31st May 2007 07:03
Scottish & Southern Energy PLC31 May 2007 SCOTTISH AND SOUTHERN ENERGY PLC ADOPTION OF TARGET TO REDUCE EMISSIONS OF CARBON DIOXIDE Scottish and Southern Energy plc ("SSE") has set itself a target to reduce by20% the amount of carbon dioxide per kilowatt hour of electricity produced atpower stations in which it has an ownership or contractual interest. The base year for SSE's target is 2005/06, when its emissions of carbon dioxidewere 622g/kWh, and it is aiming to achieve the 20% reduction, to 498g/kWh orless, by 2015/16. Based on SSE's existing portfolio of assets and contracts andon typical electricity output, the target, if achieved, would mean there wouldbe around five million tonnes fewer carbon dioxide emissions in 2015/16 comparedwith 2005/06. SSE is the UK's second largest generator of electricity and the largestgenerator from renewable sources. It owns just over 10,000 megawatts (MW) ofelectricity generation capacity, including its share of joint ventures. Thiscomprises: over 1,500 megawatts (MW) of hydro and wind capacity; almost 4,400MWof gas-fired capacity; 4,000MW of coal-fired capacity (with biomass 'co-firing'capability); and 150MW of oil-fired capacity. SSE's target includes power it acquires under asset-specific contracts withother electricity generators, such as that relating to Rocksavage Power Stationnear Runcorn, but excludes power acquired via contracts which do not specifiythe asset at which the power is to be produced. Similarly, the target wouldinclude Certified Emissions Reductions (CERs) from specific generation projectsunder the Clean Development Mechanism established under Article 12 of the KyotoProtocol, but would exclude those which are not related to a specific generationproject. Ian Marchant, Chief Executive of SSE, said: "In the last six months, we've had the EU agreement to adopt a binding target onthe use of renewable energy, the Approved National Allocation Plan for Phase IIof the EU Emissions Trading Scheme, the draft Climate Change Bill and the EnergyWhite Paper. All of these point in one direction: the industry is going to haveto produce less carbon dioxide per unit of electricity generated. "We have set ourselves a challenging target which, if achieved and replicated inall industries and across all sectors, would put the UK ahead of schedule toreach its 2050 target of a 60% cut in emissions of carbon dioxide. It is,however, essential that steps to de-carbonise electricity production are alsomatched by substantive progress on efficient energy consumption. "We will report on our progress against the 2016 target each year and thedecisions we take and the investments we make will be guided by it. Like anylong-term target, achievement will be influenced by circumstances outside ourcontrol, such as the weather and fuel price movements. Nevertheless, we arevery serious in our aim to make such a significant cut in carbon intensity. "That is why we already have such extensive involvement in developments designedto deliver much more renewable energy, carbon capture and storage andsignificantly increased thermal efficiency of power plant. We will maintainthis balanced approach to reducing carbon intensity in the years ahead." This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
SSE