French energy giant to buy carbon credits from Chinese biomass projects
President Jacques Chirac is visiting China, joined by a host of french top executives. Amongst them are delegates of Electricité de France (EDF), one of the world's largest energy firms. The trading arm of the Paris-based group yesterday signed an initial agreement with China's leading electricity distributor to buy 1.5 million tons of annual greenhouse emission credits under the Kyoto Protocol's carbon-trading scheme, known as the Clean Development Mechanism.
EDF Trading signed a letter of intent with China National Bio Energy Co Ltd [*.pdf], the renewable energy subsidiary of the giant State Grid Corporation of China, to purchase carbon credits from its three biomass power generation projects located in China.
The accord was based on the clean development mechanism (CDM) system under the Kyoto Protocol's climate improvement initiatives. The international Kyoto Protocol allows developed countries to achieve greenhouse gas emission targets by funding GHG reduction efforts in developing nations. The mechanism has spawned a global carbon market of sorts, with a boom in China because of its vast bioenergy potential (earlier post).
Located in East China's Shandong Province and Northeast China's Heilongjiang and Jilin provinces, the three CDM projects are expected to come on stream in the first half of next year, and could cut carbon dioxide emissions by as much as 1.5 million tons a year by 2010, said Lin Mingshan, general manager of Beijing-based China National Bio Energy.
"These are the projects that will benefit both sides. China is fulfilling its duty to improve the nation's environmental conditions by massively investing in such projects," Lin said. Established in July last year, China National Bio is currently building as many as 14 biomass generation plants across the nation, boasting a total installed capacity of 350 megawatts (MW). In the next four years, China National Bio plans to expand its biomass-fuelled capacity to more than 2,000 MW, accounting for 55% the nation's biomass power generation:
bioenergy :: biofuels :: energy :: sustainability :: electricity :: climate change :: CDM :: France :: China :: biomass ::
"By then, we will be able to cut greenhouse gas emissions by as much as 12 million tons per year," the company said in a statement, without disclosing the investment involved.
Lin told China Daily that he expected more such CDM co-operation deals to be hammered out in the future with EDF or other potential buyers. The carbon credit market in China is heating up with the central government's recent incentives prompting an increasing number of energy firms to heavily invest in renewable energy projects.
"The potential of the CDM market in China is huge," Wang Qi, secretary-general of Beijing-based China CDM Federation, told China Daily in an earlier interview.
"There's great potential for profitability. An increasing number of companies, big and small, domestic and foreign, are flocking into China's carbon market," said Jiang Yun, programme manager of the China Energy Conservation Association.
EDF Trading was set up five years ago and became a wholly owned subsidiary of EDF Group in mid-2003.
Now one of the leaders in European wholesale trading of electricity, gas and coal, EDF Trading optimises EDF's distribution and generation network through buying and selling both electricity and primary fuels, and manages EDF's diverse commodity risks on an integrated basis. European energy giant EDF operates coal-fired power plants with an installed capacity of 3,720 MW in China.
More information:
China Daily: Energy giant signs carbon credits deal - Oct. 26, 2006
Xinhua: Energy giant EDF signs carbon credits deal with China - Oct. 26, 2006
EDF Trading signed a letter of intent with China National Bio Energy Co Ltd [*.pdf], the renewable energy subsidiary of the giant State Grid Corporation of China, to purchase carbon credits from its three biomass power generation projects located in China.
The accord was based on the clean development mechanism (CDM) system under the Kyoto Protocol's climate improvement initiatives. The international Kyoto Protocol allows developed countries to achieve greenhouse gas emission targets by funding GHG reduction efforts in developing nations. The mechanism has spawned a global carbon market of sorts, with a boom in China because of its vast bioenergy potential (earlier post).
Located in East China's Shandong Province and Northeast China's Heilongjiang and Jilin provinces, the three CDM projects are expected to come on stream in the first half of next year, and could cut carbon dioxide emissions by as much as 1.5 million tons a year by 2010, said Lin Mingshan, general manager of Beijing-based China National Bio Energy.
"These are the projects that will benefit both sides. China is fulfilling its duty to improve the nation's environmental conditions by massively investing in such projects," Lin said. Established in July last year, China National Bio is currently building as many as 14 biomass generation plants across the nation, boasting a total installed capacity of 350 megawatts (MW). In the next four years, China National Bio plans to expand its biomass-fuelled capacity to more than 2,000 MW, accounting for 55% the nation's biomass power generation:
bioenergy :: biofuels :: energy :: sustainability :: electricity :: climate change :: CDM :: France :: China :: biomass ::
"By then, we will be able to cut greenhouse gas emissions by as much as 12 million tons per year," the company said in a statement, without disclosing the investment involved.
Lin told China Daily that he expected more such CDM co-operation deals to be hammered out in the future with EDF or other potential buyers. The carbon credit market in China is heating up with the central government's recent incentives prompting an increasing number of energy firms to heavily invest in renewable energy projects.
"The potential of the CDM market in China is huge," Wang Qi, secretary-general of Beijing-based China CDM Federation, told China Daily in an earlier interview.
"There's great potential for profitability. An increasing number of companies, big and small, domestic and foreign, are flocking into China's carbon market," said Jiang Yun, programme manager of the China Energy Conservation Association.
EDF Trading was set up five years ago and became a wholly owned subsidiary of EDF Group in mid-2003.
Now one of the leaders in European wholesale trading of electricity, gas and coal, EDF Trading optimises EDF's distribution and generation network through buying and selling both electricity and primary fuels, and manages EDF's diverse commodity risks on an integrated basis. European energy giant EDF operates coal-fired power plants with an installed capacity of 3,720 MW in China.
More information:
China Daily: Energy giant signs carbon credits deal - Oct. 26, 2006
Xinhua: Energy giant EDF signs carbon credits deal with China - Oct. 26, 2006
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