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Italy's Puglia Region Wants to Cut Coal Power Output
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ITALY: May 4, 2007


MILAN - The Italian region of Puglia wants Enel and Edipower to cut electricity generation at two power stations there by 25 percent in 10 years to reduce carbon dioxide emissions, a senior regional official said on Thursday.


Michele Losappio, in charge of environmental issues at Puglia's administration, said the southern region had already asked the utilities to cut output at two stations near Brindisi.

"We want to reduce air pollution (in the region) and cut emissions of CO2 on the national level," Losappio told Reuters on the sidelines of an energy conference in Milan.

He said talks were under way with the two utilities which had indicated they would agree to cut output by 10 percent.

There was no immediate comment from Enel, whose power station near Brindisi was ranked by the European Commission as the eighth-biggest emitter of CO2 -- a gas widely believed to contribute to global warming -- in 2006.

Edipower, which is 40 percent owned by Italy's second-biggest utility Edison, recently told the region it would cut CO2 emissions by 10 percent, a company source said.

Edipower's station near Brindisi has an operating capacity of 640 MW.

Losappio said Puglia, which produces 60 percent more electricity than it needs and sends power to other regions, plans to compensate for hoped-for reduction of coal-fired power output with electricity to be generated from renewable sources.

The region has been working on 2-3 projects to generate power on offshore wind farms, with 400 MW capacity each, and on a project to build an 11,000 MW photovoltaic installation near Brindisi, he said.

Puglia's will to cut coal-fired power generation would deal a blow to Enel's long-standing plans to have half of its electricity produced at coal stations by 2010.

Such plans are facing strong opposition from local authorities and environmentalists, though Enel says the new "clean coal" technology it uses reduces air pollution.


NO TO BRINDISI LNG

Losappio reiterated Puglia's opposition to Britain's BG Group 500 million euro (US$680.5 million) plan to build a liquefied natural gas (LNG) terminal in the port of Brindisi, though the project has won backing from London and Rome.

"The terminal will not be built in Brindisi. Not even if (Britain's Prime Minister Tony) Blair sends marines there," Losappio said.

BG has been trying for years to build the 8 billion cubic metres (bcm) terminal, but local authorities and environmental groups have said it is not safe and will add to air and water pollution as well as hinder other activities in the port.

Losappio said a key inter ministerial meeting -- which may scrap the previous permit to build the terminal -- may be summoned within days.

However, the region was ready to host one LNG terminal, possibly in Taranto, he said.

Spain's Gas Natural has long been waiting for authorisations to build an 8 bcm terminal in Taranto.


Story by Svetlana Kovalyova


REUTERS NEWS SERVICE


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