$250
CA-LCFS Credit price
$200
$150
$100
$50
$0
Figure 6 CA-LCFS credit prices
Courtesy: EcoEngineers
include third-party consultants like EcoEngineers early in the project development phase, well before pilot and commercial runs begin. Trusted advisors can offer support throughout the entire asset development and financial due diligence process, from design, build, and operational phases to regu- latory and permitting guidance, technology and market risk assessments, start-up optimisation, and capital raising eval- uations. By staying ahead of the compliance curve and being proactive, companies, investors, and their stakeholders can fully monetise the benefits of available incentives and cred - its, driving success in their low-carbon fuel investments. References 1 2023 Billion-Ton Report: An Assessment of U.S. Renewable Carbon Resources: www.energy.gov/sites/default/files/2024-03/beto-2023- billion-ton-report_2.pdf Kristine Klavers is Managing Director, Low-Carbon Petroleum (RD and SAF) at EcoEngineers in Houston, a clean energy consulting, auditing, and advisory firm. For the past 20 years, she has assisted companies in producing cleaner fuels, including the phase-out of lead in gasoline, aro- matic, sulphur, and olefin reduction. Her current focus is helping industry with its RD and SAF investments. She holds a Master’s in chemical engi- neering. Email: kklavers@ecoengineers.us
Summary The path to successful low-carbon fuel projects, such as RD/ SAF investments, hinges on rigorous compliance with reg- ulatory standards and effective management of feedstock logistics, traceability, and segregation. Understanding and navigating the complexities of the continuously changing regulated and voluntary credit markets throughout the entire company are essential for maximising profitability and mon - etising credits and incentives. To maximise ROI on low-car- bon fuel projects, it is advisable to ensure compliance with all federal and state programmes, as the value of the final product will be different and may change from the time of initial investment. Low-carbon fuel regulations are complicated, and the penalties for non-compliance or misreporting are high. Monetising the rewards of generating low-carbon fuels requires meticulous attention to detail, local and global expert regulatory knowledge, and effective communication with regulators, all of which offer project developers maxi- mum flexibility to earn credits. When entering the low-carbon, renewable fuel world, or perhaps while growing a sustainability team, it is advisable to
30,000,000
Credits De cits Cumulative bank
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
Figure 7 CA-LCFS credits and deficits
Courtesy: CARB
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