What is Additionality?

In the context of carbon markets, additionality refers to the principle that a project’s climate benefits—in this case, carbon removal—must be above and beyond what would have occurred under a “business-as-usual” scenario. In simple terms, a biochar project can only generate carbon credits if it demonstrates that its carbon removal activities would not have happened without the incentive provided by the carbon market.

This requirement ensures the integrity of carbon credits by preventing projects from receiving financial rewards for activities that would have occurred anyway. Additionality acts as a safeguard to ensure that every credit issued represents a genuine net reduction in atmospheric carbon.

Why Additionality Matters for Biochar Projects

Biochar’s ability to sequester carbon is well-documented. When organic biomass is thermally decomposed in a low-oxygen environment (pyrolysis), it produces a stable form of carbon that can persist in soils for centuries. This dual-purpose technology not only removes carbon from the atmosphere but also enhances soil fertility and water retention.

However, the biochar industry’s growing role in carbon markets depends on its ability to uphold transparency and credibility. Additionality serves as a critical criterion in this regard, ensuring that biochar projects truly contribute to climate mitigation. For project developers, additionality is not merely a box to check but a strategic consideration that shapes project design, implementation, and funding.

Demonstrating Additionality: Challenges and Solutions

From a project developer’s perspective, proving additionality can be both complex and resource-intensive. Below are key challenges and potential solutions, particularly in light of emerging carbon standards:

1. Baseline Scenarios

To prove additionality, developers must establish a baseline scenario—a hypothetical projection of what would have occurred in the absence of the project. For biochar, this often involves showing that the feedstock would have otherwise decomposed, been incinerated, or used in a way that emits carbon back into the atmosphere.

Solution: Leverage comprehensive lifecycle assessments (LCAs) and historical data to create robust baseline models. Engage third-party verifiers to validate assumptions and enhance credibility.

2. Economic Feasibility

Many biochar projects face economic hurdles, especially in regions where biomass feedstock is abundant but market mechanisms for carbon credits are underdeveloped. Demonstrating that the project’s financial viability hinges on carbon credit revenues is essential to proving additionality.

Solution: Maintain detailed financial records to substantiate claims that the project would not have been viable without carbon credit incentives. Collaborate with stakeholders to highlight the role of credits in bridging funding gaps.

3. Policy and Regulatory Context

In some cases, existing regulations may already mandate practices that align with biochar production, such as waste management or renewable energy policies. Projects in these contexts risk being deemed non-additional.

Solution: Conduct thorough policy reviews to identify gaps where the project exceeds regulatory requirements. Clearly document how the project delivers incremental benefits beyond compliance.

4. Leakage and Permanence

Leakage occurs when emissions reductions in one area inadvertently cause increases elsewhere. Permanence refers to the long-term stability of sequestered carbon. Both factors influence the additionality of biochar projects.

Solution: Implement robust monitoring and reporting frameworks to track carbon flows and mitigate leakage risks. Use scientifically validated methods to ensure the long-term durability of biochar in soils.

The Way Forward: Aligning with Standards and Best Practices

The biochar carbon removal community is increasingly aligning with internationally recognized carbon standards. These frameworks provide clear methodologies for assessing additionality, including:

• Financial Additionality: Demonstrating that carbon credit revenue is critical to the project’s financial success.
• Regulatory Additionality: Proving that the project’s activities are not already mandated by law.
• Common Practice Additionality: Showing that the project goes beyond industry norms or common practices.

Carbon standards organizations are also actively developing tailored methodologies for biochar projects, addressing unique considerations such as feedstock sustainability, pyrolysis conditions, and the stability of sequestered carbon. By adhering to these evolving standards, project developers can enhance the credibility of their biochar initiatives and foster trust among investors, regulators, and the broader climate community.

Conclusion

For the biochar carbon removal community, additionality is more than a requirement—it is a cornerstone of credibility. As project developers, the ability to demonstrate additionality directly influences the integrity of carbon credits and the success of our projects. By embracing rigorous methodologies, leveraging innovative tools, and aligning with international carbon standards, we can ensure that biochar projects make a genuine and measurable contribution to the fight against climate change. The stakes are high, but so too is the opportunity to build a resilient and transparent carbon removal industry that drives meaningful climate action.

Der Beitrag Additionality – a cornerstone of credibility: A BCR Project Developer’s Guide erschien zuerst auf PYREG GmbH.

Click the link to learn more in the US Biomass Magazine.

Der Beitrag A New Economic Engine for Maine’s Forest Industry erschien zuerst auf PYREG GmbH.

Der Beitrag New System Installation erschien zuerst auf PYREG GmbH.

New York Climate Week

On September 24th, we’ll be a sponsor and participate at the Puro.earth Carbon
Dioxide Removal Summit to discuss the pressing issues and advancements in carbon removal.

On September 25th, we’ll be a sponsor of The Biochar Carbon Revolution event hosted by Grain Ecosystem and USBI where our own Jan Cihlar will speak about how the PYREG PCFS program can make biochar production a rewarding reality for any size business or operation.

Der Beitrag Climate Week – Let`s meet in New York erschien zuerst auf PYREG GmbH.

As co-authors, PYREG was invited to contribute to a new report by Boston Consulting Group (BCG) and Deutscher Verband für negative Emissionen e.V. (DVNE) on the economic potential of Carbon Dioxide Removal.

According to the report, the global economic potential of the CDR industry could reach up to €470-940 billion annually by 2050. In Germany alone, the CDR industry could grow to €70 billion per year by 2050, creating up to 190,000 jobs—surpassing the current employment levels in the wind energy sector.

The report also analyzes different CDR deployment scenarios for 2050, and it highlights that biochar carbon removal ranks as either the number one or number two novel CDR pathway in terms of volume. Regarding economic potential, BCR could reach a global economic impact of €35-70 billion.

The report emphasizes several reasons for BCR’s potential to scale, including its high technological readiness, its flexibility across various locations, and its ability to produce surplus energy. These factors make BCR particularly promising for large-scale implementation, also in Germany.

Europe, particularly Germany, is poised to lead with its technological expertise and progressive climate policies. However, bold and decisive measures need to be collectively implemented by policymakers, the CDR industry, CDR certificate buyers, and investors to unlock the full potential.

Explore more: BCG report “Carbon Dioxide Removal – Europe and Germany’s Role in Catalyzing a Trillion-Euro Industry”

Der Beitrag CDR – Europe and Germany’s Role in Catalyzing a Trillion-Euro Industry erschien zuerst auf PYREG GmbH.

Carbonfuture’s Carbon Removal Summit 2024 is a must-attend for companies dedicated to reaching their net-zero goals. Learn more about the Summit and register your interest to attend here ➡️https://www.carbonfuture.earth/summit/carbonfuture-carbon-removal-summit-2024

Der Beitrag PYREG is a CDR Innovator sponsor erschien zuerst auf PYREG GmbH.

A carbon credit is a tradeable unit representing the avoidance, reduction or removal of one metric ton of CO₂e from the atmosphere. Organizations and individuals can use these credits to oset their greenhouse gas emissions, or excess credits can be sold on verified crediting platforms, creating an extra revenue stream.

WHAT’S THE DIFFERENCE?

While often used interchangeably, carbon offsets and carbon credits operate on different processes and activities:

Carbon Offsets are an avoidance or prevention activity involving a reduction of CO₂ or other greenhouse gas emissions from the atmosphere in order to compensate for emissions made elsewhere. Some examples are solar and wind power.

Carbon Credits are a removal activity involving a removal of CO₂ or other greenhouse gas emissions from the atmosphere. Some examples are reforestation and biochar production. Companies or individuals who earn carbon credits can sell them to other organizations as carbon
osets to help oset their carbon footprint.

HOW DO CARBON CREDITS WORK?

Each carbon credit is treated as a unique and independently verified reduction of greenhouse gasses that must be traceable back to the specific carbon project that generated the emission reduction.

To qualify, the carbon project must be:

1. ADDITIONAL
The value of reductions must be beyond usual business practices.

2. REAL
Carbon reduction is measurable.

3. PERMANENT
The greenhouse gas removal is permanent and cannot be reversed.

4. REGISTERED
Each carbon credit is a unique, serialized and tracked unit that can be retired only once.

5. VERIFIED
An independent and qualified third party conducts a review of the project and certifies the emission reduction claim

WHAT PROJECTS QUALIFY FOR CARBON CREDITS?

Carbon offset and removal projects come in many forms and activities located all over the world, including:

• Carbon and methane capture and sequestration
• Emission reductions in industrial processes
• Land use and reforestation
• Returning biomass to the soil
• Investing in renewable energy
• Improving energy eciency
• Switching to alternative fuel types

WHAT ORGANIZATIONS VERIFY CARBON CREDITS?

Qualifying carbon projects are governed and verified by independent GHG Registries, such as:

https://acrcarbon.org/
https://verra.org/
https://www.goldstandard.org/
https://www.climateactionreserve.org/
https://puro.earth/
https://www.carbonfuture.earth/
https://unfccc.int/

WHO’S BUYING AND SELLING CARBON CREDITS?

Carbon market allows investors and corporations to trade both Carbon Credits and carbon offsets simultaneously.

There are currently two different carbon markets:

Worldwide compliance market
Companies that are large emitters of greenhouse gasses and are subject to government regulations. They are allowed to use carbon offsets for a portion of an emission reduction commitment.

Voluntary carbon market (VCM)
Allows individuals and companies not under a compliance program the opportunity to sell carbon credits to earn revenue or buy carbon credits to oset their emissions.

CARBON CREDIT / OFFSET LIFECYCLE

1. PROJECT DEVELOPMENT, VALIDATION & REGISTRATION

• Offset project is designed by a project developer, financed, then reviewed by an independent auditor
• Audit paperwork is sent to a standards committee, which certifies the project if standards are met
• Project is valued in terms of GHG reduction potential and co-benefits provided

2. CARBON OFFSET ISSUANCES

• Project is verified annually
• Carbon oset credits are issued based on verified quantity of CO2e GHG reductions

3. CARBON OFFSET TRADING / SALES

• Once issued, offsets can be transferred and traded between third-parties
• Purchaser does not necessarily use the offset
• Offsets can be traded several times

4. CARBON OFFSET RETIREMENT

• Offset holders must retire the offset in order to use them and claim the associated GHG reduction
• An offset can only be retired once

WHAT ARE BIOCHAR CARBON CREDITS?

Biochar carbon credits represent a permanent sequestration (removal) of carbon from the atmosphere. Physically trapping carbon in a stable
form (carbon sink) provides a longer and stronger permanence and higher value than traditional avoidance or reduction activities. When it comes to assessing and valuing carbon credits earned from biochar production and sequestration, it’s essential to work with industry-recognized organizations to ensure that the carbon removal is measurable, reportable, and verifiable.

Der Beitrag What exactly are carbon removal credits and how do they work? erschien zuerst auf PYREG GmbH.

Using PYREG’s technology, Orbital Biocarbon transforms wastewater sludge by non-combustion heating at high temperatures to produce salable biochar, a commercial-grade fertilizer or durable building material additive, renewable energy and CO₂ removal credits.

Last week, the EPA implemented new regulations mandating water utilities to monitor and eliminate “forever chemicals” (PFAS) from their water supply. PFAS chemicals, often found in wastewater sludge, pose risks to public health if they infiltrate the water system via landfill leachate or runoff from land-applied wastewater sludge. PYREG’s technology plays a crucial role in addressing this issue by destroying these PFAS contaminants, thus helping water utilities meet EPA requirements and safeguard public health.

“Over the past 18 months, we have brought PYREG’s compact, modular and easily integrable technology to scores of wastewater treatment plants, many of which are in varying stages of implementing our solution,” said John Day, President of Orbital Biocarbon.

“Like PYREG, Orbital Biocarbon shares our core values of integrity, transparency and attention to the needs and expectations of our customers. Working together for these many months has served to reinforce our conviction that our selection of Orbital Biocarbon as a premier channel into the US wastewater sludge disposal market was and continues to be an excellent decision,” said Jorg zu Dohna, CEO of PYREG.

Orbital Biocarbon offers a comprehensive solution, securing private capital to construct, own and operate on-site wastewater sludge disposal facilities. Wastewater utilities can now bypass public debt financing and operational risks while realizing value from their wastewater sludge.

Orbital Biocarbon also offers project development and PYREG technology solutions for wastewater utilities that prefer to own and operate these best-in-class plants.

A key component of Orbital Biocarbon’s ability to finance these sewage sludge treatment projects relates to its skill in obtaining upfront capital via the sale of future CO₂ removal credits, even before the projects that create the CO₂ removal credits are completed.

As one established project capital provider put it: “By incorporating modest discounts to established exchange-based pricing of CO₂ removal credits, we are willing to pay for CO₂ credits today, even before Orbital’s plants are completed. Such is our level of confidence in this approach to wastewater sludge disposal. It’s good for our carbon capture requirements, and it’s good for climate change mitigation.”

The Orbital Biocarbon/PYREG partnership recognizes that the public need for their solution is urgent across the United States.

Rob Luksis, Chairman of the Canonsburg-Houston Joint Sewer Authority (CHJSA), located outside of Pittsburgh, PA, commented: “When we first met with Orbital Biocarbon, LLI Engineering and PYREG, I was surprised by how much value could be extracted from our wastewater sludge.

Mr. Luksis continued: “To think that the only choice that we thought we had at that time was to drive diesel truckload, after diesel truckload of wastewater sludge to the closest landfill, in hopes that the landfill could bury it, and, mind you, charge us a lot to bury it, and then hope that it did not leak out any time soon, was absurd.”

Der Beitrag Orbital Biocarbon and PYREG Partner to Transform Wastewater Sludge Disposal into Regulation Compliant, Carbon Negative and PFAS-Free Profit Center erschien zuerst auf PYREG GmbH.

The German climate tech company Novocarbo has announced the kick-off for its largest Carbon Removal Park (CDR-Park) in Germany to date. The latest site of the Hamburg-based start-up, which uses the PYREG net-zero technology to remove CO₂ from the atmosphere, produce biochar, and generate renewable energy, is being built in Bochum in collaboration with the municipal utility of the city. Stadtwerke Bochum is the first municipal utility in a major German city to use climate-neutral heat from biochar production to make its district heating network greener. This is already the second carbon removal park that Novocarbo is going to open in Germany on the basis of the PYREG carbonization technology.

Climate-neutral heat for 26,000 households

Stadtwerke Bochum will source regenerative heat from the Carbon Removal Park Bochum all year round, thereby making the district heating supply in Bochum with currently around 26,000 connected households greener. “We very much welcome Novocarbo’s involvement in Bochum and are happy to support innovative, pioneering companies and technologies as part of our partnerships. Novocarbo offers us the opportunity to broaden our heat generation portfolio and make it greener. The surplus energy generated in the pyrolysis process is fed directly into our district heating network. The project is therefore an important building block for the decarbonisation of district heating in Bochum,” explains Elke Temme, Managing Director of Stadtwerke Bochum Holding GmbH.

Four PYREG plants form technical basis of Carbon Removal Park

The Carbon Removal Park in Bochum will be built from the end of 2024 on a site belonging to USB Bochum GmbH (USB) in Markstraße. By using four PX1500 pyrolysis plants from PYREG, around 6,000 tonnes of CO₂ will be removed from the atmosphere, 15,000 MWh of climate-neutral heat will be generated, and 3,300 tonnes of biochar will be produced on an area of 4,500 m² from mid-2025. Novocarbo is investing around 14 million euros in the new site in Bochum. The start-up plans to open around 200 Carbon Removal Parks by 2033.

Caspar von Ziegner, CEO Novocarbo: “Our goal is to accelerate the economy‘s transition to Net Zero and to support companies in decarbonising with our green heat solution. Together with Stadtwerke Bochum, we can make a valuable contribution to climate neutrality in Germany in one of its most densely populated metropolitan regions.”

Der Beitrag Green district heating with biochar: Novocarbo and municipal utilities Bochum rely on PYREG’s Net Zero technology erschien zuerst auf PYREG GmbH.

Here’s what to know:

• The partnership aims to create a scalable and reliable digital infrastructure for CDR, essential for meeting the netzero goals of the Paris Agreement by scaling the industry to 10 Gt/year.
• The collaboration combines real-time Internet of Things data with the requirements from an established Standard and a digital MRV system. This enables businesses to confidently invest in CDR, while CDR suppliers benefit from real-time insights into their projects, enhancing the management and quality assurance of their projects.
• The partnership leverages the strengths of each organization involved. Puro.earth defines the data requirements to accurately assess the quality of the carbon removal project. Pyreg GmbH and SYNCRAFT then provide this essential data, such as pyrolysis temperature and water content of biochar. Carbonfuture gathers this data through its MRV+, providing it to suppliers for better delivery and inventory management, and to Puro.earth for certification and verification. Additionally, Carbonfuture markets verified CO2 Removal Certificates (CORCs) through its Marketplace.
  

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Der Beitrag Carbonfuture, Puro.earth, PYREG and SYNCRAFT join forces to enhance transparency in tracking carbon removals erschien zuerst auf PYREG GmbH.