Blue Source, The Forestland Group and Shell Complete 500,000 Tonne California Carbon Offset Transaction
Forestry Offset Deal Signifies Growing Confidence in California’s Cap and Trade System
San Francisco, CA and Chapel Hill, NC – Blue Source and The Forestland Group (TFG) today announced a 500,000 tonne carbon offset sale from the Blue Source-Bishop Improved Forest Management Project located on TFG-managed properties in Michigan’s upper peninsula. The offsets will be sold to Shell Energy North America (US), L.P. (Shell Energy), a subsidiary of Royal Dutch Shell (Shell) after being verified to the California Air Resources Board’s methodology for forest carbon projects. The transaction represents a significant step in carbon market development since actions from large compliance entities like Shell are necessary to help spur investment in greenhouse gas reduction projects. Moreover, the Bishop property consists of over 200,000 acres owned by a Timberland Investment Management Organization (TIMO), making it one of the largest and most unique offset projects in development for the California program.
“This is a case of three individual companies each demonstrating leadership and collectively proving out the concept of the compliance carbon market,” said Kevin Townsend, Blue Source’s Chief Commercial Officer. “The Forestland Group is committing to long term, sustainable forestry, Shell Energy is playing an incredibly important role by committing to a large purchase early in the project’s life, and Blue Source is investing significant financial and human capital developing a project of this unprecedented scope. Together these efforts send a clear message to California companies covered by cap and trade as well as landowners nationwide that carbon markets actually work and provide meaningful incentives for emission reductions.”
“We are excited about the immediate benefits achieved by this project as well as the opportunity to be a leader for future projects in this space. Both the scale and the variety of silvicultural and land use practices present a host of unique challenges, but we are confident in Blue Source’s forestry expertise and its 12 years of carbon market experience to deliver project revenues in a highly efficient manner,” noted Kaarsten Turner Dalby, TFG’s Vice President of Ecological Services.
“Shell Energy is pleased to be a part of this unique project, which reduces atmospheric carbon dioxide emission levels and helps California meet its climate goals,” said Frans Everts, President Shell Energy North America. “It’s a natural extension of our sustainable energy commitment in California, notably the Community Choice Aggregation programs in Marin County and San Francisco. These programs, which are designed to provide reliable power through California Energy Commission certified renewable supplies, will also help to reduce greenhouse gas emissions in the state.”
About Blue Source, LLC
For the last 12 years, Blue Source has helped shape the North American carbon markets through its leadership in over 200 projects, first-of-kind forestry projects, precedent-setting emission reduction sales and world class consulting and technical services. Blue Source’s deep forestry expertise and proven success in carbon marketing uniquely position the Company as a leader in the California compliance markets, having listed and registered more forest carbon projects on the Climate Action Reserve than any other company. Blue Source is helping forest owners, land trusts and TIMOs understand and engage in the carbon economy through project development, emission reduction sales, engineering, financing and consulting services. With projects in the United States, Canada, Central America and Africa, Blue Source reduces greenhouse gases across over 20 different project types, including forestry, forest products, waste and methane management, agriculture, oil & gas, transportation and energy efficiency, and can be found on all of North America’s leading offset registries. Blue Source also specializes in helping companies structure a variety of offset purchases for voluntary, pre-compliance and compliance purposes. For more information visit: www.bluesource.com.
About The Forestland Group, LLC
Forestland Group, LLC (“TFG”), formed in 1995, is an independent timberland investment management organization (“TIMO”) which emphasizes naturally regenerating hardwood and some softwood forests. TFG currently manages approximately 3.4 million acres in 20 U.S. states as well as in Belize, Canada, and Costa Rica. The firm manages its investments through a series of limited partnerships and private REITs with a mix of both institutional and high-net-worth investors encompassing some 130 different entities. Headquartered in Chapel Hill, North Carolina, TFG has a corporate office near Boston and an array of forest management offices near its land bases. TFG was a pioneering TIMO with respect to managing its portfolio as a Certified Resource Manager under the Forest Stewardship CouncilTM FSC® C018151 guidelines. For more information visit: www.forestlandgroup.com.
About Shell Energy North America (US), L.P.
Houston-based Shell Energy North America (US), L.P., a wholly owned subsidiary of Royal Dutch Shell plc (Shell), serves its customers through its regional offices located throughout North America. As an integral part of the Shell Trading network of companies, Shell Energy North America (US), L.P. is the primary marketer of Shell’s equity natural gas in North America. As a leader in gas and power marketing, Shell Energy North America (US), L.P. and its subsidiaries, trade and market natural gas, wholesale power, environmental products and risk management products with counterparties and customers throughout the region. More information is available online at www.shell.com/us.