Alaska Carbon Dioxide Storage Lease
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How to fill out Carbon Dioxide Storage Lease?
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FAQ
Farmers can sell carbon credits through carbon credits programs or directly to individuals or companies in a carbon credit exchange, that want to create a pool of the credits for reselling.
An acre of land used for carbon sequestration or other methodologies for reducing a carbon footprint generally removes 0.2 to 1.5 metric tons of carbon annually. Given that these CO2 reductions are worth $15 to $20 per metric ton, whoever owns that acre of land can expect payments of $3 to $30 per year per acre.
Landowners would enter a contract with a carbon developer and then adhere to the practices of the contract on their land. If the landowner follows through with those practices, then they receive monetary compensation based on the contract.
A landowner who provides land for carbon credits agrees to certain practices. These practices include not cutting down trees that store carbon, and using regenerative agriculture to increase carbon storage. Landowners can sell carbon offsets on what are called voluntary carbon markets.
Alaska has important competitive advantages for the development of a CCUS industry. The State owns the pore space used for storage under State lands, which allows leasing of large contiguous storage sites.
One way that carbon credits work is the creation of carbon offset projects, such as reforestation or even the development of sustainable aviation fuel (SAF). These projects are designed to reduce or remove carbon dioxide from the atmosphere, and the resulting credits can be bought and sold on the carbon market.
An acre of land used for carbon sequestration or other methodologies for reducing a carbon footprint generally removes 0.2 to 1.5 metric tons of carbon annually. Given that these CO2 reductions are worth $15 to $20 per metric ton, whoever owns that acre of land can expect payments of $3 to $30 per year per acre.
SB 48 establishes a statewide carbon offset program within the Department of Natural Resources (DNR). That means a business or entity that produces carbon dioxide can offset those emissions by buying credits generated by nature-based projects on State land.