Projects under the oil and gas fugitives method can earn Australian carbon credit units (ACCUs) by capturing gas leaks at oil and natural gas facilities and combusting them into a less harmful gas.
When to use this method
The oil and gas fugitives method may be suitable for your business if you:
- own an oil and gas facility
- can use a flare emission for any vented or leaked gases.
Emissions are decreased by using equipment to capture gases that would otherwise be released into the air. Projects under this method redirect and combust these gases in a flare device.
Combustion converts the gas, primarily methane, into carbon dioxide which has a lower global warming potential.
Legislation
Before you plan or register your project, make sure you read and understand the legislative requirements and the method:
Eligibility
To be eligible, your facility must conduct a project activity that captures and reroutes fugitive leak and venting emissions to a flare.
You must also meet the Australian Carbon Credit Unit (ACCU) Scheme eligibility requirements.
Exclusions
There are exclusions under this method:
- fugitive leak emissions as a result of coal mining activities and oil or gas exploration well drilling activities
- process venting emissions from equipment that’s used in the production process where equipment has been installed after the declaration day.
Relevant legislation
- Section 8 of the method
- Section 10 of the method
Method requirements
Project activities must occur at a facility. They must:
- install and operate gas capture equipment to capture and re-route:
- fugitive leak emissions
- process venting emissions
- re-route emissions captured to be combusted in flare device equipment.
Relevant legislation
- Part 3 of the Act
- Part 3 of the method
- Section 6 of the method
Specialist skills are required for projects under this method. This is due to the complexity and technical knowledge requirements.
Specialist's include:
- Registered professional engineer (PE)
- Certified Energy Manager (CEM)
- Certified Measurement and Verification Professional (CMVP)
- Verified experience in energy or facility management, or measurement and verification.
Relevant legislation
- Section 13(f) of the rule
7 years.
Relevant legislation
- Part 5 of the Act
Abatement is calculated for projects by measuring the improvements in the level of emissions.
Emissions from burning the redirected gas are compared to emissions that would occur without the project.
Emissions are adjusted by a discount factor for the sampling uncertainty associated with the component gas measurement and any significant ancillary emissions associated with the project.
The amount of abatement decreases as uncertainty increases beyond the permitted 5% abatement.
Relevant legislation:
- Section 13 of the method
You must monitor:
- gas quantity including the molar fraction of all component gases
- quantity of ancillary electricity
- fuel consumed
- operation of the flare device at minimum intervals.
You must also remember to meet the general monitoring requirements of the Act.
Relevant legislation:
- Part 17 of the Act
- Sections 31, 32 and 35 of the method
You must keep records of:
- decisions about the fugitive leak measurement period
- usage of historical sampling data for gas measurement
- assessments of whether ancillary emissions are more than 5% of net abatement.
You must remember to also meet the general record-keeping requirements of the Act.
Relevant legislation:
- Part 17 of the Act
- Part 17 of the rule
- Division 2 of the method
You must report any emissions included in a National Greenhouse and Energy Reporting (NGER) report.
You must report this by finding:
- the reporting entity and relevant facility from NGER
- the National Greenhouse and Energy Reporting (Measurement) Determination 2008 (NGER Determination) that applies to estimate emissions.
You must remember to also meet the general reporting and notification requirements of the Act and the rule.
Relevant legislation:
- Part 6 of the Act
- Part 6 of the rule
- Section 25 of the method
We provide you with an audit schedule when your project's declared.
You must provide audit reports according to this schedule.
We schedule at least 3 audits and additional audits can be triggered.
You can refer to our audit information to find out more.
Relevant legislation:
- Part 19 of the Act
- Part 6 of the rule
Documents and resources
- Information on the oil and gas fugitives method - Department of Climate Change, Energy, the Environment and Water
- Oil and gas fugitives - project application guidance