French producer of carbon credits (CO₂ emissions credits) arising from renewable energy Velcan Energy has announced that it has started up its first biogas industrial installations in India. These plants—known as methane biogas plants—produce methane from cattle waste matter and began operations on January 7.

In so doing, Velcan Energy is the first French company to win approval for a project developed in India, in the framework of the Clean Development Mechanism (CDM - Kyoto Protocol). The project consists of the construction and installation of 5,500 methane biogas plants (digesters) of cattle waste in the State of Karnataka (south-western India). These will units produce methane for domestic use (heating and cooking).

Over the whole year, the production of carbon credits will be 19,500 tonnes in equivalent CO₂ emissions. The carbon credits produced here will be resold, as foreseen in the Kyoto Protocol since February 2005, to states and industrial concerns that have to react to constraints in terms of a reduction in greenhouse gas (GHG) emissions.

Velcan Energy is established in India through its subsidiary Velcan Energy India Pdt Ltd and in Brazil through its subsidiary Velcan Desenvolvimento Energetico do Brasil LTDA.