03 August 2010
Mighty River Power has initiated a tender process for securing long term carbon credits from local suppliers, representing a first for carbon trading in New Zealand. The invitation to tender has been extended to the New Zealand market only, and interest is expected from the agriculture and forestry sectors.
Fraser Whineray, Mighty River Power’s General Manager Operations, said running a tender process for carbon credit supply was a positive step towards meeting the company’s carbon obligations under the ETS.
“From 1 July 2010, Mighty River Power is required to off-set any emissions it produces through its electricity generation activities. We believe it makes commercial sense to standardise and accelerate the process for meeting our carbon obligation by putting it to tender,” he said.
The tender process will help Mighty River Power build on its existing portfolio of domestic carbon off-take agreements The Company has recently signed two agreements with Lake Taupo land owners within the Lake Taupo Protection Trust (LTPT) area. These agreements support delivery of water quality benefits for Lake Taupo by encouraging forestry conversions on lake shore land, reducing nitrogen run-off into the lake.
Tenders are invited for supplying a preferred quantity of at least 15,000 carbon units per annum, or 250 hectares on a preferred term of 15 years. Tender documents will be available from 3 August with a response deadline of 26 August 2010. Interested parties should contact Bruce Miller, Head of Wholesale Markets, Mighty River Power for further information (
bruce.miller@mightyriver.co.nz). All responses will be treated in confidence.
ENDS