Post by
DDT980 on Dec 22, 2023 1:33pm
GRN Profitability
Emitting 1 MT of methane is the same as emitting 80 MT CO2 (over 20 years) If the cost for emitting 1 MT of CO2 is $100 then trapping 1 MT of methane should be worth $8,000. A typical $45 million RNG project that traps about 3,000 MT/yr of methane would then have revenue stream of about $ 24 Million/yr. If operating costs were about $10 million/yr the net benefit would be about $14 million and the simple payback would be about 3 years (33%). Equipment suppliers like GRN would quickly become very profitable.
The trouble is that nobody is prepared to pay much, if anything, for emitting either CO2 or methane. In Canada the next government is likely to roll the CO2 cost back to ZERO.