Hydrodec gets carbon credit approval for Canton, Ohio used oil re-refining plant
The American Carbon Registry (ACR) has approved Hydrodec’s patented technology as a carbon offset project in the voluntary carbon offset market.
This creates an incremental revenue stream for the company and establishes Hydrodec as the only oil re-refining business in the world to receive carbon credits for its output.
This is the final stage in a process that began prior to the re-commissioning of Hydrodec’s Canton, Ohio, U.S.A. plant. The approval allows Hydrodec to generate and monetise carbon credits.
Hydrodec of North America is now generating offsets through the re-refining of used transformer oil, which would normally be incinerated or disposed of.
The ACR has recognised 165,000 credits for Hydrodec North America’s previous production between 2009 and 2014. Hydrodec expects to generate between 50,000 and 60,000 tonnes of carbon offset annually going forward.
While the historical credits may only generate nominal sums through trading, the ongoing generation of such credits could realise up to USD 5 per tonne, according to Hydrodec.
“ACR approval means that Hydrodec now produces the only oil globally which generates a carbon credit. It is a further demonstration of the world leading nature of our technology and product and reinforces the sustainability element of it to the primary users of transformer oil,” said Hydrodec CEO Chris Ellis.
“Although the initial direct financial contribution of trading the credits may be modest, strategically I expect that over time this will enable Hydrodec to further develop commercial relationships with key transformer manufacturers and utilities in our target markets.”
“The last nine months have seen the continued turnaround and transformation of Hydrodec. Today marks a further important milestone in the company’s progress. Carbon credit approval seals Hydrodec’s objective to establish a key role as a clean tech company with genuine market leadership; the first proven ‘green oil’ technology in the world with the capacity to treat and rerefine used and contaminated oil into high quality, renewable transformer oil,” said Hydrodec Chairman Colin Moynihan.