Glossary

Offset Pricing Monthly Market Digest – September 2020

Offset Pricing Monthly Market Digest – September 2020

Offset Pricing Monthly Market Digest – September 2020

CA and General Market Commentary:

Offset Supply Information:

All CCOs issued to date: 201.97 million
Compliance credits awaiting issuance: 23.29 million

CA and General Market Commentary:

The trend of allowances moving higher and CCO prices moving lower continued in September. The spread between Allowances and CCOs continues to widen to record historical levels.  Because 2020 is not a triennial compliance true-up year, we believe the lack of interest in CCOs is because compliance entities do not need to purchase CCOs for compliance until 2021, and many entities may be waiting until closer to the true-up deadline in order to observe the uncertain economy and better understand their emissions for 2020.


ClimeCo
 is a respected project developer, advisor and trader of environmental commodity market products. Specialized expertise in regional criteria pollutant trading programs, California cap‐and‐trade, voluntary markets and project development and financing of internal CO2 abatement systems complement ClimeCo’s diverse commodity portfolio. Within the Climate Action Reserve, ClimeCo is the largest developer of U.S. GHG‐offset projects and producer of U.S. voluntary carbon offsets, managing projects that reduce more than four million tonnes of CO2e per year. For information, contact 484‐415‐0501 or nmarshall@climeco.com.

CVR Partners Generates First Carbon Offset Credits Related to Voluntary Nitrous Oxide Abatement Efforts

CVR Partners Generates First Carbon Offset Credits Related to Voluntary Nitrous Oxide Abatement Efforts

NEWS RELEASE
FOR IMMEDIATE DISTRIBUTION

Contact: Nancy Marshall, Corporate Marketing Director

484.415.7603 or nmarshall@climeco.com

CVR Partners Generates First Carbon Offset Credits Related to Voluntary Nitrous Oxide Abatement Efforts

Project should increase the Company’s reduction of CO2to more than 1 million metric tons each year.

SUGAR LAND, Texas, Oct. 05, 2020 — CVR Partners, LP (“CVR Partners”) (NYSE: UAN), a manufacturer of ammonia and urea ammonium nitrate solution fertilizer products, today announced that its subsidiary, Coffeyville Resources Nitrogen Fertilizers, LLC (“CRNF”), has generated its first carbon offset credits related to the Company’s voluntary nitrous oxide (“N2O”) abatement efforts at its Coffeyville, Kansas, nitrogen fertilizer plant. CVR Partners has utilized similar technology to abate N2O at its East Dubuque, Illinois, nitrogen fertilizer plant since 2011.

CRNF previously entered into a Joint Development Agreement with ClimeCo, a pioneer in the development of emission-reduction projects for nitric acid plants, to jointly design, install and operate a tertiary abatement system at one of its nitric acid plants in Coffeyville. The system was designed to abate 94 percent of all N2O in the unit while preventing the release of approximately 450,000 metric tons of carbon dioxide equivalent (“CO2e”) on an annualized basis. CVR Partners’ N2O abatement systems at its East Dubuque facility’s two nitric acid plants have abated, on average, the annual release of approximately 233,000 metric tons of CO2e during the past five years. With the Coffeyville system now operating at design capacity, CVR Partners’ two fertilizer facilities should abate more than 1 million metric tons of CO2e each year, in combination with the Coffeyville facility’s carbon dioxide (“CO2”) sequestration efforts.

“As a leader in the production of environmentally friendly ‘green’ nitrogen fertilizer, CVR Partners is proud to have generated its first carbon offset credits as a result of our voluntary nitrous oxide abatement project in Coffeyville, Kansas,” said Mark Pytosh, Chief Executive Officer of CVR Partners’ general partner. “Coupled with our Coffeyville CO2 sequestration efforts, this facility is uniquely qualified to produce hydrogen and ammonia that is certified ‘blue’ to a market that is increasingly demanding reduced carbon footprints. These efforts support our core Values of Environment and Continuous Improvement, and our goal of continuing to produce nitrogen fertilizers that feed the world’s growing population in the most environmentally responsible way possible.”

CVR Partners’ N2O abatement project is registered with the Climate Action Reserve (the “Reserve”), a carbon offset registry for the North American market. The Reserve employs high-quality standards and an independent third-party verification process to issue its carbon credits, known as Climate Reserve Tonnes.

About CVR Partners, LP
Headquartered in Sugar Land, Texas, CVR Partners, LP is a Delaware limited partnership focused on the production, marketing and distribution of nitrogen fertilizer products. It primarily produces urea ammonium nitrate (UAN) and ammonia, which are predominantly used by farmers to improve the yield and quality of their crops. CVR Partners’ Coffeyville, Kansas, nitrogen fertilizer manufacturing facility includes a 1,300 ton-per-day ammonia unit, a 3,000 ton-per-day UAN unit and a dual-train gasifier complex having a capacity of 89 million standard cubic feet per day of hydrogen. CVR Partners’ East Dubuque, Illinois, nitrogen fertilizer manufacturing facility includes a 1,075 ton-per-day ammonia unit and a 1,100 ton-per-day UAN unit.

About ClimeCo
ClimeCo is an Inc. 5000 company that is a respected advisor, transaction facilitator and trader of environmental commodity market products. Specialized expertise in regulated carbon, regional criteria pollutant trading programs, voluntary markets, and project development and financing of GHG abatement and mitigation systems complement ClimeCo’s diverse portfolio. For more information or to discuss how ClimeCo can drive value for your organization, contact them at (484) 415-0501, info@climeco.com or through their website at www.climeco.com.

Forward-Looking Statements
This news release contains forward-looking statements. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns or matters that are not historical facts are “forward-looking statements,” as defined under federal securities laws. These forward-looking statements include, but are not limited to, statements regarding future: abatement of N2O at Coffeyville and East Dubuque and credits relating thereto, operation of tertiary abatement systems including performance thereof, CO2 sequestration, production of “blue” hydrogen and ammonia and certification thereof, market demand, environmental impact of CVR Partners’ activities, registration with the Reserve including standards and verification thereof, and other factors. You can generally identify forward-looking statements by our use of forward-looking terminology such as “outlook,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “seek,” “should,” or “will,” or the negative thereof or other variations thereon or comparable terminology. These forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond CVR Partners’ control. Investors are cautioned that various factors may affect these forward-looking statements. For additional discussion of risk factors which may affect CVR Partners’ results, please see the risk factors and other disclosures included in CVR Partners’ most recent Annual Report on Form 10-K, any subsequently filed Quarterly Reports on Form 10-Q and its other SEC filings. These risks may cause CVR Partners’ actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by forward-looking statements. Given these risks and uncertainties, investors are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this news release are made only as of the date hereof. CVR Partners disclaims any intention or obligation to update publicly or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.

For further information, please contact:

Investor Relations:
Richard Roberts
CVR Partners, LP
(281) 207-3205
InvestorRelations@CVRPartners.com

Media Relations:
Brandee Stephens
CVR Partners, LP
(281) 207-3516
MediaRelations@CVRPartners.com

ClimeCo Promotes Dr. Scott Subler To Chief Science Officer

ClimeCo Promotes Dr. Scott Subler To Chief Science Officer

NEWS RELEASE
FOR IMMEDIATE DISTRIBUTION
Contact: Nancy Marshall, Corporate Marketing Director
(864) 266‐1210 or nmarshall@climeco.com

ClimeCo Promotes Dr. Scott Subler To Chief Science Officer

Boyertown, PA, September 22, 2020 – ClimeCo is happy to announce the promotion of Dr. Scott Subler to the position of Chief Science Officer (CSO).  Dr. Subler has made an enduring mark on the carbon offset world over the last 15 years.  From overseeing the first US offset delivery from a dairy farm methane capture project to chairing the Offsets Committee for the Chicago Climate Exchange, Subler has been a major influence on many carbon offset methodologies that are used today.  His work investigating different types of lagoon cover systems for dairy and swine farms in different climates continues to impact new methane capture installations, and his advocacy for organic waste composting projects resulted in the protocol used today at the Climate Action Reserve.scott subler

Dr. Subler has been an influential leader, steadfast mentor, dependable manager, and reliable authority in the environmental project field.  His knowledge in the field of anaerobic digestion and waste management is inspiring, but it is his extensive network and background in new emerging markets that permit ClimeCo to be progressive in pursuing these new markets, allowing our company to meet our client’s needs.   

“I enjoy Scott’s enthusiasm, his ability to build teams and mentor staff, and his in-depth science background, critical to our foundation,” says Bill, Flederbach, President and CEO of ClimeCo.  “I am proud to call him my teammate, friend, and our Chief Science Officer!” 

Dr. Subler’s academic and professional knowledge and resources in soils biology and ecology have lent significant value to new emerging markets like Nature-based Solutions, regenerative agriculture, and many other soil ecosystem concentrations. 


About ClimeCo
 

ClimeCo Corporation is a respected advisor, transaction facilitator, and trader of environmental commodity market products. Specialized expertise in regulated carbon, regional criteria pollutant trading programs, voluntary markets, and project development and financing of GHG abatement and mitigation systems complement ClimeCo’s diverse portfolio. For more information or to discuss how ClimeCo can drive value for your organization, contact us at 484.415.0501, info@climeco.com, or through our website climeco.com

Offset Pricing Monthly Market Digest – September 2020

Offset Pricing Monthly Market Digest – August 2020

Offset Pricing Monthly Market Digest – August 2020

Offset Supply Information:

All CCOs issued to date: 190.88 million

Compliance credits awaiting issuance: 21.96 million

CA and General Market Commentary:

  • ARB’s August auction saw a $16.68 clearing price for its current vintages, with a bid-to-cover ratio of 0.89. The advance vintage auction cleared at $16.73 with a bid-to-cover ratio of 1.29.  This is an unusual result, typically entities would expect to receive a discount for purchasing future years’ allowances that cannot be used for 3 years.  It was also interesting to see that while only 3.5% of current vintage allowances were purchased by speculators, 19.9% of future vintage allowances were purchased by speculators.
  • Allowances continued to inch higher in August, while CCO prices inched lower. The spread between Allowance and CCO is historically high.  Because 2020 is not triennial compliance true-up year, we believe the lack of interest in CCOs is because compliance entities do not need to purchase CCOs for compliance until 2021, and many entities may be waiting until closer to the true-up deadline in order to observe the uncertain economy and better understand their emissions for 2020.

ClimeCo Corporation is a respected project developer, advisor and trader of environmental commodity market products. Specialized expertise in regional criteria pollutant trading programs, California cap‐and‐trade, voluntary markets and project development and financing of internal CO2 abatement systems complement ClimeCo’s diverse commodity portfolio. Within the Climate Action Reserve, ClimeCo is the largest developer of U.S. GHG‐offset projects and producer of U.S. voluntary carbon offsets, managing projects that reduce more than four million tonnes of CO2e per year. For information, contact 484‐415‐0501 or nmarshall@climeco.com.

ClimeCo Ranks on Inc. Magazine’s 5000 List of America’s Fastest-Growing Private Companies

ClimeCo Ranks on Inc. Magazine’s 5000 List of America’s Fastest-Growing Private Companies

NEWS RELEASE
FOR IMMEDIATE DISTRIBUTION
Contact: Nancy Marshall, Corporate Marketing Director
(864) 266‐1210 or nmarshall@climeco.com

ClimeCo Ranks on Inc. Magazine’s 5000 List of America’s Fastest-Growing Private Companies

Boyertown, PA, August 12, 2020 – Today, Inc. magazine revealed that ClimeCo has been included on its annual Inc. 5000 list, the most prestigious ranking of the nation’s fastest-growing private companies. Started in 1982, this prestigious list has become the hallmark of entrepreneurial success. From 2016 to 2019, ClimeCo saw 102% revenue growth and a 61% growth in number of employees.   

At ClimeCo we have a culture of creativity and empowerment and, most of all, a team with shared values,” says William Flederbach, ClimeCo PresidentWith a goal of making a difference each day and always doing the next right thing, we have created scalable GHG reduction projects and unparalleled environmental market expertise across North America. We never take our team nor our amazing clients for granted; this has allowed us to grow significantly as a company and, most of all, we really enjoy what we do.” 

The 2020 Inc. 5000 list is ranked according to percentage revenue growth between the years 2016 and 2019. To qualify, companies must have been privately held, for-profit, independent, U.S. based, and founded and generating revenue by March 31, 2016. Not only have the companies on the 2020 Inc. 5000 been very competitive within their own markets, but the list shows staggering growth compared with prior lists as well. The 2020 Inc. 5000 list of companies together achieved an incredible three-year average growth of over 500% and a median rate of 165%. The Inc. 5000’s aggregate revenue was $209 billion in 2019, accounting for over 1 million jobs over the past three years.   

About ClimeCo 

ClimeCo Corporation is a respected advisor, transaction facilitator, and trader of environmental commodity market products. Specialized expertise in regulated carbon, regional criteria pollutant trading programs, voluntary markets, and project development and financing of GHG abatement and mitigation systems complement ClimeCo’s diverse portfolio. For more information or to discuss how ClimeCo can drive value for your organization, contact us at 484.415.0501, info@climeco.com, or through our website climeco.com

About Inc. Media 

Founded in 1979 and acquired in 2005 by Mansueto Ventures, Inc. is the only major brand dedicated exclusively to owners and managers of growing private companies, with the aim to deliver real solutions for today’s innovative company builders. Inc. took home the National Magazine Award for General Excellence in both 2014 and 2012. The total monthly audience reach for the brand has been growing significantly, from 2,000,000 in 2010 to more than 20,000,000 today. For more information, visit www.inc.com

For information, call ClimeCo at 484-415-0501 or visit www.climeco.com.

Offset Pricing Monthly Market Digest – July 2020

Offset Pricing Monthly Market Digest – July 2020

Offset Pricing Monthly Market Digest – July 2020

Offset Supply Information:

All CCOs issued to date: 190.98 million
Compliance credits awaiting issuance: 23.12 million

 

CA and General Market Commentary:

  • ARB’s next auction will be in August. With futures for August delivery trading at $16.83, $0.15 above the $16.68 auction floor price, it appears likely that the auction will see a substantially higher bid-to-cover ratio than the .37 seen at the May auction.  It may even be fully subscribed (a bid-to-cover ratio of 1.00 or higher), but a clearing price materially higher than the minimum $16.68 floor seems unlikely given lower emissions in 2020 during the pandemic and given the large number of allowances that traded at a discount below the floor price on the futures exchange during the March-May period.
  • ARB has begun marking CCOs as “DEBs” or non-DEBs in their tracking software and reports. This allows buyers to know whether the credits they are buying have been determined to meet the requirements.  Offset projects that are located in California will automatically be marked as “DEBs”, while other projects can petition to have a determination made if the developer believes they should qualify.
  • Due to ARB beginning to mark credits as “DEBs”, we would expect that the market will begin to differentiate between the two categories, and we will begin adding prices for both categories to this report if/when the market begins to price them differently.

ClimeCo Corporation is a respected project developer, advisor and trader of environmental commodity market products. Specialized expertise in regional criteria pollutant trading programs, California cap‐and‐trade, voluntary markets and project development and financing of internal CO2 abatement systems complement ClimeCo’s diverse commodity portfolio. Within the Climate Action Reserve, ClimeCo is the largest developer of U.S. GHG‐offset projects and producer of U.S. voluntary carbon offsets, managing projects that reduce more than four million tonnes of CO2e per year. For information, contact 484‐415‐0501 or nmarshall@climeco.com.