BEST IN EMISSIONS CREDITS

Using round numbers, Rhodia paid about 60 euro cents/credit for 15 million credits and sold them for about 14 euros each, a total profit of about 210 million euros ($297 million). Think there’s money to be made in carbon trading?

Meanwhile, the current US administration's excuse for not getting involved in the market is that it would hurt the economy. It will only hurt if US traders don't figure out how to play the emissions markets. Yeah. That's likely. Right after the sun starts rising in the west.

Rhodia S. Korea plant leads world in carbon credits
September 21, 2007 (Reuters via Yahoo News Malaysia)

WHO
Rhodia Energy Services (Philippe Rosier, President, and Rita Hillig, Head of Media Relations)

Republicans like markets, right? So how about getting the US into this market and mixing it up with the world? (click to enlarge)

WHAT
Using Rhodia-developed emissions reduction technology, Rhodia’s South Korean adipic acid chemical plant (part of nylon manufacture) received almost 10 million certified emission reduction (CER) credits under the UN Kyoto Protocol Clean Development Mechanism (CDM) procedures, which were sold to industrial companies and businesses seeking to offset their own excess emissions, at 14.40 euros to 14.50 euros/credit.

WHEN
- The CER totals are for 2007. More CER sales are expected for 2008.
- Between 1990 and 2010, Rhodia will have cut emissions 56%. The sale of CERs has saved the company.

WHERE
- The plant is in Onsan, South Korea.
- Rhodia is based in France. It has a similar chemical plants in Brazil.
- With its emissions control technology, Rhodia cut emissions at its Chalampe, France, plant by 20 million tons CO2e/year.

WHY
- 1 CER = 1 ton of emissions (CO2 equivalent) cut. Traded worldwide.
- 2nd place: Hydrofluorocarbon plant in India – 8.7 million CERs for 2004 thru 2007 emissions reductions
- Current CER price: 16.70 euros (1 euro = $1.41)
- Emission: nitrous oxide , 310 times more potent than CO2. The Osnan plant’s emissions were cut by more than 10 million tons.
- Rhodia revenues from CER sales, first half of 2007: 84 million euros. Operating profit: 77 million euros (31% of company overall operating profit)



QUOTES
- Hillig: "I can confirm that we've sold all CERs expected to be received in the second half of 2007 for an average price of 14.40 euros...I can also confirm that we've sold forward five million 2008 CERs at an average price of 15 euros...We expect to sell between 11 million and 13 million CERs generated annually by both CDM plants ..."
- Hillig,on the Chalampe, France, plant "We have received no credits or payback from N2O reductions made at that plant..."