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Offset Scorecard: Solvay Chemicals receive first credits; EOS Clean Harbors project gains 45,663 CCOs

February 1, 2016 by Rohan Nongpiur

CaliforniaCarbon.info, February 1, 2016: January’s second California carbon offset (CCO) issuance announcement saw 8 reporting periods from 4 projects awarded a total of 565,179 CCOs. Around 496 thousand CCOs were assigned to early action projects , whereas 70 thousand were awarded to ARB compliance projects. This takes the total CCO count to 36.61 million, while the CCO-3 count remains at 5.30 million.

First credits for Solvay Chemicals

The majority of the issuances during the recent announcement came from a mine methane project, Green River Trona Mine Methane (CAR629), managed by Solvay Chemicals, with a combined total of 487,676 CCOs across 5 reporting periods issued against it. Ruby Canyon Engineering were the early action offset program (EAOP) verifiers and this project was also listed under ARB compliance as CAR1105 on the 25th of February, 2015. This makes it the sixth mine methane project to obtain credits  under the California offset program and the fifth under early action. The issuance announcement puts Solvay Chemical’s as the third largest mine methane developer by volume of CCOs, approximately 10,000 CCOs above Verdeo McElroy who have garnered credits for 2 mine methane projects, and just 3000 CCOs behind Keyrock Energy’s count. Blue Source are the leading mine methane developers by volume of CCOs, after it’s North Antelope Rochelle Coal Mining Complex (VCS13) project was credited with over 1 million CCOs in the last issuance announcement.

EOS Clean Harbors project gains 45,663 CCOs

EOS Climate’s EOS ACR 285 project managed to gain 45,663 CCOs generated at the Clean Harbors facility located in El Dorado, Arkansas. The project was listed on October, 2015 and received registry offset credits (ROCs) on January 11th, this year. SES were the verifiers of the project.  Clean Harbors had previously made public its intentions to suspend all activity relating to the California compliance offset projects in the third quarter of 2014, when it was mired in an invalidation investigation. The investigation led to 88,955 CCOs from an EOS Climate project to be invalidated.

Out of the 10.62 million ODS CCOs generated so far under California’s offset program, The El Dorado facility has now contributed 7.1 million CCOs. However, only 1.9 million of this total have been generated under ARB compliance.

Camco credits 31,840 CCOs for 2 livestock projects

Two Camco projects, 1 each under ARB compliance and early action gained a combined total 31,840 CCOs. Camco’s Big Sky Dairy (ACR190) saw 24,558 CCOs credited for a reporting period spanning from October 2013 to October 2014. The project had previously gained 19,179 CCOs in May 2015, for an earlier reporting period.

Meanwhile, Camco’ Edaleen Cow Power (CAR980) was awarded 7,282 CCOs for a reporting spanning July 2012 to August 2013. First Environment were the EAOP verifiers and this project was also listed under ARB compliance as ACR239 on the 10th of February, 2015. A later reporting period spanning from September 2013 to August 2014 saw 9619 CCOs credited last November.

Camco now have 19 projects (59 reporting periods) credited in the California offset program. Meanwhile,  ACR190 is the only Camco ARB compliance project to have gained CCOs. Under ARB compliance, Camco has a further 20 projects that are pending ROC issuances, while 2 additional projects have obtained ROCs but are awaiting CCO issuances.

Pipeline update

The latest CCO issuances see the early action credit pipeline dive to 7.84 million, while the ROC pipeline now stands at 1.36 million.

Market update

Last week, prices for CCOs traded over-the-counter remained relatively stable. According to averaged bid and ask quotations from various brokerages, the Golden dropped a cent from $12.19 to $12.18, while the CCO-3 and the CCO-8 saw no change over the week to remain at $11.57 and $11.22 respectively.

Additionally, ARB also indicated last week on a separate update, that it is seeking offset project developers to participate in its Pilot Verification Program in order to assess different verification methods for projects performed under the Compliance Offset Protocol Rice Cultivation Projects. Under the pilot program, ARB will pay to perform the required regulatory verification and the alternative verification for the first two reporting periods of participating projects, which will be conducted by different verification bodies. It was also indicated by ARB that the verification cannot be used for the issuance of ARB offset credits. Interested parties will have to apply with their details by Mar 31, 2016, in order to participate in this program.

Next issuance

ARB will next announce CCO issuances on Wednesday, February 10, at 12pm PT.

Rohan Nongpiur (rohan@californiacarbon.info)

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