What business is Viroment in? We are asked this all the time.
Until 3 weeks ago we assumed we were in the real estate business with these 15-yr NNN cash flowing leases.
Or could it be the real-time manure processing business and creation of pellets business literally making truck loads of extra cash flow increasing the bottom line margins by several fold.
What if I told you Viroment facilities are able to be metered, recorded and validated for greenhouse gas emission reductions?
Recently, Viroment found out we are likely eligible to secure and sell carbon tax credits.
The carbon footprint is massive for agriculture. We knew liquid manure was easy to smell but what really is that smell?
Those “farm” smells you are enjoying on those country drives are greenhouse gas emissions as a result of liquified storage pits and lagoons gassing off. In other words, these storage pits and lagoons are open air ANAEROBIC DIGESTER loaded with VOLATILE ACIDS and VOLATILE SOLIDS in an environment loaded with BACTERIA and WATER.
The only part of the equation that is left is TIME.
Viroment’s real-time manure processing reduces the time off-gassing by up to 97% when compared to existing traditional facilities.
All Viroment facilities moving forward will be filled with metering equipment to measure the volatile acids and solids leading into our unique real-time manure processing room.
The first step in the process actually kills all the BACTERIA, viruses and pathogens subtracting the equation of one very key component.
During the second stage WATER is removed resulting in a dry pellet containing those VOLATILE ACIDS and VOLATILE SOLIDS (including those dead bacteria)
The only thing left to do is sequester those pellets by air-injection beneath the dirt surface on nearby farm land resulting in the end of the TIME component in the equation.
Now for the details...
Metering the incoming and outgoing liquid for the volatile solids will be tracked by a Life-Cycle Assessment (LCA) License professional. The LCA firm works in conjunction with the CPA firm specializing in 45Q carbon credits. These carbon credits will be given serial numbers for each metric ton.
The interesting thing about 45Q carbon credits is that they are the only IRS tax credit that is transferable, or better said, able to be marketed to third parties.
So what are the next steps?
Viroment is in the process of having one of the top-tier environmental tax attorney firms in the world validate the process with an opinion. The opinion is useful in selling the future credits to be earned to third parties. In other words, with the professional opinion the credits are significantly more valuable to buyers.
As luck would have it we already have an interested party For any and all future carbon credits produced. It just so happens to be our bank providing the loans. They are the fifth largest bank in the world and want to consider a partnership immediately.
It is our estimation that we will have nearly 200,000 metric tons of carbon credits per facility per year. That’s 1.6 million metric tons in total for the eight facilities.
In closing, remember that we are in the process validating all of this with written documentation by third-party professionals. We’ve received verbal confirmation that we’re on track and eligible. In fact, the only thing that we were missing was that we were not counting for a double dip with those same credits for the California carbon credit program.
This is what we know right now. We have meetings with the tax accounting firm early this week and over the next couple of weeks we will work our best validate the process and validation for earning and selling the carbon credits.
What business is Viroment in?
Viroment is in the business of data collection.