Step 1 - Define system boundaries
Everything shown in red color, along with Generated Electricity (shown in sky blue) is to be monitored
Step 2 - Monitoring Method
1. Determine quantities of fuels and input materials consumed
2. Determine calculation factors e.g. net calorific value, emission factor
Fuels – from Annex E of the document CBAM Guidance_non_EU installations
Process CO2 emissions – using a mass balance approach (carbon in – carbon out) — anodes & soda ash, for example
Electricity – from any available public dataset for your country
PFC (CF4 and C2F6) emissions – use either the slope method or the overvoltage method described in the document CBAM Guidance_non_EU installations
3. Calculate emission by multiplying consumption with calculation factor
Step 3 - Attribution of direct and indirect emissions
Apply corrections –
Correction for exported waste Gas.
Step 4 and 5 – Precursors and calculation of Specific Embedded Emissions
Step-by-step calculations for SEE
How to read this table –
Input – This column shows all the inputs used in the Steel making process
AD (tonnes) – is the amount of the input material used
CC – is carbon content – every material has % of carbon content. We need to use that in the calculation
Bio fraction – fraction of the energy content of the bioenergy product
16% of the plastic waste is biomass hence that should be excluded from the total emission
i.e. subtract biomass fraction from the Emissions calculated for that Input
Formulae
Biomass Fraction = AD CC% Emission Factor * Bio fraction
Emissions = AD CC% Emission Factor – Biomass Fraction
Sum of the Emissions of all the inputs is taken
Output is the produced CBAM goods in this process
Output AD is considered negative because this is the carbon that is still there in a final product and hence it needs to be subtracted from the Sum of Input Emissions
Total direct emission = sum of Input Emission + Sum of Output Emissions
2. Calculate total Attributed direct emission
Apply correction of waste gas export
Total attributed direct emissions = Total direct emission of the installation + Deduction for waste gasses
Note: While calculating the direct emissions we have calculated the entire share of waste gasses emissions.
But a part of the waste gasses was actually transferred to the power plant. Powerplant will then combust these waste gasses and the emissions happen at the powerplant
Though the emissions of the waste gasses physically happened at the powerplant, share of this waste gas emission is attributed to the steel production and share is attributed to the powerplant
Hence we need to apply a the waste gasses correction to the total emissions
SEE i.e Specific embedded emissions are further used to calculate the Tax price or the amount for which you need to buy certificates. We have built software to make this process easy for you . If you need any further clarification or understanding, feel to reach out to me at nb@thinksmartin.com or find more details on https://cleancarbon.ai/cbam/
