RemTec International Extends a Five-Year Agreement with DoloMatrix as Exclusive Representative for Plasma Arc ODS Destruction Technology

RemTec International Extends a Five-Year Agreement with DoloMatrix as Exclusive Representative for Plasma Arc ODS Destruction Technology in North America - Producing High Quality Offset Credits for the Carbon Compliance Market

BOWLING GREEN, OH, USA – (Business Wire) – RemTec International, the largest privately-owned reclaimer of halons and refrigerants, announced today the extension of its five year agreement with DoloMatrix International, Ltd., to be the exclusive representative for SRL Plasma’s Plascon® equipment in North America, designed to destroy Ozone Depleting Substances (ODS). The Dolomatrix destruction technology along with RemTec’s patented recovery and reclaiming equipment, produces carbon offset credits that exceed the requirements of a newly released Climate Action Reserve (CAR) Ozone Depleting Substances Project Protocol. This protocol delivers permanent greenhouse gas (GHG) emission reductions for the carbon compliance market.

“The combination of our technologies and services provides the ultimate in transparency, tracking and accountability. In addition, Plasma Arc Destruction is environmentally superior to high temperature incineration.”

“We can provide superior carbon offset credits because the combined technologies of RemTec and Dolomatrix use Technology & Economic Assessment Panel (TEAP) testing methodology, specifically designed to measure the destruction of ODS. In addition, our detailed tracking and documentation system follows individual shipments from the source to final destruction. When combined with our online real-time computer monitoring, our system provides complete transparency to carbon offset providers, verifiers and outside regulatory agencies on a 24 hour basis.

“This represents the first phase in our efforts to establish regional facilities that offer cradle to grave management of halons and refrigerant gases that are high ozone depleters, or that are high in global warming potential. In addition to our existing processing plant in Bowling Green, Ohio future operations are also planned in the Middle East and Asia.”


Mr. Marcus concluded by saying, "Through the combination of our proprietary technologies, we are able to offer an enhanced ODS Destruction Protocol. This is very timely, especially considering certain recent Amendments to Senate Bill 1733, Clean Energy Jobs and American Power Act, that were introduced by Senators John Kerry (D-MA), Lindsey Graham (R-SC), and Joe Lieberman (I-CT). This Bill specifically recognizes offset credits for ODS destruction for both domestic and international projects.”


ABOUT REMTEC INTERNATIONAL

Established in 1986, RemTec International is a world leader in the recovery, reclamation and destruction of Halons and Refrigerants. RemTec’s Halocarbon Management Program uses patented technologies that avoid emissions that either destroy the ozone layer, or add to global warming potential. RemTec's unique approach facilitates safe disposal of unwanted Halons, CFCs, HCFCs, and HFCs on a worldwide basis. These hazardous substances are recovered, reclaimed, and in some cases destroyed in accordance with all domestic and international regulatory standards. For more information, please visit http://www.remtec.net/

RemTec International
1100 Haskins Road
Bowling Green, Ohio, 43402
USA

419-867-8990
419-867-3279 (Facsimile)800-372-1301 (Toll Free / North America)

RemTec's Ability for ODS destruction to help your business

Here is some information on the basics of Carbon Credits from ODS destruction that may help your business. RemTec International is an EPA certified refrigerant reclaimer with separation/distillation towers, an AHRI certified laboratory, and the only commercial Plascon Arc Plasma Destruction of halocarbons facility in the United States. RemTec is expanding its role as a Project Developer and Aggregator for the Climate Action Reserve (CAR) and invites you to learn how RemTec can assist in processing CRTs from the destruction of virgin or MIXED CFC refrigerants for you.

Carbon Credits, or Offset Emissions, are issued by the CAR for the destruction of R11, R12, R114, and R115 based on the Global Warming Potential (GWP) of each CFC destroyed. After proper destruction and compliance with all of the protocol requirements including independent verification, the CAR will issue or deposit CRTs (Carbon Reserve Tons) or “shares” of carbon credits representing the MTCO2e (equivalent Metric tons of Carbon Dioxide) in an account set up for the project developer or owner of the CFCs that were destroyed. The CFCs can be mixed with other refrigerants or they can be pure, but credit is only issued for the actual destruction of qualifying CFCs included in the mix. Carbon credits are not eligible for destroying Halon, R-113, R-22, R134a or other HCFCs and HFCs. MIXED refrigerants (less than 90% purity of a single CFC) also require very specific pre-destruction procedures that RemTec offers to its customers.

Also known as “environmental commodities”, CRTs are like all other commodities such as corn and wheat, and have “offered and bid” prices that fluctuate daily on the “over the counter” market based on factors such as news, the economy, but mostly on supply and demand. The good news is that when the trading price goes up, the value of the shares in your account goes up. But when it goes down, so does the value of your unsold shares.

Carbon Credit FAQs

What are Carbon Credits for ODS Destruction anyway?

Very simply, they are INCENTIVES. A Carbon Credit is generated when the equivalent of one metric tonne of carbon dioxide is prevented from entering the atmosphere. When just one ton of ODS is destroyed, it prevents thousands of times more chemicals from entering the atmosphere, than a ton of carbon dioxide. Therefore, it is important that ODS be destroyed and never be deliberately or accidentally discharged into the atmosphere. Carbon credits have been created to offer incentives for the destruction of ODS.

These incentives are issued by The Climate Action Reserve (CAR) or the Chicago Climate Exchange (CCX) or the Voluntary Carbon Standard(VCS), following the proper and well-documented destruction of eligible ODS material. These incentives or carbon credit certificates can then be sold on the open market for CASH to help offset the cost of destruction.

How much are Carbon Credits Worth?

Each carbon credit certificate can be traded (bought and sold) on the open market like other commodities are traded. Carbon Credits fluctuate with supply and demand. Demand depends on the buyers who are voluntarily being good stewards of the earth’s climate and want to participate in reducing global warming threats and also by buyers who are legally mandated to reduce their carbon emission activities or their carbon footprints. The carbon credits will be much more in demand if the Cap and Trade program is adopted by the U. S. Senate, like the one that has already passed in the House of Representatives in 2009. As the economy begins to recover, the need or demand for carbon credits will also increase. Today, they are worth between $3.00 and $8.00 depending on numerous market variables.

How are Incentives for the Destruction of ODS Calculated?

RemTec is a proud member and Project Developer for The Climate Action Reserve or CAR. The CAR is a U.S. private, nonprofit organization representing international interests, in addressing climate change and bringing together participants from the governmental, environmental and business sectors. It works to ensure environmental benefit, integrity and transparency in greenhouse gas (GHG) emissions accounting and reduction and progressive movement in GHG emissions policy nationally and in the Western U.S. The Climate Action Reserve continues building on the California Registry’s reputation as a respected and internationally recognized leader in climate change issues. For additional information, please visit www.climateactionreserve.org.

The CAR recently adopted two new offset project standards that could lead to millions of metric tonnes of greenhouse gas (GHG) emissions reductions. Targeting the destruction of Ozone Depleting Substances (ODS), the U.S. ODS Project Protocol and the Article 5 ODS Project Protocol provide financial incentives for destruction of ODS in the U.S. and developing countries. Because ODS can be thousands of times more damaging than carbon dioxide (CO2) at trapping heat in the atmosphere, ODS destruction offset projects may produce hundreds of thousands – or even millions – of offset credits.


What ODS chemicals are eligible for destruction?
The CAR Protocol provides incentives for the destruction of R-11, R-12, R-114 and R-115 only if they were previously used in refrigerant applications or are from virgin stockpiles. Other CFCs recovered from foam building insulation and from appliance insulation may also be eligible.

If the material is imported to the USA from certain developing countries, referred to as Article V member countries in the Montreal Protocol, it is also eligible, and R-113 is also added to the list of eligible CFCs.

How does RemTec Destroy ODS?.

RemTec utilizes a high-efficiency Plasma Arc technology that is designed to break down halocarbons and other organic matter, at an ultra high efficiency rated in excess if 99.9999%. Since the only significant effluent is a salt solution, this technology is considered safe to operate and environmentally friendly. RemTec’s Plasma Arc Destruction System meets or exceeds all TEAP performance standards.
Follow this link for more information: http://www.remtec.net/eudisposal_destruction.html

Carbon Credits offer incentives to recover and destroy ODS. The Destruction of CFCs prevents Global Warming and damage to the Ozone Layer.

The Climate Action Reserve (CAR) has formally released a Destruction of Ozone Depleting Substances (ODS) Project Protocol and an Imported Ozone Depleting Substances Project Protocol. These protocols will provide a standardized approach for quantifying and monitoring the GHG reductions from projects that destroy domestic or imported ODS with high global warming potentials that otherwise would have been vented to the atmosphere. RemTec has been participating in this project by serving on the Workgroup that provided input to the CAR. The protocols are available at this link:
http://www.climateactionreserve.org/how/protocols/adopted/ods/current/

RemTec offers destruction services for ODS destruction using the patented Argon Plasma Arc technology and will be following all procedures to qualify ODS destruction for CAR protocols. Depending on market conditions, these offset credits could cover all the costs of destruction and provide additional incentives to convert to CFC alternatives. Upon successful destruction and verification, CAR issues “Carbon Reserve Tonnes” or CRTs recognizing the emissions of CO2 avoided. The CRTs are traded daily in the “carbon market”.

The House of Representatives passed its version of Climate legislation earlier this year while the Senate is still debating the legislation. If passed, companies would be required to measure and monitor their carbon emissions to reduce them from 2005 levels. Optionally, companies could purchase offset credits (CRTs) to meet reduction targets thereby raising the market value of these CRTs based on supply and demand. Both legislations will allow carbon offset credits to include those earned from the destruction of certain ozone depleting substances such as CFCs. CFCs not only destroy the ozone layer, but they have a very high global warming potential.

Although the Montreal Protocol phases out production, import, and export of ODS, emissions of ODS are not controlled explicitly. In addition, no obligations to destroy ODS exist under either the Montreal Protocol or the Kyoto Protocol, and while many countries, including the U.S., have no-venting regulations, they are not always well enforced. Moreover, current destruction of unwanted ODS is minimal or nonexistent, with the majority of unwanted ODS currently being stored in original equipment (which leads to slow leakage or accidental release), rather than being destroyed. Thus, any ODS that is destroyed is considered a greenhouse gas emission reduction, since, in the absence of destruction, nearly 100 percent of the ODS will eventually be released to the atmosphere.RemTec offers destruction services for ODS that can result in offset credits.

For more information contact RemTec today or visit our website www.remtec.net

An update on the Copenhagen Outlook to the Alliance Members:

December 16, 2009
TO: Alliance Members
FROM: Kevin FayDave Stirpe Alex Perry
SUBJECT: Copenhagen Outlook
_________________________________________________________________
With a steady increase in the number of world leaders who have confirmed their attendance at COP 15 in Copenhagen this week and with the shift in President Obama’s attendance from Wednesday December 9 to Friday December 18, the prospects that some kind of “operational political agreement” (the Administration’s label for what kind of agreement they are looking to conclude during the COP) will emerge from the negotiations are steadily increasing.

The major issues remain:
--the extent of developed country commitments
--the inclusion of specific developing country commitments
--the development of financial mechanisms to provide capacity building, mitigation and aptation funding for developing countries
--the identification of a long-term objective
--the completion of a regime for realistic compliance requirements for monitoring, reporting and verification that applies to all parties

As we reported previously, although meaningful progress was made over the last few months on many of the second tier issues relating to market operations, offsets, and technology transfer, it remains very unclear whether the process in Copenhagen can come to ground in order to effectively address the five points above. With an overlay of chaotic conditions within the Bella Center (the COP headquarters), the freakish sideshow taking place outside with the types of protests and interest groups that have become the status quo for any significant international leaders meeting, the fact that the significant majority of NGO and IGO participants will be excluded from the meeting center for the last two days of high level meetings, topped off with thousands of media representatives hanging on every word and the arrival of at least 120 heads of state, the pressure on the lead negotiators and national participants is enormous.

The character of a new climate agreement seems to be moving away from the model established by the Kyoto Protocol. Kyoto represented a single “centralized” model containing common but differentiated targets shared by all developed country parties in the short to medium term, relying on a common currency of allowances and certified emission reductions. What is expected to emerge from Copenhagen is starting to look like it will revolve around an agreement of a long-term objective and a system of pledge and review combined with hopefully meaningful and uniform compliance requirements in terms of monitoring, reporting and verification for developed and developing countries.

The long-term objective proposals include an agreement to limit global temperature rise to 2 degrees Celsius by 2100 or a 50% reduction in global greenhouse gas emissions by 2050. Developing nations such as China, India, Brazil, and South Africa continue to oppose a long-term objective of a 50% reduction in global greenhouse gas emissions by 2050 and a group of developing countries is also trying to push for a limit of 1.5 degrees Celsius.

The path to reach this long-term objective would first be achieved by national commitments of the major emitters, including all developed countries and the major developing country economies. These pledges, set by the parties themselves rather than the central treaty, would be supported by a system of review to ensure countries are complying with their own pledges; otherwise known as monitoring, reporting, and verification (MRV).

From the market mechanism standpoint, the analogy has been suggested that the system is moving away from a common currency (the Kyoto Protocol AAU/CER structure) towards a system that will have these national commitments with some type of exchange rate. It remains to be seen how this approach might impact the functioning of the global carbon market(s).

The view has been that the political agreement would include appendices of these national commitments as part of the agreement. This compendium would be reinforced by a reasonable regime of MRV. During President Obama’s recent trip to Beijing, the US and China concluded an assistance package that will include US help to the Chinese in measuring and reporting their emissions. One potential sticking point, however, is that the US is not willing to create differentiated responsibilities in MRV, but China and other developing countries have steadfastly opposed such compliance requirements for themselves. The US government says it will refuse to submit itself to more stringent reporting and verification protocols than any other party.

Over the course of the discussions here in Copenhagen so far, the developing countries have continued to balk at the notion of actually attaching their commitments to the political agreement. The US says it needs more than just warm expressions of interest from developing countries, and while much progress had been made with major announcements from countries such as China, India, and Brazil, it has now taken on a slightly different dynamic in the context of the overall negotiations.

It appears that there may be some agreement on financing. The US announced it is willing to put up its share of a $10 billion fund for developing country adaptation and capacity building. This signal was reinforced by Sen. John Kerry’s (D-MA) introduction of the International Climate Change Investment Act of 2009, which will form part of the Senate’s climate package and contains a framework for the federal government to assess and distribute climate financing. Kerry has said that he would like $3 billion included in next year’s appropriations for developing nations to fight climate change. Furthermore, the House-passed American Clean Energy and Security Act would offer something in the region of $1.4 billion (in 2012) and $2.6 billion (in 2019). Other developed nations have also contributed to the thinking that some kind of financing deal is possible; a joint British and French proposal to provide $22 billion in financing over the next three years from the developed world was endorsed by the Commonwealth Heads of State, which includes a large number of the same developing nations that have been pushing for hard commitments from the developed world on finance.

Currently, according to our discussions with leaders of the US delegation, the financing amounts are not settled but negotiations appear to revolve around commitments beyond the three year plan being discussed. The negotiators need to balance that against domestic concerns that too large a commitment over too long a time frame creates an additional political cost burden for passage of the final climate legislation in the U.S.

The Kyoto Protocol is unlikely to be formally set aside at Copenhagen, developing nations are unwilling to abandon the only legally binding climate treaty without the conclusion of a second. In fact, the African nations halted all discussions on the substantive issues to protest the lack of any progress on new Kyoto Protocol commitments. There has been a uniform view among developed countries that a single regime needs to emerge from these talks. The US view seems to be that this is likely to be a two- or three-step process to get there.

As has been typical for some time in these international climate negotiations, far too much work on a wide range of second tier issues also remains. It is expected that the political agreement will include appendices on technology, adaptation and reduction of deforestation (REDD). But even the completion of these texts was uncertain and potentially being kicked upstairs for the Ministers to decide.

The Ministerial level meeting will have only so much capacity to deal with these issues while attempting to sort out the top five we have listed above. Much will be folded in to work anticipated to be done in the coming year to turn the political agreement into a legally binding agreement.

There is also a controversial proposal to assess fees on aviation and maritime bunker fuels as a means of providing additional financing for developing country adaptation. The US has typically opposed any proposal that would seem to appear to create a global taxing authority. But the Danish Chair of the COP, Environment Minister Connie Hedegaard, has reportedly been lobbying heavily in favor because of the lack of other options for sources of funding.

It is hoped that the Copenhagen “operational political agreement” can be translated into a legally-binding one by mid- to late-2010, perhaps concluding at the next conference of parties in Mexico City, currently scheduled for November 8-19, 2010. Regardless of how the 2010 calendar evolves, COP 15’s overall contribution to the conclusion of such a deal will certainly be important, even if the original intentions of the Bali Agreement in 2007 have not become the reality that was envisioned at the time.

We will continue to report on meeting progress and results as they develop.

Dave Stirpe
Executive Director
Alliance for Responsible Atmospheric Policy
2111 Wilson Blvd., 8th Floor
Arlington, VA 22201

Update from United Nations Development Programme

Click Here to read an article from the UNDP titled: The Facility for Additional Income UNDP Inputs on Cabon Markets as a Potential Financing Source

Climate Change News: Provided by HARC and Tom Cortina, Managing Director.

Climate Change
International Negotiations
New post-2012 treaty being negotiated at COP 15 in December in Copenhagen
Wide gap between US (1990 levels in 2020) and EU (20-40% below 1990 levels in 2020)
Commitments from large developing countries like China and India key issue
Funding for developing countries key issue
Likely to be some type of political agreement or framework, to be followed by negotiation of details of full fledged treaty next year

Senate Climate Bill (S. 1733)
Clean Energy Jobs and American Power Act (Kerry-Boxer, S. 1733)
Creates an economy-wide cap-and-trade program covering 85% of US greenhouse gas (GHG) emissions
Intended to reduce GHG emissions by 20% below 2005 levels in 2020, and 83% in 2050
Reported out of the Environment and Public Works Committee without amendments by an 11-1 vote, with Republican members boycotting the mark-up due to an incomplete EPA analysis

Senate Climate Bill (S. 1733)
HFC Provisions
Almost identical to House bill
Hydrofluorocarbons (HFCs) are covered separately from other GHGs by amending Title VI of the CAA (ODS regulations)
Class II substances would be split into two groups, with group I containing the HCFCs and group II containing the HFCs
Overall production of HFCs is phased down beginning in 2012 and ending in 2032

Senate Climate Bill (S. 1733)
HFC Reduction Schedule
2012 - 90% of baseline 2023 - 54%
2013 - 87.5% 2024 - 50%
2014 - 85% 2025 - 46%
2015 - 82.5% 2026 - 42%
2016 - 80% 2027 - 38%
2017 - 77.5% 2028 - 34%
2018 - 75% 2029 - 30%
2019 - 71% 2030 - 25%
2020 - 67% 2031 - 21%
2021 - 63% 2032 - 17%
2022 - 59% after 2032 - 15%

Senate Climate Bill (S. 1733)
HFC Provisions - Allowances
Allowances are required to produce/import HFCs, or import products containing HFCs
The minimum auction price and non-auction sales price for allowances are set in the early years of the program as follows:
$1.00 per MT in 2012, $1.20 in 2013, $1.40 in 2014
Minimum auction price rises to $1.60 in 2015, $1.80 in 2016, $2.00 in 2017, and then increases with inflation for the rest of the program

Senate Climate Bill (S. 1733)
HFC Provisions - Allowance Cost
At $1.00 per metric ton (2012):
HFC-227ea = $1.46 per pound (GWP = 3,220)
HFC-125 = $1.59 per pound (GWP = 3,500)
HFC-236fa = $4.46 per pound (GWP = 9,810)
HFC-23 = $6.73 per pound (GWP = 14,800)
At $2.00 per metric ton (2017):
HFC-227ea = $2.93 per pound
HFC-125 = $3.18 per pound
HFC-236fa = $8.92 per pound
HFC-23 = $13.45 per pound

Senate Climate Bill (S. 1733)
HFC Provisions - Labeling/Assistance
Essential use, labeling, nonessential product, safe alternatives, and other provisions of Title VI would be extended to HFCs
Products containing or made with HFCs would be required to be labeled with the phrase “contributing to global warming”
Provides possible funding to manufacturers of products containing HFCs, including fire protection systems, to facilitate the transition to low-carbon alternatives

Senate Climate Bill (S. 1733)
HFC Provisions - Essential Use
Essential use provisions would allow EPA to withhold allowances from under the cap and allocate them specifically to produce HFCs for medical devices, aviation and space flight safety, fire suppression, and national security
Essential use provisions would also allow EPA to approve additional HFC production above the cap for developing countries, national security, and fire suppression

Senate Climate Bill (S. 1733)
HFC Provisions - Destruction
Offset credits are provided at a 20% discount for destruction of CFCs after 2011 in the US
EPA can add other class I or class II ODS
EPA can add ODS destruction to list of offset projects that receive credit in main program
CFC destruction projects that occur between 2009 and 2012 and are recognized under a State or comparable program could receive credit under the early offset provisions

Senate Climate Bill (S. 1733)
Prospects for Passage
Expected to be taken up again in Spring 2010
Senators Kerry (D-MA), Graham (R-SC) and Lieberman (I-CT) are currently working on the framework of a compromise that could get bipartisan support and the 60 votes needed to pass the Senate
Must still be reconciled with House bill
If not done by mid-2010, could be difficult to pass in an election year

HEEP Update
Final report of 2002-2007 data was released in May
2008 data collection is underway
18 of 21 companies have reported to date
Expect to have 2008 collection completed and report on the data at March meeting

Climate Action Reserve
Climate Action Reserve is a non-profit national GHG offset registry - associated with California Climate Action Registry
Develop project standards and register and track voluntary offset credits
Have decided to move forward with protocol development for ODS destruction, halons not included due to questions of indirect GWP
Draft ODS project protocols now available for public comment - due December 18
Public workshop on December 7 in DC