Decarbonisation Technology - November 2024 Issue

Region

GHG reduction requirement RD and SAF

LCA model requirement

(minimum)

US Renewable Fuel

Biomass RD and SAF (D4 and D5 Renewable Identification Numbers, or RINs); 50%

Not known

Standard (RFS)

US State Low Carbon Fuel Standard (LCFS)

CI dependent

California: CA-GREET Oregon: OR-GREET Washington: WA-GREET

Programmes

US Inflation Reduction

Section 45Z, <50 kgCO 2 e/MMBtu Section 45V, CI <4 kgCO 2 e/kgH 2

TBD

Act (IRA)

40VH2-GREET

Canada Clean Fuel Regulations (CFR)

CI dependent

openLCA

EU Renewable Energy (e.g. British Columbia) Canadian Provincial LCFS

CI dependent

GHGenius

Biofuels <65-80%

RED Specific

Directive (REDIII)

Recycled carbon fuel (RCF) and renewable fuels of non-biological origin (RFNBOs) <70%

Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)

SAF <10%

ICAO-GREET

Table 1 Most fuel programmes have different GHG reduction criteria and use different models Source: EcoEngineers

carbon fuel standards or ESG programmes. Some governments offer financial incentives to promote production, while others impose penalties on companies that fail to meet minimum renewable fuel quotas or carbon-reduction targets. Depending on the regulatory programme, renewable fuel producers must adhere to published models and verification methodologies and ensure LCAs are conducted in a manner that complies with government regulations. Regulatory programmes: A multi-layered approach In the US, various regulatory bodies and programmes provide financial incentives to encourage renewable fuel production (see Table 1 ). Some key programmes include: • Renewable Fuel Standard (RFS): This US policy requires obligated parties like refiners and importers to meet annual renewable volume obligations (RVOs) through the purchase and retirement of Renewable Identification Numbers (RINs). The RFS programme is structured into four nested categories (D3, D4, D5, and D6), each with specific GHG-reduction targets compared to their petroleum-based counterparts. However, USEPA, which administers and

enforces the RFS, does not publicly disclose the precise calculation methodologies used to determine these GHG reductions. In certain cases, pre-defined GHG-reduction targets are outlined for specific processes. • California Low Carbon Fuel Standard (CA- LCFS): California’s LCFS programme is perhaps the most influential to the transportation fuels market in the US. It aims to reduce GHG emissions and dependence on petroleum- based fuels by increasing the use of low-carbon transportation fuels. The programme rewards producers of low-carbon fuels with credits, which can be sold to parties with deficits. These credits and deficits are calculated using the CA- GREET model, which is derived from Argonne (ANL) GREET and based on different ANL- GREET versions, including CA-LCFS-specific modifications and datasets. Several other US states, such as Oregon, Washington, and New Mexico, have implemented similar LCFS programmes, often relying on slightly modified versions of the CA- GREET model to calculate CI scores. The state- level programmes generally mirror California’s LCFS in design and purpose but may have different requirements and nuances.

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