Carbon offset     

Carbon offset is a financial instrument aimed at reduction in greenhouse gas emissions. This concept is introduced to motivate and encourage the entrepreneurs to reduce carbon emissions from their furnaces.  Carbon offset is measured in terms of metric ton of  equivalent.

One carbon offset = Reduction of 1 metric ton of  or its equivalent in other greenhouse gases.

One metric ton of  reduction is equivalent to reduction of around 270 Kg Carbon.

There are several ways to generate carbon offset; some of the ways are given below:

I)  Use of renewable source of energy:

The basis of generating carbon offset is to reduce the carbon consumption. Any source of energy which is free from carbon, for example solar energy etc. will generate carbon offset. In this connection, use of hydrogen and to replace carbon to the extent possible is another way to reduce carbon emissions.

II)  Fossil fuel reduction

Most of the thermal energy in high temperature processes is derived directly from consumption of carbonaceous fuels. In processes where electric energy is used, there is indirect consumption of carbon (in thermal power plants, potential energy of the fossil fuel is converted to electric energy). It is to be noted that around 70% of the electric energy requirements are met through thermal power plants.

In the above scenario, reduction in the fossil fuel consumption will lead to reduction in carbon emission. One of the ways to reduce the carbon content is to capture the sensible heat of products of combustion and reuse to preheat the air. This method has dual benefits; utilization of sensible heat of products of combustion and reduction in carbon consumption. The fuel saving resulting due to preheating of air is



If .

Fuel saving =.

This fuel saving in terms of carbon offset corresponds to

Carbon offset =