ClimeCo International's core business is the development of renewable energy projects in Latin America. Carbon offsets can be a significant part of the revenues in many Biogas projects.
Carbon Offsets: Background
Palm oil mills emit significant amounts of greenhouse gases (GHGs) that cause global warming & climate change. Especially the treatment of POME in open lagoons creates large amounts of methane (CH4). Read more
CCI's BioGas projects avoid most of these CH4 emissions by converting them into renewable energy. These avoided GHGs - measured in tons of carbon dioxide equivalent (tCO2e) - can be monitored & registered as so called 'carbon offsets' and sold to 3rd parties. The buyers can use carbon offsets to either reduce their own GHG reduction obligations or to voluntarily offset their own GHG emissions.
CCI's BioGas Projects: 25,000 carbon offsets per year
A typical mid-sized palm oil mill in Colombia with an hourly processing capacity of 20 tons of fresh fruit (20 TFF/h) and an annual production of 100,000 TFF creates around 25,000 tons of GHG emissions from its POME treatment in open lagoons. With the conversion of POME treatment to CCI's A+ BioGas plants the mill can eliminate these GHGs and register the avoided 25,000 tCO2e as carbon offsets.
Carbon Offset Value: appr. USD 5 per tCO2e
The price and value of carbon offsets depends on the carbon price the potential buyer would have to pay for their own carbon emissions. In Colombia, the national carbon tax is currently USD 5.2 per tCO2e.
The price of the best known voluntary carbon offset - the Gold Standard - is currently also around USD 5/tCO2e.
Carbon Offset Revenue: Critical part of the BioGas project income
For a typical palm oil mill (20TFF/h and 100,000 TFF/yr) carbon offsets can contribute around USD 125,000 per year to the bottom line of a BioGas project. Therefore, carbon offsets play an important role in the financial viability of BioGas projects.
CCI Carbon Offsets: 15 years experience | 3 MM carbon offsets produced
CCI's team has over 15 years of experience in the production, registration and marketing of carbon offsets. Since 2005 CCI's team has produced, registered and sold more than 3,000,000 carbon offsets in Latin America.
For more information and to start a conversation about your carbon offset potential please contact us here.