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Los Angeles Times, 11Feb2006, Business section

Capturing Pig Power
The Kyoto pact puts nearly 600 projects in the developing world. One 
example: energy fueled by hog waste.


By Marla Dickerson, Times Staff Writer


Georgina Cano had long resigned herself to the stench from the hog 
farm just up the road from her rural home. 

Stagnant lagoons of waste from thousands of squealing pigs fouled 
the air for miles in this flat stretch of central Mexico. Cano's 
three children complained and occasionally fell ill, but she figured 
it came with living in a region that produces much of the nation's 
pork.

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Last year, the smell diminished even as the hog production continued.

"Now I hardly notice it," said Cano, 37, gesturing toward the low 
sheds about half a mile from her home. "It's healthier for the 
children."

Cano's family and neighbors can credit a little known Irish company 
for helping them to breathe easier these days.

Thanks to the Kyoto Protocol, the 1997 international treaty on 
climate change, efforts by industrialized countries to fight global 
warming are popping up in far-flung places like Villagran, a hamlet 
about 40 miles southwest of the city of Queretero.

Nearly 600 Kyoto-related projects are in the pipeline in the 
developing world, according to a recent tally by a Danish climate 
research center funded in part by the United Nations. About 40% of 
them are in Latin America, including hydroelectric power plants in 
Honduras and wind-powered turbines in Chile.

The accord, which the United States has not ratified, calls for 
reducing overall greenhouse-gas emissions by major industrialized 
countries in the period 2008-2012 to amounts at least 5% below 1990 
levels. 

More than 150 nations have signed and ratified the treaty, but the 
burden to reduce emissions falls on about three dozen industrialized 
countries responsible for most of the climate mess. One way for 
industrialized countries to meet their reduction targets is to 
support environmental projects in developing regions. Dubbed the 
Clean Development Mechanism, it was designed to lower compliance 
costs for rich nations while funneling much-needed development to 
poor ones. 

The climate agreement set up a trading system — administered by the 
U.N. — in which the rights to spew pollutants can be bought and sold 
like stocks. That has spurred interest from entrepreneurs who are 
funneling money into environmentally friendly projects in exchange 
for anti-pollution credits.

Each credit represents the equivalent of a ton of carbon dioxide 
kept out of the atmosphere. Although registries for these and other 
types of emission credits still are being set up by the U.N., buyers 
and sellers already are making deals.

AgCert International, the Dublin, Ireland-based company that 
installed clean-up equipment on the hog farm near Cano's home, has 
made commitments to provide nearly $90 million of emission credits 
to European utility companies and petroleum producers to help them 
meet their reduction goals.

Chief Executive Gregory Haskell, an American and serial entrepreneur 
with no previous agriculture experience, calculated that more that 1 
billion credits would be required to satisfy Kyoto obligations. The 
opportunity to fill some of that demand led him to found AgCert in 
2002. 

"We looked for what the need was in the marketplace," Haskell said.

In Latin America, AgCert has installed pollution-control equipment 
on about 230 hog and dairy farms in Mexico and Brazil, according to 
company officials. AgCert hopes to have more than 1,000 facilities 
operating by the end of 2007 in those nations as well as in Chile 
and Argentina.

Haskell said about 7% of the world's production of greenhouse gases 
could be attributed to large animal feeding operations, which 
produce several harmful byproducts, including methane. 

AgCert replaces open waste lagoons with pits that are lined and 
covered with a plastic that traps gases emitted by decomposing 
waste. The gases are piped out of the pit and burned off in a 
combustion unit that looks like a giant torch. The gases also can be 
used to fuel generators to provide electricity for the farm, similar 
to the manure-powered city of Bartertown in "Mad Max Beyond 
Thunderdome," the 1985 film starring Mel Gibson. 

In addition to providing renewable energy and reducing emissions by 
around 95%, the system keeps animal waste from leaching into the 
water table while greatly reducing the foul smell. The process also 
yields organic fertilizer that farmers can sell or use on their 
crops.

AgCert pays for the construction and equipment, which averages about 
$150,000 a farm, and takes care of all maintenance for 10 years.

The company also is working out a formula to give farmers a share of 
the revenue from sale of the emission credits, said Hernan Mateus, 
the company's general manager in Mexico. He said the projects gave 
jobs to local construction firms and made neighbors living downwind 
very happy.

"Everybody wins," Mateus said.

Large swine operations such as the family-owned Grupo Soles, which 
produces about 260,000 hogs a year in northern and central Mexico, 
are jumping at the opportunity to upgrade their slurry systems on 
someone else's dime. Like their U.S. counterparts, Mexican farmers 
have found themselves subject to more stringent government rules on 
air and water quality. That has made managing manure one of the most 
costly and time-consuming aspects of livestock farming.

"It's like a tax," said Jose Buenrostro Pablos, general manager for 
the group's operations in central Mexico. "Now thanks to the Kyoto 
Protocol, we have this opportunity to solve the contamination 
problems."

(more at link)

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