from the WSJ
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The biggest coal burner in the U.S. thinks it has come up with a cheap way to start fixing its global-warming problem: cow dung.
American Electric Power Co., a utility based in Columbus, Ohio, burns so much coal that it coughs out 145 million metric tons of carbon dioxide each year -- more than any other company in the U.S. That puts AEP squarely in Congress's crosshairs as lawmakers push to slap a cap on U.S. emissions of CO2, a gas contributing to global warming.
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In a deal to be announced today, the utility has agreed to pay a middleman to put plastic tarps over lagoons holding rotting livestock waste on farms. Decomposing manure produces methane -- a greenhouse gas that, ton for ton, is 21 times more damaging to the atmosphere than carbon dioxide, scientists say.
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AEP is not alone in launching methane-capturing projects to produce carbon credits. Other companies looking for speculative credits in anticipation of a U.S. carbon cap have collectively birthed a nascent industry. Among the companies that have sprung up to make money off of that market is the one AEP has hired for its methane-capture effort: Environmental Credit Corp., a State College, Pa., company that was founded three years ago and has since contracted methane-capture projects on 34 U.S. farms.
Though the AEP deal is tiny in terms of the utility's emissions, it's bigger than anything Environmental Credit currently has going. Each of the roughly 200 farms will average about 2,000 cows; some farms will have pigs. Environmental Credit, which conservatively expects an average of four annual CO2 credits per cow, is investing about $25 million in equipment for the AEP project -- 80% of which it plans to borrow from a bank. Says Ed Heslop, the firm's chief executive: "We got our neck out on the line here that a market's going to develop."
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