Austrian Government pays carbon tax to NZ town

The Palmerston North City Council has received $400,000 from the Austrian Government as an advanced payment for carbon credits.

The deal comes about under the Kyoto Protocol, which allows countries to work together to reduce global emissions.

The $400,000 is part of an estimated $1.2 million agreement.

Sixty-five per cent of the $1.2 million will go toward a council "cogeneration plant". This will capture methane gas from the Awapuni Landfill and burn it, creating electricity and heat to power the Totara Road Wastewater Treatment Plant.

The large volume of low-grade heat generated by the plant is also sufficient to heat such facilities as swimming pools, and the council is looking at ways it could be used.

The other 35 per cent is earmarked for waste minimisation projects.

Water and waste services manager Chris Pepper said the plant will be commissioned by the end of June.

- nzpa