Weisberg 2011 biocycle
-
Upload
peter-weisberg -
Category
Technology
-
view
725 -
download
2
description
Transcript of Weisberg 2011 biocycle
![Page 1: Weisberg 2011 biocycle](https://reader035.fdocuments.net/reader035/viewer/2022070302/548c8b4cb479593d1f8b45ea/html5/thumbnails/1.jpg)
Value of Carbon Offsets from Composting and Digester
Projects
Peter WeisbergBiocycle Global 2011
San Diego, CAApril 6, 2011
![Page 2: Weisberg 2011 biocycle](https://reader035.fdocuments.net/reader035/viewer/2022070302/548c8b4cb479593d1f8b45ea/html5/thumbnails/2.jpg)
![Page 3: Weisberg 2011 biocycle](https://reader035.fdocuments.net/reader035/viewer/2022070302/548c8b4cb479593d1f8b45ea/html5/thumbnails/3.jpg)
The Climate Trust
• Provided $11M in financing to carbon projects
• Reduced 2.5 million mtCO2-e
• Offset programs– First U.S. state-based
compliance program – Oregon– First voluntary state program -
Colorado– First by natural gas-only firm –
NW Natural3
![Page 4: Weisberg 2011 biocycle](https://reader035.fdocuments.net/reader035/viewer/2022070302/548c8b4cb479593d1f8b45ea/html5/thumbnails/4.jpg)
Priority project sectors
1. Dairy Digester 2. Organic Waste Digestion3. Composting4. Forestry
![Page 5: Weisberg 2011 biocycle](https://reader035.fdocuments.net/reader035/viewer/2022070302/548c8b4cb479593d1f8b45ea/html5/thumbnails/5.jpg)
Carbon Offset “Profit”=(Offsets)(Price) -
(Transaction Costs)
![Page 6: Weisberg 2011 biocycle](https://reader035.fdocuments.net/reader035/viewer/2022070302/548c8b4cb479593d1f8b45ea/html5/thumbnails/6.jpg)
Dairy offset revenue- 2,500 cows; digester reduces 8,750 mt CO2e every year
$= (Offsets)(Price) – (Transaction Costs)
Price = $6
Year 1 Carbon Sales Profit: $10,000
Year 2-10 Carbon Sales Profit: $40,000
NPV (10 years, 7%) = $250,000
![Page 7: Weisberg 2011 biocycle](https://reader035.fdocuments.net/reader035/viewer/2022070302/548c8b4cb479593d1f8b45ea/html5/thumbnails/7.jpg)
Transaction Costs
• Project Preparation: $20,000 - $50,000 upfront
• Verification: $8,000 - $12,000 annually• Monitoring equipment: $0 - $15,000
upfront• Registry fees: $0.23/credit issued
![Page 8: Weisberg 2011 biocycle](https://reader035.fdocuments.net/reader035/viewer/2022070302/548c8b4cb479593d1f8b45ea/html5/thumbnails/8.jpg)
Importance of Scale
• Dairy projects need 1,000+ cows• Organic waste digestion or composting
projects need 15,000+ tons of eligible feedstock per year. Eligible:
• Post-consumer food waste• “Agro-industrial” waste water
![Page 9: Weisberg 2011 biocycle](https://reader035.fdocuments.net/reader035/viewer/2022070302/548c8b4cb479593d1f8b45ea/html5/thumbnails/9.jpg)
California’s Carbon Market
• Cap-and-trade system begins in 2012• Offsets = 8% of compliance
– 1st Period (’12-14) – 39 million offsets– 2nd Period (‘15-17) – 92 million offsets
• Air Resource Board approved offsets– CAR Livestock (Dairy Digesters)– CAR Forestry– CAR Ozone Depleting Substances
![Page 10: Weisberg 2011 biocycle](https://reader035.fdocuments.net/reader035/viewer/2022070302/548c8b4cb479593d1f8b45ea/html5/thumbnails/10.jpg)
California Carbon Market: Supply Currently ~2.2 million eligible offsets
![Page 11: Weisberg 2011 biocycle](https://reader035.fdocuments.net/reader035/viewer/2022070302/548c8b4cb479593d1f8b45ea/html5/thumbnails/11.jpg)
Carbon Price• Air Resource Board Approved:
– $7 - $9– Small transactions, ~25,000 offsets
• Un-Approved:– $3-6
• Future– Legal challenges – More protocols
![Page 12: Weisberg 2011 biocycle](https://reader035.fdocuments.net/reader035/viewer/2022070302/548c8b4cb479593d1f8b45ea/html5/thumbnails/12.jpg)
Value of Carbon Credits to Dairy Digester
• 2,500 cow digester• ~3.5 mt CO2e per cow per year
• ~8,750 mt CO2e reduced
Carbon price($/mt CO2e)
$4.00 $8.50 $15.00
Net Present Value(10 years, 7%)
$165,000 $440,000 $840,000
% of Capital Cost(~ $2.1 million)
8% 20% 40%
![Page 13: Weisberg 2011 biocycle](https://reader035.fdocuments.net/reader035/viewer/2022070302/548c8b4cb479593d1f8b45ea/html5/thumbnails/13.jpg)
Value of Carbon Credits to Organic Waste Digester
• 40,000 tons of MSW food waste• ~0.5 mt CO2e per ton of food waste per year
• ~20,000 mt CO2e reduced per year
Carbon price($/mt CO2e)
$4.00 $8.50 $15
Net Present Value(10 years, 7%)
$410,000 $1 million $2 million