Assessing carbon value
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The document contains information about two carbon offset projects. The first project involves capturing methane from the manure of 2,500 cows. It estimates the costs and revenues from selling 8,750 carbon reduction tons (CRTs) per year over 10 years. The second project involves preventing emissions from 40,000 tons of eligible food waste per year. It also estimates costs and revenues from selling 20,000 CRTs per year over 10 years. Both projects estimate a positive net present value (NPV) from selling the CRTs.
Assessing carbon value
- 1. 2,500 cows 3.5 CRTs/cow 1 2 3 4 5 8,750 8,750 8,750 8,750 8,750 Project Development $ 20,000 Monitoring Equipment $ 14,000 Verification $ 10,000 $ 8,000 $ 8,000 CAR Fees $ 2,013 $ 2,013 $ 2,013 $ 2,013 $ 2,013 Transaction Costs $ 46,013 $ 10,013 $ 2,013 $ 10,013 $ 2,013 CRT Price $ 4.00 CRT Revenue $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 CRT Profit $ (11,013) $ 24,988 $ 32,988 $ 24,988 $ 32,988 NPV(7%) $163,424.62 $0.40
- 2. 6 7 8 9 10 8,750 8,750 8,750 8,750 8,750 $ 8,000 $ 8,000 $ 8,000 $ 2,013 $ 2,013 $ 2,013 $ 2,013 $ 2,013 $ 10,013 $ 2,013 $ 10,013 $ 2,013 $ 10,013 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 24,988 $ 32,988 $ 24,988 $ 32,988 $ 24,988
- 3. 40,000 tons of eligible food waste 0.5 crediting rate (mt CO2e/ton of eligible food waste) 1 2 3 4 5 CRTS 20,000 20,000 20,000 20,000 20,000 Project Development $ 50,000 Monitoring Equipment $ 14,000 Verification $ 10,000 $ 8,000 $ 8,000 $ 8,000 $ 8,000 CAR fees $ 4,600 $ 4,600 $ 4,600 $ 4,600 $ 4,600 Transaction Costs $ 78,600 $ 12,600 $ 12,600 $ 12,600 $ 12,600 $/CRT $ 15.00 CRT Revenue $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 CRT Profit $ 221,400 $ 287,400 $ 287,400 $ 287,400 $ 287,400 NPV(7%) $1,956,895
- 4. 6 7 8 9 10 20,000 20,000 20,000 20,000 20,000 $ 8,000 $ 8,000 $ 8,000 $ 8,000 $ 8,000 $ 4,600 $ 4,600 $ 4,600 $ 4,600 $ 4,600 $ 12,600 $ 12,600 $ 12,600 $ 12,600 $ 12,600 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 287,400 $ 287,400 $ 287,400 $ 287,400 $ 287,400