Let's give you the punch lines first.

We are told by qualified 3rd parties the projects are: 

• Eligible and will secure 45Q IRS tax Credits

• Eligible for an additional Carbon Credit market
  
• Able to double-dip and take advantage of both programs above
  
• With some work and or adjustments we are "likely" to qualify for the California Low Carbon Fuel Standard program.
  
• We may be able to triple-dip all the above programs
  

Let's assign some values to these programs per metric ton of greenhouse gases so you know what we are talking about and where the most upside sits along with a brief explanation of each category:

45Q IRS tax Credits ( $37.00 today graduating to $50 / MT by 2026)

These are part of a fantastic program and we have hired a fairly large CPA firm to generate a validating report on the program as it specifically applies to our projects.  The expected time frame for completion of that report is 2 weeks.  

Additional Carbon Credit Market ($6.00 -20.00 / MT today) 

Let's call this the voluntary market or wild card market.  Some large companies will purchase the credits for social balancing while others have requirements (either internal or regulatory) they need to meet to offset their high carbon outputs.  As my accountant put it: "Oh, so they can buy a license to pollute?"  My response was, " are we not supposed to fly on airplanes anymore...give me a break!"  He agreed, but still insisted he was right.  Accountants!!!  (You can tell his comment didn't make me think about it..he told me this over a month ago and I am still not over it!)

California's Low Carbon Fuel Standard ($200.00 / MT today)

Considered the holy grail of carbon credits and the reason why most everyone in the industry is unfamiliar with the 45Q program where we started.  Everyone is going after this program and doesn't go after the 45Q where we started. 

The problem with this program is that a project needs to produce a fuel on-site and it needs to find its way to California unless it is in a gaseous form, then it can be placed into the grid that is connected to California from within a pipeline system.  In other words, only Methane being produced could help the project qualify.  

One needs fuel in order to be paid.  Think of it as if you are told you can come and get a massive load of PHYSICAL silver (even though actual silver hardly exists anymore - but that is another story) and they told you there is only one requirement, you need to pick it up in a CERTIFIED yellow dump truck or you are not eligible to come and get it.  Just because one doesn't have a Certified yellow dump truck means we are not mitigating greenhouse gases?  Well, that is how the law is written.

Well, if you can't beat'em then join'em. Time for considering a little pivot.  so you are telling me if we build a little digester on each site and convert the dry powder manure to methane, then we are in business?  Appears so.  We are in the process of working with some of the best firms to validate the most efficient way to accomplish this.  We are extremely confident this will be sorted out.  Digesters are not cheap, however, they are in comparison to how much revenue will be produced.  Some early figures have the digester payback as less than 1 xxxx ...I better not make a representation here but you can read through past posts on the values and fill in the obvious 4 letter word.  Let's wait for the numbers to come in from the Life-Cycle Analysis professionals that do this all the time.

So what else?

I don't even know where to begin on this topic because I don't want to give the roadmap away.  So I have to be somewhat general in some of these statements so my apologies in advance.  We have or are in the process of engaging:

1. The top 45Q CPA firm to write a 45Q validation report specific to Viroment

2. The same CPA firm to address the California program 

3. Three separate Top-tier Life-Cycle Analyses firms to validate and concur on the application, accreditation, and validation of our carbon credits

4. A USDA Process Verified Program (PVP) certification

5. ISO 9000 certification

6. Carbon Credit Insurance for purchasers on Viroment's product.

Seriously? All this?  Who is going to pay for all this?

Here is the good news.  The founders are paying for all of this.  Yes, it's a bit overkill, bet realizes that we are setting the standard for "Viroment" credits in the marketplace.  

When a purchaser buys a Viroment produced Carbon Credit it will be more valid and documented than any other credit resulting in being the highest valued commodity of its kind in the marketplace.

No company has those above 6 attributes listed above in the Carbon market.

ONLY READ THE BELOW IF YOU ARE BORED - ITS ANOTHER STORY

A few decades ago (let's say at least three) I flipped on the TV and saw Ron Popeil giving an interview for the full hour on a talk show.  I was fascinated with the guy.  He invested 1000's of items from the "Set-it-and-forget-it" countertop oven that produces piping hot perfect whole turkeys to many other "As-seen-on-TV items.  I didn't even like turkey, but it looked, so good in the infomercial and I wanted one!  I bought so many of Ron's items and I don't ever remember actually even using any of them.  I couldn't believe how many things this guy invented that were so interesting and cool!

Back to the interview - He started off by saying that he has been tested for IQ many times and tests just slightly over the threshold for normal IQ, but mostly in the normal range.   He goes on to say that anyone can invent or figure things out "IF THEY WANT TO." 

"What does that mean...so, if they just decide to then they can?" scoffs an audience member. Everyone chuckles in the audience.  

Another questioner, or interrogator at this point, says "OK, let's say I just want to figure something out that bothers me.  How long should it take me to have it sorted out?" 

Ron fires back without hesitation "On average it should take about 17-19 hours, but, for me probably around 13-14 hours because I have done this quite a bit so I am good at it.  You can be good at it too, but, at first, it will take you the full 17-19 hours for sure."  

The audience is not sure what to say - the same person says, "OK, so about a week or two of my spare time?"

Ron replies, "No, you will likely never figure it out if you do it that way, that is not what I said. I said, 17-19 hours, and what that means is no distractions, no background music, no breaks for TV, and if you can stand it no or limited bathroom breaks.  You need to have your full attention focussed on the task at hand.  If you do, then  you will have your answer in less than a day's time."

The audience is completely quiet.

Ron walks them through his series of thoughts for an invention he was currently working on that he had not quite perfected that involved a few mirrors and a projector projecting an image of a ballroom dancer through them to allow himself to dance with a virtual dance instructor (now this was around 1990 when this show was so it was pretty cool at the time).

I always took what Ron said in that show with me.  From time to time. as the internet is more prevalent now, I search but still cannot find any evidence of the show or what he said.  Ron is now 85 and still alive and doing well from what I understand living a life in Beverly Hills California serving on several boards like MGM and the Mirage Resorts.  

This isn't a story about me, but rather, my partners Russ and Chris as well.  We love what we do and it really bothers us when we cannot figure something out.   We always know we will figure it out so long as we put in the time without distractions.  With cell phones, the internet, family, and all the regular distractions of life it is not always easy.  I can tell you one thing - With my partners, we can figure out problems much faster than even Ron's record times.  Not all the time, but I would say most of the time. 

To sum all this up - The confidence a market purchaser will have in Viroment produced carbon credits will be second to none.  

It is like we are taking that facility and then we "set-it-and-forget-it."  Over the years it creates jobs, food, conserves water, all while producing "pipping hot" cash on cash returns.