Matéria Bloomberg NE / London

By Stephan Nielsen

Limpebras Engenharia Ambiental Ltda, a Brazilian waste management company, plans to build a methane-capture and power-generation plant in the state of Minas Gerais to produce carbon credits.

The plant will be located between two landfills in Uberlandia, where Limpebras is based. Eduardo Santos, the company’s manager of projects, said in an interview today that the city generates 500 tons of trash a day. The project is expected to cost as much as 15 million reais ($8.8 million).

One of the landfills opened in 1995 and was closed this year. The other, about 300 meters (984 feet) away, began accepting waste in October and will remain in operation until 2028, he said.

Gaseous emissions from the project will initially be flared off until a 2-megawatt power plant is completed in 2012, Santos said. A second, 1-megawatt plant is expected to be added in 2017. About 5.5 million carbon credits will be produced from 2012 to 2028.

He said the national development bank Banco Nacional de Desenvolvimento Economico e Social will likely provide financing.

Limpebras expects to receive approval for the project next year from the Clean Development Mechanism’s executive board, Santos was quoted as telling the Sao Paulo-based news service Jornal da Energia in an article yesterday.

Bloomberg New Energy