Major Energy Companies Are Trading Tokenized Emissions Credits

Blockworks

March 31, 2023

Natural gas producer PureWest is minting tokenized emissions credits in an effort to reduce the footprint of a methanol producer and other customers.

The Denver-based company’s certified environmental tokens (CETs) reflect aggregated data collected and verified by data company Project Canary. 

PureWest is now transacting the tokenized credits with Switzerland-based Proman, the world’s second largest methanol producer, the energy firm announced this week. PureWest itself is the most prolific natural gas producer in Wyoming, per its website.

The CETs are each matched to one million British thermal units (MMBtu) of gas produced and are sold on an MMBtu basis, Kelly Bott, PureWest’s senior vice president of ESG, land and regulatory told Blockworks. 

Using blockchain eliminates concerns about double selling and proves that each MMBtu of gas was produced with the Project Canary-verified attributes. PureWest describes CETs as “purchasable credits stored on the blockchain for third-party users to achieve their emission reduction goals.”