Press Release (Jun 29,2006)
Participation in Biomass CDM Project in Honduras-- Purchase of carbon credits generated by a CDM project that uses sugar cane bagasse as fuel
Tokyo Electric Power Company (TEPCO) today signed a purchase agreement
with [Note 1], a leading sugar manufacturer
in Honduras, to purchase 300,000 tons (CO2 equivalent) of carbon credits
to be generated in the eight-year period between 2005 and 2012 by a biomass
CDM[Note 2] project at the company´s Santa Matilde sugar factory.
The Santa Matilde sugar factory has been operating co-generation facilities
using sugar cane bagasse, a residue of sugar manufacturing processes, as fuel
for the boiler and as energy and heat sources to fulfill the needs in the
premises of the factory.
Under this project, the boiler at the factory will be upgraded to a highly
efficient and high pressure boilers. Furthermore, new generators will be
additionally installed by stages and surplus electricity generated by the
expanded facilities will be sold to Empresa Nacional De Energia Electrica
(ENEE). Biomass power generation at this factory will replace some of
the energy generated by thermal power generation, which is expected to
restrain the consumption of fossil fuels and reduce CO2 emissions by about
360,000 tons over eight years.
Under the terms of the agreement, TEPCO retains the priority to negotiate
the purchase of any carbon credits generated in excess of the 300,000 tons
concluded under this sales agreement.
The details are as shown in the Reference.
This project has already been approved as a CDM project by the Honduran
government. In the future, TEPCO will complete the necessary procedures
for carbon credit creation including the Japanese government´s approval
for the CDM project.
TEPCO´s management has addressed measures to control global warming as
one of its top priority tasks. TEPCO will continue to launch committed
efforts to cope with global warming at home and abroad by implementing
various measures to improve the efficiency in supplying and using electricity
in Japan and acquiring carbon credits through active cooperation in overseas
projects.
[Note 1]
Company Name:
Company Location: Villanueva City in northern Honduras
President: Mr. Sergio Salinas
Established: 1938
Sales: Approx. 33 million US dollars
Business Line: Sugar manufacturing
[Note 2] Clean Development Mechanism (CDM)
A system under which developed nations and economies in transition
take part in projects in developing countries to reduce greenhouse
gas emissions (or increase carbon sequestration), and acquire credits
for emissions reduction amounts. Along with JI (Joint Implementation)
and ET (Emissions Trading), this is one of the initiatives of the Kyoto
Mechanism.
The Kyoto Mechanism is an economic mechanism which allows for more
flexibility in greenhouse gas reductions as set forth in the Kyoto
Protocol in 1997.
[Note 1], a leading sugar manufacturer
in Honduras, to purchase 300,000 tons (CO2 equivalent) of carbon credits
to be generated in the eight-year period between 2005 and 2012 by a biomass
CDM[Note 2] project at the company´s Santa Matilde sugar factory.
The Santa Matilde sugar factory has been operating co-generation facilities
using sugar cane bagasse, a residue of sugar manufacturing processes, as fuel
for the boiler and as energy and heat sources to fulfill the needs in the
premises of the factory.
Under this project, the boiler at the factory will be upgraded to a highly
efficient and high pressure boilers. Furthermore, new generators will be
additionally installed by stages and surplus electricity generated by the
expanded facilities will be sold to Empresa Nacional De Energia Electrica
(ENEE). Biomass power generation at this factory will replace some of
the energy generated by thermal power generation, which is expected to
restrain the consumption of fossil fuels and reduce CO2 emissions by about
360,000 tons over eight years.
Under the terms of the agreement, TEPCO retains the priority to negotiate
the purchase of any carbon credits generated in excess of the 300,000 tons
concluded under this sales agreement.
The details are as shown in the Reference.
This project has already been approved as a CDM project by the Honduran
government. In the future, TEPCO will complete the necessary procedures
for carbon credit creation including the Japanese government´s approval
for the CDM project.
TEPCO´s management has addressed measures to control global warming as
one of its top priority tasks. TEPCO will continue to launch committed
efforts to cope with global warming at home and abroad by implementing
various measures to improve the efficiency in supplying and using electricity
in Japan and acquiring carbon credits through active cooperation in overseas
projects.
[Note 1] 
