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Corporate Responsibility Report 2006

Environment

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Our Performance

Managing Greenhouse Gas and Air Emissions

"TransCanada remains committed to tracking our progress in managing our greenhouse gases (GHGs) and air emissions."

TransCanada remains committed to tracking our progress in managing our greenhouse gases (GHGs) and air emissions. Appropriate business decisions can only be made with accurate emissions inventories.

Our calculation methodology and reporting criteria adhere to Environment Canada’s and Alberta Environment’s Greenhouse Gas Emission Reporting regulation, as administered by Statistics Canada.

View key statistical measurements of our performance.

Sources of Greenhouse Gases

TransCanada’s main source of greenhouse gases (GHGs), which have been linked with global climate change, is the combustion of natural gas consumed by our pipeline gas turbines to compress and move natural gas.

The operation of pipeline and power facilities produces “direct” emissions of three GHGs: carbon dioxide, methane and nitrous oxide. TransCanada also accounts for indirect emissions, which are produced by companies that generate the electricity TransCanada purchases for use at our facilities.

Carbon dioxide is the largest component of TransCanada’s direct GHG emissions inventory. While most of our carbon dioxide emissions come from the combustion of natural gas at our pipeline facilities, much smaller amounts are produced by our power generation plants.

Methane, a much smaller component of TransCanada’s direct GHG emissions inventory, is the chief component of natural gas. It occurs mainly as small losses from pipeline components that are engineered to release methane during normal operations and during blowdowns, when natural gas is vented to the atmosphere to allow for construction and maintenance work. Negligible amounts are released from our power operations.

Very small amounts of nitrous oxide are emitted as a by-product of the combustion of natural gas at our pipeline and power facilities.

Our indirect emissions are associated with the electricity TransCanada purchases from third parties for use at our pipeline facilities. The volume of these emissions depends on whether the electricity is produced using coal or natural gas. On a per-unit-energy basis, natural gas-fired power plants produce less carbon dioxide than coal-fired plants.

Innovation Guides Us

TransCanada has long supported a unified North American response to climate change and air quality issues. Individuals, industries and governments must be involved in managing/reducing emissions that contribute to climate change and air quality issues.

We believe that emissions reduction targets and schedules must balance environmental and socioeconomic considerations. The low-emission natural gas we transport and the energy-efficient electricity we generate are part of the solution. We are also committed to finding and deploying innovative technological solutions.

Find out more about TransCanada’s climate change policy, principles and strategy.

Meeting Business Goals While Reducing Emissions

Our strategy is to manage the growth of the greenhouse gas emissions intensity of our North American pipeline and power facilities while meeting our business objectives.

Specifically, TransCanada manages emissions by:

  • increasing the energy efficiency of our operations through improved systems design; and
  • assessing new technologies and processes that may reduce emissions intensities at our facilities.

Improvements on Many Fronts

Proactive initiatives brought us significant improvements in 2006:

  • continued enhancement of our Fugitive Emissions Management Program, which represents one of TransCanada’s largest opportunities for the reduction of greenhouse gas emissions;
  • research and development successes, especially in the areas of methane biofiltration and gas ejectors; and
  • development and implementation of a new Air Emissions Database Management System that greatly improves our monitoring and measuring capability.

As always, we continue to participate closely with government, industry and non-governmental organizations in the development of effective public policies on urgent and emerging environmental issues.

View key statistical measurements of our performance.

Fostering Environmental Sustainability

Given the interdependence of biological organisms, it is essential that habitats be protected and maintained. Changes to soil, water or air conditions may be harmful to both specific organisms and to biodiversity.

As TransCanada’s activities sometimes have negative impacts on natural habitats, we strive as much as possible for environmental sustainability in all our planning and operations. The same attitude of responsibility prevails when it is time for us to decommission a facility and reclaim the site on which it stood.

Life Cycle Sustainability

TransCanada has several programs in place to measure, manage and improve our environmental performance.

Environmental Legislation
  • We develop action plans to address regulatory change by incorporating insight from our participation in multi-stakeholder forums and by monitoring government and industry publications.
PCB and NORM Management
  • These programs were developed to safely manage trace amounts of polychlorinated biphenyls (PCBs) and naturally occurring radioactive materials (NORMs) that may be found in older pipelines. These industry-leading programs provide detailed procedures on the cradle-to-grave management of potentially contaminated materials and equipment.
Hazardous Materials and Waste Management
  • This program includes detailed procedures and guides that are tailored to company operations and dictate the management of hazardous materials and wastes from cradle-to-grave.
Site Assessment, Remediation and Monitoring (SARM)
  • By using a risk-based process, we prioritize our Canadian sites for environmental assessment, remediation and monitoring activities. This program also identifies the level of public and regulatory consultation required to manage risk and maintain compliance.
  • TransCanada is currently in the process of developing a more comprehensive environmental risk management tool that will include the analysis of Canadian and US compressor stations.
Wildlife Conservation
  • Opportunities for habitat enhancement are explored during various reclamation programs conducted throughout the life of our pipeline system.
  • TransCanada participates in collaborative research projects that help us understand wildlife and the impact our activities have on their habitats. Current research initiatives include caribou, grizzly bear and stone sheep.

View key statistical measurements of our performance.