Canadian Consortium of Energy Companies Buys Greenhouse Gas Reductions from Ontario Landfill Operator
September 21, 2004 – The
Greenhouse Emissions Management Consortium (GEMCo) is maintaining its
position as a leading buyer of greenhouse gas (GHG) Emission Reduction
Credits (ERCs) with its recent payment for 63,750 tonnes (in carbon dioxide,
CO2, equivalents) to Integrated Gas Recovery Systems (IGRS)
of Niagara Falls, Ontario. IGRS’s 2004 GHG ERC Claim is the first of
a series of annual claims that GEMCo will pay for under a firm forward
agreement that requires IGRS to reduce GHG emissions at their Ontario
operations by a total of 850,000 tCO2e over a 10-year term.
is a consortium of Canadian energy companies focusing on the development
of market-based strategies that reduce greenhouse gas emissions. IGRS provides
specialized services to the privately-owned Niagara Landfill. Four of GEMCo’s
current members participated in the long-term ERC purchase agreement with
reductions are created when IGRS collects methane-containing landfill gas
(LFG) that would normally be released to the atmosphere from the landfill
site, processes and compresses the LFG, and then moves it 3 kilometers by
pipeline to a paper mill. At the mill, the LFG is blended with natural gas
and the blended gas stream fuels the boilers. GHG emission reductions result
from the conversion of the methane to carbon dioxide, through the combustion
process, when the methane would otherwise have been released directly to
the atmosphere from the landfill site. Methane is a GHG that has 22 times
more destructive, in terms of global warming potential, than carbon dioxide.
LFG recovery and utilization project, which became operational in 2002, enables
the mill to reduce its demand for natural gas and makes a productive fuel
out of a common waste gas that is produced when landfilled organic material
decomposes. Used in this manner, LFG is classed as green or renewable energy.
The project required revenues from GHG ERC sales to be economic over the
long run. GEMCo and IGRS started negotiating the terms of an option call
on the project’s GHG ERCs in 2000. GEMCo exercised its option call on the
long-term ERC supply agreement with IGRS in December 2003.
generate revenues from GHG ERC sales, plant owners document and audit key
operating activities and demonstrate that overall facility GHGs are lower
than pre-project levels, industry standard practice, and what they would
be if the plant was operated in straight compliance with any operating or
environmental codes and regulations that will apply at the plant over the
term of the ERC sales agreement. GEMCo members
help curb Canada’s high national GHG emission growth rates by creating a
forward market for these “beyond compliance” investments in every part of
the Canadian economy where GHGs can be cost-effectively reduced. In
most cases, ERCs will eventually be surrendered to Canadian environmental
regulators in partial compliance with future emission cap and trading rules
that require Canadian emitters to reduce greenhouse gas emissions per unit
are very pleased to participate in a major GHG credit trade that takes place
in the heart of Ontario," says Aldyen Donnelly, President of GEMCo. Walt
Graziani, President of IGRS, welcomed the use of emission reduction funding
to accelerate reduction projects.
Donnelly and Graziani agreed that this project generates real reductions
in emissions that will be important in any regime that might be implemented
in the future, whether the Kyoto Accord comes into effect or not.
More Information, contact:
and Victoria, Canada
Integrated Gas Recovery Services Inc.
Thorold ON, L2V 3Y8 Canada