OMN - Omnia - Omnia gains approval for Clean Development Mechanism Project
OMNIA HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1967/003680/06)
Share Code: OMN
("Omnia" or the "Group")
OMNIA GAINS APPROVAL FOR CLEAN DEVELOPMENT MECHANISM PROJECT
Omnia, the diversified, specialist chemical services provider with business
interests balanced across chemical, mining and agricultural markets today
announced the approval of its Clean Development Mechanism (CDM) project created
by the Kyoto Accord, to reduce greenhouse gas emissions.
On 16 August 2005 Omnia announced its endorsement of the Kyoto Protocol, and
intention to apply to become eligible for emission reduction projects under such
Protocol which came into effect on 16 February 2005. This is in line with the
Group`s commitment to sustainable development and its continual improvement in
Following technical scrutiny and validation by a number of South African and
international authorities, Omnia`s CDM project has been validated and certified
by the Executive Board of the Protocol. This places Omnia`s project as the
second largest to be registered in South Africa and the second largest of its
kind in Africa. Commissioning of the project will therefore commence in the
first half of the 2008 financial year and will allow Omnia Fertilizer, through
its Sasolburg plant, to generate approximately 500,000 Certified Emission
Reductions (CER) per annum.
CER`s are currently priced at approximately Euro14 per ton. Based on these price
levels Omnia could potentially earn approximately R60 million in revenue, per
annum from 2008 over the five year period of the accord. These units are traded
as commodities and price movements going forward are likely to depend on supply
and demand factors.
Most industrialised countries have committed to reductions in their collective
greenhouse gas emissions by 2008 to 2012 through joining the Kyoto Protocol. The
penalty to these countries for not complying and reducing gas emissions by 5%
from 1990 base levels is Euro40 a ton of carbon dioxide emitted in 2008. This
rises to Euro100 per ton thereafter.
10 May 2007
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Date: 10/05/2007 11:45:01 Supplied by www.sharenet.co.za
Produced by the JSE SENS Department .