Element Markets, powering the clean energy revolution

As the largest holder of projects on the Climate Action Reserve registry, Element Markets transacted nearly 20 million greenhouse gas credits in 2009. Element Markets provides structured environmental compliance and portfolio-optimization services to a range of end-users including power producers, manufacturers, governments, academic institutions, and large industrials.

"Because of the way the company is structured, with trading, marketing and development operations across our greenhouse gas, emissions and renewable energy units, we've been able to take advantage of the slowdown in the carbon space to gain market share in all sectors," says Angela Schwarz, President and Chief Operating Officer of Element Markets.

In addition to this year's award from Energy Risk, Element Markets LLC previously ranked first in the following categories of the Energy Risk Environmental Rankings:

• #1 US Voluntary Emissions Reductions (GHG) Dealer
• #1 US Sulfur Dioxide (SO2) Dealer
• #1 US Nitrous Oxide (NOx) Dealer
• #1 US Renewable Energy Credit Dealer
• #1 US Regional Greenhouse Gas Dealer

"Under difficult circumstances and while many other companies scaled back their activities in US emissions markets, Element Markets expanded its presence in the Emissions, Renewable Energy Credit, and Greenhouse Gas markets over the last 12 months making it the deserving winner of Energy Risk's US Emissions House of the Year," said Stella Farrington, Editor of Energy Risk magazine. "Element Markets' dedication to the market has resulted in them becoming the largest holder of projects on the Climate Action Reserve registry and a leader within the US Greenhouse Gas Sector."

The 14th annual Energy Risk awards recognized companies of excellence in energy. An awards ceremony was held on May 25, 2010 where Element Markets was presented its award. An Energy Risk judging panel, which is made up of Energy Risk editors and third-party industry experts, ultimately selected Element Markets as the company that has gone above and beyond industry standards within the US emission space.

"We are thrilled to partner with Element Markets on this groundbreaking project that exemplifies our company’s interest in maximizing all possible products and byproducts of the wastewater treatment process," said John Mitchell, President of Environmental Management Corporation. "Acceptance of this project by the Climate Action Reserve highlights our company’s excellence in providing environmentally sustainable solutions."

The project came online March 2009, and was officially listed December 2009. Located in Texas, the EMC facility collects raw wastewater from onsite processes and pumps it to an anaerobic lagoon for treatment. The facility utilizes anaerobic digestion which is the treatment of industrial or agricultural waste in an oxygen-free environment to reduce organic strength and produce biogas. The biogas is a methane-rich gas which can be used to produce electricity and/or heat for industrial processes or exportation.

Element Markets serves as the asset manager for EMC, and manages the registration, verification and marketing of the greenhouse gas credits. Element Markets estimates that the facility will generate 20,000 to 25,000 metric tons of greenhouse gas offsets per year, created through the destruction of methane that would have otherwise been emitted.

"We are committed to developing and managing high quality greenhouse gas destruction projects and are pleased to be the first company to successfully list an OWD project on CAR," said Angela Schwarz, President and Chief Operating Officer of Element Markets. "The management of wastewater will be a growth sector for us and we are honored to be a partner with an industry leader such as EMC."

"We are pleased to see the application of the Organic Waste Digestion Project Protocol. The OWD protocol was a natural successor to the Landfill Project Protocol, which already has nearly 130 projects submitted under it. OWD could experience similar rapid industry application, and we congratulate Element Markets for being the first to venture into this area of emissions reductions," said Gary Gero, President of the Climate Action Reserve.

About Environmental Management Corporation
Environmental Management Corporation is headquartered in St. Louis, Missouri, and provides water and wastewater management solutions for industrial and municipal customers. The company pioneers solutions for optimizing the total water cycle, turning liquids, solids and gases to its customers' advantage. The company is a wholly owned subsidiary of American Water (NYSE: AWK). Founded in 1886, American Water is the largest investor-owned U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs more than 7,000 dedicated professionals who provide drinking water, wastewater and other related services to approximately 16 million people in 35 states, as well as Ontario and Manitoba, Canada. More information can be found by visiting www.amwater.com .

The company was recognized in the following categories:

• Best Trading Company in North American Renewable Energy Credits
• Best Trading Company in SO2 Emissions Credits
• Runner-up for Best Trading Company in the North American Mandatory Greenhouse Gas Markets

This year marks the second consecutive year the company was named Best Trading Company in SO2 Emissions Credits.

"In spite of the challenging market conditions, Element Market’s environmental commodities business grew significantly in 2009 and we are especially pleased to be recognized by Environmental Finance for our efforts," said Angela Schwarz, President and Chief Operating Officer of Element Markets. "These awards validate our focus on providing outstanding client service across all environmental commodities. We look forward to continued growth and success in 2010.

Environmental Finance’s 10th annual market survey received nearly 1,500 completed responses. Survey participants were asked to nominate industry leaders using an online survey and to vote only in those categories in which they had direct experience. Among the factors considered were efficiency and speed of transactions, reliability, quality of information and service provided, innovation, and influence on the market.

Schwarz added, "We are grateful for this acknowledgment and we thank all of our clients for their continued support and confidence."

Element Markets placed first in all of the following categories:

• US Renewable Energy Certificate Dealer
• US Regional Greenhouse Gas Initiative Dealer
• US Voluntary Emissions Reductions Dealer
• US Sulfur Dioxide (SO2) and Nitrous Oxide (NOx) Dealer

This marks the second consecutive year the company has received the #1 ranking in US Renewable Energy Certificates and Voluntary Emission Reductions.

"We had a great year and I am pleased that we performed so well and experienced significant growth despite challenging market conditions," said Angela Schwarz, President and Chief Operating Officer of Element Markets. "We are proud to be recognized as the leader in the US environmental commodity marketplace, but we are especially honored as this recognition comes from our clients and peers."

The second annual Energy Risk Environmental Rankings survey, designed to provide timely insight into how energy industry participants perceive current market activity, was distributed online to global energy industry participants. Voters were asked to select the top companies in the emissions and renewables markets. The survey garnered 461 valid responses, which reflects a 90 percent increase over last year's rate of response.

Schwarz adds, "Thank you to Energy Risk and all of our clients for your continued support and confidence in our ability and expertise in the environmental markets."

"The inclusion of Element Markets as a partner of Agri-Trend Aggregation means that our firm is well positioned to offer continued leadership in the field of greenhouse gas and carbon offset aggregation for agriculture," said Robert Saik, CEO of ATAI. "As this market unfolds, we value the role Element Markets will play in expanding our business across Canada and into the U.S."

"We are pleased to have completed our investment in ATAI as we expand our presence in Canada and further our commitment to high quality Greenhouse Gas offsets." said Angela Schwarz, President and COO of Element Markets. "Agriculture-based carbon credits are a strategic growth segment for our company as we expect them to play an increasing role in carbon trading in the United States and Canada. Element Markets will bring commercial expertise and relationships in the emissions markets to ATAI’s aggregation program. This investment builds upon our strong foundation in North America and positions Element Markets for future growth in Canada".

Currently, Agri-Trend Aggregation Inc. operates in Alberta working with farmers using a tillage protocol that documents carbon sequestration in soils through advanced farm management practices. They have aggregated more agricultural carbon offsets than any other single entity and have returned significant payouts to Alberta farmers. Customers purchasing carbon offsets from ATAI include those from the fertilizer, oil & gas, chemicals and cement sectors. ATAI also has a presence in Saskatchewan through a network of Carbon-Coaches™ in anticipation of the passage of a Saskatchewan climate change bill in 2010.

"We are Canada’s most trusted supplier of agricultural offsets to the Large Final Emitter community and a prominent and well-established player in terms of volumes transacted." said Bill Dorgan, president of ATAI. "The addition of Element Markets as a strategic partner reaffirms our commitment to operate our business in a transparent and professional manner that yields tremendous value to farmers and meets the needs of Large Final Emitters. The offset system in Alberta continues to mature with the number of offset projects, the volume of credits and the number of market participants increasing every year".

About Agri-Trend Aggregation Inc.
Agri-Trend Aggregation Inc. is a privately held Canada-based carbon aggregator headquartered in Alberta. ATAI offers a network of Carbon-Coaches™ offering the Soil Carbon Offset Program™ (SCOP) pursuant to the Alberta tillage protocols, and, in the near future, pursuant to the Saskatchewan protocols. They are an original signatory in the formation of the Carbon Offset Trading Association, and have been involved in carbon policy development since 2000. The SCOP project is managed using The Agri-Data™ Solution Netware platform which is a proprietary, state-of-the-art carbon data management system. For more information, please visit www.agritrend.com.

100 CCFE Jul-09 REC NJ contracts, representing 10,000 megawatt hours (MWh) of New Jersey Class 1 RECs, expired and were physically delivered through the PJM Generation Attribute Tracking System (GATS). Delivery is a three consecutive business day process coordinated by The Clearing Corporation. Integrys Energy Services, Inc and Element Markets LLC were parties to this landmark transaction.

The CCFE has provided a financial tool that adds much needed liquidity in the REC markets. The launch and use of the contracts sends a clear message that the markets are maturing and progressing toward a more standardized product, said Element Markets Director of Trading Eric Winter. "The ability to financially trade and clear on a federally regulated exchange provides a level of price discovery and transparency absent in a strictly OTC market.

In addition to the REC NJ contract, CCFE also lists standardized futures contracts requiring delivery of Connecticut (REC CT) and Massachusetts (REC MA) Class 1 RECs, and voluntary Green-e® Energy National Standard eligible RECs (REC-V).

Current open interest across all of the RECs traded on CCFE is at a record high of 1,100 contracts.

For a complete list of products please visit: http://ccfe.com/about_ccfe/products.html

For complete price, volume and open interest information please visit: http://www.ccfe.com/mktdata_ccfe/index.jsf

 

CCFE currently offers the following REC futures contracts:

• New Jersey Compliance REC Futures (REC-NJ Class 1)
• Connecticut Compliance REC Futures (REC-CT Class 1)
• Massachusetts Compliance REC Futures (REC-MA Class 1)
• Voluntary REC Futures (REC-V)

 

On the first day of trading, 150 REC futures contracts (representing 15,000 megawatt hours "MWh") of renewable energy traded on CCFE.

• Element Markets LLC and CE2 Capital Partners were parties to the first-ever block trade in the CCFE REC-NJ Futures contract. This trade was brokered by Amerex Brokers, LLC and cleared on CCFE.
• Element Markets LLC and GDF SUEZ Energy Marketing NA were parties to the first-ever screen based trade in the CCFE REC-NJ Futures contract.

 

"Renewable energy is an increasingly important part of GDF SUEZ's business in North America," said Sam Henry, president and CEO of GDF SUEZ Energy Marketing NA. "GDF SUEZ is producing more electricity in North America from renewable sources such as wind, hydro, and biomass than ever before, and we are equally proud to be on the leading edge of developing ways to support the growth of Renewable Energy Certificates in the U.S."

 

"The launch of Renewable Energy Certificate ("REC") futures contracts on the CCFE is an important step for the emerging clean energy markets. It also marks another milestone in the development of a truly comprehensive environmental marketplace in the United States that takes into consideration the various environmental impacts of energy production." said Dr. Richard Sandor, Chairman and CEO of CCX. "We continue to be responsive to the increasing demand for environmental products as the U.S. weighs the merits of using market-based mechanisms to address environmental concerns and foster job creation. We believe the benefits of price discovery, transparency and standardization that a federally-regulated Exchange such as CCFE brings can only help to spur innovation and liquidity in these markets."

 

About Renewable Energy Certificates

 

Compliance RECs are electronic certificates that satisfy the requirements of a renewable portfolio standard (RPS). A Renewable Portfolio Standards is a regulatory policy, enforced at the State level, that requires the production of energy from renewable resources to be included in the sales or generation portfolio of a regulated electric utility. The RPS mechanism generally places an obligation on electricity supply companies to produce a specified fraction of their electricity from renewable energy sources. The typical means of compliance is by acquiring tradable electronic certificates sufficient to meet the utility’s requirements and for these to be turned into the regulator on a determined schedule.

 

For a complete list of products please visit: ccfe.com/about_ccfe/products.html

 

For more information on obtaining access to CCFE products, please visit www.ccfe.com or contact:

 

Michael MacGregor		Dan Scarbrough
mmacgregor@theccx.com		dscarbrough@theccx.com
(312) 229-5122		(312) 229-5129

 

About Chicago Climate Exchange and Chicago Climate Futures Exchange

 

CCX is an Exchange whose objectives are to apply financial innovation and incentives to advance social, environmental and economic goals. CCX, which began trading in 2003, is the world’s first and North America’s only legally binding, rules-based greenhouse gas emissions allowance trading system, as well as the world’s only global system for emissions trading based on all six greenhouse gases. Chicago Climate Futures Exchange (CCFE), a wholly owned subsidiary of the Chicago Climate Exchange, is a CFTC designated contract market which offers standardized and cleared futures and options contracts on emission allowances and other environmental products. Clearing services are provided by The Clearing Corporation, the only active independent futures clearinghouse in the world. Market surveillance services are provided by the National Futures Association, the industry wide, self-regulatory organization for the U.S. futures industry. In 2005, CCX launched the European Climate Exchange (ECX), now the leading exchange operating in the European Union Emissions Trading Scheme. Since 2006, both CCX and ECX have been owned by Climate Exchange plc, a publicly traded company listed on the AIM division of the London Stock Exchange (CLE.L).

"This is an exciting project that will help us gain valuable experience with solar installations," said George Caraghiaur, vice president of energy services at Simon. "As the solar industry matures and technological improvements continue to drive down the cost of installations, we expect that solar renewable energy purchases will become a cost-effective component of our sustainability strategy. We chose to partner with Element Markets as they are a leader in the field of renewable energy and carbon management."

 

Construction on the solar facility began on December 3rd and was completed in 20 days, on December 23rd. Melissa Palencia, the mall manager at The Shops at Mission Viejo, was impressed with the installation and operation of the new system.

 

"The installation started during our holiday season and there wasn't a disruption to normal business for our tenants or customers," she said. "Now," Palencia continued, "even on a cloudy, rainy day, our solar panels provide us with up to 130 kilowatts of savings."

 

"We are entering a new era for renewable power generation and we are very pleased to partner with Simon to identify renewable opportunities across Simon's portfolio," said Randall Lack, managing director at Element Markets. "With advances in technology and the national agenda for non-fossil power generation, Simon is positioning itself in a leadership role to economically participate in renewable generation."

 

About Simon Property Group

 

Simon Property Group, Inc. is an S&P 500 company and the largest public U.S. real estate company. Simon is a fully integrated real estate company which operates from five retail real estate platforms: regional malls, Premium Outlet Centers(R), The Mills(R), community/lifestyle centers and international properties. It currently owns or has an interest in 386 properties comprising 263 million square feet of gross leasable area in North America, Europe and Asia. The Company is headquartered in Indianapolis, Indiana and employs more than 5,000 people worldwide. Simon Property Group, Inc. is publicly traded on the NYSE under the symbol SPG. For further information, visit the Company's website at www.simon.com.