Projects supported by the Government Carbon Offsetting Facility (GCOF)

The GCOF II contract – offsetting emissions April 2009 to March 2012

Sixth E-Auction contract

The sixth e-auction (22 November 2011) of the GCOF II contract was won by RWE Supply & Trading Switzerland S.A who are supplying Certified Emissions Reductions (CERs) from the following Clean Development Mechanism (CDM) project which meets the Government’s sustainability matrix set out in the contract:

Hebei Chengde Songshan Wind Farm Project
CERs assigned to GCOF II: 32,706
CDM type: Wind Farm Project
Location: China

The proposed project is located in the north of Weichang County, Chengde City in Hebei Province of China.

The project involves the installation of 66 turbines in total, each of which has a rated output of 750 kW, providing a total capacity of 49.5 MW. The annual output of the proposed project is estimated to be 103 000 MWh and is therefore expected to lead to a reduction of close to 106 000 tones of CO2 emissions in average on an annual basis over the first 7 years crediting period, starting from 8 April 2007. The operational lifetime of the proposed project is expected to be 20 years as per the FSR prepared by Beijing Jipeng Consultancy Co., Ltd in September 2005 and approved by Development and Reform Commission of Hebei Province on 30 December 2005.

Being a renewable electricity project, the project activity will generate greenhouse gas (GHG) emission reductions by avoiding CO2 emissions from electricity generation by fossil fuel power plants.

• Further information is available on the UNFCCC: Hebei Chengde Songshan Wind Farm Project web page.

Fifth e-Auction contract

The fifth e-Auction (22 June 2011) of the GCOF II contract was won by First Climate Markets AG, which is supplying Certified Emissions Reductions (CERs) from the following Clean Development Mechanism (CDM) project that meets the Government’s sustainability matrix set out in the contract:

Cruz Alta Bagasse Cogeneration Project
CERs assigned to GCOF II: 13,939
CDM type: Bagasse-based cogeneration connected to an electricity grid
Location: Brazil

This project activity consists of increasing efficiency in the bagasse (a renewable fuel source, residue from sugarcane processing) cogeneration facility at Cruz Alta sugar mill (Cruz Alta), one of the two sugar mills owned by Açúcar Guarani S.A. (Guarani). With the implementation of this project, the mill is able to sell electricity to the national grid, avoiding the dispatch of same amount of energy produced by fossil-fuelled thermal plants to that grid. By that, the initiative avoids CO₂ emissions, also contributing to the regional and national sustainable development.

By investing to increase steam efficiency in the sugar and alcohol production and increase in the efficiency of burning the bagasse (more efficient boilers), Cruz Alta generates surplus steam and uses it exclusively for electricity production (through turbo-generators).

• Read further information about Cruz Alta Bagasse Cogeneration Project 

Fourth e-Auction contract

The fourth eAuction (9 March 2011) of the GCOF II contract was won by RWE Supply & Trading Switzerland S.A. who are supplying Certified Emissions Reductions (CERs) from the following Gold Standard Clean Development Mechanism (CDM) project:

Hebei Shangyi Manjing East Wind Farm Project
CERs assigned to GCOF II: 51,069
CDM type: Wind – renewable energy
Location: China
See project details under 9 March 2010 eAuction.

• Further information

Third e-Auction Contract

The third eAuction (10 October 2010) of the GCOF II contract was won by EDF Trading (for spot purchase) and Essent Trading International S.A. (for forward purchase).

EDF Trading are supplying Certified Emissions Reductions (CERs) from the following Clean Development Mechanism (CDM) project, which meets the Government’s sustainability matrix set out in the contract:

Inner Mongolia Wudaogou 50.25MW Wind Power Project
CERs assigned to GCOF II: 50,363
CDM type: Wind – renewable energy
Location: China
Inner Mongolia Wudaogou 50.25MW Wind Power Project is a grid connected renewable energy project located in Inner Mongolia Autonomous Region, Northeast China. The objective of the proposed project is to generate electricity using state-of-the-art wind power generation technology and to sell into the State Power Grid. The proposed project will achieve CO2 emission reduction by replacing electricity generated by fossil fuel fired power plant connected into
China Northeast Power Grid.

The proposed project is located in Wengniute County, Inner Mongolia Autonomous Region. Totally 67 wind turbines with a nominal capacity of 750KW have been installed, providing a total capacity of 50.25MW. The area has relative rich wind resource. With an average annual generation of 124.66GWh,the proposed project is estimated to produce 142848 tonnes CO2 emission reduction annually.

The wind power generation technology adopted in the proposed project is zero emission generation technology. The electricity generated by the proposed project will replace electricity generated by fossil fuels, therefore, the proposed project could reduce the fossil fuel consumptions in connected power grid and as a result reduce CO2 emissions.

• Find out more

Essent Trading International S.A. are supplying CERs from the following Gold Standard Clean Development Mechanism (CDM) Project:

Hebei Chengde Songshan Wind Farm
CERs assigned to GCOF II: 828
CDM type: Wind – renewable energy
Location: China
The objective of Hebei Chengde Songshan Windfarm Project is to generate renewable electricity using wind power resources and to sell the generated output to the North China Power Grid (NCPG) on the basis of a power purchase agreement (PPA). The project activity will generate greenhouse gas (GHG) emission reductions by avoiding CO2 emissions from electricity generation by fossil fuel power plants that is supplied to North China Power Grid.

The proposed windfarm has an abundant wind resource. A decision has been made to install a total of 66 domestically-manufactured wind turbines, each with a power output of 750 kW to best suit the conditions. The combined total power output of the Hebei Chengde Songshan Windfarm will be 49.5MW. The expected net supplied power to the grid is 103,000MWh per year. The project will assist China in stimulating and accelerating the commercialisation of grid-connected
renewable energy technologies and markets which is an important objective of the Chinese government.

• Further information

Second e-Auction contract

The second eAuction (23 June 2010) of the GCOF II contract was won by First Climate Markets AG, who is supplying Certified Emissions Reductions (CERs) from the following Clean Development Mechanism (CDM) projects, which meet the Government’s sustainability matrix set out in the contract.

KMS Power 6MW Renewable Sources Biomass Power Project
CERs assigned to GCOF II: 14,230
CDM type: Biomass – Renewable energy
Location: India

The purpose of the project essentially is to utilize the available biomass fuels in the region effectively for generation of clean power. The generated power will be sold to the power deficit state grid for sustainable economic growth, conservation of environment through use of freely and abundantly available biomass fuels and Green House Gas (GHG) emission reduction. The project will also help certain extent to bridge the gap between the ever-increasing demand and supply of electricity in the state of Andhra Pradesh (AP).

The fuels used are rice husk, cotton stalk and paddy straw. The fuel requirement for 100% capacity is 22,200 t/yr of rice husk, 18,200 t/yr of cotton stalk, 19,600 t/yr of paddy straw and some quantity for Juliflora. KMS power uses each of the fuels for a period of 3 months in a year. A detailed survey for fuel availability and location has been carried by competent agency and the fuels are made available from the Guntur district in the state of Andhra Pradesh. Guntur district is one of the prominent agriculturally and industrially developed districts of Andhra Pradesh.

Considering the adequate availability of bio-mass in the area, KMS have set up the power plant in Vandavelli village, Sattenapalli Mandal, Guntur district, Andhra Pradesh.
The following local benefits are also envisaged due to the setting up of project:

• Proper utilization of abundantly available biomass;
• Generation of eco-friendly green power;
• Avoidance of burning of agriculture waste;
• Reduction of CO2 emissions
   

Bundled Wind Power Project in Tamilnadu, India, co-ordinated by the TamilNadu Spinning Mills Association (TASMA)
CERs assigned to GCOF II: 14,230
CDM type: Wind Power – Renewable energy
Location: India

This project involves grouping of 704 wind turbines. The small wind mill sub project owners, who operate spinning mills, have invested into wind energy generation encouraged by their Association - Tamil Nadu Spinning Mills Association (TASMA). The generated wind power is used for meeting their captive needs and for exportation to the grid. All the wind mills are connected to the grid of the Tamil Nadu Electricity Board (TNEB) / Southern Grid; situated within the State of Tamilnadu, micro-sited in many locations based on wind availability.

This wind based electricity generation aggregates to a total Installed capacity of 468 MW and the generation is expected to be approximately 860 GWh, annually. The project activity consists of many individual sub projects with different ownerships, all of which are members of the Tamil Nadu Spinning Mills Association. The association TASMA has promoted and continues to promote the adoption of wind energy generation for its members to meet their own needs.

TASMA has demonstrated to its members that the wind energy generation is viable keeping in mind the CDM revenue. TASMA also has been authorised by its members, present project activity sub project owners, to develop the wind energy generation activities as CDM projects.

The project activity generates 860 GWh of power using wind energy through wind turbine technology, enabling displacement of thermal energy. The project owners either sell electricity to TNEB or consume the energy at their mills under Power Purchase Agreements executed between individual owners and TNEB. All the windmill systems have been commissioned.

The novel feature of this project activity of TASMA is that it could bring together, a number of investors with small power requirements (who otherwise would have chosen to draw power from the grid) to invest into wind turbines as:

• They could gain negotiating capacity with the suppliers;
• Infrastructure support could be procured easier;
• Resources to obtain CDM benefits and power purchase agreements could be pooled.

First e-Auction contract

The first eAuction (09 March 2010) of the GCOF II contract was won by Essent Trading International SA, who is supplying  Certified Emissions Reductions (CERs)  from the following Gold Standard Clean Development Mechanism (CDM) project.

Hebei Shangyi Manjing East Wind Farm Project

CERs assigned to GCOF II: 61,907
CDM type: Wind – Renewable energy
Location: China

The objective of the Shangyi Manjing East Wind Farm Project is to generate renewable electricity using wind power resources and to sell the generated output to the North China Power Grid (NCPG) on the basis of a power purchase agreement (PPA). The project activity generates greenhouse gas emission reductions by avoiding CO2 emissions from electricity generation by fossil fuel power plants that is supplied to the NCPG. The place of the project has an abundant wind resource. 33 wind turbines have been installed with a power output of 1500KW. The total power capacity of the Wind Farm is 49.5MW, with the expected net supplied power to the grid if 116,820 MWh per year. The project assists China in stimulating and accelerating the commercialisation of grid-connected renewable energy technologies and markets which is an important objective of the Chinese Government. The project will therefore help reduce greenhouse gas emissions versus the high-growth, coal-dominated business-as-usual scenario. Furthermore, the project is improving air quality and local livelihoods and promote sustainable renewable energy industry development.

The first GCOF contract – offsetting emissions April 2006 to March 2009

The first GCOF invested in a range of carbon offsetting projects, all of which were small-scale projects, involving renewable energy or energy efficiency, with additional sustainable development benefits. Each project involved the buying and cancelling of CERs, which were then used to offset the carbon emissions from all official Government air travel. CERs from these projects were supplied by Trading Emissions Plc.

Details of the 11 projects offsetting the Government’s emissions 

• A full size version of this map is available.

Further details about each project and links to the UNFCCC website information

Horizonte wind power generation project

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 substiting energy from fossil fuel power plants as it generates electricity with clean wind energy. Energy from the plant is sold to the Brazilian South-Southeast-Midwest Grid.

Cucaú bagasse cogeneration project (CBCP)

This project has made bagasse cogeneration more energy efficient at the Cucaú sugar mill by installing more efficient boilers. The project also allows the mill to increase the steam efficiency in the sugar and alcohol production processes. Cucaú 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

The project installed a 6MW biomass-fired power plant that uses surplus biomass waste 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 in the local community. The project reduces local pollution by avoiding uncontrolled burning of waste in the fields. 

Gayatri agro industrial power

This project will use surplus biomass residues such as rice husk, paddy straw, castor stems, pulse stalks and other renewable woody biomass (Juliflora) materials to generate electricity for a grid system owned by the state owned power utility, Central Power Distribution Company Ltd. 

Sri Indra Power Energies

This project uses surplus biomass residues to generate electricity for a grid system owned by the state power utility, Karnataka Power Transmission Corporation Limited. 

Gansu Zhouqu Shimenping 15MW hydropower station project

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 job opportunities in the local community. 

Pesqueiro Energia small hydroelectric project (PESHP)

PESHP consists of a small run-of-river hydro power plant in the Jaguariaíva river in Brazil. The project has delivered 80,000 MWh per year to Brazil’s South-Southeast-Midwest interconnected grid since February 2003. The project reduces emissions of greenhouse gases by reducing the use of the area’s coal reserves for electricity generation. 

CAMIL Itaqui biomass electricity generation project

CAMIL is the biggest rice company in Brazil and the CDM project uses previously un-used rice husks to produce electricity through rice husk combustion. Before the project the vast majority of rice husks were left to decay, producing methane emissions. The project has increased employment in the region, optimised the use of natural resources and avoided unnecessary waste. 

Perpetual 7.5MW non-conventional renewable sources biomass power project

The project, a 7.5MW power plant, uses the renewable biomass available in the region to generate power. Power is sold to the state grid (ATRANSCO) to a connection only 0.5KM from the site, and the project supports the increasing demand for electricity in the area of Andhra Pradesh. The fuels used are rice husk, juliflora and bagasse and are grown within a 25KM radius of the plant in the Vizianagaram district. Cotton stalk, blackgram stalk and groundnut shell will also be considered. This plant uses the abundant biomass in the area, and avoids the burning of agricultural waste, generating clean power and reducing CO2 emissions. 

It is estimated the project has created 650 jobs for local people, directly and indirectly, and thereby reduced migration of the rural poor to the cities, as well as creating business opportunities for local stakeholders. 

Shalivahana non-conventional renewable sources biomass power project

The power plant consumes around 60,000-65,000 tonnes of biomass fuel (rice husks, saw dust, cotton stalks, paddy straw etc) to generate power. The project has generated an economic value to agricultural and wood wastes, providing stable and quality power to farmers and households. 

KMS power 6MW renewable sources biomass power project