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Government to further reduce power plant emissions
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     The Government published today (October 17) in the Gazette the "Fourth Technical Memorandum for Allocation of Emission Allowances in Respect of Specified Licences", which aims to further reduce the emissions of three key air pollutants from the power generation sector in 2019 and beyond. The reduction of emissions will help further improve air quality in both Hong Kong and the Pearl River Delta region.

     The new technical memorandum (TM), which is issued under the Air Pollution Control Ordinance, will cap the annual emissions of sulphur dioxide (SO2), nitrogen oxides (NOx) and respirable suspended particulates (RSP) from the power generation sector in 2019 and beyond at 9,220 tonnes, 25,480 tonnes and 700 tonnes respectively. Compared to the corresponding emission caps in the third TM for 2017 onwards, the emissions of the three air pollutants will be reduced by 11 per cent, 2 per cent and 7 per cent respectively.

     A spokesperson for the Environmental Protection Department (EPD) said, "In setting the new emission caps, we have taken into account the scope for further emission reductions by the two power companies given the latest electricity demand forecast for 2019. To meet the new emission caps under the new TM, the power companies need to continue to maximise the use of the existing natural gas-fired electricity generation units and adopt the best practicable means to reduce emissions, which includes prioritising the use of coal-fired electricity generation units that have been equipped with advanced emission reduction devices, maintaining the performance of emission control equipment, continuing the use of low-emission coal as far as possible and phasing out the use of heavy fuel oil by ultra-low sulphur diesel for assisting coal-burning. The two power companies will also take up surplus electricity generated from renewable energy (RE) sources to reduce coal-fired electricity generation. Also, since the natural gas from the West-East Gas Pipeline II, which was commissioned in 2013, contains less sulphur than the limit prescribed in the supply contract, it provides scope for further reduction in sulphur dioxide emissions.

     "As the emissions from the power generation sector accounted for 47 per cent, 28 per cent and 16 per cent respectively of territory-wide emissions of SO2, NOx and RSP in 2012, the tightened emission allowances will help improve the air quality in Hong Kong and the Pearl River Delta region."

     In line with the previous three TMs, provision has been made in the new TM to allow up to one per cent of the total emission allowances of the power generation sector for potential newcomers to the local electricity market, and the same determination mechanism also caters for the possible intake of RE by the newcomers.  

     The Environment Bureau launched in March this year a three-month public consultation on the Future Fuel Mix for Electricity Generation for Hong Kong. Since the decision on the long-term fuel mix will have significant implications for setting emission allowances for electricity generation in 2020 and beyond, the EPD will review the TM again in 2015 when the results of the fuel mix review are available.

     The new TM will be tabled at the Legislative Council on October 22, 2014 for commencement before the end of 2014. The new set of emission allowances will come into effect on January 1, 2019, i.e. at least four years after the commencement of the TM, in accordance with section 26G(4) of the Air Pollution Control Ordinance.

Ends/Friday, October 17, 2014
Issued at HKT 12:00

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