News Clipping Archive - Page 1113 of 1320

Bioenergy

Putrajaya researching plastic trash-for-fuel tech

17 July 2019

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Malaysia

The Housing and Local Government Ministry is looking to tap the mountains of plastic trash in the country as an alternative fuel and source for producing cement, it was recently reported.

The minister stated that the technology known as processed engineered fuel (PEF) could help the government cut down the illegal plastic garbage pile nationwide, adding that, currently, there is only one known company in the country using PEF.

An industry leader in the manufacture and supply of alternative fuel to the cement industry in Chemor has been using local plastic waste and imported dry materials such as plastic, papers, clothes and wood to process into PEF.

They argue that this mechanism will help to clear all illegal plastic companies and dumpsites in the country, as there is no other place to dispose of the waste or companies coming in to take over the operation at the moment.

It was also noted that the PEF, said to produce zero-waste, will be used as one of the materials to produce cement. This will increase the state economy and also produce a lot of job opportunities for the locals in the cement industry.

If all goes according to plan, the ministry is expected to clear all the 40 listed plastics companies and dumpsites, which are either issued stop-work order or sealed for operating illegally, within six to 12 months. The ministry has received another suggestion from a local company called The Asher, which used “pyrolysis plasma” technology to incinerate plastic junk.

It is a mobile unit which can be deployed to illegal plastic companies and dumpsites to burn all the waste. The technology only produces 4 per cent of waste upon burning, which can be used as fertiliser and as well as a material to produce bricks. Moreover, 50 units were already used in 13 countries so far.

It was noted that the ministry may consider using pyrolysis plasma for Malaysia is the technology clears the criteria and gets approval from the Environment Department.

An earlier report by OpenGov Asia noted that Malaysia will continue to advocate and strengthen maritime and oceanographic research for the sustainable South China Sea as many nations sharing the sea depend on its living and non-living natural resources for food, trade, transport, tourism and security.

It was noted that, unfortunately, the South China Sea is facing a plethora of threats from climate change, pollution and over-exploitation of its resources, including modifications of coastal and natural marine environments.

Therefore, the ministry will play its role in ensuring environmental sustainability which is pollution-free and resistant to the threats of climate change.

OpenGov Asia also reported that the Malaysian state of Kedah is inviting investors to develop more green technology-based projects in the state, especially those relating to solar power. The state’s Chief Minister said this would not only create more jobs but also establish many new business opportunities in terms of the handling, maintenance and installation of solar panels at commercial and residential premises.

The Chief Minister noted that the state government is also evaluating the entry of several new solar projects, seeing as similar solar projects are now becoming increasingly popular not only in Malaysia but around the world.

The Minister of Energy, Technology, Science, Climate Change and Environment had said that the ministry would have a series of meetings to ensure the national grid is prepared to cater for this renewable energy generation mix, as well as to study the policies to meet its target.

The view is to capitalise on future technological innovations, including industrial revolution 4.0 elements while retaining customers’ confidence through the digitalisation of services and improving customer experiences.

Malaysia is evidently working to push for more environmentally-conscious initiatives and technology in an effort to curb carbon emissions and move towards a move sustainable future.

Others

New research office to boost Singapore’s climate science capabilities: Masagos

17 July 2019

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Singapore

SINGAPORE — The Government will set up a new office to strengthen Singapore’s capabilities in climate science, Environment and Water Resources Minister Masagos Zulkifli said on Wednesday (July 17).

The new Climate Science Research Programme Office, set up under the Centre for Climate Research Singapore (CCRS), will lead and drive efforts to formulate Singapore’s national climate science research masterplan, as well as to build up local capabilities in climate science.

“The Programme Office will work closely with scientists and researchers in our research institutes and universities to harness their expertise for cutting-edge climate science research,” said Mr Masagos, who was speaking at a forum to promote environmental collaboration among partners from the community, public and private sector.

The research will focus on key issues that will have a significant impact on Singapore, including the rise of sea levels, the impact of climate change on the Republic’s water resources and the impact of rising temperatures on human health and the energy sector.

Mr Masagos noted that the Government had established the CCRS in 2013, under the Meteorological Service Singapore in the National Environment Agency, to meet the challenge of climate change with actions based on “robust science”.

“Climate science, where it is developed specifically for the tropics, is a new and complex area of research. There is limited amount of expertise and experts in this area,” said Mr Masagos, who added that more work needs to be done.

In his speech Mr Masagos stressed that climate change is a “pressing priority and an existential challenge”.

“At stake is nothing less than the physical preservation of our island nation and its inhabitants,” he said.

S$10 MILLION FUNDING FOR NATIONAL SEA LEVEL RESEARCH PROGRAMME

Mr Masagos also announced that the CCRS will set aside S$10 million in funding over the next five years for the National Sea Level Research Programme.

The programme, which was announced earlier this year, will help Singapore strengthen its understanding of sea levels around the country and help it develop more robust projections of how sea levels will rise in the future.

The CCRS will also issue a request to local research institutes for their project proposals next month.

Mr Masagos said that Singapore’s mean sea levels were projected to rise by up to around one metre by 2100, although this could occur earlier if ice sheets melt more rapidly or if ice shelves in Antarctica were to collapse.

Such a scenario was one of the most worrying “black swan” scenarios for low-lying countries such as Singapore, said Mr Masagos.

“CCRS has considered what might happen if we see high mean sea levels, high tide, and high surge all at the same time — even though this would be a rare scenario.”

“Sea levels could reach almost four metres above current mean sea levels, and overwhelm our low-lying coastal areas,” he said.

“And if we push our imaginations further, in the extremely rare occurrence that a tropical storm happens at sea — sending us surge waters that we can’t keep out — and a heavy rainstorm happens inland — bringing down rainwater we can’t drain away — both at the same time, we could have the ingredients of a ‘perfect storm’,” he added, noting that such a scenario “could possibily not be inconceivable in the future”.

The minister said that climate science has given policy makers guidance on the need to protect critical infrastructure against rising sea levels and extreme events. This was why Singapore was already building new projects such as the Tuas Port Terminal and Changi Airport Terminal 5 at higher platform levels.

With the CCRS’ climate science tailored for the tropics, Mr Masagos added that Singapore would share what it knows to help its neighbours plan for their adaptation to climate change as well.

S’PORE TO HOST GLOBAL SCIENTIST MEETING

Mr Masagos also announced that as part of efforts to collaborate with scientists around the world, Singapore will be hosting a Scoping Meeting of the Intergovernmental Panel on Climate Change (IPCC) in Singapore in October this year, together with a meeting of the IPCC Bureau, one of the highest decision-making bodies in the IPCC.

The IPCC is the United Nations body for assessing the science related to climate change.

“This is the first time that Singapore will be hosting an IPCC meeting. It signals our strong support for the commitment to climate science and climate action,” said Mr Masagos.

The string of announcements by Mr Masagos were made at the Partners for the Environment forum held at the Sands Expo and Convention Centre.

Into its third year, the annual event is organised by the Ministry of the Environment and Water Resources. It is also co-organised by the British High Commission in Singapore for the first time. The collaboration is in support of the Singapore-United Kingdom Partnership for the Future launched earlier this year which will see both countries broaden and deepen their ties.

Electricity/Power Grid

Gov’t raises electricity power supply to 2,864MW in first half

17 July 2019

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Cambodia

In efforts to curb electricity shortages during the dry season, the government increased electricity power supply by 315MW to 2,864MW in the first half of this year, data from the Ministry of Mines and Energy said.

During a meeting on Tuesday to review results achieved by the ministry in the first half of this year and set targets for the second half, Minister of Mines and Energy Suy Sem said electricity supply during the dry season had been insufficient, despite government efforts.

“The electricity shortage problem during the last dry season occurred due to drought and a dramatic increase in electricity demand,” he said.

Sem said the government approved eight investment projects in power generation in the first half.

The ministry’s secretary of state Ty Norin could not be reached for comment. However, he previously said the dry season shortages had been due to an unexpectedly high increase in consumption, up 32 per cent this year compared to last year. By contrast, consumption last year rose 16 per cent from 2017.

Electricite du Cambodge director-general Keo Rattanak said last week that the government would focus on prioritising renewable energy development rather than hydroelectric power. He said no hydropower plants would be built along the Mekong River.

He said the Kingdom will boost its investment in solar power by 12 per cent by the end of next year and up to 20 per cent in the next three years.

Rattanak said next year, Cambodia will be able to produce 70MW from solar energy, of which 10MW will be from Svay Rieng province and 60MW from Kampong Speu province’s Oudong district.

Others

‘Unbundling’ oil prices is not regulatory, DOE official says

17 July 2019

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Philippines

The Department of Energy (DOE) is firm in its position requiring oil companies to “unbundle” or reveal the details of how pump prices of petroleum products are adjusted.

In a chance interview on the sidelines of 7th Philippine Electric Vehicle Summit in Pasay City on Wednesday, Energy Assistant Secretary Leonido Pulido III said “asking of information” on how the prices per liter of fuel are increased or decreased is not a “form of regulation.”

“The asking of information, not it’s dissemination, but just the asking of information is expressedly authorized in the Oil Deregulation [law]. It is in no way, a form of regulation,” Pulido said.

The Taguig City Regional Trial Court Branch 70 issued a temporary restraining order (TRO) against the DOE’s Department Circular No. DC2019-05-0008 or the “Revised Guidelines for the Monitoring of Prices on the Sale of Petroleum Products by the Downstream Oil Industry in the Philippines.”

The TRO stemmed from a complaint filed by Pilipinas Shell Petroleum Corp. on June 24. The oil companies argued that the circular was leading the industry back to regulation.

Shell is a member of the Philippine Institute of Petroleum Inc. (PIP), which filed a “Petition for Declaratory Relief with Application for a Temporary Restraining Order and/or Preliminary Injunction.”

Apart from Shell, PIP counts as members Chevron Philippines Inc., Isla LPG Corp., Petron Corp., PTT Philippines Corp., and Total Philippines Corp.

The DOE circular mandates oil companies to “unbundle” or provide the DOE with a detailed computation and corresponding explanation and supporting documents on why the prices of fuel products must be adjusted.

Oil companies adjust domestic fuel prices on a weekly basis, usually on Tuesday, based on price movements in global markets.

As for the TRO and other cases against the circular, Pulido said the DOE is now discussing with the Office of the Solicitor General whether it is practical to file a motion for reconsideration or just wait for it to lapse.

He said the DOE and OSG will decide within the week what legal moves it will resor

Others

Vulnerable to climate change, ASEAN needs more investment into green infrastructure

17 July 2019

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ASEAN

MANILA – Over the next five years, ASEAN will need US$157 billion in annual infrastructure investment, but projects need to be “climate-proofed” to mitigate the region’s vulnerability to natural disasters and climate change, according to the Asian Development Bank (ADB).

Due to Southeast Asia’s geographical diversity — long coastlines, a large number of archipelagos, and heavily populated low-lying areas — the region has experienced a number of devastating weather-related disasters in the past decade, from hurricanes and flooding to wildfires and landslides.

In 2017, Thailand and Vietnam made the list of top 10 of countries most affected by extreme weather, both in terms of fatalities and economic losses, according to the Global Climate Risk Index2019.

But countries that are repeatedly affected by extreme weather disasters, such as the Philippines, also rank high in the long-term index, with single exceptional events, such as Typhoon Haiyan, having a lasting impact on the country’s economy and infrastructure.

“The analysis reconfirms earlier results of the Climate Risk Index: less developed countries are generally more affected than industrialised countries,” the report read.

“Regarding future climate change, the Climate Risk Index may serve as a red flag… in regions where extreme events will become more frequent or more severe due to climate change.”

The report claims that recent science has found “a clear link between climate change and record-breaking precipitation of 2017’s hurricanes”, suggesting that severe tropical cyclones will increase with every tenth of a degree increase in global average temperature.

“The question is, what can infrastructure do to help you make sure that increases in temperature are kept below 2°C from pre-industrial times?” said Rana Hasan, the Asian Development Bank’s Director of Economic Research and Regional Cooperation.

During a seminar in Manila last month, Hasan told media that experts remain concerned about the effect of temperature rise beyond 2°C.

“We are dealing with potentially dangerous situations like droughts and intense typhoons.”

People row in boats through floodwaters in Hanoi’s suburban Chuong My district on August 2, 2018. Photo: Nhac Ngyuen/AFP

More investment for green infrastructure

As the ASEAN economy continues to grow rapidly, infrastructure projects need to be more sustainable and climate-responsive to mitigate the effects of extreme weather events, Hasan said.

“[We need] new types of infrastructure investment that can significantly reduce our carbon footprint, particularly in the areas of renewable energy,” he said, referencing a recent US$7.6 million loan from the ADB to to help build a 100-megawatt solar power park in Cambodia.

“Electricity and heat production is one of the leading sources of global greenhouse gas emissions as coal, natural gas and oil are burned for power.”

The transport sector is another industry which needs to see change by “reorienting the spending”, Hasan said.

“Rather than building more and more roads, you might consider public mass transit.”

Hasan noted that the effects of natural disasters and climate change pose a real challenge to the region’s development, and infrastructure needs to be stronger and more resilient to climate change.

“More planning needs to take place. Windspeed and typhoons are growing in strength — which means if we build infrastructure according to standards set 40 years ago, we might be left with typhoons destroying more of our infrastructure stock.”

The ADB said it wants to help ASEAN governments scale up their green infrastructure, and recently launched a new US$1 billion loan facility for investment into Southeast Asian projects.

Hiroaki Yamaguichi, director at ADB’s Transport and Communications Division for Southeast Asia, said that when mobilising investment, a difficult balance needs to be struck between development, sustainability and climate resilience.

“A lot of ASEAN countries are affected by climate change, and people are really concerned… Many of our cities are not livable now and it will be worse in the future, we need to do something before it gets worse.”

Coal

Analysis: Indonesian coal mining sector in limbo amid regulation uncertainties – sources

17 July 2019

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Indonesia

Singapore — The fate of seven major Indonesian thermal coal producers is hanging in the balance amid government regulation uncertainties after a mining contract for one of the miners was revoked, stoking fears of a similar rejection for other contracts coming up for renewal in the next couple of years.

According to local media reports, three coal mines operated by Tanito Harum were suspended last week after the Indonesian government revoked the firm’s 20-year contract extension.

Some market players said the suspension of Tanito’s mine operation is setting a precedence for the industry, and overall production might be affected without regulation clarity.

Seven other major coal producers are having their first generation Coal Contracts of Works (CCoW) mining licenses expire over the next five years. These producers include majors like Bumi Resources, Adaro Energy, Kideco and Berau.

As much as 70% of the total Indonesian production is accounted for by the CCoW miners. Indonesia produced about 528 million mt in 2018, exceeding its initial target of 485 million mt. This year, the country is targeting a production of 490 million mt.

A company source at one of the CCoW miners said they will “try to be organized and well prepared for the upcoming renewal.”

“This will send a negative sign for investment and create uncertainties for longer-term investment, while production next year onwards might be impacted if there is no clarity on the issue,” Hendra Sinadia, executive director of the Indonesian Coal Mining Association, told S&P Global Platts.

LONG-TERM PLAN DIFFICULT

Ratings agency Moody’s said in a recent report that there has been no clear guidance from the government on the contract renewal, “which diminishes the ability of companies holding CCoWs, such as Bumi Resources and Indika Resources, to prepare long-term mine production and investment plans.”

“Also, a price cap on thermal coal sales to domestic utilities limits the potential upside for Indonesian coal companies from the strengthening of coal prices, and will constrain miners’ earnings,” Moody’s added.

In the case of non-renewal or revocation of such mining licenses of major producers like PT Bumi and PT Adaro, the impact will be huge due to the volume involved and the tax revenue received by the government, Vishal Kulkarni, associate Director of S&P Global Ratings, Analytical, said.

In April, Bumi Resources said its production target this year is around 88-90 million mt, while Adaro’s production target for this year will be at around 54-56 million mt.

“In our base case, we expect the Indonesian government to look at the renewal of the licenses of these major coal producers, but such renewal will likely come with additional taxes for them to continue mining operations,” said Kulkarni.

TANITO IMPACT

Tanito Harum’s CCoW expired on January 14, and its contract extension was revoked after Indonesia’s Corruption Eradication Commission (KPK) found that the extension was not in line with the mining law, a government official was said in late June.

Tanito did not respond to requests for comment.

Tanito mainly produced the Indonesian mid-calorific value 5,600 kcal/kg GAR grade, with annual production volume between 2-5 million mt, sources said.

Prices did not see a significant impact considering its production volume, and the supply impact on Japan as a major mid-to-high calorific value coal consumer should be minimal, an Indonesian producer said.

Last year, the Indonesian government said it was in the process of issuing a new regulation for coal miners, and planned to phase out CCoW and replace it with a special mining permit (IUPK).

Oil & Gas

Thailand sets its sights on larger LNG share

16 July 2019

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Thailand

Thai government looks to increase imports as gas reserves continue to slide

Thailand’s newly elected coalition government, heading by former junta leader General Prayut Cham-o-cha, will look to significantly lift the proportion of natural gas in the country’s energy mix, following the cabinet’s approval of the amended Power Development Plan (PDP) at the end of April.

Under the new PDP, the government aims to derive 53pc of the country’s power from gas by 2037, an increase of 13 percentage points over the previous plan, 35pc from non-fossil fuels and 12pc from coal — reduced from 25pc in the previous plan. Efforts from the Thai authorities to build coal-fired power plants in southern Thailand have faced constant delays and domestic opposition.

Greater LNG imports will almost certainly be Thailand’s main focus. “By 2025, we expect that LNG will account for close to 40pc of gas supply to the power sector, rising to 80-90pc by the end of the PDP period in 2037,” says Chris Starling, principal at consultancy Lantau Group. Last year, the Gulf of Thailand, including the Malaysia-Thailand Joint Development Area (MTJDA), produced 71pc of the country’s available gas, with the remaining imported via pipeline from Myanmar (17pc) and through LNG (11pc).

Since 2014, domestic production has dropped by 13.4pc from just over 115mn m³/d to less than 100mnn m³/d in 2018, before rebounding slightly in Q1 2019 to 100.9mn m³/d, according to data from Thailand’s ministry of energy. Over the same period, LNG imports rose from the equivalent of 5.2mn m³/d to 18mn m³/d.

Gulf of Thailand reserves have plummeted since they peaked in 2006, halving to around 186.8bn m³ in the latest BP Statistical Review 2019. “By the end of 2017, the reserves to production ratio (r/p) was 5.2 years,” says Dieter Billen, principal at consultancy Roland Berger. By comparison, “Malaysia had a r/p ratio of 34.9 years, Vietnam 68.3 years and Indonesia 42.9 years”.

Similarly, imports from neighbouring Myanmar are expected to slow. Since 2014, production from the Yetagun field has dropped from 9.6mn m³/d to just 4mn m³/d in 2018, and averaged just 3.25mn m³/d over Q1 2019.

Declining reserves from the Yadana, Zawtika and Yetagun offshore fields, and the need to prioritise domestic consumption, could lead to Myanmar exports ending entirely by 2035, says a study by the Economic Research Institute for ASEAN and East Asia (ERIA). Likewise, the MTJDA’s resources are expected to be exhausted by 2027.

Domestic incentives

New domestic exploration is also making little progress, despite the fall in proven gas reserves and production. “LNG is set to dominate the future gas mix, but exploration potential is probably not being fully developed,” says Neil Semple, fuels expert at consultancy Poyry. “There would appear to be some political resistance to using international prices as an incentive and there has been no licensing round since 2008”.

Previously, the energy minister had suggested the 21st bid round could go ahead this year, but no time scale has yet been given. “The new bidding round would address the issue of the general lack of exploration acreage and would also allow the authorities to revisit pricing mechanisms for new domestic gas,” adds Semple.

In December, state oil and gas firm PTT successfully won the concession bidding process for the country’s main producing natural gas fields, Erawan and Bongkot, beginning from 2022 and 2023. PTT has committed to maintaining production from Erawan at 22.6mn m³/d and Bongkot at 19.8mn m³/d, below current levels, says Billen.

Chevron had been operator of Erawan since 1981 but was unsuccessful in retaining the latest concession — the company will maintain its Thailand presence though through its 35pc stake holder in the unexploited Ubon Project in Block 12/27.

Demand boost

While Gulf of Thailand reserves and production continues to fall, domestic demand has continued to be robust at around the 132mn m³/d mark, and averaged 132.5mn m³/d over Q1 2019, according to data from the ministry of energy.

Electricity consumption is by far the largest consumer of natural gas. In 2018, electricity generation accounted for 75.9mn m³/d on average, or over 57pc of overall demand. Other significant offtakers include industry with 21.6mn m³/d (16.3pc), gas separation plants with 28.7mn m³/d (21.7pc) and natural gas vehicles with 6.2mn m³/d (4.7pc).

Thailand’s preference for imported LNG over domestic natural gas could potentially impact electricity prices, through exposing the country to international LNG markets’ greater volatility. “A higher proportion of imports feeding into the national grid will result in an overall higher price to the consumers,” says Kannika Siamwalla, head of regional oil and gas at Malaysian bank RHB. In February, the price differential had widened to $6.30/mn Btu for domestic gas versus $12.10/mn Btu for LNG.

Pushing ahead

Thailand aims to capitalise on the current oversupply of LNG and low global prices, despite potential fiscal risk and import dependence — to date the country sources most of its LNG from Qatar via its 20-year agreement with PTT for 2mn t/yr. Australia and Malaysia also supply the country with much smaller volumes.

The Southeast Asian country is in the process of installing greater capacity, with more planned over the near term. “PTT already completed the 10mn t/yr LNG terminal [Map Ta Phut], plus 1.5mn t/yr reserved for the Electricity Generating Authority of Thailand [EGAT],” says Chaipat Thanawattano, an investment analyst with SCB Securities, a securities trading firm. “The second LNG terminal project [Nong Fab], with capacity of 7.5mn t/yr, is under construction ahead of commencing operations in 2022.”

Next on the agenda, EGAT plans to construct a 5mn t/yr FSRU by 2023 and the government has designs on a third LNG terminal. Last month, though, the energy policy administration committee (Epac) suspended EGAT’s efforts to import 800-1mn t/yr of LNG due to concerns oversupply could leave the kingdom oversupplied. Malaysia’s Petronas had initially won the supply contract.

Bioenergy

Malaysia keeps August crude palm oil export duty at zero percent

16 July 2019

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Malaysia

KUALA LUMPUR, July 16 (Reuters) – Malaysia kept its export duty on crude palm oil for August unchanged at zero percent, according to a circular on the Malaysian Palm Oil Board’s website on Tuesday, citing the national customs department.

The duty has been at zero percent since September.

Malaysia, the world’s second-largest producer of palm oil, calculated a palm oil reference price of 1,905.38 ringgit ($463.93) per tonne for August. Any price above 2,250 ringgit incurs a duty.

The Southeast Asian nation said in May it would defer the imposition of export duties on crude palm oil to Dec. 31 in efforts to boost palm oil exports and expand into new markets.

Malaysian benchmark palm oil futures were down 0.4% at 1,981 ringgit per tonne in early trade on Tuesday. ($1 = 4.1070 ringgit) (Reporting by Emily Chow; Editing by Subhranshu Sahu)