Local field tests will start soon on biodiesel B10, a blend of 10%methyl ester with 90% diesel fuel, according to an Energy Ministry official.
PTT Plc and the ministry's Department of Energy Business are carrying out the tests, which are expected to finish next year. The goal is to widen the choice of fuels available to motorists and increase the share of alternative fuels in the country's overall energy use.
The ministry expects biodiesel B5 to replace all existing B2 in the domestic market by 2011, but B10 use is not expected to be universal until 2022.
The ministry introduced B5 in 2007 and manufacturers of diesel-engine cars last month agreed to accredit the fuel.
"We are preparing well in advance to have a guarantee for the public about the quality of B10 before mandatory use in 2022," said the official.
The national renewable energy plan projects biodiesel use will reach 4.5 mil-lion litres per day, replacing 10% of existing diesel, by 2022.
Ensuring the availability of sufficient raw materials for biodiesel is a key part of the planning process.
"We are in the preparatory stage before the supply of crude palm oil will be enough for the transport sector," said the official."Raw palm now is slightly in surplus in the food sector."
Thailand has a total demand for palmbased methyl ester of 1.8 million litres per day, out of overall methyl ester capacity of 4.4 million litres daily.
Biodiesel B5 is rapidly gaining acceptance, according to statistics from the department. Demand for B5 doubled year-on-year in August to 22.3 million litres per day. However, B2 consumption dropped 24% to 23.4 million litres.
Demand for ethanol-blended petrol (gasohol) rose 16.2% to 11.5 million litres per day in August. Gasohol demand has been increasing steadily since 2006,helped by subsidies of pump prices by the state Oil Fund.
Sunday, September 27, 2009
Time "for new world order"
Venezuelan President Hugo Chavez and Libya's Moammar Gadhafi urged African and South American leaders on Saturday to strive for a new world order countering Western economic dominance.
They spoke on the first day of a 28-nation summit that was long on idealistic speeches but short on concrete steps beyond an agreement to set up a development bank for South America with an intended $20 billion start-up.
"This is the beginning of the salvation of our people," Mr Chavez said in a speech welcoming his guests to the Caribbean island of Margarita.
President Chavez said the meeting,coming just after the UN General Assembly in New York and the G-20 summit in Pittsburgh, would help poor nations rely less on Europe and the US:"The 21st century won't be a bipolar world, it won't be unipolar. It will be multipolar. Africa will be an important geographic, economic and social pole.And South America will be too."
The leftist leader has governed for more than 10 years and says he wants to remain in office for decades more to turn Venezuela into a socialist state.He casts himself as the leader of a global,"anti-imperialist" movement.
Mr Gadhafi, who is celebrating four decades in office and had a white limousine flown to Venezuela to meet him at the airport, echoed his host's message.
"The world isn't the five countries on the UN Security Council," he said.
"The world's powers want to continue to hold on to their power. When they had the chance to help us, they treated us like animals, destroyed our land,"Mr Gadhafi added."Now we have to fight to build our own power."
Other leaders, from influential developing nations like Brazil and South Africa, also gave sweeping, critical summaries of global problems, though in less radical terms. Analysts say Brazil and South Africa's model of businessfriendly economics mixed with a focus on helping the poor is more popular among many African countries than Mr Chavez's revolutionary approach.
The leaders planned to sign a document yesterday urging global bodies like the UN and World Bank to give poor countries more clout.
Mr Chavez, hoping to create an alternative to multilateral lenders like the IMF, said South American countries had agreed to start up a regional development bank, called Banco del Sur,with $20 billion.
"Lula, now we need to find the money!" he joked to Brazilian leader Luiz Inacio Lula da Silva.
On the eve of the summit, Venezuela caused a stir by saying it was working with its ally Iran to find uranium deposits in the South American nation.
A Chavez aide, Jesse Chacon, who is minister of light industry, sought to play down the issue on Saturday.
Mr Chacon told reporters attending the Margarita conference that Venezuela was investigating its mineral deposits with a variety of nations.
"We want nuclear energy for medicine and peaceful purposes," Mr Chacon added.
Analysts say Venezuela is more than a decade away from being able to generate nuclear power.
Mr Chavez says he opposes nuclear weapons but insists the developed world does not have the right to stop other countries from developing nuclear energy for peaceful purposes.
Venezuela's opposition called Mr Chavez irresponsible for reaching out to what it said were unsavoury regimes around the globe.
"Venezuela's dangerous friendship with autocratic and totalitarian governments like Belarus, Sudan, Libya,Zimbabwe, show Mr Chavez's irresponsibility in seeking ties and alliances at any cost, without regard to the pariah state of these regimes," opposition group Mesa Unitaria said.
They spoke on the first day of a 28-nation summit that was long on idealistic speeches but short on concrete steps beyond an agreement to set up a development bank for South America with an intended $20 billion start-up.
"This is the beginning of the salvation of our people," Mr Chavez said in a speech welcoming his guests to the Caribbean island of Margarita.
President Chavez said the meeting,coming just after the UN General Assembly in New York and the G-20 summit in Pittsburgh, would help poor nations rely less on Europe and the US:"The 21st century won't be a bipolar world, it won't be unipolar. It will be multipolar. Africa will be an important geographic, economic and social pole.And South America will be too."
The leftist leader has governed for more than 10 years and says he wants to remain in office for decades more to turn Venezuela into a socialist state.He casts himself as the leader of a global,"anti-imperialist" movement.
Mr Gadhafi, who is celebrating four decades in office and had a white limousine flown to Venezuela to meet him at the airport, echoed his host's message.
"The world isn't the five countries on the UN Security Council," he said.
"The world's powers want to continue to hold on to their power. When they had the chance to help us, they treated us like animals, destroyed our land,"Mr Gadhafi added."Now we have to fight to build our own power."
Other leaders, from influential developing nations like Brazil and South Africa, also gave sweeping, critical summaries of global problems, though in less radical terms. Analysts say Brazil and South Africa's model of businessfriendly economics mixed with a focus on helping the poor is more popular among many African countries than Mr Chavez's revolutionary approach.
The leaders planned to sign a document yesterday urging global bodies like the UN and World Bank to give poor countries more clout.
Mr Chavez, hoping to create an alternative to multilateral lenders like the IMF, said South American countries had agreed to start up a regional development bank, called Banco del Sur,with $20 billion.
"Lula, now we need to find the money!" he joked to Brazilian leader Luiz Inacio Lula da Silva.
On the eve of the summit, Venezuela caused a stir by saying it was working with its ally Iran to find uranium deposits in the South American nation.
A Chavez aide, Jesse Chacon, who is minister of light industry, sought to play down the issue on Saturday.
Mr Chacon told reporters attending the Margarita conference that Venezuela was investigating its mineral deposits with a variety of nations.
"We want nuclear energy for medicine and peaceful purposes," Mr Chacon added.
Analysts say Venezuela is more than a decade away from being able to generate nuclear power.
Mr Chavez says he opposes nuclear weapons but insists the developed world does not have the right to stop other countries from developing nuclear energy for peaceful purposes.
Venezuela's opposition called Mr Chavez irresponsible for reaching out to what it said were unsavoury regimes around the globe.
"Venezuela's dangerous friendship with autocratic and totalitarian governments like Belarus, Sudan, Libya,Zimbabwe, show Mr Chavez's irresponsibility in seeking ties and alliances at any cost, without regard to the pariah state of these regimes," opposition group Mesa Unitaria said.
A NEW ASSET CLASS
Scientific consensus is growing that some floods, droughts and storms over the past decade may have been triggered by activities such as farming, deforestation and burning fuel for transport and manufacturing.
Global alarm over climate change inspired the Kyoto Protocol, which set ambitious targets for reducing greenhouse gas emissions among industrialised nations.
Carbon trading allows these countries to buy reductions in greenhouse gas emissions from other countries with fewer emitting activities - an opportunity that Thailand's business community is becoming alert to. What is carbon trading?
The Kyoto Protocol establishes specific mechanisms for industrialised countries to lower greenhouse gases. Emissions trading allows countries to trade greenhouse gases, which include carbon dioxide (CO
2), methane, nitrous oxide,hydrofluorocarbon, perfluorocarbons and sulphur hexafluoride.
In the Kyoto Protocol, Annex I countries - developed countries that agree to reduce their emissions to below 1990 levels - are given assigned amount units (AAUs), setting the emissions they have to cut.
AAUs can be bought or sold if an Annex 1 country cannot reach its committed reduction in emissions, or if it can cut emissions beyond the level of AAUs assigned to it. The carbon bought and sold is called "carbon credits".
Carbon credits are divided into three categories, according to the three mechanisms they are intended to serve.Emission reduction units (ERUs) are carbon credits resulting from joint implementation (JI) schemes between developed countries investing in projects that will help reduce gases. What is the Clean Development Mechanism?
The CDM is how developed countries assist developing countries in certain projects, such as helping build biogas plants. The gas emissions saved will be transferred in the form of certified emission reductions (CERs) to the developed country that assisted in the project. How are carbon credits calculated?
Greenhouse gases emitted by factories are measured in tonnes per year, with one tonne equalling one CER. If a CER is sold, it is called a "carbon credit",which is measured in tonnes of CO
2equivalent per year.
Carbon credits are bought and sold in the carbon market, which varies in each country. The price of carbon credits is based on negotiation, so there is no calculation formula. The carbon market in Thailand:
Being a non-Annex I country, without an obligation to reduce greenhouse gases,Thailand is allowed to participate in buying and selling carbon credits within the CDM mechanism.
Thailand mostly has bilateral CDM projects jointly invested with developed countries. But some projects are unilateral - without help from Annex I countries. Since Thailand does not have to commit itself to lowering greenhouse gases, demand for CERs comes from foreign buyers.
The Thailand Greenhouse Gas Management Organisation (TGO) was set up in 2007 to promote greenhousegas (GHG) emissions reduction activities in Thailand and to review CDM projects for approval. The process takes an average of 110 to 180 days.
CDM projects approved by the TGO then go to the United Nations Framework Convention on Climate Change (UNFCCC) for further approval for registration.
Up to this point, the process takes between 18 months and two years.Although Thailand has registered 24 CDM projects with the UNFCCC, only two have sold carbon credits. We still have a long way to go:
The TGO has given letters of approval to 90 CDM projects (as of Sept 17,2009),which would save about 5.82 million tonnes of CO
2equivalent per year,according to its calculations.
Of the 90 projects,50.8% are in the renewable biogas sector and 17% are related to biomass. A total of 152 projects are to be proposed for consideration,while 13 are being returned for resubmission. Eight projects are currently under consideration by the TGO.
The figures put Thailand in fourth place when compared with its neighbours for the amount of projects approved by the UNFCCC. Ranking first is Malaysia,followed by the Philippines and Indonesia. Thailand's ranking reflects high transaction and technology costs and the fact that it joined the carbon market after other countries. What are the obstacles?
Business operators in Thailand still lack sufficient understanding of CDM projects, which has resulted in a small total to date.
Due to the projects' high risks and high investment needs, private financial institutions are still not confident about providing loans.
The long wait for investment returns also means that most interested investors are large-scale business operators.
Issuing loans for CDM projects is also something that financial institutions overlook, since they consider money from selling CERs as a byproduct. Many also lack knowledge in certain aspects of CDM projects, which would be helpful in giving advice.
While Thailand does not currently waive taxes for business operators of CDM projects, the topic is under negotiation at the Board of Investment.
Global alarm over climate change inspired the Kyoto Protocol, which set ambitious targets for reducing greenhouse gas emissions among industrialised nations.
Carbon trading allows these countries to buy reductions in greenhouse gas emissions from other countries with fewer emitting activities - an opportunity that Thailand's business community is becoming alert to. What is carbon trading?
The Kyoto Protocol establishes specific mechanisms for industrialised countries to lower greenhouse gases. Emissions trading allows countries to trade greenhouse gases, which include carbon dioxide (CO
2), methane, nitrous oxide,hydrofluorocarbon, perfluorocarbons and sulphur hexafluoride.
In the Kyoto Protocol, Annex I countries - developed countries that agree to reduce their emissions to below 1990 levels - are given assigned amount units (AAUs), setting the emissions they have to cut.
AAUs can be bought or sold if an Annex 1 country cannot reach its committed reduction in emissions, or if it can cut emissions beyond the level of AAUs assigned to it. The carbon bought and sold is called "carbon credits".
Carbon credits are divided into three categories, according to the three mechanisms they are intended to serve.Emission reduction units (ERUs) are carbon credits resulting from joint implementation (JI) schemes between developed countries investing in projects that will help reduce gases. What is the Clean Development Mechanism?
The CDM is how developed countries assist developing countries in certain projects, such as helping build biogas plants. The gas emissions saved will be transferred in the form of certified emission reductions (CERs) to the developed country that assisted in the project. How are carbon credits calculated?
Greenhouse gases emitted by factories are measured in tonnes per year, with one tonne equalling one CER. If a CER is sold, it is called a "carbon credit",which is measured in tonnes of CO
2equivalent per year.
Carbon credits are bought and sold in the carbon market, which varies in each country. The price of carbon credits is based on negotiation, so there is no calculation formula. The carbon market in Thailand:
Being a non-Annex I country, without an obligation to reduce greenhouse gases,Thailand is allowed to participate in buying and selling carbon credits within the CDM mechanism.
Thailand mostly has bilateral CDM projects jointly invested with developed countries. But some projects are unilateral - without help from Annex I countries. Since Thailand does not have to commit itself to lowering greenhouse gases, demand for CERs comes from foreign buyers.
The Thailand Greenhouse Gas Management Organisation (TGO) was set up in 2007 to promote greenhousegas (GHG) emissions reduction activities in Thailand and to review CDM projects for approval. The process takes an average of 110 to 180 days.
CDM projects approved by the TGO then go to the United Nations Framework Convention on Climate Change (UNFCCC) for further approval for registration.
Up to this point, the process takes between 18 months and two years.Although Thailand has registered 24 CDM projects with the UNFCCC, only two have sold carbon credits. We still have a long way to go:
The TGO has given letters of approval to 90 CDM projects (as of Sept 17,2009),which would save about 5.82 million tonnes of CO
2equivalent per year,according to its calculations.
Of the 90 projects,50.8% are in the renewable biogas sector and 17% are related to biomass. A total of 152 projects are to be proposed for consideration,while 13 are being returned for resubmission. Eight projects are currently under consideration by the TGO.
The figures put Thailand in fourth place when compared with its neighbours for the amount of projects approved by the UNFCCC. Ranking first is Malaysia,followed by the Philippines and Indonesia. Thailand's ranking reflects high transaction and technology costs and the fact that it joined the carbon market after other countries. What are the obstacles?
Business operators in Thailand still lack sufficient understanding of CDM projects, which has resulted in a small total to date.
Due to the projects' high risks and high investment needs, private financial institutions are still not confident about providing loans.
The long wait for investment returns also means that most interested investors are large-scale business operators.
Issuing loans for CDM projects is also something that financial institutions overlook, since they consider money from selling CERs as a byproduct. Many also lack knowledge in certain aspects of CDM projects, which would be helpful in giving advice.
While Thailand does not currently waive taxes for business operators of CDM projects, the topic is under negotiation at the Board of Investment.
Thursday, September 24, 2009
GOVT URGED TO STABILISE ETHANOL COSTS
Ethanol manufacturers are calling for the government to increase ethanol reserves to stabilise production costs, which have risen in line with sugar prices and thus affected oil retailers.
"We've already proposed this solution to the government, but they don't seem very interested. They prefer we store ethanol ourselves instead of crops, but that requires an investment in tanks, which in turn risks evaporation and explosion," said Thai Ethanol Manufacturing Association chairman Sirivuthi Siamphakdee.
He said it was easier to store molasses, the main raw material in ethanol production.
Thailand's promotion of gasohol will not be successful unless the government solves fluctuations in the price of ethanol, Sirivuthi said. The Energy Ministry fixed the price at Bt20.21 a litre this month, but that will probably rise to Bt25 or Bt26 in the fourth quarter, due mainly to an increase in the price of molasses.
Oil retailers who mix 10-per-cent ethanol into gasohol products complain the high prices are preventing them from lowering their retail oil rates when global crude drops.
"Thailand's ethanol price changes too rapidly, because the government announces the reference price each month based on the average molasses price over the previous three months, which is not up to date with present conditions. Instead, it should set the price on a quarterly basis," he said.
He said molassas was now going for US$140 (Bt4,700) per tonne, but the Office of the Cane and Sugar Cane Board has announced a price of $110.
Molasses is expected to be more costly next year from reduced supply, and ethanol producers may not be able to handle the pressure of high costs and low selling price, he added.
So far, 45 ethanol plants have won production licences, but only 18 have started operations, with combined daily production capacity of 2.775 million litres. By the end of next year, five more plants are expected to operate, which will boost the country's ethanol supply to 5.695 million litres a day.
However, ethanol consumption is forecast to increase from 1.56 million litres a day now to 2.21 million litres next year, due to the government's promotion of alternative energy.
The price of molasses will move in line with sugar, which is expected to rise in the next couple of years because of higher imports by India and Indonesia, which have suffered drought, said Chalush Chinthammit, assistant vice president for business development and production at the KSL Group.
Next March and April, raw sugar could exceed 20 cents a pound, due to speculation by hedging funds, he said.
Thanks to higher prices in the 2009-10 harvest season, about 72 million tonnes of sugar cane is expected, up from 66.46 million tonnes in the previous season. The primary price of sugar cane will be Bt950 a tonne, but future increases will push sugar cane to about Bt1.1 billion per tonne.
"Oil retailers complain the high prices are preventing them from lowering their retail oil rates when global crude drops."
"We've already proposed this solution to the government, but they don't seem very interested. They prefer we store ethanol ourselves instead of crops, but that requires an investment in tanks, which in turn risks evaporation and explosion," said Thai Ethanol Manufacturing Association chairman Sirivuthi Siamphakdee.
He said it was easier to store molasses, the main raw material in ethanol production.
Thailand's promotion of gasohol will not be successful unless the government solves fluctuations in the price of ethanol, Sirivuthi said. The Energy Ministry fixed the price at Bt20.21 a litre this month, but that will probably rise to Bt25 or Bt26 in the fourth quarter, due mainly to an increase in the price of molasses.
Oil retailers who mix 10-per-cent ethanol into gasohol products complain the high prices are preventing them from lowering their retail oil rates when global crude drops.
"Thailand's ethanol price changes too rapidly, because the government announces the reference price each month based on the average molasses price over the previous three months, which is not up to date with present conditions. Instead, it should set the price on a quarterly basis," he said.
He said molassas was now going for US$140 (Bt4,700) per tonne, but the Office of the Cane and Sugar Cane Board has announced a price of $110.
Molasses is expected to be more costly next year from reduced supply, and ethanol producers may not be able to handle the pressure of high costs and low selling price, he added.
So far, 45 ethanol plants have won production licences, but only 18 have started operations, with combined daily production capacity of 2.775 million litres. By the end of next year, five more plants are expected to operate, which will boost the country's ethanol supply to 5.695 million litres a day.
However, ethanol consumption is forecast to increase from 1.56 million litres a day now to 2.21 million litres next year, due to the government's promotion of alternative energy.
The price of molasses will move in line with sugar, which is expected to rise in the next couple of years because of higher imports by India and Indonesia, which have suffered drought, said Chalush Chinthammit, assistant vice president for business development and production at the KSL Group.
Next March and April, raw sugar could exceed 20 cents a pound, due to speculation by hedging funds, he said.
Thanks to higher prices in the 2009-10 harvest season, about 72 million tonnes of sugar cane is expected, up from 66.46 million tonnes in the previous season. The primary price of sugar cane will be Bt950 a tonne, but future increases will push sugar cane to about Bt1.1 billion per tonne.
"Oil retailers complain the high prices are preventing them from lowering their retail oil rates when global crude drops."
Wednesday, September 23, 2009
A piece of the action
And the crowd went wild as Steve "President for Life" Jobs of Apple Computer came out on the stage to emcee the now-annual September music sales pitch, with loads of new stuff; in the biggest news, the iPod Nano got a video camera and FM radio, and Steve showed off the new iTunes Ver 9 management software; he also showed off the iPhone OS 3.1, available for download, which actually recommends apps you might like, has better synching for music and video, and lets you save video from email attachments into your playlist, aka Camera Roll.
Apple cut the prices of its old iPod models just hours ahead of announcing new iPod models; the price of the 32-gigabyte iPod Touch was cut $120 to $279, or 9,500 baht in real money; a 120-gig iPod Classic now costs $229, a $20 cut by the generous folks who run Apple. Palm introduced a smaller,cheaper smartphone than the successful Pre; the Pixi, as it's called, is aimed at younger users; it's slimmer, has a smaller screen, but features a Qwerty keyboard,8GB of memory and a two-megapixel camera.
US President Barack Obama, in a controversial school-time speech to most US children, advised them to be careful about what they put on Facebook and other social networks;"Whatever you do, it will be pulled up again later somewhere in your life," he warned.
First Solar of America signed a contract with the Chinese government to build the world's largest solar power plant in Inner Mongolia; assuming it is built, the Ordos City plant will push out 2,000 megawatts of electricity,around four times the size of the projects being built by the US Army in the Mojave Desert and by First Solar in California;the China project isn't near anything much; Ordos City is a coal-producing,eight-year-old, planned low-carbon development with about 1.5 million residents, roughly 800km west of Beijing.
Networking firm Huawei of China,which has suffered a scandal or two in its Thailand work, was stung to the quick by mean stories in the Australian media that it might be tied to the Chinese espionage services; Guo Fulin, managing director of Huawei in Australia, was hurt by the insensitive stories that his company was under investigation by the Australian Security Intelligence Organisation; Huawei is a public-owned company, he said, and it is unthinkable that any government agency would be using Huawei to conduct spying.
The government of Cuba took a huge security gamble, and authorised post offices to provide Internet access to the public - just in case the Cuban government ever authorises the public to use the Internet at some point in the future; the only public access currently allowed is to an inside-Cuba intranet for email, provided by post offices at a cost of the equivalent of 55 baht an hour, in a country where the average wage is 680 baht a month.
Japan fired an unmanned cargo craft into orbit; the 16.5-tonne unmanned H-II Transfer Vehicle (HTV) is on a mission to re-supply the space station;it will stay up there to continue ferrying stuff to the US shuttle fleet next year.
Prime Minister Gordon Brown publicly apologised for the way that people treated World War Two code-breaker and extraordinary computer geek Alan Turing for being gay; Turing was prosecuted for homosexual conduct in 1952,and a mere two years later, he committed suicide;"I am pleased to have the chance how deeply sorry I and we all are," said Mr Brown.
Google , which plans to give away grazillions of books in order to get the (commercial) goods on its customers,offered to let all its opponents have a piece of the action;Amazon.com , which wants to sell grazillions of books to make tonnes of money directly, scoffed.Rupert Murdoch, the American media mogul, began collecting money at the tollgate to his news sites, in an interesting experiment to see if people will actually pay for news on the Net.
IBM, Microsoft, Oracle Corp and Google all responded to a plaintive "Help" from the Newspaper Association of America on how to get money from customers who don't want to pay for news; Randy Bennett, who is the senior president for vice in newspapers, said he's looking over 11 different proposals on how to squeeze money out of you;Google, to no one's surprise, offered to put all newspapers behind one vast,semi-expensive firewall, because that would be so convenient for everyone to just pay one company one time, and then Google would spread the money around; sure, that ought to work.
South African technology firm Unlimited IT dispatched Winston, a pigeon,from its office in Pietermaritzburg, with some data for its main hub in Durban strapped to the bird's leg; it took Winston one hour and eight minutes to fly the data card; meanwhile, Unlimited IT tried to send the same data via the speedchallenged Internet connections provided by leading Internet Telkom , and that download was four percent finished by the time Winston arrived; so it's not only countries that start with "T" that have Internet problems.
T-Mobile of Germany and Orange of France merged their yuppiephone operations in Britain, creating a new $13.5 billion company with 28.4 mobile phone customers; the Deutsche Telekom-France Telecom venture will be the biggest provider in the UK, with a 37 percent market share, larger than O2 of Telefonica.
Apple cut the prices of its old iPod models just hours ahead of announcing new iPod models; the price of the 32-gigabyte iPod Touch was cut $120 to $279, or 9,500 baht in real money; a 120-gig iPod Classic now costs $229, a $20 cut by the generous folks who run Apple. Palm introduced a smaller,cheaper smartphone than the successful Pre; the Pixi, as it's called, is aimed at younger users; it's slimmer, has a smaller screen, but features a Qwerty keyboard,8GB of memory and a two-megapixel camera.
US President Barack Obama, in a controversial school-time speech to most US children, advised them to be careful about what they put on Facebook and other social networks;"Whatever you do, it will be pulled up again later somewhere in your life," he warned.
First Solar of America signed a contract with the Chinese government to build the world's largest solar power plant in Inner Mongolia; assuming it is built, the Ordos City plant will push out 2,000 megawatts of electricity,around four times the size of the projects being built by the US Army in the Mojave Desert and by First Solar in California;the China project isn't near anything much; Ordos City is a coal-producing,eight-year-old, planned low-carbon development with about 1.5 million residents, roughly 800km west of Beijing.
Networking firm Huawei of China,which has suffered a scandal or two in its Thailand work, was stung to the quick by mean stories in the Australian media that it might be tied to the Chinese espionage services; Guo Fulin, managing director of Huawei in Australia, was hurt by the insensitive stories that his company was under investigation by the Australian Security Intelligence Organisation; Huawei is a public-owned company, he said, and it is unthinkable that any government agency would be using Huawei to conduct spying.
The government of Cuba took a huge security gamble, and authorised post offices to provide Internet access to the public - just in case the Cuban government ever authorises the public to use the Internet at some point in the future; the only public access currently allowed is to an inside-Cuba intranet for email, provided by post offices at a cost of the equivalent of 55 baht an hour, in a country where the average wage is 680 baht a month.
Japan fired an unmanned cargo craft into orbit; the 16.5-tonne unmanned H-II Transfer Vehicle (HTV) is on a mission to re-supply the space station;it will stay up there to continue ferrying stuff to the US shuttle fleet next year.
Prime Minister Gordon Brown publicly apologised for the way that people treated World War Two code-breaker and extraordinary computer geek Alan Turing for being gay; Turing was prosecuted for homosexual conduct in 1952,and a mere two years later, he committed suicide;"I am pleased to have the chance how deeply sorry I and we all are," said Mr Brown.
Google , which plans to give away grazillions of books in order to get the (commercial) goods on its customers,offered to let all its opponents have a piece of the action;Amazon.com , which wants to sell grazillions of books to make tonnes of money directly, scoffed.Rupert Murdoch, the American media mogul, began collecting money at the tollgate to his news sites, in an interesting experiment to see if people will actually pay for news on the Net.
IBM, Microsoft, Oracle Corp and Google all responded to a plaintive "Help" from the Newspaper Association of America on how to get money from customers who don't want to pay for news; Randy Bennett, who is the senior president for vice in newspapers, said he's looking over 11 different proposals on how to squeeze money out of you;Google, to no one's surprise, offered to put all newspapers behind one vast,semi-expensive firewall, because that would be so convenient for everyone to just pay one company one time, and then Google would spread the money around; sure, that ought to work.
South African technology firm Unlimited IT dispatched Winston, a pigeon,from its office in Pietermaritzburg, with some data for its main hub in Durban strapped to the bird's leg; it took Winston one hour and eight minutes to fly the data card; meanwhile, Unlimited IT tried to send the same data via the speedchallenged Internet connections provided by leading Internet Telkom , and that download was four percent finished by the time Winston arrived; so it's not only countries that start with "T" that have Internet problems.
T-Mobile of Germany and Orange of France merged their yuppiephone operations in Britain, creating a new $13.5 billion company with 28.4 mobile phone customers; the Deutsche Telekom-France Telecom venture will be the biggest provider in the UK, with a 37 percent market share, larger than O2 of Telefonica.
NATIONAL ENERGY PANEL MULLS INCREASING MARGINS FOR RETAILERS
The National Energy Policy Committee will review oil retailers' marketing margins to see if there is a possibility of increasing it from Bt1.50 to Bt2.20 per litre owing to rising investment costs, a source from the committee said yesterday. According to a study by the Energy Policy and Planning Office, the new margin is based on a 12 per cent return on investment for a medium-sized two-rai petrol station.
However, the source said this rate does not take into account returns on non-oil businesses such as convenience stores or car-cleaning services.
The study also pointed out that the margin for liquefied petroleum gas (LPG) should be raised from Bt3.257 to Bt3.03 per kilogram.
"The office has presented the study, but we will discuss if it |could be used as an official reference point at the meeting," the source said.
The committee will also consider incentives to boost consumption of E85 gasohol, which could prompt the Oil Fund to increase the subsidy from Bt7.13 per litre to Bt10.
The higher subsidy would lower the cost of the high-ethanol-content fuel by Bt3 per litre from Bt22.72 at present.
The panel will also consider raising the Oil Fund's budget to convert LPG taxis to ones driven by natural gas for vehicles (NGV) and the pricing structure for purple oil - the high-sulphur oil used for small fishing boats.
However, the source said this rate does not take into account returns on non-oil businesses such as convenience stores or car-cleaning services.
The study also pointed out that the margin for liquefied petroleum gas (LPG) should be raised from Bt3.257 to Bt3.03 per kilogram.
"The office has presented the study, but we will discuss if it |could be used as an official reference point at the meeting," the source said.
The committee will also consider incentives to boost consumption of E85 gasohol, which could prompt the Oil Fund to increase the subsidy from Bt7.13 per litre to Bt10.
The higher subsidy would lower the cost of the high-ethanol-content fuel by Bt3 per litre from Bt22.72 at present.
The panel will also consider raising the Oil Fund's budget to convert LPG taxis to ones driven by natural gas for vehicles (NGV) and the pricing structure for purple oil - the high-sulphur oil used for small fishing boats.
Monday, September 21, 2009
Experts wary of energy-crop drive
The government needs to have a clear management plan for distinguishing cultivation areas between energy and food crops to prevent possible adverse impacts on food security and the overall food industry in which Thailand is currently a key producer, say industry executives.
"The idea to develop the region as an export hub for biofuels and alternative fuels is viable, given plenty of raw materials for producing biofuels, but what the food industry is concerned is that this may lead to head-on competition in the future between land for growing energy crops and for food," said Paiboon Ponsuwanna, chairman of the food industry club of the Federation of Thai Industries.
"A wide-ranging debate is a must to determine what types of crops we are going to invest in and where and how many plantation areas we need to grow energy crops, otherwise it would severely hit the raw material supply to the Thai food industry."
Apichart Jongskul, secretary-general of the Office of Agricultural Economics (OAE), said the region had high capacity to produce alternative energy given its diversity of energy crops, but production for export would definitely bring about problems later.
The plan would definitely affect food crops and regional food security, he added.
"Producing biodiesel locally to replace imported oil is completely unlikely," Mr Apichart said."What is possible is that the we should rather focus on improving national energy security by reducing the dependence on imported oil.
"The government should also come up with a clear commitment on how far we can go to produce alternative fuels to substitute for imported oil. Becoming a hub [for alternative fuel] is sort of a dream."
Pornsil Patchrintanakul, deputy secretary-general of the Thai Chamber of Commerce, agreed that placing too much emphasis on crops as fuel could be dangerous.
Among 10 Asean members, he said,only Brunei and Indonesia currently can produce enough energy for themselves and for export. Other Asean members including Thailand are net importers of fuel oil and natural gas and have yet to cut fuel oil consumption substantially in their own countries.
Any plans to produce energy for export are unlikely to work and what the region should focus on is alternative energy to substitute for imported energy, he said.
"I am wondering why the government
does not promote a plan to cut oil imports and shift instead to using earth energy or fuel from heaven such as wind, waves and sunlight in place of 'fuel from hell' such as coal, oil and natural gas,as the fuel from heaven generates no pollution and reduces global warming," said
Mr Pornsil."More importantly, this would also create benefits from carbon credits if it was properly developed."He said Asean members should cooperate to produce alternative energy for the best benefit of the region and to cut energy costs.
"Should the region opt for producing biofuels or alternative fuels for export,we have to compete not only with natural gas but also the biggest alternative energy producing countries such as Brazil," he added.
"We have to think twice about whether it's worth the investment, as the initiative will undeniably eat into arable land for food crops."
"The idea to develop the region as an export hub for biofuels and alternative fuels is viable, given plenty of raw materials for producing biofuels, but what the food industry is concerned is that this may lead to head-on competition in the future between land for growing energy crops and for food," said Paiboon Ponsuwanna, chairman of the food industry club of the Federation of Thai Industries.
"A wide-ranging debate is a must to determine what types of crops we are going to invest in and where and how many plantation areas we need to grow energy crops, otherwise it would severely hit the raw material supply to the Thai food industry."
Apichart Jongskul, secretary-general of the Office of Agricultural Economics (OAE), said the region had high capacity to produce alternative energy given its diversity of energy crops, but production for export would definitely bring about problems later.
The plan would definitely affect food crops and regional food security, he added.
"Producing biodiesel locally to replace imported oil is completely unlikely," Mr Apichart said."What is possible is that the we should rather focus on improving national energy security by reducing the dependence on imported oil.
"The government should also come up with a clear commitment on how far we can go to produce alternative fuels to substitute for imported oil. Becoming a hub [for alternative fuel] is sort of a dream."
Pornsil Patchrintanakul, deputy secretary-general of the Thai Chamber of Commerce, agreed that placing too much emphasis on crops as fuel could be dangerous.
Among 10 Asean members, he said,only Brunei and Indonesia currently can produce enough energy for themselves and for export. Other Asean members including Thailand are net importers of fuel oil and natural gas and have yet to cut fuel oil consumption substantially in their own countries.
Any plans to produce energy for export are unlikely to work and what the region should focus on is alternative energy to substitute for imported energy, he said.
"I am wondering why the government
does not promote a plan to cut oil imports and shift instead to using earth energy or fuel from heaven such as wind, waves and sunlight in place of 'fuel from hell' such as coal, oil and natural gas,as the fuel from heaven generates no pollution and reduces global warming," said
Mr Pornsil."More importantly, this would also create benefits from carbon credits if it was properly developed."He said Asean members should cooperate to produce alternative energy for the best benefit of the region and to cut energy costs.
"Should the region opt for producing biofuels or alternative fuels for export,we have to compete not only with natural gas but also the biggest alternative energy producing countries such as Brazil," he added.
"We have to think twice about whether it's worth the investment, as the initiative will undeniably eat into arable land for food crops."
IN SEARCH OF A BIOFUEL BONANZA
Thailand wants Asean to take the lead in creating and controlling the market for alternative fuels, but political and environmental challenges are daunting. By Yuthana Praiwan
In recent decades, the petroleumrich Middle East lapped up profits from parts of the world that lack that vital resource.Now that global supplies of oil are dwindling, Thailand believes Asean's agriculture sector has the potential to become a leader in biofuels.
Following the Middle East's Organisation for Petroleum Exporting Countries (Opec), Thailand's Energy Ministry has pitched an "Opec for Biofuels" to its Asean friends.
Biofuels are defined as liquid or gas fuels derived from biomass including crops, and they produce far lower carbon emissions than fossil fuels such as coal and petroleum.
Sarawut Kaewthip, senior planning and policy analyst from the Energy Ministry, said some countries in the region clearly had vast potential to become major exporters of biofuels, but there was still a long way to go before the region could create the equivalent of an Opec for the commodity.
"The collaboration must be very close between leading producers Indonesia,Malaysia and Thailand. It could take many years of price increases and drops for them to learn how to control the market," said Dr Sarawut.
World trade conditions have also changed dramatically since the formation of Opec, making a biofuel cartel tougher to arrange for policymakers and private operators, said Dr Sarawut.
"The Thai government sees the readiness and plentifulness of biofuel resources not used for food production.From now on the three big players have to co-develop their resources to set up an Opec of biofuels and also prevent deforestation," he said.
"But we have to accept that biofuel cannot completely replace fossil oil;biofuels are only another choice for countries that want to reduce dependency on oil imports or cut greenhouse gases."
The Energy Ministry and the International Energy Agency both expect that biofuels could replace up to 25%of fossil oils in the transport sector by 2030, a significant leap from 1.5% this year.
Biofuels could supply 30 million barrels per day 20 years from now compared to total fossil oil demand today of 85-86 million bpd.
"If Asean could limit biofuel production in Asia-Pacific to only 500,000 to 600,000 barrels of supply, we could dominate the regional price," Dr Sarawut said.
"But how many years or decades from now that happens depend on the attention devoted by each government and the private sector.
"Thailand is the world's largest exporter of cassava and second largest for sugar, but there is no value added to these commodities. If you develop them to be ethanol and biofuels we can sell them at a higher price and a higher margin."
He said Brazil controlled ethanol prices as the world's largest exporter and it could be a major partner to Asean as Brazil emphasises the Atlantic Ocean market while Asean would focus on the Pacific.
Biofuel development is tough but needs to be done quickly, said Capt Dr Samai Jai-Indr, an energy expert with the Royal Thai Navy and a member of the House of Representatives Energy Committee.
He warned that industrialised countries would keep their eyes on the biofuels industry.
Europe, the United States and East Asia will never welcome biofuels unless they can secure their own resources in some way, he said.
"The companies that benefit from exploration and production in the Middle East - the US's Chevron, Royal Dutch Shell from the Netherlands and Britain, Total of France, BP of Britain and Mitsubishi of Japan - are all from developed countries that dominate the natural resources of other countries,"said Dr Samai.
"They may move fast to control world fuel plantation areas including those here in Asean. If [developed countries]can't control the industry, they would seek ways such as human rights, the environment or increased food prices to slow demand in the industry because otherwise they would have to depend on imported biofuels.
"Look at Brazil for an example. Its private and public sectors withstood complaints by developed countries that Brazil's sugarcane plantations demolished parts of the Amazon forest."
Now some developed countries buy biofuel resources in Africa and Latin America.
Dr Samai suggested biofuel producers explore opportunities in Burma and Indochina, as they possess the proper climate for fuel crops and have low labour costs.
Meanwhile, Srihasak Arirachakaran,executive director of Thai Agro Ethanol,one of the first ethanol producers in Thailand, hopes to see an organisation materialise.
"Yet these are very much rhetorical,academic questions as there are many hurdles to overcome, not just the wills of leaders," said Dr Srihasak.
Thailand is in an early stage of biofuel development as the cost of production is still too high and the whole industry needs to develop from upstream to downstream, said Dr Srihasak.
"It is important to consider crop yields, proximity, sourcing and distribution. In the meantime, each government needs to monitor closely what it needs and what it can export to assure sufficient supply for the region. This is not difficult if ministers co-operate."
Biofuels are appropriate for mature economies such as Europe, Japan and North America, where governments are tackling emission problems by replacing fossil fuels with biofuels and subsidising green fuel prices, said Dr Srihasak.
While the Thai government believes in the fast development of the techno-
ogy, Dr Sarawut points out that the new generation of biofuel technology should focus on making it commercially viable.
Malaysia and Indonesia,the world's largest and secondSamai: Developed largest exporters nations seek control of palm oil, have shown interest in an Asean biofuel Opec.
Dadan Kusdiana, Indonesia's Ministry of Energy and Mineral Resources representative, said Indonesia was ready to collaborate with other countries, particularly the Asean region.
Biofuels development is on the national agenda as Indonesia hopes to not only curb fossil fuel imports but also improve local employment and standards of living.
Indonesia set a target for renewable energy of 17% of total energy use in 2025 by providing incentives for investment and subsidising costs for some types of renewables.
"There is no deforestation here and we are researching ways to find efficient land uses and increase productivity,"he said.
Malaysia's Ministry of Plantation Industries and Commodities says its development of biodiesel is aimed at reducing dependence on fossil fuels and protecting the environment, even though using palm oil for biodiesel is not economically viable.
Since 2006, Malaysia has encouraged innovative local biodiesel production technology for normal and winter-area grade biodiesel; namely, Malaysia Palm Oil Biofuel. Now the technology has been exported to Thailand and South Korea.
"The move to develop biofuels does not come from the cost of fossil fuels,but to generate a return for local agriculture and industries involved with this sector," said a Malaysian report.
In recent decades, the petroleumrich Middle East lapped up profits from parts of the world that lack that vital resource.Now that global supplies of oil are dwindling, Thailand believes Asean's agriculture sector has the potential to become a leader in biofuels.
Following the Middle East's Organisation for Petroleum Exporting Countries (Opec), Thailand's Energy Ministry has pitched an "Opec for Biofuels" to its Asean friends.
Biofuels are defined as liquid or gas fuels derived from biomass including crops, and they produce far lower carbon emissions than fossil fuels such as coal and petroleum.
Sarawut Kaewthip, senior planning and policy analyst from the Energy Ministry, said some countries in the region clearly had vast potential to become major exporters of biofuels, but there was still a long way to go before the region could create the equivalent of an Opec for the commodity.
"The collaboration must be very close between leading producers Indonesia,Malaysia and Thailand. It could take many years of price increases and drops for them to learn how to control the market," said Dr Sarawut.
World trade conditions have also changed dramatically since the formation of Opec, making a biofuel cartel tougher to arrange for policymakers and private operators, said Dr Sarawut.
"The Thai government sees the readiness and plentifulness of biofuel resources not used for food production.From now on the three big players have to co-develop their resources to set up an Opec of biofuels and also prevent deforestation," he said.
"But we have to accept that biofuel cannot completely replace fossil oil;biofuels are only another choice for countries that want to reduce dependency on oil imports or cut greenhouse gases."
The Energy Ministry and the International Energy Agency both expect that biofuels could replace up to 25%of fossil oils in the transport sector by 2030, a significant leap from 1.5% this year.
Biofuels could supply 30 million barrels per day 20 years from now compared to total fossil oil demand today of 85-86 million bpd.
"If Asean could limit biofuel production in Asia-Pacific to only 500,000 to 600,000 barrels of supply, we could dominate the regional price," Dr Sarawut said.
"But how many years or decades from now that happens depend on the attention devoted by each government and the private sector.
"Thailand is the world's largest exporter of cassava and second largest for sugar, but there is no value added to these commodities. If you develop them to be ethanol and biofuels we can sell them at a higher price and a higher margin."
He said Brazil controlled ethanol prices as the world's largest exporter and it could be a major partner to Asean as Brazil emphasises the Atlantic Ocean market while Asean would focus on the Pacific.
Biofuel development is tough but needs to be done quickly, said Capt Dr Samai Jai-Indr, an energy expert with the Royal Thai Navy and a member of the House of Representatives Energy Committee.
He warned that industrialised countries would keep their eyes on the biofuels industry.
Europe, the United States and East Asia will never welcome biofuels unless they can secure their own resources in some way, he said.
"The companies that benefit from exploration and production in the Middle East - the US's Chevron, Royal Dutch Shell from the Netherlands and Britain, Total of France, BP of Britain and Mitsubishi of Japan - are all from developed countries that dominate the natural resources of other countries,"said Dr Samai.
"They may move fast to control world fuel plantation areas including those here in Asean. If [developed countries]can't control the industry, they would seek ways such as human rights, the environment or increased food prices to slow demand in the industry because otherwise they would have to depend on imported biofuels.
"Look at Brazil for an example. Its private and public sectors withstood complaints by developed countries that Brazil's sugarcane plantations demolished parts of the Amazon forest."
Now some developed countries buy biofuel resources in Africa and Latin America.
Dr Samai suggested biofuel producers explore opportunities in Burma and Indochina, as they possess the proper climate for fuel crops and have low labour costs.
Meanwhile, Srihasak Arirachakaran,executive director of Thai Agro Ethanol,one of the first ethanol producers in Thailand, hopes to see an organisation materialise.
"Yet these are very much rhetorical,academic questions as there are many hurdles to overcome, not just the wills of leaders," said Dr Srihasak.
Thailand is in an early stage of biofuel development as the cost of production is still too high and the whole industry needs to develop from upstream to downstream, said Dr Srihasak.
"It is important to consider crop yields, proximity, sourcing and distribution. In the meantime, each government needs to monitor closely what it needs and what it can export to assure sufficient supply for the region. This is not difficult if ministers co-operate."
Biofuels are appropriate for mature economies such as Europe, Japan and North America, where governments are tackling emission problems by replacing fossil fuels with biofuels and subsidising green fuel prices, said Dr Srihasak.
While the Thai government believes in the fast development of the techno-
ogy, Dr Sarawut points out that the new generation of biofuel technology should focus on making it commercially viable.
Malaysia and Indonesia,the world's largest and secondSamai: Developed largest exporters nations seek control of palm oil, have shown interest in an Asean biofuel Opec.
Dadan Kusdiana, Indonesia's Ministry of Energy and Mineral Resources representative, said Indonesia was ready to collaborate with other countries, particularly the Asean region.
Biofuels development is on the national agenda as Indonesia hopes to not only curb fossil fuel imports but also improve local employment and standards of living.
Indonesia set a target for renewable energy of 17% of total energy use in 2025 by providing incentives for investment and subsidising costs for some types of renewables.
"There is no deforestation here and we are researching ways to find efficient land uses and increase productivity,"he said.
Malaysia's Ministry of Plantation Industries and Commodities says its development of biodiesel is aimed at reducing dependence on fossil fuels and protecting the environment, even though using palm oil for biodiesel is not economically viable.
Since 2006, Malaysia has encouraged innovative local biodiesel production technology for normal and winter-area grade biodiesel; namely, Malaysia Palm Oil Biofuel. Now the technology has been exported to Thailand and South Korea.
"The move to develop biofuels does not come from the cost of fossil fuels,but to generate a return for local agriculture and industries involved with this sector," said a Malaysian report.
Rocky road ahead to "Green Opec"
Despite certain advantages Asean countries have in producing biofuels,competition remains intense, making the path toward an "Opec of Biofuels"anything but smooth, according to Richard Jones, deputy executive director of the International Energy Agency (IEA).
"I think that would be impossible [for Asean to form an Opec of Biofuels]because, unlike oil, biofuels are based on agriculture and any culture has agricultural potential," Mr Jones said in Bangkok recently.
If supply is not limited, collaborative efforts to control prices would not be feasible, he added.
"But I do think that, as with any traded goods, the countries that have a comparative advantage will be the countries that become the most important producers. I think that in that regard, because of your climate, fertile soils and plenty of water, I think that there will be a comparative advantage."
Apart from being close to large markets such as China, Asean countries have experience in growing the necessary and most appropriate crops for biofuels, he said.
Thailand, however, should switch from producing ethanol from molasses directly to using sugar juice from sugarcane.This would result in achieving full efficiency, said Mr Jones.
Energy Minister Wannarat Channukul said at the recent Bangkok Biofuel 2009 seminar that Asean countries had the potential to be an export hub for biofuels and alternative energy.
Paolo Frankl, head of the IEA's Renewable Energy division, cautions that biofuels will never become widely used in transport.
"I think it's important to realise that biofuels will never substitute for 100%of transport fuels," he said."In the long term, our projection is that they will arrive at 25% by 2050. But they will be an important part of the solution and Asean countries can play a very good role, in particular for regional markets and also to some extent for European markets, but there still will be a difference to Opec."
He explained that this was due to the availability of land resources and environmental challenges.
An integrated approach that looks at the management of natural resources in the most efficient manner possible should be undertaken by Asean countries.
Making sure that biofuel production does not limit the availability of food for the population, for instance, should be the first priority, said Mr Frankl.
Brazil, for instance, burns the leftover residue from the sugarcane used to produce ethanol for power generation for its mills. The excess electricity is then sold.
In the longer term, the task should be to develop more non-food feedstocks through the introduction of secondgeneration technologies. This will require time and international collaboration, said Mr Frankl.
In the meantime, Mr Jones recommended countries in Asean to develop certification procedures not only to overcome non-tariff barriers but also to earn a reputation among consumers.
"Certification can sometimes allow you to charge a premium price for your product if you can point to a certification that shows your feedstocks were raised in an environmentally friendly manner."
For instance, cutting down a forest to make way for sugarcane releases tremendous amounts of carbon dioxide.
"I think that would be impossible [for Asean to form an Opec of Biofuels]because, unlike oil, biofuels are based on agriculture and any culture has agricultural potential," Mr Jones said in Bangkok recently.
If supply is not limited, collaborative efforts to control prices would not be feasible, he added.
"But I do think that, as with any traded goods, the countries that have a comparative advantage will be the countries that become the most important producers. I think that in that regard, because of your climate, fertile soils and plenty of water, I think that there will be a comparative advantage."
Apart from being close to large markets such as China, Asean countries have experience in growing the necessary and most appropriate crops for biofuels, he said.
Thailand, however, should switch from producing ethanol from molasses directly to using sugar juice from sugarcane.This would result in achieving full efficiency, said Mr Jones.
Energy Minister Wannarat Channukul said at the recent Bangkok Biofuel 2009 seminar that Asean countries had the potential to be an export hub for biofuels and alternative energy.
Paolo Frankl, head of the IEA's Renewable Energy division, cautions that biofuels will never become widely used in transport.
"I think it's important to realise that biofuels will never substitute for 100%of transport fuels," he said."In the long term, our projection is that they will arrive at 25% by 2050. But they will be an important part of the solution and Asean countries can play a very good role, in particular for regional markets and also to some extent for European markets, but there still will be a difference to Opec."
He explained that this was due to the availability of land resources and environmental challenges.
An integrated approach that looks at the management of natural resources in the most efficient manner possible should be undertaken by Asean countries.
Making sure that biofuel production does not limit the availability of food for the population, for instance, should be the first priority, said Mr Frankl.
Brazil, for instance, burns the leftover residue from the sugarcane used to produce ethanol for power generation for its mills. The excess electricity is then sold.
In the longer term, the task should be to develop more non-food feedstocks through the introduction of secondgeneration technologies. This will require time and international collaboration, said Mr Frankl.
In the meantime, Mr Jones recommended countries in Asean to develop certification procedures not only to overcome non-tariff barriers but also to earn a reputation among consumers.
"Certification can sometimes allow you to charge a premium price for your product if you can point to a certification that shows your feedstocks were raised in an environmentally friendly manner."
For instance, cutting down a forest to make way for sugarcane releases tremendous amounts of carbon dioxide.
Saturday, September 19, 2009
ASIA POWERS UP
Expo for the whole continent offers Thai investors a chance to glimpse the future of the country's energy supply options, writes Umesh Pandey
Thai investors looking to tap into the growing market for renewable energy and the energy sector overall are set for a treat early next month when the country hosts the Power-Gen Asia exhibition.
The event from Oct 7-9 at Impact Arena, Muang Thong Thani, will draw high-level delegations from China, India and the rest of the region, said Glenn Ensor, event director of Power-Gen Asia.
One day will be dedicated to energy needs in India and ways to tap this market. Mr Ensor stressed the Indian government over the years has relaxed the rules and regulations for importing equipment related to production of electricity and renewable energy.
India and China are hungry for resources and have been blamed as the key drivers for oil prices floating at $70 a barrel despite the global crisis.
India in particular has been powerstarved with a high level of economic growth the past few years.
Mr Ensor said that despite problems that still exist in India, the potential for an energy venture is tremendous.
So far, the highest number of exhibitors has been from China because they focus on outward expansion to export their manufacturing technology, he said.
The quality of the products from China has improved dramatically, while the prices are among the lowest, he added.
Thai companies looking to focus on renewable energy could see several exhibitors from this segment as PowerGen Asia added a separate section for it.
"This is a growing sector and what better place to debut it than Thailand,where the government set an ambitious target of achieving 8% of the country's energy needs from renewable sources by 2011," he said. Currently about 0.5%of energy is from renewable sources.
To meet that target, Mr Ensor said the government has to take the lead in providing the platform and also at times subsidising the high cost.
Citing the example of solar power, he said it costs five times as much to produce a kilowatt of electricity from solar energy than it costs from a fossil fuel source. But with Ensor: Tremendous the gradual depotential for ventures pletion of fossil fuels, the region's pivot to renewable energy has become a hot topic.
As Asian economies take the leading role in helping shore up the global economy, the need for energy continues to rise and some including Thailand are also looking at the nuclear option.
Thailand has been studying plans to undertake nuclear and renewable energy as domestic natural gas resources are sufficient to serve the country's needs for another seven years.
Earlier this month, energy business operators said they wanted to see the use of natural gas for electricity generation cut even lower than the 60%planned under the revised power de-velopment plan (PDP), saying the risk of dependence is still too high.
The plan to cut natural gas use in the power sector to 60% from the current 74% is still not enough to limit the risk of blackouts in the future,said Suvit Limvattanakul, chairman of the Power Producer Industry Club of the Federation of Thai Industries.
The 15-year PDP ending in 2022 also aims to maintain lignite and imported coal usage at 20-21% and increase hydropower purchases from neighbouring countries to 10% from 1%. Nuclear power would account for 5% of the total.
He argued that the prices of imported gas from Burma and liquefied natural gas from Qatar are both higher than gas from the Gulf of Thailand by 20% and 40%, respectively. And too much reliance on gas cuts Thailand's bargaining power.
Power producers will need to import more natural gas unless the country discovers more reserves or shifts to a new source of fuel.
On the Web:http://www.powergenasia.com/index.html
Thai investors looking to tap into the growing market for renewable energy and the energy sector overall are set for a treat early next month when the country hosts the Power-Gen Asia exhibition.
The event from Oct 7-9 at Impact Arena, Muang Thong Thani, will draw high-level delegations from China, India and the rest of the region, said Glenn Ensor, event director of Power-Gen Asia.
One day will be dedicated to energy needs in India and ways to tap this market. Mr Ensor stressed the Indian government over the years has relaxed the rules and regulations for importing equipment related to production of electricity and renewable energy.
India and China are hungry for resources and have been blamed as the key drivers for oil prices floating at $70 a barrel despite the global crisis.
India in particular has been powerstarved with a high level of economic growth the past few years.
Mr Ensor said that despite problems that still exist in India, the potential for an energy venture is tremendous.
So far, the highest number of exhibitors has been from China because they focus on outward expansion to export their manufacturing technology, he said.
The quality of the products from China has improved dramatically, while the prices are among the lowest, he added.
Thai companies looking to focus on renewable energy could see several exhibitors from this segment as PowerGen Asia added a separate section for it.
"This is a growing sector and what better place to debut it than Thailand,where the government set an ambitious target of achieving 8% of the country's energy needs from renewable sources by 2011," he said. Currently about 0.5%of energy is from renewable sources.
To meet that target, Mr Ensor said the government has to take the lead in providing the platform and also at times subsidising the high cost.
Citing the example of solar power, he said it costs five times as much to produce a kilowatt of electricity from solar energy than it costs from a fossil fuel source. But with Ensor: Tremendous the gradual depotential for ventures pletion of fossil fuels, the region's pivot to renewable energy has become a hot topic.
As Asian economies take the leading role in helping shore up the global economy, the need for energy continues to rise and some including Thailand are also looking at the nuclear option.
Thailand has been studying plans to undertake nuclear and renewable energy as domestic natural gas resources are sufficient to serve the country's needs for another seven years.
Earlier this month, energy business operators said they wanted to see the use of natural gas for electricity generation cut even lower than the 60%planned under the revised power de-velopment plan (PDP), saying the risk of dependence is still too high.
The plan to cut natural gas use in the power sector to 60% from the current 74% is still not enough to limit the risk of blackouts in the future,said Suvit Limvattanakul, chairman of the Power Producer Industry Club of the Federation of Thai Industries.
The 15-year PDP ending in 2022 also aims to maintain lignite and imported coal usage at 20-21% and increase hydropower purchases from neighbouring countries to 10% from 1%. Nuclear power would account for 5% of the total.
He argued that the prices of imported gas from Burma and liquefied natural gas from Qatar are both higher than gas from the Gulf of Thailand by 20% and 40%, respectively. And too much reliance on gas cuts Thailand's bargaining power.
Power producers will need to import more natural gas unless the country discovers more reserves or shifts to a new source of fuel.
On the Web:http://www.powergenasia.com/index.html
GREEN HURDLES LOOM FOR EIGHT PROJECTS
Upstream and downstream petrochemical plants as well as nuclear power plants are on the list of eight industrial projects with a "serious impact" on local communities that was recently issued by the Industry Ministry.
Appearing on the list means these projects must pass health-impact assessments, receive local communities' endorsement in a hearing and win approval from an independent environmental body to be set up by the Natural Resource and Environment Ministry under the auspices of Article 67 of the Constitution.
The other six project activities covered by the list are underground mining; lead and zinc mines; chemical-based mineral dissolving and upstream steel production with daily minimum capacity of 20,000 tonnes; industrial estates for upstream steel production or upstream to midstream petrochemical plants; dumping sites and kilns for hazardous wastes; and fossil-fuel power plants (except gas-fired plants) with minimum capacity of 100 megawatts.
Vice Industry Minister Sorayud Petchtrakul yesterday said Minister Charnchai Chairungrueng had endorsed the list this past Monday.
"We have no choice but to issue the list, in order to comply with the law," he said.
Department director-general Witoon Simachokedee said his agency had already approved operating licences for 12 projects with a combined value of Bt59 billion.
So far, only PTT's gas-separation plant, which is not on the list of serious-impact activities, is awaiting department approval.
LAWSUIT
Nevertheless, even though the list has been declared, in accordance with the government's resolution, the projects can proceed in the absence of the independent environment body.
Suthi Atchasai, coordinator of a citizens' network on the Eastern Seaboard, yesterday said the network would soon file suit against the National Environmental Board for approving the environmental impact assessment for 55 projects slated for the industrialised zone in Rayong's Map Ta Phut.
Most of those projects are petrochemical projects of PTT, the Siam Cement Group and Dow Chemical.
Prime Minister Abhisit Vejjajiva yesterday told villagers from Map Ta Phut that not all of the 55 projects in the area were causing environmental problems. Villagers should consider each on a case-by-case basis.
He insisted there should not be a consensus that investment in Map Ta Phut must be frozen.
"Personally, some of them can proceed," he said.
He also mentioned the possibility of declaring Map Ta Phut a special administrative zone. With its own autonomy, the zone would demonstrate unity and "speedy and united" decisions, Abhisit said.
He also believes public access to the zone will be granted. However, a law must be enforced to push through the idea.
Abhisit said he was pushing for a conclusion to determine if Map Ta Phut should become a special administrative zone.
He said government measures to contain the environmental impact in Map Ta Phut would be designed in a framework that could be enforced in other areas.
Appearing on the list means these projects must pass health-impact assessments, receive local communities' endorsement in a hearing and win approval from an independent environmental body to be set up by the Natural Resource and Environment Ministry under the auspices of Article 67 of the Constitution.
The other six project activities covered by the list are underground mining; lead and zinc mines; chemical-based mineral dissolving and upstream steel production with daily minimum capacity of 20,000 tonnes; industrial estates for upstream steel production or upstream to midstream petrochemical plants; dumping sites and kilns for hazardous wastes; and fossil-fuel power plants (except gas-fired plants) with minimum capacity of 100 megawatts.
Vice Industry Minister Sorayud Petchtrakul yesterday said Minister Charnchai Chairungrueng had endorsed the list this past Monday.
"We have no choice but to issue the list, in order to comply with the law," he said.
Department director-general Witoon Simachokedee said his agency had already approved operating licences for 12 projects with a combined value of Bt59 billion.
So far, only PTT's gas-separation plant, which is not on the list of serious-impact activities, is awaiting department approval.
LAWSUIT
Nevertheless, even though the list has been declared, in accordance with the government's resolution, the projects can proceed in the absence of the independent environment body.
Suthi Atchasai, coordinator of a citizens' network on the Eastern Seaboard, yesterday said the network would soon file suit against the National Environmental Board for approving the environmental impact assessment for 55 projects slated for the industrialised zone in Rayong's Map Ta Phut.
Most of those projects are petrochemical projects of PTT, the Siam Cement Group and Dow Chemical.
Prime Minister Abhisit Vejjajiva yesterday told villagers from Map Ta Phut that not all of the 55 projects in the area were causing environmental problems. Villagers should consider each on a case-by-case basis.
He insisted there should not be a consensus that investment in Map Ta Phut must be frozen.
"Personally, some of them can proceed," he said.
He also mentioned the possibility of declaring Map Ta Phut a special administrative zone. With its own autonomy, the zone would demonstrate unity and "speedy and united" decisions, Abhisit said.
He also believes public access to the zone will be granted. However, a law must be enforced to push through the idea.
Abhisit said he was pushing for a conclusion to determine if Map Ta Phut should become a special administrative zone.
He said government measures to contain the environmental impact in Map Ta Phut would be designed in a framework that could be enforced in other areas.
HIGH DEMAND FOR CLEAN COAL BUOYS SCT
SCT, the international trading arm of Siam Cement Group, Thailand's largest industrial conglomerate, expects revenue from its coal business this year to be almost the same as last year, at Bt10 billion, because major customers have slowed their orders.
However, its profit this year is expected to be higher than last year due to the high margin from small customers. The number of small clients this year has increased by 30 per cent from last year.
Kalin Sarasin, managing director of SCT, said that small customers who are in the food and cloth-dye industries want quality coal because they are concerned over the environment, adding that clean coal helps manufacturers deal with their communities.
"Our steam coal has high quality, and the increase in small clients should offset the declining volume from major clients. Moreover, the price of coal sold to the Philippines, Cambodia and Vietnam is not down by much," he said.
Kalin said SCT's sales volume this year might be 3 million tones, down from 3.5 million last year.
He added that the recovery of the global economy would drive the company's sales volume and revenue by 40 per cent to 50 per cent next year.
Steam coal accounts for 20 per cent of SCT's business.
Its major clients are in the domestic market, representing 90 per cent, with 10 per cent in overseas markets. But the company plans to increase overseas revenue in the future, with exports to get closer to domestic sales.
The company plans to invest around Bt120 million to set up four steam coal hubs, including screening coal plants in Vietnam, China, Malaysia and the Philippines to serve the demand of industries there.
The coal hubs will be completed in the third quarter of next year, he said. SCT has two existing coal hubs in Thailand, at Ayutthaya and Samut Sakhon, and three in Vietnam, the Philippines and Cambodia.
The company will next year sign long-term international coal-purchasing contracts with international firms to assure a healthy coal stockpile in preparation for the recovery of the global economy.
In addition, Kalin said that a pilot project of coal-water mixture (CWM) - a mixture of pulverised coal and water with a very small quantity of additive chemical - would start commercial trading next year.
CWM is an alternative to heavy fuel oil for use in boilers in manufacturing plants. SCT can produce 50,000 litres of the material annually.
Kalin said the company would consider expanding production size when global oil prices rise above US$70 (Bt2,352) a barrel, as this would persuade manufacturers to use the coal mixture, which would cost 20-per-cent less than fuel oil.
Kalin added that the company was also importing bio-mass from Singapore, another alternative fuel favoured by both domestic and international small clients.
However, its profit this year is expected to be higher than last year due to the high margin from small customers. The number of small clients this year has increased by 30 per cent from last year.
Kalin Sarasin, managing director of SCT, said that small customers who are in the food and cloth-dye industries want quality coal because they are concerned over the environment, adding that clean coal helps manufacturers deal with their communities.
"Our steam coal has high quality, and the increase in small clients should offset the declining volume from major clients. Moreover, the price of coal sold to the Philippines, Cambodia and Vietnam is not down by much," he said.
Kalin said SCT's sales volume this year might be 3 million tones, down from 3.5 million last year.
He added that the recovery of the global economy would drive the company's sales volume and revenue by 40 per cent to 50 per cent next year.
Steam coal accounts for 20 per cent of SCT's business.
Its major clients are in the domestic market, representing 90 per cent, with 10 per cent in overseas markets. But the company plans to increase overseas revenue in the future, with exports to get closer to domestic sales.
The company plans to invest around Bt120 million to set up four steam coal hubs, including screening coal plants in Vietnam, China, Malaysia and the Philippines to serve the demand of industries there.
The coal hubs will be completed in the third quarter of next year, he said. SCT has two existing coal hubs in Thailand, at Ayutthaya and Samut Sakhon, and three in Vietnam, the Philippines and Cambodia.
The company will next year sign long-term international coal-purchasing contracts with international firms to assure a healthy coal stockpile in preparation for the recovery of the global economy.
In addition, Kalin said that a pilot project of coal-water mixture (CWM) - a mixture of pulverised coal and water with a very small quantity of additive chemical - would start commercial trading next year.
CWM is an alternative to heavy fuel oil for use in boilers in manufacturing plants. SCT can produce 50,000 litres of the material annually.
Kalin said the company would consider expanding production size when global oil prices rise above US$70 (Bt2,352) a barrel, as this would persuade manufacturers to use the coal mixture, which would cost 20-per-cent less than fuel oil.
Kalin added that the company was also importing bio-mass from Singapore, another alternative fuel favoured by both domestic and international small clients.
Wednesday, September 16, 2009
Wind farms sprout amid energy push
As Deng Hui looks out at a forest of towering turbines dotting his company's wind farm north of Beijing, a cold, drizzly wind howls in his face, but he doesn't mind.
"That's the sound of money being printed,"laughs Deng, general manager of the wind farm developed by state-owned China Energy Conservation Investment Corp.
A couple of years ago,only a few dozen of the 80-metre propeller-like turbines stood on the wind farm's vast open expanse of grass. Today it has 200 and counting.
The facility's growth is but one example of soaring investment that has made China an emerging world leader in wind energy, with potentially huge benefits for the environment in both China and the world.
With close to 80 percent of China's energy supplied by cheap but heavily polluting coal, the government has laid ambitious plans to raise the use of renewable energy, such as the winds that rake northern and western China.
"It's not like people are still talking about wind as a potential future direction. It is already the way forward for a lot of power companies in China," said Yang Ailun, climate and energy campaign manager for Greenpeace China.
But the pace of wind energy's development in China has surpassed even the most optimistic projections.
After setting an original goal of 30 gigawatts of installed wind power by 2020, the government recently said that could be raised to 100 gigawatts as installed capacity has doubled each of the last four years.
From almost nothing a few years ago, China had 12.2 gigawatts of installed wind power by the end of 2008 as power companies have rushed to meet government mandates to raise the proportion of energy they produce from renewable sources.
There are about 121 gigawatts of installed wind power worldwide, according to the Global Wind Energy Council (GWEC), with the United States, Germany and Spain the top three wind power nations, followed by China.
In June, authorities in northern China's windswept Gansu province detailed plans for a "Three Gorges of Wind Power", a reference to the massive Three Gorges hydroelectric dam on the Yangtze River.
Gansu's plans alone would nearly match the eventual 22.5-gigawatt installed output of the dam, the world's largest hydroelectric project.Other provinces are discussing similarly ambitious plans.
Installed capacity has grown so fast that it has outpaced the electrical grid's ability to accommodate the newly generated electricity, leaving much of the output of Deng's wind farm going to waste.
"Our nation's wind power has developed very fast but the distribution system's development has lagged. This was an unavoidable problem with wind," he said.
Of China's 12.2 gigawatts of installed power in 2008, only 8.9 gigawatts made it into the electrical gird, said Qiao Liming, GWEC policy director.
The problem has been exacerbated by the fact that wind farms in remote regions rich in the resource are too far from electrical grids.
"In the past two or three years this has really become a serious problem in China," said Qiao.
Another issue is a project bidding process widely viewed as lacking transparency and which sets wind electricity tariffs too low for wind farms to turn a decent profit, she said.
But the government has shown increasing concern about these hurdles and appeared set to solve them, Qiao said, noting that an economic stimulus plan unveiled last year will include heavy investments in electrical grid expansion.
"It's part of a process. Because of the huge wind farm development that just happened in recent years ... it takes some time for the government to really solve such issues," she said.
The growing pains are not stopping development of wind farms like that managed by Deng,located on the edge of the Mongolian steppe and reached via a three-hour drive north of Beijing along a highway dotted with huge trucks hauling 40m long wind turbine blades toward the plains.
Deng said hundreds more of the 80m tall turbines are planned.
"Despite the problems, the government is working to coordinate the development of the grid and wind farms.
"This will create an even better path for wind power," he said.
"That's the sound of money being printed,"laughs Deng, general manager of the wind farm developed by state-owned China Energy Conservation Investment Corp.
A couple of years ago,only a few dozen of the 80-metre propeller-like turbines stood on the wind farm's vast open expanse of grass. Today it has 200 and counting.
The facility's growth is but one example of soaring investment that has made China an emerging world leader in wind energy, with potentially huge benefits for the environment in both China and the world.
With close to 80 percent of China's energy supplied by cheap but heavily polluting coal, the government has laid ambitious plans to raise the use of renewable energy, such as the winds that rake northern and western China.
"It's not like people are still talking about wind as a potential future direction. It is already the way forward for a lot of power companies in China," said Yang Ailun, climate and energy campaign manager for Greenpeace China.
But the pace of wind energy's development in China has surpassed even the most optimistic projections.
After setting an original goal of 30 gigawatts of installed wind power by 2020, the government recently said that could be raised to 100 gigawatts as installed capacity has doubled each of the last four years.
From almost nothing a few years ago, China had 12.2 gigawatts of installed wind power by the end of 2008 as power companies have rushed to meet government mandates to raise the proportion of energy they produce from renewable sources.
There are about 121 gigawatts of installed wind power worldwide, according to the Global Wind Energy Council (GWEC), with the United States, Germany and Spain the top three wind power nations, followed by China.
In June, authorities in northern China's windswept Gansu province detailed plans for a "Three Gorges of Wind Power", a reference to the massive Three Gorges hydroelectric dam on the Yangtze River.
Gansu's plans alone would nearly match the eventual 22.5-gigawatt installed output of the dam, the world's largest hydroelectric project.Other provinces are discussing similarly ambitious plans.
Installed capacity has grown so fast that it has outpaced the electrical grid's ability to accommodate the newly generated electricity, leaving much of the output of Deng's wind farm going to waste.
"Our nation's wind power has developed very fast but the distribution system's development has lagged. This was an unavoidable problem with wind," he said.
Of China's 12.2 gigawatts of installed power in 2008, only 8.9 gigawatts made it into the electrical gird, said Qiao Liming, GWEC policy director.
The problem has been exacerbated by the fact that wind farms in remote regions rich in the resource are too far from electrical grids.
"In the past two or three years this has really become a serious problem in China," said Qiao.
Another issue is a project bidding process widely viewed as lacking transparency and which sets wind electricity tariffs too low for wind farms to turn a decent profit, she said.
But the government has shown increasing concern about these hurdles and appeared set to solve them, Qiao said, noting that an economic stimulus plan unveiled last year will include heavy investments in electrical grid expansion.
"It's part of a process. Because of the huge wind farm development that just happened in recent years ... it takes some time for the government to really solve such issues," she said.
The growing pains are not stopping development of wind farms like that managed by Deng,located on the edge of the Mongolian steppe and reached via a three-hour drive north of Beijing along a highway dotted with huge trucks hauling 40m long wind turbine blades toward the plains.
Deng said hundreds more of the 80m tall turbines are planned.
"Despite the problems, the government is working to coordinate the development of the grid and wind farms.
"This will create an even better path for wind power," he said.
Monday, September 14, 2009
"Thai-European Forum 2009" Thailand's first Thai-European business forum
"Thai Ministry of Commerce is to promote Thailand's potential as a leader in the food, logistics and alternative energy sectors by organizing the "Thai-European forum 2009" (TEF 2009), a business forum for Thai and European businesspersons, for the first time in Thailand on September 17-18, 2009 at Muang Thong Thani.
Porntiva Nakasai, minister of commerce,revealed that the Ministry is organizing the Thai-European Forum 2009 to boost and recover Thailand's export sector as quickly as possible. The European Union (EU) is a huge market consisting of 27-member states and is still in the process of adding new members. The European Commission expects that the European economy will fully recover by 2011. Today, Thailand's exports to the EU rank second.
"The Ministry of Commerce realizes the importance of this market,"said Porntiva. "We will add value to our trade and in vestment, encourage business representatives from Thailand and Europe to match and exchange their ideas, reinforce the confidence of investors, and boost the positive image of Thailand among overseas investors. The Thai-European Forum 2209 will serve these aims."
The event will be a business forum for Thailand and more than 20 European countries. It will be the first time for such a public private sector forum in Thailand that will foster consultation and exchange of ideas on issues of trade and investment. At the same time, it will act as a stage to promote Thailand's potential in food safety, as a logistics hub of ASEAN and as a place welcoming alternative energy investment. On September 18, several foreign academics and business entrepreneurs will deliver lectures, and representatives from EU regulations and how to approach the EU's new markets.
"We expect over 800 persons from the private sector, Thai entreprenerus, European business persons and academics of many countries in the EU and EFTA to join the event resulting in increased business negotiation between the two regions. Participants can gain knowledge and an understanding of the regulations in preparation forfurther business. It can also activate and increase the export volume from Thailand to Europe," Porntiva said.
The event will feature trade and investment exhinitions from 18 embassies, products and information from leading European companies, successful Thai-European ventrues, and products from the various regions of Thailand exported overseas under the strategic project, "Local to Global", to export domestic products from the Thai private sector.
Please reserve your seat at: www.thai-european.com or Tel. 02-933-0120 tollfree. See you on September 17-18, 2009 at Royal Jubilee Challenger, Impact Muang Thong Thani.
Ministry of Commerce www.moc.go.th
Porntiva Nakasai, minister of commerce,revealed that the Ministry is organizing the Thai-European Forum 2009 to boost and recover Thailand's export sector as quickly as possible. The European Union (EU) is a huge market consisting of 27-member states and is still in the process of adding new members. The European Commission expects that the European economy will fully recover by 2011. Today, Thailand's exports to the EU rank second.
"The Ministry of Commerce realizes the importance of this market,"said Porntiva. "We will add value to our trade and in vestment, encourage business representatives from Thailand and Europe to match and exchange their ideas, reinforce the confidence of investors, and boost the positive image of Thailand among overseas investors. The Thai-European Forum 2209 will serve these aims."
The event will be a business forum for Thailand and more than 20 European countries. It will be the first time for such a public private sector forum in Thailand that will foster consultation and exchange of ideas on issues of trade and investment. At the same time, it will act as a stage to promote Thailand's potential in food safety, as a logistics hub of ASEAN and as a place welcoming alternative energy investment. On September 18, several foreign academics and business entrepreneurs will deliver lectures, and representatives from EU regulations and how to approach the EU's new markets.
"We expect over 800 persons from the private sector, Thai entreprenerus, European business persons and academics of many countries in the EU and EFTA to join the event resulting in increased business negotiation between the two regions. Participants can gain knowledge and an understanding of the regulations in preparation forfurther business. It can also activate and increase the export volume from Thailand to Europe," Porntiva said.
The event will feature trade and investment exhinitions from 18 embassies, products and information from leading European companies, successful Thai-European ventrues, and products from the various regions of Thailand exported overseas under the strategic project, "Local to Global", to export domestic products from the Thai private sector.
Please reserve your seat at: www.thai-european.com or Tel. 02-933-0120 tollfree. See you on September 17-18, 2009 at Royal Jubilee Challenger, Impact Muang Thong Thani.
Ministry of Commerce www.moc.go.th
Sunday, September 13, 2009
"Natural" fuels ignite power struggle
Villagers in many parts of the country are up in arms over proposed natural gas and biomass power plants in their communities By Tunya Sukpanich
"This project must stop," said Wanna Rodpitak, a member of the Chachoengsao Provincial Administration Organisation who has led the protest against a natural gas-fueled power plant in Bang Khla district,about 60 kilometres east of Bangkok. Protests against the proposed power plant on 500 rai of land in tambons Samed Nue and Samed Tai, with a generating capacity of 1,600 megawatts, have been ongoing for almost two years.
The scene is being repeated in many provinces with planned natural gas and biomass power plants, with determined protestors in Chiang Rai, Saraburi, Ubon Ratchathani, and Prachuab Khiri Khan among other places demanding the projects be terminated and refusing any compromise. In some areas locals are blocking roads or obstructing work on construction sites.
Mr Wanna insists that such protests represent the true voice of the communities which will be most affected by the plants. His group began their protest in early 2008 soon after learning of the project in their district.
They were not included in any decision to construct a power plant in their backyard,they say, and only became aware of the project after their suspicions were aroused that something was going on, as more and more land in the area was being bought up, and later large pipes were delivered to some of the sites.
More than 20,000 locals signed a petition requesting detailed information from every agency that might be involved, including the Ministry of Energy, the Ministry of Industry,the Office of the Parliament and provincial authorities
"We tried every method to make the authorities listen to our reasons why we do not want the power plant, but nothing happened.Finally, in July last year we blocked the road for three days," said Mr Wanna.
"After negotiations, a so-called tripartite committee and a sub-committee were set up to find a solution, but they never functioned,"he continued.
The locals worry that the plant might cause air pollution, but they are most concerned about the tremendous amount of water it will need for its operation from the Bang Pakong River."We know the plant will need 60,000 cubic metres of water per day for its system. Of that, half will evaporate into the air and another 20,000 cu m will be treated and released back into the river.
"What will happen in the dry season, what will happen to farmers? We need water too,"he said.
Water is also the reason for the locals'protest in Saraburi's Nong Saeng district,where another gas-fueled power plant is in the works. They are very disappointed that the plant's environment impact assessment (EIA) was recently approved by the Office of Natural Resources and Environmental Policy and Planning (Onep).
"Both the state authorities and the company involved want to deny us the right to protect our way of living as farmers. What is really ironic is that the power plant site is in a planned agricultural preservation zone in the province," said Tee Trairattanamanee, who along with two other villagers was recently arrested for obstructing work on the construction site.
Villagers have petitioned concerned authorities in an attempt to obstruct any work on the planned construction site, and have asked various organisations to help study the rich biodiversity of the area to establish its ecological value. This site too is part of a planned agricultural zone.
"We plant rice three or four times a year.Any project with the possibility of damaging our environment and the natural resources essential to farming should not be allowed,"said Mr Tee.
BENEFITS DOUBTED
Villagers in Chiang Rai, Phayao, Ubon Ratchathani and Prachuap Khiri Khan provinces are protesting proposed power plants fueled by biomass in the form of agricultural waste.
The government believes biomass is most suitable for Thailand because it is a renewable energy source, using rice husks, bagasse, coconut wastes, wood chips, animal dung and other agricultural waste as fuel.
A study from the Department of Alternative Energy Development and Efficiency shows that each year about 13 million tonnes of bagasse, five million tonnes of rice husks,and 1.7 million tonnes of cassava roots are left as farm waste. The study says one MWhour of electricity can be produced by 14,100 tonnes of bagasse,9,800 tonnes of rice husks or 14,687 tonnes of cassava roots.
The government has been promoting biomass power plants among the private sector. At the present time,17 biomass power plants - most of which fall into the category of Very Small Power Producer (VSPP), referring to a generating capacity of not more than 10MW - using bagasse, cornstalks, woodchips, rice husk, and waste from palm trees sell electricity to the Electricity Generating Authority of Thailand (EGAT).
Most of the opposition against biomass power plants is based on the air pollution that results in burning the organic matter to create energy. As well, many locals are angry that they have been left out of the decisionmaking process.
Article 67 of the Constitution says that individuals and communities have the right to conserve, protect and to benefit from local natural resources and biodiversity, and prohibits any projects or activities which can cause serious negative impacts to the environment, natural resources and public health.The Constitution further states that if the authorities want to pursue a project with the potential to cause these negative impacts a comprehensive EIA must be conducted. This must include a public hearing process with the participation of locals and independent environmental and public health organisa-tions. Local communities can file a lawsuit against government agencies, local authorities or state enterprises if they do not follow the rules.
However, many small power plants avoid the EIA process because regulations state that plants with less than a 10MW capacity don't need to conduct an EIA. A number of power plants are proposed which will generate only 9.9MW.
Locals feel the rules are being manipulated to deny them participation in the process and they are distrustful of assurances from the government and the companies involved that environmental impacts will be minimal.They feel a thorough study is essential to ensuring the protection of their lifestyle and environment.
A planned biomass power plant which will use coconut waste as its energy source in Tap Sakae district of Prachuab Khiri Khan province has faced a strong protest from the locals,even though many will earn extra income from selling coconut waste to the plant. Initially the plan was for a 5MW capacity plant but this was changed to 9.6MW.
Locals are concerned about the possibility of air pollution, and, according to Anchulee Chumrum, of the Huay Yang conservation group, they also fear the plant might shift to other fuel sources such as coal if there is not enough coconut waste to supply it.
Villagers in Wiangchai and Wiang Chiangrung district of Chiang Rai province are protesting against a planned rice husk-fueled power plant with a capacity of 9.4MW. The company involved, Palang Gharn Sa-ad Dee 2, is in the process of preparing a suit to be filed at the Administrative Court to allow it to construct the plant as soon as possible.
A representative of Palang Gharn Sa-ad Dee 2 said the company has done everything according to the law and regulations. He said that the operation of rice husk-fueled power plants in Surin and Pichit provinces, run by other companies, has proved that they are friendly to the environment, and pointed out that promoting biomass power plants is government policy. He called on the government to take an active role in solving the widespread and ongoing protests which threaten the industry.
Protests have halted the development of even plants much smaller than the 10MW limit, such as a planned plant with a capacity of 1.8MW in Tambon Mae Na Rue of Phayao province. Last year, a proposed 9.6MW biomass power plant in Dok Kham Tai in Phayao was also called off because of strong protest from the locals.
Deunnapa Panyawong, of the Mae Na Rue conservation group, said that the tambon administration organisation (TAO) and villagers turned down the smaller project because it is located close the community,and the local school. She pointed out that without the proper system and management even a small plant can cause significant pollution.
She questioned if the company had studied the local farm production before they came up with the scheme. The plant was supposed to use rice husks and cornstalks as fuel.
"This is doubtful because there is no rice mill in the area since we don't plant much rice here," she said.
Ms Deunnapa added that many locals fear that lignite coal might be used as fuel, especially as the mines that supply the Mae Moh lignite power plant in nearby Lampang province are in the vicinity of Mae Na Rue.
Meanwhile, some plant operators are apparently concerned that the government's promotion of biomass power plants will result in a problem in fuel supply. One operator told Spectrum that with high competition from both Thai and foreign investors, farm biomass will be much more expensive.
NOT IN MY BACKYARD: The past decades of reckless energy management in Thailand have resulted in widespread suspicions and protests whenever a new power plant is proposed.
ACTIVIST: Wanna Rodpitak has led the protest against the power plant in Bang Khla district of Chachoengsao province for almost two years
OPPOSED: Left, Tee Trairattanamanee is leading the protest against the power plant in Saraburi province.
"This project must stop," said Wanna Rodpitak, a member of the Chachoengsao Provincial Administration Organisation who has led the protest against a natural gas-fueled power plant in Bang Khla district,about 60 kilometres east of Bangkok. Protests against the proposed power plant on 500 rai of land in tambons Samed Nue and Samed Tai, with a generating capacity of 1,600 megawatts, have been ongoing for almost two years.
The scene is being repeated in many provinces with planned natural gas and biomass power plants, with determined protestors in Chiang Rai, Saraburi, Ubon Ratchathani, and Prachuab Khiri Khan among other places demanding the projects be terminated and refusing any compromise. In some areas locals are blocking roads or obstructing work on construction sites.
Mr Wanna insists that such protests represent the true voice of the communities which will be most affected by the plants. His group began their protest in early 2008 soon after learning of the project in their district.
They were not included in any decision to construct a power plant in their backyard,they say, and only became aware of the project after their suspicions were aroused that something was going on, as more and more land in the area was being bought up, and later large pipes were delivered to some of the sites.
More than 20,000 locals signed a petition requesting detailed information from every agency that might be involved, including the Ministry of Energy, the Ministry of Industry,the Office of the Parliament and provincial authorities
"We tried every method to make the authorities listen to our reasons why we do not want the power plant, but nothing happened.Finally, in July last year we blocked the road for three days," said Mr Wanna.
"After negotiations, a so-called tripartite committee and a sub-committee were set up to find a solution, but they never functioned,"he continued.
The locals worry that the plant might cause air pollution, but they are most concerned about the tremendous amount of water it will need for its operation from the Bang Pakong River."We know the plant will need 60,000 cubic metres of water per day for its system. Of that, half will evaporate into the air and another 20,000 cu m will be treated and released back into the river.
"What will happen in the dry season, what will happen to farmers? We need water too,"he said.
Water is also the reason for the locals'protest in Saraburi's Nong Saeng district,where another gas-fueled power plant is in the works. They are very disappointed that the plant's environment impact assessment (EIA) was recently approved by the Office of Natural Resources and Environmental Policy and Planning (Onep).
"Both the state authorities and the company involved want to deny us the right to protect our way of living as farmers. What is really ironic is that the power plant site is in a planned agricultural preservation zone in the province," said Tee Trairattanamanee, who along with two other villagers was recently arrested for obstructing work on the construction site.
Villagers have petitioned concerned authorities in an attempt to obstruct any work on the planned construction site, and have asked various organisations to help study the rich biodiversity of the area to establish its ecological value. This site too is part of a planned agricultural zone.
"We plant rice three or four times a year.Any project with the possibility of damaging our environment and the natural resources essential to farming should not be allowed,"said Mr Tee.
BENEFITS DOUBTED
Villagers in Chiang Rai, Phayao, Ubon Ratchathani and Prachuap Khiri Khan provinces are protesting proposed power plants fueled by biomass in the form of agricultural waste.
The government believes biomass is most suitable for Thailand because it is a renewable energy source, using rice husks, bagasse, coconut wastes, wood chips, animal dung and other agricultural waste as fuel.
A study from the Department of Alternative Energy Development and Efficiency shows that each year about 13 million tonnes of bagasse, five million tonnes of rice husks,and 1.7 million tonnes of cassava roots are left as farm waste. The study says one MWhour of electricity can be produced by 14,100 tonnes of bagasse,9,800 tonnes of rice husks or 14,687 tonnes of cassava roots.
The government has been promoting biomass power plants among the private sector. At the present time,17 biomass power plants - most of which fall into the category of Very Small Power Producer (VSPP), referring to a generating capacity of not more than 10MW - using bagasse, cornstalks, woodchips, rice husk, and waste from palm trees sell electricity to the Electricity Generating Authority of Thailand (EGAT).
Most of the opposition against biomass power plants is based on the air pollution that results in burning the organic matter to create energy. As well, many locals are angry that they have been left out of the decisionmaking process.
Article 67 of the Constitution says that individuals and communities have the right to conserve, protect and to benefit from local natural resources and biodiversity, and prohibits any projects or activities which can cause serious negative impacts to the environment, natural resources and public health.The Constitution further states that if the authorities want to pursue a project with the potential to cause these negative impacts a comprehensive EIA must be conducted. This must include a public hearing process with the participation of locals and independent environmental and public health organisa-tions. Local communities can file a lawsuit against government agencies, local authorities or state enterprises if they do not follow the rules.
However, many small power plants avoid the EIA process because regulations state that plants with less than a 10MW capacity don't need to conduct an EIA. A number of power plants are proposed which will generate only 9.9MW.
Locals feel the rules are being manipulated to deny them participation in the process and they are distrustful of assurances from the government and the companies involved that environmental impacts will be minimal.They feel a thorough study is essential to ensuring the protection of their lifestyle and environment.
A planned biomass power plant which will use coconut waste as its energy source in Tap Sakae district of Prachuab Khiri Khan province has faced a strong protest from the locals,even though many will earn extra income from selling coconut waste to the plant. Initially the plan was for a 5MW capacity plant but this was changed to 9.6MW.
Locals are concerned about the possibility of air pollution, and, according to Anchulee Chumrum, of the Huay Yang conservation group, they also fear the plant might shift to other fuel sources such as coal if there is not enough coconut waste to supply it.
Villagers in Wiangchai and Wiang Chiangrung district of Chiang Rai province are protesting against a planned rice husk-fueled power plant with a capacity of 9.4MW. The company involved, Palang Gharn Sa-ad Dee 2, is in the process of preparing a suit to be filed at the Administrative Court to allow it to construct the plant as soon as possible.
A representative of Palang Gharn Sa-ad Dee 2 said the company has done everything according to the law and regulations. He said that the operation of rice husk-fueled power plants in Surin and Pichit provinces, run by other companies, has proved that they are friendly to the environment, and pointed out that promoting biomass power plants is government policy. He called on the government to take an active role in solving the widespread and ongoing protests which threaten the industry.
Protests have halted the development of even plants much smaller than the 10MW limit, such as a planned plant with a capacity of 1.8MW in Tambon Mae Na Rue of Phayao province. Last year, a proposed 9.6MW biomass power plant in Dok Kham Tai in Phayao was also called off because of strong protest from the locals.
Deunnapa Panyawong, of the Mae Na Rue conservation group, said that the tambon administration organisation (TAO) and villagers turned down the smaller project because it is located close the community,and the local school. She pointed out that without the proper system and management even a small plant can cause significant pollution.
She questioned if the company had studied the local farm production before they came up with the scheme. The plant was supposed to use rice husks and cornstalks as fuel.
"This is doubtful because there is no rice mill in the area since we don't plant much rice here," she said.
Ms Deunnapa added that many locals fear that lignite coal might be used as fuel, especially as the mines that supply the Mae Moh lignite power plant in nearby Lampang province are in the vicinity of Mae Na Rue.
Meanwhile, some plant operators are apparently concerned that the government's promotion of biomass power plants will result in a problem in fuel supply. One operator told Spectrum that with high competition from both Thai and foreign investors, farm biomass will be much more expensive.
NOT IN MY BACKYARD: The past decades of reckless energy management in Thailand have resulted in widespread suspicions and protests whenever a new power plant is proposed.
ACTIVIST: Wanna Rodpitak has led the protest against the power plant in Bang Khla district of Chachoengsao province for almost two years
OPPOSED: Left, Tee Trairattanamanee is leading the protest against the power plant in Saraburi province.
Saturday, September 12, 2009
Power producers call for deeper cut in reliance on natural gas
Energy business operators say the use of natural gas for electricity generation should be cut even lower than the 60%planned under the revised power development plan (PDP), saying the risk of dependence on gas is still too high.
Policymakers' plans to revise down natural gas use in the power sector to 60% from the current 74% are still not enough to limit the risk of blackouts in the future, said Suvit Limvattanakul,chairman of the Power Producer Industry Club of the Federation of Thai Industries.
In addition to reducing gas usage,the 15-year PDP ending in 2022 aims to maintain lignite and imported coal usage at 20-21% and increase hydropower purchases from neighbouring countries to 10% from 1%. Nuclear power would account for 5% of the total.
"They should have cut natural gas more to as low as 50% to assure our power users that serious disruptions will not happen. Power blackouts are one of the major concerns - once one happens it causes very severe damage," he said.
A gas pipeline leak in Kanchanaburi last month resulted in blackouts and also forced the Electricity Generating Authority of Thailand to lift output from a hydroelectric plant, which resulted in flooding in nearby communities.
Mr Suwit said rising gas prices were another risk for Thailand.
"You can see the prices of imported gas from Burma and liquefied natural gas from Qatar are both higher than gas from the Gulf of Thailand by 20% and 40%, respectively. We have less bargaining power than suppliers if we still depend on them too much and we are even more disadvantaged," he said.
Manoon Siriwan, an independent energy expert, agreed that fuel usage should be adjusted as Thailand's proven gas reserves are very limited, expected to serve domestic demand only for another seven years.
Power producers will need to import more natural gas unless the country discovers more reserves.
"In the long term, energy policymakers should rethink importing gas only. Coal and nuclear fuels should be taken into consideration. In doing so, fuel costs can be better balanced," said Mr Manoon.
In Malaysia, for instance, gas reserves are high but gas accounts for just 45% of power generation. The country imports high volumes of lower-priced coal while exporting gas at good prices instead.Malaysia is also studying nuclear power plants, said Mr Manoon.
Indonesia, on the other hand, is an example of a poor fuel mix. It has large crude reserves but subsidises oil for domestic consumption and became a net importer last year.
Wirash Kanchanapibul, an Egat deputy governor, admitted that Thailand's fuel usage needs to be better balanced, saying that in developed countries, different types of fuel have been used in almost equal amounts.
"We also cannot guarantee that the gas shortage that happened last month will not happen again," he said.
"To tackle the immediate crisis, we may cut power transmission in some areas to save fuel supplies for the areas where shortages exist."
Policymakers' plans to revise down natural gas use in the power sector to 60% from the current 74% are still not enough to limit the risk of blackouts in the future, said Suvit Limvattanakul,chairman of the Power Producer Industry Club of the Federation of Thai Industries.
In addition to reducing gas usage,the 15-year PDP ending in 2022 aims to maintain lignite and imported coal usage at 20-21% and increase hydropower purchases from neighbouring countries to 10% from 1%. Nuclear power would account for 5% of the total.
"They should have cut natural gas more to as low as 50% to assure our power users that serious disruptions will not happen. Power blackouts are one of the major concerns - once one happens it causes very severe damage," he said.
A gas pipeline leak in Kanchanaburi last month resulted in blackouts and also forced the Electricity Generating Authority of Thailand to lift output from a hydroelectric plant, which resulted in flooding in nearby communities.
Mr Suwit said rising gas prices were another risk for Thailand.
"You can see the prices of imported gas from Burma and liquefied natural gas from Qatar are both higher than gas from the Gulf of Thailand by 20% and 40%, respectively. We have less bargaining power than suppliers if we still depend on them too much and we are even more disadvantaged," he said.
Manoon Siriwan, an independent energy expert, agreed that fuel usage should be adjusted as Thailand's proven gas reserves are very limited, expected to serve domestic demand only for another seven years.
Power producers will need to import more natural gas unless the country discovers more reserves.
"In the long term, energy policymakers should rethink importing gas only. Coal and nuclear fuels should be taken into consideration. In doing so, fuel costs can be better balanced," said Mr Manoon.
In Malaysia, for instance, gas reserves are high but gas accounts for just 45% of power generation. The country imports high volumes of lower-priced coal while exporting gas at good prices instead.Malaysia is also studying nuclear power plants, said Mr Manoon.
Indonesia, on the other hand, is an example of a poor fuel mix. It has large crude reserves but subsidises oil for domestic consumption and became a net importer last year.
Wirash Kanchanapibul, an Egat deputy governor, admitted that Thailand's fuel usage needs to be better balanced, saying that in developed countries, different types of fuel have been used in almost equal amounts.
"We also cannot guarantee that the gas shortage that happened last month will not happen again," he said.
"To tackle the immediate crisis, we may cut power transmission in some areas to save fuel supplies for the areas where shortages exist."
Friday, September 11, 2009
BUREAU TO LEAD ALTERNATIVE FUEL DRIVE
The energy Ministry is moving to set up a biofuel administration bureau to ensure that the country's drive towards ethanol and biodiesel intgrated manufacturing heads in the right direction.
"The bureau should be operated in a private management form to facilitate its operation in terms of quantity and price control in the long run," a ministry source said yesterday.
The Alternative Energy Development and efficiency Department is charting a course for the bureau, which will support the government in drawing up a biofuel management and manufacturing plan that covers all steps in the process from growing energy crops, consumption, and import and export.
The department will spend Bt3 million to Bt5 million to hire a consulting firm to draw up the plan.
The ministry will encourage taxis running on LPG to convert to NGV by subsidising the work to be performed by the winner of an e-auction.
Norkun sitthipong, permanent-secretary of the ministry, said that a meeting with the taxi cooperatives network yesterday agreed to allow representatives from taxi drivers to draw up the terms of reference (TOR) for the tender to retrofit their engines.
Out of the 60,000 cabs in greater Bangkok, half have already changed over to NGV from LPG and the remainder will be gradually modified.
The TOR committee comprises representatives from the ministry, Energy Fund Administration Institute, Energy Policy and Planning Office and Taxi Cooperatives Network.
Norkun said the use of the e-auction for awarding the contract would allow a transparent and fair service for every driver participating in the project.
Agencies and people can check and inspect details on the website.
"The bureau should be operated in a private management form to facilitate its operation in terms of quantity and price control in the long run," a ministry source said yesterday.
The Alternative Energy Development and efficiency Department is charting a course for the bureau, which will support the government in drawing up a biofuel management and manufacturing plan that covers all steps in the process from growing energy crops, consumption, and import and export.
The department will spend Bt3 million to Bt5 million to hire a consulting firm to draw up the plan.
The ministry will encourage taxis running on LPG to convert to NGV by subsidising the work to be performed by the winner of an e-auction.
Norkun sitthipong, permanent-secretary of the ministry, said that a meeting with the taxi cooperatives network yesterday agreed to allow representatives from taxi drivers to draw up the terms of reference (TOR) for the tender to retrofit their engines.
Out of the 60,000 cabs in greater Bangkok, half have already changed over to NGV from LPG and the remainder will be gradually modified.
The TOR committee comprises representatives from the ministry, Energy Fund Administration Institute, Energy Policy and Planning Office and Taxi Cooperatives Network.
Norkun said the use of the e-auction for awarding the contract would allow a transparent and fair service for every driver participating in the project.
Agencies and people can check and inspect details on the website.
Tuesday, September 8, 2009
Lanna unit upgrades factory
Thai Agro Energy Co, a subsidiary of the SET-listed coal miner Lanna Resources Plc, is investing 1.7 billion baht in its second ethanol factory and to upgrade an existing plant to be able to shift between two raw materials, said executive director Srihasak Arirachakaran.
The 1.5-billion-baht second factory will have daily output of 150,000 litres and is expected to start operating in early 2011. Another 200 million baht will be used to upgrade machinery to accommodate either molasses or cassava at the existing plant, with daily output of 200,000 litres. The plant now uses only molasses.
The upgrade is a response to the sharp rise in the cost of molasses in line with sugar prices, which have risen to a 28-year high in line with a global supply shortage.
"We want to make the production flexible so that if there is any shortage of one material, or it is too costly, we will be able to shift to use another one. This could help us maintain our ethanol output at a time when molasses prices are fluctuating," Dr Srihasak said.
The company is also planning to build an electricity plant using biomass from waste from sugar and ethanol production.
"We are also conducting a feasibility study to build up integrated production from upstream to downstream products that can be made from ethanol such as food ingredients and pharmaceuticals"he said."This will also ease the impact from the ethanol surplus since we are now going to invest in a second plant."
The company will seek listing on the Stock Exchange of Thailand after 2012 in order to raise funds for financing the project, if the study finds it viable.
Downstream products from ethanol included ethyl acetic and acetic acid,which are raw materials for printing ink and food colouring, could be sold at higher value than ethanol.
By the end of the year, three new cassava-based ethanol plants are expected to start operations: Thai Nguan Ethanol Co with 130,000 litres a day,Ratchaburi Ethanol with 150,000 litres and Suptip 200,000 litres. E.S. Power,meanwhile, is also upgrading machinery to use cassava as well. The country's total ethanol capacity will rise to 2.27 million litres per day end of this year.
Praphon Wongtharua, director of the Biofuel Bureau of the Energy Ministry,also warned yesterday against rumours of an ethanol shortage, possibly linked to speculators who expect prices to rise.
"Please don't panic. There are more than 45 million litres in the stocks of ethanol producers and oil traders which could last for more than a month of domestic demand," he said.
The 1.5-billion-baht second factory will have daily output of 150,000 litres and is expected to start operating in early 2011. Another 200 million baht will be used to upgrade machinery to accommodate either molasses or cassava at the existing plant, with daily output of 200,000 litres. The plant now uses only molasses.
The upgrade is a response to the sharp rise in the cost of molasses in line with sugar prices, which have risen to a 28-year high in line with a global supply shortage.
"We want to make the production flexible so that if there is any shortage of one material, or it is too costly, we will be able to shift to use another one. This could help us maintain our ethanol output at a time when molasses prices are fluctuating," Dr Srihasak said.
The company is also planning to build an electricity plant using biomass from waste from sugar and ethanol production.
"We are also conducting a feasibility study to build up integrated production from upstream to downstream products that can be made from ethanol such as food ingredients and pharmaceuticals"he said."This will also ease the impact from the ethanol surplus since we are now going to invest in a second plant."
The company will seek listing on the Stock Exchange of Thailand after 2012 in order to raise funds for financing the project, if the study finds it viable.
Downstream products from ethanol included ethyl acetic and acetic acid,which are raw materials for printing ink and food colouring, could be sold at higher value than ethanol.
By the end of the year, three new cassava-based ethanol plants are expected to start operations: Thai Nguan Ethanol Co with 130,000 litres a day,Ratchaburi Ethanol with 150,000 litres and Suptip 200,000 litres. E.S. Power,meanwhile, is also upgrading machinery to use cassava as well. The country's total ethanol capacity will rise to 2.27 million litres per day end of this year.
Praphon Wongtharua, director of the Biofuel Bureau of the Energy Ministry,also warned yesterday against rumours of an ethanol shortage, possibly linked to speculators who expect prices to rise.
"Please don't panic. There are more than 45 million litres in the stocks of ethanol producers and oil traders which could last for more than a month of domestic demand," he said.
Monday, September 7, 2009
Asean eyes role as biofuel export hub
Asean nations should collaborate to develop the region as an export hub for biofuels and alternative fuels to take advantage of its strong agricultural base,says Energy Minister Wannarat Channukul.
Mr Wannarat pitched the idea at the Bangkok Biofuel 2009 seminar, where Asean representatives discussed sustainable development plans for biofuel with support from the International Energy Agency.
"The region has plenty of raw materials for [producing] biofuels such as palm oil, molasses and cassava," said Mr Wannarat.
"I would say these crops can be managed without an effect on food supply.These farm crops also have proven to have higher yields and to be more commercially viable for biofuel production than corn and beetroot researched in Europe and the United States."
Malaysia and Indonesia are the world's largest and second-largest exporters of palm oil. Thailand is the world's largest cassava exporter and second-largest sugar exporter.
Palm oil is used for making biodiesel,while cassava and molasses, a sugar byproduct, are raw materials to produce ethanol, which is mixed with petrol to make gasohol.
All three countries have invested heavily to develop these products to substitute limited fossil fuel resources,by creating higher-yield crops, developing the supply chain and improving product quality.
Thailand's energy authorities are encouraging other countries in the region,such as Laos, Cambodia, the Philippines and Burma to follow the same route.
"By 2015 this region will have a close relationship in terms of developing alternative fuels along with collaboration under the Asean Community 2015 pact,"said Mr Wannarat.
The Asean Community 2015 pact is an agreement to co-develop in fields such as technology and in related regulations, trade and investment, he said.
The global downturn has weakened the development of biofuels yet each country should keep its focus on the fuel, he said.
IEA deputy executive-director Richard Jones said biofuels would be increasingly important for the future as oil prices will rise again.
"One day, the economy will recover and oil prices will rise again," he said.
Biofuel has a 1.5% share of fuel consumption for global transport, and this will rise to 4% in 2030, he said. But the share of green fuels could hit 8% with "green" energy policies and rising consumer concern about climate change.
IEA estimates global consumption of biofuels at 1.52 million barrels per day, compared with 85 million barrels of crude. It expects 2.16 million barrels of biofuel to be consumed in 2014.
The US and Brazil will likely remain the largest producers, accounting for 80% of the growth, Mr Jones said.
Praphon Wongtharua, director of the Energy Ministry's biofuel development bureau, said supportive government policy is crucial if Asean is to become a green fuel exporting hub."Facilitating biofuel trading, the supply chain and product regulation are key to developing alternative fuels," he said.
Brazil, the world's largest sugar exporter, has approached Thailand to codevelop a plan to manage the product's supply and demand, he said.
Mr Wannarat pitched the idea at the Bangkok Biofuel 2009 seminar, where Asean representatives discussed sustainable development plans for biofuel with support from the International Energy Agency.
"The region has plenty of raw materials for [producing] biofuels such as palm oil, molasses and cassava," said Mr Wannarat.
"I would say these crops can be managed without an effect on food supply.These farm crops also have proven to have higher yields and to be more commercially viable for biofuel production than corn and beetroot researched in Europe and the United States."
Malaysia and Indonesia are the world's largest and second-largest exporters of palm oil. Thailand is the world's largest cassava exporter and second-largest sugar exporter.
Palm oil is used for making biodiesel,while cassava and molasses, a sugar byproduct, are raw materials to produce ethanol, which is mixed with petrol to make gasohol.
All three countries have invested heavily to develop these products to substitute limited fossil fuel resources,by creating higher-yield crops, developing the supply chain and improving product quality.
Thailand's energy authorities are encouraging other countries in the region,such as Laos, Cambodia, the Philippines and Burma to follow the same route.
"By 2015 this region will have a close relationship in terms of developing alternative fuels along with collaboration under the Asean Community 2015 pact,"said Mr Wannarat.
The Asean Community 2015 pact is an agreement to co-develop in fields such as technology and in related regulations, trade and investment, he said.
The global downturn has weakened the development of biofuels yet each country should keep its focus on the fuel, he said.
IEA deputy executive-director Richard Jones said biofuels would be increasingly important for the future as oil prices will rise again.
"One day, the economy will recover and oil prices will rise again," he said.
Biofuel has a 1.5% share of fuel consumption for global transport, and this will rise to 4% in 2030, he said. But the share of green fuels could hit 8% with "green" energy policies and rising consumer concern about climate change.
IEA estimates global consumption of biofuels at 1.52 million barrels per day, compared with 85 million barrels of crude. It expects 2.16 million barrels of biofuel to be consumed in 2014.
The US and Brazil will likely remain the largest producers, accounting for 80% of the growth, Mr Jones said.
Praphon Wongtharua, director of the Energy Ministry's biofuel development bureau, said supportive government policy is crucial if Asean is to become a green fuel exporting hub."Facilitating biofuel trading, the supply chain and product regulation are key to developing alternative fuels," he said.
Brazil, the world's largest sugar exporter, has approached Thailand to codevelop a plan to manage the product's supply and demand, he said.
Sunday, September 6, 2009
Green fuels to make up 20%
The share of alternative fuels in Thailand's total energy consumption is expected to rise sharply in the next 15 years, allowing the country to cut greenhouse gas emissions by nearly fourfold.
Under Thailand's 15-year alternative energy master plan, alternative sources will account for 20.4% of all energy consumed in 2023, compared with 6% this year, according to the Department of Alternative Energy Development and Efficiency (DEDE).
The sources covered include ethanol,biodiesel, compressed natural gas, hydropower, biogas, biomass, wind power and solar cells.
"Some of those projects will apply to the UN carbon-trading scheme. We expect that greenhouse gas emissions will be cut to 42 million tonnes per year once the plan is fulfilled," said Krairit Nilkuha, the newly appointed directorgeneral of the DEDE.
The DEDE expects that by 2023, solar cells will generate 650 megawatts of electricity, biogas 270 MW, biomass 9,720 MW, community waste 368 MW, hydropower 770 MW, and wind turbines 1,300 MW.
Mr Krairit said that because some alternative energy sources were more costly than traditional ones, the agency would offer attractive rates, known as adder tariffs, for power purchased from such projects.
The adder rates are 3.50 baht per unit (kilowatt.hour) for wind turbine power,2.50 baht for community waste, 0.30 baht for biomass and biogas. The incentives would be offered for the first seven years of operation.
For solar power, an adder of eight baht a unit would be offered for 10 years,he added.
Rangsan Sarochawikasit, executive director of the Bureau of Energy Research,said the Energy Ministry would support the plan through Board of Investment privileges and soft loans to encourage energy services companies to apply to the United Nations for carbon credit trading.
At present, utilities are buying 4.1 MW of electricity from 47 solar cell operators,20.5 MW from 25 biogas operators,244 MW from 46 biomass operators,2.4 MW from three power-from-waste projects, 0.06 MW from 2 minihydropower plants, and 0.08 MW from a wind turbine operator.
In the transport sector, the use of ethanol is expected to rise to 9 million litres per day from 1.3 million, methyl ester (B100) to 4.5 million litres from 1.4 million, and compressed natural gas to 690 million standard cubic feet (mmscfd)from 108 mmscfd.
Under Thailand's 15-year alternative energy master plan, alternative sources will account for 20.4% of all energy consumed in 2023, compared with 6% this year, according to the Department of Alternative Energy Development and Efficiency (DEDE).
The sources covered include ethanol,biodiesel, compressed natural gas, hydropower, biogas, biomass, wind power and solar cells.
"Some of those projects will apply to the UN carbon-trading scheme. We expect that greenhouse gas emissions will be cut to 42 million tonnes per year once the plan is fulfilled," said Krairit Nilkuha, the newly appointed directorgeneral of the DEDE.
The DEDE expects that by 2023, solar cells will generate 650 megawatts of electricity, biogas 270 MW, biomass 9,720 MW, community waste 368 MW, hydropower 770 MW, and wind turbines 1,300 MW.
Mr Krairit said that because some alternative energy sources were more costly than traditional ones, the agency would offer attractive rates, known as adder tariffs, for power purchased from such projects.
The adder rates are 3.50 baht per unit (kilowatt.hour) for wind turbine power,2.50 baht for community waste, 0.30 baht for biomass and biogas. The incentives would be offered for the first seven years of operation.
For solar power, an adder of eight baht a unit would be offered for 10 years,he added.
Rangsan Sarochawikasit, executive director of the Bureau of Energy Research,said the Energy Ministry would support the plan through Board of Investment privileges and soft loans to encourage energy services companies to apply to the United Nations for carbon credit trading.
At present, utilities are buying 4.1 MW of electricity from 47 solar cell operators,20.5 MW from 25 biogas operators,244 MW from 46 biomass operators,2.4 MW from three power-from-waste projects, 0.06 MW from 2 minihydropower plants, and 0.08 MW from a wind turbine operator.
In the transport sector, the use of ethanol is expected to rise to 9 million litres per day from 1.3 million, methyl ester (B100) to 4.5 million litres from 1.4 million, and compressed natural gas to 690 million standard cubic feet (mmscfd)from 108 mmscfd.
Malaysian company acquires Pearl Thailand to tap reserves
Malaysia-based UBG Bhd has signed a deal to acquire a 100% stake in Pearl Thailand (Holdings) Ltd for US$19.21 million in cash, paving the way for the company to enter the oil and gas sector and the Thai market for the first time.
The acquisition of Pearl Thailand from Pearl Energy Ltd, a regional oil and gas company, gives UBG participating interest in a six-block offshore petroleum concession in the Gulf of Thailand that contains potential new hydrocarbon basins, the company said in a statement to the Kuala Lumpur Stock Exchange.
Pearl Energy is an upstream company with exploration, development and production activities in Southeast Asia, with more than 20,000 barrels of oil equivalent per day (boed) of operated production.
Pearl Thailand, via its subsidiaries, holds a 20% stake each in four of the six blocks and 25% in the two remaining blocks.
UBG said that on completion of the acquisition, the Thai operations would become an indirect wholly owned subsidiary of UBG.
The company has launched a drilling programme across the six-block concession that covers a total area of 83,200 sq km of underexplored acreage in the Gulf of Thailand.
UBG also said it had agreed to assume the historical costs borne by the Pearl Group related to the subsidiaries' participating interests in the blocks in the amount of $16.13 million and would repay that amount to the seller.
The Malaysian company said it would use internally generated funds to pay for the acquisition.
Expansion into the energy sector is part of the group's overall plan to diversify and to take advantage of lower prices of energy amid a global slowdown.
The UBG Group is involved in the infrastructure and construction sectors as well as concession-based road maintenance.
The Malaysian business newspaper The Edge reported that the acquisition was sealed in Singapore, between UBG chairman Datuk Seri Mahmud Abu Bekir Taib and deputy chairman Syed Ahmad Alwee Alsree, and Pearl Energy president Barry O'Donnell.
The company is wholly owned by Mubadala Development Company, a business development and investment group headquartered in Abu Dhabi, United Arab Emirates.
"This tie-up with Pearl Energy will provide UBG with the exposure to exploration risks and returns while we seek to build up capacity in other segments of the oil and gas value chain," the UBG chairman was quoted as saying.
"We are on the hunt for a few more assets and businesses to make our position in the oil and gas sector meaningful for our energy business. Our current investment portfolio comprising investments in the construction and water infrastructure sectors would be more balanced with the acquisition of a few more oil and gas assets."
UBG currently holds majority stakes in the Malaysian construction company Putrajaya Perdana Bhd and the water infrastructure provider Loh & Loh Corp Bhd.
The group's other indirect concessions and infrastructure interests are in CMS Roads Sdn Bhd and CMS Pavement Tech Sdn Bhd.
The acquisition of Pearl Thailand from Pearl Energy Ltd, a regional oil and gas company, gives UBG participating interest in a six-block offshore petroleum concession in the Gulf of Thailand that contains potential new hydrocarbon basins, the company said in a statement to the Kuala Lumpur Stock Exchange.
Pearl Energy is an upstream company with exploration, development and production activities in Southeast Asia, with more than 20,000 barrels of oil equivalent per day (boed) of operated production.
Pearl Thailand, via its subsidiaries, holds a 20% stake each in four of the six blocks and 25% in the two remaining blocks.
UBG said that on completion of the acquisition, the Thai operations would become an indirect wholly owned subsidiary of UBG.
The company has launched a drilling programme across the six-block concession that covers a total area of 83,200 sq km of underexplored acreage in the Gulf of Thailand.
UBG also said it had agreed to assume the historical costs borne by the Pearl Group related to the subsidiaries' participating interests in the blocks in the amount of $16.13 million and would repay that amount to the seller.
The Malaysian company said it would use internally generated funds to pay for the acquisition.
Expansion into the energy sector is part of the group's overall plan to diversify and to take advantage of lower prices of energy amid a global slowdown.
The UBG Group is involved in the infrastructure and construction sectors as well as concession-based road maintenance.
The Malaysian business newspaper The Edge reported that the acquisition was sealed in Singapore, between UBG chairman Datuk Seri Mahmud Abu Bekir Taib and deputy chairman Syed Ahmad Alwee Alsree, and Pearl Energy president Barry O'Donnell.
The company is wholly owned by Mubadala Development Company, a business development and investment group headquartered in Abu Dhabi, United Arab Emirates.
"This tie-up with Pearl Energy will provide UBG with the exposure to exploration risks and returns while we seek to build up capacity in other segments of the oil and gas value chain," the UBG chairman was quoted as saying.
"We are on the hunt for a few more assets and businesses to make our position in the oil and gas sector meaningful for our energy business. Our current investment portfolio comprising investments in the construction and water infrastructure sectors would be more balanced with the acquisition of a few more oil and gas assets."
UBG currently holds majority stakes in the Malaysian construction company Putrajaya Perdana Bhd and the water infrastructure provider Loh & Loh Corp Bhd.
The group's other indirect concessions and infrastructure interests are in CMS Roads Sdn Bhd and CMS Pavement Tech Sdn Bhd.
Thursday, September 3, 2009
Non-oil industries demand attention
Thailand and other developing nations should focus more on creating new nonoil dependent industries to combat diminishing global crude reserves and climate change, says a Japanese expert.
The fuel, plastics, food, pharmaceutical and fertiliser industries can all use alternative fuels instead of oil, Hitomi Ohara from Kyoto Institute of Technology said yesterday.
"It is very shocking that the world's known oils reserves are only sufficient for another 50 years. Reserves in nonOpec (Organisation of Petroleum Exporting Countries) countries including Japan would last for 27 years," he said at a Bangkok symposium on bioplastics and and bio-based materials.
"Developing countries like Thailand should create new industries that use bio-based materials instead of petroleum to cut carbon emissions."
Petroleum resources are finite and the supply of biomass is tightening; as such Thailand should step up efforts to better manage waste partly through recycling, said Prof Ohara.
The local bioplastics industry shows promise amid mounting concerns over the state of the environment and diminishing natural resources, said Supachai Lorlowhakarn, director of the National Innovation Agency (NIA).
Bioplastics are already being used in a broad range of products, including packaging, electronics and automobiles,he said.
"Bio-based technology could provide solutions to a wide range of pertinent issues that nations are currently facing,"he said.
"Evidently, emerging market opportunities for bioplastics and bio-based materials hold great promise for economic growth and development."
Thailand has competitive advantages in bioplastics but Dr Supachai warned there were signs that international players would dominate the industry.
Nature Works LLC of the United States,Netherlands-based Purac and two German companies are in different stages of investing in bioplastics in Thailand,he said.
"Thailand's bioplastics industry is still in the early stages but it has comparative advantages in terms of abundant supplies of feedstock, a capable local plastics industry, and favourable government policies," he said.
"There is a good potential for the industry to be firmly established in Thailand in the next two years but I am concerned that it would be in the hands of foreign companies."
Thailand and Japan have signed cooperative agreements to develop local bioplastics, and Thailand aims to become a regional production hub.
Under the five-year national roadmap,the government has allocated 1.8 billion baht to build up the industry through 2012, which has a target 5.5 billion baht in contributions to the economy by then.
In Japan, bioplastics development is a part of the Strategic Technology Roadmap 2009 endorsed by the Ministry of Economy, Trade and Industry to formulate strategic planning and investment in research and development in 30 fields.
The fuel, plastics, food, pharmaceutical and fertiliser industries can all use alternative fuels instead of oil, Hitomi Ohara from Kyoto Institute of Technology said yesterday.
"It is very shocking that the world's known oils reserves are only sufficient for another 50 years. Reserves in nonOpec (Organisation of Petroleum Exporting Countries) countries including Japan would last for 27 years," he said at a Bangkok symposium on bioplastics and and bio-based materials.
"Developing countries like Thailand should create new industries that use bio-based materials instead of petroleum to cut carbon emissions."
Petroleum resources are finite and the supply of biomass is tightening; as such Thailand should step up efforts to better manage waste partly through recycling, said Prof Ohara.
The local bioplastics industry shows promise amid mounting concerns over the state of the environment and diminishing natural resources, said Supachai Lorlowhakarn, director of the National Innovation Agency (NIA).
Bioplastics are already being used in a broad range of products, including packaging, electronics and automobiles,he said.
"Bio-based technology could provide solutions to a wide range of pertinent issues that nations are currently facing,"he said.
"Evidently, emerging market opportunities for bioplastics and bio-based materials hold great promise for economic growth and development."
Thailand has competitive advantages in bioplastics but Dr Supachai warned there were signs that international players would dominate the industry.
Nature Works LLC of the United States,Netherlands-based Purac and two German companies are in different stages of investing in bioplastics in Thailand,he said.
"Thailand's bioplastics industry is still in the early stages but it has comparative advantages in terms of abundant supplies of feedstock, a capable local plastics industry, and favourable government policies," he said.
"There is a good potential for the industry to be firmly established in Thailand in the next two years but I am concerned that it would be in the hands of foreign companies."
Thailand and Japan have signed cooperative agreements to develop local bioplastics, and Thailand aims to become a regional production hub.
Under the five-year national roadmap,the government has allocated 1.8 billion baht to build up the industry through 2012, which has a target 5.5 billion baht in contributions to the economy by then.
In Japan, bioplastics development is a part of the Strategic Technology Roadmap 2009 endorsed by the Ministry of Economy, Trade and Industry to formulate strategic planning and investment in research and development in 30 fields.
Tuesday, September 1, 2009
Ethanol makers seek cassava
Local ethanol manufacturers are looking to use more cassava as a raw material instead of expensive molasses in order to cut costs and compete with mainstream fuels, according to Sirivuthi Siamphakdee, president of the Thai Ethanol Manufacturers Association.
Ethanol, which is used for blending with petrol to make gasohol, can be made from molasses, derived from sugar, or cassava. Only five of the 17 local producers use cassava and account for one-third of local ethanol capacity.The other ethanol producers also operating sugar businesses.
Chalush Chinthammit, assistant vicepresident of Khon Kaen Sugar Plc (KSL),maintains that the rising price of ethanol has nothing to do with the sugar price hike as molasses output in the country remains sufficient for domestic demand.
Mr Sirivuthi said ethanol price rises were a direct impact of the dry weather in India, the world's biggest cane producer, which reduced its sugar and molasses outputs. This led to a rise in overseas molasses demand from Thailand.
"This is an opportunity for molasses exporters," he said."In the past they would sell molasses at low prices for distillers locally and overseas, but ethanol demand is rising, not only in Thailand but across Asia for green fuels."
Ethanol producers have been the country's second largest molasses users since 2007.
Local ethanol capacity is now 3 million litres per day and producers are paying US$145 per tonne for molasses,up from $115 a year earlier.
Ethanol made from cassava costs 21 baht a litre while molasses-based variety is 27 baht, Mr Sirivuthi said.
"To make sure gasohol prices can compete with petrol, we have to find out how to shift production to new materials at a lower cost," said Mr Chalush."However, ethanol producers are also concerned that if they use more cassava it would lead to rising prices of cassava too."
Last year, Thailand produced 2.8 million tonnes of molasses, with 1.2 million consumed by distillers, the ethanol sector 600,000 tonnes, monosodium glutamate and animal feed 500,000 tonnes,and exports 500,000 tonnes.
Jetsada Wongwatanasin, managing director of the Thai Sugar Ethanol Co said the company was now conducting a study to compare costs between molasses-based and cassava- or mixeduse ethanol to cut production costs.
"We expect molasses prices would gradually decline at the beginning of the new harvesting season in December and stay low until April, if the sugar output shortage is not more severe,"said Mr Jetsada.
Thailand's sugar output in the 2009-10 harvest is forecast to rise to 75 million tonnes from an estimated 67 million this season.
Ethanol, which is used for blending with petrol to make gasohol, can be made from molasses, derived from sugar, or cassava. Only five of the 17 local producers use cassava and account for one-third of local ethanol capacity.The other ethanol producers also operating sugar businesses.
Chalush Chinthammit, assistant vicepresident of Khon Kaen Sugar Plc (KSL),maintains that the rising price of ethanol has nothing to do with the sugar price hike as molasses output in the country remains sufficient for domestic demand.
Mr Sirivuthi said ethanol price rises were a direct impact of the dry weather in India, the world's biggest cane producer, which reduced its sugar and molasses outputs. This led to a rise in overseas molasses demand from Thailand.
"This is an opportunity for molasses exporters," he said."In the past they would sell molasses at low prices for distillers locally and overseas, but ethanol demand is rising, not only in Thailand but across Asia for green fuels."
Ethanol producers have been the country's second largest molasses users since 2007.
Local ethanol capacity is now 3 million litres per day and producers are paying US$145 per tonne for molasses,up from $115 a year earlier.
Ethanol made from cassava costs 21 baht a litre while molasses-based variety is 27 baht, Mr Sirivuthi said.
"To make sure gasohol prices can compete with petrol, we have to find out how to shift production to new materials at a lower cost," said Mr Chalush."However, ethanol producers are also concerned that if they use more cassava it would lead to rising prices of cassava too."
Last year, Thailand produced 2.8 million tonnes of molasses, with 1.2 million consumed by distillers, the ethanol sector 600,000 tonnes, monosodium glutamate and animal feed 500,000 tonnes,and exports 500,000 tonnes.
Jetsada Wongwatanasin, managing director of the Thai Sugar Ethanol Co said the company was now conducting a study to compare costs between molasses-based and cassava- or mixeduse ethanol to cut production costs.
"We expect molasses prices would gradually decline at the beginning of the new harvesting season in December and stay low until April, if the sugar output shortage is not more severe,"said Mr Jetsada.
Thailand's sugar output in the 2009-10 harvest is forecast to rise to 75 million tonnes from an estimated 67 million this season.
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