The Tokyo Electric Power Company, Incorporated (TEPCO) has concluded
a Certified Emission Reductions Purchase Agreements with the Chilean
integrated forest product company, Arauco (Note 1), today. Accordingly,
TEPCO purchases Certified Emission Reductions generated by the two
biomass power generation CDM (Note 2) projects that Arauco has been
carrying out.
Arauco has built two power plants, each of which generates 30MW using
woody biomass (sawdust, bark, mill ends, etc.) as fuel in each of their
pulp/saw mills in the Nueva Aldea Industrial Complex and the Trupan
Industrial Complex in the 8th Region of Chile, in order to supply
electricity to the local electric system Central Interconnected System
(Sistema Interconectado Central [SIC] (Note 3)) as well as supplying
electricity and heat to those two pulp/saw mills.
The effective use of woody biomass, which was disposed of unused,
can reduce methane gas (Note 4) generation caused by decay or open-air
burning. In addition, the biomass power generation can provide all
the electricity consumed for the two mills and part of the electricity
required for the local electric system, as well as reducing fossil
fuel consumption. Consequently, the two projects will be expected to
reduce greenhouse gas emissions of approximately 4.4 million tons
(in term of carbon dioxide) for the period from 2003 through 2025.
TEPCO purchases approximately 480,000 tons of CERs that the UN´s CDM
Executive Board has issued for the two projects. For more information,
see the attached sheets.
TEPCO will take the necessary steps required for the generation of CERs,
after approval by the Japanese government of this as a CDM project is
granted.
Taking measures to prevent global warming is one of TEPCO´s most
important management issues. Therefore, TEPCO will launch committed
efforts to combat global warming, both at home and abroad, by implementing
various measures to improve the efficiency in supplying and using
electricity in Japan and acquiring emission reductions credits via
active cooperation in overseas projects.
(Note 1) Arauco
Company Name: Celulosa Arauco y Constitucion S.A.
Company Location: Santiago, Chile
President: Jose Tomas Guzman
Establishment: 1979
Capital: Approx. 4,900 million U.S. dollars
Business Line: Manufacture, etc. of wood products, including pulp
and plywood
(Note 2) Clean Development Mechanism (CDM)
A system under which developed nations and economies in transition
participate in projects in developing countries to reduce greenhouse
gas emissions (or increase carbon sequestration), and acquire credits
for emission 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 3) Central Interconnected System (Sistema Interconectado Central [SIC])
The electric power system which supplies electricity to the area from
the 3rd to the 10th Region of Chile, including the capital Santiago
(Note 4) Methane Gas
Because methane gas is 21 times more potent a greenhouse gas than carbon
dioxide, greenhouse gases can be reduced by controlling methane gas
generation.
Appendix
Outline of Chilean Biomass Power Generation CDM Projects
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