Company opens cutting-edge reverse osmosis desalination plant
Ronnie Lim, Business Times 30 Jan 08;
POWERSERAYA (PS) - the second-largest generation company here which has grown into an integrated water, heat and power player - is interested in building large-scale desalination plants if Singapore opens up the water market. It is also keen on expanding overseas.
'If the PUB decides to open up the water market we would be interested in expanding our capability,' PS managing director Neil McGregor said at the opening of its 10,000 cubic metre per day reverse osmosis (RO) desalination plant.
PS's plant is the first worldwide to use the cutting-edge 16-inch membrane which results in a higher water yield and also cost savings, as it uses 30 per cent less electricity than conventional small membrane plants.
Primarily aimed at giving PS self-sufficiency in its water and steam (to drive its electricity turbines) needs, the $20 million desalination plant also has spare capacity allowing PS to sell steam to others such as Petrochemical Corporation of Singapore on Jurong Island.
While the RO plant has enough spare capacity for another year or two of market growth, PS is already planning a second RO plant to supply steam to even more petrochemical customers there. 'Jurong Island has a huge need for water,' Mr McGregor said.
'The more high-grade steam we sell, the more water we need,' he said, adding however, that no decision has yet been made on building a second RO plant.
Further down the road, if the water market here, currently controlled by PUB, is liberalised, then PS would also look to scale up and build bigger desalination plants, which would typically be at least six times the size of its current RO plant - or a 30 million gallon per day plant, Mr McGregor said.
'Water gives us a new platform to grow the company in future,' he told a press conference ahead of the opening ceremonies.
To optimise use of its existing facilities, the RO plant taps about 26,000 cu m of seawater from PS's existing seawater intake facility to produce 9,000 cu m of high-grade service water and 1,000 cu m of potable water daily.
Praising PS's new plant, Parliamentary Secretary (Environment & Water Resources) Amy Khor said that its cost savings in electricity consumption to produce the water will eventually translate to even more affordable utilities supply to Jurong Island customers.
On PS's regional diversification plans, Mr McGregor said that this was the next logical step for PS, but stressed that this 'was not imminent'.
'It has to be done in tandem with our shareholders and at this point of time they are considering privatisation and not regionalisation,' he said, referring to Temasek Holding's ongoing divestment of the three big gencos here.
Temasek, which is expected to pick the winner for Tuas Power - the first to go - in March, will proceed with the sale of PS and Senoko Power next, with the entire divestment exercise scheduled for completion by the first half of next year.
No need to buy water
Desalinated water feeds energy firm's own industrial needs
Lin Yanqin Today Online 30 Jan 08;
IT WILL help energy retailer PowerSeraya be self-sufficient in its water needs, improve energy efficiency and create more cost savings — which could mean more competitively-priced utilities for its customers.
Such is the promise of the firm's new $20-million reverse osmosis desalination plant, which can produce 10,000 m3 of high-quality service and potable water from seawater each day. This is more than enough to meet its industrial needs, including making steam for electricity generation and equipment washing.
The plant on Jurong Island uses the larger 16-inch reverse osmosis membranes — the first desalination plant in the world to do so — which provide more water yield and a smaller carbon footprint. This helps it reduce water costs by up to 30 per cent and improve overall thermal efficiency.
The energy retailer used to buy water from the Public Utilities Board. The desalination plant will also allow the firm to expand its range of commodities to buyers, such as selling its desalinated water to customers.
"Our move into water production is primarily aimed at self-sufficiency but if a water market were to evolve in the future, we would be interested in expanding our capacity," said PowerSeraya managing director Neil McGregor at the plant's official launch yesterday.
Firms with desalination facilities — such as Senoko Power — currently produce enough water for their own industrial use, not enough to supply others.
On the possibility of a water retail market, guest-of-honour Senior Parliamentary Secretary for the Environment Ministry Dr Amy Khor said it was not being considered now. "(But) whether the private sector has the capability to do it … We'll have to see how the market develops."
Energy firm scores a first with $20m water plant
Shobana Kesava, Straits Times 30 Jan 08;
POWERSERAYA now has its own desalination plant, making it the first combined heat, water and power supplier in South-east Asia.
The energy company officially opened the $20 million plant at its Jurong Island facility yesterday.
Managing director Neil McGregor said the plant consumes 30 per cent less electricity than conventional desalination plants.
When the plant runs at full capacity, about 10,000 cubic m of water, enough to fill four Olympic-size pools, can be produced per day.
Ninety per cent of the water will be used to clean floors, flush toilets and the like. The rest is clean enough to drink.
The drinking water has not been licensed for sale by regulators, but the firm may get the rights to sell it to water barges.
Senior Parliamentary Secretary for the Ministry of the Environment and Water Resources Amy Khor opened the plant. When asked if the supply of water could be deregulated, Dr Khor said the idea, while a good one, was not currently being considered.
