ThyssenKrupp investment strategy – note it is building power plants in Brazil to use the off gases from the blast furnaces etc and generate CDM’s, presumably for use in its European steel making ops. Quite a sensible move, I would say. Presumably ArcelorMittal is doing something similar in Brazil, but so far we have no reports of this.
SBB 19 March German steelmaker ThyssenKrupp expects to have a surplus of European carbon credits (EUAs) when phase 2 of the European Emissions Trading Scheme (ETS) ends in 2012, it tells Steel Business Briefing. For phase 3 (2013-2020), the company expects a significant deficit, and may carry over any surplus EUAs for use in this period.
For calendar 2008, the company notes that it received 21,321,000 EUAs, but that actual emissions for that year were 20,816,320 t.
A recent report by climate campaigner Sandbag claims that ThyssenKrupp also bought 5,967,000 CERs (Certified Emission Reductions) in 2008. As with EUAs, these also each count for one tonne of CO2 emissions on the ETS.
This would suggest that in 2008 ThyssenKrupp was left with a surplus of over 6m EUAs, the report claims. ThyssenKrupp declined to comment on this when asked by SBB.
Meanwhile, CERs normally trade at a discount to EUAs on the international markets. This suggests TK could have saved several million Euros by using bought CERs and keeping the EUAs. ThyssenKrupp did not confirm this, but said that any income from emissions trading was taken by higher electricity costs. In Germany, up to a fifth of compliance needs can be met through CERs.
ThyssenKrupp also comments that in Brazil it is building three projects under the Clean Development Mechanism that should yield additional CERs. These will recover heat and use it in a combined cycle power plant, a first for the Americas. The projects could yield 5.3m t of carbon credits over 10 years, the company tells SBB.