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5. Purchasing coal by opt-in participants

Climate Change (Stationary Energy and Industrial Processes) Regulations 2009: 45–47

5.1   Overview

Coal purchasers who buy more than 250,000 tonnes of coal per annum from one or more domestic miners can choose to opt-in to the NZ ETS as a coal purchasing participant.

The formula for calculating emissions associated with purchasing coal accounts for greenhouse gas emissions will occur as a result of the coal being combusted. Any purchased coal which is then exported is explicitly deducted from the equation.

Information must be recorded for each class of coal: lignite, sub-bituminous and bituminous. Because the emissions factor is expressed in energy terms, both tonnes of coal and gross calorific value for each class of coal are required.

An optional stockpile adjustment allows for the liability to be carried over for coal that is purchased in one year but used in another.

5.2   Information you are required to collect

The following information must be collected for each class of coal purchased:

Information to collect How to collect
  • tonnes purchased
  • as recorded at the point of sale
  • tonnes exported
  • as recorded at the customs point
  • calorific value

 
  • measured on a consistent basis
  • unit of measurement expressed as TJ/t
  • as a gross or higher heating value
If you wish to make a stockpile adjustment* the following information must also be collected:
  • tonnes of coal added to the stockpile
  • record during the year for a typical stockpile
  • if adding to an amalgamated stockpile, record total tonnes of the base stockpile
  • calorific value of coal added
  • can be measured or obtained from the supplier
  • expressed as TJ/t
  • as a gross or higher heating value
  • tonnes of coal removed
  • record during the year for a typical stockpile
  • measure in aggregate if removed from an amalgamated stockpile

* Further information on stockpile adjustments can be found in Schedule 1 of the SEIP Regulations.

5.3   Example calculation

Southland Generation Ltd (SGL) purchased 270,000 tonnes of lignite in the year from a NZ ETS coal-mining participant at Roxburgh. The class of coal purchased has a gross calorific value of 0.01676 TJ/t. The company has not applied for a UEF. Southland Generation Ltd added 20,000 tonnes to the coal stockpile. The stockpile calorific value was estimated at 0.01698 TJ/t using the methodology outlined in Schedule 1, section 7.

Class of coal Quantity purchased (t) Gross calorific value (TJ/t) Stockpile adjustment Quantity exported
(t)		 Emission factor
(tCO2-e/TJ)		 Emissions (tCO2-e)
Lignite (Roxburgh) 270,000 0.01676 20,000 0.01698 0 n/a 91.95 384,866

Emissions associated with purchased coal are calculated as purchases less any stockpile adjustment minus exports:

E = [(A × CV1) – (S × CV2) – (C × CV1)] × EF

Emissions from lignite purchased

= [(270,000 × 0.01676) – (20,000 × 0.01698) – (0)] × 91.95
= 384,866 tonnes CO2-e


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