March 20, 2008 - Edmonton - The first payments are being made to farmers who are enrolled in a new program developed by EPCOR and Carbon Reduction Offset Projects Ltd. (CROP).
EPCOR has committed to purchase up to two million tonnes of verified emission reductions credits under the program. Farmers participating in the program receive a payment based on the amount of verified emission reduction they create by reduced tillage. By adopting reduced tillage practices, carbon is permanently sequestered in the soil, topsoil is preserved and fuel consumption is reduced.
“Under this program, farmers apply environmentally sound practices and make some extra money doing it,” said barley and canola farmer Jack Richardson, of Richardson Farms near Crossfield, Alberta. Mr. Richardson qualified for the program by reducing his tillage from two passes to one.
The program currently has more than half a million acres under contract, from which more than 60,000 tonnes of emission reductions have so far been third-party verified. This is the equivalent to taking more than 15,000 cars of the road for one year*.
“This carbon credit program will help us manage our greenhouse gas emissions while supporting sustainable farm practices,” said Doug MacLeod, EPCOR’s Vice President of Environment. “This purchase also positions EPCOR well in the emerging greenhouse gas offset credit markets, and builds our expertise.”
CROP and EPCOR plan to roll out the program throughout Alberta and beyond to other provinces.
Under the program, EPCOR purchases emission reduction credits from CROP. The carbon credits can be sold or be used to meet EPCOR compliance requirements under the province’s new environmental laws. Greenhouse gas reductions under the program are independently verified by a third party under terms in the province’s new emission reductions regulations.
“We are pleased that farm practices are being recognized by the Alberta legislation as part of the long term solution for greenhouse gas issues.” said Lynn Kennett, General Manager of CROP. “We are working with local agricultural businesses who best understand their customer’s needs and can deliver value by helping farmers take advantage of this new opportunity.”
EPCOR and CROP spent three years developing this carbon offset project. The companies have developed a proprietary data management system that farmers use to document and verify the practices that produce carbon credits under the new provincial rules.
Forward-looking Information
Certain information in this news release is forward looking and related to anticipated financial performance, events and strategies. When used in this context, words such as “will”, “anticipate”, “believe”, “plan”, “intend”, “target” and “expect” or similar words suggest future outcomes. By their nature, such statements are subject to significant risks and uncertainties, which could cause EPCOR’s actual results and experience to be materially different than the anticipated results. Such risks and uncertainties include, but are not limited to, operating performance, commodity prices and volumes, load settlement, regulatory and government decisions including changes to environmental and tax legislation, weather and economic conditions, competitive pressures, construction risks, availability and cost of financing, foreign exchange risks, availability of labour and management resources and the performance of partners, contractors and suppliers.
Readers are cautioned not to place undue reliance on forward-looking statements as actual results could differ materially from the plans, expectations, estimates or intentions expressed in the forward-looking statements. Except as required by law, EPCOR disclaims any intention and assumes no obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.
EPCOR Utilities Inc. builds, owns and/or operates power plants, electrical transmission and distribution networks, water and wastewater treatment facilities and infrastructure in Canada and the United States. EPCOR has been named one of Canada’s Top 100 employers for eight consecutive years, and is headquartered in Edmonton, Alberta.
Carbon Reduction Offset Projects Ltd. is a subsidiary of Parkland Agri Services Corp. CROP’s business activities are focused on new business opportunities associated with data management and agricultural environmental opportunities. Parkland Agri Services Corp. is an agricultural input supply business with 10 retail outlets in central Alberta, serving more than 2,000 farmers. Carbon Reduction Offset Projects Ltd. has its head office in Didsbury, Alberta.
For more information
Tim le Riche
Senior Adviser, Corporate Relations
EPCOR
(780) 969-8238, cell (780) 721-2013
tleriche@epcor.ca
Lynn Kennett
General Manager
Carbon Reduction Offset Projects Ltd.
403-708-9376
*Vehicle equivalency based on Natural Resource Canada estimate, under which a 2005 Honda Accord driven 20,000 km in one year produces 3.983 tonnes of carbon dioxide.