Financial Daily from THE HINDU group of publications
Thursday, Apr 13, 2006
Financial Daily from THE HINDU group of publications Thursday, Apr 13, 2006 |
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Corporate - Trends Web Extras - Environment Big cos line up for carbon trading Mamuni Das
Price list For large projects in the registration phase, prices are at Rs 758-867 for credits that can be delivered before 2007. For early credits (in pre-2008 period) in registration pipeline, buyers pay Rs 758-Rs 975. For 2008-12, the rates are ruling at Rs 433-650.
New Delhi , April 12 Over the next two months, about 37 Indian projects including a host belonging to big corporates such as Reliance Industries, Birla Corporation, Tata Sponge Iron, ACC, Gujarat Ambuja and JSW Steel are likely to be registered at the United Nations as projects that can potentially trade carbon credits. These projects are in the request for registration stage and would be registered at various dates up to June 1, provided there are no requests for review. Registration is a prerequisite for issuing certified emission reductions (CERs) or carbon credits that are tradable. Several developed nations and companies there are mandated to meet greenhouse gas reduction norms in a time bound manner as per the Kyoto Protocol. To meet these requirements, they can buy carbon credits generated elsewhere. Each CER equals one tonne of carbon dioxide reduction.
Price per CER
The price per CER varies depending on the project size and level of completion. "For large projects in the registration phase, prices are at -16 (Rs 758-867) for credits that can be delivered before 2007," said Dr Ram Babu, Associate Director, PricewaterhouseCoopers. Echoed Mr Robert Taylor, Director, Agrinergy, "For early credits (in pre-2008 period) in registration pipeline, buyers pay -18 (Rs 758-Rs 975)." For 2008-12, the rates are ruling at -12 (Rs 433-650).
Sector-wise
The projects are from sectors including, cement, hydropower generation, sugar, steel and tyres. Those that may generate relatively larger amount of CERs per annum are those of JSW Steel (7,67,325 credits), Gujarat Ambuja Cements (5,51,829), ACC (4,05,314), MSPL's wind power project (2,53,240) and Shree Cements (107,074). Others projects include those of JK Cement (70,796), Grasim Industries (51,932), Phillips Carbon Black (45,721). These numbers reflect annual CERs.
JSW Steel's Karnataka-based project, involving electricity generation through waste gas combustion, may earn about Rs 58.16-74.8 crore per annum.
Gujarat Ambuja Cements Ltd, with its fly ash blend project at six of its units, may earn between Rs 41.82-53.8 crore per year till 2007.
ACC, through its blended cement projects at six units, could earn Rs 30.72-39.51 crore annually.
Shree Cements could earn between Rs 8.11-10.43 crore by using biomass as an alternative fuel at its Rajasthan unit.
Iron ore mining company MSPL Ltd, along with RMMP Ltd and PVS & Brothers, proposes to generate 125.15 MW through a wind energy project.
Tata Sponge Iron, through its power plant at Joda, aims to earn 31,372 CERs annually.
Reliance Industries, has two projects — one each at Hazira and Jamnagar that could generate 23,391 and 34,807 CERs, respectively every year.
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