Monday April 20, 01:23 PM
UPDATE 1-Japan approves "exceptional" coal plant plan
By Risa Maeda
TOKYO, April 20 (Reuters) - Japan Environment Ministry on Monday backed plans to enlarge a coal-fired power plant, saying it would not greatly affect Japan's target of reducing greenhouse gas emissions by 60 to 80 percent
by 2050.
'It's an exceptional case, so we should make it clear why it can go ahead with the coal thermal plan,' said Yoshihiro Yamamoto, head of the environment ministry's assessment office.
'In general, we're against plans for new coal plants, which would affect the country's emissions in the long term.'
The government had studied chemical maker Tokuyama Corp's plan to expand a coal plant capacity by 50 percent to 817,000 kilowatts by 2012.
Power firms are seeking to cut the amount of carbon they produce by generating electricity less at coal-fired plants, which emit more than other sources of energy such as liquefied natural gas or nuclear.
But Environment Minister Tetsuo Saito said in a statement that Tokuyama's enlargement would replace a less efficient older plant.
He said it was also difficult for the company to use other fuels due to limited space at the plant, which generates power only for Tokuyama's use.
The minister also approved the plant, in Yamaguchi prefecture western Japan, bcause it supplies power to a factory producing polycrystalline silicon, which can be used in solar panel manufacturing and help contain global emissions in the long run.
Based on the minister's comments the Minister of Economy, Trade and Industry is expected to give recommendation to Tokuyama for a formal approval.
The minister's assessment may not be so positive for a coal-fired plant in Fukushima Prefecture, northern Japan, a joint venture between Diamond Power Corp, a utility unit of Mitsubishi Corp, and Nippon Kasei Chemical Co, Yamamoto said.
Critical are plans to sell power from the plant in the region, Yamamoto said, resulting in the supply eating into low carbon electricity being provided by Tokyo Electric Power Co , which is bound to a utility industry-wide carbon reduction target.
(Reporting by Risa Maeda, editing by William Hardy)
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