Scottish & Southern Energy PLC
31 May 2007
SCOTTISH AND SOUTHERN ENERGY PLC
ADOPTION OF TARGET TO REDUCE EMISSIONS OF CARBON DIOXIDE
Scottish and Southern Energy plc ('SSE') has set itself a target to reduce by
20% the amount of carbon dioxide per kilowatt hour of electricity produced at
power stations in which it has an ownership or contractual interest.
The base year for SSE's target is 2005/06, when its emissions of carbon dioxide
were 622g/kWh, and it is aiming to achieve the 20% reduction, to 498g/kWh or
less, by 2015/16. Based on SSE's existing portfolio of assets and contracts and
on typical electricity output, the target, if achieved, would mean there would
be around five million tonnes fewer carbon dioxide emissions in 2015/16 compared
with 2005/06.
SSE is the UK's second largest generator of electricity and the largest
generator from renewable sources. It owns just over 10,000 megawatts (MW) of
electricity generation capacity, including its share of joint ventures. This
comprises: over 1,500 megawatts (MW) of hydro and wind capacity; almost 4,400MW
of gas-fired capacity; 4,000MW of coal-fired capacity (with biomass 'co-firing'
capability); and 150MW of oil-fired capacity.
SSE's target includes power it acquires under asset-specific contracts with
other electricity generators, such as that relating to Rocksavage Power Station
near Runcorn, but excludes power acquired via contracts which do not specifiy
the asset at which the power is to be produced. Similarly, the target would
include Certified Emissions Reductions (CERs) from specific generation projects
under the Clean Development Mechanism established under Article 12 of the Kyoto
Protocol, but would exclude those which are not related to a specific generation
project.
Ian Marchant, Chief Executive of SSE, said:
'In the last six months, we've had the EU agreement to adopt a binding target on
the use of renewable energy, the Approved National Allocation Plan for Phase II
of the EU Emissions Trading Scheme, the draft Climate Change Bill and the Energy
White Paper. All of these point in one direction: the industry is going to have
to produce less carbon dioxide per unit of electricity generated.
'We have set ourselves a challenging target which, if achieved and replicated in
all industries and across all sectors, would put the UK ahead of schedule to
reach its 2050 target of a 60% cut in emissions of carbon dioxide. It is,
however, essential that steps to de-carbonise electricity production are also
matched by substantive progress on efficient energy consumption.
'We will report on our progress against the 2016 target each year and the
decisions we take and the investments we make will be guided by it. Like any
long-term target, achievement will be influenced by circumstances outside our
control, such as the weather and fuel price movements. Nevertheless, we are
very serious in our aim to make such a significant cut in carbon intensity.
'That is why we already have such extensive involvement in developments designed
to deliver much more renewable energy, carbon capture and storage and
significantly increased thermal efficiency of power plant. We will maintain
this balanced approach to reducing carbon intensity in the years ahead.'
This information is provided by RNS
The company news service from the London Stock Exchange
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