Our Climate Policy
We recognize global climate change science, as laid out by the United Nations Intergovernmental Panel on Climate Change. Our goal is to be diligent in responding to the shift to a lower-carbon economy and we will accomplish this by investing in and producing Biofuels - biodiesel, biogas and biojet - for trade.
We believe that the global response to climate change should pursue twin objectives: both limiting temperatures in line with the goals of the Paris Agreement and supporting the United Nations Sustainable Development Goals, including universal access to affordable energy.
Why this matters
As TREE develops and builds FuelBank as one of the world’s largest physical fuel exchanges, TREE has a key role to play in enabling transition to a low carbon economy in the region of the Americas. We can do this through a well-positioned portfolio that includes bio-diesel, bio-gasoline and bio-jet fuel - fuels that are heavily demanded within the transportation sector, but only 2% filled. We believe a transition from fossil fuels to Biofuels (zero-carbon emissions) will become a key part of the global response to the increasing risks posed by climate change.
To deliver a strong investment case to our shareholders, we must invest in assets that will be resilient to regulatory, physical and operational risks related to climate change.
To actively engage with policy-makers on regulatory changes arising from global climate change efforts – such as the COP21 commitments agreed in the Paris Climate Agreement.
To meet the growing needs of a lower carbon economy, TREE aims to prioritize its capital investment to include the production of Biofuels from waste sources such as MSW and used tires, essential to a reduction in pollution on the planet and to limit its fossil fuel trade capacity from current levels to transition to a majority Biofuels trade organization.
Since crude is also one of the highest production cost contributors to refined fuels – and the feedstock sources (MSW and tires) will provide 'tipping fees' income to TREE - we will also improve our revenue model efficiency, while reducing greenhouse gas (GHG) emissions.
We work to be part of the solution to climate change. Our challenge: responding to the demand for energy both responsibly and sustainably.
We are committed to an energy transition towards a low-emissions future
We are convinced that a new energy model based innovation and technology is necessary. Consequently, our carbon strategy is based on the following areas:
Renewable Power Supply to the Terminal
By installing solar and wind turbine power generation systems at our terminal and tank farm site, TREE believes it can not only play its part on reducing carbon emissions, but it will also be in a position to completely be self-sufficient in its power needs, not requiring access to the grid to power terminal operations.
Thermal Gasification converts MSW to a usable synthesis gas, or syngas.
Municipal Solid Waste (MSW) includes “trash” such as kitchen waste, electronics, light bulbs, plastics, used tires, old paint and yard waste.
On average, with Gasification technology, one ton of MSW can be used to produce up to 1,000 kilowatt-hours of electricity, an extremely efficient and cleaner way to utilize this source of energy.
In the Gasification process, the MSW is not a fuel, but a feedstock for a high temperature chemical conversion process. Instead of producing just heat and electricity, the syngas produced by Gasification can be turned into higher value commercial products such as transportation fuels, chemicals, fertilizers, and even substitute natural gas.
Renewable Biofuels Production
By investing in technologies that use waste sources such as MSW and used tires as the primary feedstock, TREE is able to produce biofuels such as biodiesel, biogas and biojet for an extremely thirsty market, starving for low to zero-carbon fuels for consumption in combustion engines.
This eliminates the argument and trajectory of the electric vehicle movement and provides an alternative for trains, ships and airplanes to be carbon-neutral, environmentally friendly and maintain a sustainable business model.
The use of MSW and used tires as primary feedstock would see a significant reduction in landfills and the elimination of high-source costing for the production of fuels as is common in petroleum-based fuels, where the cost of crude extraction and refined fuels production is a significant % of the cost of refined fuels, whereas sourcing and appropriating MSW & tire feedstock would also earn TREE 'tipping fees' as municipalities commonly pay recycling firms to remove waste from the landfills.