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Carbon fund invests in California dairy


January 23, 2018, Portland, OR – Climate Trust Capital, a U.S.-based private investment fund, has closed on a carbon investment in the biogas sector –the Carlos Echeverria and Sons Dairy (CE&S) biogas project.

Approximately $1.12 million of Climate Trust Capital’s Fund I was invested in a covered lagoon digester that will destroy methane and produce carbon offsets under California’s cap and trade system.

The investment is based on the anticipated 10-year value of carbon credits from a livestock digester project located at the Carlos Echeverria and Sons Dairy, a large farm in California’s Central Valley. Project partner, California Bioenergy LLC (CalBio), has built three other dairy digester projects, including California’s largest, with three additional projects currently coming on line and many more scheduled for development. This project investment is expected to begin generating carbon offsets in January 2018 with initial cash flow from the sale of these offsets in 2019.

“Generating revenue from the sale of offsets through California’s cap and trade program is a complex process requiring a great deal of regulatory oversight to ensure the credits are real, additional, and permanent,” said Andrew Craig, director of greenhouse gas reduction initiatives for California Bioenergy. “We’re thankful to have partnered with some of the leading experts in the dairy digester industry, including The Climate Trust, who has been an invaluable asset to us and our dairy farmer partners.”

“The need for capital when building a livestock digester project is in strong alignment with Climate Trust Capital’s investment thesis of providing an early-stage investment to catalyze projects,” said Kristen Kleiman, director of investments for The Climate Trust. “Digesters improve the economic and environmental performance of dairies, provide clean energy, improve soil nutrient management, improve local air quality, and so much more. Quality digester projects will make up a sizeable portion of our investment portfolio, enabling the trust to keep an eye toward ensuring the best possible premiums from the sale of generated credits.”

The CE&S digester will treat the manure by covering manure lagoons with a flexible, high-density polyethylene cover. Captured methane will be stored and then combusted in a high-efficiency generator that delivers renewable electricity to Pacific Gas and Electric. In addition, the digester will be double lined and enhance ground-water protection. Effluent from the digester will be used to irrigate fields.