Here are some estimates on how much CO2 can be absorbed per hectare of industrial hemp production per growing season:
- Hemp plants absorb CO2 through photosynthesis during their rapid growth stage.
- Reported figures indicate hemp can absorb 4-15 tons of CO2 per hectare per growing season.
- The wide range depends on specific cultivar, planting density, climate and cultivation practices.
- The bulk of CO2 absorption occurs during the vegetative stage before flowering/seed setting.
- Hemp grown for fiber may absorb more than that grown for CBD oil production.
- The fast growing nature of industrial hemp makes it an effective carbon sink compared to other crops and vegetation.
In summary, published studies indicate industrial hemp can potentially absorb 6-15 tons of CO2 per hectare over a single growing season, making it a promising carbon sequestration crop.
lets use 12 for this calculation, which means 36 ton per year.
The price of a carbon credit, which typically represents one metric ton of CO2 emissions reduced or removed from the atmosphere, varies considerably based on several factors. These factors include the carbon offset market (voluntary or compliance), the project type generating the credits, the location, and additional environmental or social benefits associated with the project.
Voluntary Carbon Markets: In voluntary markets, where entities buy carbon credits to offset their emissions beyond regulatory requirements, prices can range widely. In 2022, average prices ranged from around $3 to over $50 per ton of CO2, depending on the quality and co-benefits of the offsets. High-quality projects with strong environmental integrity and additional social benefits tend to command higher prices.
Compliance Carbon Markets: In compliance markets, which are part of regulatory schemes like the European Union Emissions Trading Scheme (EU ETS), prices are typically higher. For instance, prices in the EU ETS have been observed to be in the range of €50 to €90 per ton of CO2 (equivalent to approximately $60 to $100, depending on exchange rates).
The carbon credit market is dynamic, and prices fluctuate based on supply and demand, regulatory changes, and global climate policy developments. Additionally, the method of carbon sequestration or emission reduction, the verification process, and the longevity and permanence of the carbon reduction all play significant roles in determining the value of a carbon credit.
lets use $20 per ton of CO2
1 hectare of land can produce 24 ton of biomass which costs about 2400 USD, and produces $20 x 36 of carbon credits = 720 USD, this means 1 ton would cost about $70 per ton rather than $100.