World Energy Solutions announced the company completed a landmark online auction event. Using the World Green Exchange, Verdant Energy, a leading Canadian power supplier, auctioned off Carbon Offsets (commonly referred to as green credits) under the recently established Alberta Offset System.
By leveraging the World Energy platform and working with Baseline Emissions Management, Verdant was able to sell its green credits to an online community of buyers. Verdant had previous indications that the value for its credits would be less than its desired benchmark price, and were very satisfied with the outcome of the quick and profitable auction.
News Highlights:
– As one of the largest regulated greenhouse gas emissions (GHG) markets in North America, Alberta is requiring large emitters to reduce emissions by 12% before March 31, 2008 or face financial penalties.
– To facilitate compliance, emitters have the option to pay into Alberta's climate change Technology Fund for $15 per Tonne.
– World Energy conducted six separate auction tranches, culminating in more than 80 bids.
– Three of the eight bidders were awarded a total of 80,000 Tonnes, resulting in a significant savings over what they would have had to pay into the Technology Fund.
Verdant Energy's credits resulted from their DAPP Offset project, an emission reduction initiative that produces electricity by burning biomass. Ordinarily, biomass is sent to landfill and emits methane through anaerobic decomposition. By diverting this waste to a biomass plant, methane emissions are replaced by carbon dioxide, an emission 21 times less potent than methane. Verdant will be in a position to offer additional credits in the coming months.
