Cleanmax Enviro Energy Solutions (Cleanmax Solar), a renewable energy company in which Brookfield Renewable holds a majority stake, is getting into generation of carbon credits through three verticals – cookstove distribution, agro forestry and mangrove plantation. 

Cleanmax has been one of the larger players in the Indian renewable energy space for over a decade; today it has 1.7 GW of operating capacity and another 3.5 GW under construction. 

Sources in the know have told businessline that the company would soon get into cookstove distribution. Under this model, industry-manufactured cookstoves that save fuelwood are distributed free of cost to people, typically villagers, who are currently using stoves that are not energy efficient. The savings in terms of fuel and hence in carbon dioxide emissions is calculated and verified by a third party, and the cookstove distributor – Cleanmax in this case – will get carbon credits that can be sold in the market. 

It is learnt that Cleanmax expects to get $ 9 - 10 a ton of CO2 saved; it expects to start earning carbon credits from May 2025. The stoves would be contract-manufactured by a third party. Cleanmax has identified 50,000 households that would be given the cookstoves. 

Agroforestry 

While cookstove distribution will get off the ground perhaps in a month or two, Cleanmax has plans for agroforestry and mangrove plantation, too. The company has identified three projects across four States, over an area of 20,000 hectares, where would plant 16.5 million trees. The trees, which will be geo-tagged, will take 4-5 years to grow. The company calculates that these trees would be able to sequester 40 tons of CO2 per hectare per year, and expects to earn $19 - 25 per ton of CO2 sequestered. Alongside, the farmers who own the land will also see more income from fruits and timber from the trees. 

Later, Cleanmax would also get into mangrove plantations. Mangroves are believed to be great for sucking up carbon dioxide from the atmosphere for their own growth. 

Cleanmax, which plans an IPO next year, works with marquee customers such as Apple, Amazon, Intel, Meta, Cisco and Accenture, among others. Today, these companies either buy power from Cleanmax or buy the ‘green attributes’ of renewable energy. And now, they would also co-invest in projects for carbon credits and get the credits for themselves, or simply buy the carbon credits from Cleanmax. 

Related Topics