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2 November 2018

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  • Philippines

The Senate Energy Committee sees the resource-rich Philippine Rise (Benham Rise) east of Aurora province as the country’s hope for energy security in the next decade.

Senator Sherwin T. Gatchalian, committee chairman, said the area is rich with methane hydrates, viewed as the new fuel source, and has no claimant unlike the West Philippine Sea (WPS) where China refuses to honor a decision of the United Nations Arbitration Court awarding the WPS to the Philippines.

West Palawan, seen as an alternate to Malampaya gas fields whose gas output has begun to dwindle, is ostensibly rich in oil and gas “but it is within China’s (historic) nine-dash-line claim,” he said.

Unlike Philippine Rise, West Palawan has geo-political issues to be resolved, he added.

Although drilling and converting methane hydrates into commercial fuel might take 10 years or more, Gatchalian it is important to tackle the issue now since 10 years is just around the corner.

The Philippine Rise and West Palawan were discussed during Gatchalian committee’s public hearing on a Senate resolution directing an appropriate Senate committee to conduct an inquiry, in aid of legislation, on the national strategy to ensure energy security and energy self-sufficiency in view of the continuing increases in world oil prices.

Gatchalian said the country at present produces 55 percent of its energy requirements from renewable energy, natural gas and other sources.

He said whatever direction the scales go, whether energy would be sourced more from imports or not, still Philippine security and the consumers, would be affected.

“Energy security in any country is a very important in any political and governance goal . This hearing was compelling DOE (Department of Energy) to focus energy security as part of their planning process. The DOE admitted it is in their eight-point agenda but it is not detailed,” he added.

Gatchalian said a possible joint Philippine-China exploration in West Palawan might secure Philippine energy security “assuming we explore gas and oil.”

During the hearing, the Philippine Petroleum Association said West Palawan has a very big potential in the country’s energy security directions “but it remains to be explored.”

  • Energy Cooperation
  • Renewables
2 November 2018

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  • Philippines
Chinese State Councilor and Foreign Minister Wang Yi speaks to reporters. Wang was in Davao City on Oct. 29, 2018, where he said Chinese companies were willing to help Filipino energy firms. Reuters

MANILA — Chinese companies are willing to help their Filipino counterparts solve energy issues, Beijing’s top envoy said Monday after meeting his Philippine counterpart.

China has “mature” equipment, technologies, personnel, training and the financial capability to help the Philippines develop solar, hydro, wind and nuclear power, State Councilor and Foreign Minister Wang Yi said.

Wang spoke at a joint press conference with Department of Foreign Affairs Sec. Teddy Locsin Jr after their first ever meeting. The Chinese diplomat said there was “no reason” for Beijing not help its “good friend.”

“Philippines is an important neighbor for China. The Chinese companies, I believe, will be happy to discuss with Philippine companies to see what you need and how we can help address energy issues,” Wang said.

“Indeed energy provides an important driving force for our country’s development. It’s an important phase in our country’s industrialization. China has similar experience in its past development so we understand the urgent need of energy facing the Philippines,” he said.

Locsin said negotiations towards a code of conduct in the South China Sea were “moving forward with astonishing amity.” Manila and Beijing are among claimants in the resource-rich waters.

President Rodrigo Duterte, who assumed in 2016, sought to repair ties that were strained by the sea disputes, refusing to flaunt the Philippines’ victory in an international arbitration court.

Duterte’s predecessor, former president Benigno Aquino, initiated the case before the United Nations-backed Permanent Court of Arbitration based in The Hague.

The dispute stalled plans by businessman Manuel Pangilinan’s PXP Energy to jointly explore the Reed Bank with state-owned China National Offshore Oil Corp.

  • Renewables
2 November 2018

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  • Singapore

SP Group, a major corporation providing electricity and gas transmission in Singapore, has launched a blockchain-powered renewable energy certificate (REC) marketplace, the company reveals in a press release Monday, Oct. 29.

The platform was unveiled at the ASEAN Energy Business Forum held in Singapore this week. The press release notes that SP Group plans to use blockchain to help the company increase transparency and efficiency. Samuel Tan, chief digital officer of the corporation, further explained:

“Through blockchain technology, we enable companies to trade in renewable energy certificates conveniently, seamlessly and securely, helping them achieve greener business operations and meet their sustainability targets.”

The marketplace will support both local and international RECs — the documents that serve as proof that a particular amount of electrical energy has been produced by solar batteries. The first contracts have already been signed with global real estate developer CDL and multinational banking corporation DBS Bank. Three solar energy sellers — Cleantech Solar Asia, LYS Energy Solutions and Katoen Natie Singapore — are also joining the marketplace.

Singapore is not new to blockchain-powered energy solutions. As Cointelegraph reported in early October, plans for a decentralized peer-to-peer electricity network powered by SkyLedger were announced. The platform will reportedly allow citizens to produce and trade renewable energy.

Decentralized platforms are widely used to back solar energy production and trading. in February, the U.S. state of New York developed the Microgrid project for households who want to buy and sell electricity produced by solar panels. And in September, Australian real estate giant Vicinity announced it will trial a blockchain solutions within its $75 million solar energy program, testing it to supply a shopping mall with renewable energy.

  • Bioenergy
  • Energy Cooperation
2 November 2018

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  • Indonesia

U.S. manufacturer of household cleaning supplies SC Johnson and environmental organization Plastic Bank will open several plastic recycling centers in Indonesia, offering locals tokens for waste collection, according to a press release published Sunday, Oct. 28.

SC Johnson, which owns such brands as Glade, Ziploc and Mr. Muscle, has revealed recent scientific data on the plastic pollution of the ocean, stating that five Asian countries — China, Indonesia, the Philippines, Vietnam, and Thailand — account for more than 55 percent of the plastic waste leaking into the ocean.

With the help of Plastic Bank, SC Johnson will open eight plastic collection centers throughout Indonesia. The first one has officially opened in tourist mecca Bali on Oct. 28, with other centers scheduled to be operational by May 2019. After opening the network in Indonesia, SC Johnson hopes to expand the program to neighbouring Asian countries.

In those centers, local collectors can exchange plastic waste for digital tokens, which can then be used to purchase goods and services via a decentralized system. The press release notes that the use of blockchain in distributing tokens could help reduce the risk of loss or theft of remuneration.

This blockchain solution, the companies believe, will not only help combat the ocean pollution problem, but could reduce the poverty level in Indonesia itself, according to founder and CEO of Plastic Bank David Katz.

Blockchain technology is widely used in charity programs owing to its sustainability and high security level. For instance, the United Nations (UN) created a special panel on digital cooperation, which explicitly puts blockchain technology on the agenda.

Recent examples of blockchain use by UN include the UN Women project in Jordanian refugee camps, where fugitives obtain their salaries directly using blockchain. The payments within the program can also be made via a decentralized system where one can purchase food or goods using an iris scan instead of cash or cards.

Decentralized solutions are also used in the environment protection area, especially in the industry of renewable solar energy. For instance, Singapore’s major utility provider SP Group has recently announced the launch of a marketplace for the sale of renewable energy certificates.

  • Renewables
1 November 2018

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  • ASEAN

IRENA’s commitment to supporting a sustainable energy transition in Southeast Asia will be showcased during the Singapore International Energy Week (SIEW) starting next week. Various, high-level events throughout the week will offer insight and knowledge across a broad range of topics related to renewables in the region, including policy-making, finance and investments, off-grid solutions and the role of renewable energy in delivering rural healthcare.

Energy Ministers from the Association of Southeast Asian Nations (ASEAN), will kick-off the week on 29 and 30 October with 36th ASEAN Ministers on Energy Meeting (AMEM). A keynote by IRENA’s Director-General Adnan Z.  Amin on the ‘Global Energy Transformation 2050 and Southeast Asia Perspective’ will outline an economically attractive path to a low-carbon energy future in ASEAN fueling ministerial discussion aimed at scaling up renewable energy deployment.

IRENA and ASEAN will look to strengthen cooperation and co-develop strategies to stimulate investment flows and accelerate the pace of energy transformation. IRENA will outline the widespread socio-economic gains to communities in every corner of the region resulting from accelerated action on renewables. One key benefit being in job creation. Southeast Asia’s renewable energy employment stands at around 600 000 today, but the potential exists to generate well over two million jobs under an accelerated 2030 path.

Access to energy is a challenge for more than 65 million people in the region. Rising urban demand as well as low population density in remote communities make decentralised renewables solutions a reliable and affordable alternative for households. Scaling up the adoption of such off-grid systems is therefore the focus of IRENA’s 4th International Off-Grid Renewable Energy Conference (IOREC) on 31 October – 1 November. The two-day event will be co-located with the Asia Clean Energy Summit, and will showcase the latest policies, business models and systems aimed at powering rural communities that are often disconnected from the grid.

Finally, IOREC will be followed by the Renewable Energy Solutions for Healthcare Facilities conference – the first of its kind – on 2 November, which will explore the potential of renewable energy to transform healthcare in rural communities. The international conference will bridge the fields of energy and healthcare to develop meaningful pathways to better rural healthcare through the accelerated deployment of decentralised renewable technologies.

With technological innovation, dramatic cost declines, positive socio-economic benefits and the imperative to decarbonise our economies driving global energy transformation, Southeast Asian countries are well positioned to build a new and increasingly inclusive economic future based on low-carbon energy.

  • Oil & Gas
1 November 2018

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  • Malaysia

IN the past few weeks, we have felt the aftershocks of catastrophic weather that struck neighbouring nations. It hit closer to home when the Malaysian Meteorological Department put Sabah on tsunami watch on Oct 13.

Unstable climatic patterns, occurring at greater frequency and intensity, are reportedly the outcome of human activity. The situation may get worse unless we mend our ways.

A report released by the United Nations Inter-governmental Panel on Climate Change (IPCC) says the world is completely off track in keeping temperature rise under 1.5°C as pledged in the Paris Agreement, heading instead towards 3°C. Going past 1.5°C is dicing with the planet’s livability, the report warns. Most at risk are coral reefs, mangrove forests, small-scale fisheries, tourism and the Arctic land mass.

To reset the 1.5°C clock, the report recommends urgent action to reduce carbon emissions, adopt renewables as primary energy, with close to zero coal use.

That is why it is disconcerting to read recent news reports that Malaysia is considering coal mining to meet domestic power demand. Coal extraction and coal-fired power plants are among the biggest culprits in greenhouse gas emissions, the primary cause of global warming. Even more disconcerting is the targeted area — Sabah’s Maliau Basin, known as the Lost World. This pristine and protected rainforest is a bastion of carbon capture and sequestration. Carbon dioxide (CO2) currently accounts for about 60 per cent of the “enhanced greenhouse effect”; with CO2 trapped in wood, global warming slows.

What is puzzling is why Malaysia prefers coal (mostly imported) when it has substantial gas reserves. Policymakers say it is a question of cost. Coal is the least expensive available power source and translates into lower electricity bills. Politicians and policymakers tend to shy away from raising electricity costs, a platform upon which elections can be won or lost.

This is a blinkered, short-term view because it fails to factor in the social costs of coal pollution — spikes in health and food bills borne by the population. The World Health Organisation calls pollution a “silent killer”. Despite killing more people than all wars combined, pollution does not get the headlines it deserves. It is largely manmade, caused by diesel vehicles, agricultural burning and power plants.

The 11th Malaysia Plan (2016-2020) acknowledges this reality, and advocates increasing the share of renewables in our energy mix. In Sabah, where rural electrification is a priority, the focus is on renewables, such as solar hybrid and mini-hydro electricity, supported by off grid networks to ensure wider coverage. In the longer term, solar, waves and wind turbine are to be considered as viable alternatives, with the potential to revolutionise electricity generation in the state.

So, why this sudden U-turn with coal? Perhaps it is to be a stop-gap measure until renewables are more readily available. If that is the case, why not choose gas instead?

Smithsonian.com (Feb 13, 2014) says that when talking about climate change, not all fossil fuels are created equal. Burning natural gas, for instance, produces nearly half as much CO2 per unit of energy compared with coal. The rule of thumb is coal is half the cost of natural gas, but twice as polluting. The magazine says that natural gas can help nations lower their CO2 emissions while transition to renewable carbon-neutral forms of energy.

Over-reliance on one fuel type, however, is foolhardy in our energy-hungry world. Natural gas and renewables are ideal complementary fuels — the intermittent nature of renewables can be offset by the reliability of natural gas, described as an on-demand energy source that substantially reduces pollution relative to cost.

Industry and transportation, the other two key culprits in pollution, can benefit from using gas. Besides enhancing energy and operational efficiencies in industry, gas reduces carbon emissions substantially compared with other fossil fuels. This is becoming a priority with growing pressure for industry to be held accountable for carbon emissions.

Malaysian policymakers and captains of industry have some difficult decisions to make. The Paris Agreement commitment to cap the temperature rise to 1.5°C post-2020 requires a rethink of our energy sources. And there is a crying need to reduce pollution, given its maleficent impact on climate.

Climate change goes beyond extreme weather. It accelerates everything from the threat of diseases to the scarcity of essential daily items. Floods and droughts affect food crop yields and livelihoods of farmers. Healthcare systems are challenged by dengue and malaria outbreaks, with mosquitoes thriving in wet conditions. Rural populations are especially vulnerable to vector-borne and waterborne diseases in the aftermath of floods.

In 2015, Malaysia pledged to cut greenhouse gas emissions intensity by 45 per cent by 2030 and introduced measures, such as developing carbon-neutral cities, tax incentives to companies that report and limit emissions and procuring more environmentally friendly government assets. There is a programme to plant 13 million new trees since 2011.

We can expect even more sweeping outcomes by taking one more critical step: by making gas and renewables our fuels of choice. This action will accelerate Malaysia’s journey towards carbon neutrality by 2050. And accrue savings, both direct and indirect: savings from coal-import costs, saving our rainforests, saving our seas (coal-powered plants are located on the coast), saving our air, and savings on medical bills, food bills and livelihoods.

The argument that natural gas and renewables cost more than coal is myopic. They are complementary fuels that make as much economic sense as they do social and environmental sense. In short, this is a sustainable solution that will benefit mankind as much as Planet Earth.

  • Renewables
1 November 2018

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  • ASEAN

A new report on Asean’s energy landscape launched at the Asia Clean Energy Summit in Singapore takes a critical look at the barriers and drivers at the heart of the region’s transition to a low carbon economy.

Singapore, 31 October, 2018—A new ground-breaking study launched today by Eco-Business puts a spotlight on Southeast Asia’s transition to the low carbon economy and identifies the top challenges for the region as insufficient regulation and the lack of access to funding.

Southeast Asia is one of the most vulnerable regions in the world to climate change, with coastlines and densely populated low-lying areas that are increasingly threatened by rising sea levels. The Intergovernmental Panel on Climate Change (IPCC) observed earlier this month that humanity is already experiencing the consequences of 1 degree of global warming through more extreme weather events—nowhere is this felt more deeply than in Southeast Asia.

Not only does climate change endanger the environment and human lives, it is also predicted by the Asian Development Bank (ADB) to shave 11 per cent off the region’s GDP by the end of the century if left unchecked.

In response to these challenges, Southeast Asian countries are beginning to transform the way energy is produced and consumed in order to transition to a low carbon, sustainable economy. This includes switching to clean energy sources, reducing emissions, and re-evaluating businesses and assets which may be exposed to the effects of climate change.

This new report, Power Trip: Southeast Asia’s journey to the low carbon economy, outlines the region’s journey in making the energy transition in order to better understand the challenges countries are facing.

The report also forecasts what the Southeast Asia business landscape might look like by 2030 as companies take advantage of the opportunities that arise from the low carbon economy.

Launched at the Asia Clean Energy Summit 2018, this report is the first of its kind in Southeast Asia that outlines the drivers and barriers faced by specific countries in the region in their transition. This report surveyed 562 senior government, business and civic society executives from Indonesia, Malaysia, Thailand, the Philippines, Singapore and Vietnam between August and September 2018.

Here are some key findings from the survey:

  • The top three sectors most in need of investment in the region were renewable energy and storage, clean energy public transport systems and energy efficient technologies and innovations.
  • The top three drivers in the transition to a low carbon economy were business leadership, local government initiatives, and consumer pressure and purchasing habits.
  • The top two barriers to the transition were insufficient policy or regulation and lack of access to funding.
  • The top three changes anticipated in this transition were that there would be increased environmental regulations; consumers and businesses would have more clean energy options and services; and investors and fund managers would reduce their investment exposure to high carbon assets and businesses.

Tim Hill, Research Director for Eco-Business who led the white paper, commented: “It was exciting to get a sense of how the transition to a low carbon economy was developing from business leaders and other stakeholders in Southeast Asia. Although we noted some concerns about the pace of uptake of clean energy in some of the countries, it is clear that the technologies underlying the whole transition are enabling a more resilient and less polluted world—and there are going to be a lot of business opportunities in this new era.”

Experts interviewed for this whitepaper recognised that while there has been growing adoption of clean and low carbon technologies in Southeast Asia, the region has been slower to adapt to these changes relative to the rest of the world. Many respondents highlighted the ongoing dependency on coal—particularly in countries such as Indonesia, Vietnam and the Philippines—and the continued entrenchment of large state utilities in fossil-fuel power systems.

Justin Guay, Director Clean Air and Clean Energy at ClimateWorks Foundation observed: “Southeast Asia is the only region in the world where I hear officials from the utilities and energy ministries refer to the concept of ‘clean coal’ with a straight face”.

Jessica Cheam, Managing Editor of Eco-Business added: “Findings from our latest whitepaper reveal the urgent need to address specific barriers in the region’s transition to a low carbon economy. It is critical that we look at practical ways to implement policies that will create a conducive environment for clean energy innovations to proliferate, and how to structure them such that they attract investments. This will help the region avoid building more fossil fuel power plants that are detrimental to the environment and make it even harder for countries to fulfil their climate pledges.”

The Asia Clean Energy Summit is part of the Singapore International Energy Week, a week-long event hosted by the Singapore’s Energy Market Authority from 29 October to 2 November at the Sands Expo and Convention Centre, which gathers global and regional energy leaders to share insights and exchange best practices.

1 November 2018

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  • Thailand

The Energy Ministry is pressing for an increase in the content of crude palm oil in biodiesel to curb slumping palm oil prices after several rounds of discussions failed to deliver a compromise.

The urgent action is meant to absorb a surplus of palm oil in the country.

Thailand has produced 2.5 million tonnes of crude palm oil, with 900,000 tonnes going to vegetable oil for consumption and 1.3 million tonnes serving biodiesel for vehicles. The surplus of crude palm oil stands at 300,000 tonnes for 2018.

The methyl ester (ME) content is produced from crude palm oil and blended with the fuel. The current retail biodiesel is called B7, blended in a range of 6.6-7% ME.

Energy Minister Siri Jirapongphan said the ministry wants to increase the ME range to 6.8-7.2% and local biodiesel makers must comply with the new content.

“It is still B7, but we can absorb 80,000 tonnes of the crude palm oil surplus for the remainder of this year,” Mr Siri said.

A previous plan for B7+, blended with 7.2-7.3% ME, was already shot down, he said.

Crude palm oil prices have declined to a new low because of a European ban on imports from Asia.

The palm oil price in Thailand cratered to 2.5 baht per kilogramme this year from almost four baht per kg in 2017.

B7 has been available since July 2015, an upgrade from B5 as the government aimed to absorb the massive surplus of crude palm oil. Pure biodiesel, known as B100, is made by five companies: Patum Vegetable Oil, Global Green Chemicals, New Biodiesel, Bangchak Biofuel and Energy Absolute.

B100 production in August stood at 3.9 million litres a day, down 7.3% year-on-year. The country’s diesel distribution in August rose by 1.2% to 61.5 million litres a day, according to the Energy Business…

Mr Siri said the ministry has encouraged truck operators to use B20, blended with 20% ME, since July, projecting B20 consumption of 3 million litres a month.

The Energy Business Department reported that B20 consumption in old trucks is undergoing a trial project at a volume of 7.7 million litres.

The Transport Ministry has already used B20 in a trial test for five public buses operated by the Bangkok Mass Transit Authority and three long-haul buses operated by Transport Co.

Transport Co plans to run the test for a month to forecast B20 consumption in the future.

“We expect to absorb a large volume of crude palm oil, up to 1.7 million tonnes a year once we can use B20 in public transport,” Mr Siri said.

The ministry set the B20 retail price at three baht a litre below that of B7, and it is exempt from levy collection for the State Oil Fund.

The State Railway of Thailand also had a test run for diesel locomotives using B10 in March on the 30km Ban Laem-Mae Klong route in Samut Sakhon and Samut Songkhram, but the project could not absorb the huge surplus ofcrude palm oil.

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