How carbon credits are calculated:

Business to Business Carbon

Business credits are created from the adoption of an emissions reducing process. The example below is for an anaerobic biodigester, but there are complimentary forms of emission reduction such as other alternative sources of renewable power, Combined Heat & Power (CHP), and fuel switching. The example is presented as a simple model with no reference to the European Union Emissions Trading Scheme (EU ETS). This is in order to explain the concept and avoid confusion by getting into detail over what emission reductions are accounted for in the EU ETS and those included in Cosain.

The creation of credits are made on the basic premise that the action taken in adopting a process has resulted in a net reduction in greenhouse gas emissions, and that this process would not have been adopted had it not been for the ability to generate and sell credits. The net reduction is calculated from quantifying the emissions generated in the installation of, together with the servicing and application of the new process. In this example constructing and running a biodigester, against the emissions saved through generating power and applying of fertiliser by-product.

Read more on this simple example of calculating credits - Anaerobic Biodigester >>

An anaerobic digester captures both the methane and nitrous oxide that are released when animal manure decomposes and would have subsequently been released into the atmosphere. The gases have respectively 21 and 310 times more global warming potential than CO2. However, if the manure is stored in large closed biodigester facilities where the gases from decomposition can be captured and combusted to produce power then the gas is prevented from entering the atmosphere. Furthermore, the liquid that is left behind after biodigestion is rich in nutrients and is spread as a substitute to fertiliser. This reduces the emissions caused by the manufacturing, and applying of petrochemical-based fertiliser (fertiliser manufactured from petrochemicals breaks down releasing nitrous oxide).

The emission reductions that a biodigester creates are;

Reduced methane and nitrous oxide release into the atmosphere from decomposing animal manure.
Reduced need for energy from fossil fuels through the combusting of the methane gas for electricity and heat.
Reduced release of nitrous oxide into the atmosphere from the spreading of the liquid by-product from the biodigester instead of manufactured fertiliser from petrochemicals. This includes the embedded carbon in the fertiliser from the fossil fuel energy that went into its manufacture.

The model below deals only with the credits created by the reducing of methane being released into the atmosphere. The model is interactive so you can input the amount of feedstuff, price of carbon, and the methane produced from a ton of waste.

Before undertaking a project from which it is envisaged that carbon credits can be created contact must be made with a qualified ISO 14064 auditor. An auditor, all of whom are independent of Cosain, will be able to explain and quide you through the process. Cosain can be approached at anytime by project developers if required. If the project is determined to be an emissions reduction project that will reduce Ireland’s net emissions it will require the submission of Program Document. This Program Document will outline how the reductions will be achieved and measured and become the template for which the carbon credits are validated and verified through ISO 14064.

Carbon Calculator

Assumptions

Haulage emissions are offset against emission reductions from biodigester compost fluid spreading on fields in lieu of GHG fertilizers

Meters cube of methane produced by 1 ton of waste

Density of methane

Global Warming Potential of methane

Price of Carbon

Biodigester throughputs

Annual intake of waste

Production of methane

Tonnage of carbon in methane

Tons of carbon credits generated (tons of methane by their Global Warming Potential)

Annual Carbon Income for biodigester

Income from sale of carbon credits

Values

Unit

Tonne

M³