Environmental Benefit Quantification

1. Environmental Benefit Quantification Environmental Benefits are the justification for “Sustainable Technology” Successful SDTC project proposals include: • Clearly defined environmental benefits – why this technology is preferable to the alternatives. • Reasonable market rollout figures that are aligned to the project milestones. • Conservative initial calculations of environmental benefits based on estimated project parameters, market rollout estimates, and publicly available industry data and emission factors. • At this stage, the calculations do not need to be prepared by qualified consultants.

2. Environmental Benefit Quantification Steps to build the Environmental Impact Calculations • Define the project’s objective and scope • Identify the baseline for comparison – “What does my project compare to?” • Define the proposed project equivalence – “how does my project compare the baseline?” • Find appropriate emission factors in literature • Calculate Environmental Benefits

3. Environmental Benefit Quantification 1. Project Objective and Scope • What is your project attempting to achieve? • What problem is it solving? • Why is it compelling to customers? • What markets will it address? • What locales will it reach? • What is the chronology for market penetration?

4. Environmental Benefit Quantification 2. Identify Baseline for Comparison • How is the market currently addressing the identified need? • What are other viable or marginally-viable alternatives? • What are the barriers for the implementation of these options? • How is your project affected by the identified barriers? • In the absence of your project, what is the most likely scenario to take place?* * Note: This is NOT simply “as things are now”!

5. Environmental Benefit Quantification 3. Define the proposed project equivalence • Define the project’s functional unit: Will my project supplant an existing product? A service? A combination of products and services? • Is there a perfect equivalent substitute my project is targeting? • Where foreseeable, have related direct and indirect environmental effects been considered?

6. Environmental Benefit Quantification 4. Find Appropriate Emission Factors for Quantification • What are reputable information sources for EFs? • Have I used conservative estimates? • SDTC can supply a set of standard EFs. for reference. • Electricity • Transportation fuels • Waste management • Industrial stationary emissions

7. Environmental Benefit Quantification Sample Sources for Emission Factors • SDTC standard emission factors • Environment Canada: Greenhouse Gas Inventory Emission Factors • Natural Resources Canada: GHGenius model for Transportation Fuels • Natural Resources Canada: Office of Energy Efficiency Databases • US EPA: Compilation of Air Pollutant Emission Factors (AP-42) • Intergovernmental Panel for Climate Change: Guidelines for National Greenhouse Gas Inventories • Canadian Environmental Protection Act (CEPA): Registry of Toxic Substances List

8. Environmental Benefit Quantification Pollutants tracked by SDTC • Global Warming Potential: GHGs, in CO2e. • Criteria Air Contaminants – PM, NOX, SOX. • Water: Water conservation and nutrient loading (N, P) • Soil pollution: landfill avoidance, treatment avoidance, select pollutant emissions, mining impacts. • Others, as agreed between proponents and SDTC.

9. Environmental Benefit Quantification 5. Calculate Environmental Benefits • Use supplied standard tables • Whenever possible, translate market-rollout units into functional units • Estimate the environmental benefit per functional unit – denominated the Unit Intensity Factor. • Calculate the annual environmental benefits

10. Example 1 - GHGs Example of Environmental Impact Calculations Proposed Project: High Performance Wind Turbines • Project scope: Manufacture low-cost, high performance electric wind turbines. • Baseline: If successful, the turbines will substitute electricity from the existing grid. • Proposed project equivalence: Each turbine will generate 17,520 Megawatt hours (kWh) of electricity per year. • Appropriate emission factor: In Canada, each kWh of electricity consumed emits approx. 0.200 kg of CO2e. • Tabulate Environmental Benefits according to estimated market rollout

11. Environmental Impact TablePartial Example 1

12. Example 2 - Water Conservation Proposed Project: Water-Saving Semiconductors • Project scope: Create industry-standard semiconductors with 30% water savings. • Baseline: Conventional silicon-based components for consumer electronics. • Proposed project equivalence: Manufacturing facility with a capacity of 400,000 Si wafers (30 cm)/ y. • Appropriate emission factor: Industry reports the use of about 2,200 gallons water / wafer, equivalent to about 8.33 m3. Savings correspond to 2.5 m3/ wafer. • Tabulate Environmental Benefits according to estimated market rollout

13. Environmental Impact TablePartial Example 2

14. Example 3 - Soil Pollutants Proposed Project: Low-Chromium Plating System • Project scope: Financially competitive chromium plating with low-emissions (50% reduction) from material recovery. • Baseline: If successful, the project will be a perfect substitute for chromium-plated medical equipment. • Proposed project equivalence: A typical operation manufactures about 50,000 medical utensils / y. • Appropriate emission factor: The sample facility consumes about 2,000 Ampere – hours / year for plating. The reported emission factor for this application is 7.77 g Cr VI / A – h. 50% reduction corresponds to 3.88 g / A – h. 2,000 x 3.88 = 7.77 kg Cr VI / y • Tabulate Environmental Benefits according to estimated market rollout

15. Environmental Impact TablePartial Example 3

16. Questions Sustainable Development Technology Canada 45 O’Connor Street, Suite 1850 Ottawa, Ontario K1P 1A4 www.sdtc.ca applications@sdtc.ca