BPI Energy Holdings, Inc., an independent energy company engaged in the exploration, production and commercial sale of coalbed methane (CBM) in the Illinois Basin, today announced it has signed a non-binding letter of intent for a relationship with Blue Source, LLC, an aggregator and marketer of carbon credits. The letter of intent contemplates that Blue Source would enter into an agreement by which it would commit to exclusively funding any and all qualifying projects generated from and/or constructed and operated by BPI, and that Blue Source would become a 50/50 partner with BPI in those projects. The relationship would commence with BPI's Western Fuels Project announced on June 18, 2008.
As part of the proposed five-year agreement, Blue Source would become the exclusive marketer of all carbon offsets and other quantifiable environmental benefits produced by BPI.
"According to the National Energy Technology Laboratory statistics, releases associated with the mining of coal account for about 10 percent of the country's total methane emissions," commented James G. Azlein, BPI president and CEO. "Methane is a potent greenhouse gas having 21 times the global warming potential of carbon dioxide. Recovery of coalbed and coalmine methane as practiced by BPI not only captures a large source of emissions, but also harnesses this energy resource."
Azlein added, "With the growing demand for natural gas and heightened environmental concerns associated with methane releases to the atmosphere, this complementary relationship between BPI and Blue Source is a win-win."
Co-founder and CEO of Blue Source, Bill Townsend, said the partnership signifies the possibilities in pre-regulatory efforts to reduce negative environmental impacts associated with greenhouse gas emissions.
"BPI is exemplifying environmental stewardship by voluntarily reducing the amount of methane gases vented into the atmosphere," Townsend said. "The company continues to demonstrate market leadership in this arrangement with Blue Source. The foresight to take a methane stream of this nature and to monetize the carbon emission reductions is clear foresight into the solutions we all need to provide to mitigate global climate change."
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