The overall environmental impact of fuel switching to LNG/LPG can be positive or negative in terms of GHGs depending on the efficiency of combustion and sustainability of the fuel used. However, ICS and greater combustion efficiency generally would be expected to lead to larger reductions (IEA, 2006.
An interesting example of exploring the environmental effects of LNG is the KOGAS Environmental Load project, launched by the Government of Korea in 2002 to collect the environmental load information on a range of industrial chemicals. KOGAS, the Korean company for power production, also undertook a lifecycle analysis on the fuel cycle for the LNG it produced or imported compared to coal and oil for the production of 1GWh of electricity in order to conform to the government initiative and to maintain ISO 14001 certification standards. The results apply to the fuel cycle and give an indication of where problems may arise. These results show that LNG generates less CO 2 as predicted from the low carbon/hydrogen ratio of the fuel. Production of CFCs is also much less than for other fuels. Similarly, acidification from sulphur dioxide and eutrophication from NOx levels are lowest for LNG. Finnegan (2004) shows that LPG extraction and refining contributes to SO 2 , NMHC, methane and NOx emissions, while transport of the LPG contributes to carbon monoxide and CO 2 emissions. Reinaud (2005) gives figures for CO 2 emissions from LPG refineries. Depending on the location of the refinery and the particular configuration the CO 2 emissions associated with refining are 0.586-0.715 tCO 2 /t LPG.
For calculation of these GHG emission reductions, it is recommended to apply the approved methodology for thermal energy production with or without electricity project (small scale activities) which has been developed under the Clean Development Mechanism of the UNFCCC Kyoto Protocol (CDM). This methodology helps to determine a baseline for GHG emissions in the absence of the project (i.e. business-as- usual circumstances), how emission reductions below this baseline can be calculated, and how these reductions can be monitored.
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