Page 65 - AGL Sustainability Report 2011

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Climate
change
Sustainability Performance Report 2011 63
Carbon risk
Operational Footprint
The Operational Footprint covers the emissions
from activities and assets that AGL operates.
Performance
The Operational Footprint has increased by 7% compared to FY2010
to 1,596 ktCO
2
e, primarily due to an increase in electricity generation
from the Torrens Island Power Station, and the acquisition of the
Mosaic Oil facilities in the Surat Basin.
The greenhouse intensity of electricity produced from AGL’s
operated electricity generation portfolio was 0.36 tCO
2
e/MWh
(sent-out) in FY2011, a decrease of 8% compared to FY2010.
This decrease was due to an increase in renewable generation as a
result of new wind generation capacity commencing operation, and
because FY2011 was the first full year of operation for new hydro
and wind assets commissioned in FY2010. During FY2011 there
was a 17% increase in electricity generation, and an 8% increase in
greenhouse gas emissions from AGL’s operated electricity generation
assets compared to the previous year.
Electricity generation
AGL’s portfolio of gas fired power generation includes the Torrens
Island Power Station (1,280 MW intermediate generation plant)
and the Somerton Power Station (150 MW peaking plant) as well
as embedded natural gas fired cogeneration plants at Coopers and
Symex, and the 12 MW embedded coal seam gas fired power station
at Moranbah.
AGL’s operational footprint is dominated by greenhouse gas emissions
from gas fired generation assets. In FY2011, gas fired generation
comprised 94% of AGL’s operational greenhouse gas emissions. This
remained stable compared to FY2010, when 94% of emissions arose
from the operation of these facilities.
With a 10% increase in generation from the Torrens Island Power
Station, emissions from gas fired generation in FY2011 increased
by 8% compared to the previous year. Emissions from renewable
generation assets are, by their nature, small compared to other
types of generation. AGL’s operated renewable generation portfolio
includes hydro generation assets in Victoria and New South Wales,
and the Wattle Point and Hallett wind farms in South Australia.
The commissioning of the AGL Hallett 4 Wind Farm, and the first
full year of operation for the AGL Hallett 2 Wind Farm and the
Bogong Power Station that were commissioned during FY2010
contributed to a marked increase in renewable generation compared
with FY2010. In FY2011, sent out renewable generation from AGL’s
operated assets increased by 34% compared to FY2010, to a total
of 1,776 GWh. In particular, FY2011 saw large increases in hydro
and wind generation, which increased by 40% and 34% respectively,
compared to the previous year. This follows the large increase in
AGL’s renewable generation in FY2010, which was 25% higher
than FY2009.
The AGL Energy Services division within Merchant Energy operates a
variety of other ‘embedded’ generation facilities, including landfill gas,
biomass and biogas generation facilities and the Wilpena Pound Solar/
Diesel facility. Emissions from these facilities remained fairly stable
during FY2011.
Hydrocarbon Extractions (HC Extractions)
AGL owns the HC Extractions facility at Kurnell, New South Wales.
HC Extractions produces LPG and naphtha from oil refinery waste
gas. HC Extractions greenhouse gas emissions result from natural
gas use, electricity consumption and minor emissions associated with
fugitive emissions at the site. Greenhouse gas emissions for FY2011
were slightly lower than FY2010 due to a major shutdown during the
year.
Upstream Gas
Greenhouse gas emissions from AGL’s Upstream Gas projects
remained constant at 39 ktCO
2
e, the same as in FY2010. These
emissions largely arise from AGL’s oil and gas production operations
at the Camden Gas Project, and the Silver Springs operations (and
related fields) in the Surat Basin.
In October 2010, AGL acquired Mosaic Oil, including its operations
in the Surat Basin in Queensland (Silver Springs and related fields).
In FY2011, growth in greenhouse gas emissions from this aquisition
were offest by reductions in emissions at AGL’s exploration projects
at the Hunter and Gloucester Gas projects. At these projects, well
testing activities which commenced in FY2010 (including some
gas flaring and venting) were completed early in the financial year,
resulting in lower emissions in FY2011.
Emissions from the Camden Gas Project remained constant
compared to FY2010, as did gas production at the facility.
AGL’s Upstream Gas business has historically had low greenhouse
gas emissions, because most of the projects have been in their initial
stages of exploration and well testing. Upstream Gas emissions
account for less than 3% of AGL’s total Operation Footprint. AGL
expects Upstream Gas emissions to increase over time as projects
progress from exploration and testing, to production.