Australia, Chile, Indonesia, and Mauritius in agreement to reduce greenhouse emissions

02-07-99 The Minister for Industry, Science and Resources, Senator Nick Minchin, announced that Australia had reached agreement with Chile, Indonesia, and Mauritius to establish a number of collaborative projects to reduce greenhouse gas emissions, under the Government's International Greenhouse Partnerships Program.
These projects will proceed as Activities Implemented Jointly under the UN Framework Convention on Climate Change.
"Australia is pleased to be collaborating with these countries on a number of pioneering projects which offer mutual benefits to all the countries and the commercial parties involved," Senator Minchin said.
"These projects not only offer direct environmental benefits but also provide an opportunity for Australia and the host countries to gain experience in establishing baselines and monitoring greenhouse gas reductions from activities such as these."
"The projects demonstrate the capacity of Australian industry to address the global issue of climate change through co-operative activities in other countries."

The Kyoto Protocol, agreed in 1997, paved the way for emission reduction credits to be generated from similar collaborative projects in the future.
Senator Minchin said that the projects would reduce greenhouse gas emissions in several ways.

In Chile, the Australian Gas Light (AGL) company will participate in a major project to reduce leakage from gas pipelines and to convert major industrial facilities from fuel oil to natural gas.

In Indonesia, Australia's International Centre for the Application of Solar Energy (CASE) will implement a project to recover gas from a city landfill and use it to generate electricity. CASE recently completed another collaborative project in Indonesia which involved the installation of a renewable power system in a remote village of Irian Jaya.

In Mauritius, two projects will be undertaken. In the first, Solar Sales Pty Ltd will estimate, monitor and verify emission reductions arising from the use of the solar photovoltaic systems the company is installing for the Mauritian Government. The second project, to be undertaken by Fuel Technology Pty Ltd, will reduce fuel consumption in an oil-fired power station.

Senator Minchin stressed that the International Greenhouse Partnerships Office will be playing an important role in developing a greater understanding of what is involved in establishing and managing such projects.
"In total, it is estimated that the four projects will reduce greenhouse gas emissions by some 1.3 mm tonnes of carbon dioxide each year - equivalent to the emissions produced each year by about 300,000 cars," Senator Minchin said.
"These are not aid projects, they are soundly based commercial undertakings."
"The support provided through the Office is facilitating commercial projects overseas, helping to offset the additional transaction costs incurred by business in undertaking collaborative projects. In this way we can enable proper measurement of, and accounting for, the desired reductions in greenhouse gas emissions."

Senator Minchin expressed appreciation of the projects' endorsement by the Governments of Chile, Indonesia and Mauritius, and said he looked forward to continued co-operation on climate change mitigation projects with those countries.

The projects are described in greater detail below.

Details of the international greenhouse partnerships projects
Chile natural gas project: The Australian Gas Light Company (AGL)
The project includes the rehabilitation of existing gas distribution systems in Chile, using nylon pipe technology developed by AGL and already used extensively in Sydney. The nylon pipe will reduce leakage of greenhouse gas from existing gas pipelines. In addition, greenhouse gas emissions and other associated pollutants arising from the use of fuel oil in industrial facilities will be reduced by converting these facilities to natural gas. IGPO funding of $ 350,000 will be provided for AGL's participation in the project.

Landfill resource recovery and utilisation - Municipality of Ujung Pandang: International Centre for the Application of Solar Energy (CASE)
The project involves the capture and use of methane, a powerful greenhouse gas, from a landfill in Ujung Pandang, the capital of South Sulawesi province in Indonesia. Emissions will be reduced by using methane to generate electricity. In addition, the project will examine the potential to use compost produced in the landfill as a source of organic fertiliser.
IGPO funding of $ 249,780 will be provided for the project.

Fuel efficiency improvements at the Fort George power station: Fuel Technology Pty Ltd
The project involves the use of a fuel catalyst developed by Fuel Technology to improve the efficiency of generating electricity from fuel oil at one of the major power stations in Mauritius. By reducing consumption of fuel oil - a product from refining crude oil - the project will lead to a reduction in greenhouse gas emissions and associated pollutants. Most electricity in Mauritius is currently generated from imported fuel oil. IGPO funding of $ 51,243 will be provided for the project.

Performance monitoring of solar systems: Solar Sales Pty Ltd
The project involves the estimation, monitoring and verification of reductions in greenhouse gas emissions arising from the use of solar power systems, to be installed in Mauritius by Solar Sales Pty Ltd. The solar systems will reduce emissions by reducing the amount of electricity in Mauritius which would otherwise be generated using fuel oil. IGPO funding of $ 149,612 will be provided for the project.