Public Commentary: The following overview reflects FG Capital’s approach to landfill-gas carbon-credit transactions. It is intended solely for informational purposes and does not constitute investment advice or a solicitation.
LFG Carbon Projects – Landfill Gas Recovery & Monetization Advisory
Uncontrolled landfill sites emit methane for decades after closure. Installing wellfields, blowers, and utilisation or destruction equipment captures this potent greenhouse gas, generating certified emission reductions (CERs / VERs) and, where feasible, renewable-energy revenues. Our advisory team provides end-to-end technical diligence, structured-finance solutions, and reliable credit placement to transform environmental liabilities into durable cash flows.
Project Scope
• Gas Collection Systems:
Vertical and horizontal wells, header piping, and condensate management.
• LFG-to-Energy Facilities:
High-efficiency reciprocating engines, micro-turbines, or boiler fuel substitution.
• Renewable Natural Gas (RNG):
Membrane, PSA, or water-wash upgrading for pipeline injection or CNG use.
• Enclosed Flares:
98-percent destruction efficiency where energy off-take is not economical.
• Monitoring Infrastructure:
Continuous gas-flow metering, composition analysers, and automated data logging.
Advisory Framework
1 | Feasibility & Baseline Analysis
• Gas-generation modelling (LandGEM or equivalent) and historic waste-in-place assessment.
• Baseline emissions established under methodologies AMS-III.D, AM0016, or ART Module 3.
2 | Capital Structuring
• Senior project debt, subordinated facilities, and sponsor equity balanced against electricity/RNG offtake and credit-issuance profile.
• Advance credit-purchase agreements to enhance debt-service coverage.
3 | Engineering Oversight
• EPC tender evaluation, gas-rights agreements, and construction-monitoring protocols.
4 | MRV & Certification
• Continuous flow and CH 4
-content monitoring; annual third-party verification.
5 | Credit Monetisation
• Long-term offtake contracts with compliance entities or voluntary buyers; spot sales facilitated after credit issuance.
Indicative Financial Parameters
| Metric | Electricity-Only | RNG Upgrade |
|---|---|---|
| CapEx (USD / tCO 2 e annual reduction) | 15 – 30 | 40 – 75 |
| Annual Emission Reductions (tCO 2 e) | 50 000 – 150 000 | 50 000 – 150 000 |
| Forward Credit Price (USD / t) | 8 – 12 | |
| Target Equity IRR (post-tax) | 12 % – 16 % | 14 % – 18 % |
Representative Capital Stack
| Tier | Security Package | Cost of Capital | Typical Providers |
|---|---|---|---|
| Senior Project Debt | Pledge over collection system, engines, and 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 buyers, corporate sustainability desks |
| Sponsor Equity | Residual cash flow | Target IRR 12 % – 18 % | Waste-management operators, project developers |
Stakeholder Benefits
- Waste-Management Operators: Diversified revenue through renewable-energy sales and carbon credits.
- Credit Purchasers: High-integrity avoidance credits aligned with methane-reduction pledges.
- Investors: Predictable cash flows underpinned by contracted offtake and credit sales.
- Communities: Reduced odour, controlled landfill fires, and enhanced environmental compliance.
Engagement
Stakeholders considering a landfill-gas capture initiative are encouraged to contact our advisory team. We would be pleased to discuss 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.
