ACEN, Rockefeller Foundation eye first coal-to-clean energy initiative

The first coal to clean credit initiative (CCCI) pilot project could save up to 19 million tons of carbon emissions through the decommissioning of a coal plant, ACEN Corp. and the Rockefeller Foundation said.

An assessment was made on the climate impact of carbon finance to close the South Luzon Thermal Energy Corp. (SLTEC) coal plant in 2030 and replace it with clean power and battery storage.

The CCCI is planning to decommission the plant in 2030, 10 years ahead of its scheduled retirement following findings that the project meets the criteria.

“We are delighted to accomplish this important milestone of confirming the project’s eligibility under CCCI’s draft methodology,” ACEN president and CEO Eric Francia said.

Francia explained the methodology allows the development of the just transition plan and engage with potential buyers of carbon credits.

Rockefeller Foundation president Rajiv Shah said the CCCI pilot project is significant for people experiencing effects of climate change.

“This pilot can give us the necessary data, lessons and hope to replicate a similar approach in other emerging markets and developing economies, potentially avoiding billions of tons of carbon emissions while providing clean, reliable electricity to those who need it most,” Shah said.

RMI, a partner of The Rockefeller Foundation under CCCI, found that a “carbon credit-backed retirement” as early as 2030 could result in positive financial, social and climate outcomes in comparison to a 2040 retirement.

Findings from RMI also indicate that carbon finance is necessary to cover “costs associated with the early retirement of SLTEC’s contract, costs associated with 100 percent clean replacement of SLTEC’s generation and decommissioning and just transition needs.”

RMI recommended further due diligence to “transparently stress test key assumptions.”

ACEN is currently coordinating for the early closure of SLTEC with the owners of the plant for the pilot project.

Moreover, ACEN is seeking to complete the project design document for the pilot by 2024, which will provide further details on the programs.

ACEN is eyeing on finalizing buyer discussions for the CCCI.

“We will continue to build on this momentum and hopefully deliver a successful pilot project,” Francia said.