Brazil’s Orizon to sell CO2 offsets

Brazilian waste management company Orizon is preparing to sell carbon offsets from landfill projects in the second quarter of this year.

Orizon recently concluded the migration of its carbon offsets to the Gold Standard voluntary carbon registry at its Joao Pessoa, Paraiba state landfill. Orizon expects to finalize the sale of 1mn-2mn t of CO2 equivalent (CO2e) worth of offsets in the second quarter for $6-7/ tCO2e.

The company is also finalizing the approval of offsets generated at its four other landfills later this year. Orizon generated carbon offsets for 2.99 tCO2e in 2023, up from 2.34mn tCO2e in 2022.

Orizon has been stocking carbon offsets and is in the process of finalizing the sale of these offsets in coming quarters as the projects are certified by the Gold Standard.

The company also boosted its biogas output by 28pc last year to 1.3mn m³/day. It expects production to further increase this year after the company began operations at two landfills in Alagoas and Sergipe states.

The company also expects an increase in biomethane output when it begins production of the renewable gas at its waste management facility in Jaboatao dos Guararapes, in Pernambuco at the end of this year. Orizon has a supply agreement with Pernambuco state gas distributor Copergas that starts at the end of this year. Biogas contains 50pc methane and can be processed into biomethane, a drop-in substitute for natural gas.

The company posted net income of R50.1mn ($9.9mn) in 2023, compared to a net loss of R143.5mn in 2022.