NEW ORLEANS, Dec 20, 2004 /PRNewswire-FirstCall via Comtex
Entergy is exercising their option to purchase 1 million CO2 emission reduction credits, representing the largest geologic CO2 sequestration purchase within the United States. This purchase is an extension of the initial transaction between Entergy and Blue Source, which was completed in December of 2003.
This carbon credit option will increase Entergy's balance of carbon credits from its current amount of 872,363 metric tons to a total of 2,872,363 metric tons by the end of 2005. That is a 230 percent increase.
The actual emission reduction credits that will be generated and used in this exchange will be utilized in enhanced oil recovery by Denbury Resources for tertiary oil recovery in Western Mississippi. The reason Denbury was picked for this particular project was because it fell within Entergy's service territory.
Leveraged benefits from this project include an economic boost for Entergy's service territory with respect to increased local oil production, royalties, production tax revenues, and associated oil field and petro- chemical jobs.
Another related endeavor Entergy has completed recently to help with carbon emission limits is by joining the Gulf Coast Carbon Center as its first utility member. The GCCC is headed by the Bureau of Economic Geology at the University of Texas as its purpose is to seek to demonstrate and implement a regional infrastructure for geologic sequestration of anthropogenic CO2 emissions, (carbon emissions generated by human activity). By joining this group, Entergy is helping to propel the concept of geologic carbon sequestration into the forefront of the carbon emission trading arena.
Both Entergy's new membership in the GCCC and the newly purchased 1 million CO2 emission reduction credits through Blue Source help the company to achieve the goals of its voluntary commitment made in 2001.
Entergy made a voluntary commitment in May 2001 to stabilize carbon dioxide emissions from its power plants at year 2000 levels through 2005. To support this goal, the company also dedicated $25 million in supplemental funding through a new Environmental Initiatives Fund to support and fund projects such as this carbon sequestration transaction with Blue Source.
"This type of carbon emissions trade with Blue Source fits perfectly into Entergy's overall goals of our Environmental Initiatives Fund. Credits from this emissions trade will be used to fulfill our voluntary CO2 stabilization commitment made in May of 2001," states Entergy's Executive Vice President of Operations, Mark Savoff.
Carbon dioxide emissions captured in geologic sequestration enables the recovery of petroleum reserves that would not typically be recovered by conventional means. "We are very pleased to be able to provide yet another opportunity for Entergy to meet their EIF goals while also helping the environment and domestic energy supplies," states Blue Source C.E.O., Bill Townsend.
Blue Source, the leading carbon dioxide emission reduction credit aggregator in North America and an innovator of carbon risk reduction strategies, is assisting companies in the transportation, geologic sequestration, energy conservation and manufacturing sectors to identify and market high-quality greenhouse gas emission reductions. Presently, Blue Source has existing greenhouse gas emission reduction inventories exceeding 200 million tons through 2012.
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production, retail distribution operations, and gas transportation. Entergy owns and operates power plants with about 30,000 megawatts of electric generating capacity, and it is the second-largest nuclear generator in the United States. Entergy delivers electricity to 2.6 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy has annual revenues of over $9 billion and approximately 14,000 employees.
SOURCE Entergy Corporation
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