May 17, 2006
Tata Sponge Power Plant Gets CDM Certificate From UN
UN executive board has registered the company's waste heat recovery-based carbon credit power project as a Clean Development Mechanism (CDM) project. There are over 20 sponge iron plants in Orissa out of which only Tata Sponge and one other plant have developed a waste heat recovery based power plant.
Tata Sponge's project includes the recovery of the heat energy of the waste gas generated from its DRI kiln to produce steam, which is further utilised to generate 7.5 MW of power. Through the generation of power, this project activity meets the electricity demand of the sponge iron plant and township. The surplus power generated is exported to the state electricity grid. Their project qualifies as a CDM project since the waste heat energy that was earlier lost to the atmosphere is now used to generate power, thereby reducing green house gas emissions. Carbon credits are used by countries that have ratified the Kyoto Protocol to help meet their commitments to reduce greenhouse gas emissions.
The United Nations has been encouraging all nations to cut their emmisions. The CO2 emissions from developed countries are way beyond those from the developing countries. And the developed nations are bound to reduce emissions by 2008-2012. However, the developed countries have to spend nearly $300-500 for every tonne reduction in CO2 emission. Compared to about $10-25 spent by the developing countries.
The United Nations Framework Convention on Climate Change's Clean Development Mechanism (CDM) has been put in place to facilitate the trade of carbon credits between the developing and developed nations. Plus, the UN has appointed accredited validators to certify CDM projects.
Each carbon credit or certified emission reduction stands for one tonne of carbon dioxide reduced. Tata Sponge hopes to reduce 3,17,624 tonnes in carbon dioxide emissions over a 10-year crediting period.