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.
Sunday, February 7, 2010
Saturday, January 30, 2010
PTT Chemical and GE sign gas turbine service agreement
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.
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.
Sunday, January 24, 2010
EEI all out in 2010 with energy management business, hoping to raise over 80 million baht
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.
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.
Wednesday, December 16, 2009
JDR Cable Systems to Provide Inter Array Cables for London Array Offshore Wind Farm
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.
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.
Tuesday, December 15, 2009
ETIHAD TO JOIN SUSTAINABLE AVIATION FUEL USERS GROUP
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.
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.
Monday, December 7, 2009
POWER-GEN Asia and Renewable Energy World Asia 2009 Achieves Record-Breaking Attendance.
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.
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
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.
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.
Thursday, November 19, 2009
Glow’s profitability on track in Q3 2009
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.”
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.”
Thursday, November 12, 2009
Effort to cut emissions looks away from coal
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".
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
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.
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%
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.
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
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.
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.
Wednesday, November 4, 2009
MINISTRY SEEKS OPTIONS AS GAS RESERVES SHRINK
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.
"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.
Wednesday, October 28, 2009
Local fuel-conversion kit
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.
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
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.
"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
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.
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.
Tuesday, October 20, 2009
Teheran will "never give up its right to nuclear energy"
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.
"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.
Wednesday, October 14, 2009
WIND STUDY SLOWS DOWN ALTERNATIVE-ENERGY PLAN
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.
"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.
Tuesday, October 13, 2009
Iran dismisses US warning on nuclear issue
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.
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.
Sunday, October 11, 2009
Official airs nuclear fuel needs
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.
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.
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