Wednesday, May 13, 2009

Guess Who Benefits From the CO2 Burial Play?

WuzthePoint sends along this question:

Which companies benefit if CO2 from coal-fired plants will get buried underground as proposed by Obama?
He then links to this (My emphasis): wanted to know: Which companies are going to benefit if and when all that carbon dioxide from coal-fired power plants starts getting buried underground, as has been proposed by the Obama administration?

[Peter Fusaro, chairman of New York-based Climate Change Associates] needed a nanosecond before answering: Blue Source LLC, the self-described North American leader in carbon capture and storage projects. Fusaro went even farther, telling, “Blue Source is the biggest carbon sequestration player on the planet.” Asked for a runner-up, Fusaro couldn’t think of one.

Privately-held Blue Source is a portfolio company of another private firm, First Reserve Corp., a leading private equity investor in the energy industry. But if investors are so inclined, they may want to consider investing in two other big Blue Source backers, Goldman Sachs Group (Symbol: GS) and Och-Ziff Capital Management Group (Symbol: OZM).

Goldman has an equity stake in Blue Source. It also has what the two firms describe as a “strategic alliance” that, basically, should enable Goldman to be the principal market maker for Blue Source if and when the carbon “credits” generated by Blue Source’s sequestration projects can be sold to polluters under a U.S. or global “cap-and-trade” system. Given that Fusaro sees cap-and-trade being a $3 trillion market one day (See Emissions Trading Expert Peter Fusaro: Carbon Trading is going to be Bigger than Oil Trading), that could mean billions just in fees flowing into Goldman’s coffer

1 comment:

  1. You mean this is corrupted, too. Does everything the government touch become corrupted?!