KenGen to earn $20 million per year selling carbon credits under CDM scheme
KenGen reports that it will be able to generate around US$20 million annually from the conversion of 2 million tons of carbon dioxide emission reduction under the Clean Development Mechanism set up under the Kyoto Protocol.
At a recent conference in Kenya, the Managing Director of KenGen, Mr. Edward Njoroge said that the company will be able to generate an income of around Ksh 1.9 billion (US$18.5 million) annually from the “conversion of some 2 million tons of carbon dioxide emission reduction at a rate of 10 dollars per ton”.
Mr. Njoroge says 10% of the carbon revenue will be channeled towards community projects around the plant area involving water, health, education facilities while the rest of the money will be ploughed back to KenGen’s expansion plans.
In 2010, KenGen signed an Emission Reduction Purchase Agreement (ERPA) with the World Bank for the purchase of 900,000 tonnes of carbon generated from one of its six Clean Development Mechanism (CDM) projects.
The CDM projects include Olkaria II 3 rd unit, Eburu, Kipevu combined cycle, Kiambere, Sondu Miriu and redevelopment of Tana Power Station.
Managing Director KenGen, Edward Njoroge says KenGen intends to continue developing green energy projects under the CDM.
“The company’s geothermal; wind and hydro power generation projects are eligible for CDM since they are clean energy projects. We intend to keep supporting green energy production for a safer environment,” he says.
The Kenya Electricity Generating Company (KenGen) is the pioneer company in the Clean Development Mechanism (CDM) project development process in the country. It began exploring the possible benefits of CDM from as early as 2000.
CDM is one of the market mechanisms defined under Article 12 of the Kyoto Protocol of the United Nations Framework Convention on Climate Change (UNFCCC) (1992) which provides the framework for stabilization of green house gases concentrations in the atmosphere at non-dangerous levels and preventing dangerous climate change globally.”
Source: Kenya Broadcasting Corp.