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CLP Power hails emissions cut

South China Morning Post — 10 Mar 2011

Hong Kong’s largest power supplier yesterday gave itself a pat on the back for its work to reduce emissions.

CLP Power (SEHK: 0002) reported that its Hong Kong power plants burned more gas and less coal for electricity last year. And it is confident that its gas supply will be stable for the next two years, before a transcontinental pipeline through the mainland comes online.

Under a 2008 agreement, Hong Kong will receive natural gas from Turkmenistan in Central Asia through the West-East Pipeline network, beginning next year or in 2013.

About 30 per cent of the company’s fuel mix was natural gas last year, compared to 25 per cent in 2009, while the proportion of coal used fell from 45 per cent to about 40 per cent. The rest is nuclear energy imported from Guangdong.

The change in the fuel mix, along with new emission control devices at its coal-fired power plant last year, brought down the emissions of major air pollutants by 58 per cent.

Carbon dioxide emissions fell by about 6 per cent, from 19 million tonnes in 2009 to 17.9 million tonnes last year.

The power firm warned of depleting gas reserves in Hainan which had caused disruption to its natural gas supply.

Lo Pak-cheong, CLP Power’s commercial director, said he was not worried about the continuing gas supply from the reserve but he anticipated challenges in bringing in the new gas supply.

“We have regular assessment on the supply, and close liaison with our mainland partners. We are confident that there will be sufficient gas before the coming of the new supply that will enhance supply reliability,” said Lo.

CLP would also source gas from a liquefied natural gas terminal to be built in Shenzhen and continue to use the existing Hainan reserve.

The company was also preparing to import more nuclear energy from the mainland.

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