OREANDA-NEWS. March 10, 2010. Vostokenergo, DTEK’s power generation division, announces that it is to conduct an open tender process surrounding the sale of Emission Reduction Units (ERU), in line with the frameworks set out under the Kyoto Protocol. The company plans to significantly reduce its emissions into the atmosphere and mark more than five million ERUs for sale by 2012.
 
Since 2006, the company has been undertaking a large-scale power equipment reconstruction, which it expects will reduce emissions at Kurakhovskaya TPP by 2.32 m tons of СО2  equivalent (1 ton of СО2 equivalent equals 1 ERU), at Luganskaya TPP by 2.39 m tons and at Zuevskaya TPP by more than 700,000 tons respectively.  96% of ERUs, which were the result of the reconstruction of Kurakhovskaya and Luganskaya TPPs, have been made available for sale, as well as 89.5% of Zuevskaya TPP’s ERUs.
 
All interested parties are invited to participate in the tender. Indicative bids must be submitted no later than March 19, 2010.
 
Earlier DTEK implemented a similar project at Komsomolets Donbassa Mine in the Donetsk Region of Ukraine. Participation in trading ‘carbon quotas’ became possible after 15.5 km of the underground degassing system pipeline had been replaced with larger diameter pipes and gas-utilization equipment had been commissioned. Dutch bank ING Bank N.V. became an buyer of ERUs, having purchased 300,000 ERUs on a pre-paid basis, thus gaining a pre-emptive right for an additional 200 000 ERUs.
 
 
Reference
 
For more details on the open tender please visit DTEK’s site:
 
http://dtek.com/en/investor_relations/tenders/   
 
One ton of ERU is the emissions reduction equal to one ton of CO2 equivalent. About 2 tons of CO2 equivalent is the result of burning one ton of coal. That is why reduced specific fuel consumption results in emissions reduction.
 
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 2009 performance results, the Company’s share in the Ukrainian coal mining industry was 24.4%.
 
The generation business of DTEK is represented by Vostokenergo and the associated Dneproenergo Company, in which DTEK owns 47.5%. According to 2009 performance results, the share of Vostokenergo and Dneproenergo in thermal generation of Ukraine was 25.3% and 20.5% respectively.
 
Service-Invest and Energougol ENE represent the electricity distribution business of DTEK. Their share of electricity purchase in SE Energorynok in 2009 made 7.7%.