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Government to substantially reduce emissions from power plants
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     The Government will publish tomorrow (October 15) in the Gazette the "Second Technical Memorandum for Allocation of Emission Allowances in Respect of Specified Licences" which aims to reduce substantially the emissions of three air pollutants, i.e. sulphur dioxide (SO2), nitrogen oxides (NOx) and respirable suspended particulates (RSP), from the power generation sector in 2015 and beyond.  The emissions reduction will help further improve air quality in the region.

     The new technical memorandum (TM), which is issued under the Air Pollution Control Ordinance (Ordinance), will cap the annual emissions from the power generation sector in 2015 and beyond at 12,482 tonnes for SO2, 27,552 tonnes for NOx and 831 tonnes for RSP.  Compared to the corresponding existing emission caps set out in the first TM, the emissions of the three air pollutants will be reduced by 50%, 35% and 34% respectively.

     "In setting the new emission caps, we have taken into account the scope for emission reduction of both power companies upon the adoption of the best practicable means available through maximising the use of the existing natural gas-fired electricity generation capacity and prioritising the use of coal-fired electricity generation units that have been equipped with emission abatement equipment for meeting the emission caps in the first TM," said a spokesman of the Environmental Protection Department.

     "Natural gas electricity generation is significantly cleaner and more energy efficient.  It has been our policy to encourage the use of natural gas for electricity generation to help reduce emissions from the power sector.  Due to a limited natural gas supply, the power companies are unable to use fully their natural gas electricity generation capacity.  To secure a sufficient supply of natural gas, we signed the Memorandum of Understanding on Energy Co-operation with the National Energy Administration in 2008.  As a result, there will be a sufficient supply of natural gas towards 2015 for the power sector to increase the overall share of natural gas electricity for local electricity generation from the current 39% to about 52% for meeting the new emission caps.

     "As the emissions from the power generation sector accounted for 88%, 44% and 28% respectively of the territory-wide emissions of SO2, NOx and RSP in 2008, the tightened emission allowances will help improve the air quality of Hong Kong and the Pearl River Delta Region," he added.

     As in the first TM, provision is made in the new TM to allow up to not more than 1% of the total emission allowances of the power generation sector for potential newcomers entering the local electricity market in the future.  Besides, the allocation will also be revised at a frequency of not less than once every three years for timely review of the allocations.

     The new TM will be tabled at the Legislative Council on October 20 for commencement before the end of 2010.  The new set of emission allowances will come into effect starting on January 1, 2015, i.e., at least four years after the commencement of the TM in accordance with section 26G(4) of the Ordinance.

Ends/Thursday, October 14, 2010
Issued at HKT 18:57

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