Omnia announced that the new nitric acid complex has been successfully registered as a Clean Development Mechanism ("CDM") project by the United Nations Framework Convention on Climate Change ("UNFCCC"). The methodology approved by UNFCCC and used in 2008 was not valid for nitric acid plants built post 2005 and a new methodology was approved by the CDM Executive Board in June 2011. To participate in the current CER market, projects had to be registered with the UNFCCC before 1 January 2013 and are estimated to take up to 18 months to complete.
Omnia successfully completed the registration of its second project in 10 months and is one of three companies in the world to obtain approval under the new methodology. The new nitric acid complex is designed to exacting world-class and "green" standards and should generate between 250 000 to 350 000 carbon credits annually, totalling approximately 650 000 to 730 000 CER's per year for the two nitric acid facilities combined. Omnia will prevent greenhouse gas emissions of approximately 500 000 tons of CO2 equivalent ("CO2e") per year from the new facility. Annual emission reductions from both projects is expected to be approximately 900 000 tons of CO2e and is set to increase to 1 150000 tons of CO2e at full capacity.
When the new plant is running at full capacity, waste steam from the production process piped through a turbine generates approximately 50% of the total electricity demand for the entire Sasolburg site, including both plants. This will substantially reduce power costs and the effect of steep electricity price increases, while further reducing the group's carbon footprint.