Editor’s Note: This is the first part of our “CI Essentials: FAQ’s From The Field” series, authored by incite.ag’s Ag Services Manager, Ross Cady. Ross is an Illinois farm kid and seasoned agricultural professional, but joining incite.ag is his first boots-on-the-ground exposure to carbon intensity. During his first few months in the CI scoring world, he has compiled the most frequently asked questions and key topics that both he and any newcomer to CI scoring and low-carbon credits need to know. In this installment, Ross covers essential insights that are crucial for anyone looking to navigate the complexities of CI scoring and maximize their opportunities in the low-carbon marketplace and is tailored to a new entry trying to understand the 101 conversation around CI scoring in an easily digestible format.
FAQ From the Field #1:
What are the primary drivers behind a CI score for a biofuel producer?
The Carbon Intensity (CI) score is a key metric used to assess the greenhouse gas emissions associated with the production and use of a fuel or feedstock. For both biofuel producers and feedstock producers, the CI score is influenced by several factors that reflect the lifecycle emissions from production to consumption. Here's a breakdown of the primary drivers for each:
Carbon Intensity Score for a Biofuel Producer:
The CI score for a biofuel producer is determined by the total greenhouse gas emissions across the entire lifecycle of the biofuel, from the feedstock production to the biofuel being ready for use. The primary drivers include:
Feedstock Production:
- Type of Feedstock:
Different feedstocks (e.g., corn, soybeans, waste materials) have varying carbon footprints. For example, waste-based feedstocks generally have lower CI scores compared to crop-based ones. - Fertilizer Use:
The type and amount of fertilizer used in growing the feedstock can significantly impact the CI score, as fertilizer production and application release greenhouse gases (GHGs). - Agricultural Practices:
Conservation and/or Climate Smart Agriculture (CSA) practices such as reduced tillage, crop rotation, and cover cropping can lower emissions. Conversely, conventional practices that disturb the soil more can increase emissions.
Feedstock Transport:
- Distance and Mode of Transportation:
The distance the feedstock must travel to reach the biofuel production facility and the mode of transportation (e.g., truck, rail, barge) contribute to the CI score. Longer distances and less efficient modes increase emissions.
Biofuel Production Process:
- Energy Source:
The type of energy used in the biofuel production process is a significant factor. Facilities that use more carbon-free generation sources (nuclear, wind, solar) will produce lower carbon emissions for the plant, than facilities using coal and natural gas for their generation sources. - Process Efficiency:
The efficiency of the biofuel conversion process (e.g., fermentation, distillation) also impacts the CI score. More efficient processes that require less energy and produce fewer byproducts result in lower emissions.
Co-products and By-products:
- Co-product Allocation:
If the biofuel production process also generates co-products (e.g., distillers grains from ethanol production), the emissions can be allocated between the fuel and the co-products, potentially lowering the CI score of the biofuel. - Carbon Capture and Storage (CCS):
If the facility captures and stores CO₂ emissions (e.g., through CCS technology), this can significantly reduce the CI score.
End-Use Emissions:
- Combustion:
The emissions produced when the biofuel is combusted in a vehicle or other engine are factored into the CI score. However, biofuels generally produce fewer tailpipe emissions compared to fossil fuels, helping to lower the overall CI score.
Implications for Producers:
- Biofuel Producers:
To reduce their CI score, biofuel producers can focus on using lower-carbon feedstocks, improving process efficiency, incorporating renewable energy, and implementing carbon capture technologies.
Lower CI scores are advantageous because they will make the resulting biofuel more competitive in markets that value low-carbon fuels, such as those governed by the Low Carbon Fuel Standard (LCFS) in California or the Clean Fuel Standard in Canada. Additionally, lower CI scores can result in higher credit values under programs like the Clean Fuel Production Credit (45Z) in the U.S.
FAQ From the Field #2:
What are the key elements of a Carbon Intensity Score for a Corn Producer?
The CI score for a corn producer focuses on the GHG emissions associated with the agricultural production of corn, which is often a feedstock for biofuel production. Corn CI is synonymous with carbon footprint. It has a particular emphasis on efficiency per unit of output, and when we’re trying to simplify the conversation for producers, it's an efficiency metric. Input vs output. How many emissions went into production of a bushel across its lifecycle and what was the final yield. And the more you can limit inputs or maximize output, the better your score will be. With that in mind, the primary elements of corn CI include:
Yield:
- Crop Yield:
Higher yields per acre can dilute the emissions associated with production, resulting in a lower CI score per unit of corn produced. Practices that increase yield without significantly increasing inputs or emissions are beneficial for lowering CI scores.
Fertilizer Use:
- Type and Amount:
The use of nitrogen-based fertilizers contributes significantly to GHG emissions, particularly nitrous oxide (N₂O), which has a much higher global warming potential than CO₂. Efficient fertilizer use or the application of organic fertilizers can reduce these emissions.
Soil Management and Conservation Practices:
- Tillage Practices:
Conventional tillage increases soil disturbance, leading to higher CO₂ emissions. Reduced tillage or no-till practices help retain carbon in the soil, lowering the CI score.
- Cover Cropping:
The use of cover crops can sequester carbon and reduce the need for synthetic fertilizers, which lowers the CI score.
These production practices, paired with field location, contribute to the amount of soil organic carbon (SOC) that is either sequestered or lost. One of the biggest contributors of corn CI (over 45% in this default scenario) is the amount of nitrous oxide (N2O) produced from farming. N2O is produced from using nitrogen fertilizers, leftover biomass in the field, and from natural processes of nitrogen conversion within the soil. The climate for the growing season heavily influences the amount of N2O production.
Implications for Producers:
- Corn Producers:
Corn producers can lower their CI score by adopting sustainable agricultural practices, optimizing fertilizer use, reducing tillage, and improving energy efficiency on the farm. These practices not only lower emissions but can also improve soil health and long-term productivity. And in the event of a monetizable IRA 45Z credit that recognizes corn CI and on farm climate smart agriculture (CSA) practices, corn producers can bring a 10-20 point CI advantage to the gallons of ethanol their corn is ground into.
As we dive into the essentials of CI scoring, it's clear that understanding the primary drivers behind a CI score is crucial for both biofuel and corn producers. Whether it's optimizing feedstock production, improving process efficiency, or adopting sustainable agricultural practices, these insights provide a foundation for maximizing opportunities in the low-carbon marketplace.
Stay tuned for future installments of this series, where we'll continue to explore the pressing questions and key topics that every producer needs to know. If you're interested in learning more about CI scoring, low-carbon credits, or how incite.ag can support your CI reduction journey, don't hesitate to reach out.
You can connect with Ross Cady directly through the information below:
Ross Cady
Agricultural Services Manager
Incite.ag
ross@incite.ag
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Incite.ag guides producers across the agricultural supply chain to Turn Emissions into Income. Incite.ag’s CI scoring system unlocks novel revenue streams and empowers producers to take control of their unique CI Scores. Learn more by hitting the link below or reach out to the team directly at success@incite.ag or 815.373.0177.