Asia Clean Tech Report May 2010
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fdeadalusAsia Clean Tech Report May 2010
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fdeadalusClean Tech Handbook for Asia Pacific
May 2010
Simon Wilson
Asia Pacific Clean Tech Handbook
31-May-10
Table of Contents
FOREWORD .................................................................................................................................................. 16
1 INTRODUCTION.................................................................................................................................... 19
1.1 WHAT IS CLEAN TECHNOLOGY? ........................................................................................................................ 19
1.2 WHY CLEAN TECHNOLOGY IN ASIA PACIFIC? ....................................................................................................... 19
1.3 FACTORS DRIVING THE CLEAN TECH MARKET IN ASIA PACIFIC ................................................................................. 20
1.4 KEY CHALLENGES FOR THE CLEAN TECH MARKET IN ASIA PACIFIC ............................................................................ 20
1.5 WHO WOULD BE INTERESTED IN THIS REPORT? .................................................................................................... 21
1.6 STRUCTURE OF THE HANDBOOK ........................................................................................................................ 21
PART A – COUNTRY REVIEW.......................................................................................................................... 22
2 COUNTRY OVERVIEW ........................................................................................................................... 23
2.1 BACKGROUND ...............................................................................................................................................23
2.1.1 North Asian Countries ...................................................................................................................... 23
2.1.2 South Asia ........................................................................................................................................23
2.1.3 South East Asia ................................................................................................................................23
2.1.4 Pacific...............................................................................................................................................24
2.1.5 Key Drivers for Clean Tehnology ...................................................................................................... 24
2.2 MARKET SIZE & ENERGY MIX ........................................................................................................................... 25
2.3 POLICY AND RENEWABLE REGULATION ............................................................................................................... 26
2.4 TARGETS & INCENTIVES ...................................................................................................................................27
2.4.1 Feed in Tariffs (FiT)...........................................................................................................................27
2.4.2 Baseload Power Generation ............................................................................................................ 29
2.4.3 Clean Development Mechanism Projects (CDM) ............................................................................. 33
2.5 RESEARCH & DEVELOPMENT ............................................................................................................................ 34
2.6 FINANCING....................................................................................................................................................36
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2.6.1 Public Funding..................................................................................................................................36
2.6.2 Private Funding ................................................................................................................................36
2.6.3 Private Equity/Venture Capital ........................................................................................................ 36
2.6.4 Public Companies .............................................................................................................................37
2.6.5 Project Financing .............................................................................................................................38
3 COUNTRY, BY ENERGY SECTOR ............................................................................................................. 40
3.1 SUMMARY ....................................................................................................................................................40
3.2 CHINA ..........................................................................................................................................................40
3.2.1 Background......................................................................................................................................40
3.2.2 Market Size and Energy Mix ............................................................................................................ 40
3.2.3 Government Agencies ...................................................................................................................... 41
3.2.4 Clean Technology Regulation........................................................................................................... 42
3.2.5 Renewable Targets & Incentives...................................................................................................... 43
3.2.6 Research & Development................................................................................................................. 46
3.2.7 Financing..........................................................................................................................................46
3.3 JAPAN ..........................................................................................................................................................47
3.3.1 Background......................................................................................................................................47
3.3.2 Market Size & Energy Mix................................................................................................................ 47
3.3.3 Government Agencies ...................................................................................................................... 49
3.3.4 Clean Technology Regulation........................................................................................................... 50
3.3.5 Renewable Targets & Incentives...................................................................................................... 51
3.3.6 Research & Development................................................................................................................. 53
3.3.7 Financing..........................................................................................................................................54
3.4 SOUTH KOREA ...............................................................................................................................................55
3.4.1 Background......................................................................................................................................55
3.4.2 Market Size & Energy Mix................................................................................................................ 55
3.4.3 Government Agencies ...................................................................................................................... 56
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3.4.4 Renewable Regulation ..................................................................................................................... 56
3.4.5 Renewable Targets & Incentives...................................................................................................... 56
3.4.6 Research & Development................................................................................................................. 57
3.4.7 Financing..........................................................................................................................................58
3.5 TAIWAN .......................................................................................................................................................60
3.5.1 Background......................................................................................................................................60
3.5.2 Market Size & Energy Mix................................................................................................................ 60
3.5.3 Government Agencies ...................................................................................................................... 61
3.5.4 Clean Technology Regulation........................................................................................................... 62
3.5.5 Renewable Targets & Incentives...................................................................................................... 63
3.5.6 Research & Development................................................................................................................. 63
3.5.7 Financing..........................................................................................................................................63
3.6 HONG KONG .................................................................................................................................................64
3.6.1 Background......................................................................................................................................64
3.6.2 Market Size & Energy Mix................................................................................................................ 64
3.6.3 Government Agencies ...................................................................................................................... 64
3.6.4 Clean Technology Regulations ......................................................................................................... 64
3.6.5 Renewable Targets & Incentives...................................................................................................... 65
3.6.6 Research & Development................................................................................................................. 65
3.6.7 Financing..........................................................................................................................................65
3.7 INDIA ...........................................................................................................................................................66
3.7.1 Background......................................................................................................................................66
3.7.2 Market Size and Energy Mix ............................................................................................................ 66
3.7.3 Government Agencies ...................................................................................................................... 67
3.7.4 Renewable Regulation ..................................................................................................................... 68
3.7.5 Renewable Targets & Incentives...................................................................................................... 70
3.7.6 Research & Development................................................................................................................. 72
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3.7.7 Financing..........................................................................................................................................72
3.8 SINGAPORE ...................................................................................................................................................74
3.8.1 Background......................................................................................................................................74
3.8.2 Market Size & Energy Mix................................................................................................................ 75
3.8.3 Government Agencies ...................................................................................................................... 75
3.8.4 Clean Technology Regulations ......................................................................................................... 75
3.8.5 Renewable Targets & Incentives...................................................................................................... 76
3.8.6 Research & Development................................................................................................................. 79
3.7.7 Financing..........................................................................................................................................79
3.9 INDONESIA ....................................................................................................................................................80
3.9.1 Background......................................................................................................................................80
3.9.2 Market Size & Energy Mix................................................................................................................ 80
3.9.3 Government Agencies ...................................................................................................................... 80
3.9.4 Clean Technology Regulation........................................................................................................... 81
3.9.5 Renewable Targets ..........................................................................................................................81
3.9.6 Research & Development................................................................................................................. 82
3.9.7 Financing..........................................................................................................................................82
3.10 MALAYSIA.....................................................................................................................................................83
3.10.1 Background......................................................................................................................................83
3.10.2 Market Size & Energy Mix................................................................................................................ 83
3.10.3 Government Agencies ...................................................................................................................... 84
3.10.4 Clean Technology Regulation........................................................................................................... 84
3.10.5 Renewable Targets & Incentives...................................................................................................... 85
3.10.6 Research & Development................................................................................................................. 86
3.10.7 Financing..........................................................................................................................................86
3.11 PHILIPPINES...................................................................................................................................................87
3.11.1 Background......................................................................................................................................87
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3.11.2 Market Size & Energy Mix................................................................................................................ 87
3.11.3 Government Agencies ...................................................................................................................... 88
3.11.4 Renewable Regulation ..................................................................................................................... 89
3.11.5 Renewable Targets & Incentives...................................................................................................... 90
3.11.6 Research & Development................................................................................................................. 91
3.11.7 Financing..........................................................................................................................................91
3.12 THAILAND .....................................................................................................................................................92
3.12.1 Background......................................................................................................................................92
3.12.2 Market Size & Energy Mix................................................................................................................ 92
3.12.3 Government Agencies ...................................................................................................................... 93
3.12.4 Renewable Regulations.................................................................................................................... 93
3.12.5 Renewable Targets & Incentives...................................................................................................... 94
3.12.6 Research & Development................................................................................................................. 96
3.12.7 Financing..........................................................................................................................................96
3.13 AUSTRALIA ....................................................................................................................................................97
3.13.1 Background......................................................................................................................................97
3.13.2 Market Size & Energy Mix................................................................................................................ 98
3.13.3 Government Agencies ...................................................................................................................... 99
3.13.3 Clean Technology Regulation......................................................................................................... 100
3.13.4 Renewable Targets & Incentives.................................................................................................... 101
3.13.6 Research & Development............................................................................................................... 104
3.13.7 Financing........................................................................................................................................104
3.14 NEW ZEALAND.............................................................................................................................................106
3.14.1 Background....................................................................................................................................106
3.14.2 Market Size & Energy Mix.............................................................................................................. 106
3.14.3 Government Agencies .................................................................................................................... 107
3.14.4 Renewable Regulation ................................................................................................................... 107
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3.14.5 Renewable Targets & Incentives ....................................................................................................... 108
3.14.6 Research & Development............................................................................................................... 108
3.14.7 Financing........................................................................................................................................109
4 REGIONAL COMPARISON ................................................................................................................... 110
4.1 NORTH ASIA ................................................................................................................................................110
4.2 SOUTH ASIA ................................................................................................................................................110
4.3 SOUTH EAST ASIA.........................................................................................................................................111
4.4 PACIFIC ......................................................................................................................................................111
4.5 KEY CLEAN TECHNOLOGY SECTORS .................................................................................................................. 111
PART B – CLEAN TECHNOLOGY SECTOR REVIEW ......................................................................... 113
5 ENERGY SECTOR OVERVIEW ............................................................................................................... 114
5.1 MARKET MAP OF CLEAN TECHNOLOGY ............................................................................................................ 114
5.2 ENERGY SUPPLY ...........................................................................................................................................115
5.2.1 Renewable Energy ......................................................................................................................... 115
5.2.2 Power Generation and Distribution ............................................................................................... 118
5.2.3 Conventional Energy ...................................................................................................................... 119
5.3 ENERGY USAGE ............................................................................................................................................120
5.3.1 Building (Residential and Commercial) .......................................................................................... 120
5.3.2 Industry ..........................................................................................................................................121
5.3.3 Transportation ...............................................................................................................................121
5.4 OTHER POLLUTANTS .....................................................................................................................................121
5.4.1 Wastewater ...................................................................................................................................121
5.5 WASTE .......................................................................................................................................................122
5.6 SERVICE & SUPPORT .....................................................................................................................................122
5.6.1 Private Sector Funding ................................................................................................................... 122
5.6.2 Private Sector Services & Support .................................................................................................. 122
5.6.3 Government Agencies .................................................................................................................... 123
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5.6.4 Universities ....................................................................................................................................123
6 ENERGY SECTOR, BY COUNTRY ........................................................................................................... 124
6.1 WIND ........................................................................................................................................................124
6.1.1 Background....................................................................................................................................124
6.1.2 Targets & Incentives ......................................................................................................................125
6.1.3 Wind Supply Chain ......................................................................................................................... 125
6.1.4 Research & Development............................................................................................................... 126
6.1.5 China ..............................................................................................................................................128
6.1.6 Japan..............................................................................................................................................132
6.1.7 South Korea....................................................................................................................................134
6.1.8 Taiwan ...........................................................................................................................................135
6.1.9 India ...............................................................................................................................................135
6.1.10 Singapore .......................................................................................................................................136
6.1.11 Indonesia........................................................................................................................................137
6.1.12 Australia.........................................................................................................................................139
6.1.13 New Zealand ..................................................................................................................................140
6.1.14 Summary of Companies in the Wind Sector................................................................................... 143
6.2 SOLAR ........................................................................................................................................................144
6.2.1 Background....................................................................................................................................144
6.2.2 Targets and Incentives ................................................................................................................... 145
6.2.3 PV Supply Chain .............................................................................................................................147
6.2.4 Research & Development............................................................................................................... 149
6.2.5 China ..............................................................................................................................................151
6.2.6 Japan..............................................................................................................................................154
6.2.7 South Korea....................................................................................................................................158
6.2.8 Taiwan ...........................................................................................................................................159
6.2.9 India ...............................................................................................................................................161
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6.2.10 Singapore .......................................................................................................................................163
6.2.11 Indonesia........................................................................................................................................163
6.2.12 Malaysia ........................................................................................................................................163
6.2.13 Thailand .........................................................................................................................................164
6.2.14 Philippines......................................................................................................................................165
6.2.15 Australia.........................................................................................................................................165
6.2.16 New Zealand ..................................................................................................................................166
6.2.17 Summary of Companies in PV Sector ............................................................................................. 167
6.3 BIOFUEL .....................................................................................................................................................170
6.3.1 Background....................................................................................................................................170
6.3.2 Targets & Incentives ......................................................................................................................171
6.3.3 Biofuel Supply Chain ...................................................................................................................... 173
6.3.4 China ..............................................................................................................................................174
6.3.5 Japan..............................................................................................................................................179
6.3.6 South Korea....................................................................................................................................181
6.3.7 Taiwan ...........................................................................................................................................183
6.3.8 India ...............................................................................................................................................184
3.3.11 Singapore .......................................................................................................................................185
6.3.12 Indonesia........................................................................................................................................187
6.3.13 Malaysia ........................................................................................................................................189
6.3.14 Thailand .........................................................................................................................................190
6.3.15 Philippines......................................................................................................................................193
6.3.16 Australia.........................................................................................................................................195
6.3.17 New Zealand .................................................................................................................................196
6.3.18 Summary of Companies in Biofuel Sector (to add Updated Table) ................................................ 197
6.4 BIOMASS ..................................................................................................................................................198
6.4.1 Background....................................................................................................................................198
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6.4.2 Targets & Incentives ......................................................................................................................198
6.4.3 Biomass Supply Chain .................................................................................................................... 201
6.4.4 Research & Development............................................................................................................... 204
6.4.5 China ..............................................................................................................................................204
6.4.6 Japan..............................................................................................................................................205
6.4.7 South Korea....................................................................................................................................206
6.4.8 Taiwan ...........................................................................................................................................208
6.4.9 India ...............................................................................................................................................209
6.4.10 Singapore .......................................................................................................................................211
6.4.11 Indonesia........................................................................................................................................212
6.4.12 Malaysia ........................................................................................................................................212
6.4.13 Thailand .........................................................................................................................................212
6.4.14 Philippines......................................................................................................................................214
6.4.15 Australia.........................................................................................................................................215
6.4.16 New Zealand ..................................................................................................................................218
6.4.17 Summary of Companies in Biomass Sector .................................................................................... 219
6.5 HYDRO .......................................................................................................................................................220
6.5.1 Background....................................................................................................................................220
6.5.2 Targets & Incentives ......................................................................................................................220
6.5.3 Hydroelectric Power Process.......................................................................................................... 221
6.5.4 China ..............................................................................................................................................222
6.5.5 Japan..............................................................................................................................................223
6.5.6 South Korea....................................................................................................................................224
6.5.7 Taiwan ...........................................................................................................................................224
6.5.8 India ...............................................................................................................................................224
6.5.9 Singapore .......................................................................................................................................225
6.5.10 Indonesia........................................................................................................................................226
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6.5.11 Malaysia ........................................................................................................................................227
6.5.12 Thailand .........................................................................................................................................227
6.5.13 Philippines......................................................................................................................................228
6.5.14 Australia.........................................................................................................................................229
6.5.15 New Zealand ..................................................................................................................................229
6.5.16 Summary of Companies in Hydro Sector........................................................................................ 230
6.6 WAVE & TIDAL TECHNOLOGY ......................................................................................................................... 231
6.6.1 Background....................................................................................................................................231
6.6.2 Targets & Incentives ......................................................................................................................231
6.6.3 Wave & Tidal Process..................................................................................................................... 231
6.6.4 Research & Development............................................................................................................... 232
6.6.5 China ..............................................................................................................................................234
6.6.6 Japan..............................................................................................................................................235
6.6.7 South Korea....................................................................................................................................236
6.6.8 Taiwan ...........................................................................................................................................237
6.6.9 India ...............................................................................................................................................237
6.6.10 Philippines......................................................................................................................................238
6.6.11 Indonesia........................................................................................................................................239
6.6.12 Thailand .........................................................................................................................................239
6.6.13 Malaysia ........................................................................................................................................239
6.6.10 Australia.........................................................................................................................................240
6.6.11 New Zealand ..................................................................................................................................242
6.6.12 Summary of Companies involved in Wave/Tidal Technology ........................................................ 243
6.7 GEOTHERMAL ..............................................................................................................................................244
6.7.1 Background....................................................................................................................................244
6.7.2 Targets & Incentives ......................................................................................................................244
6.7.3 Geothermal Process and Technologies .......................................................................................... 244
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6.7.4 China ..............................................................................................................................................245
6.7.5 Japan..............................................................................................................................................246
6.7.6 South Korea....................................................................................................................................247
6.7.7 Taiwan ...........................................................................................................................................248
6.7.8 India ...............................................................................................................................................248
6.7.9 Indonesia........................................................................................................................................248
6.7.10 Malaysia ........................................................................................................................................249
6.7.11 Philippines......................................................................................................................................249
6.7.12 Thailand .........................................................................................................................................250
6.7.13 Australia.........................................................................................................................................251
6.7.14 New Zealand ..................................................................................................................................254
6.7.15 Summary of Companies involved in Geothermal ........................................................................... 256
6.8 SMART GRID ...............................................................................................................................................257
6.8.1 Background....................................................................................................................................257
6.8.2 Targets & Incentives ......................................................................................................................257
6.8.3 Smart Grid Process.........................................................................................................................258
6.8.4 China ..............................................................................................................................................260
6.8.5 Japan..............................................................................................................................................262
6.8.6 South Korea....................................................................................................................................265
6.8.7 Taiwan ...........................................................................................................................................265
6.8.8 India ...............................................................................................................................................267
6.8.9 Singapore .......................................................................................................................................267
6.8.10 Indonesia........................................................................................................................................267
6.8.11 Malaysia ........................................................................................................................................268
6.8.12 Philippines......................................................................................................................................268
6.8.13 Thailand .........................................................................................................................................269
6.8.14 Australia.........................................................................................................................................269
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6.8.15 New Zealand ..................................................................................................................................270
6.8.16 Summary of Companies involved in Smart Grid............................................................................. 271
6.9 CARBON CAPTURE AND STORAGE .................................................................................................................... 272
6.9.1 Background....................................................................................................................................272
6.9.2 Targets & Incentives ......................................................................................................................272
6.9.3 CCS Process ....................................................................................................................................275
6.9.4 China ..............................................................................................................................................276
6.9.5 Japan..............................................................................................................................................276
6.9.6 South Korea....................................................................................................................................277
6.9.7 Taiwan ...........................................................................................................................................277
6.9.8 India ...............................................................................................................................................277
6.9.9 Singapore .......................................................................................................................................278
6.9.10 Indonesia........................................................................................................................................278
6.9.11 Malaysia ........................................................................................................................................279
6.9.12 Philippines......................................................................................................................................279
6.9.13 Thailand .........................................................................................................................................279
6.9.14 Australia.........................................................................................................................................279
6.9.15 New Zealand ..................................................................................................................................285
6.9.16 Summary of Companies ................................................................................................................. 285
6.10 NUCLEAR ....................................................................................................................................................286
6.10.1 Background....................................................................................................................................286
6.10.2 Targets & Incentives ......................................................................................................................287
6.10.3 Nuclear Process and Supply Chain ................................................................................................. 288
6.10.4 China ..............................................................................................................................................293
6.10.5 Japan..............................................................................................................................................297
6.10.6 South Korea....................................................................................................................................300
6.10.7 Taiwan ...........................................................................................................................................302
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6.10.8 India ...............................................................................................................................................302
6.10.9 Singapore .......................................................................................................................................305
6.10.10 Indonesia........................................................................................................................................305
6.10.11 Malaysia ........................................................................................................................................306
6.10.12 Philippines......................................................................................................................................306
6.10.13 Thailand .........................................................................................................................................307
6.10.14 Australia.........................................................................................................................................307
6.10.15 New Zealand ..................................................................................................................................308
6.10.16 Summary of Companies ................................................................................................................. 309
6.11 WASTEWATER .............................................................................................................................................309
6.11.1 Background....................................................................................................................................309
6.11.2 Targets & Incentives ......................................................................................................................309
6.11.3 Wastewater Process ...................................................................................................................... 310
6.11.4 Research & Development............................................................................................................... 311
6.11.5 China ..............................................................................................................................................312
6.11.6 Japan..............................................................................................................................................316
6.11.7 South Korea....................................................................................................................................318
6.11.8 Taiwan ...........................................................................................................................................319
6.11.9 India ...............................................................................................................................................319
6.11.10 Singapore .......................................................................................................................................320
6.11.11 Indonesia........................................................................................................................................321
6.11.12 Malaysia ........................................................................................................................................322
6.11.13 Philippines......................................................................................................................................322
6.11.14 Thailand .........................................................................................................................................323
6.11.15 Australia.........................................................................................................................................324
6.11.16 New Zealand ..................................................................................................................................325
6.11.17 Summary of Companies ................................................................................................................. 326
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6.12 WASTE .......................................................................................................................................................326
6.12.1 Background....................................................................................................................................326
6.12.2 Targets & Incentives ......................................................................................................................326
6.12.3 Waste Process................................................................................................................................328
6.12.4 China ..............................................................................................................................................329
6.12.5 Japan..............................................................................................................................................333
6.12.6 South Korea....................................................................................................................................335
6.12.7 Taiwan ...........................................................................................................................................336
6.12.8 India ...............................................................................................................................................337
6.12.9 Singapore .......................................................................................................................................338
6.12.10 Indonesia........................................................................................................................................338
6.12.11 Malaysia ........................................................................................................................................339
6.12.12 Philippines......................................................................................................................................340
6.12.13 Thailand .........................................................................................................................................340
6.12.14 Australia.........................................................................................................................................341
6.12.15 New Zealand ..................................................................................................................................342
6.12.16 Summary of Companies ................................................................................................................. 343
7 SUMMARY OF KEY OPPORTUNITIES.................................................................................................... 344
7.1 INTEGRATION OF GOVERNMENT POLICY AND INDUSTRY ....................................................................................... 344
7.2 INFRASTRUCTURE .........................................................................................................................................345
7.3 COMMODITISED SECTORS .............................................................................................................................. 346
7.4 INNOVATION ...............................................................................................................................................347
7.5 CONCLUSIONS .............................................................................................................................................347
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Foreword
This Handbook was initially producd to assess the growth and opportunities in the Clean Technology
space in Asia Pacific. The pace and scale at which countries in the Asia Pacific Region such as China and
India have set targets, aligned policy with indutsry and then followed through with implementation is
breathtaking. This version of the Handbook is focused on renewable energy and power generation and is
meant to serve as a reference guideand provide an overview of the region by country and sector.
The author welcomes any comments or suggestions for future editions.
Simon Wilson [email protected]
I would like to thank the following contributors:
Editor Conan Hales ([email protected])
Sector Review
Carbon Markets David Fogarty
Clean Technology Leonora Walet
Project Finance Minerva Lau
Patent Filing Sue Cullen and Mark Garlinghouse
Country Profiles
Japan Risa Maeda, Yoko Inoue
South Korea Cho Mee Young
HK, Taiwan, China Leonora Walet
India Ratnajyoti Dutta / Prashant Mehra
Singapore David Fogarty
Indonesia Sunanda Creagh
Malaysia Niki Koswanage
Philippines Minerva Lau
Thailand Piloy Tenkate
Australia, NZ Bruce Hextall
About the Author
Simon Wilson is the Head of Commodities & Energy in Asia Pacific for the Markets Division of
Thomson Reuters. Prior to this position, Simon worked in the ventures group in London, looking
at early stage ventures in Commodities & Energy business. Prior to Reuters he worked at
Environmental Resource Management, a specialist environmental consultancy, working on key
environmental government and multinational studies in the Asia Pacific region.
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EXECUTIVE SUMMARY
The Asia Pacific Region (APR) will be the largest Energy Market and Clean Technology Market in
the world, by 2030. According to the EIA, the APR will consume over 250 Quadrillion BTU by
2030 and generate 15,000 TWh in power by 2030.
Countries within the APR are already gearing up for the impact of Climate Change by setting
aggressive renewable targets. Clean Technology is seen as a growth industry that generates jobs,
while reducing carbon emissions and energy security in the process. What is surprising is the
speed of change and the level of investment set aside by governments to ensure that countries
become world leadrs in this space. According to Thomson Reuters Scientific, China and Japan
lead the world in terms of patents filed in Clean Technology and this is re-enforced by the levels
of investment by government. For the purpose of the country review, the APR can be divided into
four sub regions:
• North Asian countries that include China, Japan, South Korea and Taiwan, These countries
are resource poor, leaders in manufacturing and are positioning themselves the be global
leaders in this space. North Asia will account for 75% of the total APR power generated in
2010 and thiis expected to increase to over 80% by 2020, mainly driven by China.
• India, while a potentially large market, does not have the level of investment and
manufactiuring capability, as its Northern Asian neighbours.
• South East Asia will be as largest as the Indian market in aggregate by 2030. These countries
are resource rich and focused on geothermal, hydro and biomass sectors.
• Pacific (Australia and NZ) which are developed, resource rich and highly innovative countries
that lead the region in new technologies such as wave, geothermal and CCS technologes.
The Handbook has focused primarily on renewable energy for power generation and technologies
to reduce impact from fossil fuels, such as CCS and Clean Coal. In terms of Key Clean
Technology sectors, the key sectors fall into the following categories:
• Infrastructure. For a lot of countries in the APR, Clean Technology is simply building new
power capacity to keep up with growth. The largest contributors to renewable energy will be
Hydro (14%), followed by Nuclear Power (8-9%). Renewable Energy will only account for 4%
of total power generation by 2030.
• Commoditised Sectors. Manufacturing of Wind and PV Solar are moving to North Asian
countries and in particular China, where there is high quality and there is a significant cost
advantage.
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• Innovation. Beyond, Wind, Solar and Biomass, countries such as Australia and New Zealnd
lead in new sectors, such as Wave/Tidal, Geothermal and CCS.
• Even with all these proposed targets, power generated from fossil fuels will still account for
over 70% of the power generation mix by 2030. Other mitigation measures, such as energy
efficiency such as CCS will need to be included into projections to reduce the overall energy
consumption and emissions in the APR.
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1 INTRODUCTION
This Clean Tech Handbook is meant as a reference guide for people interested in investing in the
Clean Technology space in the Asia Pacific Region (APR). It provides an overview of the different
sectors by geography as well as highlights of the different policies and drivers for each market.
The Handbook will:
• Define the Clean Tech market in the Asia Pacific Region by sector and geography
• Size the market opportunity by sector and geography
• Highlight the regulatory framework and the drivers across the Asia Pacific Region
• Highlight the key players within each sector and each geography from new emerging private
companies to public companies listed on the stock market
• Looks at the various support structures for Clean Technology from government, private sector
funding, academic institutions and highlights key technologies from universities
1.1 What is Clean Technology?
There are many different definitions of Clean Technology or “Clean Tech” for short. Here the term
is loosely applied to a number of fragmented technologies that will either replace existing supply
of fossil fuels or use energy more efficiently. Part B goes into detail on each sector of the energy
markets.
1.2 Why Clean Technology in Asia Pacific?
The basic need for energy to keep up with economic growth will mean that renewable and Clean
Technology will be required by countries to manage their energy resources for security, economic
and environmental reasons. In addition Clean Technology is seen as a job creator by a key new
industry which APR countries plan to dominate. With the breath-taking pace of change in the
region, this Handbook will highlight some of the key issues of the APR which will provide impetus
for development:
• In some sectors, Clean Technologies in APR could leapfrog the developed markets,
particularly in infrastructure as most of the projects will be new
• Governments and large corporations in APR are already leading the Intellectual Property race
and are leaders in patent filings (proxy for innovation) for Clean Technology
• Governments have set ambitious Renewable Energy targets to incentivize domestic players.
This will accelerate the technology transfer and commoditization of these businesses, as they
have done successfully in other markets, such as manufacturing
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1.3 Factors driving the Clean Tech Market in Asia Pacific
• Largest growing market - Increase in growth of APR economies, with a corresponding
increase in carbon emissions and need for Clean Technologies. It is expected that APR will
make up over 50% of the global emissions and most of the economic growth 1
• Intellectual Property - While Asia is seen as a follower of technology, recent research by
Thomson Reuters Scientific shows that Asia leads the innovation in Clean Tech with more
patents produced than any other region. There will be opportunities for Asian companies to
further develop and lead the Clean Tech revolution 2
• High quality/low cost manufacturing - In addition, what the last technology boom has
shown, is that technology can be adopted quickly in Asia and often leapfrog developed
countries, as the infrastructure put in place is new – a key example will be the set-up of
utilities and a smart grid. Solar, wind and marine technologies will become quickly
commoditised and the move of the move to Asia, where high quality, low cost manufacturing
will accelerate – as with other manufacturing sectors such as cars, silicon chips, and
computers.
• Incentives for technology transfer – will further accelerate this transfer 3
• Restricted International Participation - In addition, there are also regulatory or protectionist
measures in place that may favour domestic players – such as the wind and solar market in
China.
• Speed of change – While US and Europe overcome the credit crisis, with all the factors in
place, there will be a much quicker transfer of Clean Technology to APR than many people
expect.
1.4 Key Challenges for the Clean Tech Market in Asia Pacific
• International Government Support and Policy – China and India have already set
renewable targets in key sectors which will be the driver for set up of domestic industries that
will supply both the domestic and international markets. The Chinese government in particular
has used its fiscal policy to inject investment in key sectors such as solar and wind by
encouraging lending until the end of 2009 and view this economically, rather than politically.
However, without a framework in place this may lead to bilateral deals, thus the expansion of
Chinese products may be confined to the region rather than the US and Europe.
1
See Figure 2.2, “Primary Energy Demand in Asia”
2
See Figure 2.6, “Number of Patent Filings in Clean Technology by country” and Section 2.5, “Research &
Development”
3
See Section 2.4, “Targets and Incentives”
Asia Pacific Clean Tech Handbook 20 of 348 31-May-10
• Private Sector Funding Framework- What is missing is a framework which allows new
companies to grow: a gap exists in the market for early round investment. The Venture
Capital and Private Equity businesses are still a nascent industry, compared with the US and
European markets.
1.5 Who would be interested in this Report?
• Venture Capital and Private Equity Funds and banks interested in which countries, sectors
and companies to target their investment
• Government and public institutions
• Financial advisors
• Individual investors
1.6 Structure of the Handbook
While Clean Technology involves many different sector includingenergy efficiency, this version of
the Handbook will focus on renewables and other key technologies affecting power generation,
notably CCS and Smart Grid.
Figure 1.1 – Asia Pacific Clean Tech Market Map
International Policy and Regulation
Government Policy and Regulation
Energy Supply Energy Usage Other Pollutants Support
Sectors
Power
Renewable Conventional
Generation Building Industry Transportation Water Waste Services
Energy Energy
Distribution
Private
Wind Generation Coal Design Design Road Extraction Collection
Sector Funding
Private
Solar Distribution Gas Materials Materials Rail Treatment Recycling
Sector Services
Energy from Government
Biofuel Storage Oil Efficiency Efficiency Air Distribution
Waste Agency
Sub Sectors
Demand
Biomass Nuclear Water Usage Treatment Universities
Management
Marine Hydrogen Storage Wastewater Disposal
Geothermal Covered in report
Not covered in report
Hydro Services & Support
The Handbook is written in two parts for ease of reference by country or by energy sector:
• Part A - Country Review – focused on country policy and incentives, such as regulation,
renewable energy targets and Feed in Tariffs
• Part B – Energy Sector Review – focused on the process and supply chain of sector and
key companies within each sector
Asia Pacific Clean Tech Handbook 21 of 348 31-May-10
PART A – COUNTRY REVIEW
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2 COUNTRY OVERVIEW
2.1 Background
The Asian Pacific Region (APR) can be broken down into four sub regions:
2.1.1 North Asian Countries
China (Section 3.2), Japan (Section 3.3), South Korea (Section 3.4), Taiwan (Section 3.5), Hong
Kong (Section 3.6). These five lead the world in engineering and manufacturing, with strong links
between government and industry. Additionally North Asian countries are resource poor,
therefore are net importers of oil and other commodities, thereby raising the issue of energy
security. Clean Technology is viewed as a new strategic industry where there still no dominant
companies. Clean Technology has many synergies with existing industries such as electronics for
photovoltaic cells (PV) and heavy industry for wind generation. Key characteristics include:
• Leaders in Manufacturing – synergies with existing industries
• Net Importers of energy
• Largest emitters of carbon by country
• Close ties between government and industry means that policy has the potential to be
implemented more effectively
2.1.2 South Asia
India (Section 3.7). While India will be the second largest market after China, it does not have the
same drivers as it North Asian Colleagues. Key characteristics include:
• Large emerging market, but relatively poor compared with North Asia
• Net importer of energy
• Large emitter of carbon
• Follower of technology andmanufacturing
• Government 5-year planning, but less directive than North Asia
2.1.3 South East Asia
Singapore (Section 3.8), Indonesia (Section 3.9), Malaysia (Section 3.10), Philippines (Section
3.11), Thailand (Section 3.12) and Vietnam (not included). Key characteristics include:
• Large emerging market but still relatively poor compared with North Asia
• Large geography (archipelagos), no infrastructure in place – favour decentralized power
system
• Rich in renewable resources
• Follower and importer of technology and manufacturing
Asia Pacific Clean Tech Handbook 23 of 348 31-May-10
2.1.4 Pacific
Australia (Section 3.13) and New Zealand (Section 3.14) are both OECD countries and culturally
‘Anglo Saxon’ and not Asian. Howvever, due to their geographic location, are part of the APR and
will be a key area in Clean Technology, due to:
• Developed countries
• Resource-rich
• Leaders in innovation
• Established capital markets
2.1.5 Key Drivers for Clean Tehnology
Key drivers for Clean Technology within these countries include:
• Market Size & Growth
• Policy/Regulation
• Developed vs. Emerging Markets
• R&D/Manufacturing
• Capital Raising
The following figure summarises the motivation, framework, sectors and factors of the Clean
Tech market in APR:
Figure 2.1 Asia Pacific Clean Tech Drivers
Rising Energy Costs Depletion of Natural Climate Change & Lowering Clean Tech Costs
Resources Environmental Impacts
International Policy and Regulation
Government Policy and Regulation
Developed vs Emerging Research & Development Capital Markets
Energy Supply Energy Usage Other Pollutants Support
Renewab Power Conventi Building Industry Transport Water Waste Services
le onal ation
Generatio
County Variance Clustering of Industries Adoption of Technologies suited to
natural resources?
Asia Pacific Clean Tech Handbook 24 of 348 31-May-10
2.2 Market Size & Energy Mix
If we look at the potential market sizes for Clean Technology, then the region will contain some of
the largest markets, based on energy usage rather than GDP. In 2009, Asia Pacific has three of
the top ten countries in installed renewable energy, with around 2,338 TWh by 2030.
If growth factors are applied, then APR will account for three of the top five largest energy users
globally: China, India and Japan. It is estimated that China will double power generation by 2020
and North Asia will account for over 75% of the total power generation for APR. According to the
EIA forecasts, South East Asia in aggregate is projected to be a similar size to India by 2030.
Asia Pacific Clean Tech Handbook 25 of 348 31-May-10
2.3 Policy and Renewable Regulation
Countries in APR are undergoing a huge transformation in industrialization and urbanization. This
will lead to migration from rural areas to cities and thus lead to an increase in demand for power
generation in urban areas. While discussions over emissions and setting a price on carbon were
not resolved in Copenhagen, APR countries have already embraced Clean Technology and put in
place new aggressive targets for 2020. Countries such as China and India understand that they
will be some of the most affected countries due to climate change, but politically Clean
Technology is an easier sell over a reduction in emissions as it promotes the:
• Creation of strategic domestic industries, that can eventually export internationally
• Taking advantage of the high quality, low cost manufacturing base
• Reduction of energy usage
• Technology transfer and payment of credits
There is a possible risk of allocating too much resource to Clean Tech over emissions targeting,
resulting in inefficient deployment of capital by government. If government sets renewable targets
which drive investment, then they may misapply investment such as the Feed in Tariff for PV
Solar in Germany and Japan. A case for a “Carbon tax” or “Carbon Trading Scheme” is that it
internalizes the cost of carbon and thus leaves decision making to the private sector, which in
theory should be more efficient.
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2.4 Targets & Incentives
Key targets and incentives for Clean Technology have been focused on intermittent wind and
solar power which only affect peak loads rather than base load generation. China is already
experiencing problems in managing the changes in supply to the grid4. The various “Feed in
Tariffs” (FiT) that are primarily focused on solar and wind may distort the market and exacerbate
the problem.
Figure 2.4 – Summary of Renewable Energy Incentives by Country
Generation TWh RE Targets FiT CapEx Tax & VAT
2010/20 Subsidy Incentive
China 3968 6344 20% by 2020 Yes na Yes
Japan 1063 1182 20% by 2020* Yes Yes Yes
Korea 412 537 7% by 2010 Yes na na
Taiwan 218 354 12% by 2020 Yes na na
India 863 1463 10% by 2012 Yes Yes na
Indonesia 180 290 17% by 2025 Yes Yes na
Philippines 70 115 2010 2010 Yes Yes
Thailand 170 260 20% by 2022 Yes na na
Malaysia 130 150 5% by 2050 Yes na na
Australia 282 300 20% by 2020 State Level Various na
NZ 45 50 90% by 2025 Yes na na
Source: Government Publications, Thomson Reuters
2.4.1 Feed in Tariffs (FiT)
There are currently around 40 FiT programs to promote and encourage renewable sources, with
Germany’s FiT solar program held up as the successful model. Asian countries are in the process
of applying FiTs, with a summary below:
4
Thomson Reuters
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• China –has put in place its “Golden Sun” scheme to encourage investment in the solar
industry. There are plans for a FiT for China, but at the time of writing it is not clear when it
will be put in place and whether it will be set at the national level or at the provincial level 5.
• Japan –has put in place a FiT scheme specifically for grid-connected solar power systems.
The initial rate paid to the owners of systems will be around 50 yen per surplus kWh ($55 per
MWh) produced. Utilities will be obligated to participate in the scheme. Japan aims to have
solar power systems installed on over 70% of new houses and aims to regain its top spot as
the largest solar market in the world. 6
• Taiwan - The MOEA announced the final FiT scheme for renewable energy at the end of
2009. The tariffs were set at TWD 11.12 (USD 35 cents) per kWh for Photovoltaic (PV)
projects and TWD 2.38 (USD 7 cents) per kWh for wind projects 7.
• India - India's Central Electricity Regulatory Commission (CERC) in New Delhi announced
new regulations for a FiT system for both wind and solar energy on Sepetember 17th, 20098.
• Australia –does not have a national FiT, but relies on states to set their own rates. Rates
range from around 20 to 60 cents per KWh.9
5
NDRC, Medium and Long Term Development Plans for Renewable Energy
6
Thomson Reuters, Yomiuri Shimbun
7
MOEA, Government Publicatiion
8
Government Publication
9
Based on Government Publication and Website
Asia Pacific Clean Tech Handbook 28 of 348 31-May-10
Figure 2.5 – Summary of FiTs by Country
General Wind Solar Biomass Hydro Geothermal
China $0.075/kWh $0.16-0.22/kWh
Japan $0.24/kWh $0.5/kWh
Korea Standard Price
Taiwan $0.07/kWh $0.35/kWh
India $0.63-0.89/kWh $0.57-0.87/kWh $0.49-0.80/kWh
Indonesia $0.07/kWh % of production
cost
Philippines To be set in 2010
Thailand See Breakdown $0.16/kWh $0.24/kWh $0.08/kWh $0.01-0.02/kWh
Malaysia $0.06/kWh
Australia $0.40-0.54/kWh
NZ
Source: Government Publications, Thomson Reuters
2.4.2 Baseload Power Generation
Factors such as the move to the electric vehicle will put further pressure on base load power
generation. Currently the primary energy source for base load power generation in APR is still
coal, which still accounts for over 70% of the total power generation in China, India and
Australia. Addressing how to reduce reliance on coal for baseload power generation will be key to
addressing the issues of carbon emissions in the APR.
A key driver for Clean Technology should be to increase renewable targets for the generation of
base load power instead of just the peak load.
Short term investment and targets should be focused on renewables (or non-fossil), such as
nuclear, hydro, biomass and geothermal which can provide reliable base load power.
Key targets and incentives for Clean Technology have been focused on intermittent wind and
power, that only affect peak load, rather than base load generation. China is already experiencing
problem is managing the changes in supply to the grid. The various Feed in Tariffs (FiT) that are
primarily focused on solar and wind, may distort the market and exacerbate the problem.
Asia Pacific Clean Tech Handbook 29 of 348 31-May-10
Figure 2.6 Policy and Incentives
Urban Environment
*Targets for
Base Nuclear, hydro, biomass, renewables
Policy
geothermal
Peak Wind, solar
For China, India, SE Asia
However, policy and incentives are geared towards renewables
that affect peak loads – wind and solar
Increase in industrialisation
and urbanisation and
migration from rural areas to Rural Environment
urban areas
Off Grid Wind, solar
Power will be used for
electricity that will lead to
increase demand on base
Transport and peak loads
Road Electricity, Biofuel, Hydrogen
In Asia, countries such as China, India and SE Asia are undergoing huge transformation in urbanisation
Policy is focused on renewable targets that affect baseload and there is a focus on nuclear, hydro, geothermal
and biomass that represent the major short term solutions
Power Generation in Asia
2010 2020
Genera Generat
tion Capacit Therma Renew ion Capacit Therma Renew
(TWh) y (GW) l Nuclear able (TWh) y (GW) l Nuclear able
China 3968 801 81.22% 1.64% 17.14% 6344 1116 76.41% 4.51% 19.08%
Japan 1063 253 61.84% 27.37% 10.79% 1182 260 59.23% 29.27% 11.50%
South Korea 412 70 64.32% 34.47% 1.21% 537 87 58.24% 39.33% 2.43%
Taiwan 218 75.23% 17.40% 7.37% 354 77.99% 16.38% 5.63%
India 863 177 77.29% 4.29% 18.42% 1463 247 71.79% 8.15% 20.06%
Indonesia 180 85.85% 0.00% 14.16% 290 87.17% 0.00% 12.83%
Malaysia 110 81.85% 0.00% 18.16% 150 76.91% 0.00% 23.09%
Philippines 70 62.83% 0.00% 37.17% 115 65.96% 0.00% 34.04%
Thailand 170 93.51% 0.00% 6.50% 260 94.33% 0.00% 5.67%
Australia 282 90.70% 0.00% 9.31% 300 89.74% 0.00% 10.26%
New Zealand 45 27.00% 0.00% 73.01% 50 26.21% 0.00% 73.79%
Source: EIA, IEA, CARMA, BP Statistics, Estimates
Asia Pacific Clean Tech Handbook 30 of 348 31-May-10
The key driver for power generation is cost. In the absence of an ‘internalised’ Carbon Price, coal
is the still the cheapest source of power generation, followed by Natural Gas and Nuclear. The
following section highlights and compares the cost and intermittency of generation from
renewable sources. Some technologies such as Wave technology are still 4-5 times more
expensive than coal and are thus still mot commercially viable.
The cost of power generation will vary by country and power station. Costs for power generation
can be broken down into:
• Capital Costs;
• Operation & Maintenance; and
• Fuel Costs
Based on the 2005 IEA study, the average generation costs for different types of power stations
(based on 5% discount rate) are:
A) By Conventional Power:
(i) Baseload generation
• Coal fired power station generation costs range between 25 and 50 USD/MWh
• Natural Gas fired power station generation costs range between 37 USD/MWh and 60
USD/MWh
B) By Renewable Energy:
(i) Baseload generation
• Nuclear power station generation costs range 21 and 31 USD/MWh
• Biomass - generating electricity range between 25 and 65 USD/MWh for most Combined
Heat and Power plants (CHP) but reaches more than 120 USD/MWh for the small biomass-
fuelled plant.
• Waste to Energy and Landfill Gas – generating electricity ranges from negative values
(service value of burning waste) to around 24 USD/MWh
• Geothermal - generating electricity are 27.1 USD/MWh. Although this is based on one plant
in the US and the cost are much higher for other technologies and can reach 100 USD/MWh
for geothermal in Australia
• Hydroelectricity - generation costs range between some 40 and 80 USD/MWh for all plants
except in Japan where they reach more than 140 USD/MWh.
(ii) Peak generation
• Wind-generation costs for the wind power plants considered in the study range between 35
and 95 USD/MWh, but for a large number of plants the costs are below 60 USD/MWh.
Asia Pacific Clean Tech Handbook 31 of 348 31-May-10
However, costs have fallen in recent years and should be in the lower range. The main issue
for wind is intermittency and availability/capacity factors of wind power range between 17%
and 38% for onshore plants, and between 40% and 45% for offshore plants and cannot be
use for baseload power.
• Solar-generation costs of electricity were around 150 USD/MWh in 2005 and have fallen
drastically, whereas they are now commercially viable without FiT subsidies at certain times in
the day in sunny locations such as the Mediterranean and California. Solar also suffers from
intermittency issues, with availability/capacity factors reported for solar plants varying from
9% to 24% for the solar PV plants.
• Wave/Tidal Technology – generating electricity is still in it pilot scheme: costs can reach up
to 225 USD/MWh.
Figure 2.7 - Cost of Generation
Marine
Solar Availability 10-25%
PEAK
Wind (Offshore)
Availability 40-45%
Wind (Onshore) Availability 20-40%
Hydro
W2E
Biomass
Geothermal (EGS)
BASE
Geothermal
Nuclear
Gas
Coal
0 20 40 60 80 100 120 140 160 180 200
$/MW
Source: IEA, Estimate
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2.4.3 Clean Development Mechanism Projects (CDM)
In the absence of a Carbon Price, CDM plays a key role in subsidising renewable energy for
many non Annex I countries in the APR 10. CDM has been an additional incentive for Non Annex 1
countries 11 to generate additional revenues and encourage the generation of renewable energy.
Asia accounts for over three quarters of all 5,516 CDM projects globally. China and India are the
two largest markets globally, with 2,048 and 1,477 projects respectively. China’s projects are
focused on hydro, wind, biomass, EE and coal bed methane projects, while India is biomass,
wind and EE projects.
While no other country comes close to China and India - South East Asia - Indonesia, Malaysia,
Thailand, and Vietnam- is the other sub region that accounts for the other major source of CDM
credits.
10
Annex I of the FCCC lists the countries who were members of the OECD in 1992, 11 countries undergoing the
process of transition to a market economy, and the European Economic Community. Annex I parties are committed
to adopt national policies and take measures to mitigate climate change.
Asia Pacific Clean Tech Handbook 33 of 348 31-May-10
Figure 2.8 - CDM Projects in Asia
China 918 418 82 57 354 3 168 61 4
5 3 2 2048
India 150 380 386 82 366 5 7 13 1
0 1 17 5 1476
SE Asia 8 1 321 6
9 0 8 586
8
S Korea
85 Key
Hydro Energy Efficiency Agriculture/Forest
Other Wind Transport Industrial
80
Biomass Methane Other GG
China and India dominate the CDM projects globally and in Asia
China is dominated by hydro, wind and energy efficiency projects
Renewables make up over 50% of CDM projects
Source: UNFCC
Due to the muted response at Copenhagen the question is now, “What next?” CDM is viewed as
time consuming, project specific and thus not scalable. There are attempts to move to sector
specific targets that will allow for quicker adoption of standards and best practice and thus an
ability to scale more quickly. Other discussions concern a developed country fund to finance key
technologies through some form of Foreign Direct Investment (FDI), although there could be
strings attached – such as funding of developed country technologies to be used in developing
countries. Developed countries, such as Japan already employ such tactics in its dealing with
developing countries and this approach is sure to increase.
2.5 Research & Development
Another key driver is the Research and Development in the Clean Technology market. In APR,
this tends to be dominated in the northern Asian countries – Japan, Korea, Taiwan and China
because they are closely aligned to their existing manufacturing expertise. It is also interesting to
note that governments have taken initiatives such as regulation, subsidies and fostering the
development of domestic Clean Technology industries – for example, solar in Japan, solar and
wind in China – even at the expense of technologies that are more aligned with countries’ natural
resources. For instance, Japan has abundant wind, wave and geothermal resources, yet
subsidizes and promotes the solar industry at the expense of other more suitable technologies. In
Asia Pacific Clean Tech Handbook 34 of 348 31-May-10
some ways, this close integration between government policy and industry – will act as the key
driver for these northern Asian countries.
A study was undertaken by Thomson Reuters Scientific on patent filings in the renewable sector
and a comparison between 1997-1999 and 2006-2008. This study included 12,000 filings and
focused on the three main renewable sectors, namely: wind, solar and marine technologies.
Patent filings are an indicator of research and development in sector and “statement of intent” by
a country or company to invest in a particular industry.
China, Japan and Korea are the leaders of such filings globally which is bourne out by their
respective positions in the wind, solar and marine sectors. It is also interesting to note India’s
comparative weakness in this area.
• China - It may be a surprise to see China listed first, but Chinese inventions are increasing
rapidly in almost every field. All 3 areas of wind, solar and marine are represented currently,
with wind dominating. It is also ironic for a country that has in the past paid little respect to
Intellectual Property Rights in its domestic market, should now file so many patents in the
international markets to protect its own intellectual property
• Japan - The number of Japanese inventions is high and holding fairly steady. What is notable
is a switch in emphasis from solar to wind, as well as a decrease in marine technology
• Korea - Korean inventions are taking off rapidly, but are still far below China and Japan. Wind
energy predominates.
Figure 2.9 Number of Patent Filings in Clean Technology by country
Source: Thomson Reuters Scientific
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2.6 Financing
2.6.1 Public Funding
Countries in Asia Pacific recognize the importance of Clean Technology, as a driver for growth
and have set aside funds to promote the development of their own domestic industries. Key
countries include:
• Japan – now spends around 3 to 3.5% of GDP on R&D. Several funds and initiatives have
been set up to promote R&D in Clean Technology via NEDO and AIST. METI has a budget of
JPY500 billion (USD 5 billion), which it disburses to a range of agencies, universities, public
research organisations and the not-for-profit sector for R&D.
• South Korea - will invest KRW 107 trillion (USD 96 mm) over the next five years in solar
projects, energy-saving lighting, hybrid cars and other commercially viable, environmentally
friendly businesses, its presidential office has announced. The Korean government will invest
2% of GDP annually in renewable energy from 2009 to 2013.
• Singapore - has embarked on a comprehensive and ambitious program to become a Clean
Tech hub for Asia. Through the Economic Development Board (EDB), it has allocated SGD$1
billion (USD 727 mm), as part of its Sustainable Blueprint for 2030. In addition, it has set
aside SGD$680 million (USD 494 mm) in Clean Energy (SGD$350m) and environment and
water (SGD$330m).
• Philippines - The Department of Energy (DoE) has awarded 87 contracts to 18 companies to
harness renewable energy in November 2009, investing a total of P90.4 billion (US$ 1.9
billion)
• Thailand - The World Bank said it plans to offer Thailand USD 700m for its clean energy
projects and to boost energy efficiency.
• Australia - The Renewable Energy Development Initiative was a $100 million fund to
supporting renewable energy innovation and commercialisation.
2.6.2 Private Funding
• Australia - COAL21 Fund is raising more than AUD 1 billion over 10 years from a voluntary
levy on black coal production to support the pre-commercial demonstration of low emissions
technologies in the power generation sector.
2.6.3 Private Equity/Venture Capital
The traditional Asian model of governments working into tandem with large corporations means
that a lot of R&D and hence investment falls within large corporations – rather than via small and
emerging venture capital backed ventures.
China, India and Australia lead the Venture Capital and Private Equity deals in Asia Pacific. The
notable laggard is Japan, where it is a leader in research and development and Intellectual
Property, but no way of accessing and leveraging that knowledge.
Asia Pacific Clean Tech Handbook 36 of 348 31-May-10
Also note that there are significant restrictions for Venture Capital funds to have a licence in
China. The Chinese Government only granted a licence to an Israeli fund this year to start a fund
in China. All other investments to date have been in joint venture with local partners.
Figure 2.10 - VC/PE Clean Tech Deals in Asia
China Japan HK
India S Korea Singapore
2,110M
Australia Taiwan Other
71 Deals
67 Deals
1,624M
48 Deals
45 Deals
680M
386M
29 Deals 291M
2005 2006 2007 2008 2009YTD
Source: Thomson Reuters Venture Capital Database
2.6.4 Public Companies
Only the ASX has defined companies in the Clean Tech sector and lists 73 companies in the
Clean Tech sector. For other exchanges, Clean Tech companies fall into a number of different
sectors – environmental sector services, industrial engineering (wind, marine), and semi
conductors (solar)
China has multiple listings for many of its companies on the US and HK Stock exchanges, as a
way to allow Chinese companies to access foreign capital.
Asia Pacific Clean Tech Handbook 37 of 348 31-May-10
Figure 2.11 – Public Clean Tech Companies in Asia
China Japan HK
India S Korea Singapore $81.9B
$76.8B
Australia Taiwan Other
156 Companies
146 Companies
130 Companies
115 Companies
102 Companies
$37.3B
$32.3B
$21.6B
2005 2006 200 200 200
Source: Thomson Reuters Venture Capital
2.6.5 Project Financing
A significant proportion of Renewable Energy projects are large scale infrastructure projects
funded by project finance. There was a slight decrease in amount of project finance in Clean
Technology in 2009 compared with 2008. The projects were in Nuclear, Hydro, Biomass and
Wind technologies.
Asia Pacific Clean Tech Handbook 38 of 348 31-May-10
Figure 2.12 Project Finance Deals in Asia PacificSector
Wind Solar Water
Hydro Geothermal Waste/Wastewater
Biomass, W2E Nuclear Other
102 Projects
45,694M 44,228 M
44,178M
90 Projects
69 Projects
44 Projects
10,158M
2006 2007 2008 2009
Source: Thomson Reuters
Asia Pacific Clean Tech Handbook 39 of 348 31-May-10
3 COUNTRY, BY ENERGY SECTOR
3.1 Summary
2009 marked a point in time when APR countries recognized the importance of clean energy in
terms of energy security, reduction in carbon emissions and growth of a new industry. This has
lead to the announcement of new renewable energy targets and Feed-in-Tariffs.
3.2 China
3.2.1 Background
China is expected to announce a new set of aggressive renewable targets, as part of the 12th
Plan and raise targets to 20% of total usage by 2020. Encouraged by its “Made in China” fiscal
stimulus in 2009, China views Clean Technology as key to:
• Growth of a new strategic domestic industry;
• Energy security and reduce reliance on imported energy sources; and
• Combat growing carbon emissions and reduction in energy intensity
China has made progress in laying a foundation for the future growth of green technologies and
has rapidly emerged as one of the world’s leading providers in key sectors, most notably wind
and solar. It is also taking significant steps to use energy resources more efficiently.
3.2.2 Market Size and Energy Mix
Primary Energy Demand
Based on the EIA international outlook for 2009, China’s energy usage is expected to grow to 155
Quadrillion BTU by 2030 and account for nearly a quarter of the world’s energy usage. Coal
usage will make up 63% of China’s total energy mix and 80% of its power generation.
Electricity Demand
Coal makes up 80% of China’s power generation and is expected remain the major source of
power generation for the foreseeable future. However, the EIA projections do not include the
latest changes in renewable targets, such as the 100GW target for wind (40GW assumed) and
30GW target for PV (4GW assumed).
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Gasoline/Diesel Demand
According to the EIA, demand for Gasoline is around 67.5 million tonnes in 2007 and 150 million
tonnes for diesel.
China has a target of 10 million tonnes for ethanol and 2 million tonnes for biodiesel by 2020.
3.2.3 Government Agencies
China’s national government develops targets, guidelines and regulations, while there are
provincial and local governments that are involved in the implementation of these regulations and
policies. A summary of key agencies involved in Clean Technology are:
• National People’s Congress (NPC) is the country’s highest legislative body and responsible
for formulating China’s laws as well as approving and tracking implementation of China’s Five
Year Guidelines for Economic and Social Development
• The State Council is China’s highest executive body, and takes direction from the NPC. The
State Council enacts key government regulations and coordinates the activities of China’s
various ministries.
• National Development and Reform Commission (NDRC) established the policy document
for the medium (2010) and long term (2020) development plan for Renewable Energy in
China. Plays a key role in developing and implementing Five-Year Guidelines
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• National Energy Commission (NEC). The Chinese government has set up the NEC in
January 2010 as the highest level state agency to manage energy issues and co-ordinate
overall planning between ministries.
• National Energy Authority (NEA) is the main energy regulator and currently drafting the
energy planning during the period 2011 to 2015.
• Ministry of Environment Protection (MEP). Responsible for China’s overall environmental
management. Sets pollution as well as energy and resource efficiency standards
• China Atomic Energy Authority (CAEA). Under the control of the Commission for Science,
Technology & Industry for National Defence under the State Council of Ministers, the CAEA
(www.caea.gov.cn) is responsible for planning and managing the peaceful use of nuclear
energy and promoting international cooperation. Since being split from the old China National
Nuclear Corporation (CNNC) in 1998, CAEA has been the key body planning and managing
civil nuclear energy and reviewing and approving feasibility studies for new plants.
3.2.4 Clean Technology Regulation
Clean Technology
• 12th Five Year Plan. China makes use of its national five year programs for Economic and
Social Development to respond to policy and drive through new renewable targets through
the China’s National People’s Congress. China is in its 11th Plan (2005 to 2010) and in the
process of outlining targets for the 12th Plan in 2010. Based on comments from reports, it
appears that renewable targets for the 12th Plan will be significantly increased to position
China as a world leader in Clean Technology. Updated renewable targets are shown in
Section 3.2.5, below.
• Draft Energy Law. China drafted the Energy Law in 2006 and submitted to the Legislative
Affairs Office of the State Council in February 2009. The Law will need to be submitted to the
National People’s Congress and is expected to come into force in 2010.
Renewable Energy Law
The Renewable Energy Law, which came into effect 1 January 2006, outlines provisions on
public funding for renewable energy development, discounted lending and tax preferences and
connection of renewable generation to China’s electricity grid.
Under the law, grid operators are required to purchase all electricity generated from renewable
energy sources within their domain or compensate renewable energy producers for their losses.
China's legislature is amending the law to set a minimum annual quota that power grid operators
must purchase from renewable energy sources, in an effort to encourage them to buy more
electricity from wind farms, solar farms and biomass projects. An amendment was submitted and
approved by the NPC in December 2009 require electricity grid companies to buy all the power
produced by renewable energy generators.
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A renewable energy development fund will be set up to help cover levied surcharges on
renewable energy prices.
Medium and Long Term Plans
“Medium and Long-Term Plans” are policy planning tools used by China’s regulators, providing
cross-ministry policy guidance for 10-20 year periods and complementing the more detailed five-
year plans. Recent plans include Energy Development (2004-2020) and Renewable Energy
Development (2007-2020)
Local Government
Provincial and local governments play an important role in regulating China’s cleantech policies.
Most central government agencies have corresponding bodies at local levels that are commonly
tasked with implementing the policies of the central regulators, yet this interaction can often lead
to discrepancies between central government policy and local implementation, as provinces vie to
establish themselves the leading region for Clean Technology.
3.2.5 Renewable Targets & Incentives
As part of the 12th Plan, China is expected to increase its renewable target to 20% by 2020. This
will include target increases in key Clean Technology sectors, including: wind, solar,
hydroelectricity and nuclear.
Chinese Renewable Targets
Year 2005 2010 2020
Renewable Target 7% 10% 20%
Hydro 117GW 190GW 300GW
Wind 1.3GW 10GW 100GW
Solar PV 0.07GW 0.3GW 20GW
Solar Water Heating 80 Mm2 150 Mm2 300 Mm2
Biomass 2GW 5.5GW 30GW
Nuclear 7GW 9GW 60GW
Bioethanol 1 MT 3 MT 10 MT
Biodiesel 0.05 MT 0.2 MT 2 MT
Biomass Pellets 0 1MT 50 MT
Biogas and biomass gasification 8 billion m3/year 19 billion m3/year 44 billion m3/year
Source: NDRC, Medium and Long Term Development Plans for Renewable Energy, EIA, IEA, GWC, WNA, World
Energy Council, Government Publications, Thomson Reuters
• Hydro. China plans to double its existing power generating hydroelectric capacity from about
150 GW to 300 GW by 2020, primarily through large scale hydro projects, such as Three
Gorges Dam.
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• Wind. China is expected to increase its 2020 target from 10GW (which it has already
exceeded) to 100GW by 2020. In addition, there is a new Feed in Tariff in place since August
2009 to encourage wind power to the grid.
• Solar. China has introduced government subsidies and encourages investment in the growth
of domestic solar market in 2009. From a market of virtually zero (150 MW in 2008), China is
expected to increase targets in PV solar to 20GW by 2020.
• Solar Water Heating. One area of renewable energy in which China has emerged as an
unchallenged leader is solar water heating. Currently, China boasts the world’s largest
installed base of solar water heaters, over 125 millions m2, with one in ten families having
adopted the technology. Analysts estimate that over 95% of core solar water heating
technology is held by Chinese firms, such as Himin Solar Energy Group. China’s annual
production of solar water heaters in 2007 reached 40 million m2, accounting for two thirds of
global output.
• Nuclear. Nuclear projections are 60GW installed capacity by 2020, with 20 Nuclear Power
stations under construction. In addition, a further statement from the State Council in 2009 is
considering raising the 2020 target to 86 GW installed.
• Biomass. China has increased it biomass target to 30GW, primarily through cogeneration of
agricultural waste and waste to energy projects.
• Biofuels. China has put in place a 10 million tonnes annual target for ethanol and 2 million
tonnes target for biodiesel. However, the government has also put in place a ban on biofuels
generated from grains & oilseeds and this limit the ability to produce biofuels domestically.
Feed in Tariffs (FiT)
China has put in place its Golden Sun scheme to encourage investment in the solar industry and
has recently put in place a FiT for onshore wind for four regions. There are plans for a FiT for
China, but it is not clear, when it will be put in place and if it will be set at National level or at a
provincial level. Current FiTs in place include:
• Wind. China has set a fixed FiT for new onshore wind power plants in a move to increase
wind capacity. The NDRC announced in 2009, four levels of onshore wind projects, which
according to region will be able to apply for the tariffs. Areas with bs2
• Solar. The Golden Sun subsidy was aimed at residential installations. There are also plans
for FiTs for large scale solar installations, expected to be between 1.09 yuan and 1.5 yuan
(US $0.16-0.22) per kWh of electricity produced at large-scale photovoltaic (PV) arrays.
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Key Subsidies for Clean Tech in China
Subsidy Date Amount Comment
Large Scale Solar FiT Tbc • 1.09 to 1.5 yuan per • Large scale solar arrays
kWh
Wind Power Feed in August 2009 • 0.51 to 0.61 yuan per • FiT for Wind
Tariff kWh
Golden Sun July 2009 • 50% of grid connected • 300kW min capacity
investment • 1 year construction
• 70% of off grid • 20+ year operation
investment
Solar Roofs March 2009 • 15-20 yuan per watt • New construction
• 50kW installation
PHEV/EV/FC January 2009 • 28-600k yuan per • Fuel saving of at least 5%
vehicle for passenger vehicles
• 10% savings for buses
Wind Turbines August 2008 • 600 yuan per kW • Only Chinese turbine
manufacturers
• 50 split between
component suppliers and
manufacturers
Biomass Power July 2008 • Temporary tariff • Limited feedstock
increase by 0.1
yuan/kWh
• •
3
Coal Bed Methane April 2007 0.2 yuan per m Methane for consumer and
chemical industry
Source: NDRC, Government Publications, Thomson Reuters
Impact of Targets and Incentives
Based on the increased targets, China will install an additional 120GW more Renewable Energy
by 2020, compared with EIA assumptions.
Comparison of EIA Assumptions and Government RE Targets
Year 2020 Targets EIA Assumptions Difference
Renewable Target 20% 19% (24% with
Nuclear)
Hydro 300GW 310GW -10GW
Wind 100GW 40GW 60GW
Solar PV 20GW 4GW 16GW
Biomass 30GW 0 30GW
Nuclear 60GW 36GW 24GW
Total 120GW
In order to meet a 20% renewable target by 2020, as proposed by the government, it will require
an estimated additional 60 billion kWh (including hydro).
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Capacity Requirement to meet 20% Renewable Target by 2020
Solar Wind Geothermal
Renewable Target 26-66GW 16-33GW 7GW
Assumption that solar is 10-25% available, Assumption that wind is 20-40% available, Assumption that wind is 90%
available
3.2.6 Research & Development
The central government subsidies R&D on key renewable energy technologies through NDRC
and Ministry of Science and Technology (MoST) and also subsidies local government
initiatives. An example is that China has jointly launched the Sino-Danish Renewable Energy
Development program with Denmark to help stimulate clean energy development. The Danish
government will provide its sector experience and grant USD 18.3m to the program. In July 2009
it decided to jointly invest USD 15m with the US to establish a Sino-US Clean Energy Research
Centre.
3.2.7 Financing
Public Sector Funding
Central government and some local governments provide the investment subsidies for the
development of renewable energy through several big national programs, for example, rural small
hydropower program, rural household biogas program, and providing subsidies to small scale PV
systems and wind systems in remote areas.
Private Sector Funding
Venture Capital
Based on the Thomson Reuters Venture Capital Database, China leads Asia, in terms of Clean
Tech Venture funding, with 12 Deals totaling $147million in 2009. This is down from 2008.
Project Finance
China also leads the number of project finance deals in Asia, with 9 deals amounting to over $10
billion, which was down from 2008.
Public Companies
Most Chinese Companies involved in Clean Tech are listed on the Shanghai and Shenzhen
Exchanges, with an inceasing number of companies listed in Hong Kong. There were 28
companies listed on the Shanghai and Shenzhen Stock Exchanges, with a Market Cap of $25.6
billion in 2009.
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Figure 3.2 - Private Sector Funding in China
$29.4B 261M
VC/PE Deals $25.6B
Project Financing Deals
208M
Market Cap/Companies
147M
134M
26 Deals
$12.7B
$11.7B 28 Companies
$10.0B
17 Companies 11.1B 25 Companies
21 Companies
$6.0B
15 Companies
18 Deals
$4.3B
13 Deals 12 Deals
10 Deals
9 Deals
8 Deals
5 Deals 0.4B
13M 3 Deals
2005 2006 2007 2008 2009
Source: Thomson Reuters
3.3 Japan
3.3.1 Background
Japan is globally the second largest economy, the fifth largest emitter of carbon and along with
Chindia, an important player in terms of their energy use. However, unlike China and India, Japan
is a Kyoto signatory therefore committed to a carbon emission reduction by 2012.
Japan is one of the leading countries in Clean Technology, with leading companies such as
Sharp and Kyocera leading photovoltaic (PV) technology. It is second to China in terms of patent
filings in Clean Technology.
3.3.2 Market Size & Energy Mix
Primary Energy Demand
Oil is the most consumed energy resource in Japan, although its share of total energy
consumption has declined by about 30 percent since the 1970s. Coal continues to account for a
significant share of total energy consumption, although natural gas and nuclear power are
increasingly important sources, particularly as Japan pursues environmental policies. Japan is the
third largest consumer of nuclear power in the world, after the United States and France.
Hydroelectric power and renewable energy account for a relatively small percentage of total
energy consumption in the country. Total energy consumption from 2003 to 2030 is forecast to
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grow by 0.3 percent per year on average, relatively small as compared to China’s forecast growth
rate of 4.2 percent per year on average, according to EIA data. 12 The total primary energy
production was 4.295 Quadrillion Btu in 2006. 13
Power Generation
Japan has a large proportion of nuclear power with an expected increase to over 40% of the total
power generation by 2030.
The various government forecasts do not taken into account recent statements by the
government to increase renewables to 20% by 2020, which would also have a substantial impact
on the energy mix. However, the Japanese power market is dominated by 10 utilities, which
effectively act as regional monopolies and require their support to effectively increase renewable
energy targets in Japan.
In order to meet a 20% renewable target by 2020, as proposed by the government, it will require
an additional 98 billion kWh (including hydro) to 190 billion kWh (excluding hydro), when
compared with EIA forecasts.
12
Source: EIA, http://www.eia.doe.gov/emeu/cabs/Japan/Background.html
13
Source: EIA, http://tonto.eia.doe.gov/country/country_energy_data.cfm?fips=JA
Asia Pacific Clean Tech Handbook 48 of 348 31-May-10
Capacity Requirement to meet 20% Renewable Target by 2020
Solar Wind Geothermal
Renewable Target 86-216GW 54-108GW 24GW
(excluding Hydro)
Renewable Target 45-112GW 28-56GW 12.5GW
Assumption that solar is 10-25% available, Assumption that wind is 20-40% available, Assumption that wind is 90%
available
Gasoline and Diesel Demand
Demand for gasoline and diesel was 57.5 million KL and 33.7 million KL in 2008, respectively.
As part of the Biomass Nippon Strategy, Japan has a 500,000KL target by 2010 for biofuels
(210,000 KL for ethanol and 290,000 KL for biodiesel) that may increase to 6 million KL by 2030
with the use of cellulosic ethanol.
This equates to 0.6% of the total gasoline demand for ethanol and 1.4% of the total diesel
demand for biodiesel.
3.3.3 Government Agencies
There are a number of government agencies involved in Clean Technology. The key agencies
are summarized below:
Renewables
• Ministry of the Environment (MOE). The Ministry passes the legislation that sets the
requirements (standards, bans, etc.) and targets that create the framework for environmental
policies. The MOE cooperates on programs with other institutions, such as METI and Ministry
of Agriculture on renewable and biofuel policy. The MOE supervises the National Institute for
Environmental Studies (NIES), which is focused on Climate Change, Sustainable Material
Cycles, Environmental Risk, and the Asian Environment.
• Ministry of Economy, Trade and Industry (METI). METI is a key driver for innovation in
Clean Technology and sees this as an area where Japan can compete globally and act as an
engine for growth. METI supplies significant research and development (R&D) budgets and is
working on maintaining Japan’s leading position in patent applications in Clean Technology,
as highlighted in Section 2.5.
• Agency of Natural Resources and Energy (ANRE). As a part of METI, the ANRE deals
with; energy conservation policy, and new energy policy.
• New Energy and Industrial Technology Development Organization (NEDO). NEDO is
Japan’s largest public management organisation promoting R&D as well as the dissemination
of industrial, energy and environmental technologies. NEDO's mission is to enhance Japan's
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industrial competitiveness and address energy and global environmental problems, and its
role is to comprehensively coordinate and professionally manage R&D activities.
• National Institute of Advanced Industrial Science and Technology (AIST). AIST is one of
the largest independent administrative institutions in Japan. In 2001, 16 research laboratories
from the former Agency of Industrial Science and Technology were merged.
• Nippon Keidanren. The mission of Nippon Keidanren is to accelerate growth of Japan's
economy via the private sector into one that is sustainable among other stated goals. In 1997,
Keidanren business federation adopted its “Voluntary Action Plan on the Environment”, a
commitment to reduce emissions of carbon dioxide by 2010 to a level lower than year 1990.
By the year of 2005, 35 industries were engaged in applying measures toward this goal
(altogether representing 45% of Japan’s total CO2- emissions in 1990). A follow-up has
shown that CO2 emissions for 2004 were 0.5% lower than in 1990, and the reduction target
has been achieved every year since 2000 (Nippon Keidanren, Nov 2005).
Energy Efficiency
• The Energy Conservation Centre, Japan (ECCJ). The Energy Conservation Centre
contributes to promoting the efficient use of energy, protection of the global warming and
sustainable development.
3.3.4 Clean Technology Regulation
Renewables
• The National Energy Strategy (2006) focusses on the promotion of energy diversification
with the aim to lower the oil demand of the primary energy mix to 40% by 2030. It also aims to
increase nuclear power make-up to 30-40% of the total power generation by 2030. There is
also a stated goal of improving energy conservation by 30% by 2030.
• National Emissions Target. As part of the Kyoto Protocol, Japan is committed to reducing
emissions targets by 6% from 1990 levels. Japan is in the process of agreeing to post 2012
targets.
• Biomass Nippon Strategy. Japan has a target of 500,000KL, as part of the strategy. It also
looks at increasing potential supply to 6 million KL by 2030 with the introduction of cellulosic
ethanol.
Energy Efficiency
Regional cooperation for energy efficiency. Japan encourages energy efficiency through
promoting energy conservation standards and assessment systems by sectors in the Asia-Pacific
region. In particular, Japan seeks to establish a regional framework to save energy. The “Asia
Energy and Environmental Cooperation Strategy” seeks to promote energy conservation by
working with other countries in Asia mainly, China and India, given the rapid increase of their
energy demand.
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3.3.5 Renewable Targets & Incentives
Japan, as a Kyoto signatory, is committed to a 6% decrease from 1990 levels by 2012. With a
change in government in 2009, the DPJ has proposed a more aggressive target of 25% on 1990
levels by 2020, which was an increase over 15% reduction on 2005 levels (8% reduction on 1990
levels).
In an interview given to Yomiuri Shimbun, Japanese Environment Minister Sakihito Ozawa stated
the government is aiming to introduce a new target for the country's environmental protection
effort – 20% renewable energy generation by 2020. The new target will be promoted through a
basic bill to be submitted to the ordinary Diet session in 2010.
The new goal is more than 10 times higher than the existing renewable target (1.3%) and twice
as high as the one proposed by the Democratic Party of Japan in their manifesto in 2009.
If the bill passes, Japan will be vying for increased solar, wind, marine, hydropower, biomass and
other renewable energies in the near future - in line with China and Australia’s 20% renewable
targets. Japan’s renewable energy accounts for 10% of the country’s total power production, and
excluding hydropower it is about 2%, according to a white paper published by the government.
According to a government estimate, Japan's plan to cut greenhouse gas emissions is expected
to boost the nation's share of electricity from nuclear power to 44% from the current 31%.
The government intends to expand power generation capacity from PV by 20 times by 2020, up
to 28 million kW. These measures announced in April 2009 are estimated to boost the share of
renewables in electricity generation to 6% from the current 1%. Geothermal is a notable absence
in the targets set.
Japan Renewable Targets
Year 2008* 2010T 2020T 2030T
Electricity Capacity 251GW 253GW 259GW 255GW
Electricity Generation 1099TWh 1144TWh 1147TWh 1186TWh
Renewable Target na 1.3% 20%*
Hydro 13.8GW 13.8GW 13.8GW
Nuclear 47.5GW 76GW*
Wind 1.9GW 3GW
Solar PV 2GW 14GW
Geothermal 535MW 535MW 535MW
Biomass 2.6 million KL 20.5 million KL
Bioethanol 210,000KL 6 million KL
Biodiesel 290,000KL
Source: EIA, IEA, GIA, NWA, Estimates, * Proposed Target
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Feed in Tariffs (FiT)
The Renewable Portfolio Standard (RPS) scheme came into effect in 2003 and covered
renewable contributions to the grid. Renewable energy sources included:
• Solar
• Wind
• Biomass Generation
• Small Hydro (up to 1MW)
• Geothermal
The targets set up by METI were 1.35% of the total electricity capacity by 2010. However, due to
the monopolistic structure of the power market, there have been ceilings and restrictions imposed
by the 10 utilities that have hampered the growth of renewable power.
Solar
After the removal of solar subsidies in 2008, the government launched a net model FiT scheme to
increase solar demand, where owners of grid connected solar power systems will be paid a
premium rate for surplus electricity generated. The initial rate paid to owners of systems will be
around 50 yen per surplus kilowatt hour produced, double the current rate of 24 yen. The
premium rate was calculated in order to enable customers who have purchased grid connect
systems to recover their initial outlay over 15 years. All electricity utilities in Japan will be required
to participate in the scheme. It's expected the additional cost will be passed on to consumers and
the government hopes to limit the increase in electricity bills to less than 100 yen per month on
average. Japan announced funding of 9 billion yen (USD$100 million) in the first quarter of 2009
for other incentives to encourage home solar power; with further funding to come. Japan aims to
have solar power systems installed on over 70% of new houses. The MOE estimated in 2009 that
Japan's solar power generation could increase to 37GW by 2020. The study panel concluded that
a fixed-price system for the purchase of renewable energy and a RPS would help the country hit
a target of 16% to 18% renewable energy generation by 2020 or 9% to 10% excluding large
hydro.
Wind
While the RPS has a low target, limited grid access and the monopolistic hold over the power
grids by regional utilities have restricted wind contribution. Japan trails China and India in the
contribution of wind power to its power generation.
Biomass
Biomass accounted for around 43% of the total RPS in 2008 14
14
Agency for Natural Resources and Energy Agency
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Restrictions on Wind Power to the Grid
Utility Capacity Restriction %
Tokyo 60GW No restriction n/a
Kansai 37GW No restriction n/a
Chubu 33GW No restriction n/a
Kyushu 19GW 700MW (2006) 3.7%
Tohoku 16GW 520MW (2006) 3.25%
Chugoku 12GW 400MW (2005) 3.3%
Hokuriku 8GW 80MW (2006) 1%
Shikoku 7GW 200MW (2005) 2.9%
Hokkaido 6GW 50MW (2006) <1%
Okinawa 2GW 25MW (2006) 1.2%
Source: Institute for Sustainable Energy Policy
3.3.6 Research & Development
Japan is a world leader in terms of R&D expenditure, with spending estimated at around 3 to
3.5% of GDP. Several funds and initiatives have been set up to promote the R&D phase of new
environmental technologies via NEDO and AIST. METI has a budget of JPY500 billion (3.5 billion
Euro), which it disburses to a range of agencies, universities, public research organisations and
the not-for-profit sector for R&D. The main focus for METI are: industrial competitive performance,
environmental and energy problems.
NEDO promotes research and development across a wide spectrum of technological stages
through the following activities:
• National projects (medium- to long-term, high-risk R&D projects);
• Support for practical application by business enterprises;
• Grants to universities and other research organizations for the discovery of technological
seeds.
Drawing on the combined efforts of industry, academia and government, NEDO mainly carries
out national R&D projects that stimulate the economy through enhanced Japan’s industrial
competitiveness. It also endeavors to provide solutions to energy and environmental problems.
AIST covers six research fields, i.e. life science & technology, information technology &
electronics, nanotechnology, materials & manufacturing, environment & energy, geological survey
and applied geoscience, metrology and measurement technology. In particular, AIST is engaged
in developing technologies based on sustainable energy having low environmental impact.
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Some examples of R&D programs in Japan include:
• The Industrial Cluster Policy. In 2001, Japan launched an Industrial Cluster Policy following
the international debate on Clusters and Systems of Innovation. Some of METI's Industrial
Clusters relate to environmental themes. Budget is available for industry-academic network
formation, technical development, incubator and related facilities for entrepreneurs, and
market development and collaboration with financial institutions.
• The Eco-town project. METI and MOE introduced the eco-town initiative in 1997. Financial
support by both ministries triggered regional scale initiatives that targeted the effective
resource circulation of a full range of by-products based on three industrial ecological
principles: (a) the zero emissions concept; (b) principle of 3Rs; and (c) green procurement
and EMSs. There are 26 eco-town projects in Japan. There are also efforts to promote
cooperation among eco-towns through clustering.
• Biomass-towns. As part of the Nippon Biomass Strategy, the government planned to launch
300 biomass towns by 2010.
3.3.7 Financing
Public Sector Funding
The Japanese government announced that it would contribute $40m to the Scaling Up
Renewable Energy in Low Income Countries program (SREP), and $60m to the Forest
Investment Program (FIP).
Private Sector Funding
Venture Capital
Based on the Thomson Reuters Venture Capital Database, there were only 2 deals completed in
2009. For more information, contact the Japan Venture Capital Association.
Project Finance
According to Thomson Reuters Project Finance Database, there we no deals associated with
Clean Technology in Japan in 2009.
Public Companies
Most Japanese Companies involved in Clean Tech are listed on the Tokyo Stock Exchange.
There were 14 companies, with a market capitalisation of $1.9 billion in 2009. This excludes the
large comglomerates such as Mitsubishi Heavy Indutries, where most of the investment in Clean
Technology in Japan is made.
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3.4 South Korea
3.4.1 Background
South Korea has decided on a 30% reduction of greenhouse gas emissions from their forecast
levels in 2020 even though it is not an Annex 1 country. According to a statement from the
presidential office, the goal is to cut the country's greenhouse gas emissions from its business as
usual (BAU) level in 2020 which is equivalent to reducing the country's emissions by 4% from
their 2005 level.
3.4.2 Market Size & Energy Mix
Primary Energy Demand
The total energy demand of South Korea in 2006 was 1.514 Quadrillion Btu. 15
Electricity Demand
While South Korea has set ambitious targets to reduce carbon emissions, it has not set
renewable targets like China, India, Japan and Australia.
South Korea has embarked on a large nuclear power generation program through Korea Nuclear
Hydro Power (KNHP) and expected to increase generation to 243 billion kWh.
15
Source: EIA, http://tonto.eia.doe.gov/country/country_energy_data.cfm?fips=KS
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3.4.3 Government Agencies
• Ministry of Environment (MOE). The Korean Ministry of Environment is responsible for work
related to the protection of natural and ambient environment as well as the prevention of
environmental pollution.
• Korea's Energy Management Corporation (KEMCO) receives its mandate from MKE: MKE
regulates; KEMCO implements and reports to MKE. The focus is on energy efficiency, new
sources of energy and renewables (fuels cell, photovoltaic, and wind power).
• The Ministry of Knowledge Economy (MKE) is in charge of development and distribution of
renewable energy and offers financial support to targeted sectors, such as solar, wind, small
hydro and geothermal energy.
3.4.4 Renewable Regulation
• Alternative Energy Act (1997, revised 2002). This policy constitutes the initial framework for
the development of new and renewable energy technologies. It aims to secure cost-effective
renewable energy by fitting the energy supply to the characteristics of the supplied area by
cost effective business modeling. It encourages the installation of waste-incineration plants to
generate heat and power. It also promotes residential solar heaters, small hydropower plants
and facilities to use methane gas.
• 10-year Basic Plan for the Development and Dissemination of New and Renewable
Technology. The 10-Year National Plan for Energy Technology Development, released in
2003, brings to the fore fuel cells, photovoltaic (PV), wind power as high-priority areas. The
Korean government plans to invest approximately US$ 200 million in the development and
dissemination of fuel cell from 2004 to 2011 and US$2.42 billion for the photovoltaic.
• Strategies for Environmental Technology Development. The First Phase Environmental
Industry Development Strategy (2001~2003) and the Mid- & Long-term Strategy on Fostering
Environmental Industry (2005~2012) aims at advancing the Environmental Technology to the
level of other developed countries by 2012
• The Long-term Vision for Science and Technology Development Toward 2025. The
Korean government launched this long-term strategic initiative “Vision 2025” in 1999. The
plan sets the direction and goal of the Korean government’s science and technology (S&T)
policies. Among its major features, the plan promotes: a shift of innovation from government-
led to private sector-led ones; improving the effectiveness of national R&D investment;
aligning R&D from a domestic to a global network; with the aim to meeting the challenges of
the information technology and biotechnology revolution.
3.4.5 Renewable Targets & Incentives
As part of South Korea new “Green Deal” in 2009, it put in place an aggressive plan to increase
its investment in the renewable space. However, apart from a biofuels mandate planned for 2013,
there are no clear renewable targets.
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South Korean Renewable Targets
Year 2008 2010 2020 2030
Electricity Capacity 67GW* 70GW 87GW 102GW
Electricity Generation 462TWh 412TWh 534TWh 650TWh
Renewable Target 7%
Hydro 1,584MW 1,584MW 1,584MW
Nuclear 17.5GW 26GW 30GW
Biofuel 0.32MT 0.7MT
Source: Government Publication, EIA, BP Statistics
• Biofuels. South Korea is planning to introduce a renewable fuel standard system by 2013 to
mandate a double-digits proportion of biodiesel fuel contained in gasoline.
Feedin Tariffs
The Electricity Business Law governs both the purchase and the fixed price of electricity
generated from renewable sources. Any renewable energy generator that is connected to the grid
is eligible to sell electricity to the grid at fixed prices. KEPCO is responsible for purchasing
electricity from renewables. The government compensates for the difference between N&RE
power generation cost and fossil fuel generation prices. From October 2006 onwards, the power
sources subject to the standard price have been extended. Standard prices were set for 19 prices
for 9 power sources. A reduced rate will be applied to photovoltaics and wind power from 2009;
and similarly a reduced rate will apply to fuel cell from 2010 onwards. The standard price for each
power source will be applicable for 15 years. The requirements for minimal capacities for the feed
in tariffs are as follows: 100, 1000, 50 MW for photovoltaics, wind power and fuel cell respectively.
3.4.6 Research & Development
The Korean Government leads research and development (R&D) activities in collaboration with
industry, universities and research institutes. Priority projects are financed by the government
budget and energy-related funds from the government and industry. Three important long term
projects focusing on R&D are:
• 21st Century Frontier R&D Program. The Frontier 21 program, launched in 1999 and run by
the MOST, is a 10 year effort to develop core technologies in near-to-market areas by 2010.
This program supports 23 projects in areas such as bioscience, nanotechnology, and
information technology, at a total cost of over US$3.5 billion. Among these, the government
financed projects on Carbon Dioxide Reduction and Sequestration (in 2002), and on
Hydrogen Energy (in 2003).
• Eco-Technopia 21 Project. The project has started to follow up the G7 project since 2001,
which was a 10-year project, run by MOE, launched in 1992 with the aim to develop seven
areas of environmental technology to the level of G7 countries. The G7 project helps close
the technological gap that exists between Korea and advanced countries – especially on the
so called ‘post-treatment technologies’ such as dust collection, advanced waste water
Asia Pacific Clean Tech Handbook 57 of 348 31-May-10
treatment, and small-scale incineration. High efficiency dust collecting technology and
exhaust gas desulfurization technology have been improved as a result. 16
• Eco-STAR (Eco-Science & Technology Advancement Research). The Eco-STAR plan,
which is a part of Eco-Technopia 21 Project developed by MOE, sets mid- and long-term
strategies to develop promising environmental technologies by sector. It is focused on
projects which can deliver world-class technologies that will compete on global markets. The
rationale is to maximise synergistic effects through joint or multilateral R&D on projects
unable to achieve targets independently. Projects are selected according to their
commercialisation and success potential; they are financed through a matching fund system
where the government works with industry. In 2004, two pilot centres were set up: the ‘Centre
for Environmentally Friendly Vehicle’ focusing on developing technologies for vehicle
emission reduction (with the investment of 65 billion won (USD 60 mm) by 2010), and the
‘Innovation & Integration Centre for XXIst Century Water Technology’, devoted to advancing
sewage and wastewater treatment technologies (with an investment of 65 billion won). Based
on the outcomes and experiences from these pilot initiatives, MOE plans to promote a gradual
expansion of the Eco-STAR Project by launching two new centres in 2007: the ‘Centre for
Aquatic Ecosystem Restoration’, devoted to restoring and controling the eco-system; and the
‘Centre for Waste Eco-Energy and Greenhouse Gases’, designed to respond to energy needs
and climate change.
• National Research Laboratory (NRL). The program identifies and cultivates outstanding
laboratories in core technologies for national competitiveness. This strategic national R&D
program maintains and develops technologies that can be the common basis for many
industries and products. It also supports the efficient utilization of the science and technology
resources in industry, academia, and research institutes throughout the nation. By 2005 about
40 laboratories set up in this context were related to environment.
3.4.7 Financing
Public Sector Funding
According to the presidential office, South Korea will invest KRW 107 trillion (USD 100 bn) over
the next five years in solar projects, energy-saving lighting, hybrid cars and other commercially-
viable, environmentally-friendly businesses. The Korean government will invest 2% of GDP
annually in renewable energy from 2009 to 2013. Korea has already allocated KRW 11.5 trillion of
this year's budget for its “Green Growth” plan, which is expected to generate as much as
KRW206 trillion (USD 163bn) in industrial output and create as many as 1.8m jobs.
The South Korean government is setting up a KRW 100 bn (USD 73m) clean energy fund, with
half of the amount to be contributed by private investors. The fund will be used to bolster
investments in solar, wind and hydro power technologies and projects. Among these are plans for
16
Source, Net. http://koetv.or.kr/engpage.do?mode=activities1
Asia Pacific Clean Tech Handbook 58 of 348 31-May-10
26 wind turbines to be built in coastal areas, a feasibility study for a future 40MW wind farm in
Saemangeum, a tidal flat on the coast of the Yellow Sea, domestic fuel cell adoption, and a
bioethanol pilot plant. 50% of the funds will be used for funding of wind power projects and to aid
consolidation in the domestic solar industry.
• Demonstration & Dissemination Program. To promote the marketing of developed New
and Renewable Energy (N&RE) technologies, the government subsidizes 70 percent of the
associated installation costs. Some 10.5 billion won (USD 9.5 mm) of subsidies were provided
by the government from 1993 to 2003: for PV Power Generation Systems, Solar Thermal
Water Heating Systems and Bio-Methane Generation Systems. Another 4.7 billion won (USD
4.2 mm) were provided in 2004 to deploy developed N&RE technologies: PV, solar thermal
water heating, geothermal systems and wind power generation systems.
• Environmental Venture Fund. In order to support environmental technologies, the Korean
Ministry of Environment has created an Environmental Venture Fund and has actively
identified and supported promising venture companies. Environmental Technology
Business Incubator (ETBI) has been set up under the supervision of the Korea Institute of
Environmental Science and Technology (KIEST) to assist venture activities of those at the
frontier of environmental technology development.
South Korea's Ministry of Strategy and Finance has reduced import duties on equipment and
components used for renewable energy projects by 50% as of 23 September 2009. The 31
products to benefit from the reduction include components used to harness solar energy, wind
power, hydrogen fuel cells and geothermal power. Items include transparent electrodes used in
thin-film solar cells, generators, glass or carbon fiber for wind blade manufacturing, fuel cells and
compressors for geothermal plants. The ministry estimates about KRW 10.8 bn (USD 8.97 m)
reduction in tariffs to be paid by the companies importing these products with the new policy. 17
Private Sector Funding
The state-run Export-Import Bank of Korea, in collaboration with 12 public and private firms, is
set to establish a KRW 100bn (USD 85m) joint carbon fund. This semi-private fund is aimed to
help local firms to cut greenhouse gas emissions, provide capital for feasibility studies and buy
emission rights in advance. Eximbank had earlier said that it will invest KRW15 bn (USD 13m) in
the fund with the funds to come from the Ministry of Knowledge Economy, public and private
businesses interested in CDM projects. The Korea Investment Trust Management Company is
acting as a fund manager. Media reports suggest that the fund is expected to expand to KRW
100 bn as more firms are likely to participate in the initiative. 18
17
Source: BusinessGreen.com, http://www.businessgreen.com/business‐green/news/2249866/south‐korea‐
slashing‐import
18
Source: Korea Times, http://www.koreatimes.co.kr/www/news/biz/2010/02/283_52405.html
Asia Pacific Clean Tech Handbook 59 of 348 31-May-10
Venture Capital
Based on the Thomson Reuters Venture Capital Database, there were 5 deals completed in 2009,
totaling 80 million. For more information, contact the Korean Venture Capital Association.
Project Finance
According to Thomson Reuters Project Finance Database, there were 5 deals totaling $10.5
billion, associated with Clean Technology in Korea in 2009.
Public Companies
Most Korean Companies involved in Clean Tech are listed on the Korean Stock Exchange.
Excluding large conglomerates, there were 6 companies, with a Market Capitalisation of $300
million in 2009.
Figure 3.5 South Korea - Private Sector Funding
80M $10.5B
VC/PE Deals
Project Financing Deals 58M
Market Cap/Companies
16M
16 Deals 16M
13 Deals 13 Deals 5 Deals
9 Deals
8 Deals
8 Deals
6 Deals 6 Deals 5 Deals
0.6B 6 Deals 0.7B 6 Deals $0.8B 6 Deals 6 Deals
$0.3B $0. 5B
n/a $0.2B $0.3B
$0.4B
2005 2006 2007 2008 2009
Source: Thomson Reuters
3.5 Taiwan
3.5.1 Background
Taiwan passed a renewable energy act in 2009 to promote the use of renewable energy. Like
other Asian countries, it has embarked on an ambitious program to increase its consumption from
renewable energy due to: energy security, carbon emissions and growth of its domestic industry.
In particular Taiwan aims to position itself as a global leader in the solar market.
3.5.2 Market Size & Energy Mix
Primary Energy Demand
Oil is by far the dominant fuel in Taiwan's energy mix, accounting for 46 percent of total primary
energy consumption in 2003. Coal also plays an important role (36 percent of total energy
Asia Pacific Clean Tech Handbook 60 of 348 31-May-10
consumption), followed by nuclear power (9 percent), natural gas (7 percent), and hydroelectric
power (less than 2 percent). Taiwan has very limited domestic energy resources and relies on
imports for most of its energy requirements. The country's industrial sector accounts for about 42
percent of total energy demand, but this share is expected to decline slightly, since Taiwan's
economy is moving toward newer, less energy-intensive industries. 19
Electricity Demand
Taiwan is heavily reliant on imported fossil fuels, which account for around 70% of production. It
plans to target solar and wind power to reduce its reliance on fossil fuels.
3.5.3 Government Agencies
The state environmental machinery in South Korea came to develop rapidly in 1990s with the
expansion of civil society and the proliferation of NGOs, which have facilitated the transformation
of the developmental state into the welfare state. Vigorous civil activism on environmental issues
has helped prompt the creation of governmental environmental agencies, laws and enforcement
mechanisms.
• The process requires Executive Yuan to pass legislation for the Ministries to implement. The
administration passed a renewable energy act in 2009 with the goal of increasing Taiwan’s
renewable energy generation capacity by 6.5 million kW to 10 million kW within 20 years.
19
EIA (2005), http://www.eia.doe.gov/emeu/cabs/taiwan.html
Asia Pacific Clean Tech Handbook 61 of 348 31-May-10
• The Ministry of Economic Affairs (MOEA) continues to implement the various economic
policies in Taiwan’s interests, and has targeted Clean Technology as a key sector.
• The Bureau of Energy (BOE) is responsible for the implementation of the energy policy
including the “Renewable Energy Development Act”.
• Environmental Protection Administration (EPA) On August 22, 1987, the Environmental
Protection Bureau, the Department of Health, Executive Yuan, was upgraded as the
"Environmental Protection Administration" governing seven departments: comprehensive
planning, air quality protection and noise control, water quality protection, waste management,
environmental sanitation and toxic substance management, supervision evaluation and
dispute resolution, environmental monitoring and information management. Taiwan Provincial
Government upgraded the Environmental Protection Bureau as the Department of
Environmental Protection on January 15, 1988. In coordination with the re-engineering of
governmental organization, the Department was reformed as the Central Taiwan Office in
July 1999, and was annexed to the EPA in March 2001 and re-organized as the EPA
Inspectorate. Each city and county government gradually set up an Environmental Protection
Bureau to enhance environmental protection work and function between 1988 and 1991. With
the establishment of the Environmental Protection Bureau of Lienchiang County, in January,
2003, the environmental protection organization and structure was complete.
• The Atomic Energy Council (AEC) consists of representatives from relevant government
ministries. The Radwaste Administration is a subsidiary body regulating radioactive wastes
The Nuclear Regulatory Division and Radiation Protection Division are also parts of the AEC.
The AEC is also responsible for nuclear safety. The Atomic Energy Law came in to force in
1968 and various regulations have been promulgated under it.
3.5.4 Clean Technology Regulation
• The Renewable Energy Development Act was passed in June 2009 to promote the
development of renewable energy in Taiwan. The legislation is expected to promote the
growth of the renewable energy industry and increase power generated from renewable from
6,500 to 10,000 MW by 2030. The law provides incentives to encourage providers to intensify
their efforts of producing energy from renewable resources. It will also introduce a pricing
mechanism for each renewable energy resource such as wind and solar power industry. 20
• The 2005 Taiwan Energy Policy Whitepaper outlines strategies for future energy
development with a goal of 12% of installed capacity of renewable energy sources. 21
20
Source: Council for Economic Planning and Development,
http://www.cepd.gov.tw/encontent/m1.aspx?sNo=0012048
21
Source: Industrial Technology Research Institute, http://re.org.tw/Re2/Eng/promotion.aspx
Asia Pacific Clean Tech Handbook 62 of 348 31-May-10
3.5.5 Renewable Targets & Incentives
Taiwan Energy Policy targets a 10% contribution by renewable energy of the total installed
capacity in 2010, with an increase in capacity to 12.5% by 2035.
There is also a target to use B2 diesel by 2010 and E3 gasoline by 2011, with a projected
demand of about 400,000 tonnes by 2010.
Taiwan Renewable Targets
Year 2005 2010 2020 2025
Electricity Generation 209TWh 354TWh
Renewable Target (Installed 4.3% 10%(5130MW) 12% (7- 9-10,000MW
Capacity (2,500MW) 8,000MW)
Hydro 1,911MW 2,168MW
Nuclear 4 power 6 power
stations in stations in
operation operation
Wind 23.9MW 2,159MW 3,000MW
Solar PV 1MW 21MW
Solar Water Heating 1.315M m2 2.15 M m2
Biomass 562MW 741MW
Geothermal 0 50MW
Biofuel 0 0.4M T
Source: Government Publications, WNA, BP Statistics, EIA, Estimates, CARMA
Feed in Tariffs
The MOEA announced the final feed-in tariffs (FiT) for renewable energy at the end of 2009. The
tariffs were set at TWD 11.12 (USD 35 cents) per kWh for PV projects and TWD 2.38 (USD 7
cents) per kWh for wind projects.
3.5.6 Research & Development
The government will allocate TWD20bn (USD 636m) for Research & Development programs to
raise the standards of renewable energy technologies in a statement in January 2010.
3.5.7 Financing
Government Funding
The government said it plans to invest TWD 25bn (USD 786m) in renewable energy and energy
efficiency projects over the next five years to help reduce carbon emissions.
Private Funding
Venture Capital
Based on the Thomson Reuters Venture Capital Database, there were 3 deals completed in 2009,
totaling 50 million in Clean Technology. For more information, contact the Taiwan Venture Capital
Association.
Project Finance
According to Thomson Reuters Project Finance Database, there were 2 deals totaling $791
million, associated with Clean Technology in Taiwan in 2009.
Asia Pacific Clean Tech Handbook 63 of 348 31-May-10
Public Companies
Most Taiwanese Companies involved in Clean Tech are listed on the Taiwan Stock Exchange.
There were 12 companies, mainly in the PV solar sector, with a Market Capitalisation of $4 billion
in 2009.
3.6 Hong Kong
3.6.1 Background
Despite being a small terriotory, Hong Kong serves as a regional capital-raising hub for Clean
Technology companies, particularly from China. Many of the leading Chinese Clean Technology
companies have chosen to go public on the Hong Kong Stock Exchanges.
3.6.2 Market Size & Energy Mix
The total energy consumption in 2008 was 1.164 quadrillion BTU 22 and power generation was
37Twh in 2008.
3.6.3 Government Agencies
• Environmental Protection Department (EPD) of Environmental Bureau is the regulator of
the Energy markets in Hong Kong. In 2008, a Memorandum of Understanding (MoU) with the
National Energy Administration (NEA) was signed to secure a clean energy supply for the
longer term.
3.6.4 Clean Technology Regulations
In 2000, a study commissioned by Electrical and Mechanical Services Department found that
solar power, energy from waste and wind energy have the potential for wider use in Hong Kong: it
aims for renewable energy to account for 2% of its total electricity supply by 2012.
Legislation by the Enviromental Bereau introduced mandatory implementation of Building Energy
Codes. Hong Kong's two power companies (Hong Kong Electric and China Light & Power) signed
the Scheme of Control Agreement in 2008 which provide incentives for over-achieving the
emission caps and penalties for under-achieving them.
$1 Billion was injected into the Environment and Conservation Fund, under which two funding
schemes are set up:
• $150 million fund to subsidise carbon audits; and
• $300 million used to subsidise energy efficiency projects in buildings.
22
Source: EIA, http://tonto.eia.doe.gov/country/country_energy_data.cfm?fips=HK
Asia Pacific Clean Tech Handbook 64 of 348 31-May-10
One very important aspect is Hong Kong's relationship with mainland China and its implication to
renewable energy development. It is possible for Hong Kong to make use of the mainland's
renewable energy resources to meet its energy need in an environmental friendly and sustainable
way as HK’s electricity transmission system is interconnected with the Guangdong Province on
the mainland.
3.6.5 Renewable Targets & Incentives
In 2005 that the Hong Kong Government published it’s First Sustainable Development
Strategy – setting a target of having one per cent to two per cent of Hong Kong’s total electricity
supply met using renewable energy by 2012.
3.6.6 Research & Development
The Environment and Conservation Fund (ECF) funds environmental research, technology
demonstration and conference projects. Projects costing more than HKD$2Million (USD 250k)
need to be approved by the ECF committee with lower cost projects approved by the respective
sub-committees of the relevant field.
The development of renewable energy is an important element of developing the Pearl River
Delta Region into a Green PRD Living Area, jointly promoted by Hong Kong and Guangdong. To
create the Green PRD Living Area, both sides will examine how to strengthen research and
development (R&D) as well as application of renewable energy.
The Shenzhen-Hong-Kong Innovation Circle was set up to promote technological collaboration
between the two parties, also provides $35 Million (USD 4.5mm) funding for research projects.
3.6.7 Financing
Public Sector Funding
The Hong Kong government announced plans to set up a HKD 300m (USD 38.6m) pilot Green
Transport Fund to encourage environment-friendly vehicles. The announcement was made at a
Legislative Council meeting for the budget proposals for the fiscal year 2010 to 2011.
Private Sector Funding
Venture Capital
Based on the Thomson Reuters Venture Capital Database, there were 2 deals completed in 2009,
totaling 87 million in Clean Technology. For more information, contact the Hong Kong Venture
Capital Association.
Project Finance
According to Thomson Reuters Project Finance Database, there were no deals, associated with
Clean Tecnology in Hong Kong in 2009.
Public Companies
Most Clean Tech companies listed on the Hong Kong Stock Exchange are mainland Chinese
companies. There were 13 companies listed, with a Market Capitalisation of $13.7 billion in 2009.
Asia Pacific Clean Tech Handbook 65 of 348 31-May-10
3.7 India
3.7.1 Background
India has a dedicated Ministry of New and Renewable Energy (MNRE). In 2009, India has put
in place renewable targets including wind and solar.
Coal accounts for more than half of India’s total energy consumption followed by oil, which
comprises 31% of total energy consumption. Natural gas and hydroelectric power account for 8
and 6% of consumption respectively. Although nuclear power comprises a very small percentage
of total energy consumption at this time, it is expected to increase in light of recent international
civil nuclear energy cooperation deals. According to the Indian government, 30% of India’s total
energy needs are met through imports.
3.7.2 Market Size and Energy Mix
Primary Demand
India’s Integrated Energy Policy says the country’s total power generation capacity should
increase to nearly 800 GW from current capacity of 160 GW by 2032 to sustain an annual 8-10%
economic growth.
Electricity Demand
• In 2010, India is expected to have around 177GW of installed electric capacity and
generated 863 billion kWh.
• Majority of power in India is generated with conventional thermal sources, which is
expected to account for around 65% of electricity in 2010.
• Hydroelectricity has been a consistent source of power in India, and should account for
nearly 26% of power generated in 2010.
• Nuclear energy is expected to contribute 3% of electricity in 2010, while wind and other
renewable sources will account for around 6%.
Asia Pacific Clean Tech Handbook 66 of 348 31-May-10
Gasoline/Diesel Demand
The Indian government continues to heavily subsidize prices of diesel and thus demand
compared to gasoline has surged in the past few years.
The national biofuels policy was announced in December 2009 to target a minimum of 20%
ethanol-blended petrol and diesel by 2017. 23 In India ethanol is produced by the fermentation of
molasses – a by-product of sugar manufacture. India is the fourth largest ethanol producer after
Brazil, the United States and China, its average annual ethanol output amounting to 1,900 million
litres with a distillation capacity of 2,900 million litres per year. For a 5 per cent ethanol blend in
petrol nationally, the ethanol required would be 640 million litres of ethanol in 2006-2007 and 810
million litres in 2011-2012. 24
3.7.3 Government Agencies
• Ministry of New and Renewable Energy (MNRE) is responsible for managing one of the
largest renewable energy programs, covering renewable energy technologies for a variety of
23
iGovernment Bureau, http://igovernment.in/site/India‐approves‐biofuel‐policy/
24
United Nations Conference on Trade and Development, 2006, “An Assessment of the Biofuels Industry in India”
http://www.unctad.org/en/docs/ditcted20066_en.pdf
Asia Pacific Clean Tech Handbook 67 of 348 31-May-10
grid and off-grid applications. The country has the largest decentralized solar energy
program, the second largest biogas and improved cooking stoves program, and the fifth
largest wind power program in the world.
• Ministry of Petroleum and Natural Gas - The Ministry of Petroleum & Natural Gas is
entrusted with the responsibility of exploration and production of oil and natural gas, their
refining, distribution and marketing,import, export, and conservation of petroleum products
and Liquified Natural Gas.
• Ministry of Rural Development - The Ministry has been acting as a catalyst effecting the
change in rural areas through the implementation of wide spectrum of programmes which are
aimed at poverty alleviation, employment generation, infrastructure development and social
security. Over the years, with the experience gained, in the implementation of the
programmes and in response to the felt needs of the poor, several programmes have been
modified and new programmes have been introduced. This Ministry’s main objective is to
alleviate rural poverty and ensure improved quality of life for the rural population especially
those below the poverty line. These objectives are achieved through formulation,
development and implementation of programmes relating to various spheres of rural life and
activities, from income generation to environmental replenishment.
The major programs supported by the government include the following:
• Rural Energy, which includes biomass and energy efficiency sectors
• Solar Energy
• Power from Renewable Energy
• Energy from Urban and Industrial wastes
• Hydrogen Fuel Cells and Others new technologies
3.7.4 Renewable Regulation
• 12th Five Year Plan (2012 to 2017).The draft is in formulation stage. No targets finalized yet.
The 11th Five Plan includes a 4-5% renewable target.
• Electricity Act (2003). Electricity Act in 2003 deregulates all types of power generation
(except of hydroelectricity above 10 MW), it also includes 10% renewable target.
• National Electricity Policy (NEP). In 2005 the Government of India put out the National
Electricity Policy as required by the Electricity Act of 2003. The National Electricity Policy
outlines a plan for rural electrification increased generation capacity. The policy states that
“maximum emphasis” would be put on the development of hydro power. Use of thermal
power could be made cleaner by using low-ash coal, improving lignite mining, and
increased use of natural gas and nuclear power. The policy also sets recommendations for
improving the power grid with better transmission and distribution of power. It also calls for
the use of the most efficient technologies and more funding for R&D.
Asia Pacific Clean Tech Handbook 68 of 348 31-May-10
• Energy Policy. The Energy policy outlines the challenges that India faces as it develops
and must generate and provide increasing amounts of energy. Measures include
addressing energy security by acquiring abundant supplies of coal and gas,and increasing
hydro and nuclear power. India seeks to improve energy efficiency by reducing energy
intensity across many sectors including mining, electricity distribution, transportation,
industry and building construction. The policy also outlines methods to promote renewable
energy and increase R&D.
The Energy Conservation Act in 2001 empowers the Central Government and State
Governments to:
• specify energy consumption standards for notified equipment and appliances;
• direct mandatory display of label on notified equipment and appliances;
• prohibit manufacture, sale, purchase and import of notified equipment and appliances not
conforming to energy consumption standards;
• notify energy intensive industries, other establishments, and commercial buildings as
designated consumers;
• establish and prescribe energy consumption norms and standards for designated consumers
st
The Bureau of Energy Efficiency (BEE) was established in 1 March, 2002 to implement the Act
and drive through energy efficiency.
Regulatory Drivers
Date Event
Regulatory Body
1998 The Central Electricity Regulatory Commission (CERC) was established in 1998
The State Electricity Regulatory Commission (SERC) serves as the electricity regulator for
the individual states. All the states except Nagaland and Arunachal Pradesh have either
constituted or notified SERCs
2006 Ministry for New and Renewable Energy (MNRE) formed (formerly Ministry of Non-
Conventional Energy Sources)
2007 The Petroleum and Natural Gas Regulatory Board (PNGRB), was established on June
2007
The Chairperson and members of CERC are appointed by the Central Government on the
recommendation of the Selection Committee. The Chairperson and members of SERC
are appointed by the State Government on the recommendation of the Selection
Committee. The members of the PNGRB are appointed by the central government.
Regulatory Framework
2009 National Solar Mission
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2003 National Mission on Biodiesel
2003 The Electricity Act (2003) mandate SERCs to specify a percentage of energy to be
procured from renewable energy sources
2001 The Energy Conservation Act (2001)
Regulatory Roles
CERC roles include regulation of tariffs for generation companies and promoting
competition
SERCs roles include tariff regulation and promotion of cogeneration and electricity
generation from renewable
Issues
Lack of a methodology for deciding the quotas and tariff for renewable generation under
the Electricity Act 2003
3.7.5 Renewable Targets & Incentives
• India does not have a carbon reduction target but has stated that it plans to cut its carbon
intensity by 20% by 2020 from 2007 levels.
• The Indian government’s stated target is for renewable energy to contribute 10% of total
power generation capacity by 2012.
• Solar. As part of the Solar Mission, India has revised its Solar PV target to 20GW by 2022.
• Wind. A target of 10.5 GW was proposed, as part of the 11th Plan. 10 out of the 29 Indian
States have now implemented quotas for a renewable energy share of up to 10% and have
introduced preferential tariffs for electricity produced from renewable sources. These states
are Kerala, Rajasthan, Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra, Madhya
Pradesh, West Bengal, Gujarat and Haryana. In addition, several states have implemented
fiscal and financial incentives for renewable energy generation, including: energy buy back
schemes and FiTs; preferential grid connection and transportation charges and electricity tax
exemptions.
• Hydro. As part of the 12th Five Year Plan (2012-17), the government has identified an
additional 38,242MW to be added in that time period. Based on the 2005 Electricity Plan,
India, the government expects to increase hydro capacity to 94,000 MW by 2027 25. A target of
1,400MW was proposed for the 11th Plan for small hydro.
25
India Central Electricity Authority
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• Biomass. A target of 1,700MW was proposed through cogeneration by 2012, as part of the
11th Plan. In addition, a 400MW target was proposed for waste to energy projects in urban
areas.
• Biofuels. India has announced a 20% indicative blending target for ethanol and biodiesel by
2017, but these are not firm targets.
• Nuclear. India plans to have 20,000 MW nuclear capacities on line by 2020.
India Renewable Targets
Year 2008 2012 2017 2022 2027
(11th Plan) (12th Plan) (13th Plan) (14th Plan)
Electricity Capacity 161GW* 195GW* 230GW* 263GW* 294GW*
Electricity Generation 811TWh 966TWh* 1266TWh* 1466TWh* 1839TWh*
Renewable Target 10% (power
generation)
Hydro 26% 94GW
Small Hydro 1,400MW
Nuclear 3% 20GW
Wind 10GW 10.5GW
Solar PV 0.2GW 1GW 4GW 20GW
Solar Water Heating 140Mm2
Biomass 1,700MW
Nuclear 20GW
Bioethanol 5% in 9 20%
states indicative
blending
target
Biodiesel 20% blend 20%
with indicative
Jatropha blending
target
Source: Government Publications
Feed in Tariff (FiT)
As part of the Electricity Act, the law encourages a 10% contribution from renewable energy in
some regions. This is achieved through a Feed in Tariff, focused on Wind, Biomass and Small
Hydro.
Tariff Rs/kWh $/MWh* Region
Wind 2.90-4.08 63-89 Tamil Nadu, Haryana
Biomass 2.63-4.00 57-87 Andhra Pradesh,
Haryana
Small Hydro 2.25-3.66 49-80 Madhya Pradesh,
Punjab
Source: Government Publications, * 1 USD=46 INR
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3.7.6 Research & Development
Based on the Patent Filing research, India trails the North Asian countries, in terms of research &
development. This is notable, in terms of patents filed by Indian companies compared with China,
Japan, South Korea and Taiwan. This may put India at a significant disadvantage, in terms of
setting up a high quality manufacturing sectors, required for Clean Technology sectors, such as
solar and wind.
While the government has put in place promotional policies and programs, such as the NRSE,
aimed at reducing costs and enhancing efficiency, it will be interesting to see, if will be able to
make up the technological gaps with its North Asian neighbours. Notable actions to close this
technological gap, include:
• Engaged with leading research organizations in the country to undertake R&D projects,
accompanied by three specialized technical institutes (SDC, C-WET and the SSSNIRE).
• Provided a market-oriented thrust to R&D efforts and has evolved a policy of supporting
R&D with the involvement of the industry.
• Established an R&D Advisory Committee that considers specific proposals for research
and also recommends research priorities and strategies.
• The MNES also facilitates the acquisition of patents in the area of renewable technology.
The IREDA is the promotional and financing arm of the Ministry and has emerged as one of the
main instruments for promoting developing and financing technologies and projects related to
NRSE (renewable sources of energy).
It has been able to tie up funds from leading multilateral agencies such as the UN organizations,
the Asian Development Bank and the European Commission, bilateral organizations and
domestic financial institutions for lending to end-users, manufacturers, financial intermediaries
and entrepreneurs, predominantly in the private sector.
Cumulative loan disbursements by IREDA have risen from around Rs 16 million (USD 360k) in its
first year (87-88) to Rs 25,478 million (USD 571 mm) in December 2001, while cumulative
sanctions touched Rs 50,447 million (USD 1.1 bn).
In addition, major national financial institutions such as the IDBI, ICICI, IFCI, and PFC have also
been financing wind power projects.
3.7.7 Financing
Public Funding
y The IREDA is the promotional and financing arm of the Ministry and has emerged as one of
the main instruments for promoting developing and financing technologies and projects
related to NRSE (renewable sources of energy).
Asia Pacific Clean Tech Handbook 72 of 348 31-May-10
y It has been able to tie up funds from leading multilateral agencies such as the UN
organizations, the Asian Development Bank and the European Commission, bilateral
organizations and domestic financial institutions for lending to end-users, manufacturers,
financial intermediaries and entrepreneurs, predominantly in the private sector.
y Cumulative loan disbursements by IREDA have risen from around Rs 16 million in its first
year (87-88) to Rs 25478 million in December 2001, while cumulative sanctions touched Rs
50447 million.
y In addition, major national financial institutions such as the IDBI, ICICI, IFCI, and PFC have
also been financing wind power projects.
y Suzlon Energy Limited, the world's fifth leading wind turbine maker, entered into a
Memorandum of Understanding (MOU) with TERI University for setting up and offering an
MTech Programme in Renewable Energy Engineering and Management.
y This MOU will facilitate Suzlon Energy to contribute to the Programme through exchange of
ideas and expertise, and guest faculty.
Private Funding
Venture Capital
Based on the Thomson Reuters Venture Capital Database, there were 2 deals completed in 2009,
totaling 87 million in Clean Technology. For more information, contact the India Venture Capital
Association.
Project Finance
According to Thomson Reuters Project Finance Database, there were 9 deals totallig $792 million,
associated with Clean Technology in Indai g in 2009.
Public Companies
Most Clean Tech companies listed on the Bombay Stock Exchange (BSE). There were 14
companies listed, with a Market Capitalisation of $15.5 billion in 2009.
Asia Pacific Clean Tech Handbook 73 of 348 31-May-10
Figure 3.8 - India Private Sector Funding
261M
$18.9B
$15.5B
VC/PE Deals 208M
13.2B
Project Financing Deals
Market Cap/Companies
$11.3B
147M
134M
$6.5B
24 Deals
19 Deals
$2.7B 14 Companies
16 Deals 13 Deals
8 Deals
9 Deals 11 Companies
9 Companies 10 Companies 9 Deals
23M 9 Companies
5 Deals 0.9B 0.8B
1 Deal 0.8B
2005 2006 2007 2008 2009
Source: Thomson Reuters
3.8 Singapore
3.8.1 Background
Singapore is trying to establish itself as a Clean Tech hub for Asia. While, it does not have its own
domestic market, it wants to be a leader in research, capital raising and the headquarters for
companies looking to set up and expand across Asia.
Singapore has embarked on a comprehensive and ambitious program to become a Clean Tech
hub for Asia. Through the Economic Development Board (EDB), it has allocated SGD$1 billion,
as part of its Sustainable Blueprint for 2030 to make 80% of all buildings green, 35% reduction in
energy intensity and launch of a solar test bed program.
In addition, it has set aside SGD$650M/USD485M in Clean Energy (SGD$350M/USD250M) and
environment and water (SGD$330M/USD235M).
It has launched a number of Clean Tech incubators at NUS and NTU. While Singapore lacks the
size and scale of other countries, it aims to be the Clean Tech hub for Asia, in terms of financing
and setting up Clean Tech companies and become a test bed for new technologies.
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3.8.2 Market Size & Energy Mix
Singapore incinerates 90% of its Municipal Solid Waste through 4 incineration plants and
generates roughly 980 kWh of energy, supplying roughly 2% of Singapore’s electricity demand.
Power Generation in Singapore was 39TWh 26
3.8.3 Government Agencies
The key government agencies involved in Clean Technology includes:
• Ministry of Environment and Water Resources (MEWR) – manages water and
environmental sustainability.
• Ministry of National Development (MND) – responsible for providing quality physical
infrastructure by working in the public and private sectors.
• Economic Development Board (EDB) - is responsible for planning and executing
strategies to enhance Singapore’s position as a global business centre and grow the
Singapore economy.
• National Research Foundation (NRF) - The National R&D Agenda consists of five
strategic thrusts, namely: to intensify national R&D spending to achieve 3% of GDP by
2010; to identify and invest in strategic areas of R&D; to fund a balance of basic and
applied research within strategic areas; to provide resources and support to encourage
private sector R&D; and to strengthen linkages between public and private sector R&D.
• Energy Market Authority (EMA) - is a statutory board under the Ministry of Trade and
Industry. Its main goals are to promote effective competition in the energy market, ensure
a reliable and secure energy supply, and develop a dynamic energy sector in Singapore.
• National Environment Agency (NEA)- is the leading public organization responsible for
improving and sustaining a clean and green environment in Singapore.
• Building and Construction Authority (BCA) - is an agency under the Ministry of National
Development, championing the development of buildings, structures and infrastructure for
Singapore.
• National Climate Change Committee (NCCC) ‐ the Ministry of the Environment and Water
Resources (MEWR) formed the National Energy Efficiency Committee (NEEC). With the
announcement of Singapore’s plan to accede to the Kyoto Protocol in 2006, the NEEC has been
expanded in scope to cover climate change issues and has been renamed the NCCC to better
reflect its expanded function.
3.8.4 Clean Technology Regulations
• The National Technology Plan, 2010, (including EE&C, establishment of national standards)
– earmarks SGD 75bn/USD 54bn for science and technology R&D over the coming 5 years,
with potential for research into Clean Tech.
26
EIA
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• The Singapore Green Plan (including EE&C to reduce pollutants) – MEWR promotes a high
quality environment with targets for the following areas: Air and Climate Change, Water,
Waste Management, Nature, Public Health and International Environmental Relations.
• Energy Conservation and Distribution Centre to prepare the public towards energy
efficient lifestyle.
• Energy Audit Scheme - is implemented by the NEA in partnership with major industrial
consumers under the initiative of the NCCC. The Scheme is voluntary, designed to provide an
impetus for industries to improve the energy efficiency of their operations. Its objective is to
encourage industries that use large amount of oil and gas to put in place a formal system for
the management of energy use, to improve their energy efficiency. Under the Scheme,
companies can either use in-house staff or engage external energy audit specialists in
carrying out their energy audits. Such audits, which are carried out every 3-5 years, would
help industries to systematically identify opportunities for improving energy efficiency
regularly. The companies could then take measures to improve the energy efficiency of their
facilities.
3.8.5 Renewable Targets & Incentives
Clean Energy
• Clean Energy Research and Testbedding Program (CERT). The Clean Energy Research
and Testbedding Program (CERT) by the Clean Energy Program Office (CEPO) and
managed by EDB, is a SGD$17M (USD12M) funding initiative for local and foreign companies
and organisations to test and implement clean energy technologies at suitable sites. CERT
involves three key partners: the R&D organisations, the technology providers, and the
implementers. These three partners are involve in the following areas (obtained from the
CERT press release): The R&D organisations will lead and conduct testbedding activities,
while the technology providers will be private sector companies providing the Clean Energy
equipment and technologies to participate in the testbedding. Government agencies which
are providing the testbedding location and facilitating the project are the implementers.
• Clean Energy Research Program (CERP). The Clean Energy Research Program (CERP)
by the National Research Foundation (NRF) is a SGD$50M (USD35M) funding initiative for
Institutes of Higher Learning, public sector agencies, private companies based in Singapore,
and not-for-profit research laboratories, to conduct research and development projects in
clean energy. The R&D projects are submitted based on calls for proposals in domains
specified by the Clean Energy Program Office (CEPO). Funding support is up to 70% or
100% of approved direct qualifying costs of a project.
• Solar Capability Scheme (SCS). Under the Solar Capability Scheme (SCS), EDB provides
funding for new private buildings to install solar technologies. The building must be certified
with minimum Green Mark Gold rating by BCA, and the minimum solar system installed
should be 10 kW. The funding provided is between 30% to 40% of the total capital cost and
capped at $1 million.
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• Market Development Fund is a $5 million funding initiative by the Energy Market Authority to
help in the test-bedding of new electricity generation technologies such as solar, wind,
hydrogen and fuel cell, which has significant potential and value in the electricity market.
• Energy Research Development Fund. The EMA has launched a S$25 million Energy
Research Development Fund (ERDF) to be disbursed over five years to drive research,
development and demonstration initiatives to address issues pertaining to Singapore’s energy
sector such as energy security, energy efficiency and the development of a competitive
energy industry in Singapore. The ERDF is targeted at a wider spectrum of projects that can
include solutions to optimise grid operations, enhance energy efficiency in Singapore’s
industries or facilitate the entry of new sources of fuel into Singapore. The EMA has also
recently set up a S$5 million Market Development Fund (MDF) to encourage the adoption of
renewable energy solutions. The MDF will help to offset the market charges associated with
selling renewable energy into the electricity grid.
Energy Efficiency
The National Environment Agency (NEA) has put in place a number of energy efficiency
initiatives, aimed at promoting energy efficiency among business and the public sector. These
initiatives are estimated to reduce up to 190,000 tonnes of carbon dioxide emissions by 2012 and
help achieve the target of 25% improvement in carbon intensity between 1990 and 2012 (NEA
2005):
• Energy Efficiency Improvement Assistance Scheme (EASe). NEA provides a co-funding
scheme called the Energy Efficiency Improvement Assistance Scheme (EASe), to help
companies in the manufacturing and building sectors engage accredited Energy Services
Companies (ESCOs) to conduct energy audits and recommend energy saving measures.
Funding is provided up to 50% of the qualifying costs of engaging an ESCO and capped at
$200,000 for a single facility or building over a five-year period.
• Grant for Energy Efficient Technologies (GREET). The Grant for Energy Efficient
Technologies (GREET) by NEA provides funding for the Singapore-registered owner or
operator of existing or proposed industrial facilities to invest in energy efficient equipment or
technologies. Funding is provided up to 50% of the qualifying costs and capped at $2 million
per project. Only projects with a payback of more than 3 years and up to 7 years are eligible
for funding.
• Accelerated Depreciation Tax Allowance. The Accelerated Depreciation Tax Allowance
scheme by NEA encourages companies to replace old inefficient equipment and invest in
energy saving equipment. The capital expenditure on the qualifying energy efficient
equipment can be written off in one year instead of three.
• Design for Efficiency Scheme (DfE). The Design for Efficiency Scheme (DfE) by NEA aims
to encourage new facilities that are large consumers of energy to integrate energy and
resource efficiency improvements into their development plans early in the design stage.
Funding is provided up to 80% of the qualifying costs or S$600,000, whichever is lower.
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• SCEM Training Grant. The Singapore Certified Energy Manager (SCEM) Program offers
training and certification in energy management, and is for engineering professionals to
develop the technical skills and competence to become the Energy Managers of their
organisations. The SCEM Training Grant is a co-funding scheme by NEA to fund the training
cost at the Professional Level SCEM Program. Successful grant applicants only pay a
subsidised course fee of SGD$963 instead of the full course fee of SGD$5,885.
Smart Grid
The Energy Market Authority (EMA) promotes competition in the electricity and piped gas industry
and maintains the security and reliability of the power system. Formed on 1st April 2001, EMA is
a statutory board under the Ministry of Trade and Industry that regulates the electricity and gas
industry and district cooling services in designated areas. The EMA has worked on details of the
electricity sector privatisation, as well as efforts to maintain a secure and reliable electricity
industry.
Green Buildings
Green Mark Incentive Scheme for Existing Buildings (GMIS-EB). The government recently
announced in the Sustainable Singapore blueprint that it has set a target for 80% of the existing
building stock to achieve at least Green Mark Certified rating by 2030. A $100 million Green Mark
Incentive Scheme for Existing Buildings (GMIS-EB) was set up by BCA to hencourage private
building owners of existing buildings to undertake improvements in energy efficiency. The
scheme provides a cash incentive that co-funds up to 35% of the costs for energy efficiency
improvements and capped at SGD$1.5 M (US$1.1M).
Green Mark Incentive Scheme for New Buildings (GMIS-NB). The enhanced $20 M
(SGD14M) Green Mark Incentive Scheme for New Buildings (GMIS-NB) by BCA is to accelerate
the adoption of green building technologies and design practices. The enhanced scheme
provides cash incentives to developers, building owners, project architects and M&E engineers,
who achieve at least a BCA Green Mark Gold rating in the design and construction of new
buildings.
Green Mark Gross Floor Area Incentive Scheme (GM-GFA). The Green Mark Gross Floor
Area Incentive Scheme (GM-GFA) by BCA and URA is to encourage the private sector to
develop buildings that attain the higher Green Mark ratings. URA will grant additional floor area
over and above the Master Plan Gross Plot Ratio (GPR) control, up to 1% for Green Mark Gold
Plus developments and up to 2% for Green Mark Platinum developments, and subject to a cap of
2,500 m2 for Gold Plus and 5,000 m2 for Platinum.
MND Research Fund for the Built Environment. The MND Research Fund for the Built
Environment is a SGD$50M (USD35M) funding initiative by the Ministry of National Development
(MND) and managed by BCA. The objective of the fund is: To encourage and support applied
R&D that will raise the quality of life and make Singapore a distinctive global city. Under the MND
Research Fund, some key focus areas include sustainable development projects such as
integrating solar technologies into building facades. The fund covers 30% to 75% of the qualifying
cost of the project, subject to a cap of SGD$2M (USD1.4M).
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3.8.6 Research & Development
• Fuel Cells - Institute of Materials Research and Engineering, the Institute of Chemical and
Engineering Sciences, the Institute of High Performance Computing and the Singapore
Institute for Manufacturing Technologies
• Solar Energy - The Solar Energy Research Institute of Singapore at the National University
of Singapore (NUS) focuses on research in silicon PV technology, nano-structured solar cells
and energy efficient buildings.
• The Centre for Sustainable Energy Research, through its Energy Research Institute at
Nanyang Technological University (NTU), conducts research on advanced fuel cell
technology, charge storage, wind and tidal energy and smart buildings.
3.7.7 Financing
Government Funding
Research institutes under the Agency for Science, Technology and Research (A*STAR) have
established research programs in various areas including fuel cells, biofuels, next generation
solar PV technology, carbon management and intelligent energy distribution systems.
Private Funding
Venture Capital
Based on the Thomson Reuters Venture Capital Database, there were 2 deals completed in 2009,
totaling $13.5 million in Clean Technology. For more information, contact the Singapore Venture
Capital Association (SVCA).
Project Finance
According to Thomson Reuters Project Finance Database, there was 1 deal totaling $350 million,
associated with a PV Solar project in Singapore in 2009.
Public Companies
Most Clean Tech companies listed on the Singapore Stock Exchange are associated with
wastewater companies. There were 12 companies, with a Market Capitalisation of $1.5 billion in
2009.
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3.9 Indonesia
3.9.1 Background
Indonesia is the largest country in ASEAN with a population of over 200 million people spread
over 13,000 islands. The country has no unified grids, other than the three islands of Java, Bali
and Madura. PT PLN (Persero) is the main player‐fully integrated utility with generation,
distribution and transmission all under one umbrella. The government announced the 2nd phase
of its 10GW of newly installed total capacity program by 2014. 4,733MW of this target has been
set aside for geothermal projects. The government will offer most of these projects to private
investors. As of 2009, 1,057MW of geothermal capacity has been installed.
3.9.2 Market Size & Energy Mix
Based on the IEA 2009 outlook, Indonesia’s primary energy demand is expected to increase from
191 Mtoe to 330 Mtoe in 2030.
Total installed power capacity is projected to increase almost three-fold, from 35 GW in 2007 to
101 GW in 2030.
3.9.3 Government Agencies
• Ministry of Energy and Mineral Resources (MEMR) is the body responsible for the
development of Indonesia’s energy policy. Under the National Energy Policy, which was
introduced in 2006, a target has been set to reduce the share of oil in the fuel mix to below
20% and to increase that of renewables to 17%, both by 2025. The MEMR tendered three
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projects: 220MW Tangkuban Perahu (awarded to Raser Technologies); 45MW Cisolok
Sukarame; and 50MW Tampomas.
3.9.4 Clean Technology Regulation
• In 2007, Indonesia enacted the Energy Law, which is the country’s first legislation on energy.
Under the new law, the government gives priority to improving energy efficiency and
increasing renewable energy development to enhance energy security and improve access to
modern energy services.
• Renewable Energy Law. The Indonesian government is drafting a law on new and
renewable energy, which includes plans for both supply and demand, and the use of fiscal
incentives.
• National Energy Policy. In its national energy policy for 2005-2020, the Indonesian
government aims to increase energy efficient, promote renewables, implement demand side
management and use cleaner fuels.
3.9.5 Renewable Targets
Indonesia announced the 10,000 MW Crash Program Phase II in 2008, which aims to increase
renewable generating capacity, particularly from geothermal and hydropower. Targets have been
set to boost the capacity of micro-hydro power plants to 2.9 GW by 2025, geothermal plants to
9.5 GW by 2025, wind power to 0.97 GW by 2025, solar power to 0.87 GW by 2024 and biomass
to 180 MW by 2020.
Since January 2009, the transport, industry and power-generation sectors and fuel distributors in
Indonesia have been obliged to use biofuel blends. The government has set the goal that biofuels
should contribute 3% of the energy mix by 2015 and 5% by 2025. To boost the development of
biomass, the Indonesian government plans to open 6 million hectares of new plantation area for
sugar cane, cassava, palm and jatropha by 2025.
Indonesia Renewable Targets
Year 2008 2015 2025 2030
Electricity Capacity 35GW 101GW
Electricity Generation 151TWh 279TWh 290TWh 440TWh
Renewable Target 15.5% 17%
Hydro 3.2GW 2.9GW
Geothermal 9.5GW
Wind 0.97GW
Solar PV 0.87GW
Biomass 180MW
Bioethanol 3% 5%
Biodiesel 3% 5%
Source: Government Publications, EIA, IEA, Estimates
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Indonesia is now focused in three renewable areas: geothermal, small hydro and biomass.
The Indonesian government has unveiled a USD 255m stimulus package for the oil, gas and
geothermal sectors. It is part of a wider USD 4.6bn package to help the country cope with the
economic crisis. The package will operate for the 2009 fiscal year.
Two recent regulations have detailed the electricity tariffs for geothermal power plants, based on
capacity:
• Plants greater than 55MW will receive 85% of PLN’s production cost;
• Plants from 10MW to 55MW will receiver 80%; and
• Plants smaller than 10MW will be dealt with in a separate regulation
Barriers to growth in geothermal still remain, due to issues in the bidding process that does not
have a standardized Power Purchase Agreement (PPA) and limited contractual obligations for
the winning bidder that may result in long drawn out negotiation after the award of the contract.
The Geothermal law has shifted the burden onto the provincial governments to confirm the size of
geothermal resources, which may lack the investment or technical expertise to identify the
resources. High start up costs also deters development, as it is difficult to determine the capacity
over a 20 to 30 year period to recoup the initial investment.
Feed in Tariffs (FiT)
MEMR announced in August 2009 that PLN will set a ceiling on rates to encourage investment by
resolving tariff uncertainties, which were reported to be between 6.5 and 7 US cents/kWh for
renewable energy.
3.9.6 Research & Development
The Ministry of Energy and Mineral Resources is undertaking research in Clean Coal
Technology.
The Bandung Institute of Technology (ITB), Bogor Institute of Agriculture (IPB), the
Research and Development Division of the Ministry of Energy and Mineral Resources are
amongst the scientific institutions that signed the Memoranda of Understanding to support
biofuels projects in Indonesia.
3.9.7 Financing
Public Sector Funding
The government is planning to launch a USD 1bn investment fund for clean energy projects. The
country's sovereign wealth fund, the Government Investment Unit will contribute 10% to the
fund, and the remainder will be raised from institutional investors and other governments,
including the US, Australia, Japan, France, Norway that has shown interest. Indonesia has set a
target of cutting greenhouse gas emissions by 26% by 2020. The fund will be launched later in
2010. The fund will co-invest in projects with banks. It will invest no more tan USD80m per project.
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Sumitomo Mitsui Financial Group has signed an agreement with the World Bank and the US
Agency for International Development to advise Indonesia on funding renewable energy projects
as the country plans to boost power generation.
Private Sector Funding
Venture Capital
Based on the Thomson Reuters Venture Capital Database, there was only 1 deal completed in
2009, totaling 45 million in Clean Technology. For more information, contact the Singapore
Venture Capital Association.
Project Finance
According to Thomson Reuters Project Finance Database, there were 4 projects totaling $513
million, associated with Clean Technology in Indonesia in 2009.
Public Companies
According to the Indonesia Stock Exchange, there is only 1 companies listed in Clean
Technology, with a Market Capitalisation of $43 million.
3.10 Malaysia
3.10.1 Background
Malaysia is one of the largest producers of palm oil and exports this as a biofuel to European
markets. The Malaysian government said it will rely on biogas, solar, mini hydro and biomass as
its main sources for renewable energy.
The government went on to say that it is finalising a program to push for the development of
these sources of renewable energy. It wants private firms to help in the deployment of renewable
energy.
3.10.2 Market Size & Energy Mix
Primary Energy Demand
Based on the IEA 2009 Outlook, Malaysia’s primary energy demand is expected to increase from
73 Mtoe to 116 Mtoe in 2030.
Electricity Demand
Total installed power capacity is projected to increase from 26 GW in 2007 to 47 GW in 2030.
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3.10.3 Government Agencies
• The Economic Planning Unit (EPU) and the Implementation and Coordination Unit (ICU)
devise and oversee all energy policy in Malaysia.
• Ministry of Energy, Water and Communications, which regulates the non-oil and gas and
electricity sectors.
• The Energy Commission of Malaysia regulates energy supply activities and enforces
energy supply laws.
3.10.4 Clean Technology Regulation
• National Energy Plan. Malaysia is currently in the process of formulating a comprehensive
National Energy Plan, which will focus on intensifying energy-efficiency initiatives in order to
achieve more productive and prudent use of its remaining reserves. The plan, will increase
efforts to develop alternative forms of energy, including solar, wind and biofuels, and will
explore the possible use of nuclear energy.
• Electricity Supply Act. This Act regulates the licensing of electricity generation, transmission
and distribution. It enforces licensing and registration provisions.
• Ninth Malaysia Plan (2006-2010), the government has set a target of 350MW of grid-
connected renewable electricity generation by 2010. Currently, the Small Renewable Energy
Power Program (SREP), which was launched in 2001, provides for power generated from
renewable resources to access the national grid. SREP developers can sell power to utilities
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through the Renewable Energy Power Purchase Agreement (REPPA), which gives plants
a license for a period of 21 years to sell up to 10 MW to the national grid system. Under this
program, the utilisation of all types of renewable energy is permitted, including biomass,
biogas, municipal solid waste, solar, small hydropower and wind.
In 2008, the Malaysian government introduced a broad package of reforms to energy subsidies,
which were creating a mounting fiscal burden. The package included subsidy reductions, cash
rebates, windfall taxation on certain sectors and an expansion of the social safety net. Malaysian
retail gasoline prices were increased by more than 40% in July 2008 and the following month the
price of gas for power generation was raised by 124% in Peninsular Malaysia. In line with this
increase in the gas price, the average electricity tariff for all sectors of the economy was
increased by 24% (from $0.075/kWh to $0.093/kWh).
Malaysia introduced a Five-Fuel Diversification Policy in 2001, which aims to broaden the fuel mix
and increase the share of renewables in the supply of electricity. As a result, oil’s dominance in
the power-generation fuel mix has been reduced significantly, in favour of natural gas and coal.
To ensure adequate, secure and cost-effective energy supplies, the Malaysian government
formulated a National Depletion Policy in 1981. The policy sets a limit on the total production of
crude oil of 650 kb/d and natural gas from Peninsular Malaysia of 56.6 million cubic metres per
day.
3.10.5 Renewable Targets & Incentives
Malaysia is still drafting its Renewable Energy legislation and aims to derive 5% of its energy
needs from renewable sources by 2050, excluding hydro.
The only other areas of targets is in biofuels, as part of the Five Fuel Diversification, ppromotion
of a 5%-mix of processed palm oil with petroleum diesel (B5 diesel) on a trial basis on a fleet of
government vehicles.
Malaysia’s Renewable Targets
Year 2008 2010 2020 2030
Electricity Capacity 26GW 47GW
Electricity Generation 107TWh 110TWh* 150TWh* 216TWh*
Renewable Target 350MW
Source: EIA, Government Publications, Estimates
Feed in Tariffs
The Malaysian government is planning to introduce legalisation to make it mandatory for state
utility Tenaga Nasional to buy clean energy. The aim of the legislation is for Malaysia to have
2GW of installed capacity by 2020, from the modest 50MW in place currently. A committee is
currently drafting legislation to accord greater importance to the role of clean energy. The
legislation will have a RPS and mandatory feed-in tariffs (FiT).
State utility Tenaga Nasional Bhd has been paying a rate of USD 6 cents/kWh for renewable
energy projects, most of which have been biomass projects. However, this is still considered an
Asia Pacific Clean Tech Handbook 85 of 348 31-May-10
'informal' rate, and is not an official rate. The government plans would introduce a mandatory FiT
which will be higher than this.
3.10.6 Research & Development
It was announced in January 2010 that Masdar and 1Malaysia Development Berhad (1MDB)
would explore Clean Technology projects and investments, including the possibility of building
Malaysia’s first carbon-neutral city. Masdar and 1MDB also intend to co-operate and invest in
carbon reduction projects, under the Kyoto Protocol’s CDM and Clean Technology venture capital.
If fully implemented the cooperation agreement would lead to the development of new catalytic
projects, with an estimated value of USD100 million.
• Palm Oil Research Institute Malaysia (PORIM), established by law in 1979, is funded
mainly from a research tax from palm oil millers, which brings in 70 million ringitts every year.
The Malaysian Board of PORIM includes representatives from the palm oil industry and the
government, is advised on the research programmes of the institute by a Programme
Advisory Committee formed by experts in their own fields.
3.10.7 Financing
Public Sector Funding
The Malaysian government is implementing a MYR 1.5bn (USD 437m) loan scheme for
companies that use clean energy technologies.
The government is targeting biodiesel and biogas plant contractors, oil palm millers installing
greenhouse gas capture tanks and biodiesel plant owners for the bulk of the loans.
The scheme is part of the government's 2010 budget and will be implemented together with
commercial banks. Suppliers of green technology can borrow up to RM50m (USD 14.6m), while
their clients are eligible to take a maximum loan of RM10m (USD 2.9m).
The loans, of which the government will bear 2% of the total interest rate, will be offered from
January. The government will also guarantee 60% of the loan amount.
Separately, the government has launched its Incentives for Renewable Energy and Energy
Efficiency in Malaysia. The scheme, applications for which will be accepted until 2010, will
provide a 10-year income tax break for renewable energy businesses. There is also a full tax
allowance on qualifying five-year capital expenditure. Unused allowances can be carried forward
until fully absorbed.
Private Sector Funding
Venture Capital
Based on the Thomson Reuters Venture Capital Database, there were no deals completed in
2009 in Clean Technology. For more information, contact the Malaysian Venture Capital
Association.
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Project Finance
According to Thomson Reuters Project Finance Database, there were no projects associated with
Clean Technology in Malaysia in 2009.
Public Companies
Most Clean Tech companies listed on Bursa Malaysia are associated with Palm Oil and Biofuels.
There were 6 companies, with a Market Capitalisation of $530 million in 2009.
3.11 Philippines
3.11.1 Background
The Philippine government enacted the Renewable Energy (RE) Act in 2008, a far reaching
renewable energy policy in South East Asia at the time.
The Philippines’ Department of Energy (DoE) awarded:
• 87 contracts to 18 companies in November 2009 to invest a total of P90.4 billion (US$ 1.9
billion). Contracts included biomass, geothermal, solar, hydropower, ocean, and wind energy
resources, and could generate 4 GW of power. A total of 57 projects involved hydropower
development.
• A further 26 contracts were awarded in early 2010, with an investment of USD 278m in
investment for small hydro, marine, wind, geothermal and biomass.
The total number of contracts awarded since the government implemented the Renewable
Energy Act of 2008, is 180.
The new contracts signed included developments for small hydro, marine, wind, geothermal and
biomass. The contracts were awarded to Bell Pirie Power, Clean Rock Renewable Energy
Resources, Energy Development Corporation, Green Power Panay, Natural Power Sources
Integration, Pan Pacific Power, PNOC-Renewables, Phil-Korean Energy, SKI Construction Group
and SKI Mini-Hydro.
3.11.2 Market Size & Energy Mix
The primary energy demand in the Philippines is projected to grow from 40 Mtoe in 2007 to 73
Mtoe by 2030.
Electricity demand is projected to grow from 15.7 GW in 2008 to 34.3GW in 2030, with a large
proportion of renewables.
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3.11.3 Government Agencies
• Environmental Management Bureau (EMB) – part of the Department of Environment and
Natural Resources, focussed on air quality management, chemicals management,
environmental impact assessment, hazardous waste management, solid waste management
and water quality management.
• Department of Energy (DOE) is the lead agency to implement the Renewal Energy Act. The
department is focussed on energy independence and implementing market reforms outlined
in the Philippine Energy Plan (2005-2014)
• National Renewable Energy Board (NREB) oversees the implementation of the Renewable
Energy Act. Key roles:
o Recommend the mandated Renewable Portfolio Standards and minimum
generation capacities in off-grid areas
o Recommend actions and implementation of the National Renewable Energy
Program
o Oversee the implementation of the RE Trust Fund– finance research, development,
demonstration
o and promotion of RE sources for power and non-power applications 27
27
ADB: http://www.adb.org/documents/events/2009/CCEWeek/Presentation‐Vincent‐Perez‐Energy‐PHI.pdf
Asia Pacific Clean Tech Handbook 88 of 348 31-May-10
• Energy Regulatory Commission (ERC) - protects long-term consumer interests in terms of
quality, reliability and reasonable pricing of a sustainable supply of electricity.
3.11.4 Renewable Regulation
• Renewable Energy Act (RE Act). The RE Act establishes a regulatory structure for the
renewable energy industry. The Implementing Rules & Regulation (IRR) appoints the
Department of Energy (DOE) to implement the RE Act. The National Renewable Energy
Board (NREB) oversees the implementation of the RE Act. The Renewable Energy
Management Bureau (REMB) is charged with disseminating information, research and
monitoring of policies outlined in RE Act.
The IRR states key policies, timeframes for the completion. Detailed rules will be formulated,
reviewed and enacted in one year of the passage of RE Act. Key policies include:
• Creation of renewable portfolio standards (RPS) that obliges generators and utilities to source
or produce a percentage of power from renewables
• Establishment of Feed in Tariffs and certain privileges for generators for at least 12 years
• Development of a net metering scheme that allows end users to connect and supply to the
grid
• Formation of a renewable energy market for RE Certificates
Incentives
Incentives include:
• 7 year income tax exemption for new or existing projects, from start of commercial operations.
• Duty free import of machinery and equipment required for the project for 10 years from
registration of the project
• Realty tax of 1.5% on Net Book Value of construction works, equipment, machinery
• Carry over of net operating loss from the first 3 years of commercial operations
• Corporate tax rate of 10% after expiration of tax exemption
• Projects not receiving tax exemption before full operations, receive accelerated depreciation
at twice the rate
• 0% value added tax on sale of power
• Tax free sale of carbon credits
• Tax credit equivalent to 100% of VAT and customs that would have been paid of machinery
and equipment
The IRR states that all energy is owned by the state and that each developer will enter into a RE
contract with the government and be granted exclusive rights to develop a designated area for a
specified period of time. The RE contract will be up to 25 years and cover pre-development and
development. The government will receiver 1% (1.5% for geothermal) of gross income received
by the developers. This share is split 60% to the National government and 40% to the local
government. Biomass projects or small projects less than 100kW do not apply.
The RE Act is expected to be enacted within 2010.
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• Biofuels Act of 2006. Republic Act 9367 signed into law a mandatory biofuels standard
which requires a 5% ethanol blend for gasoline within two years, increasing to 10% within four
years under the approval of a new National Biofuels Board. A 1% biodiesel blend for diesel is
required within 3 months, to be increased to 2% within two years. The amount of bioethanol in
gasoline would be increased to 10% four years after the law is passed as determined and
recommended by the National Biofuels Board. RA 9367 also zero-rates the specific tax on the
biofuels component of blended gasoline or diesel.
3.11.5 Renewable Targets & Incentives
From a current 4,500 MW capacity from renewable energy, the DoE is looking at doubling the
figure to 9,000 MW in the next 10 years (2020), mainly from hydro, geothermal and biomass
projects.
• The Philippines Energy Plan (PEP). The Philippines Department of Energy has identified
long-term goals for RE development, namely: (i) increase RE-based capacity by 100% by
2013; and (ii) increase non-power contribution of RE to the energy mix by 10 MMBFOE in the
next years 2003-2012. In support of these general goals, the government shall aim to (i) be
the number one geothermal energy producer in the world; (ii) be the number one wind energy
producer in Southeast Asia; (iii) double hydro capacity by 2013; and (iv) expand contribution
of biomass, solar and ocean energy by about 131 MW. These goals serve as concrete
benchmarks for government to advance its vision of a sustainable energy system with RE
taking a prominent role in the process.
Philippines Renewable Targets
Year 2008 2010 2020 2030
Electricity Generation 58TWh 70TWh* 115TWh* 129TWh*
Renewable Target 4.5GW 9GW
Hydro 2.4GW 3GW
Nuclear 600MW in 2025 2400MW in
2030
Bioethanol 5%
Biodiesel 2%
Source: EIA, CARMA, Government Publications, Estimates
Feed in Tariffs
The Philippine government said it is planning to have feed-in tariff program for clean energy
projects in place by June 2010. The NREB, which is advising the government on the country's
renewable energy policy and framework, said it has started to study the FIT and will submit its
proposal to the Energy Regulatory Commission proposals for the scheme by April 2010.
The ERC will then hold public consultations, on the FIT and a planned renewable portfolio
standard, both of which are part of the Renewable Energy Law. The NREB said hopes the FIT
will be implemented by June 2010, a year after the signing of the implementing rules and
regulations governing the Renewable Energy Law.
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Under the law, the ERC will, in consultation with the NREB, develop the FiT for different types of
renewable sources of energy within a year from the implementation of the renewable energy law
(in 2009).
3.11.6 Research & Development
The Philippine Council for Industry and Energy Research and Development (PCIERD) plays
a key role in the implementation of the Biofuels Law as the agency responsible for the
development and implementation of an R&D program supporting a sustainable improvement in
biofuel production and utilization technology.
The PCIERD through the Industrial Technology Development Institute (ITDI) is currently
testing the Jathropa methyl ester in cooperation with the Philippine National Oil Company
(PNOC). Sweet sorghum is also being studied as possible alternative to sugarcane for bioethanol
production. These alternative energy sources are being pursued due to the availability of raw
materials and more importantly, they reduce vehicle emission of particulate matter, unburned
hydrocarbons, carbon monoxide, among other things and improve the fuel efficiency of vehicles.
3.11.7 Financing
Public Sector Funding
• The Philippines” Department of Energy (DoE) awarded 87 contracts to 18 companies to
harness renewable energy in November 2009 to invest a total of P90.4 billion (US$ 1.9 billion).
Companies given contracts were: Deep Ocean Power Philippines, Inc.; Trans-Asia
Renewable Energy Corp.; Constellation Energy Corp; Century Peak Energy Corp.; PNOC-
Renewables Corp.; Energy Development Corp.; First Gen Bukidnon Power Corp.; Luzon
Hydro Corp.; Lucky PPH International, Inc.; First Gen Mindanao Hydro Power Corp.; AV
Garcia Power Systems Corp.; Benguet Electric Cooperative, Inc.; Alternergy Philippine
Holdings Corp.; DOST-Industrial Technology Development Institute; Unisan Biogen, Corp.;
AP Renewables Inc.; Mindanao Energy Systems, Inc. and HEDCOR, Inc.
• A further 26 contracts were awarded in early 2010, with an investment of USD 278m in
investment for small hydro, marine, wind, geothermal and biomass. The contracts were
awarded to Bell Pirie Power, Clean Rock Renewable Energy Resources, Energy
Development Corporation, Green Power Panay, Natural Power Sources Integration, Pan
Pacific Power, PNOC-Renewables, Phil-Korean Energy, SKI Construction Group and SKI
Mini-Hydro.
• The Philippine government is planning to set up a USD 2.8bn clean energy fund to
complement its renewables legislation. The Clean Technology Fund is part of the
government's plans to invest in renewable energy. It has already implemented a renewable
energy legislation, and to complement this, is working out a renewable portfolio standard
(RPS) and a FiT mechanism.
International Finance Corporation (IFC), the private sector investment arm of the World Bank
Group, said it expects to increase its investment in clean energy projects in the Philippines from
Asia Pacific Clean Tech Handbook 91 of 348 31-May-10
USD 1.3bn currently to USD 3bn by 2011. The IFC has flagged geothermal, hydroelectricity, wind
and biomass as projects which offer potential.
It has launched the Sustainable Energy Finance Program 'to assist local banks in moving loan
financing away from high energy consuming projects toward those favouring energy efficiency,
and emission reduction while meeting the country's growing energy needs."
Through the Sustainable Energy Finance Program, IFC said it will be extending help to local
financial institutions develop sustainable energy investments by providing financial and technical
support, like entering into risk-sharing agreements.
Private Sector Funding
Venture Capital
Based on the Thomson Reuters Venture Capital Database, there were no deals completed in
2009 in Clean Technology. For more information, contact the Philippine Venture Capital
Investment Group.
Project Finance
According to Thomson Reuters Project Finance Database, there were 16 projects totaling $3.4
billion, associated with Clean Technology in Philippines in 2009.
Public Companies
Most Clean Tech companies listed on Philippine Stock Exchange are associated with Palm Oil
and Biofuels. There were 3 companies, with a Market Capitalisation of $4.3 billion in 2009.
3.12 Thailand
3.12.1 Background
Thailand has put in place a 15 year Masterplan for renewable energy that will push its renewable
target to 20% of total target. Unlike other countries in APR, Thailand has a high dependence on
gas, as a source of power with up to 70% of total generation. It sees renewable energy, as a way
to diversify its energy mix and reduce its reliance on natural gas.
Thailand is also looking in the development of nuclear power by 2020 to further reduce its
reliance on natural gas and fossil fuels.
According to the Board of Investment (BoI), there are 709 projects in services and public utilities
with potential investment value at Bt 430.8 billion in 2010. Most of the projects are related to
alternative energy such as production of electricity from wind and solar energies as well as
natural gas.
3.12.2 Market Size & Energy Mix
According to the IEA Outlook, primary energy demand will increase from 104 Mtoe in 2007 to 174
Mtoe in 2030, with a large reliance on natural gas, primarily for electricity generation.
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Electricity demand is forecast to increase from around 30GW in 2008 to 75GW by 2030.
3.12.3 Government Agencies
• Ministry of Energy (MOE)
• Department of Alternative Energy Development and Efficiency (DEDP) of the Ministry of
Energy
• National Energy Policy Council (NEPC)
• Board of Investment (BoI) oversees investment in government related projects that
include renewable energy projects.
• Electricity Generating Authority of Thailand (EGAT) Thailand’s main electric power
producer/wholesaler
• Metropolitan Electricity Authority (MEA)
• Provincial Electricity Authority (PEA)
• The Energy Policy and Planning Office (EPPO) is the government agency monitoring the
ENCON Fund allocation for renewable energy projects. Grants have been given to
encourage R&D on solar energy.
3.12.4 Renewable Regulations
• Power Development Plan (PDP) Thailand’s electricity sector is set out in the PDP 2007
which covers the period 2007-2021. Under the plan the EGAT will continue to develop the
major power generation projects, while there will be a greater role for the private sector, as
purchases from small power producers (SPPs) and independent power producers (IPPs) will
increase, as will imports from neighbouring countries. The PDP 2007 projects that the
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country’s generating capacity will increase to 58 GW by 2021. There is also a goal of
supplying 2 GW of electricity from nuclear from 2021, with an expectation that this would be
increased by a further 2 GW after a further 10 years. The plan seeks to increase the use of
renewables in power generation, thereby reducing dependence on natural gas.
• PDP 2010. The Energy Ministry is revising its PDP (2010-2030) to be completed in early 2010.
The so-called ‘PDP 2010’, covering the next 20 years, will focus on sustainability of power
generation and environmental preservation and targets power purchase from neighbouring
countries of 13-25 % starting 2015. Under such revision, the subcommittee will come up with
information needed on 2010's estimated gross domestic product, the forecast of electricity
demand over the next 20 years, the plan to purchase electricity from overseas, the
development plan for renewable-energy plants and the demand-side management plan. The
PDP 2010 plan will be an improvement on the recently revised PDP 2007. Once completed,
the office will organise a public hearing before submitting it to the National Energy Policy
Council for approval.
3.12.5 Renewable Targets & Incentives
Thailand has an installed generating capacity of 28.5GW, with approximately 13.2% of the
capacity from hydropower and 1% from renewables.
The Thai government has set aside a THB 15.6bn (USD 440m) budget in its Masterplan for
renewable energy development through to 2022. The 15-year plan targets a 20% contribution of
renewable energy to the country's overall energy supply. The Department of Alternative Energy
Development and Efficiency said the budget will is for capital needed from state agencies and
universities to encourage renewable energy consumption.
A large portion of the budget will go into research and development activities, with the rest meant
for incentives to make projects economically viable.
By 2022, the plan represents 5,600MW of renewable electricity generation, the majority of which
will come from:
• Biomass from 1,600MW in 2008 to 3,700MW in 2022. Biomass heat would increase from
2781 ktoe to 6760 ktoe.
• Wind power would grow from 1MW to 800MW; and
• Solar – largely photovoltaics – from 32 MW to 500 MW
The MOE expects investment over the 15-year period, from public and private sources, to be
some 488 billion Baht (US$ 14.6 billion). Other sectors that will be able to tap into the budget
include fuel cells.
Development and promotion of biofuels is one of the top agenda items of the Thai government.
Targets have been set to expand the use of ethanol to 9 Ml per day (Ml/d) in 2022 and of
biodiesel to 4.5 Ml/d in 2022.
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Thailand Renewable Targets
Year 2008 2011 2022 2030
Electricity Capacity 28.5GW 75GW
Electricity Generation 147TWh 170TWh* 280TWh* 325TWh*
Renewable Target 13.5% 20%
(5,600MW)
Hydro 156MW 324MW
Nuclear 0 0 200MW 400MW
Wind 1MW 115MW 800MW
Solar PV 32MW 45MW 500MW
Biomass 1,610MW 2,800MW 3,700MW
Bioethanol 3Ml/day 9Ml/day
Waste to Energy 100MW 160MW
Biogas 30MW 120MW
Biodiesel 4M.l/day 4.5Ml/day
Source: Ministry of Energy, Thailand’s Energy Policy and Development Plan NEPC, EIA, CARMA,
Estimates
In order to reduce its reliance on natural gas, and increase capacity from renewables, it has
introduced a couple of programs:
• The Small Power Producer (SPP) program that cover cogeneration and renewable power
developers wanting to sell to the grid in the range of 10 to 90MW. The National Energy Policy
Council (NEPC) announced in the Power Development Plan in 2009 that provides for firm and
non firm SPP capacity of up to 2,000MW by 2013.
• The Very Small Power Producer (VSPP) program introduce in 2002 to provide for small
business operations in remote areas to sell power of up to 10MW to the grid. VSPP PPA is
not firm and paid on a ‘net metering’ basis. Most projects were biomass co-generation
projects.
As of 2008, there were 61 SPPs in operation, generating 3,877MW and 100 VSPPs generating
540MW 28.
Feed in Tariffs (FiT)
Current support measures for renewables include FiTs, including for biomass, small hydropower,
biogas, wind and solar photovoltaic (PV).
The Thai government is planning to increase the tariffs for biomass and biogas projects to make
them more competitive.
28
PFI, 2nd December 2009/Issue 422
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The MOE said the increase in tariffs, through the 'added tariff mechanism' is needed because the
cost of feedstock has increased. The adder tariff is a payment above prevailing tariffs for
renewable energy projects to encourage investment.
NEPC Proposed Feed in Tariffs in Thailand
Project Type Current Adder New Adder Special Adder Special Southern
Adder
(THB/kWh)
Wind <50kW 3.50 4.50 1.50 1.50
Wind >50kW 3.50 3.50 1.50 1.50
Solar 8.0 8.0 1.50 1.50
Biomass <1MW 0.30 0.50 1.00 1.00
Biomass >1MW 0.30 0.30 1.00 1.00
Biogas <1MW 0.30 0.50 1.00 1.00
Biogas >1MW 0.30 0.30 1.00 1.00
Landfill Gas 2.50 2.50 1.00 1.00
Thermal Process 2.50 2.50 1.00 1.00
Minihydro 50-200 0.40 0.80 1.00 1.00
kW
Minihydro< 50kW 0.80 1.50 1.00 1.00
Source: PFI, NEPC
3.12.6 Research & Development
No key research development identified.
3.12.7 Financing
Public Sector Funding
• ENCON Fund allocation for renewable energy projects. Grants have been given to
encourage R&D on solar energy.
• Thailand Research Fund (TRF), an independent organization under the Office of the Prime
Minister, is another institute undertaking R&D and facilitating information on solar cells.
The Thai government is planning to launch a carbon fund later this year, as the country gears up
efforts to promote clean energy projects. The Thailand Greenhouse Gas Management
Organisation is drafting the structure of the fund and expects to complete this by September. The
fund, which could be set up as a joint venture with private firms, would provide low interest rate
loans for CDM or co-investment in projects. It will also purchase carbon credits from project
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developers. The Greenhouse Gas Management Organisation has called on the Board of
Investment to offer tax incentives for CDM projects after the Finance Ministry ruled out the
possibility of lower taxes for revenue generated from carbon sales.
The World Bank said it plans to offer Thailand USD 700m for its clean energy projects and to
boost energy efficiency. The soft loans will be made available through the World Bank's Clean
Technology Fund and by its subsidiary the International Finance Corporation. Terms and
conditions for accessing the funds will be released to loan applicants later this month. The
average interest rate will be from 0.25% to nearly 2% with 20 to 40-year repayment period. The
World Bank has estimated that a total of THB 157bn (USD 4bn) investment will be required to
develop clean energy projects in Thailand over the next two years.
Private Sector Funding
Venture Capital
Based on the Thomson Reuters Venture Capital Database, there were no deals completed in
2009 in Clean Technology. For more information, contact the Thai Venture Capital Association.
Project Finance
According to Thomson Reuters Project Finance Database, there were 2 projects totaling $50
million, associated with Clean Technology in Malaysia in 2009.
Public Companies
Most Clean Tech companies listed on Thai Stock Exchange. There were 5 companies, with a
Market Capitalisation of $800 million in 2009.
3.13 Australia
3.13.1 Background
Australia is blessed with abundant sunshine, strong winds, the largest reserves of uranium and
unceasing waves in the south from stormy weather whipped up near Antarctica.
At least 20% of the country’s electricity supply is targeted to be generated from renewable
sources by 2020. The Government’s Renewable Energy Target (RET) and the proposed
Carbon Pollution Reduction Scheme (CPRS) are expected to be key long-term drivers of
cleantech investment. With 15% of electricity produced by hydro, there only needs to be around a
5% increase from today.
Australia is home to well known Clean Tech companies such as Solahart, Memcor, Geodynamics,
Ausra and Pacific Hydro. With its increased investment in R&D by the Government, developed
capital markets and internationally recognized institutions, Australia should be well placed in the
Clean Tech markets in Asia Pacific.
In May 2009, the Australian Government announced that it will invest $4.5b under its Clean
Energy Initiative to support Clean Technologies. Of this amount, $3.5b is new funding to be
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directed to various programs including large-scale integrated carbon capture and storage projects,
and a solar flagship program.
Australia currently generates around 80% of its power from coal, the other sources from hydro
and natural gas. It is ironic that it sits on the largest reserves of uranium globally, yet does not
have a single nuclear reactor generating electricity. The key question remains, if the
government’s policy will include nuclear, within the renewable portfolio and look to include nuclear
power, as an option of base load power.
Experts forecast Australia needs to install around 11,000 MW of new capacity to meet the targets,
possibly unleashing $22 billion in investment in the sector.
That means more than half of all of the country's new electricity generation capacity between now
and 2020 will have to use renewable energy.
3.13.2 Market Size & Energy Mix
Electricity Demand
The Australian Utility Market is split into 3 markets: the National Electricity Market (NEM); the
Wholesale Electricity Market (WEM) for Western Australia; and the Darwin and Katherine
Interconnected System (DKIS) servicing the Northern Territory.
• NEM was established by the disaggregation of the government vertically integrated system
and supplies electricity to 6 states: ACT, NSW, Queenland, Victoria, South Australia and
Tasmania and accounts for around 200 GWh per year, over 90% of the total power
generation
• WEM was established by the restructuring of Western Power Corporation, into four
corporations: Synergy; Horizon Power; Verve Energy and Western Power and accounts for
around 16.5 GWh per year.
• DKIS is dominated by the government owned Power and Water corporations and accounts for
less than 2 GWh per year
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3.13.3 Government Agencies
National
• Department of Water and Energy (DWE). The Australian Department of the Environment
and Water Resources develops and implements national policies, programs and legislation to
protect and conserve Australia's natural environment and cultural heritage.
• Office of the Renewable Energy Regulator (ORER) The ORER is a statutory authority
established to oversee the implementation of the Australian Government's renewable energy
target (RET).
• Department of Climate Change (DCC) is responsible for the Carbon Pollution Reduction
Scheme (CPRS) and Renewable Energy Target (RET), Solar Credit program,
• Department of Energy, Water Heritage and the Arts (DEHWA) responsible for the Smart
Grid Fund and Renewable Energy Equity Fund (REEF), Solar Cities, Green Loans, Low
Emission and technology abatement fund, Renewable and remote power program, Solar hot
water, rebate program, Energy Efficiency home package
• Department of Resources, Energy and Tourism (DRET) responsible for the
Commercialisation Fund, the Energy Efficiency Opportunities, Advanced electricity storage
program
• Department of Innovation, Industry, Science and Research (DIISR) responsible for Clean
Business Australia, Clean Energy Enterprise,
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State
• Queenland Office of Clean Energy (OCE)
• Sustainability Victoria (SV)
3.13.3 Clean Technology Regulation
The main regulatory driver for Clean Technology investment is the Mandatory Renewable Energy
Target that has increased Australia’s renewable target to 20% by 2020. Other key regulations
include:
Federal
• Renewable Energy Target (RET). The aim of the renewable energy target is to increase the
production of renewable energy: all electricity retailers and wholesale buyers have a legal
liability to contribute towards the generation of additional renewable energy. They meet their
legal obligation by acquiring renewable energy certificates (REC); certificates can be traded in
the REC market, at market price. The Australian Government is committed to reach
9,500GWh of renewable energy by 2010. Furthermore, in 2007 the Australian Government
introduced a comprehensive renewable and low-emission energy target, which builds on the
market-based framework of the MRET. The new national Clean Energy Target (CET) will be
maintained at 45,000GWh of low-emissions energy generation from 2020 until 2030. In
February 2010, the Federal Government announced that it will split the RET scheme in two in
the wake of criticism it has undermined investment in large-scale technologies in favour of
small-scale solar PV. Legislation to create the new small-scale renewable energy scheme
(SRES) and large-scale RET (LRET) would be introduced in the winter (Aug) sittings of
parliament to start in 2011.
• Building Code Australia (BCA). BCA is managed by the Australian Building Codes Board
(ABCB) on behalf of the Australian Government and State and Territory Governments. Its
goal is to enable the achievement of minimum necessary standards of relevant health, safety,
amenity and sustainability objectives efficiently. The BCA was revised in 2006 to include new
Minimum Energy Performance Standards (MEPS) for all classes of buildings.
• Greenlight Australia. Greenlight Australia provides a framework for reducing energy
consumption from Australian lighting over the ten-year period, following a 2005 commitment
of the Australian governments and the Australian lighting industry to reduce the energy
consumption of lighting by 20% by 2015.
• Coal21. The Australian Coal Association’s program between the coal and electricity industries,
governments, researchers and unions to investigate a variety of technologies, including CCS
to reduce or eliminate greenhouse gas emissions from coal production and coal-fired power
generation.
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3.13.4 Renewable Targets & Incentives
Australia Renewable Targets
Year 2008 2010 2020
Electricity Generation 261TWh* 291TWh* 306TWh*
Renewable Target 20% (45,000 GWh)
Hydro 17.8TWh 17TWh 16.8TWh
Nuclear 0 0 0
Source: EIA, CARMA, Government Publications, Estimates
Wind power remains the cheapest form of renewable energy but is still at an early stage, with
installed capacity at about 1.3GW - barely 3% of Australia's total installed capacity of 45 GW.
Solar power holds promise in a country known for its sunshine. Australia's solar credits program,
which will subsidise the cost of households installing 1.5-kw solar power systems, and subsidised
tariffs, should help boost demand. Australia may see increased investment in geothermal power,
which taps heat trapped in granite 3 km or more below the earth's surface to run turbines and
generate power. Studies suggest that Australia's hot fractured rock geothermal energy could
provide up to 2,200 MW of base-load capacity, or up to 40% of the country's renewable target,
entailing investment of about AUD$12 billion.
A rush to deploy proven technologies will be at the expense of geothermal and other emerging
technologies including concentrated solar power and ocean energy, which require time and huge
capital to develop.
Renewable energy would require government subsidies for many years to make it cost
competitive against fossil fuels. Marginal costs for wind and geothermal over the long-term would
be about $100 per MWh and concentrated solar about $150 per MWh. Wave energy is estimated
at about $225 per MWh.
Though costs are expected to trend downwards over time, competing with conventional electricity
prices, currently at $30 to $50 per MWh, would be tough. Rising prices for carbon amid earth's
limited supply of oil and gas could work towards making clean energy cost-competitive.
For now, the main challenge confronting the renewable energy sector would be securing funding
for investment in building new projects. Fiscal stimuli directed towards boosting low carbon
energy systems should ease industry's funding concerns.
The South Australian state government said it aims to increase the state's renewable energy
production target to 33% by 2020. In a bid to upstage other states, South Australia will aim to
reach 20% target by 2014 and announced a new AUD 20m Renewable Energy Fund to
accelerate investment in this sector.
Australia's Senate approved laws on August 2009, requiring 20% of the country's energy to come
from renewable sources by 2020, opening the door to a $22 billion investment rush and lifting
hopes of an emissions trade deal.
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The renewable laws aim to come into effect on January 2010 and target production of 45,000
GWh of clean energy, or 20% of Australian energy, over the next decade.
The centre-left government struck a deal with the conservative opposition controlling the largest
Senate vote bloc to pass the laws, raising hopes of agreement in November when controversial
emissions trade laws will return to parliament, where they were rejected by the Senate last week.
Following are some of the main steps the government hopes to achieve, and industry concerns
about the law.
Feed in Tariffs (FiT)
Australia currently has no nationalised FiT program, only state run schemes. A summary of the
state arrangements is provided below:
Summary of FiTs in Australia
Max Rate Program
State Current status Model
Size Paid Duration
60c
VIC Commenced November 2009 5 kW 15 years Net
(credit/cash)
SA Commenced July 2008 10 kW 44c+ 20 years Net
under 10 kW -
50.05c/kWh up to 10kw
premium rate; over
capacity and
ACT Commenced March 2009 10kW - 80% of 20 years Gross
40.04c/kWh up to 30kW
premium rate; over
capacity
30 kW - tbc
TAS Commenced tbc 20c tbc Net
45.76 c/kWh.
Incentive is available for 225 Capped at $5 per day,
NT rooftop PV tbc then reverts to 23.11c tbc Net
systems in Alice Springs. per
kWh.
WA To commence July 1 2010 tbc tbc tbc Net
QLD Commenced July 2008 10 kW 44c+ 20 years Net
NSW To commence January 2010 10 kW 60c/kWh 7 years Gross
Source: Government Publications, Energy Matters – www.energymatter.com.au
Renewable Energy Certificates (RECs)
Created under the earlier MRET scheme, each REC represents 1 MWh of green energy
produced and is sold to wholesale electricity buyers. These firms are legally bound to meet a
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share of the renewable energy target in proportion to their share of the national wholesale power
market.
RECs are trading around A$35 per MWh and will continue to be used under the expanded
renewable target legislation.
Eligible projects that can earn RECs include solar water heaters and small generation units, such
as solar panels on household roofs, small wind turbines and micro-hydro.
Certificate Multiplier
Instead of simple cash rebates, the new legislation proposes a complex system of issuing large
amounts of RECs upfront for clean-energy installations up to the first 1.5 KW of capacity. Under
the scheme, householders can receive up to 15 years of RECs based on the amount of energy
calculated to be generated over the 15-year period.
As an extra incentive, the scheme has what is called a REC multiplier during the initial years.
For example, during the first two years, householders can earn one-off subsidies of five times the
15 years' worth of RECs. Once these are issued, no more RECs are given for a particular
installation for the deemed 15-year life of the generating unit.
Industry Concerns
First, the industry says the 1.5 KW limit is far too small, since Australian households consume
between 3 and 5 KW. The nation's peak clean-tech industry body, the Clean Energy Council,
says the limit should be raised to 200 KW to really get green investment going.
Second, the scheme would largely support more proven renewable energy technology,
particularly wind power, which could chew up most of the available RECs and leave little for
emerging renewable technologies such as geothermal and wave energy.
Third, the creation of "phantom" RECs is a potential worry. For each REC, extra certificates are
created under the multiplier scheme for the same output. The scheme target should be increased
by the number of additional RECs created by the multiplier, the Council says, to ensure the extra
RECs are fully taken into account.
Fourth, coal seam methane, a coal mining waste product, is among the technologies to benefit
from the law. Though the technology won't count toward the 20% renewable target, the gas from
coal seams isn't exactly renewable.
Long term Target
The RET scheme runs until 2030 but the 45,000 GWh target, set to be reached by 2020, remains
the same until 2024, then quickly declines to 23,000 GWh by 2030. In effect, this will lead to a
substantial drop in the number of RECs issued. Creation of a boom-and-bust market is an
industry concern. The Clean Energy Council fears the trajectory will spook investors and lead
investment to stall by 2014 because there will be only a small period in which to recoup funds by
2024.
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3.13.6 Research & Development
• The Intelligent Grid Research Program is an Australian collaboration between the CSIRO
and five universities investigating technologies and practices to make our electricity networks
smart, greener and more efficient. Intelligent Grid is a 3-year collaborative research project
running from July 2008 to June 2011and undertaken by five universities- University of
Technology, Sydney, University of Queensland, and University of South Australia,
Queensland University of technology and Curtin University. It has $3.4 million in funding from
CSIRO and a further $6.1 million from the collaborating institutions.
3.13.7 Financing
Public Sector Funding
National
• Renewable Energy Development Initiative (REDI). REDI was a program launched in 2004
supporting renewable energy innovation and commercialisation. It provided grant funding up
to AUS$100 million in competitive grants to Australian businesses over seven years for
research and development (R&D), proof-of-concept, and early-stage commercialisation
projects with high commercial and greenhouse gas abatement potential. This program ceased
funding new projects in January 2008. Projects with contracts in place before this will continue
until completion.
• Australian Government Water Fund. The Fund, run by the Australian Government, is a $2
billion program over 2005-2010 funding water infrastructure, improved water management,
and better practices in the stewardship of Australia’s scarce water resources. The Fund
supports field water projects that will improve Australia’s water efficiency and environmental
outcomes.
• Smart Grid Fund. The Government will provide up to $100 million, funded by DEWHA to
develop a smart grid energy network to a consortium of State and Local government and
private sector companies. Award of the investment is expected in mid 2010.
• Energy Innovation Fund has been established to provide $150 million to support the
development of Clean Technology and funded by DRET.
• Renewable Energy Equity Fund (REEF) is a $25 million fund for venture capital for renewable
energy companies.
• Commercialisation Fund is a $465 million fund to support leading edge technology to bring to
market.
• Solar Cities
Private Sector Funding
In March 2003 the Australian Coal Association (ACA) issued initiations to representatives from
the coal and electricity industries, unions, federal and state governments and the research
Asia Pacific Clean Tech Handbook 104 of 348 31-May-10
community to participate in a process aimed at first identifying and then realising the potential for
reducing or eliminating greenhouse gas emissions from coal-based electricity generation in
Australia. Agreement to participate by some 40 organisations led to the creation of the COAL21
partnership or program. The program's development work culminated with the release in March
2004 of the COAL21 Action Plan - providing the blueprint for accelerating the demonstration and
deployment of technologies to reduce greenhouse gas emissions from coal-based electricity
generation. See: COAL21 Action Plan - Summary. In 2006 the ACA announced the establishment
of the COAL21 Fund as part of a world-first, whole-of-industry, funding approach to support
greenhouse gas abatement. The COAL21 Fund is raising more than $1 billion over 10 years from
a voluntary levy on black coal production to support the pre-commercial demonstration of low
emissions technologies in the power generation sector
Venture Capital
There is a significant financing gap between innovation and commercialisation, particularly at the
pre-seed and seed stages. Most VC funds are fully invested and there are only a handful of
cleantech-dedicated funds. In addition, there are limited funds available for investment in
cleantech demonstration projects. However, Australia is one of the leading countries at raising
VC/PE deals in Asia Pacific.
Based on the Thomson Reuters Venture Capital Database, there were 8 deals , totaling $830
million completed in 2009 in Clean Technology. For more information, see the Australian Venture
Capital Association.
Project Finance
According to Thomson Reuters Project Finance Database, there were 17 projects totaling $5.3
billion, associated with Clean Technology in Malaysia in 2009.
Public Companies
Most Clean Tech companies listed on the ASX. The ASX has over 40 companies listed in the
Clean Tech and resource space and one of the leading exchanges in the region at raising capital
for this sector.
Asia Pacific Clean Tech Handbook 105 of 348 31-May-10
Figure 3.14 - Australia Private Sector Funding
13.2B 9.3B 40 Companies 829M 40 Companies
VC/PE Deals
37 Companies
Project Financing Deals 8.3B
Market Cap/Companies
33 Companies
28 Companies
6.2B
4.4B
3.5B 5.3B
22 Deals
17 Deals
173M 14 Deals
14 Deals
11 Deals
11 Deals 11 Deals
8 Deals
6 Deals 39M 3.3B
28M
15M 1.3B
2005 2006 2007 2008 2009
Source: Thomson Reuters
3.14 New Zealand
3.14.1 Background
New Zealand has the highest percentage of power generated from renewable energy in the Asia
Pacific region. A number of regulations and policies are in place to target that number up to 90%
by 2025.
However, a change in government in 2008 has put a stop in some of these policies and a review
of the Energy Strategy is likely to change some of the key policies to focus on energy security.
3.14.2 Market Size & Energy Mix
New Zealand currently generates around 70% of its power from renewable sources, mainly from
hydro and geothermal.
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3.14.3 Government Agencies
• Ministry for the Environment is the Government policy agency with over-arching responsibility
for the implementation of the Resource Management Act (RMA) and Hazardous Substances
and New Organisms Act (HSNO, see below). The Department of Conservation is responsible
for the protection of natural and historical heritage.
Central government can issue national policy statements on any aspect of resource management
which is of national significance. They will provide direction for district and regional councils.
Regional councils are responsible for the mandatory regional policy statements. Other ministries
involved in Clean Technology include:
• Ministry of Economic Development
• Ministry of Research, Science and Technology
• Ministry of Agriculture and Forestry
• Ministry of Energy
3.14.4 Renewable Regulation
• Resource Management Act (1991) defines sustainable management in ways that address
social, economic, and cultural considerations, including meeting the needs of future
generations, safeguarding the life-supporting capacity of natural resources and ecosystems,
and avoiding, remedying, or mitigating the adverse environmental effects of human activities.
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• Energy Strategy 2007, the strategy sets out the Government’s vision for a sustainable, low
emissions energy system and includes an action plan for implementation. The Strategy sets a
target of generating 90% of New Zealand’s electricity from renewable energy sources by
2025. The new government announced in 2009 that it is revising the Energy Strategy to focus
on security of supply.
• Framework for a New Zealand Emissions Trading Scheme (ETS) 2007. The government
has made an in-principle decision that the ETS will include all major sectors and all
greenhouse gases specified in the Kyoto Protocol. It is expected that by 2013 all major
sectors will be included. However, the ETS is currently under review, with the change in
government in 2008
• Minimum Energy Performance Standards (MEPS) The Government introduced regulations
in February 2002 which require selected products and appliances to meet minimum energy
performance standards (MEPS) and/or energy labelling requirements: Energy Efficiency
(Energy Using Products) Regulations 2002
• Energy Efficiency (Energy Using Products) Amendment Regulations 2004
• New Zealand Waste Strategy. This includes a target requiring all substandard wastewater
treatment plants to be upgraded, closed or replaced by December 2020. The Ministry for the
Environment partners the New Zealand Water and Wastes Association to develop initiatives
which improve the country's environmental performance in the area of wastewater.
• Biofuels Sales Obligation (2007). The Government announced in 2007 that it would
introduce a mandatory obligation for firms that sell petrol or diesel to sell biofuels. However
the Sales Obligation was repealed in 2008, with the change in Government.
3.14.5 Renewable Targets & Incentives
New Zealand proposed a 90% renewable energy target by 2025, as part of its Energy Plan in
2007. However, with the change in government in 2008, the Plan is currently under review.
New Zealand Renewable Targets
Year 2008 2010 2025
Electricity Generation 43TWh* 45TWh* 50TWh*
Renewable Target 90%
Source: EIA, CARMA, Government Publications, Estimates
3.14.6 Research & Development
• The Foundation for Research, Science and Technology. The Foundation was established
by the Research, Science and Technology Act 1990 to invest in science and technology
research for the benefit of New Zealand. It is a Crown Agent governed by a Board appointed
by the Minister of Research, Science and Technology. Its aim is to stimulate prosperity and
improve the well-being of New Zealanders and the environment through investing in
innovation and fostering the creation of new knowledge. It invests approximately NZ$450
million of public money per annum through a number of funds and schemes to help support:
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public good' related science and technology, undertaken by Crown Research Institutes,
universities, private researchers and industry led-consortia; private sector business research
and development; and top-achieving students and researchers.
• Sustainable Business Initiatives
• Pastoral Greenhouse Gas Research Consortium (PGgRc) Launched in 2002, this is a
consortium of organisations from the agriculture industry (AgResearch Ltd, Dairy Insight,
DEEResearch, the Fertiliser Manufacturers' Research Association, Fonterra, Meat and Wool
New Zealand and Wrightson Ltd) who, with FRST (the Foundation of Research, Science and
Technology), match fund investment which aims to understand and provide mitigation
solutions for greenhouse gases produced by grazing animals.
3.14.7 Financing
Public Sector Funding
• The Energy Intensive Business (EIB) project. This project, run by the Energy Efficiency
and Conservation Authority (EECA), offers cash grants to businesses to help them adopt
energy saving technologies. The project is targeted at companies that spend a high portion of
their business costs on energy, allowing them to apply for up to 40% of the capital cost of an
energy efficiency project (to a maximum of $100,000). The grants are designed to pay for
projects that include energy efficient technologies such as: high efficiency motors; fans and
boilers; variable speed drives; dehumidifier dryers; heat recovery; storage and retention;
cogeneration; renewable waste product fuels; industrial refrigeration; fishing technologies;
and soil moisture sensing.
• Bio-energy Gateway. This is a program to support the use of wood waste as a renewable
energy source from businesses. EECA is coordinating the bioenergy initiative of the
Government’s Forest Industry Development Agenda (FIDA) to increase the uptake of
renewable energy from the forestry sector. It provides tools, calculator and forums for the
business
Private Sector Funding
Based on the Thomson Reuters Venture Capital Database, there were no deals completed in
2009 in Clean Technology. For more information, contact the NZ Venture Capital Association.
Project Finance
According to Thomson Reuters Project Finance Database, there was 1 projects totaling $632
million, associated with a Wind Project in 2009.
Public Companies
Most Clean Tech companies listed on NZ Stock Exchange. There were 2 companies, with a
Market Capitalisation of $35 million in 2009.
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4 REGIONAL COMPARISON
The APR will generate over 15,000 TWh by 2030, which will account for over half the global total.
The North Asian Countries account for the largest power generation in APR (76%), mainly driven
by China, which will increase to over 80% by 2020.
Hydro accounts for around 13-14% of the total power generated in the APR
Nuclear, which is driven by the North Asian Countries and India, accounts for 8-9% of the total
power generated.
Renewables, excluding Hydro accounts for only 2.3% in 2010 and expected to increase to 4% by
2030. Wind Power, Solar and Biomass are the largest contributors to the renewable contribution.
Other growing sectors include Geothermal and Wave Technology.
4.1 North Asia
2010 2020
Generat Generat
ion Renewa ion Renewa
(TWh) Thermal Nuclear Hydro ble (TWh) Thermal Nuclear Hydro ble
China 3968 3223 65 642 36 6344 4847 286 1118 93
Japan 1063 699 310 79 43 1182 680 336 91 40
South
Korea 412 265 142 4 2 537 313 211 4 8
Taiwan 218 164 38 8 8 354 276 58 9 11
North Asia 5661 4351 555 733 89 8416 6116 891 1222 152
Source: EIA, IEA, CARMA, Estimates
Hydro is expected to contribute over 1,200 TWh, with over 1,100 TWh contribution from China
alone, mainly due to the construction of the Three Gorges Dam.
Nuclear is the second largest contributor with close to 900TWh by 2020, split evenly between
Japan, South Korea and China.
Wind , Solar and Biomass are the major contributors to the Renewable Contributions, with
100GW and 30GW target for Wind and Biomass for China in 2020.
4.2 South Asia
2010 2020
Generat Generat
ion Renewa ion Renewa
(TWh) Thermal Nuclear Hydro ble (TWh) Thermal Nuclear Hydro ble
India 863 667 37 138 21 1463 1050 119 247 47
Source: EIA, IEA, CARMA, Estimates
Hydro is the largest contributor and is expected to oontribute around 250TWh by 2020, followed
by Nuclear with 120 TWh by 2020.
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Wind and Biomass are expected to be the largest contributor to the renewable contribution.
4.3 South East Asia
2010 2020
Generat Generat
ion Renewa ion Renewa
(TWh) Thermal Nuclear Hydro ble (TWh) Thermal Nuclear Hydro ble
Indonesia 180 155 0 15 11 290 253 0 21 16
Malaysia 110 90 0 13 7 150 115 0 27 8
Philippines 70 44 0 10 16 115 76 0 17 22
Thailand 170 159 0 7 4 260 245 0 10 5
South East
Asia 530 447 0 45 38 815 689 0 74 52
Source: EIA, IEA, CARMA, Estimates
The largest contributor for South East Asia is Hydro with 75 TWh by 2020, contributing around
9% of the total power generation contribution.
Renewables are expected to contribute around 6.5% of the total power generation, mainly driven
by Biomass and Geothermal. This is a higher contribution than North Asia countries.
4.4 Pacific
2010 2020
Generat Generat
ion Renewa ion Renewa
(TWh) Thermal Nuclear Hydro ble (TWh) Thermal Nuclear Hydro ble
Australia 276 250 0 17 9 306 275 0 18 15
New
Zealand 45 12 0 21 12 50 13 0 19 18
Pacific 321 263 0 38 21 356 288 0 37 33
Source: EIA, IEA, CARMA, Estimates
The largest contributor for Pacific is Hydro with 37 TWh by 2020, contributing around 10% of the
total power generation contribution.
Renewables are expeted to contribute around 9% of the total power generation, mainly driven by
Wind and Geothermal.
Australia is a leader in Wave and Geothermal Technologies
4.5 Key Clean Technology Sectors
Based on the country review, key sectors for CleanTechnology in APR include:
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• Hydro – which accounts for around 14% of the total power generation
• Nuclear - which accounts for around 8-9% of the total power generation
• Renewable Energy will grow from around 2.5% to 4% by 2030, mainly driven by growth in
the Wind, Solar, Biomass and Geothermal sectors.
Other key technologies that will have a large impact on power generation include CCS, Smart
Grid, Landfill Gas and Biogas. CCS alone, could account for 1125 projects and 850GW by 2050.
IEA CCS Projects in Power Generation
Region No. Projects in CCS Capacity Captured 2020 No. Projects in CCS Capacity Captured 2050
2020 in 2020 (GW) (Mt CO2/year) 2050 in 2050 (GW) (Mt CO2/year)
OECD Pacific 2 1.3 9 150 85 510
China & India 6 2.5 13 465 365 1785
Non-OECD 4 1.6 6 610 400 1725
World Total 38 22 131 1670 1140 5510
Source: IEA
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PART B – CLEAN TECHNOLOGY SECTOR REVIEW
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5 ENERGY SECTOR OVERVIEW
5.1 Market Map of Clean Technology
There are many different definitions of Clean Technology and the term is loosely applied to a
number of fragmented technologies that will either replace existing supply of fossil fuels or use
energy more efficiently.
The Handbook has broken down the content into a “Market Map” with 4 main sectors:
• Energy Supply
• Energy Usage
• Other Pollutants (waste and water)
• Services
Each sector is then broken down into smaller sub-sectors. We will use this fragmented Market
Map and overlay it onto a diverse set of countries that make up APR and attempt to construct a
country profile and highlight particular ‘hot spots’ for a country. Detailed company profiles are
provided in the Appendix.
In addition, this allows a user to take a sector look across APR and compare say - Geothermal in
Australia, Indonesia, Japan and Philippines. Please contact the author for further updates.
Figure 5.1 – Asia Pacific Clean Tech Market Map
International Policy and Regulation
Government Policy and Regulation
Energy Supply Energy Usage Other Pollutants Support
Sectors
Power
Renewable Conventional
Generation Building Industry Transportation Water Waste Services
Energy Energy
Distribution
Private
Wind Generation Coal Design Design Road Extraction Collection
Sector Funding
Private
Solar Distribution Gas Materials Materials Rail Treatment Recycling
Sector Services
Energy from Government
Biofuel Storage Oil Efficiency Efficiency Air Distribution
Waste Agency
Sub Sectors
Demand
Biomass Nuclear Water Usage Treatment Universities
Management
Marine Hydrogen Storage Wastewater Disposal
Geothermal Covered in report
Not covered in report
Hydro Services & Support
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5.2 Energy Supply
5.2.1 Renewable Energy
5.2.1.1 Wind
Wind is the largest sector in the renewable technology space in APR and continues to lead the
way in terms of installed capacity. Breakdown of the wind sector is broken down as:
Wind Turbines
• Offgrid / <1 MW / Horizontal – Horizontal wind turbine with under 1 MW capacity that
generates electricity to be used locally and does not require connection to the power grid
• Offgrid / <1 MW / Vertical – Vertical wind turbine with under 1 MW capacity that generates
electricity to be used locally and does not require connection to the power grid
• Ongrid / 1-3 MW / Onshore – Horizontal wind turbine with capacity between 1 and 3 MW that
is located onshore and feeds the generated electricity onto the power grid
• Ongrid / >3 MW / Onshore – Horizontal wind turbine with capacity over 3 MW that is located
onshore and feeds the generated electricity onto the power grid
• Ongrid / >3 MW / Offshore – Horizontal wind turbine with capacity over 3 MW that is located
offshore and feeds the generated electricity onto the power grid
The supply chain can be broken down into: Gearbox; Blades; Components; and Operators.
For an update on the Wind Sector in Asia Pacific, see Section 6.1.
5.2.1.2 Solar
The solar sector covers all technologies related to the capture energy from the sun. These
include direct production of electricity using semiconductor-based photovoltaic (PV) materials,
use of concentrated sunlight to heat fluid to drive power generation equipment, and passive
methods which use solar to replace fossil fuel energy, such as heat water. The photovoltaic
sector, along with the wind sector is the largest of the renewable sector in terms of investment
and installed capacity.
Photo Voltaic (PV)
The PV Solar supply chain can be broken down into:
• Feedstock
• Wafer
• Cell & Module Manufacturers
• Equipment Manufacturers
There is a move into Thin Film PV to commercialize new technology, which includes:
• Amorphous Silicon Thin Film Photovoltaic Cell (a-Si PV) – Type of thin film solar cell
based on amorphous silicon chemical compound
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• Building Integrated Photovoltaic (BIPV) – Application of solar photovoltaic materials,
whether crystalline or thin film, into actual building structures, normally replacing conventional
building materials in parts of the building envelope such as the roof, skylights or facades
• Cadmium Telluride Thin Film Photovoltaic Cell (CdTe PV) – Type of thin film solar cell
based on cadmium telluride chemical compound
• CIGS Thin Film Photovoltaic Cell (CIGS PV) – Type of thin film solar cell based on copper
iridium gallium selenide chemical compound
• Crystalline Silicon Photovoltaic Cell (cSi PV) – Type of solar cell made from a single
crystal or a polycrystalline slice of silicon that was the first type to be widely commercialized
Solar Concentrator
The solar concentrator market is concentrated in Australia and in some parts of China. It is much
smaller than the PV solar market in APR. Key technologies include:
• Concentrating Photovoltaic (CPV) - Device that concentrates sunlight onto photovoltaic
surfaces to produce electricity.
• Fresnel Mirror – Solar thermal energy collector that consists of a series of long, narrow,
slightly curved mirrors that focus the light onto linear receivers positioned above the mirrors to
be eventually converted into electricity.
• Parabolic Dish Stirling Engine – Device that concentrates sunlight at a single focal point via
a parabolic dish to produce electricity and that can track the sun along two axes by
automatically adjusting the direction of the dish.
• Parabolic Trough – Solar thermal energy collector that consists of a long parabolic mirror
and a Dewar tube running its length at the focal point that absorbs energy from the sunlight
which is converted into electricity.
• Power Towers – Type of solar power plant that uses a tower and a high heat capacity
component to receive the sunlight focused by an array of flat movable mirrors and convert it
into electricity.
Solar Water Heater (SWH)
Solar water heaters are a system which heats water by absorbing energy from sunlight. It
normally consists of solar thermal collectors, fluid systems to transport the heat and a water tank,
where water is heated and stored. China is the global market leader and accounts for two thirds
of global manufacturing.
Solar from Space
While outlandish, there are plans to place PV Solar panels in space. Solar in space benefits from
not being affected by weather, while also being able to be positioned so it can generate power 24
hours a day. The two notable issues will be the cost of sending payloads up into space and the
transmission of microwaves to land based receivers. A key player in this area is Japan.
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For an update on the Solar Sector in Asia Pacific, see Section 6.2.
5.2.1.3 Biofuel
Liquid transportation fuels including biodiesel and bioethanol. These can be derived from a
range of biomass sources, including palm oil, sugar cane, soybean oil, algae or jaltropha.
Biofuel production varies from country to country, with Biodiesel generated from Palm Oil
dominating in Malaysia and Indonesia.
• Palm Oil Biodiesel – Biodiesel produced from Palm Oil. This market is concentrated
primarily in Malaysia and Indonesia and is contentious, due to its association with the clearing
of tropical rainforests
• Jatropha Diesel – Biodiesel produced from jatropha crop and can grow on poor soil.
However, takes years to produce first crop.
• Mircoalgae Diesel – Diesel produced from microalgae, which are photosynthetic organisms
that can be farmed in water.
• Cassava Bioethanol – Bioethanol produced from cassava crop.
• Cellulosic Bioethanol – Bioethanol produced from wood, grasses or other plants.
• Sweet Sorghum Bioethanol – Bioethanol produced from sweet sorgum crop.
• Waste Vegetable Oil Biodiesel – Biodiesel produced from waste vegetable oil.
For an update on the Biofuels sector in Asia Pacific, see Section 6.3.
5.2.1.4 Biomass
Production and consumption of solid and gaseous fuels derived from biomass. Solid biomass
for the energy sector can include a number of specially-grown crops, such as switch grass and
wood pellets, but it can also consist of crop residues. Biomass is a key sector in APR, with a
consistent feedstock and is being used as an alternative feedstock for developers, generators
and utilities in countries, such as Indonesia.
For an update on the Biomass sector in APR, see Section 6.4.
5.2.1.5 Hydro
Hydro power is one of leading renewable sources of power in Asia Pacific. Plants can generally
be divided into three different categories depending on the type of head and the nature of the
plant. There has been a rush of micro hydro projects in Asia, driven by CDM projects.
• High-head power plants are the most common and generally include a dam to store
water at a higher elevation. These systems are commonly used in mountainous areas.
• Low-head hydroelectric plants generally use heads up to a few metres in elevation or
simply function on the run of the river. Low-head systems are typically built along rivers.
• Multipurpose hydro power systems are generating facilities where the hydro power is
subordinate to other activities like irrigation, industrial processes, drinking water supply or
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wastewater disposal. Electricity production is thus not the only objective of the plant but
often a useful by-product.
For an update on the Hydro sector in Asia Pacific, see Section 6.5.
5.2.1.6 Wave/Tidal
The Wave/Tidal sector covers all technologies relating to extraction of energy from the sea and
tidal flows. Possibilities include waves and tide, either via tidal barrages or tidal flow generators.
Unlike Solar or Wind, there appears to be no leading technology and a number of different
technologies are emerging that fall into three main categories: oscillating columns; oscillating
bodies; and overtopping technologies. There seems to be less government funding and backing
for this sector in APR, even though the potential natural resources appear to be huge.
For an update on the Wave/Tidal sector in Asia Pacific, see Section 6.6.
5.2.1.7 Geothermal
Geothermal power has long played a part in the energy mix of countries along the “Ring of Fire”,
such as Philippines, Indonesia and Japan. Three power plant technologies are being used to
convert hydrothermal fluids to electricity. The type of conversion depends on the state of the fluid
(steam or water) and on its temperature:
• Dry steam power plants use hydrothermal fluids primarily in the form of steam. The steam
goes directly to a turbine, which drives a generator that produces electricity. This is the oldest
type of geothermal power plant.
• Flash steam power plants use hydrothermal fluids above 175°C. The fluid is sprayed into a
tank (separator) held at a much lower pressure than the fluid, causing some of the fluid to
vaporise rapidly, or “flash” to steam. The steam then drives a turbine.
• Binary-cycle power plants use hot geothermal fluid (below 175°C) and a secondary (hence,
“binary”) fluid with a much lower boiling point than water – both passing through a heat
exchanger. Heat from the geothermal fluid causes the secondary fluid to flash to steam, which
then drives the turbines.
For an update on the Geothermal sector in Asia Pacific, see Section 6.7.
5.2.2 Power Generation and Distribution
Generation
This sector covers technologies that result in a technological improvement in the generating
efficiency of existing power generation equipment. Technologies include motor or generator
design, as well as software, sensor and control technologies.
Distribution
As power supply (generated via renewable sources) become more variable the importance of
reducing grid losses becomes higher with higher power costs, so the significance of improving
power distribution will grow. This sector includes a number of technologies that target such
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improvement, from the forecasting of renewable resource availability, through software to
balance supply and demand or find grid faults, to technology that allows peak shifting or
intelligent meter reading.
Storage
Many renewable energy and emerging energy technologies are either intermittent, or have
responses that are unable to follow the dynamic demands that will be put on them when
deployed. Batteries and other energy storage technologies become important for any shift to
these technologies. Leading storage technologies include:
• NaS Battery – Sodium-sulphur battery with high energy density and high efficiency of
charge/discharge that requires high operating temperatures.
• Vanadium Redox Battery – Flow battery with deep cycling life that can be mechanically
refueled and has low negative environmental impact.
Smart Grid
This a sector that is gaining favour with venture capitalists and investors, as countries look to
upgrade their grid infrastructure to cater for decentralised power generation from multiple
sources. Key technologies include:
• Advanced Metering Infrastructure (AMI) – Integrated system that measures, collects,
stores and analyzes utility usage, such as electricity, gas or water usage; is a broader
concept than AMR-IP based solution.
• Digital Substation – Automated and computerized substation that provides greater
transparency, higher reliability and efficiency of operations.
• IP-Based Automatic Meter Reading (AMR) – Solutions that automatically gather data from
energy metering devices and transmit to a central processing facility where billing is handled
and consumption patterns are analysed.
• Real-Time Information Processing – Solutions that enable real time communication
between core nodes in the electric network, including customer premise, and allow better
management of demand, improved reliabiliity and flexibility of the network.
• Wide Area Management System (WAMS) – Integrated system that monitors and controls
elements of the electrical power grid to ensure availability and improve reliability and
efficiency of the network.
For an update on the Smart Grid sector in Asia Pacific, see Section 6.8.
5.2.3 Conventional Energy
Coal
Cleaner coal includes solutions such as Coal Screening and Scrubbing, Integrated
Gasification Combined Cycle (IGCC) and Carbon Capture and Sequestration (CCS).
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For an update on the CCS sector in Asia Pacific, see Section 6.9.
Gas
Cleaner gas consists of solutions such as Capture and Use of Coal Mine Ventillation Air
Methane and Natural Gas Combined Cycle (NGCC).
Oil
Cleaner oil is made up of solutions such as Efficient Oil Extraction, Water Reinjection and
Optimized Reservoir Management that allows oil to be extracted in ways which minimize
negative impact on the natural environment.
Nuclear
Nuclear power is energy derived via controlled nuclear fission of radioactive materials at nuclear
power plants. While not renewable, it is currently the only non fossil fuels available to replace
fossil fuel baseload power generation. This section also looks at the advances in new reactor
design and new materials required to build the next generation of reactors.
For an update on the nuclear sector in Asia Pacific, see Section 6.10.
5.3 Energy Usage
5.3.1 Building (Residential and Commercial)
Green Buildings covers planning, building and operating solutions that are more sustainable,
efficient than existing buildings. This includes retrofitting existing buildings.
Design
Integrated Design such as LEED accreditation can lead to significant energy savings and
efficiency gains.
Materials
Improvements in materials such as: insulation, double glazing and building material will lead to
more efficiency gains in trapping heat in winter and cooling in summer.
Efficiency
Improvement is energy and water efficiency in the residential and commercial building. This will
include energy efficiency in air conditioning coolers.
• Green Devices – Electronic devices used inside buildings, including lighting solutions,
appliances and consumer electronics that are more energy efficient than conventional
alternatives. This section overlaps and integrates into the Smart Grid section.
• Smart Buildings – Buildings that rely on integrated IT-based resource use measurement and
monitoring, intelligent analysis of the internal environmental and performance data, and
automation of connected building systems.
• Advanced Envelope – Includes insulation, windows, roofing and other passive solutions
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• Building-Integrated Heat and Power – Combination of heating and power generation
solutions that could be integrated into a building, such as solar photovoltaic cells, wind
turbines and solar water heaters.
5.3.2 Industry
This section covers planning, building and operating solutions which are more sustainable and
efficient than existing industrial processes.
Design
Integrated Design for industrial processes in industries, such as manufacturing, refining, which
can lead to significant energy savings and efficiency gains.
Materials
Improvements in materials in industrial processes that will lead to more efficiency gains.
Efficiency
Improvement is energy and water efficiency in industrial processes.
5.3.3 Transportation
Road
Cleaner road transportation includes more efficient engines, alternative vehicle energy systems,
as well as comprehensive road network planning and development.
Rail
Cleaner rail transportation refers to energy efficient trains, electrification of railways and
Optimized Railway Operations Management.
Air
Cleaner air transportation includes Fuel Efficient Aircraft, well planned and constructed airport
infrastructure and Optimized Air Traffic Management.
Water
Cleaner waterway transportation covers Fuel Efficient Ships, well planned and constructed
waterway infrastructure and Optimized Water Traffic Management.
Storage – Hydrogen, Fuel Cells, Batteries
This sector includes hydrogen from the production, storage and trasportation of hydrogen, as
well as the applications in which it can be used. Fuel cells can burn a variety of hydrocarbon
fuels. Batteries are an important component for transportation, particularly for road.
5.4 Other Pollutants
5.4.1 Wastewater
The Wastewater sector will focus on wasterwater treatment and biogas. However technologies
include:
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• Extraction Solutions - Solutions that help locate, access and extract water from
underground sources.
• Desalination - Process that removes salt and other minerals from saline water, such as sea
water, in order to make it suitable for human consumption or irrigation.
• Secondary Treatment Solutions - Solutions that substantially remove the biological content
of sewage, including derivates of human waste, food waste, soaps and detergent.
• Sludge Treatment and Disposal - Solutions including dewatering, landfill storage and
fertilizer conversion that treat sludge generated from wastewater treatment to remove usable
substances and properly dispose of residual wastes.
• Tertiary Treatment Solutions - Solutions that provide a final treatment to raise the effluent
quality of the water before it is discharged into the receiving environment.
• Improved Irrigation - Irrigation solutions such as sprinkler or drip irrigation that use water
more efficiently than China’s conventional irrigation methods with equal or greater benefit to
the user.
• Low-Flow Fixtures - Faucets and other water use systems that use less water that
conventional systems but deliver the same or greater benefit to the user.
For an update on the Wastewater sector in Asia Pacific, see Section 6.11
5.5 Waste
Waste management services including collection, recycling, energy from waste (including landfill
gas and incineration), treatment and disposal. The focus will be on waste to energy technologies,
primarily incineration and landfill gas.
For an update on the Waste sector in Asia Pacific, see Section 6.12
5.6 Service & Support
5.6.1 Private Sector Funding
This includes Venture Capital Funds, Private Equity and Capital Markets. Asian financial capital
markets are still quite nascent compared with their western counterparts.
5.6.2 Private Sector Services & Support
The rapid growth of the clean energy industry will require the development of a complete sector of
service companies dedicated to serving the needs of technology and equipment suppliers,
owners of renewable energy and biofuels assets, and so on. In this sector we put providers of
information and research, specialised clean energy financial services companies and consultants.
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5.6.3 Government Agencies
Government and quasi government agencies that support, sponsor and subsidize Clean
Technology.
5.6.4 Universities
Research and Development and Incubators set up for Clean Technology.
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6 ENERGY SECTOR, BY COUNTRY
6.1 Wind
6.1.1 Background
China became the world’s largest market for wind in 2009, with total capacity of nearly 26GW.
The 2020 target for wind in China is expected to be raised from 30 GW to around 120GW. In
2008, wind provided less than 1% of China’s total electricity needs, but will form a key part of
China’s push to produce 20% power from renewables by 2020.
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Total Installed capacity (MW)
Year 2005 2006 2007 2008 2009 2010T 2020T
China 1,260 2,599 5,910 12,210 25,777 30,000 120,000
Japan 1,049 1,309 1,538 1,880 2,000 3,000
South Korea 119 176 192 278 300 2,250 29 8,000
Taiwan 103,7 187,7 279,9 358 360 2,159 3,000 30
India 4430 6270 7850 9587 10,926
Indonesia 0.8 0.8 1 1.2 2 970 31
Philippines 25.2 25.2 25.2 25.2 30
Australia 708 817 824 1,306 1,400
NZ 168 171 322 326 350
Source: GWEC, IEA, Govt Publications, Estimates
6.1.2 Targets & Incentives
China and India have the greatest installed capacity in APR. Japan is a notable laggard and is
expected to fail to meet its 2010 target of 3 GW.
• China has put in place an aggressive renewable plan with increased its target for Wind Power
by 2020. It has also highlighted wind, as a strategic sector to receive funding from the ‘made
in China’ fiscal stimulus in 2009 and encouraged cheap financing to build up its domestic
industry.
• India followed China, in its bid to set ambitious renewable targets, in a bid to build up its
domestic industry.
6.1.3 Wind Supply Chain
The wind supply chain can be broken down into turbines, blades, gearbox, components and
operators.
The Europeans have traditionally dominated the wind manufacturing sector, with Vestas the
global market leader. However, China has aggressively increased the number of manufacturers
and encouraged loans and investments in this space. There are around 70 manufacturers in
China alone which account for the oversupply in the wind sector.
29
2012 Target, IEA
30
2025 Government Target
31
2025 Government Target
Asia Pacific Clean Tech Handbook 125 of 348 31-May-10
Figure 6.2 – Wind Supply
Blades Gearbox Turbines Components Operators
China Tianjin CHST, Goldwind, Wafangdian China Wind
Xinmao, Chongqing, Sinovel, Power,
Japan MHI, Fuji Komai Tekko Japan Wind
Heavy Farm
S Korea Hyundai, Hyundai, Hyundai, Hyunjin Unison
Daewoo, Daewoo, Daewoo, Materials,
Taiwan Formosa TECO China Steel Taipower
Heavy Electric Machinery
India Suzlon Suzlon Suzlon, RRB Suzlon India Energy,
ITC
Australia Infigen
Source: Company Reports, Thomson Reuters
6.1.4 Research & Development
GE, Mitsubishi Electric <6503.T> and Enercon have been the traditional leaders in the wind
sector with a number of patents filed. However, Mitsubishi Electric appears to be placing less
emphasis in this sector. Enercon (Aloys Wobben) is a maturing small company that was a
technology founder, but it has relatively few new inventions. Among smaller entities, the recent
entrants are perhaps unexpected, emphasizing the utility of segmentation to find technical niches
that ordinarily might be overlooked. Vestas Wind Systems is in litigation regarding its activity in
this field. The academic-government entities at the top of the list show how heavily Chinese
universities are invested in technology development.
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%
LARGER PRESENCE IN FIELD 06-08 97-08 RECE
NT
SHANGHAI JIUNENG ENERGY SCI & TECHNOLOGY 26 27 96
NTN CORP 42 45 93
GENERAL ELECTRIC CO 125 176 71
REPOWER SYSTEMS AG 52 75 69
NORDEX ENERGY GMBH 27 39 69
MATSUSHITA ELECTRIC WORKS LTD 26 50 52
FUJI HEAVY IND LTD 17 42 40
SIEMENS AG 18 53 34
HITACHI LTD 24 73 33
DAIWA HOUSE KOGYO KK 7 30 23
AERODYN ENG GMBH 5 36 14
MITSUBISHI ELECTRIC CORP 18 136 13
EBARA CORP 3 36 8
ENERCON - ALOYS WOBBEN 6 125 5
Source: Thomson Reuters Scientific
%
SMALLER PRESENCE IN FIELD 06-08 97-08 RECE
NT
DAUBNER & STOMMEL GBR BAUWERK-PLANUNG 10 10 100
WUJIANG FANGXIA ENTERPRISE INFORMATION CO 10 10 100
TAIHEIYO CEMENT CORP 9 11 82
KANZAKI KOKYUKOKI MFG CO LTD 6 10 60
CLIPPER WINDPOWER TECHNOLOGY INC 5 10 50
YANMAR DIESEL ENGINE CO 5 10 50
SKF AB 5 15 33
FJC KK 4 14 29
ZEPHAR KK 4 15 27
KANSAI DENRYOKU KK 2 10 20
SHISUTECH KK 1 12 8
VESTAS WIND SYSTEMS AS 1 18 6
TACKE WINDENERGIE GMBH 0 12 0
Source: Thomson Reuters Scientific
Asia Pacific Clean Tech Handbook 127 of 348 31-May-10
%
ACADEMIC - GOVERNMENT 06-08 97-08 RECEN
T
UNIV NANJING AERONAUTICS & ASTRONAUTICS 8 8 100
UNIV HEBEI AGRIC 5 5 100
UNIV HUAZHONG SCI & TECHNOLOGY 5 5 100
UNIV KANSAI 4 4 100
UNIV XIAN TECHNOLOGY 4 4 100
UNIV ZHEJIANG 4 4 100
CHINESE ACAD SCI ELECTRICAL ENG INSTITUTE 3 3 100
UNIV SHANGHAI JIAOTONG 25 29 86
UNIV SOUTHEAST (CN) 4 5 80
UNIV TOKAI GH 3 6 50
GH CHIKOJI GAKUEN 1 3 33
ENERGIE-UMWELT-BERATUNG EV INSTITUT 0 7 0
Source: Thomson Reuters Scientific
6.1.5 China
Market Size & Growth
China leads the way in wind generation capacity and is now the second largest market, after the
US in 2009.
In 2008, the newly-established National Energy Administration (NEA) highlighted wind energy
as a priority for diversifying China’s energy mix. It selected six locations with the best wind
resources: Xinjiang, Inner Mongolia, Gansu, Hebei and Jiangsu. Each site will have more than 10
GW of installed capacity by 2020, known as the ‘10 GW Size Wind Base Program’. The Wind
Base projects will ensure more than 100 GW of installed capacity by 2020 and help in reaching
the government’s National Mid and Long-Term Development Plan of 3% non-hydro renewable
electricity production by 2020.
In addition, Wind was targeted as a strategic industrial sector in 2009 and due to a combination of
government policy, financial incentives and access to cheap credit, this led to the establishment
of 70-80 local providers 32. By mid 2009, there was a concern of oversupply in the domestic
market, combined with flagging demand in the European markets.
32
China Wind Energy Association
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European manufacturers have complained that the bidding process for local contracts is opaque,
claiming lopsided order wins from national concession projects.
Along with government policy, the Clean Development Mechanism (CDM) provides a further
incentive to wind energy development in China.
Drivers & Constraints
A constraint on the growth of renewable power is the ability of China’s grid system to cope and
incorporate wind generated electricity. This rapid growth of installed power is far ahead of the
national plan, and the grid connection which is still run by the Government, will be a constraining
factor in the further expansion of wind power.
Market Players & Competition
At the end of 2009, there were over 70 manufacturer operating in China. However, the top three
manufacturers in China: Goldwind, Sinovel and DEC (Dongfeng Electric), dominate the market
with an annual manufacturing capacity of 4 GW, while the international companies in China
(Vestas, Suzlon, GE, Gamesa, Nordex and Repower) have similar capacity. This has already led
to intense price competition and charges by the EU Chamber of Commerce in China that the new
government projects favour domestic manufacturers. A summary of key domestic players are
provided below:
Turbine Manufacturers
• Xinjiang Goldwind <002202.SZ> - Goldwind is a leading wind turbine manufacturer in China,
and develops, constructs and operates wind farms. It supplies various kinds of wind turbines
ranging from 600KW to 1.5MW, and has 2.5MW, 3MW and 5MW class wind turbines in R&D.
The company acquired a 70% stake of Vensys Energy, significantly enhancing its R&D
capability and establishing a solid foundation for overseas expansion. For a detailed company
profile, see Appendix A.
• Dongfang Electric <1072.HK, 600875.SS> is one of the leaders in power generation
equipment, ranging from thermal, wind, hydro and nuclear power generation. It entered the
wind power industry in 2004 by purchasing the user rights of turbine design for 1.5MW wind
turbine from Repower and is developing 2MW, 2.5MW and 3MW class turbines. Dongfang
Electric is the most vertically integrated domestic wind turbine manufacturer. For a detailed
company profile, see Appendix A.
• Shanghai Electric <2727.HK, 601727.SS> launched its wind turbine business in early 2006
by purchasing 1.25MW turbine technology from Dewind. To date, it has produced small
quantities of a 2MW direct drive turbine that it jointly designed with Aerodyn. It also has a
3.6MW offshore wind turbine at the R&D stage. In 2008, Shanghai Electric installed
178.75MW of turbines, accounting for 2.86% of the newly-increased wind power capacity in
China. The company plans to achieve annual capacity of 100 units, 800 units and 180 units of
1.25MW, 2MW, and 3.6MW, respectively, in 2012. For a detailed company profile, see
Appendix A.
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• Huayi Electric Apparatus <600290.SS> primarily produces high-voltage apparatus and
diversified into the wind power space in 2002. It has independently developed 780kW class
turbines, using Aerodyn’s wind turbine technology and has jointly developed 1.5MW wind
turbines. Furthermore, The R&D of 2.0MW/3.0MW wind turbines is underway. By 2010, the
company aims to achieve capacity of 750MW.
• Xiangdian Electric <600416.SS> produces a broad range of wind turbine generators, and it
made China’s first 1300KW wind turbine in 2005. In 2006, together with Japan’s Harakosan
Xiangdian Electric, established Hara Xiangdian Windpower, which has the capacity to
produce 300 units of 2MW direct-drive turbines in 2009.
• Sinovel <Unlisted> is a subsidiary of Dalian Heavy Industry Group focused on developing,
engineering and marketing wind power generator equipment, with factories in Dalian, Inner
Mongolia and Jiangsu. Its main product is a 1.5MW turbine, the technology license for which it
purchased from Fuhrlander, and has 2MW/3MW/5MW class turbines at the R&D stage. The
company aims to produce 2000 units of 1.5MW turbines and 100 units of 3MW offshore
turbines in 2009. In 2008, Sinovel delivered 1402.4MW in turbines, becoming the No.1
manufacturer in China in terms of newly increased capacity that year.
• Zhejiang Windey <Unlisted> After purchasing the licence for 750KW class turbine production
technology from Repower, Zhejiang Windey (Windey) started production in 2003. It is now
producing an 800KW turbine with its own intellectual property, which it has exported to
Thailand, and has begun small batch production of a 1.5MW class turbine. The company
plans to achieve annual capacity of more than 2000MW in 2012. Windey is also developing a
2.5MW class turbine with technical support from Garrad Hassan.
• Guangdong Mingyang <Unlisted> In 2006 Guangdong Mingyang (Mingyang) began
cooperation with Aerodyn, with 1.5MW and 2.5MW turbines under batch production and a
‘Super Compact Drive’ offshore turbine at the sample phase. In January 2009, it signed a joint
venture program of manufacturing wind turbine conversions with IDS. This made Mingyang
the only domestic manufacturer with the core control technology of a 1.5MW turbine.
Mingyang is aiming to build its in-house production of key components and developing
offshore turbines. According to the company the capacity could reach 2850MW when all the
manufacturing bases are built up.
• Jiangsu New Unite <Unlisted> Jiangsu New Unite was co-founded by Changqian Group and
HongKong New Unite group in 2007, to focus on developing, manufacturing and marketing
wind turbines in China. It has obtained a technology license of 1.5MW turbine from Shenyang
Industrial University, and begun batch production. It is manufacturing a 2MW direct-drive
turbine on a small scale and designing a 3MW turbine. The company expects the capacity to
be 700-800 units of turbine and 2000 pieces of blades in 2011.
• Chongqing Haizhuang <Unlisted> Chongqing Haizhuang, a subsidiary of China Shipping
Industry Corporation, entered the wind power industry in 2007. It obtained a technology
license from Frisia to produce 850KW turbines, and jointly designed a 2MW turbine with
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Aerodyn. It is also working on 5MW offshore turbine. The company has annual capacity of
1000MW turbines.
Gearbox
• China High Speed Transmission <0658.HK> - China High Speed Transmission Equipment
is a leading mechanical transmission equipment producer in China with a history dating back
to 1969. It is a major supplier of mechanical transmission equipment for wind turbines in
China. As well as wind power generation, it also produces equipment for marine vessels, rail
transport, aerospace, metallurgy, petrochemicals, construction and mining. The wind gear
transmission equipment sector was a major revenue contributor and key revenue driver in
2008. In 2007, China High Speed Transmission was listed on the Hong Kong Stock Exchange.
For a detailed company profile, see Appendix A.
• Chongqing Gearbox <Unlisted> Chongqing Gearbox, a subsidiary of China Shipping
Industry Corp, specializes in developing and manufacturing gearboxes for ships and wind
turbines, couplings, dampers, and reducers. Its wind gearboxes range from 600KW to 2MW
with annual capacity of 1000 sets currently. In January 2009, the company started
construction of wind gear project, which it has indicated will be put into operation in 2011.
• Hangzhou Advance Gearbox <Unlisted> Hangzhou Advance Gearbox specialises in
designing and manufacturing transmission and powder metallurgical products. It has
developed wind turbine gearboxes for 275KW, 280KW, 634KW, 645KW, 880KW, 1660KW
turbines. In June 2009, the company started construction of wind gear manufacturing base
with annual capacity of 1,000 sets.
Blade Manufacturers
• Zhonghang Huiteng <Unlisted> Zhonghang Huiteng mainly develops and manufactures
wind turbine blades and related glass fibre product components. It has developed and
marketed a wide range of blades from 600KW to 3MW, with annual production capacity of
1000 600KW sets, 2400 750KW sets, 2000 1.5MW sets and 500 other MW sets. Its
customers are major wind turbine manufacturers domestically and globally. For a detailed
company profile, see Appendix A.
• China National Building Material <3323.HK> - China Composites Group is a subsidiary of
China National Building Material (CNBM), which is mainly engaged in cement, lightweight
building materials, glass fibre and products and engineering services. In 2007, it acquired NOI
German and set up overseas company SINOI for capacity expansion and technology
sourcing of wind turbine blades. The main blades produced by CNBM are 1.5MW and 2MW
with a total annual capacity of 5000 pieces.
• Sinoma Science &Technology <002080.SZ> - Sinoma Science & Technology is involved in
the research, design, manufacture and sale of specialty fibre composites in China, entered
the wind blade business in 2006. Currently, the company can produce wind blades for 750KW,
850KW, 1.5MW and 2MW turbines, and believes it will be able to produce 1300 sets per year
after completion of MW blade projects in late 2009.
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Main Shaft Bearings
• Wafangdian Bearing <200706.SZ> - Wafangdian Bearing is a leading bearing manufacturer
in China. Its main products are industrial bearings, CV joints and precision ball screws, which
are widely applied in transport, metallurgy, mining, and general machinery, petrol, and electric
power. The company launched R&D on wind turbine bearings in 2006, and has developed full
sets of bearings for wind turbines, including main shaft bearings. It has begun to produce
main shaft bearings for wind turbines from 750KW to 3MW in batches while it has bearings for
5MW is at the R&D stage. In late 2009, the company expected to reach annual capacity of
6000 sets main shaft bearings.
6.1.6 Japan
Market Size & Growth
Japan’s wind energy industry has grown in recent years, partly spurred by a government
requirement for electricity companies to source an increasing percentage of their supply from
renewables, as part of the new government’s mandate to reduce emissions by 25% by 2020.
Development has also been encouraged by the introduction of market incentives, both in terms of
the price paid for the output from renewable plants and in the form of capital grants towards clean
energy projects. Power purchase agreements for renewables also have a relatively long lifespan
of 15 to 17 years, which helps to encourage investor confidence. The result has been an increase
in Japan’s installed capacity from 136 MW at the end of 2000 to 1,880 MW at the end of 2008. In
2008, 346 MW of new wind capacity was added in Japan. However, Japan trails behind both
China and India, in terms of wind power installed.
Drivers & Constraints
Japan has a target to reduce the level of its greenhouse gas emissions by 6%, compared with
1990 levels, in the period from 2008 to 2012; and now further has increased it reduction target to
25% by 2020. The official government target for wind power in Japan by 2010 is 3,000 MW but is
unlikely to reach that target. The Japanese government introduced a Renewable Portfolio
Standard (RPS) law in April 2003 with the aim of stimulating renewable energy to provide
12.2TWh (1.35%) of total electricity supply in 2010. RPS targets will be reviewed every four years,
and a new target of 16.0 TWh (1.63%) by 2014 was established in 2007. However, the
government has proposed a new renewable target of 20% by 2020.
Growth in the wind sector has been hampered by restrictions imposed by the incumbent utilitility
companies that limit the amount of wind capacity that can be added to the grid, citingissues with
intermittency.
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Restrictions on Wind Power to the Grid
Utility Capacity Restriction %
Tokyo 60GW No restriction n/a
Kansai 37GW No restriction n/a
Chubu 33GW No restriction n/a
Kyushu 19GW 700MW (2006) 3.7%
Tohoku 16GW 520MW (2006) 3.25%
Chugoku 12GW 400MW (2005) 3.3%
Hokuriku 8GW 80MW (2006) 1%
Shikoku 7GW 200MW (2005) 2.9%
Hokkaido 6GW 50MW (2006) <1%
Okinawa 2GW 25MW (2006) 1.2%
Source: Institute for Sustainable Energy Policy
In addition, the restrictions are compounded by grid infrastructure, where leading areas for wind
power in Japan are Tohoku and Hokkaido in the north of the country and Kyushu in the south.
However, the greatest electricity demand is concentrated in the center of Japan, while most
potential wind power sites are located in remote areas where grid capacity is relatively small.
Market Players & Competition
Japan has placed less emphasis on the wind sector and has lost ground to international
competitors, with foreign manufacturers such as Vestas, GE and Enercon dominating the
Japanese market. Unlike the Solar PV market, the lack of ambitious targets and incentives –
reflects the lack of commitment from Japanese industry in this space. This is also highlighted in
the drastic drop in patent fillings by Japanese companies and so, despite its significant offshore
wind energy potential, Japan has so far only developed 11 MW. The government has recently
investigated the feasibility of offshore projects, and offshore wind measurements will start in 2009
under the NEDO project.
Turbine Manufacturers
Japan’s four main wind turbine manufacturers are:
• Mitsubishi Heavy Industries <7011.T> MHI is one of Japan’s largest industrial
manufacturers. It has six divisions, that include: Marine Vessel and Ocean Division;
Machinery and Iron Structure Division; Aviation and Space Division and the Power Engine
Division that includes the development of wind turbines. MHI has developed wind turbines a
varying sizes, ranging from 250kW to 2,400kW and have manufactured more than 2,250 units
globally, mainly the in the US. For a detailed company profile, see Appendix A.
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• Fuji Heavy Industries <7270.T> Fuji Heavy Industries Ltd. is a Japan-based industrial
manufacturing company engaged in four business segments: the Automobile segment;
Industrial Machinery segment; the Aerospace segment; and Others segment, where the wind
power generation systems are located.
• Japan Steel Works <5631.T> JSW’s Wind Power business uses technology from Europe,
has the JSW J82 turbine and have installed over 30 units in Japan.
• Komai Tekko <5915.T> is a Japan-based manufacturing company. The Company operates
in two business segments. The Steel Structure Products segment is engaged in the design,
manufacture and installation of bridges, the construction and maintenance of steel bridges,
the procurement of construction materials, the design, manufacture and erection of iron
frames and iron towers, the design, manufacture and installation of construction and
transportation equipment, the planning, design, construction and management of building
works, as well as the provision of consulting services, among others.
6.1.7 South Korea
Market Size & Growth
Korea has over 600MW of capacity installed by 2009 and is expected to increase significantly,
due to the impetus of the “New Green Deal’ and the proposed wind generation capacity target of
2,250 MW by 2012, with 675MW (30%) allocated to offshore wind.
Drivers & Constraints
South Korea will need to significantly increase its installation of wind capacity, in order to meet its
2012 target. In o2009, the government unveiled a plan to invest KRW 6 trillion (USD4.37 billion)
in the next four years for investment in research and development of renewable energy in 2009.
The aim of the funding is to close the technology gap with advanced countries across different
sectors in the renewable energy space. Under the plan, the government and 73 local companies
will support 15 key sectors to drastically boost domestic know how.
Market Players & Competition
Wind was identified, as one the key sectors for the ‘New Green Deal’, with the country’s major
companies participating.
• Hyundai Heavy Industries <009540.KS> The world's No.1 shipbuilder said in its first-half
report in 2009, that it had chosen renewable energy as its new growth engine and was
investing 105.7 billion won in the wind power business.
• Daewoo Shipbuilding & Marine Engineering <042660.KS> The world's No.2 shipbuilder
announced in August that it would enter the wind power business, hoping its expertise in
offshore plants and vessels would help it in maritime wind power development. It signed a
deal to buy Dewind, a wind power turbine-making unit of U.S. Composite Technology Corp,
for $50 million.
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• Samsung Heavy Industries <010140.KS> The world's No.3 shipbuilder will spend 600 billion
won on wind power generating facilities by 2015, aiming to generate 3 trillion won in revenue
and enter the global top seven makers by that time, according to local media.
• Hyosung <Unlisted> Hyosung's extensive background in development of heavy electrical
equipment has contributed to the development of the Hyosung wind turbine system.
Hyosung's core competence in development and production of gearboxes, generators, power
control systems and other equipment has resulted in the world class, reliable wind turbine.
6.1.8 Taiwan
Market Size & Growth
There is currently around 400MW installed in 2009, mainly by Taipower.
Drivers & Constraints
There is a government target of 3,000 MW (including 1,700 MW of off-shore wind power) for wind
power by 2025 has been set by Ministry of Economic Affairs (MOEA) in 2007.
Market Players & Competition
As part of the Wind Energy Industry Alliance, Taiwan has formed an alliance of domestic
companies to work together to research and develop a domestic industry. The following
companies include:
Turbines
• TECO Electric & Machinery Co <1504.TW> had received GE Energy certification for 750
kW generator, and is working on 1.5 MW and larger generators. Teco is principally engaged
in the manufacture and distribution of heavy electrical equipment and electrical control
products, as well as home appliances and air conditioners.
Equipment
• China Steel Machinery Corporation <Unlisted> is a subsidiary of the China Steel
Corporation. The company manufactures products such as products of Fabrication and
Machining. The company has provided most of tower racks domestically.
Gearbox
• Formosa Heavy Industries Corporation <Unlisted> is a manufacturer / contractor for
petrochemical process equipment and power plant equipment. It also conducted evaluation
during the construction of first wind power system domestically.
6.1.9 India
Market Size & Growth
As with China, India is experiencing a large growth in the wind sector. India added 1,800 MW of
new wind generating capacity in 2008, taking the cumulative figure up to more than 9.6 GW. Wind
power has been concentrated in a few regions, especially the southern state of Tamil Nadu,
which accounts for 44% of India’s total wind capacity. Other states include: Maharashtra, Gujarat,
Asia Pacific Clean Tech Handbook 135 of 348 31-May-10
Rajasthan and Karnataka, West Bengal, Madhya Pradesh and Andhra Pradesh. This will result in
annual capacity addition of up to 2,000 MW in the coming years.
Drivers & Constraints
The Indian government’s stated target is for renewable energy to contribute 4-5% of total power
generation capacity by 2012. This means that renewable energy would need to grow at a faster
rate than traditional power generation, accounting for around 20% of the total added capacity
planned in the 2008-2012 timeframe.
10 out of the 29 Indian states have now implemented quotas for a renewable energy share of up
to 10% and have introduced preferential tariffs for electricity produced from renewable sources.
These states are Kerala, Rajasthan, Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra,
Madhya Pradesh, West Bengal, Gujarat and Haryana. In addition, several states have
implemented fiscal and financial incentives for renewable energy generation, including: energy
buy back schemes and FiTs; preferential grid connection and transportation charges and
electricity tax exemptions.
Market Players & Competition
India has a solid domestic manufacturing base, dominated by Suzlon (accounting for over half of
the market), Vestas Wind Tech and RRB. In addition, international companies have set up
production facilities in India, including Enercon, Repower, Siemens and LM Glasfiber and the new
entrants like ReGen Power Tech, WinWinD, Kenersys and Global Wind Power. India’s new
ambitious renewable plan has stimulated the growth of the domestic manufacturing sector and
companies source more than 80% of the components for their turbines in India.
Turbines
• Suzlon <SUZL.BO>. Suzlon Energy Limited is the fifth largest global wind turbine generators
and India’s largest wind power company. The Company is engaged in the manufacture of
wind turbine generators (WTGs) of various capacities and its components. Its other
operations include sale/sub-lease of land, infrastructure development income, sale of gear
boxes, sale of foundry and forging components, and power generation. It has manufacturing
plants at Daman, Pondichery, Bhuj, Chhadwel (Dhule) and Vadodara. The Company’s
subsidiaries include Hansen Drives Limited, Hansen Drives Pte Limited, Hansen Wind Energy
Drives (China) Co Ltd., PowerBladesGmbH, PowerBlades SA, REpower Australia Pty Ltd.
and REpower Canada Inc. During the fiscal year ended March 31, 2009, the Company
acquired a 37.82% interest in REpower Systems AG. The Company operates in India, Europe,
United States and China. For a detailed company profile, see Appendix A.
6.1.10 Singapore
Market Size & Growth
Due to its small size, Singapore has set itself up as a testbed for companies to set up operations
and export products across the region. It has attracted international companies, such as Vestas,
which is building a manufacturing plant to export across the region.
Asia Pacific Clean Tech Handbook 136 of 348 31-May-10
Drivers & Constraints
Singapore does not have any suitable sites for Wind Power.
Market Players & Competition
• Vestas <VWS.CO> Vestas announced in 2008, the opening of its regional R&D Hub for Asia
in Singapore. It marks the first milestone of the company’s 10-year plan to invest up to S$500
million in Singapore to advance research in wind power technologies.
6.1.11 Indonesia
Market Size & Growth
The market in Indonesia is small, with less than 2MW of installed capacity. The major constraint
is the relatively high cost and intermittency issues for wind power.
Drivers & Constraints
The government has focused its renewable targets on geothermal, small hydro and biomass
projects and therefore wind will not make up a major part of the renewable portfolio mix in
Indonesia. However a target of around 1GW has been proposed by 2025.
Market Players & Competition
The power market in Indonesia is dominated by PLN. There are some small IPP set up to provide
off grid power supply.
3.1.12 Malaysia
Market Size & Growth
The market in Malaysia is small, although there is a government survey underway in East
Malaysia (Sabah) to assess the wind potential.
Drivers & Constraints
Wind power is not a priority in Malaysia, as it is expensive and intermittent, when compared with
biomass and hydro projects.
Market Players & Competition
There are no companies identified in this sector.
3.1.13 Thailand
Market Size & Growth
The wind power market in Thailand is small and estimated to be less than 1MW.
Asia Pacific Clean Tech Handbook 137 of 348 31-May-10
Drivers & Constraints
Wind has been included in the 15 year Renewable Energy Master Plan to increase to 800MW by
2022 which will help drive growth in Thailand.
Market Players & Competition
The Electricity Generation Authority of Thailand (EGAT) responsible for power generation and
transmission. The Metropolitan Electricity Authority (MEA) responsible for distribution in
Bangkok and vicinity and the Provincial Electricity Authority (PEA) responsible for distribution
to the rest of Thailand. Companies involved in providing Wind Power to the grid include:
• National Wind Power Co., Ltd <Unlisted> invested 4.43 billion Baht in producing 70MW
electricity from wind power to supply to The Provincial Electricity Authority. The location of the
plant will be in Sakonnakorn.
• Thai Wind Power Co., Ltd <Unlisted> invested 3.57 billion Baht in producing 50MW
electricity from wind power. The facility will be located in Mukdaharn.
3.1.14 Philippines
Market Size & Growth
There is only an estimated 25MW of installed capacity in the Philippines. However, with the
enactment of the RE Act, and award of new wind project, the market is expected to increase
significantly.
Drivers & Constraints
While the Renewable Energy Act of 2008 (RE Act) put in place a regulatory framework for
renewable energy in the Philippines, renewable energy is still focused on hydro and geothermal.
Market Players & Competition
• Northpoint Wind Power <Unlisted> announced to begin construction on a 40MW wind farm
in Aparri, Cagayan province by 2011. Northpoint Wind Power is a subsidiary of Danish firm
Northwind Power.
• UPC Asia Wind Management <Unlisted> announced it will invest USD 200m to develop a
80MW wind farm in Pagudpud, Ilocos Norte, Philippines. UPC Asia Wind is a unit of UPC
Group, a European wind farm developer.
• Korea East West Power <Unlisted> will invest USD 50m in wind power projects in the
northern provinces of the Philippines. Korea East West Power is a subsidiary of KEPCO.
Asia Pacific Clean Tech Handbook 138 of 348 31-May-10
6.1.12 Australia
Market Size & Growth
Australia is now home to 50 wind farms, with a total capacity of close to 2GW in 2009, with six
projects totalling 555 MW expected to be commissioned in 2009. This increase is driven by the
Renewable Energy Target (RET). Additional wind energy projects that will provide a combined
output of 5 GW have been proposed for development in all states of Australia. Most of these are
either currently applying for, or have received, government planning approvals.
Drivers & Constraints
In 2007 the Australian Government committed to ensuring that 20% of Australia's electricity
supply would come from renewable energy sources by 2020 by establishing the expanded
national RET scheme. The national RET scheme will increase the existing MRET, which was
introduced in 2001 with a target of 9,500 GWh by 2010, by more than four times, to 45,000 GWh
in 2020. The wind sector is included in these targets and currently has the fourth largest installed
capacity in Asia Pacific, after China, India and Japan.
Market Players & Competition
The wind industry has continued its work on the Certified Wind Farms Australia (CWFA)
scheme, developed by the Clean Energy Council. A number of key wind energy companies in
Australia have joined the CWFA, including Pacific Hydro, Roaring 40s, Wind Power and Wind
Prospect. Wind companies on the ASX are:
Operators
• Infigen Energy <IFN.AX> Infigen Energy, formerly Babcock & Brown Wind Partners, is
engaged in renewable energy business, which owns and operates wind farms in Australia, the
Unites States, Germany and France. Infigen’s business comprises interests in 41 wind farms
that have a total installed capacity of approximately 2,246 megawatts (MW) and are
diversified by wind resource, currency, equipment supplier, off-take arrangements, and
regulatory regime. Its subsidiaries include Allegheny Ridge Wind Farm LLC, Aragonne Wind
LLC, Babcock & Brown Cedar Creek LLC, Bluarc Management Group LLC, B&B Blue
Canyon LLC and B&B Caprock LLC. For a detailed company profile, see Appendix A.
• Transfield Services Infrastructure <TSI.AX> The principal activities of the Company
consisted of provision of operations and maintenance, asset management, project and capital
management outsourcing and infrastructure development services, and investment in and
management of Transfield Services Infrastructure Fund. In June 2009, the Company sold two
wind farm developments to AGL Energy Ltd
• WHL Energy <WHN.AX> WHL Energy Limited (WHL), formerly Wind Hydrogen Limited, is
an Australia-based diversified energy company with projects in the United Kingdom and the
Asia Pacific Clean Tech Handbook 139 of 348 31-May-10
United States. The Company focused on developing and commercializing energy assets
including wind energy, solar, biomass and clean fossil fuels
• Viridis Clean Energy Trust I <VIR.AX> Viridis Clean Energy Group (VCEG) is an Australia-
based company. VCEG is engaged in investing in and managing a global portfolio of clean
energy assets. VCEG’s investment focus is on assets that generate electricity or other
consumable energy from renewable, waste or inherently low-emission energy sources,
including wind, hydro, biomass, geothermal, solar, waste fuel, coal seam methane and natural
gas.
6.1.13 New Zealand
Market Size & Growth
New Zealand has nine operating wind farms, with a combined installed capacity of 492.8MW 33
and supplies about 3% of New Zealand’s annual electricity generation. A further 20 projects are in
the process of development and could add over 1,000MW.
Site Developer Project Region RMA application status RMA application
capacity publicly notified
(MW)
Awhitu Genesis 18 Franklin Consented after appeal April 2004
but on hold
Titiokura Unison/Roaring Up to 48 Hastings Consented after appeal April 2005
40s
Hawkes Bay Hawkes Bay Wind Up to 225 Hastings Consented after appeal May 2005
Farm
Taumatatotara Ventus Up to 20 Waikato Consented but on hold
Mahinerangi TrustPower Up to 200 Clutha Consented after appeal November 2006
Kaiwera Downs TrustPower Up to 240 Gore Consented after appeal November 2007
Project Hayes Meridian Up to 630 Central Otago Declined after appeal November 2006
Taharoa Taharoa C and up to 100 Kawhia Consented but appealed
PowerCoast
Project Central Meridian Energy Up to 130 Ruapehu and Consented but appealed July 2008
Wind Rangitikei
Mill Creek Meridian Up to 71 Wellington Consented but appealed April 2008
Mt Cass MainPower Up to 69 Hurunui Application declined, June 2008
decision appealed
Waitahora Contact Energy Up to 177 Southern Application declined, September
Hawkes Bay decision appealed 2008
33
New Zealand Wind Energy Association
Asia Pacific Clean Tech Handbook 140 of 348 31-May-10
Hauauru ma raki Contact Energy Up to 540 Waikato Called in to a Board of September
Inquiry, application 2008
publicly notified
Mt Stuart Pioneer Up to 6 Clutha Applied for consent, December 2008
Generation application publicly
notified
Turitea Mighty River Up to 360 Manawatu Called in to a Board of January 2009
Power Inquiry, application
publicly notified
Long Gully Windflow / Mighty Up to 12.5 Wellington Consent granted, subject May 2009
River Power to an appeal period
Te Rere Hau NZ Windfarms Up to 28 Manawatu Applied for consent,
expansion application publicly
notified
Lulworth Energy 3 Up to 1 Marlborough Applied for consent, December 2009
application publicly
notified
Slopedown Wind Prospect Southland Not yet applied
CWP
Puketiro RES Wellington Not yet applied
Source: NZ Wind Energy Association
A study completed for the Electricity Commission indicated that the country’s economic wind
resource is sufficient to meet annual demand several times over. The study identified that areas
with an annual wind speed of greater than about 8.5 m/s have the potential to generate over
50,000 GWh per year. An even larger resource was identified in the next band of wind speed,
from 7.5 m/s to 8.5m/s. New Zealand’s total electricity generation in 2007 was 42,374 GWh.
While this wind energy potential is unlikely to be realised in full because of economic,
environmental and community considerations, it is realistic for wind to generate 15 to 20% of
electricity by 2025.
Drivers & Constraints
In New Zealand, wind farms do not receive subsidies. For this reason, wind farm developers will
only build a wind farm if it can produce electricity at a cost that is competitive with other forms of
generation.
Market Players & Competition
• Windflow Technology <WTL.NZ> constructs Wind Turbinesin New Zealnd for
customerssuch as New Zealand Windfarms <NWF.NZ>. WTL and NWF are locked in a
dispute over the design of turbines
Asia Pacific Clean Tech Handbook 141 of 348 31-May-10
Operators
• New Zealand Windfarms <NWF.NZ> is engaged in the business of development and
operation of wind power generation assets for the purpose of generating and selling electricity.
The subsidiaries of the Company are NZWL-TRH Limited and WindPower Maungatua Limited.
• Contact Energy <CEN.NZ> Contact Energy Limited is a diversified and integrated energy
company, focusing on the wholesale generation of electricity and the retail sale of electricity,
natural gas and liquefied petroleum gas (LPG). The Company operates a number of wind
farms, as part of its power generation portfolio mix
• Meridian Energy <Unlisted> Meridian is the largest state-owned electricity generator in New
Zealand and operates and generates electricity from hydro stations on the Waitaki River in
the South Island and at Lake Manapouri in Fiordland National Park. It also generates power
from three wind farms at Palmerston North (Te Apiti), Mossburn in Southland (White Hill) and
at Makara, Wellington (West Wind).
• Mighty River Power <Unlisted> Mighty River own and manage a diverse and expanding
portfolio of generation assets throughout the North Island of New Zealand. Its portfolio
includes the Waikato Hydro System, with nine power stations along the Waikato River;
geothermal plants within the Taupo and Bay of Plenty regions; the Southdown co-generation
station, bioenergy production and an active wind development programme. Mighty River
Power sells electricity and gas to more than 380,000 customers through our retail business
Mercury Energy. Mighty River Power's metering business Metrix provides meters and meter-
reading services to residential and commercial customers across Auckland, and to other
electricity retailers.
Asia Pacific Clean Tech Handbook 142 of 348 31-May-10
6.1.14 Summary of Companies in the Wind Sector
Code Company Name Market PE Country Segment
Cap (M Ratio
Dollars)
200706.SZ Wafangdian Bearing Co Ltd $119.9 56.3 China Industrial Components
China National Building Material Co Building Materials &
3323.HK Ltd $4,597.0 16.1 China Components
Tianjin Xinmao Science & Business & Public
000836.SZ Technology Co Ltd $354.0 85.7 China Services
Sinoma Science & Technology Co
002080.SZ Ltd $736.2 55.1 China Chemicals
044490.KQ Taewoong Co Ltd $1,148.8 40.4 South Korea Metals - Steel
China High Speed Transmission
0658.HK Equipment Group Co Ltd $2,711.0 26.7 Hong Kong Machinery & Engineering
053660.KQ HYUNJIN MATERIALS CO LTD $306.4 14.2 South Korea Metals - Steel
7011.T Mitsubishi Heavy Industries Ltd $13,117.9 1238.5 Japan Machinery & Engineering
7270.T Fuji Heavy Industries Ltd $3,946.0 N/A Japan Automobiles
5631.T Japan Steel Works Ltd $4,333.1 21.6 Japan Machinery & Engineering
WHN.AX WHL Energy Ltd $9.7 N/A Australia Energy Sources
Energy Equipment &
SUZL.BO Suzlon Energy Ltd $2,571.7 N/A India Services
Xinjiang Goldwind Energy Equipment &
002202.SZ Science&Technology Co Ltd $6,799.1 26.6 China Services
600875.SS Dongfang Electric Corp Ltd $6,198.3 85.7 China Electrical & Electronics
601727.SS Shanghai Electric Group Co Ltd $15,133.2 48.8 China Machinery & Engineering
Energy Equipment &
600290.SS Huayi Electric Co Ltd $672.8 23.2 China Services
Xiangtan Electric Manufacturing Co
600416.SS Ltd $802.9 41.5 China Electrical & Electronics
Doosan Heavy Industries &
034020.KS Construction Co Ltd $8,354.1 N/A South Korea Machinery & Engineering
BHEL.BO Bharat Heavy Electricals Ltd $25,668.8 31.1 India Electrical & Electronics
2766.T Japan Wind Development Co Ltd $409.9 N/A Japan Multi-Industry
IFN.AX Infigen Energy Ltd $1,026.1 4.5 Australia Financial Services
Transfield Services Infrastructure
TSI.AX Fund $226.1 N/A Australia Financial Services
VIR.AX Viridis Clean Energy Group $24.8 N/A Australia Financial Services
Business & Public
WTL.NZ Windflow Technology Ltd $10.3 N/A New Zealand Services
NWF.NZ New Zealand Windfarms Ltd $21.9 N/A New Zealand Utilities-Electrical & Gas
Unlisted Chongqing Gearbox Co., Ltd. N/A N/A China Gearbox
Hangzhou Advance Gearbox Group
Unlisted Co Ltd N/A N/A China Gearbox
Zhonghang Huiteng Windpower
Unlisted Equipment Co.Ltd N/A N/A China Gearbox
Unlisted Sinovel Wind Co. Ltd. N/A N/A China Turbines
Zhejiang Windey Engineering Co.,
Unlisted Ltd. N/A N/A China Turbines
Guangdong Mingyang Electric Group
Unlisted Co., Ltd. N/A N/A China Turbines
Source: Thomson Reuters
Asia Pacific Clean Tech Handbook 143 of 348 31-May-10
6.2 Solar
6.2.1 Background
The solar sector consists primarily of Photo Voltaic (PV), followed by solar concentrator and solar
used for water heating.
Up until 2006, this was effectively just a Japanese and German market, driven by government
subsidies and feed in tariffs. The manufacturing is primarily based in APR, most notably Japan,
China, South Korea and Taiwan. These countries have a tradition of high quality manufacturing in
the silicon chip industry and have translated this expertise into the PV solar market. These
countries also lead the Research & Development into this sector, as highlighted in the patent
filing research – a proxy for Research & Development and a ‘statement of intent’ for countries and
companies.
After a change in government, Japan has renewed its efforts to re-establish itself, as the largest
PV market globally, with a new target for 2020 and 2030.
The most impressive country is China: from a virtual production of zero, it is expected to provide
nearly half of all feedstock production in 2010. In addition, China has applied a similar approach it
has applied in other manufacturing sectors to the PV Solar market and instituted a financial
stimulus package to invest and allow banks to lend to domestic companies in the PV Solar
market. This has also been coupled with the surprise increase in the PV solar market to 20GW by
2020 to further stimulate growth in the domestic market. It also dominates the Solar Water
Heating market and accounts for two thirds of the total manufacturing globally.
India has also moved aggressively in this market, by proposing new aggressive targets for PV
Solar, with a target of 1GW by 2012 and 20GW by 2022, which would make it the second largest
market, after China. However, India does not have the same manufacturing expertise and
Research & Development, as the Northern Asian countries and it is expected that China will be
the main beneficiary of the increased demand in India, at least in the short term.
This has lead to a huge oversupply in the PV solar market, which will lead to some consolidation
of the market and drive the move of production from the US and Europe to Asia. This move of
manufacturing to low cost countries in Asia, such as China will accelerate the drive in costs down
that should further facilitate the growth in the PV solar market.
Asia Pacific Clean Tech Handbook 144 of 348 31-May-10
Total Installed capacity (MW)
Year 2005 2006 2007 2008 2009 2010E 2020T
China 20 40 300 1,500 30,000
Japan 1,421 1,708 1,918 2,144 2,600 3,000 14,000
Korea 13 35 81 357
India 1,000 20,000 34
Malaysia 5 7 8 10 975
Thailand 20 25 40 60 120 150 500 35
Australia 60 70 82 104 120
Source: IEA, Thomson Reuters, Government Publications
6.2.2 Targets and Incentives
There are five main markets for PV solar in Asia Pacific, driven by targets and incentive schemes.
Out of these, China, India and Japan will account for over 90% of the Asian market.
34
2022 Target, 5 Year Plan
35
2022 Target, Thailand 15 Year Energy Masterplan
Asia Pacific Clean Tech Handbook 145 of 348 31-May-10
• Japan - The Residential PV System Dissemination Program was the main driver for the
growth in the PV solar market in Japan, until 2008. Incentives and subsidies have been put in
place to continue the growth, with a target of 14GW installed capacity set for 2020 and 53 GW
by 2030. Japanese companies have used its expertise in electronics and high end
manufacturing to extend to the PV solar market, such as Sharp and Kyocera.
• China - The existing domestic installed base in China is miniscule compared with its domestic
production capacity. China has turned to developing domestic demand in 2009 to help meet
oversupply with the slump in overseas markets. In addition, the government has put in place a
target of 30GW installed capacity by 2020, coupled with encouragement of loans to PV solar
companies that has lead to the growth of over 30 domestic companies that will make China
the number one PV market globally. By 2010, China is expected to account for nearly half the
feedstock market, from a market of nearly zero a few years ago.
• India - India has followed China and set an ambitious target of 20GW installed capacity by
2022. Interestingly, India does not have the same domestic manufacturing market and
Chinese companies are expected to be the main beneficiary of this increased demand. Unlike,
its Northern Asian neighbours, India does not have the traditional expertise in high end
manufacturing, nor research and development and intellectual property to create a domestic
industry.
• South Korea - As with Japan, South Korea is leveraging its expertise in electronics and high
end manufacturing to enter into this market. However, it is starting relatively late and will need
to be able to differentiate itself from market leaders like Japan, to low cost competitors such
as China.
• Taiwan - While Taiwan does not have a large domestic installed base, it is a key provider to
the PV solar markets and has leveraged its capability in the electronics space.
• Australia - has set an ambitious renewable target of 20% by 2020, with solar playing a big
part. Its government grant scheme has been the main driver for installation of PV solar into off
grid residential homes and farms. It also has a FiT at the state level to promote and
encourage solar power. While Australia is not a manufacturer of PV solar, due to its
abundance of sunshine it is also looking into the PV solar concentrator market.
Asia Pacific Clean Tech Handbook 146 of 348 31-May-10
Figure 6.4 – PV Supply Chain
Feedstock Wafers & Cell & Module Equipment
Ingots Manufacturing Manufacturers
China LDK, Tianwei, LDK Solar, Suntech, China
Zhongsheng Solargiga Sunergy
Japan Tokuyama, SUMCO Sharp, Kyocera
Mitsubishi Mat Kanematsu Sanyo, MHI
S Korea KCC, LG Chem Woongin Energy, KPE, Sinsung
Nexolon Holdings
Taiwan Sino American, Motech, Gintech,
Green Energy Eton
India Moser Baer, BHEL Tata Power
Source: Company Reports, Thomson Reuters
6.2.3 PV Supply Chain
There are four basic steps in the manufacture and production of PV:
• Feedstock
• Wafer & Ingots
• Cell and Module Manufacturing; and
• Final Assembly
Feedstock
The main source of silicon feedstock for PV cells is polysilicon and the process is essentially the
same as producing semiconductor grade silicon. However, the producers have simplified some
steps in their processes for supplies to the PV industry. There are many attempts to replace the
current expensive purification process, based on chemical gaseous purification, by cheaper
alternatives including metallurgical purification (condensed phase).
The solar photovoltaic grade silicon feedstock supply was traditionally dominated by the three
major producing countries: Germany, the US and Japan. However, China is expected to supply
nearly half of the silicon feedstock by 2010, while Korea and India are also entering the market.
Ingots and Wafers
Highly purified silicon is used to make single crystal silicon ingots, multi-crystalline silicon ingots
or multi-crystalline silicon ribbons. The ingots are then cut into bricks or blocks and then sawn into
thin wafers, whereas the ribbons are cut directly into wafers. Silicon ingots are of two types:
Asia Pacific Clean Tech Handbook 147 of 348 31-May-10
single crystal and multi-crystalline. The first type, although with different specifications regarding
purity and specific dopants, is also produced for microelectronics applications, while multi-
crystalline ingots are only used in the PV industry. Ingot producers are in many cases also
producers of wafers. Norwegian, German, Japanese, Taiwanese, Korean and Chinese
companies feature most prominently in this section of the industry supply chain.
Photovoltaic cell and module production
Germany replaced Japan as the leading producer of photovoltaic cells during 2008. However,
China is expected to be the market leader by 2010, with the aggressive targets and incentives put
in place by the government.Taiwan accounted for some 830 MW to 900 MW of cell production,
consolidating its position at number four in terms of national production behind China, Germany
and Japan.
Equipment Manufacturing
From a cost perspective, balance of system (BOS) components account for 20-70 % of the total
system costs. Accordingly the production of BOS products has become an important sector of the
overall PV industry. Particularly with the rapid expansion of the worldwide market for grid-
connected PV systems, inverters are currently the focus of the interest.
PV Solar Concentration
At present, concentrating solar power (CSP) technology can be exploited through three different
systems:
• Parabolic Trough;
• Parabolic Dish; and
• Power Tower.
All the CSP technologies rely on four basic elements: concentrator, receiver, transport-storage
and power conversion. The concentrator captures and concentrates direct solar radiation, which
is then delivered to the receiver. The receiver absorbs the concentrated sunlight, transferring its
heat energy to the power-conversion system. In some CSP plants, a portion of the thermal
energy is stored for later use. The parabolic trough system, commonly known as the “Solar
Farm”, uses linear parabolic mirrors to reflect sunlight. The parabolic dish system, generally
known as a “Dish/Engine System”, collects sunlight through a round parabolic solar collector.
The “Power Tower System” employs heliostats to concentrate sunlight onto a central tower-
mounted receiver.
Parabolic trough plants are currently the most mature CSP technology. Power towers, with
potentially low-cost and more efficient thermal storage, could offer dispatchable power from solar-
only plants with a high annual capacity factor in the medium term.
Dish/engine systems will be used in smaller, high-value applications. In theory, power towers and
parabolic dishes can achieve higher solar-to-electric efficiencies and lower costs than parabolic
trough plants. Parabolic dish systems are the most efficient of all solar technologies, with
currently about 25% solar-to electricity efficiency. The 4-95 stirling power conversion unit (PCU)
now holds the world’s efficiency record for converting solar energy into grid-quality electricity, with
Asia Pacific Clean Tech Handbook 148 of 348 31-May-10
almost 30% efficiency at 1 000 watts per square metre. Because of their thermal nature, each of
the CSP system technologies can be “hybridised”, or operated in combination with conventional
fossil fuels. Hybridisation has the potential to dramatically augment the usefulness of CSP
technology by increasing its dispatchability, improving its performance by making more effective
use of power generation equipment, and reducing technological risk by using conventional fuel
when needed. Hybridisation efforts are currently focused mainly on the parabolic trough, but the
learning from these studies may be transferred to the other types of systems. The integrated solar
combined-cycle system (ISCCS) design offers a number of potential advantages to both the solar
plant and the combined cycle plant. For power tower systems, hybridisations are possible with
natural gas combined-cycle and coalfired or oil-fired Rankine plants. Initial commercial-scale
power towers will likely be hybridised with conventional fossil-fired plants. Because dish/engine
systems use heat engines, they have an inherent ability to operate on fossil fuels. However,
hybridisation for dish/engine systems is still a technological challenge.
Solar in Space
The US and Japan are investigating ways to put solar arrays in space and transmit power down
to the surface of the Earth, using microwaves. Mitsubishi Electric has put together a group of
companies to research and development in this space.
6.2.4 Research & Development
None of the larger players in this field have been as active recently as they were in the past
Research in solar power was very intense in the periods 2000-2005, and has diminished,
particularly in Japan. The largest holdings are with Canon, Sharp and Sanyo.
Some of the newer work among the smaller entities is focused on the use of less silicon and on
improving thin films to increase the yield of electricity.
Academic and government interest in this area is less China-dominated, and includes institutions
from the US, Japan, Switzerland, Germany and Korea as well. Research covers nanotubes and
dye-enhanced solar cells.
Asia Pacific Clean Tech Handbook 149 of 348 31-May-10
The following table lists the number of patent filings by companies or entities:
%
LARGER PRESENCE IN FIELD 06-08 97-98
RECENT
NTT FACILITIES KK 12 32 38
KYOCERA CORP 24 98 24
TOYOTA JIDOSHA KK 7 30 23
MATSUSHITA ELECTRIC WORKS LTD 12 69 17
SANYO ELECTRIC CO LTD 19 112 17
SHARP KK 24 143 17
MITSUBISHI ELECTRIC CORP 15 96 16
HITACHI LTD 5 52 10
SEKISUI CHEM IND CO LTD 5 81 6
CANON KK 7 175 4
KANEKA CORP 2 53 4
TOSHIBA KK 1 28 4
FUJI ELECTRIC CO LTD 1 40 3
Source: Thomson Reuters Scientific
%
SMALLER PRESENCE IN FIELD 06-08 97-98
RECENT
MSK KK 6 8 75
SHINETSU HANDOTAI KK 3 9 33
TOPPAN PRINTING CO LTD 4 13 31
KONARKA TECHNOLOGIES INC 2 10 20
BRIDGESTONE CORP 2 11 18
BP CORP NORTH AMERICA INC 2 11 18
TDK CORP 1 9 11
NISSHIN ELECTRICAL CO LTD 0 12 0
JX CRYSTALS INC 0 10 0
HUGHES ELECTRONICS CORP 0 8 0
OMRON KK 0 8 0
YKK ARCHITECTURAL PROD KK 0 8 0
Source: Thomson Reuters Scientific
Asia Pacific Clean Tech Handbook 150 of 348 31-May-10
%
ACADEMIC – GOVERNMENT 06-08 97-98
RECENT
UNIV CHICAGO 4 4 100
CHINESE ACAD SCI ELECTRICAL ENG INST 3 3 100
UNIV CALIFORNIA 3 4 75
UNIV TOHOKU 3 4 75
UNIV KYOTO 3 4 75
UNIV TOKAI GH 2 3 67
ECOLE POLYTECHNIQUE FEDERALE LAUSANNE 2 3 67
UNIV SHANGHAI JIAOTONG 2 5 40
UNIV NANJING AERONAUTICS & ASTRONAUTICS 1 3 33
KOREA ADV INST SCI & TECHNOLOGY 1 3 33
UNIV PRINCETON 1 3 33
FRAUNHOFER GESELLSCHAFT 2 8 25
KAGAKU GIJUTSU SHINKO JIGYODAN 0 6 0
DEUT ZENT LUFT & RAUMFAHRT EV 0 5 0
ZH KANAGAWA KAGAKU GIJUTSU ACAD 0 4 0
Source: Thomson Reuters Scientific
Samsung and TSMC are both among the top US patent holders for solar, along with Canon and
Sharp. Samsung’s solar patent portfolio is focused on a wide range of thin-film technologies.
TSMC recently formed a strategic alliance with Motech Industries and could be considering ways
to squeeze more Watts out of traditional cells, which currently convert 16-18% of the sunlight that
hits them into electricity, versus a theoretical limit of 30%.
6.2.5 China
Market Size & Growth
While China is a global leader in the manufacturing of PV solar, its domestic market was relatively
small, compared with domestic supply. This changed in 2009, with the slump in the growth of
international markets and led to the government putting in aggressive domestic demand to drive
domestic demand to compensate in the loss the export market.
Drivers & Constraints
China has put in place a set of aggressive targets and incentives schemes to increase capacity in
its domestic PV industry. In particular, key policy and targets include:
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• The “Golden Sun Project” will subsidise 50% of the upfront cost for grid-connected solar
systems (the bulk of demand) and 70% for off-grid.
• The government has put in place an aggressive target of 30GW by 2020 and encouraged
loans to finance new companies in 2009
PV solar manufacturers have benefited from the access to cheap finance in 2009, as part of
China’s fiscal stimulus and the sheer scale of growth has been breath taking, with over 80 PV cell
manufacturers in China. Invariably this has led to excess supply and there have been recent
steps to control funding. Despite this, provincial and municipal governments still continue to build
their own local renewables industries.
China has shown, as with other industries, how quickly it can ramp up and expand, when the right
policies are aligned with incentives. Ultimately, sustained growth will depend on how central
policy dictates are complemented by provincial and municipal interests.
Feedstock
From virtually no production capability a few years ago, the Chinese feedstock sector now
includes over 20 suppliers, driven by access to cheap finance. Companies include:
• LDK Solar <LDK.N>. LDK Solar is the leading manufacturer of multicrystalline solar wafers in
China. LDK Solar sells multicrystalline wafers globally to manufacturers of photovoltaic
products, including solar cells and solar modules. In addition, LDK Solar provides wafer
processing services to monocrystalline and multicrystalline solar cell and module
manufacturers. LDK is one the largest producers in China and produces 400MW annually.
For a detailed company profile, see Appendix A.
• Tianwei Sichuan Silicon Industry <Unlisted> is a producer of polysilicon with plans to
produce 3000 ton/year.
• Zhongsheng Semiconductor <Unlisted> is a Joint Venture between ReneSola and Linzhou
Zhongsheng Steel Co., Ltd with plans to produce polysilicon.
Ingots & Wafers
There are over 140 ingot and wafer manufacturers listed in China. The largest producers include:
• Solargiga <0757.HK> Solargiga makes monocrystalline silicon ingots and wafers, key
components for producing solar-power photovoltaic (PV) cells. It is the PRC’s second largest
manufacturer of monocrystalline silicon ingots by output and sales. Sales are mainly to solar-
wafer or cell manufacturers or traders, which include Isofoton, Sharp, Sumitomo and Suntech.
For a detailed company profile, see Appendix A.
• Comtec Solar <0712.HK> Comtec Solar is principally engaged in the wafer producing
business. Located in Nanhui district, Shanghai, the company has a wafer capacity of 200MW
and expected to ramp up production to 500MW.
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Cells and Module Manufacturing
There are over 80 Cell and Module manufacturers in China alone, with a large oversupply in the
market. The top 10 producers are highlighted below:
Company Name Code MW Produced Cell Technology
Suntech Power STP.N 1,000* Monocrystalline, Polycrystalline, Amorphous
Yingli Green Energy YGE.N 400* Polycrystalline
JA Solar JASO.O 425* Monocrystalline, Polycrystalline
Trina Solar TSL.N 200 Monocrystalline, Polycrystalline
Solarfun Power SOLF.O 360* Monocrystalline, Polycrystalline
China Sunergy CSUN.O 320* Monocrystalline, Polycrystalline
Eging Photovoltaic na 106 Monocrystalline
Canadian Solar na 103 Monocrystalline, Polycrystalline
Ningbo Solar na 90 Monocrystalline, Polycrystalline
Jiangyin Jetion S&T na 65 Monocrystalline, Polycrystalline
Source: Company Reports and websites
As PV prices are driven down globally, Chinese PV companies are expected to benefit, due to
their low cost of manufacturing. In particular, Trina Solar has performed the best in 2009, as it is
seen as a low cost leader.
• Suntech Power <STP.N> Suntech Power is one of the leading global PV cell manufacturer,
but has been primarily focused on exporting its product to the US and European markets.
However, as part of its push into the domestic market, Suntech recently announced that it
expects to develop approximately 20% of the 91MW of solar projects that were approved
under China's Solar Rooftop Program. It also started to develop 10MW solar power plants in
Shizuishan, and Dongtai. See Appendix A for company profile.
• Trina Solar <TSL.N> Trina Solar is viewed as the global leader in cost and is expected to
gain market share, as the prices for PV are driven lower in 2010. It has outperformed other
Chinese PV Cell & Module Manufacturers, who have in turn outperformed other countries.
See Appendix A for company profile.
• Yingli Green <YGE.N> Yingli is currently one of the largest manufacturers of PV products in
China as measured by annual production capacity, with an annual production capacity of 400
MW of polysilicon ingots and wafers, 400 megawatts of PV cells and 400 megawatts of PV
modules. See Appendix A for company profile.
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• JA Solar <JASO.O> JA Solar Holdings Co., Ltd. is a leading manufacturer of high-
performance solar cells. The company sells its products to solar manufacturers worldwide,
who assemble and integrate solar cells into modules and systems that convert sunlight into
electricity for residential, commercial, and utility-scale power generation. Q3 2009 reports that
total shipments in the third quarter were a record 177MW, compared with the second quarter
shipments of 77MW, representing a sequential growth of 130%. For a detailed company
profile, see Appendix A.
• Solarfun Power <SOLF.O> Solarfun is a vertically integrated manufacturer of silicon ingots
and photovoltaic cells and modules in China. It announced in January 2010, a capacity
expansion and will increase its PV module production capacity from 550MW to 700MW by
April 2010 and its PV cell production capacity from 360MW to 480MW by July 2010. For a
detailed company profile, see Appendix A.
• China Sunergy <CSUN.O> China Sunergy is a leading manufacturer of solar cell products in
China and has increased its annual production to 320MW. For a detailed company profile,
see Appendix A.
6.2.6 Japan
Market Size & Growth
The Japanese government has renewed its efforts to re-establish Japan as a global leader, after
a brief hiatus in 2008 and has put in place and an action plan sets targets to increase the amount
of installations of PV systems to 14 GW by 2020 and 53 GW by 2030.
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During 2008 a total of about 225 MW of PV were installed in Japan, a slight increase on the 210
MW installed the previous year. The primary factor leading to the flat growth was the termination
of the budget for the Residential PV System Dissemination Program. Most of these
installations (around 221 MW) continued to be grid-connected distributed PV systems, with a
further almost 4 MW comprising grid-connected centralized plants. In 2008 cumulative installed
PV capacity in Japan exceeded 2 GW.
2008 represented an important milestone in Japan’s efforts to develop the institutional
frameworks, policy support and budget enhancements necessary to accelerate the widespread
installation of PV from around 2009 onwards.
Market Players & Competition
Japanese companies are market leaders across the whole PV solar supply chain and the
government’s renewed push in solar energy, will further promote investment into the sector.
In the area of solar-grade silicon and wafers, manufacturers have been increasing production
capacities and expecting growth of future demand for solar cells.
Feedstock
Market leaders for polysilicon feedstock in Japan include:
• Tokuyama <4043.T> is the one of the largest producers of polysilicon with production of
around 8,200 tonnes. It supplies feedstock to SUMCO and built a plant in Malaysia to produce
6,000 tonnes. For a detailed company profile, see Appendix A.
• OSAKA Titanium Technologies <5726.T> manufactures and sells semiconductor products,
such as polycrystalline silicon, high-purity titanium and titanium tetrachloride solution, as well
as environmental- and energy-related products, such as silicon monoxide, photocatalysts,
silicon powder and porous silicon. It produces about 1,500 tonnes a year of feedstock. For a
detailed company profile, see Appendix A.
• Mitsubishi Materials <5711.T> is a Japan-based manufacturing company engaged in five
main business segments: Cement segment, Copper segment, Aluminum segment and the
Processing segment that includes the manufacture and sale of polycrystalline silicon
feedstock. Mitsubishi Materials plans to increase polycrystalline silicon production by 1,000
tonnes to 4,300 tonnes a year by 2011
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Wafers
Market leaders in the wafer segment are SUMCO <3436.T>, which has constructed a new
production facility aiming to achieve 1 GW/year production. Space Energy, which was acquired
by Nippon Oil <5001.T> also increased production capacity to 8 million wafers/year.
Silicon wafer slicing companies such as Ishii Hyoki, TKX and Shinko Manufacturing are also
enhancing production capacity, and Kanematsu Corporation has announced the establishment
of a silicon wafer processing company.
• SUMCO <3436.T> Sumco Corporation is one of Japan’s leading manufacturing company that
is mainly engaged in the high-purity silicon business. The Company operates through two
business divisions. The Semiconductor Silicon Wafer division manufactures and sells various
silicon wafers for semiconductors, including polished wafers, epitaxial wafers and special
wafers. The Others division, through its subsidiaries, manufactures silicon wafers for solar
batteries, and manufactures and sells high-purity quartz crucibles.
• Kanematsu <8020.T> Kanematsu Corporation is a Japan-based trading company. It
operates in five business segments. The Information Technology (IT) segment provides
semiconductors, semiconductor and crystalline liquid (LC) manufacturing equipment,
electronic components, communication-related equipment and components and optical
devices and has established a silicon wafer processing company.
Cell and Module Manufacturing
• Sharp <6753.T> announced a series of plans to increase production of thinfilm silicon PV
modules, starting from the completion of a new 160-MW production line for thin-film silicon PV
modules at its Katsuragi Plant. Currently, a 1 000-MW/year thin-film silicon PV module plant is
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under construction, on the premises of a plant for large-sized liquid crystal display panels in
Sakai City of Osaka Prefecture, scheduled to start operation in 2010. Furthermore, Sharp
announced a plan to construct a 480-MW/year plant to produce thin-film silicon PV modules
through a joint venture with ENEL of Italy. For a detailed company profile, see Appendix A.
• Kyocera <6971.T> completed the expansion of its MieIse Plant and announced a plan to
construct a new solar cell plant in Shiga Prefecture for the purpose of increasing the
production capacity to 650 MW/year by 2011. For a detailed company profile, see Appendix A.
• Mitsubishi Electric <6503.T> plans to establish a production framework with the capacity of
600 MW/year by 2011. Alongside that, Mitsubishi will enhance its global sales networks and is
also considering the commercialization of thin-film silicon solar cells.
• Kaneka <4118.T> revised up its plan to increase its domestic production capacity to 150
MW/year, along with construction of a new overseas production facility with the capacity of
200 MW/year. It has announced a plan to further increase production capacity to 1 GW/year
by 2015.
• Mitsubishi Heavy Industries <7011.T> plans on increasing production capacity to 130
MW/year in 2010, and 250 MW/year in 2012.
The production facilities for PV cell/module in Japan are concentrated in the Kansai and Kyushu
regions. As seen in the automobile and electronic industries, related industries have been
established to produce a stable supply chain for solar cells.
Solar in Space
Mitsubishi Electric <6503.T> and IHI Corp. <7013.T> will join a 2 trillion yen (USD $21 billion)
Japanese project intending to build a giant solar-power generator in space within three decades
and beam electricity to earth. A research group representing 16 companies, including Mitsubishi
Heavy Industries Ltd. <7011.T>, will spend four years developing technology to send electricity
without cables in the form of microwaves, according to a statement on the trade ministry’s Web
site today. Japan is developing the technology for the 1-gigawatt solar station, fitted with four
square kilometers of solar panels, and hopes to have it running in three decades, according to the
trade ministry in August 2009. Being in space it will generate power from the sun regardless of
weather conditions, unlike earth-based solar generators.
Transporting panels to the solar station will be prohibitively costly, so costs for transportation will
need to be drastically reduced before the solar station can become commercially viable.
The trade ministry and the Japan Aerospace Exploration Agency, which are leading the project,
plan to launch a small satellite fitted with solar panels in 2015, and test beaming the electricity
from space through the ionosphere, the outermost layer of the earth’s atmosphere, according to
the trade ministry document. The government hopes to have the solar station fully operational in
the 2030’s.
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6.2.7 South Korea
Market Size & Growth
A key goal of the Government’s 2003 second 10-year National Basic Plan for NRW (New and
Renewable) Technology Development and Deployment is to supply 5% of domestic energy
requirements through renewable and alternative energy sources by 2010, as well as produce
1GW of solar energy by 2012. Since the introduction of the Government’s feed-in-tariff policy in
2002, the number of photovoltaic installations has increased rapidly. However the 400MW of
installed capacity may fall short of the 1GW target by 2012.
Drivers & Constraints
As part of the “New Green Deal” in 2009, South Korea has embarked on a push into the Clean
Tech space to increase its presence in this space and to leverage its expertise in manufacturing.
This has led to companies like Hyundai Heavy Industries and Samsung entering into the market,
leveraging its investment in research and development.
Market Players & Competition
Feedstock
The main feedstock producer in South Korea is Dongyang Chemical Co (OCI) <010060.KS> has
expanded their annual production capacity up to 16,000 tonnes in 2009. Other companies
including, KCC corp., LG Chemical and Samsung Petrochemical are expected to start production
of feedstock.
• Dongyang Chemical Co (OCI) <010060.KS> OCI Company Ltd, formerly DC Chemical Co.,
Ltd., is a Korea-based chemical company specialized in the areas of inorganic chemicals,
coal and petrochemicals and fine chemicals processing business. It is the second largest
feedstock producer in world, with an increased capacity of 16,000 tonnes, with the completion
of its second Polysilicon plant in Gunsan.
• KCC Corporation <002380.KS> has a long term supply contract worth approximately
US$100M for 6 years from 2008 to 2013 with Solar Power Industries of the US.
• LG Chemical <051910.KS> has created a subsidiary called LG Solar Energy which supplies
polysilicon to LG Electronics to construct solar cells. It plans to manufacture approximately
520,000 solar modules a year using silicon wafers with a total capacity of 120MW.
Wafers
Companies in the wafer segment include Woongjin Energy and Nexolon.
• Woongjin Energy <Unlisted> is a joint venture between Woongjin Coway and SunPower of
the US, with plans to develop and manufacture monocrystalline silicon ingots for solar cells.
Woongjin Energy operates the largest solar ingot pulling facility in Korea.
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• Nexolon <Unlisted> is a manufacturer of mono and multicrystalline solar wafers. It has an
annual solar wafer manufacturing capacity of 150MW for 2008, and is in the next phase of
expanding the capacity to achieve a target of 1,000MW by the end of 2011.
Cells and Module Manufacturing
The largest manufacturers in Korea are Kyungdong Photovoltaic Energy (KPE), Hyundai Heavy
Industry, Samsung Electronics and Millinet Solar. Other companies in this sector include: Sinsung
Holdings, STX Solar, KISCO and Alti-Solar.
• Kyungdong Photovoltaic Energy <Unlisted> is the largest commercialized solar cell
manufacturer in Korea specializing in solar cell manufacturing and domestic PV system
integration. It currently has a total annual production capacity of 100MW.
• Hyundai Heavy Industry <009540.KS> Hyundai Heavy Industries Co., Ltd. is the world
largest ship builder and multinational conglomerate engaged in industrial manufacturing. As
part of the “New Green Deal” in 2009, it has targeted the PV Solar market, as a sector for new
growth.
6.2.8 Taiwan
Market Size & Growth
While Taiwan is one of the top 5 global producer in the PV Solar market, its domestic market is
only about 20MW due to a lack of incentives or targets.
Taiwan has a Solar Water Heater (SWH) incentive in place and is one of the largest domestic
markets with an estimated 2.15 million m2 by 2010.
Drivers & Constraints
In April 2009, the “New Trillion Dollars Energy Industry Flagship Plan” and the “Green
Energy Industry Sunrise Plan” put in place plans for Taiwan to produce 20% of the global
supply of the PV solar market. However, the “Renewable Energy Development Act” announced
on 8th July 2009, is the first attempt to develop the domestic solar photovoltaic industry and it
mainly includes the incentives related to the setup of the solar photovoltaic systems such as feed-
in tariff rate and equipment subsidy.
Market Players & Competition
There are 7 silicon ingot & wafer firms, 45 PV solar cell & module firms and 29 downstream
system installation firms in Taiwan that include:
• Motech Industries Inc <6244.TWO> Motech Industries, Inc. is engaged in the manufacture
and distribution of solar cells. The Company also provides power supply machines, signal
generation machines, communication transmission wire testing machines, radio frequency
(RF) training systems, inductance and capacitance impedance testing machines, asymmetric
digital subscriber line (ADSL) testing machines, solar portable power boxes, solar power
converters and others. The Company also offers consulting, integrating, technical
development and training services of solar power generation systems. Top contract
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chipmaker TSMC <2330.TW> <TSM.N> said in December 2009 that it has formed a strategic
alliance with Motech by buying a 20% stake in the company. For a detailed company profile,
see Appendix A.
• E-TON Solar Tech. Co Ltd <3452.TWO> is primarily engaged in development, manufacture
and distribution of solar cells. The Company provides four-inch single crystalline solar cells,
five-inch single crystalline solar cells, five-inch multi crystalline solar cells, six-inch single
crystalline solar cells and six-inch multi crystalline solar cells. For a detailed company profile,
see Appendix A.
• Gintech Energy Corp <3514.TW> specializes in the development and manufacture of solar
cells. The Company's major products include six-inch multicrystalline and monocrystalline
solar cells, as well as five-inch multicrystalline and monocrystalline solar cells. The
Company's solar cells are mainly applied in power generation plants, residential buildings,
solar electronic bicycles, battery chargers, watches and others. For a detailed company
profile, see Appendix A.
• Green Energy Technology Inc <3519.TW> is engaged in manufacture and distribution of
solar silicon wafers and solar silicon ingots. The Company provides 5-inch multi-crystal solar
silicon wafers, 6-inch multi-crystal solar silicon wafers, 5-inch mono-crystal solar silicon
wafers, 6-inch mono-crystal solar silicon wafers, multi-crystal silicon ingots and thin film solar
modules, among others. Its products are applied in manufacture of solar photovoltaic modules.
Green Energy Technology announced that it will invest USD 6.16 million in a Weifang-based
new energy technology company in Mainland China in September 2009.
• Sino-American Silicon Products Inc <5483.TWO> is primarily engaged in manufacture and
sale of silicon wafers and ingots. The Company provides silicon ingots, polished wafers, non-
polished wafers, high-power electronic wafers, diffused wafers, mono crystalline wafers, multi
crystalline wafers and sapphire polished wafers, among others. Its products are applied in
manufacture of integrated circuits (ICs), diodes, power devices and photovoltaic products. For
a detailed company profile, see Appendix A.
• Wafer Works Corp <6182.TWO> is engaged in the development, design, manufacture and
distribution of semiconductor silicon wafers and ingots, as well as solar silicon wafers and
ingots. The Company also provides double-sided polished wafers, thin wafers and epitaxial
wafers, as well as optoelectronic products such as sapphire wafers. The Company's
semiconductor silicon wafers and ingots are mainly applied in the processing and design of
integrated circuits (ICs). For a detailed company profile, see Appendix A.
• Tainergy <Unlisted> Tainergy plans to double its production capacity to 120MW in Taiwan by
Q1 2010. The company expects to target 1GW of PV cell production capacity by 2014,
including the production in Taiwan and Mainland China. The company plans to launch its
initial public offering the Taiwan Stock Exchange in 2010.
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Summary of Analyst Consensus for Taiwanese PV Solar Sector
Mkt Cap PE Consensus Mean No. of
Value Analysts
Company Name Code (Mill) Updated
Motech Industries Inc 6244.TWO NT$41,704 269.08 HOLD 3.26 19 Dec 2009
Green Energy HOLD 2.67 3
Technology 3519.TW Dec 2009
E-TON Solar Tech 3452.TWO HOLD 3.43 7 Dec 2009
Gintech Energy Corp 3514.TW
Sino-American Silicon NT$25,532 52.53 OUTPERF 2.44 10
Products 5483.TWO ORM Dec 2009
Wafer Works Corp 6182.TWO
Source: Thomson Reuters
6.2.9 India
Market Size & Growth
India, like China has ambitions to capture a significant share of the global solar manufacturing
industry and this is unlikely to be achieved in the absence of a significant domestic market.
Drivers & Constraints
India’s government is set to announce its National Solar Mission with targets for solar capacity
addition to be around 1GW by 2012 and 20GW by 2022. This New Mission should add to the
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existing FiT put in place by the MNRE in 2008, which set a maximum of 15 INR/kWh (< 0,25
EUR/kWh) guaranteed for no more than 10 years and capped at 50 MW of capacity.
In addition, in 2009, the State governments have offered discrete support for PV. At the start of
the year, Gujarat announced its Solar Power Policy 2009 initiative, targeting installation of 500
MW of solar power plant over the next five years.
This should be a benefit for domestic providers such as Moser Baer, Tata Power and new
entrants like BHEL and Bharat Electronics.
India has a Ministry focused on New and Renewable Energy (MNRE). The MNRE programs have
resulted in the installation of an estimated 5 MW of street lighting systems, 450 000 home lighting
systems, 730 000 solar lanterns and over 7 000 PV pumps.
Estimates by the European PV Industry Association suggest that some 28 MW of new PV
capacity were installed in India in 2008, corresponding to a total installed capacity of over 160
MW.
Market Players & Competition
• Moser Baer <MOSR.BO> Moser Baer, is one of India's leading technology companies. It is
one of the leading manufacturer of Optical Storage media like CDs and DVDs. It has
diversified into other sectors, including Solar Energy.
• Tata Power <TTPW.BO> has entered into a joint venture with BP Solar to create Tata BP
Solar which runs a fully integrated Solar Manufacturing Plant, including Cell Manufacture,
Module Assembly and Balance of Systems (BOS). It has a capacity of manufacturing 52MW
Solar Cell.
• Bharat Heavy Electricals <BHEL.BO> is an engineering and manufacturing company in the
energy-related and infrastructure sector. The Company caters to sectors, including to the
power generation and transmission, industry, transportation, renewable energy and defense.
BHEL manufactures a range of products and systems for thermal, nuclear, gas and hydro-
based utility power plants. Bharat Heavy Electricals has entered into the PV Solar sector and
recently secured an order worth INR420 million to build a 3MW solar power plant in the
southern state of Karnataka for Karnataka Power Corp Ltd.
• Bharat Electronics <BAJE.BO> offers products and services in a wide spectrum of
technology like Radars, Military Communications, Naval Systems, Electronic Warfare
Systems, Telecommunications, Sound and Vision Broadcasting, Opto-Electronics, Tank
Electronics, Solar Photovoltaic Systems, Embedded Software and Electronic Components. It
has also signed a memorandum of understanding with Bharat Heavy Electronics Limited to
explore formation of a joint venture company for solar photo voltaic business setting up
manufacturing facility for silicon wafer, solar cells and modules and to identify suitable
vendor/partners for the supply of raw material including poly silicon for solar PV business. The
JVC, besides export, will cater to Indian products requirements.
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6.2.10 Singapore
Market Size & Growth
The capacity for solar power in Singapore is limited. However a solar testbed has been started to
trail new PV technologies at demonstration sites.
Drivers & Constraints
The Singapore Government has ambitions to build the nation into a ‘Clean Energy Hub’ and has
already been successful in attracting significant investment from major international PV
businesses to establish manufacturing capacity in the country. On the implementation side, a
‘Solar Capability Scheme (SCS)’ has been initiated providing up to one million SGD (30 % to
40 % of the total capital cost of PV projects) for projects promoting innovative design and
integration of solar technologies into energy efficient buildings
Market Players & Competition
• REC <REC.OL>. REC will build the largest PV solar plant in the world in Singapore, due to
start operations in 2010. The plant will be able to produce products that can generate up to
1.5 GW of energy annually.
6.2.11 Indonesia
Market Size & Growth
The market for PV Solar in Indonesia is negligent, as the cost of generation is mauch higher,
compared with geothermal, hydro and biomass.
Drivers & Constraints
Indonesia is focused in three renewable areas: geothermal, small hydro and biomass. However, a
target of 870MW in solar capacity has been proposed by 2025.
Market Players & Competition
There are no companies identified.
6.2.12 Malaysia
Market Size & Growth
Malaysia plans to introduce a FiT scheme in the 10th Malaysian Plan (2011 – 2015) for
renewable energy market acceleration. By 2011, Malaysia aims to achieve 217 MW of renewable
energy in the electricity supply system, with PV contributing 7 MW; by 2015 the corresponding
figures are 975 MW and 55 MW; and by 2030 renewable energy is expected to represent 13% (3
484 MW) of total system capacity.
By the end of 2008 Malaysia had a total installed PV capacity of about 9 MW, of which 776 kW
(54 installations) were grid-connected. The largest installation is the 362 kW system at the
Enterprise Four Building at Technology Park Malaysia. During 2008 there were over 135 kW of
grid-connected systems installed and an estimated 1 625 kW of offgrid systems. Of the 24 new
grid-connected installations in 2008, two were for office buildings and 22 for residences. The two
commercial buildings made up 40 % of the total installed grid-connected PV capacity in 2008.
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Drivers & Constraints
The main market driver for grid-connected PV systems is the financial incentive program provided
by SURIA 1000, based on a bidding process that spreads over six calls with the final call ending
1st December 2009. Other incentive programs are the Demonstration Category (providing 25 %
capital incentive for a total of 200 kW) and Showcase (providing 100 % capital incentive for a total
of 100 kW). Both programs have been fully awarded. By the end of 2008, SURIA 1000 had
completed four of the six calls, with the following results: a total of 342 kW of PV installed
(compared with the target of 300 kW); 13 % drop in the price of grid-connected PV systems; and,
by the fourth call, bidders’ willingness to pay reaching 51.8% of total system price, up from 46.7%
during the first call.
During August 2008 the Government of Malaysia announced an exemption on import duty and
sales tax for PV systems – this should decrease the price of PV systems by 5 % to 10 %.
Companies continued to enjoy the double tax allowances (investment tax and capital allowances)
announced in the previous year’s budget.
The cumulative installed capacity of grid connected PV systems in Malaysia is expected to reach
980 kW to 1 MW by the end of 2009. The cumulative capacity of off-grid PV systems is expected
to reach about 10 MW by this time.
Market Players & Competition
Foreign companies dominate the domestic market, with 5 firms established in Malaysia: First
Solar Inc at the Kulim Hi Tech Park (KHTP), SunPower Corp in Malacca, ReneSola in Johor Baru,
Q-Cells in Selangor Science Park 2, and the Japanese firm Tokuyama Corp in Sarawak.
Three public-listed companies in Penang, P. I.E. Industrial Bhd, Ire-Tex Corp Bhd, and
Pentamaster Corp Bhd, have recently invested in Solar to tap into the growing market demand for
solar products in the country and in the world.
6.2.13 Thailand
Market Size & Growth
The Thai PV market is around 100MW in installed capacity by 2009 and expected to rise to
250MW by 2011.
Drivers & Constraints
A PV Solar target of 500MW has been proposed by 2022, as part of the 15 year Renewable
Energy Masterplan.
Market Players & Competition
Solartron Public Company Limited is Thailand’s leading solar module manufacturer. Solartron
holds about 80% of the domestic market share, with an annual production of 30MW.
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6.2.14 Philippines
Market Size & Growth
There is only an estimated 25MW of installed capacity in the Philippines. However, with the
enactment of the RE Act, and award of new wind project, the market is expected to increase
significantly.
Drivers & Constraints
While the Renewable Energy Act of 2008 (RE Act) put in place a regulatory framework for
renewable energy in the Philippines, renewable energy is still focused on hydro and geothermal.
Market Players & Competition
• SunPower Philippines Manufacturing Limited (SPML), was the first semiconductor fab in the
Philippines and the first large-scale, solar cell facility in Southeast Asia, established in 2004.
The plant will initially turn out 25MW per year of high-efficiency silicon solar cells to meet the
increasing worldwide demand for clean, reliable solar electric power systems.
6.2.15 Australia
Market Size & Growth
The total installed capacity in Australia reached 104.5 MW in 2008. The largest installed capacity
of PV in Australia is for off-grid industrial and agricultural applications.
Drivers & Constraints
The market for PV installations connected to the main electricity grids continues to increase and
represented the largest market for PV in 2008. The majority of installations took advantage of a
government grant program under the “Solar Homes and Communities Plan” (SCHP) which
contributed up to 80 % or more of up-front capital costs. The main applications are rooftop
systems for private residences, schools and community buildings. Commercial and light industry
sector interest is also growing, with support available to selected projects through the Solar
Cities Program. All grid-connected PV systems can create Renewable Energy Certificates for
the Renewable Energy Target. While, there are no National FiT, there are FiT set at the State
level, which range from $0.2 to $0.6 per kWh
Australian Government support programs impacted significantly on the 2008 PV market,
contributing funding towards 74 % of PV capacity installed over the year. The SCHP provided
rebates up to 8 000 AUD for 1 kW of PV installed on residential buildings and up to 50 % of the
cost of PV systems up to 2 kW installed on community buildings. From late 2009, the rebate is
expected to be replaced by extra Renewable Energy Certificates from the Renewable Energy
Target.
Whilst there is no specific national PV program, there are a number of key PV support
mechanisms which drive the Australian market. These include the Solar Homes and
Communities Plan, the Renewable Remote Power Generation Program (RRPGP) which has
Asia Pacific Clean Tech Handbook 165 of 348 31-May-10
provided 50% of off-grid renewable energy system costs, with the aim of reducing diesel fuel use,
but now has restricted grants to smaller systems via a AUD 200,000 cap; the Solar Cities
program, which is creating a useful driver for PV installations for the next 5 years, particularly in
the otherwise neglected commercial sector; and the Solar Schools program, which could see the
installation of 20 MW of PV over the next 8 years. The majority of small PV systems installed
create Renewable Energy Certificates (RECs) under the Renewable Energy Target (RET)
scheme.
Market Players & Competition
There is only one module manufacturer in Australia – BP Solar, which produces its own cells and
modules from imported wafers. Solar Systems manufacture concentrator PV systems using
imported cells, but is in the process of setting up cell manufacture in Australia. There are a
number of Australian manufacturers of inverters, battery charge controllers and inverter/chargers,
particularly catering for the off-grid system market, including Selectronics, Plasmatronics,
Latronics and Solar Energy Australia. Some of these manufacturers also supply inverters suitable
for grid interconnection. Inverter prices typically range from AUD 0.5 – 1.5 per W. Although some
battery components are made in Australia, only a few companies manufacture complete solar
batteries. These include Exide’s Energystore products and Battery Energy’s Suncycle range.
Battery Energy, in conjunction with the Commonwealth Scientific & Industrial Research
Organisation (CSIRO), has also developed a solar gel battery, Sungel.
• Selectronics <Unlisted> designs and manufactures a wide range of wire wound components
and a range of high quality sine wave power inverters. They also manufacture Solar
Controllers and Inverters.
• Plasmatronics <Unlisted> is an Australian company which specialises in the design and
manufacture of electronic regulating and metering devices for solar power systems..
• Latronics <Unlisted> manufactures grid connected solar inverters, pure sinewave inverters,
AC transfer switches, turbine controllers and battery chargers.
Solar Concentrators
• SunSeeker Energy <SSE.NZ> is engaged in commercializing the SunSeeker technology
throughout Australasia. It manufactures, markets, and sells the SunSeeker solar energy
system in Australasia. The SunSeeker solar concentrator technology was developed and is
licensed by Hong Kong-based SunSeeker Energy Limited (SunSeeker Energy).
6.2.16 New Zealand
Market Size & Growth
The PV Solar market in New Zealand is small and no data found on installed capacity.
Drivers & Constraints
PV Solar is not a focus for Renewable Energy targets in New Zealand.
Asia Pacific Clean Tech Handbook 166 of 348 31-May-10
Market Players & Competition
• BP Solar <Unlisted> is a subsidiary of UK oil giant BP, the company designs, manufactures,
supplies, and installs photovoltaic (PV) solar cells and modules that provide power for homes , remote
villages and industrial facilities, commercial businesses, and local government. Its plants are in the US,
India, China., Australia and NZ
6.2.17 Summary of Companies in PV Sector
Code Compay Name Market Cap PE ratio Country Sector
(M Dollars)
SunSeeker Energy
SSE.NZ (Australasia) Ltd $13.1 N/A New Zealand Energy Sources
7966.T LINTEC Corp $1,539.4 21.5 Japan Misc. Materials & Commodities
7911.T TOPPAN PRINTING CO Japan Business & Public Services
LTD $6,229.4 N/A
3402.T TORAY INDUSTRIES Japan Textiles & Apparel
INC $7,918.0 N/A
5816.T Onamba Co Ltd $76.0 17.8 Japan Electrical & Electronics
6826.T HONDA TSUSHIN Japan Electronic Components &
KOGYO CO LTD $40.9 N/A Instruments
6941.T YAMAICHI Japan Electronic Components &
ELECTRONICS CO Instruments
LTD $80.8 N/A
6804.T Hosiden Corp $960.9 8.6 Japan Industrial Components
5331.T NORITAKE CO LTD $452.8 N/A Japan Industrial Components
5108.T BRIDGESTONE CORP $13,763.4 1149.3 Japan Industrial Components
5202.T Nippon Sheet Glass Co Japan Misc. Materials & Commodities
Ltd $1,965.6 N/A
5201.T Asahi Glass Co Ltd $13,093.6 58.2 Japan Misc. Materials & Commodities
010060.KS OCI Co Ltd $3,764.0 10.0 South Korea Chemicals
3800.HK GCL-poly Energy 10.0 Hong Kong Utilities-Electrical & Gas
Holdings Ltd $3,867.2
4043.T Tokuyama Corp $1,967.8 19.9 Japan Chemicals
5711.T Mitsubishi Materials Japan Metals - Non Ferrous
Corp $3,656.1 N/A
5726.T OSAKA Titanium 110.7 Japan Metals - Non Ferrous
technologies Co Ltd $1,278.0
051910.KS LG Chem Ltd 11.2 South Korea Chemicals
$13,838.3
4091.T TAIYO NIPPON SANSO $3,634.8 23.1 Japan Chemicals
Asia Pacific Clean Tech Handbook 167 of 348 31-May-10
CORP
4183.T Mitsui Chemicals Inc $3,147.5 N/A Japan Chemicals
5411.T JFE Holdings Inc $24,401.9 N/A Japan Metals - Steel
002380.KS KCC Corp 9.9 South Korea Building Materials &
$3,297.4 Components
4204.T Sekisui Chemical Co Ltd $3,699.5 81.2 Japan Chemicals
CMH.TO Carmanah Technologies Energy Sources
Corp $32.6 N/A Canada
6753.T Sharp Corp $13,202.4 N/A Japan Appliances & Households
6971.T KYOCERA CORP Electronic Components &
$18,141.2 N/A Japan Instruments
7011.T Mitsubishi Heavy 1238.5 Machinery & Engineering
Industries Ltd $13,117.9 Japan
6503.T Mitsubishi Electric Corp $19,005.4 N/A Japan Electrical & Electronics
6764.T SANYO Electric Co Ltd $10,096.3 N/A Japan Appliances & Households
3452.TWO E-TON Solar Tech. Co Electronic Components &
Ltd $511.9 N/A Taiwan Instruments
3514.TW Gintech Energy Corp Electronic Components &
$909.3 N/A Taiwan Instruments
5483.TWO Sino-American Silicon 47.4 Electronic Components &
Products Inc $743.3 Taiwan Instruments
6244.TWO Motech Industries Inc 208.3 Electronic Components &
$1,471.9 Taiwan Instruments
BAJE.BO Bharat Electronics Ltd 15.4 India Electronic Components &
$3,703.5 Instruments
BHEL.BO Bharat Heavy Electricals 31.1 India Electrical & Electronics
Ltd $25,668.8
CSUN.O China Sunergy Co Ltd $180.0 N/A China
ESLR.O Evergreen Solar Inc Electronic Components &
$261.9 N/A China Instruments
JASO.O JA Solar Holdings Co Electronic Components &
Ltd $794.6 N/A China Instruments
MOSR.BO Moser Baer India Ltd 3792.5 India Data Processing &
$281.4 Reproduction
SOLA.L ReneSola Ltd $417.1 N/A China Electrical & Electronics
SOLF.O Solarfun Power Holdings Electronic Components &
Co Ltd $336.0 N/A China Instruments
Asia Pacific Clean Tech Handbook 168 of 348 31-May-10
STP.N Suntech Power Holdings 29.8 Electrical & Electronics
Co Ltd $2,654.0 China
TSL.TH Trina Solar Ltd 14.8 Electronic Components &
$1,612.4 China Instruments
TTPW.BO Tata Power Co Ltd $7,042.5 29.1 India Utilities-Electrical & Gas
WESL.BO Websol Energy Systems 38.6 India Utilities-Electrical & Gas
Ltd $56.8
YGE.TH Yingli Green Energy Electronic Components &
Holding Co Ltd $1,783.5 N/A China Instruments
002218.SZ Shenzhen Topraysolar 155.2 Data Processing &
Co Ltd $1,002.1 China Reproduction
0155.HK China Solar Energy Financial Services
Holdings Ltd $178.9 N/A Hong Kong
0750.HK China Singyes Solar 12.3 China Energy Equipment & Services
Technologies Holdings
Ltd $253.0
4118.T KANEKA CORP $2,260.4 22.2 Japan Chemicals
DSTI.O DayStar Technologies Electronic Components &
Inc $11.4 N/A USA Instruments
0712.HK Comtec Solar Systems Energy Equipment & Services
Group Ltd $295.1 N/A China
0757.HK Solargiga Energy
Holdings Ltd $402.8 N/A Hong Kong
3436.T SUMCO CORP Electronic Components &
$5,222.4 N/A Japan Instruments
3519.TW Green Energy 26.3 Taiwan Electronic Components &
Technology Inc $393.6 Instruments
6182.TWO Wafer Works Corp Electronic Components &
$438.9 N/A Japan Instruments
5981.T TOKYO ROPE MFG CO Industrial Components
LTD $436.1 N/A Japan
8020.T KANEMATSU CORP $351.0 10.3 Japan Wholesale & International Trade
6890.Q Ferrotec Corp $317.5 N/A Japan Electrical & Electronics
6336.T ISHII HYOKI CO LTD $101.4 N/A Japan Machinery & Engineering
Unlisted Selectronics N/A N/A Australia Battery chargers
Unlisted Plasmatronics N/A N/A Australia Battery chargers
Unlisted Latronics N/A N/A Australia Battery chargers
Unlisted Solar Energy Australia N/A N/A Australia Battery chargers
Asia Pacific Clean Tech Handbook 169 of 348 31-May-10
Unlisted Mitsubishi Aluminum N/A N/A Japan BOS/Back Sheets
Unlisted Mitsubishi Plastics N/A N/A Japan BOS/Back Sheets
Unlisted Toyo Aluminium N/A N/A Japan BOS/Back Sheets
Unlisted Mitsui Chemicals Fabro N/A N/A Japan BOS/EVA
Unlisted C.I. Kasei N/A N/A Japan BOS/EVA
Unlisted M. Setek N/A N/A Japan Feedstock
Unlisted Dongyang Chemical Co N/A N/A South Korea Feedstock
Samsung Petrochemical
Unlisted Co N/A N/A South Korea Feedstock
Unlisted Space Energy N/A N/A Japan PV Cells and Modules
Unlisted BP Solar N/A N/A Australia PV Cells and Modules
Unlisted STX Solar N/A N/A South Korea PV Cells and Modules
Unlisted Millinet Solar N/A N/A South Korea PV Cells and Modules
Unlisted KISCO N/A N/A South Korea PV Cells and Modules
Unlisted Alti-Solar N/A N/A South Korea PV Cells and Modules
Unlisted Solar Systems N/A N/A Australia PV Concentrator
Unlisted Woongin Energy N/A N/A South Korea Wafers
Unlisted Nexolon Co N/A N/A South Korea Wafers
Unlisted Sinsung Holdings N/A N/A South Korea Wafers
Source: Thomson Reuters
6.3 Biofuel
6.3.1 Background
Unlike other renewable sources, the biofuel sector is used primarily for the transportation industry,
as opposed to power generation. The biofuel sector is also contentious as it is heavily linked to
the agricultural industry and has become highly politicized and can be argued that there is only
marginal improvement to existing fossil fuels, as it releases carbon dioxide into the atmosphere.
Having said that, biofuels, can be broken down into the following major categories:
• Ethanol generated from cereals, grains, sugar crops and other starches, which can be used
either as a motor fuel in pure form or blended in gasoline. Leading producers in the world are
the US and Brazil. For Asia, bioethanol produced from Cassava has been generated in
refineries in China.
• Bio-diesel generated from oil-seeds such as palm oil, jatropha, rapeseed, soybean and even
microalgae and converted into methyl esters and used in pure form or blended with diesel.
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The major market for bio-diesel is the EU, which the major global diesel market. Biodiesel
from Palm Oil is the leading process in Asia, with Malaysia and Indonesia the leading
producers. Jatropha is another biodiesel crop gaining acceptance in Asia, particularly in India,
as it does not require valuable land used for agriculture and can grow in poor non arable land.
Both Japan, China and Korea are researching the development and commercialization of
biodiesel generated from algae.
• Fuel generated from cellulosic materials, including grasses, trees, and various waste products
from crops, wood processing facilities and municipal solid waste. However, this process is yet
to become commercially viable.
6.3.2 Targets & Incentives
• China has a target of 10 million tonnes by 2020 for ethanol and 2 million tonnes for biodiesel
by 2020. China has a ban on biofuels produced from grains, so it appears that it will have to
import, due to the shortfall in domestic production to meet its 2020 targets.
• Japan has a target of 500,000 KL (0.43 million tonnes by 2010) and estimates a total capacity
of 5.2 million tonnes by 2030, if cellulosic ethanol is commercially viable.
• India has a 20% target by 2017, which equates to around 11 to 12 million tonnes of biofuel.
• South Korea has a 20% biodiesel mandate and 3% ethanol mandate by 2012, which should
increase demand to 0.7 million tones by 2012.
• Taiwan has a 1% mandate for biodiesel blending into diesel and 3% mandate for ethanol
blending into gasoline, which will equate to about 0.4 million tonnes of biofuel demand.
• Australia has in place blending mandates set at the state level, with Queenland, Victoria and
Western Australia setting a 5% target and NSW setting a 10% blending mandate for ethanol
by 2011. Demand is likely to increase to around 0.3 to 0.4 million tonnes of biofuel in 2010.
• New Zealand has a 2.5% blending mandate by 2010 that equates to around 0.14 million
tonnes per year demand for biofuels.
• Indonesia has a blending mandate for biofuels that increase to 20% by 2025 for biodiesel and
15% for ethanol. This equates to 2.7 million tonnes by 2020. However, it is not clear how
Indonesia can achieve this target, when there are no clear incentives for industry to produce
biofuels and gasoline is heavily subsidized.
• Malaysia has a capacity of 1.7 million tonnes, primarily for export. The Biofuel Act passed in
2007, will be the main driver for biofuel demand in Malaysia and mandate a 5% blend of palm
oil into diesel. However, the Act has been put on hold.
• Thailand has a 20% blending rate for gasoline and 2% blending rate for diesel. Demand is
expected to increase to 0.8 million tonnes in 2010.
Asia Pacific Clean Tech Handbook 171 of 348 31-May-10
• Philippines has a 5% blending mandate for ethanol and 2% blending rate for biodiesel (that
may be raised to 3%). Philippines has to import ethanol to meet demand and the government
is looking to increase domestic demand and to stop importation over fours years.
Asia Pacific Biofuel Market (Million Tonnes per year)
Country 2009 2010E 2015E 2020E
China 2.1 3.2 5* 12
Japan 0 0.43 0.8* 2*
S Korea 0.3 0.32 0.7 1*
Taiwan 0 0.4 0.4 0.4
India 0.12 0.2 5* 11.5
Indonesia 0.03 0.7 1.66 2.73
Malaysia 1.5 1.7 1.7 1.7*
Thailand 0.1 0.8 1* 1.2*
Philippines 0.37 0.4* 1.5* 4.8
Australia 0.22 0.31 0.3* 0.3*
NZ 0.14 0.14 0.15* 0.15*
Total 4.88 8.6 18.2 37.8
Source: EIA, Government Publications, Estimates
Asia Pacific Clean Tech Handbook 172 of 348 31-May-10
6.3.3 Biofuel Supply Chain
Figure 6.9 - Biofuel Process
Feedstock Fermentation Product By
Sugarcane Crushing Yeast, microbes Distillation Bioethanol Bagasse
Grain Milling Yeast, microbes Distillation Bioethanol Animal Feed
Waste
Cellulose Pre-treatment Hydrolysis, Distillation Bioethanol
Pre-treatment Methanol, Separation Biodiesel
Palm Oil
catalyst
Jatropha
Alage
Sugar to Bioethanol
In order to produce ethanol from sugar crops, the feedstock must first be processed to remove
the sugar through crushing, soaking and chemical treatment. The sugar is fermented to produce
alcohol, using yeasts and other microbes. A final step distils the ethanol to the desired
concentration and removes water to produce “anhydrous ethanol” that can be blended with
gasoline. In the sugar cane process, the crushed stalk of the plant, the “bagasse”, consisting of
cellulose and lignin, can be used for process energy in the manufacture of ethanol.
Grain to Bioethanol
The grain-to-ethanol production process starts by separating, cleaning and milling the starchy
feedstock. Milling can be “wet” or “dry”, depending on whether the grain is soaked and broken
down further either before the starch is converted to sugar (wet) or during the conversion process
(dry). In both cases, the starch is converted to sugar, typically using a high-temperature enzyme
process. The next stages in the process are similar to that for sugar crops, where sugars are
fermented to alcohol using yeasts and other microbes. A final step distils the ethanol to the
desired concentration and removes water. The grain to-ethanol process also yields several co-
products, such as protein-rich animal feed (e.g. distillers dry grain soluble, or DDGS) and in some
cases sweetener, although this varies, depending on the specific feedstock and process used.
Biodiesel
Biodiesel from fatty acid methyl esters (FAME) can be produced by a variety of esterification
technologies, though most processes follow a similar basic approach. First the oil is filtered and
pre-processed to remove water and contaminants. If free fatty acids are present, they can be
removed or transformed into biodiesel using pre-treatment technologies. The pre-treated oils and
Asia Pacific Clean Tech Handbook 173 of 348 31-May-10
fats are then mixed with an alcohol (usually methanol) and a catalyst (sodium or potassium
hydroxide). The oil molecules (triglycerides) are broken apart and reformed into esters and
glycerol, which are then separated from each other and purified to produce biodiesel.
Cellulose to Bioethanol
The first step in converting biomass to ethanol is pre-treatment, involving cleaning and
breakdown of materials. A combination of physical and chemical processes are applied, which
allows separation of the biomass into its cellulose, hemicellulose and lignin components. Some
hemicellulose can be converted to sugars in this step, and the lignin removed. Next, the
remaining cellulose is hydrolysed into sugars, the major ‘saccharification’ step. Common methods
are dilute and concentrated acid hydrolysis. Research is currently focused on the development of
biological enzymes that can break down cellulose and hemicellulose. The first application of
enzymes to wood hydrolysis in an ethanol process was to simply replace the cellulose acid
hydrolysis step with a cellulose enzyme hydrolysis step. This is called ‘separate hydrolysis and
fermentation’ (SHF). An important process modification made for the enzymatic hydrolysis of
biomass was the introduction of ‘simultaneous saccharification and fermentation’ (SSF), which
has recently been improved to include the co-fermentation of multiple sugar substrates. In the
SSF process, cellulose, enzymes and fermenting microbes are combined, reducing the required
number of vessels and improving efficiency. As sugars are produced, the fermentative organisms
convert them to ethanol. Finally, researchers are now looking at the possibility of producing all
required enzymes within the reactor vessel, thus using the same “microbial community” to
produce both the enzymes that help break down cellulose to sugars and to ferment the sugars to
ethanol. This is known as “consolidated bioprocessing” (CBP).
Algae to Biodiesel
Biofuel can be made from Algae and does not use land that would be used for agriculture. The
first step is photosynthesis, where the algae and other photosynthetic organisms capture carbon
dioxide and sunlight and convert it into oxygen and biomass. Studies show that algae can
produce up to 60% of their biomass in the form of oil. Companies looking to commercialise
Algae use Photobioreactors that pumpinutrient-laden water through plastic tubes that are
exposed to sunlight. There is also work to use Wastewater to provide the nutrients to Algae.
6.3.4 China
Market Size & Growth
Ethanol
China’s fuel ethanol production is forecast to rise to 1.70 million tonnes in 2009, an increase of
8%, compared to 2008 and is produced in 5 plants. Due to the ban by the government on use of
grain based feedstock, any new domestic production will need to come from other feedstock such
as cassava and jatropha.
Asia Pacific Clean Tech Handbook 174 of 348 31-May-10
Summary of Bioethanol Production in China
Location Company Name Principal Estimated 2008 2009 Supply Location
Feedstock Production
(Province, City) Production
(MT/year) Capacity
Heilongjiang, China Resources Corn/Rice 180,000 180,000 Heilongjiang
Alcohol Co.
Zhaodong
Jilin, Jilin Jilin Fuel Ethanol Corn 470,000 500,000 Jilin
Co.
Liaoning
Henan, Nanyang Henan Tian Guan Wheat 410,000 450,000 Henan
Fuel-Ethanol Co.
Hubei (9 cities)
Hebei (4 cities)
Anhui, Bengbu Anhui BBCA Corn 400,000 440,000 Anhui
Biochemical Co.
Shandong (7
cities)
Jiangsu (5 cities)
Hebei (2 cities)
Guangxi Guangxi COFCO Cassava 120,000 200,000 Guangxi
Bio-Energy Co.
Total 1,580,000 1,770,000
Source: USDA Foreign Agriculture Service
Biodiesel
Overall annual biodiesel production capacity in 2008 is estimated at 3 million tonnes, however
actual biodiesel production in 2008 is estimated at 250,000 MT. Feedstock for biodiesel
production is scarce in China, given that China is a net importer of vegetable oils such as soy and
palm oil for food consumption. Currently, the main feedstock is waste cooking oil from restaurants,
which is difficult to collect on a commercial scale for biodiesel production. Sinopec and CNOOC
have signed deals with Indonesia to produce biodiesel in Indonesia to make up for the shortfall in
domestic production.
Summary of Biodiesel Production in China
Company Name Location Production Capacity (MT)
China Biodiesel International Holding Fujian Province 100,000
Co., LTD
Wuxi Huahong Biofuel Company Jiangsu Province 100, 000
Hainan Zhenghe Biofuel Energy Hebei Province 300,000
Company
Gushan Environmental Energy Limited Sichuan, HeBei, Fuzhou, Beijing 340,000
Total 840,000
Source: USDA Foreign Agriculture Service
Asia Pacific Clean Tech Handbook 175 of 348 31-May-10
Summary of Jatropha Demonstration Plants in China
Participants Location Production Capacity (MT)
Petro China Sichuan Province 60,000
SinoPec Guizhou Province 50,000
CNOOC Hainan Province 60,000
Total 170,000
Source: USDA Foreign Agriculture Service
Drivers & Constraints
China announced a revised biofuel target in 2009, as part of its renewable energy push for 2020
and expects to increase production by 10 times for bioethanol and by 40 times for biodiesel. It
aims to increase this production from a variety of non-food related sources including cassava and
ethanol from cellulose, as the government has put a ban on grain based fuel ethanol production
in 2007.
However, the sector’s future domestic growth will be constrained by limited feedstock supplies,
which compete with land use for grain production for ethanol and competition for oilseed
feedstock for biodiesel. According to government policy, cassava, sweet potato, and sweet
sorghum are viewed as potential feedstock for new ethanol plants and Jatropha for biodiesel. Due
to the potential shortfall in domestic supply, China may need to import, if it wants to achieve its
2020 targets and the recent investments by Sinopec and CNOOC in Indonesia in 2009, reflect a
response to secure more supply from other countries.
China 2005 2010 2020
Bioethanol 1 MT 3 MT 10 MT
Biodiesel 0.05 MT 0.2 MT 2 MT
Source: Government Publications
Market Players & Competition
China’s major oil refiners, Sinopec, CNOOC and PetroChina are the major providers of biofuels to
the Chinese market.
• Sinopec <0386.HK>,<600028.SS> has teamed up with China's COFCO and Novozymes
<NZYMb.CO> for a biofuel project, will jointly invest up to 90 billion yuan ($13.17 billion) to to
collect agricultural waste, process it into bioethanol and distribute the clean fuel through petrol
stations. Sinopec has also built a biodiesel production plant with an annual output of 100,000
tons in Panzhihua, Sichuan Province, together with an auxiliary energy forest base of
400,000-500,000 mu (up to 128 square miles). It has also signed a deal in Indonesia worth
$5.5 billion to produce biodiesel from Palm Oil.
Asia Pacific Clean Tech Handbook 176 of 348 31-May-10
• China National Offshore Oil Corporation <CEO.N>, <0883.HK> has a biodiesel plant in
Dongfang City, Hainan Province with an annual output of 60,000 tons. Feedstock is supplied
from jatropha in Hainan.
• CNPC <0135.HK> signed a total cooperative framework agreement on the development of
biomass energy with China National Forest Bureau. Starting in 2007, both parties will launch
one jatropha curcas demonstrating base with a scale not less than the raw material supply
needed for an annual biodiesel output of 20,000-30,000 tons in Yunnan and Sichun
respectively. The scale of CNPC’s plantation base in Yunnan might reach 400,000 mu this
year. CNPC will actively participate in the development of biomass energy, said Jiang Jimin,
President of CNPC. Its annual production capacity of non-grain ethanol will exceed 2 million
tons, with an annual 200,000 tons of biodiesel from forests in a commercialized scale together
with more than 400,000 hectares of a raw material biomass energy base by the end of 2011.
Bioethanol
• China Resources Alcohol Corporation <Unlisted> (CRAC) is currently the fourth largest
ethanol producer in China and the owner of a cellulosic ethanol pilot demonstration plant.
The technology was provided by SunOpta BioProcess Group in September 2006 and the
plant began production of ethanol from local corn stover (stalks and leaves) in October 2006.
CRAC's goal is to install increase from 5,000 tonnes per year at the end of 2007 and
1,000,000 tonnes per year by 2012.
• Jilin Fuel Ethanol Co. <Unlisted> Jilin Fuel Ethanol Co. Ltd is the ethanol production unit in
China and was formed by China National Petroleum Corp., Jilin Food Stuff (Group) and China
Resources Corp.
• Henan Tianguan Enterprise Group Co., Ltd <Unlisted> is one of the five enterprises
authorized by National Government to produce fuel ethanol, with a capacity to produce
around 500,00 tones per year.
• Anhui BBCA Biochemical Co <000930.SZ> processes 3 million tons of corn per year, with
fuel ethanol, citric acid, L-lactic acid, ethylene oxide, amino acids, fats, fruit juice, gluten meal,
fiber feed and other products. For a detailed company profile, see Appendix A.
• Guangxi COFCO Bio-Energy Co. <Unlisted> is a subsidiary of COFCO and passed
technical appraisal for its 200 000 tonnes per year cassava-based fuel ethanol project in April
2009.
Biodiesel
• China Clean Energy <CCGY.OB> China Clean Energy through its wholly-owned subsidiary,
Fujian Zhongde Technology Co., Ltd. and Fujian Zhongde Energy Co., Ltd, is engaged in the
development, manufacturing, and distribution of biodiesel fuel and specialty chemical
products made from renewable resources. Since its inception, the Company has been
engaged in the manufacture of high-quality specialty chemical products from renewable
resources. Through its research and development efforts, the Company developed a
proprietary process for refining biodiesel fuel from waste grease and certain vegetable oils.
Asia Pacific Clean Tech Handbook 177 of 348 31-May-10
Using this proprietary process, the Company began producing biodiesel in 2005 and
commenced selling biodiesel commercially starting in December 2005. The Company has
completed construction of its 100,000 tonnes biodiesel plant in Jiangyin in China's Fujian
Province.
• Gushan Environmental Energy Limited <GU.N> is a biodiesel producer in China. The
Company produces biodiesel and by-products of biodiesel production, including glycerine,
plant asphalt, erucic acid and erucic amide. The Company sells its products in China to direct
users, including marine vessel operators, petroleum wholesalers and individual retail gas
stations. The Company primarily uses vegetable oil offal and used cooking oil to produce
biodiesel. The Company operates five production facilities, located in Beijing, Shanghai,
Sichuan, Hebei and Fujian, with an aggregate annual biodiesel production capacity was
340,000 tons. For a detailed company profile, see Appendix A.
• China Biodiesel International Holding Co., Ltd <CBI.L> is a renewable energy company
focused on the research and development, production and marketing of biodiesel as a
substitute for diesel or petrochemical chemicals. China Biodiesel has a couple of local
production companies in Longyan Zhuoyue New Energy Development Co., Ltd. and Xiamen
Zhuoyue Biomass Energy Co., Ltd., both of which locate in Fujian Province, South China, with
an annual production of around 50,000 tonnes.
• Hebei Zhenghe Biodiesel Co Ltd <Unlisted> produces around 300,000 tonnes per year in
Wuan city,Hebei province from waste edible oil,waste of pressed oil and jatropha.
• Fujian Zuoyue New Energy Co.Ltd <Unlisted> is a principal biodiesel producer in China
with an operational capacity of 20000 tonnes/year.
• Wuxi Huahong Biofuel Company <Unlisted> produces around 100,000 tonnes per year.
Algae
• Guodian Power Company <600795.SS> is one of the largest power producers in China. It
signed a $10million deal with Israeli firm Seambiotic entering into a joint venture to
commercialize the cultivation of microalgae using carbon dioxide captured from its power
plants.
• Shanghai Jun Ya Yan Technology Development Company <Unlisted> has developed an
agreement with PetroSun whereby it will provide $40 million (US) for the construction of an
algae farm facility inside China and split profits with PetroSun, in exchange for PetroSun’s
propriety technology and expertise.
Asia Pacific Clean Tech Handbook 178 of 348 31-May-10
6.3.5 Japan
Market Size & Growth
Japan has a biofuel target of 500,000 KL/year for Crude Oil equivalent by 2010. This is split into a
target for ethanol of 210,000KL/year and bio-diesel of 290,000KL/year. A proposal in 2007, states
that a target of 6 million KL/year can be achieved by 2030.
Drivers & Constraints
The “Biomass Nippon Strategy,” was unveiled by the government in December 2002 and
updated in 2008. Given Japan’s limited agricultural resources, the focus was on cellulosic biofuel
as the future for its biofuel production. Several ministries are involved in setting Japan’s bio-fuels
policy: The Ministry of Economy, Trade and Industry (METI), the Ministry of Agriculture Forestry
and Fisheries (MAFF), the Ministry of Environment (MOE), the Ministry of Education, Culture,
Sports, Science and Technology (MEXT), the Ministry of Land, Infrastructure and Transport
(MLIT), and the Ministry of Internal Affairs and Communications (MIC).
In February 2007, the Executive Committee on Biomass Nippon Strategy released a report titled
“Boosting the Production of Biofuels in Japan.” The report presented to the Prime Minister states
that Japan will be able to produce 6 million KL of biofuels by 2030.
In 2008 the government introduced tax incentives to encourage the use of bioethanol. If a fuel
contains 3% bioethanol, the gas tax is lowered by ¥1.6 per liter (approximately USD .02) and is
effective until March 31, 2013.
With respect to bio-diesel, the government decided that the blending ratio of Fatty Acid Methyl
Ester (FAME) into diesel should be less than 5%, in order to ensure that the fuel meets safety
and gas emissions standards for existing vehicles in the market.
Asia Pacific Clean Tech Handbook 179 of 348 31-May-10
Market Players & Competition
The major players in the biofuel sector in Japan are Mitsubishi Heavy Industries and Nippon Oil,
working in private public partnerships with various agricultural co-operative across the country.
Ethanol
Japan has started a number of public private partnerships to promote the production of bioethanol.
The two projects are:
Grain Based
• The public-private partnership is between Mitsubishi Corp. and Hokuren (the federation of
agricultural cooperatives) in Shimuzucho, Hokkaido. These are expected to become the first
commercially-viable ethanol plants in Japan with a planned annual production of 15,000 KL,
which will be used to produce ETBE. A third facility in Obihiro City, Hokkaido is run by the
Tokachi Foundation and is supported by prefectural and national funds. The foundation runs a
very small still that converts Hokkaido-grown wheat into ethanol to fuel a single test vehicle.
The equipment is all state of the art, expensive, and on a miniature scale. The Foundation
says that this is a proof of concept project intended simply to see whether they could produce
ethanol from wheat to fuel the vehicle.
• A public-private partnership is with Zen-noh in Niigata. It uses high yield rice grown
specifically for biofuel production (800 kg/1000 m2 vs 500 kg/m2 for food use rice). The
project began in 2006 using fallow land set aside in MAFF’s acreage reduction plan. Early this
year the facility has begun to produce 1000 kl of bioethanol. The ethanol is used as part of an
E3 blend and started to be sold at 20 affiliated gas stations around Niigata prefecture this
March.
• In addition, there are ten more ethanol facilities nationwide including one in Okinawa using
sugar cane as the fuel stock. All those are small-scale built for bioethanol verification projects
supported by the government.
Cellulose
• Mitsubishi Heavy Industries <7011.T> has constructed a bioethanol demonstration plant
located in Hyogo Prefecture to produce ethanol for automobile fuel from soft cellulose
vegetation, such as rice straw and wheat straw that do not compete with food supply. The
plant was developed jointly with Hakutsuru Sake Brewing and Kansai Chemical. The
company expects the biofuels produced could be sold at a price less than JPY90 (USD 1.04)
per litre by the end of 2010.
• Nippon Oil <5001.T> is also leading a consortium of Japanese firms, including Mitsubishi
Heavy, Toyota and others to develop low-cost cellulosic ethanol. The consortium, which also
includes Toray Industries, Kajima and Sapporo Breweries subsidiary Sapporo Engineering,
aims to produce 200m litres of bioethanol per year by March 2014 at a cost of JPY 40 (USD
0.44) per litre by 2015.
• Biomass Energy Corporation <Unlisted> is a technology leader in the field of Biomass to
Liquid (“BTL”) gasification. BME’s technology enables the conversion of cellulose biomass
Asia Pacific Clean Tech Handbook 180 of 348 31-May-10
(also known as inedible biomass) into green fuels such as liquefied bio-methanol without the
participation of oxygen. Transcu is the major shareholder of the company.
Biodiesel
In May 2006, Nippon Oil Corporation <5001.T> and Toyota Motor Corporation announced that
they jointly developed a palm oil-based bio-diesel that performs comparably to gasoline. They
claim to have removed the oxygen from the palm oil, which would normally cause the fuel to
degrade. Nippon Oil aims to develop a commercially viable bio-diesel by 2010.
• Nippon Shokubai Co. Ltd <Unlisted> has announced in September 2009, the development
of a high-performance catalyst for manufacturing acrolein from glycerol obtained as a by-
product from the manufacture of biodiesel fuel from vegetable oils. According to Nippon
Shubakai, the acrylic acid from the new manufacturing method can reduce emission of carbon
dioxide by about a third compared to the petroleum-sourced raw material. The company is to
build a pilot plant for this technology in early 2011 at its site in Himeji, Japan where the
company’s acrylic acid plant is located.
6.3.6 South Korea
Market Size & Growth
There are 8 registered biodiesel facilities in Korea with a total production capacity of a little over
300,000 tons annually. MOCIE forecasts that biodiesel production will expand to 700,000 tons by
2012/13.
Production
Korea’s Biodiesel Mid & Long Term Production Plan
Year % Blend KL Tonnes
2007 0.5 % 90,000 79,200
2008 1.0 % 180,000 158,400
2009 1.5 % 270,000 237,600
2010E 2.0 % 360,000 316,800
2011E 2.5 % 450,000 396,000
Source: The Ministry of Knowledge and Economy (MKE)
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Korea’s Biodiesel Producers
Company Name Annual Capacity Feedstock
(KL)
KAYA Energy Co., Ltd. 100,000 Soybean Oil & recycled cooking oil
Ecoenertech 33,000 Recycled cooking oil
Dansuk Industrial Co., Ltd. 60,000 Soybean oil
BND Energy 50,000 Soybean Oil & recycled cooking oil
3M Safety 48,000 Soybean oil
BDK 33,000 Soybean Oil & recycled cooking oil
Mudeung Bioenergy 6,000 Recycled cooking oil
Biodiesel Energy 9,000 Soybean oil
CNG 9,000 Recycled cooking oil
Samwoo Oil Chemical Co., Ltd. 12,000 Recycled cooking oil
Next Oil 99,000 Soybean oil
Enertech Inc. 80,000 Palm oil & Soybean oil
Bio Doil Korea 12,000 Soybean Oil & recycled cooking oil
SK Chemicals 34,000 Palm oil
Aekyung Petrochecmical Co., Ltd. 32,000 Soybean oil
BND Kunsan 50,000 Soybean Oil & recycled cooking oil
Total 667,000
Source: The Ministry of Knowledge and Economy (MKE)
Drivers & Constraints
South Korea is planning to introduce a renewable fuel standard system, which would mandate the
use of biofuels for vehicles, by 2013. Under the new system, the minimum proportion of biodiesel
fuel contained in gasoline would grow to double digits. Currently petrol in Korea only contains
1.5% of vegetable oil or animal fat-based diesel fuel. If successful the move would be a
breakthrough for the use of renewable energy in Korea.
When a pilot scheme was launched by the Ministry of Commerce, Industry and Energy
(MOCIE) in 2002, to ensure that petrol contained 20% biodiesel fuel, it was met by strong
opposition from oil refiners and carmakers regarding its quality. In 2007, the government had
planned to raise the content ratio to 3% by 2012.
Market Players & Competition
Ethanol
• Kumho Petrochemical <011780.KS> and biotechnology firm Biosystems have signed an
agreement to build a 125m-litres per year ethanol plant in South Jeolla Province. The USD
176m plant will be constucted in the city of Yeosu by 2013, with a 4000-litres per day pilot
plant to be built by 2011.
Asia Pacific Clean Tech Handbook 182 of 348 31-May-10
Biodiesel
• Next Oil Co. Ltd. <Unlisted> plans to produce about 200 metric tons of biodiesel daily in the
Philippines, the same processing capacity at its Korean facilities.
• Enertech Inc. <Unlisted> is a Biodiesel Manufacturer in Korea with annual capacity of 70,000
MT.
6.3.7 Taiwan
Market Size & Growth
Taiwan’s annual motor vehicle demand for gasoline is 10.5 million KL and 4.5 million KL for diesel.
Taiwan’s demand for crude oil is met by imports and it imports 1.2 million barrels of crude oil a
year.
Taiwan has set a compulsory goal to use B1 diesel starting July 2008 and B2 diesel in 2010.
Taiwan has also set a goal to use E3 gasoline to replace MTBE in 2011. This equates to a
demand for biodiesel is estimated at 45,000 KL for B1 diesel and 315,000 KL for E3 in 2011.
There are four biodiesel plants manufacturing biodiesel and there are several biodiesel plants are
under construction.
While there is no domestic ethanol produced from feedstock, Taiwanese authorities support
several bio-fuels research projects. They are considering ethanol produced from sugarcane,
sweet potato and other biomass from agricultural wastes and the MOEA pilot scheme of
3,000T/year.
Drivers & Constraints
Small and fragmented land holdings in Taiwan greatly increase the cost of field crop production,
harvest, and transport. This will make it difficult to develop a viable bio-fuels sector in Taiwan,
without large subsidies. In-spite of these obstacles, Taiwan has developed a bio-fuels policy that
requires certain levels of biofuel to be blended into existing gasoline and diesel supplies.
The demand for biodiesel is estimated at 45,000 KL for B1 diesel. However, Taiwan only
produces 6,500 KL of biodiesel from recycled cooking oil. The rest demand must be sourced from
domestically grown energy crops. Taiwan has selected soybean and sunflower as two major
energy crops to grow on fallow rice paddy fields. Taiwan’s Council of Agriculture (COA)
provides supports to farmers per hectare NT$45,000 according to the current green payment to
farmers who set aside their rice paddy for fallowing and oil seeds are sold to contracted biodiesel
plants at NT$12 per kilogram according to current soybean import price level.
Market Players & Competition
No companies identified in this sector.
Asia Pacific Clean Tech Handbook 183 of 348 31-May-10
6.3.8 India
Market Size & Growth
Bioethanol
India is one of the worlds leading producers of sugarcane and sugar. The government is trying to
encourage sugarcane juice/sugar molasses usage for ethanol production to diversify farmer’s
income stream. Current production is only around 50 million liters. However, production would
need to increase to 1-2 million tonnes of ethanol to meet the new target.
Biodiesel
Bio-diesel production efforts are focused on using non-edible oils from plants such as Jatropha
and other tree borne oilseeds. The focus is to encourage the use of wastelands and other
unproductive land for the cultivation of these relatively hardy “new” bio-fuel crops. An estimated
55.3 million hectares are considered wasteland in India, which could be brought into productive
use by raising bio-diesel crops.
There are about 20 large capacity plants (one to fifty tons per day) that produce bio-diesel from
edible oil waste (unusable oil fractions), animal fat and non-edible oil with production estimates
ranging anywhere between 100 to 200 million liters per year. However, production would need to
increase to 10 million tonnes of biodiesel to meet the new target.
Drivers & Constraints
The Indian government is expected to approve the national biofuels policy in 2009 to target 20%
blended biodiesel by 2017.
Ethanol
The commercial production and marketing of ethanol-blended gasoline started in January 2003,
when the Ministry of Petroleum and Natural Gas launched the first phase of the Ethanol
Blended Petrol (EBP) program that mandated blending of five percent ethanol in gasoline in nine
states (out of a total of 29) and four union territories (UT) (out of a total of 6).
The second phase of the EBP program was announced in September 2006 that mandated 5%
blending of ethanol with gasoline, subject to commercial viability in 20 states and eight Union
territories. This involved the production of 1.4 billion liters of ethanol. However, as of April 2009
only 35% had been supplied.
The government had initially planned to launch the third stage of the EBP from October 1, 2008 to
raise the percentage of the blend ratio. However, due to the short supply of feedstock, the
government has deferred the implementation of the third phase of the EBP. Currently, the
government does not allow use of imported ethanol for the EBP program as the focus is on
developing domestic production capacities.
Biodiesel
In April 2003, the government launched a National Mission on Bio-diesel that identified Jatropha
as the most suitable tree-borne oilseed for the production of bio-diesel, and focused on promoting
plantations of Jatropha on “wastelands”. The government’s Planning Commission set an
Asia Pacific Clean Tech Handbook 184 of 348 31-May-10
ambitious target of 11.2-13.4 million hectares to be planted with Jatropha by 2012, in order to
produce sufficient bio-diesel to blend at 20% with petro-diesel.
New Policy
The National Bio-fuel Policy formulated by the Ministry of New and Renewable Energy has been
announced on December 2009. Key features of the proposed new policy are:
• An indicative target of 20% blending of petrol and diesel with bio-fuels by 2017
• Promote biodiesel production from non-edible oilseeds in waste/degraded/marginal lands
• Discourage plantations in fertile, irrigated premium farm land
• Focus on domestic production of bio-diesel feed stock and not permit imports
• Recommend minimum support prices for bio-fuel crops like Jatropha and other non-edible
oilseeds with provisions of periodic revisions
• Recommend a minimum purchase price for the purchase of ethanol based on the cost of
production and import price. The biodiesel price will be based on the prevailing price of diesel
• Take steps to ensure unrestricted movement of bio-fuels within and outside states.
• Removal of taxes and duties on bio-diesel
• Set up of an inter-ministerial National Bio-fuel Coordination Committee under the
Chairmanship of the Prime Minister and a Bio-fuel Steering Committee under the
Chairmanship of the Cabinet Secretary for high level coordination and policy guidance or
review on various aspects of bio-fuels development in India.
Market Players & Competition
• Alfa Laval <ALFA.BO> supplies a comprehensive range of equipment for the production of
both ethanol and biodiesel.
• Tree Oils India Ltd. <Unlisted> is established to build up environment friendly and
sustainable energy system based on plant sources, contribute to waste lands utilisation and
rural women employment and promote ethics and self reliance. TOIL is primarily engaged in
manufacture of Biodiesel from Non-Edible Tree Oils such as Jatropha and Pongamia.
• Praj Industries <Unlisted> is a global Indian company that provides offers process
equipment & systems for bio-ethanol, bio-diesel, and brewery plants.
6.3.9 Singapore
Market Size & Growth
Singapore is an island state, with only 6 million inhabitants, with little or no land available to grow
crops for biofuel. However, it plans to act as a refinery hub for Asia by refining palm oil and
jatropha from neighbouring countries such as Indoniesia and Malaysia for export across the
Asia Pacific Clean Tech Handbook 185 of 348 31-May-10
region and to Europe. With the Neste Oil production facility to open in 2010, this will take
Singapore’s biofuel production capacity to over 1 million tones per year.
Drivers & Constraints
Over the past few years, the focus in Singapore has been to kick-start biodiesel production for
export. The country aims to produce higher quality biofuels and use alternative non-food
feedstock, such as palm oil and jatropha.
Singapore is close to countries that provide the source of raw materials, thus simplifying the
process of obtaining feedstock. In addition, the well-connected global shipping routes would
facilitate export of the processed biofuels to the major European markets. Companies would also
be able to benefit from the many free trade agreements Singapore has signed with our foreign
partners.
Market Players & Competition
• Neste Oil <NES1V.HE> has already invested S$1.2 billion to establish the world’s most
advanced and largest commercial-scale biodiesel production facility in Singapore and is
expected to commence operations in 2010. Finland’s Neste Oil announced plan to build the
world’s largest biofuel plant with a design capacity of 800,000 tons per year in Singapore.
Expected to be completed in 2010, the plant will rely on palm oil feedstock from Malaysia and
Indonesia.
• Continental BioEnergy <Unlisted>, a Singapore company, opened a biodiesel plant in
September 2006, with production capacity of 150,000 tons a year.
• Peter Cremer <Unlisted> is building a Singapore plant with a planned output of 200,000 tons
a year.
• JOil (S) Pte. Ltd <Unlisted> engages in the production of jatropha seeds which produce 40%
oil, used in diesel engines after crushing and processing. The company is based in Singapore.
JOil (Singapore) Pte Ltd. operates as a subsidiary of Temasek Life Sciences Laboratory
Limited.
• Golden Agri-Resources Ltd <GAGR.SI> includes cultivating and harvesting oil palm trees,
processing fresh fruit bunches (FFB) into crude palm oil (CPO) and palm kernel (PK), and
refining CPO into industrial and consumer products, such as cooking oil, margarine and
shortening. During the year ended December 31, 2008, the Company acquired five estates in
Kalimantan with total planted area of 11,000 hectares. In September 2008, the Company,
through its wholly owned subsidiary, Asia Palm Oil Investment Pte. Ltd. (APOI), acquired Eco
Investment Limited (Eco Investment). In October 2009, it incorporated a wholly owned
subsidiary, Sinar Mas Natural Resources (China) Investment Co., Ltd (SNC). In November
2009, the Company announced the incorporation of a wholly owned subsidiary, Easton
Capital Resources Pte. Ltd. (ECR).
• Wilmar International <WLIL.SI> is engaged in providing management services to its
subsidiary companies. The Company operates in four segments: merchandising and
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processing, consumer products, plantation and palm oil mills, and others. The merchandising
and processing segment includes merchandising of palm oil and laurics-related products. The
consumer products segment bottled oil business in the People’s Republic of China, Vietnam
and Indonesia. The plantation and palm oil mills segment is engaged in oil palm cultivation
and milling. The other segment includes the business of manufacturing and distribution of
fertiliser products and ship-catering services.
6.3.10 Indonesia
Market Size & Growth
Currently, there is only one producer which still actively produces biofuel, but the production is
well below plant capacity. The installed capacity is approximately 1.5 MMT/year, but reportedly is
operating at approximately 7,000 MT/month.
Biodiesel from Palm Oil was 20,750 MT in 2009 and produced 27,000MT of bioethanol from
molasses. A total of 70,000MT of biodiesel was exported in 2009.
Drivers and Constraints
Biodiesel Blending Mandates
Sector Jan 2009 Jan 2010 Jan 2015 Jan 2020 Jan 2025
Transportation (Public) 1% 2.5% 5% 10% 20%
Transportation (Private) 1% 3% 7% 10% 20%
Commercial & Industries 2.5% 5% 10% 15% 20%
Power plants 0.25% 1% 10% 15% 20%
Source: Regulation No. 32/2008 of Ministry of Energy and Mineral Resources
Bioethanol Blending Mandates
Sector Jan 2009 Jan 2010 Jan 2015 Jan 2020 Jan 2025
Transportation (Public) 1% 3% 5% 10% 15%
Transportation (Private) 5% 7% 10% 12% 15%
Commercial & Industries 5% 7% 10% 12% 15%
Power plants
Source: Regulation No. 32/2008 of Ministry of Energy and Mineral Resources
The use of biofuel in power plants as of December 2008 has reached 0.1%. Mandated levels
within the Ministerial Decree are 0.25% in 2009; 1% by January 2010; 10% by January 2015;
15% by January 2020; and 20% by January 2025.
This would equate to roughly 4 to 4.5 million MT per year by 2025, from a current consumption of
around 27,000 MT in 2009. This is unlikely to be achieved, unless there are incentives for
producers to make a profit in producing biofuels.
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Estimates on Biofuel Requirements
Sector Usage (KL) 2010 2015 2020 2025
Industry 5,203,479 520,348 605,166 780,522
Electricity 3,309,124 330,912 496,369 661,825
Households 5,043,051
Transportation 20,788,075 1,039,404 2,078,808 3,118,211
Total (KL) 786,000 1,890,664 3,180,343 4,560,558
Total (MT) 691,682 1,663,790 2,733,108 3,919,250
Source: Estimates
In response, the Indonesian government is planning to set aside USD 150m as subsidies for
biofuels in 2010, which it hopes will raise production levels. The ministry of energy said the
subsidies are necessary, as crude oil prices are rising, but production is not enough when
biofuels becomes mandatory. The government plans to make it mandatory for a 1% bioethanol
blend and up to a 5% biodiesel blends from 2010. It estimates that the country would need about
214m litres and 562m of biodiesel when the targets kick in – 786,000KL.
The subsidies will be given to state oil and gas company PT Pertamina, the sole distributor of
subsidised fuels, via its pump stations, to help the company to purchase biofuels from the
producers. The government said that it will wait until it has finalised a regulation that sets out the
rules on the categories of fuels to be subsidised, before agreeing to the subsidy levels.
Market Players & Competition
• Puri Usaha Kencana <Unlisted> will cooperate with Sinopec to set up biofuel plants and to
grow energy crops in Indonesia, with an investment of US$5 billion. The plants and
plantations are set to be located in Indonesia's Papua and East Kalimantan regions, and will
be used for extracting biodiesel from crude palm oil and jatropha curcas oil.
• China National Offshore Oil Corporation (CNOOC) signed a Memorandum of
Understanding with the Indonesian government under which it intends to invest $5.5 billion in
the development of the biofuel sector in Indonesia, announcing the establishment of 3
biodiesel processing plants in Kalimantan
• Bronzeoak plans to invest US$270 million to produce ethanol from sweet sorghum.
Bronzeoak will cooperate with the Satria Group to build a factory and plantation in the
regency of Belu and Central Timor in East Nusatenggara
• The Sampoerna Group plans to construct an ethanol plant in Wonogiri, Central Java.
Besides direct foreign investments, Indonesian (state-owned) Banks are to disburse 25 trillion
rupiah (US$2.7 billion) in loans to finance local farmers that help the biofuel projects.
The Bandung Institute of Technology (ITB), Bogor Institute of Agriculture (IPB), the
Research and Development Division of the Ministry of Energy and Mineral Resources are
Asia Pacific Clean Tech Handbook 188 of 348 31-May-10
amongst the scientific institutions that signed the Memoranda of Understanding to support
biofuels projects in Indonesia.
6.3.11 Malaysia
Market Size & Growth
Malaysia, with its large and growing palm oil industry, has the potential to play a major role in the
world biofuel market. Malaysia is currently the world’s number two producer, after Indonesia and
remains the top exporter of palm oil.
Ethanol
Ethanol production is commercially insignificant in Malaysia. There is an opportunity for ethanol
production from oil palm biomass but the technology is yet to be commercialized. Ethanol
consumption is unlikely as retail gasoline prices are subsidized.
Biodiesel
According to the Malaysian Palm Oil Board’s (MPOB), there are about 12 Bio-diesel plants, with
a combined capacity is about 1.5 million tons. In 2008, bio-diesel output increased by only 5%
due to high prices for feedstock. Post expects a 30% increase in 2009 as companies are cranking
up their machines when the margins started to appear during the latter half of 2008.
Bio‐diesel plants in Malaysia
Company Location Capacity (MT)
Carotino Sdn.Bhd Pasir Gudang, Johor
Malaysiavegetable Oil Refinery Sdn. Pasir Gudang, Johor
Bhd.
PGEO Bioproducts Sdn. Bhd. Pasir Gudang, Johor
Vance Bioenergy Sdn. Bhd. Pasir Gudang, Johor
Mission Biotechnologies Sdn. Bhd. Petaling Jaya, Selangor
Carotech Bio-Fuel Sdn. Bhd. Ipoh, Perak
Lereno Sdn. Bhd. Setiawan, Perak
Golden Hope Biodiesel Sdn. Bhd.- Carey Island Pulau Carey,
Selangor
Golden Hope Biodiesel Sdn. Bhd.- Panglima Garang Teluk Panglima 390,000
Garang, Selangor
Zoop Sdn. Bhd. Shah Alam, Selangor
Global Bio-Diesel Sdn. Bhd. Lahad Datu, Sabah
SPC Bio-diesel Sdn. Bhd. Lahad Datu, Sabah
Total 1,500,000
Source: USDA
Another four plants with a combined capacity of 190,000 tons was expected to commence
commercial production by the end of 2009.
Asia Pacific Clean Tech Handbook 189 of 348 31-May-10
Drivers & Constraints
Malaysia is one of the leading producers of Palm Oil, which is a main source of biodiesel for the
European markets. The use of Palm Oil has been very contentious, with bans threatened on the
import of biodiesel from Malaysian and Indonesia, due to the impact on the rainforest.
The Biofuel Industry Act passed in 2007 is the main driver for the development of the biofuel
domestic industry.
Market Players & Competition
• Golden Hope Biodiesel <Unlisted> Golden Hope has 4 biodiesel plants producing a total of
390,000 tonnes. The plants include the plant at Teluk Panglima Garang, Banting which is
operated by its wholly owned subsidiary Rubiatec Sdn Bhd; the plant at East Estate, Carey
Island; the plant at Bintulu, Sarawak and a plant at Unimills in The Netherlands.
6.3.12 Thailand
Market Size & Growth
The Thai Government has licensed 45 manufacturing companies to produce ethanol, with a
combined production capacity of around 12 million liters/day. Of this, 8.4 million liters are
cassava-based ethanol from 24 plants and the balance comes from molasses/sugar-based
ethanol (2.2 million liters/day) from 12 plants and tapioca/molasses-based ethanol (1.4 million
liters/day) from 9 plants.
Summary of Ethanol Production in Thailand in 2008
Feedstock Number of ML/day Number of ML/day % Utilization
Plants Plants Online
Cassava 24 8.4 0%
Sugar Molasses 12 2.2 10 1.45 66%
Tapioca Molasses 9 1.4 1 0.15 11%
Total 45 12.0 11 1.6 13.3%
Source: USDA, Estimates
Projected Growth in Demand for Biofuels in Thailand
Biofuel 2008 (KL/year) 2010/11 (KL/year)
Ethanol 90,000 450,000
Biodiesel 31,000 492,000
Total 121,000 942,000
Total MT 104,000 810,000
Source: USDA, Estimates
Asia Pacific Clean Tech Handbook 190 of 348 31-May-10
However, only 11 plants had come online in 2008, with a production capacity of around 1.6 million
liters/day, with only a total utilization of around 13%. Reduced capacity was mainly due to high
prices of feedstock.
Summary of Ethanol Production Capacity in Thailand
Company Location Feedstock Capacity Actual
(L/day) Production
Ponwilai Ayudhaya Molasses 25,000 -
Thai Alcohol Nakornprathom Molasses 200,000 104,381
Thai Agro Supanburi Molasses 150,000 109,842
Thai Nguan Ethanol Khonkean Tapioca 130,000 -
Khonkean Alcohol Khonkean Cane/Molasses 150,000 129,551
Thai Sugar Ethanol Kanchanaburi Cane/Molasses 100,000 102,520
Petro Green Chaiyapoom Cane/Molasses 200,000 162,757
K.I. Ethanol Nakornratchasima Cane/Molasses 100,000 89,029
Ekarat Pattana Nakornsawan Molasses 200,000 -
Thai Ruangruong Energy Saraburi Cane/Molasses 120,000 28,280
Petro Green Kalasin Cane/Molasses 200,000 160,653
E.C. Business Partners Rayong Tapioca 150,000 n/a
Fha-kwantip Prajinburi Tapioca 60,000 n/a
Ratchaburi Ethanol Ratchaburi Tapioca/Molasses 150,000 Q3-2008
E.S. Power Srakaew Cane/Molasses 150,000 Q3-2008
Srima Inter Products Chachoengsao Cane/Molasses 150,000 Q4-2008
Supthip Lopburi Tapioca 200,000 Q4-2008
P.S.C. Starch Products Chonburi Tapioca 150,000 Q2-2008
T.P.K Ethanol Nakornratchasima Tapioca 340,000 Q3-2008
Impress Technology Chachoensao Tapioca 200,000 Q4-2009
Boonanek Nakornratchasima Tapioca 350,000 Q2-2009
Double A Ethanol Srakaew Tapioca 500,000 Q1-2009
Total 3,975,000
Source: USDA
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Biodiesel
At present, nine B100 biodiesel plants are operating at half of their production capacity of 2.19
liters/day. Although the current government policy on mandatory B2 production warrants sale
quantities and prices to manufacturers, they are still concerned that CPO production could be a
bottleneck for expanding.
Summary of Biodiesel Production Capacity in Thailand
Plant Production Capacity (liters/day)
BangChak Petroleum Plc. 50,000
Bio Energy Plus Co.,Ltd. 100,000
Sun Tech Palm Oil Co.,Ltd. 200,000
Pathum Vegetable Oil Co.,Ltd. 300,000
Bangkok Alternative Energy Co.,Ltd. 200,000
Green Power Corporation Co.,Ltd. 200,000
A I Energy Co.,Ltd. 250,000
WeeraSuwan Co.,Ltd. 200,000
Thai Oleo 650,000
Total 2,185,000
Source: USDA
Drivers & Constraints
Ethanol
As of January 1, 2008, the Thai Government launched E20 gasoline following a surge in E10
gasoline sales in 2007. According to the Department of Alternative Energy Development and
Efficiency, Ministry of Energy, E20 gasoline consumption is estimated at 0.25 million liters/day in
2008, and is forecast to increase to 1.23 million liters/day (450 million liters per year) or 5% of
total gasoline consumption by 2011. Targets are expected to increase to 9 million liters/day by
2022.
Biodiesel
As of February 1, 2008 the Thai Government began to enforce compulsory production of B2
biodiesel throughout the country. The requirement has made a noticeable impact on demand for
domestic palm oil, the only raw material for B100 biodiesel production at the moment. It is
estimated that demand for crude palm oil and stearin (palm oil by-product) will be 492 million
liters per year by 2010, as compared to only 31 million liters in 2006. Targets are expected to
increase to 1.2 million liters/day by 2022.
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Market Players & Competition
Ethanol
• Thai Alcohol Co Ltd <Unlisted> sells Ethanol locally to oil companies such as Petroleum
Authority of Thailand Public Co., Ltd., Bang Chak Petroleum Public Co., Ltd., Thai Oil Public
Co., Ltd., Shell Thailand Co., Ltd., Esso (Thailand) Public Co., Ltd., and Star Petroleum Co.,
Ltd. for blending with Benzene to produce Gasohol.
• Double Ethanol Co Ltd <Unlisted> invested 3.69 billion baht to produce ethanol with a
capacity of 165 million liters/year, and bio gas of 13.6 million cubic meters/day at a plant
located in 304 Industrial Estate in Prachinburi.
• Bioethanol (Thailand) Co.,Ltd invested 1.3 billion Baht in producing ethanol with a capacity
of 72 million liters/year and organic fertilizers 21,600 tons/year at a plant located in Chonburi.
• Thai Agro Energy Public Co., Ltd <Unlisted> invested 1.76 billion Baht in ethanol
production with an annual capacity of 66 million liters at a plant located in Suphanburi.
• Power Agricutural Industry Co., Ltd <Unlisted> invested 4.3 billion Baht in producing
ethanol with a capacity of 231 million liters/year at a plant located in Ubolratchathani.
• Boonanek Co.,Ltd. <Unlisted> invested 5.38 billion Baht in producing ethanol with a capacity
of 346.5 million litres/year at a plant located in Nakornratchasrima.
Biodiesel
• Lam Soon Public Company Limited <LST.BK> is a Thailand-based company. It is engaged
in the production, distribution and wholesale of refined palm oil and related products under the
brand names Yok and others. It manufactures extracted and refined products, including
coconut and palm kernel, vegetable oils, margarine, shortening and specialty vegetable fats,
and markets a variety of consumer products, such as fish sauce and soy sauce products. It
operates a crushing mill and a palm oil refinery, and it has a production capacity of 700 tons a
day. The Company's products are sold domestically, as well as exported to foreign countries.
It has operations in Singapore, Malaysia, Thailand, Vietnam and Hong Kong. Lam Soon
(Thailand) has two direct subsidiaries, United Palm Oil Industry Public Co. Ltd. and Universal
Food Public Co., Ltd.
6.3.13 Philippines
Market Size & Growth
Ethanol
To date, there are only 2 ethanol production facilities in commercial operation. Both facilities have
a combined annual production capacity of about 39 million liters. At the current mandated 5%
ethanol blend, however, overall demand for bio-ethanol in 2009 is estimated at around 208 million
liters. The Philippines has been importing bio-ethanol to meet the mandated bio-ethanol blend of
5%. However, as part of the Biofuel Act, companies can only import ethanol for four years
(through to 2013) and will need to source ethanol from domestic supplies. After 2013, the
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mandated percentage blend will be reduced to that level local production can only supply. The
final blend percentage is to be decided by the National Bio-Fuels Board (NBB). The probability
of this happening is high given the inadequate number of bio-ethanol extraction plants currently in
operation or under construction.
Biodiesel
There are currently 12 bio-diesel plants capable of producing 395 million liters annually. At a 2%
blend, an estimated 140 million liters of CME is required annually. The excess CME production
capacity is indicative of the industry’s potential as a CME exporter although this scenario will
largely be determined by how oil prices behave relative to prices of CNO. The surplus capacity is
also likely the basis for the Philippine Department of Energy (DOE)’s consideration of
increasing the required bio-diesel blend to 3% from the present 2% by end of 2009. Domestic
coconut oil refiners, on the other hand, are discussing with the Philippine government the
possibility of promoting an even higher blend of 5% bio-diesel blend.
Market Drivers & Constraints
Ethanol
From February 2009, a 5% ethanol mandate will be implemented in the Philippines. At the
moment, oil firms are importing ethanol to help meet the mandate, as there is no domestic
operating plant. Chevron plans to buy ethanol from domestic sources when the first production
plants start operating, starting from mid-2009
Most of the USD 20m will go towards making its terminals compatible with E10 ethanol. It is
seeking to increase the number of stations that carry its E10 brand to 35 from 22 now. It hopes to
increase this further to 400 retail stations by February. The company plans to invest more once
the mandated blending ratio under the Biofuels Act of 2006 becomes higher.
Ethanol feedstock currently being investigated are sugarcane, sweet sorghum and cassava to
increase domestic production.
Biodiesel
The Philippine Department of Energy (DOE) increased the biodiesel blend to 3% in February
2009, from the 2% originally planned. The DOE stated that the 13 biodiesel manufacturers could
produce up to 326m liters, which is enough to cover the 3% blend.
Coco-methyl ester (CME) derived from coconut oil (CNO) is the feedstock currently used for
Philippine bio-diesel production the country being the largest CNO producer in the world. The
government has also announced plans to launch massive propagation and cultivation of jatropha
covering around 2 million hectares of unproductive and idle public and private lands nationwide.
This effort will produce about 5,600 million liters of bio-fuel in the next 10 to 12 years.
Market Players & Competition
• National Development Co <Unlisted> has signed a preliminary agreement with Toyota
Tsusho to develop a biodiesel project in the Philippines in 2009, using jatropha.
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6.3.14 Australia
Market Size & Growth
According to ABARE, total consumption of petroleum products for 2009 is estimated at 58,119
ML (million liters) and is projected to increase steadily to 61,463 ML in 2014. Automotive gasoline
makes up about 55% of Australia’s transport fuel demand while diesel represents about 45%.
Biofuels production capacity for 2009 is about 255 ML (split roughly into about 180 ML of ethanol
and 75 ML of biodiesel) and is likely to increase to 365 ML in 2010.
Ethanol Production Facilities
Production facility/location Principle feedstocks
Manildra Group - Nowra NSW Waste wheat starch
CSR Distilleries – Sarina Qld Molasses
Dalby Biorefinery Grain
Source: ABARE
Biodiesel Production Facilities
Production facility/location Principle feedstocks
Biodiesel Ind - Rutherford NSW Tallow and used cooking oil
Biodiesel Producers Barnawatha Tallow and used cooking oil
Smorgan Fuels – Laverton Vic Tallow and used cooking oil
Eco-tech Biodiesel – Narangba Qld Tallow and used cooking oil
Source: Post Estimate
Drivers & Constraints
While there is no national biofuel policy, the government has a broad range of policy instruments
that affect the production of biofuels. These instruments include a production target, fuel taxes
(excise), fuel quality standards, grants and labeling.
Both ethanol and biodiesel are currently free from excise taxes, currently applied to diesel and
petrol. This exemption is made in the form of “production grants” which effectively provide a
subsidy at the same rate per liter of fuel as the excise that would be levied – A$0.381 per liter.
This scheme is due to commence scaling down in 2011/12 when the effective assistance rate will
fall to A$0.234 and will continue to fall through 2015/16.
At a state level, New South Wales increased its volumetric mandatory inclusion policy for ethanol
to legislation. Under this legislation, by 2011, the inclusion level of ethanol in petrol will be 10%.
This will equate to roughly 120 ML of ethanol per year.
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The state of Queensland has committed to a mandate of volumetric inclusion of 5% by 2011.
Victoria and Western Australia have a biofuel “target” of 5% by 2010. The states of Tasmania,
South Australia and the Northern Territory remain uncommitted.
Market Players & Competition
Ethanol
• Manildra Group <Unlisted> is one of the largest user of wheat for industrial purposes in
Australia, processing 1 million tonnes of wheat per annum.
• CSR Ethanol <CSR.AX> is one of the major Australian producers of ethanol products,
supplying over half of the domestic Food & Beverage and Industrial market as well as
supplying the growing fuel market in Australia. CSR produces its ethanol (ethyl alcohol) by
fermenting molasses, a by-product of sugar production. CSR Ethanol’s Sarina Distillery in
Queensland produces 60 million litres of ethanol per year.
• Dalby Biorefinery <Unlisted> is Queensland’s first grain-to-ethanol production facility.
Biodiesel
• Smorgen Fuels <Unlisted> own and operate a 100 million litre biodiesel plant at Laverton
North, Victoria Australia.
• Eco-tech Biodiesel <Unlisted> own and operation a plant that produces 30 million litres of
bio diesel per year. The plant is located 35 kilometres north of Brisbane in Queensland
6.3.15 New Zealand
Market Size & Growth
Under the Biofuel Bill, a 2.5% obligation by 2010 would require 158 ML of biofuel to be produced.
Drivers & Constraints
The Biofuels Bill required oil companies to sell a minimum percentage of biofuels from July 1,
2008. The mandatory requirement was set to start at 0.53% of energy rising to 3.4% in 2012.
However, Parliament's Environment Select Committee, which reported back on the bill on June
23, 2008, recommended the obligation be cut to 2.5% by 2012
Market Players & Competition
• Fonterra <xx> is New Zealand’s largest dairy cooperative and reportedly produces about 20
ML liters of whey-derived ethanol annually and sells around 10% of this as fuel. Currently, all
of the ethanol sold by Gull, one of two retailers selling biofuels in New Zealand, is sourced
from Fonterra. There is also biodiesel from tallow although there are reportedly some
problems yet to be resolved with its behavior in cold temperatures.
• Solid Energy <Unlisted> is a major New Zealand energy company that is interested in
producing biodiesel from rapeseed. Biodiesel New Zealand, which is a subsidiary of Solid
Energy, produces fuel from two sources - used vegetable oil collected from restaurants and
food processors throughout the country.
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6.3.16 Summary of Companies in Biofuel Sector
Code Compay Name Market Cap PE ratio Country Sector
(M Dollars)
Anhui BBCA
000930.SZ Biochemical Co Ltd $1,367.7 65.3 China Health & Personal Care
China Clean Energy Building Materials &
CCGY.OB Inc $21.7 N/A China Components
Gushan
Environmental Energy
GU.N Ltd $97.6 N/A China Ethanol
China Biodiesel
International Hldg Co
CBI.L Ltd $6.6 26.7 China Chemicals
ALFA.BO Alfa Laval India Ltd $526.3 19.4 India Machinery & Engineering
Wilmar International Business & Public
WLIL.SI Ltd $30,390.8 16.0 Singapore Services
Golden Agri- Misc. Materials &
GAGR.SI Resources Ltd $4,882.0 7.7 Singapore Commodities
Lam Soon Thailand Food & Household
LST.BK Public Co Ltd $89.3 9.6 Thailand Products
CSR.AX CSR Ltd $2,328.6 N/A Australia Industrial Components
Unlisted Solid Energy N/A N/A New Zealand Biodiesel
Biomass Energy
Unlisted Corporation N/A N/A Japan Ethanol
Nippon Shokubai Co.
Unlisted Ltd N/A N/A Japan Biodiesel
Unlisted Next Oil Co. Ltd. N/A N/A South Korea Biodiesel
Unlisted Enertech Inc. N/A N/A South Korea Biodiesel
Unlisted Continental BioEnergy N/A N/A Singapore Biodiesel
Unlisted Peter Cremer N/A N/A Singapore Biodiesel
Unlisted JOil (S) Pte. Ltd N/A N/A Singapore Biodiesel
Unlisted Puri Usaha Kencana N/A N/A Indonesia Biodiesel
Golden Hope
Unlisted Biodiesel N/A N/A Malaysia Biodiesel
National Development
Unlisted Co N/A N/A Philippines Biodiesel
Unlisted Thai Alcohol N/A N/A Thailand Ethanol
Thai Agro Energy
Unlisted Public Co N/A N/A Thailand Ethanol
Source: Thomson Reuters
Asia Pacific Clean Tech Handbook 197 of 348 31-May-10
6.4 Biomass
6.4.1 Background
Biomass combustion consists of burning material produce from plant material. At present,
combustion of biomass falls into the main categories:
• Co-firing in modern coal power plants with efficiencies up to 45% is the most cost-effective
biomass use for power generation. Due to feedstock availability issues, dedicated biomass
plants for combined heat & power (CHP), are typically of smaller size and lower electrical
efficiency compared to coal plants (30%-34% using dry biomass, and around 22% for
municipal solid waste). In cogeneration mode the total efficiency may reach 85%-90%.
• Biomass integrated gasification in gas-turbine plants (BIG/GT) is not yet commercial, but
integrated gasification combined cycles (IGCC) using black-liquor (a by-product from the pulp
& paper industry) are already in use.
• Anaerobic digestion to produce biogas is expanding in small, off-grid applications.
• Bio-refineries may open the door to combined, cost-effective production of bio-chemicals,
electricity and biofuels.
6.4.2 Targets & Incentives
Biomass already makes up a part of the energy mix in countries like India. Biomass offer a
consistent supply of fuel that is cost efficient and can complement the existing fuel mix, with no
need for retro fitting.
China and India, Indonesia already produce a large amount of energy from biomass. Thailand
has introduced its 15 year plan, with the majority of it focused on biomass.
Asia Pacific Clean Tech Handbook 198 of 348 31-May-10
Asia Pacific Biomass Market (MW capacity)
Country 2009 2010E 2015E 2020E
China 5,500 30,000
Japan 1,630 1,630 1,750 2,530
S Korea 12 200
Taiwan 380
India 1,700 3,920
Indonesia 302 810
Thailand 214 3,700
Australia 446 1,845
NZ 1,644 1,650 1,650 1,700
Source: EIA, Government Publications, Estimates
Cost of Generation
Because of widely varying feedstocks and conversion processes, it is difficult to identify typical
costs for biomass energy. The most economical approach is to use local biomass to avoid costly,
energy-consuming transportation. Pelletisation can facilitate transportation but not all biomass
readily forms pellets. The incremental investment cost of biomass/coal co-fired power plants
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range from $50 to $250/kW. Where feedstock is available at little or no cost, co-firing can reduce
the electricity generation cost to as low as $20/MWh. If biomass is available at costs between
$3.0-$3.5/GJ, then the electricity generation cost is higher than for typical coal-based electricity
($30-$50/MWh). This is however the most competitive near-term option for using biomass in
power generation. The cost of electricity from dedicated solid biomass plants depends on
technology, feedstock quality and cost, regional location, and size of the plant. Large-size plants
require biomass transportation over long distances.
Small size means higher investment cost per kW and lower electrical efficiency relative to coal
plants. The capital cost of power plants with biomass gasification in the United States is about
$2000-$3000/kW and generation cost is in the order of $90/MWh. Such plants may be cost-
effective in CHP mode, if connected to district heating schemes. The cost of biomass combustion
steam cycle and CHP plants can be lower, with $1000/kW as the cost target.
Assuming a delivered biomass price of $3/GJ, the generation costs from biomass gasification
plants, even at higher efficiencies, are expected to be some $100-$130/MWh, more than twice
the cost of fossil-fuel power plants. These costs may be significantly reduced by technology
learning and then represent a low-cost option for renewable electricity.
CDM Projects
There are 593 projects in biomass in Asia, making it the third largest CDM sector after hydro and
wind. India is the largest generator with 386 projects, followed by China (82) and then Malaysia
(45) and Indonesia (23). Most of these projects are generated from agricultural residue.
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6.4.3 Biomass Supply Chain
Figure 6.12 – Biomass Process
Feedstock Process Product
Solid Combustion Steam Heat
Agricultural
Co-firing, CHP
Gasification CO+H2 DME
Animal Manure IGCC,
FT
Forestry Waste Pyrolysis Bio-oil
Oil Extraction Esterifcation Biodiesel
Industry Waste
Municipal Waste
Sugar Fermentation Distillation Ethanol
Sewage Sludge
Bio refinery
Crops Shift Reformer
Lignocell
Wet Anaerobic Digestion Bio gas Hydrogen
Anaerobic Digestion
Cofiring
Biomass co-firing in modern, largescale coal power plants is efficient, cost-effective and requires
moderate additional investment. In general, combustion efficiency of biomass can be 10% points
lower than for coal at the same installation, but co-firing efficiency in large-scale coal plants (35%-
45%) is higher than the efficiency of biomass-dedicated plants. In the case of co-combustion of
up to 5%-10% of biomass (in energy terms) only minor changes in the handling equipment are
needed and the boiler is not noticeably derated. For biomass exceeding 10% or if biomass and
coal are burned separately, then changes in mills, burners and dryers are needed. In addition,
coal ashes that are used to produce construction materials should not be contaminated with tar
and alkali metals-rich ash from biomass. Many co-firing technology options have been
demonstrated in several countries (Northern Europe, United States and Australia) in some 150
installations using different feedstock (wood biomass, residues and crops). Using low-cost local
biomass, the incremental investment may have a short payback period (2 years), but low-quality
biomass such as herbaceous crops and wet wood may produce tar and cause slagging and
fouling that affects plant reliability and raises costs.
Combustion in dedicated power and CHP plants
Biomass can be burned to produce electricity and CHP via a steam turbine in dedicated power
plants. The typical size of these plants is ten times smaller (from 1 to100 MW) than coal-fired
Asia Pacific Clean Tech Handbook 201 of 348 31-May-10
plants because of the scarce availability of local feedstock and the high transportation cost. A few
large-scale such plants are in operation. The small size roughly doubles the investment cost per
kW and results in lower electrical efficiency compared to coal plants. Plant efficiency is around
30% depending on plant size. This technology is used to dispose of large amounts of residues
and wastes (e.g bagasse). Using high-quality wood chips in modern CHP plants with maximum
steam temperature of 540°C, electrical efficiency can reach 33%-34% (LHV), and up to 40% if
operated in electricity-only mode. Fossil energy consumed for bio-power production using forestry
and agriculture products can be as low as 2%-5% of the final energy produced. Based on life-
cycle assessment, net carbon emissions per unit of electricity are less than 10% of the emissions
from fossil fuel-based electricity.
When using Municipal Solid Waste (MSW), corrosion problems limit the steam temperature and
reduce electrical efficiency to around 22%. New CHP plant designs using MSW are expected to
reach 28%-30% electrical efficiency, and above 85%-90% overall efficiency in CHP mode if good
matching is achieved between heat production and demand. Incineration of MSW is a mature
technology. Emissions of pollutants and dioxin can be effectively controlled, but in many countries,
incinerators face public acceptance issues and are seen as competing with waste recycling.
MSW also offers net reduction of CO2 emissions. MSW can generate some 600 kWh of electricity
per tonne and emit net 220-440 kg CO2 from the combustion of the fossil-derived materials (20-
40% of MSW). The CO2 emitted to generate 600 kWh from coal would be some 590 kg. Methane
emissions from MSW in modern landfills would be between 50-100 kg/t (equivalent to 1150-2300
kg CO2), 50% of which is collected and 50% is released in the atmosphere. Thus, electricity
production from MSW offers a net emission saving between 725 and 1520 kg CO2/t MSW. Saving
is even higher for CHP.
Gasification
Biomass conversion into biogas can be either from fast thermo-chemical processes (e.g.,
pyrolysis) which can produce biogas and other fuels, with only 2%-4% of ash, or from slow
anaerobic fermentation - which converts only a fraction (50%-60%) of feedstock but produces soil
conditioners as a byproduct. The biogas can be used in combustion engines (10 kW to 10 MW)
with efficiency of some 30%-35%; in gas turbines at higher efficiencies or in highly-efficient
combined cycles. Biomass integrated gasification gas turbines (BIG/GT) are not yet in
commercial use, but their economics is expected to improve. The first integrated gasification
combined cycle (IGCC) running on 100% biomass (straw) has been successfully operated in
Sweden. Technical issues appear to have been overcome. IGCC plants are already economically
competitive in CHP mode using black-liquor from the pulp and paper industry as a feedstock.
Other developments have brought Stirling engines and Organic Rankine Cycles (ORC) closer
to the market whereas integrated gasification fuel cell plants (IGFC) still need significantly more
R&D.
Anaerobic digestion, landfill gas
In the absence of air, organic matter such as animal manures, organic wastes and green energy
crops can be converted by bacteria-induced fermentation into biogas (a 40%-75% methane-rich
gas with CO2 and a small amount of hydrogen sulphide and ammonia). Anaerobic digestion is
also the basic process for landfill gas production from municipal green waste. It has significant
Asia Pacific Clean Tech Handbook 202 of 348 31-May-10
potential, but it is characterised by relatively small plant size. Anaerobic digestion is increasingly
used in small-size, rural and off-grid applications at the domestic and farm-scale. The rising cost
of waste disposal may improve its economic attractiveness. In modern landfills, methane
production ranges between 50 and 100 kg per tonne of MSW. In general, some 50% of such gas
can be recovered and used for power and heat generation. After purification and upgrading,
biogas can be used in heat plants, stationary engines, fed into the natural gas grid, or used as a
transport fuel (compressed natural gas). Large-size plants using MSW, agricultural wastes and
industrial organic wastes (large-scale co-digestion) need some 8000-9000 tonne MSW per year
per MW of installed capacity. Some 200 such plants are in operation or under construction world
wide using more than 5 million tones of MSW.
Biorefineries and hydrogen
Bio-refineries can theoretically produce a variety of products such as biopolymers, liquid bio-fuels,
biogas, electricity or hydrogen. Using proper feedstock and exploiting production synergies, bio-
refineries could gain economic appeal. The pulp and paper industry as well as the food industry
have processing plants already produce several products for different markets but energy carriers
are not usually one of them. Hydrogen can be obtained from biomass in a number of ways, the
most direct being reforming of bio-methane and bio-ethanol. Processes are well known but their
efficiency and cost need to be improved.
Potential Sources of Biomass Feedstock
Category of biomass residue Main sources / biomass residues
Agriculture All residues remaining in-situ from agriculture production, including
straw from cereal production; animal manures; stalks from cotton,
maize etc; stems & leaves from sugar beet, tobacco etc; prunings
from vines, fruit trees etc. All residues produced as by-products
from processing agriculture crops such as cotton processing; food
canning; olive oil processing; meat processing; wine making
Forestry All non-merchantable wood - small diameter roundwood,
branches/brash, tops – left in-situ by thinning and harvesting
operations. Includes short rotation forestry. All non-treated
residues – chips, bark etc – from primary and secondary
processing of wood: saw mills; furniture making; pulp and paper
mills; fiber board mills
Energy Crops Potential annual or perennial dedicated energy crops. Trees grown
on short rotation coppice (willow, poplar etc); grasses etc (giant
reed, switchgrass, miscanthus, cardoon, Spanish thistle
artichoke).
Waste (Covered in Section 6.12) Untreated wood residues excluding those from wood processing
industry (eg. wood pallets and packaging, demolition wood). The
organic fraction of waste from households, commerce, industry.
Sewage (Covered in Section Potential biogas production from sewage treatment
6.11)
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6.4.4 Research & Development
Japan led the number of patent filings in the biomass and Waste to Energy sectors from 1990 to
2000. However, recent analysis shows that China has increased the numbers of patents it has
filed in this sector.
Figure 6.13 - Biomass R&D Patent Filings
Bioenergy (1001 patents) Energy from Waste(2336 patents)
Other Other
US
2% 9% 1%
US EU
16% 9%
Japan
EU 52% Japan
30% 81%
Source: AIST
6.4.5 China
Market Size & Growth
The size of the biomass market in China is around 480 million tons of oil equivalent (TOE), of
which half (240 million tons of oil equivalent) is estimated to be from agriculture waste 36 . This
equates to roughly 800 million tons of agricultural residues a year. 58% of this residue is
discarded or burned in open fields, while less than 1% is used in power generation 37.
36
Research and Development on Biomass Energy in China, Wu Chuangzhi, Guangzhou Institute of Energy Conversion, Chinese
Academy of Sciences
37
www.chinaeconomicreview.com
Asia Pacific Clean Tech Handbook 204 of 348 31-May-10
China has launched 19 biomass plants, with a further 10 planned in five leading grain-producing
provinces to cut carbon dioxide emissions in electricity generation amid growing global concerns
over greenhouse gas and climate change. The biomass plants are operatied by National Bio
Energy (NBE), a Joint Venture between the State Grid and DP CleanTech.
China's installed capacity of bio-energy electricity is forecast to reach 5,500 MW by 2010,
according to the country's 11th Five-Year Plan 2006 to 2010.
Drivers & Constraints
The Chinese "Renewable Energy Act" of 2006 represented a significant market driver that led to
the construction of over 100 biomass electric power generation plants on a scale of 25MW or
above. China has renewed its biomass target to 30GW by 2020. Constraints are access to the
grid and supply of secure and reliable feedstock, with competition from other renewable energy
types, such as cellulosic biofuel.
Market Players & Competition
• National Bio Energy Limited <Unlisted> A Joint Venture between DP CleanTech (formerly
known as Dragon Power) and the State Grid. NBE has 19 power plants in operation and a
further 10 under construction. By the end of 2010, it will have over 700MW on the grid. DP
CleanTech acquired Danish straw-fired combustion specialists Bioener ApS of Denmark in
September 2009.
• Balama Nviro Limited <Unlisted>, a Joint Venture between Vertus Technologies Limited and
Balama Prima Engineering will roll out the Vertus technology for electricity generation from
biomass waste - such as rice husks - and low grade, high contaminant coals in the energy-
hungry Peoples' Republic of China.
• Wuhan ecoWise Energy Co., Ltd <Unlisted> is a joint venture between ecoWise Energy Pte
Ltd and Wuhan Jiabao Sugar Co., Ltd. The company is in the midst of converting its current
coal-fired power plant to a 25 MW biomass co-generation power plant running on a variety of
biomass materials, using Vyncke’s clean combustion technology.
• China Energy Conservation Investment Corp <Unlisted> is one of China’s first operating
straw-fired 24MW power station and burns 170,000-200,000 tons of straw and generate 132
GWh/yr.
6.4.6 Japan
Market Size & Growth
Incineration
Japan incinerates over 70% of its Municipal Solid Waste (MSW). It processes around 51 million
tonnes per year through 1400 incinerators, generating around 1,630 MW in electricity. In addition,
it incinerates processes around 412 million tonnes, with a 75% incineration rate. For more detail
on process, see Section 6.12.
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Agricultural Waste
The country produces about 24 million KL of biomass waste annually and about 5.5 million KL of
unused biomass, including rice and wheat straw. The target for 2010 is 2.6 million KL in 2010 38.
With the target of 80% of waste biomass and 25% of unused biomass, it is expected that total
capacity will increase to around 20.5 million KL (17.5 million tones).
Drivers & Constraints
The ‘Biomass Nippon Strategy’ implemented in 2002 sets out the objective of using 80% of
waste biomass and 25% of unused biomass for productive purposes by 2025.
As part of the Strategy, the government plans to launch 300 biomass towns by 2010 39. Cellulosic
biomass accounts for almost two thirds of biomass in Japan.
Market Players & Competition
• Energy Advance <Unlisted>, a subsidiary of Tokyo Gas Co., Ltd has installed 48 units and
56 MWe cogeneration plants in japan.
• Chugai Ro Co. <1964.T> has developed a forest biomass gasification pilot plant in
Yamaguchi Prefecture, western Japan. The system also reuses combustion residue and
waste heat from the gasification process, which makes it possible to get three times more
energy from biomass than existing methods.
• Nishinippon Environmental Energy Co <Unlisted> has a 11.35MW power plant that uses
440 tonnes per day of chicken-litter in a stoker furnace, which has been in operation, since
2005
• First Energy Service Company Ltd <9514.T> operates a 10MW biomass power plant,
which started operation in 2006. Wood fuel is secured from Iimori Mokuzai Co, a logging
company, and annual consumption by the CFB boiler is expected to be about 90,000t.
6.4.7 South Korea
Market Size & Growth
The total amount of new and renewable energy generated in Korea is around 5.5 million tons of
oil equivalent (TOE), of which waste energy including waste gas accounted for about 4 million
TOE.
38
METI, 2007
39
Biomass Nippon Strategy, MAFF, Japan
Asia Pacific Clean Tech Handbook 206 of 348 31-May-10
The ministry has gradually increased the government subsidies for waste to energy facility
establishment and provided about 33 billion won of national budget for establishment of such
facilities in local governments. It is expected the ministry will offer more government subsidies to
increase the waste to energy distribution rate by 2010. As the results of its effort to expand power
generation facilities from waste, it is scheduled to complete the construction work of an RDF
manufacturing facility capable of producing 200 tons of RDF a year in the metropolitan areas in
2009, a biogasification facility capable of producing 98 tons of biogas per day in Dongdaemun-gu
in Seoul, a sewage sludge desiccation facility capable of processing 450 tons per day in Suwon,
and landfill gas facilities in Gumi and Masan. In addition, RDF manufacturing facilities and
exclusive RDF boilers in 12 cities including Naju, and biogasification facilities and sewage sludge
desiccation facilities in 8 landfill sites in the metropolitan areas are under construction or in the
planning stage.
Korea has only one Refuse Driven Fuel (RDF) manufacturing facility (in Wonju in Gangwon
province) and 34 RDF manufacturing facilities led by private sector companies. Although
Biogasfication using food waste, sewage sludge and livestock manure has been partly processed
in the livestock wastewater disposal facility in Paju Gyeonggi province, the Saenggok landfill site
in Busan, and sewage disposal facilities in Dongrae-gu in Busan and Nam-gu in Ulsan.
Drivers & Constraints
The ministry of environment announced "Waste Resources and Biomass Energy Utilization
Initiatives" in 2008 and was due to release its roadmap in 2009. As of 2007, the amounts of
combustible wastes and organic wastes accounted for about 3.84 million tons and 7.85 million
tons per year, respectively. However, only 1.5% (58,000 tons/year) of combustible waste, and 2%
(160,000 tons/year) of organic waste were utilized as energy resources. In an effort to facilitate
waste to energy policy, the ministry aims to achieve energy utilization of combustible waste (by
47% or 1.82 million tons/year) and of organic waste (by 26% or 2.04 million tons/year) by 2013. In
addition, it plans to increase energy collecting rates-77% of residual thermal from middle and
large-scale incinerators and 91% of landfill gas from waste landfill sites- by 2013.
Market Players & Competition
• Kumho Petrochemical <011780.KS> provides three categorized products: synthetic rubber,
synthetic resins and fine chemicals. Synthetic rubber products include styrene butadiene
rubber (SBR), thermoplastic elastomer, acryronitrile butadiene, polybutadiene rubber and
other products, which are used for the manufacturing of tires, shoes, rubber hoses, belts and
industrial rubber products. Kumho has constructed its second cogeneration plant in Yeosu in
2009.
• Aquentium <AQNM.OB> will build a waste-to-energy plant South Korea with capacity of
processing 1,000 metric ton per day waste to energy. The company also has interests in non-
chemical sanitation equipment, waste-to-energy technologies, water treatment, food safety,
mining, alternative energy, building materials, affordable housing, re-deployable housing, and
recycling.
Asia Pacific Clean Tech Handbook 207 of 348 31-May-10
6.4.8 Taiwan
Market Size & Growth
From 1991, the Taiwan government set up a long term plan for the construction of WTE plants.
21 WTE plants were to be constructed by the government by 2005. These WTE plants will
process an estimated total of 18,615 metric tons of MSW per day (85% of the design capacity of
21,900 metric tons), amounting to about 7.2 million tons per year or 65% of the total MSW
generated in 2005. These plants are expected to generate 1.85*106 MWh of electricity per year.
The surplus electricity generated will be result in annual revenue of about $47 million.
Drivers & Constraints
Market Players & Competition
• Taiwan Cogeneration Corporation <8926.TW> is a specialized cogeneration company,
established in 1992 with a goal of assisting the industry by providing cogeneration technology
to enhance energy efficiency, to result in lower energy cost, and to upgrade power supply in
Taiwan. Taiwan Cogeneration obtained two permits from MOEA to invest in Fong Der Gas-
fired Power Plant of Sun Ba Power Corporation and Chang Bin Gas-fired Power Plant of Star
Energy Power Corporation.
• Chung Hsin Electric & Machinery Mfg. <1513.TW> is principally engaged in the
manufacture and distribution of electrical power equipment, as well as the project contracting
of construction works.
• SINO Environmental Services Corp <Unlisted> is a subsidiary of CTCI Corp. The main
business focus is on the refuse incineration plant’s operation and maintenance project which
is the extension of the incineration EPC project of the mother company. It has won the refuse
plants operation contracts of Hsintien, Shulin, Taoyuan, Maoli, Houli, Wuzu, Keelung, Tainan,
and Tainan Science Park. The service capacity of SESC is summed up to 6,900 7,400 tons
per day which represents 44% of the privatization market share in Taiwan.
• Onyx Ta-Ho Environmental Services Co., Ltd <Unlisted> was established as a joint-
venture between Taiwan Cement Corporation (TCC) and Veolia Environmental Services and
provides integrated waste management services for both local authorities and industrials.
With its two subsidiaries - Onyx Ta-Ho Waste Clearance Co. and Onyx Ta-Ho Energy
Recovery Co., Onyx Ta-Ho offers services such as waste incineration treatment, waste
collection and recycling, waste transfer, liquid industrial waste treatment, fly ash treatment,
drainage cleaning and MARPOL oil treatment.
• Taiwan Sugar Corp <Unlisted> has established an industrial safety and environmental
protection department. At present, the operation includes an Examination and Analysis
Center, two Municipal Waste Incineration Plants (in Gangshan and in Kanding), and several
waste landfill sites, with which it created about NT$500,000,000 of revenue per year.
Asia Pacific Clean Tech Handbook 208 of 348 31-May-10
6.4.9 India
Market Size & Growth
Total installed capacity 148,265MW, with a projected growth of an additional 92,000MW over the
next 10 years, with the potential power generation for biomass estimated to be 16,000MW.
Under the 11th Plan period, the government aims to add 1,700MW capacity through biomass
(500MW) and bagasse (1,200MW) cogeneration in states – Maharashtra, Uttar Pradesh, Tamil
Nadu and Karnataka.
Sugar mills in Maharashtra, Uttar Pradesh, Tamil Nadu and Karnataka, Andhra Pradesh, Bihar,
Gujarat, Punjab and Haryana has an estimated potential of 5,000MW surplus of power generation
through bagasse based cogeneration 40
Biomass/Co Generation Projects in India
Program Commissioned Projects (MW) Under Implementation (MW)
Bagasse Co-generation 109 (1048) 118 (1591)
Biomass Power 102 (704) 60 (578)
Total 21 (1752) 178 (2169)
Source:
Drivers & Constraints
Incentives for biomass projects include:
• Accelerated Depreciation 80% in first year (Boiler and Turbine).
• Income Tax Exemption for 10 years (under Section 80 1A).
• Concessional import duty; excise duty exemptions on equipments & components required for
initial setting of the project.
• Sales tax exemption in some states.
• IREDA Provide Loan For Biomass Power / Cogeneration Projects.
• Capital subsidy
• Preferential Tariff in 14 States.
Market Players & Competition
There are around 10 domestic manufacturers that can producer gasifiers from a few KW-1 MW
and have an annual production capacity and include:
40
Minister of State in the Ministry of New and Renewable Enegry
Asia Pacific Clean Tech Handbook 209 of 348 31-May-10
Manufacturers
• BHEL <BHEL.BO> is an engineering and manufacturing company in the energy-related and
infrastructure sector. The Company caters to sectors, including to the power generation and
transmission, industry, transportation, renewable energy and defense. BHEL manufactures a
range of products and systems for thermal, nuclear, gas and hydro-based utility power plants.
BHEL supplies steam turbines, generators, boilers and matching auxiliaries up to 800 MW
ratings, including supercritical sets of 660/800 MW. BHEL also supplies circulating fluidised
bed combustion (CFBC) boilers for thermal plants. BHEL manufactures 220/235/500/540 MW
Nuclear turbine-generator sets.
• Thermax <THMX.BO> is a global solution provider in energy and environment engineering. It
offers products and services in heating, cooling, waste heat recovery, captive power, water
treatment and recycling, waste management and performance chemicals. The Company
operates in two business segments: energy and environment. The products covered under
the energy segment include boilers and heaters, absorption chillers/heat pumps and power
plants. The products covered under the environment segment include air pollution control
equipments/ systems, water and waste recycle plants, ion exchange resins and performance
chemicals.
• Walchangnagar <WALC.BO> is an India-based company. The Company is engaged in
heavy engineering, which includes engineering, fabrication and manufacturing of machinery
for sugar plants, cement plants and boilers, heavy duty gears, mineral processing, defence
and nuclear power business; foundry and machine shop-manufacturing of cast iron (CI) and
spheroidal graphite iron (SGI) castings required by various industries and machining of
components, and other non-reportable segment, includes units manufacturing pressure and
temperature gauges and Infotech Services.
• Texmaco <TEXM.BO> is an India-based company. The Company operates in four business
segments: heavy engineering division, steel foundry division, real estate and others. The
Company has five factories on the outskirts of Kolkata. The Company’s product portfolio
includes railway freight cars, steel foundry, hydro-mechanical equipment and steel structures,
process equipment, and agro machinery.
• Cetnar Vessels <Unlisted> makes boilers for Power Generation or for Steam Generation in
Process Industries. It also makes Boiler Auxiliaries that include Fans, Electrostatic
Precipitator, Cooling Towers, Fuel Handling Systems, and Water Treatment Systems. Cetnar
Vessels makes biomass (Rice husk) fired BFB boiler and BFB boiler to fire gaseous fuel
(Biogas).
• Triveni Engineering <TREI.BO> has co-generation plants in Western Uttar Pradesh state of
India. These are used to produce two forms of useful energy simultaneously i.e. electric
power and steam, with the surplus electric power being supplied to the power distribution
companies. The company has an aggregate cogeneration capacity of 68 MW out of which
approx. 43-45 MW of electricity is exported to the grid.
Asia Pacific Clean Tech Handbook 210 of 348 31-May-10
• DLF Energy Systems <Unlisted> is a manufacturer of aero derivative gas turbines (1-5MW)
and Steam Turbine Generators.
Biomass Operator
All Green Energy <Unlisted> a 100% subsidiary of AllGreen Energy Pte Ltd, Singapore plans to
set up 10 biomass based renewable energy projects in India by 2012 with each plant having a
capacity of 6.5 MW each and first three plants to be set up in the Indian states of Karnataka,
Tamil Nadu and Madhya Pradesh.
6.4.10 Singapore
Market Size & Growth
Singapore incinerates 90% of its Municipal Solid Waste through 4 incineration plants and
generates roughly 980 kWh of energy, supplying roughly 2% of Singapore’s electricity demand.
MSW incinerator capacities in Singapore
Plant Capacity Comment
Ulu Pandan 16MW Closed in August 2009
Senoko 56MW Acquired by Keppel
Tuas 46MW
Tuas South 132MW
Total 234MW
Source: Waste Management Department, NEA
Drivers & Constraints
‘Waste to Energy’ projects in Singapore are focused on Municipal Solid Waste.
Market Players & Competition
• Transcu Group <TRSU.SI > acquired a 45% strategic stake in Japanese Biomass
Technology Company, Biomass Energy Corporation (BME) for US$277k in April 2009.
• ecoWise Holdings Limited < ECOW.SI>, an integrated environmental solutions provider,
announces that its joint-venture company, Wuhan ecoWise Energy Co., Ltd (“Wuhan
ecoWise”) has recently entered into an equipment procurement and supply contract for clean
combustion technology with Belgian clean energy company, Vyncke Energietechniek NV
(“Vyncke”), for its 25 MWH biomass co-generation plant in Wuhan Peoples’ Republic of China.
• ECO-IEE <Unlisted> has three wholly-owned subsidiaries; ECO Special Waste Management
Pte Ltd (ECO-SWM), ECO Resource Recovery Centre Pte Ltd (ECO-RRC) and ECO Energy
Recovery System Pte Ltd (ECO-ERS). It provides third-party environmental laboratory
services, consultancy services and conducts R&D programmes on waste treatment
Asia Pacific Clean Tech Handbook 211 of 348 31-May-10
processes and environmental technologies. It has a cogeneration plant has a turbine capacity
of 0.53 MW and uses wood waste as fuel.
• Bee Joo Industries Pte Ltd <Unlisted> has a cogeneration plant has turbine capacity of 1.0
MW and uses wood waste and horticulture waste as fuel.
6.4.11 Indonesia
Market Size & Growth
Indonesia has a potential of 147 million tonnes of biomass per year. However to date only palm
oil biomass project by Bronzeoak has been identified.
Drivers & Constraints
Biomass has a target of 180MW capacity by 2025.
Market Players & Competition
Bronzeoak Indonesia has a number of biomass plants in Indonesia.
6.4.12 Malaysia
Market Size & Growth
No plants have been identified.
Drivers & Constraints
No targets for biomass have been identified, although there is potential for biomass cogeneration
from Palm Oil and agricultural waste.
Market Players & Competition
No companies in this sector have been identified.
6.4.13 Thailand
Market Size & Growth
Thailand has the potential to produce large amounts of power from biomass, such as sugar cane
(bagasse) and agricultural waste (rice husks). It currently generates around 214MW via the Small
Power Producer scheme, but this is expected to grow significantly, in order to meet its 2022
target of 3,700MW.
Drivers & Constraints
Thailand has made biomass central to its 15 year plan for renewables and expected to generate
3,700MW by 2022.
Asia Pacific Clean Tech Handbook 212 of 348 31-May-10
EGAT announced in 2009 to purchase electric from Small Power Producers (SPP) from waste
and biomass, which should increase generation from biomass.
Market Players & Competition
• Vichitbhan Group <Unlisted> the country’s leading palm-oil crushing comapny is investing
almost Bt2 billion to set up biogas and biomass energy businesses, as well as a fertiliser plant
• Thailand's Biomass Electricity Co., Ltd. <Unlisted> to develop a 150 MW biomass firing
power plant in Prachinburi, Thailand.
• MPM Technologies <Unlisted> has announced a partnership with SFO, Biofame Consulting
Group, and V.C. Consultants to develop waste-to-energy projects in Thailand. It is anticipated
that Srakaew (in Srakaew province, eastern Thailand) will house the first commercial project.
This plant, a showcase facility, will be a reference site for the use of the Skygas technology in
future projects specifically for the disposal of various waste streams, the recovery of
renewable energy and alternative fuel from residual resources.
• Clean Energy Development Company Thailand Ltd <Unlisted> is a developer of the
largest and first cassava root biogas project in Thailand.
• AT Biopower Co Ltd <Unlisted> has developed a Thermal Power Plant which takes Rice
Husk as fuel and has a generating capacity of 22MW. The plant has no waste water
discharge and uses electrostatic precipitator that detects 99.5% of particulates.
• Mungcharoen Green Power Co Ltd <Unlisted> is a large-scale rice husk-based power plant
project developed, and operated by a group of local rice millers under a long-term 21-year
power purchasing contract with Thailand’s national power utility. It is located in Surin Province
in the lower northeast of Thailand and has a 9.9 MW of installed capacity.
• Advance Bio Power Co Ltd <Unlisted> uses eucalyptus trees to make paper, and the waste
wood, which cannot be used in paper production, is utilised as fuel to operate a steam-driven
power plant. The power plant generates 9.5 MWh of which 8 MWh is exported to the national
electricity supply company, EGAT.
Asia Pacific Clean Tech Handbook 213 of 348 31-May-10
Summary of Biomass Projects in Thailand
Location Owner Output Status Primary Cofired fuel(s)
(MWe) fuel
Bang Mun Nak, Pichit AT Biopower 1 X 22 2005 rice husk
Co Ltd MW
Burirum, Buri Ram Advance Bio 1 X 9.5 2007 rice husk
Power Co Ltd MW
CGC Plant, Nakhon C Gigantic 1 X 2.76 coconut shell,
Ratchasima Carbon Co Ltd MW CHP wood
Roi Et Electricity 1 X 9.8 2006 rice husk
Generating MW
Public Co Ltd
Surin MGP, Prasart Mungcharoen 1 X 9.9 2007 rice husk
Surin Green Power MW
Co Ltd
Chiang Mai Provincial 20 lignite RDF
Electricity
Authority of
Thailand
Source: USDA, Websites
6.4.14 Philippines
Market Size & Growth
Demonstration plants have been planned and aim to use the agricultural waste for cogeneration.
Drivers & Constraints
Although no target has been set, Biomass falls under the Philippines Energy Plan (PEP) and
will contribute to the 20GW target by 2020.
Market Players & Competition
• Phil-Korean Renewable Energy <Unlisted> is planning to invest USD 71m to build a 30MW
biomass project in Palawan that utilises wood chips for feedstock. Phil-Korean Renewable
plans to start commercial operations by 2013. Electricity generated by the plant will be sold to
the Palawan Electric Cooperative.
• Clenergen <CRGEE.OB> plans to develop a biomass demonstration project in the
Philippines which will use bamboo as feedstock. The project will have up to 4MW of capacity
Clenergen recently signed a memorandum of understanding with the Philippine Agricultural
Development and Commercial to study the viability of a 5MW biomass projects.
Asia Pacific Clean Tech Handbook 214 of 348 31-May-10
6.4.15 Australia
Market Size & Growth
In Australia less than 5% of energy is generated using biomass fuels. Wood represents 2.4% of
Australia’s total primary energy consumption. About three quarters of the heat energy produced
from wood is used in the residential sector. The remaining heat energy is used in making wood
products, paper and in food industries. About 22% of Australian homes use wood for heating 41. In
1997 bagasse represented about 2% of Australia’s total primary energy consumption. The energy
produced by burning it is used to power the sugar cane mills and the excess is sold to the local
electricity company. The sugar mills in Queensland, NSW and WA had a combined maximum
output of about 300 MW in 1997 42. In 1997 the total capacity of power plants using landfill gas in
Australia was about 72MW.
LFG
Landfill gas projects are a recent development in Australia, with the number growing to 29 at the
beginning of 2004. For more on LFG, see Section 6.12.
Biogas
The use of sewage gas for electricity production is also increasing in Australia. In 1997 the
installed sewage gas electricity generation capacity was about 7MW, which represented a 59%
recovery of methane gas from wastewater treatment plants.This output is expected to treble to
20MW by 2010. For more on Biogas, see Section 6.11.
Biomass Potential in Australia
Feedstock MW in 2020 Existing Generation Total in 2020 (GWh) Long term potential
(GWh) (GWh)
Agricultural Waste 106 2 791 50,566
Energy Crops 29 0 218 534
Landfill Gas 251 772 1,880 3,420
Sewage 120 57 901 929
Sugar 831 1,200 3,165 7,800
Urban Waste 96 103 721 4,320
Forestry 412 438 2,948 5,060
Total 1,845 2,572 10,624 72,629
Source: Bioenergy Roadmap, Clean Energy Council
41
DPIE, 1997
42
DPIE 1997
Asia Pacific Clean Tech Handbook 215 of 348 31-May-10
Drivers & Constraints
The Renewable Energy Target (RET) is the main driver for renewable targets in Australia.
Estimates from the Clean Energy Council suggest that electricity from biomass can account 4%
of Australia’s total by 2020 (11,000MWh per year) 43
Market Players & Competition
• EarthPower Technologies <Unlisted> has a anaerobic digestion facility which will convert
82,000 tonnes per year into biogas.
• Methanix <Unlisted> has a 5,000 tonnes per year syngas demonstration plant in Darwin.
Operators
• Stanwell Corporation <Unlisted> owns and operates coal-fired thermal, wind, hydroelectric
and bio-energy power generation facilities. The company owns and operates a portfolio of
power stations, including coal-fired thermal as well as hydroelectric power stations. The
company’s thermal and hydro generating sites contributed more than 1,500 MW of electricity
into Australia’s national electricity market.
• Ergon Energy <Unlisted> is engaged in generating, distributing electricity and providing
electricity related services to Queensland. The company serves 480,000 residential
customers and 100,000 industrial and commercial customers spread over an area of one
million square kilometers in the Queensland region. The electricity network of the company
comprises of more than 150,000 kilometers of powerlines and one million power poles. It
owns and operates 33 stand-alone power stations and 70,000 substations.
• Delta Electricity <Unlisted> is an electricity generation company. The company is engaged
in the generation and production of electricity from coal, water, and biomass materials in
Australia. It generates 12% of the electricity needed by consumers in South Australia,
Queensland, New South Wales, Victoria and the ACT. It generates power from mini-hydro
generators and co-firing biomass at Mt Piper near Lithgow and Chichester Dam in the upper
Hunter Valley and its four coal-fired power stations located in New South Wales. These power
stations include Mt. Piper and Wallerawang near Lithgow and Munmorah and Vales Point on
the Central Coast. These stations have a combined generating capacity of 4,240MW. It sells
electricity to energy retailers and industrial customers in South Australia, Queensland, New
South Wales, Victoria, and the Australian Capital.
43
Bioenergy Roadmap, Clean Energy Council
Asia Pacific Clean Tech Handbook 216 of 348 31-May-10
Summary of Biomass Projects in Australia
Output Primary
Location Owner % heat Status Cofired fuel(s)
(MWe) fuel
Collie Western Power 1040 5% Trial, now C&D pulverised plantation forest
mass stage coal waste and
green waste
Ipswich, SE CS Energy 4 x 125 No Trial pulverised wood waste
Queensland coal
Lake Macquarie, Delta Electricity 2 x 660 <1% Commercial pulverised wood waste
Newcastle, New South mass coal
Wales
LIddell, New South Macquarie 4 x 500 <1% Commercial pulverised wood waste
Wales Generation mass coal (sawdust,
shavings)
Lithgow, New South Delta Electricity 2 x 660 No Commercial pulverised wood waste
Wales coal (fresh sawdust)
Lithgow, New South Delta Electricity 2 x 500 <1% Commercial pulverised wood waste
Wales mass coal (plantation
sawmill residue
and
construction
and demolition
waste timber)
Rockhampton Stanwell 4 x 350 No Trial pulverised wood waste
Corporation coal (sawdust and
shavings)
Tarong Tarong Energy 2 x 350 No Trial pulverised wood waste
coal
Isis Central Ergon Energy 1 x 25.5 Commercial, bagasse
Extension, Corp Ltd 2006
Queenland
Maryborough, Maryborough 1 X 750 Commercial, bagasse
Queensland Sugar kW, 2 X 2 1972
MW CHP
Rocky Point-3, Stanwell Corp 1 X 30 Commercial, bagasse,
Queenland MW CHP 2001 wood
Suncoast Gold, Ergon Energy 1 X 1.5 2003 macadamian
Queensland Corp MW CHP nut shells
Asia Pacific Clean Tech Handbook 217 of 348 31-May-10
6.4.16 New Zealand
Market Size & Growth
The main source of biomass heat and power generation comes from the wood processing sector
in NZ.
Biomass power generation projection in New Zealand
Industry MW 2005 (PJ) 2020 (PJ) 2030 (PJ)
Sawmill 348.5 9.53 14.38 13.68
Panel 9.5 11.76 11.18
Pulp & Paper 1,293 26.83 23.41 22.83
Total 1,641.5 45.86 49.55 47.69
Source: Assessment of Possible Renewable Energy Targets – Direct Use of Biomass, Energy Efficiency
Conservation Authority, NZ
Drivers & Constraints
Market Players & Competition
• Blue Mountain Lumber Energy <Unlisted> has an energy centre consisting of a 10 MWth
steam boiler fuelled by sawmill wood residues and a 1.4 MWe steam turbine generator which
utilises surplus steam for electricity generation.
• Mighty River Landfill <Unlisted> is a New Zealand electricity generation and electricity
retailing company. The company owns and operates the hydroelectric generating stations on
the Waikato River as well as geothermal plants in the Taupo area, the combined cycle
Southdown plant in south Auckland and the largely unused plant (Marsden A and Marsden B)
at Marsden Point near Whangarei.
• Brightwater Hog Feed System <Unlisted> was designed originally for the large Blue
Mountain Lumber sawmill site at Tapanui in Southland where a wide variety of sawmill wood
and by-product residues are produced in the day-to-day mill operation. These residues
include lumber off-cuts (green and dry), sawline screen “overs”, bark, fillet sticks, wet and dry
sawdust and general woodyard waste. In most situations, these difficult-to-handle materials,
often tangled and multi-sized, are deemed to be too difficult to process and are usually
dumped as waste at a significant cost. Installation of the Hog Feed system allows this
“biomass waste” material to be converted into a valuable fuel resource.
• Pan Pac Forest Products <Unlisted> is located on the Whirinaki industrial site, 20 kilometres
north of Napier and includes the management of cutting rights to over 30,000 hectares of
plantation forests in Hawke’s Bay at five forest locations.In 2007 Pan Pac became wholly
owned by Oji Paper, one of the largest pulp and paper producers in Japan. Over 220,000
tonnes of thermo-mechanical wood pulp is produced annually and shipped to Japan’s
Asia Pacific Clean Tech Handbook 218 of 348 31-May-10
northern island of Hokkaido, where Oji Paper has a large paper manufacturing plant. Chip
exports through the Port of Napier provide wood fibre for Oji Paper' kraft pulp and paper
operations in Japan.
• Pure Power <Unlisted> uses wind and biomass to generate energy. It produces biofuels from
feedstock and biomass sources and uses the waste streams of these processes, to produce a
range of bioproducts such as resins, paints and plastics.
6.4.17 Summary of Companies in Biomass Sector
Code Compay Name Market PE ratio Country Sector
Cap (M
Dollars)
1964.T Chugai Ro Co Ltd $261.0 23.2 Japan Machinery & Engineering
First Energy Service
9514.T Co Ltd $10.8 N/A Japan Utilities-Electrical & Gas
KUMHO
PETROCHEMICAL
011780.KS CO., LTD. $602.5 N/A South Korea Chemicals
Taiwan Cogeneration
8926.TW Corp $277.0 9.1 Taiwan Electrical & Electronics
THMX.BO Thermax Ltd $1,794.3 32.4 India Machinery & Engineering
Walchandnagar
WALC.BO Industries Ltd $198.0 37.8 India Machinery & Engineering
Triveni Engineering &
TREI.BO Industries Ltd $759.9 15.8 India Machinery & Engineering
CRGEE.OB Clenergen Corp $54.8 N/A USA Metals - Non Ferrous
Thailand Biomass
Unlisted Electricity Co., Ltd. N/A N/A Thailand Biomass Operator
Unlisted AT Biopower Co Ltd N/A N/A Thailand Biomass Operator
National Bio Energy
Unlisted Limited N/A N/A China Biomass Operator
Wuhan ecoWise
Unlisted Energy Co., Ltd N/A N/A China Biomass Operator
China Energy
Conservation
Unlisted Investment Corp N/A N/A China Biomass Operator
Unlisted Energy Advance N/A N/A Japan Biomass Operator
Source: Thomson Reuters
Asia Pacific Clean Tech Handbook 219 of 348 31-May-10
6.5 Hydro
6.5.1 Background
Hydroelectricity is going through a revival, as it is seen as key source of uninterrupted renewable
power and key to countries achieving renewable targets. Hydro also makes up a largest portion of
the renewables generation of power in New Zealand (55%), China (14%), India (16%) and Japan
(8%). Hydroelectricity has also evolved from large scale infrastructure projects to also include
smaller microhydro projects that can just be a few MW in size.
Asia Pacific is the key region for Hydroelectricity, with over 100GW to be added by 2020.
Another key driver for hydro in APR are the carbon credits generated from CDM projects. As of
2009, there were 1,194 Hydro projects in APR which accounted for a quarter of all CDM projects
in the region. China alone had 918 hydro projects in the CDM pipeline.
6.5.2 Targets & Incentives
Hydroelectricity forms a major source of renewable energy, accounting for 14% of China’s total
power generation. Large hydro projects are driven by government targets, while the smaller micro
hydro projects have been driven by CDM projects. China makes up over 65% of the total hydro
production by 2030, mainly driven by large scale infrastructure projects, such as the Three
Gorges Dam.
Asia Pacific Clean Tech Handbook 220 of 348 31-May-10
Asia Pacific Hydro Market (MW capacity)
Country 2005 Construction Planned 2020E
China 105,000 50,000 80,000 300,000
Japan 27,759 745 19,052
S Korea 1,584
Taiwan 1,910 447 440
India 31,982 13,245 8,810 94,000 by 2027
Indonesia 3,221 135 802
Malaysia 2,078 2,400 510
Thailand 3,476
Philippines 2,450 660
Australia 7,670
NZ 5,346 16 186
Source: World Energy Council, EIA, Government Publications, Estimates
Costs of Generation
Estimates for cost of generation for hydro range from $40 to $60/MWh.
6.5.3 Hydroelectric Power Process
Hydro power plants vary enormously in size, from fractions of megawatts for some microhydro
facilities to thousands of megawatts, such as the Three Gorges Dam in China. Most of the hydro
power plants included in this report are “small” hydro facilities (typically less than 10 MW).
The main criteria for a hydro power installation are elevation and depth. From an elevated head,
either natural or artificial, water can be diverted through a headrace (tunnel or tube) into a turbine
coupled to a generator that converts the kinetic energy of falling water into electricity. The water is
then discharged through a tailrace, usually through a tunnel or canal, back into the river at a lower
level. The natural factors which affect hydro power potential are the quantity of water flow and the
height of the head. Flow roughly relates to average annual precipitation and the head depends,
basically, on topography.
Power capacity in a flow of water (Q cubic metre per second) is the flow of the water times the
height or head (H) the water can fall.
Hydro power plants can generally be divided into three different categories depending on the type
of head and the nature of the plant:
Asia Pacific Clean Tech Handbook 221 of 348 31-May-10
• High-head power plants are the most common and generally include a dam to store
water at a higher elevation. These systems are commonly used in mountainous areas.
• Low-head hydroelectric plants generally use heads up to a few metres in elevation or
simply function on the run of the river. Low-head systems are typically built along rivers.
• Multipurpose hydro power systems are generating facilities where the hydro power is
subordinate to other activities like irrigation, industrial processes, drinking water supply or
wastewater disposal. Electricity production is thus not the only objective of the plant but
often a useful by-product.
The value of the hydro power produced often depends very much on the firm power which can be
produced, which in turn depends on the possibilities to store water in the reservoir by the hydro
power plant or in upstream reservoirs.
6.5.4 China
Market Size & Growth
According to the EIA, hydro accounts for 14-15% of China’s power generation (105GW) and is
expected to be a key source of renewable power in the future, with a target of 300GW by 2020.
China accounts for 918 CDM projects in Hydro and is the largest single source of CDM projects
for China.
The largest hydro project is the Three Gorges complex (18 200 MW), which is operated by China
Yangtze <600900.SS> is gradually being brought into full operation by 2010.
The installed capacity of small hydropower in China is estimated to be about 30 GW. China has
about 8 300 MW of pumped-storage capacity, with 7 600 MW under construction.
Other major hydro projects listed as under construction, with completion expected in the period
2009-2013, include:
Summary of Hydro Projects in China
Project Capacity
Three Gorges Dam 18,200MW
Shuibuya 1 840 MW
Pubugou 3 600 MW
Longtan 5 400 MW
Xiloudu 1 500 MW
Laxiwa 4 200 MW
Xiaowan 4 200 MW
Goupitan 3 000 MW
Pumped Storage 7,600 MW
Total 49,450MW
Asia Pacific Clean Tech Handbook 222 of 348 31-May-10
Drivers & Constraints
China has put in place a 300GW target for hydro capacity by 2020 and will contributed around
three quarters of the renewable target.
Market Players & Competition
• China Yangtze <600900.SS> generates and supplies hydropower to Central, South and East
China. The company has a total consolidated installed capacity of 8,714MW from its two core
assets, the Gezhouba Dam (3,114MW) and eight units of the Three Gorges project
(5,600MW) and plans to acquire the remaining 18 units (12,600MW) from the parent company
in the future. Yangtze has also acquired recent exposure to thermal generation, although the
portfolio remains dominated by hydro.
• China Power International <2380.HK> acquired 63% of Wuling Power, which owns
attributable hydropower capacity of 3.6GW. CPI’s capacity mix will change from 100% coal to
19% hydro that will increase to around 21% by 2011.
6.5.5 Japan
Market Size & Growth
According the EIA, hydroelectricity accounts for around 8-9% of total power generation, with
about 22GW capacity. The government revised it power generation mix in 2009, but kept hydro at
8-9% by 2020.
It expected that 745 MW of conventional hydro capacity was under construction in 2005. Most of
the sites suitable for the installation of large-scale conventional hydroelectric plants have now
been developed. The great majority of the larger hydro projects presently under construction or
planned in Japan are pumped-storage schemes. It is reported that 7,520 MW of pumped storage
was under construction. Developed small-hydro capacity at end-2005 was about 3.5 GW,
equivalent to 12.5% of total hydro capacity. Capacity planned for construction totalled 106 MW,
with a probable annual generation of 478 GWh.
Drivers & Constraints
Hydro is the largest contributor in the renewable energy. However, most of the large potential
sites have already been developed and there is limited additional capacity.
Market Players & Competition
• J-POWER <9513.T> has a total hydro-generating capacity of 8,550 MW in 59 locations
around Japan. To cope with increasing electric power demand and higher peak demand, the
company has continued to build and operate mid-size hydroelectric power stations and large-
scale pumped-storage power stations. Besides, entrusted by the Japanese government, J-
POWER became the first company in the world to build and operate a 30 MW sea-water
pumped-storage generation plant.
Asia Pacific Clean Tech Handbook 223 of 348 31-May-10
6.5.6 South Korea
Market Size & Growth
Based on EIA data, the capacity for Hydro is not expected to growth by 2030 and stay at around
1.6GW capacity.
Drivers & Constraints
Korea has embarked on a push to increase its share of renewable energy in its power generation.
However, due to limited hydro potential, it will focus its efforts on other sectors.
Market Players & Competition
• KHNP <Unlisted> is the largest among the six power generating subsidiaries that separated
from Korea Electric Power Corporation (KEPCO) in April 2001, accounting for approximately
25% of electricity producing facilities, hydro and nuclear combined. KHNP also operates
nuclear power plants in Kori, Yonggwang, Ulchin and Wolsong, and several hydroelectric
power generation facilities (536MW) in the Hangang system, providing approximately 40% of
the national power supply.
6.5.7 Taiwan
Market Size & Growth
Taiwan generated around 1,911 MW from Hydro.
Drivers & Constraints
Hydro forms part of Taiwan’s Energy Policy, which aims to increase contribution from renewable energy
to 12.5% by 2035.
Market Players & Competition
Taipower is the vertically integrated utilty and operates existing hydro plants.
6.5.8 India
Hydro accounts for 16% of India’s power generation and is seen as a key component of MNRE’s
targets. India has 150 Hydro projects in the CDM pipeline.
Market Size & Growth
India has around 34GW generated from hydroelectricity from 55 plants and accounts for 25% of
total power generated. There is an expected increase of around 13GW under construction and
further 8GW planned.
The largest hydro plants currently under construction are Subansiri Lower (2 000 MW), Parbati II
(800 MW), Omkareshwar (520MW) and Teesta V (510 MW).
Asia Pacific Clean Tech Handbook 224 of 348 31-May-10
There are about 420 small-scale hydro plants in operation, with an aggregate installed capacity of
about 1 423 MW, with a further 521 MW of smallscale capacity is under construction.
Drivers & Constraints
As part of the 12th Five Year Plan (2012-17), the government has identified an additional
38,242MW to be added in that time period.
Based on the 2005 Electricity Plan, India, the government expects to increase hydro capacity to
94,000 MW by 2027 44
Market Players & Competition
• National Hydroelectric Power Corporation Ltd <NHPC.BO> formerly National
Hydroelectric Power Corporation Ltd., is a hydroelectric power generating company engaged
in the planning, development and implementation of an integrated network of hydroelectric
projects in India. NHPC also provides contract-based technical, management advisory and
consultancy services to domestic and international clients. As of March 31, 2009, it had
developed and constructed 13 hydroelectric power stations and its total installed capacity is
5,175MW. This includes two power stations with a combined capacity of 1,520MW,
constructed and operated through its subsidiary, Narmada Hydroelectric Development
Corporation. The Company and its subsidiary generated 16,582.72 million units and 2,368.45
million units of electricity, respectively during the fiscal year ended March 31, 2009. The
company is engaged in the construction of 11 additional hydroelectric projects, as of March
31, 2009.
• Malana Power Company Ltd <Unlisted> has developed a hydroelectric plant in India. Water
is collected at the plant’s intake which consists of a barrage head regulator, a desilter, and a
small concrete dam reservoir. Water is transferred via an underground headrace tunnel and
steel surface penstock into the power house. Power is transmitted to the Bajaura connection
point of Himachal Pradesh State via a high voltage transmission line built by the plant.
• Jaiprakash Hydro-Power Limited (JHPL) <Unlisted>, a part of the Jaypee Group owns and
operates the 300 MW Baspa-II Hydroelectric Project at District Kinnaur in Himachal Pradesh.
• S. Kumar Group <SKMO.NS> has been commissioned to develop a 400MW Hydro Electric
power station in Maheshwar.
6.5.9 Singapore
Market Size & Growth
Not applicable
44
India Central Electricity Authority
Asia Pacific Clean Tech Handbook 225 of 348 31-May-10
Drivers & Constraints
Not applicable
Market Players & Competition
Not applicable
6.5.10 Indonesia
Market Size & Growth
Hydro presently provides approximately 12% of Indonesia's electricity supply, with around 3.2GW
of capacity. There is around 135 MW of hydroelectric generating capacity was under construction
at end-2005 and 802 MW of additional hydro capacity is planned. Key Hydro electricity plants
include:
Summary of Hydro Projects in Indonesia
Project Capacity Company Operation
Balambano, South 2 X 70 MW PT Inco 1999-2000
Sulawesi
Cirata, West Java 8 X 126 MW PT Pembangkitan Jawa 1988-1998
Bali
Kotapanjang, Riau 3 X 38 MW PT PLN 1998
Larona, South Sulawesi 3 X 65 MW PT Inco 1977
Musi, South Sumatra 3 X 70 MW PT PLN 2006
Saguling, West Java 4 X 178-MW PT Indonesia Power 1986-1987
Sudirman, Central Java 3 X 61.5-MW PT Indonesia Power 1988-1989
Drivers & Constraints
Indonesia has targeted Hydro, as a key resource to increase it share of renewable energy and set
a target of 2.9GW by 2025. Mini Hydro is included in the Feed in Tariff (FIT) for renewable energy
Market Players & Competition
• PLN <Unlisted> is Indonesia's state-owned power utility. The company transmits and
distributes electricity to 36 million residential, commercial, and industrial customers. Its 24,000
MW of generation capacity comes from its own power plants and is supplemented by
independent power producers. The Indonesian government has ended Persero's power-
Asia Pacific Clean Tech Handbook 226 of 348 31-May-10
supply monopoly to spark interest among independents to build more capacity for sale directly
to consumers.
• PT Inco is an Indonesia-base nickel producer. The Company's main activities are the
exploration and mining, processing, storage, transportation and marketing of nickel and
associated products. The Company's production facility and mine are in Sorowako, Sulawesi,
where it has a contract agreement until 2025.
6.5.11 Malaysia
Market Size & Growth
There is a substantial potential for hydro development, with a total technically feasible potential of
about 123 TWh/yr, most of which is located in Sarawak (87 TWh/yr) and Sabah (20 TWh/yr). The
major Hydro project in Malaysia is the 2 400 MW Bakun hydro project in Sarawak and the 300
MW plant at Ulu Terengganu a 210 MW scheme at Sungai and Pelus.
Summary of Hydro Projects in Malaysia
Project Capacity Company Operation
Bakun 2,400 MW
Hulu Terengganu 212MW Tenaga Nasional 2013
Sungai 210MW Tenaga Nasional
Pelus 210MW Tenaga Nasional
Source: Company Reports
Drivers & Constraints
Hydro is a key sector for Malaysia and will account for most of Renewable Energy contribution,
contributing about 17% of the total power generation.
Market Players & Competition
• Tenaga Nasional, the largest electricity utility company in Malaysia and is owned by the
Government.
6.5.12 Thailand
Market Size & Growth
Thailand has around 3.5GW in Hydro capacity, but is not expected to increase capacity, as the
focus in renewable energy will be on solar, wind and biomass.
Drivers & Constraints
There is no target set for hydro, as part of the 15 Master Plan to raise the contribution of
renewable energy to 20% and reduce its reliance on natural gas. Thailand does have a FiT for
Asia Pacific Clean Tech Handbook 227 of 348 31-May-10
mini hydro to promote renewable energy from hydro, as part of the Small Power Producer (SPP)
and Very Small Power Producer (VSPP) programs, although most projects are in biomass.
NEPC Proposed Feed in Tariffs in Thailand
Project Type Current Adder New Adder Special Adder Special Southern
Adder
(THB/kWh)
Minihydro 50-200 0.40 0.80 1.00 1.00
kW
Minihydro< 50kW 0.80 1.50 1.00 1.00
Source: NEPC
Market Players & Competition
• Electricity Generating Authority of Thailand (EGAT) <Unlisted> is Thailand’s main electric
power producer/wholesaler.
• Ratchaburi Electricity <RATC.BK> is an independent power producer (IPP) and has an
installed capacity of 3,995 MW from its current commercial operating power plants, which
represents about 13% of the installed capacity in Thailand.
6.5.13 Philippines
Market Size & Growth
The Philippines has about 2.4GW in installed capacity for hydro, making up around 15% of the
total generation.
Drivers & Constraints
The main driver for hydro power will be the Renewable Energy Act that will produce a
Renewable Portfolio Standard (RPS) that will be defined in 2010 and is expected to include a
target hydro. A Feed-in-Tariff (FiT) will be finalized in 2010 and will incentivize the production of
power from minihydro projects.
Market Players & Competition
• EDC <EDC.PS> is the leading generator of hydro power in the Philippines and accounts for
30% of the country’s power generation. See Appendix A for more details.
• Aboitiz <AP.PS> is engaged in the power generation and distribution. The Company
operates through two segments: power generation and distribution. Its subsidiaries include
Hedcor Tamugan Inc., Hedcor Sibulan Inc., Cleanergy Inc., Hydro Electric Development Corp.
and Mactan Enerzone Corporation. See Appendix A for more details.
Asia Pacific Clean Tech Handbook 228 of 348 31-May-10
6.5.14 Australia
Market Size & Growth
Australia has three large generators of hydroelectricity, with around 6-7GW of capacity and
making up about 6% of Australia’s total power capacity.
In addition, there are also prospects for increased contributions from mini-hydro projects. Private
development of small-scale grid-connected hydro has been taking place in Australia since the
mid-1980s, with the first significant project undertaken by Melbourne Water on the Thompson
Dam.
Drivers & Constraints
Hydro has been identified as a renewable source, as part of the RET that aims to increase its
renewable target to 20%. However, given Australia’s limited hydro potential, it will be hard to
significantly increase capacity.
Market Players & Competition
• Snowy Hydro <Unlisted> owns and operates the 3,800MW Snowy Mountains Scheme, an
integrated water and hydro-electric power project located in Australia's Southern Alps. Snowy
Hydro is jointly owned by the Commonwealth (13%), New South Wales (58%) and Victorian
(29%) Governments.
• AGL Energy <AGK.AX> AGL has 16 operating hydroelectric stations across six hydro
schemes. Upon completion of the Bogong expansion of the Kiewa scheme, AGL’s total hydro
capacity will be almost 800MW.
• Hydro Tasmania <Unlisted> is owned by the State of Tasmania. Hydro Tasmania’s hydro-
power scheme is an integrated system of 29 hydro power stations, numerous lakes and over
50 large dams and generates around 1,180MW capacity
6.5.15 New Zealand
Market Size & Growth
Hydroelectricity is the largest contributor to the electricity market generating around 5.3GW of
power and make up 55-60% of the total power capacity. The main hydro projects are:
Summary of Hydro Projects in New Zealand
Project Capacity
Tongariro Power Scheme 360MW
Waikato 1,052MW
Waitaki 873MW
Clutha River 765MW
Manapouri 850MW
Asia Pacific Clean Tech Handbook 229 of 348 31-May-10
Drivers & Constraints
The Energy Strategy set a target of generating 90% of New Zealand’s electricity from renewable
energy sources by 2025, with hydro making up the largest contribution, with over 50-60% of total
power generation. However, the new government announced in 2009 that it is revising the Energy
Strategy to focus on security of supply.
Market Players & Competition
• Contact Energy <CEN.NZ> focuses on the wholesale generation of electricity and the retail
sale of electricity, natural gas and liquefied petroleum gas (LPG), and related services in New
Zealand. The Company operates in two segments: retail and generation. The retail segment
encompasses any activity that is associated with the Company’s supply of energy and related
services to end-user customers. The generation segment encompasses any activity that is
associated with the Company’s generation of electricity or steam and its sales to the
wholesale electricity market.
6.5.16 Summary of Companies in Hydro Sector
Code Compay Name Market PE ratio Country Sector
Cap (M
Dollars)
China Yangtze Power
600900.SS Co Ltd $20,611.2 25.2 China Utilities-Electrical & Gas
China Power
International
2380.HK Development Ltd $1,263.4 N/A Hong Kong Utilities-Electrical & Gas
Electric Power
9513.T Development Co Ltd $5,628.0 15.7 Japan Utilities-Electrical & Gas
National Hydroelectric
NHPC.BO Power Corp Ltd $8,540.3 N/A India Utilities-Electrical & Gas
Ratchaburi Electricity
Generating Holding
RATC.BK PCL $1,638.0 7.9 Thailand Utilities-Electrical & Gas
Energy Development
EDC.PS Corp $2,354.1 N/A Philippines Utilities-Electrical & Gas
AP.PS Aboitiz Power Corp $1,945.0 17.8 Philippines Utilities-Electrical & Gas
AGK.AX AGL Energy Ltd $6,203.5 53.8 Australia Energy Sources
CEN.NZ Contact Energy Ltd $2,567.9 19.9 New Zealand Utilities-Electrical & Gas
Unlisted KHNP N/A N/A South Korea Hydro Utility
Source: Thomson Reuters
Asia Pacific Clean Tech Handbook 230 of 348 31-May-10
6.6 Wave & Tidal Technology
6.6.1 Background
Ocean technology is still a nascent market and not as developed as solar or wind technology.
Australia and New Zealand lead the region with pilot programs in place. In most countries, ocean
technology is not part of the renewable portfolio with any targets set or defined. This section falls
into two main categories: Wave and Tidal.
6.6.2 Targets & Incentives
Wave and Tidal Technology is still a nascent sector, with most projects still in pilot phase. Cost of
generation is still high and can be as high as $225/MWh, making it cost prohibitive, when
compared with other renewables, although this cost is expected to fall rapidly, as standards are
set and a leading technology emerges.
Summary of Tidal Projects in Asia Pacific
Country Country Mean tidal Basin area Installed Approxim Annual
range (m) (km2) capacity (MW) ate plant
annual load
output factor
(TWh/ (%)
year)
Australia Secure Bay (Derby) 7.0 140 1 480 2.9 22
Walcott Inlet 7.0 260 2 800 5.4 22
India Gulf of Kutch 5.0 170 900 1.6 22
Gulf of Khambat 7.0 1 970 7 000 15.0 24
South Korea Garolim 4.7 100 400 0.836 24
Cheonsu 4.5 - - 1.2 -
Source: World Energy Council
6.6.3 Wave & Tidal Process
Wave
Unlike large wind turbines, there is a wide variety of wave energy technologies, resulting from the
different ways in which energy can be absorbed from the waves, and also depending on the
water depth and the location (shoreline, near-shore, offshore).
Several methods have been proposed to classify wave energy systems, according to location, to
working principle and to size (“point absorbers” versus “large” systems), with the lading
technology, based around Oscillating Water Column (OWC).
Asia Pacific Clean Tech Handbook 231 of 348 31-May-10
Figure 6.15 – Wave Technologies
Oscillating Water Fixed Structure Isolated
Column
Pico, LIMPET
Floating In breakwater
Mighty Wale, Ocean Energy, Sakata, Mutriku
Translation (Heave)
Aquabuoy, IPS Buoy
Oscillating Bodies Floating Rotation
Pelamis, PS Frog, SEAREV
Submerged Translation (Heave)
AWS
Rotation (Bottom Hinged)
Wave roller, Oyster
Overtopping Fixed Structure Shoreline (with concentration)
TAPCHAN
Floating (with In breakwater (w/o
Wave Dragon SSG
Tidal
There are two main leading technologies:
• Tidal Fences are effectively barrages which are deployed across the mouth of an estuary.
The most advanced plan is for a scheme for a fence across the Dalupiri Passage between the
islands of Dalpiri and Samar in the Philippines.
• Tidal turbines are the main alternative to the tidal fence. Tidal turbines function well where
coastal currents run at 2-2.5 m/s. Tidal currents are both predictable and reliable, a feature
which gives them an advantage over both wind and solar systems.
6.6.4 Research & Development
A specialty company, Ocean Power Technologies <OPTT.O> has the most inventions in this
collection. Most of the other large companies are experts in turbine technology or are shipbuilders.
Smaller entities include many specialty companies and think tanks.
There is a particular drop off in patent filings in Japan and this is again reflected in lack of
government targets in this area.
Asia Pacific Clean Tech Handbook 232 of 348 31-May-10
The academic-government group is not completely dominated by Chinese institutions, but they
are a strong presence among mostly Asian universities.
%
LARGER PRESENCE IN FIELD 06-08 97-08 RECE
NT
GENERAL ELECTRIC CO 4 4 100
SHANGHAI JIUNENG ENERGY SCI & TECHNOLOGY 3 3 100
OCEAN POWER TECHNOLOGIES INC 9 22 41
MITSUBISHI ELECTRIC CORP 1 11 9
ENERCON - ALOYS WOBBEN 0 4 0
HITACHI LTD 0 3 0
ISHIKAWAJIMA HARIMA HEAVY IND 0 3 0
Source: Thomson Reuters Scientific
%
SMALLER PRESENCE IN FIELD 06-08 97-08
RECENT
NEPTUNE ENERGY LTD 4 4 100
SAM AN CORP 3 3 100
SRI INT 3 3 100
MARINE CURRENT TURBINES LTD 2 3 67
RENERGYS GMBH 2 4 50
TOYO PLANT KK 1 3 33
WAVECREST LAB LLC 1 3 33
HYUNDAI HEAVY IND CO LTD 0 4 0
Source: Thomson Reuters Scientific
Asia Pacific Clean Tech Handbook 233 of 348 31-May-10
%
ACADEMIC – GOVERNMENT 06-08 97-08
RECENT
CHINESE ACAD SCI ELECTRICAL ENG INST 3 3 100
UNIV TIANJIN 2 2 100
UNIV YAMAGUCHI 2 2 100
KOREA OCEAN RES & DEV INST 5 6 83
GUANGZHOU ENERGY INST RESOURCES 2 3 67
UNIV ZHEJIANG 2 3 67
UNIV SHANGHAI JIAOTONG 1 2 50
UNIV HEBEI AGRIC 1 2 50
UNIV INHA 0 4 0
KAIYO KAGAKU GIJUTSU CENT 0 2 0
Source: Thomson Reuters Scientific
6.6.5 China
Market Size & Growth
Wave
China’s wave energy research has concentrated mainly on fixed and floating OWC devices. In
1995, the Guangzhou Institute of Energy Conversion of the Chinese Academy of Sciences
successfully developed a symmetrical turbine wave-power generation device for navigation buoys
rated at 60 W. Over 650 units have been deployed along the Chinese coast, with a few exported
to Japan. Other wave energy projects in China include:
• Oscillating Water Column (OWC) at Shanwei in Guangdong province consisting of a two
chambered device with a total width of 20 m, rated at 100 kW began operating in
September 1999;
• kW Backward Bent Duct Buoy (a floating OWC with the opening to the OWC chamber
pointing towards the land) in association with Japan;
• Shoreline pivoting flap device (Pendulor) developed by Tianjin Institute of Ocean
Technology of the State Oceanic Administration;
• kW shoreline OWC was installed on Dawanshan Island (in the Pearl River estuary),
which is being upgraded with a 20 kW turbine.
Tidal
The south-eastern coastal areas of Zhejiang, Fujian and Guangdong Provinces are considered to
have substantial potential for tidal energy. Currently there are seven tidal power stations with a
total capacity of 11 MW. It was announced in November 2006 that China had signed a joint
venture with the Italian engineering company Ponte di Archimede International for the application
of its patented Kobold turbine to a site in the Strait of Jintang, in the Zoushan Archipelago.
Asia Pacific Clean Tech Handbook 234 of 348 31-May-10
Drivers & Constraints
China has announced a renewable energy target of 20% by 2020. However, there are no defined
capacity targets for wave and tidal technologies.
Market Players & Competition
Wave
• SDE Technology <Unlisted> has signed an agreement for selling sea wave power plants
throughout China. Construction of the power plants will be financed by investors from Hong
Kong and China.
• Chinese Academy of Sciences Guangzhou Institute of Energy Conversion recently completed
a test on a pilot wave power system
Tidal
• Tidal Electric <Unlisted> signed an agreement with the Chinese Government in 2004 for a
300 MW Tidal Lagoon Project, near the near the mouth of the Yalu River.
• Harbin Engineering University developed a Tidal Power Plant (TPP) in 2006 in Daishan
County of eastern China's Zhejiang province. The 40 kW tidal power station was also involved
the Daishan Technology Bureau.
6.6.6 Japan
Market Size & Growth
Despite having low wave-power levels, extensive research on wave energy has been undertaken
in Japan, which deployed one of the first wave-energy devices (the floating OWC, ‘Kaimei’),
followed by another floating OWC (the ‘Mighty Whale’ in 1989). Particular emphasis has been
placed on the development of air turbines and on the construction and deployment of prototype
devices (primarily OWCs), with numerous schemes having been built:
• a 40 kW OWC was deployed in 1983 on the shoreline structure at Sanze for research
purposes. It has since been decommissioned;
• a five-chambered 60 kW OWC was built as part of the harbour wall at Sakata Port in
1989;
• 10 OWCs were installed in front of an existing breakwater at Kujukuri beach, Chiba
Prefecture. The air emitted from each OWC was manifolded into a pressurised reservoir
and used to drive a 30 kW turbine. This scheme was operational between 1988 and 1997;
• a 130 kW OWC was mounted in a breakwater in Fukushima Prefecture in 1996. This used
rectifying valves to control the flow of air to and from the turbine;
• a floating OWC known as the Backward Bent Duct Buoy was deployed in Japan in 1987.
This continues to be developed in co-operation with institutes in China and Ireland;
• the Pendulor wave energy device has been developed by the Muroran Institute of
Technology. Wave action causes pendulum oscillations of a plate (‘pendulor’) at the
Asia Pacific Clean Tech Handbook 235 of 348 31-May-10
entrance to a box, this movement being used in conjunction with a hydraulic power take-
off to generate electricity.
• The only significant wave-energy device currently being studied is an OWC deployed at
Niigata in 2005.
Drivers & Constraints
The Government established the Basic Plan on Ocean Policy in March 2008, which acts as the
guide for ocean policy for the next five years. The plan includes 12 government measures,
including development and commercialisation of submarine resources such as methane hydrate,
polymetallic sulphides, wave-power generation and tidal-power.
The New Energy and Industrial Technology Development Organization (NEDO) undertook a
survey identifying existing and potential technology for ocean energy.
However, unlike wind or solar energy, ocean energy is not included in the New Energy Law. As a
result, there are no government targets or financial assistance for ocean energy and this will be a
limiting factor, in the development of this technology in Japan.
Market Players & Competition
• Ocean Power Technologies Inc <OPTT.O> has signed an agreement in October 2009 with
a consortium, including Mitsui Engineering and Shipbuilding Co Ltd (2766.T), to develop the
first demonstration wave power station in Japan. The Japanese consortium also includes
Idemitsu Kosan Co (5019.T), Japan's third-largest refiner, and Japan Wind Development Co
Ltd (2766.T), which primarily develops and operates wind farms.
6.6.7 South Korea
Market Size & Growth
South Korea has developed two tidal projects: Sihwa Lake and Wando Hoenggan Water Way.
It was announced in mid-2005 that the country’s first tidal power plant was to be constructed at
Sihwa-Lake, 25 km southwest of Seoul on the Water Resources Corporation acting as project
developer. The artificial lake was created between 1987 and 1994 to provide water for agricultural
purposes. A dam curtailing the tidal currents was constructed but the quality of the water
deteriorated, becoming heavily polluted following a rise in local industry and a consequent
increase in factory wastes.
A sophisticated plan has been formulated whereby the power plant will utilise the head between
high tide on one side and the level of the lake on the other. The scheme will not only provide
generation of electricity but also environmental improvements and tourist attractions. The Korean
Energy Economics Institute reported in April 2007 that construction of the 254 MW plant will be
completed by July 2008 and that annual power generation is expected to be in the region of 550
GWh. On completion Sihwa-Lake will be the world’s largest tidal energy plant.
In May 2007 the city of Incheon announced that it had signed an MOU with Korea Midland Power
Co. and Daewoo Engineering and Construction to build the Ganghwa tidal plant. At 812 MW, the
32-generator plant would overtake the Sihwa-Lake project to be the world’s largest tidal scheme
Asia Pacific Clean Tech Handbook 236 of 348 31-May-10
when the plant becomes operational – planned for 2015. A 7.8 km long dam will connect four
islands: Ganghwa, Gyodong, Seokmo and Seogeom.
Drivers & Constraints
In order to encourage the development of tidal power and other renewable energy schemes, the
South Korean government has introduced a target of boosting the proportion of renewable energy
in the generation mix to 5% by 2011.
Market Players & Competition
Tidal
• Korea Water Resource Corporation <Unlisted> state owned KWRC is developing the
254MW Sihwa tidal power plant at Sihwa lake on Inchon bay. Funding of about US$250M is
being provided by the government’s new renewable energy fund and KOWACO. The system
will comprise 12 units of 21 MW generators and an annual power generation is projected at
552 million kWh. Designed by the Korea Ocean Research & Development Institute. Costs are
estimated at US $320 million with a price per kWh of US $0.09.
• Korean Midland Power Co <Unlisted> A collaboration between Lunar Energy and KOMIPO,
and would create a 300-turbine field in the Wando Hoenggan Water Way off the South
Korean coast by 2015, providing 300MW of renewable energy, enough to power 200,000
homes.
6.6.8 Taiwan
Market Size & Growth
Taiwan has proposed a demonstration project to promote marine energy and prove the viability of
wave energy converters in Taiwanese waters, leading to further development and the installation
of up to 75MW of capacity by 2025.
Drivers & Constraints
There are no defined Renewable Targets for Wave or Tidal Power, except for a 75MW target for
2025.
Market Players & Competition
Wave
• Ocean Navitas <Unlisted> Aegir Dynamo wave energy converter has been selected as the
most suitable technology for development in Taiwanese waters for a demonstration project
6.6.9 India
Market Size & Growth
Wave
The Indian wave energy program started at the Institute of Technology (IIT) under the
sponsorship of the Department of Ocean Development. The National Institute of Ocean
Asia Pacific Clean Tech Handbook 237 of 348 31-May-10
Technology (NIOT) succeeded IIT and continues to research wave energy including the
Backward Bent Duct Buoy (a variant of the OWC design).
Tidal
The main potential sites for tidal power generation are the Gulf of Kutch, the Gulf of Khambhat
(Cambay) and the Gangetic delta in West Bengal. The tidal ranges of the Gulf of Kutch and the
Gulf of Khambhat have a capacity of 900 and 7 000 MW, respectively. The West Bengal
Renewable Energy Development Agency (WBREDA) prepared a project report (on behalf of
the Ministry of Non-Conventional Energy Sources) for a 3.65 MW demonstration tidal power plant
at Durgaduani Creek in the Sundarbans. In February 2007 the WBREDA stated that it had
engaged the National Hydroelectric Power Corporation to implement the Rs 400 million
(approximately US$ 10 million) project on a turnkey basis.
Drivers & Constraints
There are no defined targets for wave or tidal power generation, as part of the 5 year plan.
Market Players & Competition
Wave
• National Institute of Ocean Technology, Chennai. The institute is the technical arm of the
Ministry of Earth Sciences, Government of India, working towards development and
demonstration of field-scale models of ocean renewable energy devices. As a part of its
mandate, NIOT has setup a 100 m3/day island-based low-temperature thermal desalination
plant at Kavaratti, India, in 2005 and demonstrated a 1 000 m3/day experimental barge-
mounted desalination plant off Chennai Coast, India, in 2007. Currently, work is underway to
establish three island-based desalination plants in three remote islands in the Lakshadweep
region of India, scheduled to be commissioned by June 2009. NIOT is also working on wave
powered devices meant for remote islands.
Tidal
• National Hydroelectric Power Corporation <NHPC.BO> involved in the 3.65 MW
demonstration tidal power plant at Durgaduani Creek in the Sundarbans.
6.6.10 Philippines
Market Size & Growth
Tidal
A tidal fence across the Dalupiri Passage between the islands of Dalpiri and Samar was
proposed in 1997 between the Philippines Government and Blue Energy Engineering
Company. The site, on the south side of the San Bernardino Strait is expected to generate up to
2200 MW of peak power (with a base daily average of 1100 MW). However work stopped in 1998,
due to the Asian Financial Crisis.
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Drivers & Constraints
Philippines enacted the Renewable Energy Law in 2008 and expected to define renewable
energy targets in 2010. However, it is unlikely that there will be any allocation of wave and tidal
power, as part of the RPS.
Market Players & Competition
• Blue Energy Company <Unlisted> is a Canadian clean energy technology company
commercializing a vertical axis hydro turbine capable of converting tidal currents into firm,
renewable electricity.
6.6.11 Indonesia
Market Size & Growth
Indonesia has been indentified as a country with tidal power resources. However, there are no
plans to develop any demonstration or pilot projects.
Drivers & Constraints
There are no renewable energy targets includes for marine and tidal power generation.
Market Players & Competition
Not applicable
6.6.12 Thailand
Market Size & Growth
No projects planned
Drivers & Constraints
There is no renewable energy target included for marine and tidal power generation.
Market Players & Competition
Not applicable
6.6.13 Malaysia
Market Size & Growth
No projects planned.
Drivers & Constraints
There is no renewable energy target included for marine and tidal power generation.
Market Players & Competition
Not applicable
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6.6.10 Australia
Market Size & Growth
Australia has a number of projects in wave and tidal power, with a number of companies setting
up pilot schemes. Key projects include:
Project Capacity Company Technology
Port Kembla 500kW Oceanlinx Wave
Exmouth Carnegie Wave Wave
King Island Bio Power Wave
Philip Island 150kW Atlantis Wave
Secure Bay (Derby) 1 480MW Derby Hydro Power Tidal
Walcott Inlet 2 800MW Tidal
Flinders Island Bio Power Tidal
Source: Company Publications
Drivers & Constraints
There are no specific programs or FiTs for Australia for ocean energy, but an expanded program
has aimed at increasing the installed capacity of renewable energy within Australia, as part of the
government’s target of 20% for renewables. Australia leads the regions in companies and
projects in this sector, with a number of projects rolled out including:
Market Players & Competition
Wave
• Oceanlinx <Unlisted> has a 500-kW demonstration wave energy project at Port Kembla and
will be re-installed, along with full grid interconnection. Other Oceanlinx projects are planned
for southern Australia. It incorporates a parabolic wave collector to focus waves over a wide
area onto a central OWC (to compensate for the lower wave power levels near shore) and a
novel variable-pitch turbine that has higher efficiencies than turbines normally used in OWCs.
The project has been carried out with support from the Australian Greenhouse Office, under
its Renewable Energy Commercialisation Programme.
• Carnegie Wave Energy <CWE.AX> is focused on developing and commercializing its CETO
Wave Energy technology, which it developed a pilot project at its Fremantle Wave Energy
facility. It also announced that it has been commissioned by the Commonwealth of Australia,
via the Department of Defence (DoD), to assess the feasibility of utilising CETO wave energy
technology to supply power to the Defence Communications Station Harold E Holt (HEH) at
Exmouth in the North West of Western Australia.
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• Bio Power Systems <Unlisted> continues to progress its proposed demonstration projects in
Bass Strait via a wave energy facility (King Island) and a tidal energy facility (Flinders Island).
Their bioWAVE™ wave energy conversion system is based on the swaying motion of sea
plants in the presence of ocean waves. Their vertically mounted, waving fronds capture a
wide range of incident wave energy without using a large rigid structure and can orientate
themselves to the prevailing wave direction. Themotion is turned into electricity by their O-
DRIVE™ generator, which uses a simple single-stage reciprocating gear mechanism, a
direct-drive synchronous permanent magnet generator and high-inertia flywheel to produce
smooth AC power. The key innovation is the ability of the system to avoid large loadings in
extreme waves by lying flat on the sea bed.
• Ocean Power Technologies <OPTT.O> Ocean Power Technologies, Inc. is engaged in
developing and commercializing systems that generate electricity by harnessing the
renewable energy of ocean waves. The Company offers two types of products as part of the
line of PowerBuoy systems, including a utility PowerBuoy system and an autonomous
PowerBuoy system. The utility PowerBuoy system is capable of supplying electricity to a local
or regional electric power grid. The autonomous PowerBuoy system is designed to generate
power for use independent of the power grid in remote locations. The PowerBuoy system
consists of a floating buoy-like device that is loosely moored to the seabed so that it can freely
move up and down in response to the rising and falling of the waves, as well as a power take
off device, an electrical generator, a power electronics system and control system, all of which
are sealed in the unit. OPT achieved substantial milestones in 2Q, which should help solidify
its market position going forward. Milestones include:
• $66.5m grant from the Australian government;
• Entering Japanese market;
• continuing to build its relationship with partners (e.g. LMT)
• diversifying its revenue base /broadening product applications (successful trial of
OPT’s Underwater Substation Pod, new Navy contract to provide a wave energy
conversion system) and
• on track to deploy its first PB150 in mid-CY 2010
• Atlantis Resources Corporation <Unlisted> installed a 150-kW tidal device at Phillip Island
(south of Melbourne) during 2008.
Tidal
• Derby Hydro Power <Unlisted> has put a proposal to construct a 50 MW tidal plant in the
Derby region. The project received a $1 million grant through the Australian Greenhouse
Office's Renewable Energy Commercialisation Program to further develop the project.
The inlets would be connected via an artificial channel. By damming each inlet, differences in
water levels in each basin could be controlled which would enable flow via the connecting
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channel. Power take-off would be achieved from a bank of turbines housed in a structure built
in this channel.
6.6.11 New Zealand
Market Size & Growth
Project Capacity Company Technology
Kaipara Harbour Crest Energy Kaipara Tidal
Cook Strait 1MW Neptune Power Tidal
Tory Channel 1MW Energy Pacifica Tidal
Source:
Drivers & Constraints
There are no national targets for deployments of marine energy projects. However, the recently
published New Zealand Energy Strategy set a target of 90% of generation to come from
renewable sources by 2025 (currently 65%). The New Zealand government announced the first
award of funds from the Marine Energy Deployment Fund (MEDF). The fund aims to promote
marine energy by offering NZD 2 million per year over the next four years for the deployment of
prototypes in New Zealand waters. The first award – of NZD 1.85 million – was made to Crest
Energy Kaipara Limited to assist in the deployment of three tidal turbines in New Zealand’s
largest harbour, the Kaipara Harbour. The company plans to deploy up to 200 tidal turbines
progressively over 10 years.
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Market Players & Competition
Wave
• Ocean Power Delivery <Unlisted> is in talks with Auckland-based firm Power Generation
Projects (PGP) and local manufacturers will soon be asked for quotes to build up to 140
machines.
Tidal
• Crest Energy Kaipara Limited <Unlisted> was granted consents and recommended the
approval of two further consents to the Minister of Conservation in late August 2008. In early
September 2008, four parties, including Crest Energy itself, appealed the consents, requiring
a hearing in the Environment Court. Evidence was provided to the court in late 2008 and the
hearings have been set down for mid-2009.
• Neptune Power <Unlisted> was granted non-notified consent by Greater Wellington Regional
Council, allowing it to deploy a single 1-MW prototype tidal turbine in Cook Strait. A non-
notified consent means that there were no public hearings and the consent was granted
essentially to allow environmental monitoring of a single device deployment. Neptune Power
has indicated that it intends to deploy the prototype in late 2009.
• Energy Pacifica Limited <Unlisted> is to deploy twenty 1-MW tidal turbines in Tory Channel
indicated that it intended to submit resource consent applications before the end of 2008.
6.6.12 Summary of Companies involved in Wave/Tidal Technology
Code Compay Name Market PE ratio Country Sector
Cap (M
Dollars)
Carnegie Wave
CWE.AX Energy Ltd $54.8 N/A Australia Energy Sources
Ocean Power
OPTT.O Technologies Inc $70.3 N/A USA Utilities-Electrical & Gas
National Hydroelectric
NHPC.BO Power Corp Ltd $8,540.3 N/A India Utilities-Electrical & Gas
Unlisted Atlantis Resources N/A N/A Singapore Tidal
Unlisted Derby Hydro Power N/A N/A Australia Tidal
Unlisted Oceanlinx N/A N/A Australia Wave
Unlisted Bio Power Systems N/A N/A Australia Wave
Unlisted Crest Energy N/A N/A New Zealand Wave
Unlisted Neptune Power N/A N/A New Zealand Wave
Unlisted Energy Pacifica N/A N/A New Zealand Wave
Korea Water
Unlisted Resource Corporation N/A N/A South Korea Tidal
Code Compay Name Market PE ratio Country Sector
Cap (M
Dollars)
Asia Pacific Clean Tech Handbook 243 of 348 31-May-10
6.7 Geothermal
6.7.1 Background
Located on the “Ring of Fire”, Asia Pacific has the largest potential natural resource for
geothermal energy in countries including” Japan, New Zealand, Indonesia, Philippines and Papua
New Guinea. In addition, with the advancement of new drilling techniques and Enhanced
Geothermal Systems (EGS), countries such as Australia have started to commercialise their
geothermal ‘hot rock’ resources.
Indonesia and Philippines have the largest installed geothermal capacity in the region. While
Australia, seem to be leading the region in the new EGS space, with 9 companies launched on
the ASX to exploit this resource. China and Korea also appear to be investigating their respective
geothermal potential.
6.7.2 Targets & Incentives
Asia Pacific Geothermal Market (MW capacity)
Country 2007 2010E 2015E 2020E
China 28 28 28 28
Japan 535 535 535 535
S Korea 21 21 21 21
Taiwan 0 50
India 0
Australia 0.12 10,000GWh*
NZ 452
Indonesia 992 1,900 9,500
Malaysia 0
Thailand 0
Philippines 1,970
Source: GIA, EIA, Government Publications, Estimates
6.7.3 Geothermal Process and Technologies
Geothermal technology depends on the type and location of the natural resource. Since it is not
practical to transport high-temperature steam over long distances by pipeline due to heat losses,
most geothermal plants are built close to the resource. A geothermal system consists of three
main elements: a heat source, a reservoir and a fluid. The heat source can be either a very-high-
temperature (> 600°C) magmatic intrusion that has reached relatively shallow depths (5 to 10 km)
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or, as in certain low temperature systems, the Earth’s normal temperature, which increases with
depth. The heat source is natural, whereas the fluid and the reservoir can be introduced.
Geothermal power plants tend to be in the 20 MW to 60 MW range and the capacity of a single
geothermal well usually ranges from 4 MW to 10 MW. Typical minimum well spacing of 200 m to
300 m is established to avoid interference. There are three main power plant technologies are
being used to convert hydrothermal fluids to electricity. The type of conversion depends on the
state of the fluid (steam or water) and on its temperature:
• Dry steam power plants use hydrothermal fluids primarily in the form of steam. The steam
goes directly to a turbine, which drives a generator that produces electricity. This is the oldest
type of geothermal power plant.
• Flash steam power plants use hydrothermal fluids above 175°C. The fluid is sprayed into a
tank (separator) held at a much lower pressure than the fluid, causing some of the fluid to
vaporise rapidly, or “flash” to steam. The steam then drives a turbine.
• Binary-cycle power plants use hot geothermal fluid (below 175°C) and a secondary (hence,
“binary”) fluid with a much lower boiling point than water – both passing through a heat
exchanger. Heat from the geothermal fluid causes the secondary fluid to flash to steam, which
then drives the turbines. Since binary-cycle generation system makes moderate-temperature
geothermal fluids usable for power generation, this is being explored in countries with lower
temperature geothermal resources.
The total energy efficiency is around 10% for electricity production. Because geothermal power
plants operate at relatively low temperatures compared to other power plants, they eject as much
as 90% of the heat extracted from the ground into the environment. The minimum temperature for
electricity generation is 90°C.
Despite the relatively low efficiency in power generation, geothermal does not suffer from
intermittency issues and can operate 24 hours per day and thus provide base-load capacity.
A relatively new concept in geothermal power is “Hot Dry Rock” (HDR), also known as “Hot Wet
Rock” (HWR), “Hot Fractured Rock” (HFR) and “Enhanced Geothermal Systems” (EGS). The
basic concept is to increase the permeability of the natural fractures of the basement rocks, install
a multi-well system, force the water to migrate through the fracture system (“reservoir”) by using
enhanced pumping and lifting devices and, finally, use the heat for power production. HDR is
expected to contribute to further geothermal development in the decades to come and is the
technology use for geothermal production in Australia.
6.7.4 China
Market Size & Growth
China only has around 30MW geothermal capacity in Tibet, at there main locations at Yangbajain
(24MW), Langju (2MW) and 1 MW binary power station in Nagqu. There are also two small 300
kW plants are operating in Guangdong and Hunan.
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There are not any targets for growth in geothermal capacity in China, as part of the 2020 target.
However the following was proposed by the geothermal community in China:
• Accelerate the exploration and use of the deep reservoirs at Yangbajing. The objective would
be to meet the electric needs of the Lhasa area.
• Develop the Yangyi Geothermal Field with a modern 10 MW-size power plant.
• Explore the deep reservoirs in the Naqu Field and expand the existing installed capacity.
• Establish a 3 - 5 MW pilot project at the Ruili Geothermal Field, followed by development of
the Rehai Field with a 10 MW plant.
• Develop the fields around Litang in western Sichuan.
Drivers & Constraints
China’s geothermal resources are limited to Tibet and Western China. There are not any targets
for growth in geothermal capacity in China, as part of the 2020 target and this will limit capacity
growth.
Market Players & Competition
No companies identified in this sector.
6.7.5 Japan
Market Size & Growth
Japan, as a volcanic country, is blessed with potential geothermal resources for development.
However, the construction of geothermal power plants has been restricted, due to factors such as
the restrictions in National Parks and hot spring (onsen) resort areas. Capacity stands at 534 MW
and not projected to grow.
However, Mitsubishi Materials Corp., Kyushu Electric Power Co. and several other Japanese
firms announced plans in 2009 to start developing geothermal power for the first time in nearly 20
years. Mitsubishi Materials and J-Power plan to collectively invest 40 billion yen ($433.9 million)
to build a geothermal power plant in the Akita Prefecture in northern Japan to start operations in
2016. Mitsubishi currently owns two geothermal power plants while J-Power has one. A desire to
build generate clean power is fueling the resurging interest in geothermal power. Tapping steam
and hot water for generating electricity also could help the country meet its goals of cutting
greenhouse gas emissions.
Drivers & Constraints
The “Renewables Portfolio Standard Law” was enacted in 2003, where geothermal energy was
included as renewable energy in this law in 2006. However, there is no stand-alone geothermal
legislation which defines geothermal resources, governs their use or development in Japan. Total
capacity remains at about 534 MW.
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Geothermal research at national universities (Kyushu and Tohoku) and AIST is supported by
grants from the government. Other institutions that fund geothermal R&D are CERL in CRIEPI.
Market Players & Competition
While there is no proposal to increase geothermal capacity in Japan, Japans’ turbines and
generators still have 75% share in the world geothermal power plants and export to other markets,
such as Indonesia and Philippines. Key manufacturers are MHI, these makers still continue to
invest in these R&D fields
• Fuji Electric Systems Co., Ltd <6654.T> supplies turbines and generators as a single
package for flash steam geothermal plants of 30 MW capacity.
• Mitsubishi Heavy Industries <7011.T> is involved in the design, manufacture, installation,
and servicing of flash steam power plants.
• Toshiba Corp <6502.T> Its product range includes flash steam turbines, binary cycle power
generating equipment, and the Super Rotor Package for geothermal turbine using its latest
advanced technology.
• Mitsubishi Materials <5711.T> and J-Power plans to invest roughly 40 billion yen ($433.9
million) and construct a geothermal power plant in Yuzawa in Akita Prefecture, northern
Japan.
• Kyushu Electric Power <9508.T> operates 5 geothermal power stations with a total capacity
of 209,500kW, about 40% of Japan's total.
6.7.6 South Korea
Market Size & Growth
Though Korea’s geothermal resources are characteristically low-temperature hot springs
associated with localized, deep fractures, a high heat flow anomaly was recently discovered and
is being investigated in the Pohang geothermal development program. Geothermal heat pump
installations are accelerating, with the total heat produced about doubling every year.
Drivers & Constraints
The Korean Government provides support and incentives for renewables, with geothermal
subsidies of about US$ 9.5 M paid in 2007. Korea’s R&D activities are concentrated on
exploration and exploitation of low-temperature geothermal water for district heating and
characterization of geothermal resources.
Market Players & Competition
No companies identified
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6.7.7 Taiwan
Market Size & Growth
Taiwan lies on major geological fault-lines along the Pacific Rim, and has abundant geothermal
resources. A comprehensive exploration effort has indicated a total potential of up to 1 000 MW.
However, most of the resources are located in remote areas or protected lands and that makes
them difficult to develop.
Drivers & Constraints
The Government has set a target of 50 MW for 2010.
Market Players & Competition
Currently, a BOT project at Chin-Suei, I-Lan County is under development and is aimed at the
integration of geothermal energy usage with recreational facilities. It is planned to construct a 5
MW plant by 2008.
6.7.8 India
Market Size & Growth
Not a focus for India
Drivers & Constraints
Geothermal is not a focus in India
Market Players & Competition
No companies identified in this sector.
6.7.9 Indonesia
Market Size & Growth
Indonesia is the third largest generator of geothermal power, after the US and Philippines.
Indonesia has focused its renewable policy on geothermal, small hydro and biomass. New
geothermal regulations have removed Pertamina from its central role in steamfield development
and passed that responsibility to the regions.
Indonesia launched its 10,000MW program to increase its use of geothermal, as a primary source
of power generation. The Indonesian government said it is studying plans to merge the
geothermal units of three state-owned firms - PT PLN, oil refiner PT Pertamina and gas firm PT
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Perusahaan Gas Negara. However, there are plans to encourage foreign investment for IPP
generation.
Drivers & Constraints
Indonesia announced the 10 000 MW Crash Program Phase II in 2008, which aims to increase
renewable generating capacity, particularly from geothermal and hydropower. Targets have been
set to boost the capacity of geothermal plants to 9.5 GW by 2025.
Market Players & Competition
• PLN <Unlisted> has been designated by the Indonesian government to construct 11
geothermal power plants with a total capacity 10,000 MW by 2014.
• Star Energy <Unlisted> through its subsidiary Magma Nusantara Ltd has developed the
Wayang Windu power generation project, which is spread over 12,960 hectare of geothermal
resources contract area producing 400 MW of electricity.
6.7.10 Malaysia
Market Size & Growth
Tawau, Sabah in Malaysia has an electricity generation potential of up to 67 MW from
geothermal resources following the discovery of a geothermal site in Apas by a study by the
Mineral and Geoscience Department.
Drivers & Constraints
Under the Ninth Malaysia Plan the government had allocated RM1.5 million (US$ 420,000) for
research on the site and it was hoped that drilling could start under the Tenth Malaysia Plan.
Market Players & Competition
Geothermal is still in research and development stage and no companies have set up projects for
commercialization of geothermal resources.
6.7.11 Philippines
Market Size & Growth
The Philippines has a total installed geothermal capacity of 1.9GW, secondl only to the US and is
a central component of its comprehensive Renewable Energy Act. .
The Philippine Department of Energy plans to offer investors four new areas for geothermal
exploration. The areas are in Luzon and one is in Mindanao. The government is keen to
increase the capacity, and wants to invite foreign firms to play a more prominent role in the sector.
Drivers & Constraints
The Philippine government enacted the Renewable Energy (RE) Act in 2008 and is in the
process of setting renewable energy targets in 2010 that will include Geothermal Energy.
Asia Pacific Clean Tech Handbook 249 of 348 31-May-10
Market Players & Competition
• Energy Development Corporation <EDC.PS> is the leading generator of geothermal power
in the Philippines and accounts for 30% of the country’s power generation. formerly PNOC
Energy Development Corporation, is engaged in the exploration, development and operation
of geothermal energy. It is also involved in geothermal drilling and consultancy services. EDC
became a subsidiary of Red Vulcan Holdings Corporation on November 29, 2007, which is a
wholly owned subsidiary of First Gen Corporation. The Company operates 12 geothermal
steamfields in the five geothermal service contract areas: Leyte Geothermal Production Field,
Southern Negros Geothermal Production Field, Bacon-Manito Geothermal Production Field,
Mindanao Geothermal Production Field and No. Negros Geothermal Production Field. On
November 17, 2008, EDC acquired 60% of First Gen Hydro Power Corporation (FG Hydro)
from First Gen Corporation.
• Chevron Geothermal Philippines Holding Inc. <Unlisted>
• Aboitiz <AP.PS> operates through two segments: power generation and distribution. Its
subsidiaries include Hedcor Tamugan Inc., Hedcor Sibulan Inc., Cleanergy Inc., Hydro
Electric Development Corp. and Mactan Enerzone Corporation.
Figure 6.17
6.7.12 Thailand
Market Size & Growth
There are approximately 64 geothermal resources in Thailand, but major ones are in the north of
the country, especially the geyser field at Fang District in Chiangmai Province. Survey on the
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potential of geothermal energy development at Fang District commenced in 1978, with technical
assistance and experts from France later in 1981.
Drivers & Constraints
The main driver for renewable energy is Thailand’s 15 year Master plan. However focus on
renewable energy will be on hydro, biomass and biofuels.
Market Players & Competition
• Electricity Generating Authority of Thailand (EGAT) <Unlisted> is operating a 300-kW
binary cycle geothermal power plant at Fang District, generating electricity at about 1.2 million
kWh per year. EGAT produces more than 15,000 MW of electricity and buys another 10,600
MW from independent power producers. EGAT not only generates or buys most of the
nation's power; it holds a monopoly on transmission to the distributors (Metropolitan Electricity
Authority and Provincial Electricity Authority). The utility operates hydroelectric, thermal, and
alternative power plants, and provides engineering, maintenance, and other energy-related
services.
6.7.13 Australia
Market Size & Growth
Australia’s potential electricity generating geothermal resources consist of Hot Sedimentary
Aquifers (HSA), e.g. Hydrothermal Groundwater Resources, and Hot Rock technologies
(HR), including Hot Dry Rocks (HDR) and Hot Fractured Rocks (HFR). Geothermal generation
in 2007 amounted to 1.8 GWh/yr from a 120 kW binary plant in Queensland. The total direct use
installed capacity was about 130 MW.
Current investment to explore for, and demonstrate the potential of, geothermal energy for power
generation in Australia is focused on:
• HR EGS plays in the South Australian Heat Flow Anomaly (SAHFA) and the eastern half of
Tasmania, and
• HSA plays in the Otway and Gippsland Basins in the States of South Australia and Victoria
By the end of 2009, 33 companies applied for 277 licenses, with 9 Australian companies having
reached a drilling phase in their geothermal projects. These 9 companies are listed on the ASX.
Through the expanded Renewable Energy Target (RET), the Australian government’s goal is to
have at least 20 per cent of Australia’s electricity supply coming from renewable energy sources
by 2020. This will provide a cross-subsidy to the renewable energy sector worth many billions of
dollars. The Australian Government's modelling shows that by 2020, geothermal projects could
take up one fifth of the target, or around 10,000 GWh.
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Drivers & Constraints
The main driver for geothermal capacity expansion has been the RET target of 20% renewable
energy target by 2020, with geothermal targeted as a key sector.
• South Australia - The Petroleum Act recently underwent a review and amendment process
to be renamed the Petroleum and Geothermal Energy Act, 2000. A paper outlining
proposed amendments to the Petroleum Act 2000 closed for public comment on 29 June
2007. The Petroleum (Miscellaneous) Amendment Bill 2008 was released in April 2008 for
public consultation. The intended changes will increase the maximum size of geothermal
licences to 3,000 km2 and lower licence fees. It is expected that the Petroleum and
Geothermal Energy Act, 2000 will be enacted in the near future.
• Victoria - The Geothermal Energy Resources Act (GER Act) was passed in April 2005 and
the Regulatory Impact Statement and Geothermal Energy Resources Regulations, 2006
came into effect during 2006.
• New South Wales - The Mining Act, 1992, governing geothermal exploration in New South
Wales is on its final review stage for a bill amendment. Currently geothermal exploration is
considered as Group 8 -Geothermal Substances. Application for a Group 8 geothermal
exploration licence requires the Minister’s consent especially if it is under mineral allocation
areas, usually within coal basins. In other areas of the state over the counter applications are
still accepted. If successful, a maximum 5-year term is granted based on work program
commitments.
• Queensland - The Geothermal Exploration Act 2004 and Geothermal Exploration
Regulation 2005 provides a competitive permit system to encourage and facilitate efficient
and responsible exploration for the State’s geothermal resources.
• Tasmania - Geothermal exploration and development has been covered for over a decade by
the Mineral Resources Development Act (1995) (MRD Act) and using this tried legislation,
exploration has been able to be conducted with little regulatory impediment or uncertainty.
• Western Australia - The West Australian (WA) Petroleum and Geothermal Energy
Resources Act 1967 (PGERA67) was proclaimed on 15 January 2008, providing legislative
coverage for both conventional (hydrothermal) geothermal energy and hot dry rock
geothermal energy.
• Northern Territory - The Northern Territory of Australia Geothermal Energy Act, 2009
has been passed and assented to and is expected to come into operation in mid-August 2009.
The NT Government is in the process of developing the Regulations, Forms and Guidelines
prior to triggering the Act.
Market Players & Competition
• Geodynamics <GDY.AX> Geodynamics is Australia’s largest geothermal company, with a
specific focus on using enhanced geothermal systems (EGS) methods to extract heat from
hot rocks. The company has raised some AUD$ 142 M in the 5 years to December 2007.
Asia Pacific Clean Tech Handbook 252 of 348 31-May-10
Efforts are focused in the Cooper Basin area in South Australia and three wells. Plans are to
drill the fourth well, Jolokia. For a detailed company profile, see Appendix A.
• Eden Energy Limited <EDE.AX> Eden Energy is the second largest geothermal company
listed on the ASX. Chowilla 1 was drilled to 512 m in the Renmark-Tararra Trough, in the
Riverland of South Australia, 40 km northeast of Renmark. Chowilla-1 is located to establish
geothermal resources in proximity to transmission lines running to Adelaide and Broken Hill.
• Petratherm Limited <PTR.AX> Petratherm has drilled two wells to establish thermal gradients
down to about 600 m above exceptionally high heat producing granites in South Australia. In
June 2006, the phase-2 drilling program at Paralana was successfully completed with the
geothermal test well being extended to 1,807 m. Temperature logging of the well suggests a
world class thermal resource is located at Paralana, with extrapolations indicating 200 ºC at a
depth of 3,600 m within insulating sedimentary rocks that are predicted to be susceptible to
fracture stimulation. Petratherm refers to this play concept as Heat Exchange Within
Insulator (HEWI). High heat producing basement rocks are a prerequisite for high quality
HEWI plays. Petratherm plans to create a HEWI system with the circulation of water between
the two Paralana project wells to demonstrate hot rock EGS energy production from an initial
small scale power plant that will supply up to 7.5 MW to a growing electricity market 10 km
away at the Beverley Uranium Mine. This plan is the subject of a Memorandum of
Understanding between Petratherm and the owners of the Beverley Mine, Heathgate
Resources. An ASX-listed upstream oil and gas company (Beach Petroleum) has taken an
equity position in the Paralana project. In November 2007, Petratherm signed a Letter of
Intent for Ensign International Energy Services to secure a suitable rig and drill a deep
Paralana well. Stimulation, flow testing and the drilling of a second well would follow, pending
results of the first deep Paralana well.
• Torrens Energy Limited <TEY.AX> Torrens Energy drilled five wells of its nine well program in
its Lake Torrens project area in late 2007. The aim of this program is to delineate heat flow
trends as a precedent to locating deep proof-of-concept wells in proximity to the National
Electricity Grid and power markets.
• Geothermal Resources Limited <GHT.AX> Geothermal Resources Limited is exploring a
gravity low that could be a high heat producing granite associated with hot rock reservoirs
predicted to be over 200 ºC at roughly 4,000 m depth in its Frome project area. Potential hot
rock power markets for the Frome project are electricity consumers connected to the National
Electricity Grid, some 120 km away at the township of Broken Hill. Pending further
encouraging results from the shallow drilling in 2008 and rig availability, Geothermal
Resources will then drill deeper wells in the Frome area.
• Greenearth Energy Limited <GRE.AX> Greenearth is the operator of the Lakes Oil
Geothermal Exploration Permits (GEPs) in the State of Victoria. Greenearth also has rom four
additional wells: Hazelwood-1 and Boola Boola-2; Alberton-1; and Napier High-1 (in an
application area for a Petroleum Retention Licence, will be drilled after the grant of the
relevant PRL). Greenearth has retained rights to deepen, core and log Boola Boola-2 from
depths below 1,715 m.
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• Panax Geothermal Limited <PAX.AX> Scopenergy was acquired by Uranoz (an ASX-listed
company changing its name to Panax Geothermal) in October 2007.
• Green Rock Energy <GRK.AX> Green Rock Energy Limited is a public listed company on the
ASX and aims to explore, develop and produce geothermal energy from both hydrothermal
systems and EGS for electricity and direct use. Green Rock held exploration licences for
three major project areas in South Australia: Olympic Dam, Patchawarra and Upper Spencer
Gulf. The company owns 100 % interest in an area at BHP Billiton’s Olympic Dam mine,
where hot granites at ~ 2 km depth have been located.
• KUTh Energy Limited <KEN.AX> KUTh Energy has a shallow drilling program of 33 wells in
eastern Tasmania. The shallow drilling campaign, when completed, will allow systematic
down-hole temperature measurements across all of its +14,000 km2 of tenements, leading to
a high quality heat flow map. The heat flow map will allow optimal location of holes initially to
1,500 m, and then deep production holes into the thermal basement.
6.7.14 New Zealand
Market Size & Growth
New Zealand is located has an abundance of natural geothermal resources and currently
generates 452MW (5%) of its power from Geothermal and is expected to increase its capacity
with the potential development of an additional 600 MW over the next few years. Contact Energy
and Mighty River Power have stated that they each expect to spend about NZ$ 1 billion in
developing geothermal resources over the next 10 years.
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The NZ Government banned all new fossil fuel (non-renewable) power plants for the next 10
years in 2007 and Geothermal was recognised as a resource vital to New Zealand’s future
energy mix and is economically competitive at the current average wholesale electricity cost of
about US$50/MWh and could double with the correct incentives in place.
However, there are no direct government incentives, in the form of renewable energy feed-in
tariffs (FiT) or subsidies in New Zealand. Total capital costs of generation from new geothermal
plants now average about NZ$ 3-4 M/MW installed. Drilling costs have increased significantly in
recent years by about 50% to about NZ$ 4 M/2km for a deep well.
Geothermal comprises about 4.9 % of the national capacity. However, it generates 7.7 % of the
total national electricity.
Summary of New Zealand Geothermal Power Projects
Capacity Direct Use Constructing Planned
Geothermal
Start Date
System
(MW) (MW) (MW) (MW)
Wairakei 1958-2005 176 234-162
Poihipi 1996 55
Tauhara Centennial 2007 100 23
Tauhara Expansion 220
Kawerau 1958 14 200 100
Ka 24 10
Ohaaki (104 MWe) 1989 50
Rotokawa 1997 35 132
Mokai 1999-2007 112
Ngawha 1998 10 15
Ngatamariki 80
Total 452 300 125 527
Source: GIA
Drivers & Constraints
New Zealand has the highest percentage of power generated from renewable energy in Asia
Pacific and a number of regulations and policies that is supposed to drive that number up to 90%
by 2025. However, a change in government in 2008 has forced a review of the Energy Strategy
and may impact the projected growth in geothermal energy in New Zealand.
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Market Players & Competition
Companies involved in Geothermal in NZ include:
• Contact Energy <CEN.NZ> is a diversified and integrated energy company, focusing on the
wholesale generation of electricity and the retail sale of electricity, natural gas and liquefied
petroleum gas (LPG), and related services in New Zealand. The Company operates in two
segments: retail and generation. The retail segment encompasses any activity that is
associated with the Company’s supply of energy and related services to end-user customers.
The generation segment encompasses any activity that is associated with the Company’s
generation of electricity or steam and its sales to the wholesale electricity market. It also
includes all activities in relation to the gas storage facility at the Ahuroa reservoir, including
the cushion gas required to enable the field to be used for storage.
6.7.15 Summary of Companies involved in Geothermal
Code Compay Name Market PE ratio Country Sector
Cap (M
Dollars)
Kyushu Electric Power
9508.T Co Inc $10,584.7 13.0 Japan Utilities-Electrical & Gas
FUJI ELECTRIC Electronic Components &
6654.T INDUSTRY CO LTD $63.9 22.4 Japan Instruments
Mitsubishi Heavy
7011.T Industries Ltd $13,117.9 1238.5 Japan Machinery & Engineering
GDY.AX Geodynamics Ltd $163.7 N/A Australia Energy Sources
PAX.AX Panax Geothermal Ltd $39.7 N/A Australia Energy Sources
PTR.AX Petratherm Ltd $21.4 N/A Australia Energy Sources
TEY.AX Torrens Energy Ltd $13.4 N/A Australia Utilities-Electrical & Gas
WAS.AX Wasabi Energy Ltd $22.3 N/A Australia Utilities-Electrical & Gas
Geothermal
GHT.AX Resources Ltd $9.3 N/A Australia Energy Sources
Green Rock Energy
GRK.AX Ltd $7.0 N/A Australia Metals - Non Ferrous
HRL.AX Hot Rock Ltd $8.5 N/A Australia Utilities-Electrical & Gas
KEN.AX KUTh Energy Ltd $6.2 N/A Australia Energy Sources
Greenearth Energy
GER.AX Ltd $9.7 N/A Australia Energy Sources
Energy Development
EDC.PS Corp $2,354.1 N/A Philippines Utilities-Electrical & Gas
AP.PS Aboitiz Power Corp $1,945.0 17.8 Philippines Utilities-Electrical & Gas
Source: Thomson Reuters
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6.8 Smart Grid
6.8.1 Background
The term “Smart Grid” refers to a system that incorporates information and communications
technology into every aspect of electricity generation, delivery and consumption to improve
reliability and service, and reduce costs and improve efficiency. The driver for a smart grid is the
need to feed in and manage the intermittent renewable energy from multiple sources, such as
wind and solar energy.
Countries across APR have embraced the concept of Smart Grid and recognize that it is a key
component of fulfilling the various renewable energy targets. There have been a number of recent
announcements from China, Japan, South Korea, Taiwan, Australia, New Zealand looking to take
the lead in smart grid technology.
China, Japan, South Korea and Taiwan have targeted this sector and companies in their
electronics sector see this as an extension to the electronics and solar businesses.
6.8.2 Targets & Incentives
A number of recent announcement have been made by countries across Asia Pacific, in a bid to
take a lead in this growing market, with China, Japan and South Korea investing about $9 billion
in 2010.
• China has announced a investment in its grid system, that will include smart grid technology
• Japan has launched a number of demonstration projects via NEDO and Japanese companies
are looking to target the US market
• South Korea has started work on its pilot scheme in Jeju Island and also targeting other
countries with its smart grid technology
• Taiwan has targeted a pilot scheme and Taiwanese companies
• Singapore has started a pilot scheme in 2009
• Australia has a launched a 100m government fund to set up a smart grid scheme. There are
also State projects in Victoria, NSW and Western Australia.
• New Zealand is in the second phase of its smart grid upgrade
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6.8.3 Smart Grid Process
The existing power generation system has not really changed, since its invention in the late 19th
century. Grids are essentially a central driven supply driven one way so that it generates and
supplies power to a community, based on estimates of past demand requirements. The break up
of the traditional vertically integrated utility, along with the introduction of new generating sources
(IPPs and end consumers), along with separate retailers, means that there is a need for a more
integrated and flexible grid that can cater for the drastic changes in both supply and demand. This
new “intelligent system” is commonly referred to as the smart grid. There are five basic
components required in a new smart grid system.
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Figure 6.20 – Smart Grid
Generation Transmission Distribution Marketing Consumpti
Utility Utility Utility Retailer Consumer
IPP
Consumer
Demand Driven ATO ADO AMI AMR
Multiple sources Real-time simulation, Monitoring of the intelligent metering, Solutions that
of generation need advanced accident distribution assets. real-time electricity- automatically
evaluation, wide-area consumption gather data from
a flexible system Automated and
protection and monitoring system energy metering
that can handle Congestion Computerized and advanced devices
diverse generation management substations metering data-
management system
Due to the break up of traditional vertically integrated utilities that allowed retailers and other power generators onto the grid,
There is a need for an integrated, flexible system to manage the changes in both supply and demand
Advanced transmission operations (ATO)
ATO includes real-time simulation, advanced accident evaluation, wide-area protection and
congestion management. It can decrease the blackout risk of large-scale grids and connect
intermittent power supply onto the grid. Wide Area Management System (WAMS) – Integrated
system that monitors and controls elements of the electrical power grid to ensure availability and
improve reliability and efficiency of the network
Advanced distribution operations (ADO)
ADO will adopt the visible monitoring of the distribution assets. ADO can be self healing based on
Distribution Fast Simulation and Modelling (DFSM). While the primary grid is shut down, the
distributed power generation will supply power to key account.
A Digital Substation is one that is automated and computerized, providing greater transparency,
higher reliability and efficiency of operations.
Advanced metering infrastructure (AMI)
AMI includes intelligent metering, real-time electricity-consumption monitoring system and
advanced metering data-management system. Advanced Metering Infrastructure (AMI) measures,
collects, stores and analyzes utility usage, such as electricity, gas or water usage; is a broader
concept than AMR-IP based solution.
IPBased Automatic Meter Reading (AMRIP)
Solutions that automatically gather data from energy metering devices and transmit to a central
processing facility where billing is handled and consumption patterns are analyzed Real-Time
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Information Processing. They enable real time communication between core nodes in the electric
network, including customer premise, and allow better management of demand, improved
reliability and flexibility of the network.
6.8.4 China
Market Size & Growth
On May 21, 2009, China has announced a framework for Smart Grid deployment with
investment that could reach Rmb1tn over the next 10 years, with around Rmb200bn for State
Grid in the coming five years from 2010-14. Smart metering (AMR) has already kicked off with
an Rmb80bn budget for the next five years, with Heilongjiang being a trial province. The smart
grid should improve transmission and distribution efficiency under State Grid’s strong network
and facilitate renewable-energy expansion.
Drivers & Constraints
As part of its current 5-year plan, China is building a Wide Area Monitoring system (WAMS)
and by 2012 plans to have Phasor Measurment Unit (PMU) sensors at all generators of 300
MW and above, and all substations of 500 kilovolts and above.
Power generated from and solar and wind sources are intermittent and will require a more
advanced power-grid system. Under China’s latest renewable-energy plan, wind power capacity
and solar energy capacity will reach 100GW and 30GW respectively by 2020, which will make a
combined 8% of total capacity by 2020 and require and active system to manage potential
imbalances.
Market Players & Competition
Key players that should benefit from the Smart Grid investment in China include:
• Wasion <3393.HK> Wasion is a leader in China’s electronic-power-meter market, with a
leading market share in the electronic power meters, single-phase electronic power meters
and in data-collection terminals and power-management system. It also sells water, gas and
heat meters. The major customers are State Grid Corporation of China (SGCC) and China
Southern Power Grid (CSG). These core state-owned enterprises are closely related to
national energy security and the economy. They are responsible for building and operating
power grids to provide a secure and reliable power supply. Wasion also acquired water, gas
and heat-meter companies, and is positioning itself as an integrated meter and data-collection
system provider. The company is expected to benefit from the governments plan to invest in
smart grid technology. For a detailed company profile, see Appendix A.
• Sieyuan Electric <002028.SZ> Sieyuan Electric Co., Ltd. is a China-based company
primarily engaged in research, development, manufacture and sale of power transmission,
distribution and monitoring equipment. The Company provides protection devices for power
automation, high-voltage switches, high-voltage transducers, capacitors, reactors, power
electronics products and power controlling products, among others. It distributes its products
principally in domestic market. For a detailed company profile, see Appendix A.
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• JiangSu YongDing <600105.SS> JiangSu YongDing Company Limited is principally
engaged in the manufacture and sale of optical cables, electric cables and communication
equipment. The Company primarily provides layer-stranding cables, central beam tube cables,
ribbon optical fiber cables, power optical cables and soft cables, among others. The Company
primarily distributes its products mainly in China’s domestic market.
• NARI Technology Development <600406.SS> NARI Technology Development Limited
Company is principally engaged in the development, manufacture and sale of software and
hardware products serving the power industry, as well as the provision of system integration
services. The Company mainly offers products of power grid dispatching automation,
integrated substation automation, rural power network automation, industrial process control
automation, rail transportation automation, protection automation, electricity market operating
system and distribution automation. For a detailed company profile, see Appendix A.
• Guodian Nanjing Automation <600268.SS> Guodian Nanjing Automation Co. is principally
engaged in the development and production of power automation equipment. The Company's
major products include protection and automation equipment for power grids and power
plants, water conservancy and hydropower protection equipment and industrial automation
protection equipment. Through its four branches, the Company provides solutions for digital
substations, power grid relay protection systems, substation automation systems, power grid
automation systems, digital power plants, energy-saving and emission-reduction projects,
water treatment, hydropower station integrated automation systems, water conservancy
automation, industrial automation, rail transportation automation and information technology,
among others. The Company also offers intelligent electric equipment, photoelectric mutual
inductors and high/low voltage distribution series.
• XJ Electric <000400.SZ> XJ Electric Co., Ltd is a China-based company principally engaged
in research, development, manufacture and sale of automation, protection and controlling
products for electric power systems. The Company provides electric network scheduling
automation equipment, electric distribution network automation equipment, substation
automation equipment, power station automation equipment, railway power supplying
automation equipment, network security and stabilization controlling equipment, power
management information systems, technology supporting systems for power market, relay
protection and automation controlling equipment, relays, electronic measuring instruments,
medium-voltage switches and switch cabinets, as well as transformers and combined
substations. It distributes its products primarily in domestic market. For a detailed company
profile, see Appendix A.
• Rongxin Power <002123.SZ> Rongxin Power Electronic Co., Ltd. is primarily engaged in the
design and manufacture of energy-saving and high-power electric and electronic equipment.
The Company's offerings are static var compensators (SVCs), smart gas emission devices
(MABZs), power filters, high-voltage frequency converters (HVCs), variable frequency starters
(VFSs) and static var generators (SVGs). The Company distributes its products within the
domestic market and to overseas markets.
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• Dongfang Electronic <000682SZ> Dongfang Electronics Co.,Ltd, formerly Yantai Dongfang
Electronics Information Industry Co., Ltd., is principally engaged in the development,
production and distribution of electrical and industrial automation controlling systems. The
Company primarily provides electricity dispatch automation systems, power protection and
transformation integrated automation systems, power distribution automation systems,
information management systems, electricity bill measurement systems, traction power
supplying automation systems of electric railways, as well as cable and wire products.
• Zhuzhou CSR Times Electric Co Ltd <3898.HK> is engaged in the sale and manufacture of
train-borne electrical systems and electrical components. The Company is also engaged in
the manufacture and sale of electrical systems and components relating to locomotive and
rolling stock. The Company supplies a range of on-board electrical systems, including train
power converters, auxiliary power supply equipment and control systems, train operation
safety equipment and electrical control systems for large railway maintenance vehicles. The
Company also produces electrical components, including power semiconductor devices,
sensors and related products and other products for its own raw material requirements, and to
sell to third parties.
6.8.5 Japan
Market Size & Growth
The Japanese government and companies are making a renewed push into smart grid
technology, in a bid to catch up with US. While projects in Japan are still in R&D stage, Japanese
companies have started to target the US market, with a project in New Mexico.
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Drivers & Constraints
The government decided to launch a verification test for the next generation transmission network
- the smart grid in 2009. Through the test, Japan aims to establish technology for securing power
system stability in preparation for the massive introduction of new energy sources such as
photovoltaic power. The verification test will be carried out on an isolated island in cooperation
with electric utilities in order to determine whether the smart grid can be introduced to the power
system in Japan.
Public Sector
NEDO has started four microgrid demonstration projects at Aomori, Aichi, Miyagi and Kyoto
Prefectures under its Regional Power Grid with Renewable Energy Resources Project in
2003.
• Aomori Project in Hachinohe. The project includes PV and biomass, are used to supply
electricity and heat. The microgrid serves seven City of Hachinohe buildings. These facilities
are interconnected through a 6-kV, 5.4-km duplicate distribution line, with the whole system
connected to the commercial grid at a single PCC.
• Aichi Project near the Central Japan Airport. This project supplies a Tokoname City office
building and a sewage plant via a private distribution line. Its main feature is a combination of
fuel cells supplied by energy from biogas, wood waste and plastic bottles.
• Kyoto Project at Kyotango. This project called the Kyoto Eco Energy Project is run by the
municipal government of Kyotango City. An energy control center communicates with the
DERs by internet protocol over the legacy telecom network to balance demand and supply,
and energy is fed into the legacy distribution system.
• Sendai Advanced Regional Electricity Network Program. NEDO also sponsors a multiple
PQR service demonstration which was completed in October 2006. The purpose of this
research is to demonstrate multiple simultaneous PQR supply, as may be requested by a
range of customers.
Private Sector
In addition to the government-sponsored projects, significant private sector research activities are
also in progress.
Shimizu Corporation, with the cooperation of the University of Tokyo, is developing a microgrid
control system using a test microgrid at its research center in Tokyo.
Tokyo Gas also aims to establish distributed energy networks including microgrids within its
service territory. Tokyo Gas is developing an integrated Distributed Energy Resources (DER)
control system based on simulation studies and experiments at its test facility in Yokohama.
In addition, Japanese firms, including Toshiba, Kyocera, Shimizu, Tokyo Gas Co., and MHI,
will spend $33.4 million on a smart grid project in Los Alamos and Albuquerque, New Mexico.
Toshiba says it will install a 1-megawatt storage battery at the Los Alamos site, while Kyocera
and Sharp will test smart home, energy management and load control technology. The Yomiuri
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Shimbun reported that METI will try to get the International electrotechnical Commission to adopt
26 Japanese standards to serve as global standards for the smart grid.
Market Players & Competition
• Osaki Electric Co <6644.T> operates in three business segments. The Measurement and
Control Equipment segment manufactures and sells electric meters, current limiters, monitor
and control equipment, time switches, optical-communications-related equipment, automatic
meter reading (AMR) systems and equipment, switchboards and distribution switchboards.
For a detailed company profile, see Appendix A.
• Kikusui Electronics <Unlisted> is mainly engaged in the manufacture and sale of electronic
applied equipment. The Company develops, manufactures and sells power electronics
equipment including power supply controllers, electronic loads and battery testers, alternating
current (AC) power supplies, as well as test and measurement instruments including
harmonics and flicker testers, jitter meters, signal generators and digital multi-meters.
• Takaoka Electric Manufacturing <6621.T> operates in two business segments. The Electric
Equipment Materials segment is engaged in the manufacture, sale and repair of power
transformers for electricity distribution and receiving, pole transformers, terrestrial
transformers, reactors, switches, electric supervision and control systems and environmental
systems,
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6.8.6 South Korea
Market Size & Growth
South Korea hopes to become the world's first country with a nationwide smart grid by 2030. It
has poured KRW35 bn (USD 28.2 m) into smart grid research and development every year since
2005, with over KRW250 bn (USD 201m) to be used by 2012.
In a further statement in January 2010 by the Ministry of Knowledge Economy (MKE), South
Korea will spend about 27.5 trillion won ($24bn) by 2030 building smart electricity grids.The
private sector is expected to invest 24.8 trillion won, with the government meeting the 2.7 trillion
won shortfall.
Drivers & Constraints
Korea's MKE expects the nationwide smart grid to reduce the country's power consumption by
3%. By transmitting electricity to consumers during non-peak hours, Korean utilities are expected
to reduce greenhouse gas emissions by 41m tonnes and cut fossil fuel imports by USD 10bn.
Consumers will also benefit by enjoying an average 15% decrease in their electricity bills.
South Korea has begun construction of its first smart grid pilot project on Jeju Island. The project,
scheduled to be completed in 2013, will benefit 6,000 households on the resort island. The Jeju
system will have facilities to allow the full use of electric cars, a network to harness clean energy,
and electric services and grids that can enhance energy conservation. AMRs will also tell users
when electricity prices are cheapest during the day so they can recharge home appliances and
cars at less cost. The government said it will provide KRW58 bn (USD 46.5 m), or roughly half of
the construction cost, with the rest coming from the private sector.
Market Players & Competition
• LS Industrial Systems <010120.KS> offers power transmission and distribution equipment,
automation and control systems, and industrial equipment and systems. The Company's
power transmission and distribution equipment includes low-, medium- and high-voltage
equipment, measuring and protection equipment, switchgears and transformers. Its
automation and control systems consist of programmable logic controller (PLC) products,
inverters, automation solutions and intelligent transportation systems (ITSs).
• NURI Telecom <Unlisted> NURI Telecom is a provider of AMI solutions that allow two-way,
realtime communication with customers. Around half-million meters were deployed with AiMiR
System throughout Asia and Europe.
6.8.7 Taiwan
Market Size & Growth
Taiwan's biggest power company, telecoms operator and IT firms are designing metering and
communication systems to link air conditioners and lighting systems with computers and mobile
phones.
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According to the government's Industrial Technology Research Institute, more than five million
smart meters will be installed at a cost of NT$50bn ($1.5bn), over the next 5 years.
Drivers & Constraints
Taiwan is putting in place a smart meter policy to build up its domestic market and target the
international smart metering market, estimated to be 30 million meters, over the next 30 years.
Market Players & Competition
Manufacturing
Many of Taiwan’s electronic companies have targeted smart grid and include:
• Fortune Electric Co., Ltd <1519.TW> is engaged in manufacture and sale of electrical
equipment. The Company provides transformers, electric switchboards, distributor devices
and other products. The Company also involves in provision of contract engineering services.
It distributes its products in domestic and overseas markets.
• Allis Electric Corp. <1514.TW> is principally engaged in manufacturing power distribution
and switching components and equipment. The Company provides its products under four
categories: switchboards, such as high and low voltage switchboards, motor control centers
and switch boxes; transformers, including reactors, potential transformers and current
transformers; industrial, communication and electronic switches, such as chargers, rectifiers,
un-interruptible power supply systems, switchable direct current power supply, as well as
power transmission and distribution apparatus, such as oil switch, vacuum switches and
others.
• Luxe Co., Ltd. <1529.TW> is a Taiwan-based company engaged in design, manufacture and
installation of switchboards and other electrical appliances. The Company provides
switchboards, including high voltage and low voltage switchboards, motor control centers,
relays-meters, generator parallel control panels and switchboards for ships, among others;
transformers, including low voltage transformers, outdoor transformers, current transformers
and voltage transformers; electrical appliances, including breakers, cutouts, resistors and high
voltage direct current power supplies, as well as monitoring network products such as remote
terminal units (RTUs), supervisory control and data acquisition systems (SCADAs) and
management information systems (MISs). The Company also involves in construction and
installation of electrical engineering projects, such as wind power generation projects, electric
power substation projects and turnkey projects of thermal and electric power cogeneration
Utility
• Taiwan Power, the island's utility, will launch a small-scale research study of less than 100
homes, which will be rapidly expanded to tens of thousands of homes in the next two to three
years.
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6.8.8 India
Market Size & Growth
North Delhi Power Limited (NDPL) is building a smart grid in India with GE Energy’s PowerOn
Outage Management System.
Drivers & Constraints
There is no government mandate to invest in Smart Grid Technology in India, with the major push
from private sector projects. At present NDPL is the leading utility in the smart grid, with its project
with GE Energy.
Market Players & Competition
Utilities
• North Delhi Power Ltd <Unlisted>
6.8.9 Singapore
Market Size & Growth
Singapore has a small market and is positioning itself as a regional hubfor companies to set up a
test bed and target larger markets across the region.
Drivers & Constraints
Singapore wants to set itself up as a Clean Technology Hub and test bed for Asia and has
targeted Smart Grid, as a key sector for investment. It has launched a pilot scheme via the EMA.
Market Players & Competition
• The Energy Market Authority (EMA) has initiated the Electricity Vending System (EVS) pilot,
where selected households can monitor their real-time electricity consumption using smart
meters. The pilot program involves 1,000 households in the Marine Parade and West Coast
areas will run till December. Through the EVS, participating users can also select electricity
packages from a retailer of their choice.
6.8.10 Indonesia
Market Size & Growth
The Indonesian Utility market is essentially dominated by one large government vertically
integrated utility, Perusahaan Listrik Negara (PLN) and thus any smart grid technology would
need to be driven by PLN.
Drivers & Constraints
There are no investment plans for the Smart Grid in Indonesia.
Market Players & Competition
• PLN. At present there does not appear to be any smart grid investment planned by PLN
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6.8.11 Malaysia
Market Size & Growth
The Malaysian Utility market is essentially dominated by one large government vertically
integrated utility, Tenaga Nasional Berhad on the peninsula and Sabah Electricity for Sabah State
and Sarawak Electricity Supply Corporation for Sarawak State. These utilities will be responsible
for driving any smart grid technology upgrades.
Drivers & Constraints
There are no investment plans for the Smart Grid in Malaysia. CIRED Malaysia, Malaysian
National Committee of CIGRE and IEE Power & Energy Society have raised awareness of the
Smart Grid in Malaysia.
Market Players & Competition
• Malaysian Resources Corporation Berhad (MRCB) has signed an MoU with Cisco and
Datacraft to provide smart grid and real estate technology to its new Kuala Lumpur
developments
6.8.12 Philippines
Market Size & Growth
The Philippines Utility market is essentially dominated by a few large government vertically
integrated utilities, namely: National Power Corporation, MERALCO and National Grid
Corporation of the Philippines. These utilities will be responsible for driving any smart grid
technology upgrades.
Drivers & Constraints
There are no investment plans for the Smart Grid in Philippines. However, a number of the
utilities, notably PNOC and Meralco are investigating smart grid technologies with Kepco and
Siemans, respectively.
Market Players & Competition
Utilities
• Philippine National Oil Company. Kepco is planning to incorporate smart grid technology in
expanding in the Philippine wind and hydro power plant projects. Kepco has partnered with
state-run Philippine National Oil Company-Renewable Corp. for the investment opportunities
in the renewable energy.
• Manila Electric Co. (Meralco), the largest power distributor in the Philippines, is seeking
ways to improve operational performance. Meralco president and CEO Jose de Jesus said
that Siemens’ smart grid solution would allow for improved performance at the utility.
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6.8.13 Thailand
Market Size & Growth
The Thai Utility market is essentially dominated by a few large government vertically integrated
utilities, namely: Electricity Generating Authority of Thailand (EGAT), Metropolitan
Electricity Authority (MEA) and Provincial Electricity Authority (PEA). These utilities will be
responsible for driving any smart grid technology upgrades.
Drivers & Constraints
There are no investment plans for the Smart Grid in Thailand.
Market Players & Competition
There are no companies identified in Thailand in this sector.
6.8.14 Australia
Market Size & Growth
The Australian Utility Market is split into 3 markets: the National Electricity Market (NEM); the
Wholesale Electricity Market (WEM) for Western Australia; and the Darwin and Katherine
Interconnected System (DKIS) servicing the Northern Territory.
• NEM was established by the disaggregation of the government vertically integrated system
and supplies electricity to 6 states: ACT, NSW, Queenland, Victoria, South Australia and
Tasmania and accounts for around 200 GWh per year, over 90% of the total power
generation
• WEM was established by the restructuring of Western Power Corporation, into four
corporations: Synergy; Horizon Power; Verve Energy and Western Power and accounts for
around 16.5 GWh per year.
• DKIS is dominated by the government owned Power and Water corporations and accounts for
less than 2 GWh per year
Drivers & Constraints
The key driver for smart grid technology is the Renewable Energy Target (RET), which will
require utilities to generate 20% of its power from Renewable Energy. In order for utilities to
manage this potentially huge change in supply and demand, a smart grid will need to help
manage these imbalances.
Government Project
The Australian Government has committed to investing $100m in smart grids. In October 2009, it
asked for proposals to initiate a study into the technology. The study is expected to increase
customer awareness and engagement in energy usage and establish distributed demand
management and distributed generation management. Within Australia the adoption of smart
grids is hindered by a lack of service level obligations on electricity distribution businesses to
connect distributed generation devices in a timely fashion. Submissions from industry consortia
Asia Pacific Clean Tech Handbook 269 of 348 31-May-10
will be assessed by an independent panel and the successful consortium announced by
Government in 2010.
State Projects
In addition, there are state projects including:
• Victoria. Victoria's smart grid plan, as announced by energy and resources Minister Peter
Batchelor in 2009, will give 2.5 million Victorians the ability to monitor their own energy use
and allow utilities to read, connect or disconnect meters remotely and respond faster to power
outages. UED and Jemena are rolling out smart meters, with a further three utilities expected
to roll out similar technologies.
• New South Wales. The University of Sydney and Energy Australia have signed an
agreement on 26 May 2009 a $5 million partnership to lead smart grid development in
Australia. The NSW Government launched a Smart Village in Newington in 2009, where
appliances can be switched on and off remotely using an iPhone, people can get around on
plug in electric scooters and energy costs and carbon emissions are graphed in near real-time.
• Western Australia. Western Power, the Smart Grid-Advanced Meter Infrastructure pilot
itself forms part of the federal government’s A$73.5 million Perth Solar City project.
Market Players & Competition
• United Energy Distribution (UED) Victorian power utilities UED and Jemena have selected
Silver Spring Networks to roll out smart meters to over a million Victorian homes in 2009.
UED provides power to 660,000 people in South-East Melbourne and on the Mornington
Peninsula.
• Jemena is also part of the smart meter roll out project .Jemena serves 320,000 more in North
and Inner-West Melbourne.
• Country Energy has built an Intelligent Network (IN) Demonstration Center to showcase
the benefits of a smart grid through real examples such as energy storage and vehicle to grid.
• CSIRO. The Intelligent Grid Research Program is an Australian collaboration between the
CSIRO and five universities investigating technologies and practices to make our electricity
networks smart, greener and more efficient.
6.8.15 New Zealand
Market Size & Growth
The New Zealand electricity market was deregulated in 1996, under the formal Electricity Rules
and Regulations and is overseen by the market regulator, the Electricity Commission.
There are 5 generators in New Zealand: Meridian, Genesis, Mighty River Power, Contact, and
TrustPower and they account for about 95% of New Zealand’s electricity.
Asia Pacific Clean Tech Handbook 270 of 348 31-May-10
Ther are 12 retailers in New Zealand: Bay of Plenty Electricity, Bosco Connect, Contact Energy,
Energy Direct NZ, Genesis Energy, King Country Energy, Mercury Energy, Meridian Energy,
Nova Energy, Powershop, Simply Energy, and Trust Power.
Drivers & Constraints
The key driver for the smart grid upgrade is the 90% renewable energy target by 2025, as part of
its Energy Plan in 2007.
Market Players & Competition
• GE Energy announced in July 2009 that the first phase of an advanced smart grid system has
been implemented in New Zealand. GE is working with Orion New Zealand Limited, an
electricity distribution network supplying 190,000 homes and businesses in the country, on
the project
• Meridian Energy <Unlisted> introduced the usage of smart meters in the Central Hawkes
Bay area with over 1000 households participating. By late 2006, over 6,300 smart meters had
been installed as part of the initial trial. On June 28, 2007 the first roll-out began for
households in Christchurch and there are plans to install over 112,000 smart meters by
January 2009. The smart meters are made by Christchurch based company Arc Innovations,
a wholly-owned subsidiary of Meridian Energy.
6.8.16 Summary of Companies involved in Smart Grid
Code Company Name Market Cap (M PE Country Segment
Dollars) Ratio
NARI Technology Machinery &
600406.SS Development Ltd Co $2,153.1 69.4 China Engineering
Guodian Nanjing Electrical &
600268.SS Automation Co Ltd $735.2 56.2 China Electronics
Utilities-Electrical &
000400.SZ XJ Electric Co Ltd $1,501.3 78.7 China Gas
Rongxin Power Machinery &
002123.SZ Electronic Co Ltd $1,379.3 48.6 China Engineering
Electronic
Dongfang Components &
000682.SZ Electronics Co Ltd $828.3 312.8 China Instruments
Electrical &
3393.HK Wasion Group Ltd $721.1 16.2 Hong Kong Electronics
Jiangsu Yongding Misc. Materials &
600105.SS Co Ltd $497.5 39.4 China Commodities
Electronic
Sieyuan Electric Co Components &
002028.SZ Ltd $1,969.8 29.2 China Instruments
Zhuzhou CSR
Times Electric Co Machinery &
3898.HK Ltd $2,017.2 31.6 China Engineering
Electronic
Osaki Electric Co Components &
6644.T Ltd $354.5 53.7 Japan Instruments
Takaoka Electric Electrical &
6621.T Mfg Co Ltd $375.1 N/A Japan Electronics
Asia Pacific Clean Tech Handbook 271 of 348 31-May-10
LS INDUSTRIAL Electrical &
010120.KS SYSTEMS CO LTD $2,141.3 13.9 South Korea Electronics
Fortune Electric Co Electrical &
1519.TW Ltd $217.9 13.2 Taiwan Electronics
Electrical &
1514.TW Allis Electric Co Ltd $77.7 N/A Taiwan Electronics
Electronic
Components &
1529.TW Luxe Co Ltd $24.6 N/A Taiwan Instruments
Source: Thomson Reuters
6.9 Carbon Capture and Storage
6.9.1 Background
With coal still as the primary source of fossil fuel for power generation, with over 70% generation
for China and Australia and accounting for 40% of the total carbon emitted, Carbon Dioxide
Capture and Storage (CCS) is seen as the best short term way to retrofit existing coal fired
power stations to store and capture this large and growing source for carbon dioxide.
Based on an IEA Study, Asia Pacific is expected to account for the majority of CSS projects by
2050, with 950 projects in China and India alone.
Australia is trying to position itself as a global leader in CCS and already has 15 projects in
Australia. The Coal21 Fund has set aside $1 billion to fund and commercialise CCS by 2015.
For the rest of Asia, there are 2 feasibility projects in Japan and 3 in China. There are also plans
for feasibility studies in South Korea and Taiwan, while India is taking a more cautious approach.
6.9.2 Targets & Incentives
The IEA study 45 on CCS has projected that Asia Pacific will account for a majority of CCS
projects by 2050.
45
CCS Deployment Requirements in the IEA BLUE Map Scenario
Asia Pacific Clean Tech Handbook 272 of 348 31-May-10
IEA CCS Project Projections from 2010 to 2050
Region No. Projects No. Projects Additional Additional Total Total
in 2020 in 2050 Cost 2010- Cost 2010- investment investment
2020 ($bln) 2050 ($bln) 2010-2020 2010-2050
OECD 7 280 5.9 645 14.1 530
Pacific
China & 21 950 7.6 1315 19.0 1170
India
Non-OECD 29 1260 9.7 1625 19.8 1765
World Total 100 3400 54 5810 130 5070
Source: IEA CCS Deployment Requirements in IEA BLUE Map Scenario
Power generation is expected to account for 55% of the worldwide total for CCS by 2050, of
which coal fired power stations will account for 29GW (90%) n 2020 and 734GW (64%) of the
total power generation.
IEA CCS Projects in Power Generation
Region No. Projects CCS Captured No. Projects CCS Captured
in 2020 Capacity in 2020 (Mt in 2050 Capacity in 2050 (Mt
2020 (GW) CO2/year) 2050 (GW) CO2/year)
OECD 2 1.3 9 150 85 510
Pacific
China & 6 2.5 13 465 365 1785
India
Non-OECD 4 1.6 6 610 400 1725
World Total 38 22 131 1670 1140 5510
Source: IEA CCS Deployment Requirements in IEA BLUE Map Scenario
A country review of CCS shows that Australia the regional leader in this sector, with projects in
China and Japan.
• China has four feasibility projects
• Japan formed a consortium of 24 companies to investigate feasibility of CCS. 3 projects are
underway
• South Korea working on R&D projects to reduce cost to under $30/tCO2
• India is still very cautious about CCS and has not started on a pilot scheme
• Indonesia has undertaken a feasibility study to assess the potential of CSS
• Australia has 15 projects funded by various institutions from COAL21 and CSIRO
•
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Current CCS Inventory and Potential in Asia Pacific
Country Projects Potential
China 4
Japan 3 150 billion tonnes
South Korea 0
Taiwan 1 by 2012 50MW by 2025
India 0 3.7-4.6 Gt CO2
Indonesia 0
Australia 15
Source: Coal21, CSIRO, Company Websites
Additional Cost of CCS
Country Additional Cost of CCS Comment
$/tCO2
IPCC $15-75
Japan $66
South Korea $55
Australia $35
Source: IPCC, CSIRO
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6.9.3 CCS Process
CCS is a process consisting of the separation of CO2 from industrial and energy-related sources,
transport to a storage location and long-term isolation from the atmosphere.
Figure 6.23 – CCS
Feedstock Combustion Separation Storage
Post
Fossil Fuel Combustion CO2 Separation Depleted Oil
Pre
Fossil Fuel Gasification Reformer H2 and CO2 Separation Deep Saline
Combustion Use of CO2
Oxyfue
Air Separation
Industrial
Raw Material Industrial Process CO2 Separation CO2 in ECBM
Source:
There are three main types of CO2 capture systems:
• Post-combustion capture of CO2 in power plants is economically feasible under specific
conditions. It is used to capture CO2 from part of the flue gases from a number of existing
power plants. Separation of CO2 in the natural gas processing industry, which uses similar
technology, operates in a mature market.
• Pre-combustion is used in fertilizer manufacturing and in hydrogen production. The initial
fuel conversion steps of pre-combustion are more elaborate and costly; the higher
concentrations of CO2 in the gas stream and the higher pressure make the separation easier.
• Oxyfuel combustion is in the demonstration phase and uses high purity oxygen. This results
in high CO2 concentrations in the gas stream and, hence, in easier separation of CO2 and in
increased energy requirements in the separation of oxygen from air.
Storage of CO2 uses many of the technologies used in the oil and gas business. There are four
main types of storage:
• Injection of CO2 in depleted oil and gas reserves
• Injection of CO2 in saline formations
• The combination of CO2 storage with Enhanced Oil Recovery (EOR)
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• The combination of CO2 storage with Enhanced Coal Bed Methane Recovery (ECBM)
6.9.4 China
Market Size & Growth
Coal still accounts for around 70-80% of China’s power generation. While, China has set 20%
renewable energy target by 2020, coal will still be the primary source of power generation and
CCS is seen as a key technology for reducing the carbon emissions generated from coal fired
power stations.
Drivers & Constraints
At present, there are a only a few feasibility projects underway to test the technical and economic
viability of CCS.
The Ministry of Science & Technology (MOST) has been working the Guide for CCS science
and technology development development, which was expected to be issued in the mid 2009.
Market Players & Competition
The feasibility projects in China include:
• PetroChina <xx>. Carried out China’s s first project of CO2 storage and usage (EOR) at Jilin
Oil Field from 2006, with the injection of CO2 into 10 wells. The investment was RMB200
million
• China Huaneng Group <xx> constructed the first demonstration post-combustion capture
(PCC) project in Beijing Thermal Power plant with 3000 t CO2/year. CSIRO and the Thermal
Power Research Institute (TPRI) are partners in the project.
• GreenGen Limited <Unlisted> is a consortium of 8 chinese companies and is a new build
IGCC power plant with CCS capability. It planned to be operational by 2015.
• UK-China Near Zero Emissions Coal Project (NZEC) Project set to be operational by 2014.
6.9.5 Japan
Market Size & Growth
Japan CCS said in a statement it aims to conduct feasibility studies for the government in an
attempt toward realizing Japan's goal to capture and store 100 million tonnes of CO2 per year
from 2020. METI official said there was potential to store 150 billion tonnes of CO2 in Japan.
Feasibility projects in Japan include:
• Feasibility Study on a Total System from Electric Power Generation to CO2 Storage, as a part
of the “Innovative Zero Emission Coal Gasification Electric Power Project” funded by
NEDO
• Development of Assessment Technologies for a Deep Aquifer appropriate for Demonstration
as a part of Research and Development of Underground Storage Technology for
Carbon Dioxide, funded by MET
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• Nagoaka Project funded by Research Institute of Innovative Technology for the Earth (RITE).
The project injected 10,200 tCO2 into an aquifer.
Drivers & Constraints
The constraints for Japan are the limited suitable sites are far away from large emission sources
and projected cost for CCS in Japan ($66/tCO2) are much higher than IPCC estimates.
Market Players & Competition
• CCS Co Limited <Unlisted> A grouping of 24 Japanese firms, including 11 utilities five oil
refiners, four engineering firms, two oil and gas developers, one steelmaker and one chemical
firm will work with government on feasibility studies for CCS projects.
6.9.6 South Korea
Market Size & Growth
There is limited storage capacity in South Korea, which is estimated to be 0.5 GtCO2
Drivers & Constraints
Korean government is actively involved in international cooperation and development of
technologies. However, South Korea has limited storage capability and the costs are still too high
and need to drive capture cost down from $55/tCO2 to less than $30$tCO2
Market Players & Competition
No companies identified
6.9.7 Taiwan
Market Size & Growth
Unlike Japan and South Korea, Taiwan seems to have great CCS potential because thick Tertiary
to Quaternary sediments are distributed all along west coast.
Drivers & Constraints
A pilot scale demonstration for CO2 geologic sequestration in Taiwan is scheduled to start in 2012,
with commercialization of a 50MW planned for 2025.
Market Players & Competition
There are no companies identified in CCS in Taiwan
6.9.8 India
Market Size & Growth
Coal will be the main fuel for power generation for the next 20 to 30 years in India and is
expected to account for over 60% of the total power generation mix and rising to around 950
GWh by 2030 and over 140 GW in capacity.
Preliminary studies indicate that potential storage sites are located in the Gangetic,
Brahmaputra and Indus river plains, and along the immediate offshore regions on the Arabian
Sea and Bay of Bengal.
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An assessment 46of potential for geological storage in India suggests that CO2 storage in coal
seams is likely to be constrained since these coal reserves can be easily mined and used as fuel.
Taking this into consideration, the calculated storage potential countrywide was found to be more
of the order of 345 Mt CO2 in the major coalfields, where none have the capacity to store more
than 100 Mt CO2, and only eight of the fields can store more than 10 Mt CO2. For oil and gas
reservoirs, the authors calculated the total storage capacity to be between 3.7 and 4.6 Gt CO2.
Drivers & Constraints
While coal will be the main fuel for power, India is still very cautious about CCS and has not
started on a pilot scheme
Market Players & Competition
• Australia's EESTech <Unlisted> has signed a joint venture agreement with India's Aryan
Clean Coal Technologies to install three 10MW hybrid coal gas technology plants valued at
USD 60m. The two firms had announced in October last year that they plan to invest in a JV
and have now formally inked the deal valuing nearly USD 60m. The HCGT systems will be
developed over the next five years and the power generated will be sold to the coalmine
companies. Any surplus electricity will be sold to the national grid. EESTech's technology
uses waste coal and ventilated air methane from underground coalmines to produce energy.
6.9.9 Singapore
Market Size & Growth
There are no planned CCS projects in Singapore.
Drivers & Constraints
Singapore does not have any plans for CCS.
Market Players & Competition
No companies involved in CCS in Singapore.
6.9.10 Indonesia
Market Size & Growth
Indonesia has a high potential for CSS, with large sedimentary basins located in the archipelago.
A feasibility study was undertaken in 2007 by Shell, but no further plans have been put in place to
develop CCS project further.
Drivers & Constraints
A feasibility study was undertaken in 2007 by Shell to assess the potential of CCS in Indonesia.
Market Players & Competition
There are currently no demonstration projects in Indonesia.
46
2008 IEAGHG Assessment
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6.9.11 Malaysia
Market Size & Growth
There are no planned CCS projects in Malaysia.
Drivers & Constraints
Malaysia does not have any plans for CCS in its Energy Plan.
Market Players & Competition
No companies involved in CCS in Malaysia.
6.9.12 Philippines
Market Size & Growth
The Philippines has a high potential for CSS, with large sedimentary basins located in the
archipelago.
Drivers & Constraints
There are currently no plans for CCS, as part of the RE Act or any targets or investments in place
for demonstration projects.
Market Players & Competition
There are no companies involved in CCS in Philippines.
6.9.13 Thailand
Market Size & Growth
The market potential for CCS in Thailand has not been assessed.
Drivers & Constraints
There are currently no plans for CCS, as part of the Energy Master Plan or investments in place
for demonstration projects. However, CCS is being considered, as an option to reduce Carbon
Emissions.
Market Players & Competition
There are currently no companies involved in CCS in Thailand.
6.9.14 Australia
Market Size & Growth
Australia is a global leader in CCS technology and the government and coal industry are
investing over $1 billion and there are already 15 projects sponsored by various institutions, such
as CSIRO, Coal21 and CO2CRC, as highlighted in the Table below.
In addition, the storage potential for CCS in Australia is the largest in Asia Pacific at 700 GtCO2
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Summary of existing CCS projects in Australia
Project Capacity Timeframe
ZeroGen Project I 120MW, 75% capture 2012
ZeroGen Project II 450MW, 90% capture 2017
Coolimba 2x200MW 2012
Otway Project 100,000 tonnes 2008
Mulgrave
Loy Yang 1,000 tonnes per year
Hazelwood 10,000–20,000 tonnes per year
Munmorah 100,000 tonnes per year 2013
Tarong PCC Project. 1,500 tonnes per year
Callide Oxyfuel Project 2011
Gorgon 3.3 million tonnes per year 2015
Moomba 2010
HRL IDGCC Project 400MW
Latrobe Valley
FuturGas Project 2016
Source: CSIRO, Company Reports
A number of domestic and international CCS initiatives are currently underway, including:
Coal21 Program
The Australian Coal Association’s Coal21 Program – a partnership between the coal and
electricity industries, governments, researchers and unions to investigate a variety of
technologies, including CCS to reduce or eliminate greenhouse gas emissions from coal
production and coal-fired power generation.
• ZeroGen Project. The project will develop a demonstration-scale 120 MW IGCC power plant
with CCS. The facility is due to begin operations in late 2012 and will capture up to 75% of
Asia Pacific Clean Tech Handbook 280 of 348 31-May-10
CO2. Some of the CO2 will be transported by road tankers for partial sequestration in deep
underground reservoirs in the Northern Denison Trough, approximately 220km west of the
plant. To facilitate more rapid uptake of the technology at commercial scale, ZeroGen will
concurrently develop a large-scale 450 MW IGCC power plant with CCS. Due for deployment
in 2017, the facility is expected to capture up to 90% of CO2. Its location will be at a site in
Queensland to be determined by a feasibility study. ZeroGen Pty Ltd is currently supported by
the Queensland Government and the coal industry’s COAL21 Fund.
• The NSW Government has undertaken a series of studies to assess the potential for
geosequestration of CO2 in deep saline formations and coal seams in NSW. Both storage
assessment initiatives are financially supported under the Australian coal industry’s COAL21
Fund.
Cooperative Research Centre for Greenhouse Gas Technologies (CO2CRC)
The Global Carbon Capture and Storage Initiative, National Low Emissions Coal Initiative
(NLECI) and Cooperative Research Centre for Greenhouse Gas Technologies (CO2CRC), to
provide a forum for international collaboration and develop a technology roadmap for both
capture and geological storage of carbon dioxide.
• Coolimba Power Project. Construction of Aviva Corporation Ltd’s 2x200MW coal-fired base-
load power stations is proposed to be completed by 2012. The plant will be built ready for
conversion to CO2 capture. Sequestration sites are being sought for the storage with the
involvement of CO2CRC and ARC Energy.
• The Otway Project. The CO2CRC Otway Project is Australia’s most advanced CO2 storage
project. Launched in April 2008, the project involves the extraction, compression and
transport and storage of 100,000 tonnes of naturally occurring CO2. The CO2 is being stored
in a depleted natural gas reservoir two km below the earth’s surface.
• Mulgrave Pre-Combustion Capture Project, Victoria. CO2 emissions will be captured from
HRL’s research gasifier in Mulgrave in a pilot-scale capture project by CO2CRC. The capture
technologies will be evaluated to identify which are the most cost effective for use in a coal
gasification power plant. Partners include CO2CRC and HRL with funding from the Victorian
Government.
• Loy Yang. A CSIRO mobile pilot PCC facility has begun operation at Loy Yang and will
capture around 1000 tonnes of CO2 each year. Partners in this project include International
Power, Loy Yang Power, CO2CRC, CSIRO and Process Group with funding from the
Victorian government.
• Hazelwood. Work is underway on a facility at Hazelwood that will capture and chemically
sequester CO2 at a rate of 10,000 – 20,000 tonnes each year, with capture to commence late
2008. CO2CRC will use that plant to test a range of solvent and process changes. Using two
other rigs, CO2CRC will test adsorbent and membrane post-combustion techniques
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CSIRO Flagship Program
• Munmorah Power Station. CSIRO’s Energy Transformed Flagship is working with Delta
Electricity to test post-combustion capture at a pilot plant they have built at the Munmorah
Power Station. The Flagship’s goal is to provide proof of the post-combustion concept,
evaluation of various CO2 absorbents, assistance in the scale up to demonstration and
commercial plants, and provide the science underpinnings for future policy options for CO2
capture. It is hoped the Munmorah project will provide the foundation for a $150 million post-
combustion CCS demonstration project in NSW, planned for operation by 2013, capturing up
to 100,000 tonnes of CO2 each year.
• Tarong PCC Project. CSIRO and Tarong Energy will install a post-combustion capture pilot
plant using an amine-based solvent at Tarong Power Station near Kingaroy, Queensland. The
pilot plant will capture 1500 tonnes of CO2 each year over a two-year research program
beginning in 2009
The projects will need to prove the viability of the technology by 2011 with the aim of storing
between two and five megatons of CO2 per year from coal-fired power plants.
The Flagship projects, jointly funded by the Australian black coal industry, state and federal
governments, are part of several initiatives to protect the country's domestic coal industry. Coal is
Australia's largest export earner, but mainly exports high quality coal for coking, while it uses low
grade coal for its domestic power generation.
The Australian government has announced details of the commercial release of 10 offshore areas
designated specifically for the assessment of their carbon storage potential.
The initial release areas are located across five offshore basins adjacent to Victoria, South
Australia, Western Australia and the Northern Territory. The assessment areas being released
have been identified as having the best potential in terms of geological suitability and current
industry needs and are underpinned by technical data from Geoscience Australia.
Regulations and guidelines to support the new legislation are under development and will be
finalised in the third quarter of 2009. The acreage release bidding will remain open until two
months after the completion of the regulations.
Other CSS Projects in Australia
• The Callide Oxyfuel Project will demonstrate CCS using oxyfuel combustion, combined with
carbon storage. The Oxyfuel boiler is scheduled to be operational in the Callide A power
plant by 2011. The project team is assessing potential carbon storage sites to the west of the
power plant and plans to select the final location. The CO2 will be transported in road tankers.
The project is headed by CS Energy Ltd in conjunction with an international team of partners,
including IHI Corporation (Japan), J-Power (Japan), Mitsui & Company (Japan) Schlumberger
Oilfields Australia and Xstrata Coal.
• Geological storage site assessments, Queensland and New South Wales. The
Queensland State Government through the Geological Survey of Queensland has developed,
in conjunction with the coal industry and the Commonwealth Government, the Carbon
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Geostorage Initiative (CGI) to identify and assess potential sites for safe, long-term CO2
storage in Queensland. Mapping work is currently underway for regional assessment of basin
storage potential.
• Gorgon CO2 Injection Project. Chevron (operator), Shell and Exxon are planning a major
sequestration project linked to the Gorgon LNG Project. The separated CO2 will be injected
under Barrow Island to a depth of about 2.3km, with injection of 3.3 million tonnes of CO2 per
year. A total of 125 million tonnes will be injected over the life of the project. The construction
phase is planned to commence in late 2009 and take about five years. A data well has been
drilled and a major study of the subsurface is underway.
• Moomba Carbon Storage Project. This project is currently at the early feasibility stage, with
the objective of establishing a regional carbon storage hub in the Cooper Basin. The first
phase, will involve the capture of CO2 from existing gas processing facilities and injecting one
million tonnes of CO2 commencing in 2010, to re-pressure oil reservoirs for EOR. Partners in
this project include Santos and Origin.
• HRL IDGCC Project, Victoria. A proposed 400MW power generation plant in Victoria will
involve integrated drying gasification combined-cycle (IDGCC) using brown coal. Partners
include HRL Technology and Harbin.
• Latrobe Valley Post-Combustion Capture Projects, Victoria. These projects involve retrofit
of pilot scale post-combustion CO2 capture plants.
• FuturGas Project, South Australia. Hybrid Energy Australia is researching the development
of the carbon dioxide storage component of the FuturGas Project – an energy conversion
development involving the gasification of lignite to syngas for the production of synfuels. It is
proposed that the CO2 captured post-gasification will be stored in the Otway Basin to the
south of the lignite resources. A feasibility study and an environmental impact study will be
completed by 2011. It is hoped the project will become operational by 2016.
Drivers & Constraints
Australia is the world’s largest coal exporter and relies on coal, as it primary source of fuel for
power generation and has targeted CCS technologies, as a way to reduce its carbon emissions
and meet its green house gas targets.
Under the A$4.5 billion Clean Energy Initiative, the Government will provide A$2.4 billion to
support investment in large scale integrated CCS projects in Australia. The target is to create
1000 MW of low emission fossil fuel generation. Australia has established the Global Carbon
Capture and Storage Institute (GCCSI) with the aim of accelerating the global development and
deployment of Carbon Capture and Storage technology.
The Australian Government is contributing up to A$100 million per annum to fund the operations
of the GCCSI, which has the mandate is to foster a global portfolio of commercial-scale flagship
demonstration projects.
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In addition, Australia has introduced legislation allowing offshore geological storage and is
undertaking a commercial release of offshore exploration areas for greenhouse gas storage
assessment.
The Offshore Petroleum and Greenhouse Gas Storage Act, 2006 (which came into effect in
November 2008) provides a system of access and property rights for the geological storage of
greenhouse gas in offshore waters under Commonwealth jurisdiction. Ten offshore areas have
been offered by the Government.
Market Players & Competition
Australia is the largest coal exporter in the world and also generates over 70% of its power from
coal and has the highest percentage of power generated out of all the developed nations, so has
a vested interest in reducing carbon emissions from its existing coal fired power stations. It has a
number of government funded pilot schemes in place, in addition to the large potential CCS at the
Gorgon Gas Field. Key Players include:
CCS
• Mitsubishi Heavy Industries <7011.T> and Mitsubishi Corporation <8058.T> have signed an
agreement with Australia's ZeroGen to develop a combined cycle power generation plant
integrated with a carbon capture and storage facility.
Clean Coal
• White Energy <WEC.AX> White Energy Limited is an Australia-based company. The
principal activities of the Company consisted of ongoing development/exploitation of the
binderless coal briquetting technology and evaluation of the mining exploration assets. The
business segments of the Company are coal technology, mining and unallocated. The coal
technology segment includes license to technology developed by Commonwealth Scientific &
Industrial Research Organization (Australia) (CSIRO), which processes poor-quality coal into
a higher-quality product. For a detailed company profile, see Appendix A.
• Environmental Clean Technologies <ESI.AX> is a clean coal company that dewaters
brown coal to produce a black coal substitute via its Coldry process. Coldry process produces
pellets that can be stored, transported and is of equal energy value than black coal. Coldry
works by initiating a chemical reaction to expel water from lignite and sub-bituminous coal.
The pellets are used in electricity generation in black or brown coal power stations and coal-
to-oil applications.
• EESTech <Unlisted> is engaged in promoting the commercialization of its three primary
products: a hybrid coal and gas turbine (HCGT) power plant, Carbon Capture and Storage
(CCS) and the JetWater System (JWS) to markets in Australia, People’s Republic of China,
South America, the United Arab Emirates and the United States. In December 2007, the
Company announced the acquisition of Carbon Capture and Storage (CCS) technology from
Canadian company, HTC Purenergy.
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6.9.15 New Zealand
Market Size & Growth
There are no planned CCS projects in New Zealand.
Drivers & Constraints
The Ministry of Economic Development (MED) is the lead agency in developing CCS policy for
New Zealand. MED has a work programme in development to ensure that CCS remains an
option for New Zealand.
• The work program is focused on the near term goal of ensuring that an appropriate legislative
and regulatory framework is in place to regulate CCS should it be deployed in New Zealand,
and to allow for proactive investment decisions.
• Another early priority of the work programme is to better understand New Zealand's capacity
to actually store CO2 in geological structures. Research is currently underway to assess New
Zealand's geological storage options.
Market Players & Competition
There are currently no companies involved in CCS in New Zealand.
6.9.16 Summary of Companies
Code Company Name Market Cap PE Country Segment
(M Dollars) Ratio
WEC.AX White Energy Company Ltd $542.6 N/A Australia Metals - Non Ferrous
Unlisted GreenGen Limited N/A N/A China CCS
Unlisted EESTech N/A N/A Australia CCS
Unlisted CCS Co Limited N/A N/A Japan CCS
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6.10 Nuclear
6.10.1 Background
There are now 439 nuclear reactors in operation around the world in over 30 countries, providing
almost 16% of the world’s electricity. However, due to public perception, growth in the sector had
slowed in the 1990s. As nuclear power only emits a small amount of greenhouse gases, it is
undergoing a revival and is seen as a major source of non fossil fuel power and the only present
day source that can provide reliable, cost effective base load power that can offer a viable
alternative to coal.
New reactor designs (Generation IV) are in progress, with 6 leading designs recommended by
the Generation IV International Forum (GIF). In addition, APR countries are embracing nuclear
power generation and lead a new wave of reactor installations, particularly in China and India, but
also plans for reactors in Indonesia, Vietnam, Malaysia, and Thailand.
Japan is home to two of the three leading nuclear reactor companies – Westinghouse-Toshiba
and GE-Hitachi – and has proposed to boost its share of nuclear power to 44% by 2030.
South Korea has embarked on a large nuclear power generation program through Korea Nuclear
Hydro Power (KNHP) and expected to increase generation to 243 billion kWh by 2030.
India is looking to lead the next generation of nuclear reactors with its expertise in thorium fuel,
coupled with the largest reserves of thorium globally. While China, also plans to increase it share
of nuclear reactors to increase its share of non fossil fuel in its power generation mix.
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6.10.2 Targets & Incentives
• China - is set to increase its nuclear capacity by six times to 60GW and then a further
substantial increase to 160 GW by 2030
• Japan - A METI plan called for an increase in nuclear power generation by a further 30% (13
GW) with the addition of 9 to 12 new nuclear plants.
• South Korea - The government stated that South Korea should develop its nuclear industry
into one of the top five in the world, with about 60% of electricity from nuclear by 2035.
• Taiwan - Taiwan has 6 nuclear power stations in operation and considering the addition of
another 6 more plants.
• India - expects to have 20GW nuclear capacity by 2020.
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Total Installed capacity (MW)
Country Nuclear Number of Nuclear Proposed
electricity reactors in generating Capacity
generation, 2007 operation* capacity* MW
(billion kWh) MW
China 59.3 11 8,587 60,000MW by
2020
Japan 267.0 55 47,577 65,000MW by
2020
South Korea 136.6 20 17,533 26,000MW by
2020
Taiwan 6 5,700 Additional 6
reactors
India 15.8 17 3,779 20,000MW by
2020
Singapore 0 0 0 Feasibility Study
Indonesia 0 0 0 4,800MW by
2025
Malaysia 0 0 0 0
Philippines 0 0 0 600MW by 2025
Thailand 0 0 0 2,000MW by
2020
Vietnam 0 0 0 4,000MW by
2025
Australia 0 0 0 0
New Zealand 0 0 0 0
Source: WNA, IEA, EIA, Government Publications
6.10.3 Nuclear Process and Supply Chain
The nuclear supply chain can be broken several sections. A huge amount of R&D work goes into
reactor designs, which is now consolidated into a small number of players who can sell
throughout the world. Capital costs of nuclear plants are relatively high by comparison with rival
technologies and building on time and on budget is essential. This involves many local
subcontractors but there are a number of major international companies involved in this area. The
nuclear fuel cycle, from uranium mining to waste disposal, has a number of specialist activities,
each of which are carried out by a limited number of companies worldwide. More in the
background are a number of technology, equipment and service companies, who provide a range
of specialized products and services to all areas of the industry. Finally, there is a group of
electricity utilities for whom nuclear plants represent a significant share of their generating
capacity.
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Figure 6.25 – Nuclear Supply Chain
Mining Nuclear Fuel Reactors Construction Operation Disposal
China China CNNC, Local CGNPC, China
Uranium SNPTC Providers CPIC, Uranium
Japan JNFL, MNFL Hitachi, JSW, MHI TEPCO, JNFL, MFL
Toshiba, MHI KEPCO,
Korea KNFC, KNHP Local KHNP KNFC
KAERI Providers
Taiwan Imported Imported Taipower Taipower Taipower
India Uranium Uranium NPCIL L&T, HCC NPCIL, Uranium
Corp Corp NTPC Corp
Australia BHP, Rio BHP, Rio
Tinto, Tinto
Source: Company Reports, Thomson
Mining
Uranium is not scarce, as a resource with over 2 million tonnes mined. Unlike oil, proven reserves
exist in stable countries, such as Australia and Canada.
Since 2003, uranium prices have risen sharply, driven by the surge in commodity prices,
encouraging a growth in exploration by new uranium companies, adding to the established
market participants such as Cameco, Rio Tinto, Areva, BHP Billiton and Kazatomprom. Few of
these will ever enter the production phase, but some such as Paladin and Uranium One are
already doing so and will participate in a likely production boom over the next few years.
Nuclear Fuel
Nuclear fuel is loaded into new nuclear reactors in the form of fuel assemblies. These will stay in
the reactor for about 3 years until the reactivity declines to the extent that replacement is
warranted. Light Water Reactors (LWRs), comprising 90% of today’s reactors, were traditionally
shut down once per year (an “outage”) when one third of the fuel would be replaced, but many
reactors today have longer operating cycles, with outages only every 18 or 24 months. After
discharge from the reactor, used nuclear fuel is cooled for several years in large ponds of water.
Thereafter there are essentially two options – either reprocessing the used fuel, to separate
uranium and plutonium which may be re-introduced into the nuclear fuel cycle, or storing the used
fuel for longer before sending it to a deep geological repository.
The “front end” of the nuclear fuel cycle comprises the stages up to fuel fabrication, where the
fuel assemblies are prepared. The “back end” is the route followed by the used fuel, which can
include reprocessed uranium and plutonium re-entering the front end. Uranium production is the
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starting point of the front end and it goes through stage of conversion and enrichment (at least for
LWRs – Pressurised Heavy Water Reactors (PHWRs) run on natural uranium) before fuel
fabrication.
Conversion is an intermediate step in the nuclear fuel cycle, where uranium is converted from
oxide to fluoride form for the enrichment stage (which requires uranium to be in a gaseous form).
It is carried out in a few specialist plants throughout the world. LWRs require the U-235 isotope of
uranium to be increased from the natural 0.7% to 3-5%. This is a major, technically complex, step
in the cycle and has historically accounted for slightly more of the fuel cost than uranium supply
itself.
Fuel fabrication is a specialized service to reactor operators, rather than a homogeneous
commodity like uranium, conversion and enrichment. As such, it takes place at a greater number
of suppliers worldwide, in many cases national suppliers such as CNNC in China, JNFL in Japan
and KNFC in South Korea close to the reactor location.
Reactors
Nearly 90% of existing reactors are Light Water Reactors (LWRs) of which there are two main
groups, Pressurized Water Reactors (PWRs) and Boiling Water Reactors (BWRs). All of the
currently operating 104 US reactors, for example, are of these two types. The most significant
alternative design is the pressurised heavy water reactor (PHWR) of which the CANada
Deuterium Uranium (CANDU) design is the best known. With one exception, all of the new
reactors being offered today fall into these types.
The marketing of new major reactors has today become concentrated in a few major companies:
Areva, GE-Hitachi and Westinghouse-Toshiba are the three majors, and are at the centre of the
proposals to build new reactors both the United States and United Kingdom. Atomstroyexport of
Russia, AECL of Canada and KOPEC of Korea are also competing for major reactor contracts,
having established reputations with the nuclear programs in their own countries and the Middle
East.
Construction
Construction of new nuclear reactors are major civil engineering projects, inline with other capital
investment projects in other sectors. A nuclear project can be sub-divided into two parts:
• Nuclear island (accounting for about 60% of the cost); and
• Non-nuclear part (the remaining 40%).
Contracts for new nuclear plants are usually divided into the two parts with the major specialist
reactor vendors (above) competing for the nuclear island part and the remainder the subject of
bids from a wider range of companies. Nuclear plants are thermal generating units, as much as
coal-, oil- and gas-fired units, and the non-nuclear part of the plant, largely the turbine generating
set and a lot of pipework, is much the same as with these.
The nuclear island requires a significant amount of concrete work for strength and radiation
protection and the installation of major components such a reactor pressure vessels and steam
generators. These items for the latest reactors require very large steel forgings and more basic
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components must be of top quality, certified as “nuclear grade”. In terms of the construction
process, some of the latest reactor designs allow for a much greater degree of modular
construction with standardized major components being brought to the site from factories some
distance away. This represents a reaction against the past practice of building “singleton”
reactors bit-by-bit onsite, which proved to delay progress and harm project economics.
Estimates of costs of new reactor projects suffer from the lack of experience of these in the
Western world since the 1980s. Nevertheless, experience of building in East Asia suggests that
the construction phase, from first concrete to connection to the power grid, can be accomplished
in 4 years and at all-in cost of $2-3 billion for a 1000 MWe reactor, scaled up for a larger model.
Operators
Operators are the domestic utility companies and are a much more fragmented group of
companies, when compared with the mining and reactor sector. Companies include TEPCO,
Japan’s largest utility and Korea’s KNHP.
Next Generation Reactors (Generation IV)
Countries are already working on the next generation of nuclear reactors (GIF – Generation IV)
and have short listed 6 new designs. There is currently a race to establish the next standard for
the industry, with different countries promoting technologies that will give their own domestic
industry a crucial advantage.
Issues with the new generation reactors include the high temperatures and condition required to
operate, as the materials do not yet exist to withstand these condition over a long time of at least
5 years.
SFR – Sodium‐Cooled Fast Reactor System
The Sodium-Cooled Fast Reactor (SFR) system features a fast-neutron spectrum and a closed
fuel cycle for efficient conversion of fertile uranium and management of actinides. A full actinide
recycle fuel cycle is envisioned with two options. The SFR system can use existing nuclear waste
and thus re-use spent fuel. This technology is the furthest developed and is estimated to be
deployable by 2015.
VHTR – Very‐High‐Temperature Reactor System
The Very-High-Temperature Reactor (VHTR) system uses a thermal neutron spectrum and a
once-through uranium cycle. The VHTR system has coolant outlet temperatures above 1000°C. It
is intended to be a high-efficiency system that can supply process heat to a broad spectrum of
high temperature and energy-intensive processes. The system may incorporate electricity
generation equipment to meet cogeneration needs. The system also has the flexibility to adopt
U/Pu fuel cycles and offer enhanced waste minimization. One current drawback is that it requires
significant advances in fuel performance and high temperature materials currently not available.
Additional R&D will include high-temperature alloys, fiber-reinforced ceramics or composite
materials, and zirconium-carbide fuel coatings. The VHTR system is estimated to be deployable
by 2020.
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GFR – Gas‐Cooled Fast Reactor System
The Gas-Cooled Fast Reactor (GFR) system features a fast-neutron spectrum and closed fuel
cycle for efficient conversion of fertile uranium and management of actinides. The fuel cycle
facilities can minimize transportation of nuclear materials and will be based on either advanced
aqueous, pyrometallurgical, or other dry processing options. Several fuel forms are being
considered for their potential to operate at very high temperatures and to ensure an excellent
retention of fission products: composite ceramic fuel, advanced fuel particles, or ceramic clad
elements of actinide compounds. Core configurations are being considered based on pin- or
plate-based fuel assemblies or prismatic blocks. Given its R&D needs for fuel and recycling
technology development, the GFR is not expected to be deployable until 2025.
LFR – Lead‐Cooled Fast Reactor System
The Lead-Cooled Fast Reactor (LFR) system features a fast-neutron spectrum and a closed fuel
cycle for efficient conversion of fertile uranium and management of actinides. The system uses a
lead or lead/bismuth eutectic liquid-metalcooled reactor. The fuel is metal or nitride-based,
containing fertile uranium and transuranics. The most advanced of these is the Pb/Bi battery,
which employs a small size core with a very long (10–30 year) core life. The reactor module is
designed to be factory-fabricated and then transported to the plant site, reducing risk of nuclear
proliferation. The reactor is cooled by natural convection and sized between 120–400 MWth, with
a reactor outlet coolant temperature of 550°C, possibly ranging up to 800°C, depending upon the
success of the materials R&D. The system is specifically designed for distributed generation of
electricity and other energy products, including hydrogen and potable water. Given its R&D needs
for fuel, materials, and corrosion control, the LFR system is estimated to be deployable by 2025.
SCWR – Supercritical‐Water‐Cooled Reactor System
The Supercritical-Water-Cooled Reactor (SCWR) system features two fuel cycle options. Both
options use a high-temperature, high-pressure, water-cooled reactor that operates above the
thermodynamic critical point of water (22.1 MPa, 374°C) to achieve a thermal efficiency
approaching 44%. The fuel cycle for the thermal option is a once-through uranium cycle. The fast-
spectrum option uses central fuel cycle facilities based on advanced aqueous processing for
actinide recycle. The fast-spectrum option depends upon the materials’ R&D success to support a
fast-spectrum reactor. In either option, the reference plant has a 1700-MW power level, an
operating pressure of 25 MPa, and a reactor outlet temperature of 550°C. Passive safety features
similar to those of the simplified boiling water reactor are incorporated. Owing to the low density
of supercritical water, additional moderator is added to thermalize the core in the thermal option.
The benefits of the SCWR system are high thermal efficiency and plant simplification. Given its
R&D needs in materials compatibility, the SCWR system is estimated to be deployable by 2025.
MSR – Molten Salt Reactor System
The Molten Salt Reactor (MSR) differs from other designs in that it uses a molten mixture of liquid
sodium, zirconium, and uranium fluorides. The molten salt fuel flows through graphite core
channels, producing a thermal spectrum. The heat generated in the molten salt is transferred to a
secondary coolant system through an intermediate heat exchanger, and then through another
heat exchanger to the power conversion system. This design benefits by allowing the addition of
actinide feeds with variable composition by varying the rate of feed addition. There is no need for
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fuel fabrication. Given its R&D needs for system development, the MSR is estimated to be
deployable by 2025.
Liquid Fluoride Thorium Reactor (LFTR)
One variant of the MSR technology that is gaining traction is the use of Thorium, as a substitute
for Uranium. Thorium can be used within existing reactors and mixed with the existing uranium.
Thorium is advantageous, as it is readily available, cheaper, more efficient and does not have
harmful waste products, such as plutonium. India is looking at this technology closely, as it is also
has one of the largest reserves of Thorium globally.
6.10.4 China
Market Size & Growth
China has 11 nuclear power reactors in commercial operation with a further 20 under construction.
Based on renewed statements, China is set to increase its nuclear capacity by six times to 60GW
and then a further substantial increase to 160 GW by 2030, making it the leader in Nuclear
Capacity globally.
Plant Province MWe Reactor Project control Construction start Operation
gross model
Lingao Phase II Guangdong 2x1080 CPR- CGNPC 12/05, 5/06 12/10,
units 1&2 1000 8/11
Qinshan Phase II Zhejiang 2x650 CNP-600 CNNC 4/06, 1/07 2011,
units 3&4 2012
Hongyanhe Liaoning 4x1080 CPR- CGNPC 8/07, 4/08, 3/09, 10/12,
units 1-4 1000 8/09 2014
Ningde Fujian 4x1080 CPR- CGNPC 2/08, 11/08, 1/10, 12/12 -
units 1-4 1000 15/7/10 2015
Fuqing Fujian 2x1080 CPR- CNNC 11/08, 6/09 10/13,
units 1&2 1000 8/14
Yangjiang Guangdong 4x1080 CPR- CGNPC 12/08, 8/09, 8/13 -
units 1-4 1000 15/7/10, 15/3/11 2016
Fangjiashan Zhejiang 2x1080 CPR- CNNC 12/08, 7/09 12/13,
units 1&2 1000 10/14
Sanmen Zhejiang 2x1250 AP1000 CNNC 3/09, 12/09 11/13,
units 1&2 9/14
Haiyang Shandong 2x1250 AP1000 CPI 9/09, 31/7/10 5/14, 3/15
units 1&2
Taishan Guangdong 2x1700 EPR CGNPC 10/09, 1/7/10 12/13,
units 1&2 11/14
Shandong Shidaowan Shandong 210 HTR-PM Huaneng 1/10? 2013 or
2014
Fangchenggang/Hongsha Guangxi 2x1080 CPR- CGNPC early 2010 2014, ?
units 1&2 1000
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Fuqing Fujian 4x1080 CPR- CNNC 2010, ?
units 3-6 1000
Changjiang Hainan 2x650 CNP-600 CNNC or First half 2010 2014,
units 1&2 Huaneng 2015
Tianwan Jiangsu 2x1060 VVER- CNNC 10/2010
units 3&4 1000
(AES-91)
Hongshiding (Rushan) Shandong 2x1080 CPR- CNEC/CNNC Deferred from 2015
units 1&2 1000 2009?
Ningde Fujian 2x1080 CPR- CGNPC
units 5&6 1000
Dafan, Xianning Hubei 2x1250 AP1000 CGNPC late 2010
units 1&2
Xiaomoshan Hunan 2x1250 AP1000 CPI 2010? 4/2015-
(Jiulongshan) 2018
units 1&2
Taohuajiang Hunan 4x1250 AP1000 CNNC 9/2010 2015
units 1-4
Pengze Jiangxi 2x1250 AP1000 CPI 2010 2013-14
units 1&2
Haiyang Shandong 2x1250 AP1000 CPI 2010?
units 3&4
Tianwan Jiangsu 2x1200 VVER- CNNC 10/2010
units 5&6 1200
Wuhu Anhui 2x1250 AP1000 CGNPC 12/2011 8/2016
units 1&2
Total: 57 63,130
MWe
Source: WNA
Drivers & Constraints
In June 2008, the China Electrical Council projected 60 GWe of nuclear capacity by 2020,
which was an increase from 50GW proposed by the State Energy Bureau (SEB) in 2008 and the
40 GW target proposed by the NDRC in 2007. In addition, a further statement from the State
Council in 2009 is considering raising the 2020 target to 86 GW installed.
Market Players & Competition
Nuclear Fuel
China has ordered mineral refiners to reserve Thorium for future nuclear generation plans.
• China (Nuclear International) Uranium Corporation is responsible for CNNC's uranium
exploration domestically. In December 2006, China Nuclear International Uranium
Corporation, or simply China Uranium Corporation (Sino-Uranium or SinoU), was set up by
CNNC to acquire uranium resources internationally, as well as undertaking exploration,
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development and uranium production abroad.1 It is setting up a mine in Niger and is
investigating prospects elsewhere.
• CNNC Overseas Uranium Holding <Unlisted> A wholly owned Hong Kong subsidiary of
SinoU is CNNC Overseas Uranium Holding Ltd, which in mid-2008 bought a 75% interest in
United Metals Holdings, a listed Hong Kong company and changed its name to CNNC
International Ltd. This has bought prospects in Mongolia, and in February 2009 made a
takeover bid for Khan Resources Inc, with major Mongolian assets.
• China Jianzhong Nuclear Fuel Co Ltd is a CNNC subsidiary and its main PWR fuel
fabricator, at Yibin in Sichuan. China North Nuclear Fuel China North Nuclear Fuel Co Ltd is a
CNNC subsidiary set up in 1998 to run a fuel fabrication plant at Baotou in Inner Mongolia. A
joint venture centred on it is being formed to progress research on thorium fuel cycle.
• China Baotau Nuclear Fuel. CNNC Baotou Nuclear Fuel Co Ltd was set up at the end of
2008 by SNPTC and the two CNNC fuel companies to make fuel for AP1000 reactors in Inner
Mongolia.
• CGNPC Uranium Resource Co Ltd (CGNPC-URC) is a CGNPC entity responsible for
mining and purchase of uranium resources, both domestic and imported. A related CGNPC
subsidiary set up in 2007, Sino-Kazakhstan Uranium Resources Investment Co, has invested
in two Kazakh uranium mines managed by Semizbai-U joint venture, following approval from
NDRC. CGNPC-URC has also embarked upon a joint venture (Uz-China Uran LLC) with
Uzbekistan's Goskomgeo focused on black shales in the Navoi region of Uzbekistan. Within
China, in November 2008 CGNPC Uranium (Xinjiang) Co. Ltd., a JV between CGNPC-URC
and Xinjiang Geology and Mineral Resources Bureau, was established.
• China Uranium Development Co Ltd (CUD) is an investment vehicle of CGNPC-URC
buying equity in overseas uranium resources, notably by a 70% takeover of Australian
uranium exploration company Energy Metals Limited.
Reactor Design and Construction
China has targeted nuclear energy as a key part of its energy policy. As with other strategic
sectors, such as Wind and Solar, it has focused on the development of its domestic industry:
• PWRs will be the mainstream but not sole reactor type.
• Nuclear fuel assemblies are fabricated and supplied indigenously.
• Domestic manufacturing of plant and equipment will be maximised, with self-reliance in
design and project management.
• Technology transfer through Joint Venture with international companies
China has entered into a number of Joint Ventures to obtain key IP foreign partners and become
self-sufficient in reactor design and construction.
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• China National Nuclear Corporation (CNNC, www.cnnc.com.cn) controls most nuclear
sector business including R&D, engineering design, uranium exploration and mining,
enrichment, fuel fabrication, reprocessing and waste disposal. It is the major investor in all
nuclear plants in China. Established by the State Council in 1988 as a self-supporting
economic entity, it "combines military production with civilian production, taking nuclear
industry as the basis while developing nuclear power and promoting a diversified economy." It
has numerous subsidiaries, including CNNC International Ltd (www.cnncintl.com), which is
listed in Hong Kong. CNNC designed and built Qinshan Phases I and II, and controls the full
Qinshan power plant. It has a payroll of about 1,000,000 and owns shares in many of the
nuclear power generation projects. In particular it is a champion of local designs.
• State Nuclear Power Technology Corporation (SNPTC, www.snptc.com.cn) was set up in
2004 to take charge of technology selection for new plants being bid from overseas. This is
through its Preparatory Office which draws expertise from other organizations such as
CGNPC. SNPTC is directly under China's State Council and closely connected with it. Early in
2007, SNERDI was removed from CNNC control and assigned to it as an R&D arm, boosting
its stature considerably. Westinghouse announced in 2008 that it was working with SNPTC
and Shanghai Nuclear Engineering Research & Design Institute (SNERDI) to jointly develop a
reactor, based of its AP1000 design.
• China Power Investment Corporation (CPI, www.cpicorp.com.cn), is one of five state-
owned power generation holding companies formed from the State Power Corporation in
2002 and inheriting all its nuclear capacity. It is a major power generator (controlling 54 GWe
at the end of 2009, including only 1351 MWe nuclear) and is the largest state-owned power
holding company with nuclear assets. It was at the forefront of discussions on plants for the
11th Five-Year Plan (2006-10). CPI owns 19 operating power plants above 1000MWe each, a
majority of Shandong Haiyang nuclear power project, 45% of Liaoning Hongyanhe nuclear
power project phase I, and holds minority shares in five nuclear power plants in operation,
and three under construction. It is carrying out preparation for nuclear power projects in
Guangxi, Liaoning, Hunan, Jilin and Chongqing.
• China Guangdong Nuclear Power (CGNPC, www.cgnpc.com.cn). CGNPC comprises some
20 companies with gross assets of RMB 133 billion and net assets of RMB 41 billion. CGNPC
is responsible for Daya Bay, Ling Ao, Yangjiang, Hongyanhe and Ningde power stations, as
well as further projects in the province and outside it. CGNPC was established in 1994 and is
45% owned by the provincial government (via China Guangdong Nuclear Power Group), 45%
by CNNC and 10% by CPI. Despite its relative independence it claims so be "under the
supervision of the State-owned Assets Supervision and Administration Commission of the
State Council." There is 25% Hong Kong equity in the Daya Bay plant. Areva and CGNPC
announced establishment of an engineering joint venture as a technology transfer vehicle for
development EPR and other PWR plants in China.
• China Huaneng Group <Unlisted> (CHNG, www.chng.com.cn) is one of China's major
generators, formed in 1988 when the State Power Ministry was broken up, and it has about
50 GWe in operation, none of it nuclear. In 2005 it set up a subsidiary, Huaneng Nuclear
Asia Pacific Clean Tech Handbook 296 of 348 31-May-10
Power Development Co Ltd to handle nuclear power projects, initially two projects in
Shandong province. It has formed links with both CNNC and CGNPC. It is an independent
state-owned but incorporated business entity focused on power generation. It aims to have 80
GWe installed by 2010 and 120 GWe by 2020.
• Huaneng International Power Development Corporation (HIPDC) is a sino-foreign JV
company owned 57% by China Huaneng Group and set up to develop, construct and operate
power plants in China. HIPDC controls Huaneng Power International (HPI), a sino-foreign
joint stock company incorporated in China, with a 42% shareholding in it. HPI is the country's
largest listed generator. China Huaneng Group also has a 9% direct shareholding in HPI,
which develops, constructs, operates and manages large-scale power plants in China
nationwide.
• The China Zhongyuan Engineering Corporation is involved with constructing a 300 MWe
PWR unit (CNP-300) at Chasma in Pakistan – a twin to that already commissioned in 2000
and similar to Qinshan 1 – China's first indigenously-designed (by SNERDI) nuclear power
plant. Qinshan phase 2 is CNP-600, a scaled-up two-loop version of the same.
6.10.5 Japan
Market Size & Growth
Japan's plan to cut greenhouse gas emissions is expected to boost the nation's share of
electricity from nuclear power to 44% from 31% now, a government estimate shows.
As part of METI Cool Earth 50 energy innovative technology plan in 2008, the Japan Atomic
Energy Agency (JAEA) has modelled a 54% reduction in CO2 emissions (from 2000 levels) by
2050 leading on to a 90% reduction by 2100. This would lead to nuclear energy contributing
about 60% of primary energy in 2100.
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Proposed Nuclear Reactors in Japan
Reactor Type Capacity Utility start * start *
construction operation
MW
Ohma 1 ABWR 1383 EPDC/ J- mid 2010 11/2014
Power
Fukushima I - 7 ABWR 1380 Tepco 4/2010 10/2015
Fukushima I - 8 ABWR 1380 Tepco 4/2011? 10/2016
Higashidori 1 Tepco ABWR 1385 Tepco 11/2009 3/2017
Tsuruga 3 APWR 1538 JAPC 10/2010 2016
Tsuruga 4 APWR 1538 JAPC 10/2011 2017
Kaminoseki 1 ABWR 1373 Chugoku 6/2012 3/2018
Sendai 3 APWR 1590 Kyushu 2013 2019
Higashidori 2 Tepco ABWR 1385 Tepco 2014? 2019 or later
Hamaoka 6 ABWR 1380 Chubu 2015 2020
Higashidori 2 ABWR 1385 Tohoku 2016 2020 or later
Tohoku
Namie-odaka BWR 825? Tohoku 2017 3/2021
Kaminoseki 2 ABWR 1373 Chugoku 2018 2022
Total (13) 17,915
MWe
Monju Prototype 246 JAEA operated 1994-95, awaiting
FBR restart
Source: WNA
Drivers & Constraints
In March 2002 the government announced that it would focus on nuclear energy to achieve
greenhouse gas emission reduction goals and submitted a 10-year energy plan to METI. The
plan called for an increase in nuclear power generation by about 30% (13,000 MW), with the
addition of 9 to 12 new nuclear plants by 2011. However, due to the safety fears and shut of
nuclear plants, Japan has not increased it nuclear power capacity at 53 reactors (46,236 MW).
There are an additional 3 plants (3300 MW) under construction and a further 13 plants (17,915
MW) planned.
In July 2005 the Atomic Energy Commission reaffirmed policy directions for nuclear power with a
30-40% share target for nuclear power in total generation after 2030.
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Market Players & Competition
Nuclear Fuel
• Japan Nuclear Fuel Ltd (JNFL) operates a commercial enrichment plant at Rokkasho. This
began operation in 1992 using indigenous technology. It has been testing a lead cascade of
its new Shingata design, and expects to re-equip the plant with this, starting in April 2010, and
with the new equipment to come on line in September 2011. JNFL's shareholders are the
power utilities.
• Mitsubishi Nuclear Fuel Co Ltd operates a 440 tU/yr fuel fabrication facility, which started
up in 1972 and has had majority shareholding by Mitsubishi Materials Corporation (MMC). In
April 2009 this was restructured as a comprehensive nuclear fuel fabrication company to
supply Japanese customers with uranium fuel assemblies for pressurized water reactors
(PWR), boiling water reactors (BWR) and high-temperature gas-cooled reactors (HTR), as
well as MOX fuel assemblies. It will also provide related services, including uranium
reconversion from 2014.
• Nuclear Fuel Industries (NFI) operates two fuel fabrication plants which have operated from
1976 and 1980 respectively. Kumatori (284 tU/yr) produces PWR and BWR fuel, Tokai (200
tU/yr capacity) is also set up to produce HTR and FNR fuel. NFI is also involved in a project to
design MOX fuel for Areva to manufacture for Japanese power plants. In 2009 Westinghouse
bought the 52% share of NFI owned by Furukawa and Sumitomo for $100 million.
Reactor Design and Construction
• GE-Hitachi <Unlisted> develops advanced light water reactors (LWR) and offers products
and services used by operators of boiling water reactor (BWR) and pressurized water reactor
(PWR) nuclear power plants to improve efficiency and boost output. Products and services
include steam turbines designed for nuclear applications, new and refurbished parts, nuclear
fuel, inspection and reactor modifications and modernization, plant performance software, and
instrumentation such as in-core and ex-core sensors, gamma thermometers, probes, and
radiation monitors. GEH serves more than half of the US's active nuclear reactor operators
and almost a third of the nation's operators for reactor supplies.
• Westinghouse <Unlisted> provides design work and start-up help for new nuclear power
plants and makes many of the components. Westinghouse Electric manufactures and
supplies the commercial fuel products needed to run the plants, and it offers training,
engineering, maintenance, and quality management services. The firm also has research and
technology operations. Its customers include utilities and industrial companies worldwide.
Westinghouse Electric, which is owned by Japan-based conglomerate Toshiba, estimates
that almost 50% of nuclear power plants around the world and about 60% of US plants are
based on the company's technology.
• Mitsubishi Heavy Industries (MHI). In April 2007 the government selected MHI as the core
company to develop a new generation of FBRs. This was backed by government ministries,
the Japan Atomic Energy Agency (JAEA) and the Federation of Electric Power Companies of
Japan. These are concerned to accelerate the development of a world-leading FBR by Japan.
Asia Pacific Clean Tech Handbook 299 of 348 31-May-10
MHI has been actively engaged in FBR development since the 1960s as a significant part of
its nuclear power business.
• Japan Steel Works (JSW) The main company producing the heavy forgings required for
nuclear power plants spent 40 billion Yen ($330 million) from 2007 to increase capacity in
advance of orders expected from both China and the USA. Japan Steel Works (JSW) has
production and research bases in Hiroshima, Yokohama and Muroran. The Muroran centre, in
Hokkaido, hosts the heavy steel works and research laboratory relevant to power generation.
Muroran manufactures reactor pressure vessels, steam generator components, generator &
turbine rotor shafts, clad steel plates and turbine casings for nuclear power plants. JSW has
been manufacturing forgings for nuclear plant components to US Nuclear Regulatory
Commission standards since 1974, and around 130 JSW reactor pressure vessels are used
around the world - more than one third of the total.
Utilities
• J-Power, is preparing to build its Ohma nuclear plant - 1383 MWe Advanced Boiling Water
Reactor (ABWR) - in Aomori prefecture. Construction of unit 1 was due to start in August
2007 for commissioning in 2012, but was delayed by more stringent seismic criteria, and then
delayed again in 2008
6.10.6 South Korea
Market Size & Growth
South Korea has embarked on a large nuclear power generation program through Korea Nuclear
Hydro Power (KNHP) and expected to increase generation to 243 billion kWh.
South Korean energy policy has been driven by considerations of energy security and the need to
minimise dependence on current imports. Policy is to continue to have nuclear power as a major
element of electricity production.
After drawing on Westinghouse and Framatome (now Areva) technology for its first eight PWR
units, and Combustion Engineering (which became part of Westinghouse) for two more, the
Korean Standard Nuclear Power Plant (KSNP) became a recognised design, and evolved a little
to KSNP+. In 2005 the KSNP/KSNP+ was rebranded as OPR-1000 (Optimised Power Reactor)
apparently for Asian markets, particularly Indonesia and Vietnam. Six operating units and four
under construction are now designated OPR-1000.
The Ministry of Education, Science & Technology's third comprehensive nuclear energy
development plan, for 2007-11, projected that South Korea should develop its nuclear industry
into one of the top five in the world, with about 60% of electricity from nuclear by 2035.
Asia Pacific Clean Tech Handbook 300 of 348 31-May-10
Proposed Nuclear Power Plants in South Korea
Reactor Type Net capacity Start construction Commercial
operation
Shin Kori 1 OPR-1000 1000 MWe June 2006 12/2010
Shin Kori 2 OPR-1000 1000 MWe June 2007 12/2011
Shin Wolsong 1 OPR-1000 1000 MWe November 2007 3/2012
Shin Wolsong 2 OPR-1000 1000 MWe September 2008 1/2013
Shin Kori 3 APR-1400 1350 MWe October 2008 9/2013
Shin Kori 4 APR-1400 1350 MWe September 2009 9/2014
Shin Ulchin 1 APR-1400 1350 MWe March 2011 12/2015
Shin Ulchin 2 APR-1400 1350 MWe March 2012 12/2016
Shin Kori 5 APR-1400 1350 MWe 8/2014 12/2018
Shin Kori 6 APR-1400 1350 MWe 8/2015 12/2019
Shin Wolsong 3 APR-1400 1350 MWe 6/2020
Shin Wolsong 4 APR-1400 1350 MWe 6/2021
Total 12 14,800 MWe
Source: WNA
Drivers & Constraints
The MKE declared in January 2010 that it aimed to achieve exports of 80 nuclear power reactors
worth $400 billion by 2030, in the course of becoming the world's third largest supplier of nuclear
technology, with a 20% share of the world market, behind the USA and France or Russia.
Market Players & Competition
Nuclear Fuel
• Korea Atomic Energy Research Institute (KAERI) has developed both PWR and Candu
fuel technology
• Korea Nuclear Fuel Company (KNFC) have supplied PWR fuel since 1990 and Candu
PHWR fuel (unenriched) since 1987. KNFC has capacity of 550 t/yr for PWR fuel and 700 t/yr
for Candu PHWR fuel, and supplies all KHNP's needs.
Reactor Design and Construction
• KHNP <Unlisted> is the largest among the six power generating subsidiaries that separated
from Korea Electric Power Corporation (KEPCO) in April 2001, accounting for approximately
25% of electricity producing facilities, hydro and nuclear combined. KHNP also operates
nuclear power plants in Kori, Yonggwang, Ulchin and Wolsong.
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6.10.7 Taiwan
Market Size & Growth
Taiwan has 6 nuclear power stations in operation. Nuclear power has been a significant part of
the electricity supply for two decades and now provides one quarter of base-load power and 17%
overall, though nuclear comprises only 11% of 46 GWe installed capacity.
In May 2009 Taipower was examining the prospects for six more reactors, starting with a pair at
an established site to be on line about 2020, though more recently it has projected one further
unit beyond Lungmen 1&2 being on line by 2025.
Drivers & Constraints
Nuclear Power is seen as a cost effective alternative to other fuel sources and will form a key
component of its power generation mix.
Market Players & Competition
• Taipower operates all 6 existing nuclear power stations and will be responsible for operating
the new proposed plants.
6.10.8 India
Market Size & Growth
India has a streamlined nuclear power program and expects to have 20,000 MW nuclear
capacities on line by 2020. It aims to supply 25% of electricity from nuclear power by 2050. It
currently has 27 reactors built, with 3,800MW in capacity.
India is also one of the largest sources of Thorium globally and will be best place to utilise the raw
material that it has domestically and become less reliant on Uranium.
Proposed Nuclear Reactors
Reactor Type MWe net, Project Commercial operation Safeguards status
each control due
Kaiga 4 PHWR 202 MWe NPCIL 3/2010
Rajasthan 6 PHWR 202 MWe NPCIL 2/2010 Oct 2009 under new
agreement
Kudankulam 1 PWR 950 MWe NPCIL 9/2010 item-specific
(VVER)
Kudankulam 2 PWR 950 MWe NPCIL 3/2011 item-specific
(VVER)
Kalpakkam FBR 470 MWe Bhavini 9/2011 -
PFBR
Total (5) 2774 MWe
Source: WNA
Asia Pacific Clean Tech Handbook 302 of 348 31-May-10
New Energy Parks
Nuclear Power Corporation of India (NPCIL) intends to set up "Nuclear Energy Parks" with a
capacity of up to 10,000 MW at a single location. By 2032, 40-45 GW would be provided from 5
parks. Proposed new energy parks include:
• Kudankulam in Tamil Nadu, with a capacity of 6800 MW.
• Jaitapur in Maharashtra, with a capcity of 9600 MW.
• Haripur in West Bengal: to host four further Russian VVER-1200 units, with a capacity of
4800 MW.
• Markandi (Pati Sonapur) in Orissa with plans for up to 6000 MW of PWR capacity.
• Kumharia in Haryana, a proposal for a 2800 MW nuclear power plant and the site is
apparently earmarked for four indigenous 700 MW PHWR units.
• Bargi in Madhya Pradesh is also designated for two indigenous 700 MW PHWR units.
• Mithi Virdi (or Chayamithi Virdi) in Gujarat: to host US technology (Westinghouse AP1000).
• Kovvada in Andhra Pradesh: to host US technology (GE Hitachi ESBWR - possibly ABWR).
The AEC has also mentioned possible new nuclear power plants in Bihar and Jharkhand.
Drivers & Constraints
The Indian Atomic Energy Commission (AEC) is the main policy body. The target since about
2004 has been for nuclear power to provide 20 GW by 2020. Late in 2008 NPCIL projected 22
GW on line by 2015, and a 50 GW of nuclear power operating by 2050. In June 2009 NPCIL said
it aimed for 63 GW nuclear by 2032, including 40 GW of PWR capacity and 7 GW of new PHWR
capacity. The AEC however envisages some 500 GWe nuclear on line by 2060, and has since
speculated that the amount might be higher still: 600-700 GWe by 2050, providing half of all
electricity.
Next Generation Reactors ‐ Thorium
With a large reserve of thorium, India has targeted thorium for large-scale energy production to
reduce its reliance on imported uranium. The plan will be in three stages:
• Pressurised Heavy Water Reactors (PHWRs) fuelled by natural uranium, plus light water
reactors, producing plutonium.
• Fast Breeder Reactors (FBRs) using plutonium-based fuel to breed U-233 from thorium. The
blanket around the core will have uranium as well as thorium, so that further plutonium
(particularly Pu-239) is produced as well as the U-233.
• Advanced Heavy Water Reactors burn the U-233 and this plutonium with thorium, getting
about 75% of their power from the thorium. The used fuel will then be reprocessed to recover
fissile materials for recycling.
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Market Players & Competition
Nuclear Fuel
• Mining and processing of uranium is carried out by Uranium Corporation of India Ltd, a
subsidiary of the Department of Atomic Energy (DAE), at Jaduguda and Bhatin (since 1967),
Narwapahar (since 1995) and Turamdih (since 2002) - all in Jharkhand near Calcutta. All are
underground, the last two being modern.
• India has reserves of 290,000 tonnes of thorium - about one quarter of the world total, and
these are intended to fuel its nuclear power program longer-term
Design and Operation
• Nuclear Power Corporation of India Ltd (NPCIL) <Unlisted> is responsible for design,
construction, commissioning and operation of thermal nuclear power plants. At the start of
2010 it said it had enough cash on hand for 10,000 MWe of new plant. Its funding model is
70% equity and 30% debt financing.
• National Thermal Power Corporation (NTPC) <Unlisted> is India's largest power company
and has proposed building a 2000 MWe nuclear power plant to be in operation by 2017. It
would be the utility's first nuclear plant and also the first conventional nuclear plant not built by
the government-owned NPCIL. This proposal has now become a joint venture with NPCIL
holding 51%, and possibly extending to multiple projects utilising imported technology. NTPC
says it aims by 2014 to have demonstrated progress in "setting up nuclear power generation
capacity", and that the initial "planned nuclear portfolio of 2000 MW by 2017" may be greater.
NTPC, now 89.5% government-owned, is planning to increase its total installed capacity from
30 to 50 GWe by 2012 (72% of it coal) and 75 GW by 2017. It is also forming joint ventures in
heavy engineering.
Construction
• Larsen & Toubro (L&T) announced in July 2008 that it was preparing to venture into
international markets for supply of heavy engineering components for nuclear reactors.
• Reliance Power (RPower), NPCIL, and BHEL said that they plan to invest over US$ 50
billion in the next five years to expand their manufacturing base in the nuclear energy sector.
BHEL plans to spend $7.5 billion in two years building plants to supply components for
reactors of 1,600 MWe. It also plans to set up a 50-50 venture with NPCIL that will supply
turbines for nuclear plants of 700 MWe, 1,000 MWe and 1,600 MWe and will seek overseas
partners to provide technology for these enterprises
• Hindustan Construction Co. (HCC) has built more than half of India's nuclear power
capacity, notably all 6 phases of the Rajasthan Atomic Power Project and also Kudankulam.
It specializes in prestressed containment structures for reactor buildings. In September 2009
it formed a joint venture with UK-based engineering and project management firm AMEC PLC
to undertake consulting services and nuclear power plant construction. HCC has an order
backlog worth 10.5 billion rupees ($220 million) for nuclear projects from NPCIL and expects
six nuclear reactors to be tendered by the end of 2010.
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6.10.9 Singapore
Market Size & Growth
There are currently no nuclear plants in commercial use in Singapore.
Drivers & Constraints
Singapore has undertaken a feasibility study on nuclear power as part its study on energy
security.
Market Players & Competition
There are no companies identifed in this sector in Singapore.
6.10.10 Indonesia
Market Size & Growth
Plans are to call tenders in 2008 for two 1000 MWe units, Muria 1 & 2, leading to a decision in
2010, with construction starting soon after and commercial operation from 2016 and 2017.
Tenders for Muria units 3 & 4 are expected to be called for in 2016, for operation from 2023. The
government has said that it has $8 billion earmarked for four nuclear plants of total 6 GWe to be
in operation by 2025. Under current plans it aims to meet 2% of power demand from nuclear by
2017. There is also proposed a small power and desalination plant for Madura, using the S.
Korean SMART reactor.
Drivers & Constraints
A 2001 power generation strategy showed that introduction of a nuclear plant on the Java-Bali
grid would be possible in 2016 for 2 GWe rising to 6-7 GWe in 2025, using proven 1000 MWe
technology with 85% capacity factor and investment cost $2000/kWe. Late in 2003 National
Atomic Energy Agency (BATAN) narrowed the choice of plant to a South Korean 1000 MWe
pressurised water reactor.
Under the 2006 Law on Nuclear Reactors the project may be given to an IPP to build and
operate, on one of three sites on the central north coast of Java. Plans were to call tenders in
2008 for two 1000 MWe units, Muria 1 & 2, leading to decision in 2010 with construction starting
soon after and commercial operation from 2016 and 2017, but this schedule has slipped. Tenders
for Muria units 3 & 4 were expected to be called for in 2016, for operation from 2023.
The government has said that it has $8 billion earmarked for four nuclear plants of total 6 GWe to
be in operation by 2025. Under current plans it aims to meet 2% of power demand from nuclear
by 2017. It is anticipated that nuclear generation cost would be about 4 cents/kWh (US)
compared with 7 c/kWh for oil and gas.
Market Players & Competition
In July 2007 KHNP signed a memorandum of understanding with Indonesia's PT Medco Energi
Internasional to progress a feasibility study on building two 1000 MWe OPR-1000 units from
KHNP at a cost of US$ 3 billion. The Indonesian government earlier confirmed in principle
Asia Pacific Clean Tech Handbook 305 of 348 31-May-10
approval of four 1000 MWe units on the Muria peninsula, 450 km east of Jakarta in central Java,
with a view to commissioning in 2016
In addition, BATAN has undertaken a pre-feasibility study for a small Korean SMART reactor for
power and desalination on Madura. However, this awaits the building of a reference plant in
Korea. Also the province of Gorontalo on Sulawesi is reported to be considering a floating nuclear
power plant from Russia, and late in 2007 a cooperation agreement with Japan was signed,
envisaging its help in building and operating nuclear power plants.
The Japanese and Indonesian governments signed a cooperation agreement in November 2007
relating to assistance to be provided for the preparation, planning, and promotion of Indonesia's
nuclear power development and assistance for public relations activities.
6.10.11 Malaysia
Market Size & Growth
There are currently no nuclear plants in commercial use in Malaysia.
Drivers & Constraints
A comprehensive energy policy study including consideration of nuclear power will be completed
before 2010. The state-owned utility TNB is tentatively in favour of nuclear power and in August
2006 the Malaysian Nuclear Licensing Board said that plans for nuclear power after 2020 should
be brought forward and two reactors built much sooner.
Market Players & Competition
There are currently no nuclear plants in commercial use in Malaysia.
6.10.12 Philippines
Market Size & Growth
There are currently no nuclear plants in commercial use in the Philippines.
Drivers & Constraints
In 2007 the Philippines Department of Energy (DOE) set up a project to study the development
of nuclear energy, in the context of an overall energy plan for the country. Nuclear energy would
be considered in order to reduce the country's dependency on imported oil and coal. In its 2008
update of the National Energy Plan, 600 MWe was projected to be in operation by 2025, with
further 600 MWe increments in 2027, 2030 and 2034 to give 2400 MWe.
Market Players & Competition
There are currently no nuclear plants in commercial use in the Philippines.
Asia Pacific Clean Tech Handbook 306 of 348 31-May-10
6.10.13 Thailand
Market Size & Growth
Interest by Thailand in nuclear power was revived by a forecast growth in electricity demand of
7% per year for the next twenty years. About 70% of electricity is from natural gas. Capacity
requirement in 2016 is forecast at 48 GWe.
Drivers & Constraints
In June 2007 the Energy Minister announced that it would proceed with plans to build a 4000
MWe nuclear power plant, and has budgeted funds to 2011 for preparatory work. Construction
will commence in 2015, to operate from 2020.
Thailand is currently investigating the potential for nuclear power by 2020, as part its 15 year
Masterplan.
Market Players & Competition
Thailand has had an operating research reactor since 1977 and a larger one is under
construction.
In November 2009 EGAT and CLP Holdings Ltd signed an agreement with China Guangdong
Nuclear Power Corporation regarding nuclear power development.
6.10.14 Australia
Market Size & Growth
While Australia has the largest Uranium resources in the world, accounting for around a quarter
of the world’s reserves (1.24 million tonnes), there are currently no nuclear plants in commercial
use in Australia.
About 96% of Australia's Economically Demonstrated Resources (EDR) are within six
deposits: Olympic Dam, Ranger, Jabiluka, Koongarra, Kintyre and Yeelirrie.
Drivers & Constraints
In December 2006 the report of the Prime Minster's expert taskforce considering nuclear power
was released. It said nuclear power would be 20-50% more expensive than coal-fired power and
(with renewables) it would only be competitive if "low to moderate" costs are imposed on carbon
emissions (A$ 15-40 - US$ 12-30 - per tonne CO2). "Nuclear power is the least-cost low-
emission technology that can provide base-load power" and has low life cycle impacts
environmentally.
The report said that the first nuclear plants could be running in 15 years, and looking beyond that,
25 reactors at coastal sites might be supplying one third of Australia's (doubled) electricity
demand by 2050.
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In April 2007 the Prime Minister announced that the government would proceed to open the way
for nuclear power in Australia by setting up a nuclear regulatory regime and removing any
regulatory obstacles which might unreasonably stand in the way of building nuclear power plants.
Australia would also apply to join the Generation IV International Forum, which is developing
advanced reactor designs for deployment about 2025. However, with a change of government
late in 2007 the move towards nuclear power was halted.
Market Players & Competition
Nuclear Fuel
• Paladin <PDN.AX> is a Uranium Mining company and its projects include Langer Heinrich
Project, Kayelekera Project, Bigrlyi Project, Angela Uranium Project, Manyingee Project and
Oobagooma Project. The Langer Heinrich Project is located in the Namib Desert, 80 kilometers east of
the seaport of Walvis Bay and about 40 kilometers south-east of Rossing uranium mine (Rossing
Project). The Kayelekera Project is located in northern Malawi, 52 kilometers west of the provincial
town of Karonga. The Company’s subsidiaries include Paladin Finance Pty Ltd, Northern Territory
Uranium Pty Ltd, Paladin (Africa) Ltd, Mount Isa Uranium Pty Ltd, Langer Heinrich Uranium (Pty) Ltd,
Paladin Energy Minerals NL and Paladin Nuclear Ltd. In April 2009, Paladin Energy Limited completed
the compulsory acquisition of 97% interest in Fusion Resources Limited. For a detailed company
profile, see Appendix A.
• Enery Metals Limited <EME.AX> is engaged in uranium exploration. The Company has nine
projects located in the Northern Territory (NT) and Western Australia covering over
4,000square kilometers. The Ngalia Regional project comprises 10, 100% owned exploration
licenses (total area 2,840square kilometers) located in the Ngalia Basin, between 180 and
350 kilometer northwest of Alice Springs in the Northern Territory. The Bigrlyi Project
comprises 10 granted exploration retention licenses located approximately 350 kilometer
northwest of Alice Springs. The Macallan project is an exploration license application
(ELA27333), located 460 kilometer northwest of Alice Springs and 140 kilometer from the
advanced Bigrlyi project. The Company holds 100% interest in NT Energy Pty Ltd. The
Company holds 53.74% interest in Bigrlyi Joint Venture.
Design and Construction
Australia only has two research nuclear reactors:
• High Flux Australian Reactor (HIFAR), was for many years the only operating nuclear
reactor in Australia. It was used for materials research, to produce radioactive materials for
medicine and industry and to irradiate silicon for the high performance computer industry.
• Open Pool Australian Lightwater reactor (OPAL), the new research reactor is is a 20 MW
open pool design using low-enriched fuel (less than 20% enriched).
6.10.15 New Zealand
Market Size & Growth
There are currently no nuclear plants in commercial use in New Zealand.
Asia Pacific Clean Tech Handbook 308 of 348 31-May-10
Drivers & Constraints
In 1968 the national power plan first identified the likely need for nuclear power in NZ a decade or
more ahead, since readily-developed hydro-electric sites had been utilised. However, a further
report in 1978 said that there was no immediate need for NZ to embark upon a nuclear power
program, but suggested that early in 21st century "a significant nuclear programme should be
economically possible."
Market Players & Competition
There are currently no nuclear plants in commercial use in New Zealand.
6.10.16 Summary of Companies
Code Company Name Market Cap PE Country Segment
(M Dollars) Ratio
PDN.AX Paladin Energy Ltd $2,621.8 N/A Australia Metals - Non Ferrous
EME.AX Energy Metals Ltd $66.9 N/A Australia Metals - Non Ferrous
China National Nuclear
Unlisted Corporation N/A N/A China Nuclear Fuel
Unlisted Japan Nuclear Fuel N/A N/A Japan Nuclear Fuel
Unlisted GE-Hitachi N/A N/A Japan Reactor Design
Unlisted Westinghouse N/A N/A Japan Reactor Design
Unlisted KHNP N/A N/A South Korea Nuclear Utility
6.11 Wastewater
6.11.1 Background
This section primarily looks at waste water treatment and water re-use, rather than water supply.
In addition, the use of wastewater streams to generate biogas that can be used to generate
power that overlaps with landfill gas generation in Section 6.11.
6.11.2 Targets & Incentives
• China - The Ministry of Construction required that by 2010, the municipal wastewater
treatment rate should not be lower than 70%, and all cities and counties should establish or
plan to establish centralized wastewater treatment facilities.
• Japan - Japan’s wastewater facilities services only around 70% of the population. Japan is
increasing its power generation from biogas with over 40 plants installed and more than 350
sewage treatment plants working with anaerobic digestion facilities in place.
• South Korea – South Korea is in the process of upgrading its wastewater systems to include
tertiary treastment. There are around 400 treatment plants, with around 30 new plants
constructed every year
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6.11.3 Wastewater Process
Wastewater Treatment
Water treatment technology is gradually shifting from traditional filter and settlement processes to
membrane processing. Primary treatment involves separation, coagulation, flocculation and
settlement of material. This stage is followed by a secondary stage involving filtration through
sand beds or activated carbon to absorb chemical contaminants.
Water processing membranes are resin membranes with tiny perforations that range in size
between micrometres (or millionths of a metre) to nanometres (billionths of a metre). The
dimensions of the perforations allow them to filter out impurities under pressure, and increase the
purity of the water. There are four main types of membrane, which are used in response to
different applications:
• Reverse Osmosis (RO), used in the desalination process;
• Nano Filtration (NF);
• Ultra Filtration (UF); and
• Microporous Filtration (MF)
After potable water has been filtered, it then typically goes through a tertiary stage of disinfection.
There are three methods of disinfection used in the potable water industry:
• Ozonation is a process of adding ozone to the water supply, whereby disease-causing
microbes, including Giardia and Cryptosporidium, are deactivated.
• Ultraviolet takes place as water flows through an irradiation chamber. Micro-organisms in the
water are inactivated when the UV light is absorbed. This damages their nucleic acid, thereby
preventing the microbe from replicating and infecting a host.
• Chlorine is a disinfectant added to drinking water to reduce or eliminate microorganisms,
such as bacteria and viruses. Chlorine remains the most commonly used drinking water
disinfectant, used in more than 90% of the world’s drinking water either as the primary source
of disinfection or as a secondary disinfection after an ozone or ultraviolet primary disinfection.
Reused Water
Since much of the recycled water will not be clean enough to drink, re-used water can be used for
agricultural purposes (which is the main user of water) with relatively little purification compared
with desalinated water (where the salt has to be extracted), which requires extensive purification.
There are two types of water that can be re-used:
• Grey water is non-industrial wastewater generated from domestic processes. The US EPA
defines grey water as non-drinkable water that can be reused for irrigation, flushing toilets,
and other purposes. Grey water can be used immediately or treated and stored. It is distinct
from black water, which contains more polluting chemical and biological contaminants.
Asia Pacific Clean Tech Handbook 310 of 348 31-May-10
• Reclaimed (or recycled) water is former wastewater that has been treated to remove solids
and certain impurities. It is often only intended for non-potable uses (e.g., irrigation, dust
control, fire suppression); but with more advanced treatment, it can be for potable reuse.
Biogas
Biogas is created from the anaerobic digestion of biodegradable matters, such as wastewater,
which produces methan and used to generated electricity.
Figure 6.26 – Wastewater & Desalination Process
Primary Secondary Tertiary End Product
Sandbed Chlorine Biogas
Separation
Flocculation
Activated Carbon UV Grey Water
Settlement
Membrane Ozone Potable Water
Distillation
Saltwater
Membrane
6.11.4 Research & Development
Research of 180,000 patent filings in the wastewater sector undertaken by Thomson Reuters (from
1985 to 2008) showed that Japan was the global leader, followed by USA and Germany. China
ranked 6th with 18,278 patent documents 47.
Assignee analysis of water pollution and treatment patents applied in China showed that individual
inventers contribute a significantly higher proportion of patent applications (54%), with Universities and
enterprises accounting for 19% each, while research institutes only accounted for 8% of patents filed.
Further analysis of the top 20 assignees indicates that the Chinese universities (15 out of 20). Further
47
Patent Activity on Water Pollution and Treatment in China – a Scientometric Perspective, Institute of Scientific and
Technical of Information of China, Beijing, 100038, P.R.China. Thomson Reuters, Beijing,100190, P.R.China, ISTIC-
Thomson Reuters Joint Lab for Scientometrics Research
Asia Pacific Clean Tech Handbook 311 of 348 31-May-10
investigation, showed that there was little collaboration among enterprises, universities, and research
institutes are found.
The top 20 patent assignees for wastewater in China
Rank Patent Assignee No Patents
1 Research Center for Eco-Environmental Sciences, Chinese Academy of Sciences 184
184
2 Tsinghua University 157
3 Harbin Institute of Technology 151
4 China Petroleum & Chemical Corporation 149
5 Nanjing University 128
6 Zhejiang University 113
7 Shanghai Jiao Tong University 89
8 South China University of Technology 88
9 Tongji University 84
10 Shanghai Wansen Water treatment Co.,Ltd 78
11 Tianjin University 65
12 Dalian University of Technology 43
13 Nankai University 38
14 Dalian Institute of Chemical Physics, Chinese Academy of Sciences 32
15 15 Shandong University 30
16 The Institute of Applied Ecology, Chinese Academy of Sciences 29
17 Southeast University 29
18 Sun Yat-sen university 27
19 Sichuan university 27
20 University of Science and Technology Beijing 27
Source: Thomson Reuters Scientific
6.11.5 China
Market Size & Growth
Wastewater
In early 2006, the Ministry of Construction required that by 2010, the municipal wastewater
treatment rate should not be lower than 70%, and all cities and counties should establish or plan
to establish centralized wastewater treatment facilities. Water remains one of the major focuses
of the 11th Five-Year Plan (2006-2010) environmental protection plan. While stepping up efforts
to increase and improve municipal wastewater treatment facilities, China will begin to levy
sewage treatment fees throughout the country in the coming five years.
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China generated 57.2 billion tons of wastewater in 2008; municipal wastewater and industrial
wastewater account for 58% and 42% respectively.
Investment in Municipal Wastewater Treatment Plants
Year Budget ($ billion) Number of Plants Capacity (Mm3/day)
2001-2008 1.17 78 3.785
2009-2013 0.77 57 2.905
Total 1.94 135 6.690
Source: PRC State Environmental Protection Administration
China is likely to be a major market with the development of wastewater treatment capacity and
continued water shortages in the north east. Beijing already recycles 60% of its wastewater but
recently announced (April 2009) a three-point plan that includes RMB 35bn (US$5.13bn) of
investment in water and wastewater infrastructure between 2009 and 2013. The plan includes
increasing charges for recycled water (these have remained unchanged since being fixed at
$0.15/m3 in 2003) and specific goals to ensure that 100% of wastewater is eventually recycled. It
is now required, for example, that newly developed residential buildings in Beijing with
construction areas over 30,000 m2 build on-site wastewater reuse facilities.
Biogas
China has also included biogas treatment technologies, such as anaerobic-aerobic activated
sludge process. Examples of projects include The wastewater treatment plant in Shandong and
Baoan District Wastewater Treatment Plant in Guangdong.
Asia Pacific Clean Tech Handbook 313 of 348 31-May-10
MSW and food waste biogas plants currently under consideration in China
Location Start Feedstock Technology Capacity € Comments
Developer mt/a
Beijing Dong 2007 Restaurant- & Linde Valorga 0.2 lnv.18m Feasibility
Cun Taihu MSW,manure Biomax Fee13.5/t 2005, CDM
Coun.
Beijing till Restaurant- &. 9 plants
2010 MSW, .. anticipated
Shanghai 2008 MSW, BMW 0.22 Inv. 32m Ppublic tender
Jinshan
Shanghai 2007 Municipal wet Valorga 0.18 to lnv.30m Feasibility
waste Biomax 0.29 Fee17/t 2005, CDM
Putuo,
PDD1/06
Shanghai
Guangzhou 2007 Municipal wet Valorga 0.36 lnv.32m Preparation
Likeng waste Biomax
(Guandong)
Changsha 2005 MSW 0.73 lnv.11m Biogas power
plant
Huiming
(Hunan)
Mianyang 2002 MSW Tunnel type 0.25 AD: AD as pilot
3600t/a project
(Sichuan)
Yingkou 2007 MSW, SS Tsinghua 0.27 lnv.20m
(Liaoning) Tongfang
Shenyang 2010 BMW (source Wet AD 0.12 to lnv.12m Prefeasibility-
separation) recommended 0.20 Fee >6/t study
(Liaoning)
Based on the 'National Biogas Construction Plan of the MOA 2003, 48 the small-scale urban
household biogas digesters were built and supported in the south western rural areas of China In
2003 8m units were in use, which grew to about 10% of the rural population in 2005, producing
48
National Biogas Construction Plan of the MOA 2003
Asia Pacific Clean Tech Handbook 314 of 348 31-May-10
5.5bn nm3/a biogas from 15m units. It is projected that 56m digesters will be in operation by 2020
and 20bn nm3/a of biogas will be produced for decentralised energy supply (cooking, lightning).
Drivers & Constraints
Wastewater
China has stepped up its efforts to improve the regulatory framework for modern wastewater
management. A range of regulatory and economic instruments are used, such as charging users
for water services. However, local enforcement remains weak in many regions.
The 11th Five Year Plan, the Chinese Government has set a target of 1.35% of GDP to be
invested in “environmental protection”, which includes wastewater treatment. Continued
investment in this sector is expected to continue into the 12th Five-Year Plan (2011-2015). China
has also stipulated relevant policies to encourage private and foreign investment in wastewater
treatment facilities. Key wastewater treatment projects in China include:
• South-to-North Water Diversion Project. The construction of the South-to-North Water
Diversion Project will create a large water supply and wastewater treatment market. USD1.93
billion is the planned investment for the construction of municipal wastewater treatment plants.
These projects are located in Jiangsu, Shandong, Hebei, Tianjin, Anhui and Henan Provinces.
• Three Gorges Watershed Area. As part of the Three Gorges Project, wastewater treatment
projects will be implemented in Hubei, Sichuan, Guizhou, Yunnan Provinces and Chongqing
Municipality. China plans to build 20 more sewage disposal plants in the Three Gorges
Reservoir area in central Hubei Province on the Yangtze River to further improve water
quality in the reservoir. These projects will be built in Zigui, Xingshan, Badong, Yuan'an, Enshi
and Lichuan counties in the reservoir area.
• Beijing 2008 Olympic Games. Nine wastewater treatment plants, 1000 km long wastewater
main pipelines, nine wastewater reclamation and reuse facilities, and four sludge digesting
facilities were constructed for a total investment will be USD1.45 billion.
Biogas
China’s 2003-2010 National Rural Biogas Construction Plan is to increase biogas-using
households by a further 31 million to a total of 50 million, so the rate of use would reach 20% of
total rural households.
Market Players & Competition
Wastewater
• Epure <Unlisted> is a water and water-treatment EPC company predominantly operating in
China. The company also owns Beijing Hi Standard, a manufacturer of waste-water treatment
equipment. Epure has said it is looking to diversify its earnings stream further by acquiring
BOT and BOO projects in China, as well as expanding into the Middle Eastern EPC market.
To this end, Epure has acquired seven BOT water and waste treatment plants in China.
Epure also signed a Letter of Intent to design and build a 72,000 tpd waste water treatment
Asia Pacific Clean Tech Handbook 315 of 348 31-May-10
facility in Saudi Arabia, the company’s first venture outside China. Epure should in our view
be a key beneficiary of the growing demand for water in China. We maintain a Neutral rating
on the stock.
• Pan Asia Environmental Protection Group Limited <0556.HK> together with its
subsidiaries, is engaged in the sale of pipes, water treatment and flue gas treatment products
and equipment, as well as undertaking of environmental protection (EP) construction
engineering projects and provision of EP-related professional services. The Company
operates in three segments: sale of EP products and equipment, EP construction engineering
projects, and the provision of professional services. The sale of EP products and equipment
segment is responsible for selling pipes, and water and flue gas treatment products and
equipment. The water treatment systems of the Company are used mainly to process
industrial and urban wastewater. Its flue gas treatment systems are used to remove waste
gases generated in an array of industrial processes.
Biogas
• Hongzhi Alcohol Corporation located in Mianzhu, Sichuan Province which is the largest
alcohol factory in south-western China, uses its industrial organic wastewater, sewage and
dregs to produce biogas. The city of Mianzhu treats 98 per cent of municipal sewage
including wastewater from hospitals through digesters with a total capacity of 10,000 m3.
• Chenming Paper Co. which generates 300 tons of sludge a day is adding its own start up
biogas program using pulp wastes. The same goes for intensive animal husbandry on many
large or medium size livestock and poultry farms in the suburbs of cities.
6.11.6 Japan
Market Size & Growth
Wastewater
As of March 2006, Japan’s wastewater facilities serviced 69% of the population. Of the remainder, 12% of
households used septic tanks and 19% had no access to sanitation. To improve this, the sector’s first
priority is to expand the wastewater treatment system in rural areas.
Production of Water Pollution Control Equipment
Millions of Dollars 2004 2005 2006
Industrial wastewater treatment 608 613 678
Sewage water treatment 1,989 1,703 1,303
Human waste treatment 379 324 268
Sewage sludge treatment 1,107 809 581
Source: Japanese Society of Industrial Machinery Manufacturers
Asia Pacific Clean Tech Handbook 316 of 348 31-May-10
Biogas
Japan is increasing the amount of biogas plants with a high speed. Power generation from
stockfarming waste, sewage sludge, food waste and biomass is in 2007 increased to over 40
plants, build and under construction with a electric power generation over 9 million kWh. More
then 350 sewage treatment plants working with anaerobic digestion facilities of the sludge, with
more plants developing power generation facilities from 30 today and 100 million kWh per year.
Drivers & Constraints
Japan has two sets of legislation that deals with wastewater:
• The Water Pollution Control Law (WPCL) designates facilities that emit hazardous
wastewater as Specified Facilities
• The Sewage Law refers to those same facilities as Specified Business Premises.
Market Players & Competition
Pump
• Ebara <6361.T> The pump business is Ebara’s core business segment and it has historically
delivered a very stable revenue stream. The environment-related business at Ebara also
offers significant exposure to the water sector. Two thirds of Ebara’s business is focused on
Japan.
• Kurita Water Industries <6370.T> Business is focused on the sale of ultra pure water
production systems (used for cleaning in the semiconductor and FPD manufacturing
processes) and water treatment systems for industrial uses. Kurita also operates
maintenance/service divisions to support these systems. Growth in equipment sales may slow
(it has averaged annual growth of 17% over the past five years), but we expect the service
businesses (which account for 70% of total FY 2009 revenue) to bounce back when facility
operation rates and capex in semiconductor/FPD manufacturing-related companies recover.
Growing demand for desalination plants, water recycling and water treatment systems and
chemicals should continue to support Kurita’s business.
• Tsurumi Manufacturing Co., Ltd. <6351.T> is a Japan-based company principally engaged
in the manufacture, purchase, sale, leasing and repair of various water pumps, as well as the
provision of post-sale services. The Company is also involved in businesses related to
machinery equipment installation, civil engineering, electrical work, piping work, water utility
construction, cleaning facility construction and steel structure work, as well as the leasing of
fixed assets, which include real estates, machinery, office equipment and automobiles. The
Company has 10 subsidiaries and one associated company in Japan, Hong Kong, Singapore,
the United States, Taiwan, China and Thailand.
• China Boqi Environmental Solutions Technology <1412.T> is a holding company
engaged in the provision of environmental services in China, through its subsidiaries. The
Company is active in three business segments. The Flue Gas Desulfurization (FGD) segment
is engaged in the design, construction, installment and the provision of after-sales services of
desulphurization systems for the treatment of sulfur oxide in flue gas, denitration systems for
Asia Pacific Clean Tech Handbook 317 of 348 31-May-10
the treatment of nitrogen oxides, and internal desulphurization systems for boilers. The Solid
Waste Processing segment is engaged in the investment, construction and operation of waste
treatment power plants and others. The Others segment is engaged in the design,
construction, installment and the provision of after-sales services of treatment systems for
power plants, industry and domestic wastewater, as well as residual heat power generation
facilities.
Membrane Technology
• Nitto Denko <6988.T> Nitto Denko aims to expand the water business alongside its mainstay
LCD film division. It has increased its RO membrane capacity by 1.6 times. With further
expansion of this plant in due course, the company says it aims to boost sales in its water
segment to ¥100bn over the next ten years by strengthening RO-peripheral technologies and
the repair/maintenance business.
• Mitsubishi Rayon Co., Ltd <3404.T> is a leader in membrane technology for the
wasterwater business
• Toray Industries, Inc. <3402.T> has an Environment and Engineering segment offers functional
film and machines, as well as materials for housing, construction and civil works for the wastewater
industry.
Engineering Procurement and Construction (EPC)
• Kubota Corporation <6326.T> is mainly engaged in the manufacture farm equipment, and
producer of pipes, principally ductile iron pipes, and related equipment for water supply and
other utilities. In addition, the Company manufactures and sells other items, such as engines,
construction machinery, industrial castings, industrial machinery, environmental control plants.
• Tsukishima Kikai Co., Ltd. <6332.T> See Section 6.12
• Suido Kiko Kaisha, Ltd., <6403.Q> mainly engaged in the water treatment business. The
Company is engaged in the manufacture, installation and sale of water treatment machinery
and equipment. The Company's products include the water treatment process equipment,
such as coagulation sedimentation treatment equipment, filtration equipment, chemicals
injectors, water treatment chemicals, seawater desalination units, wastewater treatment
equipment, measurement equipment and valves; the sewage treatment units for sewage
treatment, advanced sewage treatment and agricultural community sewerage treatment, as
well as the environment engineering products, such as industrial water and industrial
wastewater treatment products and wastewater recycling systems.
6.11.7 South Korea
Market Size & Growth
Korea’s water and waste water market is estimated to be worth USD 10 billion and is steadily
growing, according to the Korean MOE. In 2009, the government spent an estimated USD 2.1
billion on water management projects. This accounts for 60% of the entire environmental market,
which is assessed at about USD 3.4 billion.
Asia Pacific Clean Tech Handbook 318 of 348 31-May-10
Companies and local communities operate the sewage services, including wastewater
reclamation-and-reuse systems, drainage facilities, and sewage processing plants. Currently,
there are 403 municipal sewage treatment factories nationwide, and the Korean government
constructs over 30 new sewage treatment plants every year.
Drivers & Constraints
The Korean government improved environmental regulations and in the process upgradied
existing sewage treatment plants to install tertiary processes such as activated carbon filtering
and advanced disinfection processes. For these purposes, the Korean government allocated a
budget of USD 1.2 billion in 2008.
Market Players & Competition
• Samyang Water and Sewage <Unlisted> is one of Korea`s first engineeringfirms in the water
purification and sewage treatment industry.
• Hyosung Ebara <Unlisted> is a joint venture with Ebara and is the leading centrifugal pump
manufacturer in South Korea.
Biogas
• Scandinavian Biogas is investing about 10 million euros ($13.8 million) to upgrade a
wastewater treatment plant in Ulsan and will soon start accepting food and other waste for
processing into biogas
6.11.8 Taiwan
Market Size & Growth
During the 1980s, the Taiwan authorities began the planning and construction of municipal water
treatment facilities and the Taipei Metropolitan Sewage Treatment System Development
Project was initiated to increase Taiwans’s sewage treatment rate from 43% in 2008 to over 60%
by 2014.
Drivers & Constraints
Market Players & Competition
No companies identified
6.11.9 India
Market Size & Growth
It is estimated the total market is worth more than US$1 billion, divided about one-third for water
provisioning, one third for municipal water treatment and one-third for industrial water treatment.
Drivers & Constraints
The key pieces of legislation driving India’s wastewater treatment markets are:
• Water (Prevention and Control of Pollution) Act, 1974,
• Water (Prevention and Control of Pollution) Cess Act, 1977, and
• Environment (Protection) Act, 1986
Asia Pacific Clean Tech Handbook 319 of 348 31-May-10
The Indian water treatment equipment industry is reasonably well established and cost-
competitive. Locally fabricated equipment is about 30% cheaper than imported equivalents, but
Indian firms have limited capabilities in designing technologies for larger scale water treatment
plants. The water treatment market is moving from chemical treatment and demineralization
technologies to greater use of membrane technology.
Market Players & Competition
• Jain Irrigation <JAIR.BO> is the leading manufacturer of Micro-Irrigation Systems (MIS) in
India with a market share of 50% in drip and 35% in sprinkler irrigation. Management expects
the company to retain these market shares going forward and benefit from the rising
implementation of MIS. It expects the micro-irrigation business to be the key growth driver
and account for more than 50% of the company's revenue (by 2012) (from 40% currently).
According to management, a higher contribution from micro-irrigation would also boost
margins, as this is the most profitable segment (EBITDA margins of 25–30%).
6.11.10 Singapore
Market Size & Growth
Due to Singapore’s limited market size, Singapore serves as a testbed for the region and is the
regional headquarters for a number of wastewater companies.
Drivers & Constraints
The Singapore Government committed US$219 million over five years to promote R&D to sustain
the Republic’s competitive edge in the global market, and to position Singapore as an R&D base
for environment and water solutions.
Singapore is home to over 50 water companies including major international players like GE
Water, Siemens Water, Nitto Denko, and Black &Veatch. Homegrown firms such as Hyflux,
Keppel and SemCorp have also set up water treatment plants in many overseas markets
including China and the Middle East. With the development of major national water projects such
as NEWater (recycled water), the Deep Tunnel Sewerage System (DTSS), desalination and
rainfall storage like the Marina Barrage, Singapore is becoming increasingly independent when it
comes to water. The aim of the Singapore Government is to increase value-added contribution
from the water sector from US$0.3 billion (0.3% of GDP) in 2003 to US$1.1 billion (0.6% of GDP)
by 2015.
Market Players & Competition
• Hyflux <HYFL.SI> develops and operates membrane-based water treatment, recycling,
waste water treatment and seawater desalination plants. The company has extended its
geographical footprint from China (38% of 2008 revenues) to the Middle East and North Africa
(MENA) (60% of 2008 revenues). Hyflux is looking to build on its success on RO desalination
plant wins in Algeria (200,000 m3/day at Souk Tleta and 500,000 m3/day at Magtaa) by
targeting further projects in MENA. In June 2009, the company signed a Memorandum of
Agreement with the commercial arm of the Libyan Ministry of Utilities to develop two
desalination plants with a combined capacity of 900,000 m3/day. For a detailed company
profile, see Appendix A.
Asia Pacific Clean Tech Handbook 320 of 348 31-May-10
• Sinomem Technology Limited <Unlisted> develops advanced membrane materials and
processes employed for water and wastewater treatment and environment-friendly production
processes in various industries, such as pharmaceutical, nutriceutical, food and beverage. It
operates in four divisions: membrane process and engineering, which is engaged in polymer
membranes manufacturing, membrane-based process and development, engineering design,
equipment fabrication, system integration, onsite installation and commissioning, and after-
sales technical support; nutraceutical production and trading, which is engaged in the
production of gibberellin, xanthan gum and sorbitol, and trading in nutraceutical products,
including vitamins; waste water treatment, which provides waste water treatment services to
the municipal and industrial users under build-operate-transfer or transfer-operate-transfer
arrangements, and trading of equipment, which is engagade in the trading of stainless steel
and glucose products.
6.11.11 Indonesia
Market Size & Growth
There is an estimate 55% coverage of wastewater in Indonesia, with no clear government policy to
increase this coverage. 49
Drivers & Constraints
The key pieces of legislation driving Indonesia’s wastewater treatment markets are:
49
Domestic Wastewater Services and Facilities in Indonesia: Policy and Regulation Role, Dwina Roosmini and Suphia Rahmawati
Asia Pacific Clean Tech Handbook 321 of 348 31-May-10
• Law 32 in 2004, devolves the responsibility of the domestic wastewater management to the
local government at provincial level as well as city level.
• Development of Institutional Based Water Supply and Environmental Sanitation (2004), by
National Development Board
• National Action Plan in Wastewater (2003), by Ministry of Public Work
Market Players & Competition
Japan, China and Korea dominate the machinery and equipment market. Local companies
control the construction services market.
6.11.12 Malaysia
Market Size & Growth
Malaysian imports of water and wastewater equipment in 2005 were around U.S. $878 million, an
increase of 7% compared to 2004. In 2005, the U.S. had the second largest market share of 20%
and its primary foreign competitor is Japan with a market share of 31%. A significant major
emerging competitor is China that has a 19% market share.
Over U.S. $395 million has been allocated for improvement of the sewage systems in the country.
Indah Water Konsortium (a wholly-owned company of the Ministry of Finance Inc.) is responsible
for providing technical expertise and project management to projects that cover refurbishment of
existing public sewerage treatment plants, public sewerage pipes network, pumping stations, and
central sludge facilities throughout the country.
Drivers & Constraints
The key pieces of legislation driving Malaysia’s wastewater treatment markets is the Sewerage
Services Act 1993
Market Players & Competition
• Gamuda <GAMU.KL> Water accounted for 12% of revenue in 2008. Gamuda should benefit
from the Malaysian government’s plans to increase infrastructure spending. The group holds
the concession for the largest water treatment plant (held by associate, SPLASH) in Malaysia,
but is finalising the sale of this asset for RM632m (31sen per Gamuda share) by end 2009.
Management has said it intends to return a substantial portion of the proceeds as special
dividends if the deal is successfully completed and the group could also realise a RM100m–
150m exceptional gain on the divestment.
6.11.13 Philippines
Market Size & Growth
The Philippine market for water and wastewater treatment products and equipment is projected to
grow 10-15% per year over the next three years, from about $73million in 2004 50.
50
US Commercial Service, Wasterwater Market in the Philippines
Asia Pacific Clean Tech Handbook 322 of 348 31-May-10
Drivers & Constraints
The Clean Water Act was enacted in 2004, with Implementing Rules and Regulations issued in
May 2005. Provisions of Clean Water Act that will open commercial opportunities include:
• Preparation of a National Program on Sewerage and Septage Management
• Mandatory connection to sewerage systems of all subdivisions, condominiums, commercial
centers, hotels, sports and recreational facilities, hospitals, market places, public buildings
and other similar establishments within five years following the enactment of the law
• Wastewater Charge covering all sources of wastewater discharges, including effluent from
wastewater treatment plants, sewage treatment plants and discharges from water treatment
facilities
• Discharge Permits that will be required from owners or operators of facilities that discharge
regulated effluents. As part of the permitting procedure, DENR encourages the adoption of
waste minimization and water treatment technologies when such technologies are deemed
cost effective.
• Creation of the National Water Quality Management Fund and Area Water Quality
Management Fund. The funds can be used to purchase equipment for water quality
monitoring, reporting or management.
• Fiscal and non-fiscal incentives to industrial wastewater treatment projects and/or adoption of
water pollution control technology, cleaner production and waste minimization.
Market Players & Competition
• Metropolitan Waterworks and Sewerage System (MWSS) has jurisdiction, supervision and
control over the waterworks and sewerage systems in Metro Manila and nearby cities.
• Manila Water Company (MWC) is responsible for the design and construction of North and
South Septage Treatment Plants and Facilities in Quezon City and Taguig City. These
projects are part of the International Bank for Reconstruction and Development/International
Development Assistance’s (IBRD/IDA) $64 million Manila Third Sewerage Project.
6.11.14 Thailand
Market Size & Growth
The current total market size for wastewater treatment is estimated at about $1.533 billion USD,
with an average growth rate of about 10% per year (government sector $613 million USD, private
sector $920 million USD). In general, construction and engineering services costs are 85% of the
project with the remaining 15% for equipment. Thus, the market for wastewater treatment
equipment is about $230 million USD. The wastewater treatment market is expected to continue
growing by an average of 10% for the next few years due to improved economic performances
from the real estate, industrial and agriculture sectors. The growth will be enhanced by the
Asia Pacific Clean Tech Handbook 323 of 348 31-May-10
government initiative to build the 3 largest water treatment plants in Bangkok and 15 medium
plants in other provinces.
The majority of the equipment used by the water and wastewater treatment sector is sourced
from Japan, Europe, ASEAN, the U.S. and China. Total imports of water and wastewater
treatment equipment in 2007 were an estimated $161 million USD. Japan had the largest market
share of 30.9%, followed by Europe (18.5%), ASEAN (10.6%), the U.S. (10.2%), China (14.4%),
and other (15.4%).
Wastewater treatment in Thailand is divided into two areas:
The government sector had provided a budget of about $2.6 million USD for 95 wastewater
treatment projects in Thailand for the last few years (7 projects in Bangkok with budget of $633
million, 1 project in Samutprakarn province with budget of $333 and 87 projects in other provinces
of $1.634 billion) The Bangkok Metropolitan Administrative (BMA), which looks after the
Bangkok capital, has three new projects to finish with in the next few years. The projects are in
Bangsue, Klongtoey,and Thonburi areas.
The Pollution Control Department of the Ministry of Natural Resource and Environment is
supervising and allocating the budget of $1.6 billion for 87 wastewater treatment projects in other
municipal areas. Presently, 75 projects were finished. Only 12 projects are under construction.
According to the Pollution Control Department, Thai government will provide a budget of $37
million for 3 new municipal wastewater treatment projects in 2008.
The market size for the private sector is about $920 million USD. Growth is driven by economic
performance and booming direct foreign investment, especially in export-oriented industries.
Drivers & Constraints
Under the “Enhancement and Conservation of National Environmental Quality Act 1992”, the
Pollution Control Department (PCD), the Office of Natural Resources and Environmental Policy
and Planning (ONEP) and the Department of Environmental Quality Promotion (DEQP) under the
Ministry of Natural Resources and Environment (MONRE) are responsible for wastewater
management by undertaking national and regional water quality management policy and planning,
raising public awareness concerning water conservation and facilitating local authorities for their
responsibilities of their own wastewater management.
Market Players & Competition
6.11.15 Australia
Market Size & Growth
Australia spends an estimated USD4.2 billion on the water and wastewater treatment sector.
Direct purchases of capital equipment accounts for 30% of total spending.
Drivers & Constraints
Total annual capital expenditure by the Australian water utilities has nearly tripled over the past
three years. Driven by a government-led program, total water and sewerage capital expenditure
is projected by the Construction Forecasting Council to increase a further 60% over the next nine
Asia Pacific Clean Tech Handbook 324 of 348 31-May-10
years. Southern Australia clearly has more of a problem with its water resource than with its
network; hence the construction of desalination and recycling plants is absorbing the bulk of the
capital expenditure.
Market Players & Competition
Water and wastewater treatment plants are operated by the regional government, such as Sydney Waster
and Melbourne Water
• Sydney Water aims to increase water recycling to 12% by 2015 and increase desalination
plants for NSW
• Melbourne Water Melbourne produces approximately 330,000 million litres of sewage a year
and Melbourne Water is responsible for the wastewater treatment
6.11.16 New Zealand
Market Size & Growth
• Approximately 1.5 billion litres of domestic wastewater is discharged into the environment daily 51.
Drivers & Constraints
The key pieces of legislation driving New Zealand’s wastewater treatment markets are:
• The New Zealand Waste Strategy includes a target requiring all substandard wastewater
treatment plants to be upgraded, closed or replaced by December 2020.
• The Ministry for the Environment partners with Water New Zealand to develop initiatives
which improve the country's environmental performance in the area of wastewater.
Market Players & Competition
New Zealand opened a wastewater algae to bio-crude oil demonstration project in 2009. The
project uses NIWA’s scientific expertise on advanced wastewater treatment and algal production
pond technology with Solray’s bio-crude oil conversion technology and is hosted by Christchurch
City Council at the Christchurch Wastewater Treatment Plant.
51
Ministry of the Environment
Asia Pacific Clean Tech Handbook 325 of 348 31-May-10
6.11.17 Summary of Companies
Code Company Name Market Cap PE Country Segment
(M Dollars) Ratio
Pan Asia Environmental Machinery &
0556.HK Protection Group Ltd $162.9 35.2 Hong Kong Engineering
Machinery &
6361.T EBARA CORP $2,168.2 N/A Japan Engineering
Machinery &
6370.T Kurita Water Industries Ltd $3,633.7 19.7 Japan Engineering
TSURUMI
MANUFACTURING CO Machinery &
6351.T LTD $182.8 26.6 Japan Engineering
China Boqi Environmental
Solutions Technology Energy Equipment &
1412.T (Holding) Co Ltd $81.4 N/A China Services
Misc. Materials &
6988.T NITTO DENKO CORP $6,871.8 15.0 Japan Commodities
6326.T KUBOTA CORP $11,695.4 32.1 Japan Metals - Steel
Machinery &
6403.Q SUIDO KIKO KAISHA LTD $36.9 N/A Japan Engineering
Misc. Materials &
JAIR.BO Jain Irrigation Systems Ltd $1,650.1 43.8 India Commodities
Business & Public
HYFL.SI Hyflux Ltd $1,324.2 70.7 Singapore Services
Source : Thomson Reuters
6.12 Waste
6.12.1 Background
This section will focus primarily on Municipal Solid Waste Incineration (MSWI) and Landfill
Gas (LFG) to generate power. Incineration, in the form of Waste-to-Energy (WTE) is making a
comeback, as costs for landfilling and power generation increase, outweighs the potential
environmental risks of releasing contaminants into the air. This is particularly relevant in Northern
Asia (China, Japan, Korea and Taiwan), as urbanization combines the increase in Municipal
Waste with the lack of space for disposal. MSWI has not been adopted in India and SE Asia, as
both economics and climate do not favour incineration over other alternatives.
Other options include introducing MSW into the wastewater stream to produce biogas, which is
covered in Section 6.11.
6.12.2 Targets & Incentives
• China - The Ministry of Construction aims to raise the share of China’s incinerated MSW
from around 1% in 2002 to 30% by 2030. There are currently only 19 MSWI in China
Asia Pacific Clean Tech Handbook 326 of 348 31-May-10
• Japan has over a 70% rate of incineration of MSW and has the highest rate of major
economies (excluding Singapore) and has over 1,700 MSWI in operation.
• South Korea is renewing its policy towards WTE projects and is in the process of setting up
“Energy and Environment towns” to increase incineration rate to 77% by 2013.
• Taiwan has 21 MSWI in operation and processes around 7.7 milion tonners per year.
• India does not focus on MSWI, due to high cost and suitability of Indian MSW for incineration.
• Singapore has the highest rate of incineration in APR, incinerating 90% of its MSW.
• South East Asia has not embraced MSWI due to high cost and suitability of MSW for
incineration
• New Zealand does not have any MSWI, due to issues with environemtal concerns on release
of airbourne contaminants
Total MSWI and capacity
Country Number of Capacity Number of Proposed
Proposed MSWI
MSWI in (MW) Capacity
operation
China 19
Japan 1717 1060MW
South Korea
Taiwan 21
India
Singapore 4 234MW
Indonesia
Malaysia
Philippines 0 0 0 0
Thailand 3
Australia
New Zealand 0 0 0 0
Source: Government Publication and Estimates
Asia Pacific Clean Tech Handbook 327 of 348 31-May-10
6.12.3 Waste Process
Figure 6.28 – Waste Disposal
Waste Source Disposal Bi-product End
MSW Collection Landfill Landfill Gas Heat and
Industrial Leachate Wastewater
Pre Process Grate Incineration Heat and
Pyrolysis
Hazardous Fluidised Bed Ash Landfill
Medical Rotary Kiln Syngas
Pyrolysis Oil
Incinerators
The incineration of rubbish has evolved in a number of different ways for different needs over the
past hundred years. Mass burn grate incinerators dominate the US and European markets for
WTE plants. However, they are not well suited to either smaller plants or the low-heat/high-
moisture rubbish found across most developing countries. Pyrolitic and fluidised bed incinerators
have moved in to fill up the gap. Pricey, but more efficient, rotary kiln furnaces are used to treat
hazardous and medical waste. The heat produced by an incinerator can be used to generate
steam, which is either used directly for heat or to drive a turbine to produce electricity.
• Grate incinerator technology. Grate incinerators dominate the Waste to Energy market in
most developed markets. They are suitable for burning MSW and industrial waste. Examples
of this technology are the “Martin grate” and “Dusseldorf grate”. A modification of this
technology is the Danish “Volund incineration” method where an additional rotary furnace is
added to the grate. Grate incinerators are the easiest type to scale, and new installations in
the US and Europe average up to 3,000 tonnes per day. When energy content falls below
6,000 kJ/kg, grate incinerators require additional fuel – either coal or oil, to keep the fire going.
This limits their usefulness in APR, where the moisture is higher than European and US
markets.
• Pyrolytic incinerator technology. Pyrolytic incinerators are favoured in developing APR, as
they do not require extra fuel except for ignition. They can be applied in both medical and
municipal waste areas. Waste remains in the pyrolytic incinerator for an extended period of
Asia Pacific Clean Tech Handbook 328 of 348 31-May-10
time to ensure full combustion. It controls burning in a static status devoid of oxygen and
reduces slag and fume discharge. The application of pyrolysis to waste management has
steadily gained acceptance along with other advanced waste-treatment technologies.
Pyrolysis can also be used as a form of thermal treatment to reduce waste volumes and
produce fuels in gaseous form (syngas), liquid form (pyrolysis oil) and ash. The gases are
burnt to produce heat, which is normally then used to make electricity. The ash is reused as
building material or sent to landfills. No extra heat or fuel source is required except for starting
the process. These systems are not as robust as grate incinerators for raw solid waste and
work better if the waste is pre-processed.
• Fluidised bed combustion. With this method of incineration, the grate is replaced by a bed
of limestone or sand. It is used by many Japanese combustion systems with small daily
capacities. China has also vigorously pursued this technology, with a local variety developed
by the Academy of Sciences and Zhejiang University. Fluidised bed combustion has proven
more suitable for the treatment of high moisture content of Chinese MSW, than foreign
developed technologies. It is more convenient to add auxiliary fuels such as coal or oil to
fluidised bed reactors, making them more amenable to the low-heat value of China’s waste.
They are also better suited to moist (organic) waste than grate incinerators.
• Rotary kiln incinerator technology. This is the most common choice for medical and solid
hazardous waste, particularly in APR. Chinese law mandates that most solid hazardous
waste be disposed of in rotary kiln incinerators. The waste is burnt in a rotating oven. It
features mechanical feeding, temperature controlled ignition, a high level of automation and
easy operation. Both global and domestic Chinese producers include advanced fume
processing equipment including fast-cool semi-dry acid separator, activated carbon powder
blowers, dust collection bags (to prevent secondary air pollution) and sludge drains.
Landfill Gas
Previously, Landfill Gas was seen as a pollutant and flared on site. In recent years, there has
been a move to convert this gas either into Natural Gas (through purification) or convert it to
energy.
6.12.4 China
Market Size & Growth
Total quantities of Municipal Solid Waste (MSW), Industrial Solid Waste (ISW), and
Hazardous Waste (HW) in 2002 were 136.5 million tons, 945 million tons, and 10 million tons,
respectively. In 2002, the quantity of MSW disposed of was 74.04 million tons, 89.30% of which
was landfilled, 3.72% was incinerated, and 6.98% was composted. There are currently 651
disposal facilities for MSW in China.
Asia Pacific Clean Tech Handbook 329 of 348 31-May-10
The number of MSW landfill sites (2000 to 2007)
Year 2000 2001 2002 2003 2004 2005 2006 2007
Landfill sites 484 571 528 457 444 365 324 366
landfill quantity(million 64.2 78.4 74.04 72.55 78.48 81.08 78.73 94.38
tons)
Source: China Urban Construction Design & Research Institute
Incinerators
China currently operates 19 municipal waste incinerators (MWI) with a total daily capacity of
approximately 7,000 tons (December 2002). This is about 2% of all the MSW being produced in
China. Most of these systems are grate technology.
Landfill Gas
Number Province Project Name Generator Other Start up
/City (kW) year
1 Zhejiang Tianziling 1940 1998
Landfill-Site
Hangzhou City
2 Guangdong Datianshan 3000 1999
Landfill-Site
Gaungzhou
3 Jiangsu Shuige Landfill- 2520 2002
Site Nanjing City
4 Shandong Xiaojianxi 500 m3/h Only Flare 2003
Landfill-site
Qingdao City
5 Shanxi Jiangcungou 3900 2003
Landfill-Ste Xian
City
6 Anhui Maanshan City 200 m3/h Flare And To 2004
Landfill Site Incinerate
Hospital Waste
7 Jiangsu Taohuashan 1940 2004
Landfill-Site
Wuxi City
8 Beijing Ashuwei Landfill- 2700 Flare Only In 2004/2007
Site 2004
9 Beijing Beishengshu 1000 2004
Landfill-Site
10 Guangdong Xingfeng 2000 2004
Landfill-Site
Guangzhou City
11 Hunan Qiaoyi Landfill 2100 2005
Changsha City
12 Hubei Erfeishan 1200 2005
Landfill-Site
Asia Pacific Clean Tech Handbook 330 of 348 31-May-10
13 Beijing Anding Landfill 750 m3/h To Evaporate 2005
Leachate
14 Jiangsu Tianjinwa 1030 2005 14
Landfill-Site
Nanjing City
15 Shandong Weihai City 800 m3/h Only Flare
Landfill-Site
16 Shandong Jinan Landfill- 1400 2006
Site Jinan City
17 Liaoning Yangeryue 500 m3/h To Truck Fuel 2007
Landfill-Site
Anshan City
18 Guangdong Shenzhen 3500 Also to Truck 2007
Xiaping Landfill- Fuel
Site Shenzhen
City
19 Anhui Liuan City 200 m3/h Only Flare 2007
Landfill-Site
20 Jiangsu Huaian City 200 m3/h Only Flare 2007
Landfill-Site
21 Beijing Liulitun Landfill- 800 m3/h Only Flare 2007
Site
22 Beijing Gaoantun 1500 m3/h Flare 2007
Landfill-site
23 Zhejiang Ningbo Landfill- 200 m3/h Only Flare 2007
Site
24 Jiangxi Maiyuan Landfill- 4500 2008
Site Nanchang
City
25 Fujian Hongmiaoling 2000 2008
Landfill Fuzhou
City
26 Tianjin Shuangkou 1380 2008
Landfill-
siteTianjin City
27 Liaoning Laohuchong 2000 2008
Shenyang City
28 Shanghai Laogang 2500 2008
Landfill-Cite
Source: China Urban Construction Design & Research Institute
Drivers & Constraints
According to the Standard for Pollution Control on the Landfill Site of MSW (GB16889-2008),
the LFG recovery facilities and flare should be installed when the landfill design capacity are more
than 2.5 millions ton and the landfill body depth are more than 20 metres ,and for small scale
landfill the flare or measures to reduce methane emissions should be also used.
Asia Pacific Clean Tech Handbook 331 of 348 31-May-10
Incinerators
China has incinerators in cities like Shenzhen and Leshan. The Shenzhen incinerator was
purchased second-hand from Hong Kong, which decided it could not be retrofitted to meet anti-
pollution standards. However, it has also proven too expensive for Shenzhen to run. Nevertheless,
Beihai, Shenyang, Guangzhou, Beijing and Shanghai have all begun constructing pilot plants with
foreign assistance. Although the MSW is still not that suitable for incineration, it is quickly
improving, and engineers want to gain operational knowledge for the future.
Landfill Gas
Regarding biogas generation from MSW the authorities will give a high priority to landfill gas
recovery CDM projects, especially for landfills closing soon, and which will produce high gas
yields, before there is large scale recycling to remove the landfill gas creating organic materials.
Their aim is to follow the success in many industrialised countries which routinely utilize the
energy from landfill gas. Energy from waste schemes form part of the 2020 overall biomass
electrification target of 30 GW.
Market Players & Competition
• Zhong Hui <Unlisted> Zhong Hui is a Singapore-based investment holding company. Its
wholly owned subsidiaries include Zhonghui Environmental Conservation, an investment
holding company engaged ain the provision of management services, and Shaanxi Zhonghui
Environmental Conservation (SZECC), which is engaged in the design, sale, research,
installation and construction of integrated domestic treatment systems. On 29 December
2006, the company announced that Shaanxi Zhonghui Environmental Conservation had
entered into a framework agreement with Guang Tai Industry (Guang Tai) and its
shareholders for the acquisition of a 51% interest in Baoji Zhong Cheng Machine Tooling
(Baoji ZC Group) from Guang Tai and its existing shareholders. In January 2006, SZECC
entered into an agreement with Linfen City Construction Bureau to build, install and operate a
1,200t/day solid waste incineration plant.
• Eguard Resources Development <000826.SS> Eguard Resources Development, a
Chinese company established in 1993, invests in and develops urban water supply and
wastewater treatment. It is also involved in the design, construction and integration of solid-
waste treatment equipment, as well as the provision of related technical services. The
company's major businesses include civil waste water-treatment, tapwater supply, solid-waste
treatment and the provision of related technology services, as well as solid-waste-treatment
system and equipment integration. The company is headquartered in Yichang, Hubei
Province, China. As of end-2006, it had five major subsidiaries/associates.
• Shenzhen Dongjiang Environmental <8230.HK> Shenzhen Dongjiang Environmental is
engaged in the processing and sale of recycled products, the provision of waste-treatment
services, the trading of chemical products, the construction of environmental-protection
systems and consultancy. Its recycled products and waste-treatment services segment
produces and sells recycled products, and provides waste-collection and treatment services.
The environmental-protection systems segment engages in construction contract work as a
main contractor or subcontractor, primarily in respect to environmental-protection systems. In
Asia Pacific Clean Tech Handbook 332 of 348 31-May-10
addition to the consultancy segment, the trading segment handles sales of chemical products.
Last year, it acquired a 40.2% interest in Shenzhen Huizhou Dongjiang Environmental
Technologies.
6.12.5 Japan
Market Size & Growth
According to the Japan MOE 2004 Report, the remaining capacity of the final disposal sites is
152.61 million m3 and the remaining life time is less than 6 years.
Incineration
There are 1717 combustion plants in Japan of total capacity of 193,000 tons per day; of these,
1130 plants (64.2%) are Waste-to-Energy (WTE) plants and 215 plants (12.5%) generate a total
of 1060 MW. Approximately 75 % of the gross amount of MSW that Japan generates annually is
incinerated providing an estimated 2.5 million kW of electricity with an aimed 4 million kW is
expected for generation in 2010.
Landfill Gas
In 2002, the volume of landfilled MSW and industrial wastes are 9 million metric tons and 40
million metric tons, respectively. Methane emission source is organic wastes composed of food
waste, paper waste, waste textile and woodchip. The volume of methane emission from landfill
sites is 3.7 million metric tons (CO2 equivalent) in 2002.
Drivers & Constraints
In order to tackle the challenges normally encountered by waste generation in Japan, “integrated
waste management” the 3Rs method (Reduce, Reuse, and Recycle) is employed as the best and
most preferable ways to address solid waste and the treatment of waste is usually performed
based on the "Waste Disposal and Public Cleansing Law."(MOE, 2008).
LFG recovery is not common in Japan, because organic wastes are usually reduced through mid-
disposal such as incineration.
Market Players & Competition
• Hitachi Zosen <7004.T> Hitachi Zosen is a Japan-based manufacturer engaged in four
business segments. The environment and plant segment produces refuse-incineration plants,
industrial-waste-treatment plants, biomass-energy systems, water and sludge-treatment
plants and others. The machinery and processing machinery segment supplies iron-making,
forging, wind-driven, food processing, pharmaceutical, plastic-processing, and precision
machines, and power-generating units. The steel and construction segment supplies bridges,
doors for water gates, steel chimneys, steel pipes, marine engineering equipment, shield
machines and civil-engineering equipment. The others segment provides electronic and
control, high-accuracy-positioning and disaster-prevention systems, and is engaged in the
wholesale of electric power. Headquartered in Osaka, the company has 83 subsidiaries and
15 associated companies. For a detailed company profile, see Appendix A.
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• Tsukishima Kikai <6332.T> Tsukishima Kikai is a Japan-based plant engineering company.
Along with its subsidiaries and associated companies, the company has two business
segments. The water environment segment is engaged in the operation, management and
repair of singular machinery such as water-filter plants, sewerage-treatment plants, spinning
dryers, dryers and incinerators, as well as water-filter and sewage-treatment facilities. Its
industrial segment is engaged in the general- and industrial-waste treatment for singular
machinery, such as food-manufacturing plants, chemical plants, biomassethanol plants,
vacuum-technology-applied plants, dryers, separators, and gas holders, as well as liquid-
waste-disposal facilities and solid-waste-disposal facilities, among others. Headquartered in
Tokyo, Tsukishima Kikai has 12 subsidiaries and two associated companies. For a detailed
company profile, see Appendix A.
• Takuma <6013.T> is a Japan-based manufacturing company. The Company has four
business segments. The Domestic Environment Energy segment is engaged in the design,
construction, sale, operation and maintenance of general waste treatment plants, resource
recovery plants, sewage disposal plants, sludge incineration plants, biomass electric
generation plants and generation gas turbine systems. This segment is also involved in the
waste treatment business. The Overseas Environment and Energy segment provides waste
power generation plants and biomass power generation plants. The Civilian Heat Energy
segment offers miniature through-flow boilers and vacuum hot-water supply heaters. The
Others segment is involved in the sale and maintenance of impregnating equipment, air
conditioning facilities and facilities for semiconductor industry.
Asia Pacific Clean Tech Handbook 334 of 348 31-May-10
6.12.6 South Korea
Market Size & Growth
In October 2008, as a part of the method to achieve the national vision of "Low Carbon, Green
Growth," the ministry of environment announced "Waste Resources and Biomass Energy
Utilization Initiatives", and has strived to establish a wide range of measures with the
publication of the implemented road map in July 2009. As part of the plan it proposes to increase
energy collection rates to 77% of residual thermal energy from incinerators and 91% of landfill
gas from waste landfill sites by 2013.
Incineration
As of 2007, the amounts of combustible wastes and organic wastes accounted for about 3.84
million tons and 7.85 million tons per year, respectively. However, only 1.5% (58,000 tons/year) of
combustible waste, and 2% (160,000 tons/year) of organic waste were utilized as energy
resources. In an effort to facilitate waste to energy policy, the ministry aims to achieve energy
utilization of combustible waste (by 47% or 1.82 million tons/year) and of organic waste (by 26%
or 2.04 million tons/year) by 2013.
Landfill Gas
There are 238 landfill sites in operation, with 17 LFG projects installed in Korea, generating
capacity of just over 80 MW.
Drivers & Constraints
The Government is in the process of improving its Waste to Energy Legislation, in an effort to
increase the contribution of Waste to Energy projects.
In addition, with the ban of ocean dumping of organic waste starting 2012, the MOE as part of its
sewage sludge to energy strategy plans to expand the provisions regarding the use and method
of waste utilization in the Waste Control Act, so as to allow coal power plants to use sewage
sludge as fuel.
The MOE is conductinga feasibility study in the establishment of 6 “Environmental and Energy
towns” in: Gangwon & North Chungcheong province (Wonju), Jeju province (Jeju Special Self-
Governing Province), Daejeon & South Chungcheong province (Daejeon), Daegu & North
Gyeongsang province (Daegu), and Gwangju & North Jeolla province (Gwangju).
Market Players & Competition
• Insun Environmental New Technology Co. < Unlisted> is a Korea-based company
engaged in environmental engineering. Its technologies prevent the dilapidation of natural
land and promote the conservation of natural resources by regenerating construction waste
and removing pollution sources. The Company's principal activities include intermediate
treatment of construction waste, reclamation and incineration of waste, as well as the
demolition of scaffoldings and structures. It also produces regenerated aggregates from
treated construction waste.
Asia Pacific Clean Tech Handbook 335 of 348 31-May-10
• Daewoo Engineering & Construction. Hitachi Zosen Corporation worked with Daewoo for
the construction of a stoker-type incinerator (2 furnaces at 100 tons per day totaling 200 tons
per day) for Ikusan City in Korea.
• Korea Power Engineering Company, Inc. (KOPEC) and SCS Engineers (SCS) constructed
a 50MW LFG project at the Sudokwon Landfill
6.12.7 Taiwan
Market Size & Growth
Incineration
There are 21 municipal solid waste incinerators (MSWI) with a total yearly treatment capacity of
7.72 million tons in service in Taiwan.
Landfill Gas
Taiwan disposes of 35,379 tonnes of MSW daily in local landfills.
Drivers & Constraints
Since 1990, the Environmental Protection Administration (EPA) created a series of MSWI
construction projects to build one incinerator for each city or county to address the waste
problems in Taiwan.
Market Players & Competition
• China Ecotek <1535.TW> China Ecotek, headquartered in Taiwan, is engaged in
environment-protection and mechanical-engineering projects, while also operating recycling
factories and machinery maintenance. The company's businesses also include biochemical
medicine plant construction projects, power-plant installation and maintenance projects. Last
year, mechanical-engineering projects accounted for 48% of total revenue, followed by
recycling factories and machinery maintenance (29%) and environment-protection projects
(20%). The company distributes its products to southern, central, northern and eastern
Taiwan. As of end-2006, the company had three wholly-owned subsidiaries, including CEC
International and CEC Development.
• SINO Environmental Services Corp <Unlisted> is a subsidiary of CTCI Corp. The main
business focus is on the refuse incineration plant’s operation and maintenance project which
is the extension of the incineration EPC project of the mother company. It has won the refuse
plants operation contracts of Hsintien, Shulin, Taoyuan, Maoli, Houli, Wuzu, Keelung, Tainan,
and Tainan Science Park. The service capacity of SESC is summed up to 6,900 7,400 tons
per day which represents 44% of the privatization market share in Taiwan.
• Onyx Ta-Ho Environmental Services Co., Ltd <Unlisted> was established as a joint-
venture between Taiwan Cement Corporation (TCC) and Veolia Environmental Services and
provides integrated waste management services for both local authorities and industrials.
With its two subsidiaries - Onyx Ta-Ho Waste Clearance Co. and Onyx Ta-Ho Energy
Recovery Co., Onyx Ta-Ho offers services such as waste incineration treatment, waste
Asia Pacific Clean Tech Handbook 336 of 348 31-May-10
collection and recycling, waste transfer, liquid industrial waste treatment, fly ash treatment,
drainage cleaning and MARPOL oil treatment.
• Taiwan Sugar Corp <Unlisted> has established an industrial safety and environmental
protection department. At present, the operation includes an Examination and Analysis
Center, two Municipal Waste Incineration Plants (in Gangshan and in Kanding), and several
waste landfill sites, with which it created about NT$500,000,000 of revenue per year.
6.12.8 India
Market Size & Growth
In India, most MSW are still disposed of in open sites, with little management or prospects for
incineration or LFG. There are a number of pilot projects
• Vijayawada, launched a WTE plant to generate electricity from MSW. This was the first plant
in the country to be set up with financial assistance from the United Nations Development
Programme (UNDP) and the MNES. The capacity o the power plant is 6 MW and is aimed to
process 500 MT of MSW per day.
• The cities of Hyderabad and Secundrabad producing around 2200 MT of waste every day
Setup a WTE plant in 1999 based on the RDF Technology (IPE, 2006). Located next to the
Ganghamguda municipal land dump (20 acres), which receives 1300 MT of garbage every
day from Hyderabad city. It was set up by the Andhra Pradesh Technology Development &
Promotion Centre (APTDC) and Selco International Ltd.
Incineration
Due to the high capital cost for MSWI, there is not a policy in place to use incinerators in India. In
addition, it is thought that Indian MSW is not suitable for Incineration.
Landfill Gas
There are a number of CDM projects using LFG gas to generate carbon credits in India.
Drivers & Constraints
The key pieces of legislation driving India’s Waste Management markets are:
• Municipal Solid Waste (MSW) Management Rules 2000, which came into effect from
January 2004
• In addition, there are Municipal Corporation Acts by different states such as the Delhi
Municipal Corporation Act 1959, Uttar PradeshMunicipal Corporation Act 1959 and
Karnataka Municipal Corporation Act 1976.
Market Players & Competition
• Selco International Ltd <Unlisted> SELCO International Limited is a Public Limited
Company and the core business focus is energy recovery from Municipal Solid Waste (MSW)
Management in India.
Asia Pacific Clean Tech Handbook 337 of 348 31-May-10
6.12.9 Singapore
Market Size & Growth
Incineration
Singapore incinerates 90% of its Municipal Solid Waste through 4 incineration plants and
generates roughly 980 kWh of energy, supplying roughly 2% of Singapore’s electricity demand.
Plant Capacity Comment
Ulu Pandan 16MW Closed in August 2009
Senoko 56MW Acquired by Keppel
Tuas 46MW
Tuas South 132MW
Total 234MW
Source: Waste Management Department, NEA
Drivers & Constraints
The key pieces of legislation driving Singapore’s Waste Management markets are:
• The law on waste is contained in the Environmental Public Health Act (EPHA) and its
subsidiary laws, including the regulations relating to General Waste Collection and Toxic
Industrial Waste.
Market Players & Competition
• Keppel Seghers <Unlisted> , a unit of Singapore's Keppel Integrated Engineering, has
secured a USD 12.5m contract to provide technology to a waste-to-energy plant in
Guanzhuang, Tianjin. The contract, is for the expansion of an existing 17MW plant that was
commissioned in 2008. When commissioned in 2012, the project is expected to consume
1,000 tonnes of municipal waste per day. It is the third waste-to-energy contract that Keppel
has announced this year. Keppel said that it currently takes up 60% of the market share of
Chinese imported waste-to-energy solutions.
• Sembcorp Environment Pte. Ltd. <Unlisted> is a wholly owned subsidiary of SembCorp
Industries Ltd. and has developed waste to energy projects across Asia under CDM.
6.12.10 Indonesia
Market Size & Growth
Surabaya, Indonesia has an imported incinerator that can only operate at two-thirds of its
designed capacity, because the waste needs to be dried onsite for five days so it will burn. Even
without air pollution control mechanisms, the cost of incinerating the waste in this instance is
roughly ten times greater than the cost of sanitary landfilling in other Indonesian cities. In addition,
there are a number of new Waste to Energy projects that are funded by CDM credits.
Asia Pacific Clean Tech Handbook 338 of 348 31-May-10
Waste to Energy Projects
• PT. Bioenergi Surya Persada & YCBI, Malang: MSW to Energy 17,000 T/Year
• PT. Bioenergi Surya Persada & YCBI, Surabaya: MSW to Energy 30,000 T/Year
• PT. Navigat Organik Energi Indonesia, Bali: MSW to Energy 2 x 10 MW:500,000 T/Year
Drivers & Constraints
National Regulation regarding to Municipal Waste Management has not been set up
Market Players & Competition
• Navigat Organic Energi Indonesia <Unlisted> has constructed a “GALFAD® (GAsification,
LandFill gas and Anaerobic Digestion)” plant at the TPA Suwung1 landfill site in Bali, which
will treat and recover energy from MSW.
• PT Asia Biogas Indonesia is a subsidiary of Asia BioGas Company, the largest biogas
systems developer and operator in SE Asia.
6.12.11 Malaysia
Market Size & Growth
Disposal of solid waste is done almost solely through landfill method. There are about 177
disposal sites in Peninsular Malaysia. In most cases, open dumping is being practised and takes
place at about 50% of the total landfills.
Incineration
The government had also spent RM17million to purchase 7 mini-incinerators with a capacity of 5
to 20 ton/day to be operated in the resort islands in Langkawi, Labuan, Tioman and Pangkor.
Landfill Gas
Drivers & Constraints
The key pieces of legislation driving Malaysia’s Waste Management market is the Solid Waste
and Public Cleansing Management Bill 2007.
Market Players & Competition
• CMTS Van Sommeren International <Unlisted> provides MSW recycling technologies.
Technology include the supply of turnkey incineration plants to treat hospital waste with plant
size ranging from 10 to 50 tons per day, tunnel composting of green waste, SDF power plant
for electricity generation
Asia Pacific Clean Tech Handbook 339 of 348 31-May-10
6.12.12 Philippines
Market Size & Growth
Incineration
There are no MSWI in the Philippines
Landfill Gas
There are around 15 LFG projects in the Philippines.
Drivers & Constraints
The Philippines has banned incineration, as part of the Clean Air Act, which has put restrictions
on incineration. Landfill Gas Projects have been driven by CDM credits, with a number of projects
approved in the Philippines.
Market Players & Competition
• Philippine Bio Sciences Company, Inc. (PhilBIO) <Unlisted> is the largest biogas
engineering company in the Philippines, with more than 35 Biogas Energy Plant digesters
successfully installed.
• Reclaim Resources Limited <Unlisted> has signed a £12 million contract with a local
authority in the Philippines to supply and install its ‘clean’ Vantage Waste Processor (VWP)
that transforms MSW into biomass before converting it into a range of energy resources,
including electricity and bio-ethanol.
6.12.13 Thailand
Market Size & Growth
MSW in Thailand has increased steadily during the last decade. About 38,000 ton/day of refuse
was collected across the country in 2002.
In 2004 there were 425 disposal sites (95 landfills; 330 open dumps) in Thailand and an
estimated methane emission of 115.4 Gg/year was generated based on this practice. It has been
estimated that the anticipated methane emission in Thailand will rise from 115.4 Gg/year to
118.5 Gg/year if the largest open dumpsites in provinces with no existing landfill are upgraded to
sanitary landfill; and it will increase to 193.5 Gg/year if the existing sanitary landfill is upgraded to
integrated waste management facilities.
Incineration
There are currently only 3 MSWI in Thailand.
Landfill Gas
There are about 10 potential LFG projects in Thailand, with a potential of 18MW in power
generation capacity, The largest two projects are Kampangsean and Ratchathewa Landfills.
Asia Pacific Clean Tech Handbook 340 of 348 31-May-10
Drivers & Constraints
MSW Management falls under the local municipal government.The key pieces of legislation
driving Thailand’s Waste Management markets are:
• Public Health Act. B.E.2535 (1992)
• Enhancement and Conservation of National Environmental Quality Act. B.E.2535 (1992)
• Municipality Act. B.E.2496 (1953)
Market Players & Competition
• CleanTHAI <Unlisted> develops waste-to-energy biogas projects. CleanTHAI’s portfolio of
biogas plants include Thailand’s largest Biogas Energy Plant, the Korat Waste to Energy
Plant, and one of Thailand’s largest ethanol plants, Thai Agro Energy.
6.12.14 Australia
Market Size & Growth
Incineration
Landfill Gas
There are 37 LFG power generation projects (around 9 % of total renewable energy generators),
with a combined capacity of approximately 105 MW. In 2001/2002, LFG projects contributed 416
gigawatt hours (GWh) of electricity generation.
The largest operational LFG installation at 13 MW capacity, is the Energy Developments Limited
<ENE.AX>, Lucas Heights II Landfill Gas Plant at Lucas Heights in New South Wales, 23
kilometres south west of Sydney. A larger LFG generator is under construction – a bioreactor
located in a disused open-cut mine located at Woodlawn NSW (250 km south-west of Sydney). It
will receive up to 500,000 tonnes of residual waste per annum, and the generation capacity will
be 25 MW via gas turbines.
Drivers & Constraints
The key pieces of legislation driving Australia’s Waste Management markets are:
• The Health Act 1911 is the primary Act dealing with all matters relating to public health,
includes many aspects of municipal waste management.
• There are additional State legislation, such as Western Australia’s Waste Avoidance and
Resource Recovery (WARR) Bill
Market Players & Competition
• Energy Developments Limited <ENE.AX> is engaged in the development and operation of
power generation projects that includes the use of MSW and Landfill Gas to generate
electricity.
Asia Pacific Clean Tech Handbook 341 of 348 31-May-10
• Anaeco <ANQ.AX> The Company’s principal business activity is the development and
commercialization of a process for the treatment of organic municipal solid waste (DiCOM
System).
6.12.15 New Zealand
Market Size & Growth
Incineration
New Zealand does not have any MSW Incinerators.
Landfill Gas
There are around 100 landfills in New Zealand, with some LFG to energy projects in operation.
Drivers & Constraints
The key piece of legislation driving New Zealand’s Waste Management markets is the Waste
Minimisation Act provides a levy on landfill waste, mandatory waste reporting, clarifies the role
of territorial authorities with respect to waste minimisation, and sets up a Waste Advisory Board.
Market Players & Competition
• Waste Solutions Ltd designs Anaerobic Digestion (AD) facilities for over 30 years.
• Envirowaste was the first operator in New Zealand to generate electricity from methane gas
produced by waste in landfills. The landfill gas to energy (LFGTE) plants operated by
Asia Pacific Clean Tech Handbook 342 of 348 31-May-10
EnviroWaste at Greenmount and Rosedale landfills in Auckland produce a peak of 10MW of
electricity
6.12.16 Summary of Companies
Code Company Name Market Cap PE Country Segment
(M Dollars) Ratio
Shenzhen Dongjiang Business & Public
8230.HK Environmental Co Ltd $392.0 53.2 China Services
Machinery &
7004.T Hitachi Zosen Corp $1,199.4 8.3 Japan Engineering
TSUKISHIMA KIKAI CO Machinery &
6332.T LTD $310.8 N/A Japan Engineering
Machinery &
1535.TW China Ecotek Corp $160.7 13.8 Taiwan Engineering
Utilities-Electrical &
ENE.AX Energy Developments Ltd $348.5 30.8 Australia Gas
ANQ.AX AnaeCo Ltd $33.3 N/A Australia Energy Sources
Unlitsted Zhong Hui N/A N/A China Incineration
Unlisted Keppel Seghers N/A N/A Singapore Waste Handling
Sembcorp Environment
Unlisted Pte. Ltd. N/A N/A Singapore Waste Handling
CMTS Van Sommeren
Unlisted International N/A N/A Malaysia Incineration
Philippine Bio Sciences
Unlisted Company N/A N/A Philippines LFG
Shenzhen Dongjiang Business & Public
8230.HK Environmental Co Ltd $392.0 53.2 China Services
Source: Thomson Reuters
Asia Pacific Clean Tech Handbook 343 of 348 31-May-10
7 SUMMARY OF KEY OPPORTUNITIES
7.1 Integration of Government Policy and Industry
APR economies are suited to Clean Technology, in terms of integrating government policy with
industry. Japan, South Korea and China have institutionalized this process by selecting key
industrial sectors for the economy and working at building up first the domestic industry, through
government incentives and protectionism that will grow and then export and compete on the
global markets, through high quality and low cost.
China has already taken the lead in the PV Solar and Wind markets, in the space of 2 to 3 years
and is expected to dominate these markets.
This ‘statement of intent’ is further re-enforced by the level of investment, R&D and patent filings
that China, Japan, South Korea and Taiwan have filed in key sectors of solar, wind and water
sectors to protect it investment.
This is also backed up by aggressive Renewable Energy Targets, Feed in Tariffs and cheap
finance to promote the development of a domestic industry, particularly in PV Solar and Wind.
Figure 7.1 – Key Sectors
PV Solar
S Korea
Wind
Government
Water Japan
Policy lead
Waste
China PV Thin Film
Taiwan
India Wave/Tidal
Geothermal
SE Asia Australia
CCS
Biofuel
Laissez - NZ
Biomass
Faire
Commoditised Differentiated
Asia Pacific Clean Tech Handbook 344 of 348 31-May-10
7.2 Infrastructure
Most of investment in Clean Technology in Developing countries in APR is focused on large scale
infrastructure projects, such as Hydro, Nuclear and Biomass co-generation projects, rather than
small scale projects. Unlike the US and Europe, the APR is installing new infrastructure.
These projects will have the largest impact on Renewable Energy Targets, with Hydro (accouting
for 14%) and Nuclear (8-9%) the two largest sectors. Wastewater and Waste to Energy and
Biomass Projects also fall in this category.
Hydro
China Yangtze <600900.SS> and China Power International <2380.HK> are Chinese Utilities that
have large exposure to Hydro. China Yangtze operates the Three Gorges Dam, which is the
largest Hydro project globally. Other Hydro Utilities include: National Hydroelectirc Power
Corporation <NHPC.BO> in India and EDC <EDC.PS> and Aboitiz <AS.PS> in the Philippines.
Nuclear
Japan, China, South Korea and India have embraced Nuclear Power and have all these countries
have embarked on ambitious nuclear power programs. South Korea will have the the highest
nuclear power contribution to its power generation mix, while China will have the largest capacity
by 2030.
Key companies involved in Nuclear power include: China National Nuclear Corporation (CNNC),
Korea Nuclear Hydro Power (KNHP), GE Hitachi, Westinghouse Toshiba, Nuclear Power
Corporation of India (NPCIL). All companies are unlisted and controlled by government agencies.
Asia Pacific Clean Tech Handbook 345 of 348 31-May-10
The only listed companies are Uranium mines in Australia, that include: Paladin <PDN.AX> and
Energy Metals <ENE.AX>.
Biomass
Biomass and cogeneration is a large contributor to renewable energy targets in China, India and
South East Asia and all countries plan to use agricultural waste as feedstock. Key companies in
this space include: National Bio Energy Limited in China and All Green energy in India.
7.3 Commoditised Sectors
Wind and PV Solar have become commoditised and those countries that have high quality
manufacturing and can reduce marginal costs will be those that compete. As with the electronics
industry and heavy manufacturing – countries like Japan, Korea and Taiwan will be able to
differentiate, through their high level of R&D and high quality manufacturing. China will be the
main beneficiary of this commoditization, as it assimilates the technology and builds up its own
domestic industry and look to expand globally.
Wind
China dominates this sector, around 70 companies set up in China. Leading Chinese Companies
include: Xinhjiang Goldwind, Dongfang Electric and China High Speed Transmission. Suzlon is
the leading global wind manufacturer in Asia.
PV Solar
China, Japan, South Korea and Taiwan dominate the PV Solar sector. There are over 70
companies in China alone and China has a cost advantage over other countries and are leaders
in the Cell and Module Manufacturing. Japan and South Korea have concentrate on feedstock,
Asia Pacific Clean Tech Handbook 346 of 348 31-May-10
which is hard to manufacture and also focusing on PV thin film. Leading companies include
Suntech, Solargiga and Trina Solar in China. Japan has Tokyuyama and Osaka Titanium in the
feedstock space and Sharp, Kyocera in cell and module manufacturing.
7.4 Innovation
Beyond, Wind, Solar and Biomass, countries such as Australia and New Zealnd lead in new
sectors, such as Wave/Tidal, Geothermal and CCS.
Geothermal
Japanese companies still dominate the manufacturing of turbines, with companies such as Fuji
Electric and MHI. However, the domestic industry is small and most are exported to Philippines
and Indonesia.
EDC and Aboitiz in the Philippines are the leading Geothermal Utilities in the region. While
Australia leads the way in new ‘Hot Rock” geothermal technology, with around 9 companies listed
in the ASX.
Wave/Tidal
While still not commercially viable, Australia and New Zealand lead the way in Wave and Tidal
technologies in the region. Key companies include Carnegie Wave <CWE.AX>, Atlantis
Resources, Oceanlinx and Bio Power Systems.
Smart Grid
China, Japan, South Korea and Australia have set aside substantial investments to set up a
smart grid in their respective countries. China alone is expected to invest over $7 billion to
upgrade its infrastructure.
CCS
Even with aggressive new Renewable Targets, the region is still expected to generate over 70%
of its power from fossil fuels by 2030, primarily from coal. CCS is seen as a way to mitigate this
impact and most of the CCS projects are expected in APR by 2050.
Australia is the leader in CCS and has 15 projects underway, funded by the Coal Industry and
Government Agencies, such as CSIRO. Japan has formed a company called CCS Ltd, which is
consortium of utility companies.
7.5 Conclusions
The APR will be the largest Energy Market and Clean Technology Market in the world, by 2030.
Countries within the APR are already gearing up for the impact of Climate Change by setting
aggressive renewable targets. Clean Technology is seen as a growth industry that generates
jobs, while reducing carbon emissions and energy security in the process. What is surprising is
the speed of change, the emergence of organic innovation and the level of investment set aside
by governments to ensure that countries become world leaders in this space.
Asia Pacific Clean Tech Handbook 347 of 348 31-May-10
For APR, Clean Technology is simply building new power capacity to keep up with growth. The
largest contributors to renewable energy will be Hydro, followed by Nuclear Power. Renewable
Energy will only account for 4% of total power generation by 2030.
Even with all these proposed targets, power generated from fossil fuels will still account for over
70% of the power generation mix by 2030. Other mitigation measures, such as energy efficiency
will need to be included into projections to reduce the overall energy consumption in the APR.
This Handbook has focused primarily on renewable energy for power generation and focus on
energy effiicieny will need to be included in the next version of the Handbook.
Asia Pacific Clean Tech Handbook 348 of 348 31-May-10
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