Environmental Action Report 2002

Involvement in the World Bank's "Prototype Carbon Fund (PCF)"

TohokuEPCO is involved in the World Bank's PCF in order to acquire know-how to explore new projects, procedures to certify greenhouse gas (GHG) emission reductions, and the acquisition of GHG emission reduction credits. The PCF contributes to global efforts to reduce GHG emissions through financial assistance and technology transfers to projects in developing countries and East European nations in order to reduce GHG emissions.

PCF profile
PCF is an international system financed by contributions from developed nations and various businesses.
This fund invests in projects for reducing GHG emissions in developing countries and East European countries, and returns GHG emission reduction credits resulting from the implementation of projects.
The participants are six governments and 17 companies, including TohokuEPCO.

Coal purchase including the right to purchase future GHG emission credits

By May 2002, TohokuEPCO concluded a basic agreement for coal purchases with two Australian coal suppliers, and which includes a transaction concerning greenhouse gas (GHG) emission credits.
Through this agreement, TohokuEPCO acquired the right to purchase GHG emissions reduction credits in the future through projects as follows while purchasing coal from them.

GHG emission reducing projects

Powercoal Pty. Ltd.
This project plans to collect methane gas produced through coal mining and other activities, and to introduce the gas into a boiler of thermal power plant. This project is expected to reduce GHG emissions by cutting coal consumption and methane gas released to the atmosphere.

Centennial Coal Co. Ltd.
This project plans to reduce CO2 in the air by planting shrubs, which are durable against dry weather, on a total of 1,000 ha, and create economic and sustainable land management systems for stock raising.

Recent trends in electricity demands show an increase in seasonal and hourly variations, which can impede the efficient utilization of power supplies. In order to promote more effective use of energy and electrical facilities, TohokuEPCO is taking positive steps to achieve more flexible electricity charges (e.g. time-of-use rate and midnight power rate options) and innovative marketing (e.g. electric kitchens and all-electric houses).