Channel 0110 Renewable Energy | Coal

TTA’s shareholders approved cash dividend payments at 0.54 THB per share,

2010-02-07T05:30:00.000-08:00

TTA’s shareholders approved cash dividend payments at 0.54 THB per share, cancelled and reaffirmed 50 million ordinary shares at Baht 1 par for future financial usage, and nominated four directors for another term

An annual cash dividend payment at 0.54 THB per share was approved at the 1/2010 Annual General Meeting of Shareholders of Thoresen Thai Agencies Public Company Limited (“TTA”) along with the increase of TTA registered share capital for a private placement worth 50 million THB. The meeting also approved the re-appointment of four directors for another term.

M.L. Chandchutha Chandratat, TTA President and Chief Executive Officer, reported that TTA’s shareholders approved cash dividends at 0.54 THB per share to the 708,004,413 shares, worth 382.3 million THB in total value.

“The dividends will be paid to shareholders whose names appear on TTA’s share register book on the Record Date of 8 February 2010. The share register book closing date for collecting shareholders names under Section 225 of the Securities and Exchange Act is scheduled to be 9 February 2010. The final dividend payment shall be made on 23 February 2010,” said the President & Chief Executive Officer.

“The shareholders approved the re-election of Mr. Stephen Fordham, Mrs. Pratana Mongkolkul, Mrs. Joey Horn, and Mr. Terje Schau, as directors for another term as they are highly experienced and competent.”

“It also approved the appointment of PricewaterhouseCoopers ABAS Limited as TTA’s auditor for the financial year that ended on 30 September 2010 and fix the auditors’ fees at 3.16 million THB,” said President & Chief Executive Officer Chandchutha.

He said the shareholders also approved the capital reduction by cancelling 50,048,452 authorized but un-issued shares at the par value of 1 THB each from the existing registered capital of 933 million THB to be the new registered capital of 883 million THB divided into 883,004,413 shares at the par value of Baht 1 each.

“The shareholders approved an increase of the registered capital of another 50 million THB by an issue of 50,000,000 new ordinary shares at the par value of Baht 1 each from the existing registered capital of 883 million THB to be the new registered capital of 933 million THB divided into 933,004,413 ordinary shares at the par value of 1 THB each,” reported the President & Chief Executive Officer.

“The shareholders had approved the allotment of 50,000,000 new ordinary shares of par value at 1 THB to be reserved for private placement in 1999 and re-confirmed the amount in 2009. TTA has no immediate plan to place the private placement shares in the near future. The allotment of 50 million new shares is to maintain future financial flexibility.”

The shareholders approved the issue of 4,000,000 warrants to directors and employees, including any employee(s) who is also a director, of Mermaid and its subsidiaries, under an ESOP Scheme. “The ESOP Scheme has the goal of increasing the personal stake of such directors and employees in the continued success and growth of Mermaid and motivating them to remain in the service of Mermaid on a long-term basis,” he said.
About TTA

Thoresen Thai Agencies Public Company Limited is amongst the top 50 companies listed on the Stock Exchange of Thailand with high trading liquidity. Its investment strategy is to grow through a diversified business portfolio of transport, energy, and infrastructure assets, both domestically and internationally. TTA is recognised as a leader in the dry bulk shipping industry. The company has also expanded its investment into other business areas, such as offshore services through Mermaid Maritime Public Company Limited, fertilisers and logistics through Baconco Co., Ltd., and coal-related businesses through Merton Group (Cyprus) Limited and Unique Mining Services Public Company Limited.

PTT Chemical and GE sign gas turbine service agreement

2010-01-30T01:11:00.001-08:00

PTT Chemical Public Company Limited, Thailand’s largest chemical producer and a regional leader in the petrochemical industry, has signed a service agreement with GE (NYSE: GE) in Singapore to ensure the long-term reliability of nine GE gas turbines at PTT Chemical’s site in Map Ta Phut Industrial Estate, Rayong Province, Thailand.

The 13-year Contractual Service Agreement (CSA) worth US$46.1 million or approximately Baht 1,521 million covers the supply of parts, repairs and field services for planned and unplanned outages for gas turbine-generators and accessory equipment, along with performance guarantees.

Veerasak Kositpaisal, President and CEO of PTT Chemical said, “Through this agreement, GE guarantees the continuing reliability and efficiency of the gas turbines, which improves our efficiency and security as well as enables us to maintain our petrochemical production schedule. The CSA also helps us to effectively manage our maintenance budget over the life of the agreement.”

“While we have received equipment orders from PTT Chemical in the past, this marks our first CSA with the company,” said Kovit Kantapasara., GE Energy Country Executive for Thailand and Indochina. “We hope to build on this agreement to provide similar services to other companies in the PTT Group.” Overall, GE has supplied more than 20 gas turbines to the petrochemical business of the PTT Group.

PTT Chemical is a diversified and integrated chemical producer offering a wide variety of petrochemical and chemical products. Its product portfolio includes ethylene and propylene, collectively called olefins, downstream derivatives such as Polymers and Ethylene Oxide and Ethylene Glycol, and oleochemicals. The company’s gas-based plants have a total annual capacity of 2,888,000 tons of olefins, making it Thailand’s largest olefins producer and the second largest in all of Asia.

GE is a diversified global infrastructure, finance and media company that's built to meet essential world needs. GE Energy is one of the world’s leading suppliers of power generation and energy delivery technologies providing integrated product and service solutions in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels.

EEI all out in 2010 with energy management business, hoping to raise over 80 million baht

2010-01-24T05:48:00.001-08:00

in revenue after joining forces with Burns and Roe Asia, leading engineering firm from the United States to bolster service capabilities

Mr. Arthit Vechakij Managing Director of Excellent Energy International Company Limited (EEI) disclosed that in the last 11 years, his company had proved to be a leading Energy Service Company (ESCO) in Thailand with recognition including ESCO Excellence Award 2009 from the Federation of Thai Industries (FTI) supported by Department of Alternative Energy Development and Efficiency (DEDE),Ministry of Energy. “Our clients also commended with several recognitions for their efficiency. These companies include Thai Yamaha Motor Co., Ltd., Grand China Princess Hotel, Dusit Princess Hotel in Korat and Royal Princess Hotel Chiang Mai as they are selected to be successful business operators using the ESCO system in 2009 (ESCO Project Award 2009). This is the 2nd year in a row for EEI to have its clients nominated for the award and receive privileges as well as support from the government sector. There are still several other projects that have made our company proud such as services provided to Thai Beverage, 4 new cogeneration power plants development for CPF, Energy Management System (EMS) for Pataya Food Industry, manufacturer of Nautilus canned tuna, whose confidence has resulted in repeat order. In addition, EEI is the consultant for Department of Industrial Promotion, making industrial and business operators having greater confidence in the company. Our latest move to strengthen our position is the cooperation with Burns and Roe Asia, leading integrated engineering company from the United States. The firm, which has already been accepted for expertise by several companies operating in Thailand, is considered a fresh development in Energy Service Company (ESCO) business in Thailand,” he said.

Mr. Arthit Vechakij said: “The cooperation between EEI and Burns and Roe Asia was a result of new opportunity seeking on the part EEI. Discussions were made with Burns and Roe Asia to allow the 2 companies to see good potential together in facilitating to the growing demands from larger size customers. Our services will help make Thai business operators confident and continue relying on ESCO in the future.”

“EEI believe in 2010 it can generate revenue of 80 million baht, which is higher than before by 15%. We predict to help the country save by as much as 200 million baht, as a result of new projects from CPF Group worth 450 million baht, which include 4 new cogeneration power plants that can save up to 117 million baht a year. Projects made in cooperation with Burns and Roe Asia, which is similar to what we have provided to Thai Oil will also help save around 80 million baht a year. Our clients who are business operators believe that investment in energy conservation measures will help them save energy and cost. The rising oil prices of over US$80 per barrel will compel business operators to seek to reduce energy expense in order to maintain costs and create competitive advantages especially in the long run. We are seeing good improvement this year as the government continues to support business operators to seek proper energy management,” he added.

Meanwhile, Mr. Ruamlarp Anantasanta, Deputy Managing Director – Marketing & Business

Development of Excellent Energy International Company Limited (EEI) added on the business direction of EEI in 2010, saying the company would focus its business on what it does best, which would be the Cogeneration Power Plants and Energy Management System (EMS), including the Development and Energy Efficiency Management services “For the past 11 years, Cogeneration Power Plants have been the proud projects of EEI, where success can be proven and accepted widely, from thesuccess of Thailand ESCO Pilot Project with BKP to 4 more Cogeneration Power Plants for CPF Group. We also plan to establish a Energy Management System (EMS) which is the real time monitoring system of power consumption behaviors and coordination among concerned personnel in each area to allow business operators to utilize energy with maximum efficiency to reduce energy costs.

“In the current economic situation, the low investment cost of 5-20 million baht and payback period of only 1-2 years have been our value proposition . This is why our clients trust in our Energy Management System (EMS). EEI is able to develop software suitable to each individual operation following its strong experience and skills in energy management business in Thailand to deliver to each business’s specific needs perfectly. Our service also complies to the recent Energy saving act 2007 with integrated line of services could not be found in other operators. EEI’s unique services include application for necessary approval as required by the laws and regulations, seeking funding support from commercial banks, finding funding sources that provide privileges (special interest rate) in case of energy saving scheme and seeking privileges from the government sector such as financial support, DSM bidding and BOI,” said Mr. Ruamlap.

Mr. Mark Hunt, Managing Director of Burns and Roe Asia, Ltd. stated that his company’s recent cooperation with EEI, a leading Energy Service Company (ESCO) and well trusted by leading Thai operators, is an advantageous and strategic partnership that will benefit both companies’ quality of service. “Burns and Roe Asia’s presence and capabilities will be enhanced by the new opportunities brought forth by EEI. Our joint success will be achieved through a combination of world class services and skills in energy project management in Thailand, while maintaining a beneficial cost structure. We expect to execute at least 1 to 2 energy projects this year with an investment cost of 200-500 million Thai Baht, which will generate savings for Thailand by as much as 100-200 million Thai Baht a year,” he said.

“Thailand’s economy is recovering and moving in a positive direction, and that has a direct impact on domestic energy consumption. According to the Ministry of Energy, at the end of 2009, the amount of energy consumption recorded was higher than that recorded at the same time in 2008. This increase in energy consumption provides evidence that Thailand’s demand for energy is steadily moving in an upwards direction. In addition, the government policy which encourages the use of domestic energy sources and alternative energy, and promotes energy savings initiatives have contributed positively to the country’s energy industry by attracting new investments and expanding existing businesses,” he added.

“Our latest cooperation with EEI will help facilitate the growing energy needs in Thailand and advance the Thai government policy regarding domestic energy management and energy saving campaign. The goal is to find long term energy sources and while curbing the causes of global warming, which will ultimately improve the quality of life in Thailand,” he explained.

Burns and Roe Asia, Ltd. was founded in 1932. The company, with over 1,700 employees worldwide, is specialized in engineering, design, and consulting services in the power generation industry. They provide technical expertise in fossil-fueled power plants, including coal and natural gas combined cycle, as well as in biomass, cogeneration, and nuclear power plants. Studies in advanced technologies and alternative fuel solutions are also offered. Current clients include the Electricity Generating Authority of Thailand (EGAT), Gulf JP, Advance Agro, and GDF Suez.

JDR Cable Systems to Provide Inter Array Cables for London Array Offshore Wind Farm

2009-12-16T19:24:00.000-08:00

JDR Cable Systems, a global provider of subsea power cables, offshore
umbilical systems and specialised marine cables has been awarded the
contract for the supply of subsea power array cables for the first phase
of London Array Offshore Wind Farm by the project consortium of DONG
Energy, E.ON and Masdar.
The first phase of the development, consisting of 175 wind turbines and
2 offshore substations will be installed in water depths of up to 23
meters some 20km (12 miles) from the Kent and Essex coasts in the outer
Thames Estuary. The wind farm will be connected by subsea export cables
to an onshore substation at Cleve Hill, on the North Kent coast. From
the substation, the electricity will be fed into the existing 400kV
transmission network.
The scope awarded to JDR includes the engineering, design and
manufacture of over 200km of 33kV array cables complete with proprietary
hang-off and termination systems providing the essential link between
individual wind turbine generators, wind turbine generator arrays and
the offshore substations. The cables will be produced in 2010 and 2011.
“The London Array project team were very clear in their determination to
procure array cables that would provide the highest long-term
reliability available in the market. JDR’s dedication to the highest
levels of quality management and continuous improvement, developed over
many years of providing subsea power cables and umbilical systems for
deepwater oil & gas projects, is fully aligned with the needs of
offshore wind farm operators. We shall also be providing JDR’s
proprietary array cable termination systems, which have been
specifically designed to minimise offshore installation costs. We are
very pleased that JDR was selected as the array cable supplier and we
look forward to embarking on this world class project,” stated Patrick
Phelan, managing director of JDR Cable Systems Ltd.
When complete the first phase of London Array will be among the world’s
largest offshore wind farms, delivering up to 630MW. This is enough
power for approximately 470,000 homes and will make a substantial
contribution to the UK Government’s target of providing 15% of all
electricity supply from renewable sources by 2015.
“JDR has made significant investments over the last three years to
address the growing and vital renewable energy initiatives taking hold
in the UK and other parts of the world. Our plant in Hartlepool was
carefully chosen to be located in the heart of the UK offshore community
to best serve their ambitious projects yet optimally service all of
Northern Europe and other geographies around the world”, commented Pat
Herbert, group CEO, JDR Cable Systems (Holdings) Ltd.
Richard Rigg, the London Array Project Director stated that “London
Array Limited and its Shareholders are very pleased that JDR Cable
Systems have been successful in acquiring this scope of work and that
the project is supporting the new UK facilities developed by JDR at
Hartlepool to serve the offshore wind industry.”
About JDR Cable Systems
JDR is a leading provider of custom-designed and manufactured static and
dynamic subsea power cables, umbilical systems and marine cables for a
broad range of applications throughout the oil and gas sector, offshore
renewable energy industry, and seismic and defence markets.
JDR was featured in The Sunday Times Buyout Track 100 of the UK’s top
Private Equity-owned businesses. JDR ranked twelfth on the annual list
of 100 companies, and was the highest Original Equipment Manufacturer on
the list.
About the London Array Consortium
London Array Limited has three shareholders: E.ON, DONG Energy and
Masdar.

E.ON is one of the UK’s leading power and gas companies – generating and
distributing electricity, and retailing power and gas – and is part of
the E.ON group, the world’s largest investor-owned power and gas company.
DONG Energy is one of the leading energy groups in Northern Europe. We
are headquartered in Denmark. Our business is based on procuring,
producing, distributing and trading in energy and related products in
Northern Europe.
Masdar, wholly owned by the Mubadala Development Company (Mubadala), is
Abu Dhabi’s multi-faceted initiative in the development and
commercialization of renewable energy and sustainable technology.

ETIHAD TO JOIN SUSTAINABLE AVIATION FUEL USERS GROUP

2009-12-15T19:27:00.001-08:00

Etihad Airways has joined the Sustainable Aviation Fuel Users Group (SAFUG), an airline-led industry working group established in 2008 to accelerate the commercialisation and availability of sustainable biofuels.

James Hogan, Etihad Airways’ chief executive, said: ““Etihad recognises the need for step-changes in aviation to reduce our reliance on fossil fuels and meet our industry’s carbon reduction goal. We also recognise that any fuel alternatives must be morally, socially and environmentally acceptable, while not compromising the future sustainability of the aviation industry.”

SAFUG members are bound by stringent criteria for the development of non fossil fuels, including the following:

The development of plant sources must be undertaken in a manner that is non-competitive with food, with biodiversity impacts minimised and without jeopardizing drinking water supplies. The total lifecycle greenhouse gas emissions from plant growth, harvesting, processing and end-use should be significantly less than that from fossil sources. In developing economies, development projects should include provisions or outcomes that improve socio-economic conditions for small-scale farmers and their families and that do not require the involuntary displacement of local populations. High conservation value areas and native eco-systems should not be cleared and converted for jet fuel plant source development.

Each SAFUG member has pledged to work through the Roundtable for Sustainable Biofuels (RSB), a global multi-stakeholder initiative consisting of leading environmental organizations, financiers, biofuel developers, biofuel-interested petroleum companies, the transportation sector, developing-world poverty alleviation associations, research entities, and governments.

“Abu Dhabi, our home base, has itself made a strong commitment towards sustainability and in the promotion of renewable energy through the establishment of Masdar City, which will the headquarters of the International Renewable Energy Agency,” Mr Hogan said.
About Etihad Airways

Etihad Airways is the national airline of the United Arab Emirates based in the UAE’s capital, Abu Dhabi. Currently Etihad offers flights to over 55 destinations in the Middle East, Europe, North America, Africa and Asia.

POWER-GEN Asia and Renewable Energy World Asia 2009 Achieves Record-Breaking Attendance.

2009-12-07T14:16:00.000-08:00

The Future of Thailand’s Power Market is Discussed in Multi-track Conference.

POWER-GEN Asia, co-located with Renewable Energy World Asia, shattered its past attendance record with nearly 7,000 power professionals attending the most successful event in its 17 year history. Held at IMPACT Exhibition and Conference Centre from 7th to 9th October, POWER-GEN Asia and Renewable Energy Asia saw the region’s power industry professionals gather to discuss the latest developments, issues and challenges related to the region’s power generation, transmission and distribution and renewable energy sectors.

The opening day of the event saw keynote speeches delivered by Sup. Lt. Dr. Prapas Limpabandhu, Vice Minister of Energy, Sutat Patmasiriwat, Deputy Governor – Generation of the Electricity Generating Authority of Thailand and Dong-Soo Suh, Executive Vice President Power Plant Business Group from Korean engineering giant Doosan Heavy Industries & Construction Co. Ltd., prior to the trio officially opened the exhibition floor in a traditional ribbon cutting ceremony.
Strengthening Energy Security for Sustained Economic Growth

“Strengthening Energy Security for Sustained Economic Growth” was the theme addressed by a line up of 120 leading international specialists from across the industry.

The POWER-GEN Asia and Renewable Energy World Asia conference programmes began the conference in perfectly appropriate style. POWER-GEN Asia’s opening speaker in the Country Spotlight session, former Minister of Energy, Dr. Pyasvasti Amranand, outlined the current and future developments of Thailand’s power market, whilst the opening presentation of Renewable Energy World Asia’s Policy & Scene Setting session was delivered by Dr. Twarath Sutabutr, Deputy General Director of Department of Alternative Energy Development and Efficiency, Ministry of Energy, discussing Thailand’s 15 year Renewable Development Plan and the future role of renewable energy in Thailand’s power generation industry.

Nigel Blackaby, Director of Conferences for PennWell’s International Power Group, said, “POWER-GEN Asia’s conference programme is an important platform for industry leaders to come together to exchange information, present new solutions and discuss future developments most critical to the growth of the market. The new Renewable Energy World Asia conference, dedicated to the renewable and sustainable energy, delivered an informative and technical programme of presentations, discussing the region’s issues and challenges in the renewable energy sector.”

“Conference sessions were extremely well attended, with professionals discussing the substantial issues surrounding power provision and how future demands can be met,” added Blackaby.
Busiest Ever Show Floor

The POWER-GEN Asia and Renewable Energy World Asia 2009 exhibition opened with an air of anticipation and excitement, as the world recession over this last year has seen most countries around the world reduce electricity consumption.

However, the event posted a record attendance with nearly 7,000 power industry professionals from over 65 countries converging on Bangkok for the region’s premier industry conference and exhibition - offering a hint of optimism of an upturn in the region’s economic prospects.

The record breaking number of exhibitors of over 170, were kept busy as streams of power industry professionals queued to gain access to the regions leading trade show.

Glenn Ensor, Event Director of POWER-GEN Asia and Renewable Energy World Asia, said, “To achieve a record attendance of nearly 7,000 registrations is extremely gratifying, particularly in the current economically uncertain times. We are delighted that a growing group of power industry professionals, throughout Asia and beyond, see POWER-GEN Asia and Renewable Energy World Asia as the meeting place for this industry.”

With the full support from the Ministry of Energy, Electricity Generating Authority of Thailand, Metropolitan Electricity Authority, Provincial Electricity Authority, Thailand Greenhouse Gas Management Organisation and the Thailand Exhibition & Convention Bureau, POWER-GEN Asia and Renewable Energy World Asia enjoyed three days of quality conference content and leading
exhibition.

POWER-GEN Asia and Renewable Energy World Asia moves to Singapore from 2nd – 4th November 2010 at the new Marina Bay Sands Resort. Further details and information on POWER-GEN Asia, www.powergenasia.com, and Renewable Energy World Asia, www.renewableenergyworld-asia.com.

Editors Notes: PennWell Corporation is a highly diversified, business-to-business media company providing authoritative print and online publications, conferences and exhibitions, research, databases, online exchanges and information products to strategic global markets.

Since 1910 PennWell has been known for providing comprehensive coverage of several strategic markets. In those early days, PennWell was a pioneer in the emerging oil industry with Oil & Gas Journal magazine, founded in 1902. Today PennWell publishes 45 business-to-business magazines and newsletters, conducts over 60 conferences and exhibitions on six continents, and has an extensive offering of books, maps, directories and database services.

Ratchaburi Holding Announces 5.5 Billion Baht of Operating Performance

2009-12-07T14:15:00.000-08:00

To be armed for business expansion in renewable energy and foreign investment

Ratchaburi Electricity Generating Holding PCL. announces its 9-month operating performance of 2009. The Company recorded net profit at 5,556.60 million Baht or 3.83 Baht per share, which is an increase of 10.14% from the same period of last year. It is also getting ready for restructuring its business structure to arm the Company’s expansion.

Mr. Thawat Vimolsarawong, Senior Executive Vice President-Business Development, said the Company is prompt for its business expansion by preparing restructuring its investment arms to serve the future business direction. According to the business plan in domestic investment, the Company aims to increase its total capacity in renewable energy project to 100 MWs by 2016. Recently, the Company has increased the registered capital for its subsidiary named Ratchaburi Energy Company Limited to support investment in SPP and VSPP projects corresponding to the country’s power demand and the government’s policy on the promotion of renewable energy. Moreover, the Company is seeking to explore new potential projects in power sectors and other related businesses. Currently, RH International Corporation Limited has been established as an investment arm to support the Company’s business expansion in power generation across South East Asia region and Australia. Therefore, the wholly-own RH International Corporation Limited by Ratchaburi Holding with 5 million Baht in registered capital would facilitate to an efficient investment management for the Company.

For 9-Month operating performance of 2009, the Company gained 28,448.98 million Baht in total revenue, consisting of 26,854.91 million Baht from electricity sales and operating and maintenance revenues, 207.07 million Baht from interest income, 101.29 million Baht from management service fee,168.09 million Baht from other incomes and 1,117.62 million Baht from the Company’s shared profit in its joint ventures. Whereas the Company’s cost of sales and other expenses were 21,347.78 million Baht, consisting of 20,856.27 million Baht in cost of sales, 491.51 million Baht in administration expenses. Meanwhile, the Company’s interest expense was 680.96 million Baht. Nevertheless, the Company committed to pay 863.64 million Baht in income tax which is an increase of 800.14 million Baht compared with the same period of last year.

Mrs. Darunee Abhinoraseth, Senior Executive Vice President-Finance mentioned to the 9-Month Operating Performance of 2009 that the Company recorded net profit at 5,556.60 million Baht, which was 511.59 million Baht or 10.14% higher compared with the same period of the previous year. This resulted from the cost of sales and other expenses of 21,347.78 million Baht which decreased by 6,205.32 million Baht or 22.52% from the previous year.

Furthermore, the interest expense in 2009 was minimized by 30.04% compared with the same period of last year because of the lower interest rate and the principle repayment in every quarter. Also, the Company recorded 26,854.91 million Baht in sales and service revenue which decreased by 5,543.03 million baht or 17.11% compared with the same period of 2008 and 1,117.62 million Baht in shared profit in its joint ventures increased by 337.74 million Baht or 43.31% from the same period of last year which mainly received from the profit sharing from Tri Energy and Ratchaburi Power.

Regarding to the Q3/2009 operating performance, the Company recorded net profit at 1,656.74 million Baht decreased by 418.70 million Baht or 20.17% compared with the same period of 2008. This was mainly resulted from 10,265.44 million Baht in sales revenue decreased by 836.27 million Baht or 7.56% of the same period of last year. Moreover, the company’s income tax was increased at 284.49 million Baht compared with the same period of last year which was due to the expiration of the BOI’s tax exempt since October 2008.
Company’s Information

Established in March 2000, Ratchaburi Electricity Generating Holding PCL is a leading independent power producer in Thailand with 4,347.37 MW in total installed capacity deriving from its investment in many power plant projects both domestics and foreign. The Company’s capacity portion by equity own in domestic projects are as follows: The current commercial operating plants are located in Ratchaburi province consisted of a 3,645-MW Ratchaburi’s Power Plant, a 350-MW Tri Energy’s Power Plant, a 350-MW Ratchaburi Power’s Power Plant. And there is a 1.75-MW power generating from associated gas, Pratu Thao Power Plant in Sukhothai province, which the Company currently invests in the expansion of 0.875 MW-Pratu Thao Power Plant. The investment projects under development are consisted of a 153.75-MW Nam Ngum 2’s Hydro Power Plant, a 110-MW Nam Ngum 3’s Hydro Power Plant, a 93-MW Xe-Pian Xe-Namnoy’s Hydro Power Plant and a 751-MW Hongsa’s Power Plant in Lao PDR. For renewable energy development, the Company invests in Wind Power Project in Phetchabun with capacity proportion of 18 MW. The Company aims to achieve the total installed capacity of 5,479 MWs from its investment and developing projects.

Glow’s profitability on track in Q3 2009

2009-11-19T05:59:00.000-08:00

Glow Group (“Glow”) posted consolidated total revenues of THB 25,836 million, Earnings Before Interest Taxes Depreciation and Amortization (“EBITDA”) of THB 5,743 million and Normalized Net Profit (“NNP”, net profit before unrealized foreign exchange gains and losses) of THB 2,669 million for the 9 months of 2009.

The 3rd quarter NNP of 2009 for Glow stood at THB 899 million. The key drivers for the result were strong industrial customers’ sales, whose power and steam consumption have returned back to normal levels since mid year, and favorable operating margins, where fuel prices have stabilized along with the electricity tariffs.

The 3rd quarter result is THB 274 million below the previous quarter, mainly because of two key reasons. First, unlike in the previous quarter, the 3rd quarter result does not include the business interruption compensation for the outage earlier this year of the 150 MW coal-fired Unit 1. The Company expects to receive the remaining business interruption claim of more than THB 100 million. Secondly, there was lower availability in the 3rd quarter due to a minor forced outage and a one-month major maintenance of the 150 MW coal-fired Unit 2, which was deferred from the previous quarter, the total effect was a reduction in profitability in the 3rd quarter by about 100 million baht. The 4th quarter plant availability is expected to return to normal as there is no other major maintenance scheduled until later 2011

Mr. Esa Heiskanen, the CEO of Glow Group commented: “The operation and performance of the Group have returned to normal and our industrial customer sales volumes have returned to expected levels. Our operating margin has also recovered to normal levels as the Ft remains high and fuel prices have stabilized .”

Mr. Esa continued to add “We are following up very closely on what the impact of the temporary suspension ruling has on our numerous customers in Map Ta Phut, Glow currently has all the necessary permits for our expansions, including the 115 MW coal-fired, 382 MW gas-fired, and 660 MW coal-fired IPP. Our expansions will utilize proven technology to ensure low emissions and will include reduction in emission from our existing plants, where the net result will be an improvement in the overall air quality in Map Ta Phut. We are confident that our projects are environmentally sound and will benefit surrounding communities as the total emission from our existing and new plants would be lower than current levels.

”Glow’s year-to-date interest expenses and corporate income tax have increased from same period last year. The effective tax rate has gradually been increasing year on year, as tax privileges for some of Glow’s older plants are starting to expire. However, the overall effective tax rate for the group will come down after the tax exemption period begins for the expansion projects after commercial operation starting in 2010.

Mr. Suthiwong Kongsiri, the CFO of Glow Group further explained: “The increased interest expenses is not due to higher funding costs but it is reflecting the higher debt level due especially to our strategy to pre-fund some of our funding needs at the beginning of the year, this strategy is aimed at mitigating liquidity risk which has resulted from troubles in global financial market. We now have the necessary funding through to the 2nd quarter of 2010 and are very confident in our ability to secure the remaining funds needed for our expansion projects, thanks to our solid business fundamentals, robust performance and improved market conditions.”

Effort to cut emissions looks away from coal

2009-11-12T22:35:00.000-08:00

       As Congress debates legislation to slow global warming by limiting emissions, engineers are tinkering with ways to capture and store carbon dioxide, the leading heat-trapping gas.
       But coal-fired power plants, commonly identified as the nation's biggest emissions villain, may not be the best focus.
       Rather, engineers and policymakers say, it may be easier and less costly to capture the carbon dioxide at oil refineries, chemical plants, cement factories and ethanol plants, which emit a far purer stream of it than a coal smokestack does.
       Carbon dioxide typically makes up only 10 percent to 12 percent of a coal plant's emissions, they note, and the gas is so mixed with pollutants that it is difficult to separate.
       Cheaper strategies for sequestering carbon dioxide could prove especially important if Congress passes a law setting up a so-called cap-and-trade system.That would set a national ceiling for overall emissions and allot pollution allowances to utilities, manufacturers and other emitters, which could then trade them among themselves.
       Companies that exceed their carbon dioxide emission allowances could buy credits from those that pollute less. Under such a system, a coal plant that had exceeded its allotment might pay a chemical plant that could separate a tonne of carbon dioxide more cheaply.
       "If we have a cap-and-trade scheme,it will happen wherever it is the most cost-effective," said Jeffrey R. Holmstead,a lawyer and former assistant administrator for air and radiation at the Environmental Protection Agency.
       A Texas company, Denbury Resources,is building a 515km pipeline for carbon dioxide that will run from Louisiana to Houston.
       Initially the pipeline will take natural underground deposits of carbon dioxide in Mississippi to the aging oil fields of east Texas, where it can be used to force more oil to the surface.
       But as the pipeline threads its way through more and more refineries and plants - the chemical heartland of the United States - man-made carbon dioxide captured at those sites could also be added and stored.
       Sequestering a tonne of carbon dioxide from a chemical plant would have the same effect on the Earth's atmosphere as storing a tonne from a coal plant,scientists and industry executives emphasize.
       "Sequestration is not a coal technology - it is a greenhouse gas abatement strategy," said S. Julio Friedmann, leader of the carbon management programme at Lawrence Livermore National Laboratory.
       Last month, the Energy Department announced $44 million (1.4 billion baht)in grants to develop the technology,known generally as carbon capture.
       Among them was $1.72 million (57 million baht) for Praxair, a chemical company based in Connecticut that operates two plants near Houston that make hydrogen for use in oil refineries.
       The money will go toward developing engineering studies on how to capture carbon dioxide from the hydrogen production and deliver it to Denbury.
       Carbon dioxide makes up 20 percent of the gas resulting from hydrogen production, twice the concentration found in a gas stream from a typical coal plant.Recovering it from this stream rather than a coal plant smokestack would therefore be cheaper and simpler.
       In the oil industry, drillers have for years tapped underground reservoirs of carbon dioxide, brought it to the surface and moved it by pipeline to oil fields.Then they inject it into the fields to help force oil to the surface in a process called "enhanced oil recovery."
       If the oil industry left the natural carbon dioxide where it was, and drew on carbon dioxide from industrial plants instead, far less man-made carbon dioxide would enter the atmosphere, experts say.
       What oil drillers pay for carbon dioxide depends on the value of the oil it will help produce. When oil is at $70(2,300 baht) a barrel, carbon dioxide goes for $10(333 baht) or $11(366 baht) a tonne,said Tracy Evans, the chief executive of Denbury, the Texas company building the carbon dioxide pipeline.
       Should the congressional legislation mandate a cap-and-trade system, that modest price could be very important."Wherever you can go to store a tonne of carbon the most cheaply, you will go," said Holmstead, the former EPA administrator for air.
       Other likely sources of pure streams of carbon dioxide are plants that refine natural gas. The natural gas usually comes out of the ground mixed with carbon dioxide, which natural gas sellers routinely remove so the natural gas can be considered "pipeline quality". That carbon dioxide is sometimes reinjected into the ground, but sometimes vented.
       Then there are cement kilns, which produce a nearly pure stream of carbon dioxide.
       For now, no one is sure what it will cost to capture and sequester carbon dioxide from coal plants because the first such project in the nation, at American Electric Power's coal-fired plant in New Haven, West Virginia, got under way only last month. At the moment,the process consumes 30 percent of the coal plant's energy, but engineers are working to cut that in half.
       Even so, experts expect the price to run to $60(2,000 baht) a tonne or more.But pure streams could be captured for the cost of drilling a natural gas well and compressing the gas into liquid form perhaps $10 to $15(500 baht) a tonne,Friedmann of the Livermore laboratory said.
       Bruce Nilles, director of the National Coal Campaign at the Sierra Club, also cites natural gas plants as a promising avenue for carbon capture. Natural gas has only half as much carbon dioxide in it as coal does. So the equipment needed to separate and sequester the carbon dioxide at a gas plant would be half as big as the machinery at a coal plant of the same size, and would cost less.
       Nilles and others say that biomass fuels, derived from wood, waste and alcohol, could offer an even better opportunity for carbon capture. If an electric plant burns wood chips or other plant material in place of coal, it produces a stream of smoke from which carbon dioxide can be taken and then injected deep into the earth.
       The advantage is that if a tree is cut down and burned in a boiler, a new tree can grow in its place, and absorb carbon dioxide from the atmosphere. That makes the process "carbon negative"; for each tonne burned, the amount of carbon dioxide in the atmosphere will decline.
       Eventually, Evans of Denbury said,most of the carbon sequestration will come from the power sector, because it is a far larger emitter than the chemical or refining sectors.
       But for the moment, he said, for companies like his, which use carbon dioxide to drill for oil, there is something of a shortage. His company is still drilling for natural deposits of carbon dioxide,he said, and "we don't have any to sell to others".

Solar lanterns light the way

2009-11-12T22:34:00.002-08:00

       For more than 100 Indian villages cut off from the electricity grid, life no longer comes to an end after dark thanks to an innovative solar-powered lantern that offers hope to the nation's rural poor.
       While cooking, farming and studying after sunset were once a struggle using inefficient kerosene or paraffin lamps, the solar lantern now provides a cheap and practical source of light.
       The simple device, which is charged during the day from a communal rooftop solar panel,uses between five and seven watts of power and has a battery that lasts up to eight hours.
       It also boasts a socket for charging mobile phones and a hand crank for topping up the power.
       Villagers pay between 3 and 6 rupees (2 to 4 baht) a day to rent the lantern under the "Lighting a Billion Lives"(LaBL) scheme, which was launched last year to promote solar energy as the environmentally friendly answer to India's energy shortages.
       "I keep my shop open as late as 9pm. All my fish get sold by that time," a fish seller in Govindorampur district in West Bengal state who uses the lamp told researchers.
       He is one of those whose lives have been transformed by the first wave of 5,000 lanterns distributed across nine states in India.
       The LaBL scheme, run by The Energy and Resources Institute (Teri) in New Delhi, plans to eventually put 200 million lamps into use.
       Organisers say each lamp should work for 10 years, saving between 500 and 600 litres of kerosene which would produce about 1.5 tonnes of carbon dioxide.
       Government figures show more than 10,000 impoverished Indian villages have no access to grid electricity, but the solar revolution could also change middle-class lives in urban India,where energy demands have soared.
       Power cuts are common even in the smarter suburbs of New Delhi, Mumbai and Kolkata as residents soak up fragile supplies with airconditioning units, freezers and washing machines.
       While per capita electricity use in India -704 kilowatt hours in 2007-2008- is far lower than the 8,000 kilowatt hours per capita in many industrialised countries, there is no sign of consumption slowing.
       "There is something like 30 percent overdemand. There's significant undergeneration as it is, even if you don't electrify any more," said Joel Slonetsky, a researcher with LaBL.
       One "green" solution to the outages is a solar-charged inverter for backup electricity during cuts.
       "People have started realising the scarcity of power," said Chandra Sekhar, CEO of Solar India Solutions, which sells the inverters in the southern state of Andhra Pradesh."They have become scared so they don't mind spending a little extra."
       Sekhar said most of his clients belong to the "domestic middle-income group" and they choose to shell out between $3,000 to $6,000 for the solar inverters that work as well as traditional ones.
       "Right now the technology is at a stage where we can say that it stands side by side with conventional electricity," said Ajay Prakash Shrivastava, president of the Solar Energy Society of India.
       Increased efficiency and new materials mean the price of solar-powered equipment has been coming down for years, although initial installation costs are steep, said Shrivastava.
       While the long-term benefits may be an incentive for some, he acknowledged that most people who have opted to use solar energy have done so out of necessity rather than a desire to be environmentally friendly.
       "There are certainly people thinking in that direction," said Shrivastava."But that group is not very large."
       Slonetsky said although the Indian solar industry is constantly evolving, the options for domestic solar power use are still somewhat limited.
       "It may just be a lag both in terms of consumer awareness and supply here." he said.
       It is certainly not for lack of sunshine India receives a high level of solar radiation,equivalent to more than 5,000 trillion kilowatts or up to 3,200 hours of sun a year, according to government statistics.
       The government hopes to harness this potential into 20,000 megawatts of solar power by 2020 as part of its National Solar Mission to promote renewable energy.
       The plan envisions railway signals and water pumps eventually running on solar technology,but for now, villagers are content with the portable lamps that have made daily tasks such as cooking and cleaning easier.
       "The lanterns have changed our position in society," said Ayesha Begum from Sahsoul village in the eastern state of Bihar.

Banpu profit rises 22%

2009-11-12T22:34:00.001-08:00

       The coal miner Banpu Plc reported thirdquarter profits of 3.8 billion baht, an increase of 22% from the same period last year.
       Consolidated nine-month net profit jumped 68% from the same period last year to 12.58 billion baht.
       In a statement to the Stock Exchange of Thailand, the company said its thirdquarter revenues fell 3% year-on-year to 13.9 billion baht, due primarily to lower coal prices. Coal sales totalled 12.8 billion baht, down 4% year-on-year and representing 92% of total revenue.
       Coal sales volume in the quarter was 5.31 million tonnes, up 15% year-onyear and up 18% from the previous quarter thanks to increased production at its Indonesian mines. Average selling prices for the quarter were $69.49 per tonne, a decline of 17% year-on-year and 6%quarter-on-quarter due to lower market prices and quality of coal.
       Quarterly profits included a gain of 1.03 billion baht from financial derivatives on coal swaps and 109 million from oil hedging and interest-rate swaps.
       Total reserves at the end of September were 581.37 million tonnes, compared with 588.1 million at the end of June.
       Shares of Banpu closed yesterday on the SET at 448 baht, down two baht.

UMS targets 30% growth in 2010

2009-11-12T22:33:00.000-08:00

       Coal importer Unique Mining Services Plc is optimistic its sales will jump by 30% in 2010 from flat growth this year thanks to the economic recovery.
       UMS managing director Chaiwat Cruecha-Em said an improved recovery will drive demand and coal prices, boosting the company's overall revenue.
       "Last year, coal prices went up to nearly US$140(per tonne), but this year it has dropped to about $70," Mr Chaiwat said."Next year, the government's stimulus programmes should start to take effects and help spur demand.
       UMS will unlikely hit its growth target this year as the recession has crimped output for its major customers, particularly those in the cement sector, he said.
       Small and medium-sized companies,the main revenue source for UMS, are still expanding, he said, which will keep 2009 coal volume on par with last year at about one million tonnes.
       Mr Chaiwat said UMS was not affected by the Map Ta Phut suspensions as it has few clients there.
       UMS projected 2009 first-half revenue would fall by 10% from last year to 3.14 billion baht.
       UMS has recently been acquired by Hermelin Shipping Co, a subsidiary of Thoresen Thai Agencies Plc, the country's largest dry-bulk carrier. Hermelin, which will be renamed Athene Holdings Ltd,purchased 73,649,166 shares or 48.46%from UMS's two former major shareholders Phaibul Chalermsaphayakorn and Mr Chaiwat.
       "The acquisition should set a business direction for UMS regarding logistics in the coal industry," Mr Chaiwat said.
       The firm is still interested in acquiring a coal mine in Indonesia, but the matter must be discussed with the new shareholder before any decision, he said.
       UMS posted first-half revenue of 1.39 billion baht, down from 1.56 billion the same period last year. First-half net profit fell to 191.49 million baht, down from 240 million year-on-year.
       Established in 1994, UMS engages in the coal trading business by importing coal from Indonesia to serve small and medium-sized industrial buyers in Thailand. UMS shares closed yesterday on the Market for Alternative Investment at 22.70 baht, unchanged, in trade worth 43.81 million baht.

MINISTRY SEEKS OPTIONS AS GAS RESERVES SHRINK

2009-11-04T05:40:00.001-08:00

       Energy Minister Wannarat Charnnukul headed a delegation to Hong Kong and Shenzhen to review possible tie-ups in clean coal and nuclear power firms "to obtain the best options for our future energy needs" at the weekend.
       "Thailand will face a shortage of natural gas in 15-20 years as local fields are being exhausted. This poses great concern as the country depends on gas to generate 70 per cent of electricity needs."
       Wannarata says coal-fired plants provide 20 per cent while hydro, biogas, bomas and solar sources make up the rest. "Even with the push toward solar and wind farms, there will still be a considerable shortfall," he says.
       There is urgency in examining the options as negotiations, construction as well as public relations exercises to gain public support will take considerable time, he says. "At present many global energy firms are in talks with the ministry."
       The construction of a nuclear power plant take about five years before it becomes operational. While Thailand has about 200 nuclear technicians, it will need more if the nuclear option is exercised. "Indonesia and Vietnam have opted to go nuclear," says Wannarat. "But the Philippines and Malaysia have not."
       The minister admits that nuclear remain a highly sensitive issue and it required the support of local communities if it is to succeed.
       "It cannot be achieved without the acceptance of the public," he told reporters in the southern Chinese city of Shenzhen.
       The government is keen to avoid a repeat of the 1986 tantalum plant fiasco in Phuket where a US$25-million (Bt840 million) facility was burnt to the ground when authorities ignored objections from angry villagers.
       Violent clashes also often erupt at several botched attempts by authorities to impose power plants on provincial communities.
       Deputy director-general of policy and planning Chavalit Pichalai concurs with Wannarat, saying "any nuclear proposal must be made trans-parent publicly if we hope to inspire confidence".
       At Daya Bay, the largest nuclear facility in China's Guangdong province that powers much of the needs of Hong Kong, Kowloon and the New Territories, executives at the enterprise took Wannarat on a thorough tour, which includes seeing the insides of a new nuclear plant.
       China Guangdong Nuclear Power Holding's vice chairnman chang Shanming showed the operations and training centres at the massive complex was among the world's "most modern, safest and efficient".
       When the plant was conceived in 1984, one million people in Hong Kong - then under British rule - protested, one executive notes.
       "Since it began operation 10 years ago, no big accident has taken place," says Jimmy Wang, general manager of China Nuclear Power Engineering. Wang who is a key member of the team was a 34-year veteran at Bechtel, the US giant that runs most of America's commercial nuclear plants.
       The facility has also earned several awards. At its entrance, tree-lined apartments for 15,000 workers with landscaped parks projects an orderly run industrial estate. The radiation levels at he plant is actually lower than those outside, says Wang.
       Wannarat says nuclear is a possible option as it does not emit carbod dioxide. But nuclear waste requires under-ground burial as it takes several hundred thousand years to decay.
       CLP Power, the Hong Kong-based supplier of electricity, owns 25-per-cent of Daya Bay and buys most of its power. Its Thailand chief Peck Khamkanist says the Chinese group is keen to invest in Thailand.
       Peck says CLP, which is already heavily invested in the Kingdom, also wants the ministry to consider using clean-coal. Atits facility at Black Point, CLP executives and the ministry's Dr Twarath Sutabutr, director of policy and strategy at the permanent secretary's office, show how lignite plants can be run more responsibly.
       CLP waters its coal supply three hours daily to prevent dust from spewing outside. It ranks safety and corporate social responsibility as key strategies. Exxon is its key partner at the coal-fired plant.
       The plant generates power for 2.2 million households, says CLP director general David Crighton.
       The company is one of Hong Kong's most respected and oldest names. Its flagship properties include the Peninsula Hotel.
       Dr Twarath says solar is becoming an important option as falling costs makes it an attractive choice.
       A local delegate observes: "No one minds if you build a solar farm next door. But nobody wants a nuclear plant nearby."
       A recent IAEA survey says while the technology is safe, opponents are more fearful some companies and governments lack the integrity to maintain sound standards.

Local fuel-conversion kit

2009-10-28T19:50:00.001-07:00

       Do you want to switch to E20 or E85 gasohol, but your car is not compatible?
       Yontrakit subsidiary Advance Auto Parts&Service,which is responsible for marketing and sales of auto parts and lubricants, has ventured into the alternativefuel business and is now offering an ethanol conversion kit called the FFI Platinum.
       It is an electronic upgrade program for the electronic control unit, so that a car's engine can run on E20 to E85 gasohol without the need for further tuning or any othe rengine modifications, said FFi product manager Puranima Jiamvijak.
       The FFI Platinum althers the air-fuel ratio in the combustion chambers and adjusts the timing of the fuel injectors.
       The product is widely used in the US and 42 other countries, Puranima said.
       The company plans to sell 2,000 FFI sets in the first year.

WIND STUDY SLOWS DOWN ALTERNATIVE-ENERGY PLAN

2009-10-28T19:49:00.000-07:00

       Implementation of the 15-year alternative-energy development plan is proceeding more slowly than planned, as the government has just commissioned a feasibility study of the potential to use wind in power generation, according to the Alternative Energy Development and Efficiency Department.
       "Private companies have proposed the sale of as much as 1,800 megawatts of electricity generated by wind. But only 160MW has been bought," director-general Krairit Nilkuha said yesterday.
       Krairit said the department had hired Silpakorn University to conduct a study of wind speeds in order to determine where wind-power plants should be located. The university has previously conducted similar studies in Cambodia and Vietnam.
       "It will take nine months to conduct the study. And this may rather delay implementation of the master plan as scheduled," he said.
       The alternative-energy development plan covers the period from 2008 to 2022.
       He added that companies had proposed the sale of 1,800MW of wind-generated electricity to the Provincial Electricity Authority, against the agency's target of 800MW over the next 15 years. However, to date only 160MW have been purchased.
       "We have to study the potential for wind power again, as there has been no study of the potential to harness wind at a level above 40 metres from the ground. We're now studying the wind-speed potential at 90 metres above the ground," said Krairit.
       However, the Energy Ministry is confident there will be an overall reduction in fuel oil consumption of 20 per cent a year through all types of alternative energy - equivalent to 7.5 million tonnes or Bt180 billion annually - by 2011, he said.
       The department is also studying the country's solar potential by hiring Silpakorn University for Bt10 million to conduct a study, which is expected to be completed in the next 10 months.
       Besides, he said, the department would focus on continuous promotion of energy conservation.
       Next year, it will use Bt2 billion from the Energy Conservation Fund to support research-and-development projects for improving production processes in the industrial sector.
       As to tax privileges for the energy-conservation project's second phase, Krairit said there were 138 participants. Of the total, 134 have been approved and 100 given funding support.

Extractor targets smaller palm farms

2009-10-28T19:48:00.000-07:00

       Community palm-oil extraction facilities are being marketed to serve small-scale plantations and support Thailand's emerging biodiesel industry.
       Expanding to a single site with a harvested area of 10,000 rai is no longer possible but smaller sites of about 1,000 to 3,000 rai have appeared in recent years to cash in on the alternative energy boom, said Nared Chin-inmanu, assistant vice-president of Great Agro Co, a unit of Charoen Pokphand Group.
       "These new plantations, mostly located far from crushing plants and biodiesel refiners, face higher expenses from transport and lengthy delivery times that could degrade palm nuts," he said.
       To solve the problem, Great Agro joined with the National Metal and Materials Technology Center (MTEC) to develop an innovative steamless palm-oil extraction machine at an affordable price.
       The CPP1500 model costs 4.5 million baht and can crush a tonne of fresh palm fruit each hour to create 200 litres of palm oil for a biodiesel plant.
       The steamless production process maintains crude palm oil (CPO) quality and curbs the environmental impact from waste water, said Mr Nared.
       Steam extraction has been widely used in Thailand. A machine with capacity to extract 15 to 60 tonnes of palm fruit an hour needs an investment of at least 100 to 150 million baht.
       The cheaper machine has attracted new operators, notably palm-nut traders in the South who want to diversify to supply refined palm oil for biodiesel plants.
       Last week, Great Agro sold its first machine to four palm-nut traders in Prachuap Khiri Khan, Krabi and Surat Thani. The company expects to sell 10 machines by the year-end.
       High oil prices have raised the value of energy crops and encouraged farmers to plant more palms, which Mr Nared estimates will cover 3.5 million rai next year - up from 3 million rai at present.
       Sakda Hengparinyathorn, a palm-nut dealer, plans to install the machine at a plant in Krabi next year and said the investment was viable because palm product prices were good.
       Extracted palm oil is currently 23 baht per kilogramme, a strong price despite the slide from more than 30 baht last year, he said.
       In addition to palm oil, investors can sell byproducts such as waste and kernels,which are used in animal feed.
       The government is attempting to promote alternative fuels from several crops - including ethanol from cassava and sugarcane, as well as biodiesel from jatropha and oil palm - to cut the cost of imported fuel.
       The Energy Ministry estimates diesel use in transport and industry at 49 million litres per day but only about 1.27 million litres are B100 biofuel or 100% crude palm oil.

Teheran will "never give up its right to nuclear energy"

2009-10-20T20:51:00.000-07:00

       Iran will never abandon its "legal and obvious" right to nuclear technology and will not halt uranium enrichment, its foreign minister said,despite talks the West hopes will lead to restraints on the disputed programme.
       "The meetings with world powers and their behaviour shows that Iran's right to have peaceful nuclear technology has been accepted by them ... Iran will never abandon its legal and obvious right,"Manouchehr Mottaki said yesterday.
       Talks between Iran and three world powers on a uranium supply deal to address concerns about Teheran's enrichment programme began on Monday in Vienna but their scheduled resumption yesterday was delayed by two hours.
       It was not clear whether the delay was related to Mr Mottaki's remarks, in which he also said Iran did not need France to be part of the tentative deal,whose politically sensitive details remain to be ironed out.
       French, US and Russian delegations were conferring behind closed doors outside the meeting hall.
       The meeting, hosted by the Inter-national Atomic Energy Agency, offered the first chance to build on proposals raised earlier this month to defuse a standoff over suspicions that Iran's uranium enrichment programme is a cover for developing nuclear weapons.
       Mr Mottaki praised the talks, which Western diplomats said were based on an Iranian agreement in principle to send uranium to Russia and France for processing into fuel for a Teheran reactor producing medical isotopes.
       "We see serious development in the talks ... the continuation of talks can lead to a deal over supplying Iran with the 20% enriched uranium," Mr Mottaki told a news conference in Teheran.
       "What we want is our right based on the Non-Proliferation Treaty. It says the member countries should be supplied with nuclear fuel for peaceful purposes by those members that have the fuel."
       The West hopes the step of farming out a large amount of Iran's low-enriched uranium reserve for conversion as fuel for the medical isotope reactor will minimise the risk of Iran refining the material to levels suitable for bombs.

WIND STUDY SLOWS DOWN ALTERNATIVE-ENERGY PLAN

2009-10-14T21:42:00.000-07:00

Iran dismisses US warning on nuclear issue

2009-10-13T05:17:00.000-07:00

       Iran dismissed yesterday a US warning that major powers would not wait forever for Teheran to prove it was not developing nuclear bombs,saying any threats or deadlines would have no impact on the Islamic republic.
       Foreign Ministry spokesman Hassan Qashqavi, speaking a week before talks on a proposal to send Iranian uranium abroad for further processing, also reiterated Iran's refusal to discuss its "nuclear rights" with the six world powers.
       "We have announced several times that we have nothing to discuss regarding that," he told a Teheran news conference in comments translated by Iran's state Press TV.
       "That means continuation of our activities within the framework of the nuclear Non-Proliferation Treaty and the safeguards agreement of the IAEA and enrichment on that basis," he said,referring to the UN nuclear watchdog.
       Such comments were likely to fan Western suspicions that Iran is seeking to win time by stringing out inconclusive talks while mastering nuclear technology and stockpiling enriched uranium of potential use for atomic energy or weaponry.
       Western diplomats believe Iran is trying to show just enough flexibility to keep trade allies Russia and China opposed to painful UN sanctions which could target its energy sector.
       The West suspects Iran is seeking nuclear weapons capability behind the facade of what Teheran says is a civilian enrichment programme aimed at generating electricity.
       Britain said yesterday it had ordered financial firms to cease business with Iran's Bank Mellat and Islamic Republic of Iran Shipping Lines to counter a "significant risk" posed by Iranian activity facilitating development of nuclear weapons.
       "The international community will not wait indefinitely for evidence that Iran is prepared to live up to its international obligations," US Secretary of State Hillary Clinton said in London on Sunday, alluding to UN demands for a nuclear halt.
       Asked about her remark, Mr Qashqavi said:"If there is a deadline or any kind of threat in their comments,they will not impact us in any way."
       In talks that both sides called constructive, Iran agreed with the United States, Russia, China, France, Germany and Britain in Geneva on Oct 1 to give UN inspectors access to a newly disclosed enrichment plant near the city of Qom.
       Western diplomats say Iran also agreed in principle to send about 80%of its stockpile of low-enriched uranium to Russia and France for processing and return to Teheran. This would replenish dwindling fuel stocks for a reactor in the capital that produces medical isotopes, mainly for cancer care.
       Iranian, Russian, French, US and International Atomic Energy Agency (IAEA) officials will meet in Vienna on Oct 19 to flesh out conditions, such as amounts of uranium to be sent abroad.
       "There are 150 hospitals dependent on this reactor ... We want to receive this fuel from outside. That's why we are going to have the meeting and we hope that we'll reach an agreement,"Mr Qashqavi said.
       But, echoing remarks by a spokesman for Iran's Atomic Energy Organisation, he also suggested Teheran could provide the highly processed fuel material itself if there was no deal on external supply.
       A Western security source in Europe said Iran earlier this year approved a plan to enrich uranium to 19.7%well above the level needed for generating electricity - to yield material for the Teheran reactor without foreign help. The plan set out a timetable of one year for fulfilment, he said.
       Iran needs uranium refined to a purity of 19.7% for its Teheran reactor.Uranium refined to 20% or above is classified as highly enriched theoretically usable for the fissile core of a nuclear bomb, although a minimum 80-90% is normally required for a viable weapon.

Official airs nuclear fuel needs

2009-10-11T23:07:00.000-07:00

       Iran needs up to 300kg of nuclear fuel to cover the requirements of a reactor in Teheran for 18 months,an official said on Saturday.
       Ali Shirzadian, a spokesman for Iran's Atomic Energy Organisation, also suggested the Islamic Republic could take steps to provide the fuel itself if it did not obtain it from abroad - a development likely to worry the West.
       Western diplomats say Iran agreed in principle at Oct 1 talks in Geneva to send about 80% of its stockpile of lowenriched uranium to Russia and France for processing and return to Teheran to replenish dwindling fuel stocks for a reactor in the capital that produces isotopes for cancer care.
       Mr Shirzadian referred to it as Iran's proposal, to turn over low-enriched uranium and receive fuel refined to 20%in return, in comments carried by Isna news agency.
       "This proposal is feasible and it has been decided that the different ways of realising this goal should be discussed,"he said."The amount of fuel this reactor would need depends on the way the fuel works and it would range from 150kg to 300kg for a period of 18 months."
       It was not immediately clear how much uranium Iran would need to send abroad. Iran's low-enriched uranium stocks total around 1.5 tonnes.
       Meanwhile, US Secretary of State Hillary Clinton said yesterday inter-national powers would not wait forever for Iran to prove it was not developing nuclear bombs. Britain's Foreign Minister David Miliband, whom Ms Clinton met in London, said Iran would never have a better opportunity to establish normal ties with the world but that it had to start behaving like a "normal country".
       Iran agreed at the meeting with six world powers on Oct 1 to allow UN experts access to a newly disclosed uranium enrichment plant near the city of Qom. Ms Clinton said the meeting was a constructive beginning but added that it had to be followed by action.
       "The international community will not wait indefinitely for evidence," she said.

Shell plans big f loating LNG plant

2009-10-09T22:01:00.000-07:00

       The Anglo-Dutch oil group Shell said yesterday it was preparing a blueprint for what could be the first floating liquefied natural gas (LNG) plant - and the world's biggest vessel - off Australia.
       If it goes ahead, the move would have significant implications for the industry because it could unlock "stranded" gas reserves previously considered too costly to develop because of their small size or distance from shore.
       "We're in the front end engineering and design phase now," a Shell spokeswoman told AFP."Once that's complete it will then be decided whether we go to the final investment decision."
       Shell refused to give a date when the giant facility, which would draw LNG from its Prelude and Concerto gas assets in the Browse Basin off northwest Western Australia, could be operational.
       But it said the floating structure, which reportedly would cost US$5.0 billion,would be some 480 metres in length,75 metres wide, and weigh about 600,000 metric tonnes.
       It would be significantly the largest vessel in the world when it's constructed,Malcolm Brinded, Shell's executive director upstream international, said on Thursday.
       Although the technology is commercially untested, the project would have the capacity to produce 3.5 million tonnes of LNG per year, as well as liquefied petroleum gas over its 20-year lifespan.
       The plant, in the shape of an enormous ship, would be towed to each spot and temporarily anchored to the seabed. Reports said it would be designed to withstand extreme weather such as a onein-10,000-year cyclone.
       Brinded said demand for LNG would probably rise as rapidly industrialising Asian countries such as India and China increasingly sought cleaner-burning fuels.
       "Gas is an absolutely key energy source as a bridge to a fully sustainable energy future, and I think it will be a bridge that will last most of this century," he told reporters.
       The technology is particularly relevant for Australia which is believed to have stranded gas reserves worth about A$1.0 trillion (US$890 billion).
       Western Australia is the centre of Australia's booming LNG industry which some analysts believe is on course to rival Qatar, the world's biggest producer.
       LNG is natural gas that is chilled for shipping as a liquid, then turned back into gas at its destination and distributed by pipeline.

IAEA to inspect nuclear plant

2009-10-05T23:46:00.001-07:00

       Inspectors are to visit Iran's new uranium enrichment plant on Oct 25, UN atomic watchdog chief Mohamed ElBaradei said yesterday, adding that "concerns" remained about Teheran's nuclear aims.
       Iran had given the assurance that the International Atomic Energy Agency (IAEA) inspectors would be given access to the new plant which is being built in a mountain near the holy city of Qom,south of Teheran, Mr ElBaradei told a news conference in Teheran.
       "There are concerns about Iran's future intentions and this is not a verification thing," he said."We are concerned but we are in no way panicking about Iran's nuclear programme."
       ElBaradei was speaking after holding talks with President Mahmoud Ahmadinejad and other officials about Iran's nuclear energy programme, which the West believes is a cover for a nuclear weapons production. Mr Ahmadinejad was later quoted by the Iranian news agency Isna as saying that all matters between the Islamic republic and the IAEA had been ironed out.
       "Because of good cooperation between Iran and the agency, important issues were resolved and today there is no ambiguous issue left between Iran and the agency," he said.
       Mr ElBaradei said that Teheran had been late in disclosing the fact it was building a new uranium enrichment plant near Qom.
       "Based on the IAEA regulations, all countries should inform the IAEA on the day they begin construction" of a nuclear plant, he said. Iran informed the agency on Sept 21, about a year after it started constructing it.
       Mr ElBaradei also announced that officials from the US, Russia, France and Iran would hold talks in Vienna on Oct 19 on the possiblity of enriching Teheran's uranium abroad.
       The meeting is a follow up to talks in Geneva last week between six world powers and Iran over Teheran's nuclear ambitions, the first such talks in 15 months. Iran tentatively agreed in Geneva to ship some of its stocks of low enriched uranium (LEU) abroad for processing into fuel for an internationally supervised research reactor in Teheran.
       Amid fears among Western powers that Iran may have amassed enough LEU eventually to create a nuclear bomb,senior US officials and analysts have said the move might help ease tensions.
       Mr ElBaradei said he was "very pleased" about the enrichment project as it was a "confidence building" initiative between world powers and Teheran.
       Uranium enrichment is central to the controversy: highly enriched uranium can be used in atomic weapons.

B10 biodiesel tests to start

2009-09-27T20:23:00.001-07:00

       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.

Time "for new world order"

2009-09-27T20:21:00.000-07:00

       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.

A NEW ASSET CLASS

2009-09-27T20:20:00.000-07:00

       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.

GOVT URGED TO STABILISE ETHANOL COSTS

2009-09-24T21:29:00.001-07:00

       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."

A piece of the action

2009-09-23T22:24:00.000-07:00

       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.

NATIONAL ENERGY PANEL MULLS INCREASING MARGINS FOR RETAILERS

2009-09-23T22:23:00.001-07:00

       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.

Experts wary of energy-crop drive

2009-09-21T23:26:00.001-07:00

       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."

IN SEARCH OF A BIOFUEL BONANZA

2009-09-21T23:24:00.002-07:00

       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.

Rocky road ahead to "Green Opec"

2009-09-21T23:24:00.001-07:00

       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.

ASIA POWERS UP

2009-09-19T20:58:00.000-07:00

       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

GREEN HURDLES LOOM FOR EIGHT PROJECTS

2009-09-19T20:57:00.000-07:00

       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.

HIGH DEMAND FOR CLEAN COAL BUOYS SCT

2009-09-19T20:56:00.000-07:00

       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.

Wind farms sprout amid energy push

2009-09-16T07:50:00.000-07:00

       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.

"Thai-European Forum 2009" Thailand's first Thai-European business forum

2009-09-14T20:07:00.001-07:00

       "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

"Natural" fuels ignite power struggle

2009-09-13T19:52:00.000-07:00

       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.

Power producers call for deeper cut in reliance on natural gas

2009-09-12T17:08:00.000-07:00

       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."

BUREAU TO LEAD ALTERNATIVE FUEL DRIVE

2009-09-11T06:10:00.000-07:00

       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.

Lanna unit upgrades factory

2009-09-08T20:02:00.000-07:00

       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.

Asean eyes role as biofuel export hub

2009-09-07T19:19:00.000-07:00

       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.

Green fuels to make up 20%

2009-09-06T20:38:00.000-07:00

       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.

Malaysian company acquires Pearl Thailand to tap reserves

2009-09-06T04:41:00.000-07:00

       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.

Non-oil industries demand attention

2009-09-03T20:14:00.000-07:00

       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.

Ethanol makers seek cassava

2009-09-01T20:47:00.000-07:00

       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.

Osaka keen on high-tech options

2009-08-25T21:46:00.000-07:00

       Japanese investment in Thailand is set to surge - with life-sciences and hightech companies, in particular, seeking to expand their presence - from the beginning of next year as the two economies recover from recession.
       Both Japan and Thailand will be more stable economically and politically next year, said representatives of the Osaka Chamber of Commerce and Industry (OCCI) during a three-day visit to Bangkok.
       Japan will hold an election by the end of this month, while the political uncertainties that have plagued investment in Thailand for years are expected to ease during the rest of the year, OCCI vice-chairman Makoto Kato said yesterday.
       "The Japanese economy is coming back from recession and companies will be ready to aggressively invest abroad from the beginning of next year," said Mr Kato, who is accompanying governor Toru Hashimoto and executives of 14 Osaka-based firms as they explore business opportunities in Thailand.
       "By then, I think the Thai economy will be also on the recovery path while political issues will see some improvement."
       Osaka, with 8.8 million residents, contributes 8% of the Japanese economy with a gross domestic product of $333.5 billion. The city is home to the whitegoods giants Sharp and Panasonic and to other leading Japanese brands such as Daihatsu, Kubota, Suntory, Takeda and Mizuno.
       "The new wave of Japanese investment in Thailand will be more in high-tech and value-added industries to avoid rising competition from lower-wage countries.Osaka itself has a strong expertise in life sciences, biotechnology and alternative energies and we are keen to invest here,"said Mr Kato.
       Technologies for hybrid vehicles and eco-cars, as well as for electric vehicles,are elements Osaka could deliver to Thai partners, he added.
       With 258 of its firms present in Thailand, Osaka is second only to Tokyo for its businesses' investment in Thailand.Japan is also Thailand's largest foreign investor with 130 projects worth more than 30 billion baht approved by the Board of Investment in the first seven months of this year.
       Thailand Trade Representative Vachara Phanchet said the time is right for Thai investors to invest in Osaka by forming joint ventures with Japanese partners.
       "The Japanese economy is bouncing back from the crisis but is not yet as strong as in the past. This provides a good chance for Thai companies to have greater access for investing there," he said.
       Japanese financial institutions, including the Japan Bank for International Co-operation and the Development Bank of Japan, have recently agreed to provide financial support to foreign small and medium-sized companies investing in the country, added Mr Vachara.
       Osaka is in the mid-western Kansai region, where bilateral trade with Thailand has increased since the launch of the Japan-Thailand Economic Partnership Agreement in November 2007. Exports from Kansai to Thailand stayed at about $6 billion with imports totalling $3.6 billion last year.

Ethics and rights protection seen lacking in energy plans

2009-08-25T21:45:00.000-07:00

       Asia-Pacific countries are being encouraged to incorporate ethics and human rights protection into their energy policies.
       Experts yesterday said many countries had not yet included these two factors into their energy development plans.
       John Beaton, executive director of Australia's Academy of Social Sciences, told a Unesco forum on ethics and energy technologies held in Bangkok the region faced common challenges in protecting the dignity of people while implementing its energy policies.
       In Australia, Mr Beaton said, politicians did not bother about public opinion when it came to power development projects, including nuclear power plants,as they were obsessed with how to win elections.
       "It's only recently the National Academy Forum, comprising scholars from pure sciences, social sciences, humanities and technological sciences, have come together to debate how to deal with the issue and public opinion," he said.
       Shu-min Huang, director of the In-stitute of Ethnology from Taiwan, said governments did not seem to take adequate heed of, or take the lead in, ensuring the right to information and sharing goals in environmental protection.
       "Ethics and social sciences have yet to be considered an integral part of the methodological conceptualising of energy policy decisions, even in my country," Mr Huang said.
       Darryl Macer, Unesco regional adviser,said the more governments embraced ethics in their energy technology choices,the more villagers could be involved in bottom-up decision making.
       "This empowerment could help people gain energy knowledge and control of their choices," Mr Macer said.
       Thara Buakhamsri, Greenpeace coordinator, agreed that ethics and human rights had yet to become part of policy makers' mindsets.
       "The hyped concern over global warming has become a pretext to promote nuclear power to replace fossilbased fuels without asking what the Thai people want," Mr Thara said."Policy makers have always designed energy plans based on their own convenience."

2%rise in power use signals recovery

2009-08-21T20:34:00.000-07:00

       National power consumption is up by 2% this month, the first increase in eight months and a sign of recovery, said Electricity Generating Authority of Thailand (Egat) governor Sombat Sarntijaree.
       Consumption was up to 8,293.7 million units (kilowatt/hours) in the first 20 days of August,2% more than in the same period last year.
       "This is the first time that power use has been on the rise since the economic crisis began. Since October last year until last month, power consumption has kept declining in line with the slowdown in industry and consumers' purchasing power," he said.
       Power demand was below last year's figures from January to July. Consumption in January was down by 13% to 10,140 million units, in February by 0.03%to 10,862 million, March by 3% to 12,628 million, April by 3.3% to 11,898 million,May by 1.7% to 12,552 million, June by 3% to 12,389 million and July by 2.23%to 12,509 million.
       In the first quarter there was a 5.5%decline to 33,615 million units.
       Last year power consumption edged up almost 1%, with political conflict and high oil prices curbing growth. This year Egat expects power consumption to shrink by between 2% and 2.5% from 2008, said Mr Sombat.
       Until this year, Thailand's power de-mand had fallen only once in the last 25 years - during the financial crisis in 1998, when demand slipped 2% before growing 2% the following year.
       "The positive growth of demand was genuinely an indicator for the economy that it was recovered. We hope the positive growth this time will also be the same," said Mr Sombat.
       He also said Egat was now assessing the damage in suffered from PTT's gas pipeline leak last weekend and would bill PTT."We handled the immediate crisis by using other fuels instead of natural gas and these fuels were more expensive than gas," he said.
       An extra 400 million baht in production costs corresponds to one satang per unit of fuel, he said.
       The incident shows that the country badly needs to improve its power management, said Egat deputy governor Somboon Arayaskul."At that time [last weekend], we needed to use reserve capacity,which is about 25% of total power capacity. Yet we had to push hydroelectric generators to work exceeding their limits to control the situation," he said.
       This reflected Thailand's excessive reliance on natural gas, which accounts for 74% of fuel used in power generation,creating a high risk of blackouts, he said.
       Developed countries balance fuels such as gas, coal, nuclear and hydro.When one fuel is disrupted, the impact is limited and others can compensate.

Egco starts up green power

2009-08-20T22:07:00.000-07:00

       NET PROFIT FOR H12009 vs H12008 B4.6 billion B4.2 billion
       Egco Group Plc, Thailand's secondlargest private power producer, will spend 2 billion baht developing renewable energy next year, president Vinit Tangnoi said yesterday.
       The company is conducting a feasibility study and seeking equipment suppliers and contractors for the projects.
       The plan envisages an eight-megawatt wind turbine project worth one billion baht in Nakhon Ratchasima and a solar power grid with a capacity of 13.5 megawatts in Lop Buri.
       Its renewable business will invest through its subsidiary Natural Energy Development Co, the equal-stake venture of Egco, Hongkong-based China Light Power Asia and Diamond General Asia, a subsidiary of the Japanese industrial conglomerate Mitsubishi Heavy Industry.
       Although solar power production is not viable commercially at present due to the high cost, the company is hopeful of gaining support from the climate change concern body, the United Nations, in carbon-credit trading.
       "We can't sell power from our solar farm, even with the adder tariff (a special purchasing rate that is higher than that for conventional fuels) provided by pol-icymakers to help us shoulder the high cost," Mr Vinit said.
       "But we hope if we are success in receiving the certification on carbon credit from the United Nation, the carbon-credit income should be enough to offset the cost and make the project viable."
       The Electricity Generating Authority of Thailand has offered special purchasing rates for power generated from renewable energy.
       For solar power, producers get eight baht a unit more than the three baht that Egat pays for power generated from mainstream fuels.
       For wind power, producers will get an adder tariff of 4.50 baht a unit, Mr Vinit said.
       Egco's first-half revenue rose 11% to 19.7 billion baht from 17.7 billion baht a year earlier, with net profit rising 9%year-on-year to 4.6 billion baht from 4.2 billion baht.
       He attributed the growth to the additional power output from its newly started-up power plants in Saraburi,Kaeng Khoi Power Plant unit 2 and the Philippines' coal-fired Quezon power plant.
       The company also confirmed the startup schedule of its new 1,086-megawatt hydropower plant in Laos, Nam Theun 2, on Dec 15 as planned.
       Shares of EGCO closed yesterday on the Stock Exchange of Thailand at 75.25 baht, unchanged, in trade worth 22.36 million baht.

Australia sets "green" target

2009-08-20T22:05:00.000-07:00

       Australia yesterday passed a clean energy law requiring the country to produce 20% of its power from renewable sources by 2020 in a move that could draw billions of dollars in green investment.
       The Australian senate passed the government-sponsored bill just days after parliament rejected furtherreaching but controversial legislation aimed at slashing carbon emissions.
       "This is an extremely important achievement and it is one of the key institutional changes in the battle that the government is undertaking to deal with climate change," said Greg Combet,deputy minister for climate change.
       "The passage of the legislation will help unlock investment in renewable energy generation and of course in jobs associated with those industries in areas like solar and wind power, amongst others," Combet told parliament.
       While the lower house has passed the bill, it will return there for approval on a few minor technical changes before formally becoming law.
       Electricity companies will now be forced to buy a portion of their power from renewable sources under the laws,which passed without opposition after being split from the controversial emissions trading bill on Sunday.
       Origin Energy, Australia's largest green energy provider, welcomed the renewable energy laws but said they were a poor second to the tougher carbon pollution reduction scheme (CPRS)proposed under the emissions bill.
       "In the longer term, the CPRS is the lowest-cost way to drive investment in cleaner technologies," said Origin executive general manager Carl McCamish."We encourage all political parties to negotiate a workable agreement to ensure that the CPRS is passed as soon as possible."
       Combet warned that without the CPRS, emissions would be 20% higher in 2020 than they were in 2000.
       "It is the principal mechanism by which we will go ahead to reduce greenhouse gas emissions in this country and play a constructive role in international negotiations over climate change," he said.
       The conservative opposition joined forces with the Greens and independents in the senate earlier this week to reject the combined renewables-emissions bill, which aims to cut carbon pollution by five to 25% by 2020.
       The Greens supported the separate renewable energy plan despite failing in a bid to have the target for renewables lifted from 20% to 30%.
       Greens Senator Christine Milne said the bill's passage showed the centreleft Labor government was willing to change its emissions trading plan to get it through parliament ahead of UN climate talks in Copenhagen.
       If Labor reintroduces the plan after three months and the Senate again rejects it, Prime Minister Kevin Rudd could call an early election ahead of the late 2010 deadline.
       But Rudd, who is riding high in opinion polls, has said he does not have the "slightest intention" of going to an early vote, and this week warned the Senate risked damaging Australia's economy if it again rejected the scheme.
       Rudd, who won office in 2007 on a strongly green platform, has described climate change as "the greatest moral challenge of our generation" for Australia, which is in the grip of the worst drought in a century.

UMS expects strong H2 revenue rebound

2009-08-19T20:09:00.000-07:00

       The coal importer Unique Mining Services (UMS) expects a strong rebound in its financial performance in the second half of the year as the improving global economy pushes up coal prices and demand.
       Coal could hit US$80 per tonne in the fourth quarter, up from $75 now,said Piya Tanthanaphiphat, acting assistant managing director.
       Three months ago, coal fell to a yearlow of $63 per tonne, for coal with a relatively low heat content of 5,000 kilocalories per kilogramme.
       "If the economy sees signs of recovery, especially in the fourth quarter,industries that use coal will start to stock up again," Mr Piya told investors at a briefing at the Stock Exchange of Thailand yesterday.
       "The increase in the price of oil will also cause business operators to continue changing from fuel-oil boilers to coal boilers. We should see this shift over the next 6-12 months."
       UMS, an importer of Indonesian coal,mostly supplies local small and medium-sized companies.
       The company will enjoy a good margin on second-half sales as its current stock was purchased at lower prices earlier in the year, said Mr Piya, who heads the company's investment development department.
       UMS is also considering a 1-billionbaht joint investment in a new mine in Indonesia. The company is reviewing three possible sites, with a decision expected by the year-end.
       To help finance the investment, the company will not pay interim dividends for its first-half performance.
       UMS posted first-half revenue of 1.39 billion baht, down from 1.56 billion the same period last year. First-half net profit fell to 191.49 million baht,down from 240 million year-on-year.
       Second-quarter revenue slid to 651.45 million baht, down from 704.9 million in the same period last year. Secondquarter profit dropped to 84.3 million,down from 103.7 million year-on-year.
       But second-half revenue is expected to rise 20% from the first half to 1.7 billion baht, said Mr Piya. In any case,full-year revenue is projected at 3.1 billion baht, or about 10% less than last year.
       UMS shares closed yesterday on the Stock Exchange of Thailand at 12.80 baht, down 50 satang, in trade worth 23.686 million baht.

New push coming for coal and nuclear

2009-08-19T20:07:00.000-07:00

       The government will put more effort into educating the public about the essential need for clean coal technology and nuclear power in order to balance fuel usage, says Energy Minister Wannarat Channukul.
       Energy policymakers are again revising the 15-year power development plan (PDP) to place greater emphasis on coal,nuclear and renewable fuels and less emphasis on natural gas.
       "Coal-fired power and nuclear power are the most preferred fuels, considering their low costs and emissions," Mr Wannarat said yesterday.
       "Yet these fuels are opposed strongly by people. We have to put the utmost effort into making them understand and accept them. This is a very tough task."
       Local activists in 2001 forced the cancellation of plans for two large coalfired plants with total capacity of 2,100 megawatts in Prachuap Khiri Khan, because of environmental impact. The fuel was changed to gas and the plants moved to Ratchaburi and Saraburi.
       An incident over the weekend in Kanchanaburi has given new impetus to efforts to change the long-term PDP.
       A pipeline leak in Kanchanaburi on Sunday disrupted gas supplies from Burma. At the same time, repairs were under way to a leak in the pipeline bringing gas from the Gulf of Thailand.
       The Electricity Generating Authority of Thailand had to increase hydroelectricity output at the Srinakarin Dam,leading to floods that damaged communities nearby.
       Pornchai Rujiprapha, the ministry's permanent secretary and chairman of Egat, said the agency was open to hearing the views of environmental activists and others about the PDP revision.
       Natural gas now accounts for 74% of the fuel in power production, imported and domestic coal 18%, hydroelectricity 6%, with the rest renewable energy and power from Laos and Malaysia.
       Under the former PDP, revised in 2007,natural gas usage would be reduced to 38% of total power output by 2021, with imported power from neighbouring countries 28%, coal 21, nuclear power 10% and renewables the rest.
       Purchases from abroad will also need to be diversified to reduce heavy dependence on one country, he said.

Nurturing the best ideas

2009-08-18T20:18:00.000-07:00

       By day, Kishor Gadkaree puts samples of a honeycomb-shaped filter into a miniature gas chamber that simulates the insides of a coal-burning smokestack.These rigorous tests will take years. But by night, Gadkaree dreams that this filter, which is designed to neutralise the poisonous mercury spewed by the world's coal-fired power plants,will be the next big hit for a nearly 160-year-old company that recently survived a brush with extinction.
       At its newly expanded research haven, Corning Inc is betting tens of millions of dollars that tougher environmental regulations, plus a few more years of experiments, will turn the mercury trap into something that can generate at least $500 million to $1 billion (17 billion baht to 34 billion baht) in annual sales.
       "We are going over those hurdles one by one,"Gadkaree said as he showed off his shelf-top mini-flue at Sullivan Park, a hilltop campus outside this rural town of 10,000, which gave the company its name."We can show it works. Now we're trying to find out how much customers will pay for it."
       Corning is famed for entwining specialty materials in potent technologies, from figuring how to make light bulb blanks for Thomas Edison in 1880 to devising hair-thin optical fibres that helped spur the internet revolution.
       "We have set ourselves up to be patient," said Mark Newhouse, who oversees Corning's development of new technologies."We talk about how many businesses we will create in 10 years,not in a couple of years."
       But while Corning amassed a decade-afterdecade array of breakthroughs ranging from ovenproof Pyrex dinner plates and cathode ray tubes to auto-pollution filters and space-telescope mirrors, the company has had to endure multiple reincarnations.
       Never did a cyclical slide turn so ugly as in 2001 to 2002, when the dot-com bust punctured the booming telecommunications equipment market.
       Lopsided investments in fibre optics almost capsized Corning - its stock tumbled from $113 in September,2000, to a mere $1.10 in October,2002, as annual revenue shrank to $3.2 billion from $7.1 billion.
       Corning quickly reshaped itself as the world's biggest maker of liquid-crystal-display (LCD) glass for flat screen televisions and computers. The ultra-thin monitors delivered 90 percent of Corning's $2.2 billion profit in 2007.
       Nonetheless, the company has learned the hard way that it needs to spread its risks over a variety of high-growth businesses.
       During its perilous downturn, former chiefexecutive James Houghton came out of retirement to right the ship launched by his great-greatgrandfather, Amory Houghton Sr, when he bought a stake in a Massachusetts glass-maker in 1851.Known to some as "Dark Angel" for his 1980s moves to shelve slow-growth Corning businesses,upon his return James Houghton mothballed fibre plants and slashed the work force from 43,000 to 22,500. He offloaded the once-stellar photonics business, which made the optical switches and other exotica that manage the rapid flow of light signals through optical fibre.
       The patriarch and his chosen successor,Wendell Weeks, also turned back the clock. They championed wider exploration of arenas in which Corning boasts expertise, a more freewheeling philosophy once associated with Bell Laboratories and other high-tech powerhouses.
       One key difference: while ensuring an unusually high 10 percent of revenue is allocated to research,Corning's management imposed a more rigorous,company-wide system for nurturing the best ideas along, step by step. Out of hundreds of projects each year, it chooses to keep pursuing just a handful seen as likely to hit the jackpot.Among the latest high-wager hopefuls, in addition to the mercury filters for coal plants: Green lasers to equip mobile phones with projectors, microreactors to enhance chemical processing and silicon bonded to glass to extend battery life for hand-held electronics.
       "Anything related to glass and glass derivatives,they have probably the best, most concentrated group of experts on the planet," said analyst C.J.Muse of Barclays Capital.
       With the economy hurling missiles, Corning's stock stands about $11(375 baht) a share, down from $28(955 baht) in May. The company recently trimmed its plans for 2009 capital spending by up to $200 million (681.4 million baht) after an abrupt slowdown in LCD TV sales - a nagging reminder that relying on one colossal cash cow product leaves it vulnerable to cyclical swings.
       So far, research is largely unscathed. With lab space enlarged by a $300 million investment last year, Sullivan Park is packed again with 1,800 scientists, engineers and technicians, up from 1,100 in 2002.
       Gadkaree, who has 67 patents in 25 years at Corning, is one of 15 active research fellows who are given more leeway to explore projects of special interest.
       In the 1990s, he developed a water-purification filter that was shelved because the market wasn't deemed big enough. But because it was also capable of capturing metals, the filter got another look in 2004 when signs resurfaced that a longanticipated federal law eventually could impose a 90 percent reduction on mercury emissions.
       Burning coal sends an estimated 300 tonnes of mercury into the air annually, with US power plants alone accounting for nearly 50 tonnes. As many as 630,000 children born each year in the US are at risk of learning disabilities and physical ailments related to the neurotoxin, according to the Environmental Protection Agency (EPA).
       Laws in New Jersey, Connecticut and Massachusetts already require coal plants to snare at least 85 percent of mercury emissions, and more than a dozen other states led by Maryland and Pennsylvania are imposing their own stringent restrictions beginning in 2010.
       Corning expects its carbon filter will be more cost-effective than a current technique of injecting activated carbon-based chemicals into flue gas.While the chemicals absorb mercury, they can also contaminate a plant's fly ash residues, which are an ingredient in cement and other construction materials.
       The new filter employs a ceramic honeycomb that was invented by Corning in the early 1970s,and sits at the heart of the smog-busting catalytic converter in vehicles. The filter contains hundreds of tiny passages impregnated with chemicals that stabilise and collect mercury particles.
       The big question is whether the filter will be able to capture 90 percent of mercury "as we make the filter larger and run ever longer periods",Gadkaree said."In 2004, I would have said the probability [of success] is about 10 percent. Now I'd say maybe 50 percent."
       Even those odds are encouraging to Corning,given how big the market for mercury abatement could be. Coal-fired utilities are the largest source of mercury pollution that remains unregulated by the EPA, and yet coal is plentiful and homegrown.
       Despite the rise of wind, solar and other renewable-energy alternatives,"there's at least 20 years where even we will concede that there's a role for coal", said John Rumpler, the senior lawyer for Boston-based Environment America."That's a long time horizon for anybody to be investing in mercury-control technologies."
       Gadkaree,55, knows too well that without customers, great innovations go nowhere. He hopes this one can leave a bigger mark.
       "Getting a paycheck, everybody can do that,right?" he said."But 'you did something good'- at the end of my career, I want to be able to say that."

TISTR in deal to make gas from wood

2009-08-18T20:16:00.000-07:00

       Thai and Japanese scientists are looking at collaborating to produce an alternative energy source to fossil fuels by creating gas from wood.
       The Thailand Institute of Scientific and Technological Research (TISTR)signed a deal on Monday with Japanese energy firm Kansai Corporation to develop the "gasification" technology which produces gas from wood chips.
       Wood chips emit methane when heated to between 400 and 1,200C,said Wirachai Soontornrangsi, the TISTR researcher heading the project.
       "If we can operate a gasification plant on a commercial scale, we will have another renewable source of fuel for vehicles and electricity-generatin g systems," Mr Wirachai said.
       "It could help the country save bi g money on oil purchases."
       Thailand has plenty of materials,such as wood chips and biomass, that can be used to create methane via such a process, but it lacked technical skills.
       The TISTR has studied the technology for four years and now aims to produce methane commercially.
       Kansai's chief engineer, Hiroyuki Monobe, said the company had researched and developed gasification technology for many years.
       The technology uses a catalyst to produce the high temperatures required to create the methane, which produces fewer greenhouse gas emissions than other energy sources.
       "We have good technology but lac k the materials," Mr Monobe said."The Thai-Japanese cooperation is a perfect match for the gasification project, which is a promising source of energy to replace fossil fuels."

Banpu plans to increase coal output by 12%

2009-08-18T00:07:00.000-07:00

       Banpu Plc will boost its coal output next year by 2010 in anticipation of higher demand as the global economy returns to growth.
       New output will come mainly from its mines in Indonesia, and some from China. Overall output will reach 23 million tonnes in 2010, from an estimated 20.5 million this year, said Banpu president Chanin Vongkusolkit.
       The upswing in output is planned in line with higher demand as the global economy recovers next year, he said.
       "Global demand for coal from the second half onward may recover significantly to cope with a better global economy," he said yesterday.
       The price of coal is expected to rise next year, he said. But it is unlikely to reach July 2008's peak of $170 per tonne.
       Banpu expects this year's group revenue to be on par with 2008-56.8 billion baht, with a net profit of 9.22 billion - despite higher sales volumes driven by cheaper coal prices.
       "Coal prices are sensitive to crude oil prices. Coal prices have been down since the price of crude collapsed last year,"he said.
       Banpu recorded much stronger performance in the second quarter compared with the first, on the back of increased holdings in China, larger sales volumes and higher prices for its highergrade Indonesian coal.
       Banpu's second-quarter consolidated profit totalled 3.98 billion baht, up 73%year-on-year, on sales of 12.93 billion, a 17% increase from a year earlier. Firsthalf profit doubled to 8.78 billion baht from 4.37 billion a year earlier.
       The company plans next year to spend $20 million to expand the operational area of its Indominco mine in Indonesia,increasing output by 2 million tonnes.
       The firm, however, has yet to complete its five-year investment plan, ending in 2013, which it had intended to finish early this year.
       "We had planned to finish the plan early this year, but coal prices have been so volatile. We had to revise the plan to catch up with the economy. But I think we will probably complete it within this year," said Mr Chanin.
       Banpu's previous investment plan ended in 2008, with the company spending $400 million more than the planned $660 million. The additional amount was used to finance the acquisition of coal mines in China.
       The new business plan will focus on increasing the firm's overseas presence and positioning it as one of the coal mining industry's top players in Asia.Banpu will focus on coal and power in Indonesia, China and Australia, said Mr Chanin.
       "Over the past 10 years, we have developed and improved our technology and human skills. We are confident that we are ready to be one of the leaders in Asia," he said.
       Banpu is keen to acquire the Berau coal mine in Indonesia from a local operator. Bidding will open in September.
       The firm has set a $208-million budget for this year, most which will be used to develop coal mines in Indonesia, such as Bontang, Bharinto and Indominco.
       Shares of Banpu closed on the Stock Exchange of Thailand at 398 baht, down 18 baht, in trade worth 1.58 billion baht.

ENERGY, AGRICULTURE EXPERTS WARN ON BIOFUELS PLAN

2009-08-18T00:06:00.000-07:00

       Plenty of proposals were floated at last week's "Alternative Energy Development" roundtable, alogn with a warning to the government that unless it tackled the issues raised, Thailand's ambitious goals for the biofuels industry would not be achieved.
       Most of the proposals were centred on overcoming obstacles to increasing production of the biofuelsethanol and biodiese-obstacles that persist despite an abundant supply of raw materials.
       On ethanol, Anusorn Sangnimnuan, president of Bangchak Petroleum, said it remians unclear how Thailand will be able to boost domestic ethanol consumption to 9 million litres per day by 2022, based on the current petrol consumption of 20 million litres a day. Doing so, he said, would require an ethanol content of more than 20 per cent. Though farmers would be pleased, oil retailers with their wn refineries would be discouraged by the drop in demand for refined oil. To express their unhappiness with such a situation, they could shelve a plan to increase the number of petrol stations that sell high-ethanol-content products, he said.
       "E85 should be just an option, while E10 and E20 should be core products. In that case, about 4 million litres would be exported, potentially to japan, South Korea and China. But Thailand will need to do more marketing to persuade them to mix ethanol with their oil products, probably through joint investment in Thailand," he said, He also suggsted the Energy Ministry set a timetable for when it will abolish the sale of 91-and 95-octane petrol.
       Citing the construction of an increasing number of tapioca-based ethanol plants, Anusorn voiced concern over pricing, as tapioca costs less than molasses-an alternation. He said it would be unfair if ethanol produced from both sources quoted a similar price.
       On the subject of Thailand's goal of becoming an ethanol hub, Anusorn pointed out that ethanol export prices are now set by traders in Singapore. If they retain this role, Thailand would simply be a producer and reap no benefits from pricing, he said.
       Anusorn also urged an amendment to the oil trading law, which currently bars retailers from exporting ethanol producers to export the product themselves, he said, as they do not have their own ports and tanks, as some retailers do.
       "If we're to be the hub, we must have our own technology, while personnel must be improved. If we are good, we can export our expertise to help our neighbours," he said.
       On biodiesel, Anusorn suggested the level of biodiesel conten in diesel be raised in line with any additional palm-oil supply, to assure farmers of income. As the country's palm plantation area is to be increased by 500,000 rai per year from 2008 to 2012 the planned compulsory ratio of 5-per-cent biodiesel could be moved forward from 2012, he said.
       As plam-oil suuply is below expectations, he suggested establishing a minumum price in the initial period to encourage the establishment of more plantations.
       Apichart Jongsakul, director-general of the Office of Agricultural Economics, urged the government to look closely at the value chain of palm oil. While tapioca starch can be used in the manufacturing of citric acid, and palm sterine-ther "hard" part of palm oil-can be used in cosmetics and weapon manufactruing, if such manufactruing activities occur it would increase demand for palm oil. This would benefit farmers more than a price guarantee, he said.
       Wiwan Boonyaprateeprat, secretary-general of the Thai Oil Palm and Palm Oil Association, said palm growers are concerned about the coming free trade within Asean, which would allow imports and dampen domestic prices. As 90 per cent of Thai growers ar small operators, she said their plantation costs are higher than those of their counterparts in Malaysia.
       She also expressed concern over price volatility resulting from high concentrations of palm-oil factories in some areas. Running at half capacity, the prowers. Some farmers were encouraged by the high price and cut their young palm kernels early. Low yields then pushed down the price sharply. When factoreis have to source palms from other provinces, they see an increase in operating costly than imports.
       "A zoning system should be in place. A factory must be located in a designated area within which supply can be channelled directly to it," Wiwan said. Apichart noted that Thailand has the potential to become an ethanol hub, as Thailand is the world's largest tapioca exporter, though not the country with the largest output.
       Thailand also has a significant share of the global sgar market.

B80m for biogas projects

2009-08-18T00:05:00.001-07:00

       The Energy Ministry has earmarked 80 million baht to invest in building biogas projects in 10 municipalities, according to Energy Minister Wannarat Channukul.
       The ministry is following up on the success of pilot projects in five municipalities, in collaboration with the local administrations and universities, to build biogas plants that use methane from sludge and waste.
       The pilot projects started in 2006 and have resulted in better waste management in communities as well as electricity cost savings. "Not only are the municipalities managing waste better, they also can produce fertilisers and use methane as a cooking gas in the community," Mr Wannarat said.
       The selected municipalities produce 24,000 tonnes of waste per year out of a national total of 14 million. About 74% of the waste in the target municipalities goes to recycling plants or incinerators and the rest to landfills.
       The 10 municipalities are expected to produce 635,100 cubic metres of biogas per year, equivalent to 300 tonnes of liquefied petroleum gas, with carbon emissions cut to 5,700 tonnes.
       Local administrations will provide the sites and workers. Bids will be called for contractors by the end of this year and operations should start 12 to 18 months afterward.
       The selected municipalities include Sam Ngam in Nakhon Pathom, Kok Kroud and Phimai in Nakhon Ratchasima, Wang Kapi in Uttaradit, Yan Ta Koa in Trang, Klang in Rayong, Isan in Buri Ram, Dej Udom in Ubon Ratchathani, Ban Klang in Lamphun and Singha Nakorn in Songkhla.

POWER TO THE PEOPLE

2009-08-18T00:03:00.000-07:00

       Mae Ya Noi is a small Karen hill tribe village about 80km south of Chiang Mai province. To get there, you wind your way to Doi Inthanon National Park, then veer left onto a dirt road. Through soaked rice paddies and dense cornfields, it takes another hour to arrive, crossing narrow pot-holed tracks made muddy by the monsoonal rain - a time when the village is cut off from outside if the rain comes down too fiercely.
       Mae Ya Noi is not on the map, so it is not surprising that this village never had electricity.
       Yet its remote location did not spare this village from change.
       Ten months ago, a 23kW microhydropower plant was built in this village.Constructed by utilising the laws of gravity and the plentiful water supply, it now provides 100 households across three villages with the ability to do what most in Thailand take for granted - turn on a light whenever they want.
       Monsit Anurakrimtarn, the village leader,believes it is just the start of things to come.
       "With electricity, we can do so many things. For the first time, the temple and village school can function at night as well as during the day. Already we have started classes for older villagers who come after working in the fields. I think the electricity will widen everyone's perspective, teaching them about a world outside Mae Ya Noi."
       Mae Ya Noi is not alone. Its very small power plant - producing less than 1MW of electricity - is one of more than 180 very small power plants - fuelled by clean energy like biomass, biogas, wind, and solar, and hydro like this one - dotting the landscape in villages and towns across Thailand. That number is expected to double in the next two years. This explosion of renewable-energy alternatives did not happen by accident. It had its genesis in a forward-thinking decision taken eight years ago.
       In 2001, the UNDP Thailand joined forces with the Global Environment Facility and the Energy for Environment Foundation to tackle climate change by promoting the use of renewable energy.
       The aimwas to show that Thailand could lessen its dependence on foreign oil and in the process substantially reduce its carbon emissions.
       "When the project started, banks were not familiar with the renewable-energy industry. Now that we have shown how successful it can be, banks are actively searching out power plants to invest in,"said Piyasvasti Amranand, chairman of the advisory board of the Energy and Environment Foundation (E for E) and a former energy minister.
       With the backing of the Thai government,which provided financial incentives to make the renewable-energy industry more competitive, the project has been a success.
       By 2008,1,252MW of renewable-energy capacity - enough to supply households in Bangkok, Nonthaburi and Samut Prakan provinces - was operational throughout Thailand. This is an almost-fourfold increase from 1999, and the equivalent of 21% of the power provided by the Metropolitan Electricity Authority (MEA).
       It's estimated that renewable-energy plants in Thailand have already reduced greenhouse gas emissions by 5 million tonnes annually. This is the same as taking every one of Thailand's 1.5 million cars off the road for a year.
       Mr Piyasvasti believes it's just the beginning."With the existing technology,Thailand should be able to produce about 8,000MW worth of renewable power by 2020. If technology advances and we make greater use of wind and solar power, this figure could be much, much higher."
       The small-scale local approach, epitomised by Mae Ya Noi, is having results. In eight years, Thailand has gone from being a renewable-power backwater to a leader in the region.
       The Biomass Clearing House - a onestop shop set up by the project to share the latest renewable-energy information - has been so successful that it is pumping more investment into the sector, including wind, solar and hydro projects, through a new Green Energy Mechanism (GEM). It does this by bringing together Thailand's top companies that view investment in renewable energy as not just a savvy business decision, but also a way to showcase their social responsibilities. Like a diner in a restaurant, an investor is now presented with a menu of renewable-energy options.They can choose to put their money into whatever project fits their investment needs.
       This is how the people of Mae Ya Noi came to have continuous electricity.Investors in the Green Energy Mechanism provided the capital for the hydropower plant's construction, the Department for Alternative Energy built it, and the local community maintains it and gains the benefit.
       To an elderly Mae Ya Noi villager, it's a decision that has had profound effects.
       "I'm very happy with the electricity. I can now read when I want and cook when I want. I don't want my life to change too much, but electricity is great."
       Adam Sims is a communication officer at the United Nations Development Programme (UNDP). The article was written on a field trip taken last month.
       How are you helping to reduce your carbon footprint?Share your eco-friendly activities or comment or disapproval by emailing outlook@bangkokpost.co.th.Write "Earth Alert" on the Subject line.
       "'With electricity, we can do so many things'

Asia Green to sell more coal

2009-08-18T00:00:00.000-07:00

       Asia Green Energy Plc (AGE) aims to increase its coal sales by 20% to 1 million tonnes this year, given the global economic rebound and a price gap that could encourage industrial operators to switch from fuel oil to coal for energy,said assistant managing director Somyos Thitisuriyarux.
       But the SET-listed coal importer and distributor said yesterday that in the worst case its turnover could slip by 10% this year from 2.35 billion baht in 2008, with net profit sliding in line with coal prices down from 123 million baht last year.
       In the first six months of 2009, AGE's revenue increased 15% year-on-year to one billion baht as coal from Indonesian mines rose 14.6% by volume to 414,072 tonnes. But net profit sank from 68 million baht to 39 million as the margin shrank 8% year-on-year.
       Coal prices have stabilised between US$60 and $70 per tonne since the past quarter, or 2,600 baht as quoted locally,while crude has risen steadily to $70,said Mr Somyos. With fuel oil now at 13-14 baht a litre, it is 40% more expensive than coal, he said.
       "Last year,7% of 30,000 boilers at industrial plants nationwide were modified from fuel oil to coal to save about 30%. As the gap has widened, we expect more and more industrialists to switch to coal this year," he said.
       AGE's customers are up to 520 from 500 at the end of last year, with the energy sector climbing to contribute 24%of sales volume, while food provides 29%, textiles 23% and paper 14%.
       "We have remained on track to boost sales from 840,000 tonnes in 2008 to 1 million tonnes this year. Many sectors,including energy, have placed more orders but several were made for restocking," said Mr Somyos.
       Although the global economic picture in the second half is unclear, without unexpected incidents the economy could steadily improve both locally and globally.
       But AGE's sales revenue for 2009 will not be as good as projected earlier, when 20% growth was considered possible,he said. Coal prices are expected to stay between 2,500 and 2,800 baht this year,compared with 2,800 to 3,200 baht last year, due to the sluggish world economy in the first half.
       "After getting the financial results of the first half, we are now anticipating that revenue could vary by 10% plus or minus from the 2008 figure," said Mr Somyos.
       Next month, AGE will start operating its fourth warehouse in Si Racha in Chon Buri, with storage capacity of 10,000 tonnes of coal. The new facility will contribute to revenue from the fourth quarter onward. Currently,14% of its customers are in the eastern region, he said.
       Shares of AGE closed yesterday at 6.30 baht, unchanged, in trade worth 1.72 million baht.