 2010, 18 months is added to their useful lifePage 6

– March 23, 2015 

# Performance Standard Requirements

• The performance standard is set at 420 tonnes of CO 2 for each gigawatt hour (GWh) of electricity produced during a calendar year



### • Included in the performance standard are CO 2 emissions from:

– the combustion of other fossil fuels

– sorbents used to control sulfur dioxide

– the gasification of coal (or petcoke) used for electricity if the system has a responsible person in common with the unit



### • Excluded from the performance standard are:

– CO 2 emissions from the combustion of biomass

– Non
- CO 2 greenhouse gas emissions (e.g. N 2 O, CH 4 )

– CO 2 emissions captured, transported and stored in accordance with applicable lawsPage 7

– March 23, 2015 

# Flexibilities are Available

• The regulations contain flexibilities to maintain the integrity of the electricity system while still achieving the environmental objective of emission reductions



### • These flexibilities include :

– Substitution

– Emergency circumstances

– Standby units

– Carbon capture and storage (CCS) temporary exemption

– Twenty
- four month exemption for early deployment of CCSPage 8

– March 23, 2015 

# From Coal to Natural Gas - Fired Electricity Production

• An approach for GHG emissions from natural gas
- fired electricity is being developed to:

– Compliment the Reduction of Carbon Dioxide Emissions from Coal

- Fired Generation of Electricity Regulations

– Ensure that new natural gas
- fired equipment is installed efficiently; and

– Respond to industry requests for regulatory certaintyPage 9

– March 23, 2015 

## Types of Equipment that use Natural Gas to Generate Electricity

• Turbines

– Simple
- Cycle: Responsive “quick start” units used to meet peak electricity demand

– Combined
- Cycle: Efficient units; typically used for base load generation



### • Boilers

– Less efficient, older technology; some units can ‘co
- fire’ using both natural gas and heavy fuel oil



### • Both can be used in cogenerationPage 10

– March 23, 2015 

# Key Elements of the Proposed Framework

• New combustion turbine and boiler units



### • ≥ 25 MW capacity per unit



### • ≥ 10% natural gas (heating value) used



### • Produce a material amount of electricity for sale or distribution to the grid, across all industrial sectors

– Turbines: > 33% of potential electric output to the grid

– Boilers: > 9% of potential electric output to the grid

▪ Units ≤ 9% exempt until 2035



### • Monitoring based on annual average emissions



### • Performance standard requirements:

– Turbines:

▪ ≤100 MW: 450 t CO 2 / GWh ;

▪ >100 MW: 420 t CO 2 / GWh ;

– Boilers: 420 t CO 2 / GWh ;Page 11

– March 23, 2015 

## Industrial Cogeneration Systems Under the Proposed Approach

• Focus is on new combustion turbine
- based cogeneration units



## • Boiler
- based cogeneration units excluded



## • Systems are subject to the same electricity performance standards 

### set out previouslyPage 12

– March 23, 2015 

# Standard Applied at Unit Level: Linked Systems are Considered One Unit

= 1 UnitPage 13

– March 23, 2015 

# Emissions Attributed to the Unit are Used to Apportion Electricity ProductionPage 14

– March 23, 2015 

# Steam Energy is Included When 

# Calculating Emission Intensity

• Emissions intensity calculated using emissions and energy output



## • For cogeneration systems emissions from both steam and electricity production are included



## • Technical analysis is underway to understand the 

### impacts of the use of a discount factor for steam portion of the equation



## • Proportions of steam and electricity generation would 

### need to be assessed in order to apply discount factorPage 15

– March 23, 2015 

# Opportunities to Work Together Information exchange on:



## • E xisting and proposed regulations



## • I mpacts of operating conditions on electricity generation performance



## • C osts and reductions associated with emissions 

### abatement technologies



## • Emissions impacts from electricity production by technology or fuel typePage 16

– March 23, 2015 

# Thank you



# Questions?Page 17

– March 23, 2015 

# For more information...

Contact Information: Kimberly Curran, P. Eng, MASc Manager

– Technical Group Electricity and Combustion Division Telephone: 819
- 420
- 7943 e - mail: kimberly.curran@ec.gc.ca