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CEZ to Buy Emission Credits From Hunan Liang Renewable Energy

Posted on: Tuesday, 19 August 2008, 09:01 CDT

Czech power generation company CEZ has signed an agreement with the Hunan Liang Renewable Energy Power Company for the purchase of emission reductions from a planned biomass power plant in China.

The planned 15MW biomass power plant project in the central Chinese province of Hunan is expected to save at least 300,000 tons of CO2 by 2012. Emission reductions are sold under the Kyoto Protocol's Clean Development Mechanism (CDM).

CEZ said that creating a significant portfolio of emission certificates from CO2 emission certificates abroad is one of its strategic measures in response to the EU's energy-climatic package.

The Czech power company added that it is also focused on developing renewable resources and extending its production portfolio by gas power plants and an additional nuclear power plant, within the context of CO2 emission reduction.

CEZ Power Company has already concluded five contracts and is finalizing other such contracts in China. One of them is for the purchase of emission credits from two 15MW biomass power plants. Future emission credits from the operation of two wind farms owned by Hecic, each rated at 50MW, will be utilized equally by energy major Royal Dutch Shell and CEZ.

CEZ has entered into contracts to buy nearly 13 million emission credits to be delivered between 2008 and 2012. About 21 million units, which is roughly 10% of the total amount of its emissions, can be imported by 2012. Between 60% and 70% of the emission credits will come from projects in China, the rest from other Asian countries, South America, and central and eastern European countries.

Source: Datamonitor

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