Carbon Intensity FAQ
Frequently Asked Questions About Carbon Intensity
Questions about Carbon Intensity
Here are some of the frequently asked questions we have been receiving from growers, farmers, dealers and customers across the country… and we wanted to make sure we share this information with you!
Carbon Intensity 101
What is Carbon Intensity? And what is a Carbon Intensity Score?
Carbon intensity is the amount of energy that goes into every unit or every bushel of grain. The fertilizer, diesel fuel, and pesticides are just some of the inputs that go towards a Carbon Intensity Score.
Why is Carbon Intensity important?
As farmers, we are part of the carbon footprint of the biofuel company or whoever we’re selling our grain to but ultimately that grain buyer needs to know the carbon footprint coming from us on the farm and we can tell them that carbon footprint via the carbon intensity score. This acts as unified unit of measurement.
What is MMRV?
This is Continuum. We are working to measure, monitor, report, and verify the carbon impact of our customers via a Carbon Intensity Score.
What is the GREET Model?
Created by the Department of Energy, this tool is the baseline used to measure Carbon Intensity.
What is TopSoil?
A system based on the GREET model that Continuum developed to make getting your Carbon Intensity score as easy as possible. Make an account and fill out the information about your farming production to get a score in as little as 10 minutes!
What is considered a good CI Score?
You want your Carbon Intensity (CI) Score to be as low as possible, with the goal of staying below the National Average of 29.1 to align with environmentally conscious practices.
Carbon Intensity (CI) Scores
How can I ensure the certification of my CI score?
We collaborate with a third-party verifier who ensures that your grain receives a certified stamp of approval, confirming its actual low CI score and surpassing the default number of 29.1.
How can I determine the value of my CI score?
The value is derived from the reduction in carbon intensity points. Each point lowered is approximately worth 0.054 cents per bushel. A free profile on TopSoil.Ag provides access to the CI calculator for precise calculations.
Is it necessary to obtain a new CI score and verification every year?
Yes, several factors of the score change annually. We are currently developing a verification process that streamlines bulk certification during the summer, ensuring a swift and straightforward approval as harvest approaches.
What is the cost of obtaining a personalized CI Score?
The cost is $500.00 and can be obtained by creating an account on TopSoil.Ag, with potential discounts during the Billion Bushell Challenge. There is an additional per-acre fee for score verification.
Does practicing sustainable farming automatically qualify you for carbon programs?
While sustainable practices are commendable, automatic eligibility for carbon programs may not occur without specific practice changes. Nevertheless, carbon credits can be more profitable, as manufacturers prefer crops with high yields and minimal fertilizer use. Sharing your data remains crucial for producers, and having a low carbon intensity score is highly beneficial.
Where did the national average CI score of 29.1 come from?
That number comes from the Argon National Lab. They developed the GREET model which is an analytical tool that simulates the energy use and emissions output of various vehicle and fuel combinations. The carbon intensity score is a unit of measure to standardize all these different types of fuels and energy.
Why should you know your CI Score?
The big drivers here are these new 45 Z tax credits and other low-carbon fuel initiatives like California. Farmers should also pay attention to biofuels and ethanol plants. Farmers need to understand their score because our score is part of that ethanol score.
There are the emerging 45Z tax credits and other initiatives promoting low-carbon fuels, such as those in California. Farmers must stay up to date on developments in biofuels and ethanol plants. Understanding their scores is crucial, as these scores play a pivotal role in shaping the overall ethanol score.
What is the process of getting a verified Carbon Intensity (CI) Score?
Step one would be getting your score from Topsoil.Ag.
If the 45Z tax credit is going to the ethanol plants, how do farmers get paid?
If the crop has a lower carbon intensity score it will be worth more than if it had a higher score. Therefore you can sell your crop for more.
High Demand for Low CI Grain
What does section 45Z enable?
45Z enables biofuel companies to use scope 3 reductions to decrease their carbon impact, earning credits based on the points by which they lower their score.
Are there existing markets for low-carbon products?
Yes, there is a growing demand for sustainability and low carbon products. Today’s awareness encourages people to prefer products that are produced responsibly and are healthy for the planet.
Why should farmers team up to achieve a low CI score for their grain?
Farmers are motivated to lower their CI scores by the prospect of 45Z Tax credits, which increase the value of their crops due to their low carbon biofuel content.
What are the average CI scores for gasoline and ethanol?
Gasoline has a score of 100, while ethanol has a score of 55.
What makes low CI grains particularly exciting?
Low CI grains are crucial in various supply chains, including those for fuel and food. Many companies aim for low carbon footprint goals, driving the demand for low-carbon crops from farms.
What role do CO2 pipelines play in carbon intensity?
Installing a CO2 pipeline can reduce the carbon intensity score by approximately 30 points. However, the adoption of pipelines may not become widespread soon, as some companies, like Navigator, have withdrawn, and others aren’t expected to join until 2026.
45Z Tax Credit for Low Carbon Farming Practices
Can all farmers benefit from low-carbon intensity crops?
Absolutely! Whether your farm is small or large, technologically advanced or not, everyone will be required to provide data. Knowing your score empowers you to set prices rather than accepting them passively, ensuring that all farmers can take advantage of low-carbon intensity crops.
Why is collaboration between farmers and biofuel producers crucial for lowering CI scores?
Biofuel companies rely on low CI crops from farmers to earn credits, while farmers depend on these credits to reduce their scores. The collaboration between the two is essential, as they complement each other in achieving their respective goals.
Who developed 45Z?
45Z is a federal tax credit designed for low-carbon transportation biofuel. To qualify, manufacturers must maintain a carbon intensity score below 50, and each point reduction earns an additional $0.02.
CI Certification - Process of Certifying CI Scores
What is the process for obtaining CI Certification?
We charge $5 per acre, guiding you through the implementation of your agronomic plan. This involves documenting field-by-field activities, and incorporating supporting documentation such as shape files and receipts. After starting with a survey, you must provide proof at the end of the harvest. The following year, we submit this information to our third-party verifier at no extra cost. The verifier conducts bulk verification for all farms, and we work in collaboration with the ethanol plant to ensure your grain receives its rightful value.
How does the CI certification process work?
Once you get your CI score, you can enroll in the CI certification process. A dedicated representative will develop a customized plan for your crops, ensuring easy assessment of your CI score with flexibility for adjustments. To validate your score, we utilize documentation and involve external verifiers who certify the accuracy of your provided data.