Standard Bank Group has successfully contracted with, what is expected to be, the first Clean Development Mechanism (CDM) project in Zimbabwe. The project for Sable Chemicals, a fertilizer manufacturer, will be one of only a handful of nitrous oxide abatement projects on the African continent.
The development uses a catalytic converter which allows nitrous oxide, a harmful greenhouse gas and bi-product from the plant, to be converted into harmless gases. This nitrous oxide abatement project can generate carbon credits and Standard Bank Group has agreed to be the full off-taker of carbon credits from the development. In addition, Standard Bank Group will be offering an innovative financing structure that will allow the project to effectively pay for itself.
Sable Chemicals manufactures ammonium nitrate fertilizer, which is supplied largely to the domestic market. The company founded in 1965, began its operations in 1969 and is located in Kwekwe, Zimbabwe. CDM technical work is being completed by MGM Innova.
Fenella Aouane, Senior Manager of the carbon trading team at Standard Bank Group, said: "we are committed to working with companies across Africa on carbon and clean energy projects. We are working closely with the Zimbabwean Designated National Authority and ministers to assist them in registering this project, which will be the first for Zimbabwe.
"CDM projects are particularly suited to the African continent. By trading carbon credits that come from such projects, industrialised countries are able to invest in projects that reduce greenhouse gas emissions in developing countries."
Jack Murehwa, CEO of Sable Chemicals said: "Standard Bank has played an integral role in what is a landmark project for Sable Chemicals and Zimbabwe. The company will now be able to benefit from carbon credits whilst also benefiting the environment by reducing greenhouse gases that the plant produces."
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