11 Mar 2009

Genesis stock-piling emissions credits

12:15 pm on 11 March 2009

Genesis Energy says it has acquired a significant collection of emissions credits and is continuing to buy more.

New Zealand's third largest energy company has publicly expressed concern about New Zealand's emissions trading scheme, which was passed by the previous Government and is being reviewed by the current one.

Despite the politics, the company believes it has no option but to buy credits to offset emissions from its fossil fuel plants.

Genesis won't say how many credits it has bought or how much they cost.

But it is widely believed the company is getting a bargain, with carbon prices in Europe halving in the last nine months, due to the recession.

Genesis said last year it could face between $120 million- $240 million per year in emissions offsets from 2011 onwards - depending on how expensive carbon is and how much electricity it produces from gas or coal.