Montreal, February 6, 2007: Evolution Markets Inc. announces today it has brokered a trade of carbon reduction credits under the Kyoto Protocol’s Clean Development Mechanism (CDM) between the Government of Luxembourg and Biothermica Energy Inc. The sale of certified emissions reductions (CERs) from its landfill gas-to-energy project in El Salvador marks the first trade by Biothermica Energy, a Montreal based project developer.
Under this transaction, Biothermica Energy agrees to sell 325,000 CERs to the Government of Luxembourg. Biothermica Energy is selling carbon credits created from its landfill gas-to-energy project at the Nejapa Landfill Site in El Salvador. The Nejapa project qualifies under the Kyoto Protocol’s Clean Development Mechanism, and credits sold to the Government of Luxembourg will be generated between 2006 and 2012.
Thanks to the know-how developed by Biothermica Energy over 20 years in landfill gas recovery and in the reduction of greenhouse gas (GHG) emissions, the company realizes one of the first Canadian projects in this particular field in accordance with the Clean Development Mechanism. "The carbon market is presently in full swing,” according to Mr. Guy Drouin, president of Biothermica. “And although the Canadian government has not yet endorsed carbon trading, we do not hesitate to invest in such projects abroad considering the considerable market-based opportunities that exist to counter the GHG emission responsible for climate change.”
“Biothermica’s trade with the Government of Luxembourg is a perfect example of how the Clean Development Mechanism is designed to work,” said Andrew Ertel, President & CEO of Evolution Markets Inc. “Carbon financing from the sale of CERs makes this El Salvadoran landfill gas-to-energy project possible. On the other side, Luxembourg is able to reduce its overall greenhouse gas emissions.”
The Nejapa landfill receives municipal solid waste from the San Salvador metropolitan area. This two-phase project will initially collect and flare methane gas. At a later stage, the project will complete a 6MW landfill gas-to-electricity system, creating further greenhouse gas emissions reductions. In addition, Biothermica Energy’s Nejapa project was the first to receive a guarantee from the Multilateral Guarantee Agency (MIGA) of the World Bank in July 2006. The MIGA guarantee covers certain sovereign and non-commercial risks, which might affect the performance of the project. The Nejapa project is registered with the CDM Executive Board (No. 0167).
“We are very pleased to have completed this first trade,” said Mr. Drouin. “With its sound and verifiable method for reducing greenhouse gases and the World Bank’s MIGA guarantee, the Nejapa project was well structured for the market. Ultimately, this trade demonstrates the ability to leverage carbon markets to bring the latest landfill gas-to-energy technology to Latin America, ultimately benefiting the global environment.”
The Clean Development Mechanism is a market tool created under the Kyoto Protocol to encourage investment in greenhouse gas emissions reduction projects in the developing world. Developed countries that have committed to reduce greenhouse gas emissions under the Protocol may use credits derived from CDM projects to meet their obligations. Luxembourg has signed and ratified the Kyoto Protocol and is part of the European Union’s group of nations that have committed to cumulatively reduce greenhouse gas emissions 8% below 1990 emissions by the year 2012. In this context, Luxembourg has committed itself to a 28% reduction target.
About Evolution Markets Inc.
Evolution Markets Inc. is the largest global broker of environmental products. Formed in 2000, the company structures transactions in the global carbon, U.S. emissions, renewable energy, weather derivative, and over the counter (OTC) coal, natural gas, nuclear fuel, and biofuels markets. Evolution Markets personnel are pioneers in energy and environmental markets having facilitated the first trades in Kyoto carbon credits, European emissions allowances, SO2 allowances, NOx allowances, ERCs in several states, weather derivatives, and OTC natural gas and coal trades. Based in White Plains, NY, Evolution Markets serves clients on five continents from offices in New York, San Francisco, London, Calgary, Bratislava, and Prague.
About Biothermica Energy Inc.
Founded in 1987, Biotermica is a technology corporation specialized in the development design engineering and construction of turn-key projects related to thermal treatment of gas and waste. It has three divisions: the Air Pollution Control Division, the Landfill Gas Management Division and the Energy Division. The mission of the Energy Division essentially lies in the landfill gas management, biomass and all available renewable forms of energy and in the optimal integration of these resources. The Division is capable of leading all the necessary stages of realization of energy production projects, from feasibility studies to their conception and completion. The Division also use its laboratories to develops technologies utilizing biomass and solid waste (gasification and pyrolysis). It also innovates at the level of integration of the various forms of renewable energies. www.biothermica.com