18. Net revenues from contracts with customers

in thousand EUR   2018   2017
Revenues from sales of timber and roundwood   58 302   56 094
Sales deductions   –11 953   –11 490
Revenue from sales of certified emission reductions (CERs)     393
Net revenues   46 349   44 997

The renewable-power-generation plant BK Energia – an associate of Precious Woods – generates CERs (Certified Emission Reductions) in the Amazon region of Brazil. It complies with all the necessary conditions established in the Kyoto Protocol and by the UNFCCC (United Nations Framework Convention on Climate Change). Carbon emissions are avoided by substituting diesel fuel with wood waste from the sawmill and from forest operations for generation of electricity. These CERs are purchased by Precious Woods Holding. The produced CERs are recognized as inventory and valued at the lower of cost or net realizable value as long as the certification is not yet achieved, and sold afterwards.

In 2017, 51 596 tons of CO2 equivalents were produced. Their verification is still outstanding. In 2018, 54 664 tons of CO2 equivalents were produced and their verification is planned for autumn 2019.