Energy and Emissions

The world currently relies on hydrocarbons to reliably meet energy needs, but we recognize and expect that future energy demand will continue to be met in part by a growing proportion of renewable energy sources. While continuing to deliver natural gas solutions, the Company pursues and will continue to pursue opportunities that benefit the global effort to address climate change, including:

• Identifying economic energy and emissions reduction opportunities in our operations;
• Identifying energy efficient procurement opportunities; and
• Exploring new Energy Transition solutions, including for carbon capture utilitization and sequestration, renewable natural gas, electrification, and hydrogen.

In early 2020, Management established an Environmental Assessment Committee responsible for:

• Identifying opportunities to enhance environmental performance across Enerflex's facilities and fleet.
• Helping achieve the Company's goal of quantifying its global Scope 1, 2, and 3 GHG emissions inventory.
• Expanding collaboration across our organization and operations to identify and evaluate key environmental risks and opportunities for our business.
• Helping develop ESG disclosures to be responsive to stakeholder expectations.

Throughout 2021, climate-related risks and opportunities were further integrated into Enerflex's strategic planning and investment decisions. In early 2021, the Board appointed a Chief Energy Transition Officer, responsible for progressing the Company's energy transition strategy, and identifying, evaluating, and driving low-carbon energy product and service solutions.

GHG Emissions1	2021	20202	SASB CODE
Gross global Scope 1 emissions (TCO2e)	14,100	14,800	EM-MD-110a.1
Global Scope 1 emissions (by business segment) (TCO2e)
•    Engineered Systems	140	180	n/a
•    Service	6,300	6,800	n/a
•    Energy Infrastructure	7,700	7,800	n/a
Percentage methane (CH4)	<1%	<1%	EM-MD-110a.1
Gross global Scope 2 emissions (TCO2e)	9,500	11,100	n/a
Combined gross global Scope 1 and 2 emissions (TCO2e)	23,600	25,900	n/a
Scope 1 and 2 emissions intensity per revenue (TCO2e/$M revenue)	24.6	21.3	n/a
Scope 3 emissions from Energy Infrastructure	2,170,000	2,390,000	n/a
Discussion of emissions management	See the "Description of the Business – Environmental Protection and Emissions" section of AIF2		EM-MD-110a.2 EM-SV-110a.2

 

Energy Consumption4	2021	2020	SASB CODE
Total fuel consumed (GJ)	32,100,000	35,620,000	EM-SV-110a.1
•    Percentage renewable	0%	0%	EM-SV-110a.1
•    Percentage used in on-road equipment and vehicles	0.5%	0.5%	EM-SV-110a.1
•    Percentage used in off-road equipment	99.5%	99.5%	EM-SV-110a.1
Percentage of engines in service that meet Tier 4 compliance for non-road diesel engine emissions	58.3%5	54.5%	EM-SV-110a.3
Total electricity consumed (MWh)	13,100	16,500	n/a
•    Percentage renewable6	12.8%	13.8%	n/a
Combined energy (fuel and electricity) consumed (MWh)	8,930,000	9,910,000	n/a

 

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¹ Enerflex has defined Scope 1, 2, and 3 emissions according to the methodology contained in the GHG Protocol (March 2004). Scope 1 emissions include all emissions from sources owned or controlled by Enerflex, using the operational control consolidation approach under the GHG Protocol. Scope 2 emissions include all indirect emissions resulting from the generation of purchased electricity consumed by Enerflex. Enerflex has calculated Scope 1 and 2 emissions using the industry-specific calculation methodology set forth in the API Compendium (August 2009), including only CO₂, CH₄ and N₂O (emissions of the other Kyoto Protocol gases have been deemed inconsequential).

² Enerflex has revised its methodology for calculating Scope 1 emissions. Previously Enerflex used the financial control consolidation approach under the GHG Protocol, pursuant to which the emissions from its Energy Infrastructure business segment (Contract Compression fleet and BOOM assets) were included as Scope 1. Currently, consistent with the GHG Protocol's operational control consolidation approach, Enerflex categorizes the emissions from its Energy Infrastructure as Scope 3, which better reflects the fact that Enerflex does not have operational control of such assets. The 2020 data in the table above has been restated to reflect the operational control consolidation approach.

³ Enerflex Annual Information Form for the year ended December 31, 2021, dated February 23, 2022.

⁴ Enerflex has calculated fuel and electricity consumed using the methodology set forth in the API Compendium (August 2009).

⁵ In 2021, Enerflex had a total of 12 non-road diesel engines in service globally, representing 0.15% of Enerflex's global Scope 3 emissions.

⁶ Enerflex has calculated renewable electricity consumed using the 2019 electricity mix per country data published by BP Statistical Review of World Energy & Ember, with the exception of Canada, which used Alberta data from the CER's Canada's Energy Future 2020 (EF2020).