INEOS Fluor have agreed to sell 1 million certified emission reductions (CERs) to Carbon Compliance Acquisition Corporation 5, a wholly owned subsidiary of Natsource Europe Ltd. The company was established to engage in transactions in the carbon market. CERs created by the destruction of HFC23 at Ulsan Chemical, Korea from 2004 and 2005 will be delivered.
The CDM project activity at Ulsan Chemical (A company of Foosung Group) has been reducing emissions since January 2003. The Clean Development Mechanism’s Executive Board (CDM-EB) registered the project in March this year, enabling the project activity to generate CERs under the CDM.
The first verification of HFC23 destroyed ending March 2005 has been completed. The second verification to cover HFC23 destruction to the end of October should be completed later this month. Following approval of the first verification report by the Executive Board, which is expected shortly, Certified Emission Reduction (CERs) of 2004 and 2005 vintage, should be available by the end of this year. Following issuance of the first CERs, the contracted volumes will be forwarded directly to Carbon Compliance Acquisition 5’s account, within the CDM Registry.
In order for Carbon Compliance Acquisition 5, Ltd., to take delivery of these CERs, prior to the International Transaction Log being in place, the company has been made a project participant. UK DNA approval has been given and the UNFCCC have confirmed that all the necessary documentation has been submitted.
“This is a significant transaction for INEOS Fluor” commented David Price, CEO INEOS Fluor. “We are confident that the Executive Board of the CDM will be satisfied with the clarifications we have provided on the monitoring methodology, which will allow us to make the request for issuance of CERs from the Ulsan project.”
“Having first invested in this project in 2003 we will be very pleased to finally begin to see a return on this pioneering project,” Price concludes.
“Natsource is pleased to have worked work INEOS on this transaction. We have partnered with them on several projects over the past few years. We will use the company’s managed capital to execute additional transactions as the market continues to evolve,” said Jack Cogen, President of Natsource LLC.
For further information contact:
Richard Longden
INEOS Fluor Limited
Phone: +44 1928 513064
Email: richard.longden@ineosfluor.com
Martin Collins
Natsource Europe
Phone: +44 (0) 8213 5333
Email: mcollins@natsource.com
Note to editors:
- On the 1st March The Executive Board for the Clean Development Mechanism (CDM) of the Kyoto Protocol registered two of the world’s first industrial CDM projects. This important milestone will lead to significant, real and verifiable reductions in greenhouse gas emissions of more than 4 million tonnes of CO2e annually thanks to the involvement of INEOS Fluor Limited. Both projects, registered by the UNFCCC will reduce HFC 23 emissions, a by-product from the manufacture of HCFC 22 refrigerants. The first has been developed by Gujarat Fluorochemicals Limited in India, with INEOS Fluor as technical sponsors in the UK. The second, with the Foosung Group in Ulsan, Korea also involved INEOS Fluor through its Japanese business.
- INEOS Fluor Japan has successfully worked in partnership with the Foosung Group and UPC in Korea to develop a methodology ‘Incineration of HFC 23 Waste Streams’. One of the first proposals to receive the “Approved methodology” status in July 2003 from the CDM Executive Board. The project received approval from the Japanese Government in July 2003 and from South Korea’s DNA in July 2004 - the first CDM project to be approved by the Korean Government and now the 4th project to be Registered by the Executive Board of the UNFCCC.
- Hydrofluorocarbon 23 (HFC 23) is a potent greenhouse gas, if emitted to atmosphere. HFC 23 as a bi-product is a feature of all hydrochlorofluorocarbon 22 (HCFC 22) manufacturing facilities. HCFC 22 is a key material that is used in refrigeration and as a feedstock for PTFE. The emission of HFC 23 can be prevented but investment in technology is required.
- INEOS Fluor, is a world leading specialities business built on expertise and innovation in fluorine chemistry. The company is focused on the supply of fluorine-based products, technology and services across a number of major industries from pharmaceuticals to automotive, speciality polymers to refrigeration and air-conditioning. It has manufacturing facilities at Runcorn in the UK, Mihara Japan and St Gabriel in the United States. The company employs around 400 people world-wide. Its knowledge and understanding of reducing emissions from fluorochemical manufacturing facilities, monitoring and reporting put it in a strong position to partner companies seeking to improve their own environmental performance.
- Natsource has worked with INEOS Fluor on a number of transactions. The company is a pioneer in the development of the market that was created by the entry into force of the Kyoto Protocol on February 16th, 2005. Natsource Asset Management is currently the world’s largest private sector greenhouse gas asset manager in the world. The company will use its’ size and flexibility to develop pricing and transaction structures that enable sellers to meet their economic objectives. For further information visit http://www.natsource.com
For further information contact:
Richard Longden
INEOS Fluor Limited
Phone: +44 1928 513064
Email: richard.longden@ineosfluor.com
Martin Collins
Natsource Europe
Phone: +44 (0) 8213 5333
Email: mcollins@natsource.com