We plan to generate significant carbon credits, and carbon credit revenue. Although procedures and carbon schemes exist, we are working on an ammonia-specific protocol and policy to address this opportunity in a targeted manner. The revenue derived from carbon credits and emission reductions will fund future growth and investment in new carbon-conscious technologies. It will also help to offset the price of our systems for our customers.
Globally, producing one tonne of grey ammonia causes 2.87 tonnes of carbon emissions. Our initial demonstration system will produce just over 100 tonnes per year of carbon-neutral, green ammonia. Therefore, one system will save 287 tonnes of carbon emissions.
Now let’s set a value to that, using California as an example. California’s current carbon credit rate is $29.98 per tonne. In California, one of our systems will generate $8,604 per year in revenue. One hundred systems will generate $860,000 and 1,000 systems will generate $8.6 million per year in revenue.
The values assigned to carbon reductions differ depending on the jurisdiction, but we expect to generate significant revenue from carbon credits, over and above the revenue we bring in by selling our systems. The potential is huge, until the world is sufficiently decarbonized that carbon credits no longer exist.
The revenue derived from carbon credits and emission reductions will fund future growth and offset the price of our systems for customers.