INEOS Fluor confirm forward sale of two million tonnes of Certified Emission Reductions (CERs) over six years to a European corporation.
INEOS Fluor has confirmed that it has reached agreement to sell two million tonnes of Certified Emission Reductions (CERs) to an undisclosed European corporate buyer. The company involved has committed to purchase a forward stream of CER’s over 6 years, beginning in 2006. The trade, which was brokered by Natsource Tullett (London), will help to cover the buyer’s needs, under the EUETS and the first commitment period of the Kyoto Protocol.
“As far as we are aware this is the first large scale forward CER trade between two private companies in Europe.” Commented Dave McGreal, INEOS Fluor European Commercial Manager. “The agreement serves to illustrate Europe’s leading position in this area, bringing together emissions trading and the use of CERs under the EU Emissions Trading Scheme, made possible from 2005 by the Linking Directive, agreed in the last month”
CDM is a growing business opportunity for INEOS Fluor as it invests in projects located in India and Korea. The skills the company has developed through involvement in the UK emissions Trading Scheme, its understanding of emission abatement technology and verification, have put it in a very strong position when working with partners in this area.
Commenting on behalf of Natsource Martin Collins, Head of Environmental Markets Europe, said: “This is one of the first of several private sector based trades that Natsource is currently structuring for their global client base but is the first of its kind in Europe. In Europe companies are beginning to appreciate the flexibility offered by the purchase of CERs, as compliance tools under the EU Emissions Trading Scheme (EU ETS)”.
In April, INEOS finalized the first contracts with Mitsubishi and Marubeni to supply CERs into Japan from its project in Ulsan, South Korea. Sales that were also brokered by Natsource. On this occasion INEOS had progressed a CDM project in Partnership with the Foosung Group in Korea, which was approved by the Japanese government in July 2003. The methodology, “AM0001 Incineration of HFC-23 waste streams”, was one of the first to be approved by the CDM Executive Board of the UNFCCC.
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For further information contact:
Richard Longden
INEOS Fluor
Email: richard.longden@ineosfluor.com
Phone: +44 (0) 1928 513064
Mobile: +44 (0) 7710 371998
Note to editors:
- A Certified Emission Reduction (CER) is the name that is given to a carbon credit from a CDM project. CERs are equal to one tonne of carbon dioxide equivalent (tCO2e).
- Industrial projects under the Clean Development Mechanism (CDM) of the Kyoto Protocol will have a positive environmental impact by significantly reducing emissions of Greenhouse gases cost effectively while meeting the sustainability criteria of the host Government. It is important to note that there are no regulatory requirements or commercial drivers to encourage such investment in non Annexe 1 countries and these projects simply would not happen without the CDM.
- 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 refrigeration to automotive, pharmaceuticals to electronics. The Company has manufacturing facilities at Runcorn employing some 250 people. The Company also has plant in Japan and the United States. Employing around 400 people the company supplies product to leading companies world-wide. Previously ICI Klea the company was acquired by INEOS in 2001 after which it was re-named INEOS Fluor.
- The CDM projects in which INEOS Fluor is involved are true partnerships, with well established commercial companies in non Annexe 1 countries. Through its expertise in emission reduction, the company works with these companies, as they develop projects to make ‘real’ reductions in greenhouse gas emissions, that meet the stringent requirements set out by UNFCCC and the CDM Executive Board.
- INEOS Fluor was one of the first companies in the world, in partnership with the Foosung Group in Korea, to have their methodology “Incineration of HFC-23 Waste Streams”, approved by the CDM Executive Board INEOS Fluor, has been recognised in the UK for its own emission reductions and is now setting the pace for CDM projects in the industrial sector. The company is committed to making emission reductions worldwide and is quickly developing a reputation amongst those involved in these projects as a leader in the field.