Aracruz – 2007 GHG Emissions

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Aracruz Celulose 2007 Greenhouse Gas Inventory

©2004 ICF Resources LLC All Rights Reserved

Team Members

ICF International:

Aracruz Celulose:

Craig Ebert Augusto Mello Ricardo Vianna Letícia Roxo Pedro Amaral Laura Pereira André Valente

Adriana Leandra de Assis Clovis Zimmer Delcio Leonam Froes Arndt Fabio Rogerio Ribeiro Gleice Donini de Souza Joao Lages Neto Marcelo Martins V.De Carvalho Marcia Maria Franco da Costa Maurem Kayna Lima Alves Rosana Silveira da Silva Sergio Gomes Del Caro

Contacts: Tel: (5521) 2117-2550 Fax: (5521) 2132-7354 e-mail: [email protected] www.icfi.com

2

Results for 2007





This report presents the main results of Aracruz’ Greenhouse Gas Inventory for the year of 2007, including the following: •

GHG inventories for Aracruz at both facilities (i.e. Riacho and Guaíba) and corporate levels for 2007; and



Forest carbon inventories for the commercial forests owned by Aracruz in Riacho and in Guaíba for the beginning and end of 2007 in order to quantify the carbon stock change over the period.

For definitions, approach, calculations and any other information related to Aracruz’ Inventory development, please refer the Aracruz GHG Protocol and the workbooks. Nevertheless, a brief description of the main terms and expressions utilized in this report can be found in the following.

3

Definitions and concepts



Seeking for compatibility with international practices, the greenhouse gas potentials (GWPs) established by IPCC1 are applied to convert greenhouse gas - GHGs into an individual unit of carbon dioxide equivalent - CO2e. The CO2e was used on Aracruz’ Greenhouse Gas Inventory to express the total GHG emission of each source, facility and the company itself.



The concept of scope, suggested by WRI2/WBCSD3 GHG Protocol, intends to support companies in establishing its operational boundaries to be accounted. All three existing scopes are included in Aracruz’ Greenhouse Gas Inventory: •

Scope 1: Direct GHG emissions – Company-owned (physical) GHG emissions including emissions from fuel combustion, manufacturing processes and company-owned transportation.



Scope 2: Indirect GHG emissions - Net emissions from energy imports and exports; for example, imported and exported electricity and steam.



Scope 3: Other indirect GHG emissions – All other sources of emissions possibly attributable to a company’s actions. In this scope, transportations in vehicles not owned by the company were included and waste management activities that were not conduced by Aracruz.

1. Intergovernmental Panel on Climate Change 2. World Resource Institute 3. World Business Council for Sustainable Development

4

Definitions and concepts



Mobile Sources: include all GHG emission sources of equipments utilized on transportation, extraction, and other activities without any specific location.



Stationary Sources: include all GHG emission sources due to processes/fixed equipments.

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Barra do Riacho

 2007 GHG Emissions by Source Category  2007 GHG Emission Intensity at the Process Lines and Facility Level

6

Riacho – 2007 GHG Emissions from Stationary Sources Fossil Fuels (Scope 1) Emissions (metric tonnes)

Consumption Source - Scope 1 GJ Natural Gas Fossil Fuel

Stationary

Heavy Oil (LTF) Subtotal

CO2

CH4

N2O

CO2e

3,229,167.5

181,156.3

3.2

0.3

181,324.2

783,896.5

60,673.6

2.4

0.5

60,868.8

4,013,064.1

241,829.9

5.6

0.8

242,193.0



Natural gas was the largest direct GHG source in Riacho. It accounted for 75% of emissions from fossil fuels in stationary sources and considering all directs sources, responded for 36% of emissions.



Heavy oil (Low Temperature Fluidity) was a secondary fuel in 2007. However its combustion also represented a large GHG source with 12% of total directs emissions in Riacho.



242,193.0 t CO2e were emitted from combustion of natural gas and heavy oil in 2007.

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Riacho – 2007 GHG Emissions from Stationary Sources Biomass Fuels (Scope 1) Emissions (metric tonnes)

Consumption Source - Scope 1 GJ Black Liquor Biomass

Stationary

Woodwaste & Bark Subtotal

CO2

CH4

N2O

CO2e

39,998,565.5

120.0

80.0

27,319.0

5,628,435.4

168.9

22.5

10,525.2

45,627,000.9

288.8

102.5

37,844.2



Biomass fuel is a very important energy source in Riacho. In 2007, black liquor supplied more than 78% of Riacho’s energy requirement while wood waste and bark supplied about 11% of it. However, biomass fuels are deemed biogenic and the associated CO2 emissions are not included in the corporate GHG inventory; only CH4 and N2O are included.



Therefore, despite the intensive use of biomass fuels, they were attributable to only 37,844.2 t CO2e in 2007.

8

Riacho – 2007 GHG Emissions - Fossil vs. Biomass Fuels Riacho 2007 - Energy Consumption Stationary Sources (Scope 1)







As discussed before, biomass fuels generated a vast majority (92%) of the energy use in Riacho in 2007.

Fossil Fuel 8%

However, biomass fuels only contributed to 14% of the total direct GHG emissions from stationary combustion sources due to the fact that the climate-neutral CO2 emissions from biomass were excluded from the corporate GHG inventory. On the contrary, fossil fuels only supplied 8% of Riacho’s energy requirement but they accounted for 86% of the total direct GHG emissions from stationary combustion sources.

Biomass 92%

Riacho 2007 - GHG Emissions Stationary Sources (Scope 1)

Biomass 14%

Fossil Fuel 86%

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Riacho – 2007 GHG Emissions from Mobile Sources Fossil Fuels (Scope 1) Emissions (metric tonnes)

Consumption Source - Scope 1 GJ Gasoline Diesel Fossil Fuel

CO2

CH4

N2O

CO2e

15,163.4

1,050.8

0.4

0.1

1,096.4

1,546,693.9

114,610.0

6.2

18.4

120,451.3

261,941.1

20,274.2

1.8

0.5

20,475.1

1,823,798.4

135,935.1

8.4

19.1

142,022.8

Mobile Heavy Fuel Oil Subtotal



The emissions from mobile equipment owned by Aracruz or which Aracruz has operational control were included in the Scope 1 of the inventory (above table). The emissions associated to the field work and transportation that are performed by contractors were included in the Scope 3 of this Inventory Report.



Gasoline, diesel and heavy fuel oil were the fuels used by Aracruz to carry out field work and transport materials. Diesel was the main fuel used in these operations and provided about 85% of the total energy use by mobile sources (considering fossil fuels and biomass) in 2007.



The GHG emissions from the combustion in vehicles and mobile equipment owned or controlled by Aracruz was estimated in 142,022.8 t CO2e in 2007.

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Riacho – 2007 GHG Emissions from Mobile Sources Biomass Fuels (Scope 1)

Emissions (metric tonnes)

Consumption Source - Scope 1 GJ Alcohol Biomass

CO2

CH4

N2O

CO2e

1,216.6

0.02

0.02

7.7

1,216.6

0.02

0.02

7.7

Mobile Subtotal



Biomass fuels were used as an energy source also for the mobile sources in Riacho. However, as mentioned before, these fuels are considered biogenic and the associated CO2 emissions were not included in the corporate GHG inventory; only CH4 and N2O are included.



Alcohol was the biomass fuel consumed by mobile equipment and vehicles but its consumption was secondary and represented only 0.1% of all energy requested by these sources.



The GHG emissions from the combustion of alcohol used in the vehicles owned or controlled by Aracruz were estimated in only 7.7 t CO2e in 2007.

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Riacho – 2007 GHG Emissions from Waste Management (Scope 1)

Emissions (metric tonnes) Source - Scope 1 CO2 Solid Waste Waste Management

Wastewater /Sludge Subtotal

CH4

N2O

CO2e

0.0

0.0

0.0

3,850.3

0.0

80,856.4

3,850.3

0.0

80,856.4



Once Riacho disposes its solid waste, in two industrial landfills not owned or operated by Aracruz, the CH4 emissions associated to this activity were considered indirect and included in the Scope 3 of this inventory.



Wastewater treatment in Riacho is conducted by four aerobic and two anaerobic lagoons. Therefore, it is assumed that the system is 66.6% aerobic and 33.3% anaerobic. The percentages should be adjusted when more data on BOD or COD going in and out of each lagoon becomes available.



GHG emissions from this source were estimated to be 3,850.3 t CH4 that is equivalent to 80,856.4 t CO2e.

12

Riacho – 2007 GHG Emissions from All Sources (Scope 1) Emissions (metric tonnes)

Consumption Source - Scope 1 GJ Natural Gas Fossil Fuel

Biomass

Stationary

Stationary

CO2e

3.2

0.3

181,324.2

783,896.5

60,673.6

2.4

0.5

60,868.8

Subtotal

4,013,064.1

241,829.9

5.6

0.8

242,193.0

Black Liquor

39,998,565.5

0.0

120.0

80.0

27,319.0

5,628,435.4

0.0

168.9

22.5

10,525.2

45,627,000.9

0.0

288.8

102.5

37,844.2

1,216.6

0.0

0.02

0.02

7.7

1,216.6

0.0

0.02

0.02

7.7

15,163.4

1,050.8

0.4

0.1

1,096.4

1,546,693.9

114,610.0

6.2

18.4

120,451.3

261,941.1

20,274.2

1.8

0.5

20,475.1

1,823,798.4

135,935.1

8.4

19.1

142,022.8

Solid Waste

0.0

0.0

0.0

0.0

Wastewater /Sludge

0.0

3,850.3

0.0

80,856.4

0.0

3,850.3

0.0

80,856.4

377,765.0

4,153.1

122.4

502,924.1

Heavy Oil (LTF)

Woodwaste & Bark

Mobile Subtotal Gasoline Diesel Mobile Heavy Fuel Oil Subtotal

Waste Management

Subtotal TOTAL



N2O

181,156.3

Alcohol

Fossil Fuel

CH4

3,229,167.5

Subtotal Biomass

CO2

51,465,079.9

The table above presents the emission estimates for all the emission sources under scope 1 (i.e., direct emissions). It is clear that fossil fuels at the stationary sources were the largest sources of emissions whereas the biomass combustion in mobile sources were minor sources of emissions.

13

Riacho – 2007 GHG Emissions from All Sources (Scope 1)

Riacho 2007 - GHG Emissions from all sources (Scope 1) Fossil Fuel Stationary 48%

Waste Management 16%

Biomass Stationary 8%



48% of direct GHG emissions were attributable to fossil fuel combustion at the stationary sources.



Fossil fuel consumption by the mobile sources owned or controlled by Aracruz accounted for about 28% of the direct emissions.



Waste management was also a significant source of GHG as it contributed to 16% of the direct emissions in 2007.



The CH4 and N2O emissions from biomass fuels in stationary sources constituted only 8% of the direct emissions while from mobile sources only 0.002%.

Biomass Mobile 0.002%

Fossil Fuel Mobile 28%

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Riacho – 2007 GHG Emissions from All Sources Allocated to Each Process Line (Scope 1)

Process Line

Allocated Energy Consumption

Scope 1 - Emissions ( metric tonnes)

GJ

%

Fiber Line A

4,480,446

29%

111,218.4

1,222.7

36.0

148,066.7

Fiber Line B

5,870,608

39%

145,726.5

1,602.1

47.2

194,007.9

Fiber Line C

4,867,247

32%

120,820.0

1,328.3

39.1

160,849.5

15,218,301.3

100%

377,765.0

4,153.1

122.4

502,924.1

Overall

CO2

CH4

N2O

CO2e



Data on process-specific electricity and steam consumption was available for Riacho. The proportion of energy requirement by process lines A, B and C was used to prorate the total energy use (i.e., process-specific plus shared process such as the utility plant) by each process line.



The three fiber process lines shared the energy relatively evenly. Fiber line A consumed the least amount of energy and emitted 148,066.7 t of CO2e in 2007.

15

Riacho – 2007 GHG Emissions from Purchased Electricity (Scope 2)

Consumption

Emissions (metric tonnes)

Source - Scope 2

Purchased Electricity

Unit

Value

MWh

0.0

GJ

0.0

Stationary

CO2

CH4*

N2O*

CO2e

0.0

0.0



GHG emissions from imported electricity are considered indirect emissions and fall under Scope 2.



The emission factor of the Brazilian grid available does not contemplate emissions of CH4 and N2O.



In 2007, Riacho did not imported electricity, therefore they had no emissions associated.

16

Riacho – 2007 GHG Emissions Energy Consumption Comparison (Scope 1 and Scope 2) 

The comparison among the consumptions of fossil fuel, biomass and electricity purchased from grid can occur only with the purpose of visualization of how representative is each type of energy source. Therefore, although the energy is consumed by the same sources (stationary sources) the emissions attributions from each of these fuels are not comparable, considering that the emissions from fossil fuels and biomass combustion are deemed direct (Scope 1) while the ones related to the purchased electricity indirect (Scope 2).



As mentioned previously, the majority of energy consumed by stationary sources in Riacho comes from biomass (92%), considering direct and indirect consumption (Scope 2).



Once this facility does not import electricity. Fossil fuels are the second major energy source, representing the remaining 8% of all the energy consumed.

Riacho 2007 - Energy Consumption (Scope 1 + Scope 2)

Fossil Fuel 8%

Purchased Eletricity 0%

Biomass 92%

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Riacho – 2007 GHG Emissions from Waste Management (Scope 3)

Emissions (metric tonnes)

Source - Scope 3 CO2

Waste Management

CH4

N2O

CO2e

Solid Waste

0.0

0.0

0.0

Wastewater /Sludge

0.0

0.0

0.0

0.0

0.0

0.0

Subtotal



Most of solid waste produced in Riacho is recycled or used as energy source for Aracruz or other companies.



The parcel of solid waste that is disposed in a landfill that is not owned or operated by Aracruz, is composed basically by inorganic materials that does not degrades or degrades very slowly. Therefore, there is no CH4 emissions associated to anaerobic degradation of this waste.



In 2007, there were no indirect emissions associated to the waste management in Riacho.

18

Riacho 2007 – GHG Emissions Memo Item Neutral CO2 Sources metric tonnes Black Liquor

3,811,863

Stationary Wood Waste & Bark Mobile

Alcohol Total

630,385 96.8 4,442,344.9



CO2 emitted from the biomass combustion won’t increase the atmospheric carbon dioxide if this consumption were made in sustainable basis. That’s because the CO2 is deemed biogenic and part of the natural carbon cycle.



However, in order to provide complete information, these emissions were related as a memo item. The CH4 and N2O emissions of these fuels were included in the inventory, once that these emissions wouldn’t occur if biomass hadn’t been burnt.



In 2007, black liquor, wood waste and alcohol were consumed by stationary and mobile sources in Riacho.



The CO2 emissions from the combustion of these fuels were estimated in 4,442,344.9 t.

19

Riacho – 2007 GHG Emission Intensity

Scope 1

Production

Emission Intensity

tonnes CO2e

tonnes product

tonnes CO2e per tonne product

Process Line

Fiber Line A

148,067

560,000

0.264

Fiber Line B

194,008

820,000

0.237

Fiber Line C

160,849

820,000

0.196

502,924

2,200,000

0.229

Overall



GHG emission intensity is a useful indicator for monitoring GHG and energy performance. It is measured on an emissions per unit product basis and the fluctuation in production would not distort the results. A declining emission intensity reflects an improvement in emission management.



The table above shows the emissions from Riacho and the emissions allocated to the three fiber lines. By dividing the emission estimates by the specific production figures, emission intensities for Riacho and each fiber line are obtained.



The emission intensity for Riacho overall was 0.229 t CO2e per tonne product while the intensity ranged from 0.196 to 0.264 t CO2e per tonne product for the fiber lines. Fiber line C had the lowest emission intensity.

20

Guaíba

 2007 GHG Emissions by Source Category  2007 GHG Emission Intensity at the Process Line and Facility Level

21

Guaíba – 2007 GHG Emissions from Stationary Sources Fossil Fuels (Scope 1) Emissions (metric tonnes)

Consumption Source - Scope 1 GJ Coal

Fossil Fuel

CO2

CH4

N2O

CO2e

4,800,814.6

442,465.8

4.8

7.2

444,799.0

Heavy Fuel Oil

632,542.8

48,958.8

1.9

0.4

49,116.3

Low Sulphur Oil

315,882.3

24,449.3

0.9

0.2

24,527.9

Diesel

22,755.6

1,686.2

0.1

0.01

1,691.9

Propane

23,077.3

1,456.2

0.02

0.002

1,457.4

5,795,072.7

519,016.3

7.7

7.8

521,592.5

Stationary

Subtotal



Coal and heavy fuel oil were the main fossil fuels used in Guaíba while low sulphur, diesel and propane are ancillary fuels.



Compared to Riacho, fossil fuels accounted for a much larger proportion of energy source in Guaíba. Coal generated 35% of the total energy requirement in Guaíba while heavy fuel oil provided 5% of it.



Furthermore, coal and heavy fuel oil are both carbon-intensive fuels therefore are the largest directs GHG sources contributing, respectively, with 84% and 9% of total direct emissions.



In 2007, the combustion of fossil fuels in stationary sources in Guaíba represented the emission of 521,592.5 t CO2e.

22

Guaíba – 2007 GHG Emissions from Stationary Sources Biomass Fuels (Scope 1)

Emissions (metric tonnes)

Consumption Source - Scope 1 GJ

Biomass

Stationary

CO2*

CH4

N2O

CO2e

Black Liquor

7,829,663.3

23.5

15.7

5,347.7

Woodwaste

0.0

0.0

0.0

0.0

7,829,663.3

23.5

15.7

5,347.7

Subtotal



Despite the intensive utilization of fossil fuels, black liquor was the largest source of energy in Guaíba supplying 57% of all facility’s energy requirement (stationary sources).



However, as mentioned before, these fuels are considered biogenic and the associated CO2 emissions were not included in the corporate GHG inventory; only CH4 and N2O were included.



5,347.7 t CO2e were attributable to the burning of biomass in stationary sources in 2007. The emissions were nominal relative to those from fossil fuels.

23

Guaíba – 2007 GHG Emissions - Fossil vs. Biomass Fuels Guaíba 2007 - Energy Consumption Stationary Sources (Scope 1)







In 2007, the energy consumption of biomass fuels and fossil fuels were 57% and 43%, respectively.

Fossil Fuel 43%

Due to the climate-neutral nature of the CO2 from biomass fuels, only CH4 and N2O are included in Aracruz’ GHG inventory. As a result, the emissions from biomass fuels were only 1% of the total direct GHG emissions from stationary sources.

Biomass 57%

Guaíba 2007 - GHG emissions Stationary Sources (Scope 1)

Fossil Fuel 99%

Biomass 1%

24

Guaíba – 2007 GHG Emissions from Mobile Sources Fossil Fuels (Scope 1)

GJ

Fossil Fuel

Mobile

Emissions (metric tonnes)

Consumption

Source - Scope 1

CO2

CH4

N2O

CO2e

Gasoline

0.0

0.0

0.0

0.0

0.0

Diesel

0.0

0.0

0.0

0.0

0.0

Heavy Fuel Oil

0.0

0.0

0.0

0.0

0.0

Subtotal

0.0

0.0

0.0

0.0

0.0



In Guaíba, all the field work and transportation were performed by contractors and, therefore, the emissions associated to the combustion of fuels used by these source were considered indirect and included in the Scope 3 of this Inventory Report.



Therefore, there wasn’t GHG emissions associated to the mobile combustion in Scope 1 in 2007.

25

Guaíba – 2007 GHG Emissions from Waste Management (Scope 1)

Emissions (metric tonnes) Source - Scope 1 CO2

Waste Management

CH4

N2O

CO2e

Solid Waste

0.0

0.0

0.0

Wastewater /Sludge

0.0

0.0

0.0

0.0

0.0

0.0

Subtotal



Only the emissions of activities owned or controlled by Aracruz are included in the Scope 1.



In Guaíba the waste management is performed by a contracted company that operates in a conceded area inside Guaíba facility but the treatment is not owned or operated by Aracruz, therefore these emissions falls under the Scope 3 of this Inventory Report.

26

Guaíba – 2007 GHG Emissions from All Sources (Scope 1) Emissions (metric tonnes)

Consumption

Source - Scope 1

GJ Coal

Fossil Fuel

Biomass

Stationary

Stationary

Mobile



CO2e

4.8

7.2

444,799.0

Heavy Fuel Oil

632,542.8

48,958.8

1.9

0.4

49,116.3

Low Sulphur Oil

315,882.3

24,449.3

0.9

0.2

24,527.9

Diesel

22,755.6

1,686.2

0.07

0.01

1,691.9

Propane

23,077.3

1,456.2

0.02

0.002

1,457.4

Subtotal

5,795,072.7

519,016.3

7.7

7.8

521,592.5

Black Liquor

7,829,663.3

0.0

23.5

15.7

5,347.7

Woodwaste

0.0

0.0

0.0

0.0

0.0

7,829,663.3

0.0

23.5

15.7

5,347.7

Gasoline

0.0

0.0

0.0

0.0

0.0

Diesel

0.0

0.0

0.0

0.0

0.0

Heavy Fuel Oil

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Solid Waste

0.0

0.0

0.0

0.0

Wastewater /Sludge

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

519,016.3

31.2

23.4

526,940.2

Subtotal TOTAL

N2O

442,465.8

Subtotal

Waste Management

CH4

4,800,814.6

Subtotal

Fossil Fuel

CO2

13,624,736.0

The table above presents the emission estimates for all the emission sources under scope 1 (i.e., direct emissions). It is clear that fossil fuels at the stationary sources were the largest sources of emissions whereas the biomass fuels the minor sources. Mobile sources and Waste Management aren’t owned or controlled by Aracruz.

27

Guaíba – 2007 GHG Emissions from All Sources (Scope 1)

Guaíba 2007 - GHG Emissions from all sources (Scope 1)



Almost 100% of direct GHG emissions were attributable to fossil fuel combustion at the stationary sources.



The CH4 and N2O emissions from biomass fuel accounted for 1% of the direct emissions.



GHG emissions from Mobile Sources and Waste Management aren’t included in the Scope 1 once were owned and operated by a third part.

Fossil Fuel Stationary 99%

Waste Management 0% Fossil Fuel Mobile 0%

Biomass Stationary 1%

28

Guaíba – 2007 GHG Emissions from Purchased Electricity Stationary Sources (Scope 2)

Consumption

Emissions (metric tonnes)

Source - Scope 2 Unit

Purchased Electricity

Value

CO2

MWh

129,494.5

GJ

466,180.2

Stationary

7,452.6

CH4

N2O

CO2e

7,452.6



GHG emissions from imported electricity at stationary sources are considered indirect emissions and fall under scope 2.



The emission factor of the Brazilian grid available does not contemplate emissions of CH4 and N2O.



In 2007, Guaiba imported about 129,495 MWh of electricity and the associated emissions were estimated in 7,452.6 t CO2e.

29

Guaíba – 2007 GHG Emissions Energy Consumption Comparison (Scope 1 and Scope 2) 

The comparison between the consumptions of fossil fuel, biomass and the electricity purchased from grid in stationary sources can be made only with the purpose of visualization of how representative is each type of energy source. However, although the energy is being consumed by the same sources (stationary sources) the emissions attributions from each of these fuels are not comparable, considering that the emissions from fossil fuels and biomass combustion are deemed direct (Scope 1) while the ones related to the purchased electricity, indirect (Scope 2).



As mentioned before, the majority of energy consumed by stationary sources in Guaíba derives from biomass (56%), considering direct and indirect consumption (Scope 2).



Fossil fuels is the second major source, representing 41% of energy consumed by stationary sources while electricity imported from the grid contributes with only 3%.

Guaíba 2007 - Energy Consumption (Scope 1 + Scope 2)

Fossil Fuel 41%

Purchased Eletricity 3%

Biomass 56%

30

Guaíba – 2007 GHG Emissions from Purchased Electricity Mobile Sources (Scope 2)

Consumption

Emissions (metric tonnes)

Source - Scope 2 Unit

Purchased Electricity

Consumption

CO2

MWh

208.5

GJ

750.5

Mobile

CH4

N2O

CO2e

12.0

12.0



There was some purchased electricity consumption by Guaíba’s mobile equipment and it emitted the insignificant amount of 12.0 t CO2e in 2007.



The emission factor of the Brazilian grid available does not contemplate emissions of CH4 and N2O.



These emissions are considered indirect emissions and fall under scope 2.

31

Guaíba – 2007 GHG Emissions from Mobile Sources Fossil Fuels (Scope 3) Emissions (metric tonnes)

Consumption Source - Scope 3 GJ Gasoline Diesel Fossil Fuel

CO2

CH4

N2O

CO2e

21,146.5

1,465.5

0.5

0.2

1,529.0

298,897.0

22,148.3

1.2

1.2

22,534.1

0.0

0.0

0.0

0.0

0.0

320,043.5

23,613.7

1.7

1.3

24,063.1

Mobile Heavy Fuel Oil Subtotal



Gasoline and diesel were used by contractors to carry out field work and transport materials for Guaíba. Diesel was the main fuel used in these operations and provided more than 93% of the total energy used by mobile sources in 2007.



Since these mobile equipment and vehicles are not owned or controlled by Aracruz, the emissions are deemed indirect and fall under scope 3.



In 2007, to the indirect mobile combustion was attributable 24,063.1 t CO2e.

32

Guaíba – 2007 GHG Emissions from Waste Management (Scope 3) Emissions (metric tonnes) Source - Scope 3 CO2 Solid Waste Waste Management

CH4

N2O

CO2e

56.0

3.4

2,215.8

Wastewater /Sludge

341.8

7.9

9,624.2

Subtotal

397.9

11.2

11,840.0



The wood waste from Guaíba is treated by composting. Based on CH4 and N2O emissions factors during composting, the unusable wood waste and bark emitted 56.0 t CH4 and 3.4 t N2O in 2007 (equivalent to 2,215.8 t CO2e).



Treatment of sludge also produces N2O but mainly produces methane (CH4). The biogas is not flared and is released directly to the atmosphere in Guaíba.



The anaerobic treatment of sludge was attributable to 341.8 t CH4 and 7.9 t N2O in 2007, which are equivalent to 9,624.2 t CO2e. The waste management system is not owned by Aracruz and thus the associated emissions are covered under Scope 3.



GHG emissions from waste management activities were estimated to be 11,840.0 t CO2e.

33

Guaíba 2007 – GHG Emissions Memo Item Neutral CO2

Sources

metric tonnes Black Liquor

Stationary Mobile Total

746,167

Wood Waste & Bark

0.0

Alcohol

0.0 746,166.9



CO2 emitted from the biomass combustion won’t increase the atmospheric carbon dioxide if this consumption were made in sustainable basis. That’s because the CO2 is deemed biogenic and part of the natural carbon cycle.



However, in order to provide complete information, these emissions were related as a memo item. The CH4 and N2O emissions of these fuels were included in the inventory, once that these emissions wouldn’t occur if biomass hadn’t been burnt.



In 2007, the only biomass that was consumed by stationary sources in Guaíba was black liquor.



The CO2 emissions from the combustion of this fuel were estimated in 746,166.9 t.

34

Guaíba – 2007 GHG Emission Intensity

Scope 1

Production (Pulp + Paper)

Emission Intensity

tonnes CO2e

tonnes product

tonnes CO2e per tonne product

Process Line

Guaíba

526,940

499,301

1.055



GHG emission intensity is a useful indicator for monitoring GHG and energy performance. It is measured on an emissions per unit product basis and the fluctuation in production would not distort the results. A declining emission intensity reflects an improvement in emission management.



The table above shows the emissions and production, which includes pulp and paper, from Guaíba. By dividing the emission estimate by production, the emission intensity for Guaíba can be obtained.



The emission intensity for Guaíba was 1.055 t CO2e per t of product in 2007.

35

Aracruz

 2007 GHG Emissions by Source Category  2007 GHG Emission Intensity at Facilities and Corporative Levels

36

Aracruz – 2007 GHG Emissions from Stationary Sources Fossil Fuels (Scope 1) GJ

CO2

4,800,814.6

442,465.8

4.8

7.2

444,799.0

Heavy Fuel Oil

632,542.8

48,958.8

1.9

0.4

49,116.3

Low Sulphur Oil

315,882.3

24,449.3

0.9

0.2

24,527.9

Diesel

22,755.6

1,686.2

0.1

0.01

1,691.9

Propane

23,077.3

1,456.2

0.02

0.002

1,457.4

3,229,167.5

181,156.3

3.2

0.3

181,324.2

783,896.5

60,673.6

2.4

0.5

60,868.8

9,808,136.7

760,846.2

13.3

8.6

763,785.5

Coal

Fossil Fuels

Stationary

Emissions (metric tonnes)

Consumption

Source - Scope 1

Natural Gas Heavy Oil (LTF) Subtotal

CH4

N2O

CO2e



At corporate level, the following fuels are monitored, in descending order of emissions: coal, natural gas, heavy oil (LTF), heavy fuel oil, low sulphur oil, diesel and propane.



Coal was the largest source of direct GHG emissions with 444,799.0 t CO2e (43% of total direct emissions), followed by natural gas with 181,324.2 t CO2e (18%) and heavy oil (LTF) with 60,868.8 t CO2e (6%).



In 2007, the direct GHG emissions from all fossil fuels combusted by stationary equipment were estimated in 763,785.5 t CO2e or 74% of direct emissions from all sources (Scope 1).

37

Aracruz – 2007 GHG Emissions from Stationary Sources Biomass Fuels (Scope 1) Emissions (metric tonnes)

Consumption Source - Scope 1 GJ

Biomass

Stationary

CO2

CH4

N2O

CO2e

Black Liquor

47,828,228.8

143.5

95.7

32,666.7

Woodwaste

5,628,435.4

168.9

22.5

10,525.2

53,456,664.2

312.3

118.2

43,191.9

Subtotal



Black liquor was the largest source of energy generation in Aracruz and it supplied more than 73% of total energy use. Wood waste was the second largest energy source and provided 9% of total energy use.



Despite the intensive consumption, the biomass fuels have contributed to only 43,191.9 t CO2e that represents only 4% of total direct emissions in 2007. The emissions were much lower than those from fossil fuels.

38

Aracruz – 2007 GHG Emissions - Fossil vs. Biomass Fuels



In 2007, the energy consumption of biomass fuels and fossil fuels were 84% and 16% respectively. Biomass fuels generated the vast majority of the energy consumed in the facilities of Riacho and Guaíba.



Due to the climate-neutral nature of the CO2 from biomass fuels, only CH4 and N2O are included in Aracruz’ GHG inventory.



As a result, the emissions from biomass fuels were only 5% of the total direct GHG emissions from stationary sources.

Aracruz 2007 - Energy Consumption Stationary Sources (Scope 1)

Fossil Fuels 16%

Biomass 84%

Aracruz 2007 - GHG emissions Stationary Sources (Scope 1)

Biomass 5%

Fossil Fuels 95%

39

Aracruz - 2007 GHG Emissions from All Fuels Stationary Sources (Scope 1) Aracruz 2007 - Energy Consumption Stationary Sources (Scope 1) Heavy Fuel Oil 1.0%

Black Liquor 75.6%

Woodwaste 8.9%

Coal 8%

Low Sulphur Oil 0.5% Diesel 0.04% Propane 0.04% Natural Gas 5% Heavy Oil (LTF) 1.2%

Aracruz 2007 - GHG Emissions Stationary Sources (Scope 1) Heavy Oil Black Liquor Woodwaste 4% 1% (LTF) 8%

Coal 56%

Natural Gas 22% Propane 0.2% Diesel 0.2%

Low SulphurHeavy Fuel Oil 6% Oil 3%



In 2007, black liquor had represented the largest source of energy providing 76% of the energy used in stationary sources, followed by wood waste (9%). The consumption of coal represented 8% from the 16% of energy that was provided by fossil fuels. Despite represents only 8% of energy used in stationary sources, coal had contributed with 56% of emissions, once the CO2 emissions from the biomass combustion were not included in the Inventory. For that reason, the contribution of GHG emissions from biomass fuels was only 5% of emissions from stationary sources.



Natural gas, heavy oil (LTF) and heavy fuel oil were also important emission sources although the consumption of these fuels represented only 5%, 1% and 1% of energy consumed, respectively. The associated emissions were estimated in 22% for natural gas, 8% for the heavy oil (LTF) and 6% for heavy fuel oil. It’s important to note that the heavy oil, as the coal, is a carbon-intensive fuel. 

Low sulphur oil, diesel and propane were ancillary fuels and the emissions associated to their combustion weren’t representative in 2007. 40

Aracruz – 2007 GHG Emissions from Mobile Sources Fossil Fuels (Scope 1) Emissions (metric tonnes)

Consumption Source - Scope 1 GJ Gasoline Diesel Fossil Fuel

CO2

CH4

N2O

CO2e

15,163.4

1,050.8

0.4

0.1

1,096.4

1,546,693.9

114,610.0

6.2

18.4

120,451.3

261,941.1

20,274.2

1.8

0.5

20,475.1

1,823,798.4

135,935.1

8.4

19.1

142,022.8

Mobile Heavy Fuel Oil Subtotal



The emissions from mobile equipment owned by Aracruz or which Aracruz has operational control are included in the Scope 1 of the inventory (above table). The emissions associated to the field work and transportation that were performed by contractors are included in the Scope 3 of this Inventory Report.



Once all transportation in Guaíba is conducted by contractors, only the emissions of combustion in mobile sources from Riacho were considered directs and included in the Scope 1.



Gasoline, diesel and heavy fuel oil were used by Aracruz to carry out field work and transport materials. However, the combustion of these fuels haven’t represented a significant GHG emissions, contributing all together with less than 3% of direct emissions from all sources.



The GHG emissions from the combustion in vehicles and mobile equipment owned or controlled by Aracruz were estimated in 142,022.8 t CO2e in 2007.

41

Aracruz – 2007 GHG Emissions from Mobile Sources Biomass Fuels (Scope 1)

Emissions (metric tonnes)

Consumption Source - Scope 1 GJ Alcohol Biomass

CO2

CH4

N2O

CO2e

1,216.6

0.02

0.02

7.7

1,216.6

0.02

0.02

7.7

Mobile Subtotal



Like the fossil fuels, the biomass fuel that was used by the mobile equipment owned or controlled by Aracruz, is consumed only in Riacho since the transportation activities in Guaíba were conducted by a third part in 2007.



As mentioned before, biomass fuels are considered biogenic and the associated CO2 emissions are not included in the corporate GHG inventory; only CH4 and N2O are included.



For this reason, the emissions associated to the combustion of alcohol in mobile equipment and vehicles represented only 0.001% of total direct emissions.



The direct emissions from the combustion of alcohol in the vehicles owned or controlled by Aracruz were estimated only in 7.7 t CO2e in 2007.

42

Aracruz - 2007 GHG Emissions from All Fuels Mobile Sources (Scope 1) Aracruz 2007 - Energy Consumption Mobile Sources (Scope 1)

Aracruz 2007 - GHG Emissions Mobile Sources (Scope 1)

Alcohol 0.1% Heavy Fuel Oil 14%

Gasoline 1%

Diesel 85%

Alcohol 0.01% Heavy Fuel Oil 14%

Gasoline 1%

Diesel 85%



Diesel was the main fuel used by mobile sources owned by Aracruz, exclusively in the facility of Barra do Riacho since Aracruz does not owns or controls the transportation services in Guaíba. In 2007, this fuel consumption and emission represented 85% from the total consumed and total emitted by these sources.



Besides diesel, it was also consumed heavy fuel oil and gasoline by mobile sources. Heavy fuel oil represented 14% of the total consumed, while gasoline only 1%.



Alcohol contribution with the energy requirement was not significant (0.1%) as well as the emissions associated to its combustion (0.01%).

43

Aracruz – 2007 GHG Emissions from Waste Management (Scope 1) Emissions (metric tonnes) Source - Scope 1 CO2 Solid Waste Waste Management

Wastewater /Sludge Subtotal

CH4

N2O

CO2e

0.0

0.0

0.0

3,850.3

0.0

80,856.4

3,850.3

0.0

80,856.4



Riacho disposes its solid waste, in an industrial landfill not owned or operated by Aracruz. Therefore, the CH4 emissions associated to this activity were considered indirect and included in the Scope 3 of this inventory.



The solid waste and sludge treatment in Guaíba is conducted by a third part although occurs under the facility’s physical domain therefore these GHG emissions are also considered indirect and falls under Scope 3.



Wastewater treatment in Riacho was identified to be a source of methane (CH4) emissions once 33.3% of treatment is anaerobic.



3,850.3 t CH4 were emitted from wastewater treatment in 2007. They were equivalent to 80,856.4 t CO2e. The emissions from wastewater amounted to 8% of the total emissions from all direct GHG sources.

44

Aracruz – 2007 GHG Emissions from All Sources (Scope 1)

GJ

CO2

4,800,814.6

442,465.8

4.8

7.2

444,799.0

Heavy Fuel Oil

632,542.8

48,958.8

1.9

0.4

49,116.3

Low Sulphur Oil

315,882.3

24,449.3

0.9

0.2

24,527.9

Diesel

22,755.6

1,686.2

0.07

0.01

1,691.9

Propane

23,077.3

1,456.2

0.02

0.002

1,457.4

3,229,167.5

181,156.3

3.2

0.3

181,324.2

783,896.5

60,673.6

2.4

0.5

60,868.8

Subtotal

9,808,136.7

760,846.2

13.3

8.6

763,785.5

Black Liquor

47,828,228.8

0.0

143.5

95.7

32,666.7

Woodwaste

5,628,435.4

0.0

168.9

22.5

10,525.2

53,456,664.2

0.0

312.3

118.2

43,191.9

1,216.6

0.0

0.02

0.02

7.7

1,216.6

0.0

0.02

0.02

7.7

15,163.4

1,050.8

0.4

0.1

1,096.4

1,546,693.9

114,610.0

6.2

18.4

120,451.3

261,941.1

20,274.2

1.8

0.5

20,475.1

1,823,798.4

Coal

Fossil Fuels

Stationary

Natural Gas Heavy Oil (LTF)

Biomass

Stationary

Subtotal Biomass

Mobile

Alcohol Subtotal Gasoline

Fossil Fuel

Mobile

Diesel Heavy Fuel Oil Subtotal

Waste Management



CH4

N2O

CO2e

135,935.1

8.4

19.1

142,022.8

Solid Waste

0.0

0.0

0.0

0.0

Wastewater /Sludge

0.0

3,850.3

0.0

80,856.4

0.0

3,850.3

0.0

80,856.4

896,781.3

4,184.4

145.8

1,029,864.2

Subtotal TOTAL

Emissions (metric tonnes)

Consumption

Source - Scope 1

65,089,815.8

The above table presents the emission estimates from all sources under scope 1 (i.e., direct emissions). It is clear that fossil fuels at the stationary sources were the largest sources of emissions whereas biomass fuels in mobile sources the minor sources. 45

Aracruz – 2007 GHG Emissions from All Sources (Scope 1)

Aracruz 2007 - GHG Emissions from all sources (Scope 1)

Fossil Fuel Biomass Mobile Mobile 14% 0.001%

Waste Management 8%

Biomass Stationary 4% Fossil Fuel Stationary 74%



Fossil fuels accounted for a vast majority (74%) of total direct GHG emissions in 2007.



The combustion of fossil fuels used by mobile equipment were the second largest source but in a much lower level, 14%.



Waste management activities were responsible for 8% of emissions.



About 4% of the total emissions came from biomass fuels (including stationary and mobile sources).

46

Aracruz – 2007 GHG Emissions from Purchased Electricity Stationary Sources (Scope 2)

Consumption

Source - Scope 2 Unit Purchased Electricity

Stationary

Emissions (metric tonnes) Value

MWh

129,494.5

GJ

466,180.2

CO2 7,452.6

CH4*

N2O*

CO2e 7,452.6



GHG emissions from imported electricity are deemed indirect emissions and fall under Scope 2.



The emission factor of the Brazilian grid available does not contemplate emissions of CH4 and N2O.



Only Guaíba imported electricity in 2007. 129,494.5 MWh were purchased by stationary sources and the associated emissions were about 7,452.6 t CO2e.

47

Aracruz – 2007 GHG Emissions Energy Consumption Comparison (Scope 1 and Scope 2) 

The comparison between the consumptions of fossil fuel, biomass and the electricity purchased from grid in stationary sources can be conduced only with the purpose of visualization of how representative is each type of energy source. However, although the energy is being consumed by the same sources (stationary sources) the emissions attributions from each of these fuels are not comparable, considering that the emissions from fossil fuels and biomass combustion are deemed direct (Scope 1) while the ones related to the purchased electricity, indirect (Scope 2).



As mentioned before, the majority of energy consumed by Aracruz’ stationary sources derives from biomass (84%), considering direct and indirect consumption (Scope 2).



Fossil fuels represented the second major source, with 15% of all energy consumed by stationary sources while electricity purchased from the grid contributed with only 1%.

Aracruz 2007 - Energy Consumption (Scope 1 + Scope 2)

Fossil Fuel 15%

Purchased Eletricity 1%

Biomass 84%

48

Aracruz – 2007 GHG Emissions from Purchased Electricity Mobile Sources (Scope 2)

Consumption

Emissions (metric tonnes)

Source - Scope 2 Unit Purchased Electricity

Mobile

Value

CO2

MWh

208.5

GJ

750.5

CH4*

N2O*

12.0

CO2e 12.0



In 2007, there was some purchased electricity consumption by Aracruz’ mobile equipment.



The total indirect emissions associated with the utilization of purchased electricity by these sources were estimated in the insignificant amount of 12.0 t CO2e.

49

Aracruz – 2007 GHG Emissions from Mobile Sources Fossil Fuels (Scope 3)

Source - Scope 3

Emissions (metric tonnes)

Consumption GJ

Gasoline Fossil Fuels

Mobile

Diesel Heavy Fuel Oil Subtotal

CO2

CH4

N2O

CO2e

21,146.5

1,465.5

0.5

0.2

1,529.0

298,897.0

22,148.3

1.2

1.2

22,534.1

0.0

0.0

0.0

0.0

0.0

320,043.5

23,613.7

1.7

1.3

24,063.1



In Guaíba, third part companies were hired to carry out field work and transport materials. Diesel was the main fuel used in these operations and provided approximately 93% of the total energy use by mobile sources in 2007. The transport services that were conduced by contractors in Barra do Riacho weren’t reported in the Aracruz’ GHG Inventory for year 2007 since Aracruz doesn't controls its consumptions and therefore, the data wasn’t available. Aracruz intends to included these emissions in 2008’ GHG Inventory.



Since these mobile equipment and vehicles were not owned nor controlled by Aracruz, the emissions are considered indirect and falls under Scope 3.



In 2007, indirect mobile combustion was attributable to 24,063.1 t CO2e.

50

Aracruz – 2007 GHG Emissions from Waste Management (Scope 3)

Emissions (metric tonnes)

Source - Scope 3 CO2 Solid Waste Waste Management

Wastewater /Sludge Subtotal

CH4

N2O

CO2e

56.0

3.4

2,215.8

341.8

7.9

9,624.2

397.9

11.2

11,840.0



The solid waste produced in Riacho and that was disposed in a not-owned landfill is composed basically by inorganic materials which doesn’t degrades or degrades very slowly. Therefore, the CH4 emissions associated to the anaerobic degradation of this waste can be considered zero.



Solid waste in Guaíba is treated by composting. Based on CH4 and N2O emissions factors during composting, the unusable wood waste and bark emitted the equivalent to 2,215.8 t CO2e.



Treatment of sludge also produces N2O but mainly produces methane (CH4). The biogas is not flared and is released directly to the atmosphere in Guaíba. The anaerobic treatment of sludge was attributable to the equivalent to 9,624.2 t CO2e. Since the waste management system is not owned by Aracruz, the associated emissions are covered under Scope 3.



GHG emissions from waste management activities were estimated to be 11,840.0 t CO2e.

51

Aracruz 2007 – GHG Emissions Memo Item Neutral CO2

Sources

metric tonnes Black Liquor

Stationary

Wood Waste & Bark Mobile

Alcohol Total

4,558,030 630,385 97 5,188,511.8



CO2 emitted from the biomass combustion won’t increase the atmospheric carbon dioxide if this consumption were made in sustainable basis. That’s because the CO2 is deemed biogenic and part of the natural carbon cycle.



However, in order to provide complete information, these emissions were related as a memo item. The CH4 and N2O emissions of these fuels were included in the inventory, once that these emissions wouldn’t occur if biomass hadn’t been burnt.



In 2007, it was consumed black liquor, wood waste and bark by stationary sources, and alcohol by mobile sources.



The CO2 emissions from the combustion of these fuels were estimated in 5,188,511.8 tonnes.

52

Aracruz – 2007 GHG Emission Intensity Scope 1

Production

Emissions Intensity

tonnes CO2e

tonnes product

tonne CO2 per tonne product

Process Line

Barra do Riacho

502,924

2,200,000

0.229

Guaíba

526,940

499,301

1.055

1,029,864

2,699,301

0.382

Aracruz



The table above displays the total direct GHG emissions (Scope 1) from Riacho and Guaíba and from the company as a whole. The emissions were divided by production to derive the emission intensity at the facility and corporate levels.



It is important to consider all the relevant factors when comparing emission intensities of various facilities or companies. Some of the factors are: •

Main process type (e.g. kraft, sulfite, mechanical)



Type of products (e.g. pulp, paper)



Size of facility



Availability of biomass fuels



Type of fossil fuels available



Riacho and Guaíba had emission intensities of 0.229 and 1.055 t CO2e per t product, respectively. In 2007, the emission intensity for the company overall was 0.382 t CO2e per t product.



The main reason for the higher emission intensity of Guaíba is that almost half of energy requirement in stationary sources was met by carbon-intensive coal and heavy fuel oil. On the contrary, biomass fuels generated a much higher proportion (92%) of the energy use in Riacho and the balance of energy use is substantially supplied by the relatively less carbonintensive natural gas.

53

2007 Forest Carbon Inventory Introduction Commercial Forests in Riacho Commercial Forests in Guaíba Commercial Forests Owned by Aracruz

54

Forest Carbon Inventory - Introduction 

Both Riacho and Guaíba have commercial forests with eucalyptus plantations in their respective States. Under a sustainable growth scenario, tree growth should be greater or equal to tree harvested. A net growth of biomass reflects net carbon removals as more carbon is sequestered in the biomass than is released or emitted to the atmosphere as a result of harvesting (i.e. harvested wood is considered carbon loss and emissions*). On the contrary, if more biomass is harvested than grown, there would be net carbon losses.



For Aracruz’ forest carbon inventory, two carbon pools are included – aboveground carbon from aboveground biomass and belowground carbon from belowground biomass. At present, the data on under story vegetation, dead wood and soil is insufficient for carbon quantification. However, the carbon in the under story vegetation and dead wood is small relative to the aboveground and belowground biomass. The soil in the forests is believed to be sequestering carbon. A soil carbon study will be conducted in the near future for analyses and reporting purposes.



The carbon stock change or flux is the difference of carbon stock over a period of time.



For further details on the methodology, please refer the Aracruz GHG Protocol and the workbooks for each facility as well as the company as a whole.

*The rules on carbon sequestration in wood products have not been finalized by IPCC. At present, companies should treat harvest wood as instant carbon loss or CO2 emissions.

55

Riacho – 2007 Commercial Forests

Forest Carbon Stock

Forest Carbon Stock Change

Beginning of the Year tonnes carbon 7,323,516

End of the Year tonnes carbon 7,521,620

Beginning of the Year tonnes CO2 26,852,891

End of the Year tonnes CO2 27,579,273

Over the Year tonnes carbon 198,104

tonnes CO2 726,382



The forest carbon stock was estimated based on the available data. Only the areas from the beginning and the end of 2007 were considered.



The change in carbon stock reflects the planting and harvesting activities and other forest management practices implemented by Aracruz.



It was estimated that there was an increase of 198,104 t carbon in the forest stock which is equivalent to a sequestration of 726,382 t CO2.

56

Guaíba – 2007 Commercial Forests

Forest Carbon Stock

Forest Carbon Stock Change

Beginning of the Year tonnes carbon 2,174,349

End of the Year tonnes carbon 1,906,524

Beginning of the Year tonnes CO2 7,972,613

End of the Year tonnes CO2 6,990,588

Over the Year tonnes carbon -267,825

tonnes CO2 -982,026



The reduction in carbon stock shows that harvesting likely outpaced planting and tree growth.



In 2007, carbon stock in Guaíba’ forests was reduced by (267,825) t. In forest accounting, the GHG reduction is equivalent to emissions of (982,026) t CO2.

57

Aracruz – 2007 Commercial Forests

Forest Carbon Stock

Forest Carbon Stock Change

Beginning of the Year tonnes carbon 9,497,865

End of the Year tonnes carbon 9,428,144

Beginning of the Year tonnes CO2 34,825,504

End of the Year tonnes CO2 34,569,861

Over the Year tonnes carbon -69,721

tonnes CO2 -255,644



At the corporate level, the carbon stock change in Aracruz’ forests was reduced by (69,721) t carbon due to the negative carbon flux in Guaíba's forests in 2007.



This negative flux represents the emission of (255,644) t CO2 in forests managed by Aracruz. In this manner, the forests owned by Aracruz have represented a GHG source instead of a GHG sink in 2007.

58

UNCERTAINTY ASSESSMENT

Introduction Results

59

Uncertainty Assessment - Introduction  The methodology selected for uncertainty quantification in this report is drawn from the WRI/WBCSD’s GHG Protocol and is consistent with the first method (Tier I) in the IPCC Good Practice Report (IPCC, 2000) for estimation of the overall uncertainty for one year and the uncertainty in the trend. Two Tiers for uncertainty quantification are described in Chapter 6 of the IPCC Good Practice Guidance. A higher level of resources and expertise is required for the Tier II method, which uses Monte Carlo analysis to estimate the uncertainties by source category followed by the Monte Carlo techniques to estimate overall uncertainty for one year and the uncertainty in the trend. For a normal probability function, which is the case for Aracruz’ GHG inventory*, both the Tier I and Tier II methods would produce accurate results.  For further details on the methodology, please refer the Aracruz GHG Protocol and the workbooks for each facility as well as the company as a whole.

* Since the uncertainties for all Aracruz’ emission sources are less than 100%, a normal probability function is assumed resulting in a symmetric distribution about the mean.

60

Uncertainty Assessment – Uncertainties of Emission Factors and Activity Data U ncertainty (% ) for Em ission Factors and Activity Data

Em ission Factors (%) Source

Stationary Fossil Fuel

M obile

Biom ass C om bustion Purchased Electricity W aste T reatm ent

Activity D ata (% ) N atural G as Heavy O il Light O il D iesel Propane C oal Butane G asoline D iesel Propane Black Liquor W ood W aste Bark Electricity

CO2

CH 4

N2O

5.0 3.0 2.9 2.9 5.0 5.0 5.0 2.9 2.9 5.0 0.0 0.0 0.0 5.0 0.0

30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0

30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0 47.0 47.0 47.0 30.0 30.0

2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 3.0 3.0 3.0 3.0 10.0

The uncertainties of the emission factors and activity data were drawn from: 1.

Environment Canada 2000. 1998 Fossil Fuel and Derivative, CO2 Per Unit of Fuel and Heating Values Factors. March.

2.

Environment Canada 2000. Emission Factors and Uncertainties for CH4 and N2O for Fuel Combustion. August.

3.

Uncertainty factors for Purchased Electricity and Waste Treatment are based on expert judgment.



The uncertainties of emission factors and activity data were then combined using a “root-sum-of-squares” approach. The combined uncertainties would be representative of the corresponding emission sources.

61

Uncertainty Assessment – Combined Uncertainties

Combined Uncertainty (%) for Emission Factors and Activity Data

Overall (%) Source

Stationary Fossil Fuel

Mobile

Biomass Combustion Purchased Electricity W aste Treatment

Natural Gas Heavy Oil Light Oil Diesel Propane Coal Butane Gasoline Diesel Propane Black Liquor W ood W aste Bark Electricity

CO2

CH4

N2O

5.4 3.6 3.5 3.5 5.4 5.4 5.4 3.5 3.5 5.4 0.0 0.0 0.0 5.8 0.00

30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 31.6

30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 47.1 47.1 47.1 30.1 31.6

Note: The combined uncertainty is based on the Root-Sum-Square approach which is the IPCC Tier 1 Approach.

62

Uncertainty Assessment – Uncertainty for Total Emissions



The following slides present the uncertainties associated with the emission estimates for Riacho and Guaíba at the facility level and Aracruz at the corporate level.



A table for the GHG emission estimates for each scope is followed by the corresponding uncertainty estimates.



A weighted-average approach is applied to the subtotals and total in accordance with IPCC Tier-1 approach.

63

Uncertainty Assessment – Riacho (Scope 1) 2007 GHG Emission Estimate Emissions (metric tonnes) Source - Scope 1 CO2 Fossil Fuel Stationary Biomass Fuel

Mobile Fossil Fuel Waste Management

Natural Gas Heavy Oil (LTF) Subtotal Black Liquor Woodwaste & Bark Subtotal Alcohol Subtotal Gasoline Diesel Heavy Fuel Oil Subtotal Solid & Wastewater

TOTAL

CH4

N2O

CO2e

181,156.3 60,673.6 241,829.9 0.0 0.0 0.0 0.0 0.0 1,050.8 114,610.0 20,274.2 135,935.1 0.0

3.2 2.4 5.6 120.0 168.9 288.8 0.02 0.02 0.4 6.2 1.8 8.4 3,850.3

0.3 0.5 0.8 80.0 22.5 102.5 0.02 0.02 0.1 18.4 0.5 19.1 0.0

181,324.2 60,868.8 242,193.0 27,319.0 10,525.2 37,844.2 7.7 7.7 1,096.4 120,451.3 20,475.1 142,022.8 80,856.4

377,765.0

4,153.1

122.4

502,924.1

Uncertainty Associated With The Corresponding GHG Emission Estimate Uncertainty (%) Source - Scope 1

Fossil Fuel Stationary Biomass Fuel

Mobile Fossil Fuel Waste Management

Natural Gas Heavy Oil (LTF) Subtotal Black Liquor Woodwaste & Bark Subtotal Alcohol Subtotal Gasoline Diesel Heavy Fuel Oil Subtotal Solid & Wastewater

Overall Uncertainty (%)

CO2

CH4

N2O

CO2e

5.4 3.5 4.9 0.0 0.0 0.0 0.0 0.0 3.5 3.5 3.6 3.5 0.0

30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 31.6

30.1 30.1 30.1 47.1 47.1 47.1 47.1 47.1 30.1 30.1 30.1 30.1 31.6

5.4 3.5 4.9 42.8 32.8 39.8 44.3 44.3 3.5 3.6 3.6 3.6 31.6

3.4

29.4

39.7

6.4

64

Uncertainty Assessment – Guaíba (Scope 1) 2007 GHG Emission Estimate Emissions (metric tonnes) Source - Scope 1 CO2

Fossil Fuel Stationary

Biomass Fuel

Fossil Fuel

Mobile

Waste Management

Coal Heavy Fuel Oil Low Sulphur Oil Diesel Propane Subtotal Black Liquor Woodwaste Subtotal Gasoline Diesel Heavy Fuel Oil Subtotal Solid & Wastewater

TOTAL

CH4

N2O

CO2e

442,465.8 48,958.8 24,449.3 1,686.2 1,456.2 519,016.3 0 0 0.0 0 0 0 0.0 0.0

4.8 1.9 0.9 0.07 0.02 7.7 23.5 0 23.5 0 0 0 0.0 0.0

7.2 0.4 0.2 0.01 0.00 7.8 15.7 0 15.7 0 0 0 0.0 0.0

444,799.0 49,116.3 24,527.9 1,691.9 1,457.4 521,592.5 5,347.7 0 5,347.7 0 0 0 0.0 0.0

519,016.3

31.2

23.4

526,940.2

Uncertainty Associated With The Corresponding GHG Emission Estimate Uncertainty (%) Source - Scope 1

Fossil Fuel Stationary

Biomass Fuel

Fossil Fuel

Mobile

Waste Management

Coal Heavy Fuel Oil Low Sulphur Oil Diesel Propane Subtotal Black Liquor Woodwaste Subtotal Gasoline Diesel Heavy Fuel Oil Subtotal Solid & Wastewater

Overall Uncertainty (%)

CO2

CH4

N2O

CO2e

5.4 3.6 3.6 3.5 5.4 5.1 0.0 0.0 0.0 3.5 3.5 3.6 0.0 0.0

30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 0.0 31.6

30.1 30.1 30.1 30.1 30.1 30.1 47.1 47.1 47.1 30.1 30.1 30.1 0.0 31.6

5.4 3.6 3.6 3.5 5.4 5.1 42.8 0.0 42.8 0.0 0.0 0.0 0.0 0.0

5.1

23.9

33.0

5.1

65

Uncertainty Assessment – Guaíba (Scope 2)

2007 GHG Emission Estimate Emissions (metric tonnes) Source - Scope 2

Purchased Electricity

CO2

CH4*

N2O*

CO2e

7,464.6

0.0

0.0

7,464.6

Uncertainty Associated With The Corresponding GHG Emission Estimate Uncertainty (%) Source - Scope 2

Overall Uncertainty (%)

CO2

CH4

N2O

CO2e

5.8

30.1

30.1

5.8

66

Uncertainty Assessment – Guaíba (Scope 3) 2007 GHG Emission Estimate Emissions (metric tonnes) Source - Scope 3 CO2

Fossil Fuel

Mobile

Waste Management

Gasoline Diesel Heavy Fuel Oil Subtotal Solid & Wastewater

TOTAL

CH4

N2O

CO2e

1,465.5 22,148.3 0.0 23,613.7 0.0

0.53 1.2 0.0 1.7 397.9

0.17 1.2 0.0 1.3 11.2

1,529.0 22,534.1 0.0 24,063.1 11,840.0

23,613.7

399.6

12.6

35,903.1

Uncertainty Associated With The Corresponding GHG Emission Estimate Uncertainty (%) Source - Scope 3

Fossil Fuel

Mobile

Waste Management

Gasoline Diesel Heavy Fuel Oil Subtotal Solid & Wastewater

Overall Uncertainty (%)

CO2

CH4

N2O

CO2e

3.5 3.5 3.6 3.5 0.0

30.1 30.1 30.1 30.1 31.6

30.1 30.1 30.1 30.1 31.6

3.5 3.5 0.0 3.5 24.2

3.5

31.5

28.4

8.3

67

Uncertainty Assessment – Aracruz (Scope 1) 2007 GHG Emission Estimate Emissions (metric tonnes) Source - Scope 1 CO2

Fossil Fuel Stationary

Biomass Fuel

Mobile Fossil Fuel Waste Management

Coal Heavy Fuel Oil Low Sulphur Oil Diesel Propane Natural Gas Heavy Oil (LTF) Subtotal Black Liquor Woodwaste Subtotal Alcohol Subtotal Gasoline Diesel Heavy Fuel Oil Subtotal Solid & Wastewater

TOTAL

CH4

N2O

CO2e

442,466 48,959 24,449 1,686 1,456 181,156 60,674 760,846.2 0.0 0.0 0.0 0.0 0.0 1,050.8 114,610.0 20,274.2 135,935.1 0.0

4.8 1.9 0.9 0.07 0.02 3.2 2.4 13.3 143.5 168.9 312.3 0.02 0.02 0.4 6.2 1.8 8.4 3,850.3

7.2 0.4 0.2 0.01 0.002 0.3 0.5 8.6 95.7 22.5 118.2 0.02 0.02 0.1 18.4 0.5 19.1 0.0

444,799 49,116 24,528 1,692 1,457 181,324 60,869 763,785.5 32,666.7 10,525.2 43,191.9 7.7 7.7 1,096.4 120,451.3 20,475.1 142,022.8 80,856.4

896,781.3

4,184.4

145.8

1,029,864.2

Uncertainty Associated With The Corresponding GHG Emission Estimate Uncertainty (%) Source - Scope 1

Fossil Fuel Stationary

Biomass Fuel

Mobile Fossil Fuel Waste Management

Coal Heavy Fuel Oil Low Sulphur Oil Diesel Propane Natural Gas Heavy Oil (LTF) Subtotal Black Liquor Woodwaste Subtotal Alcohol Subtotal Gasoline Diesel Heavy Fuel Oil Subtotal Solid & Wastewater

Overall Uncertainty (%)

CO2

CH4

N2O

CO2e

5.4 3.6 3.6 3.5 5.4 5.4 3.5 5.1 0.0 0.0 0.0 0.0 0.0 3.5 3.5 3.6 3.5 0.0

30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 31.6

30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 47.1 47.1 47.1 47.1 47.1 30.1 30.1 30.1 30.1 31.6

5.4 3.6 3.6 3.5 5.4 5.4 3.5 5.0 42.8 32.8 42.8 44.3 44.3 22.4 3.6 3.6 3.6 31.6

4.3

29.2

38.4

4.9

68

Uncertainty Assessment – Aracruz (Scope 2)

2007 GHG Emission Estimate Emissions (metric tonnes) Source - Scope 2

Purchased Electricity

CO2

CH4*

N2O*

CO2e

7,464.6

0.0

0.0

7,464.6

Uncertainty Associated With The Corresponding GHG Emission Estimate

Uncertainty (%) Source - Scope 2

Overall Uncertainty (%)

CO2

CH4

N2O

CO2e

5.8

30.1

30.1

5.8

69

Uncertainty Assessment – Aracruz (Scope 3) 2007 GHG Emission Estimate Emissions (metric tonnes) Source - Scope 3 CO2

Fossil Fuel

Mobile

Waste Management

Gasoline Diesel Heavy Fuel Oil Subtotal Solid & Wastewater

TOTAL

CH4

N2O

CO2e

1,465.5 22,148.3 0.0 23,613.7 0.0

0.5 1.2 0.0 1.7 397.9

0.2 1.2 0.0 1.3 11.2

1,529.0 22,534.1 0.0 24,063.1 11,840.0

23,613.7

399.6

12.6

35,903.1

Uncertainty Associated With The Corresponding GHG Emission Estimate Uncertainty (%) Source - Scope 3

Fossil Fuel

Mobile

Waste Management

Gasoline Diesel Heavy Fuel Oil Subtotal Solid & Wastewater

Overall Uncertainty (%)

CO2

CH4

N2O

CO2e

3.5 3.5 3.6 3.5 0.0

30.1 30.1 30.1 30.1 31.6

30.1 30.1 30.1 30.1 31.6

3.5 3.5 0.0 3.5 24.2

3.5

31.5

28.4

8.3

70

References

71

References Environment Canada (2004) Canada’s Greenhouse Gas Inventory. 1990-2002. August. International Council of Forest and Paper Associations (2005). Calculation Tools for Estimating Greenhouse Gas Emissions from Pulp and Paper Mills. Version 1.1. July. IPCC (1995). Climate Change 1995: The Science of Climate Change. IPCC (1996). Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories, Greenhouse Gas Inventory Reference Manual. IPCC (2000). Good Practice Guidance and Uncertainty Management in National Greenhouse Gas Inventories. IPCC (2006). 2006 IPCC Guidelines for National Greenhouse Gas Inventories, IPCC National Greenhouse Gas Inventories Programme. McCann T.J. (1994). Uncertainties in Canada’s 1990 Greenhouse Gas Emission Estimates – A Quantitative Assessment. WRI/WBCSD 2001. A Corporate Accounting and Reporting Standard. WRI 2004a. The Greenhouse Gas Protocol – A Corporate Accounting and Reporting Standard. Revised Edition. March. WRI 2004b. GHG Protocol Initiative – GHG Estimation Tools.

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