Vessels Coal Gas Inc. is a company that provides both consumer products and specialized services. The primary product we provide is an ARBOC. An ARBOC, or Air Resource Board Offset Credit, is a certified credit that corresponds to the removal of one tonne of carbon dioxide or the global warming equivalent of any other green house gas, under the California cap and trade protocol. In the cap and trade protocol regulated entities are only allowed to emit a certain amount of green house gasses, as measured against the global warming potential of one tonne of CO2. Beyond that they must purchase emission allowances which becomes less numerous and more expensive every year. When one of our projects destroys enough methane to equal the global warming potential of one tone of CO2 we generate an ARBOC. Under the California cap and trade system up to 8% of emissions allowances purchased by a California emitter can be in the form of ARBOC's. While the emission allowances issued by the state are mandated to go up in price every year, the ARBOC can be purchased at whatever price the two parties involved agree to.
Vessels Coal Gas also generates electricity for the methane it destroys. This electricity is generated form low btu mine gas. In some cases as low as 30% methane. This is achieved by mobile electric generators, of approximately one mega watt capacity per generator. The electricity is sold to the local REA's as distributed generation.
In Colorado and Pennsylvania this electrical generation counted as a renewable energy credit. This means that the energy produced by the coalmine methane was eligible for the renewable energy portfolio of the state the electricity was generated. Unlike the ARBOC the REC is generated by a Megawatt of electricity from a qualifying source. However, like an ARBOC, a REC can be retired by an emitter to remain in compliance with the state regulations.
Vessels Coal Gas is also a service provider company. We reduce the amount of regulated air molecules emitted by mining operations. While green house gases are the predominant molecules removed from the atmosphere we also reduce the amount of volatile organic compounds released by mining operations.