Public Commentary: The information below outlines FG Capital’s approach to high-GWP industrial-gas destruction projects. It is provided for general informational purposes only and does not constitute investment advice or a solicitation.
SF₆ & HFC Projects – Industrial Emissions-Destruction Structuring
Sulphur hexafluoride (SF₆) and specific hydrofluorocarbons (for example, HFC-23) possess global-warming potentials in excess of 14,000 and 12,000 respectively. Capturing and irreversibly destroying these gases through plasma arc or high-temperature thermal oxidation prevents decades of climate impact while generating certified emission reductions (CERs / VERs). FG Capital provides integrated structuring, capital mobilisation, and market-access services that convert environmental compliance into dependable revenue streams.
Project Scope
• SF₆ Recovery & Destruction:
Capture from electrical-switchgear maintenance and magnesium casting operations, followed by plasma arc abatement.
• HFC-23 Oxidation:
By-product capture from HCFC-22 production facilities with catalytic or thermal destruction units.
• HFC Refrigerant Lifecycle Management:
Collection, reclamation, and end-of-life incineration of mixed refrigerant streams.
• Process Control & Monitoring:
Real-time gas-flow metering, continuous-emission monitoring systems (CEMS), and secure data archiving.
Advisory Framework
1 | Baseline Validation
• Mass-balance modelling and historical production records establish business-as-usual emissions.
• Alignment with methodologies such as CDM AM0001 (HFC-23) and AM0003 (SF₆).
2 | Capital Structuring
• Build-own-operate special-purpose vehicle, long-term feedstock agreements, and fixed-price maintenance contracts.
• Advance credit purchase agreements to enhance debt coverage ratios.
3 | Engineering Oversight
• Technology-vendor due diligence, process-safety reviews, and environmental permitting.
• Commissioning tests verifying destruction efficiency above 99.99 %.
4 | MRV & Certification
• Continuous monitoring of gas inflow, stack emissions, and thermal-oxidiser parameters.
• Annual third-party audits leading to credit issuance on recognised registries.
5 | Credit Monetisation
• Long-term offtake contracts with compliance-oriented buyers.
• Spot trading support to capture price upside once delivery history is established.
Indicative Financial Parameters
| Metric | Typical Range |
|---|---|
| CapEx (USD per kg annual destruction capacity) | 55 – 85 |
| Emission Reductions (tCO 2 e per kg gas destroyed) | 12 – 15 ×10³ (SF₆) / 11 – 13 ×10³ (HFC-23) |
| Forward Credit Price (Year 0, USD / t) | 8 – 12 |
| Target Equity IRR (post-tax) | 15 % – 19 % |
Representative Capital Stack
| Tier | Security Package | Cost of Capital | Typical Providers |
|---|---|---|---|
| Senior Project Debt | Pledge over plant assets and feedstock contracts | SOFR + 275 – 350 bps | Infrastructure credit funds, multilateral lenders |
| Subordinated Loan | Second-ranking charge; cash-sweep covenant | SOFR + 475 – 625 bps | Private credit investors |
| Advance Credit Purchase | Delivery contract; make-good provisions | Fixed price USD 10 / t | Compliance-oriented corporates |
| Sponsor Equity | Residual cash flow | Target IRR 15 % – 19 % | Industrial gas producers, specialist operators |
Stakeholder Benefits
- Industrial Operators: Structured compliance solution that converts liability into revenue.
- Credit Purchasers: Access to high-integrity avoidance credits with transparent chain-of-custody.
- Investors: Predictable cash flows underpinned by long-term feedstock agreements and credit offtakes.
- Communities: Reduced fugitive-gas risk and alignment with global climate-mitigation objectives.
Engagement
Organisations considering an SF₆ or HFC-destruction 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 interpreted 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.
