• Proposals
  • KIP-41: Aither - Limenet Mineral Ocean Alkalinity Enhancement

Summary

Deploy capital to secure the forward delivery of Carbon Capture, Utilization, and Storage tons (CCUS) from Limenet’s solution enabling mineral ocean alkalinity enhancement and directly fund project development into the permanent storage of carbon dioxide in seawater through calcium bicarbonate.

Motivation
Background
Aligned with our ongoing commitment to carbon sequestration and climate change mitigation, we recognize the importance of supporting innovative technologies such as Limenet. The deployment of Limenet technology will catalyze the utilization of ocean alkalinity enhancement, enhancing the marine ecosystem's natural ability to absorb CO2. This initiative is in line with Sustainable Development Goals (SDGs), including:

  • SDG 9: Industry, Innovation and Infrastructure
  • SDG 13: Climate Action
  • SDG 14: Life Below Water
  • SDG 17: Partnerships for the goals

Project Support: Ocean Alkalinity Enhancement with Limenet Technology
Project Context
Limenet's technology represents a groundbreaking approach to permanently storing carbon dioxide in seawater through calcium bicarbonate. By securing 1000 tonnes of mineral ocean alkalinity enhancement, this project will not only contribute to global efforts in reducing CO2 emissions but also protect and sustain marine life. The enhancement of ocean alkalinity is an essential step towards a balanced ecosystem and a resilient planet. Limenet's approach aligns with our commitment to foster innovative solutions that ensure environmental sustainability.

Technology Description
Limenet proposes a new approach for hard-to-abate sectors.

Limenet’s technology produces carbon free slaked lime and negative emissions using low-grade feedstocks containing biogenic carbon like sewage sludges, manure, demolition wood, organic wastes, RDF (Refuse Derived Fuel) and MSW (Municipal Solid Waste). It stores permanently all the CO2 produced by the process in the form of calcium bicarbonates in seawater using a novel technology named Buffered Ocean Alkalinity Enhancement (BOAE).

The generation of calcium bicarbonates and their dissolution into the ocean mimics the results of the very well-known weathering of rocks: the raindrops become acidic because of the CO2 present in the atmosphere, and the acidic waters slowly weather the rocks. The weathering of limestone mountains generates the well-known karst phenomenon where poljes above and drainage systems with caves underground are formed by the dissolution of the carbonates. The calcium carbonates are dissolved by the acid rainwater into an aqueous solution of calcium bicarbonate that, reaching the sea through the rivers, is storing safely and permanently (>10k yrs) the CO2 captured by the rain droplets from the atmosphere: the main difference between the natural process and the Limenet one is that the calcium bicarbonates are produced industrially in controlled reactors.

Limenet’s technology consists of 3 different sections:

  1. A steam gasifier for low grade biomasses to generate a flow of high temperature syngas.
  2. An indirect calciner of limestone using oxycombustion of syngas as heat source to produce a flow of slaked lime
  3. A reactor to generate calcium bicarbonates using sea water, the fossil CO2 produced by the calcination of limestone and the biogenic CO2 produced by the oxycombustion of syngas.

The most important features of the Limenet technology are:

  • permanent storage of the CO2 in seawater in the form of calcium bicarbonates that counteract, as a co-benefit, ocean acidification.
  • production of carbon-free slaked lime
  • generation of negative CO2 emissions
  • high-quality MRV protocol to precisely count negative emissions
  • use of waste feedstocks for biogenic carbon
  • widely available globally calcium carbonate (7% of earth's crust); seawater; energy
  • modularity
  • deployable worldwide on any coastal area

One potential application:
Limenet can be deployed at limestone quarries, near the sea, using MSW or RDF as feedstock, generating carbon free slaked lime and negative emissions solving the problem of the GHG emissions from landfills and avoiding the fossil CO2 emitted from MSW incineration plants.
The carbon free slaked lime produced can be used locally to capture and store CO2 from any point source precipitating it as calcium carbonate.

The negative emissions produced by Limenet could be used to offset hard-to-abate industries like the aviation sector.

Risk Mitigation
The Limenet project carries a strong foundation of credibility and innovation, led by an esteemed team from academia. Giovanni Cappello, Stefano Caserini, Mario Grosso, and Simona Masina founded the Desarc Maresanus research group, where they published the first scientific articles related to this technology and filed patents to secure their intellectual property rights. The team's efforts have culminated in the development of the first prototypes, which have been proven to remove kilograms of carbon dioxide through the formation of calcium bicarbonates. This academic rigor and practical success significantly mitigate the potential risks associated with the project, providing a solid and proven basis for the implementation and expected performance of Limenet's technology. It reflects a robust blend of scientific research, innovation, and real-world application that enhances our confidence in the project's success and long-term impact.

A VERPA agreement will be used to set terms for delivery. If tons are not delivered within the timeframe there is a guaranteed 10% buffer of 1.2 months, and an optional 60 calendar day extension may be granted by KlimaDAO - if no extension is granted or no delivery of like tons occurs in the buffer window, the contract cancels and payment is refunded.

Technology Innovation

Limenet has closed the loop on the geological carbon cycle by developing a technology that can permanently store CO₂ through calcium bicarbonates in the ocean. DAC stores carbon in rocks. Limenet’s CCUS’ store it in the largest carbon sink available: the ocean.

Technology Assessment:
Starting from the production of carbon free slaked lime (main business of Limenet), the main differences of the technology is the use of:

  • MSW (for thermal energy and biogenic CO2).
  • Buffered Ocean Alkalinity Enhancement storage technology.

Comparing other CDR technology:

  • Ocean Alkalinity Enhancement (Liming). Limenet adds CO2-equilibrated alkalinity to the ocean at the same pH of the seawater instead of increasing the pH of the ocean surface to promote air-sea gas exchanges.
  • BECCS: Limenet uses the biomass to provide the biogenic CO2 and the energy needed for the CO2 storage (i.e. for the calcination), while the BECCS use the energy of the biomass to produce other energy (electricity, heat, hydrogen, etc.) but must rely on an external CO2 storage.
  • BiCRS: Limenet could generate up to 2,5 tons of CO₂ net biogenic carbon dioxide removal per ton of biomass while the production of pyrolysis oil is 0,85 tons. BiCRS relies on external class I or class V wells for pyrolysis oil storage.
  • Biochar production. Limenet traps and stores all the carbon content in the biomass and not only its fixed carbon reducing uncertainties on the CO2 storage durability of biochar.
  • Carbonation or PCC production: Limenet integrates the limestone calcination CO2 capture with the CO2 storage in the form of calcium bicarbonates without the need for external CO2 storages.
  • Electrolyze seawater: Limenet increases the ocean alkalinity without changing the pH of the seawater, reducing the risk of abiotic carbonate precipitations and chloride acid formation.
  • DAC technologies. Limenet integrates biogenic CO2 capture with CO2 storage without the need for external CO2 storage.

The technology gap Limenet wants to solve is to use residual waste and residual biomass to produce negative emissions. This can revitalize the circular economy of biogenic CO2.

Nowadays, one of the biggest challenges is CO2 capture and storage, ocean acidification and waste management. With Limenet technology it is possible to use the carbon content of the MSW to generate negative emissions, carbon free slaked lime and calcium bicarbonates.

With this, it is possible to have a CDR solution with a co-benefit to counteracting ocean acidification. Bicarbonates, indeed, are a buffering solution that equilibrates ocean pH.

To go beyond these results, once biogenic feedstock has finished, Limenet can use just electrical, renewable energy, producing only carbon-free slaked lime.

Limenet and the Geological Carbon Cycle:
Drawing inspiration from the Earth's own systems, Limenet mirrors the geological carbon cycle. This intricate web of interactions allows for the transfer of carbon among different Earth's components, namely the geosphere, hydrosphere, biosphere, and atmosphere. Each of these plays a pivotal role, acting as colossal carbon reservoirs, overseeing the seamless transition of CO₂.

However, what truly sets Limenet apart is its adeptness at supercharging this process. The geological carbon cycle, while effective, operates on vast geological time scales. Limenet's groundbreaking technology, on the other hand, has been engineered to vastly amplify the speed, condensing what would naturally take millennia into mere hours. By accelerating the dissolution of limestone, and harnessing CO₂ either from ambient air or directly from waste streams, it synergizes with seawater to generate negative emissions, all manifested as calcium bicarbonates.

Beyond Carbon Capture: A Boon for Marine Life
But Limenet's benefits extend beyond just carbon sequestration. The process holds immense ecological promise as well. By introducing carbonate compounds into the oceans, the water's alkalinity gets a substantial boost. Alkalinity, in essence, equips water with a buffer against acidity fluctuations. Given the rampant ocean acidification issues we're witnessing today, this increased alkalinity can offer a vital lifeline for marine ecosystems. It aids in stabilizing marine habitats, providing a conducive environment for marine biota, from the tiniest plankton to the grandest whales, ensuring that they thrive and contribute to a balanced marine ecosystem.

In conclusion, as we stand on the brink of an undeniable climate emergency, innovations like Limenet are not just solutions but crucial lifelines. They represent hope, vision, and a commitment to a more sustainable future, where mankind and nature coexist harmoniously.

Harnessing the Power of Natural Chemistry with Limenet
At the heart of Limenet's pioneering approach lies a fundamental principle of natural chemistry: the reaction between CO₂ and calcium carbonate, leading to the formation of calcium bicarbonate. It's this core chemical interaction, which has been occurring in nature for eons, that Limenet ingeniously harnesses, adapting and amplifying it to meet the urgent demands of our contemporary climate crisis.

While the basis of this procedure is naturally occurring, its acceleration is an intricate dance of science and innovation. This enhancement is achieved through the meticulous introduction of electrical and thermal energy into the system. By doing so, Limenet effectively turbocharges the reaction rate, ensuring that more CO₂ is captured and transformed in significantly shorter durations than what nature would accomplish independently. This is akin to taking a page out of Earth's own playbook and then fast-forwarding through its most crucial parts, all while ensuring the narrative remains intact.

However, Limenet doesn't stop at just enhancing natural processes. Recognizing the imperative to keep the operation sustainable and environmentally sound, there's a deep-seated focus on the energy inputs powering this acceleration. Given that energy consumption invariably correlates with carbon footprints, Limenet's commitment to minimizing environmental impact remains unwavering. Currently, the team is immersed in rigorous testing of a myriad of solutions. These alternatives aim to enable the plant to operate in a hybrid mode, toggling between electricity and biomass. This versatility ensures not only efficient CO₂ conversion but also does so with an eye on overall sustainability, thereby encapsulating a holistic approach to environmental responsibility.
In essence, Limenet embodies a fusion of age-old natural processes with cutting-edge technological innovations. Its mission is clear: to optimize and adapt Earth's own methods for a world where time is of the essence and every molecule of CO₂ captured makes a world of difference.

The three phases of Limenet technology:

  1. Crushing - Calcination – Hydration
    The limestone raw material (CaCO₃) is crushed, calcined and then separated into CaO (quicklime) and CO₂, by thermal decomposition in an electrical furnace powered by renewable electricity.
    The quicklime is then hydrated to obtain slaked lime (Ca(OH)₂)).
  2. CO₂ abatement - Calcination and production of calcium bicarbonate
    Just over half of the slaked lime obtained is used to remove the carbon dioxide produced by calcination. The process takes place in the Limenet reactor, mixing CO₂ and Ca(OH)₂ in seawater: Ca(OH)₂ + 2CO₂ → Ca(HCO₃)₂.
    The other half of the slaked lime (Carbon-free) is available for downstream carbon sequestration in phase 3.
  3. Storage of CO₂
    Half of the carbon free slaked lime is used to store CO₂ from external sources in the form of calcium bicarbonates. Calcium bicarbonate Ca(HCO₃)₂ product enriches seawater with its alkaline properties.
    Learn more about the Limenet solution here.

Tracking with blockchain
To give maximum transparency to our action, we decided to develop, using the blockchain, a method of tracking negative emissions through all the steps of the process. In other words, we have created a virtual mirror of Limenet technology by making the computers (PLCs) of the plant communicate with decentralized databases tracing every operation on Polygon (Ethereum second layer). Our negative emission certificates are realized through a minting of NFT certified by a third party via MRV (monitoring reporting and verification).

The advantages of this tracking are:

  • maximum transparency to the customer
  • high traceability for reporting activities
  • transparency in avoiding double counting

Implications & Implementation
All tons purchased, and all future tons produced by Limenet, will be tokenized using QC3. Purchased tons will seamlessly integrate into the on-chain carbon market, and be available exclusively on-chain. This tokenization is expected to bolster the network's overall efficiency, offer price discovery, and bring added dynamism and transparency to the process. Moreover, KlimaDAO anticipates that this initiative will create increased economic activity on-chain, stimulating further growth and innovation within the community. It marks a significant step towards aligning environmental stewardship with technological advancement, fostering a synergy that supports both ecological sustainability and economic vitality.

KlimaDAO Advantage

CCUS are rarely, if ever, tradable before end-use. KlimaDAO’s purchase creates the opportunity to create a new market for a high-quality environmental asset that has not had a liquid market before. Top-tier quality credits like CCUS are used for retirement, and KlimaDAO will be the first-mover to tokenize and trade these assets. This presents a tremendous opportunity to accelerate and innovate in the market for all parties.

Pricing Considerations

Navigating the intricacies of the mineral ocean alkalinity enhancement sector reveals a landscape rich in potential but also marked by keen competition and fluctuating valuations. For any entity aspiring to solidify its standing in this arena, astute market decisions are paramount. Klima's present position provides a golden opportunity in this regard. The pricing dynamics in this sector underscore its premium nature, with a range that consistently trends toward the higher end, indicating both its rarity and potential.

This advantageous procurement would enable Klima to leverage its position for future negotiations, partnerships, or even potential expansions. It would be a testament to the organization's strategic foresight, keen market insight, and commitment to driving value at every possible juncture. Such a move would not only resonate well with stakeholders and partners but also set Klima apart from competitors, reinforcing its image as an industry frontrunner with an eagle eye for opportunities.

In the broader perspective, by making this acquisition, Klima would be reinforcing its commitment to sustainable and strategic growth in the industry. It's an investment that goes beyond immediate financial returns; it's about cementing Klima's reputation as a visionary in the field, a brand that doesn't just follow trends but sets them, capitalizing on every opportunity to forge a brighter, more dominant future.

For further research:
1. Universita di Milano-Bicocca Assessment
2. Scientific Papers, Limenet

Proposal:
Enter into forward delivery agreement with Aither for 1000 tonnes, to be delivered over the following 12 months, at a price of $600/ton.

Polling Period
The KIP process begins now and will end at 18:00 UTC on September 01, 2023. It will then advance to Snapshot.

Enter into forward delivery agreement?

This poll has ended.
    6 days later

    Firstly, well done to the team on cultivating this opportunity and seeking to strengthen ties with Aither as a key partner who is supportive of on-chain carbon markets.

    However, although the opportunity looks conceptually interesting, I strongly believe the protocol is not in a position to use scarce capital at this point on such high risk / return opportunities. This is a significant capital commitment for a market in the early stages of development and with technological risk.

    If Aither believes that these credits are highly marketable and would benefit from tokenization to advance that market, why would they not tokenize these assets themselves and we can support their listing and marketing on carbonmark and through our other channels?

    My view is further influenced by the fact that we have witnessed Olympus market-sell (a portion of) their Klima holdings causing a further 20%++ reduction in market value. This change in treasury backing of Olympus presents a huge opportunity for Klima to utilize scarce treasury funds to "buyback" these tokens at a material discount to Klima's own backing and thereby distribute the benefit proportionately across Klima holders.


    optima Cost-Benefit Analysis for KlimaDAO's Proposed Purchase of Carbon Removals from Limenet

    Costs:
    Initial Capital: $600,000 for 1000 tonnes of carbon removals. 8.74% of KlimaDAO’s liquid USDC.
    Operational Risk: While Limenet has a strong academic foundation, it's a new technology with potential operational hiccups.
    Market Risk: The price of carbon credits could fluctuate, affecting the markup potential.
    Technology Scaling/Supply Price Risk: As the technology scales, the price per tonne is expected to decrease, affecting future valuations.
    Benefits:
    Inventory Diversification: Adds a new type of carbon removal technology to KlimaDAO's portfolio.
    Demand Pull: These removals are not available in lots of less than 1000. Any user who wants access to these credits via secondary markets will have to come to Carbonmark.
    Markup Potential: Opportunity to list the credits on CarbonMark at $650 - $900 per ton, generating a potential revenue of up to $900,000.
    Tokenization via C3: All future demand from Limenet will be tokenized via C3, creating a new revenue stream.
    Sustainable Development Goals (SDGs): Aligns with multiple SDGs, enhancing brand value and stakeholder engagement.
    Risk Mitigation: VERPA agreement provides a safety net, with a 10% buffer of 1.2 months and an optional 60-day extension. If no delivery, payment is reverted.
    Innovation: Limenet's technology has multiple environmental benefits, including ocean alkalinity enhancement.
    Signal: KlimaDAO provides positive signal and price discovery for the market, leading by example along with other prominent allocators and industry participants like Frontier.
    Financial Metrics:
    Prospective ROI: (($775,000 - $600,000) / $600,000) x 100 = 29.17%
    Payback Period: Less than a year if the credits are sold at the projected markup. Potentially longer and at lower markups depending on demand and speed of scale. If sold at a loss, the tokenization of future Limenet tonnes ensures on-chain economic activity and offers a long-tail pricing hedge.
    Strategic Implications:
    First-Mover Advantage: Early adoption of a groundbreaking technology.
    Long-Term Partnership: Sets the stage for a long-term relationship with Limenet & Aither, potentially accessing more frontier technologies at lower costs as the technology scales.
    Tokenization of all Future Tons: Creates a long-tail ecosystem benefit that will scale along with the adoption of Limenet.
    Conclusion:
    The proposal presents a high-reward, moderate-risk opportunity. The immediate ROI and payback period are favorable. The uncertainty regarding price discovery and the expectation of price decline as scale occurs are known risks that are hedged by the deal structure itself. The strategic benefits, such as inventory diversification, future tokenization volumes, and alignment with SDGs, add long-term value. Given the risk mitigation strategies in place, the Policy team believes this investment is strategically sound and financially promising.

    5 days later
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