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For the second straight year, Cinergy Corp. has been named to the
Dow Jones Sustainability Indexes (DJSI), an international benchmark
for excellence in social, economic and environmental leadership.
Cinergy is one of only three utility companies in the United States,
and 16 in
the world, to be named to the DJSI, which covers the top 10 percent
of the 2,500 largest companies in the world, providing asset managers
with benchmarks to manage sustainability portfolios.
Launched in 1999, the DJSI track the corporate citizenship performance
of the leading sustainability-driven companies worldwide through
detailed surveys that provide a thorough assessment of general and
industry-specific sustainability criteria, which are verified by
an external auditor.
To access Cinergy’s first annual Sustainability Report, visit:
www.cinergy.com/sustainability/
A Voluntary Reduction
Global climate change is perhaps the greatest environmental challenge
for Cinergy as a coal-burning company. It is the sixth largest utility
emitter of CO2 in the United States, burning nearly 30 million tons
of coal in its facilities, which emit 66.5 million tons of CO2 a
year. And while it burns coal because it’s the most economical
way to produce energy, the company also recognizes that it needs
to do so in a way that’s as environmentally benign as possible.
As a result, Cinergy announced in September 2003 a voluntary greenhouse
gas reduction program that calls for the utility to reduce or offset
its greenhouse gas emissions between 2010 and 2012 to levels that
are five percent below 2000. The company also committed to invest
$21 million for seven years on projects that will allow exploration
of the alternative options for reducing CO2 and other greenhouse
gas emissions on its electric generating, transmission and distribution
systems, as well as its natural gas transmission system.
Fourteen projects totaling nearly $3 million have been selected
for 2004 and will provide reductions and offsets of approximately
360,000 tons annually of CO2. Developed in collaboration with Environmental
Defense, the 2004 projects include:
* eight projects that will improve the efficiency of Cinergy’s
electricity generating units;
* three renewable energy projects;
* an energy conservation project in concert with a Cinergy customer;
* a carbon sequestration project;
* the purchase of five hybrid gasoline/electric energy vehicles;
* and a research project to analyze greenhouse gas emissions limitations
and related technology.
In keeping with Cinergy’s plan to spend at least two-thirds
of the $21 million dollars for on-system projects, more than 75
percent of the 2004 money was allocated to projects that will directly
reduce Cinergy’s CO2 emissions. Included are seven heat rate
improvement projects at the company’s generating stations.
The projects are designed to reduce coal consumption by 142,000
tons annually, thus reducing CO2 emissions and other pollutants.
The company is also installing new software at its hydroelectric
facility at Markland Dam in Indiana to increase its efficiency.
Renewable energy projects include donation of a photovoltaic system
for the Cincinnati Zoo’s new education center, as well a photovoltaic
array at PSI Energy’s customer service center in Bloomington,
IN. A wind turbine is being installed at the Wolcott rest area on
Interstate 65 in Indiana.
In the carbon sequestration area, Cinergy is funding the purchase
of trees for a 300-acre reforestation project being managed by the
Nature Conservancy in Harrison County, IN. The project will sequester
approximately 75,000 tons of CO2 annually.
Finally, to create additional tools for analyzing future climate
change policies, Cinergy is funding research by the Electric Power
Research Institute to explore and analyze critical factors in creating
effective, efficient greenhouse gas emissions limitations and technology
policies.
A Public-Private Partnership
at Work
Cinergy Corp., the Kentucky Department of Fish and Wildlife Resources,
Environmental Synergy Inc. and The Conservation Fund are joining
forces to create a market-based conservation solution that will
help offset the environmental impacts of greenhouse gases, provide
new fish and wildlife habitats, and bring recreation-driven economic
benefits to Kentucky. With financial support from Cinergy and the
Kentucky Department of Fish and Wildlife Resources, The Conservation
Fund will acquire and conserve 900 acres for inclusion in the Obion
Creek Wildlife Management Area, protecting critical habitat and
generating new outdoor recreation opportunities such as hiking,
fishing and hunting.
Cinergy’s financial contribution to the Kentucky project is
part of the company’s voluntary greenhouse gas emissions reduction
project.
Cinergy will fund the reforestation of a total of 730 acres from
converted agriculture land to native bottomland hardwood forest.
Over the next 70 years, these trees will capture approximately 292,000
tons of CO2 equivalent from the atmosphere, generating “carbon
credits” that will be retained by Cinergy.
The partnership is intended, said Larry Selzer, president of The
Conservation Fund, as a model for using voluntary and market-driven
approaches to address both climate change and habitat protection.
In addition to the Obion Creek project, Cinergy is a founding partner
in The PowerTree Carbon Co., a multi-million dollar initiative launched
in April to address climate change, improve water quality and restore
critical wildlife habitat across the south. The voluntary consortium
is comprised of 25 leading U.S. energy companies—almost 30
percent of the energy industry—that have committed $3 million
to establish six carbon sequestration projects in Louisiana, Mississippi
and Arkansas. The group will plant enough trees to eventually capture
more than two million tons of CO2 from the atmosphere. Participating
PowerTree companies expect to receive tradable credits for the carbon
that will be locked inside the trees, and either use those credits
to offset emissions or sell them to other companies.
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