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The Next Frontier to Produce Bio-Methanol
Methanol is one of the most important ‘primary’ chemicals – a precursor to several chemicals, plastics and materials used in a wide range of applications. It is also a key fuel and input to fuel additives today, and expected to be a critical marine fuel in the future. Given that majority of production of methanol…
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Transforming Ammonia Production
The Global Impact of Ammonia Production Ammonia, a colorless gas composed of nitrogen and hydrogen, is globally one of the most extensive produced chemical compounds worldwide. In 2022 alone, global production of ammonia was estimated at around 150 million metric tons. The same year, the chemical industry, including ammonia production, was responsible for approximately 1.3…
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Everything You Need to Know About the EU CSRD
In January 2023, the European Union launched an ambitious and transformative regulation: the Corporate Sustainability Reporting Directive (EU CSRD). This groundbreaking directive is not just another policy change; it represents a significant evolution from the 2014 Directive (NFRD), bringing a fresh perspective to the corporate world. What makes the EU CSRD so compelling? It’s all…
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Assessing Power Purchase Agreements (PPAs) from a Corporate Buyer Perspective
Power Purchase Agreements (PPAs) have emerged as a transformative mechanism driving corporate sustainability efforts across the United States. Between 2017 and 2021 alone, global demand for PPAs has grown nearly 400%, with North America leading the charge. These contracts involve an agreement between an electricity producer, often a renewable energy site, and a consumer, usually…
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What is Price Hedging?
Price hedging in environmental commodities refers to the practice of using financial instruments or strategies to manage or reduce the risk associated with price fluctuations in markets for environmental commodities, such as carbon credits, Renewable Energy Certificates (RECs), or other emissions trading instruments. Environmental commodities, like carbon credits or RECs, often have variable prices that…
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What is a Vintage?
Renewable electricity procurement involves the acquisition of energy generated from sustainable sources such as wind, solar, and hydroelectric power. One crucial aspect that significantly influences this process is the concept of “vintages.” In the context of renewable energy, the energy generation year defines the vintage. Understanding vintages is essential for businesses, policymakers, and consumers involved…
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What is Unit Contingency?
A facility or carbon project experiences unit contingency when it possesses surplus environmental credits or allowances beyond compliance or usage requirements. This surplus could occur due to reduced emissions resulting from operational changes, increased efficiency, or the purchase of more credits than necessary for compliance. Unit contingency comes into play when there is an environmental…
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What is a Renewable Portfolio Standard (RPS)?
A Renewable Portfolio Standard (RPS) is a regulatory policy requiring electric utilities and other retail electric providers to supply a specified minimum percentage (or absolute amount) of customer demand with eligible sources of renewable electricity. State or national authorities can set these standards. Many states have adopted RPS requirements due to their efficient, cost-effective, market-based…
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What is a Power Purchase Agreement (PPA)?
A Power Purchase Agreement (PPA) is a contract between two parties, commonly a power producer (such as a renewable energy developer or generator) and a power purchaser (often a utility company, corporation, or a large energy consumer). This agreement outlines the terms and conditions for the sale and purchase of electricity. Key elements of a…
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What is a Virtual Power Purchase Agreement (vPPA)?
Virtual Power Purchase Agreements (vPPAs) are financial contracts used to procure renewable energy between a renewable energy developer (such as a wind or solar farm) and a buyer (such as a corporation or large energy consumer) without the physical transfer of electricity. The buyer secures environmental attributes and renewable energy certificates (RECs) without directly purchasing…