1. Mechanics of Monetizing
Methane Destruction Credits
AgStar National Conference
April 27, 2010
Peter Weisberg
The Climate Trust
pweisberg@climatetrust.org
(503)238-1915

2. Methane
Emissions
Renewable
Energy
$ for
Offsets
$ for
RECs

3. Methane Reduction
Annual credits ≈ 3-4 x # of Lactating Cows
Example:
2,500 cows
=8,750 mt CO2e credits per year
10 year project
=87,500 mt CO2e over the project life

4. •Co-digestion
•Include N2O
•Temperature
•Solids separation
•Digester capture
•Biogas treatment
Methane Reduction:
Changes drastically according to

5. The Mechanics:
Choose a registry
Climate
Action
Reserve
Voluntary
Carbon
Standard
American
Carbon
Registry
Regional
Greenhouse
Gas Initiative
Chicago
Climate
Exchange
Current
Price
$5-6 $2-3 $2-3 $2 $0-1
High
Price
$9-10 $6-7 $6-7 $3 $7
Types of
Buyers
90%
Pre-
Compliance
Voluntary
and Pre-
Compliance
Voluntary
and Pre-
Compliance
Compliance Exchange
members

6. The Mechanics:
Before commercial operation
Determine financial viability
Establish monitoring plan
List project with a registry
Upfront Cost = $30,000- $50,000

7. The Mechanics:
After commercial operation
Monitor
Verify
Sell verified credits
Annual costs = $10,000 - $15,000

8. Revenue =
(Credits)(Price) - (Transaction Costs)

9. Digester 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

10. Future Price Scenario:
US Carbon Market Goes Away
Source: Trexler. “GHG Markets and CCS.” May 30, 2007
NPV ($6/mt CO2e) < $250,000

11. Future Price Scenario:
Political Compromise Achieved
Source: Trexler. “GHG Markets and CCS.” May 30, 2007
NPV ($18/mt CO2e) = $1 million

12. Future Price Scenario:
Atmospheric Stabilization
Source: Trexler. “GHG Markets and CCS.” May 30, 2007
NPV ($40/mt CO2e) = $2.3 million

13. Carbon Purchase Agreement
Structures
1) Fixed Price
–Developer guaranteed revenue
–Carbon buyer takes on price risk/upside

14. Carbon Purchase Agreement
Structures
2) Spot
–Developer sells credits annually after
verification
–Developers takes on price risk/upside

15. Carbon Purchase Agreement
Structures
3) Hybrid
–Carbon buyer guarantees to purchase a
portion at a fixed price
–Developer is left to market additional
portion
–The Climate Trust model

16. Thank you!
Peter Weisberg
Offset Project Analyst
pweisberg@climatetrust.org
(503)238-1915