Climate-Focused Carbon Investment Fund Expands Portfolio to Include California Biogas Project

Image credit: Flickr/Dawn Perry

“Climate Trust Capital has officially made investments in each of our three preferred sectors—forestry, grassland conservation, and livestock digesters—and are pleased to see our investment strategy come to fruition with high-caliber partner, California Bioenergy.”

U.S.-based private investment fund Climate Trust Capital, an independent entity of the long-standing mission-driven nonprofit The Climate Trust, has reached agreement on its first carbon investment in the biogas sector—the West-Star North Dairy Biogas Project. Over $862,000 of Climate Trust Capital’s Fund I was invested in a covered lagoon digester that will destroy methane and produce carbon offsets under California’s cap and trade system. Fund I was launched in October 2016, seeded by a $5.5 million Program-Related Investment from the David and Lucile Packard Foundation, and supported by a Conservation Innovation Grant from the USDA’s Natural Resources Conservation Service.

“This has been an exciting year, with marked progress toward the deployment of the $5.5 million that makes up Climate Trust Capital’s Fund I,” said Sean Penrith, executive director for The Climate Trust. “We have officially made investments in each of our three preferred sectors—forestry, grassland conservation, and livestock digesters—and are pleased to see our investment strategy come to fruition with high-caliber partner, California Bioenergy. Climate Trust Capital looks forward to future investments in carbon that align with our conviction that carbon prices are undervalued and will provide investors with long-term, risk-adjusted returns,” continued Penrith.

The investment is based on the anticipated ten-year value of carbon credits from a livestock digester project located at West-Star North Dairy, a 1,500-acre farm in California’s San Joaquin Valley. Project partner, California Bioenergy LLC (CalBio), is one of California’s leading dairy digester development companies. CalBio has built three other dairy digester projects, including the State’s largest, with many more scheduled for development. This project investment is expected to begin generating carbon offsets in January 2018 with initial cash flow…

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