Durum Capital Inc. agreed to boost its holdings of carbon credits to more than 400,000 from 22,000 via two limited partnerships, according to Spencer Gordon, vice president of the Calgary-based firm. The purchased credits, to be delivered by the second quarter of next year, may put Durum among the 15 largest holders in the market, he said. The deal is funded with a $15 million private sale by Wellington-Altus Private Wealth Inc. and $6 million from other investors.
Durum’s purchase marks a major shift for a 15-year-old market that is mostly the domain of a few dozen large industrial greenhouse gas emitters. An increase of investors speculating on the opaque market could improve liquidity and boost prices for the environmental credits traded on the Alberta platform.
Companies including Edmonton power generator Capital Power Corp., Shell Plc and oil sands producer Canadian Natural Resource Ltd. use environmental credits to cover obligations under an Alberta emissions charge. The charge is set to rise to $170 a metric ton by 2030, from $50 a ton this year, in accordance with guidelines by Canada’s federal government.
Sales on the Alberta market are private and prices aren’t publicly listed, though ClearBlue Markets said credits trade at about $47.50 a metric ton — a $2.50 discount to the carbon price. The discount may reflect that most credits are bought to meet short-term obligations by industrial emitters rather than being held long term as an investment, Gordon said.Article content
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