Gresik to earn from carbon credits

Gresik to earn from carbon credits
Published: 23 March 2009

Indonesia’s largest cement maker PT Semen Gresik  hopes to earn around IDR30bn (US$2.55m) annually from carbon credit contracts with Sindicatum Carbon Capital (SCC) of London.

Under the agreement signed last weekend with the climate change and sustainable resource company, Semen Gresik is to utilize biomass and industrial waste as alternative energy to replace coal for fuel.

In return, the state cement producer will earn the certified emission reduction (CERs), commonly known as carbon credits on the basis of the consequent decrease in its green house gas emissions.

Semen Gresik President Dwi Soetjipto said the company will also gain by saving up to IDR30bn in fuel bill by using the alternative fuel.

The company hopes to reduce carbon emissions by as much as 60,000t in the first year of the project implementation to be increased to 400,000t in 2012, the newspaper The Jakarta Post said.