RWE steps up CDM drive with stake in offset specialist

The consolidation of the carbon offset market continued today with Germany energy giant RWE shelling out an undisclosed sum to acquire a 50 per cent stake in carbon emission reduction project consultancy Agrinergy PTE Ltd.

Agrinergy specialises in the UN-backed Clean Development Mechanism (CDM) offset scheme, providing support and consultancy services to developed world businesses seeking to acquire Certified Emission Reduction (CER) credits and emission reduction projects in developing economies seeking to join the CDM.

A spokeswoman for RWE said that under the terms of the deal Agrinergy's 20-strong team would work in partnership with RWE's own CDM-focused subsidiary RWE Power Climate Protection GmbH.

"RWE is already one of the big players in the CDM market – operating 100 projects worldwide – but now we will combine Agrinergy's expertise with our own expertise and financial backing to develop more projects," she said, adding that the partnership would help the company meet its target of generating 90 million CER credits through CDM-approved projects during the 2008 to 2012 period.

Agrinergy is expected to provide particular support for emission reduction projects attempting to navigate the CDM registration process and qualify for issuing CERs. "The CDM process is complex, but Agrinergy has developed a number of strong methodologies to help developers successfully register projects," explained the spokeswoman.

In related news, RWE's renewable energy subsidiary RWE Innogy announced plans to team up with German municipal utility Troisdorf to build a €30m (£25m) wood-fired combined heat and power plant.

RWE Innogy chief executive Professor Fritz Vahrenholt, said that the project was likely to act as a forerunner for similar projects being planned across the country. "RWE plans to significantly step up its co-operation with municipalities in the field of renewable heat and power generation," he said. " For us, the project here in Troisdorf is a promising stepping stone towards further biomass projects, which are to follow soon."