Five power companies have issued an RFP seeking greenhouse gas offset proposals for more than 10 million tons of carbon dioxide-equivalent emissions sourced from projects within the U.S. The Greenhouse gas offsets are for compliance with current and future mandatory climate change policies as well as for use to attain corporate emission reduction goals. This is likely the largest offset acquisition effort to date focused exclusively on the U.S. offset market, according to the companies.
The participants in this Initiative, dubbed the U.S. GHG Offset Acquisition Initiative, are: Conectiv Energy Supply; Dominion Resources Services; Entergy; NRG Energy; and Public Service Enterprise Group. Collectively the participants’ annual revenues exceed $60 billion and their total power generation capacity exceeds 100,000 megawatts.
The first window is for projects that will generate offsets intended for use in the Regional Greenhouse Gas Initiative. The companies are interested in projects in any of the five eligible project sectors as well as any project located in a RGGI-participating state, regardless of sector. The states currently participating in RGGI include: Connecticut, Delaware, Maine, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Vermont. RGGI eligible sectors include: landfill gas capture and destruction, manure methane capture and use, reduction of SF6 emissions in the electricity transmission and distribution sector, end use fossil fuel efficiency in the commercial and residential sectors, and afforestation.
The second RFP window is for projects that do not fall within the RGGI offset sectors and are located outside of a RGGI state. The Initiative participants are interested in a wide variety of U.S. based GHG reduction opportunities and project applicants of all types are encouraged to submit a proposal under the RFP.
It is anticipated that the process of selecting projects and finalizing emission reduction purchase agreements will be completed by February 2008.