Public Commentary: The material below outlines our approach to methane-capture carbon-credit transactions. It is offered for informational purposes only and does not constitute investment advice or a solicitation.
CH₄ Methane Projects – Biogas, Landfill Gas, and Digesters Structuring
Methane is over 25 times more potent than carbon dioxide on a 100-year basis. Capturing and utilising or flaring this gas at landfills, wastewater facilities, and livestock operations delivers immediate climate benefit and creates verifiable emission reductions (VERs) or certified emission reductions (CERs). Our team combines technical due diligence, structured finance, and market access to monetise these reductions while optimising energy-recovery revenues.
Project Scope
• Landfill Gas-to-Energy:
Vertical and horizontal wellfields, blowers, and high-efficiency gensets or pipeline-quality RNG facilities.
• Anaerobic Digesters (Livestock & Agro-industrial):
Covered lagoons, CSTRs, UASBs, and associated biogas purification for heat, power, or RNG injection.
• Wastewater Treatment Gas Capture:
Primary sludge digesters with gas upgrading and grid injection or on-site CHP.
• Flaring-Only Projects:
Destruction of methane where energy off-take is not economically feasible, subject to methodology constraints.
Advisory Framework
1 | Feasibility & Baseline Assessment
• Gas-generation modelling, feedstock analysis, and business-as-usual emissions calculations in line with methodologies AMS-III.D, AMS-III.H, or AM0016.
2 | Capital Structuring
• Combination of senior project debt, subordinated loans, and sponsor equity tailored to off-take contracts and credit-issuance profile.
• Advance credit purchase agreements to enhance debt-service coverage.
3 | Engineering Oversight
• EPC tender evaluation, performance-guarantee negotiation, and construction-monitoring protocols.
4 | MRV & Certification
• Continuous flow-metering, gas-quality monitoring, and periodic third-party verification.
5 | Credit Monetisation
• Long-term offtake contracts with compliance or voluntary buyers; spot sales facilitated once issuance milestones are achieved.
Indicative Financial Parameters
| Metric | Landfill Gas | Livestock Digester |
|---|---|---|
| CapEx (USD / tCO 2 e reduced per year) | 15 – 35 | 25 – 50 |
| Annual Emission Reductions (tCO 2 e) | 40 000 – 120 000 | 10 000 – 45 000 |
| Forward Credit Price (Year 0, USD / t) | 8 – 12 | |
| Target Equity IRR | 13 % – 17 % | 14 % – 18 % |
Representative Capital Stack
| Tier | Security Package | Cost of Capital | Typical Providers |
|---|---|---|---|
| Senior Project Debt | Pledge over plant assets and energy-offtake contracts | SOFR + 275 – 350 bps | Infrastructure lenders, multilateral banks |
| Subordinated Loan | Second-ranking charge; cash-sweep covenant | SOFR + 475 – 625 bps | Private credit funds |
| Advance Credit Purchase | Delivery contract with make-good provisions | Fixed price USD 9 / t | Compliance and voluntary buyers |
| Sponsor Equity | Residual cash flow | Target IRR 13 % – 18 % | Waste-management operators, project developers |
Stakeholder Benefits
- Facility Owners: Diversified revenue combining energy sales and carbon-credit income.
- Credit Purchasers: Access to high-integrity avoidance credits aligned with methane-pledge objectives.
- Investors: Predictable cash flows supported by contracted energy off-take and credit offtakes.
- Communities: Odour reduction, improved local air quality, and employment opportunities.
Engagement
Stakeholders evaluating a methane-capture initiative are invited to connect with our advisory team for a confidential discussion regarding feasibility assessments, financing structures, and long-term project governance.
This document has been prepared solely for informational purposes. It does not constitute investment advice and should not be regarded as an offer to buy or sell any security, financial instrument, or service. Independent professional guidance is recommended before acting on any information contained herein.
