U.N. carbon funding key for China clean coal developers

Wed Aug 25, 2010 7:28am GMT
 

* Chinese developers say USC requires CDM to be viable

* Technology already mature, costs falling, says World Bank

By David Stanway

BEIJING, Aug 25 (Reuters) - Developers of clean-coal power plants in China fear for the viability of their projects after a U.N. carbon-credit scheme denied funding for a similar plant in India at the end of July.

They said "ultra-supercritical" (USC) power stations would struggle without funds earned through the U.N.-backed Clean Development Mechanism (CDM) that lets rich countries invest in clean energy projects in developing countries.

In return, investors earn tradeable carbon offsets known as certified emission reductions or CERs CEREZ0.

Nine Chinese projects up for U.N. accreditation are on a much smaller scale but the proceeds from carbon trading will still be essential, one developer said.

"The Indian plant was too big, at 4,000 megawatts -- no wonder it couldn't get approved," said Hua Huang, a manager at the Anhui Wenergy Tongling Ultra-Supercritical Coal-Fired Power Project, which has a capacity of 1,000 megawatts.

At its latest meeting at the end of July, the U.N. executive board that grants CDM accreditation rejected the massive 4,000-megawatt supercritical power plant being built by India's Tata Power (TTPW.BO: Quote) in western Gujarat state. [ID:nSGE67B0FZ]   Continued...

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