Hydrodec agrees first trade of carbon credits

Clean technology industrial oil re-refining company Hydrodec Group confirmed on Monday that it had successfully agreed its first trade of carbon credits in respect of the credits recognised by the American Carbon Registry, under its accreditation granted in 2016.

The AIM-traded firm said the sale, whilst nominal in value, was in respect of a proportion of those credits generated by Hydrodec of North America and recognised by the ACR for HoNA's previous production between 2009 and 2014.

It anticipated that, going forward, it will generate 50,000 to 60,000 tons of carbon offset annually and expected it could earn up to $5 per ton from the ongoing generation of such credits based on recent industry publications.

“At the time of the announcement of the approval our expectations were that we should only expect a nominal sum for the credits recognised by the ACR for our past production in the US,” said chief executive officer Chris Ellis.

“However, what this sale does provide is evidence that there is an active market for our carbon credits and this important incremental revenue stream can begin to be realised.

“Over time the ability to sell carbon credits will enable Hydrodec to further develop commercial relationships with key transformer manufacturers and utilities in our target markets.”