The project involves switching from coal to natural gas at the rotary kiln of a clinker manufacturing plant. The Matola Gas Company, a joint venture of the Mozambican Government and Gigajoule International will be responsible for the transmission of gas to Cimentos de Mocambique. The price of gas offered to Cimentos de Mocambique by MGC in their 2007 contract, assumes carbon revenue from CDMs. Application for registration as a CDM was made in 2009, however according the UNFCCC site, the project was rejected. The fuel switch project was developed by CDM during a period when the company was under investigation by the state and environmental justice groups for emitting high levels of air pollution. Furthermore, this was a period of skyrocketing coal prices. Between 2007 and 2009 coal rose almost 30% annually. |