Sterling Waterford releases second carbon credit note onto JSE

Asset managers Sterling Waterford Securities, the first advisory firm internationally to have listed a carbon credit product on an exchange — which realised a return of almost 250% for initial investors – will release its second Carbon Credit Note onto the JSE
on Monday, September 8.

The Sterling Waterford Carbon Credit Note 2, which will be listed on the JSE Securities Exchange, has a maturity date of December 2012, said Sterling Waterford director, Gregor Paterson-Jones.

He said the Note pays out the value of the Carbon Credit at the maturity date.

The first Note significantly outperformed nearly all asset classes from date of issue in early 2005 to maturity in mid 2008. Initial investors realised a return of almost 250% over this period in rands and investors on listing realised around 135%.

Paterson-Jones said all indicators for the second note were bullish as the carbon credit market was the fastest growing financial market in the world, with estimated growth in trade globally predicted to exceed US$20 trillion a year by 2020 (according to Richard Sandor, Chairman and CEO of the Chicago Climate Exchange and co-owner of the European Climate Exchange). It is also the only market not to have been affected by the global economic downturn.

The new Carbon Credit Note would offer exposure to this growing market which was becoming increasingly liquid. The note was tradable like a share on the JSE, was a rand hedge and was issued at a discount to exchange-traded carbon prices, Paterson-Jones added.

“All analyst forecasts are consistently bullish for the Carbon Credit Market to 2012. This market therefore offers investors an opportunity for a big upside. The growing interest in this market globally has generated a bull cycle which has not been affected by the global downturn brought about by the sub-prime woes of the US mortgage market.

“This is because carbon assets are uncorrelated to both equities and bonds, having shown robust price growth in the face of falling prices in nearly every other investment category,” he added.

Paterson-Jones said Carbon Credit Note 2 was aimed at both retail individuals and fund investors. Retail investors, companies and trusts can invest in Rands without having to use their offshore allowance, he added.
 
The second Carbon Credit Note is backed by a project portfolio owned and managed by BNP Paribas, a global bank with over 170 000 employees in over 85 countries. It is the largest company in France and the World’s 6th largest bank. The Note offers capital protection for any portion of non-delivery of the portfolio, Paterson-Jones added.
*** The market for carbon credits arose in 1997 as part of the international Kyoto Protocol on the reduction of environmentally harmful emissions.
The Carbon Credit market allows companies in developed countries which are struggling to meet stringent emission reduction targets in the first commitment period of Kyoto (2008-2012) to buy credits from developing countries which have reduced emissions through a particular project.
Failure of governments and companies to meet these binding targets will result in penalties. If demand for Carbon Credits increases as predicted, participants in the second carbon credit note stand to benefit.
• Sterling Waterford Securities is an established boutique South African asset management company, specialising in managing innovative, structured products in the Carbon Emissions Market and in clean energy private equity investment. Visit www.sterlingwaterford.com.

IFAT CHINA 2008: E-Scrap Recycling at the Top of the Agenda

According to Chinese estimates, there are between one and two million tons of waste electrical and electronic equipment in the People’s Republic every year with an expected increase of five to ten percent annually. In addition to old domestic equipment, there is also a great quantity from Japan, Russia, the USA and Western Europe for recycling and disposal in China. A research group at Hong Kong Baptist University estimates that approx. 70 percent of all used computers, cellphones and other electric and electronic equipment to be recycled from the world end up in China. This is actually illegal, because the People’s Republic forbids the import of waste electrical and electronic equipment in 2002.
These great quantities of materials are often recycled employing insufficient environmental, safety and health standards. Consequently, the Chinese government is planning to pass new legislation concerning recycling waste electrical and electronic equipment on one hand, by the creation of legal framework conditions, and on the other hand by setting up modern recycling centers.
As the Federal German Agency for Foreign Trade (bfai) reported, China is putting a lot of hope in the administrative rules for controlling pollution caused by waste electrical and electronic equipment, which took effect in February of this year. According to it, the Chinese Ministry of the Environment is drawing up a list of qualified recycling companies for waste electrical and electronic equipment, in which companies with a foreign investment share can be included. The technologies they use must correspond to national environmental standards, and checks at regular intervals are planned. In addition, supplying waste electrical and electronic equipment that has not been treated properly to companies not on the list is forbidden.

According to the bfai, an administrative regulation is currently being formulated concerning the recycling of household appliances. If it is enforced strictly, it will put a stop to illegal recycling activities, because it will stipulate precise details about the setting up of systems for waste collection depots, recyclers and waste disposal companies. The few currently existing, modern recycling facilities in China are still more or less pilot projects and are faced with an insufficiently organized system for collecting waste.
The question of costs is also supposed to be regulated by the administrative rule concerning the recycling of household appliances. Among other things, manufacturers of electric and electronic products will be required to contribute to covering recycling costs.

The German Ministry of the Environment is very interested in continuing and intensifying the existing collaboration with China in several areas of environmental management; this also concerns the regulated disposal of waste electrical and electronic equipment. With respect to the size of the Chinese electronics market, the use of energy-saving and resource-saving waste disposal technologies in China will have global environmental policy significance. Because the German waste disposal industry has acquired an excellent reputation with respect to its orientation to innovation and technology, there are excellent business opportunities on the Chinese market for German companies involved in recycling business. Following a Chinese-German workshop about environmentally compatible treatment of waste electrical and electronic equipment at the beginning of this year in Beijing, another bilateral panel discussion is planned on this topic at IFAT China. The objective of this workshop is to expand exchanges between the two countries about the implemented legal and technical standards as well as the framework conditions for successful further development of treating waste electrical and electronic equipment to the greatest extent possible. Participation of high-ranking representatives of the Chinese government and Parliament Undersecretary Astrid Klug as well as representatives from the business world is planned at the workshop.

Parallel to IFAT CHINA 2008, analytica China, International Trade Fair for Analysis, Biotechnology, Diagnostics, Laboratory Technology and Services, is taking place in Halls E4 and E5 of Shanghai New International Expo Center for the fourth time. Additional information is available at http://www.analyticachina.com

About IFAT CHINA
IFAT CHINA is the comprehensive trade fair for practical solutions in the areas of water supply, sewage treatment, waste disposal, recycling, air pollution control, environmental technology and recyclable energy sources in Asia. The trade fair supplies the business and networking platform for Chinese and international industry representatives and is supported by a solidly based technical and scientific conference program. IFAT CHINA 2006 had 284 exhibitors from 25 countries and approx. 10,000 visitors from 66 countries. The 3rd International Trade Fair for Water, Sewage, Waste, Recycling and Renewable Energy will take place at the Shanghai New International Expo Center (SNIEC) in China from 23 to 25 September 2008.

About Messe München International (MMI)
Messe München International (MMI) is one of the world’s leading trade-fair organizations with approximately 40 trade fairs for investment goods, consumer goods and new technologies. More than 30,000 exhibitors from more than 100 countries and over two million visitors from more than 200 countries take part each year in the trade fairs in Munich. In addition, MMI organizes trade fairs in Asia, Russia, the Middle East and South America. With six foreign affiliated companies in Europe and Asia as well as 66 foreign representatives covering 89 countries, MMI has a global network.

Additional information is available at www.ifat-china.com

Source: SanePR

Minister switches on the Darling Wind Farm - May 2008

The R75 million national demonstration project is the first “green energy” initiative in the country to produce electricity from wind power on a commercial basis – this coming against the backdrop of the national energy emergency. This project came on line in May 2008.

The Darling Wind Farm has four wind turbines which can supply 5.2 megawatts of electricity. All the electricity produced will be sold to the City of Cape Town as part of a long-term power purchase agreement.

The landmark project has been developed by a group consisting of the private developer Darling Independent Power Producer (Darlipp), CEF (Pty) Ltd which manages renewable energy interests on behalf of the Government and the Development Bank of Southern Africa (DBSA).

A portion of the funding was provided as a grant by the Danish International Development Assistance (Danida) programme of the Danish government.

The project also qualifies for a United Nations Global Environment Fund guarantee scheme, managed by the South African Wind Energy Programme (Sawep) of the Department of Minerals and Energy (DME).

Learnings from the project are intended to be used as a foundation for the acceleration of the development of other green electricity projects.

South Africa with its ample coastline has a potential for major electricity generation from wind, says Mr Hermann Oelsner, CEO of Darling Wind Power.

“The country has the potential to generate electricity from wind in excess of its current total national power consumption and without the harmful effects of fossil fuel and nuclear-powered generation plants,” says Mr Oelsner.

Dr Manny Singh, Chairman of Darling Wind Power, said that support schemes for renewable energy being developed by the DME and the National Energy Regulator of SA (Nersa) could enable renewable energy to play a significant role in South African power supply, while also reducing harmful emissions that contribute to global warming.

DBSA Executive Manager for SA Operations, Mr Luther Mashaba, confirmed the organisation’s commitment to affording emerging BEE entities the opportunity to participate in this major investment.

He also emphasized the DBSA’s role of acting as a catalyst and supporter of the empowerment of broad-based BEE entities in ownership structure of the project.

About Darlipp:
Darlipp is a member of the Oelsner Group of Companies, which is involved in the development of wind, wave and sun-powered electricity generation projects in the Western Cape. The Darling Wind Farm is the flagship project of Darling SEES (Sustainable Energy and Employment Scheme).

U.S. SMALL WIND TURBINE MARKET GREW 14% IN 2007

Up-front costs and lack of federal incentives remain obstacle to strong growth.

Driven by consumer concerns over climate change and rising electricity prices, the U.S. small wind turbine market grew 14% and deployed 9.7 megawatts (MW) of new power generating capacity in 2007, the American Wind Energy Association (AWEA) said today in its annual small wind turbine market report.  Small wind systems have rated capacities of less than 1 kilowatt (kW) up to 100 kW and are used for a broad range of applications, from charging batteries on sailboats and recreational vehicles to powering individual homes, farms, and small businesses.

“Consumers are eager for clean energy solutions, and a small wind system is one of the most productive ways to generate clean, reliable, fuel-free electricity,” said AWEA Executive Director Randall Swisher.  “To fully meet growing customer demand we need policies that make it easier and less costly to invest in small wind systems.” 

AWEA and small wind system advocates are calling for a 30% federal Investment Tax Credit (ITC).  Such a credit could lead to an estimated 40%-50% annual growth, similar to the growth in the solar photovoltaic (PV) market following the adoption of a federal ITC for solar in 2005.  Currently, there are no federal incentives in place for small wind systems.  Several states have incentives for small wind, and, not surprisingly, they are also the states with the largest small wind system markets.  Impractical and prohibitive zoning practices, as well as balkanized grid interconnection standards, pose additional barriers to growth. 

According to the AWEA small wind turbine report, in 2007:

    * Over 9,000 small wind turbine units were sold, with total sales value of $42 million;

    * Total small wind generating capacity in the U.S. is now 55-60 MW;

    * Small wind systems in the U.S. displace an estimated 60,000 tons of carbon dioxide annually, the equivalent of taking 10,000 cars off the road;

    * About 50 companies manufacture or plan to manufacture small wind systems in the U.S.;

    * The U.S. is the world’s largest small wind turbine market; and

    * Exports account for about 40% of U.S. small wind system manufacturers’ sales.

See the full Small Wind Market Report at

http://www.awea.org/smallwind/pdf/2008_AWEA_Small_Wind_Turbine_
Global_Market_Study.pdf
   More information about small wind systems is available at http://www.awea.org/smallwind/.

Entertain your brain at Sasol Techno X 2008

Science and technology developments are introducing new and exciting career choices for young people. The eight annual Sasol Techno X, taking place from 11-15 August 2008 at the Boiketlong Complex, Sasolburg, is aimed at sharing with learners the endless and exciting possibilities of science and technology.

Read the complete article here.

Pam Anderson builds green hotel

Pamela Anderson is building an eco-friendly hotel in Abu Dhabi. In keeping with the eco ideology of the project, Pam will only be using eco-friendly materials to build the hotel.

Read the complete article here.

Business faces carbon tax

The government has set out an ambitious proposal to deal with climate change in the coming years, including slapping a possible carbon tax on carbon dioxide-spewing industries. Saying the world faced “a global climate emergency,” the environment ministry unveiled the strategy geared toward reducing greenhouse gases last week.

Read the full article here.

National Geographic Megastructures Episode Features - Bahrain World Trade Center with Norwin’s Wind

National Geographic aired its newest documentary, on the Kingdom’s first truly intelligent office buildings- the Bahrain World Trade Center (BWTC) with its three integral Norwin A/S Wind Turbine Generators, in the UK February 5, 2008. The program will be broadcast throughout February in the UK and in March in the US on the National Geographic Channel. The three (3) Norwin 225 kW horizontal-axis 29m diameter wind turbines are mounted on bridges at 60, 98, and 136 Meters which span the two 50-storey sail-shaped commercial office towers, which taper to a height of 240 meters, support the three 29m diameter horizontal-axis wind turbines. Inspired by Arabian wind towers, the sail-shaped towers funnel the sea breeze into the three wind turbines. They act as aerofoils, funneling, and accelerating the wind velocity between them. The vertical sculpting of the towers also progressively reduces the pressure so that when combined with the rising velocity of the onshore breeze at increasing heights, a near equal regime of wind velocity on each turbine is achieved. Through its positioning and the unique aerodynamic design of the towers, the prevailing on-shore Gulf breeze is funneled into the path of the turbines, helping to create power generation efficiency. Once operational, the wind turbines will deliver approximately 11-15 per cent of the BWTC’s energy needs, eliminating around 55,000 kilos of carbon from being emitted into the air annually. Incorporating the wind turbines as an alternative source of energy for the buildings will generate 1100 to 1300 MWh per year, which is equivalent to lighting 300 homes for more than a year and will create substantial annual savings.

This is the first time that a commercial development has integrated large-scale wind turbines within its design to harness the power of the wind to generate an alternative energy supply. The use of ‘type-rated’ turbines with minimal modifications ensured that the additional cost incurred by incorporating turbines into the project was reduced to around 3.5% of the overall project value making it a financial viable venture and since its initial design launch there have been a number of derivative projects in the region, a true testament to the viability of the project’s design. The two 50-storey iconic towers, will not only provide local and international companies with a landmark business address but are further set to create office space that achieves new standards in technological advancement. The towers are integrated on top of a three-storey podium, which accommodates a new boutique shopping centre, fine dining, business center and car parking.

World Trade Center Bahrain is featured as a rising symbol of achievement and a reflection of the region´s fastest-growing economy, the WTC Bahrain will be the world´s newest landmark and has already established a landmark low carbon environmental achievement. The site for the Bahrain World Trade Center is prestigiously located on the main King Faisal Highway in Manama, Bahrain

NORWIN A/S Installs The First Utility-Scale Wind Turbine In The Eastern Caribbean

Norwin A/S with the support of Sustainable Planning and Development successfully installed a Class 1 NORWIN 225 kW wind turbine on a 40 meter mono pole tower in Dominica. The wind turbine is installed at Rosalie Nature Resort Facility where it will offset the high cost of energy from the utility and supply energy to the grid when excess is generated. The wind turbine is expected to generate 586,000kWh of clean energy per year offsetting 160 metric tons of CO2 emissions per year.

Source: SanePR

Web: http://www.murphyintldev.com

The business of Carbon Footprints in SA

I had a really interesting discussion with a leading mining industry consultant who has spent much time involved in strategic and operational decisions for mining houses around the globe.

He was telling me that in Australia when you purchase an airline ticket, you are prompted to find out if you would like to make a contribution to a fund as part of responsible handling of your carbon footprint. i.e. a computer will calculate that your plane trip from Sydney to Melbourne will have a AUS$1.3 impact on the environment and then ask you to make a voluntary payment here.

What is apparently interesting (and I can’t verify this) is that a number of Australians are quite happy to agree to pay this amount, the moment they pay for their transaction. I am quite a big believer that similar offerings will come into South Africa very soon and it will be interesting to see how South Africans will embrace something along these voluntary lines.

 Are South Africans mature enough to make this contribution willingly? Are they more willing to pay this than a govt. tax for instance? Or will cash strapped South Africans simply refuse to not be parted from their hard earned cash?

Do YOU think SA is ready??