News
AgCert, Nuon Close Large CDM Deal
Source: PointCarbon
MELBOURNE, Fla., and ALBERTA, Canada, November 11, 2004
AgCert International and Dutch utility Nuon have announced a transaction of several million tonnes Certified Emission Reduction (CERs). All the CERs will be delivered to Nuon between 2005 and 2007 – the first phase of the EU emissions trading scheme.
“Nuon intends to use this tonnage to fulfil its own EU emissions trading scheme (ETS) compliance targets and to hedge the portfolio of certain key customers,” the company said in a press release.
GT Energy was the introducing broker in the trade, while Baker and McKenzie represented AgCert for the transaction. While the exact amount of CERs in the deal is not disclosed, only stated as a relatively vague “several million”, the volume is understood to be substantial.
Said Jogchum Brinksma at Nuon’s Sourcing & Trading division:
“This deal is unique in its high volume of CERs, both to meet the offset requirements of Nuon’s own power generation emissions as well as those of its industrial customers.”
AgCert has positioned itself as one of the largest sellers of CERs in the market, due to the sheer potential of its approved methodology. The methodology used by AgCert reduces both methane and nitrous oxide emissions in the agricultural sector and is approved by the CDM Executive Board. It will allow AgCert to produce “tens of millions of CERs on an annual basis”, according to AgCert. AgCert’s current projects are farm systems in Brazil and Mexico.
“The opening of the emissions credit market in Europe offers very substantial opportunities fro AgCert as one of the very few companies able to supply credits on an industrial scale,” said Merrick Andlinger, AgCert Chairman.
AgCert
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