The TGF buys carbon credits on behalf of its investors, thus helping governments and companies to meet greenhouse gas emission reduction targets under the Kyoto Protocol and the EU Emissions Trading Scheme.
NEFCO said that the first Ukrainian TGF project reduces natural gas and electricity consumption through the recovery of waste heat in a coke plant at Alchevsk city, in eastern Ukraine.
The project consists of captive cogeneration with waste heat recovery at Alchevsk Coke Plant to displace the use of natural gas and 30GWh pa of grid electricity.
The project entails installation of a waste heat recovery system, a boiler firing coke oven gas and blast furnace gas and a 9MW turbine generator connected to the boiler, generating up to 54GWh pa of net electricity. In total, the project is expected to reduce carbon dioxide emissions by over 1.1 million tonnes of carbon dioxide equivalent during 2008-12. These will result in Emission Reduction Units (ERUs), which will be procured by the TGF.
The project has been developed as a Joint Implementation(JI) project by the Japanese Sumitomo which has international experience in the deployment of the project technology.
Ash Sharma, head of carbon finance and Funds of NEFCO, said: ”We are pleased to conclude our first major Joint Implementation project in Ukraine, working with Ukrainian and Japanese partners to introduce low emission energy generation technology into this important industrial sector.”
The JI project has received a determination report from accredited entity Bureau Veritas Certification and Letter of Approvals from the Designated Focal Points of Japan (September 2009) and Ukraine (December 2009). The project is presented for final determination under the Ukrainian Track 1 of the JI mechanism.
The TGF has been active since 2004 in the Joint Implementation segment of the Kyoto market, with an emphasis on Russian Federation, the Baltic countries and since 2006, in Ukraine. Its focus has been renewable energy and energy efficiency. The EUR35m facility has now ceased its active procurement, and is in now in the portfolio management phase.
