Uncategorized – Page 75 – The Global Carbon Fund

NBA Legend Rick Fox Builds World’s First Carbon Negative Home

October 16, 2023/in Uncategorized /by

Partanna Global has built the world’s first climate-resilient, carbon-negative ‘Home for the World’ in the Bahamas, marking a new breakthrough in sustainable housing.

Partanna is a sustainable building materials startup founded by NBA Lakers legend and actor Rick Fox in 2021, together with Sam Marshall.

The groundbreaking 1,250 square-foot house in the Bahamas actively eliminates and prevents 182.6 metric tons of CO2. That amount is equivalent to the annual carbon intake of 5,200 mature trees, contrasting sharply with the 70.2 tons of CO2 emitted by a typical concrete-built home during production.

Partanna’s ‘Home for the World’

The built environment is responsible for around 40% of the world’s annual greenhouse gas emissions significantly contributing to climate change. And concrete happens to be the major choice of today’s modern homes.

The main culprit is cement, a main ingredient in concrete mix that’s responsible for over 8% of CO2 emissions globally. Thus, various initiatives have been introduced to make alternative sustainable building materials to traditional concrete.

Apart from Partanna, other startups are also working to suck in carbon from the air and lock it in concrete. For example, a California-based company C-Crete is making a cement-free, carbon-negative concrete.

But what makes Partanna’s technology unique is the fact that they’re using slag and brine instead of cement. They are waste materials the company takes from energy-intensive steel and desalination facilities.

Moreover, the company said that their concrete mix cures at ambient temperatures, further lowering energy use. That makes Partanna’s building material production capable of reducing both energy costs and carbon emissions.

Plus, the material’s curing process called ‘carbonation’ further removes carbon from the air just like a tree does. When standing in a house or any building, the material continues to draw in carbon from the air.

The company said that a 1,250 sq. ft. home can remove 130 Mt of CO2 and avoid another 54 Mt. Therefore, the total avoided and removed CO2 per house stands at around 184 Mt.

Partanna’s standard concrete masonry unit, CMU, block is 25% stronger than traditional CMU.

Most remarkably, their binder ingredient makes the concrete even stronger when exposed to seawater – exactly what houses in the low-lying islands in the Bahamas need to weather the storms and sea level rise.

The carbon negative ‘Home for the World’ in Nassau is designed and built to do just that.

Changing the Way the World Builds

Partanna’s prototype home is the first of 1,000 planned homes announced in partnership with the Bahamian government last year. Their deal came after hurricane Dorian devastated Fox’s home country in 2020, severely impacting 29,500 people.

After their agreement’s announcement, Richard Branson’s Caribbean Climate-Smart Accelerator (CCSA) also partnered with Partanna in February this year to develop the world’s first carbon negative housing community.

CCSA’s goal is to build resilient nations, cities, and industries across the Caribbean, and create the world’s first climate-smart zone.

The billionaire’s non-profit finds Partanna’s innovation a sustainable housing solution in a country at the frontline of the climate crisis. The CCSA will help the Bahamian startup realize its mission by identifying public and private collaborations in the region.

Remarking on their first build, Fox noted that the need to disentangle development from pollution has never been more urgent. He also said that:

“The world is forecast to build an area equivalent to the size of The Bahamas every three years… Our ‘Home for the World’ is the answer to this challenge, and The Bahamas is the symbolic birthplace for our movement to change the way the world builds – for good.”

Resilience in the Face of Climate Change

Prime Minister and Minister of Finance of The Bahamas, Hon. Philip Davis praised Partanna’s innovative approach to the climate crisis. He highlighted the essential role of climate-resilient solutions for the disaster-stricken nation and in fighting global warming.

Nobody lives in their prototype carbon-negative home yet, but the next houses will be livable for first-time homeowners. Their initiative aims to build 29 more homes by 2024. Details on this development will be early next year.

Bringing a sustainable housing solution is a part of Partanna Global’s mission. But apart from that, the company is also complying with the global standards for construction material by securing prestigious certifications.

Not to mention that its carbon-negative concrete boats excellent strength, exceeding its traditional peers. If their pilot construction in the Bahamas turns out a success, they’re planning to expand production into the United States.

Their goal is to make their climate-friendly concrete a mainstream material that can address both the global housing demand and carbon emission reductions goals. They’re continuing the hunt for strategic partners to revolutionize large-scale developments worldwide.

The world’s largest carbon crediting program, Verra, approved Partanna and its carbon removal to be listed on its VCS registry.

Partanna’s carbon reduction or avoidance are the first verified carbon-absorbing building materials to generate carbon credits. Each credit represents a metric ton of avoided or removed CO2.

Given the escalating impact of extreme weather events and rising sea levels, Partanna’s unique construction material, fortified by brine, offers a sturdy and sustainable alternative, particularly beneficial for regions, like the Caribbean, vulnerable to climate-related hazards.

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First Hydrogen to Host Inaugural Track Event for Its Fuel Cell EVs

October 16, 2023/in Uncategorized /by

First Hydrogen Corp. (TSXV: FHYD) (OTC: FHYDF) (FSE: FIT) announced that it will be hosting its first ever track day for major UK fleet managers to demonstrate its unique hydrogen fuel cell vehicles (FCEV).

The event, which will take place at the end of October, will also be a test drive for the First Hydrogen’s FCEVs on the track at HORIBA MIRA, UK. All attendees will get hands-on access to the first-of-their-kind 3.5-tonne FCEV and the chance to drive them. They will also gain knowledge on how practical it would be to introduce the FCEV into their own fleets.

This invitation-only event targets major UK LCV fleet operators including members of the UK Aggregated Hydrogen Freight Consortium (AHFC) that promotes ramping up commercialization of FCEVs and hydrogen refueling infrastructure.

First Hydrogen’s FCEV has already been trialed by SSE and Rivus, with over 15 others on the waiting list to test the vehicle in their fleets. The inaugural track allows the company to showcase its FCEV’s unmatched capabilities to several organizations in a day.

That includes an impressive range of over 630km on a single refueling, ease of driving, and carrying huge payloads without trading off performance.

First Hydrogen Automotive CEO, Steve Gill, remarked that their goal for the event is for “attending fleet managers and operational specialists to leave with a clearer view on the capabilities of First Hydrogen’s FCEVs which will inform decision making on the purchase of zero emissions fleets”.

If the event turns out a success, First Hydrogen aims to take their FCEV into Europe and North America in similar track events.

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Nature’s ‘Black Gold’ Offers High Global Carbon Removal Potential

October 16, 2023/in Uncategorized /by

Groundbreaking research highlights the potential of biochar as a solution for scaling carbon removal, benefiting both the environment and people. Biochar has the capacity to remove a significant portion of global emissions, providing a win-win solution for addressing climate change.

Developed thousands of years ago, biochar is a material made by heating organic matter like crop residues that would otherwise emit greenhouse gasses when decaying. By turning these organic materials into biochar, carbon gets trapped for hundreds to thousands of years.

Source: Lefebvre et al. Biochar (2023) 5:65

Biochar does not only mitigate climate change but also enhances soil health, water retention, and nutrient levels, helping communities adapt to climate change’s effects.

Biochar’s Topnotch Removal Ability

Hailed as “nature’s black gold”, biochar has been building momentum yet growth is slow due to lacking attention and investment. But a new research reiterates the importance of this ancient farming practice in offering an accelerated pathway toward global decarbonization.

According to the peer-reviewed study, biochar has the potential to remove up to 6% of global emissions each year. This equates to about 3 billion tonnes of CO2, equivalent to the emissions of 803 coal-fired power plants a year.

Moreover, biochar offers a minimum removal potential of 10% in 25+ countries, primarily in Africa, South America, and Eastern Europe. Notably, it can cut down CO2 emissions by >30% in Eswatini and >20% in Malawi, Argentina, and Ghana. This potential is relative to the country’s total emissions as represented in the chart.

The world’s major emitters, including China, the United States, Brazil, and India, have the largest potential to lead the way in sustainable emissions reductions using biochar. Other countries with high biochar removal potential are shown below.

Quantifying Biochar’s Role in Climate Action

The study, published in the peer-reviewed journal Biochar and commissioned by the International Biochar Initiative (IBI), quantifies biochar’s carbon removal potential across 155 countries.

The results highlight biochar as an affordable, scalable, and readily available solution that also provides environmental and social co-benefits. Improved soil health and increased crop yields are among the various benefits of using biochar as a soil amendment.

Remarking on this breakthrough discovery, Dr. Thomas Trabold, co-author and research professor at the Rochester Institute of Technology said that:

“This is the first research to quantify the significant role biochar can play in worldwide climate action and carbon removal strategies… To scale biochar to its full potential, we now have a starting point of what is possible at the country level.”

The study findings also showed biochar’s relevance to small-emitting countries, which is particularly significant. It offers a sustainable approach to their climate change mitigation efforts.

While these countries are the least responsible for climate change, they’re disproportionately experiencing the impacts, from extreme drought to floods. Through biochar, they can maximize carbon removal while increasing national and local revenues, promoting sustainable agriculture, and providing employment opportunities.

For farmers encountering climate change issues, biochar would be particularly a game-changing solution.

Despite being referred to as “nature’s black gold,” biochar has faced historical challenges in terms of attention and investment. Addressing these bottlenecks requires collaboration at all levels to accelerate investment and amplify demand for biochar on a global scale.

A Call to Action

Recent developments in the industry are showing a promising outlook for this technology.

For instance, a leading carbon rating agency, BeZero Carbon, has given its first Biochar project the rare “A” rating. That means the project has a high likelihood of avoiding or removing 1 tonne of CO2.

This development signifies the maturation of carbon removal and particularly biochar, which accounts for >90% of all removal deliveries.

Moreover, a Canadian biochar producer has raised $38 million to expand production of this carbon removal technology. The company plans to produce biochar from compost or residual matters from municipalities.

With the upcoming international climate change conference, COP28, this scientific study serves as a compelling call to action for world leaders to consider biochar in their decarbonization strategies.

Biochar’s ability to sequester carbon while providing other benefits makes it a critical component of the climate change toolbox. It could be the time to accelerate its use to stay on a 1.5°C pathway.

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How Much Carbon Do Video Games Emit? Industry’s CO2 Footprint Revealed

October 13, 2023/in Uncategorized /by

Contrary to the instant fun it provides, the gaming industry has been slow to acknowledge that developing and playing video games uses a lot of energy and generates emissions responsible for climate change. A researcher revealed the gaming industry’s carbon footprint, standing at over 81 million tonnes of emissions in 2022.

Dr. Benjamin Abraham, a digital games researcher and founder of AfterClimate, closely evaluates how the gaming industry tackles climate change. He publishes an annual progress report on the industry’s net zero ambitions in his ‘Net Zero Snapshot 2023’.

The Gaming Industry’s Carbon Footprint

Abraham estimates that the $180+ billion video game industry consumes energy and produces carbon emissions comparable to the global film industry.

His conservative estimates revealed that the gaming industry’s carbon footprint stands at 81 million tonnes of CO2, but it doesn’t specifically break down how much is emitted by video gaming alone. The estimation shows how much video games and the big tech companies emitted last year, which is even larger than what many small countries emit.

The data included 35+ global games and tech companies, with around $1.2 trillion in revenues in 2022. Tencent, Microsoft, Apple, Sony, and Google account for the majority of the total emissions.

Taking those 5 big tech companies out of the equation, the other companies reported >7 million tonnes in 2022. Including the absolute minimum of the total emissions of companies that didn’t disclose data, the researcher estimated >14 million tonnes of CO2.

Thus, video game companies alone were responsible for these carbon emissions, about 14 Mt CO2. That amount is about the same as what the country of Estonia emitted in 2021.

The analysis didn’t even account for other sources of emissions, particularly falling under Scope 3 emissions. These include activities outside the video game companies’ or developers’ control, such as manufacturing consoles and computer hardware, powering servers, and flying developers or executives for meetings and conferences.

One of the most notable findings in Abraham’s 2023 report is that the gaming industry’s carbon emissions were up globally. Out of the 34 largest game companies, only 3 were able to reduce their carbon footprint in 2022.

Tencent – 13.73% down
Apple – 11% down
Nintendo – 2.95% down

What Video Game Companies Are Missing Out

The report also highlighted a more secretive issue in the industry – most companies aren’t diligent at disclosing Scope 3 emissions. “Use of sold products” emissions, which fall under Category 11 of the GHG Protocol, is specifically missing. That includes energy from the use of a gaming device, such as Xbox or PlayStation, or a computer or smartphone.

Gamers generate Scope 3 emissions, which account for about 10-90% of the total Scope 3. Let’s take the example of Ubisoft, one of the world’s largest game studios. Of the company’s total annual CO2 emissions, only as much as 10% is from their direct operations. The remaining footprint breaks down to 10-15% for game distribution, 40% for game device production, and 40% for gamers.

Microsoft estimates that the average gamer using a high-performance gaming device emits 72 kilograms of CO2 per year. In the United States, gamers emit 24 million tons of CO2 each year, data according to Project Drawdown. Globally, 3+ billion people, or 40% of the world’s population, are playing video games.

For other companies, Scope 3 is most often not included in disclosures as they’re not mandatory, only optional, for now.

The extent of Scope 3 disclosures. Source: AfterClimate Game Industry Net Zero 2023 Snapshot

The 2023 snapshot suggests that video game companies are still not up to the standards of disclosing their emissions data as shown above. However, there has been a significant shift in the industry’s approach to the climate crisis in the recent years.

What Sustainable Game Leaders Are Doing

Reports show a growing number of video game developers who take into account the climate impact of their games. Indie video game developers, in particular, are taking the matter into their own hands. They advocate for a more sustainable game development that reduces their impact on the planet.

For instance, indie game developers like Hannah Nicklin of Die Gute Fabrik studio, are proactively accounting for their carbon footprint. By doing so, the developer is providing the gaming community some ways to tackle their carbon footprint, which is crucial to bringing the industry to net zero, Dr. Abraham said. He particularly noted that:

“As more and more businesses start to do this, it starts to have this amplification effect on the whole industry where we just set this expectation that, yes, we’re going to pay attention to our emissions.”

Nicklin’s indie gaming studio emitted only about 47 tonnes of CO2 per year per employee. This figure represents only 0.000058% of the total emissions of the largest game companies worldwide.

Each of those big companies have set their own net zero emissions targets, employing different strategies. Some are opting for offsetting or buying clean energy credits to negate their fossil fuel consumption. Microsoft and Apple, in particular, are investing significantly in carbon removals to offset their emissions.

But they’re also proactively innovating how they can reduce their gaming emissions directly.

For example, Microsoft developed the Xbox Developer Sustainability Toolkit that guides developers to clean up the game’s performance and look for areas for energy savings. Decreasing resolution and frames-per-second in pause screens or menus could save up up to 55% of energy use.

Other gaming companies like Nintendo and Sony had also expressed intent to reduce their carbon emissions. But their sustainability and net zero pledges lack specific strategies on how they’re going to address video game related footprint.

Despite the gaming industry’s significant carbon emissions, recent initiatives by independent developers and major companies signal a promising shift towards more sustainable practices. This development underscores the need for greater transparency and concerted action to address the industry’s environmental impact.

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NiSource and Sempra Energy Lead the Way in Hydrogen Blending

October 12, 2023/in Uncategorized /by

In the race toward a sustainable future, hydrogen has emerged as a star player in the global clean energy transition. Among the companies embracing this transformative shift are NiSource Inc. and Sempra Energy, which are taking proactive steps to harness the potential of hydrogen as a key driver of a greener energy landscape.

NiSource just launched a multi-phase hydrogen blending project; it’s a pioneering project in the U.S. to use a blending skid in a controlled environment to combine natural gas and hydrogen at precise levels. The goal is to find out the best blend percentages and their benefits for consumers and the planet.

Taking the same direction, San Diego-based Sempra Energy, will also test electrolytic hydrogen blending into existing natural gas infrastructure. The energy giant is also working on what could be the nation’s largest green hydrogen energy infrastructure system.

NiSource Hydrogen and Natural Gas Blending

NiSource envisions the potential for substantial investments in hydrogen production, transportation, and storage. It comes following the conclusion of its current five-year $15 billion capital plan in 2027.

To make that vision a reality, NiSource is developing its capacity to handle hydrogen safely and efficiently. It also seeks to show to policymakers that low-carbon hydrogen can effectively decarbonize gas utility services.

Several hydrogen projects have been announced in the U.S., encompassing different areas of application.

NiSource pilot project, led by its subsidiary Columbia Gas of Pennsylvania Inc., will test a 20% hydrogen blend in natural gas distribution infrastructure. It facilitates the regulated blending of hydrogen into Safety Town’s natural gas system at varying concentrations.

The results of this project to be tested in Monaca, Pennsylvania will be key to demonstrate that hydrogen blending is feasible. The project is a collaboration between NiSource’s Columbia Gas and EN Engineering.

Together, they’ll create a blending skid that will inject hydrogen into the gas stream at different percentages, from 2% – 20%.

The project will also assess the impact of various blending concentrations on different gas appliances through a model home. The goal is to ensure the proper functioning of equipment and to know if any adjustments on processes are necessary.

NiSource prioritizes safety and regulatory compliance in hydrogen blending. They will share data with the US Pipeline and Hazardous Materials Safety Administration for monitoring hydrogen-gas blends and their impact on pipeline materials.

Moreover, its other subsidiary, Northern Indiana Public Service Co. LLC (NIPSCO), plans to use a blend of gas and hydrogen to repower one of its turbines.

An Alternative to Electrification

In all these innovations, CEO Lloyd Yates emphasizes the importance of policies in incentivizing efforts driving the hydrogen transition.

He specified some federal tax credits and initiatives such as the Appalachian Regional Clean Hydrogen Hub (ARCH2). NiSource backed this application to secure a subsidy from the Energy Department’s funding program on setting up regional hydrogen hubs.

The Indiana-based utility aims to achieve net zero Scope 1 and 2 emissions by 2040. Hydrogen blending can further help the company tackle its elusive Scope 3 emissions, which are linked to customer’s gas use. Burning hydrogen as a fuel emits only water vapor, no greenhouse gasses given that it uses renewable sources.

NiSource said its hydrogen and natural gas blending strategy is part of their “Future of Energy” program. It particularly includes renewable energy and electrification strategies as well as renewable natural gas pathways.

Yates further noted that the project seeks to make hydrogen an alternative to electrification for customers facing financial challenges. It will allow them to reduce their carbon emissions without buying new appliances, thus making it a viable option.

Sempra’s Growing Sustainability & Hydrogen Innovation

Along with NiSource, other utilities like Sempra Energy are also exploring hydrogen projects to meet the nation’s clean energy goals.

With a strong focus on sustainability, Sempra pursues >20 hydrogen R&D projects to enhance grid resilience and promote decarbonization. It works with strategic research partners while providing funding worth $140 million in the last 2 years.

The funds are for research, development, and demonstration projects for cleaner fuels, hydrogen technology and infrastructure.

In particular, Sempra’s subsidiary Southern California Gas Co. (SoCalGas) partners with the University of California, Irvine on a demonstration project. They aim to show how electrolytic hydrogen can be safely mixed into the campus’ existing natural gas pipeline. Testing for this hydrogen-natural gas blending may start next year once approved.

The joint initiative aims to better understand how hydrogen could be delivered at scale through California’s existing natural gas system. It can either be for existing customers tapping at the grid or to produce clean electricity in zero-emissions fuel cells.

The testing project will use an electrolyzer to convert water into hydrogen for blending into the UCI campus gas grid. It will involve powering residential and light commercial equipment such as ovens, boilers, furnaces, and water heaters.

Water Electrolysis Method

Initially, SoCalGas will use 5% hydrogen in the mix, aiming for up to 20%, the same as NiSource’s blending project. The ultimate goal is to also significantly reduce customer’s emissions from gas use.

The Missing Link in the Clean Energy Equation

SoCalGas announced its goal to reach net zero greenhouse gas emissions by 2045. That makes it the first large natural gas utility in the country to do so. Its parent company, Sempra, pledged to achieve net zero emissions 5 years later, by 2050.

The energy firm also proposed the Angeles Link, which could be the country’s largest green hydrogen energy infrastructure system. They refer to it as the missing link in the clean energy equation.

The initiative can potentially deliver cleaner energy to hard-to-electrify sectors such as heavy-duty transportation and industrial processes.

By replacing fossil fuel-powered trucks with hydrogen fuel cell trucks, Sempra Energy aims to eliminate up to 3 million gallons of diesel a day. This would result in displacing about 25,000 tons of carbon emissions each year.

First Hydrogen (TSXV: FHYD), a Vancouver and London-based company, specializes in zero-emission hydrogen fuel cell vehicles (FCEV) and green hydrogen production. Its innovation is a testament that FCEV works, with trial results beating test expectations.

NiSource and Sempra Energy’s initiatives in hydrogen blending exemplify their commitment to a sustainable energy future, reducing emissions while ensuring affordable and accessible solutions for consumers. If their efforts turn out successfully, they can show the significance of hydrogen in the clean energy transition.

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

Carboncredits.com receives compensation for this publication and has a business relationship with any company whose stock(s) is/are mentioned in this article

Please read our Full RISKS and DISCLOSURE here.

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California Sets Precedent with New Corporate Climate Disclosure Laws

October 11, 2023/in Uncategorized /by

California enacts the nation’s first-of-its-kind climate disclosure law that requires companies doing business in the state to report on their carbon emissions and climate-related financial risks.

The new corporate climate legislation – SB 253 and SB 261 – covers companies with annual revenues surpassing $1 billion.

This comes as the U.S. Securities and Exchange Commission finalizes its rules that would mandate large companies to disclose their climate-related emissions. But the California laws require climate disclosures beyond what the SEC proposes.

California’s Climate Accountability Package

California Governor Gavin Newsom signed into law two different legislation collectively called the Climate Accountability Package:

SB 253 – Climate Corporate Data Accountability Act
SB 261 – Climate-Related Financial Risk Act

Both private and public companies conducting business in the state are covered by the new climate disclosure laws. These include big oil firms like Chevron, tech giants like Apple, Amazon, Disney, Amazon, and 5,300 other corporations.

The new laws are broader than the SEC proposed rules, requiring all registrants, regardless of business size. SB 253 mandates companies to disclose Scope 1 and 2 emissions starting in 2026 and Scope 3 in 2027. They also must also disclose biennial climate-related financial risk and submit it to the California Air Resources Board (CARB) beginning in 2026 under the SB 261.

Governor Newsom said this would encourage them to do business avoiding those risks. This is in accordance with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD).

The CARB has to establish a new system for reporting carbon emissions by January 1, 2025. The Board is also managing and overseeing California’s cap-and-trade (carbon credit) program. It sets the declining limit on major sources of greenhouse gas emissions throughout the state, central to meeting its climate goals.

Both laws seek to prevent issues on greenwashing – companies falsely marketing their GHG emission reduction efforts to misled the public. For one of the bills’ proponents, avoiding greenwashing would help investors know better the vulnerabilities of various companies they want to support.

With the enactment of SB 253 and SB 261, California now joins others that introduced climate disclosures, particularly the EU. The EU even requires businesses to report on other things such as their climate transition plan and other sustainability matters.

Recently, the EU adopted the Corporate Sustainability Reporting Directive (CSRD) which addresses non-financial reporting requirements. It aims to ensure that companies report relevant information on their environmental impact as well as the risks related to environmental, social, and governance (ESG) issues.

The Caveats

Supporters said that both laws will make new data public beyond the state’s borders, which would be a game-changer. For an advocate, Hollin Kretzmann, speaking for the Center for Biological Diversity,

“The disclosure requirements would really pull back the curtain on the biggest climate destroyers in the oil industry and make it harder to greenwash.”

However, Governor Newsom said that the new laws came with caveats, noting concerns on reporting deadlines and associated costs.

The climate disclosure laws also faced significant opposition from fossil fuel interests, notably Chevron, Marathon Petroleum, and Western States Petroleum. The California Independent Petroleum Association and the American Chemistry Council also lobbied against the bills.

According to disclosure records, Chevron spent over $1 million in fighting the bill while it cost Western States Petroleum over $2 million.

The opposing interests requested to scrap Scope 3 requirements or weaken the measures. But the Governor hasn’t disclosed intent to do so, but noted to do “some cleanup on some little language”. For subject experts, tweaking the language used to protect big oil business interests can potentially weaken the legislation.

Opponents further claim that the California climate disclosure rules will cause inaccurate reporting and financial burden.

However, there are also strong supporters of the laws from other businesses, alongside environmental advocates. They notably include tech giants Microsoft, Google, Salesforce, and Adobe, as well as Ikea, Patagonia, and Amalgamated Bank.

A Piece of the Net Zero Puzzle

Failing to comply with the new laws will cost covered entities hefty penalties. Under SB 253, administrative fines may not exceed $500,000 in a reporting year. For SB 261 reporting requirements, imposed penalties should not go beyond $50,000.

Once fully enforced, it sets the national standard for climate disclosures and can potentially tackle a company’s entire value chain.

The legislation may face legal challenges when applied and administrative rulemaking process may be time-consuming and controversial. However, pressure strengthens to increase transparency in reporting carbon emissions both at the state and federal levels.

Climate-related disclosures are now a hot topic, not just in the U.S. but other parts of the world as efforts to curb planet-warming emissions intensifies. They are an important piece of the puzzle as the world pushes forward to net zero emissions. California’s Climate Accountability Package ushers in a new era of climate transparency for corporations.

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EasyJet & Airbus Strike a Deal: Zero Carbon Flying with Carbon Removal Credits

October 11, 2023/in Uncategorized /by

EasyJet is the first airline in the world that signed a contract with aerospace giant Airbus for its carbon removal initiative that will offset flight emissions with its Direct Air Capture (DAC) technology.

With Airbus’ Carbon Capture Offer, via its Direct Air Carbon Capture and Storage (DACCS), EasyJet can use the carbon removal credits to advance its climate goals, and aviation’s decarbonization targets.

The deal makes the British low-fare airline the first partner of the Airbus carbon removal efforts.

Building a Sustainable Aviation Ecosystem

The aviation industry is responsible for emitting about 3% of global energy-related carbon emissions, per data from last year. And as the world was recovering from the pandemic, aviation’s emissions started to climb again to >1 billion tonnes.

The hard-to-abate industry aimed to reach net zero emissions by 2050, primarily through sustainable aviation fuel (SAF) and carbon capture. DAC is one of the widely available and scalable carbon capture technologies today.

DAC traps and removes carbon directly from the air, often through high powered giant fans. The captured CO2 is then stored safely in underground reservoirs. Or better yet, the gas can be used to make sustainable aviation fuel, further helping the industry cut its footprint.

While carbon emitted during aircraft operations can’t be directly rid of at the source, DAC can extract the same amount from the atmosphere.

EasyJet’s Group Markets Director Thomas Haagensen said that the airline considers carbon removal essential in helping them achieve their net zero goal. That entails investing into relevant projects like DAC to “accelerate the development of zero carbon emission aircraft technology.”

EasyJet Net Zero Roadmap

The Swiss airline plans to hit net zero emissions flying by 2050 as outlined in its roadmap published in 2022. The roadmap also says that EasyJet seeks to reduce carbon footprint per passenger by 78% by 2050.

The reduction will be through switching to fuel-efficient aircraft and greener fuels like SAF. The remaining 22% will be through carbon capture technologies.

EasyJet was one of the first major airlines to offset all of its emissions, amounting to 8.7 million tonnes. It’s also one of the first in the aviation to negotiate with Airbus to possibly pre-purchase durable carbon removal credits.

An executive from Airbus commented on their partnership noting that their deal shows EasyJet’s willingness to extend its environmental commitment. He further added that:

“Initiatives such as this one underline Airbus’ commitment to decarbonization solutions for our industry and to, bringing together airlines and industry players from all sectors in order to build a sustainable aviation ecosystem.”

Airbus’ Commitment in Decarbonizing Aerospace

Airbus’ carbon removal credits at 400,000 metric tons will be issued by its partner DAC company 1PointFive. The carbon credits will be effective between 2026 – 2029.

1PointFive is a subsidiary of oil major Occidental (Oxy) focusing on carbon capture. The company is currently developing what it says will be the biggest DAC plant in the world – Stratos. The facility is in the Texas Permian Basin aiming to capture 500,000 tonnes of CO2 per year.

Airbus has been at the forefront of the aerospace sector’s decarbonization efforts. It has been consistently refining its products and services to better tackle climate change. The company is an active proponent of various global decarbonization initiatives to help curb the industry’s carbon footprint.

For instance, it’s spearheading innovations in aircraft and aerodynamic design and architecture to reduce the industry’s environmental footprint. Currently, all their units can fly with a SAF blend of 50% maximum, aiming to make it 100% by 2030.

While EasyJet is Airbus’ first partner, there are other operators that inked letters of intent for 1PointFive’s carbon removal initiative. These include the Virgin Atlantic, Air Canada, Air France-KLM, Lufthansa Group, IAG, and LATAM Airlines Group.

Airbus’ carbon removal credits initiative for the airlines is part of its broader decarbonization strategies.

EasyJet’s partnership with Airbus marks a huge stride toward achieving sustainable aviation and reducing carbon emissions in the industry. Through carbon removal credits with DAC technology, they aim to offset flight emissions and accelerate the development of zero-carbon aircraft technology, contributing to aviation’s net zero aspiration.

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Carbon Offsets Ignite Dispute Over Xcel’s Colorado Emissions Reduction Plan

October 11, 2023/in Uncategorized /by

Natural gas becomes a kitchen-table issue in the U.S., literally. In Colorado, the city of Boulder, together with environmental groups oppose the state’s largest utility, Xcel Energy’s plan to cut greenhouse gas emissions associated with its natural gas distribution.

The Colorado dispute centers around whether utilities can use certified gas and carbon offsets to meet state-mandated climate targets.

Certified gas, also called responsibly sourced or differentiated gas, has been tested and verified at the wellhead to meet specific emission intensity requirements and other standards. Carbon offsets refer to emissions reductions achieved by investments in projects that remove or sequester GHG emissions such as reforestation.

The “Clean Heat Plan” Fight

Natural gas is the largest source of electric power generation in the U.S. Its substitution for coal has helped lower the sector emissions to mid-1980 levels. But since 2005, emissions from natural gas combustion have increased about 43% in all sectors.

Source: Energy Information Agency

Just two months after an Xcel Energy subsidiary, Public Service Co. of Colorado, submitted a clean heat plan, a dispute has arisen over the use of certified gas and carbon offsets to achieve emissions reduction.

Colorado’s largest utility submitted a proposal in August to slash the carbon footprint of its natural gas system. They’re currently delivering methane-based fuel to 1.5 million customers across the state.

The plan sets out strategies to meet the first-in-the-nation law mandating gas utilities to reduce planet-warming emissions 22% below 2015 levels by 2030.

A coalition of climate and renewable energy organizations filed a motion in September to block the plan. They question the inclusion of those two elements in clean heat portfolios, leading to a regulatory showdown.

Xcel Energy’s preferred clean heat plan covers the period from 2024 to 2028. The utility said that certified gas and carbon offsets will enable them to reach their emissions reduction goals more cost-effectively. But this claim has faced strong opposition.

Critics argue that Xcel’s plan shouldn’t be considered because those resources don’t align with the law’s definition of emissions reduction. These strategies focus on emissions reduction upstream and in unrelated sectors, which they say goes against the law’s intent.

The law in question is Senate Bill 21-264, which does allow some indirect emissions reduction measures. But they are primarily limited to recovered methane strategies such as renewable natural gas, excluding certified gas and carbon offsets.

Opponents, thus, seek a legal ruling to exclude them from consideration and to require Xcel Energy to change its plan. The Colorado Public Utilities Commission (PUC) would decide on the final ruling.

Aggravating the coalition’s concerns, the two tools would be responsible for around 43% of Xcel Energy’s projected emissions reductions target.

What It Means for Other Gas Utilities

The dispute’s outcome could significantly impact other gas utilities, including Atmos Energy Corp., Black Hills Corp., and Summit Utilities Inc.. They’re preparing their own clean heat plans to submit.

SB 21-264 mandates utilities to use strategies such as demand-side management, building electrification, and low-carbon fuel blending.

Xcel Energy contends that the opposition misinterprets the law, which they believe allows for the use of “available tools” beyond those explicitly named in the legislation. The utility argues that excluding certified gas and carbon offsets limits the options available to PUC in achieving the state’s climate goals.

The other tools specified in their 5-year clean heat plan include electrification, leak prevention, energy efficiency programs, recovered methane and hydrogen blending.

The Colorado Energy Office and the Colorado Department of Health and Environment’s Air Pollution Control Division agree that Xcel’s preferred portfolio complies with SB 21-264. But they suggest that certified gas and carbon offsets don’t meet the definition of clean heat resources.

Despite criticism, Xcel has garnered support from energy companies like Chevron, Occidental Petroleum, and Williams Cos. Emissions measurement company Project Canary PBC and other stakeholders also agree with Xcel. They argue against rushing to judgment and emphasize the importance of thorough investigation.

From Colorado to New Jersey

Xcel Energy estimates its preferred plan to clean up its natural gas system would cost about $163 million each year. On the other hand, an all-electrification option would cost much more, standing at $472 million annual price tag.

Prior to this Colorado clean heat plan conflict, utilities in New Jersey also have faced a similar situation. The state’s natural gas distributors noted that policymakers are too focused on building electrification amid the discussion on aligning gas utility regulation with state climate goals.

The companies, along with multi-utility Public Service Enterprise Group Inc., suggested that a clean heat standard like Colorado’s should be an option for a range of decarbonization solutions for the New Jersey Board of Public Utilities to consider. PSEG noted that utilities should have various options to invest in different solutions and show their emissions reduction potential.

In conclusion, Xcel Energy’s clean heat plan to reduce emissions through certified natural gas and carbon offsets remains a contentious issue. What also remains to be seen is how such strategies can significantly contribute to emissions reduction efforts in the industry.

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ADNOC Spends $17B for World’s First Net Zero Natural Gas Project

October 11, 2023/in Uncategorized /by

ADNOC, the biggest oil producer in the United Arab Emirates, awarded contracts worth around $17 billion for an offshore natural gas project operating with net zero emissions, the first in the world to do so.

The project consists of two engineering, procurement, and construction (EPC) contracts and is part of Abu Dhabi’s Ghasha Concession.

One EPC contract of $8.2 billion went to a joint venture between Italian oilfield services firm Saipem and Abu Dhabi’s National Petroleum Construction Company (NPCC). The other EPC contract worth $8.74 billion was awarded to Milan-based engineering company Maire Tecnimont for onshore projects.

Fast-Tracking ADNOC’s Net Zero Goal

ADNOC’s Hail and Ghasha project will capture 1.5 million tonnes per year (mtpa) of carbon dioxide. This plan brings Adnoc’s committed investment for carbon capture capacity to almost 4 million tonnes a year.

The captured CO2 will be transported onshore via ship or pipelines and securely stored underground in geological formations.

Carbon capture, utilization and storage (CCUS, also called CCS) involves the trapping of CO2 emissions from industrial activities and fossil fuel combustion.

The project will also use clean energy from nuclear and renewable sources while producing low-carbon that can replace fuel gas, further reducing emissions.

The oil giant plans to double its carbon capture capacity to 10 million tonnes of CO2 per year by 2030.

All these efforts are part of the company’s move to bring forward its net zero emissions target to 2045. That’s 5 years earlier than its previous goal of 2050, making ADNOC the first among its peers to fast-forward its net zero target.

In 2022, ADNOC established a new business division, Low Carbon Solutions & International Growth, in line with its net zero goal. It will focus on CCUS, renewables, and clean hydrogen while helping the company expand internationally in gas and liquefied natural gas.

At the beginning of 2023, ADNOC announced a $15-billion investment in low-carbon projects to tackle emissions and achieve decarbonization targets. Part of this $15B investment is the first-of-its-kind CCUS or CCS project.

The new project also aims to produce over 1.5 billion standard cubic feet per day of gas by 2030. More than 60% of the project’s investment value will flow back into the UAE’s economy.

Unlocking Natural Gas with Carbon Capture

Speaking for the company’s giant move, its executive director Abdulmunim Al Kindy remarked that:

“Natural gas is an important transition fuel and ADNOC will continue to responsibly unlock its gas resources to enable gas self-sufficiency for the UAE, grow our export capacity and support global energy security.”

The director further said that it’s a major milestone for the oil giant and its partners. They claim it would be the first gas project in the world with net zero emissions.

Moreover, the proponents believe that it will contribute to the country’s gas self-sufficiency and the company’s growth and export plans. They’re seeking to increase oil production capacity to 5 million barrels a day from 4 million today.

ADNOC will decarbonize a portion of its onshore operations through renewables and nuclear power.

Part of that plan is installing a 10 tonne per day carbon capture unit developed by Carbon Clean. As a progress, ADNOC partnered with Occidental to conduct a preliminary study to create the first megaton-scale Direct Air Capture (DAC) facility outside the United States.

The joint study will evaluate the proposed 1 mtpa DAC plant. This facility will be connected to ADNOC’s CO2 infrastructure for injection and permanent storage into saline reservoirs.

The oil producer also inked a separate $615 million deal with oil services company Petrofac. They agreed to develop one of the biggest carbon capture projects in the Mena region, particularly at the Habshan plant.

The major energy player added that their CCS plans will help scale-up hydrogen and lower-carbon ammonia production in Abu Dhabi.

All these new targets come as the nation prepares to host the upcoming COP28 climate conference in November. ADNOC’s group CEO Sultan Ahmed Al Jaber will be the summit’s president.

ADNOC’s ambitious move to develop the world’s first offshore net zero emissions natural gas project not only reduces its carbon footprint but also contributes to the UAE’s energy security and export capacity. This initiative aligns with the company’s commitment to reaching net zero emissions by 2045, setting a precedent in the industry as it transitions to cleaner energy production.

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