CMS Energy Corp., Dearborn, Mich., said Wednesday the Atlantic Methanol Production Co. (AMPCO) project on Bioko Island in Equatorial Guinea has been accepted by a US program that certifies greenhouse gas reductions for potential trading credits.
AMPCO partners are CMS, Samedan Oil Corp. (a wholly owned subsidiary of Noble Affiliates Inc.), and the Equatorial Guinea government.
The US Initiative on Joint Implementation (USIJI) administers the US process for reviewing and accepting carbon dioxide emissions reductions. It is co-chaired by the Environmental Protection Agency and the Department of Energy, and includes representatives from the departments of State, Commerce, Treasury, and other federal agencies.
CMS said the level of carbon dioxide emissions reductions credited to the project is the largest ever accepted for an existing facility.
The AMPCO plant, which is nearing completion, will convert gas that is being flared at 125 MMcfd into commercial methanol for export on the world market. The USIJI panel estimates the project will reduce 71.27 million tonnes of CO2 equivalent during the project's 25-year life span.
CMS Energy said it would examine prospects for trading the emissions reductions in the global marketplace, which would enhance the project's economics and correspondingly encourage new investment in environmentally friendly projects in Africa.
"These reductions can be marketed now by AMPCO's partners or banked for possible future use," said William T. McCormick Jr., chairman and CEO of CMS Energy.
"We believe this kind of innovation benefits not only the project partners, but also the government and people of Equatorial Guinea. As the USIJI evaluation panel indicated, this project will also open the door for increased investment in environmentally sound projects in the region and beyond as governments and investors begin to recognize the added economic value of reducing and trading emissions."
He said, "The acceptance by USIJI of our emissions reductions underscores the environmental benefits of the AMPCO project and signifies that the project promotes sustainable development in a sound and meaningful way."
