Adaro bags 10 million tonnes coal sale to HK's Castle Peak Power

Hong Kong power firm Castle Peak Power Company Limited (CAPCO), announced on Thursday it had secured a 5-year, 10-million tonne contract to buy EnviroCoal from South Kalimantan coal producer PT.Adaro Indonesia to help cut SO2 emissions by one-third by 2007.

The 5-year contract has been signed with PT Adaro Indonesia, the world's largest supplier of EnviroCoal. CAPCO will buy 10% of PT Adaro's export volume of EnviroCoal, which has a super low sulphur content of 0.1%.

In 2004, the average sulphur content of coal used by CAPCO was 0.46%, compared to the international standard of coal sulphur limit in generation ranging from 1% to 3%. By 2007, EnviroCoal will account for about one-third of CAPCO's coal portfolio and reduce the average sulphur content to about 0.3%.

This will enable Castle Peak Power Station (CPPS) to cut SO2 emissions by almost 33% by 2007.

CAPCO is a joint venture owned 40% by Hong Kong-based utility CLP Holdings Ltd. and 60% by a unit of Exxon Mobil Corp.(alex)