PowerSeraya to apply for carbon credits, trading

23 August 2007 11:41  [Source: ICIS news]

SINGAPORE (ICIS news)--PowerSeraya plans to apply for carbon credits and eventually venture into carbon trading as it prepares to build a new thermal-efficient co-generation plant, a senior company official said on Thursday.

 

One of the city-state’s top electricity generators, PowerSeraya plans to build an 800MW natural gas-fired co-generation combined cycle plant on Jurong Island that will produce power and steam simultaneously, the firm’s managing director Neil McGregor said.

 

With the plant, “our thermal efficiency will be improved with the conversion and the overall CO2 (carbon dioxide) plant emissions level will be reduced by a further 10% when the plant becomes operational,” he added.

 

Over the last 10 years, PowerSeraya has achieved an overall 30% reduction in carbon dioxide emissions levels, he said.

 

PowerSeraya has already notified Singapore’s National Environment Agency of its intent to submit an application for carbon credits under the UN Kyoto Protocol’s Clean Development Mechanism (CDM).

 

“These carbon credits will only be realised when the project is completed in 2009-2010 and the project is found to comply with the auditing requirements,” McGregor said.

 

“When the carbon credits are secured, PowerSeraya will then select the means of carbon trading based on the options that maximises returns for the company.”

 

The plant, costing Singapore dollar (S$) 800m ($522.9m), will be funded partly through a $450m loan from both local and international banks.

 

($1 = S$1.53)

By: Jeanne Lim
+65 6780 4359

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