♦ Energy and greenhouse gases

Although IPL's energy use and GHG emissions increased with increased production, energy efficiency improvements resulted in the maintenance of targeted global reductions in GHG emissions per tonne of ammonia. However, due to an unexpected maintenance issue at our Moranbah site in Australia, our global GHG per tonne of nitric acid increased by 2 percent, with a further increase expected in 2019.

 

New equipment to address this issue has been fabricated and delivered, and will be installed at the Moranbah site in 2019 to enable 2020 targets to be met. The targeted reductions in GHG per tonne of ammonia produced was achieved due to targeted energy efficiencies at our Waggaman Louisiana ammonia plant which were linked to executive remuneration through the IPL Long Term Incentive plans, as explained on page 32 of our 2018 Annual Report.

Energy use

IPL used 68,500,621 gigajoules (GJ) of energy over the past year, 2,113,300of which was purchased electricity. Approximately 80 percent of the electricity purchased was generated from non-renewable sources. Approximately 20 percent of the purchased electricity (indirect energy) was generated from renewable resources, mostly hydroelectric. Natural gas and diesel amounts used as raw materials and on-sold in our products have been included in our energy use figure. Approximately 1 percent of our direct energy is from CO2e-free sources, which includes electricity that is generated from heat captured during the manufacture of sulphuric acid.

Greenhouse gas emissions

In 2018 our recorded Scope 1 (direct) and 2 (indirect) absolute GHG emissions increased to 3,751,403 tonnes of carbon dioxide equivalent (CO2e). The total figure comprises 3,423,867 tonnes of Scope 1 (direct) emissions and 327,526 tonnes of Scope 2 (indirect) emissions. While a portion of this increase was due to increased production, the unexpected maintenance issue at Moranbah reported above resulted in an increase in emissions of N2O at the site. A third party was engaged to provide an assurance opinion over our Australian GHG emissions, energy consumption and production figures for the period 1 July 2017 to 30 June 2018, with the third party issuing an unqualified opinion.



Improving our performance

Continuous improvements made by our manufacturing plants to reduce energy use and GHG in 2018 include.

At Cheyenne, Wyoming, the replacement of a prism membrane and painting of the primary reformer with an internal coating to improve firing efficiency will reduce natural gas use and therefore emissions.

• At Louisiana, Missouri, 617 lighting fixtures throughout the plant were rewired to use LED bulbs, improving lighting, reducing annual energy use by 28,700 kWh and reducing annual costs by $29,750.

• At Carthage, Missouri, an explosives manufacturing optimisation project reduced annual energy use by 160,000 kWh and annual scope 2 GHG emissions by 110 tCO2e.

• At Moranbah, Queensland, a project to preheat deaerator feedwater with process heat currently lost to the atmosphere is expected to save 196,000 GJ of natural gas, reduce GHG emissions by 10,000 tCO2e and save over $1,000,000 each year.

• During 2018, IPL’s Waggaman, Louisiana ammonia plant captured 10,990 tCO2e for use by a neighbouring melamine manufacturing plant, avoiding the release of these GHG emissions to air.


We also quantified the Scope 3 emissions associated with our shipping for the third year in 2018, and offset these emissions with the purchase of voluntary carbon credits.