World’s first industrial CDM projects set to reduce greenhouse gas emissions by more than 4 million tonnes of Carbon Dioxide equivalent annually
The Executive Board for the Clean Development Mechanism (CDM) of the Kyoto Protocol has registered of two of the world’s first industrial CDM projects. This important milestone will lead to significant, real and verifiable reductions in greenhouse gas emissions of more than 4 million tonnes of CO2e annually thanks to the involvement of INEOS Fluor Limited.
Both projects, registered by the UNFCCC will reduce HFC 23 emissions, a by-product from the manufacture of HCFC 22 refrigerants. The first has been developed by Gujarat Fluorochemicals Limited in India, with INEOS Fluor as technical sponsors in the UK. The second, with the Foosung Group in Ulsan, Korea also involved INEOS Fluor through its Japanese business.
"We are delighted that both GFL and Foosung are the first industrial projects in the world to be registered by the United Nations Framework on Climate Change," commented David Price CEO, INEOS Fluor. "Both are very positive projects that will deliver significant and sustainable greenhouse gas reductions that would not have occurred if it was not for the Clean Development Mechanism.”
"CDM projects such as these meet the common aim of all three companies, to help reduce emissions of greenhouse gases through responsible manufacturing, use and handling of fluorochemicals. The skills INEOS Fluor have developed through involvement in the UK Emissions Trading Scheme, our understanding of emission abatement technology and verification have helped us to achieve this common goal with project hosts around the world."
The CDM plant in Ulsan Chemical (A company of Foosung Group) was commissioned last year and is already reducing emissions. The registration by the Executive Board now means these emission reductions can be verified and the Certified Emission Reduction (CERs) can be generated and used by Developed countries to meet their Kyoto emission reduction targets.
At Gujarat, the registration paves the way for investment in its production facility that will lead to significant reductions in the emission of HFC 23, which in turn will create CERs to be traded on the open market.
Mr Deepak Asher, Vice President (Corporate Finance) of GFL, said "We are pleased that the registration of the project has cleared the way for its implementation, leading to commencement of significant real GHG emission reductions to contribute to the well-being of the environment, add a new and healthy revenue stream to the operations of the company, and strengthen our sustainable development program for the region.”
“This is the first Indian project, and only the third in the world, to be registered by the Executive Board of the Clean Development Mechanism. Notably, this is the largest CDM project, of all those that have been registered. GFL expects to generate more than 3 million tones of CERs annually, which is expected to go up in the future as HCFC 22 production grows."
INEOS Fluor was recognised in the UK Climate Change Plan 2000, for its own emission reductions and is now contributing to CDM projects in the industrial sector.
Note to editors
- To help reduce the cost of meeting the commitments under the Kyoto Protocol, to reduce Greenhouse gas emissions three market-based “flexible mechanisms” were designed Emissions Trading, Joint Implementation and the Clean Development Mechanism (CDM). Although different in operation, the three mechanisms are based on the same principle that industrialised countries be allowed to reduce emissions wherever in the world those reductions are cheapest, and then count those reductions towards their national target. CDM allows industrialised countries to provide investment in developing countries (non annex 1) to reduce greenhouse gas emissions. The CDM Executive Board of the United Nations Framework Convention on Climate Change provide Credit for these emissions which can be traded on the open market to help to companies involved in these projects to offset the cost of the initial investment. CDM has an explicit mandate to promote sustainable development.
- Hydrofluorocarbon 23 (HFC 23) is a potent greenhouse gas, if emitted to atmosphere. HFC 23 as a bi-product is a feature of all hydrochlorofluorocarbon 22 (HCFC 22) manufacturing facilities. HCFC 22 is a key material that is used in refrigeration and as a feedstock for PTFE. The emission of HFC 23 can be prevented but investment in technology is required.
- Gujarat Fluorochemicals Limited operates a HCFC 22 plant in Ranjitnagar, Dist. Panchmahal, Gujarat, India since 1989. The plant produces HCFC 22 by-product HFC 23, which is being vented to atmosphere. GFL wishes to take up thermal oxidation of HFC 23. This system in combination with the existing HCFC plant will enable GFL to avoid HFC 23 emissions. It will also give economic and technical benefits to the country by providing direct and in-direct employment and transfer of thermal oxidation technology to the country, which will contribute to sustainable development.
- INEOS Fluor Japan has successfully worked in partnership with the Foosung Group and UPC in Korea to develop a methodology ‘Incineration of HFC 23 Waste Streams’. One of the first proposals to receive the “Approved methodology” status in July 2003 from the CDM Executive Board. The project received approval from the Japanese Government in July 2003 and from South Korea’s DNA in July 2004 - the first CDM project to be approved by the Korean Government and now the Xth project to be Registered by the Executive Board of the UNFCCC.
- INEOS Fluor, is a world leading specialities business built on expertise and innovation in fluorine chemistry. The company is focused on the supply of fluorine-based products, technology and services across a number of major industries from pharmaceuticals to automotive, speciality polymers to refrigeration and air-conditioning. It has manufacturing facilities at Runcorn in the UK, Mihara Japan and St Gabriel in the United States. The company employs around 400 people world-wide. Its knowledge and understanding of reducing emissions from fluorochemical manufacturing facilities, monitoring and reporting put it in a strong position to partner companies seeking to improve their own environmental performance.
For further information contact:
INEOS Fluor Limited
PO Box 13
Phone: +44 1928 513064