Japanese Shimizu to realize biogas utilization project worth $3.5 million

Business Materials 24 December 2009 12:28 (UTC +04:00)

Uzbekistan, Tashkent, Dec.24 / Trend , D.Azizov /

Japanese Shimizu will realize a biogas project in Ahangaran worth $3.5 million in 2010-2011, the Tashkent's Mayor's Office said.

According to the Economics Ministry, the U.N. Framework Convention on Climate Change's Executive Board registered the project with Shimizu's participation.

A system of controlled biogas utilization, which is often a source of spontaneous combustion in waste grounds, will be introduced under the project launched by the company in early 2010.

The project will be financed by funds attracted by the Japanese company toward transferring Certified Emission Reductions (CERs).

According to experts, the project will reduce emissions by 85,000 tons of CO2 equivalent annually, and the annual income from CERs sales will hit 850,000 euro.

The Japanese Mitsubishi signed an agreement to implement Clean Development Mechanism (CDM) projects at three large Uzbek chemical plants - Navoiazot , Maxam-Chirchik and Ferganaazot the Uzkhimprom in 2006.

The project's implementation will allow emissions to be reduced in the amount of 1.1 million tons of CO2 equivalent annually, with an annual income from CERs sales of10 million euro. The Japanese company launched the commercial procurement of emissions in October.

In addition, the German RWE Power AG won an Uzbekenergo tender to select a partner for the CDM component to modernize Tashkent Thermal Power Plant in early December.

RWE Power will buy CERs units during the plant's modernization, with their subsequent sale on international markets taking place within the planned contract.

It is assumed that during the station's modernization, greenhouse gas emission will be reduced by 420,000 tons of CO2 annually. Currently, the average price on of CERs is 10 euro per ton. The Uzbek side plans to send the funds from CERs sale to cover the costs associated with building the Tashkent Thermal Power Plant.