First CAF Carbon Emission Reduction Purchase Agreement in Argentina

(Buenos Aires, 17th December 2009). A significant emission reduction purchase agreement has been entered into between CAF and Energía del Sur (EdS) within the framework of endeavours being done to abate global warming.

In this regard, Mr. Enrique García, Chairman of CAF, has stated “…at CAF, we have been promoting projects making a contribution to both sustainable development and to the generation of cleaner energy, such as the project being executed at Patagonia Power Plant, involving enhanced operational efficiency through the use of residual gases as a power source”.

This is the first world-wide project involving the combined cycle stage at a thermal power plant that has successfully completed registration procedures in the United Nations system for the Clean Development Mechanism of the Kyoto Protocol should be highlighted.

According to estimates, on account of the additional power generation being supplied by switching from a simple cycle to a combined cycle with a 60MW installed capacity, the Patagonia Thermal Power Plant should be reducing approximately 500.000 tons/CO2 between years 2009 and 2012. As a result, the thermal power plant is able to produce more power using the same amount of fuel, while less greenhouse gas emissions are being generated into the atmosphere, thus making a direct contribution to abating the impact of global warming.

Since the project being executed is successfully generating cleaner energy, it is in full compliance of the terms set forth by the Kyoto Protocol and, therefore, it is eligible to receive additional funds channeled through the international carbon market, while making a contribution to the sustainable economic development of the country.