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  • Oil & Gas
21 January 2019

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  • Malaysia

Hengyuan Refining Co. Bhd. (HRC)—a subsidiary of Shandong Hengyuan Petrochemical Co. Ltd.—has approved a $66.4-million investment to develop and build a hydrogen manufacturing unit as part of a hydrogen generation (H2Gen) project for production of cleaner fuels at its 156,000-b/d refining complex in Port Dickson, Negeri Sembilan, Malaysia.

Approved on Jan. 16, the primary objective of the H2Gen project is to supply the refinery with 30 tonnes/day of hydrogen for hydrotreating processes aimed at reducing sulfur content of the operator’s gasoline and diesel products, HRC said.

Hydrogen from the new unit will be used to power the refinery’s hydrodesulfurization Unit No. 2 as well as other extractive desulfurization hydrotreating processes at the site to help meet Malaysia’s upcoming 10-ppmw Euro 5 gas oil sulfur specification, which takes effect on Sept. 1, 2020, the operator said.

Without the new unit, the Port Dickson refinery would be short of hydrogen by the 2020 deadline, HRC said.

Part of HRC’s ongoing capex program to enhance production processes to fulfil domestic demand while upgrading to new product-quality specifications, the H2Gen project is scheduled for startup on time in September 2020.

Currently relying solely on its platformer unit to manufacture hydrogen, the refinery’s installation of the new HMU is a crucial step in expanding the site’s hydrogen-production capacity while also providing a second source of hydrogen to help improve the refinery’s resilience and reliability as a key supplier of products to the Malaysian market, said HRC Chairman Wang YouDe.

“From a broader perspective, we believe that improving the reliability of our refinery and ensuring the sustainability of our refinery’s operations for the long term will enable [HRC] to further enhance and sustain profitability in the future,” YouDe added.

Launch of the new investment follows HRC’s late-2018 completion of its Atlas II infrastructure project, which involved installation of a 420-tonne top dome and cyclones in the refinery’s long-residue catalytic cracking unit (LRCCU), the new dome of which will extend the LRCCU’s operating life for another 20 years, enabling the plant to continue efficient and profitable operations, HRC said in a Nov. 28, 2018, release.

HRC also is continuing work on a project designed to upgrade the Port Dickson refinery to produce Euro 4M-grade moto gasoline (mogas).

Targeted for completion during first-quarter 2020, the Euro 4M-grade mogas project—which broke ground in August 2017—involves installation of an integrated complex that is designed to desulfurize the full range cat-cracked gasoline produced by the LRCCU to enable production of gasoline that meets the Euro 4M specification requiring sulfur content to be less than 50 ppmv (OGJ Online, Sept. 6, 2018).

The operator’s Clean Air Regulation (CAR) project—which involves installation of air-pollution control systems at the complex’s LRCCU and Platformer-2 unit, as well as an emission-monitoring system on the refinery’s flue gas stacks—also remains under way.

Designed to ensure the refinery’s emissions comply with clean air regulation requirements mandated by the Malaysian regulatory authorities, the CAR project is scheduled for completion by June.

  • Others
21 January 2019

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  • Thailand

Like other countries, Thailand has incorporated the low-carbon economy model in policies, aiming for sustainable development and better public health.

The Finance Ministry has already introduced excise taxes on vehicles that vary with emission levels and successive governments have endorsed railway projects such as the mass transit system in Bangkok. The Energy Ministry plans to use more renewable-energy fuels to produce electricity in place of natural gas and coal.

Praipol Koomsup, an economist specialising in energy issues, said the high level of air pollution in Bangkok indicates that that the country has not yet done enough to make the low-carbon economy a reality.

One of several key contributors to the pollution problem is the estimated 2.5 million diesel-powered trucks and buses still on city roads. Diesel engines produce a significant amount of the PM2.5 – particulate matter less than 2.5 microns in diameter – currently putting health at risk in Bangkok.

Praipol backs the idea of government subsidies for people willing to buy electric vehicles, the cost of which remains high.

“The government plans to increase the amount of renewable fuel for producing electricity from about 10 per cent to 20 per cent in the next 20 years. That is our target and we need to do a lot to achieve it,” he said.

Thanawat Polvichai, director of the Economic and Business Forecasting Centre at the University of the Thai Chamber of Commerce, estimated that the air pollution could cost Bangkok businesses Bt5 billion to Bt10 billion because, among other issues, no one wants to linger at open-air food stalls.

But Thanawat expects the crisis’ impact on the overall economy to be short-lived.

Speaking at a recent Thailand Development Research Institute seminar on “air pollution as a negative impact of development”, Adis Israngkura, an economist involved in national resources and the environment, urged the government to raise the tax ante.

It should review the excise tax system and make it clear to people that pollution will be taxed heavily to discourage the use of dirty fuels such as diesel.

Cities need to be reorganised

The current tax rate on diesel fuel doesn’t reflect the serious impact of air pollution, Adis said, advocating a higher annual road tax on ageing vehicles as well because their engines’ efficiency degrades over time and they cause more pollution.

Adis believes the government is on the right track with its policies on sustainable development, but it needs to do more. Prime Minister Prayut Chan-o-cha chairs a committee overseeing the effort, he noted, but “Prayut could take more action”.

Chamnong Sorapipatana, chairman of the energy division at the Asian Transportation Research Society, noted that construction of the mass-transit rail system in itself causes traffic jams, adding to pollution.

Construction work should be done at night, he said, or suspended until the middle of March when weather conditions aren’t trapping pollution over the city. After winter, the upper air will be cooler, allowing the pollution to rise and escape, Chamnong said.

But in the long run, Bangkok and other cities need more green spaces and should be reorganised to lessen travel distances, he added.

Sumet Ongkittikul, a research director at the TDRI engaged in transportation and logistics policy, said the government should limit the number of cars in Bangkok. It has moved too slowly on this, he said, in the hope that more people will voluntarily begin using public transport once the new rail lines are completed in Bangkok in three to five years.

Sumet pointed out, though, that other countries have found people do not switch to public transit without some prodding. Increasing the cost of owning a car would be one incentive. Singapore limits vehicle numbers by auctioning off licence plates and imposes high fees for allowing access to restricted areas. Hong Kong and London also impose tough rules on car owners, he added.

  • Electricity/Power Grid
21 January 2019

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  • Singapore

SINGAPORE – Energy provider SP Group has partnered with Ascendas-Singbridge Group (ASB) to install electric vehicle charging points in the latter’s buildings, the two companies announced on Monday (Jan 21).

As part of the partnership, 24 high-speed chargers have been installed in six of ASB’s buildings – Hyflux Innovation Centre, Corporation Place, Techlink, Techplace I, The Capricorn and The Kendall.

Half of the charging points are 43kW alternate current (AC) chargers and the other half comprises 50kW direct current (DC) chargers.

These can power up a mid-sized electric car within an hour, compared with six to eight hours via household chargers.

At an event announcing the partnership at Hyflux Innovation Centre, SP Group chief executive Wong Kim Yin said: “(The partnership) provides more convenient locations for our charging services, and will accelerate the adoption of green mobility in Singapore.

“We look forward to working with ASB to roll out more high-speed charging points in their properties in the months ahead.”

ASB said it has plans to install more electric vehicle charging points in its buildings, such as at Infinite Studios in Mediapolis and 5 Science Park Drive, by the end of the year.

The chargers at ASB’s properties are part of SP’s first batch of 38 charging points, which was announced earlier in January.

The other 14 charging points are located at Singapore Polytechnic and Alexandra Technopark.

They are the first of 1,000 charging points SP aims to launch by 2020.

Users can locate and access available charging points via the SP app, which can be downloaded from the iTunes App Store and Google Play.

Currently, rates are 41.4 cents and 47.3 cents per kWh for its AC and DC chargers respectively.

At these rates, SP has said electric car drivers will see “at least 50 per cent cost savings” compared with those who drive comparable petrol-powered models.

More partnerships are likely to be in the works.

SP Group head of strategic development Goh Chee Kiong said: “We are talking to a big number of premise owners.

“We are hopeful that more will be signing up soon.”

SP’s Mr Wong said the partnership could be a step forward in Singapore becoming the first city in the world with predominantly electric vehicles.

He said: “We don’t have all the range issues overseas, and we can be very quick in deploying infrastructure that will serve everybody, compared to any other country or city.”

He told The Straits Times that SP is also on the lookout for opportunities to deploy its electric vehicle charging systems overseas.

He added: “If there are opportunities to do the same (implement electric vehicle charging solutions) overseas, we would, of course, take the opportunity.”

  • Renewables
21 January 2019

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  • Indonesia

In October 2017, the first low-temperature geothermal demonstration power plant was successfully commissioned in Lahendong/ Tomohon, North Sulawesi.

The construction and operation of the geothermal power plant is a joint study carried out between the Agency for the Assessment and Application of Technology (BPPT), the Ministry of Research, Technology and Higher Education with the German Federal Government through the GeoForschungsZentrum (GFZ) German Research Center for Geosciences supported by PGE.

“We hope that this plant can operate properly, reliably, and continue to provide benefits for operations in the Lahendong Field. In addition, it is hoped that this plant can increase the knowledge, experience and capabilities of Indonesia’s human resources,” said PGE President Director Ali Mundakir in a statement.

In a ceremony today, the 500 kW plant was officially handed over to the Indonesian partners.

“I am proud to hand over Lahendong Binary Geothermal Power Plant to the Ministry of Research, Technology and Higher Education (RISTEKDIKTI). German-Indonesian Research Cooperation at its best. Binary geothermal technology can be replicated in many parts of Indonesia, so Dr. Peter Schoof, German Ambassador to Indonesia.

This was conveyed during the handover of Lahendong Binary Cycle PLTP from GFZ Germany to BPPT in the Lahendong Geothermal Field, Tomohon. The handover event of a 500 kW Geothermal Power Plant (PLTP) from the GFZ German Research Center for Geosciences to BPPT was attended by various parties. One of them is Minister of Research, Technology and Higher Education (Menristekdikti) Mohamad Nasir who was accompanied by Acting Head of the Agency for the Assessment and Application of Technology (BPPT) and his staff.

In his speech, the Menristekdikti welcomed the support of the German Government in the development of Binary Cycle PLTP technology. He also hoped that the handover could be the first step in a major effort to utilize renewable energy and increase human resources in the field of EBT technology, especially geothermal.

On the same occasion, Deputy of Energy and Material Information Technology (TIEM) BPPT, Eniya L. Dewi said that the Lahendong 500 MW PLTP system is a smale scale binary cycle plant system.

“This PLTP utilizes wet geothermal steam that cannot be used by conventional PLTP. In addition, this PLTP can also be used to utilize the remaining hot water from conventional PLTP so as to increase total efficiency and increase generation capacity. This PLTP can be used as a model for utilizing geothermal wells with “Wet steam is characteristic of most geothermal sources in Indonesia, especially Sumatra and Sulawesi,” said Eniya.

 

PGE’s contribution to the total geothermal power generation capacity of Indonesia is about 32% from 5 areas with a total installed capacity of 617 MW.

The capacity consists of the Lahendong area with an installed capacity of 120 MW and contributes around 60% in the North Sulawesi transmission network system, Kamojang with an installed capacity of 235 MW, Ulubelu with an installed capacity of 220 MW, Karaha with an installed capacity of 30 MW, and Sibayak with an installed capacity of 12 MW.

While in 2019, PGE is targeting to be able to add an installed capacity of 55 MW from the Lumut Balai geothermal field, South Sumatra, targeting the total installed capacity of PGE to be 672 MW.

To support the National Energy Policy, PGE also continues to develop geothermal energy in all regions of Indonesia. Among these are developments at the Hululais Project (including Hululais Extention, Bukit Daun) in Bengkulu, Lumut Balai Project in South Sumatra, Sungai Penuh Project in Jambi, Seulawah in Aceh, and Lawu in Central Java.

Source: Germany in Indonesia/ Twitter, Detik

  • Energy Efficiency
21 January 2019

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  • Philippines

MEMBERS of the Philippine Energy Efficiency Alliance, Inc. (PE2) need to plan their staffing and capital resources based on how the proposed energy efficiency law would be able to “catalyze” investments in both the private and public sectors, the group’s top official said.

“Some of these players will have to broaden access to newer technologies, staff capacity development resources, and even to project or operating capital from either debt or equity sources,” said PE2 President Alexander Ablaza in a response to questions via e-mail.

He made the comments after the Bicameral Conference Committee convened on Wednesday to reconcile the disagreeing positions of Senate Bill 1531 and House Bill 8629. They approved the Energy Efficiency and Conservation (EE&C) Act on the same day. The reconciled bill will become law once signed by the President.

Mr. Ablaza said it might be too early to estimate revenue-based market sizes for companies involved in energy efficiency, but said he hopes the law would be able to mobilize a sizeable portion of the $243-billion capital requirement for the local economy to realize the Department of Energy’s targets under the 2040 energy efficiency and conservation road map.

He compared the sector to how the Renewable Energy Act 10 years ago started to solidify a “loose and fragmented” renewable energy (RE) sector.

“Today, the RE sector, albeit still riding on a growth curve, has matured with the entry of more market players and dedicated capital,” Mr. Ablaza said.

“An energy efficiency sector would become more prominent as it works alongside the RE sector in increasing the clean energy footprint of the Philippine energy market,” he said.

He said the market players in the sector would include accredited energy service companies (ESCO), energy efficiency technology suppliers, service providers, energy auditors, energy management consultants, professional services, financial institutions, financial advisors, financial services, equity providers, investors, nonprofit programs, local government units and end-users.

“A few other PE2 members will contribute to skill development, certification of professionals, ISO 50001 compliance, or to increasing muti-sectoral awareness of the new law and its forthcoming implementing rules and regulations,” he said.

“PE2 will have to step up its partnerships with relevant government agencies as they formulate standards, guidelines and regulations in support of the law, its obligations and incentives,” he added.

Mr. Ablaza said what remains crucial is that after a long 28-year wait, the Philippines is joining its neighbors in the Association of Southeast Asian Nations “as the newest and only remaining country that has enabled a mandatory energy efficiency regime through legislation.”

“The targeted minimum removal of 182 million tons of oil equivalent (Mtoe) in the form of avoided energy purchases will result in incremental [gross domestic product] growth, green job generation, deferment of 45,900 [megawatts] of energy infrastructure capacity upgrades, and in the deceleration of the annual rise in energy prices,” he said. — Victor V. Saulon

  • Renewables
21 January 2019

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  • Philippines

LINGAYEN, Pangasinan — The Filinvest Development Corporation (FDC) Philippines Inc.- FDC Renewable Corporation is seeking the endorsement of the Sangguniang Panlalawigan (SP) for the construction of a 26-megawatt hydroelectric power plant in San Nicolas, Pangasinan.

Mirabel Mae Perez, corporate social responsibility officer of FDC, said on Monday the firm already got the service contract from the Department of Energy (DOE), but the endorsement of the provincial government, through the SP, as well as the approval of the municipal government of San Nicolas, among other requirements, are still needed for the construction of the power plant.

“It is a clean source of energy as it is renewable. Since it will be a run-off river scheme, it has little chance of flooding. It will also add additional electricity capacity to Luzon and there will be opportunities for industries to thrive in the community with the sufficient source of electricity,” Perez said during her presentation of the project to the SP members.

Project manager Engr. Neil Guillen told the board members that the hydroelectric power plant would cost about PHP3.5 billion.

He explained that through the run-off river scheme, the water from a river in Sta. Fe, Nueva Vizcaya will flow to the power plant to be situated in Barangay Fianza, San Nicolas, where the electricity will be generated.

Guillen further said that after they acquire the endorsements from respective local government units of Pangasinan and Nueva Vizcaya, it will still take a year to start construction of the power plant.

“We will still conduct feasibility study before we start construction,” he said. (PNA)

  • Energy Economy
  • Oil & Gas
21 January 2019

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  • Philippines

MANILA, Philippines – Oil companies will implement another fuel price hike on Tuesday, January 22, marking the 3rd straight week of increases.

Caltex, Shell, Flying V, Phoenix Petroleum, Total, Petro Gazz, Seaoil, and PTT Philippines announced that they will be imposing a P0.10 per liter increase on gasoline and a P0.40 per liter hike on diesel.

Meanwhile, kerosene prices of Shell, Caltex, Seaoil, and Flying V will be increased by P0.15 per liter.

Most companies said the new rates will be effective at 6 am.

Energy Undersecretary Felix William Fuentebella said the latest price hike is due to weak sentiments in the Asian gasoline market amid excess regional supply.

Data from the Department of Energy (DOE) showed that diesel prices in the country range from P33.45 to P40.98, while gasoline prices range from P40.05 to P53.60.

The DOE said that over 22% or 1,951 gas stations out of 8,630 have already implemented the second round of the fuel excise tax hike stipulated in the Tax Reform for Acceleration and Inclusion (TRAIN) law.

Under TRAIN, the excise taxes on diesel and gasoline would be increased by P2 per liter this year, and will be jacked up further by another P1.50 per liter in 2020.

Price hikes under TRAIN will only be suspended if Brent crude prices soar over $80 per barrel in the global market.

The United States Energy Information Administration projected Brent crude prices to average $60.52 per barrel in 2019, down from the 2018 average of $71.19. – Rappler.com

  • Others
21 January 2019

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  • ASEAN

2019 will mark the tenth anniversary of the first deployment of blockchain technology. It was in 2009 that the still elusive Satoshi Nakamoto released the first version of bitcoin. Since then, the concept of blockchain was inseparably linked with the world of cryptocurrencies.

But the burst of the Bitcoin bubble seems to have resulted in a paradigm shift. While the popularity of cryptocurrencies may have taken a nosedive, the same cannot be said about the technology behind it at all.

For years proponents have suggested that blockchain has the potential to change virtually all aspects of human digital transactions and interactions. Now, thanks to the cooling effect of the bitcoin meltdown of 2018, the deployment of blockchain technology in other fields is taking center stage.

And one region that is fast becoming a hotbed of blockchain innovation is ASEAN. A decade ago, few would have visualised such a scenario. But as we enter 2019, nations in the region are getting ahead of the curve when it comes to harnessing the full potential of blockchain technology.

ASEAN is perfect for blockchain startups

The region as a whole has several unique features that set it apart from the rest of the globe. For starters, it is home to a tenth of the global population and ranks as the fifth largest economic bloc as well.

A couple of contrasting features make this massive market a favoured destination for hi-tech digital startups in recent years. Internet and mobile penetration in the region currently hover around 55-60%. The annual growth rate is almost absurdly high.

Source: ASEAN Up

In sharp contrast, traditional banking services are still highly inadequate across the region. Individuals and SMEs do not have access to basic banking services. It is estimated that nearly 73% of the population has no access to banking.

These markets are perfect for alternative financial solutions based on advanced technology like blockchain. Unsurprisingly, the fintech sector is a major driving force behind the Southeast Asian startup scene.

ASEAN governments are setting an example for the rest of the world

The early proponents of bitcoin were often anarchists or libertarians who saw it as an alternative to government-controlled fiat currencies. There was a strong association of blockchain technologies with freedom from rules and regulations.

But a lack of regulatory oversight and governance left blockchain based deployments very vulnerable to instability and manipulation. It contributed significantly to the rise and fall of the bitcoin bubble.

As a result, it is precisely the opposite that is giving the ASEAN region an edge. Virtually all governments in the region have a positive attitude towards cryptocurrencies and have passed laws to regulate currency markets and exchanges.

Singapore positioned itself as a leading destination for Initial Coin Offerings (ICOs) when cryptocurrencies fell out of favour in places like Japan and Korea. It is also pioneering the use of blockchain in the energy sector, creating a deregulated market for electricity consumers.

Thailand unveiled cryptocurrency laws in 2018, paving the way for a regulated currency exchange market in the country. Even more ambitious are the plans of the Thai central bank to adopt blockchain for services like security settlement, international payments, and supply chain management.

Indonesia is yet another example of shifting government attitudes towards blockchain. Its tax system uses an application called Online Pajak, derived from open ledger-based technology to improve transparency.

The Philippines, Vietnam, Cambodia, and Laos have all welcomed blockchain-based ICOs to their local markets. By passing legislation that removes at least some of the ambiguity and confusion surrounding blockchain, ASEAN governments are harnessing blockchain technology to drive investment, and are setting an example for the rest of the world in the process.

ASEAN startups are at the forefront of innovation

Numerous incubators and accelerators have sprung up in countries like Malaysia, Indonesia, Singapore, and the Philippines in recent years. Unique startups that take blockchain technology beyond cryptocurrencies are springing up across the region.

The DACSEE, for example, is a Malaysian ride-sharing service based on an autonomous decentralized ledger. It uses ethereum-based tokens for paying the drivers.

Electrify is the name of the Singapore-based startup that has been making a lot of waves in the energy sector. By using a transparent digital ledger, the system plans to cut down the role of middlemen and reduce the cost of electricity.

Crowdvilla is a new home sharing platform based on blockchain tokens based out of Singapore. The real estate platform allows users to own shares of holiday homes and hotels across the world.

There are several startups harnessing blockchain currencies to provide banking and cash transaction services in the region. LaLa World is a wallet-based on ethereum that allows users to send cash anywhere using their mobile app.

An ASEAN-based global blockchain brand is on the horizon

There is a unique synergy at play in the South East Asian startup scene at the moment. The combination of an untapped market and a favourable regulatory climate has created a paradise for blockchain-based startups.

While most markets support ICOs, in ASEAN, we are seeing the technology being applied to new frontiers like fintech, payments, banking, rideshare, home share, and even the energy sector.

This is a clear sign of a stable platform for future growth in this field. Given the immense economic potential, this sector should find no dearth of investment in the coming years. We could very well see some global blockchain-based brands emerge from the region in the near future.

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