Renewable Energy and Carbon Credits
Heath NorrickManager of Renewable Energy
Hoosier Energy REC, Inc.
Presentation Outline
• Hoosier Corporate Profile• Carbon Credits Vs. Renewable Energy Credits
(RECs)• Uses and Markets for Credits• Hoosier Efforts• Conclusions
Hoosier Energy REC, Inc.
• Generation and transmission cooperative (G&T)
• Approximately $1 billion in assets
• Own & operate power plants & transmission assets• 2 coal plants (Merom @ 1,000 MW and Ratts @ 250 MW)• 2 gas plants (Lawrence @260 MW and Worthington @ 175 MW)
• Own & maintain over 1,300 miles of transmission lines and 250 delivery points
• Over 10 million megawatt-hours (MWh) sales in 2006• Assisted with over $7B in new investment in central and southern Indiana
in the last 15 years
Carbon Credits Vs. RECs
Carbon Credits• Electricity generation is not
necessary for production: Tons of CO2 reduced, avoided, or sequestered
• Carbon Credits are defined by international protocols or voluntary markets
• Cannot “double dip” with Carbon Credits and RECs from same source
Renewable Energy Credits• Only relates to the
generation of electricity 1 MWh=1 REC
• RECs are defined at the state level currently for RPS purposes
• Debate over what types of generation produce RECs
Uses and Markets
Carbon Credits• Meet emissions limits in cap
and trade systems
• Involves multiple industrial sectors
• Allow companies/individuals to offset carbon footprint voluntarily
• EU ETS, Chicago Climate Exchange,
Renewable Energy Credits• Meet Renewable Portfolio
Standards at state level
• Involves the electrical generation industry
• Allow companies/individuals to use green energy voluntarily
• 29 States now have RPS
Landfill Gas Generation
• Clark Floyd Landfill Generating Station– Add a third Engine by June 2009– Increase total output to 3.6 MW
Biomass
• Carbon neutral, baseload, generation
• Potential around 15-30 MW
• Utilizes local waste streams
• Possible fuel mixing benefits at current coal facilities
Coalbed Methane
• Current Project– Data
Gathering/Modeling– Core Sampling
• Purpose– Quantity and Quality of
Gas estimation
Story County Wind Farm
• 150 MW Total = 100 GE SLE 1.5MW Turbines
• Hoosier has 25 MW
• Developed by Florida Power & Light
• COD November 15, 2008
Small Scale Wind & SolarIn Operation:
• Merom Education Center—15kW Wind, 3kW Solar• Victory Primary—1.8kW Wind, 3kW Solar• Decatur Switch Station—3kW Solar
In Progress or Scheduled for Completion by 2009:• Worthington Primary—3-6kW Solar• Franklin Training Center—3kW Solar
Member Cooperative Wind & Solar Program•Hoosier will provide
• a set financial contribution and project development guidance to REMCs wishing to install Wind or Solar Systems
•REMC owned installations will have high community visibility for member education
Conclusions
• RECs provide a vehicle for lowering carbon emissions in one sector of the economy
• RECs monetize and track current carbon reduction while waiting for federal regulation
• Carbon Credits and RECs share common purpose
