| Mon 17 Mar 2008, 16:31 | | OMN - Omnia Holdings - Omnia And Ifc Announce Landmark Carbon Trading |
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OMN
OMN
OMN - Omnia Holdings - Omnia And Ifc Announce Landmark Carbon Trading
Transaction Advancing The Global Fight Against Climate Change
OMNIA HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1967/003680/06)
JSE Code: OMN
ISIN: ZAE000005153
("Omnia")
Omnia and IFC announce landmark Carbon Trading transaction Advancing the global
fight against climate change
IFC, a member of the World Bank Group, and Omnia, the diversified, specialist
chemical services provider with business interests balanced across chemical,
mining and agricultural markets, today announced an agreement under which IFC
will purchase up to one million carbon credits from Omnia over the next five
years, supporting the global fight against climate change. The agreement totals
an estimated 15m Euros.
IFC will purchase carbon credits, known as Certified Emission Reductions (CERs)
from Omnia Fertilizers and sell these on to international buyers. IFC has
committed to purchase a minimum 50% of all Omnia`s CERs for the next five years
and will guarantee the delivery of the credits to potential buyers. The Clean
Development Mechanism of the Kyoto Protocol has established CERs as an asset
that can be traded in global markets and aims to decouple economic growth from
greenhouse growth.
Omnia Fertilizer, through its Sasolburg plant, will generate approximately 420
000 CERs per annum. The emission reductions will come from a nitrous oxide (N2O)
destruction facility that has been installed by Omnia at its nitric acid plant.
This destruction facility will significantly reduce the plant`s N2O emissions.
Greenhouse gas emissions, including Nitrous Oxide, are believed to be the cause
of global climate change. Omnia announced the approval of the CDM plant in
August last year, and the plant, which uses German Uhde technology, is now fully
operative.
The carbon credits Omnia`s plant will produce are expected to add R60m to the
Group`s revenue annually, based on the current price of CERs, which is currently
approximately Euro15 per ton. The carbon credits are issued by the Executive
Board of the Clean Development Mechanism Protocol.
Omnia Fertilizer MD, Trevor Grant, said the group was proud to be taking the
lead in supporting the Kyoto protocol. "The construction of our nitrous oxide
destruction facility underlines Omnia`s commitment to sustainable development
and reflects the Group`s focus on improving all areas of our environmental
management. We believe IFC, with its AAA-rating and experience in the carbon
trading market, is an ideal partner to assist us in generating strong revenue
from the carbon credits we will generate".
"IFC places a strong emphasis on environmental and social sustainability and is
eager to work with companies who want to undertake climate friendly projects and
commercialize carbon assets," said Saleem Karimjee, IFC Manager for Southern
Africa. "We hope that Omnia`s move will encourage other companies in Africa to
also reduce their greenhouse gas emissions."
ENDS
About Omnia
Omnia is a diversified, specialist chemical services company providing
customised solutions in the chemicals, mining and agriculture markets.
The Group`s ability to provide customised solutions by continually expanding its
base of knowledge has allowed it to match customer needs to product innovation
and optimal application, placing Omnia at the forefront of the Chemical services
industry in South Africa. The Group continues to strengthen each of its
businesses and has embarked on a number of innovative projects that will
significantly impact on improved logistical and raw material efficiencies as
well and environmental improvements. Omnia has also achieved excellent cross-
border growth by securing contracts outside of the country.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in
developing countries by financing private sector investment, mobilizing private
capital in local and international financial markets, and providing advisory and
risk mitigation services to businesses and governments. IFC`s vision is that
people should have the opportunity to escape poverty and improve their lives. In
FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion
through syndications and structured finance for 299 investments in 69 developing
countries. IFC also provided advisory services in 97 countries. For more
information, visit www.ifc.org.
For more information:
IFC
In Johannesburg
Houtan Bassiri
(011) 731 3179
hbassiri@ifc.org
Omnia
Brunswick (011) 502 7406
Carol Roos 082 490 4182
Refilwe Mogale
BRUNSWICK GROUP LLP
23 Fricker Road Illovo Boulevard
Johannesburg South Africa
Telephone +27 11 502 7300 (sw) ext 417
Direct Telephone +27 11 502 7417
Fax +27 11 268 5747
Mobile +27 73 607 5444
rmogale@brunswick.co.za
www.brunswickgroup.com
Date: 17/03/2008 16:31:13 Produced by the JSE SENS Department.
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