Red meat processors have upcoming opportunities to improve their plant efficiencies while reaping income from carbon credits under the Federal Government’s Emissions Reduction Fund.
Corporate Carbon consultant Matthew Warnken has reminded interested processors that it is now time to register projects with the ERF, with the next Australian Carbon Credit Unit (ACCU) auction scheduled for 4-5 November.
Mr Warnken contributed to the development of two ERF-approved methodologies, paving the way for processors to lower their emissions and participate in the Fund.
“With the Australian Government committed to its new emissions target of 26-28 percent below 2005 levels by 2030, the ERF offers several opportunities for red meat processors,” he said.
The project identified two methodologies – waste water management, particularly the use of methane capture – and energy efficiency.
Mr Warnken said the biggest challenge for processors was engaging with the detail of the ERF, particularly the methodology requirements to ensure project approval.
“There is certainly a level of complexity to the methodologies, particularly how the calculations are done, showing eligibility and substantiating carbon saving estimates,” he said.
“However, once the process is understood, it’s relatively smooth sailing.”
To be able to bid in the next ERF auction, processors needed to register their project(s) with the Clean Energy Regulator by 18 September.
There has been one ERF auction held so far, which helped set the only price in the marketplace at present, at $13.95/unit.
“For some companies, the income from carbon credits won’t be anything stellar,” Mr Warnken said. “But it could also mean the difference to a project’s feasibility and enable delivery of productivity improvements in the future,” he said.
AMPC chief executive officer, David Lind said the research identified the greenhouse gas abatement activities that a red meat processing facility could voluntarily undertake to generate carbon credits and earn revenue under the ERF.
“The research shows that methane capture and combustion/reuse presents the greatest opportunity for the red meat processing industry to reduce GHG emissions and receive funding via the ERF,” Mr Lind said.