Bio-energy with Carbon capture, Ocean Alkalinity Enhancement, Sweden's CCS grant
India and France incentivise hydrogen; Dismantling the International Space Station; Gambia's draft Carbon Trading Bill; Vietnam's corporate tax exemption for green bonds and carbon credits
In this newsletter
Bio-energy + Carbon Capture and Storage
Ocean Alkalinity Enhancement for CDR
News from Governments
Top stories
On Wednesday, Bloomberg published a story about a carbon project that issued "millions of worthless credits" for adoption of clean cookstoves.
To understand how the current structure of voluntary carbon markets allows this to happen, I recommend reading the previous issue of this newsletter, where we looked at three key problems in carbon markets - accurately determining credits, financial transparency, and monitoring and verification.
Bio-energy + Carbon Capture and Storage
Stockholm (Sweden) has a bioenergy facility that burns biomass (residues from forestry, sawmills and pulp & paper production) to generate power and heat, which is fed into the district heating network. The developer of the facility, Exergi, is setting up a carbon capture and storage solution to capture CO₂ from combustion of the biomass.
Under the proposed design for the CCS, the flue gases (exhaust from combustion) are bubbled through a solvent containing water and potassium carbonate (K₂CO₃). Under pressure, the CO₂ in the flue gas reacts with the salt, forming potassium bicarbonate (KHCO₃). If the pressure is lowered, the reaction proceeds in the reverse direction releasing CO₂ and regenerating the salt for use.
The CO₂ is then collected, purified and liquefied at a temperature 50 degrees Celsius below zero and a pressure of 7 bar.
Once operational by 2028, liquefied CO₂ will be transported to a subsea storage site in the North Sea and remove an estimated 800,000 tons of CO₂ per year from the atmosphere.
Here’s a video overview of the process:
Exergi will generate revenues for its CCS solution by selling Carbon Dioxide Removal (CDR) credits through the voluntary carbon markets. It has already signed contracts with Microsoft and Frontier.
(Note: An important criteria for classifying the biomass as sustainable and eligible for generation of carbon credits under this solution is that it must come from plants that cannot be used in long-lived wood products like sawtimber or veneer.)
BECCS Stockholm | BECCS Methodology
Ocean Alkalinity Enhancement for CDR
Canada is hosting a field trial for carbon dioxide removal through ocean alkalinity enhancement (OAE) at the Halifax harbour in Nova Scotia.
OAE is based on the natural carbon cycle in oceans - CO₂ from the atmosphere dissolves in seawater, reacts with alkaline rocks, and forms stable carbonate salts that remain undersea for 10,000+ years. (corals, pearls, abalone shells - all contain carbonates)
The field trial, led by Planetary and Dalhousie University, will involve adding high-purity Magnesium Hydroxide (MgOH₂), an antacid used for wastewater treatment and naturally present in oceans, to seawater to increase its alkalinity so that more CO₂ is absorbed by the water. The intent is to accelerate the naturally occurring process, so that carbonates are produced faster.
The antacid is shipped to the project site in dry, powdered form. It is added to a mixing tank, where it is hydrated into a slurry using seawater from the harbour. The slurry is then added to the existing outfall and carried into the receiving waters. Planetary’s Site Automation and Monitoring unit closely controls the seawater and slurry pumps, while also collecting and transmitting real-time monitoring data to Planetary site operators to ensure operational and environmental safety. Once released into the harbour, the antacid slurry neutralises dissolved CO2 and, over the course of weeks and months, the lower concentration of CO2 in the surface layer of the water draws CO2 from the atmosphere into the water.
Here’s a good video with visuals, data and findings from Planetary’s first OAE trial at Halifax in September 2023.
Carbon to Sea, a non-profit promoting carbon capture through OAE, estimates it will cost $25-$160/ton of CO₂ to remove carbon through this method and it will serve as longer term storage (10,000 yrs+) compared to other approaches.
You can also read Planetary’s Monitoring, Reporting and Verification Protocol for Ocean Alkalinity Enhancement
US-based Equatic is also using a similar approach for carbon capture, combined with electrolysis of water. In their approach:
Renewable energy is used to electrolyse seawater - generating oxygen and hydrogen
Carbon dioxide is passed through the remaining seawater resulting in a mildly acidic solution
Alkaline rock is added to the solution to bring the pH to that of normal seawater
The processed water with pH similar to seawater is returned to the ocean
Equatic is setting up a demonstration project in Singapore and planning a commercial-scale project in Quebec (Canada).
News from Governments
India’s incentive scheme for green hydrogen production - Incentives will be provided for 3 years from commencement of production, capped at INR 50/kg ($0.6/kg) for year 1, INR 40/kg ($0.48/kg) for year 2 and INR 30/kg ($0.3/kg) for year 3. pv magazine | Scheme Guidelines
Sweden’s grant for permanent capture of biogenic CO2 - Sweden is introducing a scheme to encourage capture and permanent storage of biogenic CO2 (emissions from combustion or decomposition of organic material). Companies that carry out an emitting activity and implement a CCS project capturing at least 50,000 tons per year, will be eligible to receive a grant per ton of CO2 captured and stored, for a period of 15 years. Companies will be selected through a competitive bidding process, with the first auction expected in 2024. EC Press Release
French CfD for Offshore Wind - France has introduced a €10.82 billion scheme to promote offshore wind power, for a period of 20 years. The scheme will support the development of 2 offshore wind farms - one of 1000-1200 MW and another of 1400-1600 MW. The aid will be provided as a variable monthly payment under a 2-way contract for difference, by comparing a reference price to the market price of electricity.
When the market price is below the reference price, the beneficiaries will be entitled to receive payments equal to the difference between the two prices. However, when the market price is above the reference price, the beneficiary will have to pay the difference between the two prices to the French authorities.
Canada may regulate landfill methane emissions - The country has proposed regulations to reduce methane emissions from public and private lands that receive municipal waste.
owners and operators of regulated landfills that are estimated to generate methane above regulation thresholds would be required to comply with and monitor methane concentration limits on the landfill surface, limit venting of methane to the atmosphere, and detect and repair methane leaks.
Europe has introduced a provisional duty on electric vehicles imported from China - 17.4% for BYD, 19.9% for Geely, 37.6% for SAIC, and 20.8% for others. Innovation News | EU Regulation
Vietnam is considering a tax exemption for companies on income from green bond interest and carbon credits. Vietnam News
Gambia has introduced a draft Carbon Trading bill including “the establishment of a national carbon registry, the development of emissions reduction targets, and the creation of a trading platform where businesses and individuals can buy and sell carbon credits.” Government Press Release
South Africa may impose a 10% tariff on imported solar panels. pv magazine | Press Release
International Space Station will be dismantled after 2030
The International Space Station (ISS) will complete its useful life of by 2030, and will be de-orbited and brought back to Earth by a special vehicle that will be built by SpaceX. After considering many options for de-orbiting, the agency has decided that the structure of the ISS will be finally disposed in a remote part of the Pacific Ocean, at least 2500 km from the nearest landmass.
The ISS has contributed significantly to current climate models by collecting data through the many sensors aboard.
BBC | NASA Press Release | NASA - ISS Deorbit Analysis Summary (PDF)
Top Stories
Deutsche Bank has issued its first €500 million social bond to support housing for disadvantaged communities and seniors. ESG News
Indonesia launched its first battery manufacturing plant with an annual capacity of 10 GWh. ET Energy
The state of New York (USA) has published a draft strategy for conserving 30% of the state’s land and waters by 2030. New York State 30x30, July 2024 (PDF)
A new Nature Target Setting Framework for Asset Managers and Asset Owners by Finance for Biodiversity. Link (Registration required)
You can find all previous posts of this newsletter here.
I’m the maker of SummaryWithAI.com. You can find me on Twitter and LinkedIn. I also blog sometimes on Floating Coordinates.
