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In this project, we will work on using blockchain technology to provide trusted data on methane and transfer that data to fuel consumers to incentivize methane reduction at the point of production. The first part of the project will integrate data from different sources to arrive at the best estimate of the methane emissions of a facility. The second part of the project will use Value chain (scope 3) reporting standards to calculate the impact of methane emissions reduction on fuels delivered to customers. It could then be used as part of the Supply Chain Decarbonization Project to incentivize the use of fuels with lower embedded emissions.
Through this we hope to help provide greater visibility to the oil producers, their investors, government agencies and NGO's involved in reducing methane flaring and leakage. We also hope to create an additional lever, where fuel consumers can actively participate by purchasing emission reduction and methane performance certificates.
The Solution
We propose to use a blockchain oracle, such as Chainlink, to integrate the different sources of data from methane emissions. Several independent sources, such as GGFR, Flaring Monitor, MethaneSat, UNEP IMEO, flare-intel, could be combined with company reported figures to arrive at an answer. A blockchain oracle assigns tokens for each source of data and weighs the data according to the tokens held by its source. It could increase or decrease the tokens for each data source as the data is subsequently validated or refuted.
Using the derived methane tokens, an oil & gas facility (well) starts constructing an emission profile for its fuel production. The profile is digitally encoded as a non-fungible token (NFT) smart contract that tracks embedded methane emissions across fuel supply chain stakeholders. A carbon tracker NFT (C-NFT) has been implemented using the ERC-721 1155 standard as part of the Hyperledger Labs Net Emission Token (NET) network to issue, transfer, and retire carbon tokens by different accounts.
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Figure 3 Architecture for verifying waste emission.
Figure 3 depicts an ongoing effort by the blockchain carbon accounting team to collect emission data points into a database (orbitDB) using IPFS or Fabric. These are connected to Ethereum contracts (NET/C-NFT) using a ChainLink oracle service or DAO.
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- company voluntary reports/ ERP sensors (gas flaring)
- independent tracking service such as Flaring Monitor
Other Value chain scope 3 tools/services
According to the GHG Protocol Guidance on Upstream Transportation and Distribution, supplier provided carbon intensity is an acceptable metric for calculating GHG emissions and preferred over industry averages and model based figures.
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CarbonChain is a comparable solution to help organizations assess emission impacts across commodity supply chains. However, it operates as a centralized services, focusing on gathering data into a bigger silo, rather than connecting them.
Active Issues
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Resources
Oil & Gas Methane Partnership 2.0
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