Carbon credits

I was reading the comments on Shawn Grahams blogsite about the MOU. There is some math done to show that NB Power is giving Hydro Quebec about $240 million dollars a year in potential carbon credits. I copied the text here.

"All CO2 Allowances Go to Quebec under this deal !!!!

WOW – Can’t believe that no one has picked this up in the news yet. This could pay repay the entire deal for Hydro Quebec !!!!

So Hydro Quebec shuts down the thermal plants and takes all their emissions credits to Quebec. This means not just CO2, but also Sulphur Dioxide and NOx.

For CO2 this allowance is probably 6 million tons a year. At $20 to $40 a ton of CO2 per year – this would be between $120,000,000 and $240,000,000 per year. This would repay the entire cost of the deal for Hydro Quebec all by itself.

This is contained in many of the one liners in the MOU on this site. (You should read this document – but here is the line from the MOU)

(e) All emission allowances relating to Belledune and Coleson Cove will accrue to the benefit of HQ, including any revenue from any such allowances that
were sold rather than used.

So NB loses the CO2 allowances – and they go to Quebec. So any new industries wanting to set up in NB will not be able to get CO2 allowances to operate. However, the Quebec government could give them to the company if they set up in Quebec instead.

We need the media to ask for a detailed explaination of the value of these emission allowances, as right now it appears that they are being given away for free.

I’d like to meet the Quebec Hydro people that set up this deal – they are pretty sharp. When NB goes down the tubes, maybe they could sell my house for me !!!"

Lets see, my other post has about the NB goverment looking for $155 million per year in new tax revenue. This post is $240 million per year. That's a total of $395 million per year going in the wrong direction."

This news just in - I hear there is over 11,000 people who joined the fight on the facebook site.