We actively monitor the constantly evolving environmental regulatory landscape and proactively adapt our business to comply with anticipated or potential changes.
We have taken preemptive measures to reduce certain emissions from our East Dubuque Facility. In 2011, we voluntarily installed on one of our nitric acid plants what we believe is the first tertiary nitrous oxide catalytic converter in the United States that is designed to reduce the emissions of nitrous oxide from that plant by 90%. Nitrous oxide is a greenhouse gas with a global warming potential (GWP) of 310 times that of carbon dioxide. As such, every ton of nitrous oxide destroyed is the same as destroying 310 tons of carbon dioxide. Assuming this conversion rate and the amount of nitric acid produced from this nitric acid plant in 2012, it is expected that the converter would reduce nitrous oxide emissions at the facility by over 450 tons per year. This project is listed with the Climate Action Reserve (CAR). The carbon offsets generated from this project under the CAR Nitric Acid Production Protocol are sold into the voluntary market. Proceeds from the carbon offset sales are used to pay for both capital and operating expenses for the nitrous oxide catalytic converter.
We are installing a second nitrous oxide catalytic converter and expect the project to be completed by the end of 2013. Post-installation of the catalytic converter, nitrogen oxide emissions limit will represent an 80% decrease from the pre-installation nitrogen oxide emissions limit.
In addition, we retrofitted three of our compressor engines, which compress the synthesis gas at our East Dubuque facility, with improved combustion control systems and combustion chambers which has improved efficiency and reduced the generation of nitrogen oxides and other pollutants at the source.
We plan to implement the same proactive approach to environmental compliance we use at our East Dubuque facility to our Pasadena facility, which we acquired at the end of 2012.