Page 67 - AGL Sustainability Report 2011

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Sustainability Performance Report 2011 65
Carbon risk
Equity Footprint
The Equity Footprint sets out AGL’s share (by percentage
investment level) of the emissions from fully or partially
owned entities. The Equity Footprint indicates to AGL
shareholders the greenhouse gas impacts associated
with their investment.
The Equity Footprint has remained constant at 8.0 MtCO
e in
FY2011. Decreases in emissions associated with AGL’s stake in Loy
Yang A Power Station were largely offset by an increase in emissions
from AGL’s operated assets over the same period, primarily due
to increased generation from the Torrens Island Power Station
compared to FY2010.
The greenhouse intensity of electricity produced from electricity
generation assets that AGL fully or partly owned in FY2011 was
e/MWh (sent-out), a decrease from 0.98 tCO
(sent-out) in FY2010. This intensity is dominated by AGL’s equity
share of Loy Yang A Power Station, which provides around 60% of
AGL’s equity share of electricity generation each year. The Wattle
Point Wind Farm and AGL Hallett 1, Hallett 2 and Hallett 4 wind
farms are not included in this footprint as they are operated but not
owned by AGL.
Included interests
AGL’s 32.5% stake in Loy Yang Power dominates AGL’s Equity
Footprint. The Loy Yang A Power Station produced emissions of
approximately 20 MtCO
e in FY2011, with AGL’s equity share
estimated to be 6.4 MtCO
e. For FY2011, AGL has estimated
emissions from information published regularly by Loy Yang Power
in the Loy Yang Reports (available on the LYP website). Information
from previous years has been derived from National Greenhouse and
Energy Reporting data published by the Commonwealth Government.
The greenhouse intensity of the electricity produced by the Loy Yang
Power Station during FY2011 is estimated at 1.28 tCO
sent-out (including scope 1 and 2 emissions). This power station
operates at the low end of the emissions intensity range of 1.2 to
1.5 tCO
e/MWh for Victorian coal fired generators, and is considered
to be one of the most efficient among these generators.
The Moranbah Gas Project is a joint venture between AGL and Arrow
Energy, which produces coal seam gas from the Bowen Basin in
Queensland (AGL has a 50% interest in the project). Greenhouse gas
emissions are generated mainly from the coal seam gas combusted
in the processing and compression of gas prior to sale, and from gas
fired electricity generation used by the project. AGL has estimated
the FY2011 greenhouse gas emissions from these activities based on
data provided by Arrow Energy.
AGL has interests of 35% to 37.5% in three production licences in
the Cooper Basin (the ‘Innamincka JVs’). The activities include oil and
gas production, and coal seam gas exploration. AGL also holds a 50%
interest in Energy Infrastructure Management (EIM) which operates
a range of gas infrastructure assets, including a number of pipelines.
AGL’s equity share of these emissions has been estimated based on
information provided by EIM and Acer Energy.
In October 2010, AGL acquired Mosaic Oil, including a number of
non-operated joint ventures. These included a 50% interest in the
Wallumbilla LPG plant and the Silver Springs to Wallumbilla pipeline
(AGL subsequently acquired the remaining 50% of these assets in
April 2011 to become the operator), a 33.33% interest in the Lytton
Crude Oil Terminal in Queensland, and interests in an exploration
licence in the Carnarvon Basin in Western Australia (subsequently
divested), and production licences in the Surat Basin in Queensland
(which have low or negligible emissions). Any material emissions from
these assets have been estimated from information provided by
Santos and IOR Terminal. For both operated and non-operated assets
acquired in the Mosaic Oil takeover, AGL has included only the period
of AGL ownership in the FY2011 Equity Footprint.
During the reporting period, AGL also had equity interests in CSM
Energy, Central Queensland Energy Joint Venture, Mascotte Joint
Venture, Spring Gully Project and Torrens Energy. AGL estimates that
the greenhouse gas emissions associated with the activities carried
out as part of these projects are considered negligible within the AGL
Equity Footprint and have therefore not been included.
In addition, AGL has a 50% interest in the ActewAGL Retail
Partnership, which includes the operation of the retail electricity, gas
and water businesses of ActewAGL. Minimal greenhouse emissions
result from office based activities for the ActewAGL partnership.
Equity Footprint: Greenhouse gas emissions
Divested assets
Energy Infrastructure
Moranbah Gas Project
Loy Yang A
Power Station
AGL operated assets
Includes scope 1 and scope 2 greenhouse gas emissions from assets that AGL owns fully or in part (by percentage ownership).