Carbon Co-Benefits
Verifiable carbon sequestration. Additional financing upside.
We build industrial materials capacity. Carbon credits happen to make our financing cheaper.
Carbon Is a Byproduct, Not the Product
AFG operations generate verifiable carbon sequestration as a natural outcome of industrial hemp and bamboo cultivation. This is not our primary value proposition—but it unlocks cheaper capital through federal matching, state climate funds, and green financing structures.
Three mechanisms generate carbon assets:
1. Biogenic Carbon Sequestration
Hemp and bamboo capture atmospheric CO₂ during growth. This carbon is locked in biomass and can be registered as verified offsets with Verra, American Carbon Registry, or Gold Standard protocols.
Verified through LCA (life cycle assessment) protocols
1 acre hemp = 8-10 tons CO₂e per year
Market price: $15-25/ton CO₂e
Annual value per acre: $120-250
2. Soil Carbon Accumulation (Long-term)
Perennial plantings build soil organic matter. Measurable through soil sampling protocols. Eligible for USDA carbon farming programs with 10+ year contracts.
2-3 tons CO₂e sequestered per acre per year
Market price: $10-15/ton CO₂e
Annual value per acre: $20-45
3. Avoided Emissions (Displacement)
Replacing petroleum-based materials with hemp/bamboo fibers avoids upstream emissions. Scope 3 reporting value for OEM buyers in automotive, aerospace, and defense.
2.5 tons CO₂e avoided per acre (material displacement basis)
Market price: $20-40/ton CO₂e
Annual value per acre: $60-100
How Carbon Reduces Cost of Capital
Carbon verification unlocks three federal/state funding mechanisms:
EPA Superfund Partnerships
Carbon credit revenue subsidizes remediation costs. EPA prioritizes projects that generate carbon offsets. AFG facilities automatically qualify, reducing project economics burden on federal budgets.
Impact: 10-15% reduction in remediation costs through carbon revenue.
USDA Conservation Funding
Perennial plantings generate soil carbon credits eligible for USDA carbon farming programs (Conservation Stewardship Program, Environmental Quality Incentives Program). Effectively reduces grower input costs.
Impact: $15-30 per acre annual subsidy to growers.
State Climate Funds
Most states allocate capital to projects with verified carbon reduction. AFG facilities qualify for 15-40% matching funds, directly reducing private capital required.
Example: $10M facility investment → $2-4M in state climate matching funds → Net private capital required drops to $6-8M.
Corporate Scope 3 Reporting
OEM buyers need carbon offset suppliers for Tier 1 supply chain transparency. AFG materials bundled with carbon credits create premium pricing opportunity ($5-15/unit premium on composite/fiber sales).
Revenue Stacking (1,000 acres)
| Revenue Stream | Annual Value (1,000 acres) |
|---|---|
| Product Sales (Fiber, Board, Textiles) | $1,600,000 |
| Biogenic Carbon Credits (Verra/ACR) | $200,000 |
| Soil Carbon (Long-term USDA contracts) | $24,000 |
| Avoided Emissions (OEM Scope 3) | $62,500 |
| USDA Soil Health & Conservation | $50,000-100,000 |
| Total Annual Economic Value | $1,936,500 - $1,986,500 |
Stacking Credits
Carbon Registry Buyers
| Buyer Type | Motivation | Price per Ton CO₂e |
|---|---|---|
| Energy Companies | ESG targets, renewable mandates | $15-18 |
| Automotive OEMs | Supply chain transparency, Scope 3 | $25-35 |
| Tech/Consumer Brands | Carbon neutrality commitments | $20-40 |
| Airlines/Offset Funds | Compliance + voluntary offsetting | $15-25 |
| Government Programs | State climate/emissions targets | $12-20 |
Request Carbon Methodology Documentation
For institutional investors, state climate offices, and corporate procurement teams evaluating blended finance opportunities.
