The auction parameters for the Nitric Acid Climate Auctions Program (NACAP) have been updated in order to provide even more incentives for nitric acid plant operators and project developers to take part in the program. The eligibility for emission reductions has been extended substantially, so that all Carbon Credits generated between January 1st 2018 and December 31st 2024 can be redeemed. With these new parameters, plant operators can now monetize a substantially higher amount of carbon credits trough the auction.
In order to be able to benefit from the financial support offered through the program, the country where the nitric acid plant is located in, must have signed NACAG’s Statement of Undertaking prior to the auction.
The NACAP is planning to hold at least one reverse auction to sell put options to private sector companies. These put options would give the option holder the right, but not the obligation, to deliver eligible carbon credits to the NACAP in the future. In a reverse auction, eligible bidders would compete to determine the price guaranteed upon redemption for delivery of eligible carbon credits. It is anticipated that the starting price of the auction will be a number between $US15 and $US8.