The Benefits of Speaking GHG

Polluted Sky

Testing Your Knowledge

Remember – at the end of this article, step-by-step answers are provided that serve as a basic template if you want to replicate the calculations for your organization.

Sample questions:

1. Assume your company is considering installing a solar PV panel on a carport that generates 1,000,000 kWh per year. If renewable energy credits (RECs) are trading for $8 per REC, what is the cumulative value of the RECs? (Assume you live in an area where you could sell the RECs, and ignore administrative/trading costs).

a.            $ 800

b.            $ 8,000,000

c.             $ 0

d.            $ 8,000

2.  Consider a manufacturing process that requires 10,000 MMBtu per year and this energy is supplied by an old, oil-fired boiler (uses residual fuel oil #6) that is only 50% efficient. For energy savings, you retrofit to a natural gas-fired boiler that is 80% efficient. In addition to the dollar savings, your management team wants to know the CO2 emissions savings from the retrofit.

3.  Assume your company is investigating the marketing benefits of switching its fleet from regular diesel fuel to biodiesel (B20). The fleet currently consumes 50,000 gallons of diesel fuel per year. What would be the carbon emissions savings that you could report?

4. You suddenly get promoted to manage energy projects in different states. Considering that emissions per kWh vary by state (due to different power plant fuel mixes), what are the CO2 emissions for a facility in Miami that uses 1,000,000 kWh per year?

5.  Considering the options below, which is the most cost-effective choice to offset your carbon footprint? 

a.            Buy RECs from a windmill in Oklahoma at $10 per REC

b.            Buy CERs (carbon credits) at $15/metric ton CO2e

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