Draft ERF method: Industrial Equipment Upgrades

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The Carbon Credits (Carbon Farming Initiative—Industrial Equipment Upgrades) Methodology Determination 2018 (the Method) covers energy efficiency projects involving common industrial and related equipment such as pumps, boilers, compressed air systems, refrigeration and industrial cooling systems.

This method could benefit owners or operators of common types of industrial equipment.

An industrial equipment upgrades project involves undertaking activities to reduce energy consumption emissions from most common types of industrial equipment. A broad range of upgrade activities that reduce direct fuel combustion emissions and emissions from electricity consumption are eligible.

The method uses a simple measurement and verification approach. To calculate how much abatement energy efficiency upgrades achieve, the method requires measurements of baseline (i.e pre-upgrade) and operating (i.e post upgrade) equipment energy consumption.

Measurements are taken during representative periods, with adjustment for changes in the level of output.

Projects may include one or more of the following activities:

  • modifying, removing or replacing equipment
  • installing additional equipment (e.g. waste heat recovery, pre-heating/cooling)
  • changing the way existing equipment is controlled or operated (e.g. installing/upgrading control systems, sub-metering, refining control algorithms, or introducing additional feedback controls)
  • changing the energy sources or mix of energy sources used.

To be eligible, each individual upgrade must have a total energy consumption of no more than 500,000 gigajoules in the 12 months ending with the end of the baseline measurement period.

It’s important to keep project records because you will need to submit regular reports on your project, including reporting on your emissions reductions.

Projects must be audited by a registered greenhouse and energy (NGER) auditor. A list of registered auditors is available on the Clean Energy Regulator website.

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