Romanian environmental inspectorate orders closure of two coal plants operating outside EU pollution laws

Last week the Environmental Inspectorate in Hunedoara, Romania demanded the closure of two thermal power plants at Mintia and Paroşeni, because neither of the units complies with air quality requirements of the EU’s Large Combustion Plants Directive (LCPD). Hunedoara Energy Complex, which manages the Mintia and Paroşeni plants, has challenged the decision in court.

After its permit expired [1] in 2010, the Paroşeni unit had received a loan of EUR 32.6 million from the European Investment Bank for the installation of a flue gas desulphurization system, [2] yet the plant has so far failed to install the upgrade. In addition to the EIB loan, Hunedoara Energy Complex received EUR 37.5 million in state aid [3] for the purchase of greenhouse gases emission allowances.

The Mintia plant has been operating without an IPPC permit for over a year, but because of shortfalls nearing EUR 80 million, Hunedoara Energy Complex [4] does not believe it can finance the upgrades.

The Environmental Inspectorate’s decision is not surprising in light of the plant’s track record with previous violations.[5]

Ionut Brigle, campaigner for Bankwatch Romania said: "Coal power plants are the largest source of pollution in Romania, so ensuring compliance with air pollution rules and monitoring emissions is imperative. Hunedoara must suspend activities until it brings its facilities up to par."

Hunedoara Energy Complex consists of the two coal power plants, Mintia and Paroşeni, and four hard coal mines considered viable: Lonea, Livezeni, Lupeni and Vulcan. Although the state aid is intended “to save the company" – as described in the government authorization – the contradiction remains for the company, since most of its employees work in mining divisions, while much of the coal is being imported.[6]

For more information contact:

Ionut Brigle
Campaigner, Bankwatch Romania
ionut.brigle AT bankwatch.org

Notes

[1] Integrated Pollution Prevention and Control (IPPC) Permit
[2]
[3]
[4]
[5]
[6]