American Carbon Registry approval of environmentally rigorous method to generate carbon credits through the recycling of transformer oil
Hydrodec Group plc (AIM: HYR), the cleantech industrial oil re-refining group, is pleased to announce that the American Carbon Registry (“ACR”) has approved a rigorous emissions reduction accounting methodology to generate carbon credits by recycling transformer oil. Hydrodec plans to verify and issue its first credits under the new methodology in 2014.
The new methodology provides an accounting framework to quantify emission reductions achieved by diverting highly refined used transformer oil, which under normal conditions would be incinerated at the end of its useful life, to a refining facility that processes the transformer oil for re-use. As a cobenefit, recycling of transformer oil in controlled and permitted facilities reduces the environmental health and safety risks associated with the destruction of polychlorinated biphenyls (PCBs) found in transformer oil.
Hydrodec’s SUPERFINETM re-refined oil will be the first oil product to generate a carbon credit which can be traded in the voluntary carbon offset market in the US. Based on the Company’s 2013 output at Canton in the US, this would represent approximately 60,000 tonnes of saved carbon emissions as carbon credits. The Company will consider the optimal way to monetise these credits in due course.
Ian Smale, Chief Executive Officer of Hydrodec, commented: ‘This delivers a personal objective for me and a significant milestone for Hydrodec. We can now verifiably state that our re-refining technology has created the world’s first ‘carbon neutral’ mineral oil. This news is not only a positive endorsement of our technology, but also creates the potential for our facilities to generate another revenue stream which could in due course be of significant value as the Company continues to expand.’
For further information please contact:
Hydrodec Group plc 020 7907 9220
Ian Smale, Chief Executive
Chris Ellis, Chief Financial Officer
Mike Preen, Head of Corporate and Legal Affairs
Peel Hunt LLP (Nominated Adviser and Broker) 020 7418 8900
Vigo Communications (PR adviser to Hydrodec) 020 7016 9570
Notes to Editors:
Hydrodec's technology is a proven, highly efficient, oil re-refining and chemical process initially targeted at the multi-billion US$ market for transformer oil used by the world's electricity industry. Spent oil is currently processed at two commercial plants with distinct competitive advantage delivered through very high recoveries (near 100%), producing 'as new' high quality oils at competitive cost and without environmentally harmful emissions. The process also completely eliminates PCBs, a toxic additive banned under international regulations. Hydrodec's plants are located at Canton, Ohio, US and Young, New South Wales, Australia. Hydrodec recently acquired the business and assets of OSS Group, the UK's largest collector, consolidator and processor of used lubricant oil and seller of processed fuel oil, with a national network of oil storage and transfer stations, currently serviced by a fleet of more than 90 trucks which collect used oil and other garage workshop waste from over 30,000 customers. Used oil is converted into processed fuel oil at OSS’s plant at Stourport and principally sold on to the UK quarry and power industry.