Emissions

Scope of the GHG balance

GRI 305-1: Scope 1 - Direct greenhouse gas emissions (GHG emissions)

Scope 1 covers direct emissions from Alpiqʼs power production. Regarding Alpiqʼs activities, electricity production from gas-fired combined-cycle power plants is the main source of emissions. Scope 1 emissions of gas power plants (CCGT) are aligned with the national registryʼs declarations of each country. Emissions resulting from the consumption of fuel in power plants, buildings and vehicles owned by the company are included too.

GRI 305-2: Scope 2 - Energy indirect GHG emissions

Scope 2 covers indirect emissions from electricity consumption and district heating of majority shareholdings power plants, owned buildings and all-electric vehicles. The declaration of Scope 2 emissions considers the effective “market-based” energy mix of the consumed energy when a specific mix is delivered (through certificates or delivery contracts).

GRI 305-3: Scope 3 - Other indirect GHG emissions

Scope 3 covers all other indirect emissions that occur in Alpiqʼs value chain, according to the GHG protocol framework. In past years, reported Scope 3 emissions covered only indirect emissions from energy procurement of minority interests, owned buildings as well as emissions relative to professional travel (flights and train travel). In the 2023 reporting year, a comprehensive and detailed analysis of all 15 Scope 3 GHG emission categories, listed below, was carried out based on year 2022 data.

Table 2: Analysis of Scope 3 greenhouse gas emission categories

The total 2022 Scope 3 emissions (excluding emissions from minority shares assets), were estimated at 5,276 kt CO₂eq, with 97.9% of the total balance included in two main categories:

• Category 3.3 – Fuel and energy-related activities: Including the upstream emissions of all energy consumption (fuel and electricity, power plants, office and mobility) and energy sold to end users.
• Category 3.11 – Use of sold products, including the downstream emissions of energy (gas) sold to end users.

Based on this comprehensive assessment, the two categories listed above can be considered as relevant categories in terms of magnitude.

Category 3.2, which includes emissions of construction, maintenance and refurbishments, is very volatile and too low to be relevant for inclusion in the balance. Category 3.6 (Business travel) has been selected, mainly for strategic reasons such as employee awareness and in line with current Alpiqʼs internal environmental commitments.

The three categories 3.3, 3.6 and 3.11, considered as Alpiqʼs Scope 3 GHG balance categories, will be monitored yearly and set the baseline for our potential Scope 3 GHG targets.

Emissions declaration

The 2023 calculation process and GHG declaration were conducted in accordance with the GHG protocol and “GRI 305” standard and checked externally by a third-party expert. Emissions are reported in metric tons of CO₂ equivalent [T CO₂eq].

305-1. Gross direct GHG emissions in metric tons of CO₂ equivalent

With 99.9% of the total share of Scope 1 GHG emissions declared in 2023, electricity production from gas-fired combined-cycle (CCGT) power plants is the main source of direct emissions. Following a spike in production in 2022 due to high demand in Europe, 2023 CCGT production shows a significant decrease, returning to 2021 levels, with a significant decrease in terms of GHG emissions. However, in terms of intensity, the CCGT GHG emissions have increased slightly (see “GRI 305-4”).

GRI 305-2. Gross market-based energy indirect (Scope 2) GHG emissions in metric tons of CO₂ equivalent

The main source of Scope 2 GHG emissions is Alpiqʼs electric consumption in every power plant type. The magnitude of the Scope 2 emissions is significantly lower (1%) than Scope 1 and mainly driven by the energy mix of the consumed electricity.

305-3. Gross other indirect (Scope 3) GHG emissions in metric tons of CO₂ equivalent

Scope 3 covers indirect emissions from energy procurement from power plants which Alpiq does not have control of (minority interest), as well as all relevant emissions that occur in Alpiqʼs value chain, based on the full GHG balance assessment done for year 2022.

The main driver of Scope 3 emissions is the total volume of electricity bought in the market and sold to end-consumers as well as gas delivered to intermediaries and end users. The upstream emissions related to the production of fuel and energy consumed for our own electricity production is also relevant. The energy mix of the consumed electricity as well as the intensity of the professional mobility have a lesser impact on the Scope 3 GHG emissions.

305-4. GHG emissions intensity ratio for the organisation

After 2022, which was an extraordinary year for energy demand on a European level, 2023 shows a return to lower demand for the CCGT power plants, resulting in a significant decrease in total direct emissions (see section 305-1). In terms of intensity, the CCGT emissions slightly rose (+11 g CO₂eq/kWh) due to a less optimal running program (lower load factor and more intermittent run induces a lower efficiency).

On an Alpiq Group level, our renewable and nuclear assets include significantly lower greenhouse gas intensity. The lower share of CCGT and increase in hydropower production induced a 51.5 g CO₂e/kWh decrease compared to 2022. The global intensity is therefore mainly driven by the annual CCGT production level. Scope 3 emissions in Alpiqʼs value chain not directly related to power production (see chapter 305-3) are not included in the production intensity.

GRI 305-7: Nitrogen oxides

The nitrogen oxide emissions (NOx) are measured online in all gas-fired combined-cycle power plants. Emissions primarily depend on the production of electricity and steam, which can fluctuate depending on market conditions or customer requirements. Alpiq is constantly modernising its power plants. In doing so, the company makes use of the best available technology, including dry-low NOx facilities, to reduce NOx emissions and thus protect the environment.

Alpiq meets all European and local environmental requirements for gas-fired combined-cycle power plants. Total NOx emissions decreased in 2023, due to the decrease in total production by our CCGT assets of 38% compared to 2022. In terms of intensity, 2023 shows a significant decrease during the reporting year (- 21%) due to favourable operational regime from the aspect of NOx reduction effectiveness. Those emissions are aligned with the national registryʼs declarations for each country.