Environmental and Greenhouse Indicators – Calculation Methods and Assurance Outcomes  
   
Introduction

On 6 October 2006, The Australian Gas Light Company and Alinta Limited shareholders approved the merger of the Australian Gas Light Company's infrastructure and asset management businesses with Alinta and the subsequent separation of The Australian Gas Light Company’s energy business to create AGL Energy Limited.  This was approved by the Federal Court of Australia on 9 October 2006.  The separation became effective from 26 October 2006, although AGL Energy Limited commenced trading on the Australian Stock Exchange (ASX) on a deferred settlement basis from 12 October 2006.  Further information is available at the AGL website.

 

This document describes the overall approach to calculating key environmental indicators presented in the AGL Sustainability Report 2007 as well as the assurance outcomes over that data.

Calculation methods and assumptions

The following table sets out approaches to and assumptions used in the calculation of those indicators presented in the report and included within the scope of PricewaterhouseCoopers independent assurance program.  This should be read in conjunction with the relevant sections of the report.

Table 1 - AGL Footprint 2006/07 Greenhouse Gas and Environment Indicators

Indicator 2006/07 Description Assumptions
Gas fired Generation 311 ktCO2e Greenhouse emissions resulting from the operation of the Somerton and Hallet Power Stations. Inclusions:
  • Natural gas use and imports direct from the National Electricity Market (NEM).
  • Diesel use for generation facilities is included.

Exclusions:
  • Emissions from disposal of waste generated at the facility and the consumption of tariff electricity are included under ‘Buildings, Office and Waste’.
Cogeneration (Coopers & Symex) 52 ktCO2e Greenhouse emissions resulting from the operation of the Coopers Brewery and Symex Cogeneration plants. Inclusions:
  • Natural gas used to generate electricity and to create steam for use by Coopers Brewery and Symex. A portion of the electricity generated is exported to the grid.

Exclusions:
  • Emissions associated with tariff electricity (ie for ancillary services and at customer premises) are not included.
  • Emissions associated with vehicle fuel use (eg from staff who operate the facility) are included elsewhere in the footprint.
PowerDirect 29.2 ktCO2e Greenhouse emissions resulting from the operation of the KR Castlemain Cogeneration Plant, Moranbah Gas Power Station, Suncoast Biomass Generation Plant & Isis Bagasse Generation Plant. Inclusions:
  • Data represents emissions from 1 March 2007 to 30 June 2007 when AGL took operational control of these assets.
  • KR Castlemain emissions are calculated based upon the amount of natural gas used to generate electricity and to create steam.
  • Moranbah Gas Power Station emissions are calculated based upon the amount of natural gas used to generate electricity.

Exclusions:
  • Suncoast Biomass Generation Plant emissions have been estimated at 92 tCO2e based on records of fuel use during the reporting period. These emissions are not considered material to the Powerdirect footprint and because of incomplete data has been excluded. 
  • Isis Bagasse Generation Plant generates electricity from July to November based on sugar cane harvesting times.  The plant did not generate electricity under AGL ownership during the current reporting period, and therefore no emissions have been reported.
Renewable generation (hydro, wind and solar) 9 ktCO2e Greenhouse emissions resulting from the operation of NSW and Victorian hydroelectric facilities, Wattle Point Wind Farm and Wilpena Pound solar/diesel. Inclusions:
  • NEM imports at hydro facilities and wind farm, and diesel use at Wilpena Pound.

Exclusions:
  • Emissions associated with the use of vehicle fuel and office / site office accommodation for employees who manage these assets.
  • Tariff electricity used to power lights, site facilities, pumps, monitoring stations etc (this is included elsewhere in the footprint).
HC Extractions 36.9 ktCO2e Greenhouse emissions associated with the operation of HC Extractions. Inclusions:
  • Tariff electricity that is used to run the plant, natural gas used, and Freon22 use.

Exclusions:
  • Does not account for the offset effect of using waste refinery gas to produce LPG and naphtha, or avoided emissions from the production of LPG and naphtha from other sources.  Emissions from disposal of waste generated at the facility are included elsewhere in the footprint.
Camden Gas Project 12 ktCO2e Greenhouse emissions resulting from the operation of the Rosalind Park Gas Plant and the Ray Beddoe Treatment Plant . Rosalind Park Gas Plant (RPGP)

Inclusions:
  • Greenhouse emissions from the RPGP result from the combustion of gas required for the operation of 3 compressors, 1 TEG Boiler and 1 flare.
  • Greenhouse gas emissions from gas usage at the plant have been calculated using the AGO Factors and Methods Workbook (December 2006).
  • Gas usage for each compressor is metered at the inlet and monitored through the RPGP operating system. 
  • Gas usage for the TEG Boiler and flare are not metered and have been assumed to be as follows:
  • Gas usage for the TEG Boiler has been assumed to be 80 GJ/day.  This is based on a capacity of 120 GJ/day assuming a 2/3 capacity factor based upon gas field production levels.
  • Gas usage for the flare has been assumed to be 10 GJ/day based upon operating logs. 

Exclusions:
  • Fugitive emissions associated with drilling, fraccing and maintenance of coal seam methane wells.


Ray Beddoe Treatment Plant (RBTP)

Inclusions:
  • Greenhouse emissions from the RBTP result from the combustion of gas required for the operation of 1 No. compressor, 1 No. TEG Boiler and 1 No. flare.
  • Greenhouse gas emissions from gas usage at the plant have been calculated using the AGO Factors and Methods Workbook (December 2006).
  • Total gas sales from the plant is metered prior to sale.  Gas usage for the plant is not metered and has been assumed to be 5% of the total gas sales from the plant.

Exclusions:
  • Fugitive emissions associated with drilling, fraccing and maintenance of coal seam methane wells.
Landfill and Biogas (renewable generation and flaring) -294 ktCO2e Abatement produced from AGL owned generation facilities located at local/state government landfills and sewage treatment plants. Inclusions:
  • Abatement as measured via AGL Monitoring & Verification Protocols (and associated spreadsheets).  Abatement through flaring is registered under Greenhouse Friendly™ and abatement through generation is calculated in accordance with the Greenhouse Benchmark Rule (Generation) No.2 effective as of 11 June 2004. Available at www.greenhousegas.nsw.gov.au
  • Sites include Whittlesea, Wagga Wagga, Woy Woy, Kincumber, West Nowra, Gosnells, Hobart, Glenorchy, Rockingham and Werribee.

Exclusions:
  • Emissions associated with the use of tariff electricity.  These are reported elsewhere in the footprint.
  • Share of any abatement created at these sites attributed to another party under agreement with AGL.
Vehicles 0.8 ktCO2e Greenhouse emissions associated with the operation of company fleet vehicles. Inclusions:
  • Includes fuel billed under AGL ‘Fuel Card’ billing records for the period from October 2006 to June 2007.  This data was extrapolated to produce the full year figure included within the report.

Exclusions:
  • Vehicle fuel purchases conducted outside of AGL’s ‘Fuel Card’ system.
  • Abatement credits purchased to offset the greenhouse emissions associated with our fleet.
Office Electricity Use 1.95 GWh Offices presented include:
St Leonards		 Inclusions:
  • Electricity used in these buildings for the full financial year.
  • Spencer Street office was occupied by Australian Gas Light Company from 15 July 2006.
0.56 GWh Collins Street
1.77 GWh Spencer Street
0.40 GWh Eastwood
HC Extractions Water Use 24,798 kL Water consumed at AGL owned or occupied offices, depots & facilities. Assumptions:
  • Water use is taken from invoices from third party providers.
  • For our offices, water use represents the billed amount over the reporting period.
  • For our offices, where required, calculations are based on the proportion of total building floor space occupied by AGL as reported by property managers or AGL internal facilities managers.

Inclusions:
  • Water use comprises only metered and or invoiced water.
  • Includes water that has been invoiced but stored on site before actual consumption.

Exclusions:
  • Water use does not include any unmetered sources such as underground bore water or rainwater.
Somerton Power Station Water Use 30,864 kL
Camden Gas Project Water Use 8,168 kL
Collins Street Office Water Use 1,039 kL
Eastwood Office Water Use 3,322 kL
St Leonards Office Water Use 5,179 kL
Spencer Street Office Water Use 9,679 kL
Printed Paper 384 tonnes
  • Printed paper ordered through AGL National printing agreement with Lilyfield Printers. 
  • Paper used for internal AGL pay slips. 
Inclusions:
  • Printed paper use is reported for AGL Energy’s contracted printer for the continuing operations of AGL Energy only.
Office Copy Paper 37 tonnes Paper used in our fax machines, printers and photocopiers. Inclusions:
  • Office copy paper ordered by the business within the reporting period directly from Office Max or other agreed office paper provider.
Air emissions from HC Extractions

NOx – 35880 kg

CO – 9146 kg

Particulates – 5355 kg

SO2 – 1055 kg

VOC’s – 110629 kg

 Emissions to air from AGL owned facilities as reported to the local Environment Protection Authority or equivalent and the National Pollutant Inventory (NPI) as per licence or legal requirements.  Emissions to be reported are SOx, NOx (other than N02), CO, volatile organic compounds (VOC) and particulates (PM10). Assumptions:
  • AGL Energy point source emissions for Somerton, Hallett, HC Extractions, Rosalind Park Gas Plant and Ray Beddoe Treatment Plant are reported as calculated and provided to the National Pollution Inventory.
  • Point source emissions (and non-point source VOC emissions for HC Extractions) as calculated for the National Pollution Inventory (NPI).

Inclusions:
  • The National Pollutant Inventory (NPI) reports on pollutant emissions from industry and diffuse sources.  Industrial facilities annually estimate their NPI pollutant emissions and diffuse emissions are determined by state and territory environment agencies.
Air emissions from Somerton

NOx – 102144 kg

CO – 23712 kg

Particulates – 5110 kg

SO2 – 456 kg

VOC’s – 1660 kg
Air emissions from Hallett

NOx – 366237 kg

CO – 89904 kg

Particulates – 7280 kg

SO2 – 1030 kg

VOC’s – 2340kg
Air emissions from Rosalind Park Gas Plant

NOx – 16827 kg

CO – 27338 kg

Particulates – 25 kg

SO2 – 390 kg

VOC’s – 121 kg
Air emissions from Ray Beddoe Treatment Plant

NOx – 454 kg

CO – 759 kg

Particulates – 1 kg

SO2 – 10 kg

VOC’s – 1 kg
Environmental Incidents 8 incidents in total Environmental incidents recorded in the central AGL Energy database, in accordance with AGL HS&E management system.  Significant incidents are those where EPA or other regulatory body was involved and PIN's were issued, or a fine(s) were issued. Assumptions:
  • AGL Energy report environmental incidents for the continuing operations of AGL Energy only.

Inclusions:
  • An environmental incident has occurred when material has been spilled or released to the environment.
  • The incidents reported are those recorded through the AGL SAP based incident notification system, IRIS.
Environmental Training Management Systems:
472 hours		 Identification of environmental training sessions run in each State, during the reporting period. Assumptions:
  • AGL Energy report environmental training for the continuing operations of AGL Energy only.

Inclusions:
  • Management Systems  - In house HSE management systems training.
General environmental awareness: 241 hours Assumptions:
  • AGL Energy report environmental training for the continuing operations of AGL Energy only.

Inclusions:
  • General environmental awareness - any generic plant or general information /including toolbox talks or plant walk around.
Spill Response 
160 hours		 Assumptions:
  • AGL Energy report environmental training for the continuing operations of AGL Energy only.

Inclusions:
  • Spill training- any response or emergency training where liquids could be released and clean up procedures are required.
Energy management 145 hours Assumptions:
  • AGL Energy report environmental training for the continuing operations of AGL Energy only.

Inclusions:
  • Energy Management – in house energy audit & general energy awareness in the home training.
Regulatory awareness 141.50 hours Assumptions:
  • AGL Energy report environmental training for the continuing operations of AGL Energy only.

Inclusions:
  • Regulatory awareness.  Any training on licence or other regulatory requirements.
Cartridges for Plant Ark 1.422 tonnes Printer cartridges returned under Cartridges for Plant Ark program. Inclusions:
  • Printer cartridges returned under the program.
Mobile Phones collected for recycling 101 kg Mobile phones returned under Australian Mobile Telecommunications Association Mobile Muster program. Inclusions:
  • Mobile phones returned under the program.

 

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Table 2 – The Australian Gas Light Company Footprint Greenhouse Gas and
Environment Indicators

Indicator Data Description Previous Verification Outcome
Environmental Training 2005/06 Attendance at internal environmental awareness training. Refer to p22 The Australian Gas Light Sustainability Report 2006.
HC Extractions Water Use 2003/04 to 2005/06 Water consumed at AGL owned or occupied offices, depots & facilities. Refer to p25 The Australian Gas Light Sustainability Report 2006.
Air Emissions from HC Extractions 2003/04 to 2005/06 Emissions to air from AGL owned facilities as reported to the local Environment Protection Authority or equivalent and the National Pollutant Inventory (NPI) as per licence or legal requirements.  Emissions to be reported are SOx, NOx (other than N02), CO, volatile organic compounds (VOC) and particulates (PM10). Refer to p25 The Australian Gas Light Sustainability Report 2006.
Somerton Power Station Water Use 2003/04 to 2005/06 Water consumed at AGL owned or occupied offices, depots & facilities. Refer to p25 The Australian Gas Light Sustainability Report 2006.
Air Emissions from Somerton 2003/04 to 2005/06 Emissions to air from AGL owned facilities as reported to the local Environment Protection Authority or equivalent and the National Pollutant Inventory (NPI) as per licence or legal requirements.  Emissions to be reported are SOx, NOx (other than N02), CO, volatile organic compounds (VOC) and particulates (PM10). Refer to p25 The Australian Gas Light Sustainability Report 2006.
Air Emissions from Hallett 2003/04 to 2005/06 Emissions to air from AGL owned facilities as reported to the local Environment Protection Authority or equivalent and the National Pollutant Inventory (NPI) as per licence or legal requirements.  Emissions to be reported are SOx, NOx (other than N02), CO, volatile organic compounds (VOC) and particulates (PM10). Refer to p25 The Australian Gas Light Sustainability Report 2006.
Camden Gas Project Water Use 2005/06 Water consumed at AGL owned or occupied offices, depots & facilities. In 2005/06, Camden Gas Project was outside the verification scope.
Air Emissions from Rosalind Park Gas Plant 2003/04 to 2005/06 Emissions to air from AGL owned facilities as reported to the local Environment Protection Authority or equivalent and the National Pollutant Inventory (NPI) as per licence or legal requirements.  Emissions to be reported are SOx, NOx (other than N02), CO, volatile organic compounds (VOC) and particulates (PM10). Refer to p25 The Australian Gas Light Sustainability Report 2006.
Collins Street Office Water Use 2005/06 Water consumed at AGL owned or occupied offices, depots & facilities. Refer to p25 The Australian Gas Light Sustainability Report 2006.
Eastwood Office
Water Use		 2005/06 Water consumed at AGL owned or occupied offices, depots & facilities. Refer to p25 The Australian Gas Light Sustainability Report 2006.
St Leonards Office
Water Use		 2005/06 Water consumed at AGL owned or occupied offices, depots & facilities. Refer to p25 The Australian Gas Light Sustainability Report 2006.
Printed Paper 2003/04 to 2005/06 Paper use in printing during the year condusted by AGL’s contracted printer. Refer to p26 The Australian Gas Light Sustainability Report 2006.
Office copy paper 2003/04 to 2005/06 Paper used in our fax machines, printers and photocopiers. Refer to p26 The Australian Gas Light Sustainability Report 2006.
Natural gas Power Generation and Cogeneration 2005/06 Greenhouse emissions resulting from the operation of the Somerton and Hallet Power Stations and Coopers Brewery. 75 ktCO2e represents a recalculation of the previously assured figure to include emissions associated with Somerton, Hallet and Cawse Power Stations.
Renewable generation (hydro, wind and solar) 2005/06 Greenhouse emissions resulting from the operation of NSW and Victorian hydroelectric facilities, Wattle Point Wind Farm and Wilpena Pound solar/diesel. Refer to p35 The Australian Gas Light Sustainability Report 2006.
HC Extractions 2005/06 Greenhouse emissions associated with the operation of HC Extractions. Refer to p35 The Australian Gas Light Sustainability Report 2006.
Landfill and biogas (renewable generation and flaring) 2005/06 Abatement produced from AGL owned generation facilities located at local/state government landfills and sewage treatment plants. Refer to p35 The Australian Gas Light Sustainability Report 2006.

 

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Assurance Outcomes

 

Assurance statement from LBG Australia New Zealand

The LBG model helps businesses to improve the measurement, management and reporting of their corporate community involvement programs. It moves beyond charitable donations to include the full range of contributions (in time, in-kind and in cash) made to community causes, and assesses the actual results for the community and for the business (see www.lbg-australia.com for more information).

 

As managers of LBG Australia/New Zealand, we have worked with AGL Energy Limited to review its understanding of the LBG model and how it has applied the model to a range of community programs. Our aim has been to ensure that the valuation principles are correctly and consistently applied. Having conducted an assessment involving scrutiny of a significant sample of contributions, we are satisfied that this has been achieved. Our work has not extended to an independent audit of the data.

Louise Redmond
Positive Outcomes, October 2007