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Contents
PURCHASING
cover
ASIA
India’s clean revolution
(See pages 10–22)
From the managing editor’s desk
5
Buy into a green future
7
OPPORTUNITIES
6
Miracle material scores on the cool quotient
6
Illustration by Chen Mun Hong © Green Purchasing Asia
Catch the wind, worship the sun Renewables now account for about 11% of India’s power mix. Wind power has reigned for almost two decades. It is now solar’s turn
It’s been called the miracle material of this century, and really, the superlatives for graphene just keep stacking up
More bite for green computing
8
Betting on batteries to rev up the EV business
9
“When is the future?” Bernd Bohr, chairman of Bosch Automotive Group, poses the billion dollar question on the EV industry
11
India’s clean revolution
12
Renewables fortunes: Farooq Abdullah on the journey so far
16
“A sustained GDP growth rate of around 8% over the next 20 years would require quadrupling our energy requirement.”
How India built its wind 18 and solar energy capacity
Major RE projects in the pipeline
19
Boom in green jobs
20
India’s RE performance in first quarter
21
Commuting with a smaller 22 carbon footprint
Smart grid demo puts new technology to test
24
Amazing chips to help electrify entire towns
25
•
Fastest electric Formula 1 launched (See page 61)
CASE STUDIES
26
Power to the homeowner 26 A look at Boulder Colorado, which is the site of the world’s first SmartGridCity experiment
Innovative financing pays 28 for Borneo biomass plants Keen eyes on Sharp eco house
29
Ballooning interest in first hydrogen town
30
Across the US on the power of a 100 W bulb
31
Malaysian banks reluctant to give out green tech loans
32
“Most banks do not have technical people who can evaluate business proposals involving new technologies”
•
33
46
Eco buildings a cornerstone of sustainable growth
47
INFORMATION
48
To each its own in water technology
48
Indonesia, Singapore and Malaysia face interestingly different challenges and opportunities with water
Hundred Trees garners 35 BCA Green Mark Platinum
PEOPLE
37
Aussie innovator peers into India’s solar future
37 Golden age of natural gas 50 in global energy mix
“Solar is the only very large renewable resource” Philip Connor
Cloudy days for sun power with Europe demand cut
53
EDITORIAL
39
The climes and times are a-changin’
39
Where’s your next meal coming from?
54
Hits and misses in ecolabel campaign for retailers, hotels
40
Local standards trigger certification spree
56
Eco-cities: Beware of hijackers
41
GBI devises a tool for industrial buildings
57
Jatropha curcas fuels renewed interest
42
Furniture industry rooting for eco standards
58
News briefs
60
Homework
64
Zolkifli Bidin
From municipal waste to wealth
Matching locavores and local farms
Plastic, paper or reusable 45 shopping bag?
The team Editorial Editor: Lim Siang Jin Managing editor: David Lee Boon Siew Assistant editor: Siaw Mei Li Contributing editors: Ann Teoh, Jason Tan Contributing writers: Eleanor Chen, Stephen Ng, Suvarna Beesetti, VK Shashikumar, Tejas Patel, Nidhi Bhardwaj Columnists: Dr Ning Yu, Dr Prasad Modak, Harsh Purohit, Khoo Hock Aun, Dr Goh Ban Lee Marketing & sales Manager: Yong Wang Ching +6012 205 7928 Sam Thong (Malaysia) +6012 361 0617 Lim Wan Tsau (Singapore) +65 9068 0184 Creative & design Khoo Kay Hong, Faye Phua Szeu Hwui Production & advertising traffic Eddy Yap Subscription & circulation Yap Eng Jin Finance & operations Kym Chong Corporate Managing director: Lim Siang Jin Publisher Briomedia Green Sdn Bhd (924679-H) 3-3 Jalan Solaris 2, Solaris Mont Kiara 50480 Kuala Lumpur, Malaysia Tel: +603 6203 7681 (Malaysia) Tel: +65 9068 0184 (Singapore) Fax: +603 6211 2681 Email: editor@greenpurchasingasia.com Printer KHL Printing Co Sdn Bhd (235060-A) Lot 10 & 12, Jalan Modal 23/2 Seksyen 23, Kawasan Miel Phase 8 40000 Shah Alam, Selangor, Malaysia Tel: +603 5541 3695 Fax: +603 5541 3712 © 2011: Briomedia Green Sdn Bhd Letters and articles are welcome, and should be addressed to: The Editor at Green Purchasing Asia 3-3 Jalan Solaris 3, Solaris Mont Kiara 50480 Kuala Lumpur, Malaysia Email: letters@greenpurchasingasia.com Endorsed by • Ministry of Energy, Green Technology and Water, Malaysia • International Green Purchasing Network
Disclaimer Briomedia Green Sdn Bhd (924679-H) believes that the information published at the time of printing is correct. The views expressed in the articles are not necessarily those of the publisher. While the publisher has taken reasonable care in compiling the magazine, it shall not be liable for any omission, error or inaccuracy. Editorial contributions are welcome but unsolicited materials are submitted at the sender’s risk. The publisher cannot accept responsibility for loss or damage. All rights reserved by Briomedia Green Sdn Bhd (924679-H). No part of this publication may be reproduced without the publisher’s written permission. Paper: Cover 180gsm Ningbo artcard PEFC; Text 80gsm Royal Express Silk PEFC/FSC
From the managing editor’s desk David Lee Boon Siew boonsiew@ greenpurchasingasia.com
Business people love to be first movers. They want the advantage that comes with being the initial significant occupant of a market segment. Like the adventurers of old, they plant their flags on their newfound territory, denoting control over resources. It’s not easy being a first mover, as one needs to be experienced enough to spot the underlying risks associated with that unexplored business segment and know where the revenue streams will come from and whether they will be enough to cover the risks. Pioneers will often seek government patronage to reduce the risks. If they are lucky, they get incentives to boot. History is littered with examples of first movers who now hog the Forbes List of Billionaires. Bill Gates is a classic case of someone who was at the right place at the right time. Google gave search engines a new name. Our cover this month is on India, an electricity-hungry country that is in some way a first mover. Some 15 years ago, the country bravely ventured into wind farms, although the technology was relatively unproven then. Nobody was sure if it would work, or whether it would be a foolish move. Benefits were dished out, and among those who benefitted was one Tulsi Tanti, who turned Suzlon into India’s biggest wind turbine manufacturer. Yes, Tulsi was a first mover in his country. And look what India has done for herself. In terms of wind power installed capacity, India is today ranked 5th in the world. Today, India is entering the solar energy sector with the same boldness that marked her entry into wind. Her National Solar Mission aims to add 1 GW of solar-powered electricity by 2013 under the first phase, and a total
of 20 GW of solar capacity by 2022. Those are huge targets, and so far, the implementation has been on schedule, which augurs well for the administration. India is an investors’ playground. An HSBC Global Research report pegs the investment opportunity in India’s low carbon goods and services market at US$134 billion. I’m sure there’ll soon emerge an Indian solar king. And perhaps even a biomass billionaire. Elsewhere in this issue, there are other examples of first-movers. In the race to find new commercial uses for graphene, dubbed the miracle material of this century, several multinationals like Samsung have pumped in huge research funds. IBM has created working 30GHz test devices using graphene transistors, and this seems to be where the research is heading first. There’s so much happening in graphene research that there would probably be several first movers in different applications. A French lab has also given notice that it is a first mover in developing an integrated computer chip that can manage the power grid of a whole town. Global power company ABB, which is part funding the research, has taken a patent on this technology to protect its potential turf. Over in Japan, the Fukuoka Prefecture claims to be the first to create a hydrogen town in Kitakyushu, using hydrogen waste generated by its steel plant for a fuel cell experiment. So, will we see more companies planting their flags in uncharted territory in the world of green technology? You bet. In the history of mankind, these are just early days.
Coming up next:
Malaysia on energy-efficiency drive •
opportunities
Miracle material scores on the cool quotient Self-cooling graphene could help cut energy costs Nitrogen doping in graphene boosts energy storage capacity
•
Future uses for graphene
It’s in electronics that graphene will do best. It has been used to create field effect transistors, the main component of a computer processor. At over 3GHz, silicon chips can melt without major cooling. Graphene equivalents could raise that limit considerably. Scenarios: • Data centres that take far less energy to keep cool • Your handphone having great computing power but not using more battery power • Ultrafast but smaller computers that can run complex tasks like language translation
It’s been called the miracle material of this century, and really, the superlatives for graphene just keep stacking up. They speak of its super strength, conductivity and self-cooling properties, and because of the media hype, there is great excitement over its potential in many different applications. Our nearest association with graphene would be the graphite pencils that we use in school. As we write, layers of graphite – or graphene – are deposited on the paper. It is basically an atom-thin wire-mesh of carbon that is bonded so strongly that, as one professor put it, “it would take an elephant, balanced on a pencil, to break through a sheet of graphene the thickness of cling film”. Graphene is also a great conductor of electricity – better than copper. What’s even better is the way it behaves when the “wire-mesh” is bent. The bending affects its electrical properties, changing how electricity flows through it. Add hydrogen to the mix and it creates graphene’s non-conductive cousin, graphane. Researchers can even mess around with the atom patterns to create superconducting wires. Since these properties were discovered, a lot of research money has been channeled around this material. A recent article stated that 200 companies were involved in research around graphene and last year, it was the subject of about 3,000 research papers. Breakthroughs will lead to devices that are thin, flexible and cheap, the very stuff that breaks new business frontiers. Samsung is one of the biggest investors in research, collaborating with South Korean Sungkyunkwan University to come up with a 25-inch flexible touchscreen using graphene. IBM and Nokia are also in on the action, the former having created a 150 gigahertz (GHz) transistor. By comparison, the quickest comparable silicon device runs at about 40 GHz.
• Robots that can interface with humans Graphene’s remarkable ability to keep its cool could make it the next darling of the electronics industry
Various research teams, including one at the University of Illinois, have also found graphene’s self-cooling properties extremely promising for use in computer devices that will be far less energy-intensive to keep cool. This could mean, for example, that data centres of the future may no longer have to be the energy guzzlers that they are today. Last month, scientists from the Korea Advanced Institute of Science and Technology (KAIST) declared that they had developed a new power storage technology using nitrogen and graphene that can enhance growth in next-generation electric cars and smart power grids. Engineering professor Choi Jung-wook, who led the team, said laboratory tests showed the new nitrogen-doped graphene supercapacitator could store twice the energy of conventional capacitators. The improvements were attributed to nitrogen doping, which is basically the introduction of impurities into a semiconductor to change its electrical properties, increasing power storage and output. Tests on the supercapacitator
showed no change in its capabilities even after the device was charged and discharged 230,000 times. Choi said the use of nitrogen in the graphene could allow such capacitators to be used in cars and conventional power grids. And because graphene is flexible, the application potential is enormous. The research was published in the latest online edition of the research journal Nano Letters. Some scientists, however, are cautious about expecting too much too soon from graphene, saying that more research needs to be done on realworld applications. However, because of the research dollars being pumped into graphene, things are moving really fast. Graphene is already being used in chip manufacturing processes. IBM has created working 30 GHz test devices using graphene transistors. When will it enter computers? Some pundits are saying as early as between next year and 2015.
Sources: BBC.com, hplusmagazine.com, Yonhap News Agency, TreeHugger.com
PURCHASING
ASIA
Buy into a green future Green Purchasing Asia’s main purpose is to provide a well-structured avenue of immediately-useful information to buyers and sellers of green products and services in major sectors, especially in Asia, and to buttress the development of a business community around it. The magazine will cover the following sectors, which have seen the greatest technological innovations and increasing economies of scale: • Renewable energy, including solar energy, wind power, geothermal and mobile applications • Biofuels from food and non-food sources, including palm oil, sugarcane corn and jatropha • Biomass from various organic, inorganic and mixed sources like oil palm, wood, sugar cane, corn and household waste • Green buildings and eco-cities covering, among others, green building certification programmes, environmentally sound building design and materials, retrofits, and resource-saving technology • Transportation, including plugin electric vehicles (EV), hybrid electric vehicles (HEV) and automobile alternatives like rail • Smart grids, which turn consumers into producers of energy, smart meters to track consumption and manage electrical flow and new interconnect standards
• Water and waste management, focusing on desalination technology, reverse osmosis and wastewater and solid waste management • Energy efficiency, whereby technologies, processes, materials and design work together to maximise quality of life and industry output at minimal energy cost • Green finance, viz, venture capital and bank loans, grant programmes (NGOs and government) and government incentives.
To help readers navigate the magazine easily, we have divided it into five broad areas, each assigned a weightage to ensure consistent and adequate editorial space allocation. • Opportunities: These include project announcements, tenders and new eco products and services. This will be a section heavy on actionable information. Weightage: 30% • Case studies: We focus on projects that use green technolo-
gy, like eco-cities, solar farms and waste recovery projects in large plantations. In these articles, we will list out the names and contacts of developers, suppliers and contractors involved in those projects for networking. Weightage: 30% • People: This section focuses on interviews with thought leaders and captains of industry in green businesses. We will also cover small and medium enterprises involved in trailblazing projects. Weightage: 15% • Editorials: Opinion pieces, columns and feature stories on climate change, sustainable development and other relevant subject matters are the meat of this section. It is designed to provoke debate, so that by talking about issues, we think of new ways and approaches to solving problems. Weightage: 15% • Information: This includes news digest, events calendar, letters, reviews of books and reports on climate change, green technology or related topics, market entry conditions and new country regulations, policies and incentives. Weightage: 10% Target readership The government’s role is not only to set the policy environment to drive the green agenda. It is also a massive market player in the economy, accounting for up to 30% of purchases. Any decision by governments to procure green will have a major influence on the market. It is this dual role that makes governments important customers, which is why we are targeting 40% of our print and online circulation at senior government servants. The remaining 60% will be aimed at the business community, international agencies and non-government organisations. ••
opportunities
More bite for green computing Joint venture between UCTI and GCI to help green offices World energy use to double by 2030 due to IT growth
By Stephen Ng
As the world pushes ahead with its green agenda, a private university based in Technology Park Malaysia, the Asia Pacific University College of Technology (UCTI), has partnered the Green Computing Initiative (GCI) (www.greenci.org) to spearhead research in green computing, and help organisations green their computer networks. GCI is a member-based accreditation organisation that certifies
deputy regional director general of Asia Centre of Green Computing Research, there is enormous savings in green computing. “One reason why the IT sector is moving slowly in becoming green is because energy cost has never been made a key performance index for the IT manager,” he says. “It has always been the concern of the property manager, but the situation is changing fast.”
Example of high costs incurred in IT sector
Number of servers
50,000
The real costs of social networking for 500 million active users can be very high Electricity bill
RM26.28 million a year
Rajendra: World energy consumption is expected to double by 2030
The IT industry, he adds, is responsible for 3% of the world’s energy consumption, but Data centre’s CO2 cube this is growing at an alarming carbon footprint rate of 20% a year. “By 2030, metres the world’s energy consumption tonnes of CO2 tall is expected to double partly because of growth in the IT sector,” he says. individuals and endorses organisations Rajendra predicts that in green computing technologies the pressure to go green will go up. UCTI and GCI has formed the “Governments around the world are Asia Centre of Green Computing implementing carbon taxes, at the top Research (www.asiacgcr.org), which of their environmental and energy has offices in the United States, agenda,” he says. “Soon, what are Australia, Kuwait, Singapore, Hong considered guidelines will become Kong, China, Uganda, Nigeria, mandatory as laws and regulations Bangladesh and Pakistan. The new tomorrow. Companies are also being body will help companies adopt green scrutinised by investors based on their computing in their offices. Environment and Social Governance According to Matthew Rajendra, (ESG) policies.”
300
•
78,840
Coincidentally, on the launch date of the initiative, May 31st, the headlines in the local papers announced an electricity tariff hike, a revision from 31.31 sen/kWh to 33.54 sen/kWh, effective June 1st. Quoting an example of a data centre of 18.6 sq metres (200 sq feet) with a 150 W Power Factor Corrected Switcher, Rajendra says the annual power consumption of such a facility is 262,800 kWh, and when translated into monetary value, could be as high as RM102,000 (US$34,000) a year even before the tariff hike. “This,” he says, “is what it costs to run a data centre.” The other big energy user is the desktop, where the energy consumption is 85 W while idling, and 300 W while running. “This makes a total of 1,686 kWh, or about RM660 a year. If you multiply this by the number of computers in your organisation, it adds up to be a huge cost indeed!” he told an audience of IT practitioners and students at UCTI at the launch. Quoting another example of a switch, where the annual energy consumption is 2,190 kWh (costing about RM850), Rajendra says it takes 808kg of coal to produce that amount of energy, releasing 2 tonnes of carbon dioxide into the atmosphere, along with other toxic gases such as sulfur dioxide and nitrogen oxide. One tonne of CO2 is equivalent to a pillar of 8m x 8m x 8m. Urging corporations to conduct energy audits, Rajendra says organisations going green may save up to 50% savings on their energy bills. What’s more interesting is that a change of behaviour is all that is required of employees. There are a number of simple actions toward green computing: • Enable the power management features of computers • Disable screensavers, because they consume energy • Turn down the brightness of the monitor by one or two notches • Use energy-saving bulbs • Plant heavy-yielding fruit trees like durian and jackfruit. These trees take up more CO2 from the atmosphere • Buy Energy Star certified products The Green Computing Initiative, Rajendra says, is meant to add value to the organisaton in terms of cost savings and protecting the planet.
opportunities
Betting on batteries to rev up the EV business
outlook for plug-in hybrids in the immediate-term is good, because smaller, cheaper batteries can be used, and augmented by fossil-fuel engines for longer journeys. Bohr cautions that huge investments must be made if the car industry is to wean itself off fossil fuels. Bosch spends 400 million euros a year on “powertrain electrification” – the incremental process of turning the internal combustion engine electric – the aim being to recoup “costs” quickly through economies of scale. (Bosch will spend 3.2 billion euros in total this year on automotive technology R&D) Given the level of investment required, the car industry will see more collaborations. Bosch plans a jointventure with Daimler to develop motors for EVs in Europe. It also expects to make “electromobility products” for some 20 projects for 12 car manufacturers by 2013. So, gazing into the crystal ball, Bohr expects consumer acceptance of EVs as a second or third car. The explosion in car ownership would no doubt be welcomed by the industry.
Investment horizon for the EV business lies beyond this decade Bosch spends 400 million euros a year on powertrain electrification
By Jason Tan
The name of Elon Musk is perfume to the battery suppliers of the nascent electric car industry. Musk, the cofounder of PayPal (sold to eBay for US$1.5 billion in 2002), is now more famously the CEO of Tesla Motors, the Palo Alto, California, manufacturer of sexy electric cars. Speaking to the BBC’s Top Gear petrolheads four years ago, Musk explained why Tesla has embraced, whole, battery technology and the electric vehicle, over the
Model S. Its maximum range, however, is 160, 230 or 300 miles, depending on how much you spend, starting from US$49,900. Clearly, viable battery technology is still not cheap enough for the average commuter, and despite Musk’s bullishness, there is no Moore’s Law for battery tech – not yet, in any case, while the financial markets restructure themselves off oil-based industries, and allocate serious money towards
Bernd Bohr chairman of Bosch Automotive Group
Have your SUV, and drive it too
On the road to the mobility of the future
competing technology of the hydrogen fuel-cell and the compromise of the hybrid car partially fuelled by dead dinosaurs: “Historically, battery performance has improved by about 8% per year. I think it’s reasonable to extrapolate that sort of improvement for some more years to come, driven primarily by the laptop and cell phone industry…we’re more interested in extending the range of the battery car where it can get up to 400 to 500 miles on a single charge. Why would you ever need a hybrid?” Cue 2011, and Tesla’s beautiful and elegant new Model S EV sedan is on schedule for launch in mid-2012. It does the sprint to 60mph (96kmh) in 5.6 seconds, and hits 125mph. Tesla holds 4,600 reservations for the
R&D for green technologies. Speaking in June at the 60th Bosch Automotive press briefing in Stuttgart, Germany, Bernd Bohr, chairman of Bosch Automotive Group, posed the car industry’s multibilliondollar question: “When is the future?” He answered himself by noting that the high cost of batteries will be a barrier to the growth of EVs and plugin hybrids until well after the end of the decade. (Bosch started producing lithium-ion batteries end of 2010 with SB LiMotive, a joint venture with Samsung SDI.) However, unlike Musk, Bohr plumps for the pragmatic solution in the interim: not an either-or choice of internal combustion engine and electric motor, but a bit of both. The
Some car makers have prepared themselves for a new age of mobility. Peugeot, for one, has rolled out its Mu scheme across Europe. Short for the French mouvoir (to drive), it allows members to borrow a range of Peugeot vehicles to suit their needs, including a moped. The idea behind Mu is to prepare the buying public for the introduction of its iON electric model, which is useful for the short commute. A battery of statistics, from Bosch In 2020: • EVs (electric vehicles) and plug-in hybrids will account for less than 3% of projected worldwide lightvehicle sales of 103 million units. Six million will be standard hybrids, like the Toyota Prius. • EVs will still cost more to manufacture than internal-combustion vehicles, at about 45% premium. • A battery for an EV or plug-in hybrid costs the manufacturer US$8,000 to US$16,000. A typical internalcombustion engine only costs about US$4,000. Studies in Germany show most consumers will not pay for an EV that costs US$2,690 more than an equivalent internal-combustion vehicle. •
•
CATCH
THE WIND WORSHIP
THE SUN India is chronically short of electrical power. But even with that handicap, no thanks to its crippling dependence on imported fossil fuel, it has grown to be a global economic powerhouse. The country is clear about what it has to do to get out of that energy trap. Nearly 20 years ago, it started to literally catch the wind to run turbines, using unproven technology. It is today one of the top five countries in the wind sector. Now, it aims to do the same with the sun, harnessing irradiation for energy. It also wants to be a world leader in biomass energy. There will be a lot of opportunities in this sector in the next ten years because of the huge targets set. As at March this year, about 11% of India’s power mix is from renewables. The plan is to lift this to 20% by 2020.
•
cover
India’s clean revolution 11% of India’s power mix is from renewables Developers of 37 solar projects sign deals to contribute 620 MW to the grid in first quarter of this year
By VK Shashikumar & Tejas Patel
The sight of a dothi- clad man installing a solar photovoltaic panel on the thatched roof of his nondescript home symbolises the extent technology has invaded the remote villages of India. Considering that some 400 million rural folk do not use electricity, that’s a lot of opportunities for solar PV suppliers. The Internet is full of stories of how companies and well-meaning individuals have done their part to bring electricity to homes and schools to improve the lives of the marginalised, mainly utilising small solar panels or mini wind turbines. For the poor, decentralised electricity
supply could be their passport to a better life. But for city folk, access to electricity is almost a given in India and the productive activities they fervently pursue have turned the country into an economic superpower that is projected to do even better in the years to come. India is chronically short of electricity, energy-insecure because of its heavy dependence on imported fuel, and lacks a robust national power grid that will bring electricity to the far-flung corners of the huge nation. But like the other powerhouse, China, it has been doing what Europe and the United States embarked on 30 to 40 years ago – harnessing renewable energy. With astute policy-making, it has been doing remarkably well. Since it pioneered wind power in the 1980s, it now ranks in the world’s top five wind energy developers. It is now doing the same with the sun’s irradiation. In the first quarter of this year, Phase 1 of India’s National Solar Mission (NSM) kicked off with
INDIA'S BIG RE RESOURCES
•
developers of 37 projects signing power purchase agreements (PPAs) with the government. These projects will contribute 620 MW to the grid. The NSM aims to add 1 GW of solar-powered electricity by 2013 under the first phase, and a total of 20 GW of solar capacity by 2022. According to Ernst & Young’s quarterly report “Global Renewable Energy Country Attractiveness Indices” released late May, the fact the agreements fall within the first year of the NSM’s launch reinforces the timely execution of Phase I and shows the government’s commitment to solar power development. To complete the renewables equation, India has added biomass to the mix. As of last December, the total installed capacity of its biomass-based power was 2,559 MW. It wants to become a world leader in this area. But for all the initiatives that have been taken, there’s a lot more work that needs to be done in renewables. According to the International Energy Agency, 70% of the country’s energy generation is from fossil fuels – coal (40%), crude oil (24%), and natural gas (6%). By 2031–32, India’s energy imports may exceed 53% of the country’s total energy consumption, according to the Indian Planning
Most of the green jobs are expected to be created in the renewable energy sector, especially wind energy generation
Commission. And that’s a scary thought for any energy security planner. As of March this year, about 11% of India’s power mix is from renewables (source: Frost & Sullivan). The plan is to lift this to 20% by 2020. And in so doing, the country is all set to challenge the US, EU and China for a share of the global clean tech market worth US$2.2 trillion. With one of the largest cattle populations in the world, abundant sunlight for most days of the year and the huge potential of untapped rivers, the possibilities of using renewable energy is immense. According to the report “India’s Clean Revolution” by The Climate Group: • India is making more progress than the US on energy efficiency, and this market is expected to treble to Rs 351,000 crore (US$77 billion) in the next 10 years (source: “Sizing India’s Climate Economy” by HSBC Research) • India is now fifth in the world in terms of wind energy production. (source: “Sizing India’s Climate Economy” by HSBC Research) • Low-cost labour and a highly-skilled manufacturing base will make India a major hub for clean technologies • The rate of increase of India’s private investment in clean energy
will be 736% over the next ten years, three times that of the US or China. (source: “Global Clean Power: A US$2.3 Trillion Opportunity” by The Pew Centre). “There is no contradiction between India’s environmental and developmental imperatives. This new report charts India’s progress on low-carbon development and shows the exciting possibilities for
new partnerships, growth and jobs. It highlights the many areas where Indian companies – in partnership with government and civil society at all levels – are already taking advantage of low-carbon opportunities,” India’s Minister of State for Environment and Forests Jairam Ramesh was quoted as saying in the Climate Group report. India today has a total installed capacity of 17 GW of grid-connected renewable energy and has set a target
WIND POWER India has pioneered wind power in Asia since the 1980s and has for many years featured as one of the world’s top five countries for wind power development. In 2009, India brought 1.7 GW of wind capacity online – the third highest amount behind China and the US. The total installed wind power capacity in March 2010 in India was 11.8 GW, with Tamil Nadu as the leading state. India now stands fifth in the world for wind-generated power. Wind power capacity by 2020 will be at least 50 GW but could be as high as 200 GW. Sources: Ministry of New and Renewable Energy, Global Wind Energy Council Report, Renewable Energy World website
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to achieve 74 GW by 2022, the report states. There is huge potential in wind, solar and biomass, and the market for this is growing at an annual rate of 15%. “India’s untapped renewable resources are also impressive. Aside from wind and solar, there is also vast potential from different biomass sources. Agro-residue has a potential to generate about 18 GW of energy, while bagasse has the potential to generate about 4 GW. Also, about 60 GW of power can be generated from energy crops in the degraded wastelands, while the Ministry of New and Renewable Energy (MNRE) has identified 15 GW of potential generating capacity from small hydroelectric power plants,” the report says. India’s problem is not just in generating enough electricity, but also in distribution. The size of the Indian sub-continent makes it very expensive to transmit electricity via the power grid. The government has taken steps to incentivise higher efficiencies and electricity output. A new World Bank report says decentralising power generation and distribution to the local level through the state utility grid
SOLAR POWER The government unveiled in July 2009 a US$19 billion plan to produce 20 GW of solar power by 2020. Several incentives and market-based support for this renewable energy have been introduced. The daily average insolation across the country varies from 4 –7 kWh/m² with 2,300 to 3,200 sunshine hours a year. In addition, as the cost of building solar technologies continues to fall over the next five to ten years, a significant scale-up of solar generation, in multiples of tens of gigawatts, is a very realistic possibility. Solar power represents the country’s greatest hope for the future of renewables. India has set a goal to install 22 GWp (gigawatt peak) by 2022 when grid parity is aimed for. The Jawaharlal Nehru National Solar Mission aims to create an enabling policy framework for the deployment of 20,000 MW of solar power by 2022. Sources: Ministry of New and Renewable Energy, The Climate Group Report
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Bagasse, the main waste product of sugarcane mills, is a common and abundant biomass fuel source in India
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by using RE sources will help reduce power cuts and increase rural supply. If such sources replace kerosene and diesel with localised generation and supply, economic gains can be substantial, the report “Empowering Rural India: Expanding Electricity Access by Mobilising Local Resources” says. For instance, studies done in the Radhanagiri subdivision in the Kolhapur district of Maharashtra show that a consumer gets only about 8–10 hours of electricity a day. For domestic consumers, this means spending
Rs 11 per unit of electricity just to meet lighting needs. The Radhanagiri subdivision comprises a cluster of villages. It has about 28,000 domestic consumers, 1,200 commercial and 450 industrial consumers.If the decentralised model is tried in Radhanagari, the area will likely receive 24-hour supply at a lower cost. This will also ensure efficiency as the transmission and distribution losses will be brought down to 15% from the current high of 36.8%. Moreover, Maharashtra has huge unexploited potential in wind
and biomass energy generation. By decentralising, rural consumers in Maharashtra can make economic gains to the tune of Rs 4,700 crores. The model is called the Distributed Generation and Supply of Renewable Energy, also known as the DG&S model. It combines both generation and distribution. The rural franchisee, besides distributing power and collecting revenues, also generates power locally and supplies to the franchised area. The local community benefits from this as a certain percentage of the generated power is used in the designated area and the balance fed into the grid. “The franchisee will also be able to draw from the grid in case required. Such a model will augment generation using local renewable resources and supply power to areas that otherwise may remain power-starved despite having access to the grid,” the report says. “Despite over a century of investment in electric power systems, there are roughly 1.6 billion people across the globe who lack access to electricity, mainly in rural areas. There are as many people in South Asia without access to electricity as in Sub-Saharan Africa, most of them in India,” says
Inger Andersen, vice-president, Sustainable Development Network of the World Bank. “Experience in countries like China and the Philippines shows that distributed generation projects that also combine supply and are gridconnected have been successful. The involvement of local community leads to socio-economic development in the area, thereby promoting inclusive growth,” she adds. India’s clean revolution does not, however, stop at electricity generation for domestic use. Indian industry, which is expected to grow rapidly, is a big consumer of energy and emitter of GHGs. The government recognises the importance of improving industrial energy efficiency by reducing energy demand and cutting GHG emissions. “Reductions in industrial energy use are being driven by mandatory industrial energy audits under the 2001 Energy Conservation Act (ECA) and by fixing specific energy reduction targets for the top emitting industries as part of the 2008 National Action Plan on Climate Change (NAPCC). The NAPCC also calls for fiscal and tax incentives to promote efficiency, an energy-efficiency financing platform, and a trading market for energy-savings certificates,”
states the Climate Group’s report on India’s clean revolution. The report says energy efficiency in transportation and agriculture could cut oil consumption in India by 20% to 25% and save US$35 billion. Further, it states that “green buildings and ‘smart’ information and communication technologies can help India avoid a looming energy deficit and help to add US$608 billion in economic output by 2020”. The report concludes by suggesting that “meeting India’s target of adding approximately 40 GW to 55 GW of renewable energy capacity, as set out in its 13th Five-Year Plan, will result in a financing opportunity worth US$60 billion over the next decade. In addition, there is the potential for market-based approaches to unlock energy efficiency opportunities amounting to around US$16.5 billion. This indicates the enormous advantages in being part of India’s clean revolution – whether on the financing side, in the development of renewable technologies, in the provision of energy- efficiency measures or in the development of clean applications in transport, buildings, appliances, lighting and the ICT sector. – THL-Mediagrove
As at last December, the total installed capacity of biomass-based power in India was 2,559 MW. As per the Ministry of New and Renewable Energy (MNRE) estimate, 120 –150 million metric tonnes of biomass per annum obtained from agricultural and forestry residues correspond to a potential of about 18,000 MW. Bagassebased cogeneration in the country’s 550 sugar mills could lend about 5,000 MW in additional power. India is on its way to becoming the world leader in power generation from biomass, with the potential to generate an additional 20 GW of electricity from biomass residues.
BIOMASS
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Renewable fortunes: Farooq Abdullah on the journey so far It has been a year and a half since the launch of India's National Solar Mission. In an exclusive interview with Nidhi Bhardwaj, Minister for New and Renewable Energy Farooq Abdullah discusses achievements to date and the challenges ahead.
What are the prospects of India meeting its increasing energy needs through various renewable energy technologies in the coming years? You may be aware that a sustained GDP growth rate of around 8% plus over next 20 years would require quadrupling our energy requirements. While the present renewable power generation installed capacity •
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A report released last month by the Climate Group, a global environmental think tank, indicates that enormous potential exists for generating new income and jobs by developing domestic renewable energy resources and clean technologies in India. What are your views on this? There is certainly a vast potential for employment generation in the renewable energy sector. A recent report by prominent consultancy organisation KPMG has also estimated that the investment requirement and opportunity in the renewable energy (RE) sector in the next decade could be around US$110 billion and that a million jobs are likely to be created in the sector during this period. Renewable energy sources are distributed across the length and breadth of the country and ideally suited for meeting the basic energy needs of the majority of our population living in far-flung, remote and rural areas. They simultaneously offer many employment opportunities in the supply, installation, operation and maintenance of various types of RE systems /devices.
Inauguration of 3 MW grid – connected solar photovoltaic project at Village-Yelsandra, TalukBangarpet, District Kollar, in Karnataka by Farooq Abdullah, Minister for New and Renewable Energy (second from right) last year
Farooq Abdullah • Born on October 21st, 1937 • Son and heir to the late nationalist Kashmiri leader Sheikh Abdullah • A one-time doctor in England • Has been a leading figure in Kashmiri politics since the early 1980s
of about 20,000 MW corresponds to about 11.5% of the total installed capacity in the country, our aim is that the renewable power generation installed capacity should increase to about 72,000 MW by 2022, which would be a contribution of about 17.6% in the then likely total installed capacity of about 455,000 MW, with a contribution of about 6.4% to the electricity mix. In addition, the offgrid systems will make a significant contribution. Tell us more about the National Solar Mission. The mission envisages the creation of a policy framework for the deployment of 20,000 MW in solar power by
“We wish to bring together international experience to serve other energystarved nations in providing energy access to their vast populations deprived of grid electricity.” 2020, of which 1,100 MW is expected to be commissioned by 2013. In addition, 2,000 MW of off-grid solar applications, including 20 million rural lighting systems, are proposed. The mission will also support the setting up of a 20 million sq m solar thermal collector area, which has the potential of avoiding the use of about 7,500 MW capacity of thermal power plants. Significant progress has been achieved since the mission was launched in January 2010. Out of the 1,100 MW capacity, 800 MW of projects have been allotted. Small solar photovoltaic projects (SPVs) will start getting commissioned soon and we will have a few hundred megawatts commissioned in the country by year end.
Can solar energy meet the increasing demand for electricity in the country? The cost of solar power is presently high. It is, however, attractive, even today, for providing energy access and substituting demand for kerosene and diesel for power generation in rural areas. Our major focus is to reach out to such areas. Our present efforts are aimed at R&D for cost reduction, and creating enabling policy and regulatory framework, which facilitate the development of infrastructure and attract investments in the sector. We are banking on technological advancements, economies of scale and R&D to drive down costs to grid parity levels.
Activists and villagers at Jaitapur are protesting against the proposed nuclear plant. What are your views on nuclear energy? The country needs to exploit all energy options, conventional, renewable and nuclear to meet its growing energy needs, with necessary safeguards.
Your comments on the biomass energy policies and its prospects. Biomass has always been an important energy source for the country, considering the benefits it offers. It is renewable, widely available, carbonneutral and has the potential to provide significant employment in rural areas. Biomass can also provide stable energy, and can be quite cost-effective in regions having high levels of biomass resources and processing activities. My ministry has accordingly initiated
Is there a plan to set up a biomass energy mission on the same lines? We would like to accelerate the exploitation of available surplus biomass resources in the country. Our aim is to add about 10,000 MW biomass power in mission mode by 2022.
“We are banking on technological advancements, economies of scale and R&D to drive down costs (of solar power) to grid parity.”
a number of programmes to promote biomass energy. These include Biomass Power, Bagasse Cogeneration and Biomass Gasifers, not only for grid supply but also for industrial energy needs and rural electricity supply. There are very good prospects as a potential of about 18,000 MW from surplus agricultural waste and residues has been estimated, of which only about 1,000 MW has been exploited. In the case of sugar mills, there is an estimated potential of 5,000 MW from the country’s 550 mills, of which about 1,700 MW has been exploited. These achievements exclude energy plantations on degraded land, from which there can be significant scope for power generation. Tell us about India’s plans to promote green initiatives globally. India is already a world leader in several aspects and sectors of renewable energy. In April, at the International Renewable Energy Agency (IRENA) general assembly in Abu Dhabi, we proposed the setting up of a Global Energy Access Centre in India. We wish to bring together international experience to serve other energystarved nations in providing energy access to their vast populations deprived of grid electricity. – THLMediagrove
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Farooq Abdullah at the inauguration of the Jawaharlal Nehru National Solar Mission early last year. To the left is Environment Minister Jairam Ramesh
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How India built its wind and solar energy capacity Target for RE to constitute about 15% of India’s energy mix by 2020 Wind energy forms 70% of RE basket
India’s historical power deficit situation, coupled with increasing focus on ensuring energy security and a low - carbon economy, necessitates increasing the share of renewable sources in the nation’s energy mix. Mirroring the global situation, renewable energy (RE) has been gaining prominence in India (see chart). As at the end of March 2011, RE contributed 11.4% to India’s energy mix.
Renewables
Thermal
2.7% 11.4% 21.4%
63.8% 25.7%
24.6%
64.4%
Hydro
69.6%
Nuclear
target for RE to constitute about 15% of India’s energy mix by 2020. The NAPCC also recommended increasing the share of RE by 1% every year, starting from 2008–09. Policies to promote wind energy development Accelerated depreciation (AD) benefit Launched almost 15 years ago to help developers cope with unproven technology at that time, this has given a big shove to wind capacity build-up. The benefit, which was 100% during the launch phase, has now been reduced to 80%. The flip side of the AD scheme was that it promoted only installation of capacity without any incentives for generating wind power. This resulted in the building of idle capacity, which was leveraged well by industrial users for income tax benefits.
Policies to promote development of solar energy Jawaharlal Nehru National Solar Mission (JNNSM) This is a landmark initiative to promote ecologically-sustainable growth and constitutes a major contribution to meet the challenges of climate change.
2002
2.9% 7.6%
Laws and policies that drive the development of RE in India National Action Plan on Climate Change (NAPCC) India released the NAPCC on June 30, 2008 to outline its strategy to meet challenges encountered due to climate change. The government has set a
2.5% 3.3%
Amongst the various RE sources – small hydropower, biomass, wind, solar, etc – wind energy dominates India’s RE basket with a share of almost 70%. Solar power, although in its early stages of development, has become popular in recent years.
Generation-based incentive (GBI) scheme To overcome shortcomings of the AD scheme, the GBI scheme was introduced in late 2009 to incentivise developers for generating wind power. Wind power developers were offered a cost incentive of 50 paise or about US$0.01 per unit (kWh) of wind power generated (by grid-connected plants), over and above the feed-in tariff for a period of ten years. The GBI scheme is now valid for wind farms installed before March 31st, 2012. Developers can claim incentives/benefits on either the AD or GBI scheme for their projects, since the schemes are mutually exclusive.
2007
2011
Share of RE in India’s power generation capacity fuel mix Source: India Ministry of Power, MNRE, CEA Note: Figures as at end of March of each respective year
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It promotes large - scale deployment of solar energy, besides addressing shortcomings of prior schemes through revised and more attractive feed - in tariffs (FiTs) and renewable purchase obligations (RPOs). Targets planned under JNNSM (solar PV and solar thermal cumulative capacity): 1st phase (2009–12): 1,000 MW 2nd phase (2013–17): 3,000–10,00 MW 3rd phase (2017–22): 20,000 MW Policies to promote RE development Renewable purchase obligation (RPO) The State Electricity Regulatory Commission (SERC) mandated an obligation on states about the percentage of RE that needs to form a minimum percentage of their total power consumption in the area of a distribution licencee. This concept has the potential to develop into a marketplace for RE, so that states with higher potential can supply power to those with lower or no potential. Currently, 18 of the 25 SERCs have issued feed-in tariffs for wind power. Around 17 SERCs have also specified state-wide renewable purchase obligations (RPOs). Both these measures have helped create long- term policy certainty and investor confidence, which had a positive impact on the wind energy capacity additions in those states. Renewable energy certificates (RECs) Since RE resources are widely dispersed across India, not all states are endowed with the same potential. This challenge acted as a hindrance for a few RE resource-deficient states to meet their RPO targets. To overcome this challenge, the Ministry of New and Renewable Energy (MNRE) and Central Electricity Regulatory Commission (CERC) launched the renewable energy certificate (REC) mechanism in November 2010.
One REC will be equivalent to 1 MWh of electricity injected into the grid. Distribution companies, open access consumers and captive power plants (CPPs) can opt to buy RECs to meet their RPO. States can fulfill the RE obligation by buying the RECs in Power Exchanges approved by the Central Electricity Regulatory Commission. The REC will be exchanged only in the Power Exchanges approved by CERC within a determined price range. The REC mechanism is likely to boost RE development in coming years. It could work well for a developer, since this is likely to generate higher revenues through: 1. Sale of wind energy to the grid at a preferential tariff 2. Sale of REC through Power Exchanges at CERC- determined tariffs
Other support framework Clean Energy Fund To acknowledge the role of RE in addressing climate change and reducing dependence on fossil fuels, the government introduced a tax/cess of Rs 50 on every metric ton of coal imported or produced in India, in the Union Budget 2010 –11. The Fund is created annually using this tax/cess, which will then be used by the MNRE to establish a Green Bank. The Green Bank will work in tandem with the Indian Renewable Energy Development Agency (IREDA) to fund wind energy projects. Payment security scheme To fast - track the National Solar Mission, the government had in early June approved this scheme to help fund JNNSM projects. This scheme will enable financial closure of solar projects under JNNSM by extending gross
budgetary support (GBS) amounting to Rs 4,860 million to the MNRE. The scheme will help MNRE in the event of payment defaults by the state utilities to NTPC. Vidyut Vyapar Nigam (NVVN) is the central agency that will buy solar power from the developers and sell it to the utilities bundled with unallocated thermal power available from NTPC utilities. The core component of the payment security scheme is to create a solar payment security account (SPSA) financed from GBS to MNRE, to ensure adequate funds to address payment-related risks in case of defaults by state utilities. The scheme will facilitate the setting up of 1,000 MW grid- connected solar farms. These articles were contributed by Amol Kotwal, deputy director (South Asia & Middle East, Energy & Power System pratice), Frost & Sullivan.
Some major wind and solar projects in the pipeline Wind energy
• Caparo Energy Limited plans to set up wind energy parks to generate 5,000 MW. These projects are scheduled to be built, between 2011 and 2017, across six wind energyrich states of Tamil Nadu, Karnataka, Gujarat, Rajasthan, Maharashtra and Andhra Pradesh. The company has Solar energy
• PLG Power Limited (the flagship energy and power division of PLG Group), launched India’s biggest solar power generation plant of 40 MW in Gujarat in April this year. PLG was the very first company in India to come up with 40 MW of solar power generation at a stretch. The first phase of 10 MW is likely to be connected shortly to the grid. All four phases (of 10
planned an investment of about US$5.5 billion for these projects. • KSK Energy Ventures plans to set up 250 MW of wind energy capacity by mid-2012. The company now has about 71 MW wind energy projects under operation. It plans to invest about US$350 million to set up these projects across various locations. • Tata Power, India’s largest integrated private power utility, has installed wind power capacity of 273 MW across four states, including
Gujarat, Maharashtra, Karnataka, and Tamil Nadu. It plans to add 150 MW of wind energy capacity across these four states by end 2011- early 2012, with an investment outlay of about US$170 million. • CLP Power India Pvt Ltd (a wholly-owned subsidiary of Hong Kong-based CLP Holdings Ltd), is the largest foreign investor in the wind power sector in India and now has around 639 MW installed, with more to come. The company plans to invest
around US$400 million, to add around 200 –300 MW capacity in RE in the fiscal 2011–12. These projects are planned at various locations in Andhra Pradesh, Rajasthan, Maharashtra and Karnataka. • Orient Green Power Company (OGPL), promoted by Shriram EPC, targets capacity addition of 1,000 MW by 2013, which includes 700 MW of wind energy. OGPL now operates 152.6 MW of wind power and plans to add another 300 MW this year.
MW each) are scheduled to be completed by end of next year. • Tata Power commissioned a 3 MW solar power plant in Mulshi, Maharashtra, in April this year. The company is targeting to add 35 MW from solar energy in 2011–12, which would entail investing US$122 million. The capacity addition will come from a 25 MW project at Mithapur, slated for commission in December. The balance 10 MW capacity addition is expected to be split between expansion at its plant at Mulshi and installing capacities on rooftops of buildings. • Adani Power Ltd plans to
commission its 40 MW PV solar project at Bitta village, near Abdasa, in Kutch district, Gujarat, by year end. The plant’s capacity may be expanded to 100 MW over the next two years. Additionally, a 40 MW solar project is also being planned in Rajasthan. • Azure Power, which has invested nearly US$70 million in its various projects in India since 2007, is targeting a combined production of 100 MW in solar power with an investment of US$340 million by 2014. The company’s 10 MW projects are now operational in Punjab and Gujarat and 5 MW projects
are under construction in Rajasthan. • Astonfield Renewable Resources has aggressive plans to set up solar plants. The company recently collaborated with Spanish solar energy producer T-Solar to develop a solar power generation capacity of 200 MW over the next four years. The company now has a 5 MW solar plant operational at Bankura, West Bengal. Also, 25 MW and 5 MW solar plants are being developed in Gujarat and Osiyan in Rajasthan, respectively.
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Boom in green jobs 10.5 million jobs with implementation of National Action Plan on Climate Change Dedicated green job sites are mushrooming
By Tejas Patel With the global markets for lowcarbon goods and services expected to be worth US$2.2 trillion by 2020, India expects to get a market share worth US$135 billion in the next decade. More importantly, 10.5 million jobs are expected to be created if the Indian government’s National Action Plan on Climate Change (NAPCC) is effectively implemented, a Global Climate Network report says. According to another report, the HSBC Global Research released in January this year, India’s wind sector (projected worth by 2020: US$13 billion) could create between 150,000 and 250,000 jobs, while the solar industry (projected worth by 2020: US$7 billion) could generate between 117,000 and 234,000 jobs. The Global Climate Network report also says the Indian government plans to raise “three million biofuel hectares substantially on wastelands in 200,000 villages and to raise a further •
four million hectares of plantation to cover 100,000 industries”. This could create up to five million jobs as a result of village coverage and another five million jobs could result from industrial biofuel production. An International Labour Organisation (ILO) study has revealed that the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) programmes can also be a tool for creating millions of green jobs in India. So, what is a green job? According to the United Nations Environment Programme (UNEP), a green job or a green- collar job is “work in agricultural, manufacturing, research and development (R&D), administrative, and service activities that contributes substantially to preserving or restoring environmental quality. Specifically, but not exclusively, this includes jobs that help to protect ecosystems and biodiversity; reduce energy, materials, and water consumption through high efficiency strategies; de- carbonise the economy; and minimise or altogether avoid generation of all forms of waste and pollution.” Some of the green jobs include being engaged in organic farming, working for renewable energy giant
Suzlon, designing energy-efficient buildings/housing as an architect, manufacturing green cars like the REVAi, or developing green townships as a real estate developer. Indian business leaders are of the opinion that the green job revolution will be similar to the country’s IT revolution. Most of the green jobs are expected to come from the renewable energy sector (wind, solar and biomass technologies). The Suzlon Group, one of the largest wind-turbine manufacturers in the world, has signed a Memorandum of Understanding (MoU) with TERI University to set up and offer an MTech Programme in Renewable Energy Engineering and Management. “Suzlon today is the evolving face of renewable energy. By joining hands with TERI University we clearly demonstrate our vision and commitment towards green energy. We are proud to extend our support to this course that will give birth to a young dynamic generation of engineers who will inherit the challenge of creating a sustainable future,” said Suzlon chairman and managing director Tulsi Tanti in a statement. Another sector which could be a major creator of green jobs is real estate. With the increasing green building space in the country,
Babubhai Parmar, a cotton farmer from Gujarat. The cotton is used to make organic baby clothing
Deepak Suchade, who has spent a lot of time working on Natueco farming, claims that if he gets any plot of land, it will be made productive in three months and lush green in three years
India’s RE performance in first quarter 2011 there will be demand for architects, engineers, project planners and construction workers. The increase in green jobs is not limited to the energy generation and real estate sectors. More and more people are taking up organic farming these days. Take for instance Deepak Suchde, who is engaged in organic farming activity which he calls “Natueco Science”. Suchde has been working on Natueco farming for a long time now. According to the website of a Natueco farm where he works: “Natueco Science is all about harvesting the sunlight using farming as a medium to do that. The focus is on energy conservation and energy generation rather than on mere farm output by weight. It emphasises optimal and efficient use of soil, water and labour. It questions many of the traditional methods used in agriculture and yet is scientific and experimental in its approach.” The new trend among people in India also includes organic clothing. With fashion designers showcasing their “green collections” at fashion shows, people are buying eco friendly fabrics to do their bit for the environment. The designing and making of eco-friendly clothes is also a huge generator of jobs. Many young professionals are also taking up jobs with NGOs in the area of environment, climate change, and global warming. Websites specifically offering green jobs, like www.greenjobs forindia.com, www.greenjobs.in, www. greeneconomyindia.com, are creating a database of job recruiters and courses for students who want to pursue a green career. – THL-Mediagrove
India’s 2011–12 Budget reduced customs and excise duties to boost adoption of clean technology, including abolishing customs duty on components used in the manufacture of solar cells or modules. The renewables sector was, however, disappointed over the lack of support for renewable energy (RE). There are claims the piecemeal solar incentives ignore many other components and fail to address continued reliance on imported engineering services. There were smiles, however, for the budget’s measures to help support financing of large-scale renewables projects. This was the observation in professional services firm Ernst & Young’s latest quarterly global “Renewable Energy Country Attractiveness Indices” released late May. Other observations: Grid India suffers from a chronic electricity shortage and lack of a robust nationwide electricity grid, making it difficult to fully harness renewable potential. However, the Finance Ministry is considering using part of the US$555m Clean Energy Fund to finance new electricity transmission lines to distribute clean-energy power in states lacking the necessary infrastructure. Incentives India began trading its Renewable Energy Certificates (RECs) in late March on the Indian Energy Exchange and Power Exchange India. A total of 532 (non- solar) RECs were issued, 424 of which were sold on March 30th. Regulators have set a price range of Rs 12,000 – Rs 17,000 (US$268– US$379) per REC for solar projects, but analysts are already predicting a trading dip if obligated entities delay participation until the end of the annual RO period, and April’s trading slowdown already supports this. Solar power In the first quarter, developers of the 37 projects contributing 620 GW toward Phase 1 of India’s National Solar Mission (NSM) signed power purchase agreements (PPAs) with the government. The NSM aims to add 20 GW of solar capacity by
2022, and 1 GW by 2013 under Phase 1. The fact the agreements fall within the first year of the NSM’s launch reinforces the timely execution of Phase I and shows the government’s commitment to solar power development. India is to impose fines on delayed solar projects after five out of six plants failed to launch in early 2011 as planned. Wind power The latest wind statistics from the Global Wind Energy Council (GWEC) show 2.1 GW of wind capacity was added during 2010, taking total installed capacity to around 13 GW, and making India the world’s fifth-biggest wind power producer. The World Institute for Sustainable Energy in India estimates wind power potential could be as high as 100 GW if larger turbines are deployed and access to land improved, although grid weakness is likely to prevent full exploitation in the near future. Major renewables companies continue to be attracted to India’s wind market. Suzlon has signed a memorandum of understanding with the Gujarat state government to invest Rs 60 billion to develop 1 GW of wind capacity over the next three years, and announced it will be launching new turbines for low wind-speed zones across India. In April, Siemens announced plans to build its first wind turbine plant in India. Geothermal Interest in India’s geothermal potential has increased in recent months in anticipation of a new national policy. The government has identified at least 10.6 GW of potential power from heat trapped underground, a constant supply that has an advantage over more intermittent sources. In Q1, energy solutions provider Thermax secured a contract to set up the firstever geothermal power plant, and the government is also planning a 100 MW project in Reasi and other areas. Note: The Country Attractiveness Indices track 30 countries’ renewable energy markets across a range of technologies each quarter
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Commuting with a smaller carbon footprint Company policy favours staff purchase of Mahindra REVAi electric car Tyre maker introduces tyres that reduce fuel consumption
Opportunities abound in the area of daily commuting, and many Indian companies are coming up with products and services to reduce fuel consumption and to encourage green alternatives. Electric variants of cars and bikes are some key examples. Taking the cue from a worldwide trend, auto makers in India have developed and produced a number of electric motorcycles and cars. YObykes from Electrotherm, Hero Electric, TVS Motor Company and Oreva currently produce electric twowheelers although the market is in its infancy. The sale of electric motorbikes is expected to rise from 120,000 in 2009 to 320,000 in 2012, says the Society for Manufacturers of Electric Vehicles. More electric variants of passenger cars are also expected to be produced soon. The government has proposed to launch the National Mission for Hybrid and Electric Vehicles to provide an eco-friendly transport system. The 2010 –11 national budget provided full exemption from basic customs duty and a concessional rate of 4% for the central excise duty on specified parts of electrical vehicles on actualuser basis. It has also proposed to extend the concession to batteries imported by these manufacturers for the replacement market for the year 2011–12.
Company’s green car policy SAP Labs India, a leading software company, has offered a one-of-a-kind scheme under its green car policy which allows employees to own and maintain a car. And not just any car – it has to be Mahindra REVAi, reputedly •
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By Nidhi Bhardwaj
The makers of the REVAi estimate that switching to this EV could cut one's monthly commuting cost by half
the world’s best-selling electric vehicle. The company allows its employees to buy a Mahindra REVAi at a subsidised rate and get Rs 6,000 per month as car allowance. Also on offer is a free car - battery charging service on the campus, a dedicated parking slot, free routine maintenance, an extended battery warranty of 36 months, charging points at owner’s residence and service on the campus. According to VR Ferose, managing director of SAP Labs India, this scheme applies to all employees who have worked at least six months with the company. The Ministry of New and Renewable Energy offers a subsidy of Rs 62,000 – Rs 82,000 for the purchase of electric vehicles. This pulls down the cost of the vehicle by 20%. Car loans are available to employees.
Car pools a great step forward Car pools have in recent times become popular among young working adults. The idea is simple: instead of driving to work alone, a group of office colleagues car pool and share the cost of fuel. A pick-up and drop - off route can be drawn up and the travel time
tuned according to everyone’s working hours. Given the sharp rise in petrol prices, where it has touched Rs 63 per litre, car-pooling could prove a great money-saver. Car-pooling also helps reduce traffic congestion and pollution. While more and more people are opting for alternative fuels such as compressed natural gas (CNG), cars running on CNG still make up a mere fraction of the petrol / diesel-run cars.
Green tyres India’s leading tyre maker MRF recently released its eco - friendly radial automobile tyre range MRF ZSLK. These high-end tubeless tyres made of silica compound reduce rolling resistance, resulting in lowfuel consumption. The manufacturer says these tyres will appeal to the new generation drivers who want to do their bit for the environment. These eco-friendly tyres are available for popular makes such as the Hyundai Santro and high-end Getz, Maruti WagonR and SX4, Honda City and Civic, Ford Fiesta, Tata Indica Vista, Chevrolet Spark and Volkswagen Beetle. – THL-Mediagrove
opportunities
Smart grid demo puts new technology to test
Purchasing Asia, Tenaga Nasional’s senior general manager (planning) Mohd Yusof Rakob said the smart grid is an option in tackling the twin pressures of growing demand and limited resources against society’s Tender for supply of 5,000 smart meters to be called soon need to be environment-friendly. The demo project should be viewed Opportunities in supply of communication infrastructure alongside two important milestones By David Lee from now to 2015 – the implementation of the feed-in-tariff mechanism in the last quarter of 2011, and the gradual Malaysia’s utility corporation Tenaga could extend into removal of gas subsidy Nasional Berhad has embarked on 2013, during which the for power generation a smart grid demonstration project various information over the next four to determine how new technology systems that monitor years. can reduce cost and enhance energy assets, customers, “We have to find efficiency. The pilot areas selected call centre and repair ways to make electriare the commercial enclave of crew will be integrated city more affordable. Bukit Bintang in downtown Kuala for total operational We are looking at Lumpur, the industrial park of Bayan efficiency. By this maximising usage Lepas in Penang and the greenfield phase, customer service efficiency. The smart development area of Medini in the improvement would grid is a way to reduce Iskandar Development Region in Johor. have taken place. If capital expenditure and The project will be done in there is an outage, operational cost.” three phases. The first, which started Tenaga Nasional will Mohd Yusof last year, involves the retrofitting of know which roads says through the substations serving those three areas and which houses are demo project, Tenaga Tenaga Nasional’s senior general manager (planning) Mohd Yusof with sensors and communication affected, and when. Nasional will study two Rakob devices. This will invest the system They can proactively types of behaviour. The with a “self-healing” capability so that inform the customer even before an first is the behaviour of technology during an outage, there is automatic angry call comes through. (covering sensors, auto controls, reaction instead of the guesswork that Phase 3, which runs from now meters and communication mode). marks the present system. to 2015, takes the company into the “For instance, will data transfer be The second phase calls for the realm of renewable energy, specifically smooth if there is a lot of information installation of 5,000 smart meters in electric cars and charging stations, flow?” Secondly, the company wants those areas. It is learnt the company solar photovoltaics, energy storage and to see how customers behave when is drawing up the meter specifications solar-powered/LED street lights. These presented with, say, information on and tenders will be called soon so that are the future demands on the grid that consumption patterns. For instance, installation can be done from early will have to be managed. some will use more electricity when next year. The installation process In a recent interview with Green they see lower bills. Mohd Yusof says energy efficiency has two sides – the supply side and the China to purchase 30 million smart meters per year customers. High-rise customers like hotels and offices will always use an energy management system, which is China is every big company’s major tarmarket. L+G has a contract with the China get in Asia. According to Pike Research, State Grid Corporation. a computerised system for optimising China will buy an average of 30 million a building’s electricity usage. In such French company Schneider Electric smart meters per year over the next three cases, they will take advantage of plans to acquire Spanish electric years, or three times the number in North energy management tools to improve grid software company Telvent GIT America. A growing number of companies for US$2 billion. are chasing this investment. The two big efficiency. The attitude of individual The French specialist in power deals announced recently are: consumers, however, is different. network equipment wants to expand into The regulatory role of Japan’s Toshiba Corporation to the smart grid software industry. Telvent government is important in a smart buy Australian-owned smart meter currently manages electricity grids and maker Landis+Gyr. Toshiba has transportation systems in the Americas, grid environment as the initial done a lot of work to build its presence but Schneider wants to expand this all investment is high. In Malaysia, the in China. GE, ABB, Siemens and other the way to the Middle East and Asia. utility provider provides the meter to companies have not been sitting idle and It has also taken up a 74% stake in an customers free and recovers the cost have also been going all out to get smart Indian energy storage company called metering contracts in this huge potential Luminous. through the tariff. However, smart meters, at current prices, are about
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Singapore PowerGrid selects Telvent for new utility technology Telvent, the leading real-time IT solutions and information provider, has announced that Singapore PowerGrid (SPPG) has selected to work with them to implement the next generation of geographic information system (GIS) and outage management technology that is smart-grid ready. With multiple Telvent solutions paired with Esri South Asia and Microsoft platforms, SPPG will be able to reduce service disruptions and associated costs caused by power outages, Telvent says. SPPG will integrate Telvent’s Responder Outage Management System (OMS) with its ArcFM Enterprise GIS. This will help the utility sustain its excellent System Average Interruption Duration Index (SAIDI) record and manage its daily operations. SPPG wanted a system large enough to meet its growing infrastructure and found that Telvent’s broad integration and ability to control was the right fit. The GIS is traditionally used as a visualisation engine and map producer. It is however becoming a foundation for smart grid solutions as it works best in mapping and analysing huge amounts of data generated by smart grids.
Amazing chips to help electrify entire towns A 4mm-thick device to manage the power grid of a town Chip will only cost a few Swiss francs
Is it possible to manage the power grid of a whole town on single chip? A team led by Maher Kayal from EPFL’s Electronics Laboratory (ELab) is developing a dedicated hardware that manages the network a thousand times faster than current software running on a conventional computer. The first unit of this integrated circuit has just been developed and can be deployed on the scale of a town five years from now. Defective power lines, problems with generators, or risks of power cuts will be handled by the chip at super speed. This will allow these elements to be managed in close to real time, and at a lower cost than existing installations. “The problem with power grids has always been that ‘fatal moment’ when there is a sudden power failure,” says Kayal. This chip will enable the anticipation of breakdowns that could occur when the network is stretched to the limit, with much greater security, efficiency and speed than software coupled with hardware not developed specifically for this purpose. This increased speed will allow for modeling of thousands of possible scenarios and anticipate failures and calculate their best solutions before they even happen.
Smart grids “Apart from the increased speed, a further advantage will be easier use of renewable energy sources that depend on climatic conditions, and therefore are non-programmable, in comparison with nuclear energy power stations, which require advance planning,” adds Kayal. This way of managing the network is in line with the concept of the smart grid, that is, the use of electronic technologies to optimise the production and distribution of electricity and thereby match demand and supply, ultimately reducing economic and eco-
10 times more costly than the electromechanical meters in use today. Whether the utility provider or the customer fields the cost is something for the regulatory framework to address when the time comes. Aside from the cost to consumers, the utility provider has to invest in costly communication infrastructure. Sensors have to be in place to “watch” the power cables to detect problems. The communication platform will use new technologies like broadband internet and wireless technology such as GSM and WiMax. Communication is also needed to link databases from the power supplier to customers. The other use is for predictive maintenance. When asked who are likely to be their technology partners in smart grid, Mohd Yusof says a lot will depend on the results of the demo projects. “In the end, when we roll out, who we will engage will depend on the results,” he says.
Patent for this tiny marvel has been filed by ABB, which is part-financing the research
logical impact without limiting energy consumption. However, Kayal prefers not to estimate financial savings: “Everything depends on the education, the intelligence and the psychology of the users of the network.” Once in production, the chip should cost only a few Swiss francs and will have the significant advantage of being both reconfigurable and programmable according to the town, the district, or any other scale of network. Global power generation company ABB, which is financing part of the research work, has now filed a patent.
Operational five years from now The location of the study phase has been found: Al Hamra, a small town close to Ras Al Khaimah, in the United Arab Emirates. A doctoral student is now working on the technology transfer aspect of the project. He will move to this town in a year to work with students registered in the new EPFL Middle East Master in the Management of Energy and Sustainable Construction programme to perform the first full-scale trials. By the time his thesis is completed, the system should be operational. •
case studies
Power to the homeowner
The smart house
Project allows customers to monitor electricity usage online Technical impact of plug-in hybrid electric vehicles also being studied
By David Lee
Plug-in hybrid electric car Xcel Energy is studying how plug-in electric vehicles can store energy, act as backup generators for homes and supplement the grid during peak hours.
High-speed connections Advanced sensors distributed throughout the grid and a highspeed communications network tie the entire system together.
Smart thermostat Customers can opt to use a smart thermostat, which can communicate with the grid and adjust device settings to help optimise load management. Other “smart devices” could control your air conditioner or pool pump.
Smart meter Real-time pricing signals create increased options for consumers. Smart appliances Smart appliances contain on-board intelligence that “talks” to the grid, senses grid conditions and automatically turns devices on and off as needed.
In the late 1960s, Boulder, located at the foothills of the Rocky Mountains in Colorado, United States, was the gathering place of hippies, cementing its reputation as one of the most liberal cities in the state. Today, however, it is also famous as the site of the world’s first SmartGridCity experiment, selected partly for its many residents who are fierce champions of the environment. Some 23,000 Boulder households have been equipped with smart meters installed over the last two years as part of a US$100 million project to discover what broadband technology, electrical •
Xcel Energy’s Smart Grid Consortium is imagining a future that would allow you to communicate your energy choices to the power grid and automatically receive electricity based on your needs. The potential benefits: • Lower cost of power • Cleaner power • A more efficient and resilient grid • Improved system reliability • Increased conservation and energy efficiency
Customer choice Customers may be offered an opportunity to choose the type and amount of energy they’d like to receive with just the click of a mouse on their computer. 100% green power? A mix of sources? The cheapest priced source? In SmartGridCity, it could be up to you. Source: Xcel Energy
wires and human attitudes can do for energy efficiency. Traditional meters are still used, to serve as a control group for comparison. By signing up as users via a special website called MyAccount, participating residents can view their power consumption at down to 15-minute intervals (although the snag is that the information is available a day late). The information is used to fuel conservation ideas so that utility bills can be managed. Utility company Xcel Energy spokesperson Michelle Aguayo told Green Purchasing Asia in an email that
SmartGridCity is a pilot programme and the first part, testing more than 60 value propositions, was completed last December. The project was scheduled to report its findings in spring. What comes next is a pricing pilot which will allow a limited number of participants to choose a pricing plan that will help them better monitor their energy usage and, should they choose, modify how they use energy. “It will be through this study that Xcel Energy will be able to gauge if energy consumption goes down,” she says. The company has built a large body of knowledge from this pilot,
which will be used in other areas that they serve. “We are still analysing what we have learned so far from SmartGridCity and do not have any timeline for implementing those lessons in other parts of our service territory,” Aguayo says. Until the Boulder pilot, the electricity grid had not changed radically in the last 100 years. Utility companies generate electricity, always trying to balance supply and demand. How much consumers used was measured through the meter and a bill was issued. Things are changing now. In Boulder, we see a fully-integrated smart grid community where the best technologies are put to the test. The system includes a digital high-speed broadband communication system; upgraded substations, feeders and transformers; smart meters; and webbased tools. And the results: • More reliable power, with less chance of an outage. • The electric grid is monitored in real time, allowing Xcel Energy to predict equipment failure and proactively make repairs. To date, a number of potential long-term outages have been averted. • If a home suffers a blackout, it can get power back more quickly as smart grid technologies can monitor customer meters and diagnose individual outages. Because of the opportunities that the system provides, Toyota Motor Sales of USA has joined the pilot programme to do a field study on the technical impact of plug-in hybrid electric vehicles (PHVs) in such an environment. Toyota supplied 18 Prius PHVs for a two-year programme starting last September. They will be circulated among selected residents. The University of Colorado at Boulder’s Renewable and Sustainable Energy Institute, or RASEI – a joint venture with the US Department of Energy’s National Renewable Energy Laboratory – is a partner in this experiment. RASEI and Toyota will gather data on vehicle performance and electricity usage, as well as how households interact with vehicle feedback through smart grid technology.
SmartGridCity combines traditional and emerging technologies
Source: Xcel Energy
Xcel Energy’s Smart Grid Consortium is working towards a future when our energy grid can predict its problems and strengths while optimising available resources. The consortium has announced plans to build SmartGridCity, a community that combines traditional and emerging technology to move the energy grid into the digital age. This next-generation grid will allow customers and utilities to collaboratively manage power generation, delivery and energy consumption. SmartGridCity will boast of a fully inter-connected energy system capable of managing the various parts of the grid involved in producing power and delivering it to consumers. Key components of SmartGridCity 1 Dynamic system rich in information technology 2 High-speed, real-time, two-way communications 3 Sensors throughout the grid enabling rapid diagnosis and corrections 4 Decision-making data and support for peak efficiency 5 Distributed generation technologies such as wind turbines, solar panels, and plug-in hybrid electric vehicles 6 Automated “smart substations” 7 In-home energy control devices 8 Automated home energy use
FAQ on smart grids What’s a smart grid? According to the US Department of Energy’s National Energy Technology Laboratory, a modern smart grid should have these major characteristics: • Self-healing: can rapidly detect, analyse and respond to problems, and restore services quickly • Empowers the consumer: incorporates consumer equipment and behaviour in its design and operation • Tolerant of attack: resilient to physical and cyber-security attacks What’s a smart meter? Traditional meters provide one-way information and must be read by a meter reader. Smart meters are digital meters that offer two-way, near realtime communication, allowing for more interactivity between you and your
utility company. This allows consumers to take charge of their own spending pattern, and for the utility company to restore service faster. What is Broadband Over Powerlines (BPL)? SmartGridCity is tied together with Broadband Over Powerlines (BPL) technology. BPL uses existing electrical wires to create a multi-directional, highspeed communication network. This is what enables the grid to be monitored in real time. What other devices are deployed? In-home smart devices like wireless, twoway thermostats and smart plugs connect homes to the smart grid. This allow users to tap into the smart grid network and allows home systems and electrical outlets to “talk” to the MyAccount website. Users can then monitor their consumption and adjust their energy usage according to their personal needs and preferences.
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case studies
Innovative financing pays for Borneo biomass plants Carbon credits received upfront from Japanese power company Model of cooperation among Singapore, Malaysia, Japan
While many companies find it difficult to realise their carbon credits, a Singaporean company has started two biomass plants in Malaysia with the benefit of upfront carbon credits payment from a Japanese power company. Kina Biopower Sdn Bhd (KBP) and Seguntor Bioenergy Sdn Bhd (SBE) are models of what regional cooperation can create; in this case, among Malaysia, Singapore and Japan. They were set up in Sabah on the island of Borneo, and began operations in January and March 2009 respectively. Each plant costs RM120 million (US$39.6 million). Kina Biopower and Seguntor Bioenergy operate under Nature’s Energy Solution Singapore (NESS) Pte Ltd, a joint venture company between independent power producer (IPP) APEX Energy Ltd (APEX) and ORIX Corporation. Both plants supply power to the Sabah electricity grid for the Sandakan area under the Renewable Energy Power Purchase Agreement (REPPA).
Heat generated from burning EFB is used to produce steam that will then be used to drive the steam turbines and generate electricity •
By Eleanor Chen
Andrew Feng, managing director of KBP and SBE
Each plant consumes 900 to 1,000 tonnes of empty fruit bunches (EFB) per day from 14 to 17 oil palm mills in the area. Of the 11.5 MW of electricity generated per day from each plant, 10 MW is supplied to Sabah Electricity Sdn Bhd (SESB) while the remainder is used to operate the plant. While most local IPP biomass plants get their funding from the government-owned Bank Pembangunan Malaysia Berhad (BPMB), NESS was able to get project financing from a commercial bank, AmBank. NESS has the benefit of Chubu Electric Power Co. Inc (CEPCO), also the third largest utility company in Japan, as its shareholder, thus boosting its credit rating. Bankers generally lack an in-depth understanding of the technicalities and risks involved in biomass projects and would not generally finance such projects. NESS, however, was also innovative in asking their carbon credits buyer in Japan, CEPCO, for all the carbon credit money upfront to fund both projects based on the projected volume of carbon savings. With a track record of setting up power plants in various parts of Asia, NESS works only with utilities in power generation.
CEPCO was familiar with NESS’s track record and potential because its (NESS’s) holding company, APEX, had worked with CEPCO on the Surat Thani Green Energy Company Ltd (SGEC) power plant in Thailand. CEPCO was also committed to reducing 6 million tonnes of CO2 up to 2012 under the Kyoto Protocol. In 2007, CEPCO invested in Sabah with advanced carbon credit payment calculated from 2009 to 2012 for KBP and SBE. Reductions in CO2 emissions from both plants come up to about 500,000 tonnes a year and are expected to reach nearly 2 million tonnes by 2012. Sales from the 2 million tonnes of CO2 reductions to CEPCO were injected into KBP and SBE as equity. Logistics is one of the most serious challenges of a biomass plant, next to technicalities. The further the palm oil mill is from the biomass plant, the higher the transportation cost, which is also affected by fuel price. KBP and SBE overcame this by focusing on the palm oil mills in the surrounding area. KBP and SBE consume about 10% of the 20,000 tonnes of EFB produced by Sabah’s 124 mills a day during peak season. While EFB is readily available, it is more a question of feasibility and how the transport is managed. NESS further controlled and reduced operating costs by investing in 20 trucks to transport EFB. Even so, the fleet can only transport half of the EFB the plants require. The other half of the transportation is outsourced. Revenue for the plants comes from power sales to SESB. When Malaysia’s feed-in tariff (FiT) starts in September, each plant could bring in an
APEX Energy Ltd (APEX) was established in 2003 by a group of developers experienced in setting up and managing power plant projects in Asia with a focus on renewable energy and renewable power generation projects. It has developed a combined capacity of more than 2,000 MW with investments of over US$1.7 billion. APEX established Nature’s Energy Solution Singapore Pte Ltd (NESS) in January 2008. In December 2008, Japanese conglomerate ORIX Corporation became a partner in NESS for further expansion in renewable energy investments within South-east Asia.
machinery, which also costs a lot is needed. Both NESS plants can negotiate for good prices for their EFB as they process the fuel themselves. KBP and SBE have not faced EFB price increase even after operating in Sabah for three years as millers currently do not have other markets for their waste. “To run a power generation business, one must be in control of the conditions,” says Andrew Feng, managing director of KBP and SBE. The group plans to set up two new 20 MW plants in Sabah, one each in Kinabatangan and Lahad Datu. Each complex, with an investment of RM250 million, will have a biomass plant, sludge oil refining centre and waste water treatment plant. Today, KBP and SBE contribute 20% of the power supply for the east coast of Sabah.
Keen eyes on Sharp eco house Residents can view data on their energy saving performance on TV Electric vehicle battery will act as battery for the house
Electronics giant Sharp Corporation has completed an eco house with zero CO2 emissions at the industrial city of Green Front Sakai in Osaka, Japan. It started operations last month. In line with the company’s dual goals of minimising power consumption and providing a comfortable living environment, the house is equipped with cutting-edge energy-saving appliances integrated into a network using a home energy management system (HEMS). Residents of such a home will eventually be able to view data on their energy consumption and energysaving performance on Aquos televisions and LCD tablets. The house is also equipped with LED lighting, which will be evaluated for energy-saving and for its ability to adjust the brightness
their revenue. It’s much more challenging for an IPP to operate a biomass plant in Peninsular Malaysia. Most palm oil mills on the peninsula are controlled by the Federal Land Development Authority (Felda) and conglomerates like Sime Darby, unlike in Sabah, where mills are owned by small operators. NESS owns a fleet of 20 such trucks to transport EFT from the mills to its power plants The peninsula situation has greater pricing and extra revenue of RM600,000 a month supply risks. as FiT rates are higher than REPPA Biomass power plants around rates. Secondary revenue is from the Malaysia are generally not operated carbon credits which NESS has already by IPPs but by planters or millers. received in advance up to 2012. The Unlike palm oil mills, biomass plants third source of revenue comes from operate 24 hours a day, every day. For sludge oil which forms 20% to 30% of equipment to run continuously, quality
The eco house will use state-of-the-art technology to develop the ultimate in future home comfort
and colour of the lighting to the most comfortable levels. Also to be evaluated is the ability to use HEMS to control the energy created by solar photovoltaic (PV) modules, stored in the storage batteries and consumed by the appliances. The eco house will use stateof-the-art technology to develop the ultimate in future home comfort. These are some of the applications: • The energy generated by the PV
Overview of the eco house Description: Two-storey wood frame, 271.24 sq m floor space. Main equipment: • Photovoltaic power generator (9 kW, polycrystalline PV module) • LED lighting with sensor • Energy-efficient appliances controlled by HEMS, next-generation DC appliances • Storage battery (8 kWh, lithium-ion storage battery) • Intelligent power conditioner (connected to EV storage battery)
modules will supply DC (direct current) power straight to DC appliances without conversion to AC (alternating current) • An electric vehicle (EV) traction battery will work in conjunction with the intelligent power conditioner as a storage battery for the house • A large 180-inch LCD screen will be evaluated for suitability to today’s green-conscious world • Data acquired through these evaluations will help Sharp expand its energy solutions business. The experiment will help realise applications like the control of peak electricity and the compatibility of devices and appliances with smart grids. •
case studies
Ballooning interest in first hydrogen town
The Kitakyushu project will study supply stability, safety assurance and charging procedures. Specifically, it will also verify the viability of the technology to add or remove odour from hydrogen for safe use; a hydrogen gas metering system for hydrogen charging; and the operational performance of pure-hydrogen-type fuel cells. It also plans to test other hydrogen-fuelled technologies, such as stationary pure hydrogen fuel cells and light electric vehicles, including fuel cell-assisted bicycles and forklifts. This project of piping hydrogen to households and commercial facilities is a world first. Kitakyushu, however, is not the only town in Fukuoka Prefecture to be experimenting with hydrogen-related technology. A test project launched in 2008 equipped two housing communities of Minakazedai and Misakigaoka in Maebaru City with 150 fuel cell co-generation systems, powered by hydrogen extracted from liquefied petroleum gas. A 2009 International Energy Agency (IEA) report titled “Cities, towns and renewable energy” says that these Fukuoka prefecture test system could cover about 60% of the power of a typical household and 80% of its hot water supply. The project is promoted by the Fukuoka Hydrogen Strategy (Hy-Life Project), run by the Fukuoka perfecture and the Fukuoka Strategy Conference for Hydrogen Energy. This is Japan’s
Japanese project turns steel-making waste into energy source Fuel cells can meet 20% to 60% of electricity needs
By Ann Teoh
The world is watching how Japan’s Kitakyushu, Fukuoka, will fare as the world’s first hydrogen town. With this large-scale experiment, scientists hope to see how much carbon dioxide can be cut with the new power source. Yomiuri Shimbun reports that the Fukuoka prefectural and Kitakyushu municipal governments have partnered with 13 companies including JX Nippon Oil & Energy and four major utility gas firms to conduct the hydrogenpowered fuel cell experiment. The report says a 1.2 km hydrogen pipeline has been laid between Nippon Steel’s Yawata Works (the hydrogen is waste from the steel-making process) and a residential area in the Yahata Higashi district of Kitakyushu, also known as Hydrogen Town. The pipeline has a diameter of 5 cm to 10 cm. The 2011 project, which is built around the Kitakyushu Hydrogen Station, is led by the Research Association of Hydrogen Supply/Utilisation Technology (HySUT).
Factbox on hydrogen fuel cells • They are energy-conversion devices that directly convert the chemical energy in hydrogen to electricity, with pure water and heat as the only byproducts • They have two to three times the efficiency of traditional combustion technologies • They operate quietly, have fewer moving parts, and are suitable for a variety of applications • They can power almost any portable application that uses batteries – from hand-held devices to portable generators • They can power cars, trucks and buses, and have the potential to replace petroleum. Source: www.hydrogen.energy.gov
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Those enjoying the new energy source include a seven-unit apartment block, a museum and a hardware shop. All are equipped with 14 next-generation fuel cells. Each can generate up to 100 kW. They can generate both heat and power and do not emit any CO2. The Yomiuri Shimbun report also quotes project officials as saying in January that the cells meet 20% to 60% of electricity needs at each location. Kitakyushu mayor Kenji Kitahashi says he wants the city to be a global forerunner in realising a lowcarbon society. The Hydrogen Town Project is a part of the bigger Hydrogen Energy Social Infrastructure Development Demonstration Project, which aims to create a hydrogen society, says Japan’s Ministry of Economy, Trade and Industry (METI). The other related project is the Hydrogen Highway Project to provide expressway services using fuel cell buses. Hydrogen distribution system of Kitakyushu
Odour mixing device
Residential fuel cells Complex and individual houses
Kitakyushu hydrogen station
Hydrogen pipeline
Public facilities/ stores and residential fuel cells Steel plant and hydrogen production centre
Small fuel cells for specialty vehicles
Source: HySUT
largest consortium of industry, academia and local government, formed to undertake R&D in hydrogen production, distribution, storage and applications. Hydrogen researchers at Kyushu University are using the excess hydrogen generated during the steelmaking process at Yawata Works while
car makers are monitoring the results. Earlier, in 2006, a group of Danish companies released a utopian vision of a hydrogen city named H2PIA. It involved hydrogen being produced by non fossil fuels, a hydrogen-fuelled CHP (combined heat and power) plant based around fuel cells, a vehicle refilling station, individual fuel cells
The Hoovers will travel nearly 2,000 km further to avoid busy highways. Their vehicle, which leans towards bicycle technology, needs a full four feet of roadway
Across the US on the power of a 100 W bulb Father-son team plans fossil-fuel free tour of 7,240km Hybrid vehicle uses the daily power of a 100 W bulb
By Eleanor Chen What does cycling across the country have to do turning the lights off? Well, Pierce Hoover and his son Nash hope to show the folks in various small towns along their American cross-continent route the answer this summer. Says Pierce: “Nash and I wanted to demonstrate how much we could do with the energy we’d save by turning off one light, and together we set the goal of crossing the country on the power of one bulb per day.” On June 2nd, the father and son team kicked off their 4,500-mile (7,242km) road trip from Virginia to Oregon in a two-seater vehicle which runs on energy equivalent to a single 100 W light bulb left on 24 hours a day, which translates into 2,400 W hours per day.
Pierce tells the story of how this tour came about. He would get annoyed each time 13-year-old Nash forgot to turn off his room lights. He wanted Nash to understand that electric power, while inexpensive, doesn’t flow effortlessly from a socket, but comes from a complex infrastructure that runs back through the grid to power plants that consume natural resources, create heat and emit waste gases. To make his point, Pierce brought Nash to the gym to ride an exercise bike that measures energy output in watts – the same unit used to measure electricity. Nash soon discovered just how much work it took to power even simple household devices. “Sprinting, he briefly managed
for buildings and a district heating system. Although the project was to be built somewhere in Denmark, it is not known if the project actually started.
This article was developed based on a posting on Japan for Sustainability website www.japanfs.org
to pedal hard enough to power the equivalent of two lights, his video gaming system, and a ceiling fan,” Pierce recalls wryly. Then they got an idea – to test if it would be possible to cross the country cycling on just a light bulb worth of energy each day. With the help of a few friends, Pierce and Nash set about building a human-electric hybrid vehicle out of a micro-car manufactured by Lightfoot Cycles in Darby, Montana and a 100 W EcoSpeed electric motor fuelled by battery power plus kinetic energy from cycling. It has a top speed of 25 miles per hour and the energy efficiency of 1,000 miles per gallon of petroleum. Along this three-month-long eco tour, sponsored by Popular Science magazine and General Electric, the Hoovers will stop at communities along the way to spread the word that turning off unneeded lights and appliances can do more than shrink a household’s electric bill and that every watt saved can ultimately help save the planet. In the true spirit of a road trip, the duo will not have a support crew. For reasons of road safety and comfort, their chosen route runs along circuitous back roads and scenic routes through small towns, and across many of North America’s major mountain ranges. They take mid-day stops for rest, recreation and a not-so-quick recharge – about three hours are needed to bring deeply discharged batteries back to full capacity. But although Pierce and Nash won’t be going through cities where energy consumption is highest and their conservation message likely to have greater impact, spreading their message in the numerous small towns along their route still makes a difference. To follow Pierce and Nash online, go to www.popsci.com/ecotour. •
case studies
Malaysian banks reluctant to give out green tech loans Only 20 from 82 in Green Tech Scheme got loans Multiple reasons why applicants cannot get loans
Commercial banks in Malaysia are reluctant to give out loans to fund green technology projects. The Green Project Certificates given out by the Green Technology Corporation Malaysia (GreenTech Malaysia) do not convince bankers that they should support these projects, not even when the Green Technology Financing Scheme (GTFS) includes an underwriting of up to 60% of the total loan drawdown. As a result, the RM1.5 billion (US$495 million) in soft loans under the GTFS, which also comes with a 2% interest subsidy by the government, are virtually untouched. Of the 102 applications received, 83 were approved and given the Green Project Certificates by GreenTech Malaysia. However, Ministry of Energy, Green Technology and Water secretary-general Datuk Loo Took Gee says out of the 83, only 20 managed to secure business loans worth RM326.9 million from financial institutions.
By Stephen Ng
Zolkifli Bidin: “Different banks having different C’s in their credit evaluation”
Asso Prof Dr Maulud Abdul Latiff: “Project proponents lack the ability to study alternative options”
Current scenario The GTFS is centrally coordinated by Bank Negara Malaysia, the central bank of Malaysia, with support from GreenTech Malaysia, and the Credit Guarantee Corporation (CGC). While GreenTech Malaysia evaluates the soundness of the projects from the
technical aspects and issues the Green Project Certificate, the CGC acts as the administrator of guarantee for the loans on behalf of the Ministry of Finance. The problem is, banks generally see green technology as risks they don’t understand and don’t know how to evaluate. Technology technicalities aside, they also want to know how the borrower will make enough money to pay them back. Unless the teething issues are addressed, it is doubtful that the RM1.5 billion will be disbursed by the end of 2012. GreenTech Malaysia’s senior vice president, Victor Lee, admits that the Green Project Certificate does not guarantee bank loans, but he will be holding dialogues with the banks to convince them otherwise.
How the Green Technology Fund Scheme works Fund & monitoring
Bank Negara Malaysia Central Bank of Malaysia
Report
Credit Guarantee Corporation
Report
Monitoring
1 Loan application
3 Guarantee issuance 2 Guarantee application
Borrower
1 Loan application Lending institution
4 Loan disbursement Source: Credit Guarantee Corporation
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The reasons A number of reasons for loan rejections have been identified. “It has to do with different banks having different C’s in their credit evaluation,” says Zolkifli Bidin, a former senior employee with three major banks in Malaysia. In some banks, he says, the emphasis is on the capability of the borrower to service
the loan while others may prioritise the collectivity or any of the other C’s. “For this reason,” he adds, “it is wise to meet different bankers when presenting your business proposal. Failure to put up a convincing business proposal, especially on how the repayment of loan could be made out of one’s cash flow, is a major reason why business loans are not approved.” It is not unusual for banks to reject companies which cannot give a good cash flow projection, enough to repay the loan, because they see the cash flow as the primary source of repayment. “Security and collateral are only secondary sources of repayment, and can only be realised at liquidation,” he explains. There are other reasons why banks reject an application. “They will never tell you,” he says. “But the reasons are sometimes obvious. For example, they would not lend money for projects where the borrower does not have a significant capital investment himself or they do not fully understand the customer or the project.
ments, the banks would be landed with gadgets without a secondary market. Recently, the Ministry of Housing and Local Government had to raise the issue of funding with banks to provide hire purchase facilities for consumers to install these solar panels, priced at RM15,000/kW. Ultimately, as Associate Professor Dr Maulud Abdul Latiff, head of Renewable Energy Policy and Financial Modelling Studies, Institute of Hydrogen Economy at Universiti Teknologi Malaysia (UTM) says it is the viability of the project that matters. “The multiple application and the benefits of using techno-financial modelling is obvious. It does more than just determine the long-term financial viability of the project. It also defines the construction budget and the operating and maintenance budget, to prevent cost overrun,” he adds. Sadly, as Maulud points out, most project proponents lack the ability to study alternative options and determine the long-term technical feasibility and financial viability.
“Besides, most banks do not have the technical people who can evaluate business proposals which involve some new technologies. This is why green technology projects are still lagging behind.” Every loan application is evaluated from different aspects, including the borrower’s products and markets, production strategy and management. “There are also other general considerations such as the impact of economic changes on the borrower, political or regulatory changes within the market, changes in geopolitical or military factors, social or cultural conditions, as well as the technology involved,” adds Zolkifli.
Recommendations Market watchers say unless the government makes special efforts to intervene, risk-averse bankers will be reluctant to finance the procurement of green technologies. This is because, for example, in the purchase of solar panels to be placed on rooftops, should the client default on the monthly pay-
From municipal waste to wealth EE21 using thermal cracking is cheaper to run, easier to maintain Less flue, less CO
Converting municipal waste into useful end products using pyrolysis or the thermal cracking process will not only solve the problem of waste management for most city mayors, but also turn some entrepreneurs into millionaires. Japanese inventor and chief executive officer of EEN Co Ltd, Kunimichi Sato, is confident that his latest invention using thermal cracking to treat solid waste is a viable green solution for cities in this century. Besides reducing the output of greenhouse gases like carbon dioxide,
he says EE21 – the short name he has given to his machine – will also produce, among others, fertilisers and pharmaceutical products (from the treatment of organic waste in garbage), high-grade coal (from palm oil residue or very low-grade coal) and high-grade organic carbon (from sludge from oil tanks and pipes) as the end products. Empty fruit branches (EFB) that undergo thermal cracking becomes activated carbon, which can then be mixed with low-grade coal to produce high-grade coal and supplied as feedstock to power plants.
By Stephen Ng
Kunimichi Sato, inventor of EE21, which can convert palm oil residue to high-grade coal without incineration
Sato was accompanied by his business associate, Masamura Yamaji, when Green Purchasing Asia’s met him. Yamaji, who is also the managing director of Yamaji Vision, Inc based in Nishitokyo City, Japan, will be doing the marketing for EE21 in the region. •
river water or to neutralise the soil.” For every tonne of plastic waste treated using the EE21, the amount of CO2 generated is only 0.24 tonne, compared to 2.64 tonnes using conventional waste incinerators. Citing the example of a city where there are some Japanese inventor, Kunimichi Sato and his partner, Masamura Yamaji hope 2,600 tonnes of to identify partners for their EE21, which converts municipal waste into plastic waste to be nano carbon that can be sold to power plants or used as feedstock for pharmaceutical products and fuel treated in a year, the amount of CO2 Green advantages generated could be as high as 6,600 According to Yamaji, the EE21 is tonnes a year using the traditional high designed to use thermal cracking or temperature combustion incinerators. low temperature pyrolysis to treat solid However, with EE21, the amount of waste. There are a number of advanCO2 could go as low as 600 tonnes. The EE21 also produces less flue tages to using pyrolysis compared to gas and dioxins in a day. It can treat the conventional waste incinerators. up to 100 tonnes of plastic waste, but The term “pyrolysis” simply means the amount of flue gas is equivalent to a thermochemical decomposition of 1/139 of that generated from convenorganic material at high temperatures tional incinerators. The amount of without oxygen, as compared to comdioxins produced in a day for EE21 is bustion in a traditional waste incineraonly 1/26 of that by an incinerator of tor, where carbon and other elements the same capacity. combine with oxygen to produce The EE21 is also said to be greenhouse and other toxic gases. cheaper to run and easier to maintain “This process reduces CO2 emission,” he says. “Unlike the conventioncompared to conventional waste incinal waste incinerator, where the furnace erators. “The value of the end products temperature goes as high as 1,600°C, from the EE21 machine, in the form of the EE21 does not need a tall chimney. nano organic carbon, is very high. This In fact, the amount of CO2 released means we will eventually recover the from the EE21 is almost negligible – cost of machines when the end prodestimated at 1/100 of that produced by ucts are sold,” he says. “The machine a human being. Instead, the residual size can be selected by the tonnage carbon can be used as a very strong capacity depending on the amount of antioxidant to improve the quality of waste to be treated. Energy consump-
tion is also very much lower compared to the conventional incinerator.”
South-east Asian market Yamaji said that EEN Co Ltd has patented EE21 in a number of countries including Japan, Taiwan, Korea, China, Hong Kong and the United States. The patents are still pending in Malaysia, Germany, Italy, France and the United Kingdom. His main task is to help develop the business in Malaysia by implementing real application systems using nanocarbon. “We are now at the negotiation stage to clinch our first deal in Malaysia. Our plan is to set up our technical centre based on the new carbon technology here,” he says. “In Malaysia, Worldwide Corporate Resources Sdn Bhd (WCR) is our partner who will develop the business in the ASEAN market. From Malaysia, we also hope that WCR will expand the business to as far as Europe and other Islamic countries in the African continent.” From his base in Kuala Lumpur, Yamaji will be marketing EE21 in a number of other countries, such as Singapore, Thailand and Vietnam. “Wherever there is an opportunity, we will be there! Increasingly, there is a greater demand for energy to meet the requirements of a growing population and the industries to support the lifestyle in Asia. This is where renewable energy becomes very important because Asian countries have many natural resources and its solid waste can be used to produce useful end products. We would like to contribute our knowhow in green technologies to better the world,” he says.
Comparison between EE21 and conventional waste incinerators EE21
Conventional waste incinerators
Process
Non-incineration thermal cracking pyrolysis
Incineration process
Capacity
100 tonnes/18 hours
100 tonnes/24 hours
Operating time
18 hours (3 shifts of 6 hours)
24 hours (continuous)
Production of dioxins
0.000 81 ng–TEQ/M n
0.021 ng-TEQ/M3n
Amount of flue gas produced
1,600 cu metres/hour or 144,000 cu metres /day
83,820 cu metres/hour or 2,011,680 cu metres/day
3
Source: EEN Co Ltd
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case studies
The 396-unit Hundred Trees condominium is scheduled for completion in 2014
Hundred Trees garners BCA Green Mark Platinum Project expected to reinvigorate mature neighbourhood Complex’s thermal ratings surpass BCA requirements
By Suvarna Beesetti
On top of conferring a record number of 164 green building awards in May, Singapore’s Building and Construction Authority (BCA) accorded the inaugural BCA Green Mark Platinum Champion award to City Developments Ltd (CDL) in recognition of the company’s strong and demonstrated commitment towards promoting and driving Singapore’s green building movement. To achieve the prestigious status, a company must have done at least 15 Green Mark Platinum projects. One of these projects in CDL’s portfolio is Hundred Trees, located in the west coast area of Singapore. The project
site, measuring 267,598 sq feet, will be built over the premises of the old Hong Leong Gardens by Grande-Terre Properties Pte Ltd, a wholly-owned subsidiary of CDL. Although the development is located close to the busy Ayer Rajah Expressway (AYE), road noise is mitigated by a thick forest and a slip road between the condominium site and the expressway. CDL group general manager Chia Ngiang Hong said at the launch of the project: “The project is well located in a mature residential enclave, with access to retail amenities and premier educational institutions.” Indeed, the
area is quite popular with Japanese expatriates; there are two Japanese schools within walking distance from the condominium – a secondary school and a kindergarten. The name of this development is derived from the “Hundred Trees Boulevard” located within the project. The boulevard is flanked on both sides by 100 pink mempat trees, which resemble the cherry blossoms of Japan. The 396-unit condominium project comprises one- to four-bedroom apartments and penthouses housed in six 12-storey blocks with attic and two 11-storey blocks. Designed to be eco-conscious in all respects, the layout of units here make full use of natural lighting and ventilation. The development is also built on an elevated deck that provides the homes with added privacy and exclusive space. The added height affords even the lowest unit a good view while minimising the need for environmentally harmful excavations. All but two of the eight condominium blocks have a northsouth orientation to mitigate heat gain. •
Overall building thermal performance is enhanced through sunshading devices such as reinforced concrete trellises, reinforced concrete fins and aluminium fins. All windows are tinted and laminated to reduce overall temperature and traffic noise. Thermal insulation paint is applied to east- and west-facing facades to reduce solar heat gain. The overall envelope thermal performance of this development, also known as the Residential Envelope Transmittance Value (RETV), is 19.88 W/m², which is lower than the 25 W/m² limit set by the BCA. Energy-efficient air conditioners and a lighting dimmer system will be installed in each unit to promote lower energy consumption. The bathrooms will be provided with gas water heaters, which promote cost savings by reducing the energy bill by 76%. The layout of the lift lobbies and corridors are designed to allow illumination through daylighting and for natural ventilation to reduce reliance on fans. The 435-lot carpark is equipped with an exhaust system and carbon monoxide sensors that regulate fan operation to ensure the carpark air quality meets the minimal health standard. For drivers of electric cars, charging points are provided. To minimise electricity consump-
The landscape timber deck is made from recycled materials
The subsoil drainage and soil stabiliser used in the gardens are made of recycled materials
tion in the complex, which includes facilities such as a 50m lap swimming pool, function room, gymnasium, a tennis court and a jogging track, motion sensors will be installed in staircases, male and female changing rooms, the clubhouse and other common areas.
A rainwater harvesting system is used for landscape irrigation and a drip system will auto-irrigate 50% of the landscape area, in which the subsoil drainage and soil stabiliser are made of recycled materials. There will also be sub-meters to monitor water usage at swimming pools and water features.
Project details
The layout of the condominium has been designed such that its occupants can enjoy natural ventilation, while the windows are tinted and laminated to miminise heat gain •
• Developer: G-T P P L, - C D L • Architect: O O A P L • Project Interior Designer: I D P L • M&E Engineer: S M P L • C&S Engineer: KTP C P L • Quantity Surveyor: KPK Q S S P L • Main Contractor: T S C P L • Acoustic Consultant: A A C P L • ESD Consultant: B S D P L • Landscape Consultant: SALD P L • Completion: 2014 • Award: BCA G M P A
people
Aussie innovator peers into India’s solar future Philip Connor, co-founder of Sunengy and inventor of its groundbreaking Liquid Solar Array technology, talks to Tejas Patel about renewable energy options for a country like India.
India’s Tata Power recently tied up with Australian company Sunengy to build the country’s first floating solar power plant. At the heart of this collaboration is the Liquid Solar Array (LSA) – a unique solar technology system invented by Sydney-based scientist and engineer Philip Connor. Connor, who is also Sunengy’s chief technology officer and co-founder, is a longtime solar power advocate and researcher. In addition to developing his expertise through various projects involving both photovoltaic (PV) and solar thermal technologies, Connor has worked with the Commonwealth Scientific and Industrial Research Organisation (CSIRO) since 1989 to develop methods for mineral identification using spectroscopy. Green Purchasing Asia caught up with Connor to seek insights on this new partnership and on the future of sustainable power generation in India. You have an upcoming collaboration with Tata Power to set up a floating solar power plant project. Why choose India for this venture? India is very suitable for the LSA as it has good surface water resources (dams for irrigation, hydroelectricity and drinking water) and good sunlight resources. It also has a massive unmet power requirement. It needs 50% more ASAP. It also has the necessary manufacturing capacity. Tell us more about this upcoming project and the objectives. This is a small pilot project which will prove the LSA technology works reliably and productively in the tropical environment where it is most needed. What is LSA technology? How does it work? The LSA utilises well-established solar
• Holds electrical engineering degree from University of Sydney, where he also founded Science Fiction Association • Masters degree in electrical engineering and computer science from University of New South Wales • Practises yoga
and structural component technologies that have current and proven market reliability – that is, all technologies used are not revolutionary but evolutionary. It is LSA’s application of these technologies in water that is unique and patented. LSA is a new PV concentrator using relatively lightweight plastic concentrators that float on water, mounted on anchored rafts. A thin plastic focusing concentrator lens rotates slowly to track the sun both daily and seasonally. A minimal amount of silicon (or other types of) PV cells are housed in a PV container that sits in the water where the cells are kept cool and efficient through convective heat flow to the surrounding water. In bad weather the lens is protected by rotating it under the water to avoid damage in high winds, so the water becomes the vital structural component, cooler and protector. It is these applications of the water that are the basis for IP protection (patented so far in 10 countries including the US). The ultimate LSA system would
use two dams, with water pumped from the lower to the higher when excess solar power is available. This set-up can operate with very low water consumption and high solar harvesting efficiency, but it would be a higher cost system requiring new dams. Nevertheless, it would likely still be lower in cost than a nuclear power plant of the same power, and this kind of LSA installation can be done with less environmental disturbance than a conventional hydroelectric dam as the dam capacity need not be large – the power comes from the sun, not the water (one need not flood whole valleys). It is a new approach and many interesting variations are likely to be developed. How will the proposed project contribute to India’s growing energy needs? Once the pilot is successful, what’s next? Assuming good results from the pilot and a similar but larger installation in Australia, we, in partnership with Tata Power, will move to mass production for the Indian market. India is expected to meet its energy demands with nuclear energy as one of the major routes. Do you believe projects like yours (floating solar plants) can be an alternative to nuclear power? The LSA can provide massive increases to the energy production of most existing and new hydroelectric dams. In many cases, production can be doubled. This can be done at much lower capital cost than nuclear plants. Ours is the only solar technology I know of, which can provide day and night power at costs that are affordable in India. India also has an ambitious Solar Mission. Do you think she should focus more on renewable energy sources rather than nuclear energy? Yes. The long-term costs of nuclear are massive in direct capital and for both the present generation and for many generations into the future in terms of social and environmental impact. Governments need to look carefully at all options and properly fund solar in particular, with intelligent strategy. Solar is the only very large renewable resource. •
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editorial
The climes and times are a-changin’ 45% of Indians put the environment ahead of the economy Government programmes reward clean and green technology
The relationship of business with environment and society is undergoing an accelerated shift. The world over, businesses are feeling the heat from consumers, investors, policy makers, financial institutions, non-governmental organisations, media and activists. The demand for transparency and accountability is increasing. Stakeholders want to know how a business is impacting the environment and whether it is an asset or a liability for the society it operates in. Non-fulfilment of these expectations is manifesting in projects being stalled, brands losing market share, protesting stakeholders and framing of more stringent policies. Globally, markets are witnessing an accelerated uptake of green and fair trade products. India is no different. In fact, a recent survey by leading US public opinion agency Gallup shows 45% of Indians putting environmental protection ahead of economic growth, which was favoured by 35%. The enthusiasm of the populace is complemented in equal measure by government policies. Three years ago, Prime Minister Manmohan Singh released India’s first National Action Plan on Climate Change (NAPCC), outlining existing and future policies and programmes addressing climate mitigation and adaptation. The plan identifies eight core “national missions” running through 2017: • National Solar Mission: To increase production of photovoltaics to 1,000 MW/year; and deploy at least 1,000 MW of solar thermal generation • National Mission for Enhanced Energy Efficiency: To yield savings of 10,000 MW by 2012. It includes mandating specific energy use cuts in energy-consuming industries, with a system for companies to trade energy-savings certificates • National Mission on Sustainable Habitat: To promote energy-efficient urban planning, emphasise urban
By Harsh Purohit
View of the Himalayas from Kullu Valley, Himachal Pradesh, India, a region that will be conserved under the National Mission for Sustaining the Himalayan Ecosystem
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waste management and recycling, encourage the purchase of efficient vehicles; and incentivise the use of public transportation National Water Mission: To improve water use efficiency by 20% National Mission for Sustaining the Himalayan Ecosystem: To conserve biodiversity, forest cover, and other ecological values in the Himalayan region, including the glaciers National Mission for a “Green India”: Goals include the afforestation of 6 million hectares of degraded forest lands and expanding forest cover from 23% to 33% of India’s territory National Mission for Sustainable Agriculture: To support climate adaptation in agriculture through the development of climate-resilient
Harsh Purohit is founder director of Cognito, India, a design and sustainability consultancy. His email is harsh@cognitomail.com
crops and the expansion of weather insurance mechanisms • National Mission on Strategic Knowledge for Climate Change: To gain a better understanding of climate science, impacts and challenges, and to encourage private sector mitigation initiatives. Every businessman worth his balance sheet knows the biggest business opportunities are manifestations of intelligent alignment to government policies and/or public demand. Each of these missions throws up large and multiple opportunities. This year alone, Rs 6 billion (over US$133 million) has been earmarked for the protection and regeneration of forests, environmental management and cleaning of rivers. In August 2010, Jairam Ramesh, Minister of State for Environment and Forests, announced in the Rajya Sabha, the upper house of Parliament, that the government has allocated Rs 25,000 crore (US$5.75 billion) to mitigate the effects of climate change. The size of the pie is huge and businesses can do better by doing good. An HSBC Global Research Report published in January pegs the investment opportunity in India’s low carbon goods and services market at US$134 billion. The Bureau of Energy Efficiency has launched the PAT (Perform Achieve and Trade) scheme where 600 energy-intensive companies from across 28 industries have been asked to reduce the energy required to manufacture one tonne of their produce. Companies that exceed their targets will be awarded energy-saving certificates (ECERTs) which they can sell to those that fail to meet their target. With this mechanism in place, one can already see a change in the buying criteria for capital equipment and a shift towards energy-efficient equipment. If newspapers and magazines are real-time chroniclers of the mood of the populace, then the colour of the •
wave sweeping India is surely green. Sustainability is adorning the covers of magazines as diverse as Tehelka (a political magazine known for its undercover journalism), Fortune India, and Hotelier, a niche industry publication. From computers to cars, wines to windows, basins to banks, tyres to
toothpastes, and hospitals to hotels, all are integrating green messages in their communication. This barrage of environmental messages in the marketplace is a double-edged sword. While they help to shift the eco-apathetic to the ecoattentive and the eco-attentive to the
eco-absorbed, some of these messages are beginning to sound hollow. Many brands are shooting themselves in the foot by creating scepticism about their green claims. While you rush for the juicy carrot of sustainability, beware that it hangs from a long strong stick.
Hits and misses in ecolabel campaign for retailers, hotels Retail participation helps drive green awareness Eco-hotels offer vast opportunities to cut down on waste
Dr Ning Yu is president of the Environment and Development Foundation and chairman of Taiwan Green Purchasing Alliance
By Ning Yu With the maturing of the economy, Taiwan’s service sector has gained importance. In 2009, the sector charted NT$8.75 trillion (about US$303 billion) in output, or about 70% of Taiwan’s GDP, and employed roughly 6 million people (about 58% of total employment), and these numbers are still going up. Along with the growth of this sector, the green consumption movement is also shifting from its traditional productcentred focus towards one more inclusive of services. For example, the Green Mark programme, Taiwan’s official ecolabelling programme, has in recent years focused on promoting ecolabels for retailers and hotels. The retail industry accounted for 26.9% of the service sector’s economic output in 2009 and is increasingly influential in the marketing of commercial and consumer goods. To broaden marketing channels for ecolabelled products, the Taiwan Environmental Protection Administration (TEPA) initiated the voluntary Green Store Scheme in 2009, which involves developing performance criteria for green stores and selecting the best performers for •
commendations and awards. There are a total of 10,337 TEPA-recognised Green Stores to date. As for the hotels, TEPA believes promoting green practices will allow Taiwan to maintain its status as a preferred tourist destination – one that attracted 5.57 million international visitors last year. In 2008, TEPA announced the Eco-hotel Criteria for the Green Mark programme after considering various environmental impacts, including resource and energy consumption, waste generation and pollution emissions, and encouraged hotels to apply for Green Mark. The main focus of the Green Mark Eco-hotel Criteria is waste reduction. Certified eco-hotels are not allowed to provide disposal amenities and guests are encouraged to bring their own toiletries. The Eco-hotel Criteria includes 38 indicators in seven areas, as well as specific environmental requirements concerning corporate environmental management, energy and water saving, green procurement, management of hazardous substances, waste separation, and resource recycling. In addition to publishing and implementing the Eco-hotel Criteria,
TEPA also launched the Green Hotel Guest Action Programme in 2009, engaging the participation of the hotel staff and guests in the process. Participating hotel guests who bring their own toiletries while staying at eco-hotels are awarded with “Green Coins” by participating hotels. The guests can then opt to support specific environmental initiatives by depositing the coins into dedicated collection boxes, which the hotel will later convert into equivalent donation towards the guests’ chosen environmental initiatives.
Poor participation This programme, however, does not seem to have been well received by the hospitality industry, with only 118 out of over 5,000 accommodation providers (including hotels and B&Bs) choosing to participate in the programme to date. The objective of the green consumption movement is to promote environmental goals through economic means. The movement’s success is therefore closely linked to trends in the country’s economic development. With the current rapid growth of Taiwan’s service sector, embracing the service sector would be an inevitable key approach to promoting green consumption in Taiwan.
editorial
Eco-cities: Beware of hijackers Malaysia’s GBI a welcome initiative but too costly Green homes should not only be for the rich
By Goh Ban Lee
Today, the showcase of an eco-city project in the making is Masdar City in United Arabs Emirates, scheduled for completion in 2016. This new city will only rely on solar energy and other renewable energy sources. It will have zero-carbon and zero-waste ecology. According to its planners, the plaza will be covered with huge solar umbrellas called “sunflowers” that will capture heat and provide shade during the day and fold at night to release heat.
touted to be a zero-carbon eco-city. Despite its ecological label, the RM25 billion (US$824 million) project on a 104 ha plot faced widespread opposition from non-governmental organisations. There are, however, success stories. A good example is Kawasaki City in Japan. Long known as a polluted city, it is today an exemplary eco-city with a Zero Emission Industrial Park. The city has also taken on the role of a
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In the past, businessmen used either the word “free” or “new” to draw attention. As it could be costly to use the former to promote products, they often used the latter to attract customers. While “new” is still a favourite, there are now two more words that are being used to sell things: “green” and “eco”. As such, it is increasingly common to see terms like green homes, green cars and eco-refrigerators. In addition, there are eco-towns and eco-cities. Unfortunately, there is no standardised meaning when green or eco is used as a prefix for things in Malaysia. Indeed, there is no certainty that a product with either of the two words as a prefix is really ecologically friendly. For instance, can a hotel claim to be green if it installs big and small flushes in its toilets? If a house uses solar panels and reduces its electricity bills by 25%, can it be termed as a green home? What are eco-towns or eco-cities? Are they really green in reality? Are they friendly to people? Eco-towns or eco-cities are generally defined as settlements that are built to meet the highest standards of sustainability. This means low- or zerocarbon footprints. Among the main characteristics are recycling systems for not only solid waste but also used water and the minimal use of cars for daily travel needs. And according to well-known Finnish professor Eero Paloheimo, “it should also be economical in all aspects.” For example, in England, four eco-town projects approved in 2007 had the following characteristics: All homes are, at the most 10 minutes’ walk from schools, shops and other local services and have safe bicycle storage; employment opportunities are available locally or at least accessible by public transport; and no more than 50% of all journeys starting from ecotowns are by car.
Dr Goh Ban Lee is a researcher who writes extensively on urban governance, housing and city planning
Masdar City in United Arabs Emirates is scheduled for completion in 2016. This new city will only rely on solar energy and other renewable energy sources
But plans do not necessarily become realities. Even well-publicised projects have turned sour. For example, Dongtan was much touted to be the “first eco-city of the world” by transforming a marshy backwater island near Shanghai into a gleaming community of energy-efficient buildings. Waste was to be recycled as fuel and the waterfront lined with sleek wind-mills. Planned to showcase China’s commitment to sustainable development during the Shanghai Trade Exposition in 2010, the project was abandoned even before the gates to the expo were opened. In Penang, the ill-fated Penang Global City Centre (PGCC) was also
promoter of green cities by establishing Kawasaki City Global Knowledge Centre to conduct research on and promote activities that reduce global warming. Malaysia has yet to have a bona fide eco-city. The so-called eco-city projects are no more than ordinary property development projects with some attention to environmental concerns. Most, if not all, are sited in locations that compel the use of private vehicles to get anywhere, including schools, markets and even having a cuppa with friends. Furthermore, not a single developer of eco-towns or ecohomes has shown evidence that the project was carbon neutral during the •
construction stage, from earth-works to construction and the use of paints. In this context, it is commendable that the Malaysian Institute of Architects and the Association of Consulting Engineers Malaysia have jointly developed a Green Building Index (GBI) to ensure some semblance of uniformity and standards. However, it is disappointing that the certification of green buildings can be costly. Greenbuildingindex Sdn Bhd charges Green Building Index Registration fees that range from RM5,000 to RM45,000 per project, depending on the size. The fees for projects above 100,000 sq m are negotiable.
editorial
For two professional bodies whose members have made a lot of money from property development partly as a result of legislated professional titles, one would have thought that the custodian of the index would provide free services to promote the development of eco-homes and eco-cities. More importantly, it is of concern that properties with the “green-” or “eco-” prefix come with hefty price tags. The price of properties in selfproclaimed eco-cities is simply beyond the means of the middle class. For example, the price of apartments in an “eco-city” project near a popular shopping centre in Kuala Lumpur is
reported to be RM800 per sq ft. An apartment measuring 1,300 sq ft will cost more than a RM1 million! Can a project be classified as ecologically sustainable when a large portion of the population is denied access? It is useful to note that in England, the first batch of eco-towns must consist of between 30% and 50% social housing as part of the Government’s drive to tackle the housing crisis. While it is a progressive step for Malaysia to promote sustainable development, it is also important to be vigilant against those who use green- and eco-labels as money-making machines.
Jatropha curcas fuels renewed interest RSB working towards first certified biofuels by year end Potential as a feedstock for aviation biofuel renews interest
Khoo Hock Aun is vicechairman of the Roundtable on Sustainable Biofuels. His email is khoohockaun@ cosmobiofuels.com
By Khoo Hock Aun
The cultivation of Jatropha curcas for biofuels may be a means to poverty alleviation, economic empowerment and social upliftment, especially in tropical and subtropical countries with underdeveloped and developing economies. The poisonous seeds of this flowering shrub is oil-rich. As the oil is inedible, cultivating the crop for its oil will not kick up a food-or-fuel debate. It is expected that the Jatropha curcas industry structure will transform dramatically from its present rudimentary state. Smallholders play a vital role in most jatropha projects. Two-thirds of all reported projects work with local out-growers, often in combination with a managed plantation especially in Latin America and Asia. Pure plantation models, however, are most common in Latin America. In Africa, most projects integrate smallholders, while pure outgrower models are equally important as the combined model. Political support for jatropha is already strong and developing as •
the crop can play a role in developing rural communities by generating jobs and providing an alternative to fossil fuel. So far – especially in Asia – governments have been the main driver for jatropha cultivation and they have developed specific programmes. There have been criticisms of such programmes failing to deliver on their promises, as in India and Indonesia, but the failures have more to do with the lack of efficient and effective supply chains than with the crop itself, where research and development is still ongoing.
Strong demand It is a fact that rising crude oil prices in the face of diminishing reserves, and green house gas (GHG) emissions mitigation requirements are now strengthening demand for biofuels. As a result, the focus of government regulation will shift towards more general frameworks for the biofuel sector. In this respect, production for lo-
cal markets is more important than for export, especially in Asia. For domestic markets, the use of unrefined jatropha oil in the local community is seen to be of equal importance to transesterification into biodiesel. In the longer term, jatropha oil is attractive enough to be developed for the bio-diesel and aviation biofuel industry, supplementing the edible palm oil from Malaysia and Indonesia, and other edible oils (rapeseed oil, soybean oil, sunflower oil and other soft oils) from the large farms of the US, Brazil and the EU. However, Malaysia is a high-cost, high-expectation environment, and any investment into jatropha has to be weighed against competing options. Presently, no other crop offers as much returns as oil palm, and Jatropha curcas, which only yields between two to three tonnes of oil per hectare currently, obviously cannot be recommended in its place. This is especially so when Malay-
Aviation biofuel and certification Boeing, the aircraft manufacturer, has identified Jatropha curcas, camelina and halophytes as strong candidates for aviation biofuels “in the near term”, and has targeted algae as a feedstock “in the longer term”. In this respect, the Roundtable on Sustainable Biofuels (www.rsb.org) has been identified by the aviation industry as a critical certification body to ensure sustainability requirements. Unlike oil palm, Jatropha curcas is unlikely to face market restrictions in
sia has limited land to expand oil palm cultivation. However, in areas where oil palm cannot be cultivated, such as in marginal soils, rain-shadow areas and on steep inclines, Jatropha curcas may be considered. There is an urgent need for research, development and innovation, as well as consideration of the regulatory and policy issues related to jatropha.
A model jatropha farm in Raub, Malaysia. Jatropha curcas, also known as Barbaclos Nut, Purging Nut or Physic Nut can grow on almost any terrain, including gravelly, sandy and saline soils. It also needs little water
Europe and North America. To ensure market access, RSB-certified crude jatropha oil or jatropha methyl ester will have an advantage. The RSB is pilot testing its principles and criteria and is working towards its first certified biofuels by end 2011 to be recognised by
the European Union under its Renewable Energy Directive. The RSB standard will address issues of economic and social viability, conservation, technology, labour and climate change. It will be working on a crop-specific standard for jatropha curcas to ensure the crop meets with generally expected sustainability requirements worldwide. As a non-food crop, issues such as its indirect impact on food production where it is grown will have to be taken into account to achieve sustainability. Its potential as a feedstock to be further processed into aviation biofuel or bio-synthetic paraffinic kerosene or Bio-SPK is renewing widespread interest in Jatropha curcas cultivation worldwide, especially where there are established programmes and linkages between airlines and producers in South America and Africa to secure substantial quantities required for test flights and eventual deployment.
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editorial
Plastic, paper or reusable shopping bag? A cotton reusable bag has to be reused 171 times to offset the GHG emissions Making a paper bag uses four times the energy it takes to produce a plastic bag
Dr Prasad Modak is chairman of the Green Purchasing Network of India. He can be reached at pmodak@vsnl.com
By Prasad Modak
washed with clean water to “de-ink”. Ecological footprint of a paper bag is therefore no different from that of a plastic bag. Both are equally sinful. The best choice overall is to use a reusable bag. Most reusable bags last for 5–10 years, maybe longer. Reusable shopping bags are often made of waste materials, so in some sense they help convert waste to a resource. In Australia, most green bags are made of 100% non-woven polypropylene which
Plastic bags are still used at shopping malls in Asia, although there are now attempts to discourage their use. A plastic bag can in principle be reused many, many times. If collected, it can be melted and transformed into products like fence material, park benches, additive for road asphalting and even to make diesel. The global statistics on collection of used plastic bags is however rather dismal in Asia. I am therefore not too optimistic on the efficacy of recycling plastic bags. In Asia, we don’t have great stories to tell. Plastic, if not recycled, can be burned to generate electricity. This can help to reduce the overall green house gas (GHG) emissions that would otherwise come from the burning of coal. Besides, plastic does not readily degrade in a landfill. Burning plastic can, however, emit dioxins and heavy metals if incineration is not done at the right temperature and appropriate control systems are not in place. While biodegradable plastic bags are now being produced that are “corn based”, they are more expensive. There is a popular misconception that paper bags are more environmentally friendly than plastic bags. Paper comes from trees and unless sustainable forestry is practised, making paper leads to the depletion of green cover, affecting local ecosystems and the extent of absorption of GHG emissions. According to a 2007 study by Boustead Consulting & Associates, making a paper bag uses nearly four times the energy as it takes to produce a plastic bag and 20 times the amount of fresh water. If we want to recycle paper, the paper must first be collected and returned to pulp. This is done by using several chemicals including sodium hydroxide, hydrogen peroxide, and sodium silicate. The pulp must be
is recyclable but not biodegradable. End-of-life for such reusable bags can therefore be complex. An unpublished report from the UK’s Environment Agency found that when compared to a traditional plastic bag, a canvas or cotton reusable bag would have to be reused a total of 171 times to offset the GHG emissions from its production. Reusable bags must thus be used often enough to claim the environment advantage. A reusable bag made from waste materials like discarded textile fabric is much better. Making such bags often provides employment to the underprivileged, so there is a benefit of livelihood creation. The apparel industry promotes reusable shopping cotton bags today as “sustainable fashion”.
Many fashion czars and supermarkets have promoted the use of reusable bags. Some supermarkets give points to customers when they bring their own shopping bags. When the customers collect a certain number of points, they can get discount coupons or gifts, which motivate customers to reduce plastic bag use. Some retailers such as Whole Foods Market and Target offer a cash discount for bringing in reusable bags. This makes the adoption of reusable bags a smarter choice. There are however concerns over the use of reusable bags. Most of those who use them do not wash their bags and because of repeated exposure to raw meats and vegetable, there is an increased risk of food-borne diseases. Since reusable bags are often made out of waste, there are also contamination risks. In January this year, USA Today ran an article based on a report from the Centre for Consumer Freedom, that bags sold in the US by Walgreens, Safeway, Giant, Giant Eagle, Bloom and other grocery chains and retailers contained levels of lead in excess of 100 parts per million, the maximum amount allowed under the law in many states. These findings were, however, not supported with adequate data. Paper and plastic bags are, thus, roughly equal in pros and cons. When asked to make a choice, the answer should always be neither. Opting for a reusable bag will make you the real green shopper. But use those that meet product quality and safety standards. You must also clean or wash the bags after you use them. And more importantly, practise reuse. Talk to your mall manager now and to your neighbours and bring the desired change to our shopping lifestyle. •
editorial
Matching locavores and local farms Buying local preserves traditional businesses and landscapes Less transportation means less fossil-fuel pollution
By Shel Horowitz
In the Pioneer Valley of Massachusetts (where I happen to live), you’ll find a whole lot of farms with signages declaring them “Local Heroes.” You’ll also see similar signs in grocery stores, supermarkets, farmers’ markets, plant nurseries and even cafes and restaurants. And you’ll see bumper stickers all over the region that say: Be a Local Hero, Buy Locally Grown®. Where did these signs come from and what do they mean? They come from an organisation called Community Involved in Sustaining Agriculture, or CISA. And they signify that these farms are active partners in the local economy. People who want local foods seek them out and buy from them. And these farms willingly sell to a market that cuts out several of the middlemen and allows them to command a premium price. In an era when farms are facing huge challenges economically, the CISA member farms tend to be doing well. Consumers get fresh foods (often picked that day) – and the satisfaction that they’re building the local economy. The money they spend with these farmers and their retailers comes back to the community in a myriad of ways, from support for sports teams and community causes to preserving open spaces for farmland against encroaching urban sprawl. And farmers get ready markets – both wholesale and retail – of locals committed to the local economy, and of stores or food service establishments willing to facilitate that commitment by making the products available. Interestingly, some of the stores and restaurants that participate are not themselves locally based; a couple of very large chains are participating, selling local produce to local buyers even while they themselves are headquartered far away. CISA was founded in 1993 as the Pioneer Valley Alliance for •
Sustainable Agriculture and later rebranded as an incorporated charitable organisation in 1999, under its current name. Local Hero launched the same year. It offers many support resources and programmes to local
farmers, in addition to the Local Hero campaign: a farm share programme for elders; market development for large institutions such as schools and hospitals; filling infrastructure needs such as processing centres; technical assistance to new farmers; workshops and instructional materials on marketing, grant writing, organic farming and financing options. But its public face is very much associated with the wildly-popular Local Hero programme. Through that programme, a lot of money has shifted to local sources. In fact, according to Devon Whitney-Deal, CISA’s Local Hero
Shel Horowitz is the primary author of “Guerilla Marketing Goes Green”. He can be reached at shel@ greenandprofitable.com
member services coordinator and one of its nine employees, when the organisation started tracking in 2003, there were only nine farmers’ markets in the Pioneer Valley – now there are at least 40 seasonal markets plus four winter markets (a more than 400% increase in eight years). CISA has 199 member farmers, 50 retailers, 32 restaurants and a total membership of 312. And in its three-county service area, bucking the farm-loss trend elsewhere, more acreage is actually in farmland now than when the group was founded. In other words, through a massive branding campaign, this organisation actually created a consciousness about buying local. People who in the past had not thought much about where their food comes from have made a conscious shift to buying some portion of their food from local sources – and that, in turn, has helped the farm economy to stay solvent. The buy-local strategy, according to CISA’s website, offers these five benefits: • Keeps money in the local economy • Preserves family farms • Reduces oil-dependent transportation costs • Protects local landscapes • Ensures fresh, healthy food stays available and affordable to all You won’t find CISA on the web at cisa.com, .org, or .net; you have to go to buylocalfood.org/ (and what a great URL). I’m rather surprised that the organisation hasn’t started a franchiselike model on the website, like Craig’s List. You’d kind of expect that by now there might be, for example, sydney. buylocalfood.org or kualalumpur. buylocalfood.org. Whether the programme uses a franchise model or not, I would think many communities around the world would find this worth replicating.
editorial
Eco buildings a cornerstone of sustainable growth Pay back fastest when energy is costly
Prashant Kapoor is a green building industry specialist and Carla Ricchetti is an investment officer. They work at the International Finance Corporation
Certification helps recoup cost of premium green buildings
Buildings and their operations consume tremendous energy, water and material resources and generate many varieties of pollution and waste. Today, buildings account for 15% of the world’s greenhouse gas (GHG) emissions. The Intergovernmental Panel on Climate Change (IPCC) estimates that building-related GHG emissions are expected to double by 2030 under a high-growth development scenario. This increase will take place almost entirely in the developing world where growth in the construction sector is increasing at more than 5% each year.
Where do green buildings make immediate sense? Green buildings are a no-brainer in parts of the world with high energy tariffs, like the Caribbean, West Africa, and the Philippines, because they pay their own way. Similarly, it is easy to track fast results in countries where carbon emissions from electricity generation are high such as South Africa, Turkey, Indonesia, India, China, and countries in the Middle East and North Africa region. Overall, countries with
the highest energy costs are likely to have the biggest demand for energy efficiency in buildings.
Clarity needed for market standards Green building certification systems help to create “brand value” for projects, leveling the playing field by defining appropriate metrics that allow investors/tenants to compare and identify efficient buildings. These certifications also help developers/landlords to create market differentiation for their products, enabling them to charge a premium and thereby recoup some of the additional capital cost incurred with the adoption of more efficient technologies. While standard/certification usage was for a long time limited outside the UK and the US, more countries are recognising that standards facilitate the move to greener buildings by creating a market-based voluntary mechanism. Green building rating tools such as LEED from the US and the UK’s BREEAM are increasingly used around the world.
At this stage, certification systems need to provide clarity and definition on several issues to strengthen their impacts. Their shortcomings are that they: • Adopt a broad definition for green buildings and lack focus on key issues. In fact, green building rating systems must ensure “core” environmental issues such as climate change, resource efficiency and resource depletion are properly addressed, or face the risk of actual or perceived “greenwashing” in the future • Do not suggest technology options to improve efficiency and related cost savings • Rely on complex simulation models to predict energy use and these often lack accuracy when applied in specific local contexts, and • Have assessment processes are generally lengthy and expensive, especially for clients in developing countries. In fact, it is generally simpler to build green (see box “Nine steps to build green”) than expected.
Nine simple and tangible steps to build green Nowadays, designing and constructing a green building is no longer viewed as “rocket science”. The knowledge and technologies required are readily available and the economic benefits of efficient building design are well-documented, too. The key is keeping green measures simple and tangible while focusing on core issues that provide the largest impact. The following steps are a useful guide to green: Review site constraints and opportunities. Understand building energy codes and conduct spatial site and climatic analyses. Design building façades to reduce energy demand. Limit glazed area
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on facades; provide appropriate solar shading. Create low-energy heating and cooling strategies. Consider alternative cooling systems such as earth tubes, seawater cooling, ground source heat pumps, and desiccant and evaporative cooling. Consider cost-effective alternatives like passive heat recovery from airconditioning chillers, utilising variable speed drives for fans and pumps. Design efficient heating and water-heating by using solar thermal systems and grey water heat recovery systems. Select efficient lighting and appliances, and maximise natural lighting
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where related solar heat gain is modest. Consider using renewable and low carbon energy supply. Renewable energy technologies include solar collectors, photovoltaics, and wind turbines; biomass heaters offer an alternative to fossil fuels. Specify low-flow fittings and rethink water use, especially recycling grey water for flushing toilets. Monitor materials and waste. Recover demolition materials that specify that they are recyclable. Focus on providing low-carbon substitutes for large building elements such as blast furnace slag and fuel ash in place of cement in floors.
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information
To each its own in water technology Indonesians, Singaporeans and Malaysians have highly different preferences Technology demands depend on water eco-systems
By Jay Roshan
The three South-east Asian neighbours – Indonesia, Singapore and Malaysia – face interestingly different challenges and opportunities with water. An audit by Frost & Sullivan reveals that Indonesians are a thirsty lot when it comes to bottled water; Singaporeans, already enjoying excellent water quality, pay for water technology that promotes therapeutic wellness, while Malaysians pay a lot of money to treat their murky tap water, often without really understanding what they are buying. According to the United Nationsbased World Water Assessment Programme, a person needs 20 to 50 litres of water free from harmful contaminants daily to meet basic needs. A child in the developed world, however, consumes 30 to 50 times as much water as one in the developing world. The agency also says that human health is linked to a slate of waterrelated conditions: safe drinking water, adequate sanitation, and sustainable freshwater ecosystems.
Guzzling bottles by the billions The survey says Indonesians in 2009 guzzled down 15.7 billion litres of water – making them the seventhlargest bottled-water (mineral and non-mineral) consumer in the world. In the Asia Pacific region, Indonesia is the second biggest consumer of bottled water and the third biggest in terms of per capita consumption. Because of impurities in public water and relatively low entry barriers, the Indonesian bottled water market is •
Malaysia
US$106mil US$17mil Singapore
Expected revenue from residential water treatment equipment market in 2016
expected to grow at a double-digit rate till 2016. The industry earned revenues of US$1.31 billion in 2009; that is likely to reach US$2.89 billion in 2016. Apart from enjoying a robust economy, the industry will gain from the “spending power” of young urban consumers and “health and safety awareness”. “Bottled water in Indonesia is a safer alternative and the majority of the population considers it more affordable than residential water treatment equipment,” says Frost & Sullivan programme manager Melvin Leong. Survey respondents say it is easy to set up water bottling plants due to almost “threadbare requirements” of the technology and the low initial capital outlay required. The only thorny issue is the competition posed by counterfeiters. They also face competition from water refilling station operators. Indonesia is introducing the use of Air Rahmat (low concentration of sodium hypochlorite) and Sodis (solar disinfection) that eliminates biological contaminants in water, lowering the demand for bottled water. Yet, the bottled water industry is confident due to a growing middle class. Furthermore, the rise in tap water and fuel prices have caused consumers to turn to bottled water.
Companies willing to invest in multiple manufacturing facilities and systematic logistics for distribution are likely to succeed. “Interestingly, the government is making efforts to decrease its reliance on imports and instead, depend on local production,” says Leong. “This has created job opportunities and is likely to attract more investments.” The pace of industrialisation in Indonesia has also signalled a need for wastewater treatment systems. Industrial waste reduces the availability and quality of water at an alarming rate, and the rising awareness of this hazard has led industrial end users to implement wastewater treatment techniques. The industrial wastewater treatment equipment market in Indonesia, earned revenues of US$64.3 million in 2009 and is likely to reach US$89.9 million in 2016. Manufacturers have been innovating an increasing number of water treatment equipment and systems while end-users are becoming more technologically aware. Smaller endusers tend to look for cheaper conventional technologies such as septic tanks rather than a wastewater treatment plant, says Frost & Sullivan consultant Vidhi Yaduvanshi. In such a landscape, companies that offer integrated solutions in engineering, procurement, and construction (EPC) and supply of equipment are likely to be the most popular. The market is expected to witness an annual growth rate of 4% to 6% as industrial end-users invest in upgrading and expanding their facilities.
In search of therapeutic value-added water Singaporeans are very conscious of the safety of their water, despite the high quality of their supply. The media fans consumer demand by stressing on the importance of safe water, compelling residential water treatment equipment manufacturers to provide high-performance water filtration fittings. The residential water treatment equipment
market is expected to earn US$16.8 million in 2016. Companies providing internationally-recognised systems that produce water with therapeutic and health benefits are likely to succeed. Their R&D efforts could bear fruit even before the product is introduced as the government offers low corporate tax rate, tax exemptions, and incentives. “Furthermore, Singapore, as a free port, does not apply custom and excise duties on many goods including environmental equipment,” says Leong. “Import opportunities are plenty and it augers well for foreign market participants.” As the Singaporean economy is expected to be stable, the market is likely to exhibit annual growth rates of 4% to 5%. Leong says the technology most likely to make the most of the economic stability and consumers’ higher spending power is membrane technology. “It is one of the most widely adopted technologies in water treatment, and its R&D is supported by the local agencies in Singapore.” Point-of-use (POU) systems with other technologies such as ultraviolet and carbon filtration are rated high in competitiveness and market attractiveness; however, the sales of these systems are generally lower than those with membrane technologies. Owing to the socio-economic demographics and market conditions in Singapore, point-of-entry (POE) systems generally experience lower demand, as the majority of end-users live in high-rise residential buildings. Equipment manufacturers’ biggest threat is the high quality of potable water supplied by the municipalities. Government authorities ensure that the water at water treatment plants and storage and distribution points meet stringent standards, and do not require further treatment. Thus, manufacturers often provide a variety of after-sales services, which usually include free or low-cost maintenance, cartridge replacement at reduced prices, technical assistance through the telephone or e-mail, door-to-door service, and affordable product upgrades in trade-in programmes. “Various companies are adopting multiple sales channels, including online purchase,” notes Leong.
Murky taps lead to DIY treatment The demand for water in Malaysia has grown at a rate of 8% per year, from 407 million litres per day (MLD) in 1960 to 13,243 MLD in 2008. Although local public treatment plants supply treated water, most consumers are apprehensive about the quality and cleanliness of what comes through the
taps. The supply lines are more than 15 years old and poorly maintained, causing people to resort to home water filtration systems. Furthermore, municipal water treatment plants only purify raw water supplies. Although water flowing from the plants adhere to standards set by the Ministry of Health, by the time it reaches residences, its quality would have dropped. This makes a strong case for residential water treatment equipment (RWTE). RWTE suppliers in Malaysia earned revenues of US$76.1 million in 2009 and the figure is likely to reach US$105.7 million in 2016. The market slowed with the economic downturn but it is expected to rebound and grow from 1.5% in 2010 to 5% in 2012, and between 5% to 7% from 2013 to 2016. Equipment manufacturers can bolster these growth rates by educating the public about their products. Currently, of the 20.3% of consumers using filtration systems, only 3.7% are aware of the types and functions of the water filtration systems used. POU systems are the most popular, as they are easy to install and cheaper. Meanwhile, membrane technology continues to be the technology of choice among manufacturers. Price is the most crucial competitive factor in the RWTE market, as most end-users in Malaysia are middleincome earners. Leading companies opt for direct selling, although some companies may consider expanding their distribution channels. Companies sometimes make claims regarding their product’s efficiency, quality and technology, without approval or accreditation by any local agencies or ministries. •
information
Golden age of natural gas in global energy mix Global use of gas to rise by more than 50% from 2010 levels China’s gas demand to match EU’s by 2035
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level of Germany in 2010 to match that of the entire EU in 2035. To meet the growth in demand, by 2035, annual gas production must increase by 1.8 tcm (thousand cubic metres), about three times the current production of Russia. Conventional natural gas will continue to make up the greater part of global production, but unconventional gas becomes increasingly important, meeting more than 40% of the increase in demand.
Natural gas is projected to play a huge role in the global energy mix of the future, with the International Energy Agency (IEA) saying it could well be a “golden age” for gas. But while it is the cleanest fossil fuel, gas is not the fuel to fight climate change. When replacing other fossil fuels, natural gas can lead to lower emissions of greenhouse gases and local pollutants. However, carbon emissions from gas will lead to a longterm temperature rise of over 3.5°C. A path towards 2°C would still require a greater shift to low-carbon energy sources, increased energy efficiency and deployment of new technologies including carbon capture and storage (CCS), which can reduce emissions from gas-fired plants. These were the observations from a special report by the IEA titled “Are we entering a golden age of gas?”, which is part of the World Energy Outlook (WEO) 2011 series. It examines the key factors that push natural gas’s contribution to the global energy mix, and the implications for other fuels, energy security and climate change. The report projects global use of gas to rise by more than 50% from 2010 levels to account for more than a quarter of global energy demand by 2035. The projection was based on a combination of new factors. They include the ample availability of gas (much of it unconventional), which lowers average gas prices, China’s implementation of an ambitious policy for gas use, lower growth of nuclear power and more use of natural gas in road-transport. The three most common sources of unconventional gas are tight sands, coalbed methane and gas shales. In the scenario, China’s natural gas demand alone rises from about the
25%
That’s how much gas will contribute to global energy demand by 2035 Global natural gas resources are vast, widely dispersed geographically and can help improve energy security. All major geographical regions have recoverable natural gas resources equal to at least 75 years of current consumption. However, timely and successful development of these resources depends on a complex set of factors, including government policy choices, technological capability and market conditions. Unconventional gas resources
are now estimated to be as large as conventional resources, but their production outlook is uncertain as the use of hydraulic fracturing to produce unconventional gas has raised environmental concerns and tested existing regulatory regimes. Adhering to best practices in production can mitigate potential environmental risks, such as excessive water use, contamination and disposal. Based on available data, the report estimates that shale gas, produced to proper standards of environmental responsibility, has 3.5% higher “wellto-burner” emissions than conventional gas. Natural gas is a particularly attractive fuel for countries and regions that are urbanising and seeking to satisfy rapid growth in energy demand, such as China, India and the Middle East. These countries and regions will largely determine the extent to which natural gas use expands over the next 25 years. IEA executive director Nobuo Tanaka says: “We have seen remarkable developments in natural gas markets in recent months. There is a strong potential for gas to take on a larger role, but also for the global gas market to become more diversified and therefore improve energy security.” However, he notes that “while natural gas is the ‘cleanest’ fossil fuel, it is still a fossil fuel. Its increased use could muscle out low-carbon fuels, such as renewables and nuclear – particularly in the wake of the incident at Fukushima and the likelihood of a reduced role for nuclear in some countries. An expansion of gas use alone is no panacea for climate change.” Two weeks of climate talks in Bonn ended on June 17th with no agreement in key areas. According to the IEA, greenhouse gas emissions are rising despite two decades of effort. Energy-related carbon emissions last year topped 30 gigatonnes, 5% more than in 2008. Japan’s energy crisis, triggered by the Fukushima nuclear incident, further dampens the scenario. The IEA special report can be downloaded free of charge at the World Energy Outlook website: www.worldenergyoutlook.org. The complete World Energy Outlook 2011 will be released on November 9th.
Briomedia Green Sdn Bhd (924679-H) 3-3 Jalan Solaris 2, Solaris Mont Kiara, 50480 Kuala Lumpur, Malaysia • Tel: +603 6203 7681 (Malaysia) • Tel: +65 9068 0184 (Singapore) • Fax: +603 6211 2681 • Email: editor@greenpurchasingasia.com • Marketing & sales Yong Wang Ching (Malaysia) +6012 205 7928, Lim Wan Tsau (Singapore) +65 9068 0184 • Subscription & circulation Yap Eng Jin
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Cloudy days for sun power with Europe demand cut Solar PV production capacities exceed demand Thin film predicted to suffer price decline first
The year 2011 may be an annus horribilis for the solar industry, says Ernst & Young’s quarterly renewable energy country attractiveness report released in May. It says that despite a greater readiness to adopt solar photovoltaics (PV), prompted by Middle East tensions and the earthquake-nuclear disaster in Japan, production capacities still exceed demand. The mismatch is partly caused by several European governments’ decision to reduce their financial support for PV after a 130% growth in PV installations last year. John M de Yonge and Thomas Christiansen, who wrote the chapter titled “Solar incentive reductions and oversupply: Softened by world events?”, say PV growth demand – notably in the United States, China and India – would not offset stagnation in Europe as non-European markets make up only 20% of global demand. Although global production capacity rose by 87% last year, most of it is based in Asia and does not benefit Europe. As these capacities come online, oversupply will develop, the authors say. Worse, as more modules make their way to Europe, higher cost producers will be squeezed first. “Worldwide, PV demand is not growing as fast as production, and I expect a strong oversupply which will lead to increased competition between companies,” says Gerhard Stryi-Hipp, head of energy policy at the Fraunhofer Institute of Solar Energy Systems. He thinks competition will also lower solar module prices. Ernst & Young’s energy and environmental infrastructure leader Ben Warren, in sharing Stryi-Hipp’s concerns, threw up this question: “Is it possible that further reductions in panel prices will keep demand levels
By Ann Teoh
“Worldwide, PV demand is not growing as fast as production, and I expect a strong oversupply which will lead to increased competition between companies.” – Gerhard Stryi-Hipp
up?” He feels policy makers are concerned about cost-effectiveness, thus penalising solar for other technologies such as wind in the short term, but in the longer term, events in Japan will place solar into the mainstream of power generation technologies. For investors, stability and minimum-risk maximum-returns are what matters. Stryi-Hipp says there are no problems in countries like Germany and Italy which have committed not to change feed-in tariff (FiT) for installed systems. The Czech Republic, however, started taxing FiT and Spain put a cap on FiT revenue. de Yonge and Christiansen say: “Many commentators noted that PV absorbed a large proportion of the FiTs’ total cost while providing only a small amount of FiT-supported electricity generation in 2010. Indeed, the German PV market had an exceptional
year in 2010, with 95% growth in installations, manageable price declines and a 44% of world installations.” To prevent more drastic measures, the industry agreed to market-based, flexible reductions, due to take effect this month. This will be the fifth reduction in FiTs in 18 months, with the earlier four cutting the FiTs by one third. Other body blows: >> Italy surprised everyone in January that it had 4.5 GW of installations last year. Concern over the potential cost prompted the Italian government to approve in May a new decree for PV incentives. There will be monthly FiT cuts from June to December, and from 2012 to 2013, the reductions will be twice a year. >> The Czech Republic, with a 1.5 GW and 274% growth in installations in 2010, slashed its FiT late in the year, and passed retroactive taxes on PV companies. >> France announced a moratorium followed by an announcement of a market cap early this year. >> United Kingdom, which implemented its FiT only last year, did an early review, leading to cuts of up to 72% from August for installations bigger than 50 kW. de Yonge and Christiansen say the disaster in Japan and MENA events will not save the PV industry from short-term pain, and European producers that are not at scale will face stiff competition from Asia. They say tier 1 players will benefit as customers migrate to brand names. As prices for crystalline products fall, thin film technology will have to lead price declines. Project developers will see weakness in demand, coupled with increasing supply options, and lower cost components. The report says the industry needs to quickly internationalise its sales and project development networks despite the strain of lower returns in established markets. Solar share prices did go up after the nuclear disaster, but most have since reversed. In the medium term, as the solar industry continues with price adjustments, it will reach price points compatible with other renewables. The report predicts that PVs will then enter a new phase of growth to become a major part of overall energy supply. •
information
Where’s your next meal coming from? More Asians want responsibly produced food Traceability supports sustainability and premium branding
By Siaw Mei Li
Food ecolabels are the most common green product certification the consumer sees. However, ecolabels are diverse, and range from organic food labels issued by organisations such as the US Department of Agriculture, the Japanese Agricultural Standard or the China Organic Food Certification Centre, to others indicating adherence to standards set by bodies such as the Marine Stewardship Council, the Rainforest Alliance, Fairtrade and even the Singapore Environment Council’s relatively new eco-food court scheme. Recently, labels issued by the UK government’s Carbon Trust saw a surge in adoption, thanks in part to a celebrity endorsement campaign. It has become yet another ecolabel on supermarket food shelves although Carbon Trust covers more than food. Meanwhile, the recent spate of food safety scares in Europe and Asia remind us once again just how complex and tedious – but also crucial – it can be to keep track of supply chains throughout the agricultural and food production industries. Doing so properly, however, is not only important for food safety, but may also be necessary for producers to assure consumers that
a food item was produced according to their ethical or religious values and without undue cost to the environment. Mandatory country of origin labelling (COOL) regulations exist in countries such as the US, the UK, Japan, China, South Korea, Taiwan and Singapore, but enforcement levels and the food categories vary. While the growing interest stems from economic, political and health concerns, place of origin labelling also provides cues on whether a product is likely to have been sustainably farmed, judging by the environmental regulations or general land use of the region concerned. In some markets, traceability is voluntarily taken to the point of tracking meat products from the ranch to the restaurant table. Every piece of meat from Lake Farm Beef of New Zealand carries an ID number that allows buyers to go online and view a photo of the animal along with its general information, while US food distributor Performance Food Group of Richmond, Virginia recently began supplying DNA-traceable beef for highend customers. Beyond the novelty of know-
ing precisely where one’s steak was grown, however, is the fact that buying locally-grown produce translates into a smaller carbon footprint for the consumer. Certified organic and ecologically sustainable production is also frequently associated with end-products of higher quality, safety standards and nutritional value. Where livestock is concerned, it also ties in with a producer’s record of raising and slaughtering animals under humane and religiously or ethically acceptable conditions. A March Datamonitor article for the Asian Food Journal reports that, like their European and American counterparts before them, Asian consumers today are more likely to demand transparency concerning the food products they buy. A 2010 consumer survey by Datamonitor indicated that 83% of consumers in India, 67% in Singapore, and 65% in China regarded knowledge of the ingredients in products they buy as being “more important or much more important over the past two years” compared to their Japanese (41%) and South Korean (37%) counterparts. In Asia, rising urbanisation and income levels have resulted in shoppers who are increasingly savvy at sizing up the value of items in their grocery basket. Investing in supply chain accountability and environmentally-responsible production measures now could unlock significant market opportunities for food and agricultural producers as consumers become more and more willing to pay for products that appeal to their values and their taste buds.
Examples of organic food ecolabels The UK Food Standards Agency defines organic farming as “a holistic approach to food production” through the following key emphases: restricted or no use of artificial fertilisers or pesticides; attention to animal welfare; maintaining soil health through application of manure, compost and crop rotation; limited use of additives in processed foods; and no use of GMOs or their products. Details of organic certification may vary across countries and many governments have developed organic certification systems tailored to their contexts and needs. China Organic Food Certification Centre
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Japan Agricultural Standard
US Department of Agriculture
Other examples of food ecolabels Fairtrade International (FLO)
Marine Stewardship Council (MSC)
Headquartered in Bonn, Germany, FLO is an international body comprising 24 organisations that coordinate Fairtrade labelling, set standards, organise support for producers and promote trade justice. While organic certification is not required, organic production is promoted and can earn higher Fairtrade Minimum Prices.
This organisation works with fisheries, seafood companies, scientists, conservation groups and the public to promote sustainable fishing practices. This label marks seafood from fisheries that have been certified by the MSC’s third-party certification programme.
UTZ certified
Rainforest Alliance Certified
UTZ is a leading sustainability programme for coffee, cocoa and tea. It promotes fair trade, environmental responsibility and sustainable practices that safeguard the livelihood of farmers in developing countries while providing peace of mind to consumers. UTZ CERTIFIED is also a traceability partner with the palm oil and cotton industries.
The distinctive green frog on the seal symbolises the organisation’s commitment to “conserve biodiversity and ensure sustainable livelihoods by transforming land-use practices, business practices and consumer behavior.” This label is carried by producers subscribing to environmental, social and economic sustainability.
Dolphin safe This seal is commonly seen on tuna cans and fish products. Some versions, like the one developed by the US Secretary of Commerce, are governed by dolphin-protection procedures, but there is no single verification body or universal standards regulating the use of look-alikes. Therefore, such labels do not always guarantee the seafood was fished without harming dolphins or endangered marine life.
Quest for the
Singapore Environment Council (SEC) Green Label for Food Courts The SEC sees food courts as “the main generators of waste in Singapore and therefore are an excellent platform to focus on”. The programme aims to raise community awareness and minimise food, energy and water waste while encouraging businesses to save on resources and enhance their image.
omni-label
In February, a new report for the UK’s Department for Environment, Food and Rural Affairs (DEFRA) by the University of Hertfordshire, the Food Ethics Council and the Policy Studies Institute provided extensive recommendations on how governments, businesses and green groups can improve environmental labelling on food products. A key concern it addressed was the call for an omni-label – a single environmental label that covers all the main
environmental issues amidst the recent proliferation of ecolabels in the market. The report found that: • “Practice-based” labels (ones that tell consumers how their food was produced) can play a valuable role in engaging shoppers on environmental issues and are likely to remain more cost effective than “outcome-based” omni-labels that attempt to measure the direct environmental impact of individual products.
• At present, the science is not robust enough to develop a broad omni-label that accurately reflects the environmental impacts of specific food products. • Government should work with industry and green groups to help improve the science, agree on common metrics and improve practices even if it doesn’t result in an outcome-based label. • Labelling is more effective at improving best practice than eliminating worst practice. Source: The Food Ethics Council
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Local standards trigger certification spree Unique qualities of GBI, Green Mark and Leed Local codes on energy efficiency and renewable energy used as GBI base
The development of green buildings in Malaysia is gaining momentum judging by the number of applications received. From August 2010 to February 2011, the Green Building Index (GBI) received some 60 new registrations, the highest in any six months since its launch in 2009. As at mid-May, 179 projects had applied to be accredited. The GBI was jointly developed by the Malaysian Institute of Architects (PAM) and the Association of Consulting Engineers Malaysia (ACEM) to reduce the nation’s carbon footprint and address issues of climate change and sustainability. The design also considers Malaysia’s state of environment and development, and its cultural and social needs. The first rating tool introduced by GBI was for Non-Residential New Construction (NRNC), followed by that for Residential New Construction (RNC), Non-Residential Existing
By Suvarna Beesetti
Von believes green construction initiatives are longer-lasting and more genuine if building owners or developers adopt them willingly
Building (NREB) and Township (T). The latest are rating tools for Industrial New Construction (INC) and the Industrial Existing Building (IEB), which will be followed by three more – for shopping malls, hospitals and data centres – in the next six months. Before GBI, some building owners and developers in Malaysia sought the
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United States’ Leadership in Energy & Environmental Design (LEED) and Singapore’s Building & Construction Authority (BCA) Green Mark accreditation for their projects. Kuala Lumpur-based architect Von Kok Leong says the BCA Green Mark was customised for the highly urbanised island state. It stresses more on energy efficiency, and less on aspects like a building’s accessibility to public transport (which is a given in Singapore). He also points out that LEED accreditation, on the other hand, is usually adopted in temperate countries. Von is a member of PAM’s sustainability committee, the GBI Accreditation Panel (GBIAP) and the pro-tem committee of Malaysia Green Building Confederation (MGBC). The MGBC, launched in 2010, promotes sustainability in the built environment. “GBI was developed specifically for Malaysia and to take care of the country’s requirements including its laws, bylaws, codes of practices and rate of development,” Von says. For example, GBI recognises the MS1525: 2007 Code of Practice on Energy Efficiency and Use of Renewable Energy for Non-Residential Buildings and adopts it as a base minimum standard. GBI also acknowledges two other major construction practices in the country – the Industrialised Building
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Systems (IBS) and Quality Assessment System in Construction (QLASSIC) by the Construction Industry Development Board (CIDB). Compared to the BCA Green Mark, Von says the GBI rating tool is more holistic and awards points for six key criteria – water efficiency; energy efficiency; indoor environmental quality; sustainable site planning and management; material and resources; and innovation. The index also award points for a building’s accessibility to public transport. Von adds: “Most importantly, GBI is also responsible for rural development and the different topology of buildings. I see no reason why buildings in Malaysia need to look for a tool outside when we have one tailor-made for the country.” Unlike Singapore, Malaysia has not made it compulsory for buildings to attain GBI. Von says: “We believe the effects are longer-lasting and genuine if developers do it willingly. Recently, some councils tried to make this mandatory against our advice.” The GBI assessment process usually takes about a month, depending on design complexity and the quality of submission by the project facilitator. Delays are usually caused by substandard or incomplete submissions.
Three types of cost A developer will typically incur three types of cost in constructing a green building – the registration cost (which is calculated according to the project’s square footage); the facilitator’s fee; and green cost items. The difference between the price of energy-efficient glass and standard glass price is an example of what is known as green cost. This is tabulated at the completion and verification assessment (CVA) stage by the quantity surveyor and certified by the architect. The green cost for the whole project is the amount that is eligible for tax exemption, which is one of the many benefits of being certified. Von refutes claims that developing a green building increases the overall cost by 40%. Although the cost varies for the different levels of certification, GBI has so far found cost increase to be only in the single digit.
GBI devises a tool for industrial buildings Greener factories help cut industry’s high power consumption Energy efficiency and worker wellbeing among tools’ priorities
By Suvarna Beesetti The stable of rating tools under Malaysia’s Green Building Index (GBI) has grown with the introduction of the GBI Industrial New Construction (INC) Tool and the GBI Industrial Existing Building (IEB) Tool. Both were designed to suit most types of industrial buildings. These new tools were developed with the help of the Federation of Malaysian Manufacturers for buildings which are mainly owneroccupied. At the launch recently, Boon Che Wee, president of the Malaysian Institute of Architects and GBI chairman, said: “This dual launch, which includes a rating for the refurbishment of existing industrial buildings, is intended to recognise the potential and to encourage these facilities to be retrofitted green and future-ready in line with the principles of sustainability.” With rising demand and pressure from foreign customers that existing factories go green, the focus has fallen on the largest energy user group – the industrial sector. This sector consumes over 40% of the energy used in the country. It consumes nearly half the national electricity production, or equal to the combined consumption of the commercial and domestic sectors. These alarming statistics underscore the importance of having green factories. The INC for instance, adopts the six established GBI criteria of energy efficiency; indoor environmental quality; sustainable site planning and management; material and resources; water efficiency; and innovation. Datuk Seri Peter Chin Fah Kui, Malaysian Minister of Energy, Green
Technology and Water, who officiated the launch, said: “The GBI INC Tool, in particular, emphasises energy efficiency and indoor environmental quality as these have the greatest impact on energy use and the wellbeing of the occupants and workers of the industrial sector.” The INC Tool includes the assessment of industrial resources and processes, unlike many international rating tools that tend only to evaluate the sustainability features of the building itself. Onsite energy capture and improvement in process-energy-use are given prominence as well, with the provision of breakout space to reduce workers’ fatigue. Meanwhile, the IEB Tool evaluates the sustainability aspects of existing industrial buildings, along with their processes. Indoor environmental quality is given priority to ensure the wellbeing and productivity of workers. To encourage improvement and modification, credit points are awarded for higher energy and water efficiency, and innovation. Facility management is incorporated in the criteria to promote better environmental protection through appropriate use of chemicals, pesticides and procurement policies. GBI is expected to launch several more tools in the coming months, including the Mall Tool, the Hotel Tool, the Data Centre Tool and the Public Health Tool. As of May 15th, GBI has received 179 applications, of which 35% are for new residential buildings, 59% new non-residential buildings, 2% existing non-residential buildings and 4% townships. Of these, 27 buildings have been certified by the GBI. •
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Furniture industry rooting for eco standards Industry councils promoting sustainability through supply chain Opportunities abound in growing overseas market for green furniture
When someone mentions “Malaysian furniture”, rubber wood is often the first thing that comes to mind. This is not surprising as 80% of the furniture produced in Malaysia is made from it and over the years, rubber wood furniture has developed a reputation of being value for money. These days, however, the Malaysian furniture industry is keen to develop its image beyond this, and is taking steps to promote Malaysianmade furniture as being environmentally sound. Chief executive officer of government body Malaysian Furniture Promotion Council (MFPC) Au Leck Chai says: “We are thinking of branding Malaysian furniture as green products.” Malaysian Furniture Industry Council (MFIC) president Richard Lee agrees but emphasises that changing mindsets is very important. “My own
By Eleanor Chen
Malaysian Furniture Promotion Council (MFPC) CEO Au Leck Chai believes foreign consumers must be reassured that Malaysian rainforests are being managed sustainably
company started going green in the office and in our production process two years ago. Employees and workers throughout the whole supply chain
must know why this is important. It doesn’t mean going 100% green overnight, but it can be done progressively.” The industry’s efforts to be more eco-friendly is helped by the fact that the majority of MFIC members use rubber wood, which was considered waste 20 to 30 years ago. MFPC is also encouraging its members and suppliers to go “green” now that water-based stains and glues, recycled carton boxes and biodegradable plastic bags are more widely available and affordable. Au thinks the next step for the industry is to pay closer attention to the fact that Malaysia is internationally renowned for its beautiful rainforests; since furniture production is essentially wood-based, the country’s timberrelated industries are always under scrutiny and pressure to be managed sustainably. “It is timely to capitalise on it as a form of branding for the industry. We just need to formalise this so that it becomes more tangible,” he says. Malaysian furniture is also not quite there yet in terms of overall branding. MFIC’s priority now is to build Malaysia’s design capability. Improvements in design and quality will give Malaysian furniture a competitive edge, so innovation is the immediate challenge for the industry.
OEKO leads by example Malaysian furniture maker OEKO Furniture Sdn Bhd was founded by Richard Lee two years ago to produce a line of green furniture products. As president of the Malaysian Furniture Industry Council (MFIC), Lee was also setting an example for the furniture industry to tap into an emerging market segment. A hundred percent of OEKO’s wood comes from rubber wood plantations. OEKO buys components that are cut to size so that there is no wastage, and usage is maximised. They set guidelines to source for materials within a 50 km radius of the factory to reduce air pollution and its carbon footprint. OEKO uses only water-based paints, varnishes, stains and glues instead of solvent-based ones. Cushions use Biopoly – a mixture of 15% palm oil extract (Poly-oil) and foam materials, replacing a portion of the petroleum-based polyurethane used in conventional foam.
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OEKO offers fabrics that are OekoTex® Standard 100 certified* and natural fibre fabrics SBP® (Sustainable Biodegradable Products) approved by the US and the EU. Carton boxes used for packaging are made of recycled carton while the internal corner blocks are made of corrugated paper instead of polystyrene. Waterbased ink is used for line printing on the
packaging material, and the plastic bags used are biodegradable. The company no longer uses polystyrene. OEKO furniture is sold at Mothercare, Toys “R” Us and select baby stores in the US. Lee observes that, ironically, buyers in the West actually want green products but are hesitant to pay a lower price for it. “When we provided green features in our products and absorbed the higher raw materials as well as production costs, customers in the West doubted that they were getting a green product for the price of a conventional piece of furniture. Higher awareness is definitely needed to educate the buyers and consumers about Malaysian furniture,” says Lee. *Oeko-Tex® Standard 100 is a global uniform testing and certification system for textile products at all stages of production
Malaysian Furniture Industry Council (MFIC) president Richard Lee walks the talk by building his own line of environmentally-preferable furniture products through OEKO Furniture Sdn Bhd
OEKO staff with Malaysian Minister of Plantation Industries and Commodities Tan Sri Bernard Dompok (seated) at the Malaysia International Commodity Conference & Showcase (MICCOS) fair
Three main criteria are typically used to define Malaysian furniture as green, according to the MFPC. • Sustainable sources: First, the wood or fabric used must be from sustainable sources. Timber for furniture has to be sourced from areas under Sustainable Forest Management (SFM) or from plantation wood. Palm wood and rubber wood which would otherwise be burnt and cause air pollution can also be converted into suitable raw materials like sawn timber. • Minimal waste: The second criterion is that waste should be minimised through good design, finishing and quality. • Conformance with health & safety standards: Finally, the treatment of wood and the use of chemicals that go into making plywood and medium density fibreboard (MDF) must conform to health and safety requirements. Borax is traditionally used to treat rubber wood against fungal growth, but the European Union (EU) has banned its use to avoid health risks to humans. Countries like Germany, Denmark, Japan and the US impose formaldehyde emission limits as urea formaldehyde-based glue emits formaldehyde, and excessive exposure to the chemical is harmful to health. R&D is now developing alternatives so that furniture manufacturers do not use a banned chemical. The Forest Research Institute of Malaysia (FRIM) is perfecting a
thorough kiln-drying method as an alternative to borax. Manufacturers are also switching to natural finishes, recycled products, water-based stains and glues.
“My company started going green two years ago. Employees and workers throughout the supply chain must know why this is important.” – Richard Lee, president of Malaysian Furniture Industry Council (MFIC)
An area in which Malaysia has moved rather slowly is forest and chain-of-custody certification. The International Forestry Review quoted a 2007 study which indicates that wooden furniture manufacturers were not ready to adopt chain-of-custody certification, citing lack of price premiums, limited market potential and high costs as primary reasons. Nevertheless, Malaysian furniture has the option of being certified under the Malaysian Timber Certification Council (MTCC) operated by the Malaysian Timber Certification Scheme (MTCS), which provides independent assessments of forest management practices within the country and aims to meet the demand for certified timber products. Malaysia exports furniture to more than 160 countries, with the biggest markets being the US, Japan,
UK, Australia and Singapore. Exports average RM7 billion (US$2.3 billion) to RM8 billion a year with the US market making up about 25% of that. Au says green labels are more focussed on upstream processes. Buyers are increasingly asking that primary products such as logs and plywood be certified, although most of them do not yet enquire about the origins of wood in finished furniture. As they become more environmentconscious, many will demand these requirements, especially in Europe. Malaysian manufacturers looking to tap into the green furniture market will have to absorb higher raw materials costs for now. “While the costs are higher, raw material prices will decrease with economies of scale and be more cost effective. Water-based stains that used to cost 30% more have reduced by about 15% now that more people are using it,” says Lee. “Obviously, environment-friendly furniture sells – if people don’t mind paying a bit of a premium. No brand as such has been developed yet. It’s more like anticipating a future challenge. We are at the level of awareness,” adds Au. Lee says: “It’s important for us to nurture the view that Malaysia is the place to go to for green products – that Malaysia is producing green furniture.” The key factor is that furniture makers believe in being green and start to use sustainable raw materials. Opportunities for Malaysian furniture will be enhanced once a more sustainable image is established. •
information
China plans to double its installed capacity for solar photovoltaic (PV) power generation to 10 GW by 2015. The target in the 12th Five-Year Plan for renewable energy development will have to be approved by the China State Council, reports Industrial Info Resources. The original target in the draft plan was 5GW. China is the world’s largest producer of PV products but it exports 95% of them. IIR says Italy’s decision to cut down its import of Chinese PV products has led to large stockpiles and dropped prices.
McDonald’s to serve sustainable fish in Europe From October, McDonald’s in Europe will only serve fish that has been caught sustainably. All its Filet-o-Fish sandwich wrappers will carry the blue ecolabel of the Marine Stewardship Council (MSC). Last year, the company sold 100 million Filet-o-Fish in Europe. McDonald’s has 7,000 outlets across 39 countries in Europe. This is one of the highest-profile marine ecolabeling deals ever announced, says Huffingtonpost.com. The MSC, a nonprofit organisation, will receive 0.5% of the cost of the 100 million frozen filets it certifies.
Plant a curtain to keep cool With power shortage looming in the summer due to the Fukushima nuclear power plant disaster, the Japanese are going back to the basics on how to keep cool – plant “curtains.” The Tokyo metropolitan government started distributing seeds at parks and public facilities in May to encourage planting. The authority expects green curtains to lower indoor temperatures by up to 1.7ºC. Toilet fittings manufacturer TOTO Ltd grew a green curtain of •
China doubling solar PV power by 2015
In Hovsore, Siemens has installed its first prototype of the new wind turbines with a power rating of 6 MW and a rotor diameter of 120 meters
Lighter offshore wind turbines Siemens Energy has installed a prototype offshore wind turbine in Hovsore, Denmark, that is lighter than any other similar capacity machines. The 6 MW SWT-6.0-120 has a rotor diameter of 120 metres; and is the third direct drive wind turbine developed by Siemens. The nacelle and rotor together weigh less than 350 tons. Chief technology officer of the Siemens wind power business unit Henrik Stiesdal says large wind turbines tend to be heavier per MW than small ones but the SWT-6.0-120 breaks this rule, having a weight per MW similar to that of turbines in the 2 MW to 3 MW range. A lighter wind turbine means cost savings; not just of the turbine itself but that of the tower and support structures. The company will install more of these turbines in 2012 and 2013 for tests and validation before it starts producing them for sale in 2014. (Sources: Rechargenews.com, Siemens)
goya, hechima (sponge cucumber) and morning glories that was 10m tall and 200m long outside its Oita plant walls last year. Temperatures inside the plant reportedly dropped by an average of 2ºC, and up to 5ºC.
Plásticos Romero now a Blue Angel Spain’s Plásticos Romero, which manufactures plastics and paper packaging for food products, is the first plastics firm in Spain to win the Blue Angel ecolabel for plastic bags. The award certifies that Romero’s polyethylene bags are made with 80% post-consumer recycled material. Romero won the ecolabel award in collaboration with the Spanish tech-
nical institute of plastics, AIMPLAS, which certified the recyclate used in its products. Romero will be investing 3.2 million euros to expand its products, including plastic sacks, bags and film. Output is expected to go up by 2% to 5%. Romero produces 35,000 tonnes of packaging per year and has an annual turnover of 60 million Euros. (Source: PRW.com)
57% US drivers will not buy EVs More than half (57%) of American drivers say they will not buy a limited range electric vehicle (EV), says a new Gallup survey. The USA Today commissioned study focuses on the impact of petrol prices on EV take-up. It says only around one in eight (12%) will consider buying an EV if petrol prices hit US$5 per gallon. Another 10%
terfeld-Wolfen, Germany, with offices around the world. Its first manufacturing plant outside of Germany is at the Selangor Business Park, Cyberjaya, Malaysia, with a 600 MWp manufacturing facility.
Newspaper wood in furniture collection
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Fancy making wood out of paper? Kranthout (“newspaper wood” in Dutch) is “wood” made from newspaper. The product was developed by Mieke Meijer and the prototype was first featured in Milan. Kranthout has
Fastest electric Formula 1 launched French companies FCI and Formulec have built an all-electric Formula 1, says EVUpdate.com. The electric vehicle can accelerate from zero to 96.5 kph in less than three seconds. With a top speed of 250 kph, it is said to be the world’s fastest EV. The new F1 will go on a world tour this year. The two companies are planning an all-electric F1 racing series in 2012. will go electric only if the price hits between US$6 and US$8 per gallon, and an additional 9% if it goes into the US$8 to US$10 range.
Google has largest corporate EV charging network in US Google claims to have the largest electric vehicle (EV) charging network in the United States at its Mountain View campus, with over 220 chargers in place and another 250 to be set up soon, to make 5% of its campus parking EV-ready. The charging stations will used by staff-owned electric vehicles, and by GFleet, Google’s employee car sharing programme, which includes Chevrolet Volts and Nissan LEAFs. The stations are searchable on Google Maps. The company hopes this will encourage more people to buy EVs, and estimates that its efforts will save 5,400 tonnes of CO2 a year – or the same as taking 2,000 cars off the road. Google will manage its charging stations via Coulomb Technologies’ ChargePoint
Network, which offers access using smartcards. It can also track and report energy use, and greenhouse gas and fuel savings. (Source: news.CNET.com and www.engadget.com)
World record-setting solar cell with 19.5% efficiency Q-Cells SE has achieved a recordbreaking 19.5% efficiency for its polycrystalline solar cells, using its own Q.ANTUM cell concept. The efficiency rate for an area of 243 sq cm was confirmed by an independent calibration laboratory of Fraunhofer ISE (Institute for Solar Energy Systems) in Freiburg, Germany. The record breaker is a polycrystalline, 180-μm-thick silicon wafer with a rear of “dielectric layers combined with local contacts” that improves the solar cell’s optical and electrical characteristics, compared to the previous technology, which uses an aluminium rear. Q-Cells is headquartered in Bit-
since also been featured at the Material Sense, Dutch Design Week, as part of design company vij5’s collection. The individual pages of the newspapers are rolled together with a special machine to produce tabloid sized “logs”, which may be cut, milled and sanded, just like real wood. Aesthetically, the layers of paper appear like wood grain or rings of a tree. The designers are working on even more types of furniture from it. The “wood” can be recycled; and the glue that binds the sheets of newspaper together can be separated from the paper. See www.vij5.nl/Vij5_ collection-NewspaperWood.html
Phoenix Solar sets up subsidiary in Malaysia Germany’s Phoenix Solar has set up a subsidiary in Kuala Lumpur, Malaysia, to offer products and services such as stand-alone PV systems and buildingintegrated solar plants. Its Singapore branch has already completed two projects in Malaysia – a rooftop plant with 169 kWp built on a factory building and a 71 kWp plant installed on the roof of a governmental building. The entry into Malaysia follows an announcement by the ministry of energy on the introduction of feed-in tariff (FiT) for PV plants from this year. •
Luxury boutique resort Aleenta Phuket-Phang Nga won the AsiaPacific Hotel Awards 2011 for “Best Small Hotel” and “Best Sustainable Hotel” in the Thailand and Asia-Pacific categories. It will compete against other regional winners from Africa, the Americas, Arabia and Europe for the “World’s Best Small Hotel and Sustainable Hotel” title in January 2012 in London. The hotel pioneered a coral regeneration programme through the Pure Blue Foundation and was active in the nurturing of endangered leatherback turtles.
Hanwha SolarOne Co, Ltd, a vertically-integrated manufacturer of silicon ingots, wafers and photovoltaic cells •
Shell to convince Alberta on storing CO underground
Australia’s wind farm largest in south hemisphere
German firm ties-up 16 MW PV plant contract in Thailand
Hanwha SolarOne obtains 525m yuan syndicated loan
and Sai Thong solar parks will have capacities of 9.7 MW and 6.2 MW, and together produce more than 25,000 MWh a year, the PV systems integrator says. The PV facilities will be built using 67,000 Schott solar modules and inverters from SMA. Thailand’s Process Engineering Services will carry out construction work and the plants are due to begin supplying local utility Provincial Electricity Authority by year end. (Source: Rechargenews.com)
After facing Dutch rejection, Shell will now try to convince Canadians on why underground carbon storage is safe. The Netherlands refused to allow the oil giant to store carbon dioxide underground near the small town of Barendrecht. Reuters says energy companies want to show they can burn coal and gas, and yet meet climate targets by trapping CO2 and pumping it underground. The process is untested on a commercial scale. “It is clear that we need to tell the story better about why onshore storage would be helpful. We have worked very, very hard with the local communities in Alberta,” Graeme Sweeney, head of CO2 at Royal Dutch Shell told Reuters Global Energy and Climate Summit. Shell plans to increase production from oil sands in Canada that emits 5% to 15% more CO2 than normal production. Sweeny says a carbon capture and storage project will help eliminate the extra emissions.
Bioplastics production to double in four years The world bioplastics production capacity is expected to double from 700,000 tonnes in 2010 to 1.7 million tonnes in 2015. The capacity is predicted to pass the one million tonne mark this year. A study by industry association European Bioplastics and the University of Applied Sciences and Arts of Hanover shows production capacity exceeding 900,000 tonnes in the first half of this year. Bioplastics is used in packaging, car manufacture, toys, carpets and electronic components. European Bioplastics says while Europe is the leader in research and development and the largest market for bioplastics, production facilities are growing significantly in Asia and South America. (Source: www.packwebasia. com)
and modules in China, has obtained a three-year loan for working capital in the amount of 525 million yuan from a syndicate led by Bank of Shanghai. The other members of the syndicate were Shanghai Commercial Bank of Hong Kong and The Shanghai Commercial & Savings Bank of Taiwan. The agreement provides for loans in both US$ and RMB. Partnering with third-party distributors, OEM manufacturers and system integrators, Hanwha SolarOne serves the utility commercial/ government and residential markets.
Germany’s Phoenix Solar has won a contract to supply Solarta, which is owned by Yanhee Solar Power, with two grid-connected PV power plants in the north-west of Thailand. The plants at the Sai Yai
Aleenta Phuket best Asia Pacific sustainable hotel
Australia will soon have its biggest single-stage wind farm with carbon offsets equivalent to planting one million trees, reports The Australian. The A$750-million Collgar Wind Farm at Merredin, Western Australia, will be able to power 125,000 homes with its 111 Vestas V90 turbines once it is ready in the next few months. Collgar, which sits on 18,000 ha, is 206 MW compared with Victoria’s Waubra of 192 MW. South Australia’s Lake Bonney wind farms generate 278 MW but were built as several projects. In two years, however, Victoria’s 420 MW Macarthur wind farm will overtake all. Collgar was developed by Swiss-based investment bank UBS and Australia’s largest superannuation fund, REST. The project is financed by Australia’s four major banks, ANZ, NAB, Westpac and Commonwealth Bank as well as West LB and the Danish Export Credit Agency, Eksport Kredit Fonden (EKF).
Egypt wind power capacity may exceed 3 GW by 2016 Egypt may produce as much as 3,040 MW of wind power by 2016 as it seeks to expand its use of renewable energy sources, reports Bloomberg. It will also exempt imported components used in the renewable energy industry from
duties to encourage investment in the field, says Electricity and Energy Minister Hassan Younes. Egypt now generates 550 MW from wind energy. It plans to generate 20% of its energy needs from renewable sources by 2020, of which 12% (7 GW) would come from wind power, according to the ministry.
Knowledge & networking
JULY
2nd Annual Cleantech Investment World Asia 2011 11-14th July 2011 Singapore www.terrapinn.com/2011/clean-technology-investmentworld-asia
Bosch sets up solar plant in Penang Germany’s Robert Bosch Gmbh is setting up a RM2.2 billion (US$725.6 million) solar photovoltaic (PV) plant in Batu Kawan, Penang, Malaysia, with construction to begin soon, and to be completed by 2013. The plant will be owned and managed by the Malaysian unit, Robert Bosch Sdn Bhd. The plant will serve the ASEAN market as well as complement Bosch’s seven other plants in Europe. Asia is a net producer for solar PV but Robert Bosch (Southeast Asia) Pte Ltd president and managing director Martin Hayes says the Asian market will grow by 30% a year. The plant will strengthen Malaysia’s position as the third largest solar hub in the world. Bosch’s 640 MW capacity plant will make the entire range of solar products, from wafers to modules.
Green Lifestyles Asia 15-17th July 2011 Suntec Convention Centre, Singapore www.greenlifestylesasia.com
AUG
Green Automobil 2011 Expo 10-12th August 2011 Pragati Maidan, New Delhi http://greenautomobil.com
SEPT
2nd Biomass Pellets Trade Asia 7-8th September 2011 Sheraton Grande Walkerhill, Seoul, Korea www.cmtevents.com/aboutevent.aspx?ev=110917& iGEM 2011 (2nd International Greentech and Eco Products Exhibition & Conference Malaysia) 7-10th September 211 KLCC, Kuala Lumpur www.igem.com.my/2011 Electric, Power & Renewable Energy Indonesia 2011 21-24th September 2011 Indonesia www.pamerindo.com/events/4 2nd Annual Green Tech Asia 26-27th September 2011 Kuala Lumpur, Malaysia www.comfori.com/greentech
Caparo energy raises US$78.5m funds Wind-based power producer Caparo Energy India has raised US$78.5 million by issuing preferred shares to the Indian Infrastructure Fund managed by IDFC Project Equity Company. The mezzanine funding is for a six-year term and will help the company finance projects with a combined capacity of around 700 MW, said Ravi Kailas, the company’s chief executive. The interest rate is around 14%. “Only when we fail to repay at the end of six years will IDFC get a minority stake in the company,” said Vikram Kailas, company chief financial officer. Caparo India has a current capacity of around 100 MW. It will generate an additional 750 MW in several states.
5% discount for Green Data Center Conference GPA subscribers 11-12th July 2011 Hotel Istana, Kuala Lumpur, Malaysia www.comfori.com/datacenter/
3rd Annual Sustainable Cities 2011 27th–30th September Singapore www.sustainablecitiesasia.com
OCT
10% discount for GPA subscribers
China Wind Power 19-21st October 2011 New CIEC, Beijing, China www.chinawind.org.cn/home.html Eco Expo Asia 2011 (International Trade Fair on Environmental Protection) 26-29th October 2011 AsiaWorld-Expo, Hong Kong www.hktdc.com/fair/ecoexpoasia-en/Eco-Expo-Asia-InternationalTrade-Fair-on-Environmental-Protection.html
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The two publications under review were published by the Association for Sustainable & Responsible Investment in Asia (ASrIA) as part of the Low Carbon Investment in Asia (LCIA) project. Sponsored by the UK Foreign & Commonwealth Office, the Unlocking Asia’s Potential reports comprise Climate Change Risks and Opportunities Across Six Sectors and Integrating Climate Change Criteria into Investment Decisions. Both were released early this year.
Unlocking Asia’s Potential: Integrating Climate Change Criteria into Investment Decisions ASrIA
investment decision process within the context of climate change concerns so that capital is mobilised to tackle challenges of Asia’s shift to a low-carbon economy. In support of this, ASrIA proposes to launch the Asia Investor Group on Climate Change (AIGCC) and seeks support and founding members for this initiative. ASrIA is a non-profit, membership association dedicated to promoting corporate responsibility and sustainable investment practice in the Asia-Pacific region. It has been working with institutional investors in Asia for over a decade now, and its members include investment institutions managing over US$4 trillion in assets.
Unlocking Asia’s Potential: Climate Change Risks and Opportunities Across Six Key Sectors ASrIA
This volume addresses Asian investors’ growing need to integrate climate change opportunities and risks in calculating their returns on investment. The two objectives of this report are: a) to provide a summary of several climate changerelated investment analytical frameworks developed by the industry’s global thought leaders, such as US-based Investor Network on Climate Risk (INCR), DBCCA (Deutsche Bank Climate Change Advisors) and Goldman Sachs; and b) to propose ways of framing the •
hai, Hong Kong, Singapore and Mumbai. Climate change risks and opportunities are highlighted for six sectors – Information Technology (IT) & Mobile Communications; Transport; Property & Construction; Agribusiness; Energy; and Finance. Other information and tools include a breakdown of value chain carbon intensity across six sectors; descriptions of five investment risks categories (physical, regula-
Global low-carbon energy investment more than doubled in the last five years to US$243 billion in 2010, a confirmation that climate change concerns have become a key driver in major investment trends. This report calls attention to the need to examine the implications of climate change on investment. In a background study for this report, ASrIA interviewed Asian investment experts and found that their interest level in climate change investment implications were not matched by knowledge levels to enable them to make informed decisions. For this reason, climate change analytical frameworks included here were developed and refined through meetings with investment experts in Shang-
tory, litigation, competitive and reputational); examples of climate change investment products; regional sources of data for decisionmaking; and an overview of climate change-related regulatory developments. For investors seeking to engage with companies in constructive dialogue, there is a chapter of investor questions for companies, based on the Carbon Disclosure Project process.
Clean Tech, Clean Profits: Using Effective Innovation and Sustainable Business Practices to Win in the New Lowcarbon Economy Adam Jolly
This book assesses the role of innovation in developing profitable business strate-
gies. Through sustainable initiatives, green policies and a growing awareness of climate change, Clean Tech, Clean Profits offers expert commentary on effective and profitable practice in the world’s new low-carbon economy. Ideas for switching to a low-carbon world are bound to take numerous forms: they could be new breakthroughs or a reworking of existing techniques; a flash of insight or a response to regulatory or consumer pressure. Jolly believes that for businesses, the challenge is to find a way of commercialising these ideas. Although their scale can be small and the set-up costs high, the overall potential of this shift is enormous, as evidenced by the amount of private capital and public funds looking for clean technology to invest in. With its extensive selection of case examples from clean industry sectors, this is a practical guide for entrepreneurs, innovators, designers and investors looking to bring clean technologies to market. Drawing on a wide range of expertise and experience in strategy, technology, branding, intellectual property, design and finance, it provides clear insight on how companies can best position themselves in this industry.