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Created on: 2019-11-19 11:05:41
Last update: 2020-01-24 11:30:27
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Why this profile?
The planned extension of the Çayirhan coal power plant will have adverse impacts on both people and the planet. The power plant will emit more than 4 million tonnes of CO2 into the air, worsening climate change and negatively impacting public health.
About Çayirhan-B coal power plant
The Çayirhan-B coal power plant is a planned 800MW extension to the existing 620MW Çayirhan coal power plant. Like the existing plant, it would be fueled by the Çayirhan II lignite mine. It is expected to cost USD 1.1 billion.
In March 2016 EÜAŞ (Electricity Generation I.C.) announced a tender for a second coal power plant in Çayırhan. In June 2016, EÜAŞ applied for the EIA with a combined EIA report for a 800MW coal power plant, a coal mine, a laundry facility, a lime-quarry pit and a shattering and sieving facility.
In 2017 the Turkish government started a privatisation program under which the Çayirhan power plant and mine were put up for tender. A consortium consisting of Kolin, Kalyon Energy and Çelikler Holding won the tender in February 2017 at the price of USD 60.4 per Megawatt Hour.
In April 2019 a presidential decree was issued to expedite the extraction of coal from the Çayırhan II lignite mine for use in the project. In July 2019, Çelikler Holding withdrew from the project and the Chinese company Harbin Electric signed an agreement with Kolin and Kanyon for the plant's construction.
What must happen
The Paris Climate Agreement goals require a managed decline of fossil fuel production. The construction of new coal power plants is not compatible with this goal. Banks must immediately stop financing new coal power plant developments anywhere in the world. As such, banks should steer clear of financing this project.
Effects on farm land According to the EIA report, the Çayırhan B coal plant will be constructed on 740 hectares of land, of which 65% is productive farming land. Since the plant area has no overground water supply available, it will have to use 40 tonnes of underground water per day. Use of this water resource is expected to have devastating effects on farming.
Climate and air pollution impacts Electricity demand in Turkey is rapidly increasing, and the power industry is the largest source of greenhouse gas emissions. The Çayirhan-B coal power plant is expected to produce 4 million tonnes of CO2 each year, increasing the negative effects on the environment and climate change. The plant will produce 1 million tonnes of ash per year, and because of the winds in the area, this ash will be spread over a wide area. The Çayirhan plant, which has been in existence since 1978, has a track record of polluting the water and soil with heavy metals.
Local bird sanctuary under threat The Çayırhan coal power plant is only 5.9 kilometres away from a bird sanctuary at Davutoğlan in the Nallıhan district. This sanctuary has more than 200 bird species, and is located in a bird migratory route. This area falls under the Ramsar Agreement, an international treaty on the protection of wetlands. The sanctuary is protected under two different statuses: one is 'natural preserve', given in 1994, and the second is 'wildlife cultivation area', given in 2005.
Applicable norms and standards
Garanti BBVA may become involved in financing the Çayirhan-B coal power plant as it listed the project as an investment opportunity in its January 2017 Outlook.
Following the July 2019 withdrawal of Çelikler Holding from the project, Kolin and Kalyon Group are the remaining project developers.