Press Release Back Number(2007)

Chubu Electric to Purchase CO2 Credits, including those from CDM Project in China

March 1, 2007
Chubu Electric Power Co., Inc.

Chubu Electric has decided to purchase CO2 emissions credits from new sources, including CDM projects in China using the Kyoto Mechanisms.

Chubu Electric will continue the fight against global warming by working with CO2 reduction projects and taking other measures.


1. Landfill methane recovery and power generation project in Jiangsu Province, People's Republic of China

Chubu Electric has signed an agreement to purchase CO2 emissions credits from a project run by Wuxi Tianshun Environmental Technology Co., Ltd. to capture and generate electricity from methane gas arising from a waste disposal site in Wuxi City, Jiangsu Province, China. (Methane has 21 times the greenhouse warming potential of CO2.)


< Partner in agreement >

Toyota Tsusho Corporation


< Amount of purchase planned >

About 580,000 tons of CO2


< Timeframe of purchase >

2007 - 2012


2. Wind energy project in Gansu Province, People's Republic of China

Chubu Electric has signed an agreement to purchase CO2 emissions credits from a wind energy project established by Gansu Datang Yumen Wind Power Co., Ltd. of Gansu Province, China.


< Partners in agreement >

Gansu Datang Yumen Wind Power Co., Ltd.

Caspervandertak Consulting (a Dutch consulting company)

Gansu Tonghe Investment Project Consulting Co., Ltd. (a Chinese consulting company)


< Amount of purchase planned >

About 500,000 tons of CO2


< Timeframe of purchase >

2007 - 2012


3. Purchase from EcoSecurities Group P.L.C.

Chubu Electric has signed a CO2 emissions credit agreement with EcoSecurities Group P.L.C.


< Partners in agreement >

EcoSecurities Group P.L.C. (an Irish consulting firm)


< Amount of purchase planned >

Up to about two million tons of CO2


< Timeframe of purchase >

2008 - 2012



< Appendix 1 >

Chubu Electric initiatives using the Kyoto Mechanisms


Project Overview
World Bank Carbon Funds
(PCF)
  • • A fund established in 2000 to play a pioneering role in the design of Kyoto Mechanism systems.
  • • The fund purchases CO2 credits and allots them to investors.
  • • Fund size: $180 million (Chubu Electric's investment: $10 million).
  • • Agreed to purchase CO2 credits from 22 projects in 17 nations.
  • • Investors include Japan Bank for International Cooperation, eight Japanese companies, and European governments and companies.
Japan GHG Reduction Fund
(JGRF)
  • • Asia's first greenhouse gas reduction fund, established in 2004.
  • • The fund purchases CO2 credits and allots them to investors.
  • • Fund size: $141.5 million (Chubu Electric's investment: $10 million).
  • • Investors include Japan Bank for International Cooperation, Development Bank of Japan and 31 Japanese companies.
Asian environmental funds
  • • Joined the Global/Asia Clean Energy Services Fund, which invests in multiple small-scale initiatives, especially ESCO projects, in FY2003.
  • • Have invested in small-scale hydropower in India and China, biomass cogeneration in Thailand, and so on.
Rice chaff power generation project in Thailand
(A.T. Biopower Co. Ltd.)
  • • Joined project in FY2003 to develop several small-scale (20,000 kW) power plants using rice chaff as fuel in the grain belt of north central Thailand.
  • • First location (Pichit Province) started operations in December 2005.
  • • Currently preparing the application for registration with the UN as a CDM project.
Malaysian project to generate power from oil palm empty fruit bunch biomass
  • • In 2006, joined a project to develop biomass power plants (10,000 kW each) using oil palm empty fruit bunches as fuel in two locations in the state of Sabah, on Malaysia's Borneo Island.
  • • CO2 emissions reduction credits from the power plants in these two locations are expected to reach about two million tons by the year 2012.
Purchasing of CO2 emissions credits from Chinese CDM projects
  • • Agreed to purchase about two million tons of CO2 emissions credits from a project that collects and breaks up the greenhouse gas HFC23 (trifluoromethane) emitted from an HCFC plant in Zhejiang Province, China.
  • • Agreed to purchase about 400,000 tons of CO2 emissions credits from a wind energy project in Ningxia Hui Autonomous Region.
  • • Agreed to purchase approximately 600,000 tons of CO2 emissions credits from a waste methane recovery and power generation project in Jiangsu Province (Nanjing City), China.
  • • Signed a joint purchase agreement with transfer provisions with Japan Carbon Finance, Ltd. for approximately 2 million tons (maximum) of CO2 emissions credits.

< Reference >

Clean Development Mechanism (CDM)
A system under which industrialized nations donate funds or technology to greenhouse gas reduction projects in industrializing nations and count part of the resulting reductions as their own.



< Attachment 2 >

China CDM project locator