Houston, TX March 8, 2021 — Mercuria Energy America, a leading global energy and commodity trading organization, announced today that it has purchased the first carbon offsets generated for the Regional Greenhouse Gas Initiative (RGGI) compliance market. RGGI is a cooperative effort among the states of Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Vermont to cap and reduce power sector CO2 emissions.
A regulated entity can use carbon offset allowances to meet the remainder of its obligation. The RGGI states currently limit credit allowances to five project categories, all of which reduce or sequester emissions of CO2 or methane (CH4) within the ten-state region.
To source these carbon credits, Mercuria worked with 3Degrees, a firm that helps organizations around the world achieve renewable energy and decarbonization goals. 3Degrees currently manages the only offset project eligible to sell credits into the RGGI market, the New Beulah Landfill, a county-owned waste disposal facility in Dorchester County Maryland that generated these compliance credits.
In 2008, Dorchester Renewable Energy (DRE) installed a landfill gas collection system that captures and combusts the methane gas generated from the landfill’s waste in an enclosed flare. The landfill gas collection system received a much-needed overhaul in 2015 to extend its useful life where existing gas lines were becoming pinched under the weight of the landfill. The upgrade included the addition of new gas collection wells and the optimization and enhancement of the deteriorating gas collection and control system, which was completed in March 2016. The improved system comprises the RGGI offset project.
Financial support for the overhaul and maintenance of this project comes exclusively from the sale of carbon credits. Without the generation and sale of these credits, the construction of this project would not have been economically feasible. The project also generates added revenue for the rural municipality and creates employment opportunities to further support the community.
“Mercuria is excited to work with 3 Degrees on this landmark transaction”, said Adam Raphaely, Head of Emissions Markets at Mercuria Energy America. “The Carbon offset markets have undergone a resurgence globally as a part of a suite of tools available to decarbonize emissions-intensive industries. Mercuria is committed to supporting markets that facilitate emission reductions in the energy transition.”
“This purchase by Mercuria is further indication that market-based incentives continue to drive decarbonization across industries,” said Stephanie Harris, Director of Carbon Markets at 3Degrees. “We hope that Mercuria’s purchase will help spur additional investment in new carbon project development in the RGGI market.”
Founded in 2004, Mercuria is one of the largest independent energy and commodity groups in the world, bringing efficiency to the commodity value chain with cutting-edge technology and unmatched expertise and solutions. Mercuria’s business includes trading flows, strategic assets and structuring activities that generate more than USD 120 billion in turnover. It operates from offices around the world, with a strong presence in the Americas, Asia and Europe. Information on Mercuria can be found on its website at www.mercuria.com.
3Degrees, a certified B Corporation, makes it possible for businesses and their customers to take urgent action on climate change. We help organizations around the world achieve renewable energy and decarbonization goals through our work with global Fortune 500 companies, utilities, and other organizations that want to join the fight against climate change. The 3Degrees team has deep expertise in sustainability consulting, environmental markets, renewable energy and carbon project development, transportation decarbonization solutions, and utility renewable energy programs. Together with our customers, 3Degrees helps develop and implement creative solutions that ensure environmental integrity and make good business sense. Learn more at 3degrees.com.
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