According to reports, Karan Biofuel Limited, a joint venture company of Karan Ventures Private Limited and Rajkot-based Ronak Agrotech Engineering Pvt. Ltd. has tied up with Standard Bank of Kenya for carbon credit sale. Signed for next 10 years, the agreement will allow Karan Biofuel to sell 313,000 Kenyan certified emission reductions (CER) to the bank. Based out of Kisumu city in Kenya, Karan Biofuel produces and supplies biomass briquettes in Kenya.
Recently the company got registered under Clean Development Mechanism (CDM) of United Nations Framework on Climate Change (UNFCCC). “After getting approval of United Nations officials, we had begun the process of selling carbon credits. For this, we have join hands with Standard Bank of Kenya wherein we will sell 313,000 Kenyan CER to the bank for the 10 years,” said Kamlesh Lakhani, executive director of the company. In return, the company is hoping to earn about Rs 10 crore. Moreover the tie up will support Karan Biofuel in its international expansion projects wherein the Kenyan bank will help the company to manage funds. Carbon credits will be generated through the implementation of bio-mass briquettes plant in Africa.