Indonesia: Incentive cut discourages investment in renewable energy
A plan by Energy and Mineral Resources Minister Ignasius Jonan to cut
incentives for the development of new and renewable energy sources is being
criticized because it will discourage investors from putting their money
into this sector.
"The objective of the subsidy is to encourage the growth of new and
renewable energy. Even with the current subsidy, the progress of new and
renewable energy is sluggish," said ReforMiner Institute executive director
Komaidi Notonegoro on Sunday.
The government would not significantly curb its overall spending by cutting
the renewable energy subsidy because renewable sources only satisfy some 14
percent of the total energy demand in the country, he added.
If the government wants to cut subsidies to make itself more efficient, it
should cut the diesel fuel subsidy instead, he said, adding that the price
of electricity from a geothermal plant is Rp 1,200 (1 US cent) per kWh,
while the price of electricity from a diesel-fired plant is between Rp 3,400
and Rp 4,000 per kWh.
"If the government cuts the diesel fuel subsidy and shifts it to new and
renewable energy, it will significantly encourage the development of new and
renewable energy," Komaidi said as reported by tribunnews.com.
He said hydroelectric dams supplied 8 percent of renewable energy, making
them the largest contributors because hydroelectricity has been developed
for a long time, followed by geothermal plants that contribute 4 percent,
while the remainder comes from other new and renewable sources.
Jonan previously said that the industry does not need incentives to develop
the new and renewable energy sources that are expected to meet 23 percent of
the country's energy needs within a few years.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.thejakartapost.com/news/2017/01/30/incentive-cut-discourages-inve
stment-in-renewable-energy-expert.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Tuesday, January 31, 2017
Indonesia: Pertamina Explains Loss Mitigation Strategy
Indonesia: Pertamina Explains Loss Mitigation Strategy
State-owned oil and gas company PT Pertamina is preparing a strategy to
optimize its efforts to construct new oil rigs and improve existing rigs.
"We are in the process of expose licensor selection," said Pertamina CEO Dwi
Soetjipto on Monday, January 30, 2017.
Moreover, Pertamina had recently experienced an unplanned shut down on
several oil rigs. As a result, the company is predicted to suffer US$70
million losses.
Dwi stated that the rig optimization program will be conducted through the
Refinery Development Master Plan (RDMP) project and New Grass Root Refinery
(NGRR) Project. "We have four rigs to be 'updated' through the RDMP
[project] and two new rigs for the NGRR [project]," Dwi said.
Dwi explained that the optimization efforts are aimed at achieving energy
sustainability in 2023. Dwi added that the company expected the rig
construction and improvement projects to run smoothly. "Hopefully [the
project] can run quickly and can be in accordance with the revitalization
target," Dwi added.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://en.tempo.co/read/news/2017/01/30/056841147/Pertamina-Explains-Loss-M
itigation-Strategy
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
State-owned oil and gas company PT Pertamina is preparing a strategy to
optimize its efforts to construct new oil rigs and improve existing rigs.
"We are in the process of expose licensor selection," said Pertamina CEO Dwi
Soetjipto on Monday, January 30, 2017.
Moreover, Pertamina had recently experienced an unplanned shut down on
several oil rigs. As a result, the company is predicted to suffer US$70
million losses.
Dwi stated that the rig optimization program will be conducted through the
Refinery Development Master Plan (RDMP) project and New Grass Root Refinery
(NGRR) Project. "We have four rigs to be 'updated' through the RDMP
[project] and two new rigs for the NGRR [project]," Dwi said.
Dwi explained that the optimization efforts are aimed at achieving energy
sustainability in 2023. Dwi added that the company expected the rig
construction and improvement projects to run smoothly. "Hopefully [the
project] can run quickly and can be in accordance with the revitalization
target," Dwi added.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://en.tempo.co/read/news/2017/01/30/056841147/Pertamina-Explains-Loss-M
itigation-Strategy
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Shell's Divestment Push Reaches Thailand in $900 Million Sale
Shell's Divestment Push Reaches Thailand in $900 Million Sale
Royal Dutch Shell Plc will sell its stake in an offshore Thai gas field to a
unit of Kuwait Petroleum Corp. for $900 million as the international energy
giant continues hawking assets for cash in the midst of a years-long energy
slump.
Shell reached an agreement to sell two subsidiaries that own a combined 22.2
percent interest in the Bongkot field and adjoining offshore acreage to a
subsidiary of Kuwait Foreign Petroleum Exploration Co., the unit known as
Kufpec, Shell said in a statement Tuesday. A spokesperson for Kufpec, the
international arm of Kuwait's state-owned energy company, wasn't immediately
available to comment.
The Bongkot field started production in 1993 and came to Shell when it
acquired BG Group Plc for $70 billion in 2015. To win shareholder support
for that deal, Shell has promised cost savings of $2.5 billion, asset
disposals of at least $30 billion within four years and a share buyback of
$25 billion from 2017 to 2020.
"This transaction shows the clear momentum behind Shell's global,
value-driven $30 billion divestment programme, and is consistent with the
company's strategy to high-grade and simplify its portfolio following the
acquisition of BG," Shell said in the release.
The field's other owners are Total SA, with a 33.3 percent stake, and PTT
Exploration & Production PCL, which has 44.4 percent share and operates the
field. The deal should be completed this quarter, Shell said in the release.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://www.bloomberg.com/news/articles/2017-01-31/shell-s-divestment-push-r
eaches-thailand-in-900-million-sale
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Royal Dutch Shell Plc will sell its stake in an offshore Thai gas field to a
unit of Kuwait Petroleum Corp. for $900 million as the international energy
giant continues hawking assets for cash in the midst of a years-long energy
slump.
Shell reached an agreement to sell two subsidiaries that own a combined 22.2
percent interest in the Bongkot field and adjoining offshore acreage to a
subsidiary of Kuwait Foreign Petroleum Exploration Co., the unit known as
Kufpec, Shell said in a statement Tuesday. A spokesperson for Kufpec, the
international arm of Kuwait's state-owned energy company, wasn't immediately
available to comment.
The Bongkot field started production in 1993 and came to Shell when it
acquired BG Group Plc for $70 billion in 2015. To win shareholder support
for that deal, Shell has promised cost savings of $2.5 billion, asset
disposals of at least $30 billion within four years and a share buyback of
$25 billion from 2017 to 2020.
"This transaction shows the clear momentum behind Shell's global,
value-driven $30 billion divestment programme, and is consistent with the
company's strategy to high-grade and simplify its portfolio following the
acquisition of BG," Shell said in the release.
The field's other owners are Total SA, with a 33.3 percent stake, and PTT
Exploration & Production PCL, which has 44.4 percent share and operates the
field. The deal should be completed this quarter, Shell said in the release.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://www.bloomberg.com/news/articles/2017-01-31/shell-s-divestment-push-r
eaches-thailand-in-900-million-sale
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Indonesia: Pertamina to Build Three Oil Refinery Projects in 2017
Indonesia: Pertamina to Build Three Oil Refinery Projects in 2017
State-owned oil and gas firm PT Pertamina hopes it will see the
groundbreaking of the development of three oil refinery plants in 2017,
notably RDMP RU V Balikpapan, NGRR Tuban and RDMP RU IV Cilacap.
"We hope that the groundbreaking of the refinery plant development in
Balikpapan would be done in the quarter I, the Tuban in quarter III and the
Cilacap in quarter IV. Hopefully, the activities of all these would be seen
in 2017," Pertamina President Director Dwi Soetjipto told a press conference
in Jakarta on Monday, January 30.
He said the Refinery Development Master Plan (RDMP) of refinery Balikpapan
is now in the process of site preparation and pier development. Pertamina
hopes that the construction of the two (RDMP and pier) could be finished in
one year so that machinery and heavy equipment of the project could be
transported through the pier.
In the meantime, its basic engineering design (BED) will be completed by the
end of January 2017 and front-end engineering design (FEED) by the end of
July 2017, so that the Balikpapan RDMP will be under construction between
2017 and 2019.
On the same occasion, Management and Petrochemical Megaproject Director,
Rachmad Hardadi, stated that the groundbreaking of RDMP Balikpapan will be
done by the end of February 2017.
"The president will inaugurate the groundbreaking by the end of February,
particularly after its environmental impact analysis (Amdal) is completed on
February 18, 2017," he added.
The other projects that will have a groundbreaking ceremony this year are
the RDMP RU IV Cilacap and New Grass Root Refinery (NGRR) Tuban. The two are
expected to be on stream by the end of 2021.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://en.tempo.co/read/news/2017/01/31/056841390/Pertamina-to-Build-Three-
Oil-Refinery-Projects-in-2017
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
State-owned oil and gas firm PT Pertamina hopes it will see the
groundbreaking of the development of three oil refinery plants in 2017,
notably RDMP RU V Balikpapan, NGRR Tuban and RDMP RU IV Cilacap.
"We hope that the groundbreaking of the refinery plant development in
Balikpapan would be done in the quarter I, the Tuban in quarter III and the
Cilacap in quarter IV. Hopefully, the activities of all these would be seen
in 2017," Pertamina President Director Dwi Soetjipto told a press conference
in Jakarta on Monday, January 30.
He said the Refinery Development Master Plan (RDMP) of refinery Balikpapan
is now in the process of site preparation and pier development. Pertamina
hopes that the construction of the two (RDMP and pier) could be finished in
one year so that machinery and heavy equipment of the project could be
transported through the pier.
In the meantime, its basic engineering design (BED) will be completed by the
end of January 2017 and front-end engineering design (FEED) by the end of
July 2017, so that the Balikpapan RDMP will be under construction between
2017 and 2019.
On the same occasion, Management and Petrochemical Megaproject Director,
Rachmad Hardadi, stated that the groundbreaking of RDMP Balikpapan will be
done by the end of February 2017.
"The president will inaugurate the groundbreaking by the end of February,
particularly after its environmental impact analysis (Amdal) is completed on
February 18, 2017," he added.
The other projects that will have a groundbreaking ceremony this year are
the RDMP RU IV Cilacap and New Grass Root Refinery (NGRR) Tuban. The two are
expected to be on stream by the end of 2021.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://en.tempo.co/read/news/2017/01/31/056841390/Pertamina-to-Build-Three-
Oil-Refinery-Projects-in-2017
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Cambodia: Coal-fired plant tests new power generator
Cambodia: Coal-fired plant tests new power generator
Structural testing of the third unit of a 700-megawatt coal-fired power
plant under development in Preah Sihanouk province has begun, with the new
unit expected to go online by the end of the quarter, a government official
said yesterday.
The 135-megawatt power-generating unit, which was initially slated to be
operational last month, will add to the existing 270-megawatt capacity of
the massive Cambodia International Investment Development Group (CIIDG)
power station, which first fired up in late 2014.
"The new unit is in its testing phase and will have a commercial operation
date soon," said Tun Lean, undersecretary of state for the Electricity
Authority of Cambodia (EAC).
A $383 million joint venture between CIIDG, owned by influential Cambodian
People's Party Senator Lao Meng Khin, and China-based Erdos Hongjun Electric
Power Co is developing the power plant under a 33-year build-operate-own
concession from the government.
While the company can officially start selling electricity from the new unit
once it passes the compliance checks, Lean said the government has not set a
definitive date to start purchasing electricity. That would depend on
Electricite du Cambodge (EdC), the state-owned energy provider, he said.
Victor Jona, spokesperson for the Ministry of Mines and Energy, said the
government hopes to have the third unit linked to the electricity grid
within two months.
"After it passes the tests, it will be connected to the national grid," he
said.
The plant's increased output will help grow domestic energy production, Jona
said, adding that the facility will continue to rely on Indonesian coal
imports for fuel.
According to the EAC's most recent annual report, the partially completed
CIIDG plant was already the country's single largest domestic energy
provider, producing 1.5 billion kilowatt-hours of electricity in 2015,
nearly a third of Kingdom's total production.
This easily eclipsed any single hydroelectric dam project, as well as the
100-megawatt coal-fired plant owned by Malaysia's Leader Universal Holdings
that sits adjacent to it.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.phnompenhpost.com/business/coal-fired-plant-tests-new-power-gener
ator?utm_source=Phnompenh+Post+Main+List&utm_campaign=61093bd646-20170131&ut
m_medium=email&utm_term=0_690109a91f-61093bd646-45529029
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Structural testing of the third unit of a 700-megawatt coal-fired power
plant under development in Preah Sihanouk province has begun, with the new
unit expected to go online by the end of the quarter, a government official
said yesterday.
The 135-megawatt power-generating unit, which was initially slated to be
operational last month, will add to the existing 270-megawatt capacity of
the massive Cambodia International Investment Development Group (CIIDG)
power station, which first fired up in late 2014.
"The new unit is in its testing phase and will have a commercial operation
date soon," said Tun Lean, undersecretary of state for the Electricity
Authority of Cambodia (EAC).
A $383 million joint venture between CIIDG, owned by influential Cambodian
People's Party Senator Lao Meng Khin, and China-based Erdos Hongjun Electric
Power Co is developing the power plant under a 33-year build-operate-own
concession from the government.
While the company can officially start selling electricity from the new unit
once it passes the compliance checks, Lean said the government has not set a
definitive date to start purchasing electricity. That would depend on
Electricite du Cambodge (EdC), the state-owned energy provider, he said.
Victor Jona, spokesperson for the Ministry of Mines and Energy, said the
government hopes to have the third unit linked to the electricity grid
within two months.
"After it passes the tests, it will be connected to the national grid," he
said.
The plant's increased output will help grow domestic energy production, Jona
said, adding that the facility will continue to rely on Indonesian coal
imports for fuel.
According to the EAC's most recent annual report, the partially completed
CIIDG plant was already the country's single largest domestic energy
provider, producing 1.5 billion kilowatt-hours of electricity in 2015,
nearly a third of Kingdom's total production.
This easily eclipsed any single hydroelectric dam project, as well as the
100-megawatt coal-fired plant owned by Malaysia's Leader Universal Holdings
that sits adjacent to it.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.phnompenhpost.com/business/coal-fired-plant-tests-new-power-gener
ator?utm_source=Phnompenh+Post+Main+List&utm_campaign=61093bd646-20170131&ut
m_medium=email&utm_term=0_690109a91f-61093bd646-45529029
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Indonesia: Pertamina to go solo on Balongan refinery
Indonesia: Pertamina to go solo on Balongan refinery
Indonesian energy company Pertamina will proceed with an upgrade of its
Balongan refinery without a partner, company officials said on Monday The
decision to go it alone on the project, which is on the north coast of Java,
comes after the expiry in November of an initial agreement with Saudi Aramco
from 2015 on upgrades of the Balongan and Dumai refineries.
The state-owned Saudi oil company had expressed an interest in the project
as recently as December.
"The process of forming a partnership was taking a long time," Pertamina CEO
Dwi Soetjipto told Reuters, when asked why the state-controlled Pertamina
had decided against working with Aramco on Balongan.
"This is really needed," he said referring to the upgrade.
Mr Soetjipto said the decision would ensure that Pertamina could avoid
importing low sulphur waxy residue that would be in short supply without the
upgrade.
Pertamina's investment in Balongan, however, would be "less than initially
planned," Mr Soetjipto said. He said that the expansion at the refinery
would be "linked to Pertamina's financial condition".
The company's petrochemicals and megaprojects director Rachmad Hardadi,
speaking at a briefing on Pertamina's refinery projects, said Aramco had
"already accepted," Pertamina's decision.
"(Aramco) have committed to speed up work on Cilacap," Mr Hardadi said,
referring to Indonesia's biggest refinery, which Pertamina is upgrading in
partnership with Aramco and aims to complete this in 2021.
The upgrade of the Balongan refinery, which will be completed in two stages,
will roughly double its crude capacity to 240,000 barrels per day (bpd) from
around 125,000 bpd at present, Mr Hardadi said, and completion is due in
2020.
The US$1.2 billion first stage of the upgrade aims to enable Pertamina to
process medium crude at the plant with a sulphur content of 0.4 to 0.5 per
cent, Mr Hardadi said.
"In the second stage we will make improvements so it can process sour crude
and be more competitive on costs," he said.
Pertamina is still considering whether to partner with Aramco in the second
stage of the upgrade, Mr Soetjipto said.
The company is also still considering whether to find a partner for an
upgrade at the Dumai refinery, he said, noting that this was not a top
priority and was not expected to be completed until 2024.
"It's also related to financial issues," he said.
Pertamina expects to decide in April on a partner to take up to a 90 per
cent stake in the Bontang grassroots refinery and petrochemical plant
project, which it estimates to be worth US$8 billion. The company is aiming
to complete this project in 2023.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.businesstimes.com.sg/energy-commodities/pertamina-to-go-solo-on-b
alongan-refinery?xtor=EREC-16-1[BT_Newsletter_1]-20170131-[Pertamina+to+go+s
olo+on+Balongan+refinery]&xts=538380
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Indonesian energy company Pertamina will proceed with an upgrade of its
Balongan refinery without a partner, company officials said on Monday The
decision to go it alone on the project, which is on the north coast of Java,
comes after the expiry in November of an initial agreement with Saudi Aramco
from 2015 on upgrades of the Balongan and Dumai refineries.
The state-owned Saudi oil company had expressed an interest in the project
as recently as December.
"The process of forming a partnership was taking a long time," Pertamina CEO
Dwi Soetjipto told Reuters, when asked why the state-controlled Pertamina
had decided against working with Aramco on Balongan.
"This is really needed," he said referring to the upgrade.
Mr Soetjipto said the decision would ensure that Pertamina could avoid
importing low sulphur waxy residue that would be in short supply without the
upgrade.
Pertamina's investment in Balongan, however, would be "less than initially
planned," Mr Soetjipto said. He said that the expansion at the refinery
would be "linked to Pertamina's financial condition".
The company's petrochemicals and megaprojects director Rachmad Hardadi,
speaking at a briefing on Pertamina's refinery projects, said Aramco had
"already accepted," Pertamina's decision.
"(Aramco) have committed to speed up work on Cilacap," Mr Hardadi said,
referring to Indonesia's biggest refinery, which Pertamina is upgrading in
partnership with Aramco and aims to complete this in 2021.
The upgrade of the Balongan refinery, which will be completed in two stages,
will roughly double its crude capacity to 240,000 barrels per day (bpd) from
around 125,000 bpd at present, Mr Hardadi said, and completion is due in
2020.
The US$1.2 billion first stage of the upgrade aims to enable Pertamina to
process medium crude at the plant with a sulphur content of 0.4 to 0.5 per
cent, Mr Hardadi said.
"In the second stage we will make improvements so it can process sour crude
and be more competitive on costs," he said.
Pertamina is still considering whether to partner with Aramco in the second
stage of the upgrade, Mr Soetjipto said.
The company is also still considering whether to find a partner for an
upgrade at the Dumai refinery, he said, noting that this was not a top
priority and was not expected to be completed until 2024.
"It's also related to financial issues," he said.
Pertamina expects to decide in April on a partner to take up to a 90 per
cent stake in the Bontang grassroots refinery and petrochemical plant
project, which it estimates to be worth US$8 billion. The company is aiming
to complete this project in 2023.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.businesstimes.com.sg/energy-commodities/pertamina-to-go-solo-on-b
alongan-refinery?xtor=EREC-16-1[BT_Newsletter_1]-20170131-[Pertamina+to+go+s
olo+on+Balongan+refinery]&xts=538380
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Philippines: Energy research institute proposed
Philippines: Energy research institute proposed
THE chairman of the Senate committee on energy is proposing the creation of
a research institute that will focus on spurring the growth of the country's
energy sector to keep it at par with international developments.
"The energy sector is naturally characterized by rapidly changing
technologies. Unfortunately, most of the country's policy instruments cannot
keep up due to limitations in local research and technical capacity," said
Senator Sherwin T. Gatchalian in a statement.
Mr. Gatchalian said he has filed Senate Bill No. 1290, which proposes the
establishment of a Philippine Energy Research and Policy Development
Institute in the School of Economics of the University of the Philippines in
Diliman.
"This bill seeks to address these limitations by establishing an institution
which will bridge research and policy gaps in pursuit of Philippine energy
security, affordability, and sustainability," he said.
He expects the research institute to bring the sector "up to speed with
innovative international technologies and make the industry more responsive
to the demands of consumers and sector players."
Mr. Gatchalian said the government has been tapping private foreign-funded
institutions and organizations for data because of the "scarce databases in
universities and research centers."
Under the bill, the research institute is mandated to "undertake
collaborative energy research and policy development among the academe and
stakeholders; provide timely technical assistance to the government on
energy issues needing policy direction and advise; and create and administer
programs intended to build the capacity of government agencies, energy
stakeholders, and the academe."
The institute will also be in charge of ensuring that its output is used "to
improve the energy sector, the economy, and the lives of the people."
Mr. Gatchalian's proposal comes as the Department of Energy (DoE) is
exploring a possible cooperation with its counterpart in China in several
areas, including training and development.
Energy Secretary Alfonso G. Cusi said he had meetings during a recent trip
with officials of China's National Energy Administration (NEA), wherein they
discussed the possible forging of a memorandum of understanding.
"We're looking at how they are approaching it. We'll see how we can both
enhance and learn from one another," he said on the sidelines of an energy
event on Thursday. "It's not a one way street."
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.bworldonline.com/content.php?section=Nation&title=energy-research
-institute-proposed&id=139802
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
THE chairman of the Senate committee on energy is proposing the creation of
a research institute that will focus on spurring the growth of the country's
energy sector to keep it at par with international developments.
"The energy sector is naturally characterized by rapidly changing
technologies. Unfortunately, most of the country's policy instruments cannot
keep up due to limitations in local research and technical capacity," said
Senator Sherwin T. Gatchalian in a statement.
Mr. Gatchalian said he has filed Senate Bill No. 1290, which proposes the
establishment of a Philippine Energy Research and Policy Development
Institute in the School of Economics of the University of the Philippines in
Diliman.
"This bill seeks to address these limitations by establishing an institution
which will bridge research and policy gaps in pursuit of Philippine energy
security, affordability, and sustainability," he said.
He expects the research institute to bring the sector "up to speed with
innovative international technologies and make the industry more responsive
to the demands of consumers and sector players."
Mr. Gatchalian said the government has been tapping private foreign-funded
institutions and organizations for data because of the "scarce databases in
universities and research centers."
Under the bill, the research institute is mandated to "undertake
collaborative energy research and policy development among the academe and
stakeholders; provide timely technical assistance to the government on
energy issues needing policy direction and advise; and create and administer
programs intended to build the capacity of government agencies, energy
stakeholders, and the academe."
The institute will also be in charge of ensuring that its output is used "to
improve the energy sector, the economy, and the lives of the people."
Mr. Gatchalian's proposal comes as the Department of Energy (DoE) is
exploring a possible cooperation with its counterpart in China in several
areas, including training and development.
Energy Secretary Alfonso G. Cusi said he had meetings during a recent trip
with officials of China's National Energy Administration (NEA), wherein they
discussed the possible forging of a memorandum of understanding.
"We're looking at how they are approaching it. We'll see how we can both
enhance and learn from one another," he said on the sidelines of an energy
event on Thursday. "It's not a one way street."
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.bworldonline.com/content.php?section=Nation&title=energy-research
-institute-proposed&id=139802
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
BCPG invests in wind power business in Philippines
BCPG invests in wind power business in Philippines
WITH a stated goal to expand its renewable power businesses in Asia, BCPG is
investing in a wind-power project in the Philippines through an indirect
40-per-cent equity acquisition of PetroWind Energy Inc (PWEI).
With a total production capacity of 50 megawatts, the project will generate
profits before the end of this year, BCPG says.
BCPG president Bundit Sapianchai said his company had signed a legally
binding term sheet with CAIF III (the third fund of Singapore-based CapAsia
Asean Infrastructure Fund) to acquire 40-per-cent equity in |PWEI, a major
player in the wind-energy business, incorporated in the Philippines.
PWEI owns an operating 36MW wind-power project and a 14MW project is under
development, located in Nabas in the Philippines' Western Visayas region.
This transaction was made through the acquisition of the entire interest in
CapAsia Asean Wind Holdings Cooperatief UA and is expected to be completed
this quarter, which will enable BCPG to expect profit from the investment
from this year onwards.
Through this transaction, BCPG has formed a partnership with a dominant
group of companies in the Philippines whose businesses include banking,
insurance, education, real estate and construction. The partners aim jointly
to develop renewable-source power plants in Southeast Asia.
BCPG says the acquisition of the wind-power business in the Philippines
reinforces its commitment to expansion into other forms of renewable energy,
in addition to solar power. It says its mission is to invest, develop and
operate green power plants globally with state-of-the-art technology to
secure a sustainable and environmentally friendly business platform.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.nationmultimedia.com/news/business/aec/30305315?utm_source=feedbu
rner&utm_medium=email&utm_campaign=Feed%3A+Nationmultimediacom-Business+%28N
ationMultimedia.com+-+Business%29
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
WITH a stated goal to expand its renewable power businesses in Asia, BCPG is
investing in a wind-power project in the Philippines through an indirect
40-per-cent equity acquisition of PetroWind Energy Inc (PWEI).
With a total production capacity of 50 megawatts, the project will generate
profits before the end of this year, BCPG says.
BCPG president Bundit Sapianchai said his company had signed a legally
binding term sheet with CAIF III (the third fund of Singapore-based CapAsia
Asean Infrastructure Fund) to acquire 40-per-cent equity in |PWEI, a major
player in the wind-energy business, incorporated in the Philippines.
PWEI owns an operating 36MW wind-power project and a 14MW project is under
development, located in Nabas in the Philippines' Western Visayas region.
This transaction was made through the acquisition of the entire interest in
CapAsia Asean Wind Holdings Cooperatief UA and is expected to be completed
this quarter, which will enable BCPG to expect profit from the investment
from this year onwards.
Through this transaction, BCPG has formed a partnership with a dominant
group of companies in the Philippines whose businesses include banking,
insurance, education, real estate and construction. The partners aim jointly
to develop renewable-source power plants in Southeast Asia.
BCPG says the acquisition of the wind-power business in the Philippines
reinforces its commitment to expansion into other forms of renewable energy,
in addition to solar power. It says its mission is to invest, develop and
operate green power plants globally with state-of-the-art technology to
secure a sustainable and environmentally friendly business platform.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.nationmultimedia.com/news/business/aec/30305315?utm_source=feedbu
rner&utm_medium=email&utm_campaign=Feed%3A+Nationmultimediacom-Business+%28N
ationMultimedia.com+-+Business%29
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Indonesia pushes for self-sufficient biofuels production in 'uncertain' world
Indonesia pushes for self-sufficient biofuels production in 'uncertain'
world
Indonesia's Coordinating Minister of Maritime Affairs, Luhut Binsar
Panjaitan, has said the country will reduce imports and promote the use of
palm oil usage for biofuels to reduce its dependency on other countries, due
to an uncertain global environment.
According to local website netralnews.com, Panjaitan said Indonesia must be
read to face changes in a current global situation, following Donald Trump's
United States presidential election win that is said to be capable of
changing the global political and economic maps.
He said the US-which was still the largest oil importer in the world as of
mid-2016 - has started reducing its dependency on other countries, while at
the same moment trying to export gas.
Luhut added that the impact from Trump's presidential campaign victory also
affected Europe and Middle East countries, according to the news channel.
Indonesia, he said, will reduce imports in various sectors. The Indonesian
government is now promoting the increase of palm oil usage for biofuels to
20%
The requirement to use 20% of palm oil in biodiesel fuel can reduce import
of fossil fuel-based fuels. "We had been more accustomed to imports in the
last ten year. [We also want to increase] the yield from palm oil plasma
farmers to 8-10 tonnes per hectare from 2-3 tonnes per hectare. Thus, our
farmers will be more prosperous," Luhut said.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://biofuels-news.com/display_news/11781/indonesia_pushes_for_selfsuffici
ent_biofuels_production_in_uncertain_world/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
world
Indonesia's Coordinating Minister of Maritime Affairs, Luhut Binsar
Panjaitan, has said the country will reduce imports and promote the use of
palm oil usage for biofuels to reduce its dependency on other countries, due
to an uncertain global environment.
According to local website netralnews.com, Panjaitan said Indonesia must be
read to face changes in a current global situation, following Donald Trump's
United States presidential election win that is said to be capable of
changing the global political and economic maps.
He said the US-which was still the largest oil importer in the world as of
mid-2016 - has started reducing its dependency on other countries, while at
the same moment trying to export gas.
Luhut added that the impact from Trump's presidential campaign victory also
affected Europe and Middle East countries, according to the news channel.
Indonesia, he said, will reduce imports in various sectors. The Indonesian
government is now promoting the increase of palm oil usage for biofuels to
20%
The requirement to use 20% of palm oil in biodiesel fuel can reduce import
of fossil fuel-based fuels. "We had been more accustomed to imports in the
last ten year. [We also want to increase] the yield from palm oil plasma
farmers to 8-10 tonnes per hectare from 2-3 tonnes per hectare. Thus, our
farmers will be more prosperous," Luhut said.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://biofuels-news.com/display_news/11781/indonesia_pushes_for_selfsuffici
ent_biofuels_production_in_uncertain_world/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Saturday, January 28, 2017
Thailand: PTT furthers transparency
Thailand: PTT furthers transparency
National oil and gas firm PTT Plc will allow the National Anti-Corruption
Commission (NACC) to examine the company's internal investigation into the
latest Rolls-Royce bribery case to promote transparency, says president and
chief executive Tevin Vongvanich.
The move is the latest response to the US Justice Department's allegations
that PTT officials accepted bribes to buy Rolls-Royce engines.
PTT and Thai Airways International were both mentioned in regard to the case
last week.
PTT has set up an internal investigative committee consisting of company
members who have never been involved in procurement or auction processes in
order to ensure transparency.
The results of the investigation will be finalised within a month.
Mr Tevin said the PTT board has suggested the company allow the NACC to join
the investigation and take a role in the company's procurement to contribute
to a more transparent process.
Furthermore, middlemen or sales representatives and all agents will be
registered with the company before joining the procurement process, allowing
actions to be traced accurately.
Mr Tevin said the new measures and regulations are expected to be finalised
soon and will be applied at the auction of PTT's fifth gas pipeline
development project, which is due to open for bidding this year. The project
is worth an estimated 92 billion baht.
The gas pipeline project was designed to link gas supply between the eastern
and western regions and help avert disruptions at gas blocks in the Gulf of
Thailand while maintenance is taking place.
The development of the second unit of the liquefied natural gas (LNG)
receiving terminal, worth 23 billion baht, is due to be auctioned in the
second half of the year.
PTT is one of 50 firms that joined the Anti-Corruption Organization of
Thailand (ACT) in June 2011.
Last year, PTT applied ACT's model of transparent procurement by inviting
members selected by ACT to monitor the auction process for gas pipeline
compressor units in Ayutthaya's Wang Noi district.
According to PTT's report, over the next five years, PTT and its
subsidiaries will set aside nearly 900 billion baht for capital expenditure
towards business expansion.
Two new units, PTT Oil and Retail Co and Global Green Plc, are due to be
spun off for listing on the Stock Exchange of Thailand.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.bangkokpost.com/business/news/1188329/ptt-furthers-transparency
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
National oil and gas firm PTT Plc will allow the National Anti-Corruption
Commission (NACC) to examine the company's internal investigation into the
latest Rolls-Royce bribery case to promote transparency, says president and
chief executive Tevin Vongvanich.
The move is the latest response to the US Justice Department's allegations
that PTT officials accepted bribes to buy Rolls-Royce engines.
PTT and Thai Airways International were both mentioned in regard to the case
last week.
PTT has set up an internal investigative committee consisting of company
members who have never been involved in procurement or auction processes in
order to ensure transparency.
The results of the investigation will be finalised within a month.
Mr Tevin said the PTT board has suggested the company allow the NACC to join
the investigation and take a role in the company's procurement to contribute
to a more transparent process.
Furthermore, middlemen or sales representatives and all agents will be
registered with the company before joining the procurement process, allowing
actions to be traced accurately.
Mr Tevin said the new measures and regulations are expected to be finalised
soon and will be applied at the auction of PTT's fifth gas pipeline
development project, which is due to open for bidding this year. The project
is worth an estimated 92 billion baht.
The gas pipeline project was designed to link gas supply between the eastern
and western regions and help avert disruptions at gas blocks in the Gulf of
Thailand while maintenance is taking place.
The development of the second unit of the liquefied natural gas (LNG)
receiving terminal, worth 23 billion baht, is due to be auctioned in the
second half of the year.
PTT is one of 50 firms that joined the Anti-Corruption Organization of
Thailand (ACT) in June 2011.
Last year, PTT applied ACT's model of transparent procurement by inviting
members selected by ACT to monitor the auction process for gas pipeline
compressor units in Ayutthaya's Wang Noi district.
According to PTT's report, over the next five years, PTT and its
subsidiaries will set aside nearly 900 billion baht for capital expenditure
towards business expansion.
Two new units, PTT Oil and Retail Co and Global Green Plc, are due to be
spun off for listing on the Stock Exchange of Thailand.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.bangkokpost.com/business/news/1188329/ptt-furthers-transparency
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Philippines, Russia ready to forge energy links
Philippines, Russia ready to forge energy links
The Philippines and Russia are set to expand their cooperation in the field
of energy, including through an exchange of information, experts, and
technology, the Department of Foreign Affairs announced Saturday.
This was discussed when Philippine Ambassador to Russia Carlos Sorreta met
with Roman Marshavin, director for international cooperation of Russia's
Ministry of Energy (Minenergo) last January 24.
"Russia is a global leader when it comes to energy and has recently invested
more time and focus in developing its technological edge in the area of
alternative and sustainable sources of energy," said Sorreta.
The envoy suggested developing B2B linkages between Russian energy companies
and their Philippine counterparts so the Philippines could learn more about
Russia's energy production capabilities.
Marshavin meanwhile agreed to communicate with Russian companies on this
matter.
The Russian official also expressed interest in increasing current oil sales
to the Philippines, given the country's increasing energy needs.
Both sides agreed that increasing energy cooperation between the Philippines
and Russia is timely since the Philippines is exploring renewable and
alternative sources of energy to fuel its growing economy.
Both officials agreed that cooperation in the area of energy will be greatly
enhanced through an agreed framework. They expressed hope that such
framework could be finalized in time for President Rodrigo Duterte's visit
to Russia, which is slated on the first half of 2017.
Anna Smurigina, lead counsel of the Department of International Cooperation
joined Marshavin during the meeting. Officers of the Philippine Embassy in
Moscow, Jeffrey Valdez and Catherine Alpay, and interpreter Dmitry Khodzko
accompanied Sorreta.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://news.mb.com.ph/2017/01/28/ph-russia-ready-to-forge-energy-links/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
The Philippines and Russia are set to expand their cooperation in the field
of energy, including through an exchange of information, experts, and
technology, the Department of Foreign Affairs announced Saturday.
This was discussed when Philippine Ambassador to Russia Carlos Sorreta met
with Roman Marshavin, director for international cooperation of Russia's
Ministry of Energy (Minenergo) last January 24.
"Russia is a global leader when it comes to energy and has recently invested
more time and focus in developing its technological edge in the area of
alternative and sustainable sources of energy," said Sorreta.
The envoy suggested developing B2B linkages between Russian energy companies
and their Philippine counterparts so the Philippines could learn more about
Russia's energy production capabilities.
Marshavin meanwhile agreed to communicate with Russian companies on this
matter.
The Russian official also expressed interest in increasing current oil sales
to the Philippines, given the country's increasing energy needs.
Both sides agreed that increasing energy cooperation between the Philippines
and Russia is timely since the Philippines is exploring renewable and
alternative sources of energy to fuel its growing economy.
Both officials agreed that cooperation in the area of energy will be greatly
enhanced through an agreed framework. They expressed hope that such
framework could be finalized in time for President Rodrigo Duterte's visit
to Russia, which is slated on the first half of 2017.
Anna Smurigina, lead counsel of the Department of International Cooperation
joined Marshavin during the meeting. Officers of the Philippine Embassy in
Moscow, Jeffrey Valdez and Catherine Alpay, and interpreter Dmitry Khodzko
accompanied Sorreta.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://news.mb.com.ph/2017/01/28/ph-russia-ready-to-forge-energy-links/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Aramco snub puts Malaysia's Petronas in tight spot over RAPID project
Aramco snub puts Malaysia's Petronas in tight spot over RAPID project
Saudi Aramco's decision to shelve a plan to partner with Malaysia's state
oil company threatens the country's ambitious plans for an oil and gas
processing hub, which it may struggle to keep on course if it cannot find
another foreign investor.
The Saudi oil major suspended plans for a joint venture with Petroliam
Nasional Berhad, or Petronas, on the $27 billion project in the southern
Malaysian state of Johor due to concerns it would not yield high returns,
sources told Reuters this week.
Petronas - which has been hit hard by the slump in oil prices, cutting jobs,
capital expenditure and its contribution to government coffers - insists the
Refinery and Petrochemical Integrated Development (RAPID) project at
Pengerang, on Malaysia's southern tip, remains on track and will begin
operations as planned in 2019.
Analysts say the project is too politically important for Prime Minister
Najib Razak, mired in a corruption scandal involving state fund 1MDB, to be
scrapped or drastically pared back, but believe Petronas will need a
strategic investor to bring in funds and industry expertise.
"They may scale it down, but it's going to go ahead. It might get
staggered," said Subbu Bettadapura, senior director of energy, Asia Pacific,
at consultancy Frost and Sullivan.
"(Malaysia) would definitely try to channel funds into Pengerang because a
lot is riding on that. All the forces, political and industrial, would be
trying to make this a reality."
Industry analysts and consultants say Petronas is in talk with other foreign
investors.
Najib - who has said RAPID will create jobs, raise standards of living and
boost the country's economy - will want to ensure the project in electorally
key Johor state faces no further hurdles before the next national election
due by 2018.
With Western oil majors also hurting from a slump in oil prices, the most
likely solution for RAPID would be to recruit Chinese players to partner
with Petronas.
Some analysts say cash-rich Chinese refiners looking to expand into new
markets could be interested in RAPID.
Najib has been moving closer to Beijing diplomatically as the fallout from
the 1MDB scandal strains ties with the United States, returning from a
November state visit to China with about $34 billion in deals.
"Najib needs to ensure that RAPID can still go on," said Achmad Sukarsono,
analyst at political risk consultancy Eurasia Group. "Politically Najib
would want to involve China more."
PROJECT ECONOMICS
Others, however, caution that RAPID may not make sense for China, which
already has enough refineries to meet even its huge oil thirst. Chinese
energy firms, they say, would rather invest in more crude production.
A bigger concern is the economics of the project, which have been called
into question after sources said Aramco had concluded it would not generate
sufficient returns.
Petronas said in a statement on Thursday that RAPID - which includes a
300,000-barrel-per-day oil refinery producing gasoline and diesel - was
expected to deliver positive returns and value as planned.
The project, part of the huge Pengerang Integrated Petroleum Complex (PIPC),
was announced in 2011 when oil traded at $110 a barrel. Crude prices have
since halved.
Like neighboring Singapore, the Pengarang peninsula sits between the Malacca
Strait and the South China Sea, through which almost all the Middle East oil
and gas bound for northern Asia's industrial powerhouses of China, Japan and
South Korea is shipped.
If fully developed, PIPC would become one of Asia's biggest hubs for oil
storage, fuel refining and petrochemical production, as well as imports and
exports of liquefied natural gas (LNG).
Sushant Gupta, research director of refining and chemicals at energy
research and consulting firm Wood Mackenzie, predicted Asian markets will be
short of gasoline by 2020, meaning RAPID could hit the market at the right
time to benefit from improving refining margins.
"So it will be prudent for the sponsors to get the refinery ready on time to
capture the expected upswing in margins," Gupta said.
CANADIAN SACRIFICE?
The RAPID setback means Petronas now faces questions over two of its biggest
projects.
It is in the middle of making a final investment decision on a $27 billion
liquefied natural gas project in Canada that has faced several delays due to
environmental concerns.
The state-run company is also wrestling with lower profit and cash flow. In
early 2016, Petronas said it would cut spending by up to 50 billion ringgit
($11.27 billion) over the next four years.
With the questions hanging over RAPID, Petronas may be forced to re-think
the Canada project.
"RAPID will still come online, it's just there is a greater financial burden
on Petronas now," said Peter Lee, an oil and gas analyst at BMI Research.
"If anything were to give way or be delayed further, I would think it is the
Canada project first."
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.reuters.com/article/us-saudi-aramco-petronas-analysis-idUSKBN15B0
YW
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Saudi Aramco's decision to shelve a plan to partner with Malaysia's state
oil company threatens the country's ambitious plans for an oil and gas
processing hub, which it may struggle to keep on course if it cannot find
another foreign investor.
The Saudi oil major suspended plans for a joint venture with Petroliam
Nasional Berhad, or Petronas, on the $27 billion project in the southern
Malaysian state of Johor due to concerns it would not yield high returns,
sources told Reuters this week.
Petronas - which has been hit hard by the slump in oil prices, cutting jobs,
capital expenditure and its contribution to government coffers - insists the
Refinery and Petrochemical Integrated Development (RAPID) project at
Pengerang, on Malaysia's southern tip, remains on track and will begin
operations as planned in 2019.
Analysts say the project is too politically important for Prime Minister
Najib Razak, mired in a corruption scandal involving state fund 1MDB, to be
scrapped or drastically pared back, but believe Petronas will need a
strategic investor to bring in funds and industry expertise.
"They may scale it down, but it's going to go ahead. It might get
staggered," said Subbu Bettadapura, senior director of energy, Asia Pacific,
at consultancy Frost and Sullivan.
"(Malaysia) would definitely try to channel funds into Pengerang because a
lot is riding on that. All the forces, political and industrial, would be
trying to make this a reality."
Industry analysts and consultants say Petronas is in talk with other foreign
investors.
Najib - who has said RAPID will create jobs, raise standards of living and
boost the country's economy - will want to ensure the project in electorally
key Johor state faces no further hurdles before the next national election
due by 2018.
With Western oil majors also hurting from a slump in oil prices, the most
likely solution for RAPID would be to recruit Chinese players to partner
with Petronas.
Some analysts say cash-rich Chinese refiners looking to expand into new
markets could be interested in RAPID.
Najib has been moving closer to Beijing diplomatically as the fallout from
the 1MDB scandal strains ties with the United States, returning from a
November state visit to China with about $34 billion in deals.
"Najib needs to ensure that RAPID can still go on," said Achmad Sukarsono,
analyst at political risk consultancy Eurasia Group. "Politically Najib
would want to involve China more."
PROJECT ECONOMICS
Others, however, caution that RAPID may not make sense for China, which
already has enough refineries to meet even its huge oil thirst. Chinese
energy firms, they say, would rather invest in more crude production.
A bigger concern is the economics of the project, which have been called
into question after sources said Aramco had concluded it would not generate
sufficient returns.
Petronas said in a statement on Thursday that RAPID - which includes a
300,000-barrel-per-day oil refinery producing gasoline and diesel - was
expected to deliver positive returns and value as planned.
The project, part of the huge Pengerang Integrated Petroleum Complex (PIPC),
was announced in 2011 when oil traded at $110 a barrel. Crude prices have
since halved.
Like neighboring Singapore, the Pengarang peninsula sits between the Malacca
Strait and the South China Sea, through which almost all the Middle East oil
and gas bound for northern Asia's industrial powerhouses of China, Japan and
South Korea is shipped.
If fully developed, PIPC would become one of Asia's biggest hubs for oil
storage, fuel refining and petrochemical production, as well as imports and
exports of liquefied natural gas (LNG).
Sushant Gupta, research director of refining and chemicals at energy
research and consulting firm Wood Mackenzie, predicted Asian markets will be
short of gasoline by 2020, meaning RAPID could hit the market at the right
time to benefit from improving refining margins.
"So it will be prudent for the sponsors to get the refinery ready on time to
capture the expected upswing in margins," Gupta said.
CANADIAN SACRIFICE?
The RAPID setback means Petronas now faces questions over two of its biggest
projects.
It is in the middle of making a final investment decision on a $27 billion
liquefied natural gas project in Canada that has faced several delays due to
environmental concerns.
The state-run company is also wrestling with lower profit and cash flow. In
early 2016, Petronas said it would cut spending by up to 50 billion ringgit
($11.27 billion) over the next four years.
With the questions hanging over RAPID, Petronas may be forced to re-think
the Canada project.
"RAPID will still come online, it's just there is a greater financial burden
on Petronas now," said Peter Lee, an oil and gas analyst at BMI Research.
"If anything were to give way or be delayed further, I would think it is the
Canada project first."
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.reuters.com/article/us-saudi-aramco-petronas-analysis-idUSKBN15B0
YW
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Former OPEC member Indonesia makes geothermal move
Former OPEC member Indonesia makes geothermal move
French energy company ENGIE said it was making a debut in geothermal energy
with a commitment to help build a power plant in Indonesia.
The French company is part of a consortium tasked with building the Muara
Laboh geothermal plant in Indonesia, a former member of the Organization of
Petroleum Exporting Countries. The plant is backed by a $440 million finance
agreement coordinated in part by the Asian Development Bank and other
regional lenders.
ENGIE said it has the drilling and other subterranean experience necessary
to help build a facility that at 80 megawatts, will have the capacity to
power 120,000 average homes. The company said construction will take about
30 months.
ENGIE CEO Isabelle Kocher in a statement said her company has the technology
needed to help Indonesia "provide their population with efficient low-carbon
power generation sources."
Indonesia has about 40 percent of the world's total geothermal resources,
which ENGIE said could help the country with its goal of reducing carbon
emissions by 29 percent by 2030.
"This project demonstrates Indonesia's commitment to meet increasing demand
for electricity and support the development of renewable energy," Yuichiro
Yoi, an investment at the ADB, said.
ENGIE touted geothermal energy as a unique source of low-carbon power. The
International Energy Agency said it expects the global footprint for
geothermal energy to rise from just under 1 gigawatt in 2014 to move than 16
GW by 2020.
A net oil importer, Indonesia was suspended from OPEC in November, less than
a year after rejoining the production group. The move toward geothermal
follows a December loan of $400 million from the ADB targeting the expansion
of the country's Tangguh liquefied natural gas facility so the country was
in a better position to meet its own energy needs.
The country exports about half its natural gas and remains one of the
largest exporters of LNG in the world.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.upi.com/Former-OPEC-member-Indonesia-makes-geothermal-move/747148
5512163/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
French energy company ENGIE said it was making a debut in geothermal energy
with a commitment to help build a power plant in Indonesia.
The French company is part of a consortium tasked with building the Muara
Laboh geothermal plant in Indonesia, a former member of the Organization of
Petroleum Exporting Countries. The plant is backed by a $440 million finance
agreement coordinated in part by the Asian Development Bank and other
regional lenders.
ENGIE said it has the drilling and other subterranean experience necessary
to help build a facility that at 80 megawatts, will have the capacity to
power 120,000 average homes. The company said construction will take about
30 months.
ENGIE CEO Isabelle Kocher in a statement said her company has the technology
needed to help Indonesia "provide their population with efficient low-carbon
power generation sources."
Indonesia has about 40 percent of the world's total geothermal resources,
which ENGIE said could help the country with its goal of reducing carbon
emissions by 29 percent by 2030.
"This project demonstrates Indonesia's commitment to meet increasing demand
for electricity and support the development of renewable energy," Yuichiro
Yoi, an investment at the ADB, said.
ENGIE touted geothermal energy as a unique source of low-carbon power. The
International Energy Agency said it expects the global footprint for
geothermal energy to rise from just under 1 gigawatt in 2014 to move than 16
GW by 2020.
A net oil importer, Indonesia was suspended from OPEC in November, less than
a year after rejoining the production group. The move toward geothermal
follows a December loan of $400 million from the ADB targeting the expansion
of the country's Tangguh liquefied natural gas facility so the country was
in a better position to meet its own energy needs.
The country exports about half its natural gas and remains one of the
largest exporters of LNG in the world.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.upi.com/Former-OPEC-member-Indonesia-makes-geothermal-move/747148
5512163/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Philippines pushes for sustainable energy at UN meet
Philippines pushes for sustainable energy at UN meet
The Philippines expressed full support for the United Nation's energy
thrusts that run parallel with the country's own agenda such as ensuring
energy security, promoting a low carbon future, achieving total
electrification and improving energy efficiency.
In a statement, the Department of Energy said there is a need to strengthen
the resiliency of energy infrastructure in the Asia-Pacific region,
stressing it as a "key priority area" for regional cooperation especially in
the face of the intensifying effects of climate change.
"The Philippines would like to propose an emergent priority initiative to
develop and strengthen energy infrastructure resiliency in the Asia and the
Pacific region," Energy Undersecretary Jesus Cristino Posadas said.
He made these comments during the recent meeting of the newly established
Committee on Energy of the United Nations Economic and Social Commission for
Asia and the Pacific (Unescap) held recently where he represented Energy
Secretary Alfonso Cusi of the Department of Energy (DOE) and led Philippine
energy sector delegates.
Posadas told the meeting at the United Nations Conference Center (UNCC) in
Bangkok, Thailand that the Philippines also backs the restructuring of the
commission including the establishment of an energy committee.
The DOE official led high-ranking delegates as chair and topic discussions
moderator of the session on "Energy Transition and Achieving Sustainable
Development Goals."
He emphasized the need for regional energy cooperation and interconnectivity
to achieve the sustainable development goal of providing affordable,
reliable, sustainable and clean energy for the power-consuming public.
The Philippine initiative pushed by Posadas was supported by other
international contingents and was positively acknowledged by the energy
committee.
On the subject of power infrastructure connectivity in the Asia-Pacific
region, Posadas clarified that "we do not refer only to the physical power
transmission network or the gas or oil pipeline, but also the information
and communications network, both its software and hardware."
"This is an enabler of the development of electricity spot markets and smart
communications technology which makes possible the two-way flow of
electricity," he added.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://business.inquirer.net/223587/ph-pushes-sustainable-energy-un-meet
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
The Philippines expressed full support for the United Nation's energy
thrusts that run parallel with the country's own agenda such as ensuring
energy security, promoting a low carbon future, achieving total
electrification and improving energy efficiency.
In a statement, the Department of Energy said there is a need to strengthen
the resiliency of energy infrastructure in the Asia-Pacific region,
stressing it as a "key priority area" for regional cooperation especially in
the face of the intensifying effects of climate change.
"The Philippines would like to propose an emergent priority initiative to
develop and strengthen energy infrastructure resiliency in the Asia and the
Pacific region," Energy Undersecretary Jesus Cristino Posadas said.
He made these comments during the recent meeting of the newly established
Committee on Energy of the United Nations Economic and Social Commission for
Asia and the Pacific (Unescap) held recently where he represented Energy
Secretary Alfonso Cusi of the Department of Energy (DOE) and led Philippine
energy sector delegates.
Posadas told the meeting at the United Nations Conference Center (UNCC) in
Bangkok, Thailand that the Philippines also backs the restructuring of the
commission including the establishment of an energy committee.
The DOE official led high-ranking delegates as chair and topic discussions
moderator of the session on "Energy Transition and Achieving Sustainable
Development Goals."
He emphasized the need for regional energy cooperation and interconnectivity
to achieve the sustainable development goal of providing affordable,
reliable, sustainable and clean energy for the power-consuming public.
The Philippine initiative pushed by Posadas was supported by other
international contingents and was positively acknowledged by the energy
committee.
On the subject of power infrastructure connectivity in the Asia-Pacific
region, Posadas clarified that "we do not refer only to the physical power
transmission network or the gas or oil pipeline, but also the information
and communications network, both its software and hardware."
"This is an enabler of the development of electricity spot markets and smart
communications technology which makes possible the two-way flow of
electricity," he added.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://business.inquirer.net/223587/ph-pushes-sustainable-energy-un-meet
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Thailand: EGAT selects builders for 1.2 GW South Bangkok CCGT project
Thailand: EGAT selects builders for 1.2 GW South Bangkok CCGT project
Thailand state-owned utility Electricity Generating Authority of Thailand
(EGAT) has awarded a consortium of Siemens and Marubeni a US$550m turnkey
order for the delivery of the South Bangkok CCGT power project in Thailand.
The project will feature two units in a single-shaft configuration , two
SGT5-8000H gas turbines, two SGen5-3000W generators and two steam turbines
of model SST5-5000. The power plant will have a total capacity of 1,200 MW;
commissioning is scheduled in 2019.
In the last ten years, Siemens and Marubeni Corporation already have built
731 MW Chana-1, 710 MW Bang Pakong 5, 800 MW Chana-2 and 750 MW Wang No- 4
CCGT projects for EGAT.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.enerdata.net/enerdatauk/press-and-publication/energy-news-001/ega
t-selects-builders-12-gw-south-bangkok-ccgt-project-thailand_39692.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Thailand state-owned utility Electricity Generating Authority of Thailand
(EGAT) has awarded a consortium of Siemens and Marubeni a US$550m turnkey
order for the delivery of the South Bangkok CCGT power project in Thailand.
The project will feature two units in a single-shaft configuration , two
SGT5-8000H gas turbines, two SGen5-3000W generators and two steam turbines
of model SST5-5000. The power plant will have a total capacity of 1,200 MW;
commissioning is scheduled in 2019.
In the last ten years, Siemens and Marubeni Corporation already have built
731 MW Chana-1, 710 MW Bang Pakong 5, 800 MW Chana-2 and 750 MW Wang No- 4
CCGT projects for EGAT.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.enerdata.net/enerdatauk/press-and-publication/energy-news-001/ega
t-selects-builders-12-gw-south-bangkok-ccgt-project-thailand_39692.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Thailand: PTT furthers transparency
Thailand: PTT furthers transparency
National oil and gas firm PTT Plc will allow the National Anti-Corruption
Commission (NACC) to examine the company's internal investigation into the
latest Rolls-Royce bribery case to promote transparency, says president and
chief executive Tevin Vongvanich.
The move is the latest response to the US Justice Department's allegations
that PTT officials accepted bribes to buy Rolls-Royce engines.
PTT and Thai Airways International were both mentioned in regard to the case
last week.
PTT has set up an internal investigative committee consisting of company
members who have never been involved in procurement or auction processes in
order to ensure transparency.
The results of the investigation will be finalised within a month.
Mr Tevin said the PTT board has suggested the company allow the NACC to join
the investigation and take a role in the company's procurement to contribute
to a more transparent process.
Furthermore, middlemen or sales representatives and all agents will be
registered with the company before joining the procurement process, allowing
actions to be traced accurately.
Mr Tevin said the new measures and regulations are expected to be finalised
soon and will be applied at the auction of PTT's fifth gas pipeline
development project, which is due to open for bidding this year. The project
is worth an estimated 92 billion baht.
The gas pipeline project was designed to link gas supply between the eastern
and western regions and help avert disruptions at gas blocks in the Gulf of
Thailand while maintenance is taking place.
The development of the second unit of the liquefied natural gas (LNG)
receiving terminal, worth 23 billion baht, is due to be auctioned in the
second half of the year.
PTT is one of 50 firms that joined the Anti-Corruption Organization of
Thailand (ACT) in June 2011.
Last year, PTT applied ACT's model of transparent procurement by inviting
members selected by ACT to monitor the auction process for gas pipeline
compressor units in Ayutthaya's Wang Noi district.
According to PTT's report, over the next five years, PTT and its
subsidiaries will set aside nearly 900 billion baht for capital expenditure
towards business expansion.
Two new units, PTT Oil and Retail Co and Global Green Plc, are due to be
spun off for listing on the Stock Exchange of Thailand.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.bangkokpost.com/business/news/1188329/ptt-furthers-transparency
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
National oil and gas firm PTT Plc will allow the National Anti-Corruption
Commission (NACC) to examine the company's internal investigation into the
latest Rolls-Royce bribery case to promote transparency, says president and
chief executive Tevin Vongvanich.
The move is the latest response to the US Justice Department's allegations
that PTT officials accepted bribes to buy Rolls-Royce engines.
PTT and Thai Airways International were both mentioned in regard to the case
last week.
PTT has set up an internal investigative committee consisting of company
members who have never been involved in procurement or auction processes in
order to ensure transparency.
The results of the investigation will be finalised within a month.
Mr Tevin said the PTT board has suggested the company allow the NACC to join
the investigation and take a role in the company's procurement to contribute
to a more transparent process.
Furthermore, middlemen or sales representatives and all agents will be
registered with the company before joining the procurement process, allowing
actions to be traced accurately.
Mr Tevin said the new measures and regulations are expected to be finalised
soon and will be applied at the auction of PTT's fifth gas pipeline
development project, which is due to open for bidding this year. The project
is worth an estimated 92 billion baht.
The gas pipeline project was designed to link gas supply between the eastern
and western regions and help avert disruptions at gas blocks in the Gulf of
Thailand while maintenance is taking place.
The development of the second unit of the liquefied natural gas (LNG)
receiving terminal, worth 23 billion baht, is due to be auctioned in the
second half of the year.
PTT is one of 50 firms that joined the Anti-Corruption Organization of
Thailand (ACT) in June 2011.
Last year, PTT applied ACT's model of transparent procurement by inviting
members selected by ACT to monitor the auction process for gas pipeline
compressor units in Ayutthaya's Wang Noi district.
According to PTT's report, over the next five years, PTT and its
subsidiaries will set aside nearly 900 billion baht for capital expenditure
towards business expansion.
Two new units, PTT Oil and Retail Co and Global Green Plc, are due to be
spun off for listing on the Stock Exchange of Thailand.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.bangkokpost.com/business/news/1188329/ptt-furthers-transparency
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Friday, January 27, 2017
Thailand announces $11.3 billion 10-year plan to build sugarcane and cassava bioeconomy
Thailand announces $11.3 billion 10-year plan to build sugarcane and cassava
bioeconomy
This week we reported from Thailand:
"The government launched its 10-year plan to build a bioeconomy hub for the
region with private and public sector investment expected to reach $11.3
billion as it focuses on sugarcane and cassava to feed modern biorefineries
that will produce biofuels and biochemical as well as biopharmaceuticals,
"future" food and "future" feed. The first $1.44 billion phase of investment
is set for 2017/18, first in the eastern province of Rayong and later into
Khon Kaen."
Whoa, there. $11 billion? Time to move to Thailand, everyone. While you're
packing, we'll analyze the news.
Letter from Thailand
Last May, we reported in "Letter from Thailand" on the state of activities -
most importantly, columnist John Diecker observed:
The country will gradually begin phasing out its E10 gasoline blend in favor
of E20 by offering increasing levels of price support to the higher ethanol
content fuel. As a result of this year's drought and corresponding reduction
in sugar production, the amount of ethanol produced from cassava instead of
molasses will likely rise to around 40% compared to the more typical 30%.
B10 biodiesel is expected to be commercially available by 2018. The use of
B10 will then be mandated for government-owned vehicles while some type of
tax incentives will probably be made available to incentivize private users.
B10 is scheduled to be mandated in all diesel vehicles by 2026 at which time
the government will begin promoting B20.
The struggle for feedstock
In the past 60 days with a late start to the sugarcane season, it has less
been about expanding mandates as much as scrambling for feedstock to meet
the current ones. We reported last month that In Thailand, 4 million metric
tons of spoiled rice is set for use as feedstock for ethanol production to
help fill the gap in supplies required to meet current blending mandates.
Meanwhile, there have been imports of cassava, and trouble with those
imports. As we reported in August, Cambodia's cassava farmers are looking at
alternative cash crops like corn and soy in an effort to reduce reliance on
Thailand's manipulation of prices and markets for the crop. The country
doesn't have processing facilities for ethanol or starch, so it is exported
to Thailand for further processing but since the military junta took over
the country in 2014, it manipulates the prices by closing unofficial border
checkpoints when it wants to reduce the prices. Cassava only fetches around
10 cents per kilo.
What about low oil prices?
Thailand looked long and hard at the state of oil prices, in 2015, and the
feasibility of a "build the bioeconomy" push at a time of low fossil demand
and abundant supply. We reported in April 2015 that "the energy ministry is
reviewing its plans to promote ethanol consumption in light of lower petrol
prices. The policy had been to consume 9 billion liters annually by 2021, up
from 3.5 billion liters now, but cheaper gasoline will make the aims
difficult to achieve. Promoting E85 has been ruled out because it would
require subsidies, but E20 may still be an option."
And E20 is the chosen direction. As we reported in March, the government is
phasing out lower 10% ethanol blend fuels by 2018 and 2027, instead bringing
in E20 and E85. Doing so will triple ethanol demand to more than 25 million
liters per day. To boost demand for the higher ethanol blends, excise taxes
will be levied on the lower blends to help counteract cheaper fossil-based
fuels. All fuels except E20 and E85 include an oil fund levy that is meant
to help subsidize higher biofuel prices to be more competitive at the pump.
25 million liters per day
Per year, the demand adds up to 9.1 billion liters per year, or 2.4 million
gallons. Now, Brazil has been at the apex of sugarcane efficiency, yielding
something like 74 liters per ton of feedstock. For Thailand's E20 goals,
think 122 million tons of feedstock and something like 1.66 million hectares
of land. But that's based on Brazilian yields - Thailand's has been lower,
something like 40-60 tons of feedstock per hectare depending on season.
And where is Thailand right now? According to this USDA Foreign Agriculture
Service report, the country produced 100 million tons of feedstock in 204/15
- that was a down year due to drought, and normal levels would be around 105
million tons.
So - even with the use of cassava for roughly 30% of the country's biofuels
feedstock needs, we can see that there's a substantial acreage increase in
the wings for Thailand with this switch to E20.
Hence, the build-up will focus not only on ethanol production capacity, but
also on adding acreage. It's all at the expense of imported oil, so good for
the Thai economy and trade balance - and the blend rate of E20 is aimed at
avoiding a cost crunch for drivers.
Beyond fuels, what about chemicals?
Overall, Malaysia has been more aggressive on developing technology and
projects related to the expanded advanced bioeconomy, and there's been
higher activity levels in Indonesia too. Both of them are looking at palm
waste feedstocks, as well as glycerine left over from palm oil biodiesel
production.
But we reported in August 2014 that NatureWorks Asia Pacific, a joint
venture between PTT Global Chemical (PTTGC) and based Cargill, had requested
the government to provide $78.2 million in soft loans to help jumpstart the
bio-plastics industry in the country. Those loans would then spur 40 times
the investment from the private sector within the next five to 10 years, 75%
of that in upstream production projects.
All that bagasse
One interesting area of activity may be the question of what to do with all
the sugarcane bagasse. One third of the tonnage that comes in to a refinery
is bagasse. Traditionally, combusted for power - now, an opportunity for
cellulosic ethanol as well as renewable chemicals that offer far higher
price values. So, think opportunity.
The Bottom Line
The development announcement, in the long-term, could well set up Thailand
with a feedstock infrastructure that is the envy of the world, and leads to
a flock of technologies heading to southeast Asia in search of commercial
projects. After all, with cassava priced at 10 cents per kilo - that's 15%
under the price for, say, corn sugars even when corn is trading at $3.00 per
bushel.
For the near-term, excepting a rise in the availability of bagasse, we'd
think that Thailand will simply be assembling feedstock and production
capacity to meet it's E20 mandate. That's be a lot of construction and
planting, and for the immediate now that is likely to be the focus - more,
more, more of the same.
But keep an eye on this market as the opportunities develop. $10B is a
gigantic investment by anyone's standards - and another sign that, given the
EU's about-face from first gen biofuels, struggling economic times in Brazil
and an uncertain political climate in the US, Asia is going to be the major
global focus of activity for biofuels expansion over the next five years.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.biofuelsdigest.com/bdigest/2017/01/25/thailand-announces-11-3-bil
lion-10-year-plan-to-build-sugarcane-and-cassava-bioeconomy-2/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
bioeconomy
This week we reported from Thailand:
"The government launched its 10-year plan to build a bioeconomy hub for the
region with private and public sector investment expected to reach $11.3
billion as it focuses on sugarcane and cassava to feed modern biorefineries
that will produce biofuels and biochemical as well as biopharmaceuticals,
"future" food and "future" feed. The first $1.44 billion phase of investment
is set for 2017/18, first in the eastern province of Rayong and later into
Khon Kaen."
Whoa, there. $11 billion? Time to move to Thailand, everyone. While you're
packing, we'll analyze the news.
Letter from Thailand
Last May, we reported in "Letter from Thailand" on the state of activities -
most importantly, columnist John Diecker observed:
The country will gradually begin phasing out its E10 gasoline blend in favor
of E20 by offering increasing levels of price support to the higher ethanol
content fuel. As a result of this year's drought and corresponding reduction
in sugar production, the amount of ethanol produced from cassava instead of
molasses will likely rise to around 40% compared to the more typical 30%.
B10 biodiesel is expected to be commercially available by 2018. The use of
B10 will then be mandated for government-owned vehicles while some type of
tax incentives will probably be made available to incentivize private users.
B10 is scheduled to be mandated in all diesel vehicles by 2026 at which time
the government will begin promoting B20.
The struggle for feedstock
In the past 60 days with a late start to the sugarcane season, it has less
been about expanding mandates as much as scrambling for feedstock to meet
the current ones. We reported last month that In Thailand, 4 million metric
tons of spoiled rice is set for use as feedstock for ethanol production to
help fill the gap in supplies required to meet current blending mandates.
Meanwhile, there have been imports of cassava, and trouble with those
imports. As we reported in August, Cambodia's cassava farmers are looking at
alternative cash crops like corn and soy in an effort to reduce reliance on
Thailand's manipulation of prices and markets for the crop. The country
doesn't have processing facilities for ethanol or starch, so it is exported
to Thailand for further processing but since the military junta took over
the country in 2014, it manipulates the prices by closing unofficial border
checkpoints when it wants to reduce the prices. Cassava only fetches around
10 cents per kilo.
What about low oil prices?
Thailand looked long and hard at the state of oil prices, in 2015, and the
feasibility of a "build the bioeconomy" push at a time of low fossil demand
and abundant supply. We reported in April 2015 that "the energy ministry is
reviewing its plans to promote ethanol consumption in light of lower petrol
prices. The policy had been to consume 9 billion liters annually by 2021, up
from 3.5 billion liters now, but cheaper gasoline will make the aims
difficult to achieve. Promoting E85 has been ruled out because it would
require subsidies, but E20 may still be an option."
And E20 is the chosen direction. As we reported in March, the government is
phasing out lower 10% ethanol blend fuels by 2018 and 2027, instead bringing
in E20 and E85. Doing so will triple ethanol demand to more than 25 million
liters per day. To boost demand for the higher ethanol blends, excise taxes
will be levied on the lower blends to help counteract cheaper fossil-based
fuels. All fuels except E20 and E85 include an oil fund levy that is meant
to help subsidize higher biofuel prices to be more competitive at the pump.
25 million liters per day
Per year, the demand adds up to 9.1 billion liters per year, or 2.4 million
gallons. Now, Brazil has been at the apex of sugarcane efficiency, yielding
something like 74 liters per ton of feedstock. For Thailand's E20 goals,
think 122 million tons of feedstock and something like 1.66 million hectares
of land. But that's based on Brazilian yields - Thailand's has been lower,
something like 40-60 tons of feedstock per hectare depending on season.
And where is Thailand right now? According to this USDA Foreign Agriculture
Service report, the country produced 100 million tons of feedstock in 204/15
- that was a down year due to drought, and normal levels would be around 105
million tons.
So - even with the use of cassava for roughly 30% of the country's biofuels
feedstock needs, we can see that there's a substantial acreage increase in
the wings for Thailand with this switch to E20.
Hence, the build-up will focus not only on ethanol production capacity, but
also on adding acreage. It's all at the expense of imported oil, so good for
the Thai economy and trade balance - and the blend rate of E20 is aimed at
avoiding a cost crunch for drivers.
Beyond fuels, what about chemicals?
Overall, Malaysia has been more aggressive on developing technology and
projects related to the expanded advanced bioeconomy, and there's been
higher activity levels in Indonesia too. Both of them are looking at palm
waste feedstocks, as well as glycerine left over from palm oil biodiesel
production.
But we reported in August 2014 that NatureWorks Asia Pacific, a joint
venture between PTT Global Chemical (PTTGC) and based Cargill, had requested
the government to provide $78.2 million in soft loans to help jumpstart the
bio-plastics industry in the country. Those loans would then spur 40 times
the investment from the private sector within the next five to 10 years, 75%
of that in upstream production projects.
All that bagasse
One interesting area of activity may be the question of what to do with all
the sugarcane bagasse. One third of the tonnage that comes in to a refinery
is bagasse. Traditionally, combusted for power - now, an opportunity for
cellulosic ethanol as well as renewable chemicals that offer far higher
price values. So, think opportunity.
The Bottom Line
The development announcement, in the long-term, could well set up Thailand
with a feedstock infrastructure that is the envy of the world, and leads to
a flock of technologies heading to southeast Asia in search of commercial
projects. After all, with cassava priced at 10 cents per kilo - that's 15%
under the price for, say, corn sugars even when corn is trading at $3.00 per
bushel.
For the near-term, excepting a rise in the availability of bagasse, we'd
think that Thailand will simply be assembling feedstock and production
capacity to meet it's E20 mandate. That's be a lot of construction and
planting, and for the immediate now that is likely to be the focus - more,
more, more of the same.
But keep an eye on this market as the opportunities develop. $10B is a
gigantic investment by anyone's standards - and another sign that, given the
EU's about-face from first gen biofuels, struggling economic times in Brazil
and an uncertain political climate in the US, Asia is going to be the major
global focus of activity for biofuels expansion over the next five years.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.biofuelsdigest.com/bdigest/2017/01/25/thailand-announces-11-3-bil
lion-10-year-plan-to-build-sugarcane-and-cassava-bioeconomy-2/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Thailand: Plans for waste power plants raise ire of locals, university
Thailand: Plans for waste power plants raise ire of locals, university
A local group protesting against a waste power plant project in Pathum Thani
has vowed to apply more pressure after the Energy Regulatory Commission of
Thailand shrugged off their demands to scrap the project.
Residents of Chiang Rak Yai community in Pathum Thani's Sam Khok district,
gathered at the Energy Regulatory Commission of Thailand's head office on
Wednesday to express their displeasure.
"It is clear the authority will move the project forward without listening
to us. We will not stop our protests and will work with our allies,
including Thammasat University, to stop it," Thaweesak In-Kwang, a leader of
the group, said.
The government has promoted the power plant, saying it hopes unwanted waste
in the area can be turned into energy.
Residents oppose the project, however, as they are worried a large volume of
garbage will be dumped nearby their houses.
Chiang Rak Yai community is one of them. They protested against three
proposed power plants with a capacity of 25 megawatts covering an area of
140 rai, which will collect all garbage from the province to turn into
energy.
The locals in this province adjacent to Bangkok fear their farming areas
will be affected as a result of polluted underground water from the waste.
They are also worried raw water sources for tap water production might be
affected.
Thammasat University, which has its Rangsit campus less than two kilometres
away from the site, also expressed its concern.
Mr Thaweesak said he was disappointed with the commission's response.
It said the project has been approved by the local administrative
organisation and the provincial authorities so it can go ahead.
He also quoted the authority as saying the company which will run the
project would have the direct responsibility of dealing with the local
concerns about the environment and health impacts.
The locals said more than 20,000 people living in six tambon near the plant
will be affected by the project. Meanwhile, the Energy Regulatory Commission
is in the process of approving the waste power plant's licence.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.bangkokpost.com/news/general/1187717/plans-for-waste-power-plants
-raise-ire-of-locals-university
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
A local group protesting against a waste power plant project in Pathum Thani
has vowed to apply more pressure after the Energy Regulatory Commission of
Thailand shrugged off their demands to scrap the project.
Residents of Chiang Rak Yai community in Pathum Thani's Sam Khok district,
gathered at the Energy Regulatory Commission of Thailand's head office on
Wednesday to express their displeasure.
"It is clear the authority will move the project forward without listening
to us. We will not stop our protests and will work with our allies,
including Thammasat University, to stop it," Thaweesak In-Kwang, a leader of
the group, said.
The government has promoted the power plant, saying it hopes unwanted waste
in the area can be turned into energy.
Residents oppose the project, however, as they are worried a large volume of
garbage will be dumped nearby their houses.
Chiang Rak Yai community is one of them. They protested against three
proposed power plants with a capacity of 25 megawatts covering an area of
140 rai, which will collect all garbage from the province to turn into
energy.
The locals in this province adjacent to Bangkok fear their farming areas
will be affected as a result of polluted underground water from the waste.
They are also worried raw water sources for tap water production might be
affected.
Thammasat University, which has its Rangsit campus less than two kilometres
away from the site, also expressed its concern.
Mr Thaweesak said he was disappointed with the commission's response.
It said the project has been approved by the local administrative
organisation and the provincial authorities so it can go ahead.
He also quoted the authority as saying the company which will run the
project would have the direct responsibility of dealing with the local
concerns about the environment and health impacts.
The locals said more than 20,000 people living in six tambon near the plant
will be affected by the project. Meanwhile, the Energy Regulatory Commission
is in the process of approving the waste power plant's licence.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.bangkokpost.com/news/general/1187717/plans-for-waste-power-plants
-raise-ire-of-locals-university
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Cambodia: Solar pegged for urban expansion
Cambodia: Solar pegged for urban expansion
Solar power has always been an easier sell in sun-drenched rural Cambodia,
where millions of villagers live beyond the reach of electrical grids and
those with connections face tariffs up to a staggering 3,000-riel per
kilowatt hour.
Declining prices of solar technology and a growing array of instalment plans
geared for low-income families have convinced an increasing number of
villagers to harness the sun to power their homes.
But convincing Cambodia's city-dwellers to invest in solar power is a much
steeper challenge, though one that solar energy provider Kamworks Utility
says it is now ready to tackle.
Ken Bradley, the company's director of business development, said yesterday
that after years of routine installations in rural areas, Kamworks is
considering opportunities to deploy solar technologies in Phnom Penh's urban
jungle. He said the initial focus would likely be on new residential
developments, such as apartment buildings and condominiums.
"In my view, the sweet spot is to integrate solar panels into new homes
currently being developed," he said. "The thing with solar is if you include
it as part of the upfront costs of building a house, it does not seem so
expensive."
The Dutch-founded solar company has already tested the market, inking a deal
with a local property management firm last October to install and maintain
photovoltaic (PV) solar panels on the roof of Silvertown Metropolitan, a
110-unit serviced apartment tower in Boueng Keng Kang 1.
The solar panel array is said to generate enough electricity to cover about
12 percent of the building's energy footprint, cutting its power costs.
Bradley said putting solar panels on residential projects, especially ones
that have constant energy needs, made for a sound investment and significant
energy cost reductions. The return on investment period was an impressive
five to seven years, while the PV panels carry a 25- to 30-year warranty.
"It is definitely a market segment that keeps drawing interest," he said. "I
think that multi-unit buildings have a lot more appeal right now because
there is a lot of distributed demand and it reduces their operating costs."
Implementing a national net metering system that would see customers able to
sell excess energy production to the grid would go a long way to promoting
solar home systems, he added.
"In an ideal world we would have a net metering policy in place to pay
customers for extra energy production," he said.
Ngeth Chou, founding chairman of the Solar Energy Association of Cambodia,
also emphasised the necessity of net metering to fully develop the potential
of solar in Cambodia. Yet even without it, he saw opportunities in the urban
residential market.
"The market has potential as [solar panels] would basically reduce
electricity bills for homes," he said. "In Phnom Penh, everyone has access
to the grid, but solar could still become popular." But for that to happen,
the city's residents would need to better understand the cost benefits of
solar power, he said.
Khiev Thida, manager of local company Solar Green Energy, said that the vast
majority of her installations were in the provinces where no grid
connections are available. She said cost was the primary factor in people's
decision to choose solar.
"In Cambodia, people would turn to solar because they are thinking mainly
about costs, whereas other countries people often focus more on
environmental benefits," she explained.
Thida added, however, that solar technology still had some hurdles to
overcome, particularly that energy availability is at its lowest during peak
usage periods.
"In homes right now it might not be very efficient because households use
more electricity at night compared to daytime," she said.
Bradley, however, said with advances in battery storage technology he
expects solar to become an increasingly attractive option for individual
homeowners.
"Eventually storage is going to make more and more sense, but we are at
least three or four years away from that right now," he said.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.phnompenhpost.com/business/solar-pegged-urban-expansion?utm_sourc
e=Phnompenh+Post+Main+List&utm_campaign=514ee3948b-20170127_PPPost&utm_mediu
m=email&utm_term=0_690109a91f-514ee3948b-45529029
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Solar power has always been an easier sell in sun-drenched rural Cambodia,
where millions of villagers live beyond the reach of electrical grids and
those with connections face tariffs up to a staggering 3,000-riel per
kilowatt hour.
Declining prices of solar technology and a growing array of instalment plans
geared for low-income families have convinced an increasing number of
villagers to harness the sun to power their homes.
But convincing Cambodia's city-dwellers to invest in solar power is a much
steeper challenge, though one that solar energy provider Kamworks Utility
says it is now ready to tackle.
Ken Bradley, the company's director of business development, said yesterday
that after years of routine installations in rural areas, Kamworks is
considering opportunities to deploy solar technologies in Phnom Penh's urban
jungle. He said the initial focus would likely be on new residential
developments, such as apartment buildings and condominiums.
"In my view, the sweet spot is to integrate solar panels into new homes
currently being developed," he said. "The thing with solar is if you include
it as part of the upfront costs of building a house, it does not seem so
expensive."
The Dutch-founded solar company has already tested the market, inking a deal
with a local property management firm last October to install and maintain
photovoltaic (PV) solar panels on the roof of Silvertown Metropolitan, a
110-unit serviced apartment tower in Boueng Keng Kang 1.
The solar panel array is said to generate enough electricity to cover about
12 percent of the building's energy footprint, cutting its power costs.
Bradley said putting solar panels on residential projects, especially ones
that have constant energy needs, made for a sound investment and significant
energy cost reductions. The return on investment period was an impressive
five to seven years, while the PV panels carry a 25- to 30-year warranty.
"It is definitely a market segment that keeps drawing interest," he said. "I
think that multi-unit buildings have a lot more appeal right now because
there is a lot of distributed demand and it reduces their operating costs."
Implementing a national net metering system that would see customers able to
sell excess energy production to the grid would go a long way to promoting
solar home systems, he added.
"In an ideal world we would have a net metering policy in place to pay
customers for extra energy production," he said.
Ngeth Chou, founding chairman of the Solar Energy Association of Cambodia,
also emphasised the necessity of net metering to fully develop the potential
of solar in Cambodia. Yet even without it, he saw opportunities in the urban
residential market.
"The market has potential as [solar panels] would basically reduce
electricity bills for homes," he said. "In Phnom Penh, everyone has access
to the grid, but solar could still become popular." But for that to happen,
the city's residents would need to better understand the cost benefits of
solar power, he said.
Khiev Thida, manager of local company Solar Green Energy, said that the vast
majority of her installations were in the provinces where no grid
connections are available. She said cost was the primary factor in people's
decision to choose solar.
"In Cambodia, people would turn to solar because they are thinking mainly
about costs, whereas other countries people often focus more on
environmental benefits," she explained.
Thida added, however, that solar technology still had some hurdles to
overcome, particularly that energy availability is at its lowest during peak
usage periods.
"In homes right now it might not be very efficient because households use
more electricity at night compared to daytime," she said.
Bradley, however, said with advances in battery storage technology he
expects solar to become an increasingly attractive option for individual
homeowners.
"Eventually storage is going to make more and more sense, but we are at
least three or four years away from that right now," he said.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.phnompenhpost.com/business/solar-pegged-urban-expansion?utm_sourc
e=Phnompenh+Post+Main+List&utm_campaign=514ee3948b-20170127_PPPost&utm_mediu
m=email&utm_term=0_690109a91f-514ee3948b-45529029
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Malaysia: Petronas says RAPID project on track for 2019 start-up
Malaysia: Petronas says RAPID project on track for 2019 start-up
Malaysia's state oil firm Petroliam Nasional Berhad said yesterday its new
US$27 billion (RM119.5 billion) refining and petrochemical complex project
in the South-east Asian country is on track for start-up in 2019.
Sources familiar with the matter told Reuters on Wednesday that Saudi Aramco
had shelved its plans for a partnership with the company, known as Petronas,
on the Refinery and Petrochemical Integrated Development (RAPID) project,
raising questions about its future.
RAPID, located within the Pengerang Integrated Complex in the southern
Malaysian state of Johor, is designed to have a 300,000-barrel-per-day oil
refinery and a petrochemical complex with a production capacity of 7.7
million metric tonnes.
Petronas said in a statement late yesterday the development had reached the
54 per cent progress mark to date and was expected to generate positive
returns for the company.
"Petronas would like clarify that its Pengerang Integrated Complex project
will continue to be the focus of its downstream growth agenda in the coming
years," the company said in a statement emailed to Reuters.
"Despite the current slowdown in the world economy and depressed oil prices,
the... investment remains a priority for Petronas."
The statement made no reference to Aramco, Saudi Arabia's state-run oil and
gas giant.
Aramco's move to suspend plans for the Malaysian venture comes at a time
when Petronas is struggling with the slump in oil prices.
In early 2016 Petronas said it would cut spending by up to RM50 billion over
the next four years. It has also slashed the dividend it pays to the
Malaysian government.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.themalaymailonline.com/malaysia/article/petronas-says-rapid-proje
ct-on-track-for-2019-start-up
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Malaysia's state oil firm Petroliam Nasional Berhad said yesterday its new
US$27 billion (RM119.5 billion) refining and petrochemical complex project
in the South-east Asian country is on track for start-up in 2019.
Sources familiar with the matter told Reuters on Wednesday that Saudi Aramco
had shelved its plans for a partnership with the company, known as Petronas,
on the Refinery and Petrochemical Integrated Development (RAPID) project,
raising questions about its future.
RAPID, located within the Pengerang Integrated Complex in the southern
Malaysian state of Johor, is designed to have a 300,000-barrel-per-day oil
refinery and a petrochemical complex with a production capacity of 7.7
million metric tonnes.
Petronas said in a statement late yesterday the development had reached the
54 per cent progress mark to date and was expected to generate positive
returns for the company.
"Petronas would like clarify that its Pengerang Integrated Complex project
will continue to be the focus of its downstream growth agenda in the coming
years," the company said in a statement emailed to Reuters.
"Despite the current slowdown in the world economy and depressed oil prices,
the... investment remains a priority for Petronas."
The statement made no reference to Aramco, Saudi Arabia's state-run oil and
gas giant.
Aramco's move to suspend plans for the Malaysian venture comes at a time
when Petronas is struggling with the slump in oil prices.
In early 2016 Petronas said it would cut spending by up to RM50 billion over
the next four years. It has also slashed the dividend it pays to the
Malaysian government.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.themalaymailonline.com/malaysia/article/petronas-says-rapid-proje
ct-on-track-for-2019-start-up
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Vietnam: Exchange rate fluctuations may push up power prices
Vietnam: Exchange rate fluctuations may push up power prices
Dinh Quang Tri, deputy general director of EVN, said because the global
price of oil and gas has decreased, the company was able to make up for VND5
trillion ($224.2 million) of this loss. Also, EVN optimised its production,
saving another VND3.5 trillion ($157 million). Therefore, the company's
losses from exchange rate fluctuations amount to about VND1.3 trillion ($58
million).
The company does not have the finances to satisfy its capital demand to
invest and domestic banks do not have enough money either, so the company
has to borrow from official development aid (ODA) and from foreign financial
institutions.
Moreover, according to Nguyen Anh Tuan, director of Electricity Regulatory
Authority of Vietnam, there are power plants in Vietnam built in the
build-operate-transfer format where EVN has to buy the power they produce
using either USD or VND calculated at the exchange rate on the day of
transaction. It also has to buy power from China.
"The three main currencies affecting EVN's ability to pay its debts are the
USD, the Japanese Yen, and the Chinese Yuan. In 2015, the average USD/VND
rate was VND21,948 per USD, up VND726 compared to 2014's average rate, an
increase of 3.42 per cent," said Tuan.
Regarding whether the exchange rate is going to affect the price of power in
2017, Tuan said that the retail power price will be calculated based on the
cost of production, which itself is based on fuel expenses, the price at
which it buys power from the plants, the sources of power, and the exchange
rate, as well as 2015 production costs. "If the 2017 cost of production is 7
per cent higher than it was in 2015, only then can EVN adjust the retail
price."
Dinh Quang Tri said each year EVN needs between $5 billion and $6 billion to
invest in its projects. "Given its current financial situation, EVN needss
the government to guarantee its loans," he said. "EVN is striving to make
sure all member companies can issue their own bonds without needing
government guarantee."
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://www.vietmaz.com/2017/01/exchange-rate-fluctuations-may-push-up-power
-prices/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+vietmaz
+%28VietMaz%29
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Dinh Quang Tri, deputy general director of EVN, said because the global
price of oil and gas has decreased, the company was able to make up for VND5
trillion ($224.2 million) of this loss. Also, EVN optimised its production,
saving another VND3.5 trillion ($157 million). Therefore, the company's
losses from exchange rate fluctuations amount to about VND1.3 trillion ($58
million).
The company does not have the finances to satisfy its capital demand to
invest and domestic banks do not have enough money either, so the company
has to borrow from official development aid (ODA) and from foreign financial
institutions.
Moreover, according to Nguyen Anh Tuan, director of Electricity Regulatory
Authority of Vietnam, there are power plants in Vietnam built in the
build-operate-transfer format where EVN has to buy the power they produce
using either USD or VND calculated at the exchange rate on the day of
transaction. It also has to buy power from China.
"The three main currencies affecting EVN's ability to pay its debts are the
USD, the Japanese Yen, and the Chinese Yuan. In 2015, the average USD/VND
rate was VND21,948 per USD, up VND726 compared to 2014's average rate, an
increase of 3.42 per cent," said Tuan.
Regarding whether the exchange rate is going to affect the price of power in
2017, Tuan said that the retail power price will be calculated based on the
cost of production, which itself is based on fuel expenses, the price at
which it buys power from the plants, the sources of power, and the exchange
rate, as well as 2015 production costs. "If the 2017 cost of production is 7
per cent higher than it was in 2015, only then can EVN adjust the retail
price."
Dinh Quang Tri said each year EVN needs between $5 billion and $6 billion to
invest in its projects. "Given its current financial situation, EVN needss
the government to guarantee its loans," he said. "EVN is striving to make
sure all member companies can issue their own bonds without needing
government guarantee."
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://www.vietmaz.com/2017/01/exchange-rate-fluctuations-may-push-up-power
-prices/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+vietmaz
+%28VietMaz%29
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Indonesia Poised to Achieve 23 Percent Energy Mix by 2025
Indonesia Poised to Achieve 23 Percent Energy Mix by 2025
Indonesia is determined to reduce its use of conventional fossil fuels and
continues to promote new and renewable sources of energy and increase share
of renewables in its energy mix to 23 percent by 2025.
According to Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan,
the government is poised to achieve its target of increasing the share of
renewables in its energy mix use by 23 percent for electricity and
transportation in 2025.
"Indonesia is resolved to increasing its energy mix to 23 percent in 2025 in
line with its commitment to reducing its greenhouse gas emissions it had
made during the COP 21 conference in Paris in 2015," Jonan stated on
Wednesday (Jan 25).
Indonesia has planned to reduce its emissions by 26 percent by 2020 and 29
percent by 2030.
To achieve this target, Research, Technology and High Education Ministry
(Kemristekdikti) has been urged to encourage research and development on new
and renewable forms of energy in a bid to support the governments efforts to
achieve the 23 percent energy mix target by 2025.
"The government is also doing its best to achieve its target of developing
35 thousand megawatts (MW) of electricity. In this case, the Kemristekdikti
is tasked with encouraging research and development in the field of new
energy technology, so that the 23 percent target would be achieved,"
Research, Technology and High Education Minister M. Nasir noted in Jakarta
on Monday (Jan 9).
Moreover, the governments energy mix target has, so far, not been achieved,
as in 2015, it had reached only five percent, and in 2016, it was seven
percent. Hence, the Kemristekdikti has been entrusted the responsibility of
encouraging its research and development center to conduct further studies
on Geothermal Electricity Generator technology.
Besides this, the second new energy technology to be developed to support
the 23 percent energy mix target is to encourage the development of solar
power plants. The problem is not only about how to produce solar cells but
also how to store its energy.
The ministry will develop ways to source electricity produced by energy
cells in residential areas through an on-grid system of the state-owned
electricity company PLN, so that houses can buy it again during night time.
This system is used to avoid the expensive off-grid storage system, where
solar cells require a battery to store energy.
Nasir further shed light on the development of power generators that harness
the energy of sea waves. This will be developed in Adonara, East Nusa
Tenggara, in cooperation with the Netherlands and in Maluku in cooperation
with Germany.
"We will conduct joint studies with them there. If we can already develop
the technology, then the cooperation will be carried out with the Agency for
Assessment and Application of Technology (BPPT). We will try to produce
turbines," Minister Nasir noted.
The main goal of encouraging research on renewable energy technology is to
increase the local components used in producing geothermal power generators.
So far, the local components have reached 64.5 percent. This percentage will
continue to be increased through research and development activities. Thus,
more renewable energy will be produced, and the 23 percent energy mix target
can be achieved.
ESDM Minister Jonan believed that the use of diverse sources of energy
should continue to be promoted to support the development of electricity and
transportation, though the prices should be within the purchasing power of
the people.
The purchasing power of the people will remain the main focus of the
government in the electricity sector. The minister lauded PLNs efforts to
offer electricity at economical rates. However, one needs to understand that
not all forms of basic energy can be used or produced efficiently in all
locations.
Solar or wind energy can be used by steam power plants in South Sumatra, for
instance, as long as they are able to generate electricity at competitive
costs.
Hence, Minister Jonan emphasized that it was not necessary to offer
incentives to businesses engaged in the development and use of new and
renewable energy.
"I think friends doing business in the new and renewable energy sector do
not need incentives. What they need is support, which will, in the end, make
them efficient," he affirmed.
In the meantime, the Indonesian government plans to apply a new scheme to
set the tariffs of electrical power generated by new and renewable energy
power plants.
The government is making every effort to make the tariffs transparent,
accountable, and measurable, member of the National Energy Council Tumiran
stated at a press conference in Jakarta on Monday (Jan. 23).
The government is offering room to ensure that the tariffs on electricity
generated by new and renewable energy power plants in all regions will not
be the same but will instead be adjusted to the existing potential, so that
they will help supply energy in the regions.
Through the new scheme, the prices of electrical power generated by new and
renewable energy power plants will differ across regions, as a maximum of 85
percent of the prices must be the regional production cost.
Citing an example, he explained that if the production cost of electrical
power in the eastern part of Indonesia is Rp2,500 per kilowatt-hour (kWh),
then the price of electrical power from new and renewable energy power
plants will be 85 percent of Rp2,500, or Rp2,100 per kWh.
This should especially be applicable in Java, which has low production cost.
The national production cost, which stood at Rp980 per kWh last year, will
be applied in the island, he stated.
The move is intended to enable investors in the renewable energy sector to
keep down the prices and to make the investment cost cheaper," he added.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://en.tempo.co/read/news/2017/01/27/206840258/Indonesia-Poised-to-Achie
ve-23-Percent-Energy-Mix-by-2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Indonesia is determined to reduce its use of conventional fossil fuels and
continues to promote new and renewable sources of energy and increase share
of renewables in its energy mix to 23 percent by 2025.
According to Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan,
the government is poised to achieve its target of increasing the share of
renewables in its energy mix use by 23 percent for electricity and
transportation in 2025.
"Indonesia is resolved to increasing its energy mix to 23 percent in 2025 in
line with its commitment to reducing its greenhouse gas emissions it had
made during the COP 21 conference in Paris in 2015," Jonan stated on
Wednesday (Jan 25).
Indonesia has planned to reduce its emissions by 26 percent by 2020 and 29
percent by 2030.
To achieve this target, Research, Technology and High Education Ministry
(Kemristekdikti) has been urged to encourage research and development on new
and renewable forms of energy in a bid to support the governments efforts to
achieve the 23 percent energy mix target by 2025.
"The government is also doing its best to achieve its target of developing
35 thousand megawatts (MW) of electricity. In this case, the Kemristekdikti
is tasked with encouraging research and development in the field of new
energy technology, so that the 23 percent target would be achieved,"
Research, Technology and High Education Minister M. Nasir noted in Jakarta
on Monday (Jan 9).
Moreover, the governments energy mix target has, so far, not been achieved,
as in 2015, it had reached only five percent, and in 2016, it was seven
percent. Hence, the Kemristekdikti has been entrusted the responsibility of
encouraging its research and development center to conduct further studies
on Geothermal Electricity Generator technology.
Besides this, the second new energy technology to be developed to support
the 23 percent energy mix target is to encourage the development of solar
power plants. The problem is not only about how to produce solar cells but
also how to store its energy.
The ministry will develop ways to source electricity produced by energy
cells in residential areas through an on-grid system of the state-owned
electricity company PLN, so that houses can buy it again during night time.
This system is used to avoid the expensive off-grid storage system, where
solar cells require a battery to store energy.
Nasir further shed light on the development of power generators that harness
the energy of sea waves. This will be developed in Adonara, East Nusa
Tenggara, in cooperation with the Netherlands and in Maluku in cooperation
with Germany.
"We will conduct joint studies with them there. If we can already develop
the technology, then the cooperation will be carried out with the Agency for
Assessment and Application of Technology (BPPT). We will try to produce
turbines," Minister Nasir noted.
The main goal of encouraging research on renewable energy technology is to
increase the local components used in producing geothermal power generators.
So far, the local components have reached 64.5 percent. This percentage will
continue to be increased through research and development activities. Thus,
more renewable energy will be produced, and the 23 percent energy mix target
can be achieved.
ESDM Minister Jonan believed that the use of diverse sources of energy
should continue to be promoted to support the development of electricity and
transportation, though the prices should be within the purchasing power of
the people.
The purchasing power of the people will remain the main focus of the
government in the electricity sector. The minister lauded PLNs efforts to
offer electricity at economical rates. However, one needs to understand that
not all forms of basic energy can be used or produced efficiently in all
locations.
Solar or wind energy can be used by steam power plants in South Sumatra, for
instance, as long as they are able to generate electricity at competitive
costs.
Hence, Minister Jonan emphasized that it was not necessary to offer
incentives to businesses engaged in the development and use of new and
renewable energy.
"I think friends doing business in the new and renewable energy sector do
not need incentives. What they need is support, which will, in the end, make
them efficient," he affirmed.
In the meantime, the Indonesian government plans to apply a new scheme to
set the tariffs of electrical power generated by new and renewable energy
power plants.
The government is making every effort to make the tariffs transparent,
accountable, and measurable, member of the National Energy Council Tumiran
stated at a press conference in Jakarta on Monday (Jan. 23).
The government is offering room to ensure that the tariffs on electricity
generated by new and renewable energy power plants in all regions will not
be the same but will instead be adjusted to the existing potential, so that
they will help supply energy in the regions.
Through the new scheme, the prices of electrical power generated by new and
renewable energy power plants will differ across regions, as a maximum of 85
percent of the prices must be the regional production cost.
Citing an example, he explained that if the production cost of electrical
power in the eastern part of Indonesia is Rp2,500 per kilowatt-hour (kWh),
then the price of electrical power from new and renewable energy power
plants will be 85 percent of Rp2,500, or Rp2,100 per kWh.
This should especially be applicable in Java, which has low production cost.
The national production cost, which stood at Rp980 per kWh last year, will
be applied in the island, he stated.
The move is intended to enable investors in the renewable energy sector to
keep down the prices and to make the investment cost cheaper," he added.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://en.tempo.co/read/news/2017/01/27/206840258/Indonesia-Poised-to-Achie
ve-23-Percent-Energy-Mix-by-2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
ADB inks $109m financing for clean energy venture in Indonesia
ADB inks $109m financing for clean energy venture in Indonesia
The Asian Development Bank (ADB) signed on January 26, 2017 a new $109
million financing package for the Muara Laboh geothermal power generation
project, a clean energy venture in western Indonesia.
This financing is part of ADB's efforts to scale up private sector-led
infrastructure development in Asia and the Pacific and boost support for
clean energy. The plan was approved in December 2016.
A project of PT Supreme Energy Muara Laboh, the Muara Laboh geothermal
facilities is located in West Sumatra in Indonesia targeted to generate 80
megawatts of electricity. Indonesia contains about 40 per cent of the
world's geothermal reserves, a significant resource for the country to
achieve its commitments to reduce carbon dioxide emissions by 29 per cent by
2030.
According to the Manila-based regional bank, the project brings together an
important set of geothermal project developers and financiers. PT Supreme
Energy Muara Laboh is a joint venture consisting of the Indonesian
geothermal power developer PT Supreme Energy, Japanese trading and
investment company Sumitomo Corporation, and global energy leader ENGIE.
Yuichiro Yoi, senior investment specialist of ADB's private sector
operations department, said the project reflects Indonesia's commitment to
meet increasing demand for electricity and support the development of
renewable energy.
"This transaction proves that the private sector will play a critical role
in helping the country achieve both of these targets," Yoi said.
The geothermal project will be one of the first transactions to receive
funding from ADB's newly established $1.5 billion fund called Leading Asia's
Private Infrastructure Fund (LEAP). It is capitalized in equity from Japan
International Cooperation Agency (JICA), and is managed by ADB's private
sector operations department. Over $200 million of LEAP funds have been
allocated, with the Muara Laboh approval and other recent LEAP financings
included.
The assistance is funded by a $70 million loan from ADB's own capital and a
$19 million participation from the Clean Technology Fund (CTF), which
provides middle-income countries with highly concessional resources to scale
up low-carbon technologies. CTF is one of the two funds comprising the World
Bank's Climate Investment Funds.
In addition to ADB, financing is being provided by the Japan Bank for
international cooperation and a set of commercial banks under a guarantee
from Nippon Export and Investment Insurance.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.dealstreetasia.com/stories/adb-inks-109m-financing-for-clean-ener
gy-venture-in-indonesia-63698/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
The Asian Development Bank (ADB) signed on January 26, 2017 a new $109
million financing package for the Muara Laboh geothermal power generation
project, a clean energy venture in western Indonesia.
This financing is part of ADB's efforts to scale up private sector-led
infrastructure development in Asia and the Pacific and boost support for
clean energy. The plan was approved in December 2016.
A project of PT Supreme Energy Muara Laboh, the Muara Laboh geothermal
facilities is located in West Sumatra in Indonesia targeted to generate 80
megawatts of electricity. Indonesia contains about 40 per cent of the
world's geothermal reserves, a significant resource for the country to
achieve its commitments to reduce carbon dioxide emissions by 29 per cent by
2030.
According to the Manila-based regional bank, the project brings together an
important set of geothermal project developers and financiers. PT Supreme
Energy Muara Laboh is a joint venture consisting of the Indonesian
geothermal power developer PT Supreme Energy, Japanese trading and
investment company Sumitomo Corporation, and global energy leader ENGIE.
Yuichiro Yoi, senior investment specialist of ADB's private sector
operations department, said the project reflects Indonesia's commitment to
meet increasing demand for electricity and support the development of
renewable energy.
"This transaction proves that the private sector will play a critical role
in helping the country achieve both of these targets," Yoi said.
The geothermal project will be one of the first transactions to receive
funding from ADB's newly established $1.5 billion fund called Leading Asia's
Private Infrastructure Fund (LEAP). It is capitalized in equity from Japan
International Cooperation Agency (JICA), and is managed by ADB's private
sector operations department. Over $200 million of LEAP funds have been
allocated, with the Muara Laboh approval and other recent LEAP financings
included.
The assistance is funded by a $70 million loan from ADB's own capital and a
$19 million participation from the Clean Technology Fund (CTF), which
provides middle-income countries with highly concessional resources to scale
up low-carbon technologies. CTF is one of the two funds comprising the World
Bank's Climate Investment Funds.
In addition to ADB, financing is being provided by the Japan Bank for
international cooperation and a set of commercial banks under a guarantee
from Nippon Export and Investment Insurance.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.dealstreetasia.com/stories/adb-inks-109m-financing-for-clean-ener
gy-venture-in-indonesia-63698/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Philippines: New oil well to be drilled at Galoc field
Philippines: New oil well to be drilled at Galoc field
The operator of the Galoc oil field in Palawan has tapped a contractor to
drill a new well to extend the life of the oil field.
Australian oil and gas company Nido Petroleum Ltd. said its wholly owned
subsidiary Galoc Production Co. W.L.L. has signed a binding rig contract
with Golden Close Maritime Corp. Ltd. for the drillship "Deepsea Metro I" to
drill the Galoc-7/7ST appraisal well.
The contract period consists of a firm well and an optional side track.
"We are pleased to announce the execution of a binding rig contract with
Golden Close Maritime Corp. Ltd to secure the Deepsea Metro I for the
Galoc-7/7ST appraisal well and we look forward to drilling operations
commencing in the Philippines as we seek to unlock the potential for
extending the field life of our cornerstone asset," Nido managing director
Mike Fischer said.
Golden Close Maritime is a wholly owned subsidiary of Deepsea Metro Ltd.
which is 40 percent owned by the Odfjell Drilling group, a key player in the
upstream oil and gas industry since the 1970s.
The Galoc oil field in northwest Palawan showed promise for expansion in
2019 following a favorable third party assessment contracted by Nido
Petroleum Ltd. and its partners.
Nido said Deepsea Metro I is a cutting edge sixth-generation drillship with
dual derricks capable of operating in water depths of up to 10,000 feet and
to drill to a total depth of 40,000 sub-sea.
The Galoc oil field is comprised of the producing Central Field Area and the
un-drilled northern extension Galoc Mid Area, where drilling of Galoc-7
appraisal well is considered to determine contingent reserves.
In August last year, Nido said ODIN Reservoir Consultants Pty Ltd. completed
an independent assessment, which is an update to the previous work by
Gaffney Cline & Associates.
ODIN's assessment showed the Galoc field is estimated to contain contingent
resources of as low estimate (1C), 13.3 MMstb as best estimate (2C) and as
highest estimate (3C).
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.philstar.com/business/2017/01/27/1665759/new-oil-well-be-drilled-
galoc-field
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
The operator of the Galoc oil field in Palawan has tapped a contractor to
drill a new well to extend the life of the oil field.
Australian oil and gas company Nido Petroleum Ltd. said its wholly owned
subsidiary Galoc Production Co. W.L.L. has signed a binding rig contract
with Golden Close Maritime Corp. Ltd. for the drillship "Deepsea Metro I" to
drill the Galoc-7/7ST appraisal well.
The contract period consists of a firm well and an optional side track.
"We are pleased to announce the execution of a binding rig contract with
Golden Close Maritime Corp. Ltd to secure the Deepsea Metro I for the
Galoc-7/7ST appraisal well and we look forward to drilling operations
commencing in the Philippines as we seek to unlock the potential for
extending the field life of our cornerstone asset," Nido managing director
Mike Fischer said.
Golden Close Maritime is a wholly owned subsidiary of Deepsea Metro Ltd.
which is 40 percent owned by the Odfjell Drilling group, a key player in the
upstream oil and gas industry since the 1970s.
The Galoc oil field in northwest Palawan showed promise for expansion in
2019 following a favorable third party assessment contracted by Nido
Petroleum Ltd. and its partners.
Nido said Deepsea Metro I is a cutting edge sixth-generation drillship with
dual derricks capable of operating in water depths of up to 10,000 feet and
to drill to a total depth of 40,000 sub-sea.
The Galoc oil field is comprised of the producing Central Field Area and the
un-drilled northern extension Galoc Mid Area, where drilling of Galoc-7
appraisal well is considered to determine contingent reserves.
In August last year, Nido said ODIN Reservoir Consultants Pty Ltd. completed
an independent assessment, which is an update to the previous work by
Gaffney Cline & Associates.
ODIN's assessment showed the Galoc field is estimated to contain contingent
resources of as low estimate (1C), 13.3 MMstb as best estimate (2C) and as
highest estimate (3C).
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.philstar.com/business/2017/01/27/1665759/new-oil-well-be-drilled-
galoc-field
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Thursday, January 26, 2017
Indonesia only needs 15,000 MW extra electricity by 2019: Minister
Indonesia only needs 15,000 MW extra electricity by 2019: Minister
Energy and Mineral Resources Minister Ignasius Jonan claims that the country
will only need an additional 15,000 megawatts (MW) in electricity generation
by 2019 despite the government's ambitious project to increase the current
network to 35,000 MW by the same year.
Jonan said that the projection was calculated based on the country's
economic growth over the past couple of years, which hovered around 5
percent. This year, the government is targeting economic growth of 5.2
percent.
"[The 35,000 MW program] was designed with annual economic growth of 8
percent in mind," Jonan said on Wednesday at the opening of the Indonesia
Energy Roadmap seminar in Central Jakarta on Wednesday.
"Maybe we need a total capacity of around 70,000 MW and our current capacity
is around 55,000 MW. So, 15,000 MW must reach COD [commercial operation
date] by 2019. This does not mean that we will stop the 35,000 MW program,
but it might mean that it isn't completed by 2019."
The 35,000 MW project is basically a continuation of the 10,000 MW policy
launched by former president Susilo Bambang Yudhoyono in 2005 in order to
maintain reserve margins-the difference between capacity and demand-with the
International Energy Agency's recommended level of 20 to 35 percent.
As the nation is at risk of a power crisis should the level decline to below
20 percent, President Joko "Jokowi" Widodo, who took office in October 2014,
continued the initiative to boost the electricity capacity to accommodate
higher economic growth.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Energy and Mineral Resources Minister Ignasius Jonan claims that the country
will only need an additional 15,000 megawatts (MW) in electricity generation
by 2019 despite the government's ambitious project to increase the current
network to 35,000 MW by the same year.
Jonan said that the projection was calculated based on the country's
economic growth over the past couple of years, which hovered around 5
percent. This year, the government is targeting economic growth of 5.2
percent.
"[The 35,000 MW program] was designed with annual economic growth of 8
percent in mind," Jonan said on Wednesday at the opening of the Indonesia
Energy Roadmap seminar in Central Jakarta on Wednesday.
"Maybe we need a total capacity of around 70,000 MW and our current capacity
is around 55,000 MW. So, 15,000 MW must reach COD [commercial operation
date] by 2019. This does not mean that we will stop the 35,000 MW program,
but it might mean that it isn't completed by 2019."
The 35,000 MW project is basically a continuation of the 10,000 MW policy
launched by former president Susilo Bambang Yudhoyono in 2005 in order to
maintain reserve margins-the difference between capacity and demand-with the
International Energy Agency's recommended level of 20 to 35 percent.
As the nation is at risk of a power crisis should the level decline to below
20 percent, President Joko "Jokowi" Widodo, who took office in October 2014,
continued the initiative to boost the electricity capacity to accommodate
higher economic growth.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
St1 signed a Memorandum of Understanding for a bioethanol pilot project in Thailand
St1 signed a Memorandum of Understanding for a bioethanol pilot project in
Thailand
St1, a Finnish energy company, has signed a Memorandum of Understanding with
Ubon Bio Ethanol to launch a pilot project of the production of bioethanol
from cassava waste, with the aim of setting up a joint venture for ethanol
production in Thailand. Thailand is a forerunner in use of renewable energy.
The country uses over 3 million litres of ethanol per day as transport fuel,
and the Thai government plans to raise consumption to 11.3 million litres
per day by 2036.
St1 is a pioneer in non-food, waste- and residue-based ethanol production
and production technologies. The company's production technology is
currently being used in Finland and Sweden. So far company's ethanol
production feedstocks consist of food industry waste, household and grocery
store biowaste and sawdust. St1 has performed worldwide studies of different
types of potential food industry waste for bioethanol production, and
discovered that waste from cassava starch production in Thailand is one of
the best feedstock sources for the company's Etanolix® technology.
"Cassava waste is a challenging feedstock for ethanol production due to its
fibrous consistency, which makes starch extraction difficult. The pilot
tests in St1 R&D laboratories proved that it is an excellent feedstock for
our bioethanol production process. Our experiences of using Cellulinox®
technology to produce ethanol from sawdust helped us to address the
challenges involved in the processing of fibrous feedstock materials. The
amount of cassava waste generated by Thailand's largest starch production
plants would enable the construction of units producing 10-30 million litres
of ethanol per year. Our goal is to build as many as 20 Etanolix® plants in
Thailand, with a combined production capacity of 400 million litres of
ethanol per year," says Patrick Pitkänen, Head of Business Development and
Sales at St1.
For this project, St1 partnered with Ubon Bio Ethanol Company Limited, which
has a starch and ethanol plant in the same location in Ubon Ratchathani,
Thailand. This convenient arrangement would make the pilot project easy to
manage and would simplify full-scale production logistics. Ubon Bio Ethanol,
the largest cassava ethanol producer in Thailand, is a private company whose
shareholders are state-owned energy companies.
"We are ready to go ahead with the pilot stage with our local partners, to
ensure a smooth start to production and to assess the effects of local
conditions and seasonal changes on the scale and design of the ethanol
plant. This is also an important learning opportunity for the team, which
consists of representatives from both companies. Design engineers are
currently working on the pilot equipment, and the pilot launch is scheduled
for this year," Patrick Pitkänen continues.
"Our co-operation will make an impact on the cassava starch industry and we
try to increase the value of the by-products like cassava pulp. We plan to
expand this concept also to other starch producers in Thailand and nearby
countries. To produce ethanol from by-product serves two purposes; it
improves economically margin of starch producers and solves the
environmental issue related to by-product. Moreover, Ubon Bio Ethanol is
committed to the sustainable development goals related to our business
partners, farmers, community and the environment," says Daechapon
Lersuwanaroj, the president of Ubon Bio Ethanol, Thailand.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://globenewswire.com/news-release/2017/01/25/910593/0/en/St1-signed-a-M
emorandum-of-Understanding-for-a-bioethanol-pilot-project-in-Thailand.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Thailand
St1, a Finnish energy company, has signed a Memorandum of Understanding with
Ubon Bio Ethanol to launch a pilot project of the production of bioethanol
from cassava waste, with the aim of setting up a joint venture for ethanol
production in Thailand. Thailand is a forerunner in use of renewable energy.
The country uses over 3 million litres of ethanol per day as transport fuel,
and the Thai government plans to raise consumption to 11.3 million litres
per day by 2036.
St1 is a pioneer in non-food, waste- and residue-based ethanol production
and production technologies. The company's production technology is
currently being used in Finland and Sweden. So far company's ethanol
production feedstocks consist of food industry waste, household and grocery
store biowaste and sawdust. St1 has performed worldwide studies of different
types of potential food industry waste for bioethanol production, and
discovered that waste from cassava starch production in Thailand is one of
the best feedstock sources for the company's Etanolix® technology.
"Cassava waste is a challenging feedstock for ethanol production due to its
fibrous consistency, which makes starch extraction difficult. The pilot
tests in St1 R&D laboratories proved that it is an excellent feedstock for
our bioethanol production process. Our experiences of using Cellulinox®
technology to produce ethanol from sawdust helped us to address the
challenges involved in the processing of fibrous feedstock materials. The
amount of cassava waste generated by Thailand's largest starch production
plants would enable the construction of units producing 10-30 million litres
of ethanol per year. Our goal is to build as many as 20 Etanolix® plants in
Thailand, with a combined production capacity of 400 million litres of
ethanol per year," says Patrick Pitkänen, Head of Business Development and
Sales at St1.
For this project, St1 partnered with Ubon Bio Ethanol Company Limited, which
has a starch and ethanol plant in the same location in Ubon Ratchathani,
Thailand. This convenient arrangement would make the pilot project easy to
manage and would simplify full-scale production logistics. Ubon Bio Ethanol,
the largest cassava ethanol producer in Thailand, is a private company whose
shareholders are state-owned energy companies.
"We are ready to go ahead with the pilot stage with our local partners, to
ensure a smooth start to production and to assess the effects of local
conditions and seasonal changes on the scale and design of the ethanol
plant. This is also an important learning opportunity for the team, which
consists of representatives from both companies. Design engineers are
currently working on the pilot equipment, and the pilot launch is scheduled
for this year," Patrick Pitkänen continues.
"Our co-operation will make an impact on the cassava starch industry and we
try to increase the value of the by-products like cassava pulp. We plan to
expand this concept also to other starch producers in Thailand and nearby
countries. To produce ethanol from by-product serves two purposes; it
improves economically margin of starch producers and solves the
environmental issue related to by-product. Moreover, Ubon Bio Ethanol is
committed to the sustainable development goals related to our business
partners, farmers, community and the environment," says Daechapon
Lersuwanaroj, the president of Ubon Bio Ethanol, Thailand.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://globenewswire.com/news-release/2017/01/25/910593/0/en/St1-signed-a-M
emorandum-of-Understanding-for-a-bioethanol-pilot-project-in-Thailand.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
New feed-in-tariff scheme for renewable energy expected soon in Indonesia
New feed-in-tariff scheme for renewable energy expected soon in Indonesia
As reported from Indonesia this week, the Ministry for Energy and Mineral
Resources in Indonesia expects to soon issue a new ruling on a new tariff
scheme for renewable energy.
The planned tariff scheme, will set the feed-in-tariffs for electricity
generated from renewable energy sources at no higher than 85% of the basic
production cost of renewables in respective regions.
This will result in different tariffs for different regions and
technologies.
The country maintains its ambitious 35,000 MW power program, with a large
part of this to be sourced from renewable energy sources. The official
target is to derive 23% of electricity from renewable energy by 2025. With
its geothermal resources, the country is putting big hopes into geothermal
energy development. The state power utility PLN expects that power plants
with a total capacity of up to 26,000 MW will start operations by the end of
2019, of which only 20,000 MW have signed PPAs with PLN.
There remains a lot of criticism by industry players on the part of PLN and
its inconsistency in carrying out project tenders, so Rambu Energy.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.thinkgeoenergy.com/new-feed-in-tariff-scheme-for-renewable-energy
-expected-soon-in-indonesia/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
As reported from Indonesia this week, the Ministry for Energy and Mineral
Resources in Indonesia expects to soon issue a new ruling on a new tariff
scheme for renewable energy.
The planned tariff scheme, will set the feed-in-tariffs for electricity
generated from renewable energy sources at no higher than 85% of the basic
production cost of renewables in respective regions.
This will result in different tariffs for different regions and
technologies.
The country maintains its ambitious 35,000 MW power program, with a large
part of this to be sourced from renewable energy sources. The official
target is to derive 23% of electricity from renewable energy by 2025. With
its geothermal resources, the country is putting big hopes into geothermal
energy development. The state power utility PLN expects that power plants
with a total capacity of up to 26,000 MW will start operations by the end of
2019, of which only 20,000 MW have signed PPAs with PLN.
There remains a lot of criticism by industry players on the part of PLN and
its inconsistency in carrying out project tenders, so Rambu Energy.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.thinkgeoenergy.com/new-feed-in-tariff-scheme-for-renewable-energy
-expected-soon-in-indonesia/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Thailand: ABB to provide substation equipment for Suvarnabhumi Phase 2 expansion
Thailand: ABB to provide substation equipment for Suvarnabhumi Phase 2
expansion
Industrial-technology multinational ABB has received an order worth US$3.5
million (Bt123 million) to deliver substation equipment to facilitate the
distribution of power at Suvarnabhumi Airport's Phase 2 expansion.
The deal includes power transformers, control and protection technology,
gas-insulated switchgear (GIS), and dry-type transformers, as well as
supervision, installation and test commissioning through EPC Interlink
Communication (Thailand).
"We are proud to be part of the Phase 2 expansion in providing reliable and
efficient power supplies, and state-of-the-art electrical substations to
meet the needs of a busy airport," said Praditpong Suksirithawornkul, ABB's
sales manager for the power grids division in Thailand.
The 115/24-kilovolt power transformer and 115kV control and protection
equipment will be manufactured in ABB's factory in Samut Prakan province,
while the 115kV GIS will be imported from ABB in China and 24kV/416-volt
dry-type transformer from ABB in South Korea.
To ease congestion at the airport, which is now operating at close to
capacity, the expansion plan includes the construction of one additional
runway, subsequent enlargement of domestic and international terminals, and
improvements to parking bays, car parks, and other airport infrastructure.
When Phase 2 is completed next year, it should increase annual passenger
capacity at the airport from the current 45 million to more than 60 million.
ABB, a multinational headquartered in Switzerland, is a technology provider
in electrification products, robotics and motion, industrial automation and
power grids, serving customers in utilities, industry and transport and
infrastructure globally.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.nationmultimedia.com/news/business/30304889?utm_source=feedburner
&utm_medium=email&utm_campaign=Feed%3A+Nationmultimediacom-Business+%28Natio
nMultimedia.com+-+Business%29
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
expansion
Industrial-technology multinational ABB has received an order worth US$3.5
million (Bt123 million) to deliver substation equipment to facilitate the
distribution of power at Suvarnabhumi Airport's Phase 2 expansion.
The deal includes power transformers, control and protection technology,
gas-insulated switchgear (GIS), and dry-type transformers, as well as
supervision, installation and test commissioning through EPC Interlink
Communication (Thailand).
"We are proud to be part of the Phase 2 expansion in providing reliable and
efficient power supplies, and state-of-the-art electrical substations to
meet the needs of a busy airport," said Praditpong Suksirithawornkul, ABB's
sales manager for the power grids division in Thailand.
The 115/24-kilovolt power transformer and 115kV control and protection
equipment will be manufactured in ABB's factory in Samut Prakan province,
while the 115kV GIS will be imported from ABB in China and 24kV/416-volt
dry-type transformer from ABB in South Korea.
To ease congestion at the airport, which is now operating at close to
capacity, the expansion plan includes the construction of one additional
runway, subsequent enlargement of domestic and international terminals, and
improvements to parking bays, car parks, and other airport infrastructure.
When Phase 2 is completed next year, it should increase annual passenger
capacity at the airport from the current 45 million to more than 60 million.
ABB, a multinational headquartered in Switzerland, is a technology provider
in electrification products, robotics and motion, industrial automation and
power grids, serving customers in utilities, industry and transport and
infrastructure globally.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.nationmultimedia.com/news/business/30304889?utm_source=feedburner
&utm_medium=email&utm_campaign=Feed%3A+Nationmultimediacom-Business+%28Natio
nMultimedia.com+-+Business%29
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Thailand: TPIPP remains on track to list
Thailand: TPIPP remains on track to list
TPI Polene Power Plc (TPIPP), wholly owned by Thailand's third-largest
cement maker, TPI Polene Plc (TPIPL), will continue with a plan to list on
the Stock Exchange of Thailand by March after the move was delayed from last
year.
The move to list TPIPP, an operator of waste-to-power plants, is part of a
plan by TPIPL to spin off its power business, although the signing of a
power purchase agreement with the Electricity Generating Authority of
Thailand has been delayed from last year.
Prasert Ittimakin, senior vice-president for finance and accounting at
TPIPL, said TPIPP plans to float 2.5 billion shares, or 29.8% of total
shares, in an initial public offering (IPO).
Maybank Kim Eng Securities, Tisco Bank and CIMB Thai Bank are the financial
advisers.
Before the listing, the company will hold roadshows in Singapore, Hong Kong,
Malaysia and the UK to attract foreign investors.
TPIPP's waste-to-energy process is comprised of two feedstocks from waste --
one from a municipality that will be processed into refuse-derived fuel
(RDF) and the other the heat generated from TPIPL's cement production
process.
He said the IPO process would be done during March this year and the price
per share unit is expected to be released by the third week of March. The
amount of capital expenditure for the IPO would also be finalised that week.
Mr Prasert said cash raised from the IPO would partially be used to finance
ongoing power plant projects in its pipeline at a cost of nearly 10 billion
baht while the rest would be used to refinance 5 billion in debt incurred
from TPIPL expanding its renewable power business.
TPIPP operates waste-to-energy power plants with a combined capacity of 150
megawatts, including two units of heat recovery power plants and two units
of RDF power plants.
Its waste-to-energy power plants receive an adder tariff of 3.5 baht per
kilowatt hour (unit) the first seven years of operation.
This year TPIPP plans to expand its power-generating capacity by another 290
MW by developing another three power plants worth around 10 billion baht of
investment, including a 150MW coal-fired power plant, a 70MW RDF power plant
and a 70MW coal-fired plant blended with RDF.
All three plants are expected to receive environment impact assessment
approvals within this year.
TPIPL shares closed yesterday on the SET at 2.36 baht, down eight satang, in
trade worth 3.10 billion.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.bangkokpost.com/business/news/1186985/tpipp-remains-on-track-to-l
ist
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
TPI Polene Power Plc (TPIPP), wholly owned by Thailand's third-largest
cement maker, TPI Polene Plc (TPIPL), will continue with a plan to list on
the Stock Exchange of Thailand by March after the move was delayed from last
year.
The move to list TPIPP, an operator of waste-to-power plants, is part of a
plan by TPIPL to spin off its power business, although the signing of a
power purchase agreement with the Electricity Generating Authority of
Thailand has been delayed from last year.
Prasert Ittimakin, senior vice-president for finance and accounting at
TPIPL, said TPIPP plans to float 2.5 billion shares, or 29.8% of total
shares, in an initial public offering (IPO).
Maybank Kim Eng Securities, Tisco Bank and CIMB Thai Bank are the financial
advisers.
Before the listing, the company will hold roadshows in Singapore, Hong Kong,
Malaysia and the UK to attract foreign investors.
TPIPP's waste-to-energy process is comprised of two feedstocks from waste --
one from a municipality that will be processed into refuse-derived fuel
(RDF) and the other the heat generated from TPIPL's cement production
process.
He said the IPO process would be done during March this year and the price
per share unit is expected to be released by the third week of March. The
amount of capital expenditure for the IPO would also be finalised that week.
Mr Prasert said cash raised from the IPO would partially be used to finance
ongoing power plant projects in its pipeline at a cost of nearly 10 billion
baht while the rest would be used to refinance 5 billion in debt incurred
from TPIPL expanding its renewable power business.
TPIPP operates waste-to-energy power plants with a combined capacity of 150
megawatts, including two units of heat recovery power plants and two units
of RDF power plants.
Its waste-to-energy power plants receive an adder tariff of 3.5 baht per
kilowatt hour (unit) the first seven years of operation.
This year TPIPP plans to expand its power-generating capacity by another 290
MW by developing another three power plants worth around 10 billion baht of
investment, including a 150MW coal-fired power plant, a 70MW RDF power plant
and a 70MW coal-fired plant blended with RDF.
All three plants are expected to receive environment impact assessment
approvals within this year.
TPIPL shares closed yesterday on the SET at 2.36 baht, down eight satang, in
trade worth 3.10 billion.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.bangkokpost.com/business/news/1186985/tpipp-remains-on-track-to-l
ist
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Vietnam: Recent Developments On Solar Power Policy And Legislation In Vietnam
Vietnam: Recent Developments On Solar Power Policy And Legislation In
Vietnam
The government of Vietnam has mostly focused its renewable energy plans on
wind energy and biomass production but recently, solar energy is starting to
take center stage, aptly so in a country with high solar irradiation
levels.1 According to the Asian Development Bank, the total technical
potential for solar power generation in the country is around 13,000MW, but
as of 2015, the total installed solar capacity for power generation is only
about 4MW, used mainly in research and rural electrification.2
National targets
Starting 2015, there has been several key developments in the solar energy
sector. On 18 March 2016, the Prime Minister approved the amendments to the
National Master Plan for Power Development in the 2011-2020 period with
vision to 2030 under Decision 428/QD-TTg. For the first time, detailed
targets on solar power were introduced in this legal document: capacity of
850 MW by 2020, 4,000 MW by 2025, and 12,000 MW by 2030; and share of solar
power in total power generation to about 0.5% by 2020, 1.6% by 2025, and
3.3% by 2030.3
Draft decision on solar power development
On 11 May 2016, with the presence of Deputy Prime Minister Trinh Dinh Dung,
key government officials met to discuss the draft decision to be promulgated
by the Prime Minister on the mechanisms to support solar energy development
(the "Draft Decision").4 If the Draft Decision is adopted, this will be the
first ever solar energy-specific regulation with detailed guidelines and
incentives for the industry to be promulgated in the Vietnamese legislation
system. At present, regulations on solar power are only incorporated in the
general laws on energy, environment and renewable energy projects (e.g., Law
on Electricity No. 28/2004/QH11 dated 03 December 2004; Law on Environmental
Protection No. 55/2014/QH13 dated 23 June 2014; Decision on Development
Strategy for Renewable Energy by 2030 with a vision to 2050 No. 2068/QD-TTg
dated 25 November 2015).
The third version of the Draft Decision, which applies to power generation
projects using photovoltaic (PV) method,5 grants investors incentives
existing under current laws, such as:
Allowing investors to raise capital onshore and offshore to invest in solar
power projects,6 and solar power projects shall enjoy preferences regarding
State investment credit and export credit under current laws.7 At present,
the maximum loan amount for each project (from the Vietnam Development Bank)
is 70% of the total investment and the loan term is maximum 12 years. The
preferential loan interest rate will be applicable.8
Exemption from import duties for imported goods forming the fixed assets of
the projects, raw materials, supplies and semi-finished products not
available in Vietnam.9
Exemption or reduction on corporate income tax in accordance with investment
incentives applicable for projects falling into investment incentives under
existing tax laws.10
Solar power projects, transmission lines and substations connected to the
national grid shall also enjoy exemption or reduction in land use fees and
land rent in accordance with incentives applicable for projects entitled to
investment incentives.11
Purchase price
With respect to solar power projects connected to the grid:
Under the third version of the Draft Decision, the Electricity of Vietnam
(EVN) or its authorized units is responsible for purchasing all electricity
produced from solar power projects at the price of 11.2 US cents/kWh (which
is the average of VND 1,800/kWh (around JPY 8.89/USD 0.8) and VND3,500/kWh
(around JPY17.29/USD0.16), respectively, the minimum and maximum regular
electricity rates prescribed under Decision No. 28/2014/QD-TTg on the
structure of electricity retail tariff dated 07 April 2014). This rate only
applies to the solar power projects connected to the grid having solar cell
efficiency higher than 16% and capacity less than 100 MW.12
With respect to solar power projects installed on roofs:
For solar power projects installed on roofs and connected to the grid, the
excess energy shall be purchased by EVN or its authorized units at the rate
of VND 3,150/kWh (VAT excluded) (around 15 US cents). The price shall be
adjusted according to fluctuations in the exchange rate between the
Vietnamese Dong and the US Dollar.13
During the 11 May 2016 meeting, Deputy Prime Minister Dung requested the
Ministry of Industry and Trade (MOIT) to consider the experience of other
countries in establishing incentives for solar power development to learn
from their experience. He also advised the MOIT and local authorities to
identify areas for development of renewable energy resources in their
planning to avoid conflict with other plans. With solar energy's untapped
yet promising potential and investors flocking in this sector, it seems that
the government is very keen to have this draft decision adopted immediately.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.mondaq.com/article.asp?articleid=555570&email_access=on&chk=20840
72&q=1528502
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Vietnam
The government of Vietnam has mostly focused its renewable energy plans on
wind energy and biomass production but recently, solar energy is starting to
take center stage, aptly so in a country with high solar irradiation
levels.1 According to the Asian Development Bank, the total technical
potential for solar power generation in the country is around 13,000MW, but
as of 2015, the total installed solar capacity for power generation is only
about 4MW, used mainly in research and rural electrification.2
National targets
Starting 2015, there has been several key developments in the solar energy
sector. On 18 March 2016, the Prime Minister approved the amendments to the
National Master Plan for Power Development in the 2011-2020 period with
vision to 2030 under Decision 428/QD-TTg. For the first time, detailed
targets on solar power were introduced in this legal document: capacity of
850 MW by 2020, 4,000 MW by 2025, and 12,000 MW by 2030; and share of solar
power in total power generation to about 0.5% by 2020, 1.6% by 2025, and
3.3% by 2030.3
Draft decision on solar power development
On 11 May 2016, with the presence of Deputy Prime Minister Trinh Dinh Dung,
key government officials met to discuss the draft decision to be promulgated
by the Prime Minister on the mechanisms to support solar energy development
(the "Draft Decision").4 If the Draft Decision is adopted, this will be the
first ever solar energy-specific regulation with detailed guidelines and
incentives for the industry to be promulgated in the Vietnamese legislation
system. At present, regulations on solar power are only incorporated in the
general laws on energy, environment and renewable energy projects (e.g., Law
on Electricity No. 28/2004/QH11 dated 03 December 2004; Law on Environmental
Protection No. 55/2014/QH13 dated 23 June 2014; Decision on Development
Strategy for Renewable Energy by 2030 with a vision to 2050 No. 2068/QD-TTg
dated 25 November 2015).
The third version of the Draft Decision, which applies to power generation
projects using photovoltaic (PV) method,5 grants investors incentives
existing under current laws, such as:
Allowing investors to raise capital onshore and offshore to invest in solar
power projects,6 and solar power projects shall enjoy preferences regarding
State investment credit and export credit under current laws.7 At present,
the maximum loan amount for each project (from the Vietnam Development Bank)
is 70% of the total investment and the loan term is maximum 12 years. The
preferential loan interest rate will be applicable.8
Exemption from import duties for imported goods forming the fixed assets of
the projects, raw materials, supplies and semi-finished products not
available in Vietnam.9
Exemption or reduction on corporate income tax in accordance with investment
incentives applicable for projects falling into investment incentives under
existing tax laws.10
Solar power projects, transmission lines and substations connected to the
national grid shall also enjoy exemption or reduction in land use fees and
land rent in accordance with incentives applicable for projects entitled to
investment incentives.11
Purchase price
With respect to solar power projects connected to the grid:
Under the third version of the Draft Decision, the Electricity of Vietnam
(EVN) or its authorized units is responsible for purchasing all electricity
produced from solar power projects at the price of 11.2 US cents/kWh (which
is the average of VND 1,800/kWh (around JPY 8.89/USD 0.8) and VND3,500/kWh
(around JPY17.29/USD0.16), respectively, the minimum and maximum regular
electricity rates prescribed under Decision No. 28/2014/QD-TTg on the
structure of electricity retail tariff dated 07 April 2014). This rate only
applies to the solar power projects connected to the grid having solar cell
efficiency higher than 16% and capacity less than 100 MW.12
With respect to solar power projects installed on roofs:
For solar power projects installed on roofs and connected to the grid, the
excess energy shall be purchased by EVN or its authorized units at the rate
of VND 3,150/kWh (VAT excluded) (around 15 US cents). The price shall be
adjusted according to fluctuations in the exchange rate between the
Vietnamese Dong and the US Dollar.13
During the 11 May 2016 meeting, Deputy Prime Minister Dung requested the
Ministry of Industry and Trade (MOIT) to consider the experience of other
countries in establishing incentives for solar power development to learn
from their experience. He also advised the MOIT and local authorities to
identify areas for development of renewable energy resources in their
planning to avoid conflict with other plans. With solar energy's untapped
yet promising potential and investors flocking in this sector, it seems that
the government is very keen to have this draft decision adopted immediately.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.mondaq.com/article.asp?articleid=555570&email_access=on&chk=20840
72&q=1528502
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Subscribe to:
Posts (Atom)