London, 18 October 2010

E.ON Climate & Renewables has secured the first ever UN approval for a Russian Joint Implementation (JI) project under the Kyoto protocol. E.ON and its Russian company OGK-4 are completing the construction of a 400MW highly efficient Combined Cycle Gas Turbine (CCGT) power plant at Shaturskaya power plant near Moscow. The new plant will save over a million tonnes of carbon by 2012.

The electricity produced by the new CGGT power plant replaces electricity generated using less efficient power generation technology. As a result, less fuel is used to generate the same amount of electricity, and CO2 emissions are reduced. The resulting carbon credits from the project, approved by the UN, can be used for compliance by governments under the Kyoto Protocol or by industrial companies within the EU ETS.

Hervé Touati, Managing Director of E.ON’s Carbon Sourcing business said “this is a major step forward for carbon markets. The approval of Russian JI projects will add liquidity to the market and gives companies like E.ON the confidence to invest further in carbon reduction projects in the region”.

The project was approved by the JI Supervisory Committee of the UNFCCC on Friday October 15, 2010. The project was developed with the assistance of Dutch JI developer Global Carbon BV.

Sergei Tazin, CEO of E.ON Russia, said: “The E.ON owned OGK-4 is the first Russian company which has received an approval under Kyoto mechanisms. This is evidence that E.ON and OGK-4 are implementing the most advanced and environmentally friendly technologies in the construction of thermal power plants. The funds will be an incentive and a source for further improving the effectiveness of the company”.

With the €2.3 billion new build programme in Russia E.ON is making a significant contribution to climate protection in Russia. Thanks to the use of the latest technology in power station construction in the power plants Surgutskaya-2, in Yaivinskaya and in Shaturskaya, the company will be able to reduce CO2 emissions by some 4,3 million tonnes by 2012. In addition to Shaturskaya it is planned to register two more projects as Joint Implementation projects under the Kyoto Treaty: 2 CCGT 400 MWT each at the Surgutskaya and CCGT 400 MWT at the Yajvinskaya power plants.

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