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Offsetting Projects To Create Jobs, Cut Emissions


Department for Environment, Food And Rural Affairs (UK)

Offsetting projects to create jobs and cut emissions

Using rice husks to generate heat and electricity in Thailand, turning human sewage in Manila into clean electricity and creating power from pig waste are among the ways the UK will offset its carbon dioxide emissions from air travel, it has been announced today.

Environment Minister Phil Woolas said that paying towards the projects, in the Philippines, Thailand, Vietnam, India, China and Brazil, would ensure that the carbon footprint of Government air travel was neutralised by ensuring emissions were avoided elsewhere. This will help to cut emissions and ensure developing countries are not impoverished by carbon-cutting measures.

The Government Carbon Offsetting Fund is the first of its kind in the world, with governments including Norway and Finland following the UK's lead. The Fund involves 40 participants across central Government and the wider public sector and associated bodies, including the Royal Household and Transport for London.

Only necessary air travel is undertaken by Ministers and officials and is offset through projects approved under the Kyoto Protocol's Clean Development Mechanism.

Mr Woolas said:

"Offsetting emissions from transport isn't the answer to climate change - and that's as true for the Government as it is for everyone else. However, it's right that we are leading by example and offsetting every tonne of CO2 emitted through projects that avoid emissions in developing countries, create jobs and improve the local standard of living.

"The Kyoto mechanisms for funding clean energy projects in developing countries are the basis of an open, transparent global carbon market - and absolutely vital for securing investment in clean energy technology in countries that otherwise couldn't - or wouldn't - pay for it.

"We in the UK see the extension of carbon trading as a fundamental part of a future UN climate framework - something that we will be putting in the strongest possible terms at the UN meeting in Indonesia this December as we push to open negotiations on a future framework."

The GCOF is being managed by EEA Fund Management Ltd, who won the contract to source and deliver 255,000 Certified Emission Reduction Credits, with a provision for a further 50,000 credits, over three years from a range of Kyoto-registered projects. Credits will be supplied from the project portfolio of Trading Emissions PLC, to whom EEA is the Investment Advisor.

All Ministerial and official air travel from central Government since April 2006 will be offset, either through the GCOF or other funds. Agencies and other public bodies have the option of participating in Government schemes.

Notes:

1. The Government Carbon Offsetting Fund predominantly offsets air travel emissions but includes some road, rail and building emissions. Emissions have been calculated and backdated to April 2006, with Defra, the Cabinet Office and the Sustainable Development Commission offsetting emissions from April 2005.

2. The Certified Emission Reductions (CERs) have been chosed as the most robust form of offsetting available. The Government has sought CERs from small-scale projects with additional sustainable development benefits. Each CER purchased through the GCOF will be cancelled to remove it from the market and ensure integrity.

3. The Clean Development Mechanism is a procedure under the Kyoto Protocol through which developed countries may finance projects in developing countries to reduce emissions of greenhouse gases and get credits for doing so. The Government recognises the UNFCCC and the Clean Development Mechanism as the highest internationally agreed standard for emission reductions.

4. More information is available at http://www.defra.gov.uk/environment/climatechange/uk/carbonoffset/government.htm

5. EEA Fund Management Ltd was established in 2003 and manages energy and environmental assets (including AIM listed investment companies Trading Emissions PLC, see below, and LEAF Clean Energy Company, a North American focussed vehicle), three UK equity mutual funds and a life settlement fund. The company currently has a total of £850m of assets under management. EEA Fund Management Limited is authorised and regulated by the FSA. http://www.eeafm.com

6. Trading Emissions PLC (TEP) is a closed end investment company listed on the Alternative Investment Market (AIM) in London with £310m ($590m) of assets under management. TEP specialises in investment in emissions instruments such as carbon credits. (Ticker: TRE and TREC). The fund, advised by EEA Fund Management Ltd, provides project developers with carbon off-take contracts, and provides debt and equity investment into CDM and JI projects. http://www.tradingemissionsplc.com

GOVERNMENT CARBON OFFSETTING FUND PROJECTS

Gansu Zhouqu Shimenping 15MW Hydropower Station Project
Average Annual Emission Reductions: 66,817 tonnes of CO2 equivalent (tCO2e)
Location: China

The Gansu Zhouqu Shimenping Project is a small Hydropower plant using water from the Bailong River in Zhouqu County in China. This project generates clean electricity, reducing reliance on fossil fuel power generation as well as creating benefits and job opportunities to the local community.

Hacienda Bio Energy Bundle
Average Annual Emission Reductions: more than 100,000 t CO2e from more than 20 projects
Location: Philippines

More than twenty wastewater treatment projects, located at a variety of farms across the Philippines, will install systems to collect the biogas emitted from the anaerobic breakdown of farm waste water. This bio-gas will generate electricity on site at the farm, offsetting a significant proportion of the grid fed electricity currently used at the site. It will also manage the farm waste water, and reduce the organic loading of the waste water. This benefits the local neighbourhoods and workers by reducing local air pollution and odour that is a significant local issue.

Kalasin Wastewater Treatment to Energy
Average Annual Emission Reductions: 39,824t CO2e
Location: Thailand

This project will treat the waste water at the facility of Siam Products (1994) Co. Ltd. in Kalasin, Thailand. The Project will implement an alternative waste management process, using anaerobic digestion to reduce organic waste water loading in a controlled environment, mitigatingmethane emissions to the atmosphere. The biogas produced will be burnt to produce heat, avoiding the use of fuel oil currently used to dry wet starch cake to the final dry starch product. It will also be used to power an electricity generating plant of 1MW for use on-site, offsetting a significant proportion of the grid fed electricity currently used at the site.

La Suerte Rice Husk Cogeneration Project
Average Annual Emission Reductions : 4,726t CO2e
Location: Thailand

The La Suerte Rice Mill Rice Husk Cogeneration Project, located in Thailand, will use the mill's by-product rice husks as fuel for generating heat for grain drying and electricity for in-house use, replacing diesel and kerosene, and mitigating the emissions that were associated with them. The waste rice husk to be utilised is a significant local environmental problem as it is often dumped and often let to rot or burnt in fields. The project will utilise 3.5t of rice husk per hour, or around 20,000t of waste rice husks per annum. It is a milestone project in the Philippines being the first local project to utilize rice husks for cogeneration.

Makati South Sewage Treatment Plant Upgrade with On-Site Power
Average Annual Emission Reductions: 28,729t CO2e
Location: Philippines

This is a sludge treatment project at the sewage treatment plant located in Magallanes Village, Makati City, Philippines. The anaerobic digestion of sludge produces biogas, which is collected and used to generate electricity for use on-site, offsetting a significant proportion of the grid fed electricity currently used. Any electricity produced which exceeds the demand of the site will be sold to Magallanes Village, the immediate community. The project is the first formal sewage treatment facility in the Philippines.

Swine Waste to Energy Bundle Project 1136
Average Annual Emission Reductions: 46,319 t CO2e
Location: Thailand

The Thai Pig farms employ normal scraping and hose-down cleaning of waste from pens, transferring waste to a series of open-pit lagoons. Such lagoon-based treatment is standard practice in the South East Asian region. The projects will install systems to collect the biogas emitted from the anaerobic breakdown of farm waste water. This bio-gas will generate electricity on site at the farm, offsetting a significant proportion of the grid fed electricity currently used at the site. It will also manage the farm waste water, and reduce the organic content of the waste water. This benefits the local neighbourhoods and workers by reducing local air pollution and the odour that is a significant local issue.

Horizonte Wind Power Generation Project
Average Annual Emissions Reductions: 6,227 t CO2e
Location: Brazil

The Horizonte project became operational and started generating electricity in 2004. The wind farm consists of 8 turbines of 600kW each for a total generation capacity of 4.8 MW. The project will reduce GHG emissions by substituting for fossil fuel power plants as it generates electricity with clean wind energy will be sold to the Brazilian South-Southeast-Midwest Grid.

Cucau Bagasse Cogeneration Project (CBCP)
Average Annual Emission Reductions: 2082 tCO2e
Location: Brazil

This project consists of increasing the energy efficiency of the bagasse cogeneration facility at Zihuatanejo do Brazil Acucar e Alcool S.A. (Cucau), a Brazilian sugar mill. The implementation of this project allows the mill to increase the steam efficiency in the sugar and alcohol production processes, and increases the efficiency of burning the bagasse through more efficient boilers. Cucau is thus able to generate surplus steam and use it exclusively for electricity production. This electricity is then sold into the national grid, avoiding the dispatch of the same amount of energy generated from fossil fuel-fired thermal plants.

Sri Balaji 6 MW Non-Conventional Renewable Sources Biomass Power Project
Average Annual Emission Reductions: 28,590t CO2e
Location: India

The project is located in Chennur village, Chennur Mandal, Cuddapah district, Andhra Pradesh, India. The project will install a 6MW biomass-fired power plant, which will utilise surplus biomass residues usually burnt in the local area. The electricity generated by the project is sold to the grid, reducing reliance on fossil fuel power generation as well as creating benefits and job opportunities to the local community. The project will reduce the generation of local pollution due to the uncontrolled burning in the fields.

Vietnam Tapioca Cassava Starch Wastewater to Energy
Average Annual Emission Reductions: 17,500t CO2e
Location: Vietnam

Wastewater-to-energy plant will treat the Vietnam Tapioca starch facility's wastewater by a controlled anaerobic digestion processes. Installing systems to collect the biogas emitted from this breakdown, the biogas will be delivered to the starch facility as a substitute for its consumption of low sulphur fuel oil (LSFO). Reducing the emissions normally associated with the industrial process.

Tauy Nihn Tapioca Cassava Starch Wastewater to Energy
Average Annual Emissions: 17,500 t CO2e
Location: Vietnam

Wastewater-to-energy plant will treat the Vietnam Tapioca starch facility's wastewater by controlled anaerobic digestion processes. Installing systems to collect the biogas emitted from this breakdown, the biogas will be delivered to the starch facility as a substitute for its consumption of low sulphur fuel oil (LSFO). Reducing the emissions normally associated with the industrial process

Government Carbon Offsetting Fund Members

Central Government (including participating agencies)

Cabinet Office
The Prime Minister's Office
Department for Business, Enterprise and Regulatory Reform
Department for Children, Schools and Families
Department for Local Government and Planning
Department for Culture, Media and Sport
Department for Environment, Food and Rural Affairs
Centre for Environment, Fisheries and Aquaculture Science (CEFAS)
Department of Health
Department for International Development
Department for Transport
Government Car and Despatch Agency
Department for Work and Pensions
The Rent Service
Export Credits Guarantee Department
Her Majesty's Revenue and Customs
Valuation Office Agency
Her Majesty's Treasury
Home Office
Identity and Passport Service
Criminal Records Bureau
Forensic Science Service
Law Officers' Department
Crown Prosecution Service
Serious Fraud Office
Legal Secretariat to the Law Officers
Attorney General's Office
Treasury Solicitors
HM CPS Inspectorate
Revenue and Customs Prosecution Office
Ministry of Defence
Ministry of Justice
Northern Ireland Office
Sustainable Development Commission

Other partners

Parliament
(including both Houses and the British American Parliamentary Group)
The Greater London Authority
Metropolitan Police Service
Transport for London
London Development Agency
The Royal Household

Defra's aim is sustainable development. Website http://www.defra.gov.uk

Client ref 411/07
GNN ref 153858P

ENDS

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