How Used Cooking Oil (UCO) Recycling Boosts Sustainable Fuel and Maximizes Opportunities for Carbon Credits
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UCO As a Sustainable Feedstock for Carbon Credits
For years, people regarded used cooking oil (UCO) as a landfill-bound and drain-clogging waste product with little value. However, technological advancements have turned this cooking byproduct into crucial feedstock for renewable diesel and sustainable aviation fuel (SAF). Recent industry reports reveal that SAF made from UCO achieves a
45% to 90% decline in carbon intensity, while biodiesel derived from UCO has a significantly lower carbon footprint with a carbon intensity score of
21.7 gco2/MJ, which is way lower than biodiesel generated from conventional vegetable feedstock, such as soybean and rapeseed.
Recycling and tracking UCO provides valuable opportunities for companies to reduce environmental impact, offset greenhouse gas emissions, and earn carbon credits. This blog discusses the benefits of UCO as a sustainable feedstock for carbon credits and how it can help you reduce your environmental impact and earn revenue.
The Benefits of UCO As a Sustainable Feedstock for Carbon Credits
Used cooking oil is a popular low-carbon feedstock for biodiesel, renewable diesel, and sustainable aviation fuel. These fuels are sustainable alternatives to fossil fuels, helping lower greenhouse gas emissions from transportation and other critical sectors. Below are benefits of UCO as a sustainable feedstock for carbon credits:
- Reduction of greenhouse gas emissions: During cooking, food only absorbs about 30% of the oil, leaving behind 70% of UCO. When this UCO ends up in landfills, it decomposes and produces methane, a powerful greenhouse gas that escalates climate change. Conversely, recycling UCO into biodiesel and renewable diesel reduces the need for conventional fossil fuels, thus reducing greenhouse gas emissions. The process of converting UCO into biodiesel emits fewer greenhouse gases compared to the production of conventional diesel.
- Carbon credit generation: As mentioned, UCO can convert into biodiesel, a renewable alternative to traditional fossil fuels. Using UCO as a feedstock for biodiesel production enables companies to reduce their reliance on fossil fuels and lower overall carbon emissions. This substitution can generate carbon credits through mechanisms, such as the Clean Development Mechanism (CDM) and the Verified Carbon Standard (VCS), which incentivize emissions reductions.
- Circular economy: UCO recycling promotes the principles of a circular economy by reusing a waste product as a valuable resource. Instead of letting it become a pollutant, it transforms into a useful commodity, reducing the need for virgin materials. This sustainable practice aligns with global efforts to combat climate change and fosters responsible consumption patterns. Moreover, UCO recycling can stimulate economic growth by creating new job opportunities in the green sector and fostering innovation in waste management technologies.
How UCO Can Help Companies Reduce Their Environmental Impact and Earn Revenue
Governments and organizations often provide incentives through carbon credits for initiatives that reduce greenhouse gas emissions. To this end, carbon offsets have proven to be a robust and financially lucrative market worldwide, with the demand for carbon credits expected to rise with a CAGR of nearly 31% to reach a value of
$2.4 trillion by 2027. UCO recycling projects can qualify for these credits, providing additional revenue streams and financial incentives for businesses involved in the process. A renewable diesel plant producing one billion liters of fuel annually using UCO as its feedstock can earn up to
$248 million in credits compared to $146 million for canola. Here are ways UCO can help you earn revenue through carbon credits:
Carbon offset programs: UCO recycling can contribute to reducing greenhouse gas emissions by displacing the use of fossil fuels in diesel engines. As a result, businesses involved in UCO recycling projects may be eligible to earn carbon credits or participate in carbon offset programs, which can be monetized or used to demonstrate environmental stewardship. In the U.S., UCO can convert into biodiesel, which generates RIN credits under the Renewable Fuel Standard (RFS) program. Oil refineries and importers can purchase these credits, providing revenue for UCO recycling projects.
Tax credits: Various governments offer tax credits for businesses engaged in renewable energy production or recycling activities. UCO recycling may qualify for such credits, providing financial incentives for businesses to participate in recycling efforts.
Grants and subsidies: Governments, nonprofit organizations, and industry associations often offer grants and subsidies to support renewable energy and recycling initiatives. Businesses engaged in UCO recycling projects may be eligible for such funding opportunities, which can offset initial investment costs and improve the project's financial viability.
How Aegex Technologies' Software Can Help Companies Track Their UCO Usage and Stay Compliant With EPA Regulations
Trust and transparency are crucial factors in any recycling project. In the context of UCO, mistrust often stems from concerns regarding the authenticity of collection and recycling practices and the quality of recycled products. Without clear visibility into UCO collection and recycling activities, stakeholders from businesses, consumers, and regulatory bodies may be reluctant to participate and support the industry.
This is where Aegex Technologies' software called
Feedstock and Compliance Tracking System (FACTS) comes in. FACTS is a complete end-to-end track and trace solution designed to track the lifecycle of UCO from its origin, handling, processing, and final conversion, thus ensuring transparency in the entire recycling process. It anonymously matches UCO collection data to specific renewable fuel production batches and provides much-needed monitoring for compliance with environmental and safety standards. Here are some ways Aegex's FACTS can help companies track their UCO usage and stay compliant with EPA regulations:
- Bin-to-RIN traceability: FACT offers accurate BIN-to-RIN traceability, which is essential for complying with record-keeping requirements. It tracks UCO from its initial collection in bins to its conversion into RINS, enabling companies to maintain accurate records of their UCO usage while ensuring compliance with EPA regulations regarding biofuel production and blending.
- Record-keeping compliance: FACTS provides necessary record-keeping compliance for feedstock sources, ensuring that companies adhere to EPA regulation 40 CFR 80.1454(j). Companies can demonstrate transparency and accountability in their UCO usage by accurately recording and documenting feedstock sources.
- Seamless access for audits: The system enables Qualified Audit Program providers to seamlessly access the data required to conduct audits, as mandated under EPA regulations. This feature streamlines the auditing process, allowing for efficient compliance verification and reducing the burden on companies to manually compile and present data.
Maximize Your Carbon Credit Opportunities With Aegex Digital Solutions
As the world races to achieve
net zero emissions targets, UCO is emerging as a valuable product that can help companies reduce carbon emissions and earn revenue. When processed into biofuels, UCO has a lower carbon footprint than conventional fossil fuels and other food-based feedstock. At Aegex Technologies, we provide innovative solutions to help companies maximize their carbon credit opportunities through their UCO recycling projects.
Contact us today to book a demo of our FACTS solution.
