79Climate & Renewables Market Unit Our Structure Biomass Biomass is another component of our renewables portfolio. E.ON Climate & Renewables owns and operates Steven's Croft, a 44 MW wood-burning power station in Lockerbie, Scotland. The facility, which is one of the U.K.'s largest dedicated biomass plants, generates enough electricity to power 70,000 homes and displaces 140,000 metric tons of CO2. We have 400 MW of biomass projects at various stages of development. Biomethane We're also a leader in biomethane production. Our plant in Schwandorf in southeast Germany, which became operational in 2008, produces biogas from energy crops, upgrades it to pipeline quality, and injects it into the local natural-gas network. We added two new plants in 2009, increasing our biomethane capacity in Germany to more than 40 million cubic meters per year, enough to provide almost 13,000 homes with a renewable, local, climate-neutral supply of gas. The German government aims for biomethane to meet 10 percent of the country's natural gas needs by 2020. Our project pipeline of 200 million cubic meters positions us to be a pacesetter in this fast-growing business. Carbon sourcing E.ON Climate & Renewables also manages our global carbon sourcing business, which encompasses Clean Development Mechanism ("CDM") and Joint Implementation ("JI") projects as defined in Articles 12 and 6 of the Kyoto Protocol. In CDM projects, credits are earned through emission reductions in developing countries; in JI projects, through emission reductions in industrialized countries. E.ON Climate & Renewables leverages E.ON's deep energy expertise in developing JI/CDM projects in its focus regions of Southeast Asia, the Middle East, North Africa, and Russia (see text box on page 82). An example of this is our partnership with Bionersis to develop CDM projects in Southeast Asia to capture landfill gas and use it to generate electricity. You'll find E.ON's consolidated financial statements and related commentary in our 2009 Financial Report. Want to know more about Climate & Renewables? eon.com/renewables Climate & Renewables market unit: generation assets 396 MW North America Wind 1,720 MW U.K. Wind Biomass 245 MW Germany Wind Biogas 208 MW Nordic Wind 52 MW Europe (other) Wind 58 MW Iberia Wind Biogas Small hydro Italy Wind 278 MW