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A R130 million venture to burn wood waste to generate electricity will generate 8 megawatts for the Eden district municipality, which includes Plettenberg Bay and Knysna, from June next year.
The Central Energy Fund (CEF), which is funding the project, and empowerment company Carbon and Environmental Options have set up a partnership, CCE Energy Solution, to drive the project.
Construction would begin in July.
Busisiwe Nxumalo, a marketing and business analyst at the Energy Development Corporation, a division of the CEF, said the project would earn revenue from sales of electricity to the municipality.
Revenue might also be generated from certified emission reductions. The Eden project has been submitted to the local designated national authority for classification as a clean development mechanism.
The process to secure registered certified emission reductions, which each trade for about e9 (R86), would take about six months. It was not disclosed how many reductions this project would have. The project could be classified as a clean development mechanism because it would reduce carbon emissions.
The more than 50 000 tons of wood waste from saw mills that would be burnt each year to generate this electricity is currently being sent to landfills, and is therefore contributing to methane gas emissions.
The wood waste would be burnt in an incinerator. To reduce ash emissions, a filter system would be used, said Christos Eleftheriades, a director of CCE Energy Solutions.
He said the electricity generated would be sufficient to supply about 800 houses with electricity.
Additional information: More info on CEF web site
News date: 30/05/2007