Wednesday, November 28, 2007

Indian Carbon Plays

From The Hindu:
Carbon trading: Money from (clean) air

...Listed Indian companies are already reaping sizeable profits through Certified Emission Reduction (CER) deals. The UNFCCC issued 1.83 million CERs to SRF Ltd in February 2006 for its HFC-23 thermal oxidation plant.

Following this there was a surge in its net profit in the third quarter (December 2006) due to an inflow of Rs 122.28 crore from the sale of CERs. This was nearly 27 per cent of the total income that year.

Tata Sponge Iron Ltd got a CDM certificate from the UN for its waste heat recovery project in Orissa. The company expects to reduce 3,17,624 tonnes of carbon dioxide over a 10-year period. JSW Steel’s plant in Karnataka has got clearance for its carbon credit project and is expected to earn 7.67 million CERs over the next 10 years.

All these CERs could be traded in the market, which would provide potential income over the next few years. Gujarat Fluorochemicals, Gujarat Ambuja Cement, Birla Corporation Ltd, Balrampur Chini Mills, Tata Steel and JK Cement are also eyeing additional profits through the CER route by 2012. Reliance Energy already has energy efficiency and process development CDM projects and is now looking at natural gas-based power plants....Source