Brazil cement manufacturer Votorantim Cimentos Ltda. has applied to the United Nations’ Clean Development Mechanism (CDM) agency for approval to sell carbon emissions credits from the 160-MW Pedra do Cavalo hydroelectric project on Brazil’s Paraguacu River.
Pedra do Cavalo went on line in 2004 at an existing dam and reservoir built in 1985 in Bahia State. Utilizing the Empresa Bahiana de Agua e Saneamento water supply dam allowed the generation of carbon-free renewable energy with no additional environmental effects.
Votorantim’s application to the Executive Board of the U.N. Framework Convention on Climate Change said the cement company is a signatory to the global Cement Sustainability Initiative that calls for cement firms to improve energy efficiency, develop carbon dioxide capture techniques, and take advantage of emissions trading mechanisms. Votorantim submitted the application with assistance of Ecoinvest Carbon Brasil.
Pedra do Cavalo is expected to displace annually 59,485 tons of carbon dioxide that otherwise would be produced by fossil-fired generation. Income from the sale of carbon emission reduction certificates is to improve the project’s internal rate of return, which is below the reference rate.