Part 37Production of iron ore pellets

Schedule 6—Emissions‑intensive trade‑exposed activities (regulation 22D) ## Part 1—Preliminary #### 601 Preliminary (1) In this Schedule: (a) Division 1 of a Part (other than this Part) specifies activities that are emissions‑intensive trade‑exposed activities; and (b) Division 2 of the Part (if included) sets out whether the activity is: (i) highly emissions‑intensive; or (ii) moderately emissions‑intensive; and (c) Division 3 of the Part (if included) sets out the electricity baseline for calculating the amount of a liable entity’s exemption in respect of the activity. > Note: The matters mentioned in paragraphs (b) and (c) are required for the purpose of calculating the amount of a liable entity’s exemption for a year before 2020 in relation to an emissions‑intensive trade‑exposed activity and site under Division 5 of Part 3A (production calculation method)—see paragraph 46B(1)(a) of the Act. The method for calculating the relevant amount is set out in regulations 22Z to 22ZG. (2) In this Schedule, unless the contrary intention appears: (a) a concentration of a substance that is expressed as a percentage is a percentage with respect to mass; and (b) a reference to the moisture content of a substance expressed as a percentage is a percentage with respect to mass. ## Part 2—Production of glass containers ### Division 1—Production of glass containers #### 602 Production of glass containers (1) The production of glass containers is the physical and chemical transformation of silica (silicon dioxide (SiO2)) and other raw and recycled materials (such as cullet) to produce blown or pressed glass containers, by controlled melting and forming in a contiguous process. (2) The production of glass containers is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 603 Classification of activity The production of glass containers is a moderately emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 604 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of glass containers is 0.308 MWh per tonne of blown and pressed glass containers that are: (a) produced by carrying on the emissions‑intensive trade‑exposed activity; and (b) of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 3—Production of bulk flat glass ### Division 1—Production of bulk flat glass #### 605 Production of bulk flat glass (1) The production of bulk flat glass is the physical and chemical transformation of silica (silicon dioxide (SiO2)) and other raw and recycled materials (such as cullet) to produce bulk flat glass products, including wired glass and patterned glass, by controlled melting and forming in a contiguous process. (2) The production of bulk flat glass is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 606 Classification of activity The production of bulk flat glass is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 607 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of bulk flat glass is 0.276 MWh per tonne of bulk flat glass that is: (a) produced by carrying on the emissions‑intensive trade‑exposed activity; and (b) of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 4—Production of methanol ### Division 1—Production of methanol #### 608 Production of methanol (1) The production of methanol is the chemical transformation of 1 or more of the following: (a) hydrocarbons; (b) hydrogen feedstocks; (c) carbon feedstocks; (d) oxygen feedstocks; to produce liquid methanol (CH3OH) in which the concentration of methanol is equal to or greater than 98%. (2) The production of methanol is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 609 Classification of activity The production of methanol is specified as a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 610 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of methanol is 0.490 MWh per tonne of 100% equivalent methanol (CH3OH) that is produced by carrying on the emissions‑intensive trade‑exposed activity. ## Part 5—Production of carbon black ### Division 1—Production of carbon black #### 611 Production of carbon black (1) The production of carbon black is the chemical transformation of gaseous or liquid hydrocarbons to produce a colloidal carbon material (known as ‘carbon black’) in the form of spheres or of fused aggregates of the spheres. (2) The particle size of the colloidal carbon must be below 1 000nm in at least 1 dimension. (3) The production of carbon black is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 612 Classification of activity The production of carbon black is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 613 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of carbon black is 0.514 MWh per tonne, on a dry weight basis, of pelletised carbon black that is: (a) produced by carrying on the emissions‑intensive trade‑exposed activity; and (b) of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 6—Production of white titanium dioxide (TiO2) pigment ### Division 1—Production of white titanium dioxide (TiO2) pigment #### 614 Production of white titanium dioxide (TiO2) pigment (1) The production of white titanium dioxide (TiO2) pigment is the chemical transformation of 1 or more of the following: (a) rutile (TiO2); (b) synthetic rutile (TiO2); (c) ilmenite (FeTiO3); (d) leucoxene; (e) titanium slag that has an iron (Fe) concentration of greater than or equal to 7%; to produce white titanium dioxide (TiO2) pigment. (2) The white titanium dioxide (TiO2) pigment must: (a) conform with ASTM classification D476‑00; and (b) have an iron (Fe) concentration of less than or equal to 0.5%. (3) The production of white titanium dioxide (TiO2) pigment is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 615 Classification of activity The production of white titanium dioxide (TiO2) pigment is a moderately emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 616 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of white titanium dioxide (TiO2) pigment is 0.986 MWh per tonne of white titanium dioxide pigment that: (a) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (b) conforms with ASTM classification D476‑00; and (c) has an iron (Fe) concentration of less than or equal to 0.5%; and (d) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 7—Production of silicon ### Division 1—Production of silicon #### 617 Production of silicon (1) The production of silicon is the chemical transformation of silica (silicon dioxide (SiO2)) to produce silicon (Si) with a concentration of silicon equal to or greater than 98.0%, conducted in accordance with the overall chemical equation:  (2) The production of silicon is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 618 Classification of activity The production of silicon is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 619 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of silicon is 11.7 MWh per tonne of silicon that: (a) has a concentration of silicon equal to or greater than 98.0%; and (b) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (c) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 8—Smelting zinc ### Division 1—Smelting zinc #### 620 Smelting zinc (1) Smelting zinc is the chemical transformation of either or both of: (a) concentrated mineralised zinc compounds; and (b) zinc‑bearing secondary materials; to produce zinc metal (Zn) with a concentration of zinc equal to or greater than 99.95%. (2) Smelting zinc is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 621 Classification of activity Smelting zinc is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 622 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of smelting zinc is 4.25 MWh per tonne of zinc that: (a) has a concentration of zinc equal to or greater than 99.95%; and (b) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (c) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 9—Integrated production of lead and zinc ### Division 1—Integrated production of lead and zinc #### 623 Integrated production of lead and zinc (1) The integrated production of lead and zinc is the chemical transformation of either or both of: (a) concentrated mineralised lead compounds, with or without additional lead‑bearing secondary materials; and (b) concentrated mineralised zinc compounds, with or without additional zinc‑bearing secondary materials; to produce: (c) lead metal (Pb) with a concentration of lead equal to or greater than 99.97%; and (ca) lead metal (Pb) with a concentration of lead of at least 99.5% but less than 99.97%; and (d) zinc in fume (Zn) with a concentration of zinc equal to or greater than 60%. (2) The integrated production of lead and zinc is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 624 Classification of activity The integrated production of lead and zinc is a moderately emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 625 Electricity baseline for product (1) For the production of lead metal (Pb) with a concentration of lead of at least 99.97%, the basis for calculating the amount of a liable entity’s exemption is 0.355 MWh per tonne of lead metal that: (a) has a concentration of lead equal to or greater than 99.97%; and (aa) is not produced from a product mentioned in paragraph 623(1)(ca); and (b) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (c) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. (1A) For the production of lead metal (Pb) with a concentration of lead of at least 99.5% but less than 99.97%, the basis for calculating the amount of a liable entity’s exemption is 0.371 MWh per tonne of lead metal that: (a) has a concentration of lead of at least 99.5% but less than 99.97%; and (b) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (c) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. (2) For the production of zinc in fume (Zn), the basis for calculating the amount of a liable entity’s exemption is 0.820 MWh per tonne of 100% equivalent zinc contained within zinc in fume that: (a) has a concentration of zinc equal to or greater than 60%; and (b) is produced by carrying on the emissions‑intensive trade‑exposed activity. ## Part 10—Aluminium smelting ### Division 1—Aluminium smelting #### 626 Aluminium smelting (1) Aluminium smelting is the physical and chemical transformation of alumina (aluminium oxide (Al2O3)) into saleable aluminium metal (Al). (2) Aluminium smelting is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 627 Classification of activity Aluminium smelting is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 628 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of aluminium smelting is 15.0 MWh per tonne of primary aluminium (Al) that: (a) has a concentration of aluminium equal to or greater than 98%; and (b) is produced as part of carrying on the emissions‑intensive trade‑exposed activity; and (c) is weighed after electrolysis but before casting. ## Part 11—Production of high purity ethanol ### Division 1—Production of high purity ethanol #### 629 Production of high purity ethanol (1) The production of high purity ethanol is the chemical transformation of fermentable sugars (such as C6H12O6, C5H10O5, C12H22O11 or C18H32O16) to ethanol (C2H5OH) and subsequent purification process to obtain a solution of high purity ethanol where the concentration of ethanol is equal to or greater than 95% with respect to volume. (2) The production of high purity ethanol is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 630 Classification of activity The production of high purity ethanol is a moderately emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 631 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of high purity ethanol is 0.168 MWh per kilolitre of 100% equivalent ethanol (C2H5OH) at 20 °C that is produced by carrying on the emissions‑intensive trade‑exposed activity, assuming a density of ethanol of 789.24 kg/m3 at 20 °C. ## Part 12—Production of magnesia ### Division 1—Production of magnesia #### 632 Production of magnesia (1) The production of magnesia is the chemical and physical transformation of magnesite (magnesium carbonate (MgCO3)) into 1 or more of the following magnesia products: (a) caustic calcined magnesia that: (i) has a concentration of magnesium oxide (MgO) equal to or greater than 75%; and (ii) is burned between 650 °C and 1 200 °C; (b) deadburned magnesia that: (i) has a concentration of magnesium oxide equal to or greater than 85%; and (ii) has grain density of 2.85 g/cm3 to 3.45 g/cm3; and (iii) is burned between 1 300 °C and 2 200 °C; (c) electrofused magnesia that: (i) has a concentration of magnesium oxide equal to or greater than 90%; and (ii) has grain density of greater than 3.45 g/cm3; and (iii) is fused at temperatures in excess of 2 750 °C. (2) The production of magnesia is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 633 Classification of activity The production of magnesia is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 634 Electricity baseline for product (1) For the production of caustic calcined magnesia, the basis for calculating the amount of a liable entity’s exemption is 0.0757 MWh per tonne of caustic calcined magnesia on a dry weight basis that: (a) has a concentration of magnesium oxide (MgO) equal to or greater than 75%; and (b) is produced by, or as part of, carrying on the emissions‑intensive trade‑exposed activity; and (c) is of saleable quality; whether or not it is later transformed into deadburned magnesia or electrofused magnesia. > Note: Saleable quality is defined in regulation 22C. (2) For the production of deadburned magnesia, the basis for calculating the amount of a liable entity’s exemption is 0.202 MWh per tonne of deadburned magnesia on a dry weight basis that: (a) has a concentration of magnesium oxide equal to or greater than 85%; and (b) has grain density of 2.85 g/cm3 to 3.45 g/cm3; and (c) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (d) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. (3) For the production of electrofused magnesia, the basis for calculating the amount of a liable entity’s exemption is 2.45 MWh per tonne of electrofused magnesia on a dry weight basis that: (a) has a concentration of magnesium oxide equal to or greater than 90%; and (b) has grain density of greater than 3.45 g/cm3; and (c) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (d) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 13—Manufacture of newsprint ### Division 1—Manufacture of newsprint #### 635 Manufacture of newsprint (1) The manufacture of newsprint is the chemical or physical transformation, through an integrated process, of any or all of woodchips, sawdust, wood pulp and recovered paper into rolls of coated or uncoated newsprint that: (a) has a grammage range of 30 g/m2 to 80 g/m2; and (b) has a moisture content range of 4% to 11%; and (c) is generally usable for newspaper or publication products. (2) The manufacture of newsprint is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 636 Classification of activity The manufacture of newsprint is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 637 Electricity baseline for product (1) For the manufacture of coated or uncoated newsprint that: (a) has a grammage range of 30 g/m2 to 80 g/m2; and (b) has a moisture content range of 4% to 11%; and (c) is generally usable for newspaper or publication products; the electricity baseline for calculating the amount of a liable entity’s exemption is 0.697 MWh per air dried tonne of rolls of coated or uncoated newsprint of saleable quality produced by carrying on the emissions‑intensive trade‑exposed activity. > Note: Saleable quality is defined in regulation 22C. (2) For the production of pulp from either or both of woodchips and sawdust, the basis for calculating the amount of a liable entity’s exemption is 2.48 MWh per tonne of bone dried equivalent pulp that is: (a) used in the integrated process of manufacturing newsprint; and (b) produced as part of carrying on the emissions‑intensive trade‑exposed activity. (3) For the production of pulp from recovered paper, the basis for calculating the amount of a liable entity’s exemption is 0.431 MWh per tonne of bone dried equivalent pulp that is: (a) used in the integrated process of manufacturing newsprint; and (b) produced as part of carrying on the emissions‑intensive trade‑exposed activity. (4) For this Part, an amount of pulp or paper that is used as a basis for calculating the amount of a liable entity’s exemption for 1 of the following emissions‑intensive trade‑exposed activities: (a) the manufacture of newsprint; (b) dry pulp manufacturing; (c) cartonboard manufacturing; (d) packaging and industrial paper manufacturing; (e) printing and writing paper manufacturing; (f) tissue paper manufacturing; does not count for the purpose of the basis for allocation of another of those emissions‑intensive trade‑exposed activities. ## Part 14—Dry pulp manufacturing ### Division 1—Dry pulp manufacturing #### 638 Dry pulp manufacturing (1) Dry pulp manufacturing is the physical or chemical transformation of any or all of wood chips, sawdust, wood pulp and recovered paper into either or both of rolls and bales of dry pulp that: (a) has a moisture content in the range of 4% to 14%; and (b) is generally useable in either or both of: (i) paper manufacturing; and (ii) the production of sanitary products (such as a fluff pulp layer in sanitary products). (2) Dry pulp manufacturing is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 639 Classification of activity Dry pulp manufacturing is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 640 Electricity baseline for product (1) For dry pulp manufacturing, the basis for calculating the amount of a liable entity’s exemption is 0.404 MWh per tonne of either or both of rolls and bales of dry pulp that: (a) has a moisture content in the range of 4% to 14%; and (b) is generally useable in either or both of: (i) paper manufacturing; and (ii) the production of sanitary products (such as a fluff pulp layer in sanitary products); and (c) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (d) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. (2) For the production of pulp from either or both of woodchips and sawdust as part of dry pulp manufacturing, the basis for calculating the amount of a liable entity’s exemption is 0.448 MWh per total air dried tonne (applying a 10% moisture content) of equivalent pulp that is: (a) produced from either or both of woodchips and sawdust; (b) used in the process of manufacturing dry pulp; and (c) produced as part of carrying on the emissions‑intensive trade‑exposed activity. (3) For this Part, an amount of pulp or paper that is used as a basis for calculating the amount of a liable entity’s exemption for 1 of the following emissions‑intensive trade‑exposed activities: (a) the manufacture of newsprint; (b) dry pulp manufacturing; (c) cartonboard manufacturing; (d) packaging and industrial paper manufacturing; (e) printing and writing paper manufacturing; (f) tissue paper manufacturing; does not count for the purpose of the basis for allocation of another of those emissions‑intensive trade‑exposed activities. ## Part 15—Cartonboard manufacturing ### Division 1—Cartonboard manufacturing #### 641 Cartonboard manufacturing (1) Cartonboard manufacturing is the physical or chemical transformation of any or all of wood chips, sawdust, wood pulp and recovered paper into rolls of cartonboard that: (a) has a grammage range of 150 g/m2 to 500 g/m2; and (b) has a moisture content in the range of 4% to 11%, and (c) is coated; and (d) is generally useable as cartonboard product such as coated kraft liner, coated multiply and other coated paperboard. (2) Cartonboard manufacturing is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 642 Classification of activity Cartonboard manufacturing is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 643 Electricity baseline for product (1) For cartonboard manufacturing, the basis for calculating the amount of a liable entity’s exemption is 0.775 MWh per total tonne of rolls of cartonboard that: (a) has a grammage range of 150 g/m2 to 500 g/m2; and (b) has a moisture content in the range of 4% to 11%; and (c) is coated; and (d) is generally useable as cartonboard product such as coated kraft liner, coated multiply and other coated paperboard; and (e) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (f) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. (2) For the production of pulp from either or both of woodchips and sawdust as part of cartonboard manufacturing, the basis for calculating the amount of a liable entity’s exemption is 0.448 MWh per total air dried tonne (applying a 10% moisture content) of equivalent pulp that is: (a) produced from either or both of woodchips and sawdust; and (b) used in the process of cartonboard manufacturing; and (c) produced as part of carrying on the emissions‑intensive trade‑exposed activity. (3) For this Part, an amount of pulp or paper that is used as a basis for calculating the amount of a liable entity’s exemption for 1 of the following emissions‑intensive trade‑exposed activities: (a) the manufacture of newsprint; (b) dry pulp manufacturing; (c) cartonboard manufacturing; (d) packaging and industrial paper manufacturing; (e) printing and writing paper manufacturing; (f) tissue paper manufacturing; does not count for the purpose of the basis for allocation of another of those emissions‑intensive trade‑exposed activities. ## Part 16—Packaging and industrial paper manufacturing ### Division 1—Packaging and industrial paper manufacturing #### 644 Packaging and industrial paper manufacturing (1) Packaging and industrial paper manufacturing is the physical or chemical transformation of any or all of wood chips, sawdust, wood pulp and recovered paper into rolls of packaging and industrial paper that (a) is produced from wholly or partially unbleached input fibre; and (b) has a grammage range of 30 g/m2 to 500 g/m2; and (c) has a moisture content in the range of 4% to 11%; and (d) is uncoated; and (e) is generally useable as a packaging or industrial paper, including products such as kraft liner, recycled or multiply liner, medium, sack and bag paper, wrapping paper, plasterboard liner, horticultural paper and building paper. (2) Packaging and industrial paper manufacturing is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 645 Classification of activity Packaging and industrial paper manufacturing is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 646 Electricity baseline for product (1) For packaging and industrial paper manufacturing, the basis for calculating the amount of a liable entity’s exemption is 0.554 MWh per total tonne of rolls of packaging and industrial paper that: (a) is produced from wholly or partially unbleached input fibre; and (b) has a grammage range of 30 g/m2 to 500 g/m2; and (c) has a moisture content in the range of 4% to 11%; and (d) is uncoated; and (e) is generally useable as a packaging or industrial paper product, including products such as kraft liner, recycled or multiply liner, medium, sack and bag paper, wrapping paper, plasterboard liner, horticultural paper and building paper; and (f) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (g) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. (2) For the production of pulp from either or both of woodchips and sawdust as part of packaging and industrial paper manufacturing, the basis for calculating the amount of a liable entity’s exemption is 0.448 MWh per total air dried tonne (assuming a 10% moisture content) of equivalent pulp that is: (a) produced from either or both of woodchips and sawdust; and (b) used in the process of manufacturing packaging and industrial paper; and (c) produced as part of carrying on the emissions‑intensive trade‑exposed activity. (3) For this Part, an amount of pulp or paper that is used as a basis for calculating the amount of a liable entity’s exemption for 1 of the following emissions‑intensive trade‑exposed activities: (a) the manufacture of newsprint; (b) dry pulp manufacturing; (c) cartonboard manufacturing; (d) packaging and industrial paper manufacturing; (e) printing and writing paper manufacturing; (f) tissue paper manufacturing; does not count for the purpose of the basis for allocation of another of those emissions‑intensive trade‑exposed activities. ## Part 17—Printing and writing paper manufacturing ### Division 1—Printing and writing paper manufacturing #### 647 Printing and writing paper manufacturing (1) Printing and writing paper manufacturing is the physical or chemical transformation of any or all of wood chips, sawdust, wood pulp and recovered paper into rolls of coated or uncoated printing and writing paper that: (a) is produced from 100% bleached or brightened input fibre; and (b) has a grammage range of 42 g/m2 to 350 g/m2; and (c) has a moisture content in the range of 4% to 11%; and (d) is generally useable as a printing and writing paper product, including products such as offset paper, copy paper, laser printing paper, magazine paper, filing card paper, manilla, book printing paper, envelope paper, forms paper, scholastic paper, cheque paper and security paper. (2) Printing and writing paper manufacturing is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 648 Classification of activity Printing and writing paper manufacturing is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 649 Electricity baseline for product (1) For printing and writing paper manufacturing, the basis for calculating the amount of a liable entity’s exemption is 0.880 MWh per total tonne of rolls of coated or uncoated printing and writing paper that: (a) is produced from 100% bleached or brightened input fibre; and (b) has a grammage range of 42 g/m2 to 350 g/m2; and (c) has a moisture content in the range of 4% to 11%; and (d) is generally useable as a printing and writing paper product, including products such as offset paper, copy paper, laser printing paper, magazine paper, filing card paper, manilla, book printing paper, envelope paper, forms paper, scholastic paper, cheque paper and security paper; and (e) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (f) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. (2) For the production of pulp from either or both of woodchips and sawdust as part of printing and writing paper manufacturing, the basis for calculating the amount of a liable entity’s exemption is 0.448 MWh per total air dried tonne (assuming a 10% moisture content) of equivalent pulp that is: (a) produced from either or both of woodchips and sawdust; and (b) used in the process of manufacturing printing and writing paper; and (c) produced as part of carrying on the emissions‑intensive trade‑exposed activity. (2A) For the production of pulp from recovered paper as part of printing and writing paper manufacturing, the basis for calculating the amount of a liable entity’s exemption is 0.824 MWh per total air dried tonne (assuming a 10% moisture content) of equivalent pulp that is: (a) produced from recovered paper; and (b) used in the process of manufacturing printing and writing paper; and (c) produced as part of carrying on the emissions‑intensive trade‑exposed activity. (3) For this Part, an amount of pulp or paper that is used as a basis for calculating the amount of a liable entity’s exemption for 1 of the following emissions‑intensive trade‑exposed activities: (a) the manufacture of newsprint; (b) dry pulp manufacturing; (c) cartonboard manufacturing; (d) packaging and industrial paper manufacturing; (e) printing and writing paper manufacturing; (f) tissue paper manufacturing; does not count for the purpose of the basis for allocation of another of those emissions‑intensive trade‑exposed activities. ## Part 18—Alumina refining ### Division 1—Alumina refining #### 650 Alumina refining (1) Alumina refining is the physical and chemical transformation of bauxite (which is an ore containing mineralised aluminium compounds) into alumina (aluminium oxide (Al2O3)) with a concentration of aluminium oxide equal to or greater than 95%. (2) Alumina refining is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 651 Classification of activity Alumina refining is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 652 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in relation to alumina refining is 0.228 MWh per tonne of alumina (aluminium oxide (Al2O3)) that: (a) has a concentration of aluminium oxide equal to or greater than 95%; and (b) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (c) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 19—Tissue paper manufacturing ### Division 1—Tissue paper manufacturing #### 653 Tissue paper manufacturing (1) Tissue paper manufacturing is the physical or chemical transformation of any or all of wood chips, sawdust, wood pulp and recovered paper into rolls of uncoated tissue paper that: (a) has a grammage range of 13 g/m2 to 75 g/m2; and (b) has a moisture content in the range of 4% to 11%; and (c) is generally useable in sanitary products such as facial tissue, paper towel, bathroom tissue and napkins. (2) Tissue paper manufacturing is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 654 Classification of activity Tissue paper manufacturing is a moderately emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 655 Electricity baseline for product (1) Subject to subclause (3), for tissue paper manufacturing, the basis for calculating the amount of a liable entity’s exemption is 1.67 MWh per total tonne of rolls of uncoated tissue paper that: (a) has a grammage range of 13 g/m2 to 75 g/m2; and (b) has a moisture content in the range of 4% to 11%; and (c) is generally useable in sanitary products such as facial tissue, paper towel, bathroom tissue and napkins; and (d) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (e) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. (2) For the production of pulp from either or both of woodchips and sawdust as part of the tissue paper manufacturing, the basis for calculating the amount of a liable entity’s exemption is 0.448 MWh per total air dried tonne (assuming a 10% moisture content) of equivalent pulp that is: (a) produced from either or both of woodchips and sawdust; and (b) used in the process of manufacturing tissue paper; and (c) produced as part of carrying on the emissions‑intensive trade‑exposed activity. (3) For this Part, an amount of pulp or paper that is used as a basis for calculating the amount of a liable entity’s exemption for 1 of the following emissions‑intensive trade‑exposed activities: (a) the manufacture of newsprint; (b) dry pulp manufacturing; (c) cartonboard manufacturing; (d) packaging and industrial paper manufacturing; (e) printing and writing paper manufacturing; (f) tissue paper manufacturing; does not count for the purpose of the basis for allocation of another of those emissions‑intensive trade‑exposed activities. ## Part 20—Integrated iron and steel manufacturing ### Division 1—Integrated iron and steel manufacturing #### 656 Integrated iron and steel manufacturing (1) Integrated iron and steel manufacturing is the chemical and physical transformation of iron ore into crude carbon steel products and hot‑rolled carbon steel products involving: (a) all of the processes specified in subclause (1A); or (b) both: (i) all of the processes specified in subclause (1A); and (ii) the carbonisation of coal (principally coking coal) into coke oven coke. > Note: Carbon steel and coke oven coke are defined in regulation 22A. (1A) For the purposes of paragraph (1)(a) and subparagraph (1)(b)(i), the following processes are specified: (a) the chemical and physical transformation of iron ore into agglomerated iron ore, such as iron ore sinter or iron ore pellets; (b) the chemical and physical transformation of either or both of limestone or dolomite, into lime (including burnt lime and burnt dolomite); (c) the chemical and physical transformation of iron ore feed, including agglomerated iron ore, into molten iron which includes the reduction of oxides of iron using carbon as the predominant reducing agent; (d) the chemical and physical transformation of molten iron and cold ferrous feed, such as pig iron, flat iron and ferrous scrap, into 1 or more of the following: (i) continuously cast carbon steel products; (ii) ingots of carbon steel; (iii) hot‑rolled carbon steel products, which commenced hot‑rolling at a temperature above 800 °C. (2) Integrated iron and steel manufacturing may also include the physical transformation of continuously cast carbon steel products into hot‑rolled carbon steel products which commence hot‑rolling at a temperature above 800 °C if the continuously cast carbon steel products are produced: (a) at a site that: (i) conducts the activity of integrated iron and steel manufacturing; and (ii) is not a site that is part of the activity group associated with the activity that is the subject of the application made under subsection 46A(1) of the Act; or (b) from the activity of manufacture of carbon steel from cold ferrous feed. > Note: Activity group is defined in regulation 22A. (4) Integrated iron and steel manufacturing is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 657 Classification of activity Integrated iron and steel manufacturing is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 658 Electricity baseline for product (1) For the production of iron ore sinter, the electricity baseline for calculating the amount of a liable entity’s exemption is 0.0397 MWh per tonne of iron ore sinter on a dry weight basis that: (a) meets the necessary requirements for use in the integrated iron and steel manufacturing process; and (b) is produced as part of carrying on the emissions‑intensive trade‑exposed activity. (2) For the production of iron ore pellets, the electricity baseline for calculating the amount of a liable entity’s exemption is 0.0742 MWh per tonne of iron ore pellets on a dry weight basis that: (a) meet the necessary requirements for use in the integrated iron and steel manufacturing process; and (b) are produced as part of carrying on the emissions‑intensive trade‑exposed activity. (3) For the production of coke oven coke, the electricity baseline for calculating the amount of a liable entity’s exemption is 0.0397 MWh per tonne of coke oven coke on a dry weight basis that: (a) meets the necessary requirements for use in the integrated iron and steel manufacturing process; and (b) is produced as part of carrying on the emissions‑intensive trade‑exposed activity; and (c) is not a relevant product for the emissions‑intensive trade‑exposed activity of production of coke oven coke. (4) For the production of lime, the electricity baseline for calculating the amount of a liable entity’s exemption is 0.0405 MWh per tonne of lime on a dry weight basis that: (a) meets the necessary requirements for use in the integrated iron and steel manufacturing process; and (b) is produced as part of carrying on the emissions‑intensive trade‑exposed activity; and (c) is not a relevant product for the emissions‑intensive trade‑exposed activity of production of lime. (5) For the production of either or both of continuously cast carbon steel products and ingots of carbon steel, the electricity baseline for calculating the amount of a liable entity’s exemption is 0.145 MWh per tonne of either or both of continuously cast carbon steel products and ingots of carbon steel that: (a) are produced as part of carrying on the emissions‑intensive trade‑exposed activity; and (b) are not a relevant product for the emissions‑intensive trade‑exposed activity of the manufacture of carbon steel from cold ferrous feed; and (c) are of a saleable quality. > Note 1: Carbon steel and relevant product are defined in regulation 22A. > Note 2: Saleable quality is defined in regulation 22C. (6) For the production of hot‑rolled carbon steel products that are long products, the electricity baseline for calculating the amount of a liable entity’s exemption is 0.133 MWh per tonne of long products of hot‑rolled carbon steel that: (a) is in coils or straight lengths; and (b) is generally produced in rod, bar and structural (section) mills; and (c) generally has a cross sectional shape such as I, T, Y, U, V, H, C, L, square, rectangular, round, flat, hexagonal, angle, channel, structural beam profile or rail profile; and (d) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (e) is produced from continuously cast carbon steel products that satisfy the requirements mentioned in subclause (8); and (f) is not a relevant product for the emissions‑intensive trade‑exposed activity of integrated iron and steel manufacturing that is conducted at a site that is not part of the activity group associated with the activity that is the subject of the application made under subsection 46A(1) of the Act; and (g) is not a relevant product for the emissions‑intensive trade‑exposed activity of the manufacture of carbon steel from cold ferrous feed; and (h) is of saleable quality. > Note 1: Activity group, carbon steel and relevant product are defined in regulation 22A. > Note 2: Saleable quality is defined in regulation 22C. (7) For the production of hot‑rolled carbon steel products that are flat products, the electricity baseline for calculating the amount of a liable entity’s exemption is 0.116 MWh per tonne of flat products of hot‑rolled carbon steel that: (a) is flat in profile, such as plate and hot rolled coil; and (b) is generally produced in hot strip mills and plate mills; and (c) is generally greater than 600 mm in width; and (d) is generally less than 150 mm in thickness; and (e) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (f) is produced from continuously cast carbon steel products that satisfy the requirements mentioned in subclause (8); and (g) is not a relevant product for the emissions‑intensive trade‑exposed activity of integrated iron and steel manufacturing that is conducted at a site that is not part of the activity group associated with the activity that is the subject of the application made under subsection 46A(1) of the Act; and (h) is not a relevant product for the emissions‑intensive trade‑exposed activity of the manufacture of carbon steel from cold ferrous feed; and (i) is of saleable quality. > Note 1: Activity group, carbon steel and relevant product are defined in regulation 22A. > Note 2: Saleable quality is defined in regulation 22C. (8) For paragraphs (6)(e) and (7)(f), the continuously cast carbon steel products must: (a) be produced as part of carrying on the emissions‑intensive trade‑exposed activity; or (b) be produced from the activity of integrated iron and steel manufacturing that is conducted at a site that is not part of the activity group associated with the activity that is the subject of the application made under subsection 46A(1) of the Act; or (c) be produced from the activity of manufacture of carbon steel from cold ferrous feed. > Note: Activity group and relevant product are defined in regulation 22A. ## Part 21—Manufacture of carbon steel from cold ferrous feed ### Division 1—Manufacture of carbon steel from cold ferrous feed #### 659 Manufacture of carbon steel from cold ferrous feed (1) The manufacture of carbon steel from cold ferrous feed is the physical and chemical transformation of cold ferrous feed (such as ferrous scrap, pig iron and flat iron) by heating and melting into liquid steel and the subsequent casting of the liquid steel to produce 1 or more of the following: (a) continuously cast carbon steel products; (b) ingots of carbon steel; (c) hot‑rolled carbon steel products, which commenced hot‑rolling at a temperature above 800 °C. (2) The manufacture of carbon steel from cold ferrous feed may also include the physical transformation of continuously cast carbon steel products into hot‑rolled carbon steel products which commenced hot‑rolling at a temperature above 800 °C where the continuously cast carbon steel products are produced: (a) at a site that: (i) conducts the activity of manufacture of carbon steel from cold ferrous feed; and (ii) is not a site that is part of the activity group associated with the activity that is the subject of the application made under subsection 46A(1) of the Act; or (b) from the activity of integrated iron and steel manufacturing. > Note: Activity group is defined in regulation 22A. (3) The manufacture of carbon steel from cold ferrous feed is specified as an emissions‑intensive trade‑exposed activity. > Note: Carbon steel is defined in regulation 22A. ### Division 2—Classification of activity #### 660 Classification of activity The manufacture of carbon steel from cold ferrous feed is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 661 Electricity baseline for product (1) For the production of either or both of continuously cast carbon steel products and ingots of carbon steel, the electricity baseline for calculating the amount of a liable entity’s exemption is 0.532 MWh per tonne of either or both continuously cast carbon steel products and ingots of carbon steel that: (a) are produced as part of carrying on the emissions‑intensive trade‑exposed activity; and (b) are not a relevant product for the emissions‑intensive trade‑exposed activity of integrated iron and steel manufacturing; and (c) are of a saleable quality. > Note 1: Carbon steel and relevant product are defined in regulation 22A. > Note 2: Saleable quality is defined in regulation 22C. (2) For the production of hot‑rolled carbon steel products which are long products, the electricity baseline for calculating the amount of a liable entity’s exemption is 0.133 MWh per tonne of long products of hot‑rolled carbon steel that: (a) is in coils or straight lengths; and (b) is generally produced in rod, bar and structural (section) mills; and (c) generally has a cross sectional shape such as I, T, Y, U, V, H, C, L, square, rectangular, round, flat, hexagonal, angle, channel, structural beam profile or rail profile; and (d) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (e) is produced from continuously cast carbon steel products that satisfy the requirements mentioned in subclause (4); and (f) is not a relevant product for the emissions‑intensive trade‑exposed activity of manufacture of carbon steel from cold ferrous feed that is conducted at a site that is not part of the activity group associated with the activity that is the subject of the application made under subsection 46A(1) of the Act; and (g) is not a relevant product for the emissions‑intensive trade‑exposed activity of integrated iron and steel manufacturing; and (h) is of saleable quality. > Note 1: Activity group, carbon steel and relevant product are defined in regulation 22A. > Note 2: Saleable quality is defined in regulation 22C. (3) For the production of hot‑rolled carbon steel products which are flat products, the electricity baseline for calculating the amount of a liable entity’s exemption is 0.116 MWh per tonne of flat products of hot‑rolled carbon steel that: (a) is flat in profile, such as plate and hot rolled coil; and (b) is generally produced in hot strip and plate mills; and (c) is generally greater than 600 mm in width; and (d) is generally less than 150 mm in thickness; and (e) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (f) is produced from continuously cast carbon steel products that satisfy the requirements mentioned in subclause (4); and (g) is not a relevant product for the emissions‑intensive trade‑exposed activity of manufacture of carbon steel from cold ferrous feed that is conducted at a site that is not part of the activity group associated with the activity that is the subject of the application made under subsection 46A(1) of the Act; and (h) is not a relevant product for the emissions‑intensive trade‑exposed activity of integrated iron and steel manufacturing; and (i) is of saleable quality. > Note 1: Carbon steel is defined in regulation 22A. > Note 2: Saleable quality is defined in regulation 22C. (4) For paragraphs (2)(e) and (3)(f), the continuously cast carbon steel products must: (a) be produced as part of carrying on the emissions‑intensive trade‑exposed activity; or (b) be produced from the activity of manufacture of carbon steel from cold ferrous feed that is conducted at a site that is not part of the activity group associated with the activity that is the subject of the application made under subsection 46A(1) of the Act; or (c) be produced from the activity of integrated iron and steel manufacturing. > Note: Activity group and relevant product are defined in regulation 22A. ## Part 22—Petroleum refining ### Division 1—Petroleum refining #### 662 Petroleum refining (1) Petroleum refining is the chemical and physical transformation of stabilised crude petroleum oil, which may be supplemented with 1 or more of condensate, tallow, vegetable oil, eligible petroleum feedstocks or other petroleum feedstocks, to produce a range of refined petroleum products through the following processes: (a) the distillation of stabilised crude petroleum oil, condensate, tallow, vegetable oil and other petroleum feedstocks; (b) the adjustment of the molecular weight and structure of hydrocarbons (such as that which occurs through catalytic or hydro‑cracking, steam or catalytic reforming, polymerisation, isomerisation or alkylation); (c) the blending of products from distillation and adjustment of molecular weight and structure to produce Australian and international standard diesel, jet fuel and unleaded petrol; (d) the production of 2 or more of the following refinery products saleable in Australian or international markets: (i) hydrogen; (ii) ethane; (iii) propane; (iv) refinery grade propylene; (v) polymer grade propylene; (vi) liquefied petroleum gas; (vii) butane; (viii) naphtha; (ix) aviation gasoline; (x) before oxygenate blend; (xi) kerosene; (xii) heating oil; (xiii) solvents; (xiv) lubricant base stocks; (xv) leaded petrol; (xvi) waxes; (xvii) bitumen. > Note: Condensate, eligible petroleum feedstocks, stabilised crude petroleum oil and unleaded petrol are defined in regulation 22A. (1A) The activity of petroleum refining only takes place in the application year if: (a) the application is for the amount of the exemption to be worked out under Division 5 of Part 3A (production calculation method) and subclause (2) applies; or (b) the application is for the amount of the exemption to be worked out under Division 5A of Part 3A (electricity use method) and subclause (2A) applies. (2) For the purposes of paragraph (1A)(a), this subclause applies in relation to the application year if: (a) each of the processes mentioned in paragraphs (1)(a) to (d) are conducted within the relevant financial year for the site; and (b) the combined volume of diesel, jet fuel, unleaded petrol, lubricant base stocks and bitumen at 15°C and 1 atmosphere produced from stabilised crude petroleum oil, condensate, tallow, vegetable oil and eligible petroleum feedstocks is: (i) for a site that does not meet the criteria specified in subregulation 22ZD(3) for a new entrant site and that is not part of an activity group—equal to or greater than 75% of the total kilolitres of stabilised crude petroleum oil, condensate, tallow, vegetable oil and eligible petroleum feedstocks used within the relevant financial year for the site; or (ii) for a site that does not meet the criteria specified in subregulation 22ZD(3) for a new entrant site and that is part of an activity group—equal to or greater than 75% of the total kilolitres of stabilised crude petroleum oil, condensate, tallow, vegetable oil and eligible petroleum feedstocks used within the relevant financial year for the sites that are part of the activity group; or (ii) for a site that does meet the criteria specified in subregulation 22ZD(3) for a new entrant site—is likely to be equal to or greater than 75% of the total kilolitres of stabilised crude petroleum oil, condensate, tallow, vegetable oil and eligible petroleum feedstocks likely to be used within the relevant financial year for the site. > Note: Activity group and relevant financial year are defined in regulation 22A. (2A) For the purposes of paragraph (1A)(b), this subclause applies in relation to the application year if: (a) each of the processes mentioned in paragraphs (1)(a) to (d) are conducted within the application year for the site; and (b) the combined volume of diesel, jet fuel, unleaded petrol, lubricant base stocks and bitumen at 15°C and 1 atmosphere produced from stabilised crude petroleum oil, condensate, tallow, vegetable oil and eligible petroleum feedstocks is: (i) for a site that is not part of an activity group—equal to or greater than 75% of the total kilolitres of stabilised crude petroleum oil, condensate, tallow, vegetable oil and eligible petroleum feedstocks likely to be used in the application year for the site; or (ii) for a site that is part of an activity group—equal to or greater than 75% of the total kilolitres of stabilised crude petroleum oil, condensate, tallow, vegetable oil and eligible petroleum feedstocks likely to be used in the application year for the sites that are part of the activity group. (3) The processes mentioned in paragraphs (1)(a) to (d) are not required to be conducted for every product mentioned in paragraphs (1)(c) and (d) for the activity of petroleum refining to occur in the application year. (4) Petroleum refining is specified as an emissions‑intensive trade‑exposed activity. (5) For this Part: > application year, for an application under subsection 46A(1) of the Act, means the year for which the application is made for under subsection 46A(1) of the Act. ### Division 2—Classification of activity #### 663 Classification of activity Petroleum refining is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 664 Electricity baseline for product (1) Subject to subclause (2), the electricity baseline for calculating the amount of a liable entity’s exemption in respect of petroleum refining is 0.0421 MWh per kilolitres of: (a) stabilised crude petroleum oil at 15 °C and 1 atmosphere; and (b) condensate at 15 °C and 1 atmosphere; and (c) tallow at 15 °C and 1 atmosphere; and (d) vegetable oil at 15 °C and 1 atmosphere; and (e) eligible petroleum feedstocks at 15 °C and 1 atmosphere. (2) A substance mentioned in paragraphs (1)(a) to (e) may be used for calculating the amount of a liable entity’s exemption for subclause (1) if the substance is, or is to be, refined: (a) by 1 or both of the processes mentioned in paragraphs 662(1)(a) and (b); and (b) into either of the following: (i) 1 or more petroleum products mentioned in paragraphs662 (1)(c) and (d); (ii) other by‑products which result from carrying on the emissions‑intensive trade‑exposed activity; and (c) in the financial year: (i) that applies, for the purpose of subregulation 22ZB(3), to the application made under subsection 46A(1) of the Act; and (ii) in which the combined volume of diesel, jet fuel, unleaded petrol, lubricant base stocks and bitumen, at 15 °C and 1 atmosphere, produced from substances mentioned in paragraphs (1)(a) to (e) is: (A) for new or expected additional production—likely to be equal to or greater than 75% of the total kilolitres of those substances likely to be used in the financial year; or (B) for production that is not new or expected additional production—equal to or greater than 75% of the total kilolitres of those substances used in the financial year. > Note: Condensate, eligible petroleum feedstocks, petroleum oil, stabilised crude and unleaded petrol are defined in regulation 22A. ## Part 23—Production of ethene (ethylene) ### Division 1—Production of ethene (ethylene) #### 665 Production of ethene (ethylene) (1) The production of ethene (ethylene) is the chemical transformation of hydrocarbons to produce ethene (ethylene (C2H4)) that has a concentration of ethene (ethylene (C2H4)) equal to or greater than 99%. (2) The production of ethene (ethylene) is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 666 Classification of activity The production of ethene (ethylene) is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 667 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of ethene (ethylene) is 0.275 MWh per tonne of 100% equivalent ethene (ethylene (C2H4)) that is contained within ethene that: (a) has a concentration of ethene (ethylene (C2H4)) equal to or greater than 99%; and (b) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (c) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 24—Production of polyethylene ### Division 1—Production of polyethylene #### 668 Production of polyethylene (1) The production of polyethylene is the chemical transformation of ethene (ethylene (C2H4)) to produce polyethylene with a standard density equal to or greater than 0.910 g/cm3. (2) The production of polyethylene is specified as an emissions‑intensive trade‑exposed activity. (3) For this Part: > standard density, for polyethylene, means the density of polyethylene moulded to a thickness of 1.9 mm using Procedure C of Annex A1 to ASTM D4703, as in force from time to time. ### Division 2—Classification of activity #### 669 Classification of activity The production of polyethylene is a moderately emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 670 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of polyethylene is 0.646 MWh per tonne of pelletised polyethylene that: (a) has a standard density equal to or greater than 0.910 g/cm3; and (b) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (c) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 25—Production of synthetic rutile ### Division 1—Production of synthetic rutile #### 671 Production of synthetic rutile (1) The production of synthetic rutile is the chemical transformation of ilmenite ore (ore containing FeTiO3) through the reduction of iron oxides in order to increase the titanium dioxide (TiO2) concentration to produce synthetic rutile that: (a) has a titanium dioxide (TiO2) concentration equal to or greater than 88% and less than 95.5%; and (b) has an iron (Fe) concentration greater than 0.5%. (2) The production of synthetic rutile is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 672 Classification of activity The production of synthetic rutile is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 673 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of synthetic rutile is 0.304 MWh per tonne of synthetic rutile that: (a) has a titanium dioxide (TiO2) concentration equal to or greater than 88% and less than 95.5%; and (b) has an iron (Fe) concentration greater than 0.5%; and (c) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (d) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 26—Production of manganese ### Division 1—Production of manganese #### 674 Production of manganese (1) The production of manganese is any of the following: (a) the physical and chemical transformation of manganese (Mn) ore into manganese sinter (Mn3O4) that has a concentration of manganese equal to or greater than 40%; (b) the physical and chemical transformation of either or both of manganese ore and manganese sinter into either or both of the following: (i) ferromanganese alloy that has a concentration of manganese equal to or greater than 67%; (ii) silicomanganese alloy that has a concentration of: (A) manganese equal to or greater than 60%; and (B) silicon (Si) equal to or greater than 12%. (2) The production of manganese is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 675 Classification of activity The production of manganese is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 676 Electricity baseline for product (1) For the production of manganese sinter, the electricity baseline for calculating the amount of a liable entity’s exemption is 0.0300 MWh per tonne of manganese sinter that: (a) has a concentration of manganese equal to or greater than 40%; and (b) is produced by, or as part of, carrying on the emissions‑intensive trade‑exposed activity; and (c) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. (2) For the production of ferromanganese alloy, the electricity baseline for calculating the amount of a liable entity’s exemption is 2.61 MWh per tonne of ferromanganese alloy that: (a) has a concentration of manganese equal to or greater than 67%; and (b) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (c) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. (3) For the production of silicomanganese alloy, the electricity baseline for calculating the amount of a liable entity’s exemption is 4.31 MWh per tonne of silicomanganese alloy that: (a) has a concentration of manganese equal to or greater than 60%; and (b) has a concentration of silicon (Si) equal to or greater than 12%; and (c) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (d) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 27—Production of clinker ### Division 1—Production of clinker #### 677 Production of clinker (1) The production of clinker is the physical and chemical transformation of: (a) either or both of calcium carbonate compounds (limestone (CaCO3)) and other calcium carbonate (CaCO3) feedstocks; and (b) any of the following: (i) clay; (ii) clay mixed with 1 or more feedstocks that contain 1 or more of the following: (A) silicon dioxide (SiO2); (B) iron (Fe); (C) aluminium oxide (alumina (Al2O3)); (iii) 1 or more feedstocks that, when combined, contain all of the following: (A) silicon dioxide (SiO2); and (B) iron (Fe); and (C) aluminium oxide (alumina (Al2O3)); that are fused together at a temperature above 1000 °C into Portland cement clinker. (1A) The production process may or may not involve the physical transformation of Portland cement clinker into cement through a process of comminution with gypsum or other additives. However, the process must involve the production of clinker as described in subclause (1). (2) The Portland cement clinker must: (a) have a concentration of calcium silicates equal to or greater than 60%; and (b) have a concentration of magnesium oxide (MgO) equal to or less than 4.5%; and (c) be useable in the making of Portland cement. (3) The production of clinker is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 678 Classification of activity The production of clinker is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 679 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of clinker is 0.1252 MWh per tonne of Portland cement clinker on a dry weight basis that: (a) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (b) has a concentration of calcium silicates equal to or greater than 60%; and (c) has a concentration of magnesium oxide (MgO) equal to or less than 4.5%; and (d) is useable in the making of Portland cement; and (e) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 28—Production of lime ### Division 1—Production of lime #### 680 Production of lime (1) The production of lime is the physical and chemical transformation, through the calcining process, of calcium and magnesium sources (such as calcium carbonate (CaCO3) and magnesium carbonate (MgCO3)) into lime that has a concentration of either or both of calcium oxide (CaO) and magnesium oxide (MgO) equal to or greater than 60%. (2) The production of lime is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 681 Classification of activity The production of lime is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 682 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of lime is 0.0476 MWh per tonne of lime on a dry weight basis that: (a) has a concentration of either or both of calcium oxide (CaO) and magnesium oxide (MgO) equal to or greater than 60%; and (b) is not a relevant product for the emissions‑intensive trade‑exposed activity of integrated iron and steel manufacturing; and (c) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (d) is of saleable quality. > Note 1: Relevant product is defined in regulation 22A. > Note 2: Saleable quality is defined in regulation 22C. ## Part 29—Production of fused alumina ### Division 1—Production of fused alumina #### 683 Production of fused alumina (1) The production of fused alumina is the physical transformation of alumina (aluminium oxide (Al2O3)) by heating it to its fusion point to produce fused alumina that: (a) has an alpha alumina crystalline structure; and (b) has a concentration of aluminium oxide equal to or greater than 99.0%. (2) The production of fused alumina is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 684 Classification of activity The production of fused alumina is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 685 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of fused alumina is 2.03 MWh per tonne of fused alumina (aluminium oxide (Al2O3)) that: (a) has an alpha alumina crystalline structure; and (b) has a concentration of aluminium oxide equal to or greater than 99.0%; and (c) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (d) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 30—Production of copper ### Division 1—Production of copper #### 686 Production of copper (1) The production of copper is either or both of the following: (a) the physical and chemical transformation of concentrated mineralised copper compounds into either or both of the following: (i) copper cathode that has a concentration of copper greater than 99.90%; (ii) copper anode that has a concentration of copper: (A) equal to or greater than 99.00%; and (B) equal to or less than 99.90%; (b) the physical and chemical transformation of copper anode into copper cathode that has a concentration of copper greater than 99.90% where the copper anode: (i) has a concentration of copper: (A) equal to or greater than 99.00%; and (B) equal to or less than 99.90%; and (ii) was not produced as part of the transformation in subparagraph (a)(i). (2) For subclause (1), concentrated mineralised copper compounds include: (a) copper sulphide concentrates; and (b) copper electrolyte solution. (3) The production of copper is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 687 Classification of activity The production of copper is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 688 Electricity baseline for product (1) For the production of copper cathode from concentrated mineralised copper compounds, the electricity baseline for calculating the amount of a liable entity’s exemption is 1.69 MWh per tonne of copper cathode that: (a) has a concentration of copper greater than 99.90%; and (b) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (c) is not transformed into copper cathode as part of the transformation mentioned in paragraph 686(1)(b); and (d) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. (2) For the production of copper anode from concentrated mineralised copper compounds, the electricity baseline for calculating the amount of a liable entity’s exemption is 1.31 MWh per tonne of copper anode that: (a) has a concentration of copper: (i) equal to or greater than 99.00%; and (ii) equal to or less than 99.90%; and (b) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (c) is not subsequently transformed into copper cathode as part of the transformation mentioned in subparagraph 686(1)(a)(i); and (d) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. (3) For the production of copper cathode from copper anode, the electricity baseline for calculating the amount of a liable entity’s exemption is 0.387 MWh per tonne of copper cathode that: (a) has a concentration of copper equal to or greater than 99.90%; and (b) is produced from copper anode that was not produced as part of the transformation mentioned in subparagraph 686(1)(a)(i); and (c) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (d) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 31—Production of carbamide (urea) ### Division 1—Production of carbamide (urea) #### 689 Production of carbamide (urea) (1) The production of carbamide (urea (CO(NH2)2)) is the chemical transformation of carbon dioxide (CO2) and anhydrous ammonia (NH3) to produce carbamide solution (urea (CO(NH2)2(aq))) that: (a) has a concentration of carbamide (urea (CO(NH2)2)) equal to or greater than 80%; and (b) is subsequently used to produce either or both of: (i) carbamide solutions (urea (CO(NH2) 2(aq))); and (ii) saleable granulated, prilled or other solid forms of carbamide (urea (CO(NH2) 2(s))). (2) The production of carbamide (urea) is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 690 Classification of activity The production of carbamide (urea) is a moderately emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 691 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of carbamide (urea) is 0.285 MWh per tonne of 100% equivalent carbamide (urea (CO(NH2)2)) on a dry weight basis that is: (a) contained within either of the following products: (i) carbamide solutions (urea (CO(NH2)2(aq))); (ii) saleable, granulated, prilled or other solid forms of carbamide (urea (CO(NH2)2(s))); and (b) produced by carrying on the emissions‑intensive trade exposed activity; and (c) of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 32—Production of sodium carbonate (soda ash) and sodium bicarbonate ### Division 1—Production of sodium carbonate (soda ash) and sodium bicarbonate #### 692 Production of sodium carbonate (soda ash) and sodium bicarbonate (1) The production of sodium carbonate (soda ash) and sodium bicarbonate is the chemical and physical transformation of calcium carbonate (CaCO3), sodium chloride (salt (NaCl)), ammonia (NH3) and carbon bearing materials (such as coke) into 1 or more of the following: (a) light sodium carbonate (light soda ash (Na2CO3)) which has a concentration of sodium carbonate (soda ash (Na2CO3)) equal to or greater than 98.0%; (b) dense sodium carbonate (dense soda ash (Na2CO3)) which has a concentration of sodium carbonate (soda ash (Na2CO3)) equal to or greater than 97.5%; (c) refined sodium bicarbonate (NaHCO3) which has a concentration of sodium bicarbonate (NaHCO3) equal to or greater than 95.0%. (2) The production of sodium carbonate (soda ash) and sodium bicarbonate is specified as an emissions‑intensive trade exposed activity. ### Division 2—Classification of activity #### 693 Classification of activity The production of sodium carbonate (soda ash) and sodium bicarbonate is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 694 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of sodium carbonate (soda ash) and sodium bicarbonate is 0.130 MWh per tonne of 1 or more of the following: (a) light sodium carbonate (light soda ash (Na2CO3)) that: (i) has a concentration of sodium carbonate (soda ash (Na2CO3)) equal to or greater than 98.0%; and (ii) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (iii) is of saleable quality; (b) dense sodium carbonate (dense soda ash (Na2CO3)) that: (i) has a concentration of sodium carbonate (soda ash (Na2CO3)) equal to or greater than 97.5%; and (ii) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (iii) is of saleable quality; (c) refined sodium bicarbonate (NaHCO3) that: (i) has a concentration of sodium bicarbonate (NaHCO3) equal to or greater than 95.0%; and (ii) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (iii) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 33—Production of ammonia ### Division 1—Production of ammonia #### 695 Production of ammonia The production of ammonia is the chemical transformation of hydrocarbons (or other hydrogen feedstock) to hydrogen (H2) that is subsequently reacted with nitrogen (N2) to produce anhydrous ammonia (NH3) that has a concentration of ammonia (NH3) equal to or greater than 98%. ### Division 2—Classification of activity #### 696 Classification of activity The production of ammonia is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 697 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of ammonia is 0.224 MWh per tonne of 100% equivalent anhydrous ammonia (NH3) contained within anhydrous ammonia that: (a) has a concentration of ammonia equal to or greater than 98%; and (b) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (c) is of saleable quality. > Note: Saleable quality is defined in regulation 22C ## Part 34—Production of ammonium nitrate ### Division 1—Production of ammonium nitrate #### 698 Production of ammonium nitrate The production of ammonium nitrate is the chemical transformation of anhydrous ammonia (NH3) to ammonium nitrate solution (NH4NO3(aq)) that has a concentration of ammonium nitrate (NH4NO3) equal to or greater than 60%. ### Division 2—Classification of activity #### 699 Classification of activity The production of ammonium nitrate is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 700 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of ammonium nitrate is 0.114 MWh per tonne of 100% equivalent ammonium nitrate (NH4NO3) contained within ammonium nitrate solution (NH4NO3(aq)) that: (a) has a concentration of ammonium nitrate (NH4NO3) equal to or greater than 60%; and (b) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (c) is of saleable quality. > Note: Saleable quality is defined in regulation 22C ## Part 35—Production of chlorine gas and sodium hydroxide (caustic soda) solution ### Division 1—Production of chlorine gas and sodium hydroxide (caustic soda) solution #### 701 Production of chlorine gas and sodium hydroxide (caustic soda) solution (1) The production of chlorine gas and sodium hydroxide solution (caustic soda solution (NaOH(aq))) is the chemical transformation of sodium chloride solution (NaCl(aq)) brine to chlorine (Cl2(1,g)) and sodium hydroxide solution (caustic soda solution (NaOH(aq))) that has a concentration of sodium hydroxide (NaOH) equal to or greater than 14%. (2) The production of sodium hydroxide (NaOH) must be 1:1.13 times the produced weight of chlorine (Cl2). (3) The following chemical reaction must be involved in the chemical transformation: . ### Division 2—Classification of activity #### 702 Classification of activity The production of chlorine gas and sodium hydroxide solution (caustic soda solution (NaOH(aq))) is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 703 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of chlorine gas and sodium hydroxide solution (caustic soda solution (NaOH(aq))) is 2.67 MWh per tonne of 100% equivalent sodium hydroxide (caustic soda (NaOH)) on a dry weight basis that: (a) is not recycled back into the emissions‑intensive trade‑exposed activity (such as a stream of sodium hydroxide solution (caustic soda solution NaOH(aq)) recycled back into the chemical treatment step); and (b) is contained within the sodium hydroxide solution produced by carrying on the emissions‑intensive trade‑exposed activity. ## Part 36—Production of fused zirconia ### Division 1—Production of fused zirconia #### 704 Production of fused zirconia The production of fused zirconia is the physical and chemical transformation of zircon (ZrSiO4) by: (a) the removal of silica (silicon dioxide (SiO2)) using a reductant such as carbon; and (b) heating the zircon to its fusion point; to produce fused zirconia (zirconium dioxide (ZrO2)) that has a concentration of zirconium dioxide (ZrO2) equal to or greater than 96%. ### Division 2—Classification of activity #### 705 Classification of activity The production of fused zirconia is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 706 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of fused zirconia is 6.07 MWh per tonne of fused zirconia (zirconium dioxide (ZrO2)) that: (a) has a concentration of zirconium dioxide (ZrO2) equal to or greater than 96%; and (b) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (c) is of saleable quality. > Note: Saleable quality is defined in regulation 22C ## Part 37—Production of iron ore pellets ### Division 1—Production of iron ore pellets #### 707 Production of iron ore pellets The production of iron ore pellets is the physical and chemical transformation of iron ore to produce saleable iron ore pellets that are for the production of steel and that have: (a) a concentration of iron (Fe) equal to or greater than 63%; and (b) a concentration of alumina (aluminium oxide (Al2O3)) equal to or less than 2%; and (c) a concentration of silicon dioxide (silica (SiO2)) equal to or less than 7%; and (d) an average diameter of between 9 and 16 millimetres. ### Division 2—Classification of activity #### 708 Classification of activity The production of iron ore pellets is a moderately emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 709 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of iron ore pellets is 0.0498 MWh per tonne of iron ore pellets on a dry weight basis that: (a) have a concentration of iron (Fe) equal to or greater than 63%; and (b) have a concentration of alumina (aluminium oxide (Al2O3)) equal to or less than 2%; and (c) have a concentration of silicon dioxide (silica (SiO2)) equal to or less than 7%; and (d) have an average diameter of between 9 and 16 millimetres; and (e) are not a relevant product for the emissions‑intensive trade‑exposed activity of integrated iron and steel manufacturing; and (f) are produced by carrying on the emissions‑intensive trade‑exposed activity; and (g) are of saleable quality. > Note 1: Relevant product is defined in regulation 22A. > Note 2: Saleable quality is defined in regulation 22C ## Part 38—Production of liquefied natural gas ### Division 1—Production of liquefied natural gas #### 710 Production of liquefied natural gas The production of liquefied natural gas is the physical transformation of natural gas (in a gaseous state) into liquefied natural gas that has a concentration of methane (CH4) equal to or greater than 70%. ### Division 2—Classification of activity #### 711 Classification of activity The production of liquefied natural gas is a moderately emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 712 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of liquefied natural gas is 0.0640 MWh per tonne of liquefied natural gas that: (a) has a concentration of methane (CH4) equal to or greater than 70%; and (b) is produced as part of carrying on the emissions‑intensive trade‑exposed activity; and (c) is transported (either as a gas or liquid) away from the facility where the natural gas was liquefied and not taken back to that facility. > Note: A tonne of liquefied natural gas transported away from the facility does not include any liquefied natural gas that is transferred to the transportation vessel but boils off and returns to the facility. ## Part 39—Production of magnetite concentrate ### Division 1—Production of magnetite concentrate #### 713 Production of magnetite concentrate The production of magnetite concentrate is the physical transformation of magnetite ore (ore containing Fe3O4 that has a key property of ferrimagnetism) to produce saleable magnetite (Fe3O4) concentrate that: (a) has a concentration of iron (Fe) equal to or greater than 60% of the concentrate on a dry weight basis; and (b) has a particle size of less than 75 microns for at least 80% of the concentrate. > Note: Ferrimagnetism is ions of iron (Fe2+ and Fe3+) spontaneously aligning in the sublattice of a crystalline solid to produce a net magnetic moment that is observed as permanent magnetisation of the solid at normal room temperature. ### Division 2—Classification of activity #### 714 Classification of activity The production of magnetite concentrate is a moderately emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 715 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of magnetite concentrate is 0.0826 MWh per tonne of 100% equivalent iron (Fe) contained within magnetite (Fe3O4) concentrate that: (a) has a concentration of iron (Fe) equal to or greater than 60% of the concentrate on a dry weight basis; and (b) has a particle size of less than 75 microns for at least 80% of the concentrate; and (c) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (ca) is not a relevant product for the emissions‑intensive trade‑exposed activity of the production of ferrovanadium; and (d) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 40—Production of glass beads ### Division 1—Production of glass beads #### 716 Production of glass beads The production of glass beads is the physical and chemical transformation of either or both of the following: (a) recycled materials (such as cullet); (b) all of the following: (i) silicon dioxide (SiO2, silica); (ii) sodium carbonate (Na2CO3, soda ash); (iii) any other raw materials; through a crushing, sieving and firing process into saleable, solid, spherical glass beads where the refractive index is at least 1.50 and the size is smaller than 2 millimetres. ### Division 2—Classification of activity #### 717 Classification of activity The production of glass beads is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 718 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of solid glass beads is 0.400 MWh per tonne of solid glass beads on a dry weight basis that: (a) have a refractive index of at least 1.50; and (b) have a size smaller than 2 millimetres; and (c) are produced by carrying on the emissions‑intensive trade‑exposed activity; and (d) are of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 41—Production of sodium silicate glass ### Division 1—Production of sodium silicate glass #### 719 Production of sodium silicate glass The production of sodium silicate glass is the physical and chemical transformation of silicon dioxide (SiO2, silica) and sodium carbonate (Na2CO3, soda ash) into saleable sodium silicate glass where the concentration of sodium silicate (Na2SiO3) is at least 99% with respect to mass. ### Division 2—Classification of activity #### 720 Classification of activity The production of sodium silicate glass is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 721 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of sodium silicate glass is 0.0205 MWh per tonne of sodium silicate glass on a dry weight basis that: (a) has a concentration of sodium silicate (Na2SiO3) that is at least 99% with respect to mass; and (b) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (c) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 42—Production of polymer grade propene (polymer grade propylene) ### Division 1—Production of polymer grade propene (polymer grade propylene) #### 722 Production of polymer grade propene (polymer grade propylene) The production of polymer grade propene (C3H6, polymer grade propylene) is the physical transformation of hydrocarbons that have a concentration of propene (C3H6, propylene) between 45% and 85% with respect to mass (inclusive) to polymer grade propene (polymer grade propylene) that has a concentration of propene (propylene) of at least 98% with respect to mass. ### Division 2—Classification of activity #### 723 Classification of activity The production of polymer grade propene (C3H6, polymer grade propylene) is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 724 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of polymer grade propene (C3H6, polymer grade propylene) is 0.220 MWh per tonne of 100% equivalent propene contained within polymer grade propene (C3H6, propylene) that: (a) has a concentration of propene that is at least 98% with respect to mass; and (b) is produced by carrying on the emissions‑intensive trade‑exposed activity. ## Part 43—Production of rolled aluminium ### Division 1—Production of rolled aluminium #### 725 Production of rolled aluminium The production of rolled aluminium is the chemical and physical transformation of either or both of primary aluminium metal and secondary aluminium metal with alloying metals into coiled aluminium sheet of saleable quality with a concentration of aluminium of at least 90% with respect to mass, and with a thickness no more than 6 millimetres. ### Division 2—Classification of activity #### 726 Classification of activity The production of rolled aluminium is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 727 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of rolled aluminium is 0.982 MWh per tonne of coiled aluminium sheet that: (a) has a concentration of aluminium of at least 90% with respect to mass; and (b) has a thickness no more than 6 millimetres measured after the finishing process is complete; and (c) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (d) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 44—Manufacture of reconstituted wood‑based panels ### Division 1—Manufacture of reconstituted wood‑based panels #### 728 Manufacture of reconstituted wood‑based panels The manufacture of reconstituted wood‑based panels is the physical and chemical transformation of wood, including wood particles and residues (such as chips, shavings and sawdust) into a reconstituted wood‑based panel that: (a) has a density of greater than 500 kg a cubic metre; and (b) has individual wood particles or fibres with an average maximum dimension of no more than 30 mm. > Note: Examples of reconstituted wood‑based panels are particleboard and medium density fibreboard. ### Division 2—Classification of activity #### 729 Classification of activity The manufacture of reconstituted wood‑based panels is a moderately emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 730 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the manufacture of reconstituted wood‑based panels is 0.372 MWh per tonne of raw reconstituted wood‑based panel that: (a) has a density of greater than 500 kg a cubic metre; and (b) has individual wood particles or fibres with an average maximum dimension of no more than 30 mm; and (c) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (d) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 45—Production of coke oven coke ### Division 1—Production of coke oven coke #### 731 Production of coke oven coke The production of coke oven coke is the physical and chemical transformation (at a temperature higher than 900 °C) of coal into coke oven coke that: (a) has a coke strength after reaction (CSR) value of at least 50% for at least 80% of the coke oven coke produced; and (b) has a coke reactivity index (CRI) value of no more than 40% for at least 80% of the coke oven coke produced. ### Division 2—Classification of activity #### 732 Classification of activity The production of coke oven coke is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 733 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of coke oven coke is 0.0109 MWh per tonne of coke oven coke on a dry weight basis that: (a) has a coke strength after reaction (CSR) value of at least 50% for at least 80% of the coke oven coke produced; and (b) has a coke reactivity index (CRI) value of no more than 40% for at least 80% of the coke oven coke produced; and (c) is not a relevant product for the emissions‑intensive trade‑exposed activity of integrated iron and steel manufacturing; and (d) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (e) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 46—Production of hydrogen peroxide ### Division 1—Production of hydrogen peroxide #### 734 Production of hydrogen peroxide The production of hydrogen peroxide is the chemical transformation of hydrogen (H) feedstocks and oxygen (O) feedstocks: (a) to produce crude aqueous hydrogen peroxide solution that has a concentration of hydrogen peroxide (H2O2(aq)) of at least 39% with respect to mass; and (b) to later produce saleable aqueous hydrogen peroxide solution that has a concentration of hydrogen peroxide (H2O2(aq)) of at least 34% with respect to mass. ### Division 2—Classification of activity #### 735 Classification of activity The production of hydrogen peroxide is a moderately emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 736 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of hydrogen peroxide is 0.858 MWh per tonne of 100% equivalent hydrogen peroxide in saleable aqueous hydrogen peroxide solution that: (a) has a concentration of hydrogen peroxide (H2O2(aq)) of at least 34% with respect to mass; and (b) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (c) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 47—Production of ceramic floor and wall tiles ### Division 1—Production of ceramic floor and wall tiles #### 737 Production of ceramic floor and wall tiles The production of ceramic floor and wall tiles is the physical and chemical transformation of raw clay and other raw materials, such as feldspar and quartz, into saleable ceramic floor and wall tiles that conform to ISO 13006:2012 (issued by the International Organization for Standardization), or an equivalent standard, as in force when the tiles are produced. > Note: ISO 13006:2012 is published at www.iso.org. ### Division 2—Classification of activity #### 738 Classification of activity The production of ceramic floor and wall tiles is a moderately emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 739 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of ceramic floor and wall tiles is 0.221 MWh per tonne of ceramic floor and wall tiles that: (a) conform to ISO 13006:2012; and (b) are produced by carrying on the emissions‑intensive trade‑exposed activity; and (c) are of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 48—Production of nickel ### Division 1—Production of nickel #### 740 Production of nickel (1) The production of nickel is the chemical and physical transformation of either or both of: (a) nickel bearing inputs into intermediate nickel products, primary nickel products or cobalt products; (b) intermediate nickel products into primary nickel products or cobalt products. (2) In this Part: > cobalt products means: (a) cobalt hydroxide (Co(OH)2) or cobalt oxyhydroxide (CoOOH) where the concentration of cobalt is at least 65% with respect to mass, measured on a dry weight basis; and (b) cobalt (Co) where the concentration of cobalt is at least 99% cobalt with respect to mass, measured on a dry weight basis. > intermediate nickel products means the following outputs of saleable quality from a nickel production process that are suitable for further refining: (a) nickel matte where the concentration of nickel is at least 64% nickel with respect to mass, measured on a dry weight basis; (b) mixed nickel‑cobalt hydroxide precipitate where the concentration of nickel is between 35% and 47% with respect to mass, measured on a dry weight basis; (c) basic nickel carbonate (Ni3(CO3)(OH)4) where the concentration of nickel is between 40% and 45% with respect to mass, measured on a dry weight basis; (d) nickel sulphide concentrate (NiS) where the concentration of nickel is between 6.5% and 29% with respect to mass, measured on a dry weight basis. > nickel bearing inputs means mineralised nickel ores and low grade nickel waste products that require equivalent processing to mineralised nickel ores to produce intermediate or primary nickel products. > primary nickel products means: (a) basic nickel carbonate (Ni3(CO3)(OH)4) where the concentration of nickel is at least 50% nickel with respect to mass, measured on a dry weight basis; and (b) nickel oxide (NiO) where the concentration of nickel is at least 78% nickel with respect to mass, measured on a dry weight basis; and (c) nickel (Ni) where the concentration of nickel is at least 98% nickel with respect to mass, measured on a dry weight basis. ### Division 2—Classification of activity #### 741 Classification of activity The production of nickel is a moderately emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 742 Electricity baseline for product (1) The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of nickel is the following: (a) 9.29 MWh per tonne of 100% equivalent nickel, measured on a dry weight basis, contained in primary nickel products produced from nickel bearing inputs; (b) 6.45 MWh per tonne of 100% equivalent nickel, measured on a dry weight basis, contained in intermediate nickel products produced from nickel bearing inputs that are not subsequently transformed into primary nickel products at the same facility; (c) 2.84 MWh per tonne of 100% equivalent nickel, measured on a dry weight basis, contained in primary nickel products produced from intermediate nickel products that have not been produced at the same facility; (d) 8.89 MWh per tonne of 100% equivalent cobalt, measured on a dry weight basis, contained in cobalt products. (2) The production of nickel mentioned in subclause (1) is nickel that: (a) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (b) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 49—Production of helium ### Division 1—Production of helium #### 743 Production of helium The production of helium is the chemical and physical transformation of a gas mixture that has a mole fraction of helium of no more than 10% to a product with a mole fraction of helium of at least 99%. ### Division 2—Classification of activity #### 744 Classification of activity The production of helium is a moderately emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 745 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of helium is 36.5 MWh per tonne of 100% equivalent helium that: (a) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (b) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 50—Production of dried distillers grains with solubles ### Division 1—Production of dried distillers grains with solubles #### 746 Production of dried distillers grains with solubles The production of dried distillers grains with solubles is the physical and chemical transformation of either or both of: (a) condensed distillers solubles with a moisture content equal to or more than 55%; (b) wet distillers grains with a moisture content equal to or more than 60%; into dried distillers grains with solubles of saleable quality with a moisture content equal to or less than 12% and a protein content equal to or more than 20% (on a dry solids basis). ### Division 2—Classification of activity #### 747 Classification of activity The production of dried distillers grains with solubles is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 748 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of dried distillers grains with solubles is 0.0785 MWh per tonne of dried distillers grains with solubles that: (a) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (b) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 51—Production of glass wool ### Division 1—Production of glass wool #### 749 Production of glass wool (1) The production of glass wool is the chemical and physical transformation, through a melting, fiberising, binding and curing process, of either or both of the following: (a) recycled materials (such as cullet); (b) silicon dioxide (SiO2, silica); and both of the following: (c) sodium carbonate (Na2CO3, soda ash); (d) other raw materials; into saleable glass wool. (2) The production of glass wool is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 750 Classification of activity The production of glass wool is a moderately emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 751 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of glass wool is 1.78 MWh per tonne of glass wool that: (a) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (b) is of saleable quality. Note: Saleable quality is defined in regulation 22C. ## Part 52—Production of coal char ### Division 1—Production of coal char #### 752 Production of coal char (1) The production of coal char is the chemical and physical transformation of coal or a coal based input at a temperature higher than 700 °C, into coal char that, on a dry weight basis: (a) has volatile matter of less than 2% after production; and (b) has a fixed carbon content equal to or more than 92% after production. (2) The production of coal char is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 753 Classification of activity The production of coal char is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 754 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of coal char is 0.120 MWh per tonne of coal char that: (a) has volatile matter of less than 2% after production; and (b) has a fixed carbon content equal to or more than 92% after production; and (c) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (d) is of saleable quality. Note: Saleable quality is defined in regulation 22C. ## Part 53—Production of ferrovanadium ### Division 1—Production of ferrovanadium #### 755 Production of ferrovanadium (1) The production of ferrovanadium is the chemical and physical transformation of magnetite ore, combined with soda ash and other chemicals, to produce ferrovanadium with a vanadium content equal to or more than 75%. (2) The production of ferrovanadium is specified as an emissions‑intensive trade‑exposed activity. (3) In this regulation: > magnetite ore means ore containing Fe3O4 and mineralised vanadium compounds. ### Division 2—Classification of activity #### 756 Classification of activity The production of ferrovanadium is a highly emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 757 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the production of ferrovanadium is 58.7 MWh per tonne of 100% equivalent vanadium concentrate contained within ferrovanadium, in which the concentration of vanadium is equal to or more than 75%, which: (a) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (b) is not a relevant product for the emissions‑intensive trade‑exposed activity of the production of magnetite concentrate; and (c) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 54—Rendering of animal by‑products ### Division 1—Rendering of animal by‑products #### 758 Rendering of animal by‑products (1) The rendering of animal by‑products is the chemical and physical transformation of raw livestock‑derived animal material into processed animal protein meal with a moisture content that does not exceed 10% by weight and tallow with a moisture content that does not exceed 4% by weight. > Note: Examples of processed animal protein meal include meat and bone meal, dried blood meal and feather meal. (2) The rendering of animal by‑products is specified as an emissions‑intensive trade‑exposed activity. ### Division 2—Classification of activity #### 759 Classification of activity The rendering of animal by‑products is a moderately emissions‑intensive activity. ### Division 3—Electricity baseline for calculating exemption #### 760 Electricity baseline for product The electricity baseline for calculating the amount of a liable entity’s exemption in respect of the rendering of animal by‑products is 0.248 MWh per tonne of processed animal protein meal with a moisture content that does not exceed 10% by weight, which: (a) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (b) is of saleable quality. > Note: Saleable quality is defined in regulation 22C. ## Part 55—Production of hydrogen by electrolysis ### Division 1—Production of hydrogen by electrolysis #### 761 Production of hydrogen by electrolysis (1) The production of hydrogen is the physical and chemical transformation of water (H2O) into hydrogen (H2) and oxygen (O2) via a splitting process by electrolysis to produce saleable hydrogen (H2) of at least 99% purity. (2) The production process may involve the process of purification, compression, drying or liquefaction of hydrogen. (3) The production of hydrogen by electrolysis is specified as an emissions‑intensive trade‑exposed activity. > Note: There is no Division 2 or 3 for this Part.