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Renewable Energy/Carbon Credits. U.S. Energy Services, Inc & Wenck Associates, Inc. Agenda. Introductions Fundamentals Scope Results Recommendations. Accounting vs Monetization. Accounting Quantify and report GHGs from all sources in an organization (facility or enterprise)
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Renewable Energy/Carbon Credits U.S. Energy Services, Inc & Wenck Associates, Inc
Agenda • Introductions • Fundamentals • Scope • Results • Recommendations
Accounting vs Monetization Accounting • Quantify and report GHGs from all sources in an organization (facility or enterprise) • Example: emissions reported to The Climate Registry Monetization • Focus on ‘project specific’ GHG reductions or generation of renewable energy (e.g. methane) • Reductions or creation of renewable energy must be certified and credits can be sold (monetization)
How do we create GHG Value? • 6 Major Greenhouse Gases • Carbon Dioxide • Methane • Nitrous Oxide • Hydroflourocarbons • Perfluourocarbons • Sulfur Hexafluoride • Metric Ton of CO2 equivalent (Mton CO2e) Monetize – Create and Exchange Environmental Assets for cash!
What is the Value? • Average Price in 2009 • $4-$5.00 per Mton CO2e* • Heavily dependent on “Quality” • What is Quality • High Additionality • Co-Benefits • Offset Standard • Buyer Motivation *Source: Voluntary Carbon Index, March-April 2009. New Carbon Finance 2009 $4.00
Project Overview • Project Review • Additionality Review • Project Baseline • Applicable Standards • Determination of Credits Available • Valuation • Renewable Energy
Projects Reviewed • Metro Fluid Bed/Co-Gen • Empire Flare • Metro Diffuser Set Point • Metro Diffuser Predictive Maintenance • Blue Lake • Algae Project
Market Look • Not all reductions are created equal • Practical hurdles to overcome • Cost • Buyer interest • Existing methodologies • Project Risk • Low carbon price • Renewable Energy is a nice fit
Recommendations • Additionality Review • Monitoring & Measurement • Early Action Credits • Standards Comparison • Current Methodologies • Project Type • Volume • Financial Sensitivity Analysis
Thank You • Bob Peplin (763) 479-4220 work (612) 799-5297 cell bpeplin@wenck.com • William Brown (763) 479-4212 work (678) 548-4861 cell bbrown@wenck.com • Beau Griffey • (763) 543-4683 work • (913) 488-5820 cell • bgriffey@usenergyservices.com