Services – CarbonTP – Carbon Transition Pathways

Our Services

CarbonTP draws its knowledge and understanding from a team of technical, commercial and financial experts that have extensive work experience in the resources, industrial and renewable energy sectors. This knowledge and understanding is enhanced through developing our own Energy Transition projects within our affiliated Ventures in the Renewable Energy, Green Steel, Carbon Farming and Carbon Capture & Storage [CCS] sectors.

CarbonTP offers clients a range of services under the following broad topics:

Energy Transition Advisory

CarbonTP help companies gain a realistic understanding of the range of potential Energy Transition impacts on their business and develop implementable strategies to manage those impacts.

Companies operating in the energy and resources sectors are particularly exposed to a range of potential physical and financial risks resulting from climate change and the energy transition, and there is significant pressure from shareholder representative organisations to quantify and disclose those risks and how they are being managed.

In September 2024, the Australian government amended the Corporations Act to include climate disclosure under the existing liability framework making Directors liable for the accuracy and integrity of these disclosures.

CarbonTP’s services in this area include:

Climate related risk analysis – corporate and asset level
Emissions identification and quantification
Emissions mitigation strategy development
TCFD compliance

Emissions Monitoring, Reporting, Forecasting and Target Setting

CarbonTP advise on a range of emissions management topics, including:

Source identification, quantification, monitoring and reporting
Forecasting and scenario development
Target setting and mitigation to deliver against targets

Source identification, quantification, monitoring and reporting

We help companies identify, quantify and report emissions in compliance with NGERS legislation. In collaboration with our technology partners, we can deliver near real-time emissions monitoring and reporting for your organisation allowing operational decisions to be made cognisant of the emissions impact.

Forecasting and scenario development

CarbonTP creates bottom-up models of future emissions across a range of potential production and project development scenarios. Accurate, model-based emissions forecasts are an essential input to economic decision making, allowing companies to understand the impact of those decisions on their emissions trajectory together with the associated longer term reputational and financial implications.

Target Setting

Targets evolve with a company’s changing carbon ambitions and technological developments, serving a dual purpose:

signaling intent with respect to decarbonisation to the market and other key stakeholders, and;
driving behaviour within the organisation towards delivering the target.

CarbonTP can guide your organisation through emissions target setting and work with your team to develop a practical set of emissions targets and intensity trajectories that make sense for your business.

Emissions Abatement and MAC Curves

Emissions abatement involves the implementation of projects which directly reduce carbon emissions from a company’s current or future operations. Decarbonisation usually represents a cost to industry, which must be minimized.

Emissions abatement should not be confused with carbon offsets.

The need to transition to a decarbonized economy has introduced compounding complexities to capital allocation that simply did not exist in the pre-Energy Transition era. Informed decision making relies on accurate data, a deep understanding of the technical challenges faced and an appropriate methodology to synthesise these complexities into concise insights.

Marginal Abatement Cost [MAC] Curves are an important tool in the decarbonisation process. MAC Curves rank emissions abatement opportunities based on the cost per tonne of CO2 abated, taking into account interactions between abatement opportunities to avoid double counting. If used properly, this leads to improved decision making and greater efficiency in capital allocation.

MAC Curves are often confused with Average Abatement Cost [AAC] Curves which evaluate abatement opportunities in isolation from each other. Most published “MAC Curves” are in fact AAC Curves and have limited use in most investment decision making.

CarbonTP can guide your company through the proper development of MAC Curves and in their effective use to optimise the deployment of capital when decarbonising your operations.

Capital Allocation and Portfolio Optimisation

Capital allocation refers to the process of choosing which projects to fund from a portfolio of possible options. An increased focus on the Energy Transition is driving a step change in the complexity of capital allocation decisions with additional project types, more variables to consider and greater uncertainty.

Today our clients face the challenge of optimising their allocation of capital across their traditional investments while also needing to consider expenditure on emissions abatement projects and renewable energy opportunities. A holistic approach must be taken to portfolio optimisation to maximise shareholder value within corporate financial constraints, while also delivering on emissions targets at the lowest long-term cost.

Abatement opportunities vary considerably in magnitude, lifetime and cost and cannot be considered in isolation from each other or from a company’s traditional project investment decisions. Traditional projects with higher emissions profiles will require greater abatement initiatives to satisfy corporate emissions targets. These abatement costs must be factored into corporate capital allocation decisions.

CarbonTP has considerable experience in implementing cutting-edge corporate planning and portfolio optimisation systems across medium and large enterprises. Our approach is to integrate CarbonTP’s proprietary portfolio optimisation software with sophisticated off-the-shelf economics and planning software to deliver a complete capital allocation solution.

CarbonTP can guide companies on a range of corporate planning and capital allocation challenges, including:

Implementation of corporate planning systems
Scenario Development, with the inclusion of emissions abatement opportunities
Use of Non-linear Portfolio Optimisation in Capital Allocation
Inclusion of emissions targets as a Portfolio Optimisation constraint

Technology Reviews, Techno-Economic Modelling and Analysis

The CarbonTP Team has decades of experience in evaluating complex technical projects in the energy, industrial and resources sectors. Our Team brings technical, commercial and financial expertise to each project ensuring that the techno-economics modelling respects the science and engineering aspects first, before overlaying the commercial, economic and financial considerations.

Since forming CarbonTP in 2020 we have been engaged by clients to evaluate the viability of a range of complex technical projects, including:

Green iron and steel making, integrating ore supply, logistics, power and water systems, renewable energy and hydrogen production and storage
Energy transition scenario mapping for a major gas transition pipeline
EV trucking feasibility study
Hydrogen integration in industrial complexes
Integration of low-grade geothermal energy in a sustainable new housing estate

Our Team members are also evaluating projects across our affiliated companies, progressing our own Renewable Energy, Carbon Capture and Storage [CCS] and Green Steel Recycling projects towards final investment decisions [FID].

CarbonTP can undertake techno-economic modelling and analysis across a broad spectrum of complex Energy Transition projects. We ensure our clients make informed investment decisions based on a robust set of engineering and commercial assumptions and methodologies.

Safeguard Mechanism, Carbon Markets and Carbon Credits

CarbonTP can guide companies through the complexities of carbon markets, the Safeguard Mechanism and compliance obligations.

Carbon Credits are carbon emission sinks or carbon sequestration activities executed in addition to carbon emissions abatement activities. A Carbon Credit unit represents one tonne of CO2e stored or avoided by a project and can be purchased by a company to reduce its net carbon emissions.

Carbon Credits can be purchased when emissions abatement opportunities cease to become a cost-effective means to deliver on a company’s carbon emissions targets. A project’s marginal cost of emissions abatement, and the cost of a Carbon Credit, will therefore determine the optimal use of Carbon Credits. We recommend Carbon Credit purchases be based on accurate emissions forecasts and supplemental to an effective emissions abatement strategy.

The revisions of the Safeguard Mechanism in Australia in 2023 has increased the focus of larger Australian emitters on securing ACCUs to meet compliance requirements. Understanding the Safeguard Mechanism and the workings of the various carbon markets is essential for larger Australian companies covered by emissions regulations. While these issues can seem complex at first glance, with proper guidance it is possible for a company to navigate its compliance obligations, provided it is planned sufficiently in advance.

Our affiliate, Carbon Farming Partners, can work with companies to develop ACCU procurement strategies through on-market purchasing, direct participation in existing carbon farming projects or even the development of their own project.

These topics are discussed in more detail under the headings above and in the Advisory Projects completed by CarbonTP since incorporating in 2020.

Our Team can adapt its skills and experience to meet your bespoke Energy Transition challenges.

Our Services

CarbonTP offers clients a range of services under the following broad topics:

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