Ronnie Lim, Business Times 3 Feb 10;
CHINA Huaneng, China's largest coal-fuelled power producer, and now Tuas Power's owner, will embark on construction proper of Singapore's first coal-fired station soon.
But for the other big gencos such as PowerSeraya and Senoko Power, which currently utilise piped gas from neighbouring Malaysia and Indonesia, upcoming LNG supplies expected in 2013 remain their first new fuel option at this time. However, coal - which introduces carbon emission issues - may also offer them a longer-term alternative.
As far as Tuas Power's $2 billion coal cogeneration plant is concerned, Lim Kong Puay, Tuas Power's president and CEO told BT: 'We are in the process of finalising the EPC (engineering, procurement and construction) terms with the selected contractor.'
This suggests that construction of the project - which had its groundbreaking last November - will start shortly.
The multi-utilities plant (using 80 per cent clean coal and 20 per cent biomass as fuel) will produce about 1,000 tonnes of steam per hour and 160 megawatts of electricity. It will also provide chilled water and treat industrial waste for petrochemical investors on Jurong Island.
Mr Lim was giving an update of its coal-station project following Monday's Economic Strategies Committee report, which suggested that in the short to medium term, Singapore should explore generating energy from coal as well as electricity imports, and also nuclear energy in the long term.
John Ng, CEO of YTL-owned PowerSeraya - which is currently commissioning the genco's $800 million investments in new gas-fired cogeneration plants - said that 'right now, PowerSeraya is looking at just LNG use, although we will evaluate coal-firing as a longer term option'.
Mr Ng agreed that it will be good for the economy to have fuel-diversification in the longer term, although with Singapore just about to embark on building its $1-1.5 billion liquefied natural gas terminal, 'there needs to be sizeable enough LNG demand volumes in the meantime'.
Alternative fuels could be considered once the LNG terminal's requirements are fulfilled, he said, further cautioning that 'coal also brings in a second issue of carbon emissions, even as Singapore is moving to a low-carbon regime'.
Singapore LNG Corporation is understood be in the final stages of picking its EPC contractor for the LNG terminal - a project which will see Singapore diversify its natural gas supplies beyond just piped gas from Indonesia and Malaysia.
And gencos including PowerSeraya and Senoko Power are understood to be in discussions with the LNG aggregator or buyer, BG Group, regarding their LNG needs and purchases, with the gas sales agreements expected to be finalised ahead of the scheduled construction start of the LNG terminal this quarter.
PowerSeraya has just completed a new 800MW cogen plant, plus conversion of two 750MW combined cycle gas turbines into cogen units - giving it a total 1,550 MW of new cogen capacity to supply utilities such as steam and cooling water, apart from electricity.
