NEFCO Carbon Fund invests in industrial energy efficiency in China

The Nordic Environment Finance Corporation announces that its NEFCO Carbon Fund (NeCF) has signed two agreements to procure emission reductions from two waste heat recovery projects at cement kilns in Jiangsu province, eastern China. The projects will be implemented under the Kyoto Protocol's Clean Development Mechanism (CDM).

The energy efficiency projects will install low temperature waste heat generating units to utilize the waste heat from the head and the rear of the cement clinker production line of the two cement works, heat which would otherwise be released to atmosphere.

The power generated, approximately 362 GWh per annum will be employed at the sites in question (i.e. captive waste recovery and power generation). The two near-identical projects will displace an equivalent amount of annual power currently drawn from the East China Power Grid, leading to estimated combined annual emission reductions of approximately 327,000 tCO2e. The combined capital investment is approximately EUR 46 million.

In total, the Fund will contract approximately 0.86 million CERs from the two projects in the period up 31st December 2012.

The NeCF is a pre- and post- 2012 facility. Ash Sharma, Fund Manager stated “We are currently evaluating a number of deals in the area of renewable energy and energy efficiency in India, South- East Asia and southern Africa. As has been our practice since the inception of the Fund, the NeCF will commit to procuring for the full crediting period of the project, regardless of the outcome of the international negotiations on a post Kyoto climate change regime, in those jurisdictions which are amenable to this approach.”

The NEFCO Carbon Fund was launched in March 2008, and started operations in April 2008. It currently has access to financial resources of up to EUR 100.6 million. The purpose of the facility is to procure high quality carbon credits for compliance purposes under the EU Emission Trading Scheme and the Kyoto Protocol.

NEFCO is an international financial institution owned by the five Nordic countries. NEFCO finances investments and projects in in order to generate positive environmental effects of interest to the Nordic region. NEFCO currently administers funds to a total value of 353 million euros. www.nefco.org

For further information, please contact:
Ash Sharma, Senior Investment Manager, Head, Carbon Finance and Funds, NEFCO, + 358 400 811 327
Mikael Sjövall, Communications Manager, NEFCO, +358 50 3535 045