Atmospheric Emissions - Power Generation

• EC Directive 96/61 on Integrated Pollution Prevention and Control
• Pollution Prevention and Control Act 1999
• Offshore Combustion Installations (Prevention and Control of Pollution) Regulations 2001
• The Offshore Combustion Installations (Prevention and Control of Pollution) (Amendment) Regulations 2007

The 2001 Regulations implement the IPPC Directive (EC Directive 96/61) and apply to combustion installations located on offshore oil and gas platforms where an item of combustion plant on its own, or together with any other combustion plant installed on a platform, has a rated thermal input exceeding 50 MW(th). The 2007 Amendment Regulations implement the amendments made to EC Directive 96/61 by the Public Participation Directive 2003/35/EC and bring in tighter requirements for public consultation as part of the permit application process.

The IPPC Directive has recently been codified (Directive 2008/1/EC of the European Parliament and of the Council of 15 January 2008 concerning integrated pollution prevention and control). The codified act includes all the previous amendments to the Directive 96/61/EC. The substance of Directive 96/61/EC has not been changed and the adopted new legal act is without prejudice to the new Proposal for a Directive on Industrial Emissions.

• MARPOL 73/78 Annex VI - Prevention of Air Pollution from Ships Annex VI entered into force on 19 May 2005 and a revised Annex VI was adopted in October 2008 which entered into force on 1 July 2010.
• Merchant Shipping (Prevention of Air Pollution from Ships) Regulations 2008
• The Merchant Shipping (Prevention of Air Pollution from Ships) (Amendment) Regulations 2010

Annex VI is concerned with the control of emissions of ozone depleting substances, NOx, SOx, and VOCs and require ships (including platforms and drilling rigs) to be issued with an International Air Pollution Certificate following survey. There are a number of exclusions and exemptions, which limits the applicability of Annex VI to offshore oil and gas operations (see Performance Standards).

Note: MARPOL 73/78 also defines a ship to include "floating craft and fixed or floating platforms" and these are required where appropriate to comply with the requirements similar to those set out for vessels.

The Merchant Shipping (Prevention of Air Pollution from Ships) Regulations 2008 implement Annex VI in the UK. Some aspects of Annex VI are already in place including requirement for marine fuel oil suppliers to be registered and limits set on NOx emissions from marine diesel engines (including those on offshore installations) (see Performance Standards)

2010 Amendment Regulations make amendments to include further requirements from the revised Annex VI and to implement provisions concerning the sulphur content of marine fuels contained in Council Directive 1999/32/EC (see below).

• Directive 2005/33/EC amending Directive 1999/32/EC as regards the sulphur content of marine fuels
• Sulphur Content of Liquid Fuels (Scotland) Regulations 2000
• Sulphur Content of Liquid Fuels (England and Wales) Regulations 2000

These Regulations implement Directive 1999/32/EC in the UK setting maximum sulphur content for fuel including heavy fuel oil and gas oil including marine fuel. These Regulations will be replaced in their entirety for marine fuel once new UK wide Regulations are put into place. From 1st January 2008 sulphur content of gas oil must not exceed 0.1%.

• Climate Change Act 2008

The Act sets up a framework for the UK to achieve its long-term goals of reducing greenhouse gas emissions and to ensure steps are taken towards adapting to the impact of climate change. The Act enables a number of elements (see Pending Legislation).

• Council Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading with the community

The Directive applies (amongst others) to installations with combustion facilities with a combined rated thermal input of >20 MW (th). This is a statutory scheme for those relevant installations. The aim of the Directive is to achieve reductions in GHG emissions as outlined by the Kyoto Protocol.

The EU Emissions Trading Directive covers the six greenhouse gasses that are included in the Kyoto Protocol. However to date only CO2 emissions are covered. The scheme may be expanded in future phases to the other greenhouse gases (See EU ETS Topic for further details).

• UN-ECE Protocol on Polllutant Release and Transfer Registers
• Council Regulation 166/2006 concerning the establishment of a European Pollutant Release and Transfer REgister (E-PRTR Regulation).

• Waste and Emissions Trading Act 2003

This Act provides for the enforceability of penalties, including fixed financial penalties, in the current voluntary UK Emissions Trading Scheme 2002. Part 2 of the Waste and Emissions Trading Act 2003 amends Schedule 1 to the Pollution Prevention and Control Act 1999. The amendment provides for penalties in any future emissions trading schemes.

• National Emission Ceilings Regulations 2002

These Regulations set national ceilings and a requirement for the development of a reduction programme for sulphur dioxide, nitrogen oxides and volatile organic compounds in the UK. These Regulations apply to emissions from land, territorial sea and the UKCS.

At present, the UK government believes that it can meet targets through existing targets onshore. However, this does not preclude future targets for offshore operations. The UK Government is in the process of preparing a national programme for reduction of these emissions.

• Aarhus Convention on Access to Information, Public Participation in Decision Making and Access to Justice in Environmental Matters 1998
• EC Directive 2003/35/EC providing for public participation in respect of the drawing up of certain plans and programmes relating to the environment and amending with regard to public participation and access to justice Council Directives 85/337/EEC and 96/61/EC (Public Participation Directive)

The Public Participation Directive implements the second part of the Aarhus Convention. Directive requires an increase in the already high level of public participation in the process by which regulators consider environmental implications for offshore activities (see Public Participation Directive).

• Merchant Shipping (Pollution) Act 2006

This Act enables the Government to implement Annex VI of the MARPOL 73/78 Convention (see Pending Legislation) and amends the Merchant Shipping Act 1995 to enable implementation of Annex VI using the same powers used to implement other MARPOL 73/78 Annexes.

PPC Regulations

Guidance Notes on the Offshore Combustion Installations (Prevention and Control of Pollution) Regulations 2001

Guidance Notes on Energy Assessment Methodology (pdf file)

Offshore PPC (Combustion Plant) Monitoring Guide (pdf file) (Revised 2009) (see Monitoring)

Guidance on Substantial Change Assessment - This guidance is currently being amended and therefore if you have any queries then please contact the Environmental Management Team to discuss on 01224 254054, or contact your relevant Environmental Manager.

Further guidance on applications for permits under the PPC Regulations are available from DECC website.

EU Emissions Trading Scheme

See EU ETS Topic

MARPOL Annex VI

Marine Information Notice (MIN 317) - The Sulphur Content of Gas Oil and Marine Gas as per Council Directive 199/32/EC (pdf file)

MIN 371 (M) Sulphur Content of Liquid Fuels Directive, 1999/32/EC, as amended by 2005/33/EC relating to the sulphur content of marine fuels - ships at berth (interim)

MIN 395 - Revised Annex VI of MARPOL: Prevention of Air
Pollution from Ships (pdf file)

MGN 142 - MARPOL 73/78 – ANNEX VI: Control of Emission of Nitrogen Oxides (NOx) from Marine Diesel Engines (pdf file)

MGN 381 (M+F) Survey and Certification Requirements for the Merchant Shipping (Prevention of Air Pollution from Ships) Regulations 2008

MGN 386 (M+F) Survey and Certification Requirements for The Merchant Shipping (Prevention of Air Pollution from
Ships) Regulations 2008 - additional guidance

MGN 394 (M+F) Local Supplier of Fuel Oil Registration

MSN 1734 (M+F) Type Approval of Marine Equipment (EC Notified Bodies)

MSN 1819 (M+F) The Merchant Shipping Prevention of Air Pollution from Ships) Regulations 2008

General Guidance

Defra and DECC Guidance on how to measure and report your greenhouse gas emissions (pdf file)

PPC Regulations

No offshore combustion installation* can be operated except in accordance with a permit issued under the PPC Regulations.

A permit is required for any combustion installation (gas turbines, diesels, direct drive compressors, heaters, etc.) located on an offshore oil or gas platform, or other producing facility, where an item of combustion plant on its own, or together with any other combustion plant installed on a platform, has a rated thermal input exceeding 50 MW (th). This 50 MW (th) threshold applies to all operational combustion equipment.

*'Combustion Installation' refers to the total combustion plant on a platform or group of co-located platforms and is distinct from the offshore installation itself. There are a number of exclusions including for example shuttle tankers and mobile drilling rigs.

** A 'substantial change' means 'in relation to combustion installations, a change in operation which may have significant negative effects on human beings or the environment'. (See Renewal and Variation for details of process of determining substantial change).

MARPOL Annex VI

A UK Air Pollution Certificate (UKAPP) or International Air Pollution Certificate (IAPP)

EU Emissions Trading Scheme

See EU ETS Topic

PPC Regulations

Permit application shall be in writing and shall contain a description of the following:

• A description of the installation, its activities and its location;
• The materials, substances and energy used in or generated by the installation;
• The sources of emissions (release routes) from the installation;
• The nature and quantities of foreseeable emissions from the installation into each medium as well as identification of significant effects of the emissions on the environment;
• The proposed technology and other techniques for preventing or, where this is not possible, reducing emissions from the installation;
• Where necessary, measures for the prevention and recovery of waste generated by the installation; and
• Measures planned to monitor emissions into the environment.

Information on new combustion installation(s) in new developments may be included in an Environmental Statement (ES), or otherwise attached to it by a reference in the main ES document. An application for a permit has to be made separately but a copy of the ES then need only accompany it with the covering letter indicating where the required information can be found.

The permit is based on a mass emissions approach for each of the main pollutants. As oil/gas production declines over field life, emissions will not be constant. It is envisaged that during the study phase, the operator will prepare yearly predictions of each emissions and these will form the basis for negotiation of the overall permit mass emissions (tonnes) for each pollutant. A pro forma of a typical permit application is given in Annex 1 to DECC Guidance Notes.

MARPOL Annex VI

MODU or others registered as a ship will be inspected by the MCA.

Fixed installations will be insepcted by DECC.

EU Emissions Trading Scheme

See EU ETS Topic

PPC Permit

All applications for a permit should be sent to Graeme Cobb at DECC EDU Licensing and Consent Unit (LCU-OED), Atholl House, 86/88 Guild Street, Aberdeen AB11 6AR (graeme.cobb@decc.gsi.gov.uk).

MARPOL Annex VI

See above

EU Emissions Trading Scheme

See EU ETS Topic

PPC Permit

Any new installation or existing installation undergoing a substantial change will need a permit in place before operations or modifications commence. Applications should be submitted 6 months before start up of new combustion plant.

MARPOL Annex VI

For new rigs/installations survey and certification before first sail out.

For existing rigs/installations, inspections and certification will be undertaken at time of next inspection.

EU Emissions Trading Scheme

See EU ETS Topic

Annex VI only applies to diesel engines over 130 KW and does not apply to turbines.

Emissions arising directly from the exploration, exploitation and associated offshore processing of seabed mineral resources are exempt from Annex VI, including the following:

• emissions resulting from flaring, burning of cuttings, muds, well clean-up emissions and well testing;
• release of gases entrained in drilling fluids and cuttings;
• emissions from treatment, handling and storage of reservoir hydrocarbons;and
• emissions from diesel engines solely dedicated to the exploitation of seabed mineral resources.

In addition, Regulation 13 concerning NOx does not apply to emergency diesel engines, engines installed in lifeboats or equipment intended to be used solely in case of emergency.

Any PPC Permit granted by the Secretary of State will have conditions relating to the following (amongst others) in place:

• Required pollution prevention measures in particular through the application of Best Available Technology (BAT);
• Requirement that the production of non-gaseous waste is avoided where possible by using clean technologies or using waste minimisation/waste recovery technologies;
• Energy is used efficiently;
• Necessary measures are taken to prevent accidents and limit their consequences in relation to the environment;
• Necessary measures are taken to ensure any liquid or solid wastes are recovered for onshore recycling or disposal or offshore disposal in accordance with any other relevant legislation;
• Necessary measures are taken upon cessation of activities to avoid any pollution risk and to decommission and remove the combustion installation;
• Emission controls are in place in the form of emission value limits or equivalent parameters or technical measures or a combination of the two;
• Monitoring and measurement requirements to enable verification of compliance with the permit;
• Provisions on the minimisation of long-distance and transboundary pollution; and
• Measures relating to conditions other than normal operating conditions e.g. process upsets and start-ups.

If the application includes a plan to reduce pollution from the combustion installation, then the Secretary of State may allow the condition to achieve energy efficiency to lapse but only for six months starting with the date the permit is issued.

DECC's preferred approach is to consider the direct mass emissions of combustion pollutants from the entire platform or floater, rather than emissions quantified in terms of mass emissions per unit volume of exhaust gas from each item of combustion plant. In an offshore context, it is considered that this will enable Operators to devote more resources to emissions from the bigger sources (e.g. main power generation turbines), which dominate the releases offshore.

The requirement to undertake an energy assessment is a condition of most offshore PPC permits. The energy assessment should incorporate three main elements:

• Independent review of emissions of Greenhouse Gases (GHG) and other atmospheric pollutants and investigation and quantification of any potential
  opportunities to reduce emissions;
• Independent review of the energy usage on an asset, and investigation and quantification of any potential opportunities to avoid energy wastage; and
• Demonstration to DECC’s satisfaction that the whole plant is being operated in the most energy efficient manner that is financially viable.

Guidance is now available on the methodology for undertaking an energy assessment (see Guidance)

See EU ETS Topic for EU ETS performance standards.

Regulation 18 of Annex VI requires that every delivery of diesel be recorded on a bunker delivery note and that a sample of each delivery to be taken and retained for 12 months. However, the MCA has taken a pragmatic approach and will not require the full MARPOL procedure to be applied for the delivery of fuel to an installation. MCA would like to see a common industry procedure developed and has been in discussion with Chamber of Shipping on this. Oil & Gas UK is involved with these discussions.

Diesel must only be supplied by a registered Fuel Oil Supplier. For the list of registered suppliers see MCA Fuel Oil Supplier Register.

The MCA has issued a Marine Guidance Note (MGN 142) that establishes NOx emission limits for marine diesel engines with more than 130 kW power output, which are installed in ships, vessels or offshore installations constructed after 1st January 2000.  The same limits will also be applied to marine diesel engines with more than 130 kW power output which undergo a major conversion where the maximum continuous rating of an engine is increased by more than 10%.  MGN 142 also provides guidance for testing, survey and certification and for demonstrating compliance of such engines. These are now known as Tier I limits.

Revised Annex VI requirements sets a 20% reduction over current NOx (Tier 1) standards for ships constructed on or after 1 January 2011, and these are to be known as Tier II limits.

Ships constructed on or after 1 January 2016 operating n a NOX emission control area, a further 80% reduction will apply (Tier III limits). The more stringent Tier III standards are expected to be met through developing technologies such as water induction into the combustion process, exhaust gas recirculation and selective catalytic reduction.

The new three tier approach and specific emission limits are summarised in MIN 395. NOX limits for existing marine diesel engines are also described.

The current global cap of 4.5% sulphur content will be reduced to 3.5% from 1 January 2012 and further reduced to 0.5% from 1 January 2010 (however, this will be subject to a review on availability of suitable fuel to be completed no later than 2018).

With regard to SOX emission control areas the current cap of 1.5% sulphur content has been reduced to 1.00% from 1 July 2010 and 0.1% from 1 January 2015.

From 1st January 2008 the sulphur content of marine gas oil must not exceed 0.1%. For further information reference can be made to the Marine Information Notice (MIN 317) - The Sulphur Content of Gas Oil and Marine Gas as per Council Directive 199/32/EC (pdf file). Note - marine diesel is excluded from this requirement.

The Public Participation Directive (PPD) requires a number of aspects of public notification and consultation, and the Offshore Combustion Regulations have been amended to incorporate these:

a)       An outline of main alternatives (if any) should be included in permit applications;

b)      The public should be notified and made aware of any decisions making available relevant consents and permits with the reasons and considerations on which decisions have been based;

c)       Public notification at the earliest possible time where the information can be provided on the nature of possible decisions; and

d)      Making available within timeframes the necessary reports, advice issued to the regulator in accordance with legislation when applications were made and information relevant to a decision which only became available after advertisement of an application.

Where possible, direct measurements should be taken for emission reporting or generation of machine specific factors for emission calculations. Although there are inherent inaccuracies in the measurement of emissions in an exhaust stack, it is considered by DECC to be an acceptable method of determining the emissions from a machine.

Pollutant gases and the thermal efficiency of the plant have to be monitored and reported. The main pollutant gases that will need monitoring are:

1. Oxides of nitrogen and other nitrogen compounds.

2. Sulphur dioxide and other sulphur compounds.

3. Carbon monoxide.

4. Unburned Hydrocarbons - UHC*.

(* In practice, it is expected that only UHC as an overall 'total hydrocarbons' will be measured/monitored, rather than each individual hydrocarbon gases, although an indication of the ratio between methane and other hydrocarbon gases should be estimated).

In order to establish an emissions baseline, direct measurement of combustion plant exhausts must be carried out. This applies to all combustion plant including those deemed as "small combustion plant" as defined in DECC Guidance Note. Priority should be given to monitoring of the principal emitters i.e. the gas turbines. Monitoring of any remaining combustion plant, which has not been included in the first phase, should be conducted thereafter.

Predictive Emissions Monitoring Systems (PEMS) are considered an acceptable means of monitoring emissions from turbine exhausts as well as offering machine management benefits. However, direct measurements must be carried out initially to verify the emissions estimate from the PEMS.

More information on measurement and monitoring requirements can be obtained from Offshore PPC (Combustion Plant) Monitoring Guide (pdf file), in particular information on frequency of measurements required.

The monitoring programme must be agreed with DECC before commencing the programme, and the initial survey must be completed within twelve months of first permit issue or first oil and gas. Monitoring reports must be submitted direct to DECC at emt@decc.gsi.gov.uk within 3 months of completion of each survey or by any other deadline given in the PPC permit. The frequency and scope of ongoing monitoring surveys will be reviewed following an assessment of the results of each survey.

DECC has revised/updated the Offshore PPC (Combustion Plant) Monitoring Guide (pdf file), to provide clearer guidance to operators on what constitutes ‘Best Practice’ with respect to offshore emissions monitoring.  The principle objective was to detail the minimum requirements for valid initial baseline measurements, and to outline how these can be achieved.

See EU ETS Topic for EU ETS monitoring and sampling requirements

PPC Permit

Emissions reporting is required for all relevant installations. Annual reporting will be required thereafter. Wherever possible this data should be gathered from sampling rather than calculated from emissions factors (see Monitoring).

DECC have stated that generic emissions factors such as those produced by Oil & Gas UK will no longer be an acceptable means of estimating emissions for reporting under the Regulations. An approach more tailored to the specific equipment item will be required. In theory, there may be some scope to use vendor emission factor data to predict emissions rather than installing a monitoring port and carrying out machine specific measurements. However due to the limited dataset available, this approach could not be assumed to give good agreement in all cases. Extensive verification is required in order for such a method to meet with DECC approval.

Operators should also provide information on pathways of release, methods of relevant monitoring, sampling and analysis which are acceptable to DECC, and provide evidence that quality assurance procedures are in place to ensure all monitoring and test results are sufficiently accurate and reliable. Where the Operator uses a specialist monitoring contractor, then the Operator shall be responsible for ensuring that the appropriate technical skills, equipment, QA procedures, etc. are in place within the contractor's organisation.

EU Emissions Trading Scheme

See EU ETS Topic

PPC Permit

Statutory reporting required under the PPC Regime is to be submitted via the EEMS Atmospheric Reporting system. The Atmospherics reporting form can be obtained from the EEMS website.

EU Emissions Trading Scheme

See EU ETS Topic

PPC Permit

Completed EEMS reports are submitted electronically to the EEMS website.

EU Emissions Trading Scheme

See EU ETS Topic

PPC Permit

EEMS report to be submitted by 7th February each year. The section of the report of relevance to the PPC Permit will be verified by EEMS and then returned to the operator for signature. EEMS will then submit the verified report to DECC by the 1st March each year. For more information see the EEMS website.

EU Emissions Trading Scheme

See EU ETS Topic

The DECC Permit Condition non-compliance Notification Form is to be used for reporting any identified non-compliances against Combustion Installation Permit Conditions issued under the provisions of the Offshore Combustion Installations Regulations 2001.

Examples of these may include, but not be limited to: exceeding total annual emissions of polluting substances from combustion equipment authorised under the permit; or failure to carry out and/or submit monitoring programme survey and findings, independent energy audits, cost benefit analysis or improvement programmes if requested by the Department.  In addition the form may be used to notify DECC of any other applicable notifications. 

The completed form should be sent to offshore.inspectorate@decc.gsi.gov.uk

Note: The form must not be used as a means of applying for any routine variation to an existing permit for changes to combustion equipment. 

Additional information can be found in the PPC Non-Compliance Guidance Notes

This regulation empowers the Secretary of State to issue a notice - known as an 'enforcement notice' - where he is of the opinion that an operator has contravened or is contravening any condition of his permit. The Secretary of State will do this by issuing a notice which will state what the contravention is, what measures must be taken to remedy or prevent the contravention and the time scale in which these measures must be taken. Such measures can include the steps to be taken to remedy any pollution caused.

It is suggested that applicants prepare a PPC application (Annex 1 of DECC Guidance Notes) detailing before and after emission profiles, and use this, together with an examination for significant environmental impact, as the basis for discussion with DECC. DECC will enter into dialogue with the applicant and will give its decision as to whether the change is considered "substantial". If substantial change is deemed likely to occur, then the initial study work can be used as input to a formal IPPC application.

DECC's Substantial Change Assessment Guidance (Word document) provides details on what information is required for an assessment to be made. This Guidance is currently under review, so any queries should be directed at the appropriate Environmental Manager within DECC Team.

DECC Draft Revised EIA Guidance details the following as a guide for evaluating substantial change.

• If there is an increase between 40,000 - 100,000 tonnes of CO2 at the host installation then this may constitute substantial change under the PPC Regulations. An application to vary the PPC permit will be required.
• If as a result of the propopsed activity there is an increase of >100,000 tonnes CO2, a new PPC application would be required.

If in the course of field production, unforeseen circumstances mean that the original permitted tonnage values of emissions are likely to show a marked increase, then either a variation to the terms and conditions of a permit can be sought, or an application for a revised permit will need to be made.

Additionally, DECC should be advised of marked change to the fuel composition or overall fuel mix.

See EU ETS Topic

• Setting emissions reduction targets in statute and carbon budgeting. The Act establishes an emissions reduction pathway to 2050 and beyond by putting into statute medium and long-term targets. In addition, the Act introduces a system of carbon budgeting which constrains the total amount of emissions in a given time period. Carbon budget periods will last five years, beginning with the period 2008-2012, and must be set three periods ahead. The Secretary of State is required to give indicative ranges for the net UK carbon account in each year of a budgetary period, to set a limit on use that can be made of international carbon credits in each budgetary period and to develop and report on his proposals and policies for meeting carbon budgets.

• A new reporting framework. The Act provides for a system of annual reporting by the Government on the UK's greenhouse gas emissions. The new Committee on Climate Change will have a specific role in reporting annually on progress, with the Government required to lay before Parliament a response to this progress report.
• The creation of an independent advisory body. The Act creates a new independent body, "the Committee on Climate Change", to advise the Government and devolved administrations on how to reduce emissions over time and across the economy and, on request, on any other matter relating to climate change, including adaptation to climate change. This expert body will advise on the optimum trajectory to 2050, the level of carbon budgets, and on how much effort should be made by the part of the economy covered by trading schemes and by the rest of the economy, as well as reporting on progress.

• Trading scheme powers. The Act includes powers to enable the Government and the devolved administrations to introduce new domestic trading schemes to reduce emissions through secondary legislation. This increases the policy options which the Government could use to meet the medium and long-term targets in the Act.

• Adaptation. The Act sets out a procedure for assessing the risks of the impact of climate change for the UK, and a requirement on the Government to develop an adaptation programme on matters for which it is responsible. The programme must contribute to sustainable development. The Act also gives powers to direct other bodies to prepare risk analyses and programmes of action, and advisory and progress-reporting functions to the Committee on Climate Change.

• Policy measures which reduce emissions. The Act will be used to support emissions reductions through several specific policy measures.

The North Sea Conference meeting in May 2006 has agreed on new reduction targets for maritime air emissions from shipping traffic. It called for a 40% reduction in NOx emissions in the long term and a reduction in the permitted sulphur content in fuel from the current 1.5% to 1%.