Forward Hedging and Upfront Contracts
The price of California’s Low Carbon Fuel Standard (LCFS) credits are set by the market and impacted by supply and demand. Demand (purchasers) is created by the production of fuels that exceed the specified carbon intensity limits. When demand for credits exceeds the available supply, prices rise. When supply outstrips demand, prices fall.
The market is complicated by the fact that there are numerous “fuel pathways” that qualify for credits. Fuel sources are as diverse as electricity from Wisconsin dairy manure, ethanol from Brazilian sugarcane, and renewable biodiesel from Australian tallow, which all qualify for LCFS credit generation.
The future supply of credits is unknown and the pipeline of credit-generating projects coming down each pathway is complex and opaque. This creates the potential for pricing uncertainty and volatility.
If you want price certainty on future credit production, e-Mission Control (eMC) is offering to set up a multi-year fixed-price credit off-take agreement.
For more information, contact e-Mission Control today.
Public Funding Resources
Our parent company, Momentum, designs, develops and deploys innovation campaigns for organizations working on transformative water, energy, transportation, and manufacturing technologies with a fundamental expertise in public funding. They conduct rigorous research, thoughtful analysis, and strategic engagement to dramatically increase the ability of both eMC and Momentum partners to access and manage public and private investment, acquire new customers, and commercialize advanced technologies. To-date, Momentum has deployed over $5.5 billion in clean energy and clean transportation projects nationally.