Camco – Environmental Assets
About the Company:
Camco is a developer, investment advisor, and asset management firm focused on biogas, renewable distributed generation, and environmental commodities. It developed and continues to manage a carbon credit portfolio comprised of over 25 projects for California’s compliance market. This portfolio represents roughly 50% of that market segment. Camco also developed and owned two of the largest ag-waste-to-energy projects in North America and continues to manage one of those for its investment partner. Camco’s team has developed and owned landfill gas, coal methane, combined heat and power, wind power, and waste to energy.
About the Solution:
Clean gas projects have the ability to generate a number of different and often complementary environmental attributes including carbon offset credits, renewable energy certificates (RECs), renewable identification numbers (RINs) and Low Carbon Fuel Standard (LCFS) credits. Camco has the track-record and infrastructure to assist its partners and clients to generate these attributes, understand their value, and to sell them into what are often illiquid, niche markets.
Camco is a leading supplier of offset credits to the U.S. market. It has generated and sold over 2 million compliance offsets in the U.S. market. Camco has the ability to assess and realize economic value in the form of offset credits from emissions reductions generated by certain clean gas projects. Camco can evaluate a project’s potential to generate offset credits at an early stage of design and development with a focus on optimizing the project for the highest end value for those offsets. Camco’s renewable and environmental markets team can help renewable gas projects realize significant additional revenue streams from the generation of carbon offset credits.
Renewable Energy Certificates
RECs can be generated from the production of power from an on-site renewable energy resource or from the destruction of renewable gas at a generation facility off-site. There are a large number of diverse overlapping markets for RECs in the U.S. These can differ significantly in terms of how RECs are generated and accounted for. There are disparities in regional supply, demand, price, and project eligibility. Camco understands the different REC programs and has experience of selling RECs from biogas power projects into national and state specific markets and we can assist developers and project owners in placing RECs with buyers or into markets that will generate the most value.
Renewable Fuel Credits
Renewable fuel credits represent the production of specific renewable fuels under either federal (EPA RFS2) or state-level (CA LCFS) programs. Both programs are designed to increase the use of renewable fuels, with greenhouse gas intensities that are lower than conventional gasoline and diesel, within the U.S. transportation fuel economy. Regulated parties such as fossil fuel refiners and blenders are required to surrender evidence of the blending/distribution of conventional and cellulosic ethanol, biodiesel, renewable natural gas and other fuels into the marketplace. Credit under the RFS2 program is created at the point of renewable fuel production in the form of a RIN for every gallon of qualified fuel produced. RINs can be surrendered for compliance or traded. Credit under the CA LCFS program is created at the end of the compliance period if the GHG intensity of a regulated party’s fuel pool is less than the level mandated by the state. LCFS credit represents an excess of GHG savings and can be traded to other parties for use in complying.
Camco understands the renewable fuel program space and is able to navigate both the RFS2 and CA LCFS programs by qualifying unique fuel pathways for approval. During project development, Camco is able to analyze fuel pathways and assess how low-carbon attributes embedded in cleaner transportation fuel can impact credit value. To realize revenue from these credits, Camco has developed commercial relationships with organizations who need them to meet their state and federal requirements. While providing pathways services, Camco can also bring buyers and developers together to enhance the financial viability of the project.
Solution Strengths, Weaknesses and Critical Indicators
Consultants, Developers & Service Providers:
- Can be an integral part of a project team
- Generally used to provide specific expertise or to reduce the responsibility or risk
- Most projects have at least some Consultants, Developers and Service Providers
- Consultants are generally hired to oversee or advise in a specific area of expertise
- Developers usually are responsible for the entire project
- Service Providers typically provide services in a particular area of expertise
- No Consultant, Developer or Service Provider can make a bad project successful
Camco is an indudtry leader in the marketing of environmental assests and has been working with the dairy community across the country for many years to monetize the environmental benefits of projects. Camco currently is involved with multiple digesters and other carbon reducing projects and is always looking for more.
There are an almost unlimited number of ways that environmental assets can be marketed and information available regarding specific costs and business structures often depend on individual project specific details. Newtrient is currently working with Camco to present these options and the associated information in a reasonable and understandable way. Camco has shared a strong commitment to the dairy industry and has been involved in many projects as a credit marketer and is also responsible for the development of several projects as well. Newtrient fully supports the commitment Camco has made to the dairies and commends this type of partnering to bring value to projects across the industry.
1. OPERATIONAL HISTORY