Why Nuclear Power is Key to AI and Carbon Removal

The following is an article originally published by Sustainability Magazine on March 6, 2025.

By Jasmin Jessen

Today’s energy demand is big — and it’s only going to get bigger. 

Electrified transport, high-performance computing and data centres all need energy to achieve their decarbonising potential, but using high carbon power sources could cancel this out. 

EcoEngineers is an advisory and audit firm that focuses exclusively on the energy transition. 

Its services include asset development, life cycle analysis, compliance management and regulatory engagement.

Roxby Hartley is the Climate Risk Director at EcoEngineers, working between regulation, methodologies, science and markets. 

Roxby Hartley, Ph.D., Climate Risk Director, EcoEngineers

He writes market reports, develops methodologies for new carbon removal technologies and is based in California, USA. 

Roxby shares his expertise with Sustainability Magazine.

Why is energy consumption increasing so dramatically?

A lot of that has been driven by data centres. 

At the moment, we’re seeing announcements from Google, Meta, and Microsoft about nuclear power

As we try to switch away from transportation fuels, we will see more and more electrification of transport — so there’s an awful lot of energy that’s required just to drive people around and move goods around. 

Both of those are the two big drivers.

Why can’t we rely on renewable sources for this?

The demand is growing too quickly. 

One of the claims that many companies want to make is that they’re going to be net zero or carbon neutral. They want to say that the energy they’re using is from renewable sources and has very low carbon intensity. 

Now, if you apply traditional additionality rules to that, you can say that you’re going to build a new solar farm and apply that to a data centre, for example. The problem is that there’s an awful lot of demand now for that renewable energy.

The issue is something called leakage. If you assign that power to a new data centre rather than towards grid decarbonisation, you’re taking from Peter to pay Paul. You are not decarbonising the grid, just simply saying that this person has zero or low carbon electricity, whereas the overall emissions profile hasn’t changed.

If their corporate goal is to decarbonise their data centres, they can’t do so by claiming that they’re allocating traditional renewables to their energy demand.

How could nuclear help?

Building new nuclear facilities or keeping nuclear facilities open that are slated to be closed is a way to show true additional. 

There’s no competition for resources around solar, wind farms, land, permitting or the contractors to build those facilities — it is completely new and therefore there’s no argument about whether it’s additional or not. 

If you want to make a claim that you are using a low carbon electricity, then nuclear is a very good way to do so. 

What about carbon capture? 

You can’t have a boom in carbon removals without having energy sources that are very low carbon. Otherwise you are not helping the environment — you’re just adding to the pile of energy demand that’s going to come from natural gas or whatever fossil fuels have been consumed. 

It’s not so much that we need the energy to come from somewhere where there are very few emissions. It doesn’t really matter where it is, as long as it’s not something that’s already going to decarbonise the grid.  

Download our report, “Powering AI: Additionality and Nuclear Power,” by clicking on the thumbnail below to explore how nuclear energy is shaping the future of clean power for AI and CDR technologies.

Reconfiguring The Flow

The following is an article originally published by Ethanol Producer Magazine on February 11, 2025.

The 12-month results for Fluid Quip Technologies’ trademarked Low Energy Distillation and Grain Neutral Spirits systems are in. After more than a year in operation at Three Rivers Energy in Coshocton, Ohio, both bolt-on technologies outperformed initial estimates, according to Michael Franko, FQT’s vice president. 

The LED system—designed to reduce process energy steam usage by reconfiguring distillation flow without relying on a membrane-based approach—was initially estimated to reduce steam usage per gallon of ethanol by 47% from the industry average of 14.5 pounds per gallon.  

“The project has exceeded these goals and continues to exceed expectations,” says Eamonn Byrne, chief operations officer at Three Rivers Energy. The Coshocton plant was one of the first in the U.S. to deploy FQT’s LED and GNS set-ups, and according to Franko, FQT’s team has more than proven its ability to help ethanol producers reduce energy consumption and lower carbon intensity (CI) scores by reconfiguring distillation. 

“The LED approach brings a lot of opportunities to the plant,” Franko says. “We see a significant expansion of this technology throughout the industry for its ability to lower CI.” 

The LED and GNS systems partner well together, allowing access to new markets, as LED provides the added ability to produce high-purity alcohol (HPA) products through a revamped distillation setup. 

Since 2019, a handful of ethanol producers have added GNS or other HPA production capabilities, most of which were designed to serve the hand sanitizer market. McCord Pankonen, service director of the ethanol and biodiesel divisions for EcoEngineers, says it makes sense for producers to invest in GNS or HPA production. He says the expected growth rate in HPA use in the next five years will range between 5% and 10%.

“A lot of people ask me why an ethanol producer would invest in HPA,” Pankonen says. “It is to diversify their portfolio.”

LED Efficiency 

The opportunity of LED lies in its ability to cascade steam in a smarter way, Franko explains. “It utilizes the steam more efficiently. Many plants are using 20-year-old distillation technology. LED is a newer, proven distillation technology to operate more efficiently with lower cost.”

The LED process can lower a plant’s CI score by 4 to 6 points and cut steam usage by up to 50%. The system also eliminates the need for clean-in-place related downtime. Throughput could also be increased and water load reduced.

In traditional distillation processes, steam is used to boil the combination of fermented ethanol and water. The process allows the ethanol vapor to separate from the water. Directly injecting new or recycled steam into distillation helps control the temperature of the steam, which allows optimal ethanol separation from the water-ethanol mix.

Franko says the ethanol industry typically employs three methods of distillation: pressure distillation, vacuum distillation and hybrid distillation. Pressure distillation relies on two or more columns operating at different pressures in order to separate the water-ethanol mixture. Vacuum distillation utilizes a beer column, rectifier column and a stripper column, where steam is injected to separate the last of the ethanol after it has gone through the other columns. During that process, the injected water then must be removed downstream, increasing CI.

The LED system can be incorporated into either distillation design by eliminating the need for direct injection steam through a series of equipment changes, reengineering or rearranging flow patterns. Franko and his team refer to the changes as “distillation reclaim opportunities.” 

The goal of LED is to arrange the hottest temperature and highest pressure on the cleanest fluids while reusing energy in multiple effects. Unnecessary phase changes are historically one of the largest users of energy in distillation, but LED removes them. This adjustment, while significant in the amount of energy conserved, is simple and operates similarly to existing distillation systems.  

“This modern technology utilizes proven distillation principles, without a need for expensive replacement parts/membranes,” Franko says.

In some cases, an additional beer column will be added along with new reboilers. If the goal is increased ethanol production, molecular sieve capacity may also need to be increased. LED provides a great opportunity for low-CI expansion. The addition of reboilers, beer columns or molecular sieves are the main capital costs related to equipment additions, Franko says. “Changing a plant to an LED style setup should take roughly 12 months total project time, with minimal downtime, usually falling within a plant’s normal shutdown schedule.

“LED may be a unique operational setup, but it is not something new in a plant that they haven’t seen before,” Franko adds. “You just have to get the team to understand the different flow patterns.” 

When Franko talks with prospective producers about the system, he says they often understand the process changes immediately and can envision how an LED system would work at their respective plants.

Past and Future of LED 

The origins of LED link back to FQT’s work with two ethanol plants in Brazil. According to Franko, the FQT team, supported by Thermal Kinetics, helped the Brazil plants reduce energy consumption by using waste low-pressure steam.

The set-up endeavored to meet the needs of the biomass boilers, while maintaining the functionality of the distillation process. At a Sao Martinho plant in Brazil, the team integrated its LED system in conjunction with a mechanical vapor recompression technology to achieve what FQT says is one of the lowest steam-usage rates in the entire ethanol industry.

John Kwik, executive vice president of FQT, called the LED setup, “a real technology disruptor for the South American ethanol market.” 

Agenor Pavan, chief operations officer of the Sao Martinho plant, said the LED system has allowed the plant to avoid investing in additional steam generation or biomass feedstock volumes needed to power its boilers.

Since commencing operation of its LED system at Three Rivers Energy, FQT has had several interested parties tour the facility to see how the system works and what it looks like, Franko says. 

Gevo is already configuring its planned Net-Zero 1 ethanol plant in South Dakota around LED with a focus on driving the CI value as low as possible, Franko says. Once built, the plant will feature—and rely on—FQT’s LED system integrated with mechanical vapor recompression. Having LED at the center of the Net-Zero 1 plant is a testament to the power and ability of its design and FQT’s engineering prowess, Franko says. 

“We are engineering [Net-Zero 1’s] LED system for what we believe will be the lowest-CI ethanol plant in the world,” he says. 

For existing ethanol producers that know they can benefit from investing in CI-lowering technology, the LED route is clear, according to Franko. The advantages are there, and the CI-reduction has been proven.

Growth in GNS, HPA Markets 

Reconfiguring the distillation flow at an ethanol plant can also create more opportunities in the GNS and HPA sectors. 

The FQT team says a plant can use additional steam not utilized in the LED system to produce an HPA steam product. Three Rivers Energy was already working with Gojo Industries to supply HPA for hand sanitizer. According to Franko, although GNS capabilities can be added to a plant’s distillation setup at any time, the move might not always make sense without a clear vision of the end market a plant might serve.

Canada-based Greenfield Global and ClearSource, a division of New York-based Western New York Energy, are two ethanol producers with large investments into HPA and GNS. 

In 2023, Greenfield Global added 30 million gallons of grain-based HPA production to its Johnstown, Ontario, distillery. The company has a global footprint in ethanol production, along with HPA used for spirits, academia, pharmaceuticals and hygiene customers.

ClearSource has more than 600 feet of HPA distillation spread throughout four towers, the tallest at 168 feet tall. ClearSource produces GNS by distilling the alcohol up to seven times to make what it believes is the purest offering on the market. 

EcoEngineers’ Pankonen, formerly a general manager with Greenfield Global’s Minnesota ethanol and HPA operation and a career expert in the biofuels markets, is fully aware of the challenges and opportunities for biofuels producers that participate in the GNS market. 

Through his current work assisting producers in employing new low-carbon strategies enabling them to keep pace with market leaders, Pankonen has watched the demand for HPA surge since the pandemic. Now, the demand has moved past hygiene products into other markets like those served by Western New York Energy. 

Ethanol producers need to understand offtake agreements like any supplier would, he adds, before they look at investing in the distillation capabilities necessary to bring their product to the 190-plus proof purity level the HPA market demands. 

In addition to understanding the HPA market and offtake possibilities, Pankonen points out that producers need to continually refresh their knowledge of CIs. Technologies like FQT’s LED and GNS systems inherently lower the CI score of a plant, but they do require investment. Pankonen and his team are helping producers understand how CI scores are modeled. 

“It’s important, no matter the technology or end market, to understand how they will affect the CI score,” he says. Having that confidence and knowledge of a CI score is important to investors and boards, he adds. 

“You need to speak to a technology’s CI score like you do to a dried distillers grain product or corn oil or, in this case, HPA production.”

EcoEngineers Expands Accreditation and Scope Extensions in Canada and Beyond

The following is a press release originally published on January 29, 2025, on Business Wire.

ANAB Scope Extension Strengthens the Firm’s Auditing and Verification Capabilities

DES MOINES, IOWA (January 29, 2025) – EcoEngineers (Eco), a consulting, auditing, and advisory firm with an exclusive focus on the energy transition and decarbonization, today announced two new scope extensions granted by the American National Standards Institute (ANSI) National Accreditation Board (ANAB). The ANAB scope accreditations are a testament to the firm’s commitment to robust and comprehensive quality management systems. The accreditations underscore the firm’s dedication to providing clients with the assurance, credibility, rigor, and continuous improvement they need on their journey to develop green hydrogen and greenhouse gas (GHG)-mitigation projects worldwide.

Specifically, Eco was granted scope accreditation for the following:

  1. Green Hydrogen (CFR Sector 4): Verification of applications and reports under Canada’s Clean Fuel Regulations (CFR), strengthening the company’s leadership in hydrogen verification and bolstering Eco’s ability to support U.S.-based clients expanding into Canada and open new avenues for verification projects.
  2. Land Use and Forestry (ANAB Group 3): Verification of GHG emission reductions and removals, including soil carbon sequestration, positioning the company as a leading verifier of sustainable farming practices for Climate-Smart Agriculture (CSA) crops used as biofuel feedstock.

The latest scope extensions follow Eco’s accreditation granted by ANAB as a validation and verification body (VVB) in accordance with International Organization for Standardization (ISO) standards in 2023 and the CFR Sector 2 Renewable/Bio/Low-CI Fuels scope accreditation achieved in 2024.

“These new scope extensions demonstrate Eco’s ongoing dedication to excellence in verification and our ability to adapt to the evolving needs of the carbon marketplace,” said Randy Prati, vice president of strategic initiatives at EcoEngineers. “Our clients can rely on us to deliver robust, credible, and transparent verification services.”

Poised for Growth

In parallel, Eco is pursuing additional accreditations such as becoming a certification body under international voluntary and regulatory compliance schemes. Eco is also expanding its presence in Europe to obtain national body accreditation recognition, which will allow the firm to offer its clients verification and certification services under multiple European voluntary schemes.

“Our ability to help clients substantiate their GHG claims through accurate and transparent processes strengthens their credibility and advances the energy transition,” said Shashi Menon, CEO of EcoEngineers. “These new capabilities highlight our position as a trusted partner in the carbon marketplace.”

About ANAB

Launched in 2008, ANAB’s accreditation program for GHG/verification bodies oversees the competence and professional conduct of third parties responsible for verifying the accuracy of emission attestations and applies to a broad spectrum of industries. For more information, visit www.anab.org.

About EcoEngineers

EcoEngineers is a consulting, auditing, and advisory firm with an exclusive focus on the energy transition and decarbonization. Its team of engineers, scientists, auditors, consultants, and researchers live and work at the intersection of low-carbon fuel policy, innovative technologies, and the carbon marketplace. Eco’s global team is shaping the response to climate change by advising businesses across the energy transition. For more information, visit www.ecoengineers.us.

Exploring Hydrogen: Back to Basics

The following is an article originally published on January 18, 2025, by Biomass Magazine.

By Caitlin Scheresky, Biomass Magazine 

On Nov. 26, EcoEngineers hosted the newest installment in its “Back to Basics” webinar series, with this edition focusing on hydrogen. EcoEngineers’ Senior Carbon Consultant Guillermo Aguirre presented the webinar’s content. 

Aguirre kicked off the conversation with a brief history of hydrogen. Hydrogen makes up the majority of the universe’s mass at 75%, Aguirre said, and is an energy carrier. This ability to store energy makes it crucial to several industries. Discovered in 1766, hydrogen has become an integral part of the renewable energy industry. Perhaps most notable is hydrogen’s role in the 2022 U.S. Inflation Reduction Act, in which the hydrogen production tax credit debuted. 

READ MORESummary of the Section 45V Hydrogen Production Tax Credit (PTC) Final Rule

Hydrogen production varies in carbon intensity and emissions, Aguirre explained, depending on the method of production. Hydrogen production through steam methane reforming (SMR), during which natural gas is heated to produce hydrogen, carbon monoxide and carbon dioxide, is a high-carbon-intensity method. When carbon capture methods are applied to SMR by using natural gas as feedstock, carbon emissions are minimized to a medium-to-low intensity. The hydrogen produced by this paired method is called blue hydrogen or low-carbon hydrogen. Low-carbon-intensity hydrogen is produced when a source of renewable energy and water takes the place of natural gas. Emissions are reduced to hydrogen and oxygen, with minimal carbon emissions.

Hydrogen’s uses, Aguirre said, are numerous, from transportation to storage. And its consumption in the United States is only increasing. Currently, 55% of hydrogen consumption is used in refining; 35% is used with ammonia and methanol; 8% is used in other areas, such as the rocket and space industry; and 2% is used in metals production. “The challenge here is to replace the existing, current fossil-based hydrogen with a low-carbon-intensity hydrogen,” Aguirre explained. 

READ MORENational Petroleum Council Report Highlights Hydrogen’s Critical Role

Just as hydrogen’s uses are growing, so too is U.S. demand. At current production, roughly 10 million tons of hydrogen are in demand per year in the U.S. for use in petroleum and metal refining, biofuels, natural gas blending, fuel cell electric vehicles (FCEV) and more. This demand for hydrogen holds benefits across industry lines as decarbonization efforts intensify: FCEVs no longer hold the weight of a car battery and run on electricity produced by hydrogen that can be fully charged in 20 minutes; hydrogen can minimize some of the current demand for fossil fuels and higher-carbon-intensity fuels in the steel and cement manufacturing process; and carbon emissions produced through electricity generation and natural gas blending can be replaced with cleaner energy. 

Currently, industrial decarbonization is tied to incentives like the IRA. Interest in hydrogen policy is growing across the globe, with many countries developing strategies and roadmaps to get involved. “As we keep adding these in new consumption areas,” Aguirre said, “you will see hydrogen demand can go up to closer to 100 million tons per year.”

Resilience and Opportunity: Navigating Uncertainty in the Biobased Diesel Industry

The following is an article originally published in the Winter 2025 print edition of Biobased Diesel™

In 2024, the biobased diesel industry showed resilience amid swings in feedstock and commodity prices, renewable identification number (RIN) values, and California Low Carbon Fuel Standard (CA-LCFS) credit prices that impacted plant economics nationwide. Maintaining this resilience will be essential as the industry aims to navigate an ever-changing regulatory landscape in 2025 and beyond.

On the state level, the California Air Resources Board in early November approved amendments to the CA-LCFS program, signaling major implications for biobased diesel producers, investors and stakeholders. A notable change involves the eligibility of certain feedstocks—namely soybean, canola and sunflower oils—for generating CA-LCFS credits. These feedstocks will be limited to contributing up to 20 percent of a company’s annual combined total biobased diesel production starting Jan. 1, 2028, provided the producer has submitted a pathway-certification application or obtained certification before the effective date.

The move will require many producers to shift feedstocks and look more closely at the sustainable aviation fuel (SAF) sector as CARB aims to promote diversification in feedstock sourcing and the development of new fuel types. It also underscores the state’s focus on regulating the scale and type of biobased diesel production to balance environmental and industry concerns.

CARB’s decision to approve the CA-LCFS amendments could inspire initiatives in other U.S. states or Canadian provinces that have LCFS-type programs with similar emissions-reduction goals. By introducing feedstock-specific limitations, California may set a precedent, prompting producers to innovate and optimize processes to meet regulatory demands.

Federal Policy Changes

The Inflation Reduction Act of 2022 represents a cornerstone of the federal renewable energy policy. A key provision relevant to biobased diesel producers is the section 45Z tax credit, expected to be released in 2025. When implemented, 45Z would replace the $1-per-gallon biodiesel blenders tax credit (BTC). As with any new incoming administration, however, policy priorities may shift, potentially altering the timeline or focus of implementation for these tax credits like 45Z or the BTC.

Impacts on RFS

Another area of consideration is how a new administration might approach setting future renewable volume obligations (RVOs) under the federal Renewable Fuel Standard. Uncertainty, as the biobased diesel industry has seen in the past, could exert downward pressure on RIN prices.

It remains to be seen if President-elect Trump’s nominee Lee Zeldin, a former four-term Republican congressman from New York, will be confirmed as the new U.S. EPA administrator by the Senate. During his time representing Long Island constituents in the House of Representatives from 2015 to 2023, Zeldin co-sponsored several bills that aimed to repeal or eliminate certain requirements of the RFS. If his appointment is approved, the industry will need to make concerted efforts to encourage the new administrator to support the RFS.

Strategic Industry Actions

Navigating the intersecting challenges of state-level regulatory changes and potential federal policy shifts requires strategic planning and advocacy. Industry players must take proactive steps to mitigate risks and leverage opportunities in 2025 and beyond.

  • Strengthen federal-level engagement: Industry stakeholders should prioritize and strengthen outreach, education and collaboration with federal agencies such as the U.S. DOE, EPA, USDA, and others to educate new congressional staff on the merits of the RFS and promote the proven message of how the biobased diesel industry supports farmers, increases energy independence and has a positive impact on job creation.
  • Diversify feedstock supply chains: Given new restrictions on feedstock eligibility in California’s LCFS and potentially for sourcing domestic feedstocks under 45Z, producers should explore alternative feedstocks and invest in research to optimize the carbon intensity (CI) of their products.
  • Invest in innovation and technology: Advancing technologies for more efficient production and feedstock processing can help meet evolving CA-LCFS criteria and eligibility for IRA tax credits while reducing costs. Partnerships with academic institutions and research organizations can expedite innovation.

Proactive efforts today, such as fostering innovation, advocating for stable policies and engaging with policymakers, will help ensure a thriving biobased diesel sector in the years to come. We intend to monitor and analyze the first 60 days of the new Trump administration to provide insights into its impact on the biobased diesel industry and will continue to help guide the industry through this uncertainty.

 

Author: Lisa Hanke
Director of Regulatory Engagement
EcoEngineers
613-857-2414
lhanke@ecoengineers.us 

EcoEngineers Recognized Among Top 10 Sustainable Consulting Firms Worldwide

EcoEngineers (Eco) has been named one of the Top 10 Sustainable Consulting Firms globally by Sustainability Magazine. This recognition highlights our dedication to guiding clients through the complexities of the energy transition and our commitment to creating a sustainable future. 

We are proud to be featured alongside global leaders in the field, including Accenture, Bain & Company, Boston Consulting Group (BCG), Deloitte, ERM, EY, KPMG, McKinsey & Company, and PwC, reaffirming our dedication to delivering innovative solutions that foster a more sustainable future.

Since 2009, Eco has had an exclusive focus on helping clients navigate the disruption caused by carbon emissions and climate change. We provide consulting, auditing, and advisory services, enabling clients to stay informed, measure emissions, make investment decisions, maintain compliance, and manage data through the lens of carbon accounting. Our team of engineers, scientists, auditors, consultants, and researchers operate at the intersection of low-carbon fuel policy, innovative technologies, and the carbon marketplace.

For more information, visit the full article on Sustainability Magazine here.

Advancements and Opportunities in Codigestion for RNG Projects

The following is an article originally published July 4, 2024, by Biomass Magazine.

Advancements and Opportunities in Codigestion for RNG Projects

By David Lindenmuth, EcoEngineers

The arena of renewable natural gas (RNG) has experienced a pivotal evolution due to the recent regulatory advancements by the United States Environmental Protection Agency. A notable development is the expansion of the practical implementation of the regulation to allow codigestion with improved economic outcomes. The introduction of the new set rule signifies a strategic shift in the EPA’s approach to codigested feedstocks for RNG production, particularly impacting the financial justification and operational design of these types of RNG projects.

Codigestion and the New Set Rule

Codigestion refers to the process in which multiple organic feedstocks, such as dairy manure (classified as a D3 feedstock under the Renewable Fuel Standard) and food waste (classified as a D5 feedstock), are processed together in a single anaerobic digester to produce biogas. The EPA’s revised regulations have introduced methodologies that now enable the differentiation of biogas output derived from each feedstock type, thereby allowing the generation of both D3 and D5 renewable identification numbers (RINs).

Under the prior regulations, codigestion of D3 and D5 feedstocks resulted exclusively in the generation of D5 RINs. This limitation often negatively impacted the economic feasibility of projects due to the lower value of D5 RINs compared to D3 RINs. The revised rule, however, allows for the allocation of D3 and D5 RINs based on the “converted fraction,” a calculated measure of the amount of biogas produced from a D3 feedstock. This fraction is critical, as it determines how much of the generated gas can be attributed to each feedstock type, thereby unlocking the potential for higher revenue streams through D3 RIN generation.

Determining the Converted Fraction

Project operators now have the following two options for establishing the converted fraction when registering their facility with the EPA.

User-defined approach: This method requires operators to conduct precise measurements of their digester’s operating conditions, including temperature, pressure and residence time. The resulting converted fraction is applicable only if the digester operates within these measured parameters.

EPA predetermined values: The EPA has established four preset converted fractions for common feedstocks such as swine, bovine, chicken manure and municipal biosolids. These values are linked to specific operational conditions, such as a minimum temperature of 95 degrees Fahrenheit and hydraulic and solids retention time exceeding 20 days.

Project Considerations and Financial Implications

With the updated regulations, the operational setup and sizing of RNG facilities take on heightened importance. Facilities may want to be equipped to handle additional organic waste streams and ensure that their biogas upgrading systems can accommodate the increased biogas production. Furthermore, compliance with the new rule necessitates meticulous data gathering and management to satisfy the EPA’s requirements for both the user-defined and predetermined converted fraction methodologies.

The economic landscape for some RNG projects has been transformed by the new rule. Projects that were once limited to the D5 RIN market can now leverage the higher value of D3 RINs, potentially doubling annual revenue without an increase in biogas production. This financial uplift could drive the expansion of existing projects and the development of new ones. Additionally, the inclusion of D5 feedstocks, which often come with a tipping fee, presents a new revenue avenue for project operators.

Quality Assurance and Compliance

Ensuring compliance with the RFS’s RNG program requirements is critical to accessing the financial benefits of RIN credits. This involves a comprehensive quality assurance program that includes biannual site visits, ongoing data review, and adherence to mass and energy balance standards. For mixed digesters, additional verification layers are required, especially for the biogas energy calculation that establishes the D3 to D5 RIN generation ratio.

Future Outlook

The EPA’s registration timeline indicates that new project applications could be submitted starting April 1, 2024, with approvals commencing on July 1. All projects must align with the biogas reform rule by January 1, 2025, with a deadline of October 1, 2024, for updating existing pathways.

The revised EPA regulations herald a new era for mixed-waste digester RNG projects, particularly in the realm of codigestion. By offering a more nuanced approach to RIN generation and enabling more accurate financial modeling, these regulations have created fertile ground for innovation and investment in the RNG sector. As the industry continues to adapt to these changes, the focus remains on compliance, technical proficiency and leveraging the newfound opportunities to drive sustainable energy solutions forward.

Author: David Lindenmuth 
Managing Director, RNG Services  
EcoEngineers  
dlindenmuth@ecoengineers.us 

Equatic and Eco Launch Carbon Dioxide Removal Methodology

Equatic and Eco Launch Carbon Dioxide Removal Methodology

Equatic, in partnership with EcoEngineers and the ISO – International Organization for Standardization (ISO), unveiled ISO 14064-2:2019, a new methodology for monitoring, reporting, and verifying (MRV) of electrolytic ocean-based carbon dioxide removal (CDR).

This methodology offers a thorough, transparent framework for quantifying, monitoring, reporting, and verifying greenhouse gas (GHG) emissions and removals at the project level in ways that meet ISO’s rigorous and world-renowned reporting standards. Requirements for project planning as well as identifying and selecting project-specific GHG sources, sinks, and reservoirs (SSRs) are included in the standard. Furthermore, it offers guidance on project performance and data quality management, including recommendations on baseline scenario outlines, monitoring, quantifying, documenting, and reporting. Some of the most rigorous and unique aspects include:

  • Closed-system crediting, including measuring the changes in the carbonate system in both the incoming and outgoing seawater using off-the-shelf sensors for solid and liquid samples;
  • Carbon emissions of any inputs and the transportation of all inputs and outputs;
  • System leakage considerations, including electricity and carbon dioxide (CO2) sourcing and leakage, as well as physical forms of potential CO2 leakage;
  • Guidelines for additionality including regulatory and financial additionality.

“This high-integrity methodology provides a clear framework to standardize MRV across the industry,” said Roxby Hartley, Ph.D., climate risk director for Eco. “It provides a clear road map that aligns with the highest industry standards, ensuring that the carbon removal process is meticulously monitored and recorded.”

Read the announcement on Equatic’s website here: https://www.equatic.tech/articles/iso-14064-2-2019-mrv-methodology

Download the methodology here: 

Equatic invites public comment until June 10, 2024, via MRV@equatic.tech.

 

About Equatic

Equatic is a carbon removal company leading the industry in combined carbon dioxide removal and carbon-negative hydrogen generation. Using a patented seawater electrolysis process, Equatic amplifies the ocean’s inherent ability to absorb and store massive amounts of carbon. The technology was created and developed at the UCLA Samueli School of Engineering’s Institute for Carbon Management. Following the successful operation of two pilot facilities in Los Angeles and Singapore, Equatic is now constructing the world’s largest ocean-based CDR facility and works with industry pioneers, national agencies, and government leadership to scale climate solutions at unprecedented rates. The company sells high-quality carbon removal credits and is the only ocean-based carbon removal company that measures removal inside the boundary of its plants, leading to unprecedented certainty.

EcoEngineers Partners With XPRIZE to Accelerate Carbon Removals

The following is an article originally published May 16, 2024, by Business Wire.

EcoEngineers Partners With XPRIZE to Accelerate Carbon Removals

DES MOINES, Iowa–(BUSINESS WIRE)–EcoEngineers (Eco), a consulting, auditing, and advisory firm with an exclusive focus on the energy transition, today announced that it is partnering with XPRIZE to evaluate finalists vying for the $100 million XPRIZE Carbon Removal competition that incentivizes innovation in carbon dioxide removal (CDR). Eco will conduct performance verifications to establish how effectively each project removes and durably stores carbon dioxide.

XPRIZE Carbon Removal aims to tackle humanity’s biggest threat – fighting climate change by rebalancing Earth’s carbon cycle. Upon its launch in 2021, the $100 million competition was the largest incentive prize in history. The nonprofit has set a challenging goal for its competitors: each project must demonstrate the removal of at least 1,000 tonnes of carbon dioxide within the specified project period. Eco will evaluate eight of the 20 groundbreaking projects in this year’s competition.

“We are honored to partner with XPRIZE in their ambitious efforts to combat climate change,” said Shashi Menon, CEO of Eco. “We look forward to applying our skills to help identify and promote the most promising and impactful innovations in carbon removal.”

Eco will leverage its extensive expertise in life-cycle analysis (LCA), carbon removal technologies, and greenhouse gas monitoring, reporting, and verification (MRV) to conduct a thorough evaluation of each project. This process is vital for confirming that the stated environmental benefits are quantifiable and substantiated thereby guiding future investments and policies in environmental technologies.

Eco will examine a diverse array of carbon removal technologies and approaches in various sectors such as energy, manufacturing, and agriculture. Each project represents a potential breakthrough in its field, and Eco’s evaluations will play a key role in determining which solutions can scale up to have a global impact by ensuring that the innovative solutions proposed by the competitors are both effective and verifiable.

The outcomes of these evaluations are eagerly anticipated, as they will highlight the most effective and scalable solutions for CDR. The insights gained from Eco’s assessments will also contribute to the broader environmental sector, offering valuable insights that can influence future environmental strategies and policies.

Eco’s involvement in XPRIZE represents a significant step forward in its mission to foster sustainable development and mitigate climate change on a global scale. By ensuring the accuracy and reliability of carbon removal claims, Eco is helping to pave the way for a more sustainable future.

About XPRIZE

XPRIZE is an established global leader in designing, launching, and executing large-scale competitions to solve humanity’s greatest challenges. Our unique model democratizes innovation by incentivizing crowd-sourced, scientifically viable solutions to create a more equitable and abundant future for all. Donate, learn more, or join a team at www.xprize.org.

About EcoEngineers

EcoEngineers (Eco) is a consulting, auditing, and advisory firm with an exclusive focus on the energy transition. From innovation to impact, Eco helps its clients navigate the disruption caused by carbon emissions and climate change. Eco helps organizations stay informed, measure emissions, make investment decisions, maintain compliance, and manage data through the lens of carbon accounting. Its team of engineers, scientists, auditors, consultants, and researchers live and work at the intersection of low-carbon fuel policy, innovative technologies, and the carbon marketplace. Eco was established in 2009 to steer low-carbon fuel producers through the complexities of emerging energy regulations in the United States. Today, Eco’s global team is shaping the response to climate change by advising businesses across the energy transition. For more information, visit www.ecoengineers.us.

Venturing Into The Voluntary Market

The following is an article originally published May 14, 2024, by Ethanol Producer Magazine.

Venturing Into The Voluntary Market

By Luke Geiver, Ethanol Producer Magazine

The U.S. ethanol industry has officially entered the voluntary carbon market (VCM). In March, Red Trail Energy, a western North Dakota producer, became the first ethanol plant to be issued CO2 removal credits (CORCS) within a global marketplace that connects CO2 suppliers and buyers looking to neutralize their carbon footprint. Apart from RTE’s much-celebrated, multi-year effort to complete an onsite carbon capture and sequestration project at its North Dakota biorefinery, the plant’s management team worked with EcoEngineers to successfully navigate the process of generating CORCs. Puro.earth, a Finnish-based carbon crediting platform—backed by Nasdaq and other investors—issued the CORCs, making them available for companies like Microsoft, Shopify and other massive brands to purchase as part of their CO2 reduction initiatives. Renewable Products Marketing Group, the Minnesota-based ethanol marketing company, will market the credits.

Jodi Johnson, RTE CEO, called the accomplishment a groundbreaking milestone, noting that the company’s position in the ethanol industry is now stronger. Antti Vihavainen, CEO of Puro.earth called the milestone monumental, highlighting the scale of the project as an example of how large projects can and will supply the VCM with significant volume. Jim Ramm, vice president of biofuels at EcoEngineers, said the achievement by RTE and all those involved has created an opportunity for ethanol producers that can be leveraged now and well into the future.

Get to Know the VCM 
The voluntary carbon market was created to promote the removal of industrial carbon dioxide at a global scale. The market provides corporations and other entities that do not directly produce carbon dioxide in large volumes the ability to participate indirectly in the physical reduction of CO2. Through one of several marketplaces operating today, a buyer can purchase carbon removal credits, in various forms, for a fluctuating fee. By purchasing credits, the buyer is able to meet its own carbon reduction initiatives while incentivizing the removal of CO2. In return, the supplier is monetarily rewarded for partaking in CO2 removal practices. The way RTE and its partners are venturing into the VCM appears to be refreshingly clear cut, but both Vihavainen and David LaGreca, managing director for EcoEngineers, say that’s not always the case for the carbon capture and storage (CCS) sector.

The wind and solar industries have been participating in, and benefiting from, the VCM for years, LaGreca says. The VCM is roughly 30 years old and picks up where global governmental policies leave off. The purpose of the market is to reward carbon removal and make CCS projects more feasible.

“Renewable fuels haven’t really played in this sandbox before, as others have,” LaGreca says.

Playing in the VCM requires the establishment of capture metrics, proof points, traceability and several other terms that all relate to verification. According to LaGreca, a project aiming to participate in the VCM as a supplier must submit project documentation in a particular format with exacting methodology. For RTE, LaGreca and his team were brought in to explore the feasibility of the ethanol plant participating in the VCM in the first place, and then to produce the documentation required from RTE to receive CORCs.

According to Puro.earth, the verification process is one major reason why Nasdaq has taken a leading investor position in its company. Puro.earth has developed a rigorous, effective and proven process for analyzing and verifying the carbon capture and/or sequestration abilities of suppliers to the VCM. While most carbon offset schemes focus broadly on emissions reduction, Puro.earth’s approach is all about carbon removal. The company requires scientifically verified removal methods that capture and store CO2 durably for a minimum of 100 years—with industrial scaling potential. The scaling criterion is one of several reasons Vihavainen and his team are excited to work with RTE.

“Puro has developed multiple methodologies for this,” Vihavainen says. His company has worked with scientific advisory boards and other third-party advisors to create its verification system. The company has no investments or stake in any CO2 supplier or marketplace, he emphasizes. It exists to generate CORCs that the marketplace can trust. Vihavainen says Puro’s approach is aligned with global benchmarks, namely the International Carbon Reduction and Offset Alliance, a trade group of providers of voluntary carbon offsets.

Also, Puro only certifies durably stored carbon with net-negative emissions. Avoided or reduced emissions aren’t included in any carbon accounting. The company recognizes five different carbon removal methods: biochar, terrestrial storage of biomass, carbonated materials, enhanced rock weathering and geologically stored carbon. To date, Puro has certified CORCs for 175 different projects across 33 separate countries for a total of 818,527 tons of CO2. RTE is by far Puro’s largest CO2 CORC supplier. It’s also the only U.S. project in its portfolio. The majority of all CORC suppliers through Puro are in the biochar sector.

The verification process required of suppliers includes four steps. First, the supplier makes a claim on the net negativity of their products or process with accompanying evidence via a lifecycle assessment or environmental product declaration (which basically says the product has removed more CO2 than it has emitted). Second, independent assessors in the Puro system visit the production facility, validate data accuracy and issue an audit statement. Puro covers the cost of verification. Third, the verified volume of extra carbon absorbed in the products or process is then issued CORCs for every metric ton of CO2 removed and stored. Then, suppliers are free to sell their CORCs to any venue, marketplace or broker; they can also sell them directly to companies that want carbon credits to neutralize their emissions by indirect removal.

“We publish a price index with Nasdaq,” Vihavainen says. “We promote the existence of high-quality carbon removal.”

The CORC Carbon Removal Price Index tracks the price of all CORC transactions (with a separate index for biochar). As of February, the CORC index price hovered around $170 per ton. Over the past 18 months, the index price has fluctuated from roughly $130 per ton to almost $200 per ton.

When a CORC is retired (i.e., bought) the owner of the CORC can claim the benefit. CORCS will last up to three years, Vihavainen says. There are several marketplaces for buyers and suppliers to connect, including Supercritical, Patch, Carbonfuture, Cloverly, Watershed, Klimate, Lune and even Salesforce. CORCs are digital, certified and tradable.

Ethanol’s Future In the VCM 
Puro.earth gets compensated for its CORC certification work in two ways: An account holder can pay an annual membership fee, or a service fee is applied to the supplier when a CORC is traded for the first time. The fee is based on the volume of the annual output of CORCs and the price level of the CORCs.

Apart from its revenue generation goals, Puro’s mission and overarching goal is to expand the number of carbon removal projects across several industries. The company also aims to expand the access of CO2 buyers to suppliers with large CO2 removal volumes, like RTE.

When Puro.earth launched in 2017, Vihavainen says, there were a half-dozen biochar companies in the world, and now there are more than 500. That growth is, in part, due to Puro.earth and its ability to create an additional buyer for one of the industry’s main processes: carbon removal. Prior to RTE, the suppliers that Puro.earth has typically certified have had annual output totals far less than 100,000 CORCs. In fact, RTE is the first supplier to be certified by Puro that is at or above that level.

“Adding RTE is very significant,” he says.

None of it would have happened without Ramm of EcoEngineers. Ramm introduced RTE to LaGreca and his team. At first, LaGreca wasn’t sure if the RTE project would work in the VCM. Now, he says, it’s starting to look like a blueprint for other ethanol producers to follow. RTE underwent an independent verification and successfully met all requirements of feedstock sustainability, carbon sequestration permanence and financial additionality. Through only the first 14 months of its CCS project, RTE was issued more than 150,000 CORCs.

EcoEngineers has published a case study on its work with RTE that demonstrates the opportunity to both RTE and the ethanol sector as a whole. Participating in VCMs, the study says, “creates alternate revenue streams that reduce project risks and create optionality for bioenergy with carbon capture and storage projects.” The study added that “current incentive programs in the U.S. such as the 45Q federal tax credit for carbon capture and storage and state low-carbon fuel standards … are attractive to ethanol producers, but long permitting times and regulatory risks that impact credit pricing pose barriers.”

By participating in the VCM, producers have more choices, LaGreca says. “They now have the choice to go from one to the other depending on price.”

Shashi Menon, CEO of EcoEngineers, says that the company’s goal was to set RTE up for success in regulated markets (i.e., LCFS programs) while also helping the ethanol producer jump into the voluntary market. “This gives RTE a significant competitive advantage within the ethanol sector and serves as a new industry standard for others to follow,” Menon says. 

Ramm echoes that belief.

“The VCM recognizes that these CO2 removal projects, like that at RTE, are very important to meeting their clients’ goals,” he says. “Ethanol [producers are] in a really good position to participate in the VCM because they provide the best form of CO2 for sequestration.”

Should an ethanol plant control the environmental attributes of its captured carbon, it will have optionality. Some producers looking to capture CO2 via pipeline may not retain their environmental attributes based on their respective contracts with a pipeline provider. According to EcoEngineers, by registering CCS pathways in several jurisdictions and alternative VCMs, ethanol producers will be able to choose to attach the CCS credits to the fuel product and sell ethanol for a premium, or separate the CCS credits from the fuel and sell CO2-removal credits into the “demand-heavy VCM.”

Despite the testing and documentation requirements necessary to register CORCs through Puro.earth, Ramm and LaGreca estimate they could onboard a capturing producer through feasibility studies, education about the VCM and other essential steps in roughly 90 days. Other producers currently capturing CO2, or planning to, may be wondering whether entering the VCM is right for them. For Ramm, the answer is a resounding yes, he says.

LaGreca believes the VCM will be a strong growth driver in the short term for carbon capture projects.

“I think that a lot of the ethanol producers or capture equipment companies can leverage this and help make a more rapid decarbonization of the industry happen,” he says.

Those that move into the VCM early may also be rewarded. While the incentive portion of the VCM is a major driver now, it isn’t meant to last forever. The goal, according to LaGreca and Vihavainen, is that someday every industrial carbon producer will incorporate capture methods into its systems, regardless of incentives.

For CO2 capture projects that aren’t funded or economically feasible at the moment, Puro has an accelerator program to match up projects with investors. It also has a large list of sales channel partners, suppliers and buyers already connected and ready to do business with a large list of credit takers. Interested auditors and verification companies can also link up to Puro. As Vihavainen says, every part of the VCM is growing, including the number of participants.

EcoEngineers has already proven its trailblazing capabilities within the ethanol sector, its management team says. Now, they’re ready for their next project, equipped with the knowledge gained from their role in helping the first-ever ethanol plant enter the voluntary carbon market. Their work has been verified and is repeatable.