Climate Change And Energy - Performance
Greenhouse Gases and Energy Intensity
Our new five-year targets include a six per cent reduction in greenhouse gas emissions per unit of production and a 13 per cent reduction in carbon-based energy use per unit of production, both by 30 June 2012. In FY2008, our carbon-based energy intensity increased by one per cent. Our energy efficiency program is in its early stages and we will build on the lessons learned from implementing the Energy Efficiency Opportunities (EEO) Act in Australia.
In FY2008, we experienced a five per cent increase in the greenhouse gas emissions intensity index for BHP Billiton's global sites. This was due, in large part, to the switching of fuels used by third party electricity generators that serve our operations in Chile. Our strategy to achieve our greenhouse intensity targets includes improving our energy efficiency and investigating cost effective alternative energy sources, including wind, solar and geothermal power.
Note to graphs: The intensity indices have been developed as a Company-wide performance indicator for greenhouse gases and energy measures. The 'index' concepts allows performance from different business groups or sites, all of which may have different operating conditions and product mixes, to be added together to form an overall indicator per unit of production.
Greenhouse Gas Emissions
In FY2008, our total greenhouse gas emissions were 53.8 million tonnes of carbon dioxide equivalent, a slight increase on that reported in the previous reporting period (52 million tonnes). Major contributions were from aluminium smelters, Metallurgical Coal and Base Metals. A breakdown of greenhouse gas emissions by the CSGs is presented in the Environmental Data Summary.
For an example of how we are working to reduce our emissions, read our 2008 case study: WestVAMP - World’s First Power Plant to Use Coal Mine Ventilation Air as Fuel.
Emissions Due To Company Air Travel
Due to the global nature and often remote locations, of our business Company air travel is a significant indirect greenhouse gas emission by our Company. These indirect emissions from air travel have not been included in our total greenhouse gas emissions reported for Mining and Production.
Commercial flights - Total commercial air passenger kilometres travelled in the reporting period were estimated at 555,967,871 and total flight segments were estimated to be 258,360. This data is supplied by our Group Travel Agency. Applying World Resources Institute (WRI) estimates for carbon dioxide equivalent emissions (i.e. 0.11kg of CO2 per airline passenger kilometre for flights over 1600 kilometres, 0.12kg per airline passenger kilometre for flights of between 500 and 1600 kilometres, and 0.15kg per airline passenger kilometre for flights of less than 500 kilometres, which includes CO2 plus other greenhouse gases from jet fuel combustion), total CO2 equivalent emissions from BHP Billiton air travel in the reporting period is estimated to be 61,240 tonnes. Note: Emissions factor for airline passenger kilometres travelled has been updated to reflect WRI Greenhouse Gas Protocol. The emissions factor used in 2007 was taken from US DOE estimates of fuel consumed per passenger kilometre and included a radiative forcing factor that has not been adopted by WRI.
Total charter flight air passenger kilometres were not collected during the reporting period.
Emissions From the Use Of Our Products
An estimated 320 million tonnes (on an equity basis) of carbon dioxide equivalent were emitted as a result of our products being used. This figure is estimated based on standard conversion rates for FY2008 production levels. Several parameters are estimates from our purchasers, and this figure is thus not verifiable.
Energy Consumption
Our energy consumption increased slightly from 302.7 petajoules in the previous reporting period to 305 petajoules.
The Aluminium, Stainless Steel Materials and Manganese CSGs are the major consumers of energy, as presented in the graph. Details of energy performance by the CSGs are presented in the Environmental Data Summary.
Purchased electricity and coal and coke were the two major energy types used, followed by distillate and natural gas. Renewable energy from hydroelectricity accounted for approximately two per cent of total energy and is included in the purchased electricity category.
The primary fuel sources and renewable energy component of the purchased electricity are illustrated in the graph.
The Australian Energy Efficiency Opportunities (EEO) Program
The Australian Government passed the EEO Act in 2006 to improve the identification and evaluation of energy efficiency opportunities by large energy using businesses and to encourage implementation of cost-effective energy efficiency opportunities.
During the past year, our Australian assets covered under the EEO program rigorously reviewed their energy consumption data and fully evaluated their opportunities for energy savings projects. More than 400 opportunities have been identified, with some 30 per cent either identified for implementation or being implemented. The remainder of opportunities are under investigation. The nature of opportunities for energy savings range from purchasing and installing new, more efficient equipment to improving maintenance and engineering processes. Opportunities for working with local communities to raise awareness on how residents and businesses can use less energy have also been considered.
It is expected that applying what we have learned from the Australian EEO sites will contribute to our strategy for meeting our energy intensity target on a global basis.
BHP Billiton has submitted its first public EEO report.
