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Tetra Tech Canada Inc.Riverbend Atrium One, 115, 200 Rivercrest Drive SE
Calgary, AB T2C 2X5 CANADA
Tel 403.203.3355 Fax 403.203.3301
PRESENTED TO
Verdant Energy Ltd.
Verification ReportDapp Power Electric Generation Facility(October 1, 2016 – December 31, 2016)
FEBRUARY 3, 2017
ISSUED FOR USE
FILE: ENV.CENV03197-01.002
VERIFICATION REPORT FOR 2016 Q4 VERDANT ENERGY
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PROJECT SUMMARY
Project Title Verdant Energy Ltd. – Dapp Power Electric Generation Facility
Project Description Verdant Energy Ltd. – Dapp Power Electric Generation Facility (the Project) involvesthe creation of offset credits due to the avoidance of methane emissions (CHR4R) thatwould have otherwise taken place from the anaerobic decomposition of wood wastein a landfill, and the generation of electricity from non-fossil fuel sources.
Project Location The Dapp Power Electric Generation Facility is located northwest of the Town ofWestlock, Alberta. The coordinates of the facility are latitude 54°24'54.28"N andlongitude 114°10'38.75"W.
The Bio-Fuel wood recycling depot is located at the Northland Sand and GravelLandfill in Edmonton, Alberta. The Bio-Fuel depot processes and supplies thewood waste to the Dapp Power Electric Generation Facility. The coordinates of thelandfill are latitude 53°32'46.98"N and longitude 113°43'6.46"W.
Project Start Date September 2005
Credit Start Date January 1, 2006
Credit Duration Period Initial Project credit duration period: January 1, 2006 – December 31, 2013
Credit extension period: January 1, 2014 – December 31, 2018
Expected Lifetime of
the ProjectThe Project is expected to last 20 years
Actual Emissions
Reductions /Removals
Achieved
25,257 tonnes COR2Re (October 1, 2016 – December 31, 2016).
Other Environmental
AttributesNone
Project Registration This Project is only registered once and in one offset system – the Alberta OffsetRegistry.
Ownership The Project is registered as Verdant Energy Ltd- Dapp Power Electric Generationfacility. Dapp Power LP is the owner and transacting party for the offset creditsgenerated by the Project.
Quantification Protocol Quantification Protocol for Energy Generation from the Combustion of BiomassWaste (Version 2.0, April 2014).
Verification Period This verification covers the period from October 1, 2016 – December 31, 2016.
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Project Title Verdant Energy Ltd. – Dapp Power Electric Generation Facility
Project Activity The Project involves the creation of offset credits due to the avoidance of CHR4R thatwould have otherwise taken place from the anaerobic decomposition of wood wastein a landfill, and the generation of electricity from non-fossil fuel sources.
The Project meets the requirements for offset eligibility as outlined in Section 3.1 ofthe Technical Guidance for Offset Project Developers (Version 4.0, February 2013).In particular:
1. The Project occurs in Alberta as outlined above.
2. The Project results from actions not otherwise required by law and beyondbusiness as usual and sector common practices.
3. The Project results from actions taken on or after January 1, 2002, as outlinedabove.
4. Emissions reductions occur after January 1, 2002.
5. The Project reductions/removals are real, demonstrable, quantifiable andverifiable. The emission reductions are demonstrable, quantifiable and verifiableas outlined in the Project Developer’s Project plan.
6. The Project has clearly established ownership. Dapp Power LP is the owner andtransacting party for the offset credits generated by the Project.
7. The Project will be counted once for compliance purposes: The Project creditswill be registered with the Alberta Emissions Offset Registry (AEOR) whichtracks the creation, sale and retirement of credits. Credits created from thespecified reduction activity have not been, and will not be, created, recorded orregistered in more than one trading registry for the same time period.
8. The Project is verified by a qualified third party, Tetra Tech Canada Inc.
Project Proponent Grant Noll
Vice-President, Operations and Business Development
Verdant Energy Ltd.
Suite 100 525-11th Avenue SW Calgary, Alberta T2R 0C9
Tel: 403.261.9754
Email: gnoll@verdantenergyltd.com
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PROJECT VERIFICATION SUMMARY
Project Title Verdant Energy Ltd. – Dapp Power Electric Generation Facility
Objective Reasonable assurance on Emission Reductions contained in the greenhouse gas(GHG) Assertion.
Summary Based on our review, it is our opinion to a reasonable level of assurance that theGHG emission reductions contained in the GHG assertion are materially correctand presented fairly in accordance with the related criteria.
Verifier Tetra Tech Canada Inc.
115, 200 Rivercrest Drive SE, Calgary, AB T2C 2X5
Tel: (403) 723-1565
Email: Min.Si@tetratech.com
Verification Team Kathleen Dunnett, P. Eng.
Nelson Lee, M.A.Sc., P.Eng.
Min Si, M.N.R.M, GHG-V
Nancy Wellhausen
Subject Matter Expert N/A
Independent Peer
ReviewerNancy Wellhausen
Designated Signing
AuthorityNelson Lee, M.A.S., P.Eng., GHG-V
Site Visits Date August 17, 2016
Report Date February 3, 2017
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TABLE OF CONTENTS
PROJECT SUMMARY ........................................................................................................................... I
PROJECT VERIFICATION SUMMARY ............................................................................................... III
1.0 INTRODUCTION.......................................................................................................................... 1
1.1 Objective ................................................................................................................................................1
1.2 Scope.....................................................................................................................................................1
1.3 Level of Assurance ................................................................................................................................2
1.4 Verification Criteria ................................................................................................................................3
1.5 Materiality...............................................................................................................................................3
2.0 METHODOLOGY......................................................................................................................... 4
2.1 Verification Strategy...............................................................................................................................4
2.2 Procedure ..............................................................................................................................................4
2.2.1 Verification Procedures.............................................................................................................4
2.2.2 Verification Steps and Site Visit................................................................................................6
2.2.3 Risk Assessment ......................................................................................................................6
2.2.4 Verification / Sampling Plan......................................................................................................8
2.3 Team......................................................................................................................................................8
2.4 Schedule ................................................................................................................................................8
3.0 RESULTS..................................................................................................................................... 9
3.1 Assessment of Internal Data Management and Controls......................................................................9
3.2 Assessment of GHG Data and Information .........................................................................................10
3.3 Assessment Against Criteria................................................................................................................14
3.4 Evaluation of GHG Assertion...............................................................................................................14
3.5 Summary of Findings...........................................................................................................................14
4.0 VERIFICATION STATEMENT.................................................................................................... 15
5.0 CONFIRMATIONS ..................................................................................................................... 15
6.0 LIMITATIONS OF LIABILITY..................................................................................................... 16
LIST OF TABLES IN TEXT
Table 1: Verification Scope .................................................................................................................... 2
Table 2: GHG Assertion......................................................................................................................... 2
Table 3: Verification Procedures ............................................................................................................ 5
Table 4: Rating Matrix for Inherent Risk and Control Risk...................................................................... 7
Table 5: Risk Assessment for Applicable Emission Sources.................................................................. 8
Table 6: Verification Team ..................................................................................................................... 8
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Table 7: Schedule of Verification Activities............................................................................................. 8
Table 8: Emission Sources Not Applicable to the Project....................................................................... 9
Table 9: Summary of Internal Controls................................................................................................. 10
Table 10: GHG Data and Supporting Information................................................................................. 11
Table 11: Eligibility Criteria Assessment .............................................................................................. 14
LIST OF FIGURES IN TEXT
Figure 1: Verification Steps.................................................................................................................... 6
APPENDIX SECTIONS
APPENDICES
Appendix A
Appendix B
Appendix C
Appendix D
Appendix E
Appendix F
Verification Plan
Statement of Qualification
Finding Log
Statement of Verification
Conflict of Interest Checklist
Tetra Tech’s General Conditions
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LIMITATIONS OF REPORT
This report and its contents are intended for the sole use of Verdant Energy Ltd. and their agents. Tetra Tech Canada Inc. (Tetra
Tech) does not accept any responsibility for the accuracy of any of the data, the analysis, or the recommendations contained or
referenced in the report when the report is used or relied upon by any Party other than Verdant Energy Ltd. or for any Project
other than the proposed development at the subject site. Any such unauthorized use of this report is at the sole risk of the user.
Use of this report is subject to the terms and conditions stated in Tetra Tech’s Services Agreement. Tetra Tech’s General
Conditions are provided in Appendix F of this report.
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1.0 INTRODUCTION
Tetra Tech Canada Inc. (Tetra Tech) was contracted by Verdant Energy Ltd. (Verdant), on behalf of Dapp Power LP
(Dapp), to conduct a verification for Verdant Energy Ltd. – Dapp Power Electric Generation Facility offset project
(the Project) for the period of October 1, 2016 – December 31, 2016. The verification was conducted in accordance
with the Quantification Protocol for Energy Generation from the Combustion of Biomass Waste (Version 2.0,
April 2014).
The Project involves the creation of offset credits arising from the avoidance of methane emissions (CHR4R) that would
have otherwise taken place from the anaerobic decomposition of wood waste in a landfill and the generation of
electricity from non-fossil fuel sources.
Summary of Offset Project Baseline
The baseline condition for this Project is:
The equivalent amount of electricity is produced by a conventional fossil fuel power plant; and
The CHR4R from decomposition of wood waste in the landfills is released to atmosphere.
Summary of Changes to Baseline or at the Project Condition
There are no changes or modifications to the project operations.
1.1 Objective
The objective of this audit is to provide an independent assessment of the offset project to identify any material and
immaterial errors, omission or misrepresentations, and to provide our opinion on the greenhouse gas (GHG)
Assertion in the Offset Project Report.
1.2 Scope
The scope of this Project level emission reduction verification includes the project boundaries, physical
infrastructure, activities, technologies, and processes of the project, GHG sources, sinks, and/or reservoirs (SSRs),
types of GHGs, and time periods covered. The scope of the verification is listed in Table 1.
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Table 1: Verification Scope
Item Verdant Energy Ltd. – Dapp Power Electric Generation Facility
Geography The Dapp Power Electric Generation Facility is located northwest of the Town of
Westlock, Alberta. The coordinates of the facility are latitude 54°24'54.28"N and
longitude 114°10'38.75"W.
The Bio-Fuel wood recycling depot is located at the Northland Sand and Gravel Landfill
in Edmonton, Alberta. The Bio-Fuel depot processes and supplies the wood waste to
the Dapp Power Electric Generation Facility. The coordinates of the landfill are latitude
53°32'46.98"N and longitude 113°43'6.46"W.
Organization The Project is registered and operated under the name of Dapp Power LP. The Project
is 100% own by Verdant Energy Ltd.
Activities and Processes Electricity generation from biomass combustion
SSRs Baseline: Emissions from collection, transfer and transport of biomass (B1), biomass
disposal (B15) and processing (B3), facility operations (B12), displaced off-site
electricity generation (B6), displace off-site heat generation (B16), displace on-site
electricity generation (B13), displaced on site heat generation (B18), and fuel extraction
and processing (B4).
Project: Emissions from collection, transfer and transport of biomass (P1), Biomass
processing (P3), facility operations (P12), and combustion of biomass (P15), and fuel
extraction and processing (P4)
GHG Carbon dioxide (COR2R), Methane (CHR4R), Nitrous oxide (NR2RO)
Time Period October 1, 2016 – December 31, 2016
*included sources as specified in the Protocol.
The GHG Assertion is provided in Table 2.
Table 2: GHG Assertion
Item GHG Assertion
Baseline Emissions (t COR2Re) 27,581
Project Emissions (t COR2Re) 2,324
Reductions (t COR2Re) 25,257
Period October 1, 2016 – December 31, 2016
1.3 Level of Assurance
The scope and level of effort of this verification is planned to achieve a reasonable level of assurance as required
by the Specified Gas Emitter Regulation (SGER).
The level of assurance is used to determine the depth of detail that a verifier designs into their verification plan to
determine if there are any material errors, omissions, or misrepresentations.
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Reasonable level of assurance is to evaluate whether the GHG assertion is deemed to be presented fairly and
substantiated by sufficient and appropriate evidence. As such, the verification is to provide positive, but not absolute
assurance regarding the GHG assertions
1.4 Verification Criteria
The verification assesses the Project against Alberta Offset program eligibility criteria, including:
Occur in Alberta;
Result from actions not otherwise required by laws and be beyond business as usual and sector common
practices;
Result from actions taken on or after January 1, 2002;
Occur on or after January, 2002;
Be real, demonstrable, quantifiable, and verifiable;
Have clearly established ownership; and
Be counted once for compliance purpose.
The verification assesses the Project against the following program criteria and relevant supporting documentation:
Alberta’s Climate Change and Emissions Management Act, S.A. 2003, c. C-16.7;
Alberta Specified Gas Emitters Regulation (SGER), 2007;
Alberta SGER, Technical Guidance Document for Offset Project Developers (Version 4.0, February 2013);
Alberta SGER, Technical Guidance for Greenhouse Gas Verification at Reasonable Level Assurance (Version
1.0, January 2013);
Quantification Protocol for Quantification Protocol for Energy Generation from the Combustion of Biomass
Waste (Version 2.0, April 2014);
Offset Project Plan for Verdant Energy Ltd. – Dapp Power Electric Generation Facility; and
Offset Project Report for Verdant Energy Ltd. – Dapp Power Electric Generation Facility.
1.5 Materiality
A 5% materiality threshold is set to assess errors, omissions, and misrepresentations in the GHG Assertion as
required by the SGER. Quantitative discrepancies are aggregated and assessed on the basis of net and absolute
values. Qualitative discrepancies are evaluated by professional judgement of the verification body, and determined
if the discrepancies could be deemed to be material.
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2.0 METHODOLOGY
The verification is performed in accordance with ISO 14064-3: Specification with Guidance for the Validation and
Verification of GHG assertions.
2.1 Verification Strategy
The approach used in this verification includes a combination of substantive procedures and test of controls.
Tetra Tech uses predominantly substantive procedures during the verification process, with a focus on source data
and evidence gathered during site visits and sampling procedures. Tetra Tech has developed the following steps
to substantiate the GHG assertion:
Conducted a site visit to confirm the boundary, physical sources and sinks within the Project boundary;
Observed, interviewed personnel, and verified various processes, instrumentation and data managementprocedures during the site visit;
Conducted sampling on primary documentation to confirm the processes resulting in the GHG assertions; and
Reviewed original data sources and calculations.
Controls reliance was used in supporting the substantive approach as described above.
Procedures used in this verification include inspection, observation, inquiry, confirmation, recalculation, and
analytics tests. The detailed verification procedures are provided in the following sections.
2.2 Procedure
2.2.1 Verification Procedures
Verification procedures for the key components are provided in Table 3.
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Table 3: Verification Procedures
Verification Component Procedures
Description of the nature, scale and
complexity of the verification activity
The verification is conducted for Verdant Energy Ltd. – Dapp Power Electric
Generation Facility offset project for the period of October 1, 2016 – December 31,
2016.
The Project involves the creation of offset credits because of the avoidance of
methane emissions (CHR4R) that would have otherwise taken place from the anaerobic
decomposition of wood waste in landfills and the generation of electricity from non-
fossil fuel sources.
The quantification for the offset project is conducted in accordance with the
Quantification Protocol for Energy Generation from the Combustion of Biomass
Waste (Version 2.0, April 2014).
As specified in the Protocol, the GHG sources include:
Baseline: Emissions from collection, transfer and transport of biomass (B1),
biomass disposal (B15) and processing (B3), facility operations (B12), displaced
offsite and on site electricity generation (B6 and B13), displaced offsite and
onsite heat generation (B16 and B18), and fuel extraction and processing (B4).
Project: Emissions from collection, transfer and transport of biomass (P1),
biomass processing (P3), facility operations (P12), combustion of biomass and
fossil fuel (P15) and fuel extraction and processing (P4).
Comparability with the baseline
Review the baseline calculations and supporting documents.
Review Project Plan and Report.
Interview facility operators.
Confidence and completeness of
the responsible party’s GHG
information and assertion
Conduct a site tour to determine GHG sources and compare with the Protocol
and calculation tool for completeness.
Check the quantification against the Protocol.
Interview personnel for completing GHG quantification.
Assessment of GHG information
system and its controls
Review data collection and transfer processes.
Interview personnel for internal control procedures.
Inquiry of data verification procedures for double entries.
Examine biomass records reconciliation.
Assessment of GHG data and
information
Compare sources and sinks inspected through site visit to the GHG identified in
the Project Report and calculator.
Review raw data, including metering data and third party records.
Review emission factors used.
Assessment against criteria Review and check against related criteria.
Conduct site visit for physical boundary.
Evaluation of the GHG assertion Recalculate GHG assertions.
Evaluate supporting documents.
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2.2.2 Verification Steps and Site Visit
The verification follows the steps outlined in the following diagram (Figure 1).
Figure 1: Verification Steps
2.2.2.1 Site Visit
Mr. Min Si visited the Bio-Fuel facility and Dapp Power Plant on August 17, 2016. The purpose of the site visit was
to gain understanding of the offset project’s operation, equipment, and control processes for assessment of the
Project’s conformance with the Criteria. During the site visit, the emission sources, various processes, data
acquisition and onsite records handling processes were observed. The control devices that were used to collect
and monitor activity data for emission calculations were also observed.
2.2.3 Risk Assessment
As part of the verification process, a risked-based verification and sampling plan was developed that outlines:
The amount and type of evidence necessary to achieve the agreed level of assurance;
Methodologies for determining representative samples; and
Risks of potential errors, omissions, or misrepresentation.
Tetra Tech’s verification team utilizes a Risk Assessment process to develop a compliant verification and sampling
plan. The risk assessment includes considerations associated with regulatory requirements, GHG program
requirements, industry/sector specific factors, and other non-technical risks.
Planning
•Gain understanding of technical operations and processes•Gain understanding of data management
Assessment
•Risk assessment and planning analytics•Contribution analysis and Materiality analysis•Verification plan and Sampling plan
Verification
•Conduct verification procedures•Conduct site visit•Discuss findings log
Report
•Senior review and independent peer review•Issued for Review verification report• Issued for Use report
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The risk assessment considers inherent risk, control risk and detection risk. Inherent risk is the Responsible Party’s
risk of material error, omission, or discrepancy due to the complexity of the facility or lack of capacity by staff at the
facility. Control risk is the risk that the Responsible Party’s control system will not detect and rectify a material error,
omission or discrepancy. Detection risk is the risk that the Tetra Tech verification team will not identify a material
discrepancy.
The inherent risk and control risk are rated by likelihood multiplied by consequence in accordance with the matrix
provided in Table 4.
Table 4: Rating Matrix for Inherent Risk and Control Risk
Score Likelihood Consequence Rating
5 possibility of misstatement >99% misstated GHG assertion (threshold) >or =5% Very High
4 66% < possibility of misstatement <99% 3% <misstated GHG assertion <5% High
3 33% < possibility of misstatement <66% <2% misstated GHG assertion <3% Medium
2 1% < possibility of misstatement <33% 1% < misstated GHG assertion <2% Low
1 possibility of misstatement <1% misstated GHG assertion<1% Very Low
Inherent risk is determined to be low based on the following:
Activity data for energy consumption is provided by third-party invoices;
Quantity of electricity produced at the facility is monitored and measured by an independent third party; and
The Project has successfully passed all previous verifications.
Control risk is determined to be low – medium based on the following:
Data used for emission reduction quantification consists of manually recorded data, metered data capture,
third-party invoiced data, and manual entry into the offset quantification tool; and
Verdant and Dapp completes an internal senior review in order to check both calculations and reports for
transcription errors and omissions, correctly functioning links and formulas as part of their QA/QC (low risk).
Detection risk is the risk that Tetra Tech’s procedures do not detect a misstatement in the GHG Assertion.
The overall verification risk must be low to achieve a reasonable level of assurance. As specified in the Verification
Technical Guidance, the Tetra Tech’s detection risk procedures shall be designed to achieve an overall low
verification risk.
The risk assessment for the applicable emission sources is provided in Table 5.
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Table 5: Risk Assessment for Applicable Emission Sources
Source Category/Line Item Inherent Risk Control Risk
B6 – Offsite Electricity Generation Displaced in Project Low Low
B15 – Disposal of Biomass High Medium
P1 – Collection Transfer and Transport of Biomass Low Low
P3 – Processing of Biomass Medium Low
P4 – Extraction and Processing of Fuels Low Low
P12 – Facility Operation Low Low
P15 – Combustion of Biomass and Fossil Fuels Medium Low
2.2.4 Verification / Sampling Plan
Convenience sampling methods are used for the verification. The sample plan is developed based on the risk
assessment to achieve an overall low detection risk. The sample size is based on the Guidance Document for GHG
verification sampling by European Commission with verifier’s professional judgement. The sample size varies based
on the number of evidence records. The type and amount of evidence reviewed for each emission source is provided
in the Final (Issued for Use) Verification Plan (Appendix A).
2.3 Team
The verification team is included in Table 6 and the Statement of Qualification is provided in Appendix B.
Table 6: Verification Team
Name Role
Kathleen Dunnett, P.Eng. Verifier
Nelson Lee, M.A.Sc., P.Eng., GHG-V Designated Signing Authority
Min Si, M.N.R.M., GHG-V Lead Verifier
Nancy Wellhausen Independent Peer Reviewer
2.4 Schedule
The schedule for the verification is presented in Table 7.
Table 7: Schedule of Verification Activities
Task Date
Project Engagement July 16, 2016
Site Visit August 17, 2016
Submit “Issued for Review” Report February 2, 2017
Submit “Issued for Use” Report February 3, 2017
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3.0 RESULTS
The included GHG emissions identified in the Protocol were observed, assessed, and evaluated. It was determined
that the following emissions are not applicable to the Project (Table 8).
Table 8: Emission Sources Not Applicable to the Project
Emission Source Rationale for Exclusion
Collection, Transfer and Transport of Biomass (B1) Biomass residues from forestry industrial were incinerated.Dapp does not claim this credit.
Processing of Biomass (B3) Biomass residues were not further processed in the baselinecondition.
Biomass Disposal (B15) Dapp only claims Waste Diverted from Disposal in Landfill,biomass waste disposed by incineration was not used to claimcredits.
Displace off-site heat generation (B16) No off-site heat is displaced.
Displace on-site electricity generation (B13) No on-site electricity is displaced.
Displaced on site heat generation (B18) No on-site heat is displaced.
3.1 Assessment of Internal Data Management and Controls
The Project consumes electricity, diesel, gasoline, propane and natural gas. The energy data is collected through
third-party invoices, and manually entered into an Excel spreadsheet by Dapp’s accounting. The invoices are
collected monthly.
Electricity generated is metered on site, and maintained by third-party. Hourly data is recorded and downloaded
into spreadsheet.
Biomass quantity is measured by an internal scale. Truck drivers record the net quantity of biomass delivered, and
give a hard copy to Dapp’s accountant, then the accountant manually enters into an Excel Spreadsheet.
The spreadsheet from Dapp’s accountant is transferred to Verdant, and Verdant prepared the GHG quantification.
The data used to calculate the GHG assertion of emission reduction credits includes metered, invoiced, and
referenced data. The GHG data management system and its controls are assessed through a combination of verifier
site visit activities, interviews with staff involved in the data flow and review of the data itself. These activities verify
the data flow process and information management system.
A summary of Dapp’s control is provided in Table 9.
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Table 9: Summary of Internal Controls
Reporting Element Data Source Controls
Wood waste Truck weigh scale tickets
Moisture measurement
Scale checks for normal operation, calibration.
Reasonableness check by accountant.
Wood waste inventory is measured by third-party
survey company twice a year.
Electricity generated Hourly data
TransAlta Invoice
Electricity meters monitored and maintained by third
party specializing in energy meters. Service also
includes polling and retrieval of the meter data,
identification of anomalies, notification of any
irregularity with the meter or data and data storage.
Calculation spreadsheet prepared and reviewed by
the financial accountant.
Electricity buyer (TransAlta)’s bill is crosschecked
Meter is calibrated at a frequency prescribed by
Measurement Canada.
Electricity, natural gas, diesel,
gasoline, and propone
Invoices Reviewed by Dapp’s accountant.
Reviewed by Verdant.
GHG Calculator Custom Excel based
calculator
Quantification completed by Verdant with review by
senior personnel at Verdant.
Offset report – Reviewed by Verdant.
The internal data management and controls are assessed based on the review of the Offset Project Plan,
observations during the site visits, and interviews with key project personnel. The internal data management and
controls for the offset project are deemed to be adequate.
3.2 Assessment of GHG Data and Information
The GHG data and information provided to support the GHG assertion is deemed to be sufficient.
The information to support activity data is provided in Table 10. The emission factors used are taken from Alberta
Environment and Parks’ (AEP’s) Emission Factors Handbook 2015 and Canada’s National Inventory Report (2014)
for biomass.
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Table 10: GHG Data and Supporting Information
Applicable Emission Sources GHG Data and Information Results
B6 – Offsite Electricity
Generation Displaced in Project
Metering data and electricity buyer
(TransAlta)’s bill
Third-party invoices were reviewed, the data and supporting information are
deemed to be sufficient and appropriate. No issues found.
B15 – Disposal of Biomass
(Waste Diverted from Disposal
in Landfill or Stockpile)
Flexibility mechanism (1) and (2) are used for
Waste diverted from disposal in the Northland
landfill and Edmonton Waste Management
Center (Cloverbar)
Waste Quantities are recorded by truck tickets
AEP methodology in the Handbook of Emissions Factors is used to estimate CHR4R
emitted.
40 years is used for the period of waste diversion.
Fraction of Degradable Organic Carbon (DOC) is calculated based on the
Handbook.
Third-party waste characterization study is used to estimate the wood waste
content in the waste deposited to the landfill.
A third-party survey was also conducted for the waste delivered from Biofuel
depot at the end of September to adjust the remaining unused biomass. The
Northland and Edmonton Waste Management Center diverted waste are stored
at Pile 3 at the Dapp Power site in the period of October 1, 2016 – December 31,
2016.
Truck tickets for waste quantity and methodology reviewed by Tetra Tech.
Supporting information for the eligibility of landfill waste diversion is reviewed by
Tetra Tech.
The data and information are deemed to be sufficient and appropriate.
P1 – Collection Transfer and
Transport of Biomass
Diesel Invoices The biomass is collected by Dapp power owned diesel trucks and third party
owned diesel trucks. The diesel usage for Dapp owned trucks is tracked by
invoices. The diesel usage for the third-party usage is tracked by truck tickets.
Third-party invoices and truck tickets were reviewed, the data and supporting
information are deemed to be sufficient and appropriate. No issues found.
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Applicable Emission Sources GHG Data and Information Results
P3 – Processing of Biomass Biofuel facility processes majority of the
biomass for Dapp power generation facility,
the fuel consumed at the Biofuel facility
includes diesel, electricity, gasoline, and
propane. The fuel consumed at the Biofuel is
recorded by fuel suppliers’ invoices.
The fuel usage at third-party biomass
processing facility is estimated based on the
quantity of biomass received. The processing
equipment at the third-party facility is similar
to the equipment at the Biofuel facility.
Invoices for Biofuel energy consumption were reviewed. It was noted that the
third party invoices are not on a calendar month basis. For example, the invoices
for Biofuel electricity usage cover from September 20 – December 19, which
shifts electricity data by 11 days. The impact of this shift is estimated to be
immaterial by Tetra Tech. See appendix C for details.
The estimate for the fuel usage at the third-party biomass processing facility is
deemed to be appropriate.
P4 – Extraction and Processing
of Fuels
Natural gas, diesel, and gasoline invoices Only fuel usage at the Dapp Power site is included in this source. In the Protocol,
Page 28, this emission source only refers to the onsite component of the Project.
Since the Biofuel facility is processing biomass off site, the fuel usage at the
Biofuel facility is not included.
Based on the description provided in the Protocol, it is Tetra Tech’s opinion that
excluding fuel usage at the Biofuel facility is deemed to be appropriate.
P12 – Facility Operation Electricity natural gas, diesel, propane, and
gasoline invoices
Fuel consumption at the Biofuel facility and Dapp Power facility is included in this
sources. Invoices were reviewed. It was noted that the invoice data is not on a
calendar month basis. The invoices for October – December 2016 cover
September 28 to December 22, 2016. The impact is deemed to be immaterial.
See Appendix C for details.
P15 – Combustion of Biomass
and Fossil Fuels
Flexibility mechanism (5) is used for the
biomass combustion
3 P
rdP party survey to adjust the closing biomass
inventory.
Natural gas is used at the Dapp Power facility for building heating and boiler
starts. The steam flow is continuously monitored, and moisture content for the
biomass waste is tested on a daily basis. The calculated steam energy does not
consider the energy from natural gas by Verdant Energy as natural gas is only
used for boiler starts and not the firing of the boiler.
The Environment Canada National Inventory Report (EC, NIR 2014) is the source
of the biomass combustion emission factors in kg CHR4R and NR2RO/ kg of biomass
combusted for biomass with HHV 10.47 MJ/kg at 50% moisture content.
Dapp Power does not have historical steam temperature and pressure data. The
set point for the steam supply is 1,250 psi and 950 F.
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Applicable Emission Sources GHG Data and Information Results
The methodology in the Protocol Flexibility mechanism (5) is not followed by
Dapp Power because there is no steam temperature and pressure data, so steam
energy can’t be calculated. Operating knowledge and engineering estimates are
used to estimate the steam energy, then used to calculate the biomass quantities
combusted in tonnes. The biomass consumption for December, 2016 is adjusted
by a third-party survey to estimate remaining biomass on site.
A sensitivity test was conducted by Tetra Tech using steam set point temperature
and pressure to estimate energy enthalpy. The P15 emissions are 793 tonnes
COR2Re using Tetra Tech’s method. The P15 emissions reported by Dapp Power is
729 tonnes COR2Re. The discrepancy is 0.3% of the net reduction.
It is Tetra Tech’s opinion that using the third-party survey to adjust biomass
inventory is an acceptable method to estimate actual biomass combusted. The
method used by Dapp Power is deemed to be appropriate.
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3.3 Assessment Against Criteria
The results of assessment against program eligibility criteria is provided in Table 11.
Table 11: Eligibility Criteria Assessment
Offset Eligibility Criteria Assessment of Eligibility Criteria
Occurs in Alberta Site visit confirmed the Project’s physical location.
Results from actions not required by LawCombustion of biomass waste is not required by law for
energy generation.
Results from actions taken on or after January 1, 2002 and
occur on or after January 1, 2002Project started commercial operations January 1, 2006.
Real and demonstrable Site visit confirmed the existence of the Project.
Quantifiable and measurableActivity data is measured and emissions are quantified
using the approved protocol.
Have clearly established ownership Dapp Power LP owns and transacts the Offsets.
Counted once for compliance purposesThe offset credits will be serialized on the CSA Carbon
Registry.
Implemented according to a government approved protocol
(for offset projects)Approved Protocol is used.
Verified by a qualified person meeting the requirements
under Section 18 of SGER.Verifier meets the requirement under Section 18 of SGER.
Registered on the Alberta Emission Offset RegistryProject registered under CSA Carbon Registry –
Alberta Emission Offset Registry.
3.4 Evaluation of GHG Assertion
The verification opinion is that the GHG Assertion meets the requirements of the Specified Gas Emitters Regulation.The GHG data and supporting documents are deemed to be sufficient and appropriate. The GHG assertion iscalculated in accordance with the approved quantification protocol.
It is our opinion that 25,257 t COR2Re of the emission reductions meet the materiality requirements and the reasonablelevel assurance.
3.5 Summary of Findings
A detailed findings log is provided in Appendix C. There are no unresolved material discrepancies.
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4.0 VERIFICATION STATEMENT
Based on our review, it is our opinion that the Emission Reductions of 25,257 t COR2Re contained in the GHG Assertion
generated from the Verdant Energy Ltd. – Dapp Power Electric Generation Facility offset project in the period of
October 1, 2016 – December 31, 2016 are materially correct and presented fairly in accordance with the relevant
criteria.
The Statement of Verification is provided in Appendix D.
5.0 CONFIRMATIONS
As required by AEP, the verifier has confirmed the following information:
Consistency of offset project information across offset project documentation;
Offset project location;
Methodology document/Project Report exists;
Offset project contact and the amount of GHG emission reductions; and
Completeness and accuracy of process and data flow diagram.
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APPENDIX A
VERIFICATION PLAN
Tetra Tech Canada Inc.Riverbend Atrium One, 115, 200 Rivercrest Drive SE
Calgary, AB T2C 2X5 CANADA
Tel 403.203.3355 Fax 403.203.3301
February 3, 2017 ISSUED FOR USEFILE: ENV.CENV03197.002
Verdant Energy Ltd. Via Email: gnoll@verdantenergyltd.com199,525 -11 Avenue SWCalgary, AB T2R 0C9
Attention: Mr. Grant NollVice Present, Operation
Subject: Verification PlanVerdant Energy Ltd. – Dapp Power Electric Generation Facility Offset ProjectOctober 1, 2016 – December 31, 2016
1.0 INTRODUCTION
Tetra Tech Canada Inc. (Tetra Tech) was contracted by Verdant Energy Ltd. (Verdant), on behalf of Dapp Power LP
(Dapp), to conduct a verification for Verdant Energy Ltd. – Dapp Power Electric Generation Facility offset project
(the Project) for the period of October 1, 2016 – December 31, 2016.
Dapp transacts the Emission Reduction Credits (ERCs) on behalf of Bio-Fuels Inc. (a subsidiary of Dapp) and
Verdant Energy Ltd. (its parent company). The Project Proponent and Project Developer is Dapp.
1.1 Objective
The objective of this audit is to provide an independent assessment of the offset project to identify any material and
immaterial errors, omission or misrepresentations and to provide our opinion on the greenhouse gas (GHG)
Assertion in the Offset Project Report.
1.2 Assurance
The scope and level of effort of this verification is planned to achieve a reasonable level of assurance as required
by the Specified Gas Emitter Regulation (SGER).
The level of assurance is used to determine the depth of detail that a verifier designs into their verification plan to
determine if there are any material errors, omissions, or misrepresentations.
Reasonable level of assurance is to evaluate whether the GHG assertion is deemed to be presented fairly and
substantiated by sufficient and appropriate evidence. As such, the verification is to provide positive, but not absolute
assurance regarding the GHG assertions
1.3 Scope
The scope of this project level emission reduction verification includes the project boundaries, physical
infrastructure, activities, technologies, and processes of the project, GHG sources, sinks, and/or reservoirs (SSRs),
types of GHGs, and time periods covered. The scope of the verification is listed in Table 1.
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Table 1: Verification Scope
Item Verdant Energy Ltd. – Dapp Power Electric Generation Facility
Geography The Dapp Power Electric Generation Facility is located northwest of the Town of
Westlock, Alberta. The coordinates of the facility are latitude 54°24'54.28"N and longitude
114°10'38.75"W.
The Bio-Fuels wood recycling depot is located at the Northland Sand and Gravel Landfill
in Edmonton, Alberta. The coordinates of the landfill are latitude 53°32'46.98"N and
longitude 113°43'6.46"W.
Organization The project is registered and operated under the name of Dapp Power LP. Dapp Power
LP owns and transacts the Offsets.
Activities and Processes Electricity generation from biomass combustion
SSRs Baseline: Emissions from collection, transfer and transport of biomass (B1), biomass
disposal (B15) and processing (B3), facility operations (B12), displaced off-site electricity
generation (B6), displace off-site heat generation (B16), displace on-site electricity
generation (B13), displaced on site heat generation (B18), and fuel extraction and
processing (B4).
Project: Emissions from collection, transfer and transport of biomass (P1) Biomass
processing (P3), facility operations (P12), and combustion of biomass (P15), and fuel
extraction and processing (P4).
GHG Carbon dioxide (CO2), Methane (CH4), Nitrous oxide (N2O)
GHG Assertion Baseline Emissions: 27,581 t CO2e
Project Emissions: 2,324 t CO2e
Net Reduction: 25,257 t CO2e
Time Period October 1, 2016 – December 31, 2016
1.4 Verification Standards
The verification is performed according to ISO 14064-3: Specification with Guidance for the Validation andVerification of GHG Assertions.
1.5 Verification Criteria
The verification assesses the Project against Alberta Offset program eligibility criteria, including:
Occur in Alberta;
Result from actions not otherwise required by laws and be beyond business as usual and sector commonpractices;
Result from actions taken on or after January 1, 2002;
Occur on or after January, 2002;
Be real, demonstrable, quantifiable, and verifiable;
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Have clearly established ownership; and
Be counted once for compliance purpose.
The verification assesses the Project against the following program criteria and relevant supporting documentation:
Alberta’s Climate Change and Emissions Management Act, S.A. 2003, c. C-16.7;
Alberta Specified Gas Emitters Regulation, 2007;
Alberta SGER, Technical Guidance Document for Offset Project Developers (Version 4.0, February 2013);
Alberta SGER, Technical Guidance for Greenhouse Gas Verification at Reasonable Level Assurance (Version
1.0, January 2013);
Quantification Protocol for Quantification Protocol for Energy Generation from the Combustion of Biomass
Waste (Version 2.0, April 2014);
Offset Project Plan for Verdant Energy Ltd. – Dapp Power Electric Generation Facility; and
Offset Project Report for Verdant Energy Ltd. – Dapp Power Electric Generation Facility.
1.6 Materiality
A 5% materiality threshold is set to assess errors, omissions, and misrepresentations in the GHG assertion as
required by the SGER. Quantitative discrepancies are aggregated and assessed on the basis of net and absolute
values. Qualitative discrepancies are evaluated by professional judgement of the verification body, and determined
if the discrepancies could be deemed to be material errors.
2.0 DATA MANAGEMENT AND CONTROLS
The project consumes electricity, diesel, gasoline, propane and natural gas. The energy data is collected through
third party invoices, and manually entered into Excel spreadsheet by Dapp’s accounting. The invoices are collected
monthly.
Electricity generated is metered on site, and maintained by third party. Hourly data is recorded and downloaded
into spreadsheet.
Biomass quantity is measured by an internal scale. Truck drivers record the net quantity of biomass delivered, and
give a hard copy to Dapp’s accountant, then the accountant manually entered into Excel Spreadsheet.
The spreadsheet from Dapp’s accountant is transferred to Verdant, and Verdant conducted the GHG quantification
The data used to calculate the GHG assertion of emission reduction credits include metered, invoiced, and
referenced data. The GHG data management system and its controls are assessed through a combination of verifier
site visit activities, interviews with staff involved in the data flow and review of the data itself. These activities verify
the data flow process and information management system.
A summary of Dapp’s control is provided in Table 2.
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Table 2: Summary of Internal Controls
Reporting Element Data Source Controls
Wood waste Truck weigh scale tickets
Moisture measurement
Scale checks for normal operation, calibration.
Reasonableness check by accountant.
Wood inventory is measured by third party survey
company twice a year.
Electricity generated Hourly data
TransAlta Invoice
Electricity meters monitored and maintained by third
party specializing in energy meters. Service also
includes polling and retrieval of the meter data,
identification of anomalies, notification of any
irregularity with the meter or data and data storage.
Calculation spreadsheet prepared and reviewed by
the financial accountant.
Electricity buyer (TransAlta)’s bill is crosschecked
Meter is calibrated every two years.
Electricity, natural gas,
diesel, gasoline, and
propone
Invoices Reviewed by accountant.
GHG Calculator Custom Excel based
calculator
Quantification completed by Verdant with review by
senior personnel at Verdant.
Offset report – Reviewed by Verdant.
3.0 TEAM
The verification team is presented in Table 3.
Table 3: Verification Team
Name Role
Kathleen Dunnett, P.Eng. Verifier
Nelson Lee, M.A.Sc., P.Eng., GHG-V Designated Signing Authority
Min Si, M.N.R.M., GHG-V Lead Verifier
Nancy Wellhausen Independent Peer Reviewer
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4.0 SCHEDULE
The schedule for the verification is presented in Table 4.
Table 4: Schedule of Verification Activities
Task Date
Project Engagement July 16, 2016
Site Visit August 17, 2016
Submit “Issued for Review” Report February 2, 2017
Submit “Issued for Use” Report February 3, 2017
5.0 RISK ASSESSMENT
A summary of risk assessment for the applicable emission source categories/line item is provided in Table 5.
Table 5: Risk Assessment for Source Category/Line Item
Source Category/Line Item Inherent Risk Control Risk
B6 – Offsite Electricity Generation Displaced in Project Low Low
B15 – Disposal of Biomass High Medium
P1 – Collection Transfer and Transport of Biomass Low Low
P3 – Processing of Biomass Medium Low
P4 – Extraction and Processing of Fuels Low Low
P12 – Facility Operation Low Low
P15 – Combustion of Biomass and Fossil Fuels Medium Low
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6.0 SAMPLING PLAN
The type and amount of evidence reviewed during the verification are summarized in Table 6.
Table 6. Type of Evidence
Reporting Element Type of Evidence Amount of Evidence Reviewed
Dapp Electricity Generated Invoices 3 months
Dapp Electricity Purchased Invoices 3 months
Biofuels Electricity Purchased Invoices 3 months
Dapp Wood Consumed Daily and Month Reports 3 months
Northland/Biofuel wood waste quantity Daily and Month Reports 3 months
Dapp Steam Instrumentation 3 months
Dapp Moisture Lab test results 3 months
Dapp Natural Gas Invoices 3 months
Dapp Gasoline Invoices 3 months
Biofuels Gasoline Invoices 3 months
Biofuels Propane Invoices 3 months
Dapp Site Diesel Invoices 3 months
Biofuels Diesel Invoices 3 months
Dapp Truck Diesel Invoices 3 months
Third Party Transport Diesel Invoices 3 months
Third Party Supplier Diesel Invoices 3 months
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7.0 CLOSURE
We trust this report meets your present requirements. If you have any questions or comments, please contact Min Si
(403.723.1565, Min.Si@tetratech.com).
Issued in Calgary, AB, February 3, 2017.
Respectfully submitted,
Tetra Tech Canada Inc.
Prepared by: Reviewed by:
Min Si, M.N.R.M., GHG-V Nelson Lee, M.A.Sc., P.Eng., GHG-V
Lead Verifier Designated Signing Authority
VERIFICATION REPORT FOR 2016 Q4 VERDANT ENERGY
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APPENDIX B
STATEMENT OF QUALIFICATION
Tetra Tech Canada Inc.Riverbend Atrium One, 115, 200 Rivercrest Drive SE
Calgary, AB T2C 2X5 CANADA
Tel 403.203.3355 Fax 403.203.3301
February 3, 2017 ISSUED FOR USEFILE: ENV.CENV03197-01.002
Verdant Energy Ltd. Via Email: gnoll@verdantenergyltd.com199,525 -11 Avenue SWCalgary, AB T2R 0C9
Attention: Grant NollVice Present, Operation
Subject: Statement of QualificationVerdant Energy Ltd. – Dapp Power Electric Generation Facility Offset ProjectOctober 1, 2016 – December 31, 2016
1.0 INTRODUCTION
Tetra Tech Canada Inc. (Tetra Tech) was contracted by Verdant Energy Ltd. (Verdant), on behalf of Dapp Power LP
(Dapp), to conduct a verification for Verdant Energy Ltd. – Dapp Power Electric Generation Facility offset project
(the Project) for the period of October 1, 2016 – December 31, 2016. Dapp Power L.P. transacts the Emission
Reduction Credits (ERCs) on behalf of Bio-Fuels Inc. (a subsidiary of Dapp Power L.P.) and Verdant Energy Ltd.
(its parent company). The Project Proponent and Project Developer is Dapp Power L.P.
Table 1 lists the verification team members and their roles.
Table 1: Verification Team
Name Role
Kathleen Dunnett, P.Eng. Verifier
Nelson Lee, M.A.Sc.,P.Eng., GHG-V Designated Signing Authority
Min Si, M.N.R.M., GHG-V Lead Verifier
Nancy Wellhausen Independent Peer Reviewer
Mr. Nelson Lee is a professional engineer registered by the Association of Professional Engineers and
Geoscientists of Alberta. Mr. Lee is the Designated Signing Authority for the report and satisfies the requirements
of Section 18 (1)(ii)(A) of the Specified Gas Emitter Regulation (SGER). Each team member has the required
technical knowledge of greenhouse gas (GHG) emission quantification methodologies and has experience in
completing third-party GHG verifications. The team members satisfy the requirement of technical knowledge under
Section 18(b)(i-iii) under the SGER.
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2.0 VERIFICATION TEAM QUALIFICATIONS
The verification team meets the requirements under SGER and contains the required knowledge of GHG emission
quantification methodologies. They have experience in completing third party reviews and audits related to emission
inventories, including verifications in Alberta. The verification member received training under ISO 14064 Part 3
from CSA group.
Ms. Kathleen Dunnett, P.Eng., was a Verifier for this verification.
Ms. Dunnett is a Professional Engineer in the Province of Alberta with a degree in Chemical and Petroleum
Engineering. She is an Environmental Manager and Auditor with over 20 years of regulatory compliance and
environmental management systems experience. Ms. Dunnett has been a verifier for nine GHG projects in Alberta
in the forest products, agricultural, pulp & paper, and oil & gas sectors.
Mr. Nelson Lee, M.A.Sc., P.Eng., GHG-V, was the Designated Signing Authority for this verification.
Mr. Lee has a B.Sc. in Chemical Engineering from the University of Alberta, and a M.A.Sc. in Environmental
Engineering from the University of British Columbia. He has over eight years of experience with Alberta’s SGER
system, and has completed over 100 GHG verifications in Alberta and British Columbia. Mr. Lee completed ISO
14064 – 3 training, and is a CSA certified GHG verifier, and a California Air Resources Board (ARB) registered
offset project Lead Verifier.
Mr. Lee is a member of the CSA Technical Committee on Climate Change which is also a harmonized mirror
committee that represents Canada’s interest in the development of international standards through the ISO
Technical Committee 207 / Subcommittee 7 on GHG Management and Related Activities. This harmonized
committee represents Canada’s interest in the development of international standards through the ISO (TC 207 /
Subcommittee 7: Greenhouse gas management and related activities). The committee also develops new
standards and adopts existing international standards at the Canadian national level.
Mr. Min Si, M.N.R.M., GHG-V, was the Lead Verifier for this verification.
Mr. Si is an Environmental Scientist with Tetra Tech in Calgary. He has worked on GHG verification and
quantification projects for a wide range of sectors, including oil and gas, pulp and paper, agriculture, manufacturing,
etc. His emission experience includes GHG life cycle assessment, GHG quantification and verification for carbon
offset projects, compliance report verification, National Pollution Registry Inventory (NPRI) and corporate
GHG reporting. Mr. Si has completed ISO 14064 Part 3 training.
Ms. Nancy Wellhausen, was the Peer Reviewer for this verification.
Ms. Wellhausen is a senior GHG Lead Verifier and air quality and inventory specialist with over 20 years of
experience. She has served in the role of Independent Peer Reviewer for over 30 GHG report verifications in
British Columbia and Alberta. She is registered with the California Air Resources Board as a GHG Lead Verifier.
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3.0 CLOSURE
If there are any questions or clarifications regarding the team’s qualifications or roles, please contact Min Si
(403.723.1565, Min.Si@tetratech.com).
Respectfully submitted,
Tetra Tech Canada Inc.
Prepared by: Reviewed by:
Min Si, M.N.R.M., GHG-V Nelson Lee, M.A.Sc., P.Eng., GHG-V
Lead Verifier Designated Signing Authority
VERIFICATION REPORT FOR 2016 Q4 VERDANT ENERGY
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APPENDIX C
FINDING LOG
2016 Q4 VERDANT ENERGY FILE: ENV.CENV03197-01.002 | FEBRUARY 3, 2017 | ISSUED FOR USE
Findings Log
Item Description of the Findings Summary of Information Exchanged Conclusion
16-01 Calculator, tab B12 P12, Dapp Electricity Purchase, in the EPCOR invoice, Oct usage covers 30 days, Nov statement ends Nov 23, so Nov invoices covers from Oct 31 to Nov 23, Dec invoice ends Dec 22, 2016, it covers Nov 24 to Dec 22, 2016. please advise if Dec 23 to Dec 31 electricity usage is included.
Our convention has been to record utility purchases with the billing period and as shown on their statement (example attached) rather than calendar usage. This creates a time shift but has an immaterial impact on fossil fuel consumed during the entire verification period.
Nine days electricity usage is missing, the discrepancy is estimated to be 0.023 t CO2e. The data used by Verdant is deemed to be acceptable.
16-02 Biofuel electricity invoice from EPCOR, it appears that Oct 1 - Oct 19 is 2526, Oct 20 - 31 is 1520 kwh, the total for Oct is 4046 kwh, Nov 1 -19 is 2185 and 20 - 30 is 1934 kwh, total for Nov is 4119, and Dec 1 - 19 is 5429. missing Dec 20 - 31 data. The electricity data does not match the offset calculator, please explain, and provide Dec 20 -31 data
Our convention has been to record utility purchases with the billing period and as shown on their statement (example attached) rather than calendar usage. This creates a time shift but has an immaterial impact on fossil fuel consumed during the entire verification period.
Eleven days from Sept 2016 is included in Q4 electricity usage, the shift is deemed to be immaterial
16-03 offset calculator, tab input summary, column G, Dapp wood consumed for Oct is less than total Northland Biofuels. It is our understanding that the max. Biofuel to claim landfill diversion must be equal to or less than total Dapp wood consumed. Please provide further explanation. By looking at Oct wood delivery spreadsheet, it appears that wood from other sources are also delivered in Oct
Dapp took its major annual outage in October and therefore both electrical production and associated fuel consumption is low. Wood fuel continued to be delivered to the plant during this time and is a normal part of our operation. Wood fuel deliveries only match plant production over the course of a calendar year.
Landfill quantity is adjusted based on the actual biomass consumed
16-04 It is our understanding that Biofuel waste is stored at Pile 2 and 7 on site. In the year end survey spreadsheet, the pile 2 and pile 7 has waste remaining. Should the remaining Biofuel waste be deducted from the offset credit claims, the remaining waste is not consumed yet.
Our convention has been that once the wood waste arrives at site it has been landfill diverted for that period. Any inventory at period end is a standard working level that fluctuates up and down.
Landfill quantity is adjusted based on the actual biomass consumed
16-05 Please advise which pile Cloverbar waste is stored at ? Should this quantity in the offset calculator be adjusted by the year end inventory?
Cloverbar is stored with other landfill avoided waste i.e. with Biofuels. All forestry waste is mixed together and managed through inventory accordingly. Only the dry wood (mostly landfill avoided) is kept separate for operating reasons as we mix it into the boiler fuel in different proportions based on supply and seasonality in order to optimize boiler steam production. Same answer as above.
Landfill quantity is adjusted based on the actual biomass consumed
16-06 Please explain how propane is used. The propane is used for heating the office/lunchroom building. Typically the propane bottle is filled once per season.
The propane usage should be categorized in P12 facility operations, as propane is only used for heating, not processing biomass. Qualitative misstatement.
VERIFICATION REPORT FOR 2016 Q4 VERDANT ENERGY
FILE: ENV.CENV03197-01.002 | FEBRUARY 3, 2017 | ISSUED FOR USE
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APPENDIX D
STATEMENT OF VERIFICATION
Tetra Tech Canada Inc.Riverbend Atrium One, 115, 200 Rivercrest Drive SE
Calgary, AB T2C 2X5 CANADA
Tel 403.203.3355 Fax 403.203.3301
February 3, 2017 ISSUED FOR USEFILE: ENV.CENV03197-01.002
Alberta Environment and Parks12th Floor, Baker Centre10025 – 106 StreetEdmonton, AB T5J 1G4
Attention: Director Climate Change Secretariat
Subject: Statement of VerificationVerdant Energy Ltd. – Dapp Power Electric Generation Facility Offset ProjectOctober 1, 2016 – December 31, 2016
1.0 INTRODUCTION
Tetra Tech Canada Inc. (Tetra Tech) has reviewed the greenhouse gas (GHG) emission reduction presented by
Verdant Energy Ltd. (Verdant) for the Verdant Energy Ltd. – Dapp Power Electric Generation Facility Offset Project
for the period of October 1, 2016 – December 31, 2016.
The Project involves the creation of offset credits due to the avoidance of methane emissions (CH4) that would have
otherwise taken place from the anaerobic decomposition of wood waste in landfills, and offset credits from the
generation of electricity from non-fossil fuel sources.
1.1 Objective
The objective of this audit is to provide an independent assessment of the offset project to identify any material and
immaterial errors, omission or misrepresentations and to provide our opinion on the GHG Assertion in the Offset
Project Report.
1.2 GHG Assertion
The GHG Assertion is presented in Table 1.
Table 1: GHG Assertion
Item GHG Assertion
Total Project Emissions 27,581 t CO2e
Total Baseline Emissions 2,324 t CO2e
Net Reductions 25,257 t CO2e
Materiality 5%
Period October 1, 2016 – December 31, 2016
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\Statement of Verification - 2016 Q4 Dapp Power.docx
1.3 Role and Responsibilities
Verdant was responsible for the preparation and presentation of information within the Project Report and GHG
Assertion. Tetra Tech was responsible for determining whether anything has come to our attention to suggest that
the GHG emission reduction is not presented fairly in accordance with Alberta Environment and Park (AEP)
approved quantification methodology, Quantification Protocol for Energy Generation from the Combustion of
Biomass Waste (Version 2.0, April 2014), the Specified Gas Emitters Regulation (SGER), and associated guidance
documents.
The Tetra Tech verification team, including roles and responsibilities are listed in Table 2.
Table 2: Verification Team
Name Role Responsibilities
Kathleen Dunnett P.Eng. VerifierAssist with verification activities, including verification
planning, desktop review, and verification report.
Nelson Lee, M.A.Sc., P.Eng. Designated Signing Authority Review the verification.
Min Si, M.N.R.M., GHG-V Lead Verifier
Lead verification, including site visit and desktop review.
Review verification deliverables, adherence to
ISO 14064-3, regulatory compliance, and technical
soundness.
Nancy Wellhausen Independent Peer ReviewerIndependently review verification deliverables for
adherence to ISO 14064-3 and regulatory compliance.
2.0 SCOPE
2.1 Program Criteria
The verification assesses the Project against Alberta Offset program eligibility criteria, including:
Occurs in Alberta;
Results from actions not otherwise required by laws and be beyond business as usual and sector common
practices;
Results from actions taken on or after January 1, 2002;
Occurs on or after January, 2002;
Be real, demonstrable, quantifiable, and verifiable;
Have clearly established ownership; and
Be counted once for compliance purpose.
STATEMENT OF VERIFICATION FOR 2016 Q4 VERDANT ENERGY
FILE: ENV.CENV03197-01.002 | FEBRUARY 3, 2017 | ISSUED FOR USE
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Statement of Verification - 2016 Q4 Dapp Power.docx
The verification assesses the Project against the following program criteria and relevant supporting documentation:
Alberta’s Climate Change and Emissions Management Act, S.A. 2003, c. C-16.7;
Alberta Specified Gas Emitters Regulation (SGER), 2007;
Alberta SGER, Technical Guidance Document for Offset Project Developers (Version 4.0, February 2013);
Alberta SGER, Technical Guidance for Greenhouse Gas Verification at Reasonable Level Assurance (Version
1.0, January 2013);
Quantification Protocol for Quantification Protocol for Energy Generation from the Combustion of Biomass
Waste (Version 2.0, April 2014);
Offset Project Plan for Verdant Energy Ltd. – Dapp Power Electric Generation Facility; and
Offset Project Report for Verdant Energy Ltd. – Dapp Power Electric Generation Facility.
2.2 Standard
The scope and level of effort of this verification were conducted to a reasonable level of assurance in accordance
with ISO 14064-3: Specification with Guidance for the Validation and Verification of GHG Assertions.
2.3 Procedures
The verification procedures were developed based on the results of our risk assessment for the GHG data and
information as well as the Responsibility Party’s control procedures.
Tetra Tech verification team reviewed, recalculated, vouched, retraced, and confirmed GHG data and information
provided by the Responsible Party. The site visit assessed the Responsible Party’s data management system,
examined quality assurance/quality control (QA/QC) procedures, and tested controls in the data management
system. The Responsible Party’s data flow process, and risks, controls and processes documents were reviewed.
The effectiveness of the data management system’s QA/QC procedures and controls was assessed.
The detailed verification procedures are provided in the Verification Report and Verification Plan.
VERIFICATION REPORT FOR 2016 Q4 VERDANT ENERGY
FILE: ENV.CENV03197-01.002 | FEBRUARY 3, 2017 | ISSUED FOR USE
Verification Report - 2016 Q4 Dapp Power.docx
APPENDIX E
CONFLICT OF INTEREST CHECKLIST
Tetra Tech Canada Inc.Riverbend Atrium One, 115, 200 Rivercrest Drive SE
Calgary, AB T2C 2X5 CANADA
Tel 403.203.3355 Fax 403.203.3301
February 3, 2017 ISSUED FOR USEFILE: ENV.CENV03197-01.002
Verdant Energy Ltd. Via Email: gnoll@verdantenergyltd.com199,525 -11 Ave SWCalgary, AB T2R 0C9
Attention: Grant NollVice Present, Operation
Subject: Conflict of Interest ChecklistVerdant Energy Ltd. – Dapp Power Electric Generation Facility Offset ProjectOctober 1, 2016 – December 31, 2016
Tetra Tech Canada Inc. (Tetra Tech) was contracted by Verdant Energy Ltd. (Verdant), on behalf of Dapp
Power LP, to conduct a verification for Verdant Energy Ltd. – Dapp Power Electric Generation Facility offset project
(the Project) for the period of October 1, 2016 – December 31, 2016.
As a requirement of the Alberta Offset System, Tetra Tech conducts an internal conflict of interest assessment to
ensure the potential for conflicting interest on each verification project, on the part of the verifier and the operation
is reviewed and minimized. The following checklist is provided.
Table 1: Conflict of Interest Checklist
Respond either "True" or "False" to each of the following statements:
1. The relationship between my firm and this reporting company poses unacceptable threat to or
compromises the impartiality of my firm.
False
2. The finances and sources of income of my firm compromise the impartiality of my firm. False
3. The personnel my firm has scheduled to participate in the verification may have an actual or potential
conflict of interest.
False
4. My firm participated in some manner in the development or completion of the associated offset
submission for this reporting company.
False
5. My firm provided greenhouse gas consultancy services to this reporting company. False
6. My firm will use personnel that have, are, or will be engaged or previously employed by the reporting
company.
False
7. My firm will outsource the Statement of Verification for the associated offset submission. False
8. My firm offers products or services that pose an unacceptable risk to impartiality. False
CONFLICT OF INTEREST CHECKLIST FOR 2016 Q4 VERDANT ENERGY
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Tetra Tech has found no potential for conflict of interest of this verification project as documented by our interval
review process. If you have any questions or comments, please contact Min Si (403.723.1565,
Min.Si@tetratech.com)
Sincerely,
Tetra Tech Canada Inc.
Prepared by: Reviewed by:
Min Si, M.N.R.M., GHG-V Nelson Lee, M.A.Sc., P.Eng., GHG-V
Lead Verifier Designated Signing Authority
/sy
VERIFICATION REPORT FOR 2016 Q4 VERDANT ENERGY
FILE: ENV.CENV03197-01.002 | FEBRUARY 3, 2017 | ISSUED FOR USE
Verification Report - 2016 Q4 Dapp Power.docx
APPENDIX F
TETRA TECH’S GENERAL CONDITIONS
1
GENERAL CONDITIONS
GEOENVIRONMENTAL REPORT
This report incorporates and is subject to these “General Conditions”.
1.1 USE OF REPORT AND OWNERSHIP
This report pertains to a specific site, a specific development, and a specific scope of work. It is not applicable to any other sites, nor should it be relied upon for types of development other than those to which it refers. Any variation from the site or proposed development would necessitate a supplementary investigation and assessment.
This report and the assessments and recommendations contained in it are intended for the sole use of TETRA TECH’s client. TETRA TECH does not accept any responsibility for the accuracy of any of the data, the analysis or the recommendations contained or referenced in the report when the report is used or relied upon by any party other than TETRA TECH’s Client unless otherwise authorized in writing by TETRA TECH. Any unauthorized use of the report is at the sole risk of the user.
This report is subject to copyright and shall not be reproduced either wholly or in part without the prior, written permission of TETRA TECH. Additional copies of the report, if required, may be obtained upon request.
1.2 ALTERNATE REPORT FORMAT
Where TETRA TECH submits both electronic file and hard copy versions of reports, drawings and other project-related documents and deliverables (collectively termed TETRA TECH’s instruments of professional service); only the signed and/or sealed versions shall be considered final and legally binding. The original signed and/or sealed version archived by TETRA TECH shall be deemed to be the original for the Project.
Both electronic file and hard copy versions of TETRA TECH’s instruments of professional service shall not, under any circumstances, no matter who owns or uses them, be altered by any party except TETRA TECH. The Client warrants that TETRA TECH’s instruments of professional service will be used only and exactly as submitted by TETRA TECH.
Electronic files submitted by TETRA TECH have been prepared and submitted using specific software and hardware systems. TETRA TECH makes no representation about the compatibility of these files with the Client’s current or future software and hardware systems.
1.1 NOTIFICATION OF AUTHORITIES
In certain instances, the discovery of hazardous substances or conditions and materials may require that regulatory agencies and other persons be informed and the client agrees that notification to such bodies or persons as required may be done by TETRA TECH in its reasonably exercised discretion.
1.2 INFORMATION PROVIDED TO TETRA TECH BY OTHERS
During the performance of the work and the preparation of the report, TETRA TECH may rely on information provided by persons other than the Client. While TETRA TECH endeavours to verify the accuracy of such information when instructed to do so by the Client, TETRA TECH accepts no responsibility for the accuracy or the reliability of such information which may affect the report.
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