12Industrial and commercial emissions reduction projects

12  Industrial and commercial emissions reduction projects

 (1) For paragraph 106(1)(a) of the Act, this determination applies to an offsets project that satisfies the following:

 (a) the project involves undertaking one or more implementations;

 (b) each implementation consists of one or more implementation activities, the combined effect of which could reasonably be expected to do either or both of the following:

 (i) reduce energy emissions produced within the boundary for the implementation;

 (ii) reduce industrial process emissions produced within the boundary for the implementation;

 (c) each implementation could reasonably be expected to result in eligible carbon abatement.

 (2) The implementation activities are the following:

 (a) modifying, removing or replacing existing emissions-producing equipment;

 (b) installing equipment as part of replacing, modifying or augmenting existing emissions-producing equipment;

 (c) changing the way existing emissions-producing equipment is controlled or operated;

Example 1: Optimising compression or pre-heating cycles.

Example 2: Using catalysts to reduce the industrial process emissions produced during chemical manufacture.

 (d) changing the energy sources or mix of energy sources used by existing emissions-producing equipment;

 (e) modifying, installing, removing or replacing equipment that affects the production of emissions by existing emissions-producing equipment;

 (f) installing equipment that generates electricity at a location for the primary purpose of:

 (i) providing electricity to existing emissions-producing equipment that, in the absence of the implementation activity, would obtain electricity from an electricity grid; or

 (ii) replacing existing off-grid electricity generation with lower emissions-intensity off-grid electricity generation.

 (3) However, activities relating to the following are not implementation activities:

 (a) equipment that generates electricity at a location if, after the proposed implementation:

 (i) the combined stated capacity of all generating equipment at the location will be 30 megawatts or more according to the manufacturers’ nameplates; and

 (ii) that location will have the capacity to export electricity to an electricity grid that is a grid in relation to which the NGA Factors document, in force on the application day in relation to the project, includes an emissions factor; and

(iii)  either:

 (A) the export of the electricity to the grid is regarded as “scheduled” or “semi-scheduled” by the market operator of the grid; or