Beijing to Shut All Major Coal Power Plants to Cut Pollution (Bloomberg News – March 23, 2015)

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(Bloomberg) — Beijing, where pollution averaged more than twice China’s national standard last year, will close the last of its four major coal-fired power plants next year.

The capital city will shutter China Huaneng Group Corp.’s 845-megawatt power plant in 2016, after last week closing plants owned by Guohua Electric Power Corp. and Beijing Energy Investment Holding Co., according to a statement Monday on the website of the city’s economic planning agency. A fourth major power plant, owned by China Datang Corp., was shut last year.

The facilities will be replaced by four gas-fired stations with capacity to supply 2.6 times more electricity than the coal plants.

The closures are part of a broader trend in China, which is the world’s biggest carbon emitter. Facing pressure at home and abroad, policy makers are racing to address the environmental damage seen as a byproduct of breakneck economic growth. Beijing plans to cut annual coal consumption by 13 million metric tons by 2017 from the 2012 level in a bid to slash the concentration of pollutants.

Shutting all the major coal power plants in the city, equivalent to reducing annual coal use by 9.2 million metric tons, is estimated to cut carbon emissions of about 30 million tons, said Tian Miao, a Beijing-based analyst at North Square Blue Oak Ltd., a London-based research company with a focus on China.

‘Clear Impact’

“Most pollutants come from burning coal, so the closure will have a clear impact to reduce emissions,” Tian said. “The replacement with natural gas will be much cleaner with less pollution, though with a bit higher cost.”

Nationally, China planned to close more than 2,000 smaller coal mines from 2013 to the end of this year, Song Yuanming, vice chief of the State Administration of Coal Mine Safety, said at a news conference in July.

Coal is the most carbon-intensive fossil fuel and the leading source of carbon-dioxide emissions.
In the 10 years to 2013, coal demand globally grew by more than 50 percent, meeting almost half of the increase in the world’s total primary energy needs, the International Energy Agency said in its annual energy outlook report last year. China was the principal source of the surge, the IEA said.

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