Alcan to spend millions to meet pollution guidelines

Jun 11 2010 by Peter McCusker, The Journal

Alcan will buy around 2,200 NO2 credits and 13,800 SO2 credits on the emissions trading markets. These will cost several million pounds but will ensure the site fulfills its annual obligations.

A spokesman for Alcan said: “The verdict delivered by the European Court of Justice on April 22 requires Rio Tinto Alcan to enter the National Emissions Reduction Plan in order to achieve immediate compliance with the LCPD.

“We have some experience of such a market as this is not the first ‘cap and trade’ emissions reduction scheme we will have participated in... we will enter the scheme and we will review its impact on our business as we progress.”

The NERP was launched in 2008 will run until 2015, and Alcan will have to ensure it complies with it emissions targets on an annual basis.

It is understood that, while Alcan will fulfil its obligations by buying credits, it will continue to look at other ways of complying. These include examining the possibility of capturing the released pollution using carbon capture technology.

A second alternative is developing biomass power generation facilities to reduce its reliance on coal.

Alcan originally contested the EU LCPD and was supported by the Government.

A Defra spokesman said: “Following the European Court of Justice ruling on April 22 that the Lynemouth plant should comply with the Large Combustion Plants Directive, the operator of the plant, Rio Tinto Alcan, has confirmed to Defra that the plant will join the National Emissions Reduction Plan, set up by the UK under the provisions of the LCPD.”