This may be the only time I ever do this, but green left weekly (yes an oxymoron I know) has a “good news” story. Of course to them its doom and gloom, but for the rational its a ray of light.
Carbon market undermines Perth recycling
Basically its a whinge that a recycling project is uneconomical because the arse has fallen out of the carbon scammarket. What that actually means is the artificial subsidy generated by the scam scheme has halved in value. The product was rubbish, and has gone back to being worth rubbish.
The Southern Metropolitan Regional Council (SMRC) has an approximate $800,000 budget hole for its organic waste composting facility because the carbon credits it put up for auction in June failed to gain a response.
http://www.smrc.com.au/go/what-we-do/carbon-abatement begging for customers much?
The $100 million Regional Resource Recovery Centre takes household waste from over 380,000 residents and produces high quality compost.
Thats $263.16 per resident in the area going towards making an $800,000 loss, thats some mighty powerful “stimulus” bang for the buck there.
In a similar auction last year, SMRC could not meet demand for its offsets. Sale prices then ranged between $16-20 per unit.
But of the 90,000 tonnes of carbon dioxide equivalent it put up for auction in June it received tenders for only a quarter of the volume. The price dropped 50% to $8-10 each.
So if I was to use the 90,000 tonne figure as what was sold last year (using only the $16.00 sales figure) they made 1.44 million dollars for a 100 million dollar investment.
They then sold around 22,500 tonnes of unicorn dung credits this year for a grand total of (using the maximum figure this time), $.225 million revenue this year.
It takes a truly special type of business acumen to take a free product (waste), let it rot a bit, sell it as compost and still make a loss. Im sure Treasury are on the hotline right now…
However, SMRC’s business development manager Tim Youe told Inside Waste market demand for the carbon offsets “has all but disappeared”.
Anyone looking for a new dead horse to flog at Copenhagen this year? Globull worming has done its dash…..
Hippie tears, is there anything more tasty in the world?