CLIMATE

Greenhouse gases

Figures from Statistics Norway show that Norway's greenhouse gas emissions in 2008 were 54.0 million tonnes of CO₂ equivalents (spring 2010). Norway, by 2020, shall contribute to reducing global greenhouse gas emissions equivalent to 30 per cent of Norway's emissions in 1990, which equals 15-17 million tonnes CO₂ equivalents. We still have major challenges on the road to a low-emissions society here in Norway, and Veidekke will continue its efforts in the Group to reduce our own climate impact.

(The chart is available here: http://www.ssb.no/eng/klimagasser/)

Veidekke emissions

Veidekke greenhouse gas emissions are mainly related to the CO₂ emissions from fossil fuels. A certain per centage comes from the production of electricity, volatile organic compounds from solvents, asphalt production and laying, and emissions of nitrogen oxides from blasting. To calculate the exact emission of greenhouse gases in the Group, one must have an emission factor associated with the use of electricity. The factor for Norway can vary from ca. 5 to 50 g / kWh, depending on whether we import power from the rest of Europe or not. For Denmark, it can be in the range of 300-400 (a newly built gas power plants can be around on 350 coal nearly 800).

Previously, we have used the last known net average per country as the factor. Which factor to use depends on what is to be measured. In accordance with the guidelines of IVL, Swedish Environmental Institute, we use an approach to emissions based on the most expensive electricity production (marginal rating) for projects that change the consumption of electricity. For example, we use 400 g / kWh of electricity saved in TellHus, which is comparable to electricity produced from gas power. A life cycle analysis, however, suggests 405 g/kWh.

When it comes to allocating emissions from the electricity actually used, you can do two things. Either use an electricity-mix for the Nordic countries, which are largely a common market or, alternatively, it's possible to have a certificate of origin, and use it as an individual producer people buy from. Veidekke has not signed an agreement regarding certificate of origin, and therefore for the time being uses the Nordic electricity-mix as the factor in our emissions calculations. At the same time, we use marginal evaluation on new projects, which increases or decreases according to electricity consumption.

In total, emissions from fossil oil products, electricity and district heating correspond to 73,000 tonnes of CO₂. Estimates for other emissions are 10 per cent of the total, making the total emissions for 2009, 80,000 tonnes against 84,000 for 2008.

Emissions of greenhouse gases, distribution and source

Veidekke has no known emissions of CFCs or other ozone depleting substances. Blasting produces nitrous oxide and other NOx compounds. Similarly, NOx emissions are produced in all of our combustion processes. The laying of asphalt releases moderate amounts of volatile organic compounds (VOCs). We have a goal to quantify these emissions in 2010.

Measures to reduce greenhouse gas emissions in Industrial

According to Statistics Norway's, Norwegian manufacturing accounts for around 26 per cent of total greenhouse gases emissions in Norway. Our own manufacturing division, Kolo Veidekke, is working to reduce emissions from the production of asphalt through the following measures:

• Ensure that the aggregate materials dry (particularly through the use of storage halls) to decrease energy consumption
• Increasingly converting from oil to gas (preferably natural gas, propane but also contributes well)
• Programme for periodic monitoring of dryers and adjustment of burners to increase effectiveness
• Increase the extent of partially-warm production, which decreases energy requirements in production
• Reduced temperature in all production

Employee travel

Number of registered flights for employees in Norway was reduced from 25 000 to 18 105 in 2009, or approx. 24 per cent per employee / year. This applies to travel through a registered travel agent. In Sweden and Denmark a large portion of orders are placed directly, which also occurs in Norway, so that the numbers are somewhat uncertain. By adding a 25 per cent safety margin, employee travel is then equivalent to CO₂ emissions in the order of 1 700 tonnes, or just over two per cent of the company's total emissions.

Business travel and employee travel to the workplace is estimated at 18 million kilometers, and a CO₂ emissions of approx. 4 500 tonnes or 5.5 per cent of the company's total emissions. A survey was conducted on the travel habits of parts of the organisation, and the answers seem so interesting, that a similar survey for the entire organisation may be appropriate. In this way we can ascertain emissions figures that are more accurate and possibly find a basis for incentive programs to change behavior.

Innovation - the development of low carbon cement

Together with Norcem, Veidekke will test a new type of cement to help reduce greenhouse gas emissions during production. The cement will be produced with 50-55 per cent alternative fuel in addition to replacing 35 per cent of the clinker with fly ash and powdered lime. This cement will contribute to halving our CO₂ footprint, compared with ordinary building cement developed in the 90s.