If you are curious about the "maybe's" of getting paid for sequestrated soil organic carbon but don't understand really how the whole thing might operate, take a read at the article below? I believe it will allow you to better understand both the IndigoAG Carbon Credit opportunity as well as the NORI.
https://medium.com/nori-carbon-removal/ecosystem-service-markets-explained-with-a-fruit-metaphor-3b3a9376db9f
NORI is offering a grandfathering of soil carbon credits generated on your farm over the last five years of cropping history. The ideal farm would have initiated no-till farming practice in 2015. If you would like to test how your no till might be performing you can give a go with no commitment via entry of your five year history and a best estimate of the continuance of the sequestrating program via the Colorado State University COMET-Farms - Voluntary Carbon Reporting Tool. This is a FREE to use farm carbon calculator that provides farmers/ranchers with sequestration carbon values by management practice for 1605(b) reporting. NORI is an open market block-chain based program that builds a transaction market for 100% Made in the USA by American Farmers Carbon Sequestration Credits.
Here are the simple rules of thumb to figure out what this could be worth. - The carbon credit markets transact metric tonne CO2 equivalents (mtCO2e). This allows normalization of a standard reference - like the bushel unit.
- Healthy, well balanced no till can annually sequestrate 0.2 to 1.5 metric tonnes of Soil Organic Carbon (SOC) per acre per year.
- A metric tonne of SOC must be converted to standard carbon credits in the form of one mtSOC = 3.67 mtCO2e
- Over the last ten years there has been a steady increase in volume of carbon credits in trade base from two types of sources: avoidance carbon credits which derive from a change that is carbon efficient - like buying an electric car or change in a process. The second and IMHO more valuable, are the true carbon sequestration projects that capture from the atmosphere carbon. There approximately 100 million acres of no till operating currently on the Grain Belt's working acres.
- A composite price for CO2e's can be found here: https://indices.ihsmarkit.com/Carbonindex (select weighted carbon index in the "Index Level" box.
NORI started selling NORI Reduction Tonnes in October of 2019 and has discovered they have greater demand than supply for these carbon credits. Fortune 1000 Enterprises with NET ZERO policy are hungry for your carbon sequestrations. Net-Zero carbon policy is to emit less, and remove the rest. NORI has cleared their initial NRTs (14,000mtCO2e) at $15/mtCO2e plus a 10 percent cost of the transaction. Their grandfather 2020 goal is to deliver 100,000 NRT by Fall 2020 at $15/CO2e. All of this is new and all the fine details are still being sorted out; certainly you too will have questions and likely edge conditions?
I would also alert you that if you are in pursuit of SOIL HEALTH benefits in your farming systems, you very likely have sequestrated soil organic carbon as well as a head-start. All of this soil carbon stuff relies on data so if you go this way figure your data at least in this case really does have value.
https://medium.com/nori-carbon-removal/ecosystem-service-markets-explained-with-a-fruit-metaphor-3b3a9376db9f
MidNight Mapper aka neil |