December 17, 2007 (SinoCast) – China Huadian Corporation just signed a framework agreement of overall strategic cooperation with UK-based EcoSecurities Group PLC and Germany-headed Deutsche Bank, involving four clean development mechanism (CDM) projects. The Chinese power generation group will annually sell 3 million tons of carbon dioxide generated by its four super-critical power plants to the two foreign buyers, who will pay EUR 33 million for the deal per year.
Notably, the transaction is the biggest one that Chinese power generation companies have ever made in carbon dioxide sale business.
Under the clean development mechanism formed by the Kyoto Protocol, developing countries are allowed to sell carbon dioxide emission credits to companies in the developed countries, helping the buyers to meet their commitments to reduce greenhouse gases. On the other hand, the developing countries can get funds to build clean energy projects.
Huadian Group, one of the top five power generation groups in China, will have attributable installed capacity of 60,000MW by the end of 2007, and is making 17 CDM projects now.