Page 72 - agl036_D9

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Climate
change
AGL Energy Limited 70
Equity Footprint: Greenhouse gas emissions
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Other
Divested assets
Construction
Projects
Other Oil
and Gas JVs
Energy Infrastructure
Management
Moranbah
Gas Project
Loy Yang
Power
AGL Operated
Facilities
ktCO
2
e
Greenhouse gas emissions
Legend
FY09
FY10
FY11
FY12
Notes
1 Includes scope 1 and scope 2 greenhouse gas emissions from assets that AGL owns fully or in part (by percentage ownership).
2 Greenhouse gas emissions for the Loy Yang A Power Station and associated assets are included in the AGL Equity Footprint on an equity share of 32.5% until 28 June 2012,
and 100% thereafter.
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.
Performance
The Equity Footprint increased by 5% to 8.4 MtCO
2
e in FY2012,
primarily driven by an increase in emissions associated with AGL’s
equity share in the Loy Yang A Power Station during the year.
The greenhouse intensity of electricity produced from electricity
generation assets that AGL fully or partly owned in FY2012 was
0.95 tCO
2
e/MWh (sent-out), remaining constant compared to
FY2011. 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 emissions and generation from the operation of AGL’s Wattle
Point, Hallett 1, Hallett 2, Hallett 4 and Oaklands Hill Wind Farms are
not included in this footprint as they are operated but not owned by
AGL. The Hallett 5 Wind Farm is included for the period until it was
sold on 14 May 2012.
Included interests
AGL’s stake in Loy Yang Power dominates AGL’s Equity Footprint.
The Loy Yang A Power Station and mine produced emissions of
20.4 MtCO
2
e in FY2012, with AGL’s equity share estimated to be
6.7 MtCO
2
e. On 29 June 2012, AGL completed the acquisition of
the remaining 67.5% of the Loy Yang A Power Station and adjacent
mine that it did not already own. The 2012 Equity Footprint therefore
accounts for 32.5% of emissions from the power station and mine for
364 days of 2011/12, and 100% of emissions for the final two days
of the period. The greenhouse intensity of the electricity produced
by the Loy Yang Power Station during FY2012 was 1.31 tCO
2
e/MWh
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
2
e/MWh for Victorian coal fired generators, and is considered
to be one of the most efficient among these generators.
The Equity Footprint includes each facility in AGL’s Operational
Footprint, apart from the AGL wind farms (which are generally
operated but not owned by AGL). The Hallett 5 Wind Farm
is included for the period until it was sold in May 2012. The
emissions from AGL’s operated joint ventures are adjusted in the
Equity Footprint, so as to account for AGL’s share of ownership.
The Equity Footprint also includes estimates of the emissions
from AGL’s construction projects prior to completion and/or AGL
operation, including wind farms, the Diamantina Power Station
and the Qenos Cogeneration unit (emissions estimates based on
available data from similar projects), and emissions from AGL’s
Energy Services assets that are not part of AGL’s operated facilities
(such as landfill gas flares, Compressed Natural Gas bus refuelling
sites and the Isis Bagasse biomass cogeneration site).
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). AGL
has estimated the FY2012 greenhouse gas emissions from these
activities based on data provided by Arrow Energy, calculated in
accordance with the National Greenhouse and Energy Reporting
regulatory framework.
The Equity Footprint includes the emissions associated with AGL’s
35% and 37.5% interests in a number of oil and gas production
licenses in the Cooper Basin, until December 2011 when AGL
divested these assets. Emissions arose as a result of 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.
AGL’s other oil and gas interests include a 33.33% interest in the
Lytton Crude Oil Terminal in Queensland, and production licences
in the Surat and Bowen Basins in Queensland and (non-operated)
exploration permits in the Taranaki basin in New Zealand (which have
low or negligible emissions). Any significant emissions from these
assets have been estimated from information provided by Santos
and IOR Terminal.
During the reporting period, AGL also had equity interests in CSM
Energy, Central Queensland Energy Joint Venture, Mascotte Joint
Venture, and Torrens Energy. AGL has assumed that the greenhouse
gas emissions associated with the minimal activities associated with
these projects are negligible.
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.
Carbon exposure