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Çayırhan-B coal power plant Turkey
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On record

This profile is no longer actively maintained, with the information now possibly out of date

Send feedback on this profile
Download as PDF
By: BankTrack & CAN Europe
Created on: 2019-11-19 11:05:41
Last update: 2022-03-15 00:00:00

Contact:

climate@banktrack.org


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Çayirhan coal power plant. Photo: Wikimapia open source (CC BY SA 4.0)
Sector Coal Electric Power Generation
Location
Status
Cancelled
Design
Agreement
Construction
Operation
Closure
Decommission
Website http://www.parktermik.com/

About Çayırhan-B coal power plant

The Çayırhan-B coal power plant is a planned 800MW extension to the existing 620MW Çayırhan coal power plant. Like the existing plant, it would be fueled by the Çayırhan II lignite mine. It is expected to cost USD 1.1 billion.

As of October 2021, however, the construction of the power plant has been cancelled due to insufficient invester follow through.

Latest developments

$100 million collateral returned to Kaylon-Kolin

2021-10-05 00:00:00

Electricity Market Regulatory Authority cancels license of Cayirhan B project

2021-03-12 00:00:00

Why this profile?

The planned extension of the Çayırhan 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.

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.

Impacts

Social and human rights impacts

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.

Environmental and climate impacts

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 Çayırhan-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 Çayırhan 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.

Other impacts

Cumulative health effects For decades, coal power plants in Turkey have fuelled climate change and polluted the air. This has created an unacceptable health burden, leading to people dying early and causing and worsening of diseases such as asthma, chronic bronchitis or heart disease.

Governance

Applicable norms and standards

Ramsar Convention

Timeline

$100 million collateral returned to Kaylon-Kolin

2021-10-05 00:00:00

The Kaylon-Kolin partnership, who oversaw the project development of the Çayirhan-B Coal Power Plant, could not honour their commitment and the guarantee of 100 million dollars for the project was returned.

After Çelikler Holding -  an energy conglomerate - withdrawed from the project, further negotiations with Chinese investors did not yield any results. Thus, no progress has been made over several years and the construction phase of the coal power plant could not be reached.

Electricity Market Regulatory Authority cancels license of Cayirhan B project

2021-03-12 00:00:00

The Turkish Electricity Market Regulatory Authority (EMRA) has cancelled the license of Cayirhan B project. It was the first project to be privatised under a new law aimed at offering developers off-the-shelf sites, a strategy that places responsibility for securing permits and vital checks and balances, such as environmental impact assessments, land expropriation, and building permissions in the hands of state-owned company EÜAŞ, before offering them up to tender at private auctions (Europe Beyond Coal).

Financiers

Garanti BBVA may become involved in financing the Çayırhan-B coal power plant as it listed the project as an investment opportunity in its January 2017 Outlook.

As of 26 March 2021, however, the bank reaffirmed its commitment against climate change and accounced to stop financing coal-related activities by 2040.

Related companies

Following the July 2019 withdrawal of Çelikler Holding from the project, Kolin and Kalyon Group are the remaining project developers.

Harbin Electric China

Construction

Kalyon Group Turkey

Seized $100 million collateral

Kolin Turkey

Seized $100 million collateral

Çelikler Holding Turkey

Withdrew in July 2019

News

| |
Type:
Year:
blog
external news
our news

Turkey reluctant to commit to coal phase out plan

Turkey’s pledge to reach net zero carbon emissions by 2053 has come into question after a major climate meeting ended without a coal phaseout plan
2022-03-04 | AL-Monitor
blog
external news
our news

Garanti BBVA and IIF discuss the post-COP26 sustainable agenda

Following Glasgow’s 26th Climate Change Conference (COP26), BBVA’s Turkish unit and the Institute of International Finance (IIF) recently held a workshop to discuss the prospects of climate financing and sustainability efforts in developing nations.
2021-12-02 | BBVA
blog
external news
our news

Kalyon-Kolin'e 100 milyon dolar teminatı iade edildi

(Article in Turkish - $100 million collateral returned to Kalyon-Kolin)
2021-10-05 | ICT Media
blog
external news
our news

Çevrecilerin karşı çıktığı proje için 'acele kamulaştırma' kararı

(article in Turkish - Urgent expropriation decision for the project that environmentalists oppose)
2019-04-16 | Gazete Duvar
blog
external news
our news

CHP'den Çayırhan-B Termik Santrali İçin Araştırma İstemi

(article in Turkish - Research Request from CHP for Çayırhan-B Thermal Power Plant)
2017-02-15 | Haberler.com
blog
external news
our news

Çayırhan-B Plan İtiraz Dilekçesi

(article in Turkish - Çayırhan-B Plan Appeal Petition)
2017-02-04 | 350ankara.org

Documents

Type:
Year:
annual reports
2022-03-15 00:00:00

Turkey 2021 Energy Policy Review

2022-03-15 00:00:00 | International Energy Agency
other documents
2022-03-15 00:00:00

NATIONAL CLIMATE CHANGE ACTION PLAN

2011 - 2023
2022-03-15 00:00:00 | Republic of Turkey - Ministry of Environment, Urbanization and Climate Change
other documents
2022-03-15 00:00:00

Chronic coal pollution Turkey: Cumulative health effects

2022-03-15 00:00:00 | Health and Environment Alliance
other documents
2016-04-30 00:00:00

Coal report - Turkey's coal policies related to climate change, economy and health

2016-04-30 00:00:00 | Istanbul Policy Center
bank documents
2017-01-31 00:00:00

Capital Projects and Infrastructure Spending in Turkey

2017-01-31 00:00:00 | Garanti BBVA, PricewaterhouseCoopers
other documents
2019-03-31 00:00:00

Environmental Impact Assessment - 2018

2019-03-31 00:00:00 | Envy.com.tr

Links

New report: The Roadmap for Paris-Compatible Turkish coal exit

Turkey can be coal free by 2030 if fossil fuel companies are made financially responsible for their externalities in line with the ‘polluter pays’ principle, and the government ends subsidies for coal, according to a new report published by Europe Beyond Coal, Climate Action Network (CAN) Europe, Sustainable Economics and Finance Research Association (SEFiA), WWF-Turkey (World Wildlife Fund), Greenpeace Mediterranean, 350.org and Climate Change Policy and Research Association. 

https://beyond-coal.eu/2021/11/02/new-report-sets-out-roadmap-for-paris-compatible-turkish-coal-power-exit/

Turkey and coal

Overview of Turkey and coal, by Global Energy Monitor.

https://www.gem.wiki/Turkey_and_coal

Brief history

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 Çayırhan 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.

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