Hydrodec of North America now generates carbon offsets through rerefining of used transformer oil, thanks to approval of its technology by the American Carbon Registry. This creates an incremental revenue stream for the company and allows it to receive carbon credits for its output.
The approval is the final stage in a process that began prior to re-commissioning of its Canton, Ohio, plant last year. The company can sell the credits on the voluntary carbon offset market to other companies, such as those wishing to offset their own carbon footprint.
The American Carbon Registry has recognized 165,000 credits for the companys previous rerefined transformer oil production at the Canton site between 2009 and 2014. Hydrodec anticipates it will generate 50,000 to 60,000 tons of carbon offset annually going forward. While the historical credits may only generate nominal sums through trading, the ongoing generation of such credits could realize up to $5 per ton, Hydrodec said, citing information from Carbonomics, a company that helps businesses navigate the carbon offset credits market.
ACR approval means that Hydrodec now produces the only oil globally which generates a carbon credit, Hydrodec CEO Chris Ellis claimed in a news release. Although the initial direct financial contribution of trading the credits may be modest, strategically I expect that over time this will enable Hydrodec to further develop commercial relationships with key transformer manufacturers and utilities in our target markets.
An explosion and fire destroyed the processing unit of Hydrodecs transformer oil rerefinery in Canton in December 2013.
Hydrodec commissioned a rebuilt plant at the location in early June 2015 and started its six production trains over the next five months. The facility originally opened in October 2008.
The company also operates a transformer oil rerefinery in Young, Australia.