19.05.2010 | News
The NEFCO Carbon Fund (NeCF) has signed two agreements to procure emission reductions from two small hydro power projects in Sichuan province, China.
The renewable energy projects will be implemented under the Kyoto Protocol’s Clean Development Mechanism (CDM).
Kimmo Siira, Senior Representative of NEFCO’s Carbon Finance and Funds Unit, based in Singapore visited the sites in South-Western China earlier this year.
“The power stations will have an installed capacity of 20MW and 16MW. The two separate projects will displace power currently drawn from the Sichuan Provincial Power Grid, a sub-grid of the Central Power Grid which is currently dominated by fossil fuel sources” he stated.
The plants will generate 85 and 61 gigawatthours of clean energy, respectively per year leading to estimated combined annual emission reductions of approximately 226,000 tonnes of CO2 equivalents in the period up to end of 2012, and significantly greater savings over the project lifetimes. The combined capital investment is approximately EUR 25 million.
“We are pleased to support these renewable energy projects through the provision of carbon financing. In addition, the NeCF is currently evaluating a number of deals in the area of renewable energy in India (small scale wind power), three South East Asian countries (all small hydro, not exceeding 20 megawatts) and Mexico (large scale wind). All the projects have a significant post 2012 element, said Ash Sharma, Head of the Carbon Finance and Funds Unit at NEFCO.
The NEFCO Carbon Fund was launched in March 2008, and started operations in April 2008. To date the fund has 7 signed ERPA contracts, plus a further 9 projects at the Letter of Intent stage. Its first project, the Xiangshui 201MW wind power project in Jiangsu province China, was registered in March 2010.
The NeCF currently has access to financial resources of €100.6 million. The purpose of the facility is to procure high quality carbon credits for compliance purposes under the EU Emission Trading Scheme and the Kyoto Protocol.
Footnote: ERPA stands for Emission Reduction Purchase Agreement