Donbasenergo to Sell Emissions Credits.

The thermal generator Donbasenergo (DOEN: HOLD) announced that it planned to earn $4.5m-5m in 2010-2012 by participating in a “joint implementation” project to reduce greenhouse gas emissions, under the Kyoto Protocol. The earned money will be directed to cover interest expenses related to the construction of a new 125 MW power unit at its Slavyansk power plant using CFB technology (expected to cost EUR 100m, to be partially covered by an investment surcharge, and partially by loans). Alexander Paraschiy: DOEN’s ongoing project to introduce CFB technology at another power unit is the first in Ukraine, and this latest announcement supports its profile as the most innovative power generation company in Ukraine. The Kyoto credits would not be an important source of capital for reconstruction, but would allow the company to increase its operating cash flow noticeably. We expect other GenCos to follow DOEN’s lead.