EcoSecurities is an aggregator of carbon credits and also invests directly in projects that produce carbon credits. The Ventilation Air Methane (VAM) Project was an opportunity to break into a new sector with large potential, and the economics and risks of the project needed to be assessed.
1. Estimate the CFs from operations and the NPV for the VAM project.
2. What is the highest rate for Tecterra's lease fee such that the project is still viable for EcoSecurities?
3. Estimate the value for the scenarios of UN approval or not, including the resulting impact on CERs prices. Estimate the expected value of the project based on the probabilities of UN approval.