January 11, 2018 by Ronjoy Bezbarua
(Source: Press Release)
Two leaders in environmental markets, EOS Climate, based in San Francisco, California and Bluesource, headquartered in Salt Lake City, Utah, have reached agreement to transfer development and marketing of greenhouse gas mitigation projects to multiply their impacts in addressing climate change. Bluesource has acquired EOS’ market position with the intent to further enhance innovations in reducing emissions of ozone depleting substances (ODS) and other fluorochemicals. The transaction leverages both organizations’ success in creating profitable business opportunities and environmental performance across North America.
Founded in 2008, EOS pioneered market-based incentives to control emissions of fluorochemicals, the most powerful greenhouse gases. The company originated the ODS Destruction Offsets Protocol which has generated over 15 million metric tons of verified emission reductions for California’s cap-and-trade program, as well as greenhouse gas methodologies for advanced refrigeration technologies and reclamation and re-use of HFC refrigerants. EOS has won multiple awards for its market innovation and leadership. More recently, EOS Climate was instrumental in incubating Xpansiv Data Systems, which is now driving the seamless integration of environmental attributes in global markets (xpansivdata.com).
Bluesource has been a leader in developing and selling environmental attributes in North American markets since 2001, developing some of the first projects for the voluntary and compliance carbon markets. Bluesource is the longest-standing firm of its type in North America, with the largest and most diverse portfolio of environmental attributes (or environmental assets). The company has been recognized as a leader in carbon emission-based project development year after year. Most recently, Bluesource was recognized in the 2017 Environmental Finance Market Rankings as the Best Project Developer in all North American markets and the Best Offset Originator in the California market.
Bluesource President Roger Williams said, “We are thrilled to incorporate EOS Climate’s expertise, demonstrated track record and history of excellence into Bluesource. This enhanced skillset will enable us to provide a broader range of services to clients at a time when we are experiencing unprecedented demand for projects that deliver meaningful environmental benefits.”
EOS Climate co-founder Jeff Cohen said, “As market leaders with a shared vision and objectives around climate action, we are excited to be launching this new chapter with Bluesource. The collaboration benefits our clients with access to multiple market channels and world-class expertise, while giving us a tremendous resource as we build out our new technology platform for global commodity markets.”
While the future of credits generated from ODS projects post 2020 remain ambiguous considering the implications from AB398 which has put limitations on projects not having a ‘direct benefit to the state of CA’ (despite a majority of the ODS substances sourced from CA, the destruction facilities are out of state), Mr Williams said, “We are certainly seeing strong demand and pricing currently in the California market. The program certainty through 2030 is part of that story and we remain confident there will be value for these projects post 2020.”
With regards to any chance that Bluesource would also be diversifying to other protocols later on, Mr Williams said, “We have already created environmental benefits from over 20 offset project types across North America. Essentially all forms of methane abatement (landfill, wastewater treatment, mine methane, pipeline fugitive emissions), above and below ground sequestration, etc. We are consistently looking for ways to apply this skill set to deliver scalable benefits for the planet.”