Charm Industrial, a climate tech company specializing in biomass carbon dioxide removal (CDR), launched the Ledger, a comprehensive monitoring and verification system created to guarantee transparency and compliance with market rules in carbon removal projects.
The company recently shared a deep dive into their Ledger system, highlighting the best practices and common mistakes from their experience and sharing their know-how to help others that might be working on their own MRV approach.
The Charm CO2 removal method uses biomass leftovers to produce bio-oil that is high in carbon content via a process of fast pyrolysis. The oil gets injected into EPA-regulated wells, where it solidifies and is stored for thousands of years.
Realizing the common struggle CDR suppliers face when it comes to reporting their removal efforts and having them verified by a third party without a conflict of interest steming from financing, Charm laid out the solution they incorporated into Ledger, in partnership with carbon registry Isometric.
The Ledger system was designed to validate accuracy and conservatism, proving that every CDR credit issued by Charm is equal to at least 1 tonne of permanently sequestered carbon.
It also guarantees transparency and auditability, where every tonne of sequestered carbon emissions is verified by an independently selected verifier and made public on the Charm Ledger and Isometric Registry.
Lastly, the Ledger system stands for Flexibility & Modularity, as it uses a generic data model compatible with all types of emission-generating activities while simultaneously allowing integration with different operational systems, exposing its own data collection tools and APIs.
The system operates in three stages: Data Collection & Measurement, Emissions Modeling & Allocation, and Reporting & Insights.
During the data collection and measurement phase, which happens as the bio oil moves through different operations, the Ledger gathers both structured and unstructured raw data, including information obtained from technology as well as data collected manually by people.
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If any of the operations in the supply chain should change, Charm puts together a cross-functional team that determines which dataset needs to be collected and how in regard to the change, making sure it aligns with protocol requirements. This optimization ensures the validity of operations as the processes continue to evolve.
The Emissions Modeling & Allocation phase is where the attribution happens, a key element of the Ledger system. In this process, when calculating the net CDR from their activities, the company accounts for the emissions related to the production and transportation of every truckload of bio-oil that is injected by them.
To do this, Charm uses a number of different frontline systems, like Supervisory Control and Data Acquisition (SCADA) for pyrolysis management, Airbase for invoice tracking, manually collected truck scale tickets, and email updates on railcar positioning.
Keeping track of the bio-oil movement, the Ledger backend calculates emissions generated by each railcar and truck trip and propagates emissions based on the physical movement of oil.
This demanding process, powered by the company’s software and operations teams, ensures transparency and credibility in the carbon credits generated by Charm.
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In the Reporting, Insights, & Registry Integration stage, the Ledger shares the collected data via the Isometric API to the Isometric dMRV system, followed by the creation of the GHG Statement Report.
Having put together this elaborate functional system for verifying CDR activities, the Charm team also shared what they consider the most valuable takeaways from their experience working with the Ledger MRV system.
For starters, they emphasize that the success of the MRV process depends on every person involved in tracking removals. In the case of Charm, various teams come together, providing vital information about every step of the operations.
Secondly, Charm points out that people, processes, and software need to function together symbiotically. The tracking technology needs to function well with the frontline operators, while the operators need to be prepared and equipped on how to collect MRV data.
Lastly, the company recommends constructing a simplified MRV process based on the specific data required for verification rather than focusing on granular details that are complex and ultimately obsolete.
Going forward, Charm will focus on advancing the MRV capabilities of the Ledger system as they look into various reporting integration opportunities on the market.
The company is also working on providing its customers with an extra layer of transparency when it comes to company operations, something they hope they will be able to deliver in collaboration with various partners.
