November 1 -- The Ministry of Environmental Protection signed agreements regarding the reduction of nitrogen oxide emissions with the big five power generation groups, including Datang International Power Generation (601991.SH,0991.HK), reports China Securities Journal, citing insiders.

According to the 12th Five-Year Plan for emissions reduction and energy savings, nitrogen oxide emissions by 2015 will be reduced by 10 percent from 22.74 million tons in 2010 to 20.46 million tons.

The plan requires all new coal-fired power generation units to install desulfurization and gentrification equipment over the next five years, and units with capacity of more than 300,000 kilowatts are obligated to install such equipment.

During the first half of 2011, total emissions of nitrogen oxide hit 12.07 million tons, up 6.17 percent year-on-year.

According to an industry insider, more than half of the emissions of nitrogen oxide were derived from thermal power generation plants.

Power plants could record slight profits while using desulfurization and gentrification equipment if rebates were to be offered at the beginning of 2012, predicted the insider.

Should the five power generation groups fail to fulfill their obligations, the ministry may impose punitive measures such as witholding the approval of their new projects.