Carbon will be the world's biggest commodity market, and it could become the world's biggest market overall. - The New York Times

Transcription

1 Carbon will be the world's biggest commodity market, and it could become the world's biggest market overall. - The New York Times April 17, 2008

2 Carbon will be the world's biggest commodity market, and it could become the world's biggest market overall. - The New York Times Corporations in the United States spent more than $54 million last year on carbon offset credits towards: tree planting, wind farms, solar plants, geothermal, hydro plants

3 Carbon will be the world's biggest commodity market, and it could become the world's biggest market overall. - The New York Times To supply and manage the carbon offsets, big consumer brands are turning to a growing number of little-known companies, like Sterling Planet, and nonprofits, like Carbonfund.org

4 Stop Talking and Start Doing

5 Creating Environmental Attributes Carbon Offsets Taking Action to Stop Global lwarming Viability of Base Load Wind Turbines AGENDA Mark Graves CTS Account Executive Steve Gilbert Heartland Energy Solutions Vice President of Sales Financing Vehicles for Wind Projects Alan Elefson Bank of the West Vice President Great Plains Division

6 The intent is to mitigate Global l Warming. Carbon projects are developed for reasons of voluntary environmental stewardship, as well as legal compliance under a Greenhouse Gas Cap & Trade program. Voluntary carbon (GHG) reducers may wish to monetize reductions in their carbon footprint by trading the reductions in exchange for monetary compensation.

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8 Creating Environmental Attributes Carbon projects are developed for reasons of voluntary environmental stewardship, as well as legal compliance under a Greenhouse Gas Cap & Trade program. Voluntary carbon (GHG) reducers may wish to monetize reductions in their carbon footprint by trading the reductions in exchange for monetary compensation.

9 Creating Environmental Attributes Emission reductions are decreases in pollutant emissions or actually avoided emissions resulting from switching to cleaner fuels, improving energy efficiency, increasing renewable energy use.

10 Creating Environmental Attributes Program Criteria for GHG Projects Real Reductions Quantifiable & Measurable Permanent Additional Independently Verified Unique 80% of the entire domestic renewable energy market 80% of the entire domestic renewable energy market in 2006 was certified by Green-e.

11 Real Quantifiable Measurable

12 Real Quantifiable Measurable

13 Creating Environmental Attributes Carbon purchasers do not rely on one type of carbon sequestration, but a portfolio of different types sold by aggregators. A company does not buy just one forested area, for example, but several, along with, perhaps, rangeland and cropland. In addition to biological sequestration, they might pay to capture methane at landfills, switch from diesel to other less polluting emissions or pay for energy efficient light bulbs. It s like a mutual fund

14 Creating Environmental Attributes There is a perceived high value for environmental attributes for Colleges and Universities. The voluntary market is roughly $2 MH These large corporations that are purchasing attributes don t want to offset the Carbon Projects of Competitors

15 Creating Environmental Attributes What if we could Pool the Community Colleges Attributes? What would be the aggregate benefit? The Voluntary Market allows selling attributes from projects implemented as far back as 2006 (five year Vintage Limit) it)

16 Creating Environmental Attributes If there is interest CTS will work for Carbon Credits help facilitate arrangements with Sterling Planet to manage an Aggregate of Community Colleges Attributes. Certify attributes through Green-e and market attributes on the Chicago Climate Exchange

17 Program Criteria Unique The Community College must have clear ownership of the Attributes Projects implemented through utility rebates that are mandated may forfeit ownership of the Attributes to the utilities Projects implemented through Performance Contracts may have contract language where Attributes are assigned to ESCOs.

18 Viability of Base Load Wind Turbine American Wind Energy Association Wind and Hydropower Technologies

19 Viability of Base Load Wind Turbine Rated Speed 20 to 35 MPH Cut-In Speeds 8 to 10 MPH

20 Viability of Base Load Wind Turbine Large Class 3 Utility Grade Turbines (Class MPH) 15.8 Large utility grade turbines are not Economical without Grants $4 - $6 Million Higher Rated Speeds Low Capacity Factor Limited Availability and Service down-time can be extensive - inability to get parts in United States. Transportation can cost 20% of equipment costs Between 2004 to 2006 turbine prices increased 60%. At the end of 2006, all major manufacturers were booked up with orders through 2009

21 Viability of Base Load Wind Turbine Advancement of Technology Class 2 Wind Turbines (Class MPH) Innovative Developments in smaller wind turbines Designed Specifically for Isolated Grid and Distributed Generation Applications Highly Reliable Renewable Energy Cost Effective Low maintenance

22 Viability of Base Load Wind Turbine Advancement of Technology Class 2 Wind Turbines Heartland Energy Solutions Engineered/Designed for Class 2 Applications Accessible parts Pitch Regulated Blade Design Control Gearbox Transmission Improved Efficiency Multiple Wind Turbines offers system redundancies and Availability Factor Quicker Installation Schedules (less than 18 months)