MG Biogreen To Set Up 10 More Waste Composting Plants

KUALA LUMPUR, Aug 27 (Bernama) -- MG Biogreen Sdn Bhd aims to set up 10 more waste composting plants, costing US$2 million each, over the next three years to step up its carbon credit production, senior vice president of operations Dennis Lau said today.

"These waste management plants in our expansion plan will be very similar to the one we have (in Lahad Datu) today, (focusing on) composting waste management driven by technology of palm oil waste," Lau said.

"The plants will contribute mainly to the sale of carbon credits," he said, adding that the company was identifying locations in Malaysia and Indonesia for the setting up of the plants.

Carbon credits, a tradeable permit scheme, provide a way to reduce greenhouse gas (GHG) emissions by giving them monetary value, where a credit gives the owner the right to emit a tonne of carbon dioxide.

Credits can be exchanged between businesses or bought and sold in international markets at the prevailing market price.

MG Biogreen has clinched sales of over RM1 million annually for five years by selling to Japan's Kansai Electric Power Co Inc carbon credits produced from its palm oil waste composting plant in Lahad Datu, Sabah.

The company signed an emission reduction purchasing agreement with Kansai Electric at a ceremony here today witnessed by KYOTOenergy Pte Ltd's chief executive officer Michel Buron.

KYOTOenergy, considered the only technology-based carbon asset management company, is responsible for facilitating the sales.

The agreement will allow MG Biogreen to transact up to 400,000 carbon credits until Dec 31, 2012, while Kansai Electric has an option to extend the agreement beyond that date.

MG Biogreen a subsidiary of the MicroGreen group of companies, whose principal activities include research and development on microbial and related products and biological processes, licensing of its technology and the business of organic waste management, and manufacturing and marketing of bio-organic fertilizer and related products.

-- BERNAMA