Become a part of the climate solution, by turning inefficient hydrocarbon wells into zero-carbon assets.
Unlike planting trees, plugging a gas or oil well is an irreversible action that shuts in hydrocarbons—and their associated emissions—forever.
By following the stringent ZeroSix protocol, any operator in the oil & gas industry can create a significant amount of high-quality carbon credits, defined by:
Proof of Accuracy
ZeroSix carbon credits are based on highly regulated government agency reporting about fossil reserves. These proofs are automatically anchored to the Energy Web blockchain, making the process seamless for producers.
Proof of Additionality
ZeroSix carbon credits are only created for proven reserves and producing wells that would have otherwise extracted, refined, and/or burned the oil or gas.
Proof of Permanence
ZeroSix carbon credits require that associated fossil reserves are never extracted, and includes insurance against the unlikely event of reversals.
ZeroSix carbon credits are independently verifiable through blockchain and other decentralized digital technologies.
The ZeroSix token is created only after the project owner has:
These steps, ensuring accuracy, additionality and permanence, are anchored to the Energy Web Chain (EWC) by storing documents on IPFS and securing the document hashes on the EWC, resulting in a full provenance trail. This yields a transparent carbon token, where anyone can independently verify the full provenance of a token, creating transparency in an opaque carbon credit market.
If all steps have been completed successfully, the ZeroSix ERC-1155 token is minted and assigned to the well owner. The well owner is then free to sell, retire, or hold the tokens.
EWC: The EWC is a low-cost and energy-efficient proof-of-authority blockchain built by and for the global energy sector.
ERC-1155: The ERC-1155 token allows for both fungible and non-fungible components. The non-fungible component includes information that is unique and specific to a token such as information about the well from which the token has been generated, this helps ensure traceability. The fungible component includes information that is uniform across all tokens, for example each token represents one tonne of CO2e. The fungible component helps ensure the tradability of the token. In other words, the ERC-1155 standard combines the best of both worlds.
A carbon credit is only as good as the standard to which it is held.
The ZeroSix tokenized carbon credit is an evolution beyond business as usual, setting a new standard for accuracy, additionality, permanence, and transparency.
Based on SEC standard for calculating reserves, we can be certain about the CO2 emissions avoided. Two barrels of oil = 1 tCO2e = 1 carbon credit.
When surfaced, the oil or gas would have been consumed with CO2 emissions as a result .
Once oil & gas is shut in, this is forever.
Anyone can verify the provenance.
While carbon credits have an important role to play in the global campaign to achieve net-zero, oftentimes credits such as those derived from nature-based solutions are downstream and in a different vertical than the emissions they’re offsetting. They originate in one sector but are used to offset emissions that have already happened in another sector.
ZeroSix carbon credits are different. They’re based on upstream avoided emissions directly from the fossil fuel industry, by leaving proven oil & gas reserves permanently in the ground, unextracted and unburned.
Buyers may purchase tokens by searching available projects via the ZeroSix platform. An overview of eligible projects will be generated based on the selected search criteria. Once the buyer has chosen and bought tokens from a project, these tokens are transferred to the wallet of the buyer and can be freely transferred out of the platform and traded peer-to-peer, providing full autonomy to the user.
Carbon token holders can “retire” their tokens to compensate for emissions, resulting in a time-stamped and signed certificate that can be used for reporting purposes.
Retired carbon credits are locked and cannot be exchanged, withdrawn to another wallet address, or transferred to another user. The tokens remain verifiable, able to be found through a block explorer. This helps third parties to verify climate claims made by token holders, and adds transparency to the ZeroSix solution.
Although we’re starting with a first tranche of ‘leave it in the ground’ fossil fuel-based carbon credits, that’s just the beginning. The ZeroSix solution is flexible. In the future, we anticipate onboarding other types of high-quality carbon credits, such as those generated from direct air capture (DAC) carbon dioxide removal solutions, among many others. These and other protocols will be governed by a fully decentralized and independent body.
With a groundbreaking focus on the U.S. oil & gas sector, ZeroSix incentivizes producers to leave their reserves unextracted and unburned, in exchange for blockchain-native, high-quality carbon credits