The transaction, which concluded with the execution of a Verified Emissions Reductions Sales Agreement (VERSA), will deliver 300,000 tonnes of validated VERs in the third and fourth quarter of 2009, and 200,000 tonnes of VERs in the first quarter of 2010, at an average price of $8.00 USD per tonne. The VERs sold to HSE will be validated and verified to the ISO 14064-2 and Climate, Community and Biodiversity Alliance (CCBA) standards. ISO 14064-2 is the proposed requirement for verification under the Canadian Federal Offset System for Greenhouse Gases (as published June 10, 2009). CCBA is the leading voluntary international standard for projects that simultaneously minimize climate change, support sustainable development, and conserve biodiversity.
The VERs sold to HSE are generated through ERA's Community Ecosystem Restoration Program (CERP) which has been operational in the Lower Fraser Valley of British Columbia since September 2005. CERP is a large scale urban forest restoration program that began in the District of Maple Ridge in 2006, which now includes projects in the District of Mission, the City and Township of Langley, and within Metro Vancouver. The CERP program is supported by the sale of VERs generated through ERA's ecosystem restoration and reforestation endeavors in degraded riparian areas. The VERs sold to HSE will be registered on the TZ1 Environmental Registry, an international carbon offsets registry which supports transactions in high quality voluntary carbon offsets through a credible, externally audited retirement facility. VERs are utilized by ethical organizations looking to reduce their carbon footprint by increasing their sustainability endeavors. Entega Vertrieb GmbH & Co. KG (Entega), a division of HSE, will utilize the offsets to create a CO2-neutral energy product for its customers throughout Germany. Entega is one of Germany's largest electricity and gas supply companies.
Dr. Robert Falls, CEO of ERA commented "We are very pleased to be working with HSE, a very well established and progressive energy company based in Darmstadt, Germany. The leadership of HSE has endeavored to fully understand their carbon impact as a company and have made the decision to become more sustainable through a variety of approaches, which include offsetting carbon emissions through ERA. HSE is an energy company that benefits greatly from capturing and utilizing some of the earth's most valuable natural resources. In committing to the restoration of degraded riparian ecosystems through ERA's forestry offsets, they have chosen to replenish earth's natural resources to mitigate their overall carbon impact. We believe their leadership represents further confirmation of the growing appetite for high quality forest-based offsets in the developing international carbon market."
Dana Veith, Innovations Manager for HSE stated, "We are excited to be involved in the development of significant reforestation projects with ERA. Healthy forests are the only viable way known to remove vast amounts of carbon dioxide from the atmosphere. Europe, along with the rest of the world, are now awakening to this fact and taking action, and for an energy company like HSE, renewing earth's natural resources is a positive step towards long term sustainability. We look forward to offering our customers a carbon neutral energy product."
ERA Carbon Offsets Ltd. would also like to announce that it will grant to various employees and consultants a total of up to 475,000 options. The options are exercisable at a price of $0.44 per share with an exercise period of five years from the date of grant.
