Goldman buys into carbon-offset firm

Goldman Sachs Group Inc. has bought a minority stake in the carbon-offset provider Blue Source LLC as it expands in the U.S. greenhouse-gas emissions market.

Goldman will market verified emissions reduction credits from Salt Lake City-based Blue Source's projects, Blue Source Chief Executive Officer Bill Townsend said Monday. The deal represents an equity stake of less than 10 percent, said Townsend, who declined to be more specific.

The partnership brings Goldman's liquidity and a customer list of thousands to Blue Source, which helps create credits representing about 20 million tons of emissions reductions a year. That number could double in the coming years, as demand for emissions credits rises, Townsend said.

"We have a customer list of 100-plus clients," Townsend said in an interview. "They have a customer list of thousands. A company the size of Goldman is hunting for a really big supply."

Emissions credits from projects that reduce global-warming gases are voluntarily traded in the U.S. by companies and others seeking to enhance their environmental image. Congress is debating legislation that would mandate emissions reductions, a move than could expand the market for the type of credits offered by Blue Source.

More customers are buying emissions credits with the expectation that they may be used to meet mandatory pollution targets in the future, Townsend said. Credits from projects that destroy methane from landfills or that bury carbon dioxide underground are worth about $10 a ton, less than half the cost of credits in the European Union greenhouse-gas market.

"Interest in the pre-compliance carbon market in the U.S. is growing rapidly and we are excited to be able to offer our clients immediate access to a diverse selection of emission reductions to manage their carbon risk," Leslie Biddle, Goldman's head of commodity sales, said in a statement.