Uncategorized – Page 42 – The Global Carbon Fund

ACX Reveals Major Trades on Historic Carbon Credit Exchange in ADGM

October 27, 2023/in Uncategorized /by

AirCarbon Exchange (ACX) revealed that its exchange and clearing house in Abu Dhabi Global Market (ADGM), became live. The carbon exchange also announced that key trades have already started on their platform, expected to be a rapidly expanding market for voluntary carbon credit trading.

Singapore-based ACX is a digital exchange seeking to speed up the world’s journey to net zero which uses blockchain technology to securitize carbon credits. These credits are certificates representing certain carbon emission reductions achieved by an initiative or project.

The Pioneering Move in Carbon Credit Regulation

Emissions trading schemes in carbon markets are valuable instruments to reduce greenhouse gas emissions. In the voluntary carbon markets (VCM), carbon credits are called carbon offsets, demand for which is projected to skyrocket.

In compliance carbon markets, the credits are allowances or cap on the amount of carbon companies can emit. When they exceed the emissions cap, they can buy carbon credits from others with surplus or unused allowances.

In February last year, Singapore-based ACX worked with the ADGM to establish the world’s first regulated carbon credits trading exchange in the emirate’s capital. ADGM will regulate the credits and the offsets as emission instruments while also issuing licenses for exchange platforms to work both as spot and derivative markets.

Abu Dhabi’s sovereign wealth fund, Mubadala, acquired a 20% stake in ACX in November 2022. This move is part of the fund’s economic diversification and commitment to responsible investing.

In the same year, the ADGM made history by becoming the first jurisdiction to regulate voluntary credits as financial instruments. This milestone was facilitated through the Environmental Instrument classification, which established a regulatory framework for licensing exchanges and clearing houses.

Following that groundbreaking step, ACX Abu Dhabi became the first entity to be licensed under ADGM’s framework. The exchange earned the recognition as the world’s first regulated Recognized Investment Exchange and Recognized Clearing House.

Setting the Stage for Carbon Credit Trading

The regulatory licenses gained by ACX significantly bolstered trust, security, and investor protection within the carbon credit trading space. By mandating fair trading practices, real-time market surveillance, and strict adherence to regulatory standards, ACX ensured heightened market integrity, transparency, and efficient price discovery.

With these in place, ACX successfully laid the groundwork for enabling VCM participants to trade under a robust regulatory framework.

Asserting the significance of this historic achievement, Arvind Ramamurthy, Chief of Market Development at ADGM noted that:

“As we find ourselves in a critical time with the development of global carbon markets, this step marks a momentous milestone in the journey towards a thriving market for voluntary carbon markets.”

The inaugural carbon credit trade on the fully regulated carbon trading platform occurred through a collaboration between First Abu Dhabi Bank (FAB) and Helix Climate.

FAB is UAE’s largest bank whereas Helix Climate simplifies the process of trading, settlement, valuation and retirement of carbon credits in the VCM. Their involvement underscores the importance of this remarkable evolution in the carbon market landscape.

Leading the Way to Market Integrity and Climate Action

Expanding its offerings, ACX Abu Dhabi announced the successful execution of the first trade on its Carbon Market Board (CMB). It is an advanced electronic trading platform that enables participants to carry out and finalize over-the-counter transactions.

The significant trade was in collaboration with South Pole, a renowned global leader in climate project development and solutions provision. The carbon developer’s Executive Director, Abderrahman Kasmi, emphasized the pivotal role of ACX in fortifying the integrity of carbon markets.

ACX’s commitment to innovation in this sector was recently acknowledged by Environmental Finance. It awarded ACX Abu Dhabi the prestigious title of the best carbon exchange of 2023 for the third consecutive year.

Meanwhile, ADGM’s progressive ecosystem allows businesses and investors to voluntarily buy verified carbon credits, signifying testament towards climate action.

Partnering with ACX is part of the United Arab Emirate’s net zero strategies. It’s also in preparation for hosting the upcoming climate change conference, COP28, in Dubai.

The UAE leads the process for all COP28 parties to come up with a clear roadmap to accelerate progress to inclusive climate action by employing a pragmatic global energy transition and a “leave no one behind” approach. The COP28 Action Agenda provides a practical plan of action to turn the Paris Agreement objectives into reality.

With the adoption of advanced technology and a robust regulatory framework, ACX could help facilitate transparent and secure carbon credit transactions, fostering trust and integrity within the burgeoning carbon market landscape.

The post ACX Reveals Major Trades on Historic Carbon Credit Exchange in ADGM appeared first on Carbon Credits.

Sustainable Biomass Sourcing: A Buyer’s Guide for Biomass-Based CDR Contracting

October 27, 2023/in Uncategorized /by

Carbon Direct, a carbon management solutions provider, just published a practical buyer’s guide for sustainable biomass sourcing to help mitigate the risks of biomass-based carbon dioxide removal (CDR) contracting.

The guide is a product of collaboration between buyers and Carbon Direct’s expert advisory group with large corporations as signatories, including Microsoft, Shopify, and Stripe. It provides practical insights for CDR agreements while emphasizing the need for stringent standards and oversight for sustainable biomass sourcing.

The report also underscores the potential of biomass-based CDR in fighting global warming and achieving ambitious climate targets. It marks an initial step toward establishing effective safeguards through its four sourcing principles, each with its own criteria.

While not a standard or certification, the report considers multiple implementation pathways, aiming to minimize risk and pave the way for the industry’s expansion.

Mitigating Risks in Biomass-Based CDR Contracting

The biomass-based CDR industry is expanding rapidly in the voluntary carbon markets. And as demand for durable carbon removals grows, biomass-based solutions are at the forefront.

Most of the available supply of highly-durable CDR to date include bioenergy with carbon capture and storage (BECCS), biochar, and other biomass carbon removal and storage (BiCRS). These biomass-based CDR projects can scale rapidly in the next decade, with millions of tonnes of announced offtake agreements already.

Given that the largest biomass-based CDR projects will start storing carbon as early as 2026, the report focuses on tools and frameworks that will be executed within the next few years. This near-term approach is crucial in providing recommendations for seamless integration into contracts involving different biomass-based CDR applications.

Per global projections, the demand for biomass in ambitious decarbonization scenarios could potentially surpass conservative estimates of sustainable, low-lifecycle-emissions supply by a considerable margin, ranging from 11x to 16x by the year 2050.

These studies, while showing varying figures, all underscore the significant disparity between the accessible biomass resource and its various potential applications in a net zero economy. The chart shows the variance between demand and supply of biomass by 2050.

A Mismatch Between Biomass Demand & Supply by 2050

The biggest potential source of new demand for biomass is energy conversion. Some estimates suggest that biomass demand from biopower alone would consume all supply by 2050. These projections emphasize the importance of developing sound guardrails on biomass use before these industries scale up.

This is where the new guidance comes in, providing the guardrails to mitigate the risks of biomass-based CDR contracting. This goal is guided by four core sourcing principles outlined in the document.

The 4 Core Principles for Sustainable Biomass Sourcing

The principles are achievable through the satisfaction of a set of criteria and implementation options as suggested.

Principle #1.

The criteria for this principle are as follows:

Source certified through an independent, third-party audited forest certification standard; or from areas of low risk (determined by risk-based assessment).
Source from jurisdictions with robust forest governance or strong oversight of forest certification standards (using the Corruption Perception Index (CPI) and similar resources).
Biomass must be traceable across the entire supply chain, from the sourcing jurisdiction to point of conversion for carbon removal.

Chain-of-custody (CoC) tracking is often the primary method used to trace products from their source to their final destination.

Principle #2.

Complying with the second principle involves these things:

Sourcing from wood processing operations with low risk of impact to community’s health,
Sourcing from forest operations respecting the rights of the Indigenous Peoples (IPs),
Sourcing from forest operations protecting the economic, social, and environmental well-being of workers.

Principle #3.

The third principle emphasizes the importance of forest protection and preservation with biomass sustainably sourced from:

Areas not considered as primary forest (per UN FAO definition) or old-growth forest (per national/subnational definition),
Forest management initiatives that don’t threaten protected areas or High Conservation Value forests (unless harvest is explicitly granted),
Forest management efforts that preserve or improve ecological functions (e.g. biodiversity, soil health, regeneration, and nutrient cycling),
Areas where forest stocks are in steady-state or growing.

Principle #4:

This last principle focuses on biomass sourcing that doesn’t compete with existing agricultural or forestry products. The biomass must be:

A by-product of non-energy products or services,
From wood that can be accounted for existing economical counterfactual biomass uses (carbon storage) to understand the real carbon benefits of biomass,
Not from plantation forests developed within the past 2 decades (except previously used for agricultural purposes for ten or more years).

Each criterion is accompanied by a comprehensive explanation in the guide. The criteria provided seek to provide specific, measurable outcomes, with multiple implementation options for flexibility.

Though the report considers the most conservative option as “preferred”, it emphasizes the potential for customized oversight in specific cases. It particularly depends on certain factors at play in specific area.

Finally, buyers should take into consideration any trade-offs between practical and conservative approaches when adopting the recommended options into their biomass-based CDR offtake agreements.

Below is the list of the prominent voluntary and regulatory certification schemes that certify forest biomass provided in the guide.

Biomass Certification Schemes

As the biomass-based CDR industry continues to expand, establishing effective safeguards and standards for sustainable biomass sourcing is crucial. Carbon Direct’s buyer’s guide provides comprehensive insights and principles for mitigating risks and ensuring responsible sourcing practices.

By emphasizing the necessity of stringent oversight and sustainable biomass sourcing, the guide paves the way for the industry’s sustainable growth and underscores its significant role in global climate action.

The post Sustainable Biomass Sourcing: A Buyer’s Guide for Biomass-Based CDR Contracting appeared first on Carbon Credits.

Carbon Capture to Urgently Scale to 7 Billion Tonnes/Year to Hit Net Zero

October 26, 2023/in Uncategorized /by

To achieve global net zero goals by 2050, the world has to urgently fast track capturing 7 billion tonnes of carbon dioxide per year, according to Wood Mackenzie research.

According to their analysis, the current pace of carbon removal is on course to reach only 2 billion tonnes of CO2 by 2050 (base case scenario). This carbon capture capacity aligns with the 2.5°C global warming scenario.

Current and Planned Carbon Capture and Removal

Achieving the critical 1.5°C warming threshold requires 7 billion tonnes of carbon capture and removal by midcentury.

Speaking for Wood Mackenzie during their Carbon Capture, Utilization and Storage (CCUS) Conference, the research head Mhairidh Evans said that:

“We need a huge amount of carbon to be captured out of our industries and the power sector to decarbonise the last miles that can’t be easily reached by green electrification or alternatives… To come close [to 1.5°C], we need to get shovels in the ground quickly.”

Wood Mackenzie is currently monitoring planned global CCUS capacity at 1,400 million tonnes of CO2 per annum. This includes all kinds of projects: carbon capture, transportation, and storage, with the U.S. leading the way with 33%.

The UK comes second with 14% of the projects, followed by Canada with 12%, with the rest shown in the chart below.

Evans further noted that the U.S. Inflation Reduction Act 45Q tax credit provides significant support for polluters to decarbonize. Moreover, the Infrastructure Investment and Jobs Act also helped companies in developing the infrastructure essential for CO2 transport and storage.

Add to this the vast geological carbon storage resources available in the country for companies to tap. All these make the U.S. well-positioned for strong growth in the CCUS market.

Still, the analysis suggests that delaying actions or waiting for CCUS projects to become economically viable can make it more difficult to meet climate goals. This can further cause more economic implications due to the climate crisis.

Key CCUS Opportunities and Challenges

The United Nations’ IPCC and other renowned organizations believe that CCUS has a big role in avoiding carbon emissions that warm the atmosphere. The panel argues that capturing carbon and locking it away for good is key to achieving the Paris Agreement targets.

CCUS is one of the carbon removal technologies that’s getting the most attention from private and public investors in previous years.

Source: CBInsights.com

To date, the U.S. Department of Energy has been investing billions of dollars in carbon capture projects. The agency is supporting both early-stage (R&D) and commercial carbon capture initiatives.

Additionally, with the new rules proposed by the Environmental Protection Agency, which regulate emissions from coal and new gas-fired facilities, CCUS technologies became an attractive solution for hard-to-decarbonize sectors.

Other governments are also keeping pace with the U.S. Canada, the UK, and the EU have also committed large sums of money to advance these climate technologies.

What Makes it Hard to Expand CCUS?

But the global research and consultancy firm highlighted some key challenges that hinder the industry to grow more and expand. These include nascent policy and regulations, unfit business models, and most particularly, high costs.

Costs remain the biggest concern for businesses in the sector. Despite the 45Q tax credit, companies still have to wait for prices to go down to scale up their projects.

Furthermore, most technologies available today for carbon capture, transport and storage are still evolving. They have yet to demonstrate that they can deliver as promised. Majority are startups, needing large capital investments to develop and scale their carbon capture and removal technologies.

Some scientists and industry leaders even question the technology’s feasibility and efficacy. They claim that it detracts from the more urgent call to transition to renewables and other cleaner energy alternatives.

Add to this the challenge of convincing heavy polluters to embrace carbon capture as part of net zero strategies, as WoodMac noted. While there has been a growing number of carbon storage hub initiatives, there’s a limited demand from potential customers.

WoodMac expects project development costs to decrease by up to 30% during this decade. However, if companies wait for this price drop, that also means delaying the impact of their projects. In that case, the delayed carbon emission reductions will make the 1.5°C global warming dream far from reality.

The post Carbon Capture to Urgently Scale to 7 Billion Tonnes/Year to Hit Net Zero appeared first on Carbon Credits.

Powering the Future: US Government’s $3.5B Bet on Sustainable Energy Solutions

October 25, 2023/in Uncategorized /by

With the aim of addressing the challenges posed by climate change and increasing power demands, the Biden-Harris Administration, via federal agencies, invested in critical grid infrastructure upgrades and clean energy projects.

The US Department of Energy (DOE) revealed a $3.5 billion funding for 58 projects in 44 states to fortify the aging U.S. power grid against extreme weather and fires and integrate renewable energy sources.

Meanwhile, two other agencies, the US Department of the Treasury (USDT) and the US Department of Housing and Urban Development (HUD), launched a clean energy project tax bonus and awarded building retrofit funds, respectively.

Upgrading Power Grid Through Renewables

The DOE’s funding comes from the Bipartisan Infrastructure Law, marking the most substantial direct investment in the grid to date. The initiative is a response to the challenges posed by climate change-induced disasters and increasing power demands from new technologies like electric vehicles and AI.

Energy Secretary Jennifer Granholm emphasized the need for a more robust, larger, and smarter grid to accommodate the evolving landscape of energy production and consumption.

The projects include plans to generate over 35 GW of renewable energy and establish 400 microgrids to enhance energy independence. Microgrids refer to self-sufficient energy systems.

More than 75% of the projects have collaborations with the International Brotherhood of Electrical Workers union. The goal of this partnership is to keep or generate union jobs.

Notably, the funding is part of the DOE’s larger $10.5 billion grid resilience and innovation partnerships (GRIP) program.

One remarkable project, receiving more than $507 million, focuses on bolstering remote communities in Georgia. The funding will enhance a smart grid in the state, incorporating battery storage, local microgrids, and transmission lines.

Over in Pennsylvania, PECO Energy will work on improving grid reliability and resilience by implementing various measures. These include flood mitigation for substations, updating aging infrastructure, and deploying battery systems for backup power.

Moreover, some initiatives aim to expand transmission across multiple states, including a wildfire mitigation project in Western states. For the complete list and information of the GRIP selected projects for award negotiations, refer to the DOE’s website.

Boosting Clean Energy and Zero-Energy Buildings

In a separate announcement, the federal government also unveiled another important initiatives under the Inflation Reduction Act. The goal is also to bolster renewable energy access and enhance climate resilience in low-income communities.

These efforts, spearheaded by the USDT, DOE and HUD, include bonus incentives under Section 48(e) for small clean energy projects and awards for resilient, zero-energy housing.

Under the bonus credit program, the agencies pledged support for qualifying wind and solar energy facilities in low-income communities.

With a capacity of 1.8 GW for 2023, the program enables eligible wind and solar facilities to benefit from a 10 or 20 percentage-point increase to the investment tax credit of up to 30%. Eligible renewable energy facilities must have a maximum output of <5 MW.

These incentives aim to drive investments into underserved areas and significantly reduce energy costs and pollution. Applications for this year’s program are acceptable until early 2024.

The HUD’s Green and Resilient Retrofit Program (GRRP) manages the other funding program for resilient, zero-energy retrofits. The agency allocated $103.4 million in loans and grants for the renovation of over 1,500 low-income households.

The funding will facilitate substantial retrofits to ensure climate resilience and achieve zero-energy status for those residential buildings. This effort reinforces the administration’s commitment to affordable and sustainable housing for low-income families.

With a total investment of >$800 million in grant and loan subsidy, the HUD program awarded >$121 million to date.

This recent financial support comes at the heel of the HUD’s prior funding allocations. These include the Elements category that focuses on climate resilience and utility efficiency measures.

Likewise, the DOE also launched its Earthshot program earlier this month to achieve a minimum of 50% cost reduction in decarbonizing homes and lowering energy costs for residents by 20% within the next 10 years.

These funding initiatives directed towards grid fortification and clean energy expansion reflect the Biden-Harris Administration’s commitment to sustainable and resilient energy solutions. By prioritizing grid resilience, renewable energy integration, and climate-conscious housing retrofits, these efforts aim to foster a greener and more sustainable future for communities across the nation.

The post Powering the Future: US Government’s $3.5B Bet on Sustainable Energy Solutions appeared first on Carbon Credits.

Occidental Petroleum Quietly Abandons Biggest Carbon Capture Plant

October 25, 2023/in Uncategorized /by

Occidental Petroleum, a leader in carbon capture and storage (CCS) technologies, has quietly abandoned its largest CCS plant, the Century, as per Bloomberg report. The technology worked, but economic concerns caused the plant to underperform at no more than a third of its capacity, leading to Occidental’s eventual divestment.

The oil giant sold the Century last year only for a fraction of the cost it spent on constructing it. Today, Oxy is building a landmark carbon capture plant in Texas called Stratos.

Oxy’s Failed CCS Venture

Stratos is the second big bet of the oil major on CCS technology to manage carbon emissions. Century, built in 2010, is located 100 miles away from Stratos. It was designed to be the largest carbon capture plant, accounting for over 20% of global CCS capacity.

While both plants are categorized as CCS, they use different carbon capture technologies. Stratos is using Direct Air Capture (DAC) while Century is pulling carbon from a specific source of emissions.

Century was also built into a natural gas processing plant to suck in the CO2 it spews before it escapes into the air. This carbon capture process is cheaper, uses simpler tech and is more established than the DAC used in Stratos.

Though Oxy benefited from the direct application of Century, with the captured CO2 used by the oil firm in producing more oil, the older CCS plant failed to deliver expected results.

As per Bloomberg investigation, Century has never worked at over ⅓ of its carbon capture capacity since it started working 13 years ago. The carbon capture technology successfully worked but limited gas supply is the biggest challenge.

Source: Bloomberg

Century had two engines capable of capturing CO2, but only one was operational, never functioning beyond half its capacity. One engine can capture 5 million tons of carbon while the other can catch over 3 million tons. Satellite data show that cooling towers on one engine don’t function, suggesting non-operation.

After a decade of running the project, Oxy quietly sold the struggling asset in January 2022 for about $200 million. The oil major had invested more than 4x that amount in building the plant. An operator at Century noted that they don’t have enough gas to run the plant.

Thus, the company decided to sell it off to Mitchell Group. Despite the sale, Occidental claims to continue using all the CO2 from the old carbon capture plant.

Century’s under delivery raises concerns about the viability of large-scale CCS projects. Can they be economically sustainable?

Carbon Capture Essential for Net Zero

According to the International Energy Agency, rapid scale up of CCS (also called CCUS) is essential to achieving net zero emissions targets. The technology plays four crucial roles in the net zero transition.

First, it handles emissions from existing energy sources. Second, it offers an abatement solution for hard-to-abate sectors. Third, it could be a platform for green hydrogen production. Lastly, it removes CO2 from the air to compensate for emissions that can’t be directly avoided.

Carbon capture, particularly DAC, is one of the focus of the upcoming climate change conference COP28 hosted by the United Arab Emirates. COP28 in the UAE will be a milestone moment when the world will get to know its progress on the Paris Agreement.

As the 2050 net zero target is getting closer, climate experts expect vast expansion of DAC projects to keep temperatures in line with the Paris Agreement goals. A climate scientist believes that the world absolutely needs carbon capture to get to safe warming levels.

However, the current total carbon capture capacity stands only at around 45 million tons of CO2 a year. As per IEA analysis, that’s only 4% of CCS required by 2030 to be on track for net zero.

Oxy’s new billion-dollar DAC plant Stratos aims to rapidly scale carbon capture by absorbing up to 500,000 metric tons of CO2 each year once it operates. That would make Stratos the largest DAC plant on the planet.

The amount of carbon captured by the plant generates corresponding carbon removal credits. Tech giants, aviation leaders, and other major companies have already pre-purchase carbon removal credits from Oxy.

Amazon, Shopify, Airbus, Houston Astros, and Houston Texans are just some of Oxy’s customers for forward purchase agreements. The US government is also pouring billions of dollars in support of the technology.

Oxy’s Stratos is a next-generation DAC plant for capturing CO2 that remains more expensive today than Century’s technology.

According to the company’s estimates, it’s worth over $400/ton compared to below $60/ton to absorb CO2 from processing plants like Century. But DAC costs will go down eventually as Oxy learns and develops more of it.

A rising number of corporations are willing to pay for higher carbon removal credits from capturing CO2. As more of them are getting serious about their net zero commitments, projections show that the market for carbon removals could hit hundreds of billions of dollars.

US DOE’s $7B Clean Hydrogen Hub Grant: The 7 Chosen Ones

October 20, 2023/in Uncategorized /by

President Biden’s Investing in America agenda has allocated $50 billion to launch 7 Regional Clean Hydrogen Hubs (H2Hubs), an initiative that the Department of Energy (DOE) will support with a $7 billion grant.

This comprehensive plan is part of a strategic move to accelerate the deployment of low-cost, clean hydrogen across the country. Designed to create jobs, increase energy security, and fight climate change, the investment marks a significant milestone in America’s transition to a clean energy future.

Fueling Emission Reductions, Driving Sustainability

Clean hydrogen, also known as green hydrogen, production in the United States will grow from almost nothing last year to >10 million metric tons in 2032 (almost $18B in size). This includes the 7 hydrogen hubs chosen to receive the grants.

Funded by the Bipartisan Infrastructure Law, the H2Hubs will produce 3 million metric tons of hydrogen annually. It will also support the production, storage, delivery, and end-use of clean hydrogen, while reducing emissions from hard-to-decarbonize industrial sectors.

The funding will go to 7 selected regional hubs located in carbon-producing centres, including Appalachia, Gulf States, and the Midwest. Together, they will cut about 25 million metric tons of CO2 from end-uses each year.

The regional hubs will also create and retain tens of thousands of jobs, contribute to healthier communities and reinforce the nation’s commitment to environmental sustainability.

Clean hydrogen serves as a versatile energy carrier that can be produced from various clean energy sources such as renewables, nuclear, and fossil fuels with carbon capture.

By using these resources, the H2Hubs can significantly reduce harmful emissions from energy-intensive sectors. For instance, the chemical and industrial processes, as well as heavy-duty transportation will largely benefit from using clean hydrogen. All these while creating economic opportunities across the U.S.

The selected H2Hubs will share the cost in developing the network, alongside the Energy Department’s historic $7B investment. Their share is estimated to be over $40 billion, driving significant private sector investment in clean hydrogen. Read more about the seven selected projects in the following list below.

The 7 Chosen Hydrogen Hubs in America

Appalachian Hydrogen Hub:

The Appalachian Regional Clean Hydrogen Hub (ARCH2) in West Virginia, Ohio, Pennsylvania will utilize the region’s natural gas resources to produce low-cost clean hydrogen and store carbon emissions. With an allocated budget of up to $925 million, it aims to create over 21,000 jobs. It will benefit the Appalachian community through job opportunities and cost-effective hydrogen distribution.

California Hydrogen Hub:

The Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) in California will produce hydrogen exclusively from renewable energy and biomass. It is particularly aiming to decarbonize the key emitters in the state – transportation and port operations. The project plans to generate 220,000 jobs, with a budget of up to $1.2 billion.

Gulf Coast Hydrogen Hub:

The HyVelocity H2Hub will center in Houston, Texas and will focus on large-scale hydrogen production using natural gas with carbon capture and renewables-powered electrolysis. It anticipates creating around 45,000 direct jobs, with an allocated budget of up to $1.2 billion.

Heartland Hydrogen Hub:

This project in Minnesota, North Dakota, South Dakota, will leverage the region’s energy resources, aiming to reduce agricultural sector emissions and facilitate clean hydrogen use in electric generation and heating. It plans to create around 3,880 jobs, with a budget of up to $925 million.

Mid-Atlantic Hydrogen Hub:

The Mid-Atlantic Clean Hydrogen Hub (MACH2) in Pennsylvania, Delaware, and New Jersey will unlock hydrogen-driven decarbonization, utilizing innovative electrolyzer technologies. With an allocated budget of up to $750 million, it expects to to create 20,800 jobs.

Midwest Hydrogen Hub:

The Midwest Alliance for Clean Hydrogen (MachH2) will be in Illinois, Indiana, Michigan – a key U.S. industrial corridor. The hub will facilitate decarbonization across multiple sectors, including steel and glass production, power generation, and transportation. Leveraging diverse energy sources like renewables, natural gas, and nuclear energy, it aims to create 13,600 direct jobs, with a budget of up to $1 billion.

Pacific Northwest Hydrogen Hub:

The PNW H2 will cover Washington, Oregon, Montana, will produce clean hydrogen through electrolysis, driving down costs and promoting accessibility. It aims to generate over 10,000 jobs, with an allocated budget of up to $1 billion.

Promoting Economic Growth, Benefiting Communities

Each hydrogen hub is tailored to leverage the unique characteristics and energy resources of its respective region. The projects will harness the potential of clean hydrogen in diverse sectors, including agriculture, manufacturing, and transportation, driving economic growth.

More importantly, the Administration emphasizes the importance of community engagement and benefits in the development of the hydrogen hubs. Each H2Hub has to implement a comprehensive Community Benefits Plan (CBP) to ensure that the initiative benefits all communities.

To ensure the long-term success of the clean hydrogen economy, the DOE has issued a Request for Proposals for a demand-side initiative. This is crucial to provide market certainty for both producers and end-users in the H2Hubs.

Apart from hydrogen producing companies, who would be the other winners of the $7B federal hydrogen grants? Big oil and electric utilities will also benefit from the DOE investment.

Among the listed partners in the H2Hubs construction and operation are the major oil companies, including ExxonMobil and Chevron. Exxon, alone, has pledged $7 billion to produce hydrogen in the U.S.

Natural gas companies will also benefit from the hydrogen funding and will use the gas to power turbines. Popular names include Dominion Energy, Xcel Energy, and the AES Company.

And clearly, key players in the hydrogen market can take advantage of the historic investment.

Nikola and its hydrogen fueling stations will benefit from the grant, and so will other companies developing hydrogen fuel cell vehicles (FCEVs). FCEVs are gaining traction, with growing interest and demand for these vehicles, especially for long-haul trucking and parcel deliveries.

As such, First Hydrogen Corp. (TSXV: FHYD) (OTC: FHYDF) (FSE: FIT) will surely benefit from the projects once the hubs become functional. The company is poised to capitalize on the emerging zero-emission fleet vehicle market led by FCEV.

The clean hydrogen hub program, managed by the DOE’s Office of Clean Energy Demonstrations (OCED), represents a significant step towards achieving the Biden-Harris Administration’s ambitious climate and energy goals. It will lay the groundwork for a cleaner, equitable, and more sustainable energy future for the country.

The post US DOE’s $7B Clean Hydrogen Hub Grant: The 7 Chosen Ones appeared first on Carbon Credits.

Startup Revolutionizes Mobility Sector with World’s First Carbon Credit Patent

October 20, 2023/in Uncategorized /by

A pioneering climate tech company, Greenlines Technology, announced the approval of the world’s first carbon credit generation process patent awarded by the United States Patent and Trademark Office (USPTO).

Greenlines Technology empowers and rewards sustainable behaviour in the mobility and e-commerce industries to make a positive environmental impact through its advanced digital measurement, reporting, and verification (dMRV) technology.

The Vancouver-based climate tech startup is the first to coin the term ‘Human-based Solutions’ (HbS) in carbon markets, which refers to contributions by individuals and their behavior in reducing carbon emissions.

Greenlines: Pioneer Carbon Credit Patent in Transportation

The first-of-its-kind patent, Mobility Carbon Engine (MCE), represents a significant advancement in global carbon markets, providing novel intellectual property rights. Titled “Methods and Systems for Conversion of Physical Movements to Carbon Units”, it has Patent Number US 11,774,255 B2.

Greenlines’ landmark patent enables mobility app owners to measure and monetize emission reductions facilitated by users. The groundbreaking technology can accurately calculate and monetize those reductions, setting a precedent for quantifying sustainable transportation impacts.

The newly patented technology has been around since 2019 in 60+ cities across Canada and the U.S.

Highlighting the importance of this technology in reducing emissions and promoting sustainability in mobility, CEO and co-founder David Oliver noted:

“By providing a systematic approach to accurately quantify and recognize emission reductions resulting from individuals’ use of low-carbon land, water, and air-based transportation modes, the MCETM creates a comprehensive framework that rewards individuals and organizations for choosing sustainable alternatives.”

As per the Environmental Protection Agency’s latest data, greenhouse gas (GHG) emissions from transportation account for about 29% of total U.S. emissions, making it the biggest contributor of the country’s pollution.

With over a third of Americans commuting to work on an average of 44 km or 27 miles, the annual CO2 emissions per commuter stands at about 4.6 tons.

According to Oliver, if 10% of these commuters use their MCE, it can potentially slash their emissions by around 20%. That’s equivalent to a total of 24 million tons of CO2 emission reductions each year in the US transport sector.

MCE Transforms the Transportation Sector

The MCE is powered by Greenlines proprietary Modal Shift Optimization GHG Quantification Methodology developed according to ISO 14064-2. This guarantees that the carbon credits generated through the app meet the highest standards and trades at a premium price.

The technology uses advanced algorithms to measure the emission reductions from each trip, avoiding reversal and ensuring offsets are permanent. It is simple to use and has a user-friendly interface, thus it is highly accessible to everyone.

To meet the criterion on additionality, the MCE creates a custom baseline for each user and use it as reference for getting the emission reductions. The reduction is the difference between the baseline and the actual carbon pollution emitted by each trip. The data is crucial to ensure that the reductions are additional compared to the emissions without the offset project.

In establishing the baseline, Greenlines uses regional project and baseline emissions for various transportation modes – land, water, and air. These include taxis, public transit, ride-hailing, e-scooters, and pedal bikes.

The innovative technology employs a robust monitoring system to track and verify the emission reductions. Verification is through independent, third-party verifier. And these verified emission reductions (VERs) have been successfully sold as carbon credits to voluntary buyers in the carbon market.

Greenlines’ carbon offset project is transparent with publicly accessible information, including the amount of CO2 reduced, the MRV process, and offset revenue use.

Meeting all these criteria – additional, permanent, real, verifiable, and transparent – makes the carbon credits or offsets generated of high-quality. Each credit represents a tonne of reduced CO2 emissions.

Greenlines’ technology offers a potential to revolutionize the mobility sector while providing a strong incentive for individuals to choose low-carbon trips. It empowers mobility aggregators, including transit agencies, trip planning apps, and private mobility providers to promote sustainable transportation practices.

Incentivizing Sustainable Behavior with Carbon Credits

The patent doesn’t only track and monetize emissions from personal trips but also from food and package deliveries, Oliver said.

That’s through their upcoming E-commerce Carbon Engine (ECE), which is currently in its pilot phase. Same as MCE, ECE will also generate carbon credits from low-carbon items bought in e-commerce or online trading platforms.

ECE uses Greenlines’ proprietary algorithms to get the CO2 footprint of each product, allowing consumers to choose low-carbon purchases. Thus, it also has the potential to slash emissions of online shopping.

Greenlines had already implemented the MCE technology across various North American cities. But it also plans to expand its reach globally by initiating patent applications in other jurisdictions such as the EU.

Their goal is to incentivize and drive sustainable practices worldwide through carbon credits generated by their patented technology.

By combining innovative technology with sustainability, Greenlines revolutionizes carbon markets while giving commuters the opportunity to identify, quantify, and monetize their carbon emissions reductions.

The post Startup Revolutionizes Mobility Sector with World’s First Carbon Credit Patent appeared first on Carbon Credits.

Bill Gates-Backed Startup’s Thermal Energy Storage Revolutionizes Industrial Decarbonization

October 20, 2023/in Uncategorized /by

The single largest driver of climate change, industry, accounts for about ⅓ of global carbon emissions. But a Bill Gates-backed startup, Antora Energy Inc., offers a potential solution to eliminate over 50% of industrial emissions with its unique approach to decarbonizing the sector – thermal energy storage via solid carbon blocks.

Industry has been considered a hard-to-abate sector due to the very nature of their energy-hungry and heat-intensive processes. This is what the startup Antora Energy, a company supported by billionaire Bill Gates’ Breakthrough Energy Ventures, tries to address.

Antora has launched its groundbreaking commercial-scale thermal battery system in Fresno, California, with a slated technology delivery target of 2025.

What is Thermal Energy Storage?

Almost every industrial facility needs heat to do its daily grind: to melt, cure, dry, cook, treat, calcine, among others. This heat accounts for ⅔ of all industrial energy use and the bulk of the sector’s emissions.

In the United States, the industry accounts for about ¼ of the country’s total greenhouse gas emissions in 2021.

Energy experts believe that if the world can solve the challenge of clean energy for heavy-emitting industries, it would pave the way for rapid industrial decarbonization.

Enter thermal energy storage or TES. Powered by renewable energy, TES can help decarbonize industrial heat in significant amounts.

Thermal energy storage enables companies to store heat using low-cost, scalable, and ample materials. It allows for the use of renewable energy when it’s cheapest, meaning when the wind blows or the sun shines. The solar or wind energy heats up a thermal battery, which is then stored for hours or days.

Image from https://reimaginingenergy.afwerx.com/

Thermal batteries are cheap to assemble, easy to maintain, and work for decades. Moreover, they don’t use expensive and limited materials, but abundant and cheap materials like carbon and concrete. They could provide the much-needed storage that can make renewable power available year-round.

The International Renewable Energy Agency (IRENA) estimates that TES would facilitate increased use of renewables in energy systems. With it, operators can effectively match energy demand and supply, making the system more efficient, flexible, and cheap.

Solid carbon, in particular, is available cheaply and comes with a vast supply chain of >30 million tons annually. Plus, it can store and emit huge amounts of heat at very high temperatures. This is what Antora Energy’s storage system is using.

Antora Energy’s Innovative Thermal Energy Storage

Co-founded by an MIT alumnus, David Bierman, Antora Energy leverages the power of nature, sun and wind, to provide low-cost and highly-efficient energy storage. Their thermal energy system stores electricity as heat to enable manufacturers and energy-intensive industrial processes to stop fossil fuel consumption. According to Bierman,

“The economic opportunity has grown, but more importantly the awareness from industries that they need to decarbonize is totally different. Antora can help with that, so we’re scaling up as rapidly as possible to meet the demand we see in the market.”

Different from traditional lithium-ion batteries, Antora’s thermal battery stores energy as heat within solid carbon blocks. It offers an eco-friendly solution for industries like cement and steel manufacturing that heavily rely on fossil fuels.

The company’s TES stores energy as heat in the blocks at extremely high temperatures, exceeding 1,800°C! It can then be used directly as heat or converted back to electricity via thermophotovoltaic (TPV) cells, similar to solar cells.

The building blocks can be configured to meet any load and their compact footprint enables seamless site integration.

Antora’s modular thermal energy storage turns solar and wind energy into dispatchable, zero-emissions heat and power. This can help companies operating in the industry to reduce their Scope 1 and 2 emissions.

While Antora forges ahead with this innovative approach, other startups are also making strides in the battery sector. Their approaches may differ but they all aim to eliminate or lessen the environmental impact of batteries while providing eco-friendly energy storage.

In fact, in the recent surge of venture capital, battery startups are making waves and attracting significant investments. One area of investor’s focus is optimizing renewable energy’s grid storage, which Antora Energy seeks to deliver.

Antora’s upcoming battery production site in the Bay Area, set to be completed by 2024, presents economic challenges more than technological ones; the venture requires significant capital. Overcoming these obstacles could pave the way for a transformative shift in the energy sector.

A Shift Towards Zero-Carbon Solutions

Antora’s thermal energy storage aims to provide an end result of a zero-carbon, flexible heat and power system for industry.

The company’s unique dual function of providing heat and electricity without carbon emissions presents a vital alternative for industries currently reliant on non-continuous renewable sources, essential for meeting decarbonization goals.

The energy storage company targets sectors relying on consistent heat and power for their plants, eyeing a substantial share of the $60 billion U.S. market. Market segments include cement, steel, chemicals, oil, and gas refining.

The company is targeting clients in windy and sunny states where renewable energy is abundant and cheap. With that, Antora aims to eventually outcompete fossil fuels on cost, potentially revolutionizing the energy industry. This innovation promises a significant step forward in the battle against climate change in carbon-intensive industries.

The post Bill Gates-Backed Startup’s Thermal Energy Storage Revolutionizes Industrial Decarbonization appeared first on Carbon Credits.

Greening the Entertainment Industry with Cleaner Energy Solutions

October 20, 2023/in Uncategorized /by

The British Columbia film industry, a key production hub for Hollywood entertainment, is under pressure to shift away from diesel generators to power film and food trucks on local sets.

According to reports, the use of diesel generators is a main source of carbon emissions. This makes Vancouver’s film sets a significant contributor to air pollution.

Suggestions for a change include using mobile power alternatives such as sourcing energy directly from the local grid. This works both for film and TV sets in British Columbia for producing original content for large studios and streamers.

Carbon Footprint of the Entertainment Industry

Sustainability is crucial to every industry and the film industry is no exception, facing growing scrutiny for its environmental impact.

According to the Sustainable Production Alliance (SPA), each film production emits around 3,370 metric tons (Mt) of CO2 or about 33 Mt for each shooting day. This figure is equivalent to over 7 million miles driven by a car. That applies to production with an average budget of $70 million, while smaller films emit about 400 Mt.

SPA is a group of film, TV and streaming companies committed to making the entertainment industry more sustainable. The consortium members include Amazon Studios, Disney, Fox Corp., NBCUniversal, Netflix, Sony Pictures, and WarnerMedia.

The group’s report considers various factors contributing to the production’s carbon emissions, including flights, housing, fuel and utilities. The largest contributor for all film sizes is fuel used by vehicles and power generators.

Their data covers industry wide production carbon emissions averages for the SPA member companies over three years. A more recent report included a May 2023 report on Clean Power Alternatives for the Film Industry for Metro Vancouver.

Source: Variety

For a TV series, a 1-hour scripted dramas emitted 77 Mt of CO2 per episode while a half-hour scripted single-camera show released 26 Mt. Unscripted series generated a smaller CO2 footprint per episode, 13 Mt.

The SPA’s recent report in July 2022 covered more than 300 films and TV productions in the U.S. and over 60 productions in Canada.

As per the report, the 6 largest films shot in Vancouver produced over 1,400 Mt of CO2. Over in Atlanta, medium-sized movies emitted a little above 970 Mt of CO2.

Cleaner Energy Options for Lower Emissions

The difference in total carbon emissions between the two locations is the energy used in Georgia, which comes from dirtier sources (e.g. coal and natural gas).

In Vancouver, producers can reduce their pollution by tapping into cleaner energy sources for local films and TV shows. These include the use of zero-emission battery power and local electricity grids.

However, compared to other North American filming locations, fuel use in British Columbia remains proportionally higher. That’s primarily because of the big sizes and number of power generators used in sets as well as at soundstages.

Apart from spewing air pollutants, diesel generators also pose health risks, prompting calls for more sustainable and planet-friendly practices.

Some productions turned to using solar energy to power generators and banning single-use plastics on sets. Other film and TV studios are adopting other ways to reduce their emissions and the entire industry’s carbon footprint.

A Call for a More Sustainable Filming

In the B.C. film industry, major studios and streamers are encouraged to ramp up transition to cleaner energy sources. Similar trends are seen in Ontario where Hollywood post-strikes called for sustainable film productions as default on sets and soundstages.

Hollywood and other producers are also pushing for a more sustainable entertainment industry.

For instance, the streaming giant, Netflix, pledged to reduce carbon emissions by 45% below 2019 levels by 2030. The company’s approach to net zero involves three R’s: Reduce, Retain and Remove.

Disney aims for a net zero emissions for its direct operations by 2030 which involves investing in natural climate solutions.

On the other hand, Sony committed to eliminate its environmental footprint by 2050 while NBCUniversal aims to achieve carbon neutrality by 2035.

As for individual initiatives in greening the industry, producers and streamers use fully recyclable sets using waste materials. This helps avoid traditional materials (timber, plywood, fiberboards, etc.) from going to landfills.

Other large studios partner with green organizations such as Earth Angel and The Green Production Guide. These organizations helped studios learn and adopt sustainable filming practices. Example of these sustainability efforts from various movie productions include the following:

Image borrowed from Georgia Calawerts at https://amt-lab.org/

By transitioning away from diesel generators and embracing cleaner energy options, the entertainment industry is demonstrating a commitment to reducing its carbon footprint and promoting sustainable filming practices. With a concerted effort from major studios, streamers, and industry organizations, the move towards sustainability in film production sets a precedent for the industry as a whole.

The post Greening the Entertainment Industry with Cleaner Energy Solutions appeared first on Carbon Credits.