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Explanation of the cooperation between Shanxi Huaxin Fertilizer Co., Ltd. and South Korea’s ECOPRO Company on CDM projects Author/Source: Shanxi Huaxin Coal Coking Industry Group Co., Ltd. Date: 2020-04-13 Views: 30 Climate change and global warming have become issues of great concern in world politics over the past decade. These problems are directly related to the historical reliance of industry on fossil fuels and the resulting emission of large amounts of greenhouse gases. In December 1997, over 160 countries gathered in Kyoto, Japan, to discuss measures to limit greenhouse gas emissions in order to achieve the goals set out in the 1992 Framework Convention on Climate Change. As a member state that signed the Kyoto Protocol, China has actively participated in an important flexible mechanism under this protocol for limiting greenhouse gas emissions: the Clean Development Mechanism (hereinafter referred to as CDM). The Clean Development Mechanism is a flexible financing mechanism that enables developing countries to benefit from the reduction of greenhouse gases, primarily carbon dioxide, and to promote sustainable development in those countries. By selling carbon emission reduction credits to developed countries – credits for reducing carbon dioxide emissions that can be traded on the global carbon market – the Clean Development Mechanism provides additional financing channels for projects; the income generated from the sale of these carbon credits is used to support the development of projects in developing countries. Meanwhile, the buyers of carbon emission reduction credits – some major developed countries **(such as the UK)** – will be able to achieve their emission reduction targets at lower costs. The development of CDM projects adheres to the same rules, permits, and evaluation standards as other types of projects (i.e., non-CDM projects). Current nitric acid plants use ammonia as a raw material to produce nitric acid, and the nitrous oxide emitted during the production process is a type of greenhouse gas. Nitrous oxide has a greenhouse effect 300 times stronger than that of carbon dioxide. If nitric acid plants can reduce their emissions of nitrous oxide, the resulting reduction in greenhouse gas emissions can be traded on the global carbon trading market. Such clean development projects can not only bring certain economic benefits to nitric acid plants and create employment opportunities locally, but also contribute to achieving the goals of the Kyoto Protocol, serving two purposes at once. The technologies for reducing nitrous oxide emissions are well-developed and are already in use in many nitric acid plants abroad. All that is required is to install emission-reduction equipment in the reactors, which does not affect the air quality inside the plant or in the surrounding areas at all, nor does it cause any other negative environmental impacts. The construction of the engineering project can be completed in just a few days, without affecting the production volume or quality of nitric acid, nor does it impact production safety. The Shanxi Huaxin nitric acid and nitrous oxide emission reduction project is located in the Jiaocheng Economic Development Zone in Shanxi, about 40 kilometers away from Taiyuan. 270,000 tons of nitric acid are produced annually, and the N2O emission reduction project has been proposed by Shanxi Huaxin Fertilizer Co., Ltd. and South Korean company EcoPro as a clean development project. The project is scheduled to begin operations within 2021, as proposed. The project participants hope to gain an understanding of the views of various stakeholders regarding the development of this project through consultations.