On recordThis profile is no longer actively maintained, with the information now possibly out of date
Send feedback on this profile
Download as PDF
Created on: 2019-11-26 14:52:09
Last update: 2021-08-03 00:00:00 BankTrack & CAN Europe
Share this page:
|Sector||Coal Electric Power Generation, Coal Mining|
About Kınık Coal Power Plant
The Kınık Coal Power Plant, also known as the Eynez Power Station, is a proposed 700-megawatt coal-fired power plant in the Izmir province. Polyak Eynez is the project developer.
The project, which is expected to cost USD 1 billion, also includes plans for the construction of a coal mine in Elmadere. This village lies adjacent to Soma, the location of a coal mine disaster in 2014. The coal power plant is planned for construction in Değirmencieli village (in the Kinik district of Izmir province).
Why this profile?
The planned construction of the Kınık Coal Power Plant will adversely impact both people and planet. Land is already being expropriated for the plant, which will emit more than 130 million tonnes of CO2 into the air, negatively impacting public health and worsening climate change.
What must happen
The Paris Climate Agreement goals require a managed decline of fossil fuel production. The construction of new coal-fired power plants is not compatible with this goal. Banks must immediately stop financing new coal-fired power plant developments anywhere in the world. As such, banks should steer clear of financing this project.
Social and human rights impacts
Health If the Kınık Coal Power Plant becomes operational it will exacerbate already existing air pollution and threaten public health. In the province of Izmir, the annual average of PM10 emissions is above limits set by WHO, the EU and Turkish regulations as hazardous to human health. The Kınık Coal Power Plant will worsen this situation.
Land expropriation The districts in which the coal mine and power plant will be built are already affected and traumatised by mines and mining, having caused the death of 301 mine workers in Soma. Despite this, agricultural, forest and pasture land is being expropriated for the new coal power plant and mine.
Working conditions Miners in Turkey are working under dire circumstances. Even before two major incidents occurred in Turkey (the Soma accident in 2014 and the Ermenek accident in 2014), Turkey recorded more deaths per millions of tonnes mined than China or the United States. The working conditions in the Kınık mine were reported to be very bad, with miners working 10 hours per day for 7 days per week.
Environmental and climate impacts
Greenhouse gas emissions Electricity demand in Turkey is rapidly increasing, and the power industry is the largest source of greenhouse gas emissions. The Kınık Coal Power Plant is expected to emit 113.9 million tonnes of CO2 in its lifetime. If the power plant starts operating, there will be three coal power plants in a 20 kilometre radius with a total capacity of 2,441 MW. These three plants will burn 6.5 million tonnes of coal per year, thereby heavily contributing to climate change.
Ash Turkey's lignite coal produces a great amount of ash. Toxic elements within this ash pollute the air and soil, and could leak into groundwater. The Kınık coal mine and power plant are located in the midst of four villages that will be affected by the ash of the plant. Taken together with the two other coal power plants that are projected to be in operation in the area, 6.2 million tonnes of coal ash will be produced in the area annually.
Water pollution The province of Izmir has multiple rivers constituting important water basins. The Soma coal power plant and the coal washing facilities in Soma are closely located to the source of one of these rivers, and are polluting the entire basin. The planned Kınık Coal Power Plant would also be located on the course of this river, and would therefore worsen these issues.
Turkish bank Garanti BBVA is expected to be involved in financing the Kınık Coal Power Plant as the bank still heavily finances Turkish coal power plants (Garanti BBVA website).
Polyak Eynez is the owner of the Kınık coal project. The company is established through a partnership between Polat Mining and Zhejian Provincial Energy Group. In 2014, Fina Enerji Holding bought 70% of Polat Mining’s shares in Polyak Eynez.
Polyak Enerji'ye 3.5 milyar liralık teşvik
- In September 2011, two companies, Polat Mining and Zheijiang Energy Group created the partnership Polyak Eynez to invest in the Kınık coal project.
- In July 2014, the Turkish Ministry of Economy provided Polyak Eynez with a TRY 478 million (EUR 73 million) fixed investment promotion for the Kınık project. This included customs tax exemptions, an 80% tax reduction and employer's insurance support for seven years.
- In August 2014, Polyak Eynez announced it would invest EUR 100 million in the Kınık mine and plant. The same month it was estimated that the mine would become operational within 30 months and the power plant within five years. This did not happen, potentially due to a lack of finances.
- In May 2016, the Environmental Impact assessment (EIA) for the power plant was started. It was also announced that the power plant would cost TRY 2.5 billion (approximately EUR 380 million).
- In April 2017, the EIA got approved. Later that year, the owner of Polat Mining stated that the power plant would become operational in 2021.
- In 2019, Polyak Eynez announced that they had reached coal in the mine, and that the mine would become fully operational in June 2019.