Bioenergy Producer Program Application Guidance. Bioenergy Producer Program Application Guidance Documents

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1 Bioenergy Producer Program Application Guidance Bioenergy Producer Program Application Guidance Documents Please read through these documents carefully before completing and submitting the application package for the Bioenergy Producer Program. These forms provide valuable information and tips with regard to completing the application package. Contents Guideline General Application Form Guideline Schedule A Bioenergy Production Guideline Schedule B Feedstock Eligibility Guideline Schedule C1-5 Bioenergy Product Eligibility Page 1 of 12

2 Please note: the following guideline may be updated from time to time. All applicants must complete the Application Form and relevant Schedules Bioenergy Producer Program Guideline General Application Form Section on Form 1. Facility Owner(s) Corporate Registration 2. Name and Address of Facility Owner Representative Identify the legal name of the company that owns the facility applying under this program. Attachments are optional. Examples: certificate of incorporation, corporate registry search result, report showing inter-corporate relationships. Identify the senior official representing the facility owner who will sign the agreement. Joint owners may wish to sign jointly, but there should be only one set of contact information (mailing address, etc.) Alternatively, joint owners may submit a letter with the application authorizing one of the owners to sign the agreement on behalf of the others. 3. Name and Address of Designate A signed letter from the facility owner(s) is required only if the main contact for the purposes of producer credit invoicing and reporting is not a representative (employee or principal) of the facility owner company. 4. Facility or Project This information, along with the required copy of the land title and land survey plan, is necessary to confirm the definition and boundaries of a facility for the purposes of the grant agreement. 5. Facility Description and Outputs A brief description of the type of facility including products and approximate annual output. Example: A bleached kraft pulp mill with typical annual output of over 500,000 air-dried tonnes of pulp and a generating capacity of over 100 MW of electricity from black liquor. 6. Facility and Production Status 7. Bioenergy Products Applied for 8. Greenhouse Gas Emissions Offsets To determine the status of the facility. A brief summary is sufficient. You will provide more detail in the schedules. This is to determine if the facility has generated offsets through the Alberta Emission Offset System in the past. If the facility has received offsets, the protocol that was used as well as the years and tonnes claimed are also required. Energy inputs and emissions reductions/outputs are part of the program period reporting requirement. Furthermore, applicants should take note of the following Greenhouse Gas Emissions Reductions requirements to be confirmed in the BPP end of period reports: Liquid Biofuels: On an energy-equivalent life cycle basis, the Bioenergy Product demonstrates 25 per cent fewer emissions than the equivalent fossil fuel, consistent with the emission reductions required for renewable fuels supporting compliance with the Renewable Fuels Standard Regulation under the Climate Change and Emissions Management Act (Alberta). Gas Products: On a life cycle basis, compare emissions to natural gas used for domestic heating. Page 2 of 12

3 Section on Form Electricity: Compare emissions against the grid displacement factor published in the Technical Guidance for Offset Protocol Developers in support of the Specified Gas Emitters Regulation and Alberta s Climate Change and Emissions Management Act, as amended from time to time. Heat: On a life cycle basis, compare heat produced from biomass to using natural gas to produce heat for the same purpose. Biomass Pellets and Bio-carbon: On a life cycle basis, compare to emissions from natural gas used for domestic heating. 9. Previously held BPCP Grant Agreement or other grants This is to identify facilities with previous BPCP grant agreement(s) and/or received funding from other sources (e.g. CCEMC, Alberta Innovates, NextGen Biofuel Fund or EcoEnergy for biofuels), who wish to apply for grant funding for a bioenergy product. Such applicants are asked to provide information from their previous BPCP grant agreement(s). 10. Green Jobs This is to identify the number and types of jobs associated with the bioenergy product. Please only include jobs directly related to the bioenergy product. Schedules The application is comprised of this form and all schedules and attachments submitted by the applicant. Check off the schedules to confirm which schedules have been completed as part of this application. Signatures Submission The application may be rejected as incomplete if not signed by an appropriately authorized applicant and witnessed. is the required method of delivery. Only these submissions will be considered official applications. The time of receipt of submissions is based on when the submission is received by the Alberta Climate Change Office, not the time it was sent by the applicant. Page 3 of 12

4 Please note: the following guideline may be updated from time to time. All applicants must complete Schedule A Bioenergy Producer Program Guideline Schedule A Bioenergy Production Section on Form Facility or Project Name Date of Application Provide the Facility or Project Name that is entered on the Application Form question #4 (Facility or Project). Provide the date entered at the top of the Application Form. 1. Product(s) Applied for Check all bioenergy products being applied for under the applicable category. Attachments to support Question 1 are optional (e.g., to describe the product because the applicant is unsure of the appropriate category). Applicants may apply for more than one bioenergy product in the same category (e.g., 1 st generation ethanol and biodiesel ), and may apply for products under more than one category (e.g., biodiesel and electricity from combustion of biomass). Applicants must demonstrate eligibility of each product applied for by completing Schedule B for all products applied for and one of the C Schedules (C1 to C5). The form identifies which C Schedule is required for each bioenergy product, i.e: C1 Liquid Biofuels; C2 Gas Products; C3 Biomass Pellets and Bio-carbon; C4 Electricity; C5 Heat. Note that the program is intended to support commercial bioenergy production. This is confirmed by meeting eligibility requirements, subject to the Alberta Climate Change Office s discretion. Liquid Biofuels For biodiesel or other renewable diesel, provide the commonly used term for the product (e.g., FAME biodiesel, green diesel, pyrolysis oil). Methanol is accepted provided the applicant can provide an industry standard (CGSB or ASTM) for use as a fuel. Other renewable fuel alcohols may also be considered by the Alberta Climate Change Office on the same basis as methanol. Applicants may check more than one product under this category, if applicable. Syngas, Biogas, Green Natural Gas and Electricity or Heat If applying for a gas product that is not referred to as biogas or landfill gas, check off Other gas and provide the commonly accepted term. If producing biogas, landfill gas or other gas, the product must be sold to be eligible. If applying for a gas product used on site, then apply for the end product (e.g., electricity and/or heat). If applying for electricity, the electricity generating facility must have a nominal capacity of at least 150 kilowatts, be interconnect to the Alberta electric system and must not be an approved micro-generator under the Micro-Generation Regulation. Page 4 of 12

5 Section on Form Wood Pellets, Biomass Pellets and Bio-carbon Electricity and Heat from Combustion of Biomass 2. If Applying for More Than one Product Applicants may check more than one product under this category, if applicable. If applying for biomass pellets other than wood pellets, please check off Other biomass pellet and provide the appropriate term (e.g., straw pellets). If applying for electricity, the electricity generating facility must have a nominal capacity of at least 150 kilowatts, be interconnect to the Alberta electric system and must not be an approved micro-generator under the Micro-Generation Regulation. The purpose of this question is to confirm that two or more products applied for are not produced in succession from the same unit of biomass. If this question applies, the required response is an attachment that contains a description and process flow diagrams showing interactions between bioenergy feedstocks and production processes. Example 1: Electricity generated from combustion of liquid biofuels: If applying for a liquid biofuel as well as electricity generated by combustion of the same liquid biofuel, the portion of liquid biofuel used to generate electricity is not eligible to receive credits. Alternatively, the biofuel producer could apply only for all liquid biofuel production. Example 2: Electricity generated from biogas: An eligibility requirement specific to biogas is that it must be sold to qualify for credits. If the biogas is consumed on site, the heat or electricity end product may qualify for credits. Electricity generated from biogas acquired from another facility is not eligible to receive credits. The biogas producer may have qualified to receive credits. Example 3: Waste heat recovered from generating electricity: Waste heat recovered from electricity generation from biomass may qualify for credits in addition to the electricity. If waste heat is cycled back into generating electricity, then, for that portion of electricity generated from waste heat, only one product would potentially qualify for credits. Example 4: Wood pellets used to generate electricity: If applying for wood pellets under this category as well as electricity under biomass combustion using wood pellets, the portion of wood pellets used to generate electricity is not eligible to receive credits. Alternatively, the wood pellet producer could apply only for credits on all wood pellets. Electricity or heat produced from wood pellets acquired from another facility is not eligible to receive credits. The wood pellet producer may have qualified to receive credits. Example 5: Multiple products: If you are approved for heat and electricity, you will receive one grant per period for both products. You may submit invoices for both bioenergy products in any proportion to fully utilize the period grant, but are required to invoice for electricity first Page 5 of 12

6 Section on Form and heat second. The committed production will be considered as fulfilled once the period grant has been fully utilized. Similarly, if approved for two or more bioenergy products (i.e., electricity, gas and/or heat) you will have one period grant but may invoice for either or both products to fully utilize grant funds. 3. Bioenergy Product Identify the bioenergy product for which Questions 3, 4 and 5 are being completed. Unit of Measure Committed Production and Forecast Provide the appropriate unit of measure used for the production capacity (e.g., MW) and for program period production (e.g., MWh) forecasts in Question 3, the production obligation in Question 4 and past bioenergy production in Question 5. For example: use MW (megawatt) or kw (kilowatt) for electricity generating capacity; and MWh (megawatt hour) or kwh (kilowatt hour) for quarterly and program period production; use litres or millions of litres (M litres) for liquid biofuels; use tonnes (metric) for pellets and bio-carbon; use GJ/hr (Gigajoules per hour) for the capacity (capacity rate) and GJ (Gigajoules) for production of gas products and heat. If unsure of the system capacity rate provided by the heat system manufacturer, please comment at the end of the form. Program Period Committed Production State the quantity of bioenergy production that the applicant commits to produce during the first period of April 1, 2016 to March And the second period of April 1, 2017 to September 30, For applicants applying for electricity, include net usable electricity generated from biomass inputs only. Parasitic load (electricity inputs consumed directly in electricity generation) Other inputs for electricity generation, such as natural gas, solar energy or wind energy, must be deducted. Attachments showing method of calculation are required with Schedule C4. Please note the following when deciding on a committed production amount: If the period grant offered by the Alberta Climate Change Office is not sufficient to support the committed production applied for, then the approved committed production will be less than the quantity applied for. The committed production applied for by the applicant does not need to be the same every program period. If a producer fails to achieve 75 per cent of the committed production in a given program period, as set out in the grant agreement, the Alberta Climate Change Office may reduce the period grant in a subsequent period. If a producer fails to achieve 25 per cent of the committed production in a given program period, as set out in the grant agreement, the agreement may be terminated. Estimated Quantity to be Consumed on Site Per Program Period If any portion of the committed production will be consumed on site for any Page 6 of 12

7 Section on Form 4. Past Bioenergy Production 5. Bioenergy Consumed in Alberta Comments purpose (not necessarily related to bioenergy production), estimate the quantity of production to be consumed on site that you believe may qualify for credits. For biogas, syngas and other gas products, enter zero for on-site consumption. These products must be sold or delivered off site to qualify for credits. Past bioenergy production is required in order for a facility to be eligible for funding under the program. Use the unit of measure for production identified in Question 3. Information provided in response to Question 4 is used by the Alberta Climate Change Office to help confirm that: a facility has recently demonstrated production even though the application may show one or more quarters of no production in the first program period, and a producing facility is capable of achieving the level of committed production applied for. Only bioenergy that meets the program criteria and is consumed in Alberta will be eligible for funding. Facilities that export their products outside of Alberta will still be able to apply under the program, but will only be able to claim production that is consumed in the province. Examples of evidence to show that the product was consumed in Alberta are: receipts from end users located in Alberta, documentation from the Alberta Electric System Operator (AESO) or placed in the Alberta market under the Renewable Fuel Standard. If bioenergy produced was consumed in Alberta thus far during the first program period April 1, 2016 March 31, 2017, please provide proof of where product was consumed as well as the quantity. Please provide an estimate of where and how much bioenergy produced will be consumed in Alberta for the second program period April 1, 2017 September 30, Use this area to add any necessary comments (e.g., to explain fluctuations in committed production from one Program Period to the next). Page 7 of 12

8 Please note: the following guideline may be updated from time to time. All applicants must complete Schedule B Bioenergy Producer Program Guideline Schedule B Feedstock Eligibility Section on Form Facility or Project Name Provide the Facility or Project Name that is entered on the Application Form item #4 (Facility or Project). Date of Application Provide the date entered at the top of the Application Form. 1. Production Status Yes or no required. Information gathered is necessary to determine the production status. 2. Description of Feedstocks Attachments are acceptable if more space is needed to answer the questions. If you change to or add other feedstocks in the future which are not identified in this application, you must reconfirm bioenergy product eligibility with the Alberta Climate Change Office. Part C - Distance from facility can be measured in increments of: 10km, 20km, 25km, 50km, 75km, 100km, 150km, 200km, 250km, >250km. 3. Municipal Waste If municipal waste is identified as a feedstock, an attachment is required to describe in detail the processes and methodology that will be used to ensure the material contains at least 50 per cent biomass by mass on an annual average basis, in accordance with the Municipal Waste Guideline (Alberta Environment.) 4. Feedstock that is a Bioenergy Product 4a. 4b. Comments The purpose of this question is to confirm that: a. if bioenergy is produced using another bioenergy product that potentially qualifies for support under the BPP, the facility must produce both products; and b. the applicant is not applying for credits on bioenergy products produced in succession from the same unit of biomass. Only complete Question 4a if Yes was the answer provided in Question 4. For example, if a facility produces wood pellets and generates electricity from those wood pellets, the generated electricity may qualify for credits. In this example, if the wood pellets used to generate electricity were acquired from outside the facility, then the producer of electricity is considered a bioenergy consumer and does not qualify for support under the BPP. Only complete Question 4b if Yes was the answer provided in Question 4. The purpose of this question is to ensure that the applicant is not applying for credits on successive bioenergy products. For example, if a facility produces wood pellets and generates electricity from a portion of those wood pellets, they can apply for credits on either the electricity or the portion of wood pellets used in generating electricity, not both. The producer may also apply for credits on any portion of wood pellets not used to generate electricity at the facility. Use this area to provide any other necessary comments. Page 8 of 12

9 Bioenergy Producer Program Guideline Schedule C1-5 Bioenergy Product Eligibility Please note: the following guideline may be updated from time to time. All applicants must complete at least one of the C schedules If applying for more than one bioenergy product, complete the applicable C schedule for each product. Not all sections occur in every C schedule question and schedule numbers are referenced in the Section on Form column. The program is intended to support commercial bioenergy production. This is confirmed by meeting eligibility requirements, subject to the Alberta Climate Change Office s discretion where eligibility requirements do not fully address a particular facility or product. Section on Form Facility or Project Name Schedules C1-C5 Date of Application Schedules C1-C5 1. Production Status Schedules C1-C5 2. Production Technology Schedules C1-C5 Facility Interconnection Question 3 in Schedule C4 (Electricity) Generating Capacity Question 4 in Schedule C4 (Electricity) Cogeneration Waste Heat Standalone Heat Minimum Heat Output Single Family Dwelling Question 3a 3e in Schedule C5 (Heat) Provide the Facility or Project Name that is entered on the Application Form under Item 4 (Facility or Project). Provide the date that is entered at the top of the Application Form. Schedule C forms must be complete for producing facilities. If development of a facility is not sufficiently advanced to respond to some questions, completion of the applicable C schedule will be a condition of approval prior to qualifying to receive credits on bioenergy production. Name the manufacturer (e.g., Bioenergy Manufacturers Inc.) and the production process (e.g., Fatty Acid Methyl Esterification (FAME)). An attachment is optional to provide more detail on the production technology (e.g., product description published by the manufacturer). To be eligible under the BPP, electricity generation from biomass must be interconnected to the Alberta electric system and have a nominal capacity that is greater than one Megawatt. Applicants must provide proof of interconnection into Alberta s electric system, a link to a copy of the application, or a copy of the application for an interconnection, if available at the time of applying under the BPP. To be eligible under the BPP, in addition to interconnecting to the Alberta electric system, the system generating electricity from biomass must have a nominal capacity that is greater than one Megawatt. An attachment is optional to provide more information on the generating capacity and how it has been determined. These questions are to confirm the eligibility of the manner in which the heat is produced, and minimum output of 50,000 Gigajoules per year as an eligibility requirement. Attachments are required to describe and illustrate heat production from biomass through cogeneration or waste heat recovery. An attachment is optional to further describe and illustrate a standalone heat production system using biomass. Page 9 of 12

10 Section on Form Initial Measurement Question 3 in Schedules C1, C2 and C3 (Biofuels, Gas Products, Biomass Pellets/Bio-carbon) This information is requested to confirm whether the initial unit of measure is different from the unit of measure used to calculate credits. Question 4 in Schedule C5 (Heat) Conversion and Standardization Factors Question 4 in Schedules C1, C2 and C3 (Biofuels, Gas Products, Biomass Pellets/ Bio-carbon) Question 5 in Schedule C5 (Heat) Question 7 in Schedule C4 (Electricity) Point of Measurement Question 5 in Schedules C1, C2, C3 and C4 (Biofuels, Gas Products, Biomass Pellets/ Biocarbon, Electricity) Question 6 in Schedule C5 (Heat) Measuring Equipment Question 6 in Schedules C1, C2, C3 and C4 (Biofuels, Gas Products, Biomass Pellets/ Biocarbon, Electricity) Question 7 in Schedule C5 (Heat) Equipment Calibration Question 7 in Schedules C1, C2 and C3 (Biofuels, Gas Products, Biomass Pellets/ Biocarbon) Question 8 in Schedule C4 (Electricity) and C5 (Heat) This information is requested to confirm consistency of assumptions in measuring and converting units of measure. For Schedule C1, C2, C3, an attachment is acceptable if needed to elaborate on calculations and standard assumptions. For Schedule C4, an attachment is required to support calculation of net usable electricity generated from biomass. The attachment must be signed by a professional engineer. Deductions from electricity generated include (but are not limited to): electricity generated from natural gas and other non biomass-inputs; and/or parasitic load, or the quantity of electricity consumed to generate electricity from biomass. For Schedule C5, non biomass-inputs into heat production are to be deducted based on calculations and metering of other inputs. Also, calculations of heat require measurement of activity level (volume or mass flow) and heat enthalpy. Attachment(s) must be signed off by a professional engineer. For Schedules C1, C2 and C3, an attachment is optional to illustrate point of measurement in the facility s bioenergy production and distribution system. For Schedule C4 and C5, an attachment is required to illustrate the point of measurement in the facility s bioenergy production and distribution system The attachment must be signed off by a professional engineer. For the purposes of the BPP, the bioenergy product should be measured at the point of metering for or by purchaser or, if the bioenergy product is not sold, then at the point of input for final end use where there are no additional offtakes. An attachment is required to confirm the equipment. For Schedule C4, equipment used for measuring electricity generation must be acceptable to the Alberta Electric System Operator (AESO) and Measurement Canada. For Schedule C5, equipment used to measure heat must be manufactured by a third party in accordance with applicable North American or international technical standards for that equipment such as but not limited to the American National Standards Institute, ISO or the Instruments Society of America. Complete this information to confirm by whom and how often the measuring equipment is checked and calibrated. System checks may be performed by technical and operating staff. Calibration should be conducted by a qualified organization (e.g., Measurement Canada) or a professional engineer. An attachment is optional to explain processes for calibration and measurement system checks in more detail. If the application is approved, the Alberta Climate Change Office may require a change in current practice as a condition of approval. Page 10 of 12

11 Section on Form On a go forward basis, calibration by a third party is preferred. Attaching the last calibration certificate or an acceptable equivalent is optional, although it will be required with the first production invoice In the case of electricity meters, a receipt of letter confirming that last date that the meter was exchanged as required by Measurement Canada is an acceptable alternative to a calibration certificate. Inventory Question 8 in Schedules C1, C2 and C3 (Biofuels, Gas Products, Biomass Pellets/Bio-carbon) Product Consumption Question 9 in Schedules C1, C2, and C3 and Question 10 in Schedule C4 (Biofuels, Gas Products, Biomass Pellets/Bio-carbon and Electricity) Product Standards Question 10 in Schedules C1, C2 and C3 (Biofuels, Gas Products, Biomass Pellets/Bio-carbon) This question pertains to solid, liquid and gas bioenergy products to confirm timing of sale and distribution in relation to production. For credit invoicing purposes, the production date is considered to be the date sold, consumed or removed from the facility. This question pertains to where the bioenergy product is consumed. (a) If the bioenergy product was consumed in Alberta thus far in fiscal 2016/17, please provide the total quantity of the produced bioenergy that was consumed in Alberta. Evidence provided in Schedule A can be referred in this section. (b) In Canada and United States, please provide province or state. For outside these countries, please indicate the country only. Liquid biofuels, gas products and biomass pellets or bio-carbon must be produced in accordance with fuel quality standards acceptable to the Alberta Climate Change Office. For ethanol and renewable diesel, applicants must demonstrate 25 percent fewer emissions than the equivalent fossil fuel, consistent with the emission reductions required for renewable fuels supporting compliance with the Renewable Fuels Standard Regulation under the Climate Change and Emissions Management Act (Alberta). Standards for other liquid biofuels such as methanol and pyrolysis oil must be an ASTM or CGSB standard for that product as a fuel product. For example, methanol standards for use as windshield wash are not acceptable. Standards for gas products are typically the established standards for the fuel gas market, i.e., typically the natural gas market. The applicant may, however, identify customer specifications for use as a fuel product. Standards for biomass pellets and bio-carbon must be for a fuel product with a minimum high heating value of 16.5 Gigajoules per kilogram. The Alberta Climate Change Office will consider customer specifications for using the product as a fuel. However, specifications for other uses such as soil amendments are not accepted. Quality Testing Question 11 in Schedules C1, C2 and C3 (Biofuels, Gas Products, Biomass Pellets/Bio-carbon) Testing Service Question 12 in Schedules C1, C2 and C3 (Biofuels, Gas Products, Biomass Pellets/Bio-carbon) Sales and Consumption Question 9 in Schedule C4 Provide this information for the Alberta Climate Change Office s consideration and approval. If the application is approved, the Alberta Climate Change Office may require a change in current practice as a condition of approval. Provide this information for the Alberta Climate Change Office s consideration and approval. If the application is approved, the Alberta Climate Change Office may require a change in current practice as a condition of approval. This question confirms the point of sale, consumption or distribution of the electricity generated from biomass. Page 11 of 12

12 Section on Form (Electricity) and C5 (Heat) An attachment is acceptable to further explain where the generated electricity is used or sold, if necessary. Comments Use this area of the form to provide any other necessary comments. Page 12 of 12

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