Categories
Carbon News

Tesla Carbon Credit Sales Jump by 116%

Tesla has been criticized for its previous years’ earnings being dependent on the sales of its carbon credits. These credit sales have been a

major driver of Tesla’s profits over the years.

But since it separated reporting its regulatory credits from other sales, it showed that it’s profitable.

The carmaker revealed a big jump in its net income in its latest quarterly report. This is a plus for the company’s reputation as it managed to exceed Wall Street’s estimates. And this is amid the worst supply chain shocks hitting the entire industry right now.

Tesla’s profits on electric vehicles totaled $3.22 a share, beating the $2.27 estimates. Also, actual revenue rose to $18.8 billion, higher than $17.9 billion estimates.

Most interesting is its $679 million carbon credit sales. It’s more than double the prior quarter’s sales of $314 million and is even much higher than its Q1 2021 sales ($518 million). Its Q2 2021 and Q3 2021 credit sales are $354 million and $279 million, respectively.

The chart below shows Tesla’s regulatory credit sales since Q1 2021.

Tesla’s regulatory carbon credit sales account for over 20% of its profits this quarter.

Tesla has warned that carbon credit sales in the future will fluctuate and decline.

Tesla’s Regulatory Carbon Credit Performance

Tesla has earned billions already through its regulatory carbon credit sales. This allows other automakers to meet emissions regulations and avoid billions in fines.

Tesla has been receiving emissions credits from various local regulations sources like California’s ZEV program. These credits are then sold which helps the company’s bottom line.

Tesla has been getting paid by other carmakers for selling its carbon credits for years whose names used to be a secret.

But a report from Bloomberg revealed two famous names. These are General Motors and Fiat Chrysler Automobiles (FCA). About how much exactly they’re buying, it’s between them and Tesla.

So far, it’s only Tesla that’s selling a lot of regulatory credits within the industry. Others even speculated that Volkswagen is also buying credits from Tesla to offset its huge emissions credit shortage in China. While others are striving to be at par with Tesla’s all-electric car production.

What Comes Next For Tesla’s Regulatory Carbon Credits?

Governments are tightening up their regulations to decarbonize the automotive industry. This is because of the urgent need to tackle climate change and the industry’s huge emissions.

In a sense, this seems to drive Tesla’s carbon credit sales further up in the coming years. Plus, the company remains the most-valuable zero-emissions vehicle (ZEV) maker by volume.

Unfortunately, other major automakers are also catching up on their own ZEVs programs. It means that they will rely less on Tesla in meeting the regulatory carbon credit cap.

For instance, Europe’s Stellantis that owns FCA (once Tesla’s biggest buyer of carbon credits) planned to sell more of its own ZEVs.

In fact, it had significant emissions reductions in 2021 with its electrification ramp-up. This involves its battery electric vehicles and low emission vehicle programs.

The European carmaker also pledged to reach net-zero by 2038 through various measures. These include energy efficiency, renewable energies, technological innovations, and carbon capture and storage.

Considering this, it appears that Tesla has to continue its efforts to have more deliveries to its customers and do better in reducing costs.

Still, will Tesla’s carbon reduction initiatives produce more regulatory carbon credits?

Tesla’s Net-Zero Strategy

Tesla’s all-electric car lineup has been helping cut down emissions in the industry. This is a big part of Tesla’s mission to speed up the transition to a sustainable energy ecosystem.

Yet, the carmaker remains less transparent of its decarbonization strategies. It still has not made any public commitment on net-zero or carbon-negative targets.

What is only shared so far is its plans to make EVs more available to consumers by using profits from new models to make subsequent models less costly.

Currently, the carmaker is providing energy generation and storage products using solar power. It also has a network of Supercharger stations for EVs across North America, Europe and Asia. These contribute to Tesla’s regulatory carbon credit generation.

But for its clear and detailed net-zero roadmap like Stellantis has, the public is still waiting for Tesla’s disclosure.

Source: https://carboncredits.com/tesla-regulatory-carbon-credit-sales-jumps-116/

Categories
Carbon News

WINT Launches Solution to Cut Water-Related Carbon Emissions in Buildings

WINT provides water management and leak-prevention solutions to businesses by using AI and IoT. It caters to commercial facilities, construction sites, and industrial manufacturers.

Its solutions are particularly designed to cut carbon emissions, water waste, and water leakage.

Data-Based Application That Cuts Water-Related Carbon Emissions

WINT’s new app will aid firms to reduce their GHG emissions related to water use in buildings.

The new app gives owners, contractors, and managers vital data to track the CO2 impact of their water use. This water-waste and carbon tracking solution goes with WINT’s advanced analytics.

The resulting tool enables users to address water inefficiencies and decrease water waste. Better yet, it limits the negative impact of water supply on the environment.

The launch of this new carbon tracking app is so timely as the world is in a tight battle over climate change.

Companies across the globe have pledged their goals to be carbon net-zero by 2050. Big reductions in CO2 emissions are a must to avoid the worst effects of global warming.

Also, the Securities and Exchange Commission recently released its new rule requiring firms to disclose their GHG emissions.

WINT’s carbon-tracking app allows businesses to manage their water-related carbon emissions. It will also enable them to give stakeholders detailed information about those emissions.

The Need for Buildings to Reduce C02 Emissions

Studies show that there are 60 to 120 pounds of carbon emitted for every 1,000 gallons of water used. This translates to about 7-15 kg for each cubic meter of water.

Moreover, buildings are a primary source of water waste and CO2 emissions. In fact, the building sector contributes a total of 39% (28%+11%) of the annual global CO2 emissions.

The pie chart below represents global CO2 emissions by sector in 2020.

Source: International Energy AgencyAs for its water-related carbon emissions, the building sector also contributes a lot.

For instance, a leaking toilet is approximately losing 1 million gallons of water a year. This results in around 4.5 tons of GHG emissions, which is close to a passenger car’s annual emissions.

Now, research suggests that almost 25% of water in buildings goes to waste. This involves all types of buildings (commercial, residential, and industrial). In this case, the global impact of water-related carbon emissions is so huge.

Water waste can be due to leaks, malfunctions, outdated infrastructure, and human errors.

According to WINT’s chief strategy officer, Yaron Dycan,

“Waste and inefficiency in water supply systems are so significant… But they are often an overlooked source of CO2 emissions.”

Hence, WINT’s data-based tool provides real-time alerts to tackle water inefficiencies and wastes. It does so by integrating the firm’s IoT water-flow analysis devices. It can even shut off water supplies automatically if needed.

As such, it can help owners, developers, and facility managers to cut their water use. And thus, they can also reduce carbon footprint by about 20% – 25%.

The company said that its innovative carbon reporting tool is the first of its kind. And by allowing users to pinpoint waste and keep track of water-related emissions, WINT’s new tool can help meet their carbon goals.

Source: https://carboncredits.com/wint-launches-solution-cut-water-related-carbon-emissions/

Categories
Carbon News

Air Company Raises $30M to Ramp Up its Carbon Conversion Technology

The money lining up to fund early-stage carbon removal technologies is adding up so fast. After the giant tech companies revealed their almost $1 billion fund for carbon removal startups, millions of capital came rushing in.

But what is more interesting is the value created in capturing CO2 and converting it into a product. Just like what Air Company is doing that attracted $30 million capital investment.

Carbon Direct Capital Management led the round along with other venture capital firms. These include Toyota Ventures, JetBlue Technology Ventures, and Parley for the Oceans.

How Air Company’s Carbon Conversion Technology Works

The startup makes carbon-negative alcohols and consumer products out of thin air. It does so through its proprietary technology that transforms CO2 into impurity-free alcohols.

The converted alcohol is then used to make a variety of consumer goods. Some of them are the famous ones like carbon-negative Air Vodka, Air Spray hand sanitizer, and Air Eau de Parfum.

The company is using only three key inputs to create its innovative products – air (CO2), water, and sun. It uses 9% solar energy for the conversion process and 91% wind energy to power its production.

Here’s how Air Company’s carbon conversion technology works:

With its pioneer carbon technology, Air Company made the world’s first alcoholic beverage directly from CO2, Air Vodka.

According to its CEO and Co-founder, Gregory Constantine,

“Our goal is to integrate our carbon technology into every applicable sector to help combat the climate catastrophe… We’ll do this by providing people with a beautiful range of products made from captured CO2.”

Air Company debuted in 2019 and started with its first factory in Brooklyn, New York.

Where Will The Funding Go?

The $30 million growth capital will be for building the Air Company’s third factory. This is to ramp up its carbon conversion technology and CO2-derived alcohol production.

This new state-of-the-art factory will be home for its new commercial-scale carbon technology. By far, it would be the biggest factory to date.

Such scaling up is also part of the firm’s plan to expand into the industrial and aerospace sectors. For instance, it has worked with NASA for space exploration in making sugars and proteins from its CO2-derived alcohols.

Air Company’s pioneering system seems capable of scaling up across industries. If so, its carbon conversion technology can help tackle up to 10.8% of global CO2 emissions. This is roughly more than 4.6 billion tons of CO2 removed and avoided each year.

By using captured carbon and replacing CO2 taken out the ground, Air Company aims to really have an impact in addressing climate change.

By far, Air Company is not the only carbon technology that focuses on how to use captured CO2 to make new products. There are a couple of others, too, recognized by Elon Musk’s $100 million Carbon Removal XPrize.

Examples include SkyNano that is using captured CO2 to make parts of tires and batteries. Another one is DyeCoo that uses reclaimed CO2 to dye textiles, avoiding the use of chemicals.

When these carbon tech startups mature, we can all expect to see a growing sector called “carbon to value”. This space presents a double blow of removing carbon while creating additional value.

And one way to create more value to carbon is by reusing it as an ingredient for materials like cement or consumer goods.

Source: https://carboncredits.com/air-company-carbon-conversion-technology/