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Climate
change
AGL Energy Limited 68
Operational Footprint
The Operational Footprint covers the emissions from
activities and assets that AGL operates.
Performance
The Operational Footprint remained fairly constant in FY2012,
increasing by 0.5% compared to FY2011, to 1,604 ktCO
2
e (Scope
1 and Scope 2). Emissions from power generation increased by 0.1%,
emissions from corporate activities and oil and gas exploration,
storage and production decreased by around 12% and emissions
from LPG production and project construction increased modestly.
The greenhouse intensity of electricity produced from AGL’s
operated electricity generation portfolio was 0.31 tCO
2
e/MWh
(sent-out) in FY2012, a decrease of 13% compared to FY2011.
This decrease was due to an increase in renewable generation as
a result of new wind generation capacity commencing operation,
and because FY2012 was the first full year of operation for the
Hallett 4 Wind Farm commissioned in FY2011. During FY2012 there
was a 15% increase in electricity generation sent out, and a 0.1%
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 in FY2012 is dominated by greenhouse
gas emissions from gas fired generation assets. In FY2012, gas
fired generation comprised 94% of AGL’s operational greenhouse
gas emissions. This remained stable compared to FY2011, when
94% of emissions also arose from the operation of these facilities.
With a 3% increase in generation from the Torrens Island Power
Station, emissions from gas fired generation in FY2012 increased
by 2% compared to the previous year, to 1,395 ktCO
2
e.
Emissions from the Somerton Power Station decreased by more
than 50%, commensurate with the decrease in generation sent out
from that facility. As a peaking power station, generation output
from Somerton can fluctuate significantly year to year, depending
on demand.
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. During FY2012, emissions from these
facilities totalled 14 ktCO
2
e.
The commissioning of the AGL Bluff (Hallett 5) and Oaklands
Hill Wind Farms, and the first full year of operation for the AGL
Hallett 4 Wind Farm contributed to a marked increase in renewable
generation compared with FY2011. In FY2012, sent-out renewable
generation from AGL’s operated assets increased by 33% compared
to FY2011, to a total of 2,369 GWh. In particular, FY2012 saw large
increases in wind and hydro generation, which increased by 62% and
7% respectively, compared to the previous year. This follows the
large increase in AGL’s renewable generation in FY2011 and FY2010
(which increased by 34% and 25% respectively, as compared to the
previous year in each case).
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 decreased by
around 4% to 9 ktCO
2
e in FY2012, compared to the previous year.
This was largely due to a 3% reduction in generation sent out from
the Werribee biogas generator.
During FY2012, AGL also had operational control of the construction
of the Macarthur Wind Farm in Victoria (via a Joint Venture),
resulting in 10 ktCO
2
e of greenhouse gas emissions.
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
FY2012 were 26 ktCO
2
e, 8% higher than FY2011, returning to
normal levels following a major shutdown during FY2011.
Upstream Gas
Greenhouse gas emissions from AGL’s Upstream Gas projects
decreased by 12% compared to FY2011, to 34 ktCO
2
e. These
emissions largely arise from AGL’s oil and gas production operations
at the Camden Gas Project in New South Wales, and in the Surat
Basin in Queensland, along with the Silver Springs Gas Storage
Facility which commenced operations during FY2012.
Emissions from the Camden Gas Project decreased by 7% compared
to FY2011 to 18 ktCO
2
e, with gas production at the facility increasing
by 1% over the same period. Emissions from oil and gas production
at Silver Springs and associated fields in the Surat Basin decreased by
23% in FY2012, to 7 ktCO
2
e, as a result of lower energy production
(down by 47%) during the construction and commissioning of the
adjacent Silver Springs Gas Storage Facility. Gas storage involves the
compression and injection of gas into an underground reservoir. The
facility commenced operation in August 2011, and produced 8 ktCO
2
e
of greenhouse gas emissions during FY2012.
AGL commenced oil production at the ATP1056P in the Cooper
Basin in Queensland during the year, resulting in emissions of 0.3
ktCO
2
e during the year.
AGL’s gas development projects in the Gloucester and Hunter
regions in New South Wales continued to have very low levels of
activity during FY2012, and as a result, the associated greenhouse
gas emissions were minimal (0.2 ktCO
2
e in total). These projects
undertook no well drilling, well testing, venting or flaring during the
reporting period.
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.
Carbon exposure