Canada’s Polaris Geothermal International has announced plans to become a major supplier of Certified Emissions Reductions (CERs or carbon credits) to the expanding carbon market.
Canada’s Polaris Geothermal International, which is developing a 66MW geothermal project in Nicaragua, has announced plans to become a major supplier of Certified Emissions Reductions to the expanding carbon market.
‘Eighteen months from now, we’ll be producing 160,000 carbon credits on an annual basis. From the beginning of 2010 this will increase to 340,000 per year,’ said Polaris CEO Tom Ogryzlo, ahead of a trip to London this month. ‘We’ve made some initial sales to European and US buyers of 100,000 tonnes through December 31 this year. We are keen to meet other potential buyers.’
The sale of Certified Emissions Reductions, or carbon credits, provides Polaris with additional income over and above revenues from power sales. Polaris has a “take or pay” power purchase agreement to sell 66MW for 20 years to the Nicaraguan distribution subsidiaries of Union Fenosa, a large Spanish utility. In April 2006 Polaris became the first geothermal company to be registered to supply carbon credits by the UNFCCC.
Polaris was founded in June 2004 and shortly thereafter commenced construction of an initial 10MW installation at its San Jacinto concession in Nicaragua. This first stage has been in operation for over a year. Production is poised for expansion to 66MW in the next two and a half years. Polaris has also been exploring a second concession, Casita, which has an estimated capacity between 137MW and 200MW.
‘We now have enough equity for our work in Nicaragua, but in the coming months we will be seeking additional funds for renewable power production in other regions,’ added Tom Ogryzlo.