European company Electrabel has signed an Emission Reduction Purchase Agreement with TrustPower to buy carbon credits from one of its wind farms.
Electrabel will purchase 228,000 carbon credits from TrustPower’s Tararua II Wind Farm over the period 2008-12.
The Tararua II Wind Farm is an eligible project under the Joint Implementation mechanism of the Kyoto Protocol yielding Emission Reduction Units.
Electrabel will use the Emission Reduction Units to cover its commitments under the European emission trading scheme.
TrustPower trading manager Therese Thorn says the sale of Emission Reduction Units to Electrabel is a “great example of how businesses in other countries can effectively help pay for the cost of New Zealand investments in clean, green, sustainable energy and other projects”.
She says TrustPower is looking to place a further allocation of its remaining 1.1 million Assigned Amount Units produced from its renewable generation portfolio into the market soon.
TrustPower did not disclose the sale price. Assuming a carbon price near current EU trading levels of $30 a tonne, TrustPower would have netted around $7 million from the deal.
NewsRoom.co.nz Agency Story
Additional material has been added by NBR staff.
20 November 2007
|Wind Watch relies entirely
on User Funding