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E.ON Expects First Carbon Credits From Russian Project in 2011
2010-10-20 11:50:58.606 GMT
By Ewa Krukowska
Oct. 20 (Bloomberg) -- Germany's biggest utility E.ON AG
may issue the first emissions-reduction credits from a Russian
joint implementation project in 2011, said Ivan Albino, carbon
portfolio manager at the company's climate and renewables unit.
So-called JI projects generate tradeable emissions-
reductions units that companies can use to comply with their
quotas in the European Union's carbon market, the world's
largest, and to meet national obligations to cut greenhouse
gases under the United Nations climate-protection Kyoto
Protocol. EU CO2 allowances for December 2010 traded at 15 euros
a ton as of 12:28 a.m. in London.
"The project should be up and running by the end of this
year and then we will be ready to start generating emission
reductions very soon," Albino said in an interview during a
Platts seminar in Brussels. "Then we'll need to follow the
issuance procedures, to have the verifier on the site."
The project will be at the Shaturskaya Thermal Power Plant
near Moscow, E.ON said. It assumes building an additional
electricity generation plant with an energy-efficient 400-
megawatt combined cycle gas turbine, which will save more than a
million metric tons of carbon by 2012.
The Shaturskaya project is the first to get be approved by
the United Nations under the so-called Track 2 procedure, where
the verification of emission reductions is supervised by the
Joint Implementation Supervisory Committee. Under Track 1, the
verification procedures and the issuance of emission-reduction
units are done by the host country.
E.ON said earlier this week it wants to register two more
projects in Russian power plants that will reduce CO2 emissions
by a combined 4.3 million tons by 2012.
The majority of Track 2 projects are being developed in
Russia, Ukraine and other central and eastern European
countries, according to the UN Framework Convention on Climate
Change. There are more than 200 Track 2 projects in the pipeline
and 190 Track 1 projects registered, accounting for potential
reductions of about 400 million tons of carbon dioxide
equivalent by the end of 2012, according to the UNFCCC.
For Related News and Information:
Emission market news NI ENVMARKET <GO>
Today's top energy stories ETOP <GO>
European power-markets home page EPWR <GO>
--Editors: Rob Verdonck, Randall Hackley
To contact the reporter on this story:
Ewa Krukowska in Brussels at +32-474-620-243 or
ekrukowska@bloomberg.net;
To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net
