Chile's first CDM project based on biomass avoids 500,000 tons of CO2 emissions
CantorCO2e Limited, a provider of financial services to the world’s environmental and energy markets, announced today their facilitation of a groundbreaking transaction involving the first biomass Clean Development Mechanism (“CDM”) Project in Chile.
The multi-million dollar transaction involving contracts between Celulosa Arauco y Constitución SA (Arauco), the largest forestry company in Latin America, and Tokyo Electric Power Company (TEPCO), one of the leading electricity generation companies in Japan, will see Arauco sell emissions reductions created from the biomass project to TEPCO.
The transaction will result in the creation of green energy through the burning of sustainable biomass (wood waste) which will then be dispatched to the Chilean electricity grid, thereby reducing CO2 and methane emissions in the order of 500,000 tonnes of carbon dioxide equivalent whilst using the latest and cleanest technology available. Much of the biomass will come from Arauco’s own pine plantations and none of it is taken from native forest, of which Arauco owns 400,000 hectares.
The project is one of the largest Clean Development Mechanism (CDM) projects involving biomass to have been agreed under the provisions of the Kyoto Protocol, a treaty signed in 1997 to address and manage global climate change issues. The CDM is a market-based mechanism under the Kyoto Protocol to encourage commercial investment in sustainable development projects in emerging economies that reduce greenhouse gas emissions.
The deal comes at an important time for Chilean industry as it looks to decrease its dependence on natural gas imported from Argentina, which has, until now, been the only economically viable alternative to climate-destructive fuels such as coal and diesel. Although this project is substantial in size, biomass currently accounts for only 1.5% of power transmitted on the Chilean Power Grid and so the growth potential is significant:
energy :: sustainability :: wood :: biomass :: bioenergy :: climate change :: greenhouse gas emissions :: Clean Development Mechanism :: Chile ::
CantorCO2e brings much experience to the project and as broker has been instrumental in developing the right methodology, validation, registration and verification for the project. The project is one of many brokered by CantorCO2e to help mitigate the effects of climate change using market mechanisms.
Arauco is one of the largest forestry enterprises in Latin America in terms of surface area and yield of its plantations, production of market kraft woodpulp, and production of sawntimber and panels. It is organized into four strategic business areas: Forestry, Woodpulp, Sawntimber, and Panels.
The company made headlines a few years ago for its construction of a large pulp plant which provoked protest by local communities (more, here).
The Tokyo Electric Power Co., Inc (TEPCO) supplies power to more than 27 million customers in Tokyo and the surrounding Tokyo Metropolitan Area, which accounts to nearly one third of the total power consumption of Japan. TEPCO is one of the world’s largest private power companies and has more than 60GW of generating capacity.
References:
An overview of the project from TEPCO's point of view [*.pdf / Japanese].
CantorCO2e: CantorCO2e Facilitates First Ever Biomass Emissions Reduction Project in Chile - June 21, 2007.
The multi-million dollar transaction involving contracts between Celulosa Arauco y Constitución SA (Arauco), the largest forestry company in Latin America, and Tokyo Electric Power Company (TEPCO), one of the leading electricity generation companies in Japan, will see Arauco sell emissions reductions created from the biomass project to TEPCO.
The transaction will result in the creation of green energy through the burning of sustainable biomass (wood waste) which will then be dispatched to the Chilean electricity grid, thereby reducing CO2 and methane emissions in the order of 500,000 tonnes of carbon dioxide equivalent whilst using the latest and cleanest technology available. Much of the biomass will come from Arauco’s own pine plantations and none of it is taken from native forest, of which Arauco owns 400,000 hectares.
The project is one of the largest Clean Development Mechanism (CDM) projects involving biomass to have been agreed under the provisions of the Kyoto Protocol, a treaty signed in 1997 to address and manage global climate change issues. The CDM is a market-based mechanism under the Kyoto Protocol to encourage commercial investment in sustainable development projects in emerging economies that reduce greenhouse gas emissions.
The deal comes at an important time for Chilean industry as it looks to decrease its dependence on natural gas imported from Argentina, which has, until now, been the only economically viable alternative to climate-destructive fuels such as coal and diesel. Although this project is substantial in size, biomass currently accounts for only 1.5% of power transmitted on the Chilean Power Grid and so the growth potential is significant:
energy :: sustainability :: wood :: biomass :: bioenergy :: climate change :: greenhouse gas emissions :: Clean Development Mechanism :: Chile ::
CantorCO2e brings much experience to the project and as broker has been instrumental in developing the right methodology, validation, registration and verification for the project. The project is one of many brokered by CantorCO2e to help mitigate the effects of climate change using market mechanisms.
Arauco is one of the largest forestry enterprises in Latin America in terms of surface area and yield of its plantations, production of market kraft woodpulp, and production of sawntimber and panels. It is organized into four strategic business areas: Forestry, Woodpulp, Sawntimber, and Panels.
The company made headlines a few years ago for its construction of a large pulp plant which provoked protest by local communities (more, here).
The Tokyo Electric Power Co., Inc (TEPCO) supplies power to more than 27 million customers in Tokyo and the surrounding Tokyo Metropolitan Area, which accounts to nearly one third of the total power consumption of Japan. TEPCO is one of the world’s largest private power companies and has more than 60GW of generating capacity.
References:
An overview of the project from TEPCO's point of view [*.pdf / Japanese].
CantorCO2e: CantorCO2e Facilitates First Ever Biomass Emissions Reduction Project in Chile - June 21, 2007.
1 Comments:
wow great read many thanks! Interesting concept.
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