Indicator 2.13 - Green House Gas Emission

Climate change is a global issue that calls for attention from governments, businesses, and civil society. Alcoa and Landsvirkjun are committed to limiting greenhouse gas (GHG) emissions from their operations.

This indicator measures four kinds of issues related to GHG emissions: emissions of CO₂ and PFCs from the smelter; total SF₆ emissions from leakage from substations in the transmission system; CO₂ emissions calculated from the amount of gas and diesel fuel used by Alcoa and Landsvirkjun; and carbon sequestration (CO₂ equivalents/metric ton/yr) achieved by Alcoa and Landsvirkjun carbon sequestration projects in Iceland.

The 80 m tall stack and the Fume Treatment Plant at the Fjardaál smelter use the latest
technology for reducing GHG, PFC and fluoride emissions.

Performance

a. Total emissions of CO₂ and PFCs from smelter per ton of aluminium produced (CO₂ equivalents/metric ton of aluminium produced).
Table 1 shows the total emissions from the Fjardaál smelter in 2007-2011.

*PFC emissions are higher during startup than they will be after operations are stable.
** During this year, unforeseen incidents occurred which affected stability of the potrooms, including the emission of GHG. Under normal operation circumstances the emission should be 1.67t CO₂/t.
*** Late in the year a fire occured, which explains the increase in PFC emissions between 2009 to 2010.

Source: Alcoa Fjardaál, 2009 - 2011.
Last updated 30 March 2012

b.Total SF₆ emissions.

*kg equivalent of CO₂ in one ton of aluminum.

Source: Alcoa Fjardaál and Landsvirkjun, 2009-2011.
Last updated 30 March 2012

c. CO₂ emissions calculated from the amount of gas and diesel fuel used.

Usage of diesel fuel and gas in litres

Source: Landsvirkjun, 2009-2011.
Last updated 30 March 2012

d.Carbon sequestration (CO₂ equivalents/metric ton /yr) achieved by Alcoa and Landsvirkjun.

This table shows carbon sequestration achieved by Alcoa Fjardaál and Landsvirkjun's carbon sequestration projects in Iceland (minus the loss of vegetation caused by creation of Halson Reservoir). Landsvirkjun has reclaimed about 4,000 ha of land. Until exact measurements can be made on sequestration, it is estimated to be about 1 t/ha or about 4,000 t. CO₂/year. According to Alcoa Fjardaál, it is estimated that carbon sequestration projects per year amount to the equivalent of 19.4 t. CO₂/year, considering the amount of trees planted in these projects since 2003 (under Alcoa's Ten Million Trees plan).

Metrics, Targets and Monitoring Protocol

1. Total emissions of CO₂ and PFCs from smelter per ton of aluminium produced (CO₂ equivalents/metric ton of aluminium produced). (Project effect: direct).

2. Total SF₆ emissions from leakage from substations in the transmission system and the smelter. (Project effect: direct).

3. CO₂ emissions calculated from the amount of gas and diesel fuel used by Alcoa and Landsvirkjun, mainly for transport vehicles and engines. (Project effect: direct).

4. Carbon sequestration (CO₂ equivalents/metric ton /yr) achieved by Alcoa and Landsvirkjun carbon sequestration projects in Iceland, accounting for vegetation loss caused by creation of Halson. (Project effect: direct).

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1. 1.5 metric tons of total CO₂/metric ton Al produced (see EIA Comparison Report)

   0.05 anode effect minutes per pot day (=0.054 CO₂ equivalents/metric ton of aluminum produced) once operations and processes have stabilized post start-up.

2. Less than 0.5 % leakage per year.

3. Fljótsdalur Hydropower Station: To reduce usage of gas and diesel fuel until minimal usage has been defined. After that, a clearer target will be set. Targets for contractors during construction was not defined, but the usage was monitored and information communicated.
   

   Smelter: Reduce consumption of gasoline and diesel by 10% of baseline (to be defined) every 2 years for 10 years (a total of 50% reduction over ten years). This target only applies to the operational phase, but emissions were also monitored during construction.

4. Fljótsdalur Hydropower Station: Carbon sequestration equal or greater than what is lost from creation of the reservoir.

   Smelter: A minimum of 450 trees planted in Iceland yearly through 2007. Target will be expanded in 2008 and continue through the life of the project.

1. Total CO₂ eq. emissions = CO₂ emissions from pots + CO₂ eq. (PFCs) emissions from anode usage + CO₂ emissions from fossil fuel combustion sources. Information is collected monthly.
   

   CO₂ emissions from pots (MT) = 44/12 * net carbon consumption (MT)

   CO₂ equivalent emissions from anode usage = TBD

   CO₂ emissions from fossil fuel sources (MT) = [Propane usage (liters) * 1.5 kg CO₂/liter)]/1000 (kg/MT)

2. The equipment in substations is monitored 24 hours from Landsnet's headquarters and if gas pressure fall more than 0,8 bars, the computer gives out warning and action is taken to stop further leakage, and gas is added to the equipment if needed. In addition, the metric is monitored by filling out special forms every time more gas is added. Every year the containers with the gas are weighted and compared to information on the forms.

3. Coefficients of variations are used to convert the volume of bought fossil fuels into CO₂ equivalents. Diesel fuel use (liters) * 2.723 + Gasoline use (liter) * 2.576 = kg CO₂ equivalents. Information gathered annually from Fljótsdalur Power Station and monthly from Alcoa Fjardaál. 
4. Further information on carbon sequestration will be introduced in 2012. The Soil Conservation Service of Iceland is currently working on the first appraisal of carbon sequestration in vegetation according to new international standards. Data collection from Landsvirkjun's land reclamation projects, according to these new processes, is expected to finish in 2012. Thereafter, data will be collected every five years. Until then, the estimated emission is calculated by the size of land reclamation areas in East Iceland and the sequestration is calculated according to The Soil Conservation Service of Iceland's standards, which is around 1.5 tons of CO₂ equivalents per hectare a year. Landsvirkjun's land reclamation areas associated with the operation of Fljótsdalur Power Station in the years 2003-2010 measure about 4,800 ha. Fjardaál estimates its carbon sequestration from the number of trees that the company has planted in Iceland since 2003 (around 8,000 trees already in 2011).
5. 1. Outcomes of measurements show that the GHG emissions from Fljótsdalur Power Station's reservoirs are around 1,140 tons of CO₂ equivalents per year (Hálslón = 910 t, Kelduárlón = 200 t and Ufsarlón = 30 t). Grjótárlón emits less than 1 t per year. The outcome is based on measurements of carbon supply in vegetation and soil and experiments with GHG emissions from soil samples similar to those in the reservoir basins. Measurements are performed by The Agricultural University of Iceland (AUI), and those are the same as published in Iceland's climate bookkeeping for the United Nations Framework Convention on Climate Change. Plans assume to repeat the measurements after 10 years.
      

Rationale for Indicator Selection

Climate change is a global issue that calls for attention from governments, businesses, and civil society. Alcoa and Landsvirkjun are committed to limiting greenhouse gas (GHG) emissions from their operations.

Aluminium production is energy intensive. The decision to use hydropower instead of energy from fossil fuels therefore greatly reduces GHG emission compared to what it would have been otherwise. Nevertheless, GHG emission (CO₂ and PFCs) is considerable from industrial processes that take place during aluminium production.

GHG emission from the operation of the dam is mainly because of emission from reservoirs that takes place when vegetation is and soil is covered with water. Furthermore, some emission might take place due to leakage of SF₆ from substations in the transmission system. There is also emission because of the combustion of fossil fuels used for vehicles and engines in both companies.

In 2007 a new Act took effect in Iceland, Act No. 65/2007 on the Emission of Greenhouse Gases. According to the Act, commercial activities that emit large amounts of carbon dioxide equivalents per year, can not operate in the period from 1 January 2008 to 31 December 2009 unless they have acquired a permit for emissions of greenhouse gases for that period. Alcoa Fjardaál falls into that category and the company has acquired emission permits from the Environment Agency of Iceland.