ERM Power Energy Efficiency Project

The ERM Power Energy Efficiency Project is an aggregated industrial energy efficiency project managed by Shell Energy Trading Pty Ltd. Unlike land-based carbon projects, this initiative is not confined to a single geographic coordinate but encompasses activities across multiple commercial and industrial sites throughout Australia. Consequently, there is no single nearest town or specific land use classification; instead, the project operates within the built environment, servicing sectors such as manufacturing, commercial real estate, and industrial processing.

The project was registered in November 2020 and operates under the Carbon Credits (Carbon Farming Initiative, Industrial Electricity and Fuel Efficiency) Methodology Determination 2015. This methodology credits the reduction of greenhouse gas emissions achieved by improving the efficiency of energy-consuming equipment. The project involves a diverse range of activities, including upgrading boilers, installing variable speed drives, improving HVAC systems, and retrofitting lighting. By establishing a baseline of energy use and demonstrating reductions through these upgrades, the proponent generates Australian Carbon Credit Units (ACCUs).

As the project focuses on mechanical and electrical infrastructure rather than biological sequestration, traditional environmental metrics like rainfall and soil type are not applicable. Instead, the "environment" consists of various industrial facilities and commercial buildings where equipment like air compressors, refrigeration units, and building management systems are optimized.

An interesting note regarding the proponent is that ERM Power, the original namesake of the project, was the second-largest commercial and industrial electricity retailer in Australia before being acquired by Shell in 2019. This project likely serves as a mechanism for Shell Energy to assist its large commercial customer base in lowering their carbon footprint and energy costs while generating carbon credits as a value-add service. The extensive list of registered activities, spanning from "Cloud computing" to "High speed roller doors", highlights the broad scope of energy interventions eligible under this scheme.