Article04.01.2023
This tool helps estimate the carbon credit potential and indicative value of retired oil and gas reserves under the ZeroSix approach
* This is based on a Carbon Credit price of USD 25/tCO2e
Total reserves retired (boe)
Carbon credits issued (tCO2e)
Value of carbon credits *
Below you can download the full protocol and the executive summary.
ZeroSix has already minted its first credits and completed initial retirements, demonstrating the practical application of the ZeroSix protocol in live projects. By following the stringent ZeroSix protocol, any operator in the oil & gas industry can create a significant amount of high-quality carbon credits, defined by:
Proof of Accuracy
ZeroSix carbon credits are based on highly regulated government standards for reserves reporting. These proofs are automatically anchored to the Energy Web blockchain, making the process seamless for producers.
Proof of Additionality
ZeroSix carbon credits are only created for proven reserves and producing wells that would otherwise have been extracted, refined, and burned.
Proof of Permanence
Once plugged and abandoned, fossil fuels are never extracted. Through regulatory, operational, and legal components, we ensure that fossil fuels stay in the ground.
Transparency
The full provenance and all proofs associated with the carbon credit are independently verifiable, bringing unprecedented transparency to the Voluntary Carbon Market.
The ZeroSix token is created only after the project owner has:
These steps, ensuring accuracy, additionality and permanence, are anchored to the Polygon Chain by storing documents on IPFS and securing the document hashes on the Polygon Chain, resulting in a full provenance trail. This yields a transparent carbon token, where anyone can independently verify the full provenance of a token, creating transparency in an opaque carbon credit market.
If all steps have been completed successfully, ZeroSix mints the carbon credit token and assigns it to the project owner. The credit holder may then hold, market, sell, transfer, or retire the credits.
Polygon Chain: Polygon is a fast, low-cost, energy efficient and battle-tested blockchain that's been in production for six years with 99.9% uptime.
https://polygon.technology/polygon-pos
ERC-1155: The ERC-1155 token allows for both fungible and non-fungible components. The non-fungible component includes information that is unique and specific to a token such as information about the well from which the token has been generated, this helps ensure traceability. The fungible component includes information that is uniform across all tokens, for example each token represents one tonne of CO2e. The fungible component helps ensure the tradability of the token. In other words, the ERC-1155 standard combines the best of both worlds.
Although we’re starting with a first tranche of ‘leave it in the ground’ fossil fuel-based carbon credits, that’s just the beginning. The ZeroSix solution is flexible. In the future, we anticipate onboarding other types of high-quality carbon credits, such as those generated from direct air capture (DAC) carbon dioxide removal solutions, among many others. These and other protocols will be governed by a fully decentralized and independent body.
With a groundbreaking focus on the U.S. oil & gas sector, ZeroSix incentivizes producers to leave their reserves unextracted and unburned, in exchange for blockchain-native, high-quality carbon credits.
