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4 METHODOLOGICAL GUIDANCE Fig. 116: Option 3: CO2 generated from industrial LCV gas There are two approaches that can be adopted to take this into account: a. Allocation: The environmental burdens associated with the industrial process and its upstream chains are allocated between the main product (e.g. steel or ammonia) and the LCV gas. This can be challenging, as the process can be complex, but mainly because it tends to be difficult to de- fine the basis for an allocation rule: • mass is not a suitable property on which to base allocation in this case • energy content is not applicable in the case of steel • market price may be applicable if available for LCV gas and if pricing is transparent. b. Issuing a GHG emissions debit: A GHG emissions debit is issued to the CO2 utilisation stage for that portion of the LCV gas that would other- wise have been used by the industrial process as a fuel source. This is the approach recommended by the JRC (2016). It assumes that a transparent energy needs analysis has been conducted for the upstream industrial process. After that, the GHG emissions debit has to be specified precisely, e.g. electricity from the general grid-average mix for electricity that could have been generated from the LCV gas. In the opinion of the present authors, allocation would be the more coher- ent approach to take, but the JRC methodology of awarding an emissions debit significantly simplifies the carbon accounting. Carbon source Product Emissions debit or LCV gas CO, CO2 Allocation Electricity Enrichment CCU system boundary CO2 Processing CO Industrial process Any post-production processing of the LCV gas (e.g. purification, enrich- ment) required for the CO2 utilisation process lies within the system bound- ary of the carbon utilisation stage. Option 4: CO2 from biogas or bioethanol production facilities CO2 is produced in substantial quantities during the fermentation stage of the biological (and biotechnological) production of biogas or bioethanol. Usually, this CO2 is released to the environment. Here too none of the en- 304PDF Image | Chemical Processes and Use of CO2
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