Method for determining a future value of greenhouse gas credits

• US 20070203722A1
• Filed: 02/28/2006
• Published: 08/30/2007
• Est. Priority Date: 02/28/2006
• Status: Abandoned Application

• Current Assignee: Caterpillar Incorporated
• Original Assignee: Caterpillar Incorporated
• Inventors: Pierz, Stephen, Richards, Randall, Chapman, James, Sill, Morton, Rytter, Noel
• Application Number:
  US11/363,257
• Publication Number:
  US 20070203722A1
• Time in Patent Office: Days
• US Class Current: 705/10
• CPC Class Codes: G06Q 10/06375 Prediction of business process outcome or impact based on a proposed change
• CPC Class Codes: G06Q 99/00 Subject matter not provided for in other groups of this subclass
• CPC Class Codes: Y02P 90/84 Greenhouse gas [GHG] management systems
• CPC Class Codes: Y02P 90/845 Inventory and reporting systems for greenhouse gases [GHG]

Abstract

A method for evaluating a greenhouse gas reduction project is disclosed. The method includes receiving one or more parameters associated with a greenhouse gas reduction project. The method also includes determining an amount of greenhouse gas credits potentially generated during the lifecycle of a greenhouse gas reduction project. The method further includes analyzing historic data associated with a price history of greenhouse gas credits. The method also includes estimating a future value of the greenhouse gas credits based on the analysis trends and inputs. The method further includes predicting a potential revenue generated from a greenhouse gas reduction project based on the future value of the generated greenhouse gas credits.

Claims

1. A method for evaluating a proposed greenhouse gas reduction project, comprising:

receiving one or more parameters associated with a proposed greenhouse gas reduction project;

estimating an amount of greenhouse gas credits potentially generated during the proposed greenhouse gas reduction project;

analyzing historic data associated with a price history of greenhouse gas credits;

estimating a future value of the greenhouse gas credits based on the analysis; and

predicting a potential revenue generated by the proposed greenhouse gas reduction project based on the future value of the greenhouse gas credits.

2. The method of claim 1, wherein the greenhouse gas reduction project includes development, construction, and operation of a methane combustion plant.

3. The method of claim 1, wherein the price history is determined from one or more previous sales of greenhouse gas credits.

4. The method of claim 1, wherein historic data includes a market trend and the future value is determined by:

estimating a demand based on market indicators associated with the historic data; and

determining a future sale price based on the estimated demand.

5. The method of claim 1, further including:

predicting a potential cost associated with the greenhouse gas reduction project; and

generating a cost/revenue projection based on the predicted cost and revenue associated with the greenhouse gas reduction project.

6. The method of claim 5, wherein the potential cost includes a development and construction cost associated with the greenhouse gas reduction project.

7. The method of claim 5, wherein the potential cost includes an operation cost associated with the greenhouse gas reduction project.

8. The method of claim 5, wherein generating the cost/revenue projection includes determining whether to perform the greenhouse gas reduction project based on the cost/revenue projection.

9. A method for determining a feasibility of a proposed greenhouse gas reduction project, comprising:

predicting a potential cost associated with an operation of the greenhouse gas reduction project;

estimating a potential revenue potentially generated by the greenhouse gas reduction project, wherein the potential revenue includes one or more of income associated with a future sale of a product associated with the greenhouse gas reduction project and a future value of greenhouse gas credits potentially generated by the greenhouse gas reduction project; and

assessing the economic feasibility associated with the greenhouse gas reduction project based on the potential cost and revenue associated with the project.

10. The method of claim 9, wherein the potential cost includes a development and construction cost or an operational cost associated with the greenhouse gas reduction project.

11. The method of claim 9, wherein the future value of the greenhouse gas credits is estimated based on historic data associated with greenhouse gas credits.

12. The method of claim 11, wherein the historic data includes a price history associated with the sale of substantially similar greenhouse gas credits.

13. The method of claim 11, wherein historic data includes a market trend and the future value is determined by:

estimating a future demand based on market indicators associated with the historic data; and

determining a future sale price based on the estimated demand.

14. A system for evaluating a proposed greenhouse gas reduction project, comprising:

an interface;

a processor coupled to the interface and configured to;

receiving one or more parameters associated with a proposed greenhouse gas reduction project;

estimating an amount of greenhouse gas credits potentially generated during the proposed greenhouse gas reduction project;

analyzing historic data associated with a price history of greenhouse gas credits;

estimating a future value of the greenhouse gas credits based on the analysis; and

predicting a potential revenue generated by the proposed greenhouse gas reduction project based on the future value of the greenhouse gas credits.

15. The system of claim 14, wherein the greenhouse gas reduction project includes development, construction and operation of a methane transformation plant.

16. The system of claim 14, wherein potential revenue generated during the greenhouse gas reduction project further includes a potential income associated with a future sale of a product potentially generated by the greenhouse gas reduction project.

17. The system of claim 14, wherein the price history is determined from one or more previous sales of greenhouse gas credits.

18. The system of claim 14, wherein historic data includes a market trend and the future value is determined by:

estimating a demand based on market indicators associated with the historic data; and

determining a future sale price based on the estimated demand.

19. The system of claim 14, further including:

predicting a potential cost associated with the greenhouse gas reduction project; and

generating a cost/revenue projection based on the predicted cost and revenue associated with the greenhouse gas reduction project.

20. The system of claim 19, wherein the potential cost includes a development and construction cost or an operational cost associated with the greenhouse gas reduction project.