Tag Archives: carbon-markets
BP Backs Texas Carbon Capture as Skyonic Gets $128 Million Funds
By Sally Bakewell – Jun 25, 2013 2:00 PM GMT BP Plc (BP/) part-funded an emissions project at a Texas cement plant, betting that plans to turn the gases into chemicals for sale will succeed where traditional carbon-capture proposals have failed. BP, Cenovus Energy Inc. (CVE) and other investors in developer Skyonic Corp. pledged a total of $128 million, Skyonic Chief Executive Officer Joe Jones said in Austin, where the company is based. It plans to trap 83,000 metric tons of carbon dioxide a year from Capitol Aggregates Inc.’s plant in San Antonio . Skyonic expects to profit from global efforts to curb industrial emissions by trapping and “mineralizing” CO2 into byproducts such as hydrochloric acid and baking soda. While countries including the U.S. and Britain have sought to capture carbon from power plants for burial underground, such projects are yet to operate on a commercial scale. “It signals to the whole world that we have another alternative for carbon capture besides the pipeline-it-and-pump-it-in-the-ground solutions that have failed to take off,” Jones said in a telephone interview. BP is supporting the venture even after scrapping a carbon-capture project in Scotland. It has developed a “portfolio of investments that could yield valuable innovations in carbon capture and storage, carbon conversion and solutions for carbon markets,” the London-based company said on its website. The Skyonic funding includes $80 million of loans from Apollo Investment Corp. (AINV) and Maxus Capital Group LLC, according to Jones. It also won financing from new investors Bluecap Partners, Toyo-Thai Corp. PCL and Energy Technology Ventures. PVS Chemicals Inc., the Detroit-based chemicals maker that will buy the hydrochloric acid, contributed funds too, he said. Skyonic plans to start production next year. The facility will capture CO2, acid gases and metals from the flue gas and turn them into products for sale that will generate profit at the plant within three years, according to the company. To contact the reporter on this story: Sally Bakewell in London at sbakewell1@bloomberg.net To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net Continue reading
EU Carbon Price Back-Loading Earns Second Chance?
Posted on 21 June 2013 by Vicky Ellis Beleaguered plans to postpone or “backload” carbon allowances under the EU’s Emissions Trading Scheme have been given a boost after MEPs on the EU’s environment committee voted for them a second time. The EU ETS is meant to push businesses towards cutting their emissions by putting a cost on the carbon they emit but allowances have plunged in price from €30 to below €5 a tonne. The EU parliament narrowly rejected the back-loading proposals in April meant to boost this low price but this week’s vote gives back-loading another chance. The European Environment, Public Health and Food Safety (ENVI) Committee’s proposals would delay the auction of 900 million allowances for carbon emissions from 2013-2015 until 2019-2020. Matthias Groote of the ENVI committee who is steering the legislation through the EU Parliament said: “We now have broader support for a solution that will allow the ETS to fulfil its purpose and support innovation to tackle climate change. I believe the full Parliament will endorse our proposals and let us start negotiations with EU ministers as soon as possible.” Dirk Forrister, President & chief executive of IETA which represents the business community’s views on the carbon markets said the “compromise text” amongst the largest political groups is “an important first-step” ahead of the vote by all MEPs in a couple of weeks. Markus Rauramo, CFO at Finnish energy firm Fortum said he hoped the Parliament and the Council can finalise the decision “rapidly”, adding: “Almost all market-based energy investments are currently on hold in Europe because of the uncertainty regarding the future climate and energy policy frameworks.” The new text is to be put to a plenary vote on July 3 in Strasbourg. Continue reading
Chinese Carbon Pollution: Buy Or Sell?
Chinese carbon pollution: Buy or sell? PHILIPPE LOPEZ/AFP/Getty Images The Chinese city of Shenzhen is seen in the distance beyond a landfill. http://www.marketpla…1/player/popout by Rob Schmitz Marketplace Morning Report for Tuesday, June 18, 2013 Today, China launches a new pilot carbon market in the southern city of Shenzhen. Carbon cap and trade schemes have had a hard time getting off the ground in other countries. Can China make it succeed? China is requiring 635 companies to purchase carbon permits for trade in the new market. Durwood Zaelke, president of the Institute for Governance and Sustainable Development, hopes it will succeed though it hasn’t worked well in other countries. “There’s been cheating, there’s been bogus credits created and sold in different European markets,” Zaelke says. Anyone who’s operated in China knows that cheating and bogus-anything is synonymous with doing business there. So, Zaelke has a question for China: “Is China able to learn how to do compliance?” he asks. “Because if you don’t have strict compliance when you’re doing a trading system, it will not work.” If China is able to make its first carbon market thrive, Beijing has promised to launch a national carbon market in 2015. About the author Rob Schmitz is Marketplace’s China correspondent in Shanghai. Continue reading
