Co2 Target

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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