Embed Size (px)
DESCRIPTION
Emerging Opportunities with the Low Carbon Fuel Standard: biogas climate benefits, environmental markets for biogas, ownership of attributes, key barriers and emerging solutions.
Citation preview
Emerging Opportunities with the Low Carbon Fuel Standard
Peter Weisberg
American Biogas Council/Bioenergy Association of California
Webinar
April 17, 2014
Renewable electricity
21%
Avoided methane
emissions79%
Biogas Climate BenefitsExample project: 2,000 cow dairy, 750 kw digester
Environmental Markets for Biogas
Market Credit Biogas Use GeographicLimitation
California Cap-and-Trade
Carbon Offset Any Anywhere in the US
State Renewable Portfolio Standard
REC (Renewable Energy Certificate)
Electricity generation
Depends on state renewable portfolio standard
CaliforniaLow Carbon Fuel Standard
LCFS Credit Transportation fuel
Fuel consumed in California
US Renewable Fuel Standard
RIN (Renewable Identification Number)
Transportation fuel
Anywhere in the US
Ownership of climate attributes
Renewable energy (displacing fossil fuel)
Avoided methane emissions
Carbon Offset x
REC x
LCFS Credit x x
99.18
68
13.45
-15.29
-40
-20
0
20
40
60
80
100
120
Gasoline Compressed Natural Gas Dairy Biogas Food Waste Biogas
Car
bo
n In
ten
sity
(gC
O2
e/M
J)
0
20
40
60
80
100
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Carb
on
In
ten
sit
y (
gC
O2e/M
J)
California’s Low Carbon Fuel Standard
Carbon Intensity of Compressed Biomethane from Dairy Farms - 13.45 gCO2e/MJ
Carbon Intensity of Crude Oil - 99.18 gCO2e/MJ
LCFS Carbon Intensity Targets
Credits
Deficits
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
$90.00
Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14
California LCFS Price ($/mtCO2e)
$/mtCO2e $/MMBTU1 $/DGE1
(diesel gallon equivalent)
Current $19.50 $2.33 $0.30
Average $53.32 $6.38 $0.83
High $85.00 $10.16 $1.32
LCFS Value to BiogasFood Waste (HSAD) Carbon Intensity: -15.29
1 $/MMBTU and $/DGE prices for 2014; credits generated per MMBTU or DGE vary annually as the CA LCFS carbon intensity target is adjusted down.
$/mtCO2e $/MMBTU1 $/DGE1
(diesel gallon equivalent)
Current $19.50 $1.74 $0.23
Average $53.32 $4.76 $0.62
High $85.00 $7.58 $0.98
LCFS Value to BiogasDairy Digestion Carbon Intensity: 13.45
1 $/MMBTU and $/DGE prices for 2014; credits generated per MMBTU or DGE vary annually as the CA LCFS carbon intensity target is adjusted down.
Key Barrier: Financing projects
• LCFS market is
– Nascent
– Volatile
– Complex
– Under legal challenge
– Policy dependent (demand = policy, supply = policy)
• credits are not “bankable”
Emerging Solutions!
• Price Floor/Price Ceiling:
– April 4th “Cost Containment Provision” workshop
– “Determine” price ceiling
– “Explore” price floor
• Contracts
– Regulated entities hesitant to enter long-term contracts
– Green Credit Reserve
Green Credit Reserve (AB 2390)• State contracts to buy LCFS credits
during project development.
– Fixed price
– Long terms
– Payment on delivery
• AB 2390 legislative status
– Assembly
• Passed Natural Resource Committee
• Must pass Appropriations Committee
• Pacific Coast Collaborative– October 2013: Oregon, Washington, British Columbia
and California “committed to adopting and maintaining low carbon fuel standards in each jurisdiction.”
• Oregon: – Current LCFS (Clean Fuels Program) expires in 2015.
– Requires legislative extension.
• Washington:– May have authority under state Clean Air Act to adopt
a LCFS
Expansion to New States
Peter Weisberg
Program Manager
The Climate Trust
503-238-1915 x207
Thank you!
