Corn Plus sells carbon credits

By Anduin Kirkbride McElroy | April 08, 2008
Web exclusive posted April 14, 2008 at 12:22 p.m. CST

The first carbon trade in North America on behalf of a biofuel producer was executed on March 27, according to Carbon Green LLC and its partner Environmental Credit Corp. Corn Plus LLLP, a 44 MMgy ethanol producer in Winnebago, Minn., joined the Chicago Climate Exchange in August 2007, which made it the first independent ethanol plant to join the CCX and commit to overall emissions reductions.

The trades were executed electronically via the CCX Trading Platform, which is an anonymous, fully transparent system used by CCX members to buy and sell carbon financial instruments.

According to Carbon Green, the sale allowed Corn Plus to take advantage of the rising price of Carbon Financial Instruments (CFIs), which have rallied from $2.00 per metric ton at the beginning of the year to $5.80 at the close of trading on March 31.

Carbon Green and Environmental Credit Corp. facilitated Corn Plus joining the CCX. Carbon Green provided financial services and consulting related to emissions reductions, while Environmental Credit Corp. facilitated the process by which Corn Plus was able to obtain credits.

Corn Plus qualifies for carbon credits because it has reduced its natural gas consumption by 52 percent through the installation and use of a fluidized bed boiler that burns as fuel the concentrated syrup leftover from ethanol production from corn.