Advancing Carbon Removal: DOE Invests $13M in 23 Innovative CO2 Capture Technologies

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The U.S. Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM) invested over $13 million in 23 projects to support research and development for carbon capture technologies and their applications that can cut carbon emissions.  

Universities and private sector companies across the country lead the projects to scale up carbon capture technologies to commercial deployment. These technologies capture CO2 from industrial sources like power plants, or directly from the air and oceans. They then transform the captured carbon into valuable products such as fuels and chemicals or use it to make building materials. 

Earlier this year, the DOE rolled out $2.5 billion to fund 2 carbon capture initiatives aimed to boost investment in technologies that capture, transport, and store carbon. The Department also opened new funding opportunities in May worth $2.25 billion for the validation and testing of large-scale, commercial carbon storage projects.

Scaling Up Carbon Capture and Conversion Technologies

The chosen initiatives are helping the nation achieve President Biden’s 2050 net zero economy goal. They also provide high-quality jobs and economic opportunities for local communities. Highlighting the importance of the funded project’s technologies, Assistant Secretary of FECM Brad Crabtree said that:

“Carbon capture and storage, carbon dioxide removal, and carbon conversion will play an essential role in support of our national decarbonization efforts.”

DOE’s financial support aims to bring rapid and widespread adoption of those technologies. 

Under round 1 of its funding program, DOE selected 4 projects below to receive a total of over $7 million. These projects convert carbon emissions captured from industrial facilities and power plants into durable building materials like concrete. They can also significantly reduce overall life cycle emissions in the process while focusing on improving the cost efficiency of their processes.

The DOE Funding Program Awardees

Calcify LLC – Total Value: $1,716,741 

DOE Funding = $1,364,278; Non-DOE Funding = $352,463

The Connecticut-based company will develop a 20 kg/day prototype process using biomass ash and desalination brines to capture carbon. The captured CO2 will be used to make stabilized, amorphous calcium carbonate (ACC) for cement, which the team has to demonstrate to show superior properties to regular Portland cement and emit lower CO2. 

C-Crete Technologies, LLC – Total Value: $2,500,000

DOE Funding = $2,000,000; Non-DOE Funding = $500,000

The California-based company will demonstrate that their technology is feasible to convert over 10 kg/day of CO2 to make a special formula of high-performance concrete that may outperform Portland concrete while mineralizing the net carbon. Their low-carbon concrete will be fast-curing, carbon-negative, strong and tough and applicable to precast and cast-in-place concrete markets. 

Cornell University – Total Value: $2,500,000

DOE Funding = $2,000,000; Non-DOE Funding = $500,000

The New York-based university aims to show regenerable carbon capture solvents made through its transformative energy- and atom-efficient technology. The converted CO2 will be integrated for the co-recovery of high-value energy critical metals and other minerals (calcium carbonate, magnesium, iron- and aluminum-rich products) from industrial residues produced by secondary iron and steelmaking as well as aluminum manufacturing. 

University of Missouri – Total Value: $2,500,000

DOE Funding = $2,000,000; Non-DOE Funding = $500,000

The university will use carbon dioxide to process solid wastes to produce carbon-negative supplementary cementitious materials (SCMs) for construction. In partnership with the Lawrence Livermore National Laboratory, their technology works with various carbon sources, e.g. flue gasses.

The second round of the DOE funding program includes 19 R&D projects that focus on ocean-based carbon removal technologies. Some of them are also into direct air capture (DAC) alongside carbon-free hydrogen to make carbon-neutral methanol.  

Other projects are developed by universities as included in the tables.

Here is the detailed list of the 19 project developers and what technologies they’re developing.

The DOE’s National Energy Technology Laboratory (NETL) will manage those projects. 

These recent selections bring FECM’s total investments of more than $678 million since the funding program launched in 2021. The initiatives promote R&D and deployment of CO2 capture, transport, conversion, and storage. 

The recent DOE funding opportunity is crucial in driving technological innovations, economic growth, and job creation during the clean energy transition. The selected innovations, spanning carbon capture to ocean-based removal, signify a stride toward sustainable innovation and significant emission reductions.

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Shopify Receives Carbon Removal Credits From Startup That Sinks Wood in The Ocean

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Ocean carbon removal startup Running Tide has delivered its first-ever carbon removal credits pre-sold to e-commerce giant Shopify. 

US-based Running Tide is a carbon dioxide removal (CDR) company that sinks wood in the Atlantic Ocean to sequester carbon. Shopify is one of the first buyers of the carbon removal credits generated by the startup’s ocean carbon sequestration. 

Shopify and Running Tide CDR Credits Deal

Running Tide has been exploring an ocean sequestration process involving growing and sinking algae. But for Shopify’s open ocean carbon removal project, only terrestrial wood was sunk. 

The startup has five funding rounds from other major investors, which include Wells Fargo Innovation Incubator and Yes VC. Microsoft, Stripe, and the Chan Zuckerberg Initiative have also agreed to pre-purchase carbon removal credits from the startup. 

Under their deal, Shopify receives 100 of the 275 net tons of carbon removal credits created by Running Tide’s project. The climate startup had sunk 1,000 tons of limestone-coated wood waste to the ocean floor about 100 miles off the coast of Iceland.   

The wood residues, which would have been burned and emit carbon, were from forest trimming operations in Canada and Europe. So, instead of letting them release CO2, Running Tide prevents the emissions by storing the wood in the ocean for thousands of years.

Running Time wood carbon buoys

The carbon removal startup has been working with Shopify since 2020 via the latter’s Sustainability Fund. It’s an initiative founded by the e-commerce giant to provide financial support for carbon removal projects.

The 275 tons of removal are very insignificant when compared to global emissions that need to be removed. It’s also a small fraction of corporate buying of carbon removal where large companies are purchasing million tons of CO2. 

Still, their project is the first-of-its-kind in the carbon sequestration space that has been tested and audited. 

Running Tide’s Unique Approach to CDR 

Running Tide processes carbon-rich forestry residues into carbon buoys, or drifters on which to grow macroalgae. They then coat the carbon buoys with calcium carbonate that stimulates a process known as enhanced alkalinity, a recognized CDR approach to sequestering carbon. 

The limestone coating helps avoid ocean acidification, the startup said.

This unique approach moves the CO2 from the fast carbon cycle (in the atmosphere and biosphere) to the slow carbon cycle (deep into the ocean floor). Geologic processes in the slow carbon cycle facilitate storage of the CO2 for thousands of years. 

Running Tide has designed a system that amplifies natural ocean based CDR. They then deploy their system far from coasts and focus on three key pathways that remove carbon: 

Sinking of terrestrial biomass (wood buoys), 
Dissolution of CO2 in surface waters (calcium carbonate), and 
Photosynthetic fixation and sinking of marine biomass (macroalgae).

The core principle of Running Tide’s system is the creation of simple and modular components like carbon buoys that can be placed in ocean currents. They remain buoyant for a certain amount of time, disperse in the currents, and then go down to the seafloor.

Wood buoys for deployment

As the carbon buoys drift, they either alkalinize the ocean via mineral dissolution or remove carbon by growing macroalgae. When sunk, the buoys bring both terrestrial and marine biomass to the ocean floor. 

The company said that the formula they use in calculating the amount of sequestered carbon reflects the weight of the sunk wood and the amount of limestone dissolved. They determine that through cameras. 

Asserting the credibility of their approach to CDR, Running Tide’s CEO CEO Marty Odlin noted that:

“From the best available science, which is what we operate on, we have achieved a high degree of permanence and low risk of reversal [for the carbon].” 

Running Tide leverages the expertise of independent, 3rd-party ocean and climate scientists with in-house engineers to design their CDR system. Odlin said their project adhered to the Scientific Advisory Board standards and was reviewed by an independent science review board.

Deloitte, a leading audit services provider, is the official verifier for their Shopify deal. 

What Are The Gaps to Fill-in?

Running Tide has developed measurement, reporting, and verification (MRV) technologies to monitor the location, timing, and progress of CDR deployments. 

Though there is a 3rd-party auditor, there’s no normal avenues for verification yet as there are no similar projects to compare with. So the companies determine the number of ocean carbon removal credits by using a methodology they both developed. 

They will share their framework to other ocean CDR companies considering a similar process, they said. 

However, Running Tide doesn’t monitor the exact ecosystems where it’s sinking the carbon buoys at this time. That’s because their current work is still small-scale, which makes it hard to measure their exact impact at the moment. 

This is why others think that the startup needs to have verification in place to bring more confidence into their CDR system. This will also help inform others working on CDR solutions and ensure the approach is safe for the ocean. Shopify seconded saying that it’s “a big-time learning opportunity” for scientific experts to get their eyes on. 

The e-commerce didn’t exactly say how much they paid Running Tide for the CDR credits. But the latter said that they’re charging between $250 and $350 per tonne of carbon removal credits.

In March, Microsoft paid Running Time to remove 12,000 tons of CO2 over the next two years. But they also didn’t disclose the amount of their payment. 

The innovative approach of Running Tide for ocean carbon removal holds promise in curbing carbon emissions. Their carbon credit deal with Shopify and other supporters of CDR highlights the potential of collaborations to address climate change.

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How Do Carbon Credits Reduce Emissions?

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Reducing emissions is a must but we’re running out of time and the technology needed to do the job is not always there. This is where carbon credits come in to help reduce emissions significantly. 

So, how do carbon credits help slash carbon emissions and what benefits do they provide? Also, what is the role of carbon trading in cutting emissions? This article will answer these questions and more about the impact of carbon credits and how to make money from them.

Let’s start by explaining how carbon credits help in reducing emissions. 

Carbon credits are a market-based tool designed to create financial incentives for entities to cut their carbon footprint and invest in cleaner, more sustainable practices.

Governments play a big role in this space by implementing cap-and-trade systems. Under this system, also known as the compliance carbon market, companies must comply with a cap set on the total greenhouse gas emissions they’re allowed to emit within a certain period. 

If they go beyond these limits, they either pay the fine or buy carbon credits from companies with surplus credits. In contrast, if they emit below their emissions cap, they generate credits for it – one credit represents one metric tonne of carbon emissions.

Another way to generate carbon credits is through different emission reduction or removal projects. Common examples of these projects are reforestation, renewable energy installations, carbon capture and storage, carbon farming practices, among others. 

Entities seeking to voluntarily offset their emissions can purchase the credits generated by those projects. Or companies can also directly fund the project during their early development phase.

These credits are traded in the voluntary carbon market (VCM), which has been growing in volume and dollar value in billions.

Those initiatives reduce the concentration of greenhouse gasses in the atmosphere but without carbon credits, they won’t be financially viable. Thus, carbon credit projects also contribute to mitigating climate change.

Realizing their importance in slashing carbon emissions, more and more companies are voluntarily supporting efforts that generate carbon credits. As such, experts project that demand for voluntary carbon credits will grow exponentially. 

McKinsey predicts that annual demand for carbon credits would go up to 2.0 gigatons of carbon dioxide (GtCO2) by 2030 and 13 GtCO2 by 2050. 

Source: McKinsey & Company

In terms of market value, it can go between $30 billion and up to $50 billion in 2030. Several factors affect the actual market size such as project type and location.

Now you may get the idea of how carbon credits help reduce emissions at the gigatons scale. So, next up we’ll explain how you can generate carbon credits for trees. 

How To Get Carbon Credits For Trees?

Carbon credits are most often created through the agricultural or forestry sector by planting or protecting standing trees. But of course you can get carbon credit through any project mentioned earlier that reduces, avoids, removes or captures emissions.

Acquiring carbon credits for trees translates to engaging in projects that promote afforestation, reforestation, or sustainable forest management practices. These projects seek to enhance the carbon sequestration potential of forests, capturing and storing CO2 in biomass. 

You can start getting carbon credits for trees by first, choosing the right type of forest project that aligns with your goals. You can select from three various project types identified above that generate carbon credits for trees.

Next thing to do is to develop a plan outlining the project area, tree species, estimated carbon sequestration (amount of captured and stored carbon), and project timeline. 

Then register the project with recognized carbon standard bodies such as Verra’s VCS, Gold Standard, and American Carbon Registry. Then don’t miss out on measuring the baseline level of carbon on your project site to base estimated carbon sequestration. 

There’s one thing you mustn’t leave out though – monitoring and verifying tree planting or forest management progress through 3rd-party auditors to ensure compliance with standards. 

Only after verification that your project would receive the credits that you can sell to companies for offsetting purposes. Lastly, maintain the integrity of your project by continuing sustainable practices to keep carbon sequestration validity. 

What if you’re not into planting trees? Don’t worry because you can still get carbon credits by following the steps outlined below.

Key Steps on How To Generate Carbon Credits

In general, you can earn carbon credits through these four major phases:

Project Development: 

Same as above, you have to identify and plan a project that lowers emissions or enhances carbon sequestration, be it carbon farming or renewable energy installation. Then define project activities, location, baseline emissions, and the expected reductions and other environmental impacts.

Verification and Validation: 

Work with recognized carbon standard organizations and independent auditors to verify and validate your project’s environmental benefits. And then calculate emission reductions and/or increased carbon sequestration using reliable methodologies.

Carbon Credit Issuance: 

After project verification, you can now receive carbon credits based on your project’s verified carbon reductions.

Registry and Trading: 

Now that you have been issued with the credits, you need to register them in registries to make them available for trading. Interested buyers can buy the credits to offset their own emissions and support your carbon emissions efforts.

How To Make Money From Carbon Credits

Apparently, you can make money from carbon credits by following the steps above. But selling credits in established carbon exchanges and trading platforms is just one way to turn them into cash. 

Apart from trading in those marketplaces, you can directly deal with buyers through private transaction negotiations. This way gives you more flexibility in setting prices and contractual agreements. 

Another option to make money from carbon credits is partnering with carbon offset service providers and offering your credits via their platforms. In this way, you’ll reach a wider audience. 

And of course, it’s important that you’re consistent in monitoring your project as carbon standards require periodic verification to ensure your credits remain valid over time. 

How Do You Get Carbon Credits? 

In the race against time to slash emissions, carbon credits are a game-changer. Generating and trading these market-based tools does help reduce carbon emissions by incentivizing entities to invest in sustainable practices. 

From cap-and-trade systems to voluntary emission reduction projects, we unpack how carbon credits work and outline the steps on how you can get them. The best thing about this is that apart from getting and profiting from the credits, you also help drive meaningful strides towards a greener future. 

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The World’s Great Lithium Illusion – Here’s What You Really Need to Know

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There’s an old saying in the news and media – ‘If it bleeds, it leads’

What this means is that the more violent or sensational a story is, it’s always prioritized and framed accordingly so.

Why? Because such things drive views.

And no other industry gets this poor framing more so than the mining sector…

Pundits in the media always make headlines stating how awful and ugly the mining sector is.

Whether it’s “polluting the environment” or “child-labor infractions” or a “form of imperialism”.

We’ve heard it all.And while there are instances of such issues, these headlines end up leading the masses to believe that all mining is evil and should be avoided.

But this is all an illusion – formulated to drive views.It reminds me of what one of our favorite classical economists – Fredric Bastiat – once said.

The difference between a good economist and a bad economist is that:

The bad considers only the visible effects.
While the good considers both the visible effects, and also those which are necessary to foresee

So while the pundits only focus on the bad aspects of mining – good investors will see through the noise and focus on the benefits and upside of it all.

And this is why you’ll see through the ‘Great Lithium Mining Illusion’.

Many Believe Lithium Mining is “Dirty” – But That’s Outdated Thinking

The long-held view has been that lithium mining is “dirty” and detrimental to the environment.

And while it’s not exactly great for the soil (neither is farming for that matter) – it’s not nearly as bad as many make it out to be.

To give you a comparison – it’s far less destructive to the environment than oil fracking is.

But recently – we’ve seen even greater increases in technology and efficiency that will help the social perception of lithium mining.

In fact – multiple European Union officials (many with aggressive pro-environment stances) now say that it’s “crucial” to show local populations that lithium mining is no longer a “dirty operation”.

And when the European Union is actually promoting a form of mining, you know it’s a big deal.

But it’s not just in Europe. . .

For instance, there are three large mining companies based in California’s ‘Lithium Valley’ that aims to establish a method of extracting lithium that won’t have negative impacts on the environment.

In short – these companies plan to use clean energy (such as geothermal power) to directly extract lithium. Avoiding the destruction, waste, and dirty water created by hard rock mining.

Michael McKibben – a geochemist and professor at the University of California – said, “It’s important not to call it mining. . . because compared with conventional lithium mining, this process has minimal environmental impacts.”

Mckinsey & Co. also recently reported that this promising direct lithium extraction (DLE) approach has several potential benefits compared to current projects – some being:

Increased lithium recoveries from around 40% to over 80%.
Eliminating or greatly reducing the footprint of evaporation ponds
Lower the need for fresh water
Lower production times

These are only a few ways that the lithium miners are at work increasing their efficiency while reducing their environmental impact.

And it’s just in time as the world enters the clean-energy revolution – making lithium more needed more than ever before. . .

Lithium: “Mother Nature’s” Answer for Fueling Clean Energy

Lithium is both the lightest metal in the world and also an alkali metal (aka good conductors of heat and electricity).

It’s used to make lightweight alloy metals – which are used in airplanes, armored vehicles, and railways.

It’s even used to help treat depression.

But – over the last decade – lithium’s use as a fuel source for electric vehicles (EVs) and renewable energy grids exploded.

Why?

Because energy storage and renewables are two of the most important sectors in the global push towards becoming ‘net-zero’ (aka cutting greenhouse emissions and the carbon footprint as close to zero as possible).

In fact, it’s not a stretch to say that lithium as a clean energy source is literally revolutionizing the world.

For instance, one of the challenges with renewables has always been that they can’t produce energy steadily.

The sun isn’t always out, limiting solar energy output
And the wind isn’t always blowing, limiting wind turbine output

The obvious solution’s been to store the excess energy and then release it later when needed.

But how?

Well, that’s why lithium batteries are so important.

They’re able to store energy efficiently and be recharged at will (imagine your cellphone or laptop or electric vehicle).

And as battery costs decrease, they will become more accessible for the masses.

This is already happening – and much faster than many realize. . .

To put this into perspective – with modern innovations and greater productive capacity – we’ve seen the cost of using lithium batteries plunge over 97% between 1991 and 2018 (from $7,500 to $181).

That’s 41x cheaper in less than 30 years.

But what’s most promising is the recent rate of declining costs.

Between 2014 and 2018, the cost of lithium-ion batteries dropped 50% in just four years.

Disclosure: Owners, members, directors and employees of carboncredits.com have/may have stock or option position in any of the companies mentioned: AMLI

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Mitsubishi Reveals a Breakthrough in Creating Sustainable PET Bottles from Biomass

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Mitsubishi Corporation entered into an agreement with consumer packaged goods provider Suntory Holdings and energy firm ENEOS Corporation to develop a supply chain for sustainable PET plastic bottles derived from biomass. 

In a world grappling with the dual challenges of carbon emissions and plastic pollution, their innovative partnership is a significant step towards sustainability.

The Japanese Conglomerate believes that using biomass such as used cooking oil in producing PET bottles can help reduce fossil fuel dependence and thus, drive a low-carbon economy.  

The initiative is the world’s first production of sustainable PET bottles using bio-PX (paraxylene) from bio-naphtha on a commercial scale. Naphtha, which looks like gasoline, is a flammable liquid made from distilling petroleum.

A Revolutionary Approach to Making PET Bottles

Traditional plastic bottle production uses naphtha as the main raw material, which is basically from crude oil. In a sense, the basic ingredient of most plastics is crude petroleum that emits significant greenhouse gasses. 

According to the EPA, each ounce of PET produced emits about 1 ounce of carbon dioxide. Others say the ratio of carbon emissions to plastic production could go up to 5:1. 

The higher the ratio means the more pollution the production is. This is what the new initiative will address by using renewable sources to replace fossil naphtha. The partner companies will introduce a new supply chain to make sustainable PET bottles and cut the industry’s carbon emissions.  

Mitsubishi will manage the supply chain which starts with NESTE Corporation supplying bio-based naphtha derived from 100% renewable sources.

As illustrated above, the revolutionary supply chain will involve the following process:

NESTE – produces and supplies the bio-based raw materials (feedstock), bio-naphtha (1), from biomass (e.g. waste and used cooking oil)
ENEOS – produces bio-PX (2) from bio-naphtha at Mizushima Refinery, a raw material for making bio-PTA and bio-PET resin (3)
Suntory – produces sustainable PET bottles (4) for its products using bio-PET resin 

In making bio-PX from bio-naphtha, ENEOS uses the mass balance method. It is an approach that tracks the amount and sustainability characteristics of biomass as shown below.

The Mass Balance Method

Using the new approach, around 35 million PET bottles will be produced from biomass by the end of 2023. Suntory will use them to make sustainable PET bottle products in 2024. 

With this supply chain management, Mitsubishi will contribute to the reduction of carbon emissions by replacing petroleum-based products with bio-PET resin from biomass. Highlighting this carbon-cutting innovation, Mitsubishi said during the announcement that:

“We believe the usage of biomass for PET bottles, together with further development of the recycling system, will play an important role in the realization of a low-carbon and decarbonized society as well as in reducing dependency on fossil resources.”

By leading the project, Mitsubishi and its partners would be eligible for generating plastic credits and earn from it.  

What Are Plastic Credits? 

According to OECD, there are about 460 million tons of plastics produced in 2019 alone. And plastics ending in the oceans – 14 million tons – could triple by 2040. Plastic credits emerge to prevent that from happening. 

The concept of Plastic Credits is very similar to that of carbon credits. Each plastic credit is a certificate that represents one metric tonne of plastic waste that has been recycled or collected. 

The credits must be measurable, traceable, and verifiable to ensure that they represent real reductions in plastic waste.

Plastic credits are a market-based tool to fight the global problem of plastic pollution, same as how carbon credits are for battling carbon emissions. More interestingly, plastics made from fossil fuels represent 15% of the global annual carbon budget by 2050. 

Single-use plastics like PET bottles have huge a carbon footprint and loss of energy resources.

By replacing virgin materials in making PET bottle products, the Mitsubishi-ENEOS-Suntory collaboration can significantly reduce the amount of plastic’s carbon emissions as well as wastes. 

Reducing Carbon Emissions and Plastic Wastes

To put the project impact in context, a single-use PET water bottle is made of 0.3 ounces of plastic. If 1 ounce of PET produced emits 1 ounce of CO2, then the project’s 35 million bio-based PET bottles will prevent the emissions of about 1.6 tons of CO2. 

1 ounce of plastic makes 3 PET water bottles, and using the highest of 5:1 ratio (5 ounces of CO2 emission for 1 ounce of plastic production) results in 58 million ounces of CO2 emissions, or equivalent to 1.6 tons of CO2.

Apart from the reduced CO2 emissions, the sustainable PET bottle production project can generate plastic credits. 

Verra, which is also the largest carbon registry, has a Plastic Program in place that certifies projects that reduce or prevent introduction of virgin plastic materials into the natural environment. Projects registered with Verra’s Plastic Program can issue plastic credits for their plastic waste reduction and/or recycling activities. 

Companies and individuals can then buy those credits to offset their own plastic footprint. By doing so, they’re supporting initiatives that help remove or reduce plastic wastes from the environment.

Mitsubishi and its partners can leverage Verra’s Plastic Program to earn the credits that can fund their bio-based PET project. At the same time, they may also be eligible for carbon credits corresponding to the amount of carbon emissions their initiative will reduce. 

Through their pioneering supply chain for bio-based PET bottles, Mitsubishi and partners are not only reducing carbon emissions by avoiding fossil fuels but also combating plastic waste, setting a commendable example for others to follow.

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Bayer, Shell, Temasek Partner to Cut Methane Emissions in Rice Cultivation by 30%

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Bayer, Temasek-owned investment company GenZero, and Shell Energy unite to revolutionize paddy rice cultivation in India by coming up with a reliable model to reduce methane emissions and advancing sustainable farming practices.  

Their collaboration will involve support and training for farmers while using Measurement, Reporting & Verification (MRV) tools and remote sensing technology. Their project also includes the support of the renowned scientific institution, the International Rice Research Institute.

Paddy Rice Cultivation Emissions 

Global rice production will grow to meet the increasing demand from a 34% rise in the world population by 2050. This projected increase in production translates to more other greenhouse gas emissions. 

Agriculture is the second largest emitting sector responsible for about 24% of global GHG emissions. The sector contributes between 10-12% of the global anthropogenic (man-made activities) GHG emissions.

Of global agricultural GHG released by rice fields, about 30% and 11% are from methane (CH4) and nitrous oxide (N2O), respectively. Paddy rice cultivation, in particular, represents about 10% of global methane emissions. 

Methane is a more potent GHG with a global warming potential of more than 25x that of carbon dioxide. The image below from a study shows how methane is emitted from paddy rice fields.

Source: Ali et al., 2019

Rice farms take up over 150 million hectares of land worldwide, occupying 15% of the global farmland.

For successful climate-smart rice cultivation, there must be changes in rice management practices to decrease their planet-warming emissions. A robust and scalable approach is needed to encourage methane emissions reductions in paddy rice cultivation. 

Bayer and its partners aim to achieve significant results in decarbonizing rice production, helping enhance soil health while benefiting small farmers. Their project focuses on rice cultivation in India, the second-largest producer of rice globally.

Bayer Climate Strategy for Net Zero

Being the global leader in the agriculture sector under its Crop Science division, Bayer seeks to improve rice management practices by promoting climate-smart activities that economically and environmentally benefit both the farmers and the planet.

For the past 2 years, the company has performed the groundwork needed for the project under its “Sustainable Rice Project” in India. It particularly aims to fight climate change by promoting carbon reductions in growing rice. 

The project encourages rice farmers to adopt new techniques such as Direct Seeded Rice (DSR) and Alternate Wetting & Drying (AWD). DSR is a practice that doesn’t involve transplanting operations and AWD which involves controlled and intermittent flooding. 

Both modern farming practices help reduce the amount of GHG released by rice cultivation while allowing farmers to earn more from their reduced GHG emissions through carbon credits. Each credit represents a tonne of reduced carbon emissions. In voluntary carbon markets, carbon credits are also called carbon offsets. 

Since 2020, Bayer has been rewarding farmers with carbon credits by adopting climate-smart (carbon farming) practices, giving them more revenue. Its Carbon Initiative enables Bayer to develop a science-based and collaborative approach to bringing the carbon market to agriculture.

All these efforts in working closely with the farmers are part of the company’s sustainability commitments and net zero targets. They particularly aimed at reducing in-field GHG emissions (per kilogram of crop yield) by 30% in 2030. 

Bayer Net Zero Pathway

For the same year, Bayer also aims to be climate neutral in its own operations (Scope 1 and 2 emissions). They’re aiming to reduce those emissions by 42% by 2029 compared to the 2019 baseline. 

The company plans to offset any remaining emissions after reduction by purchasing carbon credits specifically from nature-based projects. Carbon farming, also known as regenerative agriculture, is one of the areas that Bayer supports to source its carbon offsets.  

The Methane Emissions Reduction Project

According to the head of Bayer’s Crop Science Division in India, Simon-Thorsten Wiebusch, partnering with GenZero, Shell, and International Rice Research Institute (IRRI) is vital to develop the ecosystem for quicker adoption of sustainable regenerative agricultural practices. He also noted that:

“Bayer’s commitment to rice cultivation is two-fold. Through our focus on rice, we want to solve two of the biggest challenges impacting humanity, namely, food security and climate change.”

Their collaborative initiative aims to gain insights into how carbon farming practices can help mitigate climate change through methane emission reductions.

In its first year, the project will ramp up its scope to cover 25,000 ha. of rice production. In particular, it will cover the Kharif 2023 and Rabi 2023-2024 rice cropping seasons.

The initiative also aims to lower the amount of water consumed by Indian farmers across the country’s water-stressed agricultural regions. More remarkably, it will support smallholder farmers as they transition agriculture to a low-carbon sector, driving their sustainable farming development. 

The success of the project will lead to bigger sustainable rice production programs, more water savings, and improved community livelihoods. 

Finally, the partners have the scientific support of the IRRI for data accuracy and credibility. The institution will perform scientific assessments of GHG reductions, water use reductions, and soil health improvements. 

Remarking on their initiative, Shell executive VP Flora Ji highlighted that this nature-based solution is a crucial tool that will help address climate change while promoting sustainable development. With the project’s outcome, the oil giant aims to continue leveraging “novel technologies to deploy nature-based solutions at scale.”

GenZero’s CEO echoes this goal saying that they’re also seeking to transform rice cultivation by adopting AWD and DSR techniques across smallholder farmers in India. 

The dynamic collaboration among those companies aims to bring transformative change in the agricultural sector, enhancing soil health, reducing emissions, and promoting climate-smart rice production.

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The Steel Climate Standard is Finally Out: Our 5 Key Takeaways

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The Global Steel Climate Council (GSCC) published the Steel Climate Standard, a global standard for measuring and reporting steel carbon emissions and setting reduction targets.

GSCC is one of several industry groups promoting a global steel standard, leading efforts to reduce steel carbon emissions. 

GSCC’s Steel Climate Standard centers on slashing greenhouse gas (GHG) emissions from the global steel industry in line with the Paris Agreement climate goals. It offers a single protocol applicable to all steel producers as it’s not tied to a specific manufacturing technology but requires producers to have science-based GHG emission targets.

A draft version of the Standard was released in April 2023. Comments from stakeholders were incorporated into the final copy recently published.

Here are Our Top 5 Takeaways From the Steel Climate Standard: 

1. The Standard sets a system boundary, including all 3 emission sources – Scope 1, 2, and 3.

Setting a comprehensive and consistent boundary is important to ensure that comparisons between steel product carbon intensities are on a like-for-like basis. It also ensures that carbon reduction goals include all relevant carbon-intensive steelmaking processes. 

The Steel Climate Standard boundary is fixed, which means participating companies should report all sources included “in boundary” when calculating their product’s carbon intensity. It’s similar to the boundary used by the International Energy Agency in determining lower carbon steel production. 

The diagram below shows the processes that must be within the “Steel Climate Standard Boundary” regardless of emission source.

2. The Standard uses these 5 guiding principles in building the framework:

Scientific – Aligns with IEA forecasts, recent climate research, and Paris Agreement goals for attaining industry-specific emissions cuts by 2050.
Quantitative – Sets numeric product intensity targets that decrease over time.
Comprehensive – Creates a complete decarbonization framework with product-based standards and science-based emissions target setting for steelmakers.
Principled – Lays out a clear vision for steel in a decarbonizing economy employing the process-agnostic approach.
Transparent – Offers a clear and direct scheme for product certification, verification of emissions targets, and labeling for consumer/end-market use.

3. The Standard has a set of criteria for evaluating and certifying steel products based on carbon intensity

The Steel Climate Standard establishes steel product-based intensity standards (t CO₂e/t hot rolled steel) that differentiate long and flat steel products. Separating the carbon intensity for these products is necessary as they differ in chemical composition.

Source: GSCC Steel Climate Standard

To certify their products under the Standard, companies should provide their product’s GHG intensity value, with documentation of verified calculations. They should also have science-based emissions targets (SBETs) within 2 years of joining.

Steel producers can certify as many products as they want and can acquire certification at the facility level. 

4. Science-based emissions targets that align with the 1.5ºC scenario

Steel companies joining the GSCC’s Steel Climate Standard need to have science-based emissions targets that align with the net zero scenario. This involves, at the minimum, creating both interim or short-term targets (5 – 10 years) and long-term goals. 

The Standard provides a clear, step-by-step guide for companies on how to set SBETs. The guideline is based on IEA’s Net Zero by 2050 Roadmap, which allocates a carbon budget for the iron and steel industry. But the Standard takes into account all relevant GHGs, which are excluded in IEA’s pathway. 

The Steel Climate Standard also includes a number of iron and steel value chain processes that aren’t part of the IEA scenario. The following chart shows the Standard’s decarbonization glidepath or trajectory, based on steel product GHG intensity.

Source: GSCC Steel Climate Standard

5. Independent 3rd-party verification is a must

The Standard requires independent third-party verification of product emissions every 3 years and reduction targets every 5 years. 

When calculating and reporting Scope 1, 2, and 3 emissions, companies must follow the GHG Protocol Corporate Reporting and Accounting Standard. The Standard also provides a detailed guide for emissions accounting procedures, specifying which established guidelines and standards to comply with. All these calculations must be verified independently.

The Global Standard to Decarbonize Steel

Highlighting the need for a global standard for the steel industry, GSCC Chair Greg Murphy noted that:

“Creating a dual standard would allow high-carbon emissions steel to be prioritized over lower-carbon steel. This would serve to discourage innovation and allow high-carbon steelmakers to postpone making changes in their production process.”

This is what The Steel Climate Standard particularly aims to fix by creating a single, transparent framework that works for all steel producers globally, regardless of the technology they’re using both for high-carbon and low-carbon steel production. Most importantly, it creates a global standard for the industry to help achieve its Paris-aligned emissions reduction goals. 

The post The Steel Climate Standard is Finally Out: Our 5 Key Takeaways appeared first on Carbon Credits.

Roadway Revolution: Nikola Accelerates Hydrogen Truck Production

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An impressive feat was accomplished this quarter by Nikola Corporation, a trailblazer in the sector. If you’re not currently invested in the zero-emissions transportation world, it’s worth paying attention to growth in the hydrogen sector.

Nikola Corporation Boosts Cash Position by a Stunning $107.1M

This last quarter, Nikola has been an economic powerhouse, boosting its cash position by a remarkable $107.1 million. It has not only managed to cut down on spending, but also doubled its available funds.

“We’ve rounded the bend, and profitability is in sight,” said Nikola’s CEO Michael Lohscheller. He assures that Nikola’s revolutionary work towards a greener future in trucking is for the long haul.

Record-breaking Quarter for Nikola’s Retail Sales

But the exciting news doesn’t end there.

Nikola started serial production of its hydrogen fuel cell electric truck on July 31, with the first batch for delivery to eager customers in September. Already, 18 customers have placed orders for over 200 of these trailblazing vehicles, a testament to Nikola’s promise and potential.

Their strategic goals for the quarter? They’ve surpassed them. 

Not only did Nikola sell a record-breaking 66 retail battery-electric trucks and an additional 45 wholesale. They also decreased their cash flow to below their $150 million target. 

As a result, they managed to raise an astonishing $233.2 million. Nikola’s game-changing hydrogen refueling ecosystem has also seen substantial progress.

Nikola’s HYLA Brand: Ensuring Adequate Hydrogen Supply for a Brighter Tomorrow

With their HYLA brand leading the way, Nikola is forging ahead to meet the increasing demand for hydrogen supply as truck sales skyrocket. They’re not alone in their mission, either; they’ve got solid partners to drive the hydrogen refueling ecosystem forward.

Nikola and Voltera have recently teamed up, and they’re already working on setting up eight initial stations. Their first station in Ontario, California will be operational by year’s end.

In a momentous stride towards their capital efficient strategy, the Phoenix Hydrogen Hub project has been acquired by Fortescue Future Industries (FFI), providing validation and future potential for hydrogen demand. This agreement with FFI, to take effect by 2025, will undoubtedly contribute to Nikola’s success in the coming years.

Over in Coolidge, Arizona, Nikola has completed an expansion of their assembly facility. Now, they can build both battery-electric and hydrogen fuel cell electric trucks on their new mixed-model line. They anticipate the assembly line for the fuel cell power module will be completed in the fourth quarter of this year. Plus, a battery pack line is in the works.

The bottom line? Nikola is driving a revolution in the transportation world, and it’s just the beginning. Miss out on this wave, and you might find yourself trailing behind in the dust.

Canada’s First Hydrogen (FHYD) Vehicle Outstrips Expectations

The hydrogen-fueled revolution in vehicle technology is here, and it’s exceeding all expectations. First Hydrogen Corp (FHYD.TSX-V).’s fleet trial with UK utility SSE PLC saw its fuel-cell-powered vehicle hitting a striking 630-kilometer range on a single refuel.

Image: Prototype design of First Hydrogen’s ZEV hydrogen fuel cell delivery van

Drivers sang praises for the quiet, smooth ride that felt similar to diesel in terms of range, minus the damaging emissions. The quick refueling time impressed many, and the vehicle even proved capable of handling longer routes with ease. Its efficient fuel consumption, with an average of 1.58kg H2/100m, and impressive energy management system, which maintained battery charge by regenerative braking, signaled a new dawn in the field.

“The trial data shows efficient performance from the fuel cell and suggests that heavier payloads and consistent driving at higher speeds do little to diminish range,” said Steve Gill, CEO of First Hydrogen Automotive. 

Meanwhile, Simon Gray, Head of Fleet Services at SSE PLC, hailed the trial as a game-changer, offering real-world insights that could shape the future of their fleet.

First Hydrogen’s collaboration with SSE is a step towards the latter’s commitment to transition over 3,000 fleet vehicles to electric by 2023. The trial results put them on a promising trajectory.

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Amazon’s Carbon Emissions Take a Green Turn with Renewables

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Since Amazon started disclosing its carbon emissions in 2019, the retail giant saw its footprint decline for the first time as it works towards its 2040 net zero emissions goal. 

The world’s largest online retailer reported in August last year that its emissions were up 40% from 2019. In the company’s latest Sustainability Report, they showed that they managed to cut emissions by 0.4% from the previous year to 71.27 million metric tons of carbon dioxide. 

Amazon’s carbon intensity, emissions per dollar of sales, also dropped 7% and has decreased 24% since 2019. The retailer also reported the progress of its The Climate Pledge program, while focusing on renewable energy projects and deployment. 

Working Its Way to Net Zero by 2040

After seeing increasing carbon emissions four years ago, Amazon had seen a slight decline in its footprint in 2022. The 0.4% decrease is achieved despite the company’s year-over-year net sales growing by 9%. The same goes for its carbon intensity.

Amazon said these positive climate achievements are largely due to improving efficiency across its business and growing investments in renewables.

Through Scope 1 emissions (direct operations) rise by 11%, Scope 2 emissions (purchased electricity) drop by 29%. The company focuses on decarbonizing delivery and logistics by launching the first electric heavy goods vehicles in the UK and Germany. 

The company is electrifying its delivery fleet, as evidenced by buying 100,000 Rivian electric delivery vans that will hit roads in 2030. They now have over 9,000 EVs in its global fleet, and 2,600 Rivian vans in North America.

Apart from using more EVs, the e-commerce giant is also relying on green hydrogen to power its forklifts in fulfillment centers in North America.

As the largest source of its carbon footprint (77%), Amazon saw a 0.7% decrease in the value chain or Scope 3 emissions.

Nevertheless, though the company doesn’t have direct control over its Scope 3 sources, it’s working closely with suppliers to encourage them to decarbonize their own businesses, too.

Amazon is helping them by providing products and tools they need to track emissions and reduce them. Through its Supply Chain Standards, the retailer requires suppliers to share their carbon data, particularly their own carbon reduction goals. 

Investing in Renewable Energy to Boost Sustainability 

Shifting to renewable energy is one of the significant ways to cut emissions, according to Amazon’s Sustainability Report. Investing in renewables enables the company to achieve a 29% reduction in emissions from purchased power or Scope 2. 

Early this year, the retail giant announced 401 renewable energy projects which represented over 20 GW of clean energy capacity. That’s enough to power the equivalent of 5.3 million U.S. homes each year. Part of that is the projects it signed with the Indian authorities in January, allowing it to trade renewable energy in the country. 

In 2022, 90% of electricity consumed by Amazon was from renewable energy sources like solar and wind, up from 85% in 2021. The retailer further claimed in the report that they are on a path to reach 100% renewable by 2025.

Amazon has spent millions on renewable energy projects to power some of its warehouses, data centers, and offices. This makes the e-commerce leader the largest corporate buyer of renewable energy for the 3rd year in a row.

Asserting the big role of renewable energy in reaching net zero, Kara Hurst, Head of Worldwide Sustainability at Amazon said:

“We are investing in renewable energy around the world, with our teams analyzing routes and distances to build a logistics system that gets packages to customers faster, with fewer emissions.” 

The key to making renewable energy more meaningful is to pair it with energy storage. In line with this, through The Climate Pledge, Amazon has invested in companies that produce green hydrogen, a type of renewable energy that can be stored for future use.

To sum up all the major points leading up to its 2040 net zero goal, Amazon has the following roadmap:

Source: Amazon 2022 Sustainability Report

The Climate Pledge to Accelerate Sustainability Efforts

Amazon and Global Optimism co-founded the $2 billion Climate Pledge Fund in 2019. Their goal is to bring together the world’s top companies to ramp up climate actions. 

It inspires other companies to make their own ambitious climate goals and strive to achieve them.

The venture investment program supports sustainable technologies and services that will help Amazon achieve net zero emissions by 2040. New investments in 2022 bring the Fund’s portfolio to 20 total companies. 

Parties to the pledge agree to regularly measure and report on their carbon emissions. They then commit to reducing emissions by implementing various decarbonization measures. And any remaining footprint can be offset with permanent, real, additional, and verifiable carbon credits. 

The initiative’s progress in 2022 includes 111 additional signatories and the following results:

Amazon’s 0.4% carbon reduction amid growth marks progress towards its net zero goal by 2040.

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