E(12/1437) CLP conversion works on hold

From: vyora_yau@enb.gov.hk [mailto:vyora_yau@enb.gov.hk]
Sent: 12 June, 2012 18:10
To: dynamco@netvigator.com; James Middleton
Cc: cwwong@epd.gov.hk; enquiry@epd.gov.hk
Subject: Fw: E(12/1437) CLP conversion works on hold
Importance: High
Dear Mr Middleton,

We note that today you have forwarded your enquiry on 21 April to us again.  Perhaps for some reasons our reply to you on 11 May did not reach you, so I am forwarding the reply below to you again.  Kindly let me know when you have received this mail, thanks.

Regards,
Vyora YAU, PAS(FM)
—– Forwarded by Vyora SM YAU/ENB/HKSARG on 12/06/2012 17:54 —–

Dear Mr Middleton,

Many thanks for your e-mail expressing your concerns on the conversion works of CLP’s power plants.

As you may be aware, CLP has two coal-fired power plants in Hong Kong, namely Castle Peak “A” (CPA) and Castle Peak “B” (CPB) plants.

In the past few years, CLP has spent around $9 billion in retrofitting its four CPB power plants. The project includes installation of three types of emission control equipment, namely the Boosted Over Fire Air (BOFA), Selected Catalyst Reactor (SCR) systems and the Flue Gas Desulphurization (FGD) facilities.  The installation has reduced the emissions of CPB units by 99.76% for respirable suspended particulates, and over 90% and 50% for sulphur dioxides and nitrogen oxides respectively.

CPA coal-fired power plants are used with a lower priority after the gas-fired plants and the CPB coal-fired plants with retrofits.  The conversion works which CLP is now putting on hold are related to the provision of additional generating capacity at the CPA site.  In view of the lower than anticipated maximum power demand in 2011, we have strong reservations about the proposal, and have advised CLP to submit the proposal if necessary with supporting justifications in accordance with the Scheme of Control Agreement for our consideration.

Our energy policy objectives are to ensure safe and reliable energy supplies at reasonable prices whilst minimising the environmental impact caused by the production and use of energy.  Starting from 1997, power companies in Hong Kong have not been allowed, for environment reasons, to build new coal-fired power plants. To reduce the emissions from the power sector for improving the air quality, we have been imposing emission caps on their emissions, starting from 2005, firstly via their specified process licence and then via a Technical Memorandum (TM) issued under the Air Pollution Control Ordinance.  The emission caps have been progressively tightened and the current emission caps for the power sector are about 46%, 76%, 48% of the baseline levels of SO2, NOx and RSP respectively in 1997.  In 2010, we promulgated the Second TM to further tighten these emission caps from 2015 onward by 50%, 35% and 34% respectively from the current levels.  To meet the new tightened emission caps under the Second TM, the two power companies will have to maximize the use of their existing gas-fired generation units and prioritize the use of their coal-fired generation units equipped with advanced emission abatement facilities to further reduce their emissions.  As an on-going process, we will review the TM once every two years.

I trust you would find the information above of help.

Regards,
Ms Vyora YAU
for Permanent Secretary for the Environment

—– Forwarded by Vyora SM YAU/ENB/HKSARG on 11/05/2012 12:21 —–

From: “James Middleton” [dynamco@netvigator.com]
Sent: 04/21/2012 11:54 AM ZE8
To: Anissa SY WONG; Edward TW YAU; <ceeo@ce-elect-office.hk>; <clp_info@clp.com.hk>
Subject: CLP conversion works on hold
The Environment Bureau
Mr Edward Yau Tang Wah

Dear Sir,
We have heard  from Clear the Air sources that CLP’s  design team who were working on  the re-firing work at Castle Peak ‘A’ station has now all been put on semi-permanent hold. and that apparently when the tariff rate rise was hit the first thing that had to get the chop was the conversion of Castle Peak  ?

(‘A’ station uses traditional coal fired boilers, which run without FGD, to CCGT Combined Cycle Gas Turbine  and gas fired boilers. )

We are informed the existing ‘A’ units will now continue to run on coal but with no environmental measures other than one experimental Indigo agglomerator for four TG sets.

So it seems Government fails again by cutting out the proposed improvements that everyone was looking for ?
Unfortunately, if we want cleaner air it seems we have to make some investment.
We note however that electricity subsides have swung back into force.

We would welcome your comments on this information.

Yours faithfully,

James Middleton
Chairman
www.cleartheair.org.hk