Singapore's first 'clean coal' power plant to be built

Tuas Power to build $2b 'clean' plant
It will be first here to run on clean coal and biomass
Clarissa Oon, Straits Times 26 Sep 08;

TUAS Power, the third-largest power generator here, plans to build a $2 billion steam and electricity production plant.

It will be the first plant here to run on clean coal and biomass, ensuring the efficient and non-polluting use of coal to power industries on Jurong Island.

Given the nod by the National Environment Agency, construction of the Tembusu Multi-Utilities Complex will start soon, Tuas Power said yesterday.

The company believes if the plant proves successful, it could pave the way for greater use here of clean coal combined with other fuel sources.

Hastening this change: soaring global oil and gas prices.

Tuas Power said the new complex will start operating in 2011, to supply steam, chilled water and electricity, and treat industrial waste for up to 10 petrochemical companies on Jurong Island.

The plant will be powered by 80 per cent low-ash, low-sulphur coal and 20 per cent biomass, which is waste woodchips and palm kernel shells. Coal is the world's most abundant fuel but is controversial for its high carbon emissions.

Tuas Power plans to keep emission levels down with the latest biomass and clean coal boiler technology from Japan. Biomass is a renewable, zero-emissions energy source.

'Overall, we are able to produce one unit of energy at a more competitive cost,' said Tuas Power president and CEO Lim Kong Puay.

It will translate into cost savings of about 10 per cent of a factory's utilities bill compared to energy generated by a gas-fired plant, he told The Straits Times.

With the plant, clean coal will contribute 15 per cent to Tuas Power's revenue by 2012. It is now wholly reliant on gas.

'The approach we are taking is to incorporate very efficient energy processes and renewable biomass to minimise the impact on the environment,' said Mr Lim.

Its diversification into other fuel sources was welcomed by the Energy Market Authority (EMA), which said in a statement yesterday the move would 'serve as a hedge against rising oil prices'.

Currently, about 80 per cent of Singapore's electricity is generated from natural gas, the cleanest available fossil fuel, and the rest from oil.

However, the EMA stressed the Government is not about to allow the use of coal for power generation 'solely or on a large scale' any time soon.

This stems from its decision two years ago to import liquefied natural gas (LNG) and build an LNG terminal, to diversify Singapore's sources of natural gas.

'We will not allow any entry of coal to adversely affect and jeopardise the viability of the LNG project,' it said.

Apart from moving into new fuel sources, Tuas Power is the first of the big three power-generating companies (gencos) to offer utilities beyond just electricity. These multi-utilities would include steam or chilled water power.

Tuas Power is expanding beyond its core business of electricity production after being acquired earlier this year by China Huaneng, China's largest coal-fuelled power producer.

Last week, the Singapore genco won a contract to supply multi-utilities to Finnish company Neste Oil Corp's $1.2 billion plant which produces renewable diesel.

Mr Lim believes his company has the 'core skills' to go into multi-utilities as 'the production of electricity involves the production of steam as well as very high-grade water for boilers'.

The integrated supply of different utilities to clients is expected to contribute about 30 per cent of Tuas Power's total revenue by 2012.

clare@sph.com.sg

Green features

# No exposure of coal to the environment: Coal from neighbouring countries is transported in covered barges, unloaded through fully enclosed conveyors and stored in covered silos.

# Biomass clean coal boilers: This technology allows combustion to take place at lower temperatures, keeping emissions to a minimum.

# Total carbon emissions are around 400g per kilowatt of power, which is lower than the 700g per kilowatt emitted by an oil-fired power plant.

# Filters have been installed to ensure particulate matter emitted meets National Environment Agency requirements. Ash generated will be reused in the plant.

# High-energy efficiency: 70 per cent of energy fed into the plant can be turned into useful energy in the form of steam and electricity. This is comparable to the 40 to 50 per cent efficiency of steam or gas-fired power plants.

Greener fuel for Jurong Island
Today Online 26 Sep 08;

High oil prices are pushing Singapore power suppliers to embrace more efficient energy generation technologies, in order to help industries cut costs.

Tuas Power, for one, is investing $2 billion to build a state-of-the-art complex on Jurong Island featuring three different plants, which will provide cogeneration, desalination and waste water treatment to corporate clients located there.

The Tembusu Multi-Utilities Complex will be the first such facility in Singapore to use biomass and clean coal technology.

The biomass burnt will be comprise mostly waste woodchips and palm kernel shells, which will be sourced both locally and from neighbouring countries.

Tuas Power said this will make energy cheaper by as much as 10 per cent for petrochemical firms on Jurong Island.

Mr Lim Kong Puay, chief executive of Tuas Power, said: “The efficient use of the cogeneration technology coupled with biomass and clean coalallows us to achieve savings, and this saving will be passed on to our industrial consumers.”

The new technology uses 20 per cent biomass and 80 per cent coal to produce steam and electricity.

As a result, system efficiency can reach as high as 70 per cent, 30 per cent more than an oil-powered plant.

Some residual energy will also be produced, half of which will be channelled back into the plant for internal consumption, while the rest will be exported to the national grid.

It is also expected to reduce carbon emissions by roughly20 per cent compared to a coal-fired plant.

Mr Lim said: “By providing centralised multi-utility services, we are able to offer competitive solutions, and this provides an attraction for investors to Jurong Island.”

Construction for the complex will start next year and it is expected to start operations by 2011.

Currently, Tuas Power has a market share of 24 per cent of the power generation market in Singapore.