Climate change and rising costs making more nations rethink energy source: Invensys
Jessica Cheam, Straits Times 22 Dec 08;
CONCERNS about climate change are prompting more Asian nations to explore nuclear power - a trend that could have direct implications for Singapore and benefits for some companies here.
Invensys Process Systems, a London-based firm that has operated in Singapore for 30 years, believes it can tap into the region's nuclear future.
The potential is huge: The number of reactors in Asia is set to grow from about 100 now to almost 40 per cent of the world's total by 2030, according to the World Nuclear Association.
Such growth could create a bonanza for Invensys, a production technology and energy management group that is a market leader in supplying control systems to nuclear plants.
It has provided energy management solutions to 40 per cent of the 440 plants operating worldwide. Its systems help plant operators automate the entire process, so safety is maximised and the potential for error is minimal.
The company's vice-president for strategy and marketing, Ms Sherie Ng, told The Straits Times that the public's perception of nuclear energy is 'starting to change'. Once seen as risky, it is now increasingly perceived as clean and free of greenhouse gas emissions, which are considered to be the chief culprit behind global warming.
Ms Ng said Invensys, which has its regional headquarters in Singapore, has seen interest picking up in South-east Asian countries such as Indonesia, Malaysia, Vietnam and Thailand.
Some have recently stated their intentions to explore the nuclear option. Indonesia, for one, has fleshed out plans to build a US$1.6 billion (S$2.3 billion) plant by 2010 to generate 1,000MW of electricity at Mount Muria, 440km from Jakarta.
In Singapore, Prime Minister Lee Hsien Loong recently cast a more positive stance on the country's position on nuclear power, leaving open the possibility of setting up a plant here at some point.
Ms Ng cites statistics that show that nuclear power is the most cost-efficient energy source when compared with fossil fuels. Nuclear energy costs 1.76 US cents per kilowatt hour, while coal costs 2.47 US cents, natural gas 6.78 US cents and oil 10.26 US cents.
Furthermore, nuclear energy emits negligible greenhouse gases.
Asia, as an energy-importing region in general, will also benefit from gaining energy independence, said Ms Ng.
'With crude oil and operational costs on the rise, nuclear power generation will drive the next phase of energy affordability and availability,' she added.
Places such as Taiwan, South Korea and Japan have already established nuclear power industries, in which Invensys has a strong presence.
The company, which built a US$70 million regional base at Changi Business Park in 2002, employs more than 300 staff in Singapore.
At last year's East Asia Summit, leaders from Asean, Australia, China, India, Japan, South Korea and New Zealand pledged to work together to promote energy efficiency and the use of cleaner sources, and agreed to cooperate on nuclear safety.
Still, some environmentalists have highlighted that while nuclear energy might be clean, it is not renewable - uranium is still a finite resource. Some critics also note the risks involved when developing countries take the nuclear route, especially politically unstable states.
In addition, not all countries have the technology to produce nuclear power at low costs. This makes it economically not viable.
Former Ministry of Defence chief defence scientist Lui Pao Chuen told The Straits Times that producing nuclear energy is still more expensive than producing energy from burning gas.
But he noted: 'The economics may change when there is a carbon tax which is high enough and the price of oil stays high, above US$100 a barrel. Based on current economic conditions, there's no economic case for nuclear energy.'
This is where Invensys hopes to help.
Its team of experienced scientists and engineers from around the globe can
'facilitate the transfer of technology to emerging nations that are exploring nuclear energy', said Ms Ng.
'Safety is the No. 1 concern, and our experience has shown that nuclear energy can be one of the safest energy options when the right processes are used.'
