Hedge fund invests in GHG credits to bury carbon

Och-Ziff Capital Management Group LLC will invest as much as $500 million in projects that bury greenhouse gases blamed for global warming and create tradable emissions credits.

The $500 million will focus on projects that capture carbon dioxide and other greenhouse gases at the smokestacks of utilities and large manufacturers, such as fertilizer and cement makers. The gas will then be pumped by pipeline to an abandoned oil well or saltwater aquifer for long-term storage.

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 reductions in greenhouse gases and create a market for emissions credits that utilities and large manufacturers would need to meet pollution targets.

Read more