Up to now we have seen AMR as a supplier in the negative emissions market, where methane emission certificates would be traded for methane removal certificates, very much like the CO2 emission market works. However the bulk of methane emissions we want to remove is already up in the atmosphere, so there would be no counterparty for these “legacy emissions”. For a better explanation of this please refer to our concept regarding GeoRestoration.
We have now found a solution which ensures an income for AMR, but also takes into account the historic or legacy emissions.
AMR will sell emission certificates on the market at market prices. However, when AMR sells one ton worth of methane removal, we will actually remove many tons of methane. How many? In the following “AF” stands for the “AMR-Factor” which will be calculated from the actual cost of methane removal and the current price.
This calculation works as follows.
Cost of one ton of methane removed = C (Actual Cost for AMR to remove 1 ton of methane)
Price for one ton of methane removed = P (Current price on the emission rights market)
AMR Factor AF = C/P. The factor is the quotient of Cost and Price.
For example:
P = 200,00 USD
C = 0,80 USD
AF = 200,00 / 0,80 = 250
In this case AMR would remove 250 tons of methane for 1 ton of methane traded on the emission rights market.
This way emitters of new methane would pay for the removal of legacy emissions. Since many of the current emitters are the same as the emitters of the past, this makes some sense. It would be very difficult anyway to find the emitters of the past and hold them responsible, after all they did not do anything illegal, and also they may have ceased to exist.
