The transportation industry accounts for 28% of all US emissions.
Currently adopted in California, the Low Carbon Fuel Standard (LCFS) is a program, similar to those programs in Oregon, Washington and Canada, designed to reduce greenhouse gas (GHG) emissions from transportation fuels using a market-based mechanism that caps the carbon intensity (CI) of fuels. Each year, States update their emissions baseline to move towards their decarbonization goals. Fuels below the annual target generate LCFS credits, equal to one metric ton of avoided GHG emissions.
EV charging stations can generate LCFS credits based on the amount of energy they deliver to electric vehicles and the carbon intensity of the electricity used. If the electricity comes from renewable sources, like wind or solar, it has a lower carbon intensity which generates more LCFS credits. The owner of charging stations can designate who owns the LCFS credits.
Additional credits can be generated by “pairing” 1 MWh of Renewable Electricity Certificates (RECs) with 1 MWh of electricity used to charge vehicles. The amount of additional credits changes over time as the reference CI comes down.
Enhancing Revenue and ROI
- Monetize LCFS Performance
Leverage the LCFS credit and renewable electricity (REC) “pairing” opportunity by procuring at a market index-based pricing. STX nets all fees so your cashflow remains positive and we transact when it is profitable for you. - EV Charging Tax Credits
Recover up to 30% of project costs by selling tax credits to another entity, based on the Inflation Reduction Act’s (IRA) 30C tax credit that is granted for (designing and installing) EV charging infrastructure.
Minimizing Exposure and Liabilities
- Financing and Pre-Payment
Obtain financing for new construction, existing portfolios, or secure prepayment for LCFS credit generation. STX will work to leverage your future LCFS generation to secure capital today. STX specializes in valuing environmental commodities more competitively than traditional financiers. - Risk Mitigation
Optimize quarterly renewable electricity procurement and lock in revenue with expert guidance, even if the market moves against you. Benefit from our extensive expertise in these markets to navigate the complexities of LCFS credits and LCFS RECs, as efficiently as possible.
Why STX?
With 20+ years in the environmental commodities markets, STX Group can serve as a guide throughout the entire LCFS credit monetization and optimization process. From financing new project development to assessing charging data and renewable energy matching to enhancing procurement, STX Group can be your partner to guide you as this market continues to develop and state LCFS targets continue to decrease.
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