ENDESA Signs an Agreement with Chinese Company Huaneng to Acquire Emissions Reductions from Wind Farms
November 09 2005 - 11:10AM
Business Wire
ENDESA (NYSE:ELE): -- The agreement includes emissions reductions
equivalent to 2.6 million tonnes generated by three wind farms
which, in 2006 and 2007, will have installed capacity of 195 MW. --
With this agreement, ENDESA has gained a strategic position in
China, the country considered to have the greatest potential for
developing Clean Development Mechanisms projects. ENDESA has signed
an agreement with the China Huaneng Group, China's largest electric
utility, to acquire Emission Reduction Certificates (ERCs) from the
three wind farms owned by its subsidiary Huaneng New Energy
Industrial Co Ltd (HNEIC). The wind farms, which are located in the
province of Guangdong, have a joint capacity of 195 MW and will
start operating in 2006 and 2007. They will generate 2.6 million
tonnes of ERCs through to 2012. The process began in July when
ENDESA was invited to bid for the ERCs. The company was named a
finalist after the first round. The China Huaneng Group chose
ENDESA as the purchaser of the ERCs of its wind farms as it
envisaged the two companies entering into future technological
cooperation agreements. These newly-acquired emissions reductions
will allow ENDESA to meet its CO2 emission commitments for its
operations in Spain, Portugal, France and Italy, included in the
Directive on Emissions Trading. With this agreement, ENDESA has
gained a strategic position in China, a country considered to have
the greatest potential for developing Clean Development Mechanisms
projects. ENDESA is the first private company to launch a global
CO2 emissions rights purchasing initiative. The target is to
purchase 15 million CO2 emissions rights through to 2012 via the
mechanisms provided for in the Joint Application Clean Development
Mechanisms contained in the Kyoto Treaty. To this end, the Company
is planning to set up workshops worldwide with the purpose of
explaining the contracting procedures and agreements necessary to
carry out the rights trading. The five-step process for reducing
CO2 rights on behalf of ENDESA guarantees both the buyer and the
seller security throughout the entire procedure, starting with
project analysis and culminating in the signing of a CO2 emission
rights contract between the Company and the project developer.
ENDESA sees sustainable development as a growth opportunity for the
Company, not forgetting its social responsibility to the companies
it operates with, the efficient use of resources, its obligation to
avoid undue environmental harm and wealth creation for those that
invest in, work in or use the company's services. ENDESA's Spanish
facilities slashed CO2 emissions by 27.5% between 1990 and 2004,
while doubling their output during the same period. ENDESA expects
its specific CO2 emissions to be 35% lower in 2007 compared to
1990. For more information see www.endesa.com/eci. * This document
may contain certain forward-looking statements regarding
anticipated financial and operating results and statistics that are
subject to risks and uncertainties as well as to material risks,
changes and other factors which may be difficult to predict,
including, without limitation, those factors described in the
Documento de Registro de Acciones of Endesa filed within the
Comision Nacional del Mercado de Valores and in the Form 20-F of
Endesa filed within the Securities and Exchange Commission, both
for the fiscal year ended December 31, 2004. For all of these
forward-looking statements, we claim the protection of the safe
harbour for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995.
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