14/2/07 (The Edge Daily) -  Brite-Tech Bhd's associated company, Brite-Tech Ventures Sdn Bhd, (BTV) has entered into a letter of intent with the Danish Ministry for the proposed sale of Certified Emission Reductions (CERs).

The CERs will be generated via a project that will use a wastewater treatment system called AVC Palm Oil Mill Effluent Treatment System for an identified palm oil mill.

In a statement on Feb 14, Brite-Tech said the sale of CERs would be a new area of business undertaking for the company and it would announce in due course should the impact of it be material.

Brite-Tech expected BTV to enter into several other similar letters of intent with the Danish Ministry for the sale of CERs to be produced under similar projects in collaboration with other palm oil mills in the coming months.

It said BTV intended to develop the project under the Clean Development Mechanism (CDM) of the Kyoto Protocol and produce CERs in collaboration with the palm oil mill.

"The exact amount of CERs to be purchased by the Danish Ministry and the exact price shall be determined and negotiated after the successful completion of the validation and registration of the project," it said.

The Kyoto Protocol is an agreement made under the United Nations Framework Convention on Climate Change (UNFCCC), assigning mandatory targets for the reduction of greenhouse gas (GHG) emissions to signatory nations.

Under the Protocol, by 2008-2012, developed countries which have accepted GHG emission reduction obligations have to reduce their GHG emissions by an average of 5% below their 1999 levels.

Kyoto Protocol includes "flexible mechanisms" that allow the developed countries to meet their targets by purchasing carbon credits from elsewhere.

"Carbon credits are measured in units of CERs. Each CER is equivalent to one tonne of carbon dioxide reduction.

"These can be bought either from financial exchanges or in other countries under the Joint Implementation or from projects which reduce emissions in developing countries under the CDM," said Brite-Tech.

It said the CDM was an arrangement under the Kyoto Protocol allowing industrialised countries to invest in emission reducing projects in developing countries.

"The CDM is supervised by the CDM Executive Board and is under the guidance of the Conference of the Parties of the UNFCCC," it said.