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U.S. hydro projects eligible to sell greenhouse gas offsets

The U.S. Greenhouse Gas Offset Acquisition Initiative will consider new or incremental hydropower projects responding to its request for U.S. projects that reduce or avoid greenhouse gas emissions or sequester carbon dioxide. Proposals are due April 23.

The non-profit Climate Trust and consulting firm M.J. Bradley and Associates, which administer the initiative, issued the request for proposals Feb. 12. Participating companies seek to buy up to 10.5 million tons of carbon dioxide equivalent. However, the actual total offset purchase is dependent upon the response to the RFP.

Initiative participants include Conectiv Energy Supply Inc., Dominion Resources Services Inc., Entergy Corp., NRG Energy Inc., and Public Service Enterprise Group. The firms report annual revenues exceeding $60 billion and power generation capacity exceeding 100,000 MW.

Although the RFP is structured for two types of offset submissions, hydro projects only would be eligible for the general category, from which the participants plan to purchase 3 million tons of CO2. The other submissions, for 7.5 million tons of CO2 under the Regional Greenhouse Gas Initiative, only apply to such activities as reducing methane emissions and increasing energy efficiency.

Incremental hydropower generation is eligible if it can be clearly defined as a distinct project. New hydro also is eligible if construction has not begun. Projects that already are in the construction phase are not eligible.

Initiative participants said they intend to execute all final offset contracts no later than February 2008.

A bidders conference is planned March 5 in Newark, N.J. To register for the meeting, contact Matt Tidwell, E-mail: mtidwell@climatetrust.org.

The RFP is on the Climate Trust Internet site, www.climatetrust.org, under �Offset RFPs.� A project information document also is available at www.climatetrust.org/solicitations_2007.RFP.php.

Each proposal must include a $250 application fee. Checks should be made to the Climate Trust, a non-profit organization that promotes climate change solutions. Proposals should be submitted to Climate Trust, Attn: U.S. GHG Offset Acquisition Initiative, 65 S.W. Yamhill St., Suite 400, Portland, OR 97204.

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