Nordic group to fund China projects

The Nordic Environment Finance Corporation’s Carbon Fund (NeCF) has agreed to invest in two wind and hydroelectric projects in China.

The investments are to be implemented under the Kyoto Protocol’s Clean Development Mechanism and are the first Chinese projects for the NeCF.

In the first project, the NeCF is expected to collaborate with China’s Yangtze New Energy Development. The company is expected to install 134 wind turbines, each with a 1.5 megawatt capacity, in the eastern province of Jiangsu. In return the NeCF is expected to purchase 1.4 million certified emissions reductions (CERs).

The second venture is projected to be a hydroelectric facility based in southwest China. The NeCF did not disclose the name of its partner but said the project is expected to generate 250,000 CERs.

The Chinese government has said it would like to see more foreign investors for water systems projects in the country, but Chinese officials admit the investment process can be daunting (see The Wild West of water in China).

The NeCF was launched in April to finance projects that reduce greenhouse gas emissions. To be considered for funding, the projects must meet requirements outlined in the Kyoto Protocol.

Two Russian energy efficiency projects to renovate the district heating networks in western Siberia and Leningrad were recently funded by the NeCF. The projects are expected to reduce carbon dioxide emissions by 60,000 metric tons (66,138 U.S. tons) a year.

The NeCF considers China the world’s fastest growing wind energy market. China had over 6 gigawatts of installed wind capacity at the end of 2007. The country currently ranks fifth in the world for installed wind capacity.

The northern province of Inner Mongolia is expected to have another 2.4 GW of wind power installed (see China plans 2.4GW wind power projects).

China’s Renewable Energy Industry Association has projected the country could have an installed wind capacity of 50 GW by 2015.