August 21, 2007 (Point Carbon) – Trading Emissions plc, a London-listed carbon aggregator, has taken a substantial controlling stake in one of the world’s biggest biogas plants and one of the first projects to be eligible for carbon credits in Thailand, the company said today.
Through its subsidiary Trading Emissions Asia, the company now owns 81 per cent of Korat Waste to Energy Company (KWTE), which produces electricity from organic material in wastewater. The project is expected to yield over 300,000 carbon credits per year by displacing almost 10 million litres of fuel oil per year.
“As part of TEP Asia’s growth strategy, we sought to acquire a cornerstone asset for the business. KWTE’s size and location make it a perfect fit for our long term goals,” said Simon Shaw, managing director of EEA Fund Management Ltd, investment adviser to Trading Emissions.
“We plan to continue to grow TEP Asia around the KWTE asset both organically and through further acquisitions,” he said.
Trading Emissions is listed on the junior London equities exchange AIM and is one of the world’s largest public aggregator of UN carbon credits known as certified emissions reductions, with a market capitalisation of £434 million (€693.3 million).
CERs can be used by companies and countries for compliance with mandatory emission reduction targets under agreements such as the Kyoto Protocol and the European emissions trading scheme.
Over one billion CERs are expected to be generated from UN registered projects by 2013. However, political turmoil in Thailand has stalled investment in the country, with just three projects registered by the UN with the potential to generate almost 2.5 million CERs.