Biogas, Biomass, Carbon Credits, Clean Energy, Cleantech venture capital, Crude Palm Oil, Malaysia, Waste to Energy

TSH to reap benefits from carbon credits (Malaysia)

February 20, 2008 (The Star Online) – As the world’s second largest crude palm oil producer, Malaysia has great potential to reap revenue from certified emission reduction (CER), or carbon credits. According to Aseambankers, palm oil milling, which produces organic waste, create opportunities to generate CERs. It named plantation player TSH Resources Bhd as one of the beneficiaries of CERs in Malaysia.

“Thanks to its biogas power generation, the group qualifies to sell carbon credits, potentially generating an estimated 300,000 tonnes of carbon dioxide equivalent in carbon credit points per annum,” Aseambankers said in a recent report.

The research unit added that TSH had already secured annual sales of 150,000 CERs to a European buyer.

In a presentation on the company at the Aseambankers Carbon Credit Conference yesterday, TSH strategy and planning director Frederick Tan said oil palm plantation accounted for about 75% of group profits.

“About 25% of group profits comes from bio-integration, which includes biomass power, biogas power and ekopaper,” he said.

Tan said TSH was also looking to set up its fifth palm oil mill in Kalimantan, Indonesia next year and another one in 2010. The group plans to expand its landbank, he said.

“We are also looking to purchase more new greenfield and brownfield plantation land.”

When contacted by Starbiz, Tan said apart from earning carbon credits, there are also other benefits from CER projects.

“Apart from generating good returns on investments, CER-based projects are also cleaner and greener,” he said.

The group’s latest environment project, EkoPaper, which involves the making of pulp and paper from empty fruit bunches through the extraction and conversion of fibre, also looks promising, Aseambankers said.

“With plans to roll out EkoPaper by 2009, we estimate total capital expenditure over the next three years at about RM500mil,” the research outfit said in the report, which was distributed during the two-day conference which ends today.

The research house said tax benefits were the other advantages for being a CER recipient.

“In support of the Kyoto Protocol initiatives, the Malaysian government grants tax exemption on income derived from CERs between 2008 and 2010.

“This is in addition to other incentives for undertaking the generation of energy using biomass, hydropower and solar power,” it added.

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