BlueSource: A major player in carbon trading
If you’ve been reading the news about new EPA regulations on carbon emissions, you’re probably betting that change is in the air regarding the US market for carbon offsets. But most would be hard pressed to guess that one of the companies best poised to benefit from a new market scheme is based right here in Utah.
While Utah still makes national headlines for elected officials who deny the science of global warming, BlueSource has longed moved past the debate, and found it quite profitable to do so. The company is a major player in the voluntary carbon trading market and calls itself “North America’s Leading Climate Change Portfolio.” Founded in 2001 by Bill Townsend and Greg Spencer, BlueSource is headquartered in Holladay, although it has eight offices from San Francisco to New York, including two in Canada.
So what does BlueSource do? Simply put, the company develops or supports projects that keep greenhouse gasses out of the atmosphere and then monetizes the carbon credits generated by selling them on the voluntary market to companies who want to offset their own carbon footprint. BlueSource has projects under development in all of the lower 48 states and Canada. Projects range from capturing carbon at the vent-stacks of industrial facilities to methane management projects at landfills, wastewater treatment plants, and large dairy farms.
BlueSource has yet to finalize a major project in Utah, having focused to date on larger industrial areas. However, Kevin Townsend (son of founder Bill) promises more than one project is under development. The company is actively pursuing several large-scale projects in Utah and hopes to make announcements soon.
The seed for BlueSource started with a company called PetroSource, which focused on capturing CO2 to be used for enhanced oil recovery. This technique for improving oil production has been in use for decades. BlueSource continues an emphasis on enhanced oil recovery. But instead of using natural CO2 from underground, BlueSource pipes in CO2 captured from man-made sources. BlueSource’s expertise in this area adds to a major developing strength in Utah’s clean tech industry. USTAR’s Dr. Brian McPherson, Headwaters, and BlueSource are all helping to make Utah a leader in carbon capture and storage.
The future appears bright for this privately-held company. BlueSource recently partnered with Och-Ziff Capital Management Group, which will provide capital and financing up to $500 million to develop new CO2 pipeline infrastructure and carbon management projects.
So, what if Congress fails to pass meaningful legislation limiting carbon emissions or creating a cap-and-trade system?
BlueScource has been growing and thriving without government mandates by focusing on the voluntary market, which is quite strong. According to an annual report by Ecosystem Marketplace, approximately 53% of global voluntary purchases of carbon offsets are made by buyers in Europe, despite mandates in place for carbon emissions.
“The voluntary market is driven by the country’s desire to take action, despite inaction from the government,” said Kevin Townsend, VP of Portfolio Development.
Let’s hope for action, but plan for inaction. And BlueSource will continue to lead the way, either way.
