Tag Archives: alternative
Voluntary CO2 Trading Grew In 2012, Albeit At Lower Prices
Jul 26, 2013 By Wayne Barber, Chief News Analyst, GenerationHub A recent report from Forest Trends Ecosystem Marketplace and Bloomberg New Energy Finance (BNEF) finds that voluntary carbon markets worldwide grew in 2012, topping 100 million metric tons. In 2012, voluntary actors contracted 101 million tonnes (metric tons) of carbon offsets (MtCO 2 e) for immediate or future delivery. That’s 4% more than in 2011. Market value, however, decreased 11% to $523m as offset prices fell slightly for several popular project types. Suppliers predict the CO 2 market value could reach $1.6bn to $2.3bn in 2020, according to the report: “Maneuvering the Mosaic: State of the Voluntary Carbon Markets 2013.” The 126-page study was made public July 23 on the BNEF website. Molly Peters-Stanley and Daphne Yin are listed as the primary authors of the document. The study defines “voluntary” as all purchases of carbon offsets not driven by an existing regulatory compliance obligation. Transactions are deemed to occur at the point that offsets are contracted. The report also indicated 90% of the offset volume was contracted by the private sector. Also most forward contracts, spanning multiple years, were negotiated between project developers and offset end users. The report notes that voluntary offsets run the gamut from parties that distribute clean cook-stoves and water filtration devices to more traditional projects like wind energy and fuel switching. Demand surged for carbon offsets from certified forestry projects. In 2012, offsets from renewable energy projects were the most popular among voluntary offset buyers, as the source of 26 MtCO 2 e or 34% of transacted offsets that were associated with a project type. Wind energy was behind 15.3 MtCO 2 e of transacted offsets – 35% less than in 2011, as some buyers turned their attention to other inexpensive offsets sourced from large hydropower projects. Offset buyers in Europe and North America expanded their offset programs in order to “demonstrate climate leadership,” according to the report. Where governments have included offset provisions within their broader climate regulations, demand ranged from steady (in California) to growing (in Australia) as companies prepared for compliance, according to the report. “Because of the market’s lack of liquidity and predictability, historical trends presented in this report should be viewed only as a starting point for understanding demand in the current year – which continues to evolve as both offset buyers and suppliers innovate new ways to mitigate GHGs [greenhouse gases], influence policy, and communicate their purchases and successes,” according to the report. Read more environmental business news Continue reading
UN Takes Steps To Boost Demand For Carbon Market Credits
Grenada office will help Carribbean countries identify projects for the Clean Development Mechanism Grenada in the Caribbean is the setting for the UN’s third collaboration centre. (Source: rappensuncle) The UN has taken steps to accelerate the development of carbon markets in the Caribbean with the opening of a regional collaboration centre in Grenada. The office will help local governments, NGOs and businesses interested in accessing the Clean Development Mechanism (CDM) identify projects and opportunities. The CDM is the only truly global carbon market, and is designed to develop low carbon projects in the developing world with financing from richer nations. “The regional collaboration centres aim to increase participation in the CDM, but their work differs substantially from region to region and from project to project,” said the chair of the CDM executive board, Peer Stiansen. “The centre in Grenada will focus on the needs of the Caribbean Region in an effort to make it an increasingly attractive destination for CDM projects.” This is the third regional collaboration centre established by the UNFCCC, with the first in Lomé, Togo and the second in Kampala, Uganda. Analysts say it urgently needs to boost interest in its carbon trading system in order that it remains relevant. Yesterday Bloomberg reported an “unprecedented freeze” in UN carbon trading. According to data from ICE Futures Europe, no UN Certified Emission Reduction, or CER, changed hands on July 22 and July 23. Supply of CERs currently outstrips demand, and prices have dropped by 80% since the start of the year, raising concerns that the mechanism is losing its ability to operate. Earlier this month, the CDM passed the 7000 project mark with 1,000 new projects having been accepted since February. – See more at: http://www.rtcc.org/…h.7Wd5sEGG.dpuf Continue reading
Alternative Fuel Technologies ‘Can Produce $75 per Barrel Gasoline’
With crude oil price projected to top $140 per barrel by 2035, alternative fuel technologies, which can produce gasoline at the equivalent of $75 per barrel, will rise, according to a Lux Research report. Bringing the Heat: Gas- and Waste-derived Synfuels , says the price disparity between crude oil and other resources — coupled with the emergence of cheap and abundant shale gas, especially in the US — is transforming the alternative fuels landscape, opening up opportunities to produce cheaper gasoline. Natural gas and waste biomass will become increasingly viable choices for making liquid fuels, says Daniel Choi, a research associate at Lux Research and the lead author of the report. Lux Research analysts studied the cost of 21 biomass-to-liquids (BTL) and gas-to-liquids (GTL) processes. Among their findings: Methanol-to-gasoline is the cheapest option. At small scale (about 1,000 barrels per day), methanol-to-gasoline (MTG) is the most competitive route for liquid fuels from either natural gas ($82 per barrel) or waste ($75 per barrel). GTL can make ethanol more cheaply, but offers limited product value. Among GTL approaches, ethanol synthesis has the lowest cost of $80 per barrel, while Fischer-Tropsch costs $86 per barrel and MTG costs $82 per barrel. However, ethanol has less product value, due to blending limits and lower energy density. Waste biomass is a ubiquitous alternative. The Energy Department says waste biomass could produce 50 billion gallons of ethanol, roughly 3.5 times the current production. Processing the waste is challenging, adding $3.60/bbl to the fuel price — but that’s often more than offset by feedstock cost savings. In other alternative fuels news, Alaska Airlines earlier this week said it will begin using biofue l to power its Hawaii flights as soon as 2018 and Gevo has begun supplying the US Coast Guard research and development center with initial quantities of finished 16.1 percent renewable isobutanol-blended gasoline for engine testing. Alternative fuel developers face a make-or-break year as leading companies, such as Amyris, Poet, Solazyme, Gevo, Novozymes and Mendel , race to show substantial revenue, according to a report by Lux Research published earlier this year. Continue reading
