Toronto, Ontario, June 22, 2006 — Polaris Geothermal Inc. (Polaris Geothermal), a geothermal power producer, announced that its Nicaraguan subsidiary, Polaris Energy Nicaragua S.A. (PENSA) has sold its first 100,000 tons of carbon credits (CERs) to EcoSecurities Group PLC to be delivered over a period of 18 months, specifically June 30, 2006 to December 31, 2007.
“This amount represents less than 30% of the credits anticipated to be generated by PENSA each year, until we reach 66MW,” said Thomas Ogryzlo, president and CEO of Polaris Geothermal.
In order to comply with the Kyoto Protocol, clean development mechanism (CDM) projects in developing countries, which capture or cut-down carbon emissions, are being granted CER’s. Polluting companies, governments and other agencies are able to buy CER’s from companies such as PENSA that qualify as CDM projects allowing them to meet their quotas for reducing their greenhouse gas emissions.
When the company generates 66MW per year it expects to be able to sell 340,000 tons of carbon credits annually, which is anticipated to yield to the company, on an after tax basis, annual revenues of approximately $5 million.
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