Flensburg Public Services and Essent support climate protection in Brazil
Energy production from rice waste considerably reduces greenhouse gases
The public services ("Stadtwerke") of Flensburg, Germany, and the Dutch energy provider Essent jointly support a climate protection project in Brazil. By purchasing CO2 emission certificates of a Brazilian rice producer, they participate in financing a new co-generation power plant. In the future, rice waste will be used there to generate energy, instead of just being dumped. Previously, the resulting landfill would produce methane, which is harmful to the climate and increases the greenhouse effect 21 times more than CO2.
Flensburg Public Services and Essent support climate protection in Brazil
Over a period of 5 years, the two energy providers have been buying CO2 emission rights. Stadtwerke Flensburg and Essent use these emission rights for their power plant park, thus stabilising generation costs.
The global trade of emission rights is based on endeavours to apply investments in climate protection as effectively as possible. In industrial countries with their modern power plant parks, a reduction of CO2 emissions would often require great expenditure. However, the reduction resulting from the same investment in a threshold country will be several times higher. This is the case with the Brazilian rice producer.
Stadtwerke Flensburg is probably the first medium-sized business which participates in the global emissions trade together with a major international partner such as Essent.
Background
The Kyoto protocol
By signing the Kyoto protocol, many major industrial nations have committed themselves to reducing CO2 emissions in the future. According to the Kyoto protocol, each company and each power plant emitting CO2 is granted a certain mount of CO2 which it may release into the atmosphere. Every year, this amount is decreased by a certain rate, representing the annual quota by which a company must reduce emissions. A company that stays below its allotted emissions may sell its surplus in the stock market in the form of CO2 certificates. Companies that exceed their allotted emissions must purchase additional certificates. The price of these certificates influences electricity tariffs as well.
Essent
Essent is the largest energy supply company in the Netherlands, and one of the leading international energy providers with more than 11,250 employees. Emissions trading is handled by Essent Energy Trading (EET). With its international orientation, EET manages a successful, strongly growing wholesale business, focussing on coal, gas, LNG, biofuel, emissions, electric power, renewable energies, and transport. EET’s headquarters are located in 's-Hertogenbosch, The Netherlands.
In Germany, Essent is represented through Deutsche Essent GmbH in Duesseldorf. First and foremost, the company considers itself a partner of local and regional energy providers. Through its holdings KOM-STROM, Leipzig, and novogate, Duesseldorf/Munich, among others, Deutsche Essent offers customised solutions for public utility services in both the electricity and the gas sector. With an installed rating of some 480 MW, the company is also one of the leading wind energy suppliers in north-west Europe.
Stadtwerke Flensburg GmbH
Stadtwerke Flensburg is the largest public utility company in Schleswig-Holstein. As an environment-conscious energy supplier, it provides electricity, district heating, water, and industrial gas to the city of Flensburg and the surrounding region. The electric power products Flensburg eXtra and Flensburg eXtra öko attract new retail customers nation-wide. The Flensburg energy provider tailors individual energy supply solutions for business customers all over Germany. With some 770 employees and a business volume of Euro 143.5 million in 2005, Stadtwerke Flensburg counts among the 50 largest employers in Schleswig-Holstein. With a vocational training quota of more than 10%, young people are given a well-funded education and a good perspective for the future.
Published: 18 October 2006