Beyond the Climate Crisis: A Critique of Climate Change Discourse
Beyond the Climate Crisis: A Critique of Climate Change Discourse
Eileen Crist
The Dominant Framing of Climate Change
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ince the turn of the twenty-first century, breakthroughs in climate-change science and modeling, coupled with observable and measurable climate effects, have shifted the understanding of anthropogenic climate change into a solid epistemic and experiential terrain. There is no longer even a semblance of a debate about the reality of global warming, its causes, and the climate change it has effected and portends.1
But even as climate change has exited the realm of hypothesis and entered that of fact, uncertainties about its potential consequences are legion. As political scientist Karen Litfin notes, “uncertainties revolve around the timing and the degree of anticipated climate [change], not whether climate change will occur.”2 Indeed, proposed predictions in scientific papers, policy reports, and popular books are largely rendered with qualifiers of possibility or probability. Consider, for example, the sizable ranges of anticipated (say, by the year 2050) rates of carbon dioxide increase, average temperature increase, sea-level rise, frequency of hurricanes, changes in ocean acidity, or shifts in precipitation patterns.3 The intricacies of forecasting climate and weather patterns, coupled with difficulties of foreseeing how humanity will respond in the next decade and beyond, have generated climate-change scenarios that range from the controllable to the catastrophic.
Beneath numerous uncertainties lies a huge unknown: somewhere between manageable and calamitous climate change, there exist “tipping points,” which no one can pinpoint with certainty or promise that we have not already crossed. Tipping points refer to climate-forcing thresholds beyond which changes are unleashed (such as extreme heating, rising sea levels, and others) that we would be unable to resist or reverse.4 Science writer Eugene Linden uses the metaphor of the “switch” to convey the idea of the tipping point. “While we’ve tended to comfort ourselves by thinking that climate change is like turning a dial,” he explains, “the reality is that shifts in climate are more like flicking a switch.”5
Looming tipping points have taken hold of the minds of those knowledgeable enough to understand that the consequences of overstepping them—such as the maps of the world being redrawn or large-scale societal collapse—are real possibilities that demand preemptive action.6 The fact that events are happening faster than anticipated (for example, glaciers and ice sheets melting, and forests and permafrost releasing carbon) has only added shrillness to pleas of urgency. The longer that greenhouse gases continue to be unloaded into the atmosphere, the more likely that worst-case scenarios become. This inference is based on the best science available about climate change—especially what is known about the correlation between carbon dioxide levels and temperature, and what has been gleaned from the geological record about previous episodes of climatic upheaval. It is, therefore, not surprising that writings on climate change, as well as a growing campaign to slow it down, exhibit a tone of urgency that exceeds even the dire forecasts of the “limits-to-growth” environmental thinking of the 1970s. While the limits-to-growth paradigm warned of a world doomed to collapse by exhausting needed resources of human livelihood, climate-change discourse anticipates large-scale breakdown from overfilled sinks unable to absorb the by-products of industrial civilization.7
The increasing probability of worst-case scenarios materializing—as long as the proverbial business-as-usual is maintained—has bolstered a particular framing of climate change: its identification as the most urgent environmental problem of our time. Consider some high-profile examples in the literature. In a widely read essay, Michael Shellenberger and Ted Nordhaus proclaimed “the death of environmentalism” on grounds that the environmental movement and its professional representatives were unable to avert “the world’s most serious ecological crisis,” global warming.8 In her manifesto of individualist activism, The Solution is you, Laurie David claims that “global warming is threatening that fragile shell [i.e., the atmosphere] and has now become the most urgent problem of our life-time.”9 “We are at the end of our tether, and the rope, whose weave defines our fate, is about to break,” James Lovelock warns in his latest work. “Humanity,” he tells us about climate change, “faces its greatest trial.”10 Throughout this work, Lovelock maintains that “global heating” (as he prefers to call global warming) is threatening civilization itself.
Tim Flannery agrees with him. “If humans pursue a business-as-usual course for the first half century,” he is willing to state, “I believe the collapse of civilization due to climate change becomes inevitable.”11 Ross Gelbspan gave the same forecast earlier yet: “[T]he intricate fabric of interrelationships that constitute society would be ravaged in proportion to the magnitude of the disruptions. . . . [S]uch a blow to our highly complex institutions . . . would mean that everything our civilization has accomplished to this point would become basically meaningless.”12 In a similar vein, Al Gore issues “dire warnings of the worst potential catastrophe in the history of human civilization: a global climate crisis that is deepening and rapidly becoming more dangerous than anything we have ever faced.”13 In his latest book, Bill McKibben echoes the dominant framing of climate change as the major issue of our time, calling it “the biggest problem the world faces.”14 NASA scientist James Hansen strikes a similar note throughout his writings, as when he writes: “The crystallizing scientific story [of global warming] reveals an imminent planetary emergency. We are at a planetary tipping point.”15
Notes:
1 Regarding scientific consensus about climate change, see Naomi Oreskes’s 2004 landmark study, “Beyond the Ivory Tower: The Scientific Consensus on Climate Change,” Science 306, no. 1686 (December 3, 2004). See also a popular article by Bill McKibben, “The Debate is Over: No Serious Scientist Doubts that Humans are Warming Up the Planet,” Rolling Stone, November 3, 2005. Virtually every issue of Science and Nature in the last two years has contained an article about global warming. Scientific publications no longer defend the reality of anthropogenic climate change but, taking it for granted, report on its different dimensions. For an analysis of the persistent disconnect between the American public’s perception of a “debate” and the factual status of climate change for scientists, see Eugene Linden’s “The Tides of Public Opinion,” chap. 18 of Winds of Change: Climate, Weather, and the Destruction of Civilizations (New York: Simon & Schuster, 2006), pp. 219–29. .
2 Karen Litfin, “Environment, Wealth, and Authority: Global Climate Change and Emerging Modes of Legitimation,” International Studies Review 2, no. 2 (Summer 2000): 136 (emphasis in original).
3 For an up-to-date summary of climate-change science data, see the 2007 Intergovernmental Panel on Climate Change (IPCC) report, “Climate Change 2007: The Physical Science Basis: Summary for Policymakers,” available online at the IPCC website, http://www.ipcc.ch/. I will not cite quantitative data in this paper, as they are not directly relevant to my argument. Tim Flannery does an excellent job of integrating quantitative predictions in The Weather Makers: How Man is Changing the Climate and What it Means for life on Earth (
4 The concept of the tipping point is connected with the emergent understanding of the non-linear nature of climate forcings, which implies that once a threshold (or thresholds) is (are) overstepped, conditions jump to (possibly hostile) new states after a period of chaos or upheaval. The “tipping point” largely involves one causal variable: namely, an (unspecifiable) threshold of carbon-loading the atmosphere, beyond which gigantic and unstoppable consequences ensue. There is no shortage of such potential consequences emerging from climate models or informed speculation. The possible shutting down of the “thermohaline circulation” (a portion of which is better known as the
5
6 “If we push the climate system hard enough, it can obtain a momentum,” Hansen warns, “it can pass tipping points, such that climate changes continue, out of our control. Unless we begin to slow down the human-made forcings, there is the danger that we will create a different planet, one far outside the range that has existed in the course of human history.” James Hansen, “Political Interference with Government Climate Change Science,” testimony to the Committee on Oversight and Government Reform, U.S. House of Representatives, March 19, 2007, p. 10, available online at http://oversight.house.gov/documents/20070319105800-43018.pdf.
7 Classic limits-to-growth works are Donella Meadows et al., limits to Growth: A Report for the Club of Rome’s Project on the Predicament of Mankind (New York: Universe Books, 1972), and Paul Ehrlich’s The Population Bomb (New York: Ballantine, 1971), which predicted that the events of catastrophic exhaustion of nonrenewable resources and human population exceeding carrying capacity were decades away. The emergence of ozone depletion and global warming in the 1980s and 90s contributed to shifting environ-mental discourse away from fears of overshooting the resource base to consequences of global waste products exceeding the planet’s sinks, resulting in the breakdown or disequi-librium of the Earth system.
8 Michael Shellenberger and Ted Nordhaus, “The Death of Environmentalism,” September 29, 2004, p. 6, available online at the Heartland Institute website, http://www.heartland.org/Article.cfm?artId=16188.
9 Laurie David, The Solution is you! An Activist’s Guide (Golden, CO: Fulcrum, 2006), p. 2.
10 James Lovelock, The Revenge of Gaia: Earth’s Climate in Crisis and the Fate of Humanity (
11 Flannery, The Weather Makers, p. 209.
12 Ross Gelbspan, The Heat is on: The Climate Crisis, the Cover-Up, the Prescription (Reading, MA: Perseus, 1998), p. 173.
13 Al Gore, An Inconvenient Truth: The Planetary Emergency of Global Warming and What We Can Do About It (
14 Bill McKibben, Deep Economy: The Wealth of Communities and the Durable Future (
15 James Hansen, “State of the Wild: Perspective of a Climatologist,” forthcoming, available online at http://www.giss.nasa.gov/~jhansen/preprints/Wild.070410.pdf.
to be continued…
Courtesy: TELOS
The Future of Liquid Biofuels for APEC Economies (part – II)
Continued from Volume V, Issue No. 2…
Current Status of Biofuels Development in the APEC Region
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PEC's 21 Member Economies include Australia; Brunei Darussalam; Canada; Chile; People's Republic of China; Hong Kong, China; Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; The Republic of the Philippines; The Russian Federation; Singapore; Chinese Taipei; Thailand; United States of America; and Viet Nam. Together, these economies account for approximately 41% of the world's population, 56% of world GDP and 49% of world trade.
Accounting for about 60% of world energy demand, the APEC region is a net energy importer with its annual consumption exceeding domestic production. Energy imports to APEC economies are projected to increase by approximately 92% between 2000 and 2020 driven by economic growth, industrialization, and urbanization. According to the
The biofuels industry in the APEC region consists of two distinct sectors, ethanol and biodiesel. Biofuels received a lot of attention from the public, academia, industry, and government in 2006 and 2007, making it an important time for biofuels development in the region. During this period, many goals and targets were announced, pilot projects began, and capacity expansion commenced. This chapter is an overview of the status of biofuels activities in the region during this time frame.
Production
The APEC region accounted for about 40% of the world fuel ethanol production in 2006, reaching 20,600 million liters - the majority (90%) was supplied by the
Table 3 Ethanol Production in APEC Economies
Production in million liters; * Fuel, industrial and potable; N/A - Information not available; E - Estimate
Sources: SRI Consulting, 2008; F.O. Licht 2007; DRET
Biodiesel production in the APEC region was close to 2,000 million liters in 2006, supplying 32% of the global biodiesel production (Table 4). The major biodiesel producers in the region are the
Indonesia and
Moreover, increasing vegetable oil prices have a negative effect on the biodiesel development in economies such as
Table 4 Biodiesel Production in APEC Economies
Production in million liters; E - Estimate; N/A - Information not available
Source: SRI Consulting, 2006; F.O. Licht 2008; DEDE Thailand; ITRI Chinese Taipei; DRET Australia; NDRC China; KEEI Korea
Figure 3 Price of Major Vegetable Oils
Source: FAPRI, April 2008
Installed biofuels production capacity in the APEC region was about 44,000 million liters in 2006-2007. Ethanol accounts for 71% of the total capacity, with the
Figure 4 Installed Biofuels Production Capacity in APEC Economies, 2006-2007
The
It is evident from Figure 4 that most of the APEC economies have invested in biodiesel production. For some (such as
to be continued…
Courtesy: Asia-Pacific Economic Cooperation
NEWS BRIEF
NATIONAL
OIL & GAS
Upstream
Peru, RIL agree to joint exploration deal
July 8, 2008.
Cairn wins exploration block in Sri Lanka
July 7, 2008. Cairn
The Block SL 2007-01 -001, which is offshore North West Sri Lanka, and covers about 3,000 square km in water depths of 200 meters to 1800 meters was awarded to Cairn India in the recent Sri Lanka bid round. The work program includes proposals to acquire 5,000 square km of 2D, 1,000 square km of 3D seismic and drill three wells in the initial three years of the eight year exploration period.
Cairn Lanka Pvt. Ltd., a wholly owned subsidiary of Cairn
OVL to bid for exploration blocks in
July 4, 2008. ONGC Videsh Ltd. (OVL), the overseas arm of ONGC, has been short-listed to qualify for the deepwater blocks by the Angolan Authorities. Petroleum Minister, Murli Deora, proposed that OVL and
Deora would write to his counterpart in
The bids are likely to be invited after elections later this year. In addition to the cooperation in the oil and gas sector, Deora offered Indian assistance to
India set for oil hunt in Canadian oilsands
July 4, 2008.
The secretary said that
Iraq shortlists OVL to develop oil fields
July 2, 2008. ONGC Videsh, the overseas arm of Oil & Natural Gas Corp. (ONGC), is one of 41 global oil companies short-listed by the
Iraq plans to offer various short- and long-term contracts to global oil companies through which it hopes to increase oil production to 4.5 mn barrels per day (bpd) by 2013 from the current 2.5 mn bpd. This is around 3% of total world production.
China's Sinopec and CNPC are among the other short-listed companies. ExxonMobil, Shell, BP and Total are among others that have already been given contracts to develop several of
RIL in talks for Chevron's Kenya,
July 7, 2008. Reliance Industries is learnt to be in talks to acquire some downstream assets of the
Chevron’s assets in Africa include over 1,500 fuel stations, refining assets, terminals and depots in countries like
Of these, Chevron may exit from East African markets like
From
RIL has closed down its
Essar still in race for
July 7, 2008. Essar Oil is still in the race to acquire a 50% stake in Kenya Petroleum Refineries (KPRL). The Kenyan government is still evaluating Essar’s proposal on the refinery as the government has not taken any firm decision for the same. Essar Oil may, however, have to match the offer made by Libyan oil firm Tamoil, which is a strong contender and has been lobbying hard with the Kenyan government.
Earlier, this year Essar Energy Overseas, a subsidiary of Essar Oil had entered into an agreement to acquire 50% of Kenya Petroleum Refineries (KPRL), a 4 mmtpa refinery in
Under the agreement, Essar was to acquire the stake from existing shareholders including Shell Petroleum Company, Chevron Global Energy and BP Africa, subject to government approvals.
The government of
Last year
RIL and GAIL to set up petrochem unit in
July 3, 2008. Reliance Industries and GAIL India will mount a pitch with
Indian unit is being planned at Vizag in Andhra Pradesh along with Total of France, Hindustan Petroleum Corp Ltd, Mittal Energy, Oil
Ineos, Mitsubishi plans to pick up stake in Dahej project
July 3, 2008. Various companies including foreign firms, is in interest to pick up a stake in ONGC Petro Additions (OPaL), ONGC's mega petrochemical complex in Dahej,
GEI Industrial secures order from Essar
July 3, 2008. GEI Industrial Systems Ltd (GEI) bags yet another order for supply of Air Cooled Heat Exchangers from Essar Construction India Ltd for the Essar Refinery Expansion Project coming up in Vadinar (
Besides this GEI received orders for these equipments from Indian Oil Corporation Ltd for Haldia Refinery and from Larsen & Toubro Ltd, Mumbai for Hindustan Petroleum Corporation Ltd for Mahul Refinery in Mumbai.
This is the second order bagged by GEI from Essar Construction (
Transportation / Trade
RIL, GAIL apply for gas retail licence
July 8, 2008. Reliance Industries,
RIL and GAIL India, through their wholly-owned subsidiaries Reliance Gas Corporation and GAIL Gas, have submitted expressions of interest to the Petroleum and Natural Gas Regulatory Board for cities, including
Setting up gas infrastructure in these cities would involve an investment of around Rs 48,000 crore (around $11.5 bn) over the next 4-5 years. Reliance Gas has given EoIs for 54 cities and GAIL Gas has shown interest in eight cities. Except for two cities,
According to the regulations for city gas distribution approved by the regulatory board in March this year, licences for all the 60 cities will now be put up for bidding. The company that wins the bid will get the right to lay pipeline networks and retail gas to households and vehicles in that city.
Industry experts are, however, worried by the limited number of players that have shown interest in city gas projects so far. The limited response may be due to the strict bidding criteria with the PNGRB making it mandatory for bidding companies to have a source of gas that will feed the cities. Both Reliance Gas and GAIL Gas have access to gas.
Indian Oil Corporation, the country's largest crude oil refiner and marketer of petroleum products, is also planning to bid for city gas licences. The PNGRB is satisfied with the response so far. According to the board, it will not identify any city on its own for bidding, something it had earlier planned. In the last 15 years 22 cities have been covered.
PNGRB will give time until the end of the month for public consultation on the expressions of interest for these cities. The board will then put up for bidding the rights for gas distribution in another 15 days. The bidding process will start by the middle of August and end by mid-October.
Oil boom to fuel Varun Shipping’s revenues
July 8, 2008. Varun Shipping Company, the country's largest carrier of sea-borne LPG cargo, plans to earn at least a third of its revenue from chartering anchor handling and tug service vessels, helped by high crude oil prices that are inducing a demand for oil exploration.
The company, which earns a fifth of its revenue from offshore services, expects the boost as it plans to invest $300 mn to buy vessels for offshore marine services and crude oil transportation. The Mumbai-based company reported Rs 672.6 crore ($155.4 mn) of revenue from operations in 2006-07, of which it earned around 55 per cent from LPG transportation and 25 per cent from crude oil and petro-products transportation.
The remaining 20 per cent of the revenue came from offshore marine services. With 11 LPG carriers, Varun Shipping owns 80 per cent of the LPG tonnage in the country and has a market share of over 70 per cent of the LPG cargo.
Currently, it owns three crude oil tankers, one oil products tanker and five anchor handling and tug supply vessels (AHTS) used for offshore services. The company's AHTS is used for deep-water exploration for clients such as public sector oil explorer Oil and Natural Gas Corporation and private sector explorer Reliance Industries. The company believes that opportunity lies in deep water as most of the shallow-water fields are already explored.
BPCL in pact with Kenyan firm for LPG bottling plant
July 5, 2008. Bharat Petroleum Corporation Ltd has entered into an equal joint venture with the Kenya Pipeline Company Ltd for setting up an LPG bottling plant in
The initial investment in the project is expected to be around $15 mn and will be funded through a 70:30 debt equity ratio. With
The country is setting up a 500-km pipeline connecting Mombassa and
OVL caught in Russian bear hug
July 3, 2008.
Russia wants the marketing rights for the gas produced from Sakhalin-1 to remain with OAO Gazprom (
Exxon Neftegas Ltd is the operator that runs the Sakhalin-1 block, which is owned by a consortium of Exxon Mobil Corp. (30% stake), Sodeco of Japan (30%), Russia’s RN-Astra (8.5%) and Sakhalinmorneftegas-Shelf (11.5%) and OVL (20%).
If
Russia has the largest proven gas reserves (48 trillion cu. m) in the world, accounting for 27% of total proven global reserves. Gazprom controls around 94% of
In return for its $1.7 billion (Rs7,361 crore) investment in the Sakhalin-1 project, OVL gets 2-4 mt of crude oil and will get 5-8mscmd of gas a year. It sells the crude in the international market, but it has not figured out what to do with the gas it will soon get.
Given the soaring price of crude and all products derived from it, energy resource rich
Russia’s stance comes as a blow to
Policy / Performance
Niko seeks govt nod to pledge KG Basin stake to raise $550 mn
July 8, 2008. Calgary-based Niko, a partner in RIL-operated D-6 block in the KG Basin, has sought the government’s permission to pledge its participating interest in the block to raise $550 mn. Niko holds 10% participating interest in the gas-rich D-6 block, with the balance 90% stake in the block with Reliance Industries. The consortium is spending $8.8 bn in developing the field expected to produce 80 MMSCMD of gas during its peak.
Niko needs the government approval as per the production-sharing contract (PSC) for D-6 block. While the PSC allows contractors to raise loan by mortgaging or pledging their participating interest, it is mandatory for the company to take government consent in this regard.
The government also approves the list of potential lenders. Niko has mandated Societe Generale (SG) of the
The company appointed SG as mandated lead arranger (MLA) and was allowed to syndicate the entire financing of $550 mn. SG was chosen as the overall cost (the fee charged and the rate of interest offered) was lowest compared to all the banks.
It assured to complete the syndication process in an agreed time frame and SG has a branch presence in the country, i.e., it is an RBI registered bank. The company involved foreign banks as Indian banks (other than ICICI Bank) were not willing to commit to the huge funding on competitive terms.
The company observed that many domestic banks have the reserve-based lending experience and were not comfortable lending to exploration & production (E&P) sector at this scale.
A pot shot at global financial institutions on oil price rise
July 7, 208. The Prime Minister, Dr Manmohan Singh, has taken the international finance institutions to task for not performing their duty to alleviate the problems caused by high oil prices. He said they needed to do more to help nations deal with the consequences of high prices.
He said they were far less active than was the case in the two previous oil shocks of 1973 and 1979. He is of the view that instability and volatility in oil prices are neither in the interest of producers nor in the interest of consumers. He stressed the need to create a forum where producers and consumers sit together and work out the modalities to introduce a greater element of stability.
India should press for price band in crude oil
July 5, 2008. Developing countries, including
According to the ASSOCHAM Business Barometer (ABB) survey, 83% of the business leaders agree that
Rising crude oil prices are mainly due to a combination of factors like weakening of the dollar, speculation, rising demand from emerging economies, geopolitical issues, supply constraints and pressure on US refiners to increase production of new gasoline.
On the issue of record oil prices hurting economic growth, 88% of the CEOs feel that it is essential to create a mechanism where oil prices should maintain a steady pace rather than huge jumps in prices.
As many as 77% of the corporate heads feel that oil consuming nations should stress on maximum oil conservation. Also, they need to step up investments in renewable sources of energy. Around 82% of the respondents feel that the oil consuming nations should form a syndicate for collective bargaining to strengthen their position in the global crude oil market. Around 76% of the participants feel the need for more transparency and supervision of institutional investors in commodities markets to curb speculation. Oil consuming nations are facing social unrest due to soaring oil prices.
It is impacting their growth with higher inflation and unemployment rates forcing the major central banks to hike interest rates, says the ASSOCHAM survey. Some 68% of the ABB participants feel that the under developed but oil rich nations such as
Govt to review fuel prices in October
July 3, 2008. According to Petroleum Ministry, the Government will need to increase fuel prices at least once more this year. The Centre is expected to review domestic fuel prices in October. The country's demand for crude oil was likely to rise 5-6% in the current fiscal year and valued the nation's oil imports this year at $110-120 bn, up 76% from last year.
In 2007-08,
The global oil industry requires investment of $150 bn per year during the next 15 years. Planning Commission said that the nation should be ready for "high oil price regime" amid a continuous surge in global crude prices.
‘
July 3, 2008.
Market analysts and political commentators, particularly in the US, have in recent times blamed growth in fuel demand in India and China for the record crude prices of over $143 but Deora said growth in consumption in India was lower than many of the heavily subsidised nations. High rates of economic growth in the two countries are a significant factor in ensuring stable and orderly growth of the world economy as a whole in the rapidly globalising world.
GSPC to pump in $100 mn in 11 new blocks
July 2, 2008. Gujarat State Petroleum Corporation (GSPC) has emerged as provisional winners in as many as eleven blocks in the seventh round of New Exploration Licensing Policy (NELP VII). The state PSU is aiming to pump in over $ 100 mn (Rs 400 crore) initially for exploration of these blocks eight of which are offshore.
In all 96 companies submitted bids for the 45 blocks, with 19 of them receiving single bids and 26 others attracted multiple bids. Of the offshore blocks, GSPC has bagged one block in KG Basin which is adjacent to its existing block KG-17 well, which is one of the most significant discoveries for the company.
The company had for the first time struck oil and gas in the same well. The PSU has so far struck gas in three wells KG-8, 15 and 16 in the block. Of the eight offshore blocks, GSPC has bagged three in Mumbai and two potential blocks in Cambay basin. The company has pumped in over Rs 2000-2,500 crore ($463 – 579 mn) on exploration of KG Basin in the last one year or so. ONGC-GSPC have bagged three deepwater blocks and GSPC consortium has won one on-land block.
Also, GSPC with ONGC as partner has won one block in Kerala-Konkan region. The company is also planning to hit the capital markets by coming out with an IPO by September this year. The public offer is to part-finance the proposed development of GSPC's Deendayal gas field (KG-OSN-2001/3) in KG Basin. GSPC along with Adani has also announced plans to build a 5-10 mtpa liquefied natural gas (LNG) terminal at Mundra port by 2013.
India and
July 2, 2008.
In respect of approving development plan for Farsi block with ONGC Videsh Ltd as operator (40%) and Indian Oil Corporation (40%) and Oil India Ltd (20%) other partners, the
In addition, GAIL conveyed its interest in setting up petrochemicals projects in
POWER
Generation
NTPC-Bhel JV to invest $1.3 bn in new unit
July 8, 2008. NTPC-BHEL Power Projects (NBPPL), a 50:50 JV between NTPC and BHEL, will invest Rs 6,000 crore ($1.38 bn) to set up a power equipment manufacturing facility that will churn out boilers and turbines equipped to charge up 5,000 MW of greenfield thermal capacity by calendar 2013.
In the first phase, the company will vie for engineering procurement and construction jobs for power plants in
The location of the plant, however, has not yet been finalised. The company has been incorporated in Noida with an initial equity base of Rs 5 crore ($1.15 mn). The Rs 6,000 crore ($1.38 bn) investment plan is likely to be funded on a 70:30 debt equity ratio.
Given the holding pattern, where each promoter holds 50%, BHEL and NTPC may have to each pump in Rs 900 crore ($208 mn) of equity into the company. The balance Rs 4,200 crore ($1 bn) will be mobilised as debt.
BHEL bags order from APGENCO
July 7, 2008. Bharat Heavy Electricals Ltd has reportedly won Rs 25 bn order from Andhra Pradesh Power Generation Corporation Ltd. (APGENCO) to provide boilers for a 1,600 MW power project in the southern state. BHEL outbid the joint venture of Larsen & Toubro and Mitsubishi Heavy Industries (L&T-MHI) to clinch the order.
This order comes close on the heels of BHEL losing the contract for the supply of turbines and generators for the same project to L&T-MHI. BHEL would design, manufacture, supply, erect and commission the main plant equipment with associated auxiliaries, balance of plant and electrical and civil works.
Greenko to acquire 4 hydro power projects
July 5, 2008. Greenko Group has signed an agreement to acquire four hydro power projects in Karnataka, and will invest €36 mn. The four hidel projects include, the Sonna 10.5 MW, Kallur 16 MW, Joladadagi 16 MW and the Dinnekere 2 MW plants.
The new assets would increase Greenko's total projects under development from 102 MW in April to 146.5 MW. Along with the company's existing 90.5 MW secured installed capacity, the new projects will give Greenko a total capacity of 237 MW. Once these projects are operational, it is likely that its total portfolio would generate over 800,000 tons per annum of Certified Emission Reduction units (CERs). The plants would sell electricity to the Karnataka state grid under a long term Power Purchase Agreement with Hubli ESCOM.
Ispat to build 1.98 GW Jharkhand power unit
July 4, 2008. Ispat Industries Limited has signed a memorandum of understanding (MoU) with the Jharkhand government for a 1980 MW coal-based power plant having six units, each with a capacity of 330 MW at Govindpur-Kara area in Khunti district with an investment of Rs 8,000 crore ($1.8 bn).
The MoU was signed by the Ispat Industries and the state government. Ispat would need 2,000 acres for setting up the power plant. Jharkhand assured help to expedite the process of land acquisition and coal block allocation.
EMCO plans to build 600 MW plant in Chhattisgarh
July 3, 2008. EMCO is planning to build a 600 MW coal-fired power generating plant in Chhattisgarh. This is the second such project from EMCO. EMCO has already signed an agreement with the Chhattisgarh government to build the Rs 24 bn project through an equal joint venture with a Kolkata-based steel trading firm.
The company is talking to the Chhattisgarh government for fuel linkages and will then work out the structure of the joint venture. EMCO is building a 270 MW, Rs12.4 bn power project in
Punj Lloyd wins $261 mn contract from GVK Power
July 3, 2008. Punj Lloyd has been awarded Rs 10.05 bn ($261.25 mn) contract by GVK Power (Govindwal Sahib) Ltd.,
Work on the project is expected to be completed by mid 2011. This is another prestigious order won by the company after the Rs8.23bn project from Rajasthan Vidhyut Utapadan Nigam Ltd., Jaipur for building 2 x250 MW Chhabra Thermal Power Station, Rajasthan on EPC basis.
Transmission / Distribution / Trade
ICSA bags order for building rural electricity infra
July 7, 2008. Technology solutions provider in power sector ICSA India has bagged Rs 79.88 crore ($18.49 mn) contract from Ajmer Vidyut Vitran Nigam for providing electricity infrastructure in Banswara District of Rajasthan.
The company has secured work order for a total contract value of Rs 79.88 crore ($18.49 mn) from Ajmer Vidyut Vitran Nigam for providing rural electricity infrastructure under Rajiv Gandhi Gramin Vidyutikaran Yojna in Banswara district on turnkey basis.
L&T bags $103 mn order from JSW Power
July 7, 2008. Larsen & Toubro Limited (L&T) has secured an order valued at Rs4.46bn ($103.2 mn) from JSW Power Transco Limited. The contract is for evacuation of power from the 1200 MW Power project being set up JSW Energy (Ratnagairi) Limited at Ratnagiri in Maharashtra.
The Jaigad-karad and Jaigad-New Koyna 400 Kv Transmission lines, totaling 169 km, will be executed by the Transmission Line Business Unit of ECC-L& T Construction division1. The scope of work involves survey, supply of oil components like transmission line tower members, conductors, insulators, hardware accessories of the line across the two sections. The company has bagged this contract against stiff domestic competition and the project is to be completed in 18 months.
Coal
July 8, 2008. Coal India Ltd is in the process of identifying global agencies for drilling indicative coal reserves in the country. At the moment, CIL drills around two lakh metres a year, which it plans to double in the current fiscal. For this, a global tender would be floated soon. Central Mining and Planning Design Institute or CMPDI has the technology to drill four lakh meters a year.
CIL is planning to drill 10 lakh meters annually for the next three years till 2012, which would help to prove most of the available reserves. The total coal reserves in the country were 257 billion ton with only 99 billion ton are proven. To meet the future demand CIL needs to bring more and more indicated reserves into the proven category.
Meanwhile, the deadlines for the fuel supply agreements (FSA), initiated by CIL under the New Coal Distribution Policy (NCDP), might be extended, largely on account of the lukewarm response from most of the power companies.
CIL introduced a trigger in the FSA, which is fixed at 60 per cent and 50 per cent of the contracted order for the existing and new customers respectively.
The trigger level was minimum on which both the consumer and the supplier under the contract were bound to buy and supply respectively, failing which penalty would be levied. CIL had nearly 1,100 linked customers and almost all had FSAs. The remaining 200 customers account for the largest of the buyers comprising mostly the power sector companies.
‘Develop abandoned coal mines to get new ones’: Govt
July 8, 2008. In a unique move, the Jharkhand government issued special instructions to all the three Coal India Limited (CIL) subsidiaries operating in the state, warning that it would block all coal mine proposals forwarded by them unless they redeveloped and converted their abandoned mines into productive assets like tourist spots through construction of infrastructure like public parks, stadiums and play grounds. The Jharkhand government felt that the move would also help check the activities of illegal coal miners who did business by exploiting residual coal deposits at the abandoned mines.
The government issued this diktat to the three state-owned coal companies- Eastern Coalfields Limited (ECL), Bharat Coking Coal Limited (BCCL) and the Central Coalfields Limited (CCL). There were a large number of abandoned mines, and sources most were under CCL. Many of the mines were abandoned prior to 1986.
Damodar
July 7, 2008. Damodar Valley Corporation (DVC) is weighing a joint venture proposal from West Bengal Power Development Corporation Ltd (WBPDCL) for acquisition of thermal coal assets abroad. While WBPDCL is the state generation utility, DVC is promoted by the Centre and the state governments of
The state agency, having an installed capacity of 2,820 MW, is currently consuming approximately 12-23 mt of coal annually of which approximately five per cent is imported for blending with local coal. Imports may go up further once WBPDCL installs the additional 1,270 MW capacity at its existing power stations during the next couple of months.
While the generation capacity will move up to approximately 4,100 MW, the annual requirement of coal will increase to 17 mt. The corporation is currently implementing a number of projects to augment the total capacity from 2,200 MW to 9,000 MW by the end of this Plan period. All the projects are in different stages of implementation.
CIL lines up $347 mn to set up washeries
July 7, 2008. Coal
The average ash content in Indian coal hovers around 35 to 38 per cent. Washing helps reduce it by about 7-8 per cent. The company would set up the washeries in association with private agencies on built-operate-maintain model. While construction cost for the washeries would be borne by CIL, the maintenance part would be taken care of by the agencies. CIL plans to wash at least 50 per cent of its coal, which are not used at pitheads, and later go for complete washing of all varieties.
‘Develop coal technology for eco-friendly energy’: MoP
July 5, 2008. A national technology initiative to develop coal technologies for eco-friendly energy generation is the need of the hour, according to Mr Jairam Ramesh, Union Minister of State for Commerce and Power.
The Power Ministry (MoP) would take necessary action in this regard and propose the setting up of a national centre for coal technology, preferably at the Indian Institute of Chemical Technology (IICT) in
The minister said, the time has come to launch a major technology initiative in harnessing coal for energy by roping in scientific institutions, corporates such as National Thermal Power Corporation and Bharat Heavy Electricals Ltd in a public-private partnership model.
He said, being the third-largest producer of coal in the world,
UPPCL to replace bulbs with CFLs
July 3, 2008. Uttar Pradesh Power Corporation Ltd (UPPCL) is moving ahead with its clean development mechanism (CDM) project, under which domestic incandescent bulbs in the state will be replaced with high-tech compact fluorescent lamps (CFL).
While this ambitious lighting efficiency project based on the public-private partnership (PPP) model will go a long way in bridging the peak hour demand and supply gap, it will save an estimated 2,000 MW daily for the power-starved state. It will also reduce carbon emission substantially and promote cleaner energy technology.
UPPCL has entered into an agreement with two companies viz., CantorCO2 India Private Limited, Mumbai, and Banyan Environmental Innovations Private Limited,
These stakeholders' consultants are likely to earn about 2 million carbon credits once the project goes full steam considering that UPPCL has 9 million domestic and commercial consumers in UP.
The project will also be registered with the Executive Board of a United Nations body, UN Framework Convention for Climate Change. The high-tech 20 watt CFLs would have a higher power factor of 0.85, which will results in lower wastage of energy than normal CFLs available in the market. Besides, these CFLs would sell for Rs 10-12 a piece, much cheaper than the ones available and they will have a minimum burning life of 6,000 hrs.
An estimated 12 million incandescent bulbs will be replaced under the project and the total cost of the project is pegged at over Rs 100 crore ($23.1 mn).
17 companies bid for development of Coal
July 2, 2008. Around 17 companies from India and abroad have submitted their bids to Coal India Ltd for the development and operation of high capacity underground mines in seven virgin blocks in India on long-term basis. The blocks spread over West Bengal, Jharkhand, Orissa, Madhya Pradesh, Chhattisgarh and
Reliance Natural Resources Ltd (RNRL) (along with a foreign partner), Essar Mineral Resources and Essel Mining are the three prominent Indian companies that have expressed interest in the projects.
Reliance Power to speed up Sasan project commissioning
July 2, 2008. Reliance Power Ltd would expedite the commissioning of the six units of its Sasan ultra mega power project by 16 to 36 months. The first unit of 660 MW, according to the power purchase agreement, should be commissioned by May 2013. However, the commissioning has been advanced by 16 months to December 2011. The final unit, which was to be commissioned by April 2016, would be online by March 2013.
The company has also written to the Power Grid Corporation requesting grid synchronisation to be advanced by six months from the date of commissioning.
The project has been fast-tracked by awarding critical EPC contracts to the group company Reliance Infrastructure Ltd by which Reliance Power will have greater control over the project. The mine development plan, which usually takes two years to finish, has been completed in seven months.
The company has roped in North American Coal Company as the strategic partner for coal mine development of the project. The project time is also being reduced by setting up a team of 500 engineers, which is working on the project round-the-clock. Senior engineers and technocrats from public sector power companies have also been recruited for the project.
In August 2007, Power Finance Corporation Ltd had transferred Sasan Power Ltd, the special projects vehicle for developing the project, to Reliance Power Ltd. It had quoted a levelised tariff of Rs 1.196 per unit of power.
INTERNATIONAL
OIL & GAS
Upstream
InterOil completes 4 Colombian wells
July 8, 2008. InterOil has completed 4 wells in the Company's fracking program with an overall increase of 50% from previous production.
The total production from the 4 wells is 1353 bopd. The previous total production was 876 bopd. InterOil's working interest production from the 4 wells is 886 bopd. The Company will continue with its fracking until it has completed the planned 10 wells.
ConocoPhillips, ADNOC to develop Shah gas field
July 8, 2008. ConocoPhillips and Abu Dhabi National Oil Company (ADNOC) have signed an Interim Agreement to develop the Shah Gas Field in
Final project agreements are expected to be completed by year-end. The large-scale project involves the development of natural gas condensate reservoirs within the Shah Gas Field, located onshore approximately 180 kilometers southwest of the city of
The project will involve the construction of a new one billion cubic feet/day natural gas processing plant at Shah, new natural gas and liquid pipelines and sulfur-exporting facilities at Ruwais, UAE. ADNOC will have a 60% interest and ConocoPhillips will have a 40% interest in the project.
Venture vies for 2 Dutch offshore blocks
July 8, 2008. Venture Production plc (Venture), the
Subject to the customary regulatory approvals, Venture will become operator on completion of the acquisition. The Wintershall operated A15-2 field is located adjacent to the A12, B10 and B13 gas fields that are currently being developed. The A15-2 field comprises gas in Pleistocene sands at relatively shallow depths (1,500 - 2,000ft).
Venture estimates base case gross recoverable resources to be around 65 bcf (Bcf). The field has been penetrated by two wells, with well A15-3 having tested gas at over 10 million cubic feet per day (MMcfpd).
The likely development plan envisages up to four development wells drilled from a satellite platform connected to the A12-A host infrastructure via a 10" pipeline. The B17-5 field is located 10 km northwest of the Hanze field and was discovered by well B17-6 drilled by Wintershall in 1997. Venture estimates base case gross recoverable resources to be around 35 Bcf.
As with A15-2, the gas reservoir is the relatively shallow Pleistocene sands and the development plan envisaged is similar with two wells and a platform tied back to the A6-F3 pipeline.
Addax strikes success with 200 mn barrels in
July 7, 2008. Addax Petroleum Corporation has announced that the historic milestone of 200 million barrels of oil production from the Addax Petroleum operated Oil Mining Lease 123 offshore
OML123, the Corporation's first Nigerian license and largest license by production and reserves volumes, is located in the shallow water offshore in the
As at December 31, 2007, Netherland, Sewell & Associates Inc. estimates the Corporation's gross proved plus probable reserves for OML123 to be 161.4 MMbbl and gross proved plus probable plus possible reserved to be 220.6 MMbbl.
In addition, as at December 31, 2007, NSAI estimates the Corporation's best estimate contingent resources for OML123 for gas to be 999.9 Bcf and for associated liquids to be 27.9 MMbbl, and gross best estimate unrisked prospective oil resources for identified prospects on OML123 to be 401.2 MMbbl (110.3 MMbbl risked). Addax Petroleum is currently producing just under 60Mbbl/d from 51 wells in 7 producing fields.
StatoilHydro discovers gas in
July 7, 2008. During the drilling of exploration well 7226/2-1 in the
The main purpose of the well was to confirm the existence of hydrocarbons in early Jurassic to mid-Jurassic sandstones. The well confirmed the existence of gas in mid-Jurassic sandstones. Ververis is the first well in production license 395, which was awarded in the 19th licensing round in 2006. The license was awarded in April 2006, and seismic data were shot during the summer of 2006.
The well was drilled to a vertical depth of 2992 meters below the sea surface and completed in the lower Triassic Havert formation. The licensees in production licence 395 are: StatoilHydro ASA (operator) (50 prosent), BG Norge AS (30 prosent), Petoro AS (20 prosent).
Lundin makes major oil discovery in the
July 3, 2008. Lundin Petroleum’s Morskaya-1 exploration well in the Lagansky block, situated in the northern
Minor amounts of gas were encountered in the overlying Albian reservoir. Morskaya-1 has been drilled to a depth of 2082 metres in a water depth of less than two metres. A significant amount of cores, wireline logs and reservoir fluid samples have been acquired.
The Morskaya structure straddles the licence boundary of the Lagansky block and the adjoining acreage controlled by the Caspian Oil Consortium and is on trend with several major oil and gas discoveries made by Lukoil in the Russian sector of the
The Lagansky block contains significant additional prospectivity and following the testing of the Morskaya-1 well the Marine Drilling Complex (MDC) will be transported to the Laganskaya-1 well location, where drilling is expected to commence at the end of September.
Lundin Petroleum plans to drill another two wells in 2009. Lundin Petroleum currently has a 70 percent interest in the Lagansky block. Gazprom has a call option to acquire a 50 percent plus one share in the Lagansky block.
Lundin Petroleum has a call option to acquire an additional 30 percent from minority shareholders. If both options are exercised Lundin Petroleum will retain 50 percent minus one share in the Lagansky block and Gazprom will hold a 50 percent plus one share in the Lagansky block.
Petsec's 19 oil storage facilities come online
July 2, 2008. Petsec Energy has successfully installed a 3,000 barrel oil storage tank adjacent to the Main Pass 19 platform in the
Two Main Pass 19 wells and the Main Pass 18 No. 6 well are currently producing gas and flowing approximately 150 barrels of oil per day into the storage tank. Petsec is currently recompleting three additional Main Pass 19 wells.
Petsec installed the oil storage tank to accommodate the higher than expected oil production rates from its Main Pass 18 & 19 fields.
The 3,000 barrel tank will allow Petsec to increase production rates in the two fields and not suffer frequent shut-ins due to lack of oil storage. Petsec owns a 55% working interest (45.83% NRI) in the Main Pass 19 wells and a 100% working interest (88.33% NRI) in the Main Pass 18 no. 6 well.
Stuart Zeros in on Subzero 1's gas shows
July 2, 2008. Stuart Petroleum Limited’s exploration well Subzero 1 (Stuart 65% and Operator, Avery Resources 35%) has intersected what appear to be significant gas shows in the Patchawarra Formation over a gross interval of 300 meters. The significance of these shows will be evaluated by both wireline logs and drill stem testing as required.
The wireline logs will assist in determination of potential reservoir quality. Subzero 1 is targeting probabilistic mean undiscovered potential oil reserves of 1.3 million barrels in the McKinlay / Birkhead Formations.
The Patchawarra and Epsilon Formations are secondary targets for gas. The well has intersected 600 meters of Patchawarra Formation to date. The Company reported that it is not yet possible to estimate either the flow potential of these intercepts or to estimate the size of any potential resource.
The hydrocarbon potential of the well will be the subject of a separate release after conclusion of the drilling and evaluation program.
Downstream
Shell scraps
July 8, 2008. Royal Dutch Shell PLC (RDSA) is scrapping proposals to build a new heavy oil refinery near
The decision comes after a comprehensive assessment of all aspects of the proposed project, including the current project execution environment, market conditions and the current inflationary pressures across the oil and gas industry. The existing facility, located 10 kilometers south of
Gulf Petroleum hires consultant for study on Malaysian complex
July 8, 2008. Qatar-based Gulf Petroleum Ltd hopes to complete within eight weeks the final feasibility study for its proposed integrated oil and gas complex in
The complex will comprise an oil refinery, petrochemical project and storage facilities. Gulf Petroleum will invest about $5 bn for the first phase of the planned five-year project.
The company had secured regulatory approval from the Malaysian government in April this year to build the complex, which will serve as its regional hub for activities in the Asia Pacific region.
Gulf Petroleum said that investing in refinery and petrochemical projects was attractive, with demand in the Asia Pacific market growing between three and five percent annually.
Petrobras expects
July 7, 2008. Brazilian state-run energy giant Petroleo Brasileiro SA (PBR), or Petrobras, will soon finalize a joint-venture refinery deal with
According to Petrobras, a shareholders' agreement for the Abreu e
Brazilian antitrust authorities, however, were still evaluating the joint venture. The refinery will cost an estimated $4 bn. The refinery is expected to process 200,000 barrels of oil per day. Petrobras plans to boost refining capacity to 3.6 million barrels a day by 2015, up from its current capacity of 1.9 million barrels a day.
Sinopec-KNPC JV to break ground on Nansha refinery
July 7, 2008. Construction of a 10-million ton (mt) refinery and chemical complex joint venture between Sinopec and Kuwait Petroleum Corp. and other parties will start in
The
Its construction has drawn much concern from local citizens and experts because of environment issue. As of now, the environmental impact assessment of Nansha joint venture has not passed the national examination, according to
PetroVietnam may expand first refinery
July 6, 2008. State-owned Vietnam National Oil and Gas Group (PetroVietnam), investor of
Capitalized at $2.5 billion, the Dung Quat refinery under construction in central Quang Ngai province is scheduled to become operational next February. PetroVietnam’s current capacity is relatively small compared to that of other oil refineries in the world.
Vietnam exported 6.7 million tons of crude oil worth $5.6 billion in the first half of this year, down 12.1 percent in volume but up 49 percent in value. Meanwhile, the country spends $6.8 bn importing 5.9 mt of petroleum products, posting respective year-on-year rises of 68.9 percent and 4.4 percent.
Transportation / Trade
Eni enters Russian market
July 8, 2008. Eni, through its wholly owned subsidiary OOO Eni Energhia, has signed gas sale contracts with TGK-9, a company that owns power plants in the
Moreover, this success represents a fundamental step towards the development of Eni's presence in the Russian market, and to achieving the target set out in the strategic plan 2008-2011 of 900 million cubic meters to be sold in 2011.
The Russian gas market is the second-largest consumer of gas worldwide. Furthermore, the Russian Government is pursuing a gradual plan of price increases that, following the trend of world energy outlooks, will make European and internal gas prices aligned between 2011 and 2014, net of transportation costs and export taxes.
Through these contracts, Eni, leader in the European gas market, upholds its strategy of entering new important markets. Commercial relationships between Eni and
El Paso to expand
July 8, 2008. El Paso Corp. announced an expansion of the Colorado Interstate Gas Co. (CIG) natural gas pipeline transmission system that serves the
The expansion, expected to cost approximately $146 million, is supported by long-term firm transportation commitments with three shippers for nearly all of the expansion's capacity.
This expansion provides producers with access to diverse markets both east and west via the Cheyenne Hub, which would potentially include access to growing demand centers in
CIG's Raton expansion will consist of 118 miles of 16-inch pipeline, and
The project is expected to be filed with the Federal Energy Regulatory Commission by early 2009, with construction beginning in late 2009.
The in-service target is the second quarter of 2010. El Paso Corp. provides natural gas and related energy products in a safe, efficient, and dependable manner. The company owns North America's largest interstate natural gas pipeline system and one of
Central Asia-China gas pipeline to start service in ’09
July 3, 2008. According to
A PetroChina Group also disclosed that the China-Kazakhstan section of the pipeline would kick off construction on July 9, signaling that all parts of the pipeline initiated construction.
The Central Asia-China natural gas pipeline, starting from
After full operation, it will annually transport about 30 billion meters of natural gas, which accounts for half of
Moreover, PetroChina Group started building a Sino-Turkmenistan natural gas project in
$28 bn of LNG projects in pipeline
July 3, 2008.
Iran forecasts 277 bcm of domestic natural gas sales in 2012, compared with 155 bcm in 2007. Domestic private consumption would decrease as local gas prices move from a subsdized $0.02 per cubic meter in line with the export price of $0.40 per cubic meter.
Iran wants to account for 10% of global natural gas trades in 2025.
Policy / Performance
Italy's Eni optimistic about
July 8, 2008. The Italian energy company, ENI, is optimistic it will find a huge oil deposit in northern
Seismic surveys and drilling started at the beginning of 2007 after the government awarded exploration concessions to ENI and three other companies viz., Norway-listed Artumas, the US Anadarko and Petronas of Malaysia. The companies have invested an estimated 300 million dollars in drilling eight exploratory wells.
The 400-km-by-160-km
Russia to boost gas imports from
July 6, 2008.
Its success would undermine a Western-backed bid to reduce dependence on Moscow by pumping Turkmen gas through the planned Nabucco pipeline linking Turkey to European customers, who rely on Russia for a quarter of their gas. An agreement on the pipeline would come into force soon.
Amid increased competition for
While Russia holds the world's largest gas reserves, lack of development means it is forced to help meet rising internal demand for Russia's growing economy by supplementing its supplies with imports from Turkmenistan.
But
POWER
Power plant opponents plan court battle
July 8, 2008. Opponents of a new coal-fired power plant in
The utility company began construction of the $1.8 bn plant after receiving a permit from the Virginia Air Pollution Control Board. Opponents have argued that the plant will encourage destructive mining practices and contribute to pollution.
But Dominion has cleared two major regulatory hurdles, getting needed approvals from the State Corporation Commission and the Air Pollution Control Board. The
The plant will be designed so that equipment to capture carbon dioxide can be added when the technology becomes available.
UN opens 1st Zero emission community power centre in Kenya
July 8, 2008. The first power-generating centre using environmentally friendly hydro and solar power has been inaugurated in a Kenyan village 150 kilometres north east of
Apart from generating electricity, the new centre, in Kibai village in
Kibai villagers have begun using the centre for phone and lamp charging as well as accessing the internet, a rare phenomenon in rural
UNIDO is calling on communities without access to electricity to submit proposals for similar initiatives in
The project is part of the lighting up
Power Company to set up electricity project in
July 3, 2008. STEG International Services, a branch of the Tunisian national electricity and gas company STEG, will set up a pilot project in
It will necessitate investments of the order of 10 million dinars and will require the assistance of 20 Tunisian cadres, including 3 engineers, 17 qualified technicians, and 3 financial officers. The project aims at electrifying 160,000 Rwandan households between 2009 and 2012.
TeaM Energy to re-assess Pagbilao expansion plans
July 2, 2008. TeaM Energy Corp. will re-assess the results of its feasibility study on the expansion of the 735 MW Pagbilao coal-fired power plant in Quezon. TeaM Energy, formerly Mirant Philippines Inc., plans to scrutinize the expansion of the Quezon-based power facility.
TeaM Energy, now being run by the Japanese consortium of Marubeni Corp. and Tokyo Electric, has yet to award the engineering, procurement and construction contract for the Pagbilao expansion to Mitsubishi Heavy Industries. The company would expand the capacity of the Pagbilao plant by 350-MW to be completed next year.
Aside from Pagbilao, TeaM Energy also plans to undertake the expansion of its two other power plants the 1,200-MW coal-fired Sual plant and the 1,200-MW Ilijan natural gas facility in Batangas. Initial estimates show that the company would need some $4 mn to $5 mn in capital this year for the maintenance of these power plants.
The company targets to generate $100,000 per MW of electricity that it can sell with the entry of interim open access. Open access gives consumers with an average demand of one MW the power to choose their own power supplier. In 2007, TeaM Energy generated a net income of $25 mn, a significant drop from $200 mn a year earlier.
Transmission / Distribution / Trade
Singapore to sell off state electricity provider
July 8, 2008.
Built at a cost of S$2.6bn ($1.9bn), Senoko’s 3300MW of capacity supplies 30% of the island state’s electricity needs last year.
The company earned S$245 mn before interest, taxes and depreciation on revenue of S$2.49 bn for the year to March 31. The sale of Senoko Power comes at a time when mergers and acquisitions have slumped as the collapse of the
Transactions in
In March, Beijing-based China Huaneng agreed to pay $4.24 bn for Tuas, the smallest of Temasek’s three power generators, which supply 90% of the island state’s electricity.
Temasek, which manages more than $100 bn in assets, last year revived a plan abandoned six years ago to sell the
Senoko Power and Power Seraya were transferred in 2001 to Temasek from Singapore Power, the main electricity supplier, after the government separated ownership of generators from transmission and distribution. Temasek had owned Tuas Power since 1995.
The three generators are barred from holding each other’s shares, according to rules set by the government’s Energy Market Authority.
The
Deregulation of the electricity industry started in 1995 and in the gas market in 2000. After completing the second phase of liberalisation in 2006, 75% of total electricity demand was open to retail competition, and the total number of so-called contestable consumers rose to 10000, according to the Energy Market Authority.
Poor electricity supply cripples business activities in Nigeria
July 6, 2008. Commercial activities in Makurdi and other major towns in
Residents of the state capital and business men have lamented the development and have therefore called on the appropriate authorities to look into the situation so as to arrest the difficulties being faced daily.
The continuous power outage has not been attributed to any activity of either vandals as is usually the case or a break down in some of the transmitting facilities of the power holding company of Nigeria (PHCN).
Worst hit by this precarious situation are cold room owners, laundry and dry cleaning shops as well as hotels.
Policy / Performance
Zesco, El Sewedy set pattern in electricity infrastructure in Zambia
July 8, 2008. Zesco limited and
The Ndola based multi- billion Kwacha regional meters manufacturing plant, which will be operating as a privately owned registered company, Zambia Electrometer, has since started operations with an initial production capacity of 9000 meters per year.
And the construction of the other Zesco and El Sewedy Electrical Supplies valued $10 mn transformer manufacturing plant has commenced in
The meter manufacturing plant would start operating as an independent entity, the Zambia Electrometer Company in which Zesco owns 40 per cent shares while the El Sewedy Electrical will own the remaining 60 per cent of the shares. The
Zambia government was impressed with the commencement of operations of the plant, whose establishment was in line with the 2030 Vision, which was aimed at transforming
The establishment of the plant has brought direct foreign investment to
According to the Energy Ministry of Zambia the two projects added value to the mining industry where products such as meters and transformers are used.
As part of its contribution Zesco has already spent K21 billion which was used to buy the plant in
The Zambia Electrometer meter manufacturing plant has started producing state of the art electricity meters and smart cards, which would be used locally and exported to neighbouring countries in the central and southern
The transformer manufacturing plant would be operational in October and equipment worth $5 million would soon start arriving.
Once fully operational, goods and services supplied by the two companies formed under the joint venture were expected to contribute to
Some of the benefits accrued would be reduced electricity costs, contribution to the reduction of customer waiting connection time, locally manufactured meters could be adapted to local conditions and exporting meters to the region would contribute to
The joint venture is also expected to lead to increased revenue, reduced non-technical losses and increase access to electricity.
Energy deptt. paying state $14 mn to settle nuclear facility suit
July 8, 2008. The U.S. Department of Energy has agreed to pay $13.8 million to settle a 22-year-old lawsuit over natural resource damages caused by the former Fernald nuclear processing facility in southwest
Under a proposed consent decree with the Ohio Environmental Protection Agency, the federal energy department will spend the money to restore to their pre-settlement habitats roughly 1,050 acres of wetlands, prairies and forests that were once located on the Fernald site, northeast of Cincinnati.
The settlement is largest amount ever attained by state EPA for a complaint over natural resource damages. The settlement is on top of the $4.4 bn spent to clean up the former uranium enrichment facility in
US,
July 7, 2008. Differences over nuclear power surfaced on the sidelines of the Group of Eight summit, with
Germany plans to phase out it's 17 nuclear power plants in the coming years. Taking steps to tackle global warming is high on the agenda for the G-8 meeting, which brings together leaders from the
Iraq electricity production up over 10 pc
July 6, 2008. The U.S. Agency for International Development and Army Corps of Engineers restore the Baiji power station, which supplies
Electricity production jumped more than 10 percent in roughly the first six months of 2008 compared to the same period a year ago. Iraqi authorities have taken advantage of the recent decline in violence to repair damaged power stations and begin building new infrastructure.
In
Renewable Energy Trends
National
Suzlon to buy Chinese wind energy firm for $500 mn
July 8, 2008. Suzlon Energy plans to buy Chinese wind energy company Honiton Energy Holdings. The acquisition will be concluded through Colossus Holdings, a Singapore-based holding company of the Tanti group, and Bahrain-based private equity company Arcapita Bank for over $500 mn (Rs 2,162 crore).
The Tanti Group will own 26 per cent of the Chinese company and the rest will be funded by Arcapita. The partners will spend another $2 billion by 2012 to develop a 1,650 mega watt portfolio of wind farms in the Inner Mongolia region of
The game plan of this investment by using a separate joint venture is to bring in a big PE fund like Arcapita as a partner, and to broad-base operations of Suzlon in markets such as
Acquisitions have been major drivers of growth for the Pune-based Suzlon, which was started way back in 1995 by Tanti group. Last year, Suzlon outbid French energy major Areva to acquire 33.6 per cent stake in German turbine maker REpower for $698 million.
Recently, the company further acquired Areva's stake in REpower. Suzlon, now operating in over 20 countries with global headquarters in
Wind power industry upbeat on generation incentive
July 7, 2008. Wind industry representatives have welcomed a 50-paise-a-unit generation incentive announced recently by the Ministry for New and Renewable Energy.
According to the representatives, the Ministry’s generation-based incentive will make it more attractive for foreign investors in the wind power sector, especially those that adopt an independent power producer model.
The incentive will increase the internal rate of return (IRR) of the projects by 1.5-2 percentage points.
The IRR has taken a hit of late due to the higher cost of installing a wind turbine because of rising raw material prices and the higher interest rates. Investors, say industry representatives, will be happy with a post-tax IRR of 14 per cent.
However, according to Enercon
The Ministry’s generation-based incentive of 50 paise a unit is available to independent power producers of wind energy, that is to those who sell to the State utility and do not consume it themselves or sell to a third party.
The Ministry will pay the incentive for 10 years and those with an installed capacity of more than 5 MW will get the incentive.
Till now, those putting up wind turbines were eligible for an accelerated depreciation. Most of the investment so far has been for power-intensive industries that set up wind turbines for captive consumption and also for the tax breaks they got.
IKF Green Fuel to invest $23 mn in biofuels
July 4, 2008. IKF Green Fuel Ltd, a leading public limited company working in the field of biofuels, is planning to invest Rs 1 bn ($23.18 mn) in the coming three years towards Jatropha plantation and their refinery in
Focused on Vidarbha and Marathwada in
The company that is poised to become the leader in biofuels production in
It is expected that the entire operation (plantation and refinery) will generate direct employment for approximately 20,000 people within three years. The company is targeting an area of 10,000 hectares of land in the current cropping season.
Solar Semiconductor ties up with Deutsche
July 2, 2008. Hyderabad-based photovoltaic (PV) modules producer, Solar Semiconductor Private Limited (SSPL), has entered into a 10-year delivery agreement with Deutsche Solar AG, a subsidiary of SolarWorld AG of
As per the contract, the German company would supply silicon wafers worth over $ 1.2 bn (Rs 4,800 crore) to SSSPL. According to SSPL, the company has entered into the contract so as to ensure that there would be no disruption in the production of its solar PV modules on account of scarcity of silicon wafers.
SSPL offers its products and services to solar PV module market worldwide. The company was securing the capacity utilisation of the first expansion stage of its new wafer factory in
The capacity of the factory was being increased to 750 MW by adding 250 MW by the end of 2009.
Space mission-type body mooted to give thrust to solar energy
July 2, 2008. The National Manufacturing Competitiveness Council (NMCC) has proposed the establishment of a solar mission to significantly increase the share of solar power in the country’s total energy mix.
The mission, being mooted as an autonomous institution on the lines of the Space Commission, would focus on research on all aspects of solar energy generation, including materials, development and also on converting the available technology into commercially-viable products.
The council has been studying the issues relating to manufacture of solar energy equipment for clean energy requirements.
NMCC has highlighted in a communication to the Prime Minister that it was extremely important to put activities relating to solar energy on top gear in order to make it the major supplier of energy to the country in the coming years.
Recognising that investment and effort of a very high order would be required for pursuing research, development as well as adoption for commercial purpose, the NMCC has suggested that a mission on the lines of the Space Commission should be launched for concentrating entirely on all aspects of solar energy.
Global
Pickens seeks more emphasis on alternative energy
July 8, 2008. Last year
Pickens opened an advertising campaign in an attempt to bring more focus to solving the nation’s energy crisis as
Now dependent on foreign nations for 70 percent of its oil, the
The cost of the project could grow to $12 bn before its scheduled completion in 2014. Under Pickens’ proposal, thousands of wind turbines would be constructed across the nation’s wind belt, from
Transmission lines would be constructed to connect distant wind farms to cities that need the power. Pickens now wants to bring energy to the forefront of the presidential election.
The use of natural-gas powered vehicles can reduce oil imports by 38 percent, who is the largest shareholder of Clean Energy Fuels, a natural-gas supplier for bus and truck fleets.
Wind can generate 200,000 MW of power by 2010 and account for 22 percent of the supply.
According to the U.S. Energy Department, wind could account for 20 percent of the nation’s power supplies by 2030, delaying new coal-fueled power plants and lowering emissions of greenhouse gases.
Wind may provide more than 1 percent of
El Paso installs solar-powered threat sensors on
July 7, 2008. GE Oil & Gas' PII Pipeline Solutions has installed its solar-powered ThreatScan sensors along an 11-mile section of a natural gas pipeline operated by El Paso Corp. in southeastern
El Paso, the largest gas pipeline operator in North America, is the first
As the federal government and oil and gas industry seek new strategies to enhance the integrity of the nation's energy delivery infrastructure, PII's ThreatScan sensors are already beginning to play a vital role in those efforts.
Third-party damage is the most significant integrity threat to both liquid and gas networks globally. In 2007, Southern Star Central Gas Pipeline, Inc. became the first
PII's ThreatScan sensors are installed at specific locations along a pipeline in order to detect vibrations that could potentially signal an actual impact or a possible encroachment along a pipeline's right-of-way.
When a sensor detects vibrations, the data is immediately transmitted via satellite to GE Oil & Gas' ThreatScan call center in
The operator is then quickly notified to investigate whether there has been an actual impact that requires remediation or if there is a potential threat from a potential encroachment.
GE Oil & Gas operates a similar call center at its headquarters site in
Big
July 7, 2008. Honolulu-based, Sopogy company, is finally moving forward with the construction of its one-megawatt solar farm at the Natural Energy Laboratory of Hawaii after a year of working through state and county permitting processes.
The Keahole Solar Power concentrated solar farm will break ground at NELHA, in Kailua-Kona on the
The solar farm will be built in phases over several acres and is the first of its kind to use the company's MicroCSP technologies.
The company had been conducting research and development, as well as waiting for permits to construct the solar farm. Once the first phase of the project is completed, Keahole Solar Power will produce electricity for over 100 homes.
The one-megawatt solar farm will be capable of powering 500 homes and offsetting over 2 million metric tons of carbon dioxide emissions.
Unlike photovoltaic cells that convert light to electricity, Sopogy's proprietary solar technology uses curved mirrors to intensify and focus the sun's energy to heat mineral oil, which is then used to drive turbines and generate electricity.
Wastewater authority plans $2.5 mn solar panel project
July 7, 2008. Bolstered by federal and state incentives, the Northwest Bergen County Utilities Authority plans to install a 250-kilowatt solar electric generating system at its wastewater treatment facility in Waldwick by the end of the year.
The plant would be the first in
The installation is expected to generate more than 20 percent of the wastewater plant's power. The electric bill for the NBCUA was $950,000 last year, and rates so far this year are 25 percent higher. The authority will hold a public meeting to discuss the plans for the solar power system at its offices in Waldwick. Following that, the NBCUA will put the project out to bid.
Sencera to build 35 MW solar module factory
July 7, 2008. International Corporation, a manufacturer of thin film solar (photovoltaic) modules is expanding in
The company, with 10 employees, is planning to construct a solar module facility that will produce solar cells and assemble them into photovoltaic panels.
Total manufacturing capacity will exceed 38 megawatts by 2011. Sencera, a high tech company performing critical work in the pursuit of alternative energy.
Japan's oil industry to buy bioethanol from Brazil
July 6, 2008.
JBSL plans to mix Brazilian bioethanol with a petroleum gas to make ethyl tertiary butyl ether for shipments to
Solar-powered bus in
July 5, 2008. Adelaide City Council’s zero-emissions solar electric bus, Tindo, is a great example of what sustainable public transport looks like. The bus uses solar energy converted through photovoltaic panels mounted on top of the new central bus station.
According to the Council, the bus is carbon neutral, and is recharged from almost 77,000 kilowatt hours of zero carbon emissions electricity each year. Tindo has seating for 42 passengers, with 25 standard seats, two seats for disabled passengers and standing room for 15.
Tindo can travel 200 kilometers between recharges, and accelerates and climbs hills at the same speed as a diesel-powered bus. But the bus’s electric-powered drive line makes it silent and free of toxic fumes.
Tindo has all the latest technology including 11 Swiss-made high energy and storage batteries and an excellent vehicle management system, which logs all faults and warning conditions relating to the drive system. Any government serious about the climate change crisis would be investing in renewable energy-powered transport.
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