Inclusive Energy Pioneers Digital Carbon Credits with Leading Consortium
SNV, 4R Digital, Inclusive Energy, GIZ, Sistema.bio and African Bioenergy Partnership Limited (ABPL) have kicked off a new project funded by Netherlands Enterprise Agency under the African Biodigester Component (ABC). The project will test the use of Smart Biogas meters to capture data and sell carbon credits with digital carbon trading platform ‘Cavex’ through real life field testing with residential- and medium-sized biodigesters in Kenya.
The use of biogas and bioslurry (nutrient-rich fertilizer) as products from biodigesters have significant potential to displace and reduce carbon emissions. The high cost of the technology poses a barrier to scale uptake among smallholder and commercial farmers in low and lower-middle-income countries. Carbon financing can be utilised to subsidise capital and operational costs, contributing to access to finance, and ultimately to scale the distribution of biodigesters. Unfortunately, the accreditation, verification, and selling of carbon credits requires significant resources and expertise, which most carbon credit producers, including (small-scale) biodigester suppliers, do not have.
The Carbon Value Exchange (Cavex) is a digital market and payments platform developed by 4R Digital and is set to revolutionise the voluntary carbon market by allowing small producers of carbon credits such as farmers and small businesses to sell directly to corporate buyers. The platform is designed to capture real-time data from remote meter devices and calculate how much carbon is being displaced or removed as a result, ensuring full transparency around the credits. Inclusive Energy (IE) has developed Smart Biogas, a real-time monitoring system for biodigesters.
The project implemented by SNV, 4R Digital, Inclusive Energy and GIZ will seek to collect Smart Biogas meter data from at least 100 residential- and 20 medium-sized (>50m³) biodigester systems in Kenya and integrate this data with the Cavex platform. Field testing will be done with both fixed dome and prefabricated systems supplied by ABPL and Sistema.bio.
Within the scope of this pilot, the consortia will develop a methodology and data protocol for converting smart meter data into verified offset credits for sale and determine the potential opportunity in carbon financing for metered biogas users. In addition, the pilot seeks to develop a route to market that meets the needs of all stakeholders and ultimately help improve the business case for residential and medium-scale biodigester systems through carbon valorisation for investors in the technology, with important learnings and proof of concept beyond this pilot.
The pilot will closely align with the ABC programme in Kenya which is implemented by GIZ, SNV and ABPL and seeks to achieve a sustainable, stable and growing biodigester market that significantly contributes to achieving national sustainable agricultural production, energy access and climate targets. ABC is part of the Strengthening the Entrepreneurial Ecosystem for Clean Cooking programme.
For more information about the project, please reach out to Karlijn Groen: karlijngroen@snv.org.
For more information about Smart Biogas, contact us.
Photo Credit: Dutch Enterprise Agency
