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Meridian yesterday said it had been offered a contract to sell carbon credits to the Netherlands government's ERUPT program and that the contract would be the first sale of New Zealand's Kyoto credits.
ERUPT is the Emissions Reduction Unit Procurement Tender program of the Netherlands government that enables it to buy credits, to offset its Kyoto Protocol obligations, from companies which carry out projects to reduce greenhouse gas emissions.
"The Netherlands will pay regardless of whether the Kyoto Protocol enters into force as it recognises the emission reduction benefits of the wind farm," said Meridian spokesman Alan Seay.
Meridian and the New Zealand government have an agreement for the allocation of emission reduction credits in recognition of some of Project Te Apiti's emission reduction benefits during 2008-2012.
The planned 90MW Te Apiti wind farm, in the Manawatu Gorge near Palmerston North, should generate enough electricity to supply about 32,300 households, effectively eliminating the one million tonnes of carbon dioxide emissions that would have been generated by the equivalent thermal plant.
"We are delighted to participate in New Zealand's first Kyoto trade by selling the credits from our first New Zealand wind farm to The Netherlands," said Meridian chief executive Keith Turner.
"The contract will provide an additional revenue stream for Te Apiti and is independent of the Kyoto Protocol entering into force. Wind generation is a relatively quick means of providing new energy to meet New Zealand's increasing demand."
Meridian has said commercially sensitive details of the volume and value of the credits traded will remain confidential. However, media reports have claimed the deal could be worth up to $NZ5 million for Meridian and that it should start seeing some Dutch Guilders within the next year or two.
It is believed to be the first such deal for the Netherlands outside central or eastern Europe. This month the World Bank reported about 70 million tonnes of CO2 equivalent had been traded in the global carbon market this year, compared with 30 million tonnes last year.
