14.12.2009, 18:00
DTEK Signs Contract to Sell Emissions Reduction Units to ING
OREANDA-NEWS. December 14, 2009. DTEK’s Komsomolets Donbassa mine has signed an agreement for the sale of their Emission Reduction Units (ERU), in accordance with Kyoto protocol’s Joint Implementation scheme. ING Bank N.V., Netherlands, has agreed to purchase 300,000 ERU’s on a pre-paid basis.
Under the terms of the deal, the Komsomolets Donbassa mine is obliged to supply a specified volume of ERU’s by the end of 2012. In addition, ING have obtained the right to the preemptive purchase of an extra 200,000 ERU’s.
Speaking on the completion of the deal, DTEK’s CFO, Yuriy Ryzhenkov , said:
“This project is one of the few examples of successful international emissions trading by a Ukrainian company within the framework of the Kyoto protocol. It is a new option of capital raising for DTEK and we plan to use it in other DTEK enterprises. The impact that this will have on environmental protection and safe working conditions for our employees is equally important for us as the additional finance that this deal provides.”
The Komsomolets Donbassa mine has been able to participate in the project following the replacement of a 15.5 km of underground degassing pipeline system and the launch of gas disposal equipment. The mine is the only coal producer in the Ukraine that will be using three methods of methane utilization simultaneously to burn off captured gas and effectively measure the ERU. DTEK will also purchase two cogenerating thermal power units with a total capacity of 3 MW in 2010.
Between 2008 and 2012, the overall emissions reduction will total 620,000 tonnes of СО2 equivalent. The resulting increase in annual ERU production capacity over the next five years will rise from 17,500 ERU’s in 2008, to more than 200,000 ERU’s in 2012.
In addition, this project will allow DTEK to maximize the economy of internal coal usage – up to 25 000 tones between 2008 and 2012.
Reference
DTEK is the first private vertically-integrated power company in Ukraine. It is part of the financial and industrial group System Capital Management (SCM). The enterprises of DTEK build up an efficient operational chain of coal production and enrichment, electricity generation and distribution.
The coal business of DTEK includes Pavlogradugol (consisting of ten coal mines), Komsomolets Donbassa Mine and five enrichment plants. According to 2008 performance results, the Company’s share in the Ukrainian coal mining industry was 22.6%.
The generation business of DTEK is represented by Vostokenergo and the associated Dneproenergo Company, in which DTEK owns 47.46%. According to 2008 performance results, the share of Vostokenergo and Dneproenergo in thermal generation of Ukraine was 25.4% and 22.4% respectively.
Service-Invest and Energougol ENE represent the electricity distribution business of DTEK. Their share of electricity purchase in SE Energorynok in 2008 made 6.5%.
Under the terms of the deal, the Komsomolets Donbassa mine is obliged to supply a specified volume of ERU’s by the end of 2012. In addition, ING have obtained the right to the preemptive purchase of an extra 200,000 ERU’s.
Speaking on the completion of the deal, DTEK’s CFO, Yuriy Ryzhenkov , said:
“This project is one of the few examples of successful international emissions trading by a Ukrainian company within the framework of the Kyoto protocol. It is a new option of capital raising for DTEK and we plan to use it in other DTEK enterprises. The impact that this will have on environmental protection and safe working conditions for our employees is equally important for us as the additional finance that this deal provides.”
The Komsomolets Donbassa mine has been able to participate in the project following the replacement of a 15.5 km of underground degassing pipeline system and the launch of gas disposal equipment. The mine is the only coal producer in the Ukraine that will be using three methods of methane utilization simultaneously to burn off captured gas and effectively measure the ERU. DTEK will also purchase two cogenerating thermal power units with a total capacity of 3 MW in 2010.
Between 2008 and 2012, the overall emissions reduction will total 620,000 tonnes of СО2 equivalent. The resulting increase in annual ERU production capacity over the next five years will rise from 17,500 ERU’s in 2008, to more than 200,000 ERU’s in 2012.
In addition, this project will allow DTEK to maximize the economy of internal coal usage – up to 25 000 tones between 2008 and 2012.
Reference
DTEK is the first private vertically-integrated power company in Ukraine. It is part of the financial and industrial group System Capital Management (SCM). The enterprises of DTEK build up an efficient operational chain of coal production and enrichment, electricity generation and distribution.
The coal business of DTEK includes Pavlogradugol (consisting of ten coal mines), Komsomolets Donbassa Mine and five enrichment plants. According to 2008 performance results, the Company’s share in the Ukrainian coal mining industry was 22.6%.
The generation business of DTEK is represented by Vostokenergo and the associated Dneproenergo Company, in which DTEK owns 47.46%. According to 2008 performance results, the share of Vostokenergo and Dneproenergo in thermal generation of Ukraine was 25.4% and 22.4% respectively.
Service-Invest and Energougol ENE represent the electricity distribution business of DTEK. Their share of electricity purchase in SE Energorynok in 2008 made 6.5%.
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