Enhanced Rock Weathering (ERW) is a relatively new approach to mitigating climate change that involves the application of crushed silicate mineral and rocks to land surfaces, thereby increasing the weathering rate of the rock and creating a carbon sink. ERW has gained significant attention in recent years as a tool to combat climate change, and its economic feasibility is frequently discussed. In this article, we will analyze the economics of ERW, including investment costs, potential returns, and market dynamics to help investors and policymakers determine the viability of ERW as a climate change mitigation technique.
Key points to consider when talking about the economics of ERW
Enhanced Rock Weathering (ERW) is a promising technique that has gained much attention in recent years due to its potential to mitigate climate change.
It involves the large-scale application of ground silicate rocks to croplands, forests, and other ecosystems, which stimulates natural chemical reactions that absorb carbon dioxide (CO2) from the atmosphere.
ERW has been shown to be an effective strategy for reducing CO2 levels, but what about the economic viability of this method? To assess it, it is important to consider some things:
– Investment costs
Investment costs are a significant consideration for any ERW project. The costs of processing and applying silicate minerals and rocks can vary based on the location and size of the project.
The primary cost is sourcing and transporting the rock to the site, crushing it, and then applying it to the target area. According to a study by Hartmann et al., the average cost of applying one metric ton of silicate rock is around $12.50, including both processing and application costs.
However, the cost of the project can vary based on other factors such as land acquisition cost, transportation costs, and labor costs. Therefore, it’s essential to assess the total expenses accurately.
For example, if the extraction site is close to the processing site, these costs can be reduced. Also, the technology used to do the processing of the material can impact the overall cost of the ERW project, as well as efficiency of the technique.
– Potential returns on investment
Potential returns on investment are another significant consideration for an ERW project. If the project aims to create a carbon sink, then it’s vital to analyze the carbon dioxide sequestered by silicate mineral or rock in the long run.
Silicate rock absorbs carbon dioxide, which reduces the carbon dioxide concentration in the atmosphere. According to a recent study by Beerling et al., the annual sequestration potential of silicate rock is estimated to be around 2Gt of CO2 per year, which is equivalent to almost 20% of present-day anthropogenic carbon dioxide emissions.
However, different types of minerals and rocks can sequester different amounts of carbon dioxide, so the choice of this material can be the key in making the investment to have a best cost-benefit ratio.
Considering these factors, ERW projects can be a substantial commercial opportunity for investors looking to participate in the fight against clime change.
– Market dynamics
Market dynamics play a critical role in the economic feasibility of ERW projects. The market for carbon offsets is a factor because the revenue generated from selling carbon credits can offset the costs of ERW projects.
The value of carbon credits varies based on the demand and supply factors. According to a report by the World Bank, the average price of carbon credits is around $3.30 per metric ton. Companies that emit more carbon dioxide than their allowances buy these credits to offset their emissions.
Currently, there is a rising demand for carbon credits, which could provide an opportunity for those looking to invest in the ERW project.
– Implementation
The implementation of ERW projects on a large scale also depends on the availability of policies and incentives for their adoption.
The General Assembly of the United Nations recently launched the “Natural Climate Solutions Alliance” with a goal of increasing the sequestration of carbon and greenhouse gases (GHGs) by two billion tonnes per year by 2030, and 4 billion tonnes annually by 2050.
These initiatives will support and incentivize private investments in ERW projects aiming towards sequestering atmospheric carbon. Moreover, the development of policies favoring research, innovation, and implementation of carbon capture and storage technologies, like ERW, will positively impact its adoption.
Enhanced Rock Weathering maybe a crucial technology to mitigate climate change and investing on it is beneficial
To summarize, Enhanced Rock Weathering has the potential to be one of the essential contributors to mitigating climate change in the long run.
Though there are pressing economic, technical, logistical, and societal challenges which still need solving, ERW offers incredible opportunities like reducing the concentration of atmospheric CO2 and creating new carbon offsets markets. Given the increasing demand for carbon credits, the time is right to start investing in ERW.
Through public-private partnerships and cooperation between scientists, governments, and investors worldwide, ERW can emerge as a viable, economically sustainable, and environmentally friendly method to fight climate change.
