renewable energy/carbon credits u.s. energy services, inc & wenck associates, inc
TRANSCRIPT
Renewable Energy/Carbon Credits
U.S. Energy Services, Inc
&
Wenck Associates, Inc
Agenda
• Introductions
• Fundamentals
• Scope
• Results
• Recommendations
Accounting vs MonetizationAccounting• Quantify and report GHGs from all sources in an organization
(facility or enterprise)• Example: emissions reported to The Climate Registry
Monetization• Focus on ‘project specific’ GHG reductions or generation of
renewable energy (e.g. methane)• Reductions or creation of renewable energy must be certified and
credits can be sold (monetization)
How do we create GHG Value?
• 6 Major Greenhouse Gases– Carbon Dioxide– Methane– Nitrous Oxide– Hydroflourocarbons– Perfluourocarbons– Sulfur Hexafluoride
• Metric Ton of CO2 equivalent (Mton CO2e)
Monetize – Create and Exchange Environmental Assets for cash!
What is the Value?
• Average Price in 2009 – $4-$5.00 per Mton CO2e*
• Heavily dependent on “Quality”• What is Quality
– High Additionality– Co-Benefits– Offset Standard
• Buyer Motivation*Source: Voluntary Carbon Index, March-April 2009. New Carbon Finance 2009
$4.00
Project Overview
• Project Review– Additionality Review– Project Baseline
• Applicable Standards
• Determination of Credits Available
• Valuation– Renewable Energy
Projects Reviewed
• Metro Fluid Bed/Co-Gen
• Empire Flare
• Metro Diffuser Set Point
• Metro Diffuser Predictive Maintenance
• Blue Lake
• Algae Project
Market Look
• Not all reductions are created equal
• Practical hurdles to overcome– Cost– Buyer interest– Existing methodologies– Project Risk– Low carbon price
• Renewable Energy is a nice fit
Applicable Standards
Methodologies
StandardsMembership
Required
Methane capture and
destruction for Waste Water
Renewable Energy Fuel Switching
Energy Efficiency
Carbon Sequestration
Voluntary Carbon Standard
California Climate Action Registry In
Development
Chicago Climate Exchange
EPA Climate Leaders
Projects
ProjectSimple
Payback5 yr. NPV (5%
Disc. Rate)Algae Biofuel Production N/A N/AMetro Fuel Switch 1 year 179,036$ Metro Fine Bubble DO Setpoint 2.7 years 32,320$ Metro Co-gen 3.7 years 8,888$ Blue Lake Biogas too small (66,540)$ Empire Flare too small (75,040)$ Metro Diffuser Predictive Maint. (2) too small (90,922)$ Metro Diffuser Predictive Maint. (1) too small (118,634)$
Estimated Emissions Reductions MTons CO2e/yr.
-555.721,413.212,376.172,891.537,464.828,885.50
17,781.0020,440.00
Recommendations
• Additionality Review• Monitoring & Measurement• Early Action Credits• Standards Comparison• Current Methodologies• Project Type• Volume• Financial Sensitivity Analysis
Thank You
• Bob Peplin(763) 479-4220 work
(612) 799-5297 cell
• William Brown(763) 479-4212 work
(678) 548-4861 cell
• Beau Griffey(763) 543-4683 work
(913) 488-5820 cell