Dec 1 2005
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.
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