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Creating Water Solutions Celebrating 25 years in South East Asia, Veolia Water Solutions & Technologies is a leading Design & Build company and a specialized provider of technological solutions in water treatment. Veolia provides in Asia unique water, wastewater & reclaim solutions from process design to complete turnkey installation and associated services services. We address economic and environmental challenges by optimizing water treatment plants performances, developing alternative resources and by taking steps to reduce the environmental footprint of our activities. We are committed to operate our business to the highest environmental standards.
Service, Value, Responsibility
Service Whether we are focused in asset management, customer care, energy efficiency, smart networks, environmental risk management, or other aspects of our business, we are capable of innovating and differentiating ourselves by pooling our expertise, sharing the experience among our businesses, and formalizing new offers for premium quality services.
Value We have the expertise to leverage the value of everything found in water or wastewater for our clients’ and our benefit. We can treat wastewater and reuse it, desalinate seawater, produce or recover energy, extract raw materials or phosphorus reused as fertilizer, and recover valuable byproducts. We should even be able to turn our sanitation plants into biorefineries.
Responsibility As part of Veolia Environnement we have a social and A e environmental responsibility to uphold. Our carbon and water footprint initiatives are not mere empty words, but a genuine corporate management priority. Internally, our responsibility is revealed by our actions on safety at work, human resources, diversity, and creating a culture of pride in working for Veolia.
Info-sea@veoliawater.com www.veoliawaterst-sea.com
© - ALSTOM – Being
COMMITTING FOR TOMORROW A global leader in equipment and services for the power generation, power transmission and rail transport markets, Alstom has placed sustainable growth at the centre of its strategy, by developing innovative, environmentally friendly technologies. Each day, Alstom’s employees, spread throughout more than 70 countries, work to make our future better.
www.alstom.com
Ź TOM Ź ŵ Ÿ 5th Floor, Chulan Tower, 3 Jalan Conlay, 50450 Kuala Lumpur, Malaysia Tel: +60 3 2055 6000 Fax: +60 3 2161 7788
Contents
From the managing editor’s desk
5
Buy into a green future
6
OPPORTUNITIES
7
Down goes the diesel
7
cover
Singapore grows its global hydrohub (see pages 12–27)
1.5-generation ethanol is expected to become the mainstream biomass fuel in China over the next five years
8
GE to flex muscle in Asian small-power market “We just think of the gigawatts of power that will be added in Asia in the next five years.”
Singapore hydrohub makes waves
Darryl Wilson, GE Energy president
Primed and FiT for solar PV expansion
10
14
“They come here to use us as a springboard (to Asia and the Middle East).” Goh Chee Kiong, EDB cleantech director
Drivers of the hydrohub
Hybrids the darlings of China’s motor trade Most automakers in China are stocking up on hybrids, pure EVs and even fuel battery technology vehicles due to uncertain government policies
11
18
“We must constantly innovate to keep in tandem with emerging needs.”
22
Hyflux CEO Olivia Lum’s company is building the world’s largest seawater desalination plant in Algeria
Water treatment market potential runneth over
24
China, India, Indonesia, Philippines and Thailand are the most attractive markets for water and wastewater treatment equipment from 2011 to 2016
Michael Toh, PUB director of industry development
Research breakthroughs
Water projects that broke new ground
Micro-electronics drive ultrapure water market
26
20
Some start-up companies like Membrane Instruments and Technology Pte Ltd (MINT) are commercialising their inventions
•
PanaHomes
(see page 34)
CASE STUDIES
28
PEOPLE
40
Kaohsiung morphs from black and grey to green
28
Renewed zest for concentrated solar
40
“The people must believe in what you are hoping to achieve, and lend their support.”
New Delhi’s Terminal 3 achieves LEED Gold rating
30
Mega storage battery in Shenzhen
31
Energy man who walks the talk
Why greenies hate the hard-sell
48
INFORMATION
49
Fossil fuels propped up with US$409 billion
49
How Singapore upped the ante on liveability
50
Sustainable living: Preserve of the rich?
51
Hybrid, electric cars make little inroads in India
53
No plug-and-play for solar
54
32
Veolia Water Solutions & Technologies builds revolutionary wastewater treatment plant
42
34
India’s ecotourism guided to takeoff point
38
Global 500 bottomline: Green is the new black
55
“Good management of climate change is a sympton of good management.” Marcus Norton, head of Investor CDP
EDITORIAL
Building, building, built in a single day
Emmanuel Guyot of Conergy Renewable Energy on the pitfalls of solar PV investments
IEN Consultants associate director Gregers Reimann shares his passion for environmental protection
China’s largest energy storage station ready for commercial use
•
46
ABB’s group senior vice president Franz-Josef Mengede on project breakthrough in Spain
Lu Wei-ping, Kaohsiung City Government
L’Oréal enhances water treatment in Suzhou
Don’t let scepticism stifle your green efforts
44
44 Triangle of extensive eco-marine opportunities Energy efficiency 101 for IPOs
45
RSPO moves on without GAPKI
58
News briefs
60
Homework
64
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, G Danapal, Stephen Ng, Ngam Su May, Bhavani Prakash, Suvarna Beesetti, Tan Su-Yin, VK Shashikumar, Tejas Patel, Mallika Naguran Columnists: Shel Horowitz, Khoo Hock Aun, Ning Yu, Prasad Modak Marketing & sales Manager: Yong Wang Ching +6012 205 7928 Sam Thong (Malaysia) +6012 361 0617 Lim Wan Tsau (Singapore) +65 9068 0184 Email: marketing@greenpurchasingasia.com Creative & design Khoo Kay Hong, Faye Phua Szeu Hwui Production & advertising traffic Eddy Yap Subscription & circulation Yap Eng Jin, Jessica Lee 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 Cover photo: Gavin Hellier/Corbis Letters and articles are welcome, and should be addressed to: The Editor at Green Purchasing Asia 3-3 Jalan Solaris 2, 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.
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From the managing editor’s desk David Lee Boon Siew boonsiew@ greenpurchasingasia.com
I first heard of NEWater eight years ago. Singapore’s brand of water, reclaimed from sewage and other tainted sources, bore the brunt of jokes that year. Adverse consumer reaction was to be expected. The Singaporean government faced the challenge headon with a well-orchestrated public relations campaign that turned the tide from rejection to acceptance. The iconic photograph from that year was of the then prime minister swigging from a bottle of NEWater. Now, within eight years, enough NEWater is being produced to meet 30% of the island nation’s water demand. The target is to push it to 50% in 50 years (when demand would be significantly higher), something that will take the best that filtration technology can offer. Singapore’s experiment with reclaiming used water actually started in 1974, but astronomical technological costs and unreliable membranes caused the project to be shelved, only to be revived in 1998 when research breakthroughs drove costs down. By 2000, the first NEWater plant was completed. NEWater and seawater desalination are at the forefront of Singapore’s water technology. They have helped reduce dependence on raw water imported from water-rich Malaysia, a subject that has historically seen much bad press. Singapore’s first treaty with Malaysia (signed in 1961) to draw on its water ended early this year. The fact that that was uneventful – there was no impact on Singapore – was an unspoken national pride. The second treaty ends in 2061. Our cover really pays tribute to a water-starved nation’s ability not
only to rise above its predicament, but also to build an empire from its technological know-how and expertise in water management. Internationally, Singapore is today being spoken of as a Silicon Valley for Water, where some of the world’s biggest water players and even IT companies have converged to test-bed new technologies that will make water treatment cheaper, most efficient and less energy-intensive. There is huge economic potential in water management, but the problem of water shortage is most pressing in some of the poorest nations on earth. These are countries that cannot afford expensive water projects, and financing is thus an area that water companies need to creatively explore. If Singapore took nearly four decades to be the hydrohub it is today, Taiwan’s Kaohsiung took 50 years to become an industralised city and in the process fouled up its environment. The last ten years saw its transformation into a green city and the city administrators did such a good job that the city was listed among the top 100 liveable cities under the Mercer Global Liveability Index. Well done, Mayor Chen Chu. The other interesting story in CASE STUDIES is a Japanese technology built on speed of delivery. Panasonic’s construction company PanaHome is going big on its concept of instant homes – houses that can be built in a day using pre-fabrication. We are told a PanaHome built last year could save up to 2.1 tonnes of CO² emission a year. What will they come up with next?
Next issue: Tianjin Eco-City: Practical and replicable Tower cranes dot the skyline today, indicating the feverish pace of development of China’s first integrated eco-city. Green Purchasing Asia travelled to Tianjin to bring you the progress report. •
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
Down goes the diesel Chinese biochemical diesel target to drop, replaced by biomass fuel University don suggests government drive biofuels development
1.5-generation ethanol is expected to become the mainstream biomass fuel over the next five years age of raw materials, especially that of waste grease. Furthermore, as the country imports 70% of its edible oils and 55% of its petroleum, it becomes much more difficult for the country to aggressively drive the development of the biochemical diesel oil sector, due to its reliance on imported raw materials. According to Liu, it is difficult to predict what the consumption patterns for 1.5-generation and secondgeneration grain ethanol in the country will be in the next five years. In China, cassava or sweet sorghum-based bioethenal is termed “1.5-generation ethanol”, indicating the use of starch
China has upped its annual consumption target for ethanol fuel to 5 million tonnes while dropping that of biochemical diesel to 1 million tonnes for the next five years. A spokesman for the National Energy Administration says this is an increase of 2 million tonnes and a drop of 500,000 tonnes, respectively, from the targets disclosed at an earlier national rural energy working conference. Director and professor at the Institute of Applied Chemistry, Department of Chemical Engineering at Tsinghua University, Liu Dehua, says when the Chinese government last set targets five years ago, the annual consumption target for non-grain ethanol fuels was set at a modest 2 million tonnes. However, even that target was difficult to reach as only 1.8 million tonnes of the fuel was consumed last year. As for biochemical diesel, the country revised its annual consumption target for the next five years downward, mainly due to supply short-
Cassava roots: Sweet potato, sugar grass and cassava are raw materials for 1.5-generation ethanol
crops in contrast to second-generation ethanol, which is produced from cellulosic raw material. However, as second-generation technology has not been industrialised in China, it is not likely to develop as the mainstream technology within the next five years. Meanwhile, 1.5-generation ethanol is expected to become the mainstream biomass fuel over the next five years. Liu also says he expects the Chinese biomass fuel sector to grow faster in the next five years compared with the previous five, and listed the following reasons: • Both domestic and foreign pressure to address climate change issues will force the Chinese government to prioritise the development of renewable energies including biomass. • The fact that fossil fuels are being consumed faster than they can be replenished alerts mankind to the necessity to develop renewable energies. • As both the government and general public pay more attention to renewable energy, a substantial amount of capital, including government subsidies and private investment, is expected to flow into the research and development (R&D) of biomass fuel-related technologies, which will directly drive technological improvement across the sector. • With these technological improvements leading to sustainable decreases in biomass fuel costs, consumers will start to choose the more affordable fuel. Accordingly to Liu, the Chinese government should drive the development of the country’s biomass fuel sector with these steps: • Reinforce policy guidance efforts and increase financial subsidies, and put in place mandatory standards. • Increase capital investment, both at the government level as well as from the private sector, in technology R&D and in pilot projects to industrialise the process. • Open the market to imports of biomass fuels, as that would help build and expand China’s biomass fuel market, and promote development across the sector. – Nanjing Shanglong Communications •
GE
opportunities
The 50 MW FlexAero engine is touted as clean, fast, efficient, flexible and compact – the best in its class
GE to flex muscle in Asian small-power market Bangkok launch pad for GE’s new aeroderivative gas turbines More people hired in Asia, parts warehouse set up in Singapore
By Ann Teoh
General Electric (GE) is wooing Asia for its latest aeroderivative gas turbine, known as the FlexAero. Aeroderivatives are turbines derived from aircraft engines. Following a mid-September soft launch in Houston, senior executives flew out to Bangkok for a premiere to promote the 50 MW engine, touted as clean, fast, efficient, flexible and compact – the best in its class. The FlexAero is the second machine in the company’s FlexEfficiency portfolio of products, the first being the 510 MW FlexEfficiency 50 Combined Cycle Power Plant launched in May. In Bangkok, senior executives worked over three days to convince hundreds of stakeholders – existing customers, potential ones who have yet to purchase GE products, and end-users from China, Japan, India, Indonesia, Thailand and Australia – of the value of the new machine. The GE •
executives then connected with more potential customers in Beijing before arriving in Kuala Lumpur to launch the product once more at the POWER-GEN Asia 2011 trade show. GE Energy president and CEO for aeroderivative products Darryl Wilson says: “We just think of the gigawatts of power that will be added [in Asia] in the next five years – it’s a significant opportunity. And if you look at Thailand, in the next three to five years there will be 29 [gas power generation] projects, with up to 80 products in our size category. We consider our equipment, uniquely structured, to be good solutions for these opportunities happening in Thailand in the next three to five years.” Wilson is quick to add that while GE has yet to receive orders, these 29 projects have been awarded and are going to procure equipment. According to Wilson, the company
is also eyeing places like Indonesia, with its growing energy requirements and demand for gas-fired generation, and Australia, with its power distribution needs across extensive mining operations. The exact size of the Asia-Pacific market, however, is still coming into focus. “It’s difficult to quantify but we know it’s substantial,” Wilson says. “In Thailand, it’s easier because the SPP3 opportunities are well-publicised.” SPP3 are small power producers set up to support Thailand’s industrial parks. Wilson also acknowledges that China is a key target market, with its enormous power needs and with natural gas becoming more available in the country. China recently completed a major line of its second west-east natural gas transmission pipeline.
Double resources To capture the Asian market, GE Energy has doubled its resources in Asia in the last 24 months, in terms of commercial resources as well as technical resources such as applications engineers, combined cycle plant engineers and project executives. “We have sold the equipment here, so we have to do the escalation and commission,” says Wilson. “We have also opened a Level 2 Service facility in Perth because we have a large fleet in Australia. Level 2 is a middle-level service capability in the region, where you can disassemble a gas turbine, take out the parts and ship them off for repair. That is a significant investment. “We have also set up a parts warehouse in Singapore where we have aeroderivative parts in significant quantities, so when our customers have parts requirements, it does not take six or eight weeks to deploy the parts. We have made significant investments in inventory and we will continue to invest and add resources in appropriate places.” Strong fit in the region With natural gas expected to make up 40% of power generation additions in China and the Asia-Pacific region from now through 2020, GE sees its new launch as a “strong fit” for the region’s needs. While turbines typically need water to dilute their carbon dioxide
GE
GE product launch at POWER-GEN Asia 2011. (L-R) Kenji Uenishi , Darryl Wilson, Yoshihiro Aburatani and Paul Browning admire the FlexEfficiency 50 model
GE and Toshiba team up for synergistic expansion General Electric and Toshiba signed a memorandum of understanding (MoU) in September to bring GE’s FlexEfficiency power plant technology into Japan and other Asian countries. The MoU was signed at the sideline of POWER-GEN Asia 2011 and the Kuala Lumpur launch of GE’s new aeroderivative gas turbine. The two companies have agreed to promote new combined cycle power plants with GE Frame 9FB gas turbines incorporating FlexEfficiency technology and Toshiba’s high-efficiency steam turbine-generators. Specifically, the MoU involves Toshiba bringing two units of FlexEfficiency models into Japan by 2014, president and CEO of thermal products for GE Energy Paul Browning told Green Purchasing Asia. Browning says: “In the Japanese market, it is helpful [for GE] to have a partner in Japan. They have a great relationship with the Japanese customers. We have been working together in Japan, and this is the preferred (alliance) model for executing combined cycle power plants in Japan. This MoU is signed to bring FlexEfficiency into that model.” The 9FB gas turbine is a reliable base load machine that is fuel-efficient, clean and scalable. “Toshiba has delivered turnkey solutions geared by its efficient steam turbines for several of GE’s gas turbines
GE
and nitrogen oxide emissions, Wilson points out that the FlexAero’s dry low emissions (DLE 2.0) technology, which enables it to operate without water, will help relieve stress on Asia’s water resources and is thus suitable for dry countries like Australia. The turbine can also operate offgrid, making it useful in remote areas. Once on site, it can be up and running in under 70 days. Each unit can power about 60,000 houses. Wilson also boasts of the turbine being able to reach full power in five minutes – the time it takes to brew a cup of coffee. The ramp-up rate is 50 MW per minute, allowing it to meet fluctuations in demand in near-real time. The turbine is just about the size of a van and, once mounted and packaged, occupies an area 10 m long and 5 m wide. With its flexibility, speedy firing-up time and compact size, the FlexAero is suitable as a backup for hospitals, airports, factories or utilities, and can be used in disaster situations. Wilson adds that as Asian countries invest in renewable energy such as wind and solar, they will need to complement these sources in times “when the wind doesn’t blow and the sun doesn’t shine.” Also present at the Kuala Lumpur launch of the FlexAero was Kenji Uenishi, president of GE Energy, Asia Pacific. He, too, highlighted the importance of flexible and reliable power generation in the drive towards higher renewable energy use. “As ASEAN countries start looking to future energy solutions to keep up with the region’s growing economy, many ASEAN governments are already putting in place policies to encourage the development of renewable energy such as wind, solar, biomass, as well as geothermal. We already have seen great demand for the FlexEfficiency 50 from markets like Harbin in China,” says Uenishi. While the FlexAero engine is standard, the package can be customised to meet local codes and standards, and be paired with differentcapacity turbines. It is manufactured at the GE Aviation facility in Cincinnati, Ohio, and packaged either in Houston, Texas, or in Budapest, Hungary.
FlexEfficiency 50 Integrated Renewables Combined Cycle Power Plant
in many countries in Asia and the Middle East,” says Yoshihiro Aburatani, general manager for the Thermal & Hydro Power Systems & Services division of Toshiba. GE and Toshiba have worked together for over 80 years, including nearly 30 years in the gas and turbine industry. The two companies have installed 31 gas turbines in Japan, totalling 7,993 MW. Toshiba also has a joint venture with GE to provide repair services for gas and steam turbines in Japan.
•
opportunities
Primed and FiT for solar PV expansion China’s benchmark prices guarantee profits, encourage participation in industry Home-grown giants like Hanergy and Suntech positioning to benefit
more companies to participate in the industry, says an industry observer. Some industry analysts foresee solar tariffs varying by region, as is happening with the country’s FiT for wind farms. It is probable that China’s solar tariff rates will depend on the solar
10 GW China’s target of installed solar PV capacity by 2015
resources available in each region, with less sunny areas meriting higher rates to encourage the development of projects that would otherwise deliver lower returns. PV projects in solar irradiation-rich regions, including northwest China’s Qinghai province and Ningxia Hui Autonomous Region that enjoy more than 3,000 hours of good sunshine a year, should expect bet-
China’s National Development and Reform Commission (NDRC) has announced benchmark feed-in tariffs (FiT) for solar photovoltaic (PV) facilities in a move to boost profit and investment in the sector. Grid operators will pay solar developers 1.15 yuan/kWh (approximately US$0.18/kWh) for projects approved prior to July 1st, 2011 and completed by December 31st, 2011. Facilities across the country approved after the July 1st deadline (excluding those in Tibet that will continue to receive the 1.15 yuan price guarantee) but not completed by year end will receive only 1 yuan/kWh. Under the NDRC’s two rounds of competitive bidding in 2009 and 2010, companies with the lowest feedin tariffs (FiT) were given approval to proceed. The installed capacity of solar PV stations across China reached some 600 MW in 2010 and is expected to top 1 GW by the end of 2011. The benchmark tariffs guarantee profit margins and will encourage
Installing solar PVs at the Beijing National Stadium: China’s FiT systems may follow German and Italian models by cutting subsidies gradually •
ter returns on their investments than projects in more cloudy locales, such as Beijing, that receive less than 2,000 hours of sunshine annually. PV developers may seek better margins through technology upgrades. A question that every player is asking is whether crystalline or thin-film is better for power generation. Hanergy Holdings Group, a Chinese independent power generator, commenced its thin-film solar cell project in southwest China’s Sichuan province in June with a first-phase production capacity of 300 MW, quickly establishing a leadership position for itself. An executive at Hanergy says his company chose to go with thin-film as Hanergy already owns some of the proprietary technologies, and thin-film is also environmentfriendly, pollution-free and costeffective. The company is on track to become the world’s largest thin-film solar cell manufacturer with capacity exceeding 2,000 MW by 2011. In contrast, Suntech Power Holdings, the world’s largest crystalline silicon PV module manufacturer, ended its ten-year deal to buy silicon wafers from MEMC Electronic Materials, as falling silicon prices made the current contract unattractive. Suntech paid US$212 million to exit the deal. As thin-film solar cells enter into mass production, they may even replace conventional crystalline silicon. China is targeting 10 GW of installed solar PV capacity by 2015 and aims to increase the proportion of renewable energy as a component of overall primary energy consumption to 11.4% by 2015, according to a draft of the nation’s 12th Five-Year Plan (20112015) for the solar PV sector. Germany and Italy, the world’s two largest solar markets, account for 70% of global PV power demand. During the first half of 2011, the two countries reduced their PV solar subsidies, resulting in a contraction in global PV market demand and a dip in product prices. China, which produces half the world’s PV supply, accounts for no more than 5% of global demand. Cut-throat competition, insufficient subsidies and unattractive yields have dampened investor enthusiasm. – Nanjing Shanglong Communications
opportunities
Hybrids the darlings of China’s motor trade Existing systems to be improved, next-gen ones to be developed
Carmakers piling up inventory due to uncertain government policies
Toyota Prius, one of the imported hybrids making inroads in China
Over the next five years, hybrid vehicles are likely to be the most used new technology for cars in China. Joint venture brands have started scrambling for the Chinese hybrid vehicle market at a time when local automakers BYD, Chery and Zotye are putting their efforts into pure electric vehicles (EVs). Some market leaders, including Shanghai General Motors, FAW and Changan are ramping up their research and development on hybrid systems to learn and gain experience for the development of EVs. The infrastructure for pure EVs in China, including charging stations and support facilities, have not been properly set up yet. Unlike EVs, hybrid vehicles do not need special charging stations; they charge their batteries when they brake, and their internal combustion engines use gasoline. The fuel system in hybrid models also improve thermal efficiency by more than 10% over traditional engines, and reduce emissions by over 30% without compromising driving experience. With oil prices soaring and China’s new energy development plan in place, more and more automakers have identified hybrids as a priority although the sales of hybrid cars remain limited and public policies currently favour pure EVs. The subsidies available
Most automakers in China stocking up on hybrids, pure EVs and even fuel battery technology vehicles due to uncertain government policies to the buyers of pure EVs can reach 60,000 yuan (US$9,300) and 50,000 yuan, respectively. (For those who purchase a fuel-efficient car, government assistance is a paltry 3,000 yuan.) At the 7th International Forum on Energy-Saving and New Energy Automotive Innovation and Development recently held in Beijing, Zhang Jinhua, vice general secretary of SAE-China, stressed that as part of the overall development strategy for energy-saving and new energy vehicles industry for the next ten years, the country plans to optimise the existing powertrain systems to improve the energy-saving technologies of traditional cars, while developing next generation energy power systems to advance the development of new energy vehicles However, both hybrids and pure EVs will face the price challenge. A recent survey shows the majority of respondents would only buy a hybrid
if the price difference with a similar conventional model does not exceed 10%. Taking the Toyota Prius as an example, the price in China ranges between 230,000 and 293,000 yuan, about 50% higher than that of the Corolla, a similar model based on traditional technologies. Toyota believes it is necessary to reduce the price of the Prius in China to improve its market performance. In addition, 74% of respondents say hybrids should get government subsidies, while only 20% say otherwise. The survey also identifies inadequate government support, a monopoly on available technologies, and high prices to be the three barriers to the development of hybrid technology. More than 57% of survey respondents feel that hybrids are an important part of new energy solutions, and need strong government intervention while a third see hybrids merely as an interim product and deem government support unnecessary. For now, most automakers in China are stocking up on hybrids, pure EVs and even fuel battery technology vehicles due to uncertain government policies. Having various technologies on the ready while waiting for the government to come out with its development plan for energy-efficient and new energy vehicles is viewed by Chinese automakers as the best tack to take. The delay of China’s muchanticipated development plan has been blamed on the industry players themselves. At the recent 2011 International Forum on Chinese Automotive Industry Development, Ministry of Industry and Information Technology vice-minister Su Bo says the development plan has been repeatedly delayed because the industry players failed to reach a consensus. Sources had earlier said the latest development plan for the vehicles would be ready in October, with hybrids likely to be given the lion’s share of policy support, including tax cuts on the purchase of these vehicles, despite not being included in the green car subsidy programme put in place by the government last year. – Nanjing Shanglong Communications •
There are opportunities in every crisis. One key is to overcome weakness and, better, turn it into strength.
•
That was what water-stressed Singapore set out to do in 2006 when the island state embarked on a plan to turn itself into a global hydrohub. By then, it had amassed enough knowledge on how to solve its water problems to export that expertise around the world.
Today, many of the world’s top water companies are in Singapore, using its water facilities as a test bed for cutting edge technologies. Its homegrown companies are garnering mega projects overseas.
There’s more to do before Singapore can become self-suƧcient in water by the target date of 2060. Judging from the breakthroughs in research that are coming out of the hydrohub, the planners are pretty upbeat about their chances.
•
opportunities
Singapore hydrohub makes waves
Marina Reservoir: Formed in 2008 with the damming of the mouth of Kallang Basin, this is the largest of Singapore’s reservoirs. It started operations in November 2010, and provides 10% of the island’s needs. Its catchment area is onesixth the land area of Singapore
Singapore a test bed for industrial water solutions, especially on Jurong Island Water industry ecosystem also involves banks and IT companies
By David Lee
The Cantonese term for water is also a colloquial slang for money, which explains why some Chinese businessmen insist on having water features like koi ponds or fountains in front of their houses or office buildings. This association probably has its roots in Chinese geomancy or feng shui (literally “wind-water”), an ancient art of creating harmony and balance within an environment to boost health and wealth. To the Cantonese then, the island state of Singapore should swim in money, surrounded as it is by water. And their hypothetical expectation would not be too far off the mark, although this has not always been the case historically. This is because the island state is surrounded by •
saltwater, and had to depend mainly on its northern neighbour Malaysia for freshwater. It was water-stressed for decades and in the 60s and 70s, the people had to undergo water rationing. Determined to turn the country’s Achilles’ heel into a pillar of strength, the government diversified its water sources, prepared huge catchments to catch rain and runoff, plugged leakages from its network of water pipes and taught its people how to conserve water. It also rapidly developed its water technologies. By 2060, the country plans to be self-sufficient in water, with half of its supply coming from NEWater (its brand of reclaimed water), 30% from seawater desalination and the rest from a mix of other sources.
NEWater plant: By 2060, half of Singapore’s supply will be from this brand of reclaimed water
That date is significant, because by then, the country’s water agreement with the southern Malaysian state of Johor will expire. There is long-term confidence because advances in water technologies have brought down the cost of desalting water. Singapore has amassed so much knowledge and experience from trying to solve its water problems that it is now exporting that know-how. For five years now, it has branded itself as a global hydrohub, and has attracted the
biggest names in the water business to its shores. It is now tapping into a world water market that some quarters estimate to be worth some S$1 trillion (US$788 billion), a market size that is exceeded only by oil and energy. The hydrohub programme started in 2006 when the government announced that water would be a key growth area for Singapore and allocated S$330 million to build its research and development (R&D) capability in water technologies. At the annual International Water Week – another key initiative under the hydrohub programme – in July this year, the government added S$140 million to the earlier pot, which has not even been exhausted yet. Driving the global hydrohub project is the Environment and Water Industry Programme Office (EWI), an inter-agency effort led by the Public Utilities Board (PUB, or the national water agency), the Economic Development Board (EDB) and International Enterprise (IE) Singapore. The target is for the Singapore water industry to contribute S$1.7 billion to the nation’s GDP and create 11,000 jobs by 2015.
What’s the key ingredient in Singapore’s success in this area? In a recent interview with Green Purchasing Asia, EDB cleantech director Goh Chee Kiong put it down to PUB. “It’s very pro-business, which is, in our view, very unusual (for a water utility). It is pioneering in looking for innovations to solve our national challenges in water.” Besides doing its own R&D, PUB has conducted more than 100 pilot projects with water companies over the last five years, he says. “And that is a huge differentiation because generally, water utility companies are conservative. Their mandate is to provide drinking water. And you’d better not mess with water. If it is contaminated or tainted, the utility will be in trouble. PUB is a little unique in the sense that while it maintains its original mandate to provide safe drinking water at an affordable cost, it is always looking out for new technologies and willing to work with companies.” The result is that private companies think of PUB first as a customer or pilot project partner when they want to test their innovations. That’s a huge draw.
Upper Seletar Reservoir
MacRitchie Reservoir
Kranji Reservoir
Marina Reservoir
against future water demand. The reservoirs are Marina, Bedok, Jurong Lake, Kranji, Lower Pierce, Lower Seletar, MacRitchie, Murai, Pandan, Poyan, Pulau Tekong, Punggol, Sarimbun, Serangoon, Tengeh, Upper Pierce and Upper Seletar.
Singapore by 2012 would have 17 reservoirs with a total water catchment that represents two-thirds of its total land area. The future catchment target is 90%. The current reservoirs serve 20% of Singapore’s water needs, a percentage that remain constant
“Increasingly, we are hearing that companies are viewing us as a Silicon Valley for Water because of this wealth of different players in an ecosystem. You have technology players, financing players, R&D organisations
“Increasingly, we are hearing that companies are viewing us as a Silicon Valley for Water, because of this wealth of different players in an ecosystem.”
Upper Pierce Reservoir
Singapore’s reservoirs
Goh Chee Kiong, director, Cleantech, Singapore Economic Development Board (EDB)
•
opportunities
Singapore as a global test bed for water technologies
20
More than
environment and water research facilities are doing cutting-edge research, some with funding from government
70
major water companies have set up shop and research facilities
There were
94
test-bedding projects with PUB from 2006–2010
as well as think tanks and associations. For instance, the International Water Association’s Asian chapter is in Singapore. We set up a full-fledged water policy institute known as the Institute of Water Policy (IWP) that’s located at the Lee Kuan Yew School of Public Policy.” Goh says beyond municipal water, Singapore is also moving into the industrial water space. Being a highly
How IT companies are entering the water market
•
Singapore companies landed Government grows local companies and hand-holds start-ups
S$7.7 billion
worth of water projects overseas from 2006–2009
industrialised country, it has large industry clusters around electronics/ semi-conductors, and also has a chemicals and petrochemical base. The ability to treat industrial wastewater is critical to the success of these companies. “For the semi-conductor sector, the provision of ultra-pure water is very important. Therefore, water treatment capability in the industrial
In the last few years, more and more young enterprises are entering the water space, notes Singapore EDB cleantech director Goh Chee Kiong. It is obvious cleantech venture capitalists are increasingly looking at water. This was not the case three or five years ago. For instance, a company called MINT started an R&D project in Nanyang Technological University to develop a sensor technology to monitor the integrity of membranes. Typically, a utility company will change its membranes
space is something we are interested in as well.” For this, the focus is on Jurong Island, which hosts 100 companies producing chemicals and petrochemicals. There are also 15 wafer fabrication plants. Says Goh: “There are many companies providing water solutions already. But we want to take it to the next level. We hope that Singapore can be a test bed for
after five to seven years, but with the sensor, the membrane is changed as and when it needs to be changed, leading to cost savings. They have started piloting with PUB and this product has tremendous potential as it will change the way that membranes are deployed by utility companies. Smart water management is another area that Singapore is going into. This involves essentially the use of IT and controls for better sensing, monitoring and optimisation of water assets. This is
the equivalent of a smart grid applied to the water space. Having smart water management will help to reduce water leakage and optimise the management of assets. A lot of companies related to IT are interested in going into this space. PUB awarded a contract recently to ST Electronics to implement an intelligent water management system. This is a new frontier for a lot of water companies and it’s an ecosystem of players.
Three phases in Singapore’s water innovation value chain Singapore is a living laboratory for water technologies. Testbedding opportunities are available in real-life environments.
Research
Commercialisation
Government funding has established eight public R&D centres led by NEWRI (Nanyang Environment and Water Research Institute), which is located at the Nanyang Technological University. Prof Tony Fay, a membrane scientist from Australia, now leads the Singapore Membrane Technology Centre, a subset of NEWRI that is working with Toray on membrane research. Fourteen corporate R&D centres have also been set up in Singapore, including GE, Siemens, Toray and Nitto Denko.
industrial water solutions.” One good example is the testing of a membrane distillation technology from Keppel called MEMSTILL, which taps waste heat from the refineries on Jurong Island to produce clean water. “That is low-grade waste heat which is wasted usually. They tap the waste heat and use a low level of energy to produce clean water. They have started a pilot project with a refinery on Jurong Island and, if successful, they will scale up. It started roughly two years ago,” says Goh.
Again the impact will be felt elsewhere and not in the water sector.
What further opportunities are available in the water hub or are they already harvested by the current players? What opportunities can new entrants seek? There are two dimensions to companies coming to Singapore. One is what’s really here and the second is the global market. They come here to use us as a springboard. So there are companies who come here to do R&D. They can find good scientists in Singapore or they get good support from the government. There are others who come simply because Singapore is seen as a Silicon Valley for Water. They can’t afford not to have a presence in this hub because it is very synergistic. Of course, there’ll be competitors
PUB
Singapore has spent a lot on the hydrohub initiative. How much are you getting back in terms of investment opportunities, business done and revenue generation? The water industry will contribute S$1.7 billion annually to our GDP and hire some 11,000 people by 2015. We are on target to achieving these goals. We think it’s a tremendous economic return for the country. But beyond that, there’s a strong multiplier effect. When we talk of the ecosystem, it’s not merely about the water companies alone. It’s about the whole ecosystem. For instance, financing will not be captured by the statistics although banks could be involved. They will have their own economic impact. If we talk about, for instance, the Schneider Electrics, the ABBs, the Siemens of the world – their core business is in controls, using IT to manage utilities and assets like water.
Test-bedding
This is closely linked to project financing, not only from private banks but also from the Asian Development Bank (ADB) and the International Finance Corporation (IFC), among others. Hyflux, for instance, works with many Japanese companies, some of which provide financing. Singapore is actively working on this aspect so that companies that scale up their solutions will find partners in Singapore.
in this ecosystem but likewise, you can find partners like the banks, the technology providers, the pumps people, the institute of water policy, the UN-related banks. So it’s a huge aggregation of synergistic partners. The Singapore International Water Week has also given an additional edge to Singapore as a hydrohub. Singapore’s market is small. No matter what PUB does, it is about a five million population. So while PUB will provide exciting opportunities for companies, these companies really come here because Asia and the Middle East are the fastest growing markets for water in the world. What are the locations that water companies will look at in Asia as their springboard to serve this market? Not many choices. We think Singapore has that value for companies.
Singapore International Water Week 2011: This has become a must-attend event among international water players. Next year’s event will be held in July •
Drivers of the hydrohub
Rain
Treatment of used water
Stormwater management
Desalination
Local companies being groomed to be players in the regional and global water markets Constant innovation necessary to stay in tandem with emerging needs
By Bhavani Prakash
Singapore uses 1.73 million cubic metres of water a day, a demand that is expected to double in 50 years. Satisfying that demand, despite not having natural water resources except for the rain, is a task that falls on the national water agency, the Public Utilities Board (PUB). As it works towards selfsufficiency in water by 2060, the island state has cleverly turned crisis into opportunity. So what is it that PUB (and by extension, the government) is doing right, so much so that Singapore is today regarded highly as a global hydrohub? The hub has drawn the best technology and minds to Singapore. From the outset, all efforts have been geared towards creating a facilitative environment for companies to do research, to test-bed their new technologies, to commercialise them and to export their capabilities. This is really where the PUB really shines. Its water research and development integrates all aspects of water provision (see the water loop diagram) – collecting water, providing water for domestic and industrial use, as well •
Sea
NEWater
Collection of rainfall in drains & reservoirs
Collection of used water
Treatment of raw to potable water
Supply of water to the population & industries
Indirect potable use Direct non-potable use
as managing sanitation – roles that are often relegated to different departments in many countries. Singapore Prime Minister Lee Hsien Loong pointed this out during the Singapore International Water Week (SIWW) in July: “Today, PUB is an integrated water management agency that covers the water cycle as a whole. And you can optimise it because you are responsible for water treatment, sewage treatment as well as NEWater production. You have every incentive to optimise the whole water cycle.”
Investments & job creation Water, once considered a scarce necessity, is now being strategically converted into a business advantage. Driving this key growth sector is the Environment and Water Industry Programme Office (EWI), a powerful inter-agency body led by PUB, the Economic Development Board (EDB) and International Enterprise (IE) Singapore. It has a “war-chest” of S$470 million (US$368 million) – via two allocations since 2006 – to promote research and development in the water sector, and develop manpower and
Singapore’s water loop Source: PUB
commercialisation processes. This investment is aimed at creating more jobs – from 5,500 in 2003 to 11,000 in 2015 – and at boosting the water sector’s contribution to national productivity from S$0.5 billion in 2003 to S$1.7 billion by 2015. PUB’s director of industry development Michael Toh says Singapore is on track to achieving the 2015 targets. “Investment by water companies between 2006 and 2010, when fully realised, will add S$590 million of annual value-add to our economy and generate 2,300 professional and skilled jobs.”
PUB's director of industry development Michael Toh: Singapore is positioned as a nexus where companies can establish collaborative partnerships
opportunities
WaterHub, where cutting edge technology is honed for commercial applications
The hydrohub ecosystem commercialisation. There are also Toh says the hydrohub has already schemes that aid start-up companies in created a cluster of more than commercialising their environmental 70 international and local water and water technologies by bringing companies providing various services together the venture capitalists, or in the water value chain to the region, buyers, to meet the scientists who are as well as a water research ecosystem the sellers. with 23 research centres undertaking “The reason why continual projects in various domains. emphasis is placed on R&D is because “Taking a broader perspective, new global challenges will continue to our emphasis for the global hydrohub emerge – climate change, constraints has been on differentiating ourselves on resources such as energy, and by being innovation-driven and making increasing demand for safe and clean Singapore a vibrant marketplace. Our water. We must constantly innovate to resources have been keep in tandem with emerging needs,” focused on building up says Toh. capabilities across the entire innovation value Meeting demand for water chain. Singapore lacks “Singapore is natural freshwater positioned as a nexus lakes, and currently relies on four water where companies can sources or “taps” establish collaborative to meet its water partnerships. Another demand major differentiator has been the whole-ofSeawater government collaboration desalination to collectively grow the water industry, as evident Rainfall collected in reservoirs or water from the set-up of EWI.” catchment areas He says the continual emphasis on R&D to develop cutting Reclaimed edge technology also water by NEWater involves grooming local companies to be players in the regional and global water markets, and creating a conducive Imported environment for startwater from up companies in this Malaysia industry. This approach addresses the entire technology value chain from idea conceptualisation to Source: PUB
A key initiative that supports the global hydrohub is the Singapore International Water Week (SIWW). The growth in participation is an indicator of the hub’s positive performance. It also helps attracts new global players into the ecosystem. SIWW is now recognised globally as a key platform for delegates, trade visitors and exhibitors to showcase and promote the latest technologies and solutions and to network with various national and international public and private sector players. The fourth SIWW in 2011 attracted a record 13,500 participants from 99 countries/regions, a growth of 60% since its inception. The next one will be held on July 1st-5th, 2012 with the theme “Water Solutions for Liveable and Sustainable Cities” (see www.siww.com.sg). One of the key events of SIWW, the Water Expo, has become one of Asia’s most comprehensive trade fairs with 600 companies being showcased, including CH2MHill, Black and Veatch, CDM, Siemens and Veolia; and home-bred companies like Hyflux, Keppel and Sembcorp.
2060 targets
10% 20%
30%
Seawater desalination
30%
20%
Rainfall collected in reservoirs or water catchment areas
50%
Reclaimed water by NEWater
40%
•
opportunities
NEWater
Research breakthroughs
Membrane technology creates multi-billion dollar industry NEWater recovery rates to be raised from 75% to 90%
By Mallika Naguran and Bhavani Prakash Singapore’s Environment and Water Industry Programme Office (EWI) has funded 64 projects under the country’s hydrohub umbrella, among which 25 have been completed while the rest are being test-bedded or in various stages of implementation. These are among the noteworthy projects:
Given that a third of Singapore’s water needs is now met by NEWater, efficiencies and innovations in usedwater treatment are critical to achieving the country's long-term target of meeting 50% of its water demand by 2060. This confidence is based on technological breakthroughs such as the following: • After nine years of pilot and demonstration studies, Singapore is about to introduce membrane bioreactor (MBR) technology, which is superior to the current generation of wastewater treatment plants as it reduces energy use and cost, improves filtrate quality and lowers sludge production. • Singaporean start-up company Membrane Instruments and Technology Pte Ltd (MINT) has developed the Membrane Integrity Sensor (MIS), which provides real-time information on the state of membranes used in the water purification process. It is a costeffective, online and sensitive method of monitoring the condition of membranes so that remedial action can be taken before a membrane-related problem becomes a disaster. The technology is now being test-bedded in various water
Noteworthy projects at a glance
In NEWater
In water In distribution desalination
Membrane bioreactor (MBR) technology
Intelligent Water Management Systems
Biocarbon tower to neutralise odorous gases
Eventlab monitoring system to detect contaminants
Filters and capacitive deionisation to improve water recovery rates
•
Energy-efficient electrochemical desalination technology Membrane bioreactor (MBR) technology Variable salinity plant, a hybrid that treats both seawater and rain water
Vacuum multieffect membrane distillation (V-MEMD), which eliminates problems due to oil droplets Memstill, which recycles low-grade waste steam from power stations or heat from incineration plants to vaporise and condense seawater and distill it
and wastewater treatment plants in Singapore. MINT was set up at the end of 2008 by Nanyang Technological University (NTU) research fellow Dr Adrian Yeo, who is also the inventor of the MIS. The firm has the support of government agencies like PUB, EWI and the Economic Development Board (EDB), along with private investors and a board comprising directors who are renowned in the area of membrane technology. Dr Andrew Benedek, an investor in MINT through the Don Quixote Fund, was himself the winner of the inaugural Lee Kuan Yew Water Prize in 2008 for being a pioneer in the area of low-pressure membranes. • At the Kranji Water Reclamation Plant, Australian company Aromatrix is working with PUB to neutralise odorous gases from sewage through microbes in an innovativelydesigned biocarbon tower. • A pilot system is being developed with the help of National University of Singapore (NUS) researchers to improve water recovery rates at NEWater from 75% to 90% by cleansing waste brine with a combination of filters and a technology called capacitive deionisation (CDI).
Water distribution In the area of managing water quality and distributional efficiency, PUB is working with several companies to push the boundaries. Among them: • Local player ST Electronics is developing and implementing Intelligent Water Management Systems (IWMS), which is likely to be completed in the second half of 2012. It will integrate real-time information on water resources, and more efficiently manage water operations across the water supply, water catchment, used water and drainage systems. An integrated control centre will be built to enable up-to-the-minute monitoring, control and collaboration among various PUB segments, including officers in the field. Visual renditions through geospatial asset management system maps will alert
Desalination Desalination is one of the aspects of the water loop that is being given a lot of attention as Singapore targets to achieve 30% of its water supply from this source by 2060. It is an energyintensive operation, so research priority is being accorded to reducing energy usage: • German multinational Siemens, which has based its regional headquarters for water business in Singapore, won a US$3 million grant after putting forward an electrochemical desalination technology in response to a challenge by the EWI in 2008. The challenge was to build a demo plant to treat seawater to drinking water quality by using only
and display the sources of leaks or damaged pipes. Voice and video transmissions will enable timely communication and prompt incident handling. ST Electronics president Lee Fook Sun (picture) says: “The pressures on infrastructure posed by urbanisation are a challenge faced by many growing cities. We are therefore working towards a wide range of eco-enabling ICT solutions incorporating intelligent diagnostics and analytics systems and smart utilities solutions such as automated meter readers and intelligent energy grids to help growing cities manage resources more efficiently and to remain clean and secure.” • Optiqua Technologies is developing a networked monitoring system called EventLab in collaboration with Vitens, the largest drinking-water supply company in the Netherlands. Substances or contaminants in water affect its refractive index, and these are detected even at very small concentrations by laser light from the EventLab sensors. PUB and Optiqua are now exploring the newest sensors with more sophisticated algorithms.
1.5 kWh/m3, which is 50% less electricity than the market's best available technology today, which ranges from 3.4 to 4.8 kWh/m3. The secret is to shift away from current desalination technologies which rely on high-pressure pumps to force water through membranes, leaving the salt behind. Instead, Siemens’ engineers employed the electrochemical desalination method which uses an electric field to extract sodium and chlorine ions through the membranes and out of water. The process, combining what is technically called electrodialysis (ED) and continuous electrodeionisation (CEDI), runs on low-pressure, hence saving energy. The demonstration unit has been treating 50m3 of seawater per day since last December at a PUB facility. The company is now working on a prototype that can be converted into a commercial system. Other desalination breakthroughs being tested include the following: • The Variable Salinity Plant is a PUB innovation that can treat, in addition to seawater, the non-saline rainwater which would otherwise flow into the sea. By being a hybrid plant, the flexibility of source-feed water allows for lower desalination costs, with energy costs being halved. • PUB is working with NTU and memys, a desalination company, to develop an oil-resistant membrane
Above: The Membrane Integrity Sensor (MIS) developed by MINT. Below: MIS inventor Dr Adrian Yeo showing how the system provides real-time information on the state of membranes used in the water purification process
distillation system called vacuum multi-effect membrane distillation (V-MEMD), which eliminates problems due to oil droplets. This will be more energy-efficient than conventional desalination. • Another membrane distillation technology expected to lower costs compared to conventional reverse osmosis desalination processes is Memstill which is being developed by TNO (Netherlands Organisation for Applied Scientific Research) and Keppel Seghers Belgium NV. It recycles low-grade waste steam from power stations or heat from incineration plants to vaporise and condense seawater and distill it with a special membrane that allows only water vapour to go through. Pilots are being conducted in Singapore and the Netherlands. The technology can be used in process water production, drinking water production, treatment of waste streams and concentration of brine. •
opportunities
Water projects that broke new ground
World's largest seawater desalination plant in Algeria ready May 2012 US$1 billion water and power plant in Oman ahead of schedule, ready in April
By Mallika Naguran Hyflux’s membranes and systems can be found in over 1,000 plants worldwide. No small achievement for a Singapore water treatment company that began in 1989 with a start-up capital of S$20,000 (US$15,600) and just three staff. Now a company with 2,000 employees globally, its biggest coup is a 500,000 m3/day desalination plant in Magtaa, Wilaya of Oran, Western Algeria that will be completed in May 2012, instead of the original August 2011 deadline. (The delay was caused by a fire in July that did not affect the plant,
Hyflux and Sembcorp Utilities are two homegrown companies that are tapping a market estimated to be worth S$1 trillion worldwide
Hyflux CEO Olivia Lum (above). The company's biggest coup is its 500,000 m3/day desalination plant in Algeria that will be completed in May 2012 (below)
•
but caused US$50 million in damage to the warehouse.) When commissioned, Magtaa will be the world’s largest seawater reverse osmosis (SWRO) desalination plant. Both Hyflux’s Magtaa and Dagang City, Tianjin Province plants (China’s largest at 100,000 m3/day) make use of Hyflux’s flagship Kristal Hollow Fibre membrane. This ultrafiltration membrane meets the global NSF (National Sanitation Foundation) Standard 61 certification, and can be used for the treatment of aqua-based industrial waste streams, water purification, wastewater recycling and seawater desalination pre-treatment. Over in Singapore, Hyflux's Tuaspring desalination plant broke ground on July 5th. Constructed under a design, build, own and operate model, it will boost Singapore’s water capacity (through the Public Utilities Board) with an additional 318,500 m3 of desalinated water per day by 2013. Group president and chief executive officer Olivia Lum says the plant will feature the world’s second largest installation of ultrafiltration membranes in the pre-treatment process of a SWRO desalination plant, also using Hyflux’s Kristal membranes. She adds that it will offer the best tariff for desalinated water in Singapore, and the lowest tariff for desalinated water in the world. Other than desalination, the company provides solutions in water recycling, wastewater treatment and membrane bioreactor technology and potable water treatment. Its renewable resources management business area looks at separation, concentration and purification of manufacturing process streams as well as energy reclamation such as oil recovery and recycling.
Independent and hybrids Sembcorp Utilities’s water and power plant investment in Oman is progressing like clockwork. Within 19 months of clinching the deal, Salalah Independent Water and Power Plant (IWPP) has completed its first phase to supply 61 MW to Dhofar. When operational in the first half of 2012, the facility’s power plant will have a net capacity of 445 MW. The seawater desalination plant will produce 69,000 m3 of water a day using reverse osmosis technology.
Salalah Independent Water and Power Plant (IWPP) in Oman
61 MW
Net capacity of the facility’s power plant when operational in the first half of 2012
69,000 m3 Water production capacity of the seawater desalination plant using reverse osmosis technology
US$1 billion Cost of IWPP that is owned by Sembcorp Utilities (60%) and Oman Investment Corporation (40%)
Within 19 months of clinching the deal, the plant completed its first phase to supply 61 MW to Dhofar
445 MW
The US$1 billion facility is operated by Sembcorp Salalah Power and Water Company, which is owned by Sembcorp Utilities (60%) and Oman Investment Corporation (40%). The gas-fired power plant will supply energy to the grid and the desalination plant. The Toray membranes used are able to “strike a balance” between energy consumption and flux, thus reducing the amount of power needed to run the massive operations. An isobaric or “pressure equalising” energy recovery system transfers energy from the membrane reject stream directly to the membrane feed system, making it energy-efficient too. Such a system is known to save up to 60% of energy plus generate a host of maintenance benefits compared to non-energy recovering ones. Hydrochem (S), a wholly-owned subsidiary of Hyflux, is the sub-contractor for the seawater desalination plant, while SEPCO III Electric Power Construction Corporation (SEPCO III) of China is the engineering, procure-
Artist impression of the Salalah Independent Water and Power Plant (IWPP) in Oman
Sembcorp president and CEO Tang Kin Fei
ment and construction contractor. Tang Kin Fei, Sembcorp Group president and chief executive officer says: “Besides playing a significant role in providing power during the demand peak, the facility also enables Dhofar to obtain cheaper power during the summer. We are confident of completing the entire project ahead of schedule in April next year.” Sembcorp Utilities is not new to
the Middle East. In 2006, it signed a 22-year power and water purchase agreement with Abu Dhabi Water and Electric Company (ADWEC) to operate and maintain the Fujairah hybrid water and power plant. Sembcorp has acquired 40% of this existing plant that has a 893 MW gross power capacity and 455,000 m3/day desalinated water output. Here, the heat generated in water processing is recovered to create electricity. The project cost US$1.7 billion. Sembcorp Utilities is building a new US$200 million SWRO plant next to the Fujairah IWPP through a 20year water purchase agreement with ADWEC. When completed in 2013, this will provide Abu Dhabi with an additional 30 million gallons (113.6 million litres) a day of potable water. Sembcorp was named Water Company of the Year at the Global Water Intelligence 2011 Global Water Awards while the Salalah Oman IWPP clinched the Desalination Deal of the Year in Berlin this April. •
opportunities
Water treatment market potential runneth over Combined efforts from consumers, industries and governments are needed to bring market to full potential
China, India, Indonesia, Philippines and Thailand are the most attractive markets for water and wastewater treatment equipment from 2011 to 2016 China to spend US$11 bil on wastewater treatment plants under 12th Five Year Plan
By Janesh Janardhanan
Globally, fresh water is increasingly in short supply. Climate change has affected the patterns of regional weather. The number of regions suffering from water scarcity is likely to grow as droughts are happening even in areas previously considered water-rich. The requirement for clean, potable water is urgent and non-negotiable. Combined efforts from consumers, industries and governments are needed to tackle our water problem. Governments are calling for increased participation from businesses and con-
sumers to conserve and recycle water, but conservation alone cannot meet rising needs. With increased attention to addressing the severe scarcity problem, the market for water and wastewater treatment equipment is growing, and growing fast.
Market drivers & restraints Acute water stress and the United Nation’s Millennium Development Goals’ objective of access to safe drinking water and sanitation are driving investment into water and wastewater treatment in developing countries. Rapid increase in populations, both in developing countries as well as major urban centres, has put severe pressure on fast-depleting water resources. The problem is aggravated by transboundary issues over rivers. As a result, there is a strong push from governments across the globe for water reuse and recycling, and for water and wastewater treatment. Another market that is growing steadily is seawater desalination.
Fresh water availability by country (m3 per person per year)
No data available
Scarce 0
Stressed Vulnerable 1,000
1,700
2,500
6,000
15,000
70,000
684,000
Source: World Resources Institute (WRI) •
Drivers
Water and wastewater treatment market: Key drivers and restraints (world) 2011 – 2015 Initiatives to raise access to sanitation
Environmental legislation
Private sector investment
Quality requirements
Intrinsic link to energy markets
Market maturity in EU (& USA)
Regionally poor enforcement
Lack of public sector capital
Source: Frost & Sullivan
South-east Asia are seeing legislation coming into effect especially for wastewater treatment – and are seeing increasing adoption of water and wastewater treatment in both municipal and key industrial sectors. The most attractive markets between 2011 and 2016 will be China, India,
Growing demand for portable water
Failed privatisation ventures
Restraints
Reduction in costs of desalination technologies has enabled many governments to look to this to provide a primary source of potable water. Over 2.4 billion people live in cities along coast lines. Amid issues of depleting ground and surface water resources, and increasingly unpredictable rains, desalination is an important solution. The growing market is not without challenges. Increasing energy demand has fuelled debates over the carbon footprint of water treatment. There is an urgent need for sustainable solutions to the industry’s energy footprint. But the sector is conservative, and only well-tested and established technologies can penetrate the market – hence delaying the introduction of new and potentially disruptive technologies. While costs are decreasing as a result of more and more municipalities and industries taking up such projects, setting up and operating treatment plants is still relatively expensive. Many governments, particularly those in less stressed countries, are trying to suppress demand growth by building consumer awareness to conserve water. Political instability, more noticeable in the Middle East and North African countries, also delays projects and investments.
Indonesia, the Philippines and Thailand from the demand and growth opportunity perspectives. China is the largest exporter of water and wastewater treatment equipment (50%), followed by Japan (28%), South Korea (8%) and Singapore (7%). China is also
Country highlights The markets in Asia Pacific vary enormously by broader region and individual segments. Many countries in
Water & wastewater treatment opportunities in Asia Pacific Compared to North America and Europe, Asia Pacific is a larger market for water and wastewater treatment equipment at approximately US$5 billion in 2010 revenues. This does not include building infrastructure, design/ consulting, maintenance & monitoring services, operations services, chemicals, process control equipment, etc. The municipal segment contributes about 60% of the water and wastewater treatment equipment market, and industrial, about 40%. In the Asia Pacific, this equipment market is split 35% for water and 65% for wastewater treatment. Overall, it is set to grow at about 9.7% between 2011 and 2016, a rate faster than North America, Western Europe and Middle East.
Atlas Mountains and Errachidia Oasis, Morocco: The Saharan belt stretching from Morocco to the Persian Gulf states is the largest water-stressed region in the world •
opportunities
the largest importer of such treatment equipment (38%), followed by South Korea (12%), Japan (9%) and Singapore (9%). Japan and ANZ (Australia and New Zealand) are mature markets with relatively low growth rates while China and India are large markets with high growth rates of 8–11%. China plans to spend about US$11 billion on wastewater treatment plants, under its 12th Five-Year Plan, which includes an increase of US$3 billion from the 11th Five-Year Plan. The Shanghai Water Authority has planned investments of over US$700 million, including international loans, on wastewater treatment plants, pipe
Sustainability is the key focus going forward. Concerns over high energy requirements continue to drive research networks, pumping stations and management and monitoring systems. In India, the industrial water and wastewater treatment sector is growing rapidly due to overall economic growth. Industrialisation, environmental awareness and urban infrastructure improvements are the driving factors. However, these are dampened by the slow pace of reforms and policy implementation. The market is also highly fragmented with many small participants. In South Korea, more than 60% of the annual environment budget is •
reserved for water. It is investing over US$17 billion by 2012 to improve water quality and prevent pollution in four major rivers. Japan has a heavy focus on development of wastewater treatment technologies to reduce and recycle sewage sludge, develop rainwater control systems, increase levels of recycled water and improve rehabilitation of sewage infrastructure. Singapore is taking major steps to ensure stable and sustainable supply of water. Its Four Tap (imported water, water catchments, NEWater and desalination) strategy for meeting its requirements has won the applause of nations around the world. With intensive membrane technology development and innovation from leading international water technology companies, Singapore is well positioned to be a model city for water conservation and management.
Water treatment technologies Of the various treatment methodologies used for water and wastewater treatment, reverse osmosis (RO) remains the most promising for the 2011 – 2016 period in the Asia Pacific region due to better energy efficiency when compared to thermal water treatment methods. Advances in membranes and filtration technology will drive further investments. Membranes are the largest component by revenue for the water and wastewater treatment equipment, growing annually at about 9% in the region. Moving forward Sustainability is the key focus going forward. Concerns over high energy requirements continue to drive research. Notable technologies include forward osmosis, which can work at half the energy requirement of RO. Energy and resource recovery through pressure exchangers is gaining prominence in RO plants. Other promising development/deployment areas are biogas generation from wastewater treatment, membrane bioreactors for water reuse and recycling, moving bed bioreactors for nutrient removal and wastewater treatment, and increased usage of chemical-free water and wastewater treatment methods using ultraviolet light and ozone.
Microelectronics drive ultrapure water market Semiconductor manufacturing plants needed to support growth of India’s electronics market India interested to set up at least two fabs, each costing between US$4 bil and US$6 bil
The electronics market in India is estimated to grow to US$400 billion by 2020, of which computer chips, or integrated circuits (IC), will account for US$50 billion to US$60 billion. The country’s chip consumption has increased by 61.44% to US$8.25 billion in the past two years. On the heels of this growth will be the need for huge investments in highpurity water generation. As an illustration of how much water figures in this equation, one 200 mm semiconductor wafer requires 7,500 gallons (or 28,390 litres) of ultrapure water. The purity of ultrapure water is calculated in parts per billion (ppb), unlike potable water, where purity is limited to parts per million (ppm) or milligram per litre (mg/l). The line width of microelectronic devices has decreased to 0.2μm and is supposed to go down to nanometres. Against such measurements, even a particle of a size half the line width will become a large impurity, thus the need for ultrapure water. Reverse osmosis (RO) alone is not sufficient to achieve such a high level of purity. Along with RO, methods such as ultrafiltration, deionisation and ultraviolet sanitisation are adopted to achieve the required specifications. Another issue is the quantity of
The purity of water required for the electronics industries depends on the clients. As a result, the equipment package is not customised. Most PV companies do the operations and maintenance (O&M) in-house, while some prefer to do it on a contract basis with the suppliers for one to two years, after which it is transferred to the end user. This trend is expected to change with most end-users outsourcing the O&M activities, as is increasingly seen in the power and pharmaceuticals sectors. With the advent of zero-liquid-discharge systems for water reclamation, and the growing complexity of operating the integrated water and effluent treatment systems, end-users are keen to delegate the O&M activities.
The country’s chip consumption has increased by
61.44%
to US$8.25 billion in the past two years
One 200 mm semiconductor wafer requires 7,500 gallons (or 28,390 litres) of ultrapure water
water required. Modern semiconductor manufacturing facilities, popularly known as fabs, and photovoltaic (PV) plants use one to three million litres of ultrapure water a day. Currently, most end-users treat water to a level required for safe discharge or to be reused for gardening. It is anticipated that zero-liquid-discharge systems to reclaim the effluent will be in demand.
Market development In India, ultrapure water is mainly used in electronics, pharmaceuticals, medical devices and laboratories. With the establishment of new fabs, the major application area can shift to semiconductor industries. There are few companies in the ultrapure water market.
Policy initiatives The Indian government has unveiled a National Solar Mission – a US$19 billion plan to generate 20 GW of power by 2020. Since then, many companies have entered the solar PV market. The government drafted the Semiconductor Policy in 2007 to attract companies to set up manufacturing facilities, but the attempt failed as the incentives were poor. Moreover, the global downturn in 2008 triggered a slowdown in key sectors, including semiconductors. Countries like China, Taiwan, Thailand and Singapore offered better options and infrastructure to chip-making companies and India had to depend on imports from them. As a result, there are no fabs in India. It costs about US$2 billion to US$5 billion to set up a semiconductor manufacturing facility.
The Organisation for Economic Cooperation and Development (OECD) estimates that by 2015 an average annual investment of US$772 billion will be required for water and wastewater services around the world. Implementing water infrastructure and wastewater collection and treatment systems is costly, and often beyond the reach of developing countries. At the World Water Week in Stockholm, Sweden in August, the role of the financial sector in addressing water risk was a hot topic. Financial institutions
Growth driver The Indian government plans to launch a new Semiconductor Policy to attain self-reliance in the electronics and semiconductor industries, and to ensure they remain critical contributors to GDP. It has released an “expression of interest” for global and Indian companies to set up fabs. It is expected there will be at least two fabs, each costing between US$4 billion and US$6 billion. Incentives of 20%–25% in capex will be provided, government sources reported. – Frost & Sullivan
Role of banks in addressing water risks
World Water Week, August 2011, Stockholm
are developing risk-screening tools and water-risk maps. By including water in investment screening processes, financiers are signalling to other sectors that water is an important issue that needs to be factored into their risk-planning processes. For example, as part of the Carbon Disclosure Project’s (CDP) Water Disclosure Project, investors are asking companies to disclose their water risks. Screening tools have been developed, such as the WWF risk filter in collaboration with DEG, an organisation dedicated to financing private-sector investments in developing countries. However, these tools are still quite new and water risk evaluations are at an early stage. Many investors are still avoiding the water issue as they would avoid other sensitive issues – by not dealing with those areas that are seen as high investment risk. – Guardian Professional Networks
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case studies
Kaohsiung morphs from black and grey to green The industrial city of 2.8 million is now a top 100 liveable city in the world Green initiatives covered river-cleaning, recycling and green buildings
It took 50 years for Kaohsiung to become an industrialised city, but the last ten years have been hard work to transform it into a green city. Kaohsiung a decade ago and Kaohsiung today are entirely different cities. Although it was once known for its pollution, in 2010, Kaohsiung joined the Mercer Global Liveability Index as one of the top 100 liveable cities in the world. Many of the green initiatives were taken by its first woman mayor, Chen Chu, who was re-elected for a second term in 2010. With a budget of US$3.6 million, she had, in April 2009, promised to improve the water quality of Chienchen River, which the locals called “Heilungchiang” (or “Black dragon river”) and turned Kaohsiung into an eco-city. The fact that today’s tourist attractions such as the Love River was once heavily polluted – the water was black and smelled like a sewer – makes Kaohsiung an interesting case study for city planners. At one point, raw sewage and industrial wastewater flowed untreated into the river, but recent efforts by the city government to divert the wastewater to the treatment plant in Cijin District has resulted in significantly improved water quality. Although much of river cleaning began as early as 1979 with the setting up of floodgates on the river to capture trash and sewage, the system only worked from October to April because in the rainy season (May to September), the increased flow meant the floodgates had to be opened, sending pollution into the lower stretch of the Love River. Therefore, for any city to turn green, the efforts must go beyond cleaning up the rivers. For any effort to bear fruit, it must be holistic – and Lu Wei-ping, director-general, Urban •
By Stephen Ng
Lu Wei-ping, director-general, Urban Development Bureau, Kaohsiung City Government, Taiwan
Development Bureau, Kaohsiung City Government, Taiwan, was more than happy to share the secrets at a recent conference on World Class Sustainable Cities 2011 in Kuala Lumpur. The world’s 12th biggest container port, Kaohsiung became an industrialised city in five decades. Table 1: Greenhouse gas (GHG) emissions City
GHG/capita
Seoul
3.7
Taipei
4.2
Tokyo
4.8
Hong Kong
5.4
Kuala Lumpur
7.2
Singapore
7.4
Shanghai
9.7
Kaohsiung
23.1
Chart 1: Greenhouse gas (GHG) emissions Transport 10% Residential 13%
Waste department 2% Energy 10%
Industrial 65% Source: Asian Green City index, 2011
However, the people of Kaohsiung had to pay the price for rapid industrialisation, which turned the city into a heavily polluted city over the past three decades. “Because of a thriving cement industry in Kaohsiung, 20 years ago, if you forgot to close the windows, the whole house would be covered with dust by the time you returned from the office,” Lu recalls. Over the past decade, Kaohsiung’s main focus was to deploy urban transformation policies, which helped to secure for its residents a clean, liveable and green city. Among the green initiatives include establishing public parks and green belts, and advancing urban ecology conservation.
Game plan One of the first and, according to Lu, a “very important” green initiative undertaken by Kaohsiung City Council 20 years ago was to carry out remedial work on the rivers. “Due to heavy pollution, our rivers could not sustain life,” he says. “After ten years of rehabilitation, Kaohsiung’s Love River has now turned into a tourist attraction, and it’s so full of life.” Four methods were used to improve water quality – the establishment of wetland parks, proper sewage pipelines, interception stations and on-site treatment. Today, there are 18 wetland parks covering an area of over 900 hectares, which offer a natural filtration system. A second strategy is Kaohsiung’s strong emphasis on recycling. There are currently 99 registered recycling companies in the city handling anything from general waste to lead-acid batteries to recycled glass. To ensure they do not pollute the environment, these companies are regularly audited by the Environmental Protection Bureau. Besides promoting recycling and developing a zero-waste and circulation economy, the city government is mulling over the implementation of a new but not-so-popular measure where people have to pay for garbage disposal by the bags. This is to help reduce household waste and encourage the population to recycle. Kitchen wastes, for example, are allowed to decompose, or turned into pig feed. There are also efforts to reduce the use
Energy efficiency It has become mandatory for public buildings in Kaohsiung to be energyefficient. “Before 2000, urban planning focused on the pursuit of comfort and grandeur,” says Lu. “Today, urban planning has come to the forefront of public policy to find a way to a sustainable future.” Another important initiative is the establishment of the Kaohsiung City Government’s Development Industry Partners Fund, where large companies that are responsible for a major part of greenhouse gas (GHG) emissions are charged a carbon emission fee and the money is used to encourage the use of public transport and to set up the public bike rental system. Based on the Asian Green City Index 2011 survey, Kaohsiung’s GHG emission per capita is still high at 23.1 tonnes per capita, compared to Seoul’s at 3.7 tonnes per capita (see Table 1, GHG emissions). Of this, industry is the major contributor to GHG emissions (see Chart 1, GHG emissions) “We provide R&D incentives for
of disposable packaging at night markets and establish suitably-designed regional recycling sites and kitchen waste collection points. A third green initiative is to implement green buildings through environmentally-sound urban design. Green roofs, balconies, orientation of the building away from direct sunlight and air-guiding walls are among the green measures incorporated into architectural design to help reduce the need for air-conditioning. These are significant moves, given that modern buildings account for 40% of energy use and 35% of CO² emissions. Under the new policy, architects now have to ensure that any new building they propose must meet at least four of the following indicators: • biodiversity indicator • greenery indicator – all public buildings are green • water retention indicator • daily energy-saving indicator • CO² reduction indicator • waste reduction indicator • indoor environment indicator • water resource indicator • sewage report improvement indicator.
“Today, if you are not among the green cities, you will not be able to compete with other green cities in the future.”
Kaohsiung’s River of Love is the result of years of hard work which pays off. Today, it is an important tourist destination for the industrial city of Kaohsiung
innovators who produce technology that help to reduce carbon emissions,” he says. “The public have responded by taking personal responsibility for their carbon footprint.” Another green measure is the creation of retention ponds or basins, which help to prevent frequent flash floods, because they help to contain any excess water during a heavy downpour. Some of these retention ponds have been turned into parks.
Perseverance pays Lu believes that a city can only turn green if the city government acts responsibly and reasonably. “When the policies are right, everything will then fall into place naturally,” he said. “Yes, while it is true that you
cannot turn a city green overnight, it takes perseverance, the people must also believe in what you are hoping to achieve, and lend their support. To be a green city is very important. Today, if you are not among the green cities, you will not be able to compete with other green cities in the future.” The incentives to turn cities green are great as most people live in cities these days, and they can collectively generate 80% of a nation’s GDP. At the same time, they also consume 80% of its energy resources and produce 80% of its pollutants and wastes. Kaohsiung’s green status is something that Lu is proud of, especially since the city successfully hosted the World Games 2009. Kaohsiung has a population of 2.8 million. •
case studies
New Delhi’s Terminal 3 achieves LEED Gold rating Landscaping inside and outside terminal Rainwater harvesting and reverse osmosis used in water management
By Tejas Patel
Terminal 3 of the Indira Gandhi International Airport at New Delhi was recently conferred the “Leadership in Energy and Environmental Design (LEED) New Construction” gold rating by the Indian Green Building Congress (IGBC) for green buildings. The IGBC is the local chapter of the US Green Building Council. T3, as it is popularly known, is also the world’s first terminal building to have received the LEED Gold rating. The rating was awarded for its features on sustainability, water efficiency, energy and atmosphere, material and resources, indoor environmental quality and innovation in design. ”In contrast with the traditional master planning process, the Delhi International Airport Limited (DIAL) adopted a proactive approach towards
environment-friendliness, and the focus of the design team was on promoting energy efficiency and improving environmental quality,” says DIAL chief executive officer I Prabhakara Rao. According to IGBC, green buildings have lower operating costs and increased asset value, besides being healthy and comfortable for their occupants. They conserve energy and water, reduce waste, and demonstrate the owners’ commitment to environmental stewardship and social responsibility. Built at a cost of around US$3 billion, T3 has 35 acres of landscaping outside the airport building and 4,000 sq m inside it. The new terminal is highly energy-efficient, with features like: • Natural day-lighting • Use of contraction materials and
interior finishes with high recycled content • Use of environment-friendly vehicles • Establishment of a compressed natural gas filling station inside the airport • Usage of battery-operated vehicles to transfer passengers from one terminal to another • Use of dust screens and water sprinklers at construction areas to prevent gusting dust. “Delhi’s T3 is perhaps the best airport I have been at in terms of facilities and its green credentials,” says Harish Kapoor, a frequent international traveller. To manage the air quality at the airport, DIAL monitors air quality inside and outside the airport on a regular basis. Air quality monitoring is done for parameters such as suspended particulate matter (SPM), sulphur dioxide (SO²), oxides of nitrogen (NOx), hydrocarbons (HC) and carbon monoxide (CO). The airport has also initiated a greenhouse gas inventory programme to establish the emission data for its mobile and ground vehicles. It also facilitates the reduction of employees’ carbon footprint via a carpool. Water management is another
..
• Waste management The airport has implemented segregation of waste at source by passengers, concessionaires and service providers. It has also implemented the twin-bin system for waste management, and maximises recycling. • Environment management system The airport regularly reviews its environmental performance indicators for continual improvement. • Noise abatement Ambient noise monitoring is conducted regularly at different locations in and around the airport including the areas under the takeoff and landing funnels. All equipment at the airport is maintained in good working condition to reduce ground noise. The terminal buildings and the offices at the airport boundary are acoustically treated. • Biodiversity DIAL has undertaken to protect important vegetation cover and habitats within the airport boundary. The LEED Gold rated Terminal 3 of the Indira Gandhi International Airport is acoustically treated
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priority for the Delhi airport. DIAL undertook various initiatives on water and wastewater management after taking over the airport from the Airports Authority of India (AAI). Currently, the airport gets its water from the ground and municipal supply. Although the airport has saline groundwater, it serves this water to passengers after treating it at the reverse osmosis (RO) membrane plant. Water quality is monitored as per IS 10500 standard requirement. “Emphasis has also been placed on rainwater harvesting,” Rao says.
case studies
DIAL has installed rainwater harvesting structures across the airport. Wastewater reutilisation is a key activity of DIAL’s water management. To manage the airport up-graduation requirements, DIAL constructed a sewage treatment plant with advanced facilities that use ultra-filtration and the RO technique, and the latest water treatment equipment, to achieve its zero water discharge target. The treated water is used for the heating, ventilating and air-conditioning (HVAC) system, toilet flushing, horticulture and construction activities.
“I am not much of an expert in gauging whether a building complies with green standards or not, but basic facts about the T3, like its huge green cover, noise reduction and rainwater harvesting make this airport the best in the world. And I feel proud to be from the city that has such a wonderful airport,” says Rohan Sharma, a student who recently returned from an international vacation. The success of T3 has prompted many airports in India like those in Chennai and Kolkata to also be upgraded with green features.
Mega storage battery in Shenzhen China kickstarts world’s first MW-level grid-connected storage station
China Southern Power Grid (CSG), the second largest utility company in the world, has completed construction of China’s largest battery energy storage station (ESS). The ESS, which uses BYD technology, is also the world’s first megawatt-level, grid-connected, environmentally-friendly, iron-phosphate (Fe) battery storage station for commercial use. Chinese CSG officials say the ESS is capable of charging or discharging over 12 MW-hours or 3 MW for four hours off, or onto, the grid. BYD chairman Chuanfu Wang says BYD is at the cutting edge of “a new energy revolution” across China and aims to lead the world in installing environmentally-sound battery energy storage systems. Called the Shenzhen Baoqing Battery Energy Storage Station, the facility is located in the Longgang district of Shenzhen and is tied to a 110 kV substation supporting the rapidly growing Biling Industrial Park. The system’s enabling technology is the BYD Fe batteries, BYD’s battery management system, a power conversion system
Good for load levelling and enhancing quality of renewables like solar and wind
The side entrance to the Shenzhen Baoqing Battery Energy Storage Station
and an energy storage data station, which monitors and controls the system to ensure holistic and efficient utilisation. The multiple functions of the ESS include: • load-following/load levelling or charging during the grid’s lowestusage-periods (at night) which makes other generation sources like the internal combustion engine, coal or nuclear much more efficient (since the night usage of these stations may be as low as 40%, but they still must run all night) • supply dispatchable energy during
periods of high demand to peakshave (ie, for day-time spikes in demand) • frequency response reserves/power quality services to allow millisecond fast frequency adjustments on the grid caused by irregular sources like wind or solar, or power outages, and ramp-rate control and arbitrage for large renewable installations attached to the grid • electricity balancing and regulating voltages on the grid due to irregular sources • back-up power sources, which guarantees distributed power supply closer to demand consumption during crucial events such as summer outages and cascading regional brown-outs, which could shut down production and commerce. The station is in its first stage of implementation (with 3 MW maximum output for four hours), but is designed to eventually have a 10-MW output for four hours (40–50 MWh), with a service life of over 25 years before battery replacements are needed. The next phases will expand the station’s power output step-by-step. BYD produces advanced environmentally-friendly battery technologies like the Fe battery used in its electric cars and buses. Its solar panels and LED lighting systems have CEC, TUV/CE and UL listings. The company trades on the Hong Kong Exchange and on the Shenzhen Stock Exchange. (Source: Business Wire, BYD) •
case studies
L’Oréal enhances water treatment in Suzhou Project with Veolia Water Solutions described as revolutionary Energy savings of 8.5%, reduction of sludge production by 58%
By Suvarna Beesetti
A collaboration between L’Oréal, a cosmetics company with US$30.85 billion in sales last year, and the Veolia Water Solutions & Technologies (VWS), a design-and-build company and a specialist in water treatment, has led to a revolutionary wastewater treatment plant that reduces the environmental impact of L’Oréal’s manufacturing facility in Suzhou, China. The wastewater treatment plant has cut its carbon footprint and today treats bulk waste on-site, thus eliminating transportation of waste and incineration. The solution implemented at the L’Oréal Suzhou manufacturing site is based on the unique combination of VWS’ patented technologies, one of which is the Biothane® Biobulk CSTR (Completely Stirred Tank Reactor)
anaerobic treatment to replace the existing dissolved air flotation (DAF) pre-treatment system in the treatment of wastewater. The former is designed especially for wastewaters that contain high concentrations of non-dissolved substances and fats, and is the anaerobic equivalent to the conventional activated sludge digestion system. VWS also introduced the Anoxkaldnes™ MBBR (Moving Bed BioReactor) aerobic treatment technology, upstream of the Activated Sludge reactor, to increase capacity for future expansion, stabilise discharge quality and optimise future tertiary treatment and reclaim. These newly installed technologies are designed to significantly reduce chemical use and sludge production by eliminating the DAF unit
and expanding the aerobic treatment capacity to meet future wastewater flow rate, as well as to stabilise and improve the biological treatment process and produce a more stable wastewater discharge quality for further treatment. L’Oréal investment have contributed to significant environmental improvements that include energy savings of 8.5%, reduction of sludge production by 58%, elimination of highly concentrated liquid waste, and reduction of CO² emissions related to transportable waste by 82%. As a result, total CO² emissions from the wastewater plant is reduced by 43%. The impact of the factory on the water environment is also reduced with lower water usage and better quality effluent. In fact, the Water Impact Index of L’Oréal’s manufacturing facility in Suzhou is projected to go down by 35%. Veolia’s Water Impact Index is an indicator enabling a comprehensive assessment of the impact of human activity on water resources. The solution at the manufacturing facility is designed for expansion, and to address future water challenges. It also allows a reclaim system, such as sanitation or cooling, to reduce overall water consumption.
L’Oréal factory Reduction of 43% of the greenhouse gases emissions in the wastewater treatment plant
No more highly concentrated liquid waste transported for incineration, reducing the emissions due to freight by 82% Wastewater treatment plant
Highly concentrated wastewater d) (treated)
L’Oréal manufacturing plant
Tai Lake
Wu Song River Industrial park wastewater treatment plant
Municipal water treatment plant
Improvement of the water discharge quality, allowing tertiary treatment and reclaim
Reduction of sludge production in the wastewater treatment plant by 58% Process water treatment plant
Source: Veolia Water Solutions & Technologies •
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case studies
Building, building, built in a single day PanaHome, built in a day, is earthquake-resistant, durable and resource saving Taiwan, Malaysia rollouts to revolutionise mindsets about prefab homes
By Stephen Ng
detached house using prefabricated materials? It takes a team of seven engineers, for a start. But once the right people are on hand to oversee the process, it’s pretty smooth sailing. In one instance, construction began at 9.00am, and by 3.08pm, the job was completed and a new home was ready to be handed over for the purchaser’s inspection. All that was left to install were interior elements such as doors,
Who says Rome cannot be built in one day? This idiom – often used to emphasise that important tasks take a long time to accomplish – may one day cease to be true, thanks to recent advancements in technology. With prefabricated materials, it is now possible to construct a sturdy, beautifullydesigned bungalow, if not yet an entire city, in just one working day. What does it take to build a
partitions, ceilings, floor finishing and plumbing installation. In Japan, where an entire eco-city has been developed in less than six months (time frames vary depending on the size of the city), the concept of PanaHomes, which is now making headlines in two other Asian countries, is set to revolutionise the construction industry. If priced competitively, this model can be expected to attract increasing numbers of builders and purchasers in Taiwan and Malaysia. The company behind these instant dwellings is a Japanese construction company, PanaHome, which was established in Japan in 1963 with a capital of 26.276 billion yen. Owned by two major shareholders, Panasonic Corporation and Panasonic Electric Works Co Ltd, PanaHome recorded a turnover of 260.4 billion yen (US$2.8 billion) in 2009.
Yoshiyuki Tanabe, project & strategic planning advisor and general manager of Panasonic Malaysia
PanaHomes in Chofu, Tokyo
Photocatalytic glass reduces maintenance needs
Advanced photocatalytic technology allows Kiratech exterior tile walls to self-clean when exposed to the sun, reducing total long-term costs of maintenance and home ownership
•
Photocatalytic tiles also break down hazardous atmospheric pollutants, including nitrogen oxide (NOx), and purify the surrounding air
PanaHomes are said to withstand earthquakes of up to 9.0 on the Richter scale, a highly desirable feature suitable for countries like Taiwan. In countries like Malaysia that have no history of earthquakes, this means homes that are durable and viable as long-term investments. “The building structure can outlast traditional houses,” says Yoshiyuki Tanabe, project & strategic planning advisor and general manager of Panasonic Malaysia, based in Kuala Lumpur. “The proprietary steel-framed structure is able to withstand sizeable earthquakes and recurring tremors, helping to keep families safe and protect the asset value of homes.” This durability is how Tanabe plans to market the concept of the homes as his company seeks partners in the construction industry to tap the Malaysian market.
Planet-friendly features The other selling point about PanaHomes is its environment-friendly design. Tanabe reveals: “We are also placing very strong emphasis on our green initiatives. PanaHome bagged the excellence award in the category of ‘House of the Year’ in Electric 2009 for its achievement in reducing CO² emissions by 3.1 tonnes per house in one year.” Compared to a detached house built in 1990, for example, a house built by PanaHome in 2010 can save up to 2.1 tonnes of CO² emissions a year. New PanaHomes developed in 2011 have achieved an even lower CO² emission level of 1.57 tonnes a year by adopting Panasonic eco-energy solutions (see page 36). “To be green, the entire home has to be green from within,” explains Tanabe. “Together with Panasonic, we
The Eco-Life hybrid ventilation system combines natural and mechanical ventilation to enhance air quality and flow, and regulate humidity
Moisture-regulating building materials The system supplies cool fresh air under the floorboards in summer and warm fresh air in winter, maximising comfort and helping to conserve energy Low-emissivity glass and insulated windows
“To be green, the entire home has to be green from within.”
Earthquake laboratory tests show that PanaHome’s steel-frame structure is capable of withstanding earthquakes of up to 9.0 on the Richter scale
can provide total eco-energy solutions, which include solar power generating systems using solar PV panels, saving energy using Panasonic’s EcoNavi products such as energy-saving air-conditioners and LED lighting, which further contribute to energy efficiency.” Designing PanaHomes also means using available resources to help conserve energy. Capitalising on cooler underground temperatures, PanaHomes use ducts to draw cold air from the earth and pushes it through the hybrid-ventilated houses. This system, which utilises both natural and mechanical ventilation to enhance air quality and flow, helps to cool the air inside the house, thus reducing the need for air-conditioning. In the case of a township, underground cooling tubes are also used to help ventilate the entire community. Tanabe adds: “Each house has a rainwater storage tank, where collected rainwater is then sprinkled over the roads using an automated sprinkler system to mitigate the heat island effect and help maintain ambient temperatures at a comfortable level.” Instead of having to look for ecofriendly paints, the PanaHome uses a self-cleaning coating on its exterior walls that requires no exterior wall painting. “The advanced photocatalytic technology allows Kiratech exterior tile walls to self-clean when exposed to the sun,” Tanabe says. “This helps to keep the walls clean and reduces the total costs of home ownership.”
Green from the cradle With PanaHomes, zero emission is achieved at the factory and construction site. In Japan, the wastes generated are also recycled or reused. Tanabe adds: “For example, wood wastes are compressed into wood pellets for heating purposes or are used to decorate home gardens and footpaths. Polystyrene and plaster are recycled and sold back to manufacturers as feedstock for their own production. Besides that, we use only materials that are friendly to the environment, qualifying PanaHomes as eco-friendly homes.” Ultimately, what is most interesting about PanaHomes is, of course, the time taken to construct a •
CO (tonnes/year) reduction goals of PanaHome
double-storey bungalow. “Once the foundation is laid, the job may take less than eight hours. Hence, there is less noise and dust pollution for the community where the construction is taking place,” says Tanabe. “Less energy is used to complete the house, and materials used have gone through stringent quality controls. Most Malaysians tend to assume that prefabricated houses are cheap and of low quality, but PanaHome provides excellent houses whose quality is much higher than existing ones here. Maybe it’s time to drastically change our mindsets.”
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Total solution by Panasonic group 1 Building innovation : V 0.15t 2 Development of facilities : V 0.38t and equipment 3 Recycled energy : V 1.57t 4.5kw PV system or Fuel cell + 3.0kw PV system
1.56t
Total V 2.10t
0.87t 2.10t/year 0.42t
1 2 1.57t/year
0.47t
0.26t 0.37t
1.54t
0.35t
0.23t
0.14t 1.03t Energy-saving houses (general detached houses) built in 1990
0.82t
Houses provided in January 2010 (current PanaHome)
3
PV system
2011 new PanaHome
Cooling and heating, ventilation
Lighting
Hot water supply
Home electronics
Source: Panasonic
Completed projects In Japan, a number of PanaHome projects have been successfully completed. Covering 415 ha, the PanaHome City Seishin Minami (Seishin Minami New Town) in Kobe, Japan, features 400 detached houses that were constructed in five phases. The entire township (picture at lower right) caters to a population of 35,000. Another 308 houses were constructed in Nishi-ku, another residential development in Kobe. Here, the homes are built facing the centre of the township, which provides a high degree of privacy and shuts out noise from a highway to the north of the township. In Chofu, Tokyo, PanaHome completed 20 detached houses and 16 apartments in 2006. “Here, PanaHome sought to create a green community that co-exists with the natural environment surrounding the Nogowa river,” says Tanabe. “Sales of the property were encouraging.” There are also 109 PanaHomes in the historical Nara prefecture, and another 124 in the residential development at Komaki, Aichi in 1995. In Taiwan, 123 PanaHomes are set to be constructed in a gated community. Here, the western slopes of the development site, which is unsuitable for buildings, have been transformed into an orchard where trees serve as a carbon sink and fruits harvested will be shared among residents. In Malaysia, PanaHome’s second overseas market, negotiations are ongoing with local partners to
4.49t/year
Eco-friendly township of Seishin in Kobe City
develop an entire eco-township with PanaHomes. Tanabe says: “The potential of building PanaHomes in this country is bright. Initially, the prefabricated materials will be imported from Japan but eventually,
we hope to produce them locally to reduce the carbon footprint and cut down logistics for the prefabricated construction materials. We are also looking for developers who are keen to work with us.”
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case studies
India’s ecotourism guided to takeoff point States to develop strategies and put them up for public viewing by end-2011 Guidelines to help build common and internationally-accepted frameworks
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By Tejas Patel
A sizeable number of eco-friendly resorts, lodges, camps, etc have mushroomed all over India in recent years
India’s Ministry of State for Environment and Forests has made its stand for orderly and sustainable development of ecotourism with the issue of guidelines for ecotourism in and around protected areas. The ministry called for last-round public feedback in June even as it instructed the states to develop their own ecotourism strategies based on the guidelines. Jairam Ramesh, who was the minister of the portfolio when he released the guidelines, said the guidelines were drafted after consultation with stakeholders. The guidelines were based on recommendations in the Tiger Task Force Report (2005) and the 2006 Amendment to the Wildlife Protection Act (1972). The guidelines require state governments to develop their ecotourism strategies by end-2011 and put them up for public viewing. Among the guidelines: • No new tourist facilities are to be set up on forest land • All ecotourism activities should take •
“Without the full participation of local communities, our protected areas cannot remain protected in any meaningful manner.” place only in delineated zones • Tourism infrastructure must conform to environment-friendly, low-impact architecture; adopt green measures like solar energy, waste recycling, rainwater harvesting, natural crossventilation, reduced-use of asbestos and controlled sewage disposal; and generally blend in with the surrounding habitat • Authorities must ensure all facilities within a 5 km radius of core/critical wildlife habitats, protected areas, reserves adhere to environmental regulations, noise pollution norms, are non-polluting, and blend in with surroundings
• Ban on burying, burning or disposal of non-biodegradable or toxic waste in the tourism area • All tourist facilities, old and new, must aim to generate at least 50% of their energy and fuel requirements from alternate energy sources like wind, solar and biogas • The use of wood as fuel shall be prohibited, except for campfires for which wood must be procured from State Forest Department/Forest Development Corporation depots • Initial benefits from ecotourism must go to the local people, and in the long-run, a sustainable partnership must be forged between the forest department, tourism professionals and local communities. “The guidelines are important because, as we know, most wilderness areas in India are fragile ecosystems that provide important ecosystem services and at the same time remain important tourism attractions,” said Ramesh. “Ecotourism is tourism that is compatible with these fragile landscapes, while providing enhanced livelihoods to local communities. Livelihoods to local communities are of paramount importance. Without their full participation, and without their realising the benefits of ecotourism in tangibly visible measure, our protected areas cannot remain protected in any meaningful manner.” Ecotourism existed in India long before the term became fashionable although a number of new nature-related tourist destinations have come up in places like Kerala, Lakshdweep Islands, the Himalayan region, north-east India, and Andaman and Nicobar Islands among others. A guide to ecotourism destinations across India can be accessed at http://ecotourisminindia.com. However, the blossoming of ecotourism sites is not growing in tandem with conscious and voluntary planning for sustainability, which is why the new guidelines will formalise actions in this area. Nonetheless, there are a few proactive ecotourism spots, Thenmala being one. Touting itself as India’s first planned ecotourism destination, the small village some 72 km from Kerala’s capital Thiruvananthapuram, at the foothills of Western Ghats, makes sure nature’s interest is taken care of first.
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Right from the concept stage, project proponents for Thenmala Ecotourism adopted internationally accepted principles of ecotourism. The project that is centred around Shenduruney Wildlife Sanctuary was developed with the cooperation of the authorities in charge of forests, irrigation and tourism, the local communities, the local government, and other stakeholders. The Thenmala Ecotourism Promotion Society, set up to manage the project, devised a two-pronged approach towards ecotourists. By delineating different areas for “soft-tourists” and “hard-core” visitors, the society catered to both man and nature without alienating either. For the soft-tourists, there are the degraded forests on the outskirts of the wildlife sanctuary proper. These areas are open to all. Nature-lovers may enjoy small nature trails, an elevated walkway through canopies, mountain
Ecotourism focuses on local cultures, wilderness adventures, volunteering, personal growth and learning new ways to live on our vulnerable planet
biking and boating. The society also set up an environmental education and interpretation centre. All these allow people to enjoy nature’s beauty without entering the wildlife sanctuary. Within the sanctuary, however, nature and wildlife are priority. The sanctuary authority decides who can enter. Thenmala also presents business opportunities for the private sector in accommodation and transportation services. The project offers the local community opportunities to participate in ecotourism by providing products and services, local traditional transport, local handicrafts, and local art. The Thenmala ecotourism project has won international awards: the Pacific Asia Travel Association (PATA) Gold award for 2003–2004 and the National Tourism Award for the most Eco-friendly Organisation (2001–2002) and Best Ecotourism Practices award (2003–2004).
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Renewed zest for concentrated solar Franz-Josef Mengede has been group senior vice president and head of Global Business Unit for Power Generation in the Power Systems Division of ABB since 2008. Earlier this year, he became president of the European Power Plant Suppliers Association (EPPSA). Stephen Ng met up with Mengede in Kuala Lumpur at the sidelines of POWER GEN Asia 2011 to find out his views on renewables in Asia, what ABB is up to and where Asia fits in.
ABB
• Born in Dorsten, Germany, in 1957 • Has a degree in mechanical engineering (specialising in energy and environmental process engineering) from the University of Essen, Germany • Joined ABB in 2008 from Von Roll Umwelttechnik AG, a Swiss-based turnkey supplier of waste-to-energy plants, where he was CEO. Prior to that, Mengede was responsible for the North American operations of the Siempelkamp Group. He has also been managing director of Babcock’s process automation operations in Germany, and managing director and country manager of Yokogawa Deutschland GmbH Germany • Started his career as a lead engineer in instrumentation and control in Texaco
Franz-Josef Mengede is excited about ABB’s purchase of 35% of Novatec Solar, a German company founded in 2006 that was involved in the development of the linear Fresnel collector technology (based on concentrated solar power [CSP] technology) that is used in both its Puerto Errado plants in Spain. He shares why this is a breakthrough for ABB. Puerto Errado 1 and 2 Commissioning for the 30 MWe power station Puerto Errado 2 is scheduled for March 2012. Once completed, it will be the largest linear Fresnel solar thermal power plant in the world, with a total of 300,000 sq m of primary reflector area (see Table on next page). Puerto Errado 2 (PE2) is the first commercial Fresnel solar power station project to get full financing of •
67 million euros from a consortium of three European banks (BayernLB, Commerzbank AG and Rabobank). For Mengede, this means the technology is commercially viable in the eyes of the bankers, and the success story can be repeated elsewhere. Already, the company says it has permits for two other projects to produce another total capacity of 60 MW. Work is scheduled to begin in the next few months. Compared to its earlier Nova 1 technology used in Puerto Errado 1 (PE1), Novatec Solar has successfully optimised the efficient, low-cost direct solar steam generators (solar boilers) to produce steam of up to 500ºC and 100 bars, which have the same potential as biomass, to run turbines and generate electricity. This technology can easily beat any photovoltaic installation anywhere in the world.
Potential benefits of CSP technology is Asia and Australia The downside of the technology, however, is that this CSP technology can only be installed in places where the direct nominal irradiation (DNI) is high at any location. “It means in countries in Malaysia, Thailand and Singapore, CSP would not be practical,” Mengede says. “However, we are exploring its potential with our investors in countries where there is high DNI, such as China, India and certain parts of Australia.” An ongoing project is currently located at Liddell, Australia, where construction is expected to end by February 2012. Once completed, the solar augmentation of a coal-feed power station will be capable of generating up to 9 MWe . Lower entry cost and higher efficiency of CSP technology The upside of the technology is that the cost of entry is so much lower compared to other existing solar technologies. Because CSP systems use
Cleaner power generation without heat exchangers Power generation is straightforward. Electrical power is produced when the concentrated solar energy directly produces steam, which then drives the steam turbine for power generation or seawater desalination, solar cooling and other industrial heat applications. “The beauty of this technology is that there are no heat exchangers resulting, in higher efficiencies,” he says. “There is no toxic oil in the absorber tubes, which makes the technology more environmentally-friendly.” Places where technology has been successfully used Mengede says the technology has been widely commercialised. CSP plants have generated a total of 1.17 GW of electricity. Of this, 582 MW are in Spain and 507 MW in the US. “About 17.54 GW of CSP projects are under development worldwide, and the US leads with about 8.67 GW,” he says. “Spain ranks second with 4.46 GW in development, followed by China with 2.5 GW.” However, compared to PE2, most of these Fresnel solar power stations in the US, Spain and Australia have a capacity in the low to medium singledigit MW range. Even Novatec’s PE1 plant previously only generated 1.4 MWe compared to PE2’s 30 MWe . Optimistic about renewables in South-east Asia In South-east Asian countries where the DNI is low and the CSP technology would generally be unsuitable, Mengede says ABB has other tech-
16 parallel lines of standard, low-cost flat mirrors, instead of speciallydesigned parabolically-curved mirrors used in parabolic trough technology, to concentrate a large area of sunlight or solar energy onto a small area, the cost is much lower. Compared to a photovoltaic solar farm, the space needed to set up a CSP plant is much smaller. Cleaning of the flat reflectors can be performed by Novatec Solar’s cleaning machines, which use only 1.1 litres/per square metre of flat mirror a year. The robot can clean up to 8,100 metres2 every hour.
Puerto Errado 2 (PE2) is the first commercial Fresnel solar power station project to get full financing of 67 million euros from a consortium of three European banks (BayernLB, Commerzbank AG and Rabobank)
nologies to fit local conditions. ABB’s headquarters in Singapore looks after the South-east Asian countries, while its headquarters in Beijing is focused on the huge China market. “In Malaysia, we are looking at the production of some 200 kW of electricity using ABB’s solar PV technology by the end of the year,” he says. This will coincide with Malaysia’s introduction of the feed-in tariffs by December 1st. Untapped biomass power in Thailand and Malaysia Mengede, however, ranks solar third, after hydro and wind, among the options for renewable energy. Currently, ABB is involved in the electrification of a complete hydro-electricity plant in Vietnam. “Unfortunately, in most
South-east Asian countries, wind energy would not be very important. Instead, in countries such as Thailand and Malaysia, there is yet another untapped source of renewable energy – biomass. Up to 2020, biomass power generation is predicted to grow by 20% in America and in Asia, we can expect a 70% growth in emerging markets,” he says, adding that ABB is already involved in biomass plants in Thailand. “Whatever it is, when it comes to the renewables, we have the experience – that’s what matters,” he says. “But, if the renewables market is going to take off in any economy, it has to get the full support in terms of subsidies provided by the government of the day. To push forward, political will is what is required.”
Novatec solar’s current solar technology projects Project name
Capacity
Plant type
Solar field size
Status
Puerto Errado 1 (PE1) Murcia, Spain
1.4 MWe
Demonstration plant
21,571.2 m2
In commercial operation since March 2009
Puerto Errado 2 (PE2) Murcia, Spain
30 MWe
Solar thermal power station
302,000 m2
Construction start: April 2010 Construction end: March 2012
Liddell NSW, Australia
9 MWth
Solar augmentation of a coal-fired power station
18,500 m2
Construction start: January 2011 Construction end: February 2012
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people
Energy man who walks the talk
How much more aware of the environment are Malaysians today compared to when you first arrived in the country six years ago? They are certainly much more aware of the environment today. When I came to Malaysia six years ago, there was not much focus on “going green”. For example, when I brought my fabric bags along to do grocery shopping, the cashier very often did not understand why and continued to put my groceries in free plastic bags. It was actually a struggle to get them to use my fabric bags. Today, the supermarkets are almost begging you not to use plastic bags – some have implemented a policy on plastic bag-free days. When they see my fabric bags, they say “thank you” instead of giving me a weird and puzzled look. The “green movement” is very much on the radar screen in Malaysia. Just open any newspapers or tune in to any TV or radio stations and you will come across some green stories or activities almost daily. I believe this shift in green awareness was sparked by two events in 2006 and 2007. Firstly, the fuel price hike, which saw many Malaysians queuing up in long lines at the petrol stations, and secondly, the movie An Inconvenient Truth by Al Gore, which raised environmental awareness globally. What are some environmental programmes from Denmark that you feel would benefit Malaysia? We need to make recycling easy so that more people will practise it. For instance, environmental speaker and entrepreneur Matthias Gelber and I set up a condo recycling system inside the existing trash room on each floor of our condo. Residents have to go to the trash room anyway to dispose of their waste and they do not mind throwing the trash in three or four different bins. When I did a survey, I found that •
Gregers Reimann from Denmark is an energy engineer who specialises in buildings that allow good day-lighting, are highly energy-efficient and provide excellent thermal and visual comfort. The lifestyle of this associate director of IEN Consultants reflects an infectious zeal to protect the environment. He shares his views on life with Suvarna Beesetti.
• Born in 1974 in Denmark • Holds an MSc in energy engineering and indoor climate from the Technical University of Denmark • Also studied at the University of California Los Angeles (UCLA), University Putra Malaysia (UPM) and at the National University of Singapore (NUS) • Has been based in Malaysia since 2005, working with energy-efficiency building projects like the Malaysian Energy Commission Diamond Building in Putrajaya • Also involved in the energy retrofitting of office buildings in Ougadougou, Burkina Faso and Jakarta, Indonesia • Promotes bicycling in Malaysia
over 90% of the occupants (Malaysians and non-Malaysians) said they were willing to recycle and found the recycling system easy to use. More over, they found that the system made the condo more attractive. And mind you, this system was established at a cost of less than RM8 per condo unit. The recycling rate doubled after the
To cut his carbon footprint, Reimann cycles 10 km to his office in Bangsar
system was implemented, according to the cleaners who share the money from selling off the recyclables. In the long run, I think Malaysia could benefit from setting up regional recycling centres, just like the ones in Denmark which has about 40 different bins for all kinds of waste ranging from chemical waste, paints, batteries and different types of construction waste to IT equipment and household appliances (refrigerators, freezers, washing machines, etc). This successful recycling scheme allows the public to deposit their waste free of charge and the recycling centres are usually buzzing with activity, particularly on weekends. If such recycling centres can be established in Malaysia, hopefully, we would not see truckloads of trash being dumped along the roadside here and there. It would also be great if Malaysia could establish recycling programmes for batteries, as they are quite harmful
How many high-rise developments have benefitted from your recycling programme? Do you plan to take it further? The system has been installed in about four or five other condos, but there could be more that I may not be aware of. I have made all the information about this condo recycling system available at www.ien.dk/recycling, much like a “do-it-yourself” kit, which I hope can inspire others to implement the system. What is your personal philosophy in terms of the environment? I certainly try my best to live in a sustainable manner. The definition of sustainability that I ascribe to is this: Development that meets the needs of the present without compromising the
“The average Malaysian currently emits about seven tonnes of CO and the figure keeps increasing every year.” ability of future generations to meet their own needs. (Source: Brundtland Report, 1987) If you could change just one environmentally-damaging habit of Malaysians, it would be… Throwing trash on the streets. This sends a very bad signal to everybody that we do not care about the environment. What do you hope to see Malaysia achieve in terms of the environment in the next 10 years? I certainly hope Malaysia will develop in a sustainable manner. To avoid runa-
to the environment. In Denmark, we have battery recycling bins placed in the supermarkets.
way global warming, the CO² emission of each person should be limited to one tonne per year. The average Malaysian currently emits about seven tonnes of CO² and the figure keeps increasing every year. To reverse this trend, I hope the government will implement a longterm comprehensive energy and environmental plan for Malaysia to become a CO² neutral country by 2050. Other countries such as Denmark and the United Kingdom are very far ahead in terms of implementing such plans, and this can be done at very little or almost no cost to society. You just have to do it.
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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editorial
Triangle of extensive eco-marine opportunities South-east Asia’s sustainable fisheries from coral reefs valued at US$2.4 billion Global Biodiversity Hub in Sabah mooted to coordinate sustainable development
Khoo Hock Aun is vicechairman of the Roundtable on Sustainable Biofuels. Email: khoohockaun @cosmobiofuels.com
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By Khoo Hock Aun
The Coral Triangle region (see map) combines the two largest archipelagic states in the world – Indonesia and the Philippines – and four other countries with enormous marine resources – Malaysia, Timor-Leste, Papua New Guinea and the Solomon Islands. The multilateral partnership of the six countries was launched in 2007 as the Coral Triangle Initiative (CTI) on Coral Reefs, Fisheries and Food Security with a commitment to safeguard marine and coastal resources against threats to the region’s marine ecosystem due to unplanned coastal development, overfishing and climate change. Financial support in excess of US$100 million for its Regional Action Plans comes from institutional donors, governments and non-governmental organisations (NGOs). The region covers almost six million sq km of coastal and oceanic waters and is home to 600 coral species, 53% of the world’s coral reefs, at least 3,000 fish species, the largest collection of mangrove forests in the world, and over 350 million people, one third •
US$12
bil
Value of Coral Triangle nature-based tourism
of whom rely on marine and coastal resources. It is also the spawning ground of the largest tuna fishery in the world and refuge for six of the world’s seven species of marine turtles. South-east Asia’s sustainable fisheries from coral reefs is valued at US$2.4 billion while the Coral Triangle nature-based tourism industry, which includes sites such as Tubbataha, Komodo, Sipadan (East Borneo) and Raja Ampat is valued at US$12 billion. Fisheries and ecotourism are cornerstones of the private sector involvement in the CTI.
Private-public sector partnership A recent CTI regional business forum in Kuala Lumpur highlighted the grow-
ing partnership between the private and public sectors in preserving the region’s value of being the world’s most diverse marine ecosystem. Among the several public-private partnerships recognised at the forum is a multi-stakeholder collaboration between Coop/Bell Seafood of Switzerland, Seafresh of the Netherlands, the government of Germany, the Philippine Bureau of Fisheries and Aquatic Resources (BFAR), and WWF-Philippines on a project to improve the management of tuna handline fisheries. The Shangri-La Tanjung Aru Resort’s partnership with the local community to protect endangered dugongs in Sabah, Malaysia was also recognised. A Global Biodiversity Hub (GBH) in Sabah, Malaysia was mooted to help coordinate the sustainable development of marine resources within the CTI by working with fishermen. The project, with an investment of US$475 million into the regional economy, will create 2,900 new jobs up to 2020. Over 70% of the funds will be from the private sector. The World Wide Fund for Nature (WWF), on its part, works within the CTI programmes with fishing companies to introduce technology and practices to reduce by-catch of non-target species like marine turtles and sharks. It advocates the adoption of sustainable mariculture and responsible consumption choices by linking buyers with suppliers of responsibly-caught seafood. The Seafood Savers platform, for instance, was established to assist Indonesian producers graduate through a fisheries improvement programme that will culminate in Marine Stewardship Council certification. It is designed to ensure fisheries stakeholders benefit from access to markets by helping them achieve more responsible
production standards. The forum recognised that steps have to be taken to reduce the impact of marine transportation, to improve energy efficiency and to develop renewable energy sources to mitigate the degradation of the marine ecosystem. One such company in this space, Greenlight Technology Group, leverages on proven technology to imple-
editorial
ment and manage small-scale energyefficiency projects. Another player, Fiji-based NIU Industries, promotes the production and utilisation of cocobiodiesel for transportation. In spite of the higher international market prices of the coconut oil feedstock, the use of biofuel alternatives was advocated in island economies, on the basis of self-sufficiency and high
import costs of fossil fuels. What has clearly emerged is the importance of multi-stakeholder interaction in developing projects with some kind of weighting of stakeholder interests. Various voluntary standards, such as the Roundtable on Sustainable Palm Oil and the Roundtable on Sustainable Biofuels, offer practical templates to draw from.
Energy efficiency 101 for IPOs PwC report on 120 IPO filings: Over 84% had sustainability disclosures Companies should have clear positioning on sustainability vis-a-vis competitors
Elisa Wood is a long-time leading energy writer. She can be reached at elisawood@gmail.com
By Elisa Wood At first blush, the economics of energy efficiency seems straightforward. A business installs lighting controls or some other improvement. The business then sees its energy costs drop. From the savings, the business repays the investment over weeks, months or years, and then turns a profit on the asset. While that equation holds true, analysts increasingly value the worth of energy efficiency in other more complex ways as well. The energy efficiency industry, for example, is creating new jobs. Energy efficiency also improves the US energy intensity, that is the amount of energy it takes to support each dollar of economic activity. And now a report by PwC links a business’ sustainability story with its success in undertaking an initial public offering (IPO) before the US Securities and Exchange Commission (SEC). “It literally can pay to ask: if the company files its registration statement with the SEC tomorrow, what sustainability and corporate responsibility story would it tell prospective shareholders?” reports “Factoring sustainability into IPO planning: Disclosure trends reveal a changing landscape” by PwC Transaction Services. The report looked at 120 IPO-related filings before the SEC from 2010
Roughly US$1 of US$8 under professional management in the US today involves a strategy of socially responsible investing. and early 2011 across eight industry sectors. PwC found that companies are increasingly addressing energy efficiency and other sustainability issues as part of a larger corporate accountability trend. In fact, over 84% of IPO filings had some level of disclosure related to sustainability – and not just because they were required to do so by regulators. About 68% of sustainability disclosures came about for other reasons, such as in discussions about weather-related risk or to showcase corporate accomplishment. A full one third of companies in the consumer sector reported either energy efficiency or emissions reduction programmes. Moreover, the report found that public companies, in general, now focus more dollars on sustainability efforts. Roughly US$1 of US$8 under professional management in the US today involves a strategy of socially responsible investing. In addition,
such investments are trending upward. While the universe of professionally managed assets rose only 1% between 2007 and 2010, assets related to sustainable and socially responsible investing grew 13%. The report says companies can increase value when going public by capitalising on sustainability efforts. PwC recommends that before undertaking an IPO, companies develop a clear understanding of how their sustainability story positions them against competition and enhances their appeal to investors. Companies should also consider how sustainability programmes can increase revenue and decrease expenses for their goods and services. This advice comes at a time when IPOs appear to be on the rise after losing steam following the 2008 collapse in financial markets. While there has been some recent volatility, a “robust pipeline” of companies remains in the process of going public as of third quarter 2011, according to a separate PwC report. As they do so, their energy efficiency becomes an increasingly important part of the economic story they present to the investment world. This article was initially published at www. realenergywriters.com •
editorial
Don’t let scepticism stifle your green efforts
Jacquelyn Ottman, a green marketing consultant to Fortune 500 companies, blogs at greenmarketing. com/blog
Acknowledge your weaknesses and explain how you are trying to improve Enlist public support for responsible consumption
By Jacquelyn A Ottman
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Walk your talk Thwart the most discriminating of critics by making visible progress toward measurable goals. Being proactive in responding to the public’s concerns and expectations starts with a visible and committed CEO. That’s because CEOs can create an emotional link between the company and its customers. Empower your employees, too. Educate them on environmental issues and the specifics of the
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company’s processes so they can fuel authentic communications about the company’s green initiatives.
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Be transparent Provide access to details about your products and corporate practices, and continuously report on your progress. In future, disclosure of environmental impacts may be required by law. Get a jump on competitors and regulators – and score some points with consumers – by voluntarily disclosing as much as possible. During this process, don’t hide bad news. Acknowledge your weaknesses and explain how you’re proactively trying to improve.
– creating risk for unsuspecting sustainable marketers. The best advice for green marketers is to adopt specific standards for disclosure of green initiatives and to follow the Federal Trade Commission Green Guides or other appropriate government guidelines. If possible, consult with lawyers who specifically address green claims.
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Enlist the support of third parties Let stakeholders in on the steps you’re taking, and educate the public on how they can help. You can also align positively with third parties that perform independent life-cycle inventories, certify claims and award eco-seals. Certifying your product under appropriate ecolabels lends credibility to environmental messages. When choosing ecolabels, be sure to choose wisely based on how relevant the label is to your brand image. If your product has multiple ecolabels, make sure the standards for each do not conflict with one another.
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Ask businesses why they don’t tout green achievements more often, and their answer will likely be fear of greenwash. Before you let such fears deter you from investing in sustainable technology or promoting green achievements, consider how difficult it is for any advertiser to gain consumer trust. Consumers are always sceptical of advertising. Take the food industry, for example. Food brands have long been under government scrutiny for their advertising claims. Today, companies get smeared for overpromising health benefits, leaving consumers confused about what’s true. But we don’t call that “food wash”. As I wrote in my new book, The New Rules of Green Marketing, scepticism is so rampant in all industries that consumers trust each other more than they trust brands, ads and media messages in general. Scepticism is par for the course. Besides, a little scepticism is good – it keeps us on our toes. The now “Wild West” green marketplace will mature. But as is the case for many established industries, the potential to screw up will always be there. The following strategies will help you avoid greenwash and gain competitive advantage in the process:
Fear of greenwashing accusations should not be allowed to deter the marketer from investing in sustainable technology or promoting the company's green achievements
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Don’t mislead Be specific, prominent and comprehensive. Consumers may claim to know what terms such as “recyclable” and “biodegradable” mean, but they can be mistaken
Promote responsible consumption It’s one thing to design a product to be greener, but you can’t minimise impact throughout the total product life cycle unless consumers eventually use and dispose of your product more responsibly. Enlisting consumer support for responsible consumption is a sure-fire way to build credibility and reduce risk. Products can be designed to make it easier for consumers to minimise resource use. In turn, people will appreciate your efforts to make responsible consumption more manageable. Originally published on the Ad Age Good Works Blog
Shanghai Dec 8 2011 Join Sustainable Supply Chain Forum and learn from professionals ofessionals and experts w who are sharing theirir best practise practises in being green. O Organized ed in Shanghai, December 8th 2011, the susta ility experts ex t challenge of forum gives the stage to sustainability in supplyy chain and tackles the staying sustainable ustainable in China. um concentrates for example ex The forum on Impact mpact of Carbon Footpr Footprint on Supply Chain Strategy y The Im ainabl ble Life Cycle Design and End-of-Life Product Management agement y Sustainable nability as a Brand B – Keeping an Eye on the Bigger Picture ture y Sustainability ergy Transition's Impact on the Logistics Industry ust y The Energy ust-attend event for executives executive interested ested to improve the effectiveness ess of the This is the must-attend ompliance management or in charge harge of corporate responsibility, VPs VP and supply chain compliance senior executives management, es responsible for supply chain, n, sourcing, procurement, risk ma logistics etc.
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For more information, please visit: www.supplychains.com/en/cev/627 •
editorial
Why greenies hate the hard-sell Consumers want to evaluate for themselves the merits of your claims Multiple marketing messages needed for consumers who are motivated differently
Imagine going down the road in your eco-friendly hybrid car (or better yet, your public transit conveyance or your bicycle), listening to some earnest musician's song about global warming. All of a sudden, this commercial is screaming at you: “Go green today! Act NOW to lock in your savings! Call 800-555-CASH or visit www.CashBackEnergySavings. com. That’s 800-555-CASH or www. CashBackEnergySavings.com” (note: phone and URL are fictional). How do you feel about this loud, intrusive interruption? Guess what – that's exactly how your prospects feel when they encounter hypey, in-your-face green marketing. And they tune out. Even well outside the green sector, obnoxious marketing is a lot less effective than it used to be. We have hundreds of thousands of sources for information now, and when one of them gets annoying, we leave. Yes, there are companies out there doing this sort of thing – but no, it doesn't work very well. Even more than the public as a whole, most segments of the green market are turned off by screamy hype. People who are drawn to green products and green lifestyles perceive themselves as thoughtful and intelligent, sorting out a range of competing and sometimes conflicting benefits and demerits to make choices that are good for the earth, and also good for themselves, their family, and their wallets. They are hungry for tools that help them make those decisions. They will demand information they need to thoroughly evaluate for themselves whether your claims make sense and whether your offering is right for them. They will spend time reading articles, pore over websites, check out your endorsements and testimonials, watch informational videos, scan social media •
and blog feeds… and, especially, discuss planned major purchases with a cadre of trusted friends and associates. To make it even more challenging, different sectors within that great big green market will bring different motivations and needs, and respond differently to the same marketing.
People who are drawn to green products and green lifestyles perceive themselves as thoughtful and intelligent, sorting out a range of competing and sometimes conflicting benefits and demerits to make good choices. Let's look at one hypothetical typical green family. Children's health may be the primary concern of the mom, while her husband worries about the soaring cost of heating their home. His mother, who lives with them, has poor circulation and is cold all the time. The teenage daughter wants to make sure the workers involved are paid fair wages for harvesting the crops, but her younger brother is trying to find organic food that tastes good and doesn't seem weird to his classmates. If you try to reach all of these very different constituencies with the same marketing message, all of them will ignore you. One way around that is to do different marketing pieces for each segment; Volkswagen and Apple are two companies that have always done that pretty well. Apple, for instance, markets one set of benefits to graphic artists, a different set to educators, and entirely different ones for musicians and film production people.
Shel Horowitz is the primary author of “Guerilla Marketing Goes Green”. He can be reached at shel@ greenandprofitable.com
But for smaller companies, that approach may be expensive. A better alternative might be to incorporate multiple marketing messages into the same communication. Offer multiple pages on a website or brochure, multiple sections in a retail store, different series of informational documents aimed at different audiences. A manufacturer of energy-efficient window quilts might create a website landing page with the option to click to separate pages for high-end builders (looking for luxury features to differentiate their houses from others), interior designers (all about style), landlords (concerned with cost and appearance, and homeowners (balancing savings, durability and their fashion statement). Or, going back to our imaginary family, the company can market not only by professional affiliation but also by the particular interest. So a different landing page might have links with titles like: • How our window quilts can keep your family healthy and lower your medical bills (mom will read that one) • Why you’re probably throwing away up to $800 every winter – through your windows (dad) • The inside story of why we use only fair-trade cotton and how it's working miracles in the farming villages where we work (daughter) • Looking to have the coolest room in town? Check out these awesome designs (son) • How to stay nice and cozy-warm this winter without putting on a second and third sweater (that page is for grandma). Next month, we'll look at the one of the best kinds of non-hype marketing: positioning yourself as the knowledgeable, helpful expert.
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Fossil fuels propped up with US$409 billion Study shows 54% of subsidies in the OECD countries went to petroleum Nearly half of countries that provide fuel subsidies are now rationalising energy prices
Governments and taxpayers spent a staggering US$409 billion last year – almost US$110 billion more than in 2009 – in subsidies to artificially deflate the price of fossil fuels, the International Energy Agency (IEA) revealed in its latest global survey. “In a period of persistently high energy prices, subsidies represent a significant economic liability,” says IEA executive director Maria van der Hoeven. As such, removing subsidies will raise national revenues and reduce greenhouse gas emissions. G-20 leaders had in 2009 agreed to phase out subsidies that “encourage wasteful consumption, reduce our energy security, impede investment in clean energy sources and undermine efforts to deal with the threat of climate change”. The latest IEA statistics and analysis places pressure on this commitment. “Both developing and developed countries need to phase out inefficient fossil fuel subsidies. As they look for policy responses to the worst economic crisis of our lifetimes, phasing out subsidies is an obvious way to help governments meet their economic, environmental and social goals,” says Angel Gurria, secretary-general
Maria van der Hoeven, IEA executive director
of the Organisation for Economic Cooperation and Development (OECD), an international organisation helping governments tackle the economic, social and governance challenges of a globalised economy. “For this to succeed, we need welltargeted, transparent and time-bound programmes to assist poor households and energy workers who might be adversely affected in the short-term.” Both Gurria and van der Hoeven say subsidies to fossil-fuel consumers often fail to meet their intended objectives: alleviating energy poverty or promoting economic development, and instead create wasteful use of energy, contribute to price volatility by blurring market signals, encourage fuel smuggling and lower competitiveness of renewables and energy-efficient technologies. To help governments understand
the nature and scale of their policies supporting fossil fuels, the OECD has compiled the first-ever Inventory of Estimated Budgetary Support and Tax Expenditures for Fossil Fuels. It details over 250 mechanisms that support fossil fuel production and use in OECD countries. Covering 24 countries, which account for about 95% of OECD’s total primary energy supply, the inventory shows that 54% of this support was for petroleum. Overall, the support to fossil fuel production and consumption in OECD countries was US$45–75 billion annually from 2005 to 2010. The inventory furthers transparency and accountability, providing estimates that will help governments and stakeholders assess these policies as they look at ways to reform subsidies. Work by the IEA, to be published in the World Energy Outlook 2011 on November 9th, demonstrates that phasing out subsidies to fossil fuels, if well-executed, can generate important economic, energy security and environmental benefits. There are some signs of progress: nearly half of the countries identified by the IEA as artifically lowering the price of energy to below the full cost of supply have taken steps since early this year to rationalise energy prices. “The room for policy manoeuvres is increasingly limited, especially in more advanced economies” notes Gurría. “In this context, structural reforms are essential to stimulate growth and employment. There are very few quick fixes though. One of them is the removal of inefficient fossil fuel subsidies.“
Fossil fuel subsidy cuts: How some countries do it
Germany’s historically generous subsidies to hardcoal mining fell from 4.9 billion euros (US$6.8 billion) in 1999 to 2.1 billion euros in 2009, and should be phased out entirely by 2018.
France gradually phased out its support to the coal industry: from more than 1 billion euros in 1990, producer support dropped to 92 million euros in 2007 and then ended. Measures were instituted to address the social cost of mine closures.
Government energy support to consumers in Mexico was US$629 million in 2009, but will decrease as the new national energy strategy is put into place and subsidies are directly channeled to lowincome households, rather than to energy use.
In the United States, where support for energy producers was about US$5 billion on 2009, the 2012 federal budget proposes eliminating a broad group of subsidies – thereby increasing government revenues by more that US$3.6 billion.
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How Singapore upped the ante on liveability Singapore plans to increase its water catchment to 90% of its total area Rail network to grow from 31 km per million population, to 51 km by 2020
Lacking large rivers or lakes, the island was progressively engineered to capture and recycle each drop of rainwater. Today, Singapore has a diversified water supply, with four different sources, also known as the Four National Taps: water from local catchments, imported water, desalinated water, and NEWater (treated used water). Thanks to long-term planning and consistent implementation, Singapore has one of the world’s most extensive urban stormwater harvesting systems. With the completion of the Punggol and Serangoon Reservoirs this year, two-thirds of the island has become water catchments. Alternative sources, such as NEWater and desalination, now meet 30% and 10% of demand respectively. In the next 50 years, demand is projected to double. Leveraging technology and long-term planning, Singapore plans to increase •
its water catchment to 90% of its total area. By 2060, it also plans to ramp up NEWater and desalination to meet some 50% and 30% of water needs, respectively.
Unwilling to sacrifice too much land for roads and cars, the city-state restricted vehicle ownership and use, while delivering extensive public transport. With 12% of land already allocated to roads, the scope to expand the road network is limited. To avoid congestion, the government uses market mechanisms to restrict car ownership and usage. Its Vehicle Quota System allocates ownership rights in an economically-efficient manner, while Electronic Road Pricing allocates road space equitably by charging motorists who are willing to pay for use. These policies have restrained the growth of cars on the roads. However, such restraints are supported by public transport planning. Today, the 130 km Mass Rapid Transit metro network forms the backbone of Singapore’s public transport system. This rail network should grow from 31 km per million population now, to 51 km per million by 2020.
Incapable of supporting urban sprawl, Singapore sought to build affordable and attractive high-rise housing. Today, around 85% of citizens live in good quality, high-rise public housing. A compulsory retirement savings policy, coupled with a scheme that lets people use some of these savings to buy homes, has resulted in one of the highest and most sustainable homeownership rates in the world. Meanwhile, careful planning ensures the achievement of both a high residential density as well as high quality of life. Each satellite town of about 600 ha is
Unable to site industries far from populated areas, Singapore rejected some lucrative investments to avoid pollution, while enticing cleaner industries to operate under strict environmental regulations. The authorities rejected upfront any industries that could not comply with emissions standards, or safely manage and properly dispose of hazardous substances and waste. Other industries, like the manufacture of electrical apparatus and supplies, were only allowed to operate under strict environmental regulations. Special industries such as oil refineries,
Liveability and sustainability are central concerns in both developed and developing countries. While they may seem like contemporary buzzwords, it is useful to think of them as timeless goals in designing cities. A liveable city is prosperous, healthy, harmonious and vibrant, while sustainability speaks to the resilience of our environmental, social and economic systems over the long term. Since its independence in 1965, extreme resource constraints have compelled the city-state of Singapore to confront liveability and sustainability with clear eyes and level heads. Although sometimes difficult to reconcile, Singapore holds that these goals are compatible with, and indeed essential to, industrialisation and modern life. The following examples illustrate how Singapore tackled its limitations.
home to 150,000 to 220,000 people. Towns are planned with an integrated range of facilities, like schools and parks, as well as retail, recreation and employment centres. In line with Singapore’s Long-Range Concept Plan, townships are served by an island-wide highway and metro network. Although Singapore’s population density more than doubled from 3,538 persons per sq km in 1970 to 7,126 persons per sq km in 2010, Mercer’s Quality of Living Survey of 221 worldwide cities in 2010 ranked the city at number 28, making it Asia’s best placed city.
Singapore of today: A liveable city is prosperous, healthy, harmonious and vibrant
petrochemical and chemical plants, and toxic industrial waste treatment facilities were allowed only if they proposed acceptable measures to mitigate pollution, and comply with regulations. Jurong Island, now a global petrochemical hub, is an example of this approach. Singapore’s government agencies and private firms are active in cities across the region, where they are involved in everything from developing transport networks to building technology parks and residential town-
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ships. Complementing these efforts, the Centre for Liveable Cities (CLC) was set up in 2008. Through its Urban Systems Studies, CLC tries to capture tacit knowledge of Singapore’s pioneer policymakers. These studies help to distil and transmit useful principles about liveable and sustainable urban development to a new generation of leaders, in Singapore as well as from other cities, as part of CLC’s Leaders in Urban Governance programme. CLC also co-organises the biennual World Cities Summit (WCS), which brings
together leading urban thinkers and practitioners to discuss contemporary challenges. Entering its third run, WCS 2012 will take place in Singapore from July 2nd to 5th. This article was contributed by Dinesh Naidu of the Centre for Liveable Cities, with input from Phyllis Teoh, Yang Wen, Grace Lau and Joanna Lim, and information from Singapore’s water agency, PUB, the Land Transport Authority, National Environment Agency and Urban Redevelopment Authority.
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Sustainable living: Preserve of the rich?
he questioned whether such projects can ever provide genuine solutions for a burgeoning global population that has just crossed the seven billion mark, most of whom cannot afford “the Masdars of this world”.
Many model eco projects are exclusive, premium developments If the green lifestyle is not equitable, how far is it truly sustainable?
As protestors rallied against socioeconomic inequality halfway across the globe on Wall Street, participants at the recent Sustainable Cities Asia 2011 conference in Singapore were pondering the issues of access and equitability in developing sustainable cities. Amidst presentations on dazzling upcoming projects such as Skidmore, Owings & Merrill’s masterplan for Green Tech City in Hanoi, Vietnam, and the BSD City Green Office Park designed by Aedas for BSD City in West Jakarta, there was a marked consciousness of socio-economic disparities and uneven levels of development across many parts of the Asia Pacific. A delegate remarked that many high-rise green spaces still seem exclusive – created not so much for nature’s sake as for the financiallyprivileged. Another wondered how the region’s rising middle classes could be persuaded to choose fuel-efficient mass transit over a private car. Dr Saaed Zaki, managing director of dwp Thailand, who raised
By Siaw Mei Li
Saaed Zaki: Will we be able to build green cities for the lowerincome?
the debate bar with his provocative questions, says: “Most of the growth in urban populations will be in developing countries – countries where a significant portion of the population will not be in a position to afford fancy dwellings to live in. There will be an impact on the environment. Will we be able to build green cities for the portion of the population that is middle-income, lower-income?” Citing high-profile showcase ecocities being developed in the region at a slow pace and at huge investments,
Democracy and sustainability Paul James, director of the Global Cities Institute in Melbourne, Australia and director of the United Nations Global Compact Cities Programme shares that at most similar conferences he attends, there is a sense of urgency that somehow never gets translated enough into action. He asserts: “The evidence suggests that awareness is not connected to practice.” To this, Robbert Van Nouhuys, director of ACLA in Hong Kong, says: “Hope is the only thing we have. I think we are a species that can only correct ourselves out of serious disasters and we’re a bit close to the edge and a lot of people are going to fall off. But we have to give hope to the next generation because they have to live in the situation that we created. If we are to help future generations, it’s at least by putting the right framework in place, by developing them the way they should be developed.” Van Nouhuys underlines the need for solutions that are “loud, legal and long”, referring to policy frameworks that are clear and unambiguous, legally enforceable and long-term in scope and objective. He cites Chongqing in China as one place where visionary leadership has wrought change at a •
Sustainable mobility vs social mobility The dilemma facing many rising Asian cities was expressed from the floor by conference delegate Abigail Evans when she recalled a quotation, frequently attributed to Margaret Thatcher: “A man who, beyond the age of 30, finds himself on a bus, can count himself as a failure.” How, indeed, could city planners change still-prevalent public perception of private transport as a necessary mark of prestige and progress? At least two speakers – Peter Stueck of Aedas and Dan Ringelstein of Skidmore, Owings & Merrill – admit there’s very little to be done for public transport in their firms’ respective eco-township projects in Indonesia and Vietnam. Elad Eisenstein of Arup remarks, however, that in London at least, class distinctions are being blurred in public transit where a CEO and a low-income person could well share the same Tube carriage. Director of environ •
Djoko Prihanto: Chenjia Town EcoCommunity gets 12% of its energy from renewables
Peter Stueck: Democracy is a very powerful driver [for change], but bureaucracy is not
ment for Greater London Authority Emma Strain obeserved that cycling for commute has gone up hugely in London too, by about 500% over the last ten years, even though cycling rates there are still very low compared to European cities like Copenhagen or Amsterdam. The impact of transport planning
in influencing equitable access for all was also illustrated by Dr George Sun, deputy director of Singapore’s Land Transport Authority. In Singapore, tactile guidance makes navigating key public spaces and transport hubs safer and more comfortable for the sightdisabled, while special transit cards for the less physically agile, such as the elderly, can be used to keep pedestrian lights on green for a longer duration. The tension between achieving sustainable geographical mobility and expressing one’s social mobility also arises in planning an eco-city’s security and landscape features. Djoko explains that in the Chenjia township, incorporating security features within a borderless development required creative solutions through the use of boundaries such as waterways and strategically placed greenery. Stueck, too, acknowledges the challenges of developing a commercial space that enjoys free flow of human traffic while maintaining inconspicuous but sufficient levels of security to keep residents of an exclusive eco-township happy. Paul James, in summing up, notes that ultimately, sustainable cities must be sensitive not only to issues of culture and nature, but also “to the way communities face each other and walk along the streets… it’s built into the whole notion of liveability.”
Number of eco-cities around the world today Europe (70)
Asia & Australasia (68)
The Americas (25)
Middle East & Africa (10)
quick pace, adding: “This would have sounded really strange if we said this 30 years ago, but China is actually one of the catalysts for change for the rest of the world. I can see that very clearly being so close to the source.” An example of the change Van Nouhuys spoke of was seen when Djoko Prihanto, senior vice president of Surbana International’s urban planning group in Singapore presented on the firm’s work in Chenjia Town Eco-Community near Shanghai. He shares that 12% of the energy used by the township is produced on-site via renewable energy infrastructure such as rooftop solar panels. However, when Djoko commented that sustainable initiatives often move faster along under the strong, topdown governance of former communist states or authoritarian regimes compared to places like Indonesia or India where democratic civil participation is high, Saeed Zaki was quick to interject that sustainability should never take precedence over people’s rights to democracy. Peter Stueck, who has spent much time supervising Aedas’ work in Jakarta, then pipes in with a reminder that “democracy is a very powerful driver [for change], but bureaucracy is not.”
China: China: 24 24 Japan: Japan: 16 16 India: India: 14 14
South South Africa: Africa: 33 Uganda: Uganda: 22 UAE: UAE: 11
USA: USA: 17 17 Canada: Canada: 33 Brazil: Brazil: 11
Britain: Britain: 16 16 Sweden: Sweden: 77 Germany: Germany: 66
Source: Simon Joss, International Eco-Cities Initiative Background photo is an artist impression of part of the Knowledge Centre, Masdar City
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Hybrid, electric cars make little inroads in India In India, cost of hybrid cars over twice that of fossil-fuel cars Diesel the default choice as petrol prices rise and EVs stay unaffordable
By Tejas Patel
Slow indigenous EV growth Currently, apart from the Mahindra Reva, most hybrid cars are imported into India as completely built-up units. The Reva was launched in 2001 and is the only successful locally-made passenger car running on chargeable batteries. Two new models – Reva NXR and Reva NXG – will be launched in 2012 and 2013, respectively. Apart from the Reva, other hybrid/ electric cars available in India are the Honda Civic hybrid, the Toyota Prius and the Porsche Cayenne hybrid. Toyota launched the Prius last year at a price of around US$52,910. Sales reception was dismal: the company sold only 14 cars between December 2010
and January 2011. Other cars expected to be launched in the Indian market include: 1. Chevrolet Spark Electra: The Spark is sold by General Motors. The electric version is expected to be launched later this year at US$7,100 to US$10,100. 2. Tata Indica Vista Electric: Tata Motors is expected to launch this car this year. The price will fall in the US$12,210 to US$14,245 bracket.
A recent global consumer survey by Deloitte revealed that in countries like Brazil, China and India, over 85% of the respondents indicated “potential first mover” or “willing to consider” levels of interest in electric vehicles. Amid rising fuel prices, depleting resources and environmental concerns over fossil fuel use, the Indian government has proposed, in the current budget, to set up a National Mission for Hybrid and Electric Cars to encourage the production and sale of such vehicles. In India, hybrid cars cost 70– 100% more than conventional cars running on petrol, diesel, compressed natural gas (CNG) and liquefied petroleum gas (LPG) as they attract higher excise duties. Half-hearted attempts by local auto companies to produce hybrid cars are doing little to help the situation. While neighbouring Sri Lanka has introduced a new tax regime that imposes only 50% duty on hybrid vehicles and up to 450% on vehicles running on fossil fuels, India has yet to put in place similar policies.
Chetan Maini, deputy chairman and CTO of Reva with the new Reva NXR electric car
3. Hyundai i10 EV: This EV was unveiled by Bollywood superstar Shah Rukh Khan at the Delhi Auto Show 2010. The car, which has a 49 kW electric motor, will be launched at a later date. 4. Mahindra Scorpio Hybrid: This car has a diesel-electric engine. It will come with a 2.2l 4-cylinder common rail diesel engine that can provide 115 bhp. The engine also has a complementary 288-volt NiMH battery, reports auto website Carazoo. The price is expected to be around US$24,420. 5. Honda CR-Z Hybrid: Honda Siel Motors will import a few completely built-up units of this model.
First things first – infrastructure Another critical requirement to encourage the sales of hybrid/electric vehicles in India is the development of EV infrastructure. “We showcased the electric i10 in the Auto Expo last year. A few cars are running in Korea now. We have the product and the technology, but unless infrastructure is put in place, it does not make sense to introduce the car here,” says a spokesperson for Hyundai Motor India Ltd (HMIL) in an Indian business daily. Chairman of Maruti Suzuki India Ltd (MSIL) R C Bhargava echoes the view. He told India’s Rediff.com: “Even if the technology is developed, there are no charging points available for users. Infrastructure has to be set up to promote the use of electric and hybrid vehicles.” Greener auto policies needed The absence of a comprehensive national government policy encouraging the production, sales and use of hybrid/electric vehicles has, among other things, contributed to higher sales of diesel vehicles as petrol prices continue to rise, and this is affecting the air quality and health of urbanites, claims Delhi-based NGO Centre for Science and Environment. “The government has been hiking petrol prices at regular intervals. But it is ignoring the impact of diesel consumption on public health in the form of rising levels of killer particles and ozone,” says Anumita Roychowdhury, executive director of research & advocacy and head of CSE’s air pollution control team. Rising petrol prices and the government’s move to keep diesel prices untouched has contributed to this rising demand for diesel cars. In fact, auto industry sources say, diesel cars may account for 50% of all passenger vehicle sales. With India developing as a regional automative hub, there is much to gain if the government has policies promoting the research, development, manufacture and sale of electric and hybrid vehicles – not only for the sake of domestic consumers, but also to meet the expectations of increasingly eco-savvy international markets. •
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No plug-and-play for solar Six guidelines on potential profits and risks of getting into the solar energy sector For all investors, profitability depends ultimately on local irradiation levels
Those who imagine that generating solar energy is plug-and-play that comes with sure profits would do well to hear out Emmanuel Guyot. While the director of project development for Asia Pacific and Middle East Conergy Renewable Energy gladly welcomes more clients, he wants them to understand both the potential profits and pitfalls of getting into solar. Guyot, who spoke at one of the workshops at the 2nd International Greentech and Eco Products Exhibition and Conference Malaysia 2011 (IGEM 2011), says although solar electricity generation is a straightforward technology and the returns on investment is predictable and easily calculated, the reality can be harsher than what some people would like to portray. He warns against a number of pitfalls, which could determine whether the investment eventually pays off or flops. Guyot’s advice and guidelines are based on his company’s years of experience in delivering synchronised solar systems, which collectively
By Stephen Ng
Emmanuel Guyot: His company produces more than 1.5 GW of clean solar energy worldwide
produce more than 1.5 GW of clean solar energy worldwide:
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Choice of technology The solar plant requires a lower level of maintenance than other technologies; therefore, once installed, its success or failure will largely depend on the design, including even the type of mounting used and the inclination of the solar panels towards the sun. The wrong technology choice could result in huge revenue loss. In a solar system,
there are two major areas of energy loss: (a) module efficiency, and (b) inverter efficiency. Inverter efficiency is as important as module efficiency because irradiation multiplied by efficiency equals system output. Inefficiency, he reiterates, will ultimately affect the cash flow. “If you lose 6% of the yield due to a combination of inverter and module inefficiency, this is translated into 6% loss of your cash flow. Take for example, a 10 MWp solar farm in Malaysia with an estimated output of 15 GWh/year,” he says. “If there is a 6% efficiency loss, this works out to be 0.9 MWh/year or about RM1 million (US$313,000) a year in revenue based on the current feed-in tariff (FiT). Extrapolated to 25 years of project lifetime, the loss amounts to RM6.7 million on project net present value (NPV) or approximately 1.8% on project equity internal rate of return (IRR). If the IRR is 10%, and it drops to 8%, this can turn a viable project into a totally non-viable one.”
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Wrong project timing and delays A project can be affected by delays in financial closure by banks or seasonal climate such as the monsoon. Other risks include the expiry of the power purchase agreement and major agreements such as the land lease being renegotiated. Guyot says a three-month delay could, for example, translate into a cash flow reduction of about RM4.5 million, which would give a higher weight in NPV calculations, and ultimately, irreversibly deteriorate the project IRR.
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Solar park Sulzemoos, Germany •
Change of policy framework While the IRR for a solar PV system can be calculated easily, the future is unpredictable. For example, in 2009, no one expected the credit crunch to hit Europe. A revision of policy in Spain was inevitable and this caused the production of renewable energy from solar panels to suddenly dip from 3,500 MWp in 2008 to 100 MWp in 2009 and 380 MWp in 2010. Although Malaysia’s FiT is based on a 21-year agreement, Guyot cautions, no one can tell how things may change as economic and market conditions (leading to change of policy framework) are never constant.
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Wrong partnerships The choice of partnership and equity may determine the success or failure of a consortium. There are investors who think long-term while others only have short-term interest in the PV project. It would be good to have different types of investors as they would have different targets, strategies and exit strategies. Shares of short-term investors can be bought up by those with long-term interests.
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Absence of guarantees Choice of engineering procurement and construction (EPC) is crucial to projects. Some EPCs may not provide guarantees, and this could lead to project failure.
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Absence of exit strategies Because of the strong push to implement solar PV systems, some investors fail to develop exit strategies, and this could lead to problems in
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“If you lose 6% of the yield due to a combination of inverter and module inefficiency, this is translated into 6% loss of your cashflow.” the short to middle term. “Among the types of exit strategies are sector trade sales, buyback of shares by remaining shareholders, and in the case of projects with a minimum of 50 MWp, the shares can be sold in an initial public offering,” he says. “Whatever it is, there must be some clear exit strategies, to allow the venture to continue without being disrupted.” Aside from Guyot, other solar PV experts also reminded workshop participants that solar electricity is produced from the sun’s irradiation,
which is reduced in cloudy conditions. Land use issues and other bureaucratic hurdles could also hamper a PV project. Profitability depends ultimately on local irradiation levels. And, as another participant pointed out, much of the investment in a home-mounted system may be lost if the home-owner moves and the buyer puts less value on the system than the seller. In summary, Guyot says six key factors need to be looked into for successful financial closure: • Bundle projects of 5 MWp together; time taken for banks to approve a 5 MWp and a 10 MWp is the same • Make proper simulations, anticipating environment changes • Identify the right partners • Define precise exit strategies • Allow fast and transparent access to information • Anticipate timing sequence of events and delays.
Global 500 bottomline: Green is the new black 68% of companies now integrate climate change as part of business strategy Good management of climate change a general product of well-run companies
By Tan Su-Yin
Green is profitable for the world’s biggest public companies. The 2011 edition of the annual Carbon Disclosure Project (CDP) Global 500 found for the first time in its ten years of survey that the majority of the companies, in fact two thirds (68%), are integrating climate change initiatives into their business strategy. This is a boost from 48% in 2010. Better still, almost all (93%) respondents report board or senior executive oversight for the company’s climate change programme. The report, entitled “Accelerating low carbon growth”, analysed disclosures from 396 of the world’s
largest companies (representing 81% of the Global 500). The report also showed a marked rise in the number of companies reporting reduced greenhouse gas emissions as a result of emissions reduction activities (45%, up from 19% in 2010). “It’s a natural progression,” says Marcus Norton, head of Investor CDP and CDP Water Disclosure. “When the CDP started in 2002, companies generally weren’t measuring their emissions. Measuring is the first step. It takes a bit longer to see things in a strategic manner but companies are now seeing the importance of climate change action. I foresee more
significant changes in the years ahead as more countries introduce carbon regulation, and consumer concern over climate change and greenhouse gas emissions increase.” A correlation was also established between higher stock market performance over time, and representation on CDP’s Carbon Performance Leadership Index (CPLI) and the Carbon Disclosure Leadership Index (CDLI). Companies with a strategic focus on climate change provided investors with double the average total return of the Global 500 from January 2005 to May 2011. These leaders outperform the Global 500 by some 40 percentage points over the six years. The CPLI measures performance in taking action on climate change while the CDLI measures the quality of disclosure. This suggests a strong correlation between higher financial returns and good carbon disclosure and good carbon management. It does not indicate that one causes the other, and increased profitability may be due to the fact that a good climate change •
“Good management of climate change is a sympton of good management.”
The majority of emissions reduction activities reported by Global 500 respondents (59%) have a payback period of three years or less. The most popular activities are energy efficiency activities of building services and processes (94%), low-carbon energy installation activities (23%), and behavioural change (22%), which include the training and education of staff in behaviours such as low-carbon commuting and maximising energy efficiency of IT stations. In the report, Tesco disclosed that by reducing emissions, it is saving more than £200 million (US$312 million) annually on energy costs. One of the respondents, Air Products & Chemicals, undertook multiple projects to reduce heating/cooling at the company headquarters by
Ian Woods, head of sustainable funds for AMP Capital Investors
“We are seeing greater enforcement of environmental regulation in many Asian countries.” modifiying temperatures controls and adding automatic lighting. The move cost US$1,000 and resulted in savings of US$30,000 a year. The company has joined the CPLI for the first time. While cost management is the main motive for green initiatives, climate change action is also linked to opportunities and risk management. The consumer staples sector reports a growing market for sustainable products with locally-sourced, low-carbon products and sustainable packaging. With growing scarcity of natural resources, companies now support suppliers to adopt environmentally responsible practices, says the report. “Good companies also focus on strategy and market dynamics, being aware of market and regulatory changes and positioning the company
Lack of transparency on carbon disclosure in Asia If disclosure and managing greenhouse gas emissions is linked to sustainable shareholder returns, Asia has to work harder to catch up. Just 65 of the 119 Asian companies that were approached for the Global 500 report responded. The rate of Asian disclosure in the history of the Carbon Disclosure Project’s (CDP) Global 500 report has been consistently low, never rising above 15% of responses, despite Asia accounting for 119 companies listed on the Global 500 index. In the largest non responders by market capitalisation table, Asia is the most dominant continent, with 40% representation. Marcus Norton, head of Investor
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CDP, says he expects the response rate to improve. “It’s a bit of a journey for companies, and it’s not necessarily easy to report on something that hasn’t been on your agenda. You cannot report until you have effective systems in place, and that takes resources, commitment and time – maybe a year or two – to put in place.” In addition, the study finds that Asia, like North America, has a low proportion of companies in the Carbon Disclosure Leadership Index (CDLI) relative to its percentage of the total Global 500 respondents. Asia represents 15% of the total responses but just 8% of the CDLI, compared to Europe – which accounts
for 58% of the CDLI but just 34% of the responses. However, those companies that have responded show encouraging action on climate change. In the Asia ex-Japan region, 68% of respondents have board or executive level responsibility for climate change and 83% have climate change strategy incorporated into their overall business strategy. “Generally, what we find is that when companies start reporting, they don’t stop reporting, so that is the first step. Then year on year, the performance improves and the quality of disclosure improves,” says Norton.
Marcus Norton, head of Investor CDP and CDP Water Disclosure
strategy is also correlated with other success factors. “The graph is quite compelling, says Norton. [The correlation] is quite logical too, because good management of climate change is a symptom of good management, and companies with good management will perform well.” Dr Ian Woods, head of sustainable funds for AMP Capital Investors, says in general, the Global 500 report findings are replicated in Australia. “As an investor, we see that good management of climate change risk is a good indicator of (depending on sector) risk management, effectiveness of operational systems, and the management’s ability to address complexity and/or strategic focus. In Asia, it depends a little more on both the country and the sector, but the general relationship between management quality and climate change risk management still applies, especially in emission-intensive industries,” says Woods. “In some countries, the management of climate change risk is also linked or aligned to management of energy security and/or energy pricing risk.” Part of the debate over embracing environmental factors is whether the cost of adhering to higher standards translates into higher prices and lower profitability, or whether more cost-efficient use of resources creates competitive advantage. One allure of reducing carbon emissions is the ability to deliver cost savings and a rapid return on investment.
appropriately,” says Woods. “We are seeing greater enforcement of environmental regulation in many Asian countries, especially eastern China, and this is having a material impact on manufacturing and energy intensive sectors.” The CDP is an independent notfor-profit organisation holding the largest database of primary corporate climate change and water information in the world. It acts on behalf of 551 institutional investors, holding US$71 trillion in assets under management, and some 50 purchasing organisations.
Response rate in Asia for the Global 500 Carbon Disclosure Project China
2/13
Hong Kong
5/17
India
10/18
Indonesia
1/4
Japan
33/40
Malaysia
1/3
Singapore
1/6
South Korea
7/10
Taiwan
4/6
Thailand
1/2
Source: CDP
Top 10 best performing companies on the Global 500 Carbon Performance Leadership Index and Carbon Disclosure Leadership Index for 2011 Bank of America, Cisco Systems
Japan
Honda Motor Company, Sony Corporation
Germany
Bayer, BMW, SAP
United Kingdom
Tesco
Netherlands
Philips Electronics
Australia
Westpac Banking Corporation
Source: CDP
New entrants to the 2011 Carbon Performance Leadership Index* USA
Air Products & Chemicals, Lockheed Martin, Morgan Stanley
Japan
Honda Motor Company, Sony Corporation
Germany
SAP
France
AXA Group, Schneider Electric
Italy
ENEL, FIAT
United Kingdom
British American Tobacco, BG Group, Glaxo SmithKline
Switzerland
Novartis
•There are only 29 companies due to the more demanding criteria applied by the Carbon Disclosure Project Source: CDP
Largest Global 500 non-responding companies in 2011 Country
Company
Sector
USA
Amazon.com
Consumer discretionary
Russia
Rosneft
Energy
China
Bank of China
Financials
USA
Berkshire Hathaway
Financials
China
China Life Insurance
Financials
Russia
Sberbank
Financials
India
Reliance Industries
Industrials
USA
Apple
Information technology
Mexico
America Movil
Telecommunications
China
China Mobile
Telecommunications
Source: CDP
1. Algae biofuels release only one fifth of the carbon emissions of fossil fuels but production costs need to go down by 90%. 2. Zinc-air batteries will make laptops more portable, electric vehicles more affordable and hearing aids more reliable. Zinc is recyclable and 100 times more plentiful than lithium ion. 3. Organic solar cells can provide safe lighting in places like Africa and India but makers struggle to get more than 9% light-to-energy conversion. 4. Marine energy from waves and tides are still double what is commercially viable. The UK, US, Canada and Norway are the leaders in this field.
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USA
Top 10 cleantech breakthroughs
Tidal power uses turbines to harness the energy contained in the flow of ocean tides
5. Smart lighting is an innovationrich area. Lights that screen for biochemical hazards or which can provide internet access are in the pipeline. 6. Pyrolysis oil is made by burning waste at 500°C. A UK pilot due to start in 2014 hopes to make this oil commercially viable in 10–15 years. 7. Building micro-automation will revolutionise home automation systems with radio signals emitted in response to tiny temperature fluctuations to command other building automation equipment. 8. Reliable offshore wind technology: A consortium of energy companies is looking into sturdier design, installation and maintenance. 9. Cost-effective desalination processes: Current technologies are expensive and energy intensive, resulting in huge interest in technologies that improve filtering mechanisms of basic osmosis and reverse osmosis techniques. 10.Carbon capture and storage may reduce carbon emissions from big emitters such as gas and coal power plants and cement producers by 90%. This list was compiled by Guardian Sustainable Business of The Guardian, UK •
information
RSPO
RSPO moves on without GAPKI RSPO says they have continued firm commitment from Indonesian grower members CSPO uptake at 70% in September compared to 48% same month last year
All’s not well at the Roundtable on Sustainable Palm Oil (RSPO). On September 30th, the seven-year-old initiative received a body blow to its multi-stakeholder image when the organisation that represents Indonesia’s palm oil producers withdrew its membership. The move by the Indonesian Palm Oil Association (GAPKI) is significant because Indonesia is the world’s second largest producer of certified sustainable palm oil (CSPO), just behind global leader Malaysia. GAPKI executive director Fadhil Hasan reportedly said the association decided to come out of the group as it already has the Indonesian Sustainable Palm Oil (ISPO) certification, a rival benchmark. Industry observers say the big growers are unhappy that the conversation within the RSPO is overwhelmed by non-governmental organisations (NGOs) that are dead against deforestation for oil palm plantations, among other issues. Even Malaysia recently said that it will be developing its own benchmark for sustainable palm oil. This, when it happens, can be expected to further confuse the market. GAPKI’s decision – and Malaysia’s intention – will be grist for the mill at the upcoming RT9, the RSPO’s annual roundtable meeting, to be held from November 22nd to 24th in Sabah, Malaysia. Growers are expected to hold this up as an example of the need for NGOs to be flexible in their stance and to acknowledge the need for plantations to grow. There is also frustration that despite the RSPO, NGOs are still using the palm oil industry as a punching bag. RSPO secretary-general Darrel Webber describes the GAPKI withdrawal as “regrettable”, pointing out that individual members of GAPKI are not obliged to follow suit. “Since the announcement, we have noticed a •
By David Lee
RSPO secretary-general, Darrel Webber says Indonesian grower members continue to be firmly committed to RSPO since GAPKI’s announcement
“RSPO’s international certification standard has been constructed through intense research, dialogue, contributions and consensus by a diverse group of stakeholders from all around the world.” continued firm commitment to RSPO by Indonesian grower members,” he notes. And that’s a telling point; the GAPKI withdrawal is symbolic. Indonesian growers are still with the RSPO because RSPO has the support of the world’s biggest buyers, and without the CSPO brand, they may not be able to sell their sustainablyproduced palm oil. Currently, the ISPO has yet to build up its credibility and establish market acceptance. At the heart of the debate is the fact that certification is important to mature markets, which demand sustainability, and this is where CSPO scores.
Says Webber: “RSPO’s international certification standard has been constructed through intense research, dialogue, contributions and consensus by a diverse group of stakeholders from all around the world. These standards are widely recognised by our expanding membership base of over 500 members in over 40 countries. “The fact that sovereign nations are developing their own national standards for sustainable palm oil is a clear testament to the needs and demands of markets. This only goes to reinforce what the RSPO aspires to achieve by bringing together various stakeholders within the palm oil supply chain.” At the end of the day, it is really up to market forces to determine how they plan to meet their sustainability targets – with RSPO or with national standards. In fact, following the GAPKI announcement, the RSPO reported a strong growth in market uptake of CSPO – 70% in September 2011 compared to 48% in September last year. Uptake for CSPO rose from 25.3% in 2009 to 46.2% in 2010. RSPO president Jan Kees Vis, also director of sustainable sourcing development at Unilever, says: “Historically there has always been a delay in market take-up versus production increase, as buyers of large companies have to commit as long as a year in advance to buy raw materials. So they will only sign on to what they are sure they can actually purchase from the market in future.” Belinda Howell of the Retailers Palm Oil Group says they know that growers that have made significant investments to achieve RSPO certification have been frustrated by the lack of appetite (for CSPO) in the market. “So it is good news to see that now more than two thirds is taken up,” she says. “The retailers are working hard to source CSPO ingredients for their products.” Their statements, however, did not address another major grouse of growers – that CSPO does not carry a premium that will cover the cost of meeting CSPO certification and make it worthwhile. Despite this, growers have achieved 1 million hectares of certified production area.
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Google powering homes with solar Google has set up a US$75 million fund to finance some 3,000 home solar power installations in California, Colorado and Arizona. Clean Power Finance, hired to oversee the fund, will offer leases and power purchase agreements that installers then market and sell to homeowners. An installation costs around US$30,000 and installers who offer financing options attract more customers. This is the second fund for Clean Power Finance, which started in 2007 as a developer of software for installers to sell and design solar systems. The US$75 million is also the second residential solar fund for Google, which earlier this year announced a US$280 million fund for California-based SolarCity to administer. SolarCity also offers leases and power purchase agreements, but has its own installation crew. (Source: Forbes)
California academy with Double Platinum LEED
BrightFarms wants to grow lettuce on your roof If you’re a grocery store in the US, BrightFarms thinks your roof would make a fantastic location for a hydroponic greenhouse. The company designs, finances, builds, and manages rooftop greenhouses for food retailers – at a cost of up to US$2 million a pop – in return for a long-term contract to purchase the output. CEO Paul Lightfoot says his mission is to reduce transport and storage costs and provide fresher, healthier produce for consumers. Its hydroponic greenhouses, which produce lettuce and leafy greens, herbs, tomatoes, peppers, and cucumbers, use 95% less water than traditional planting, with no chemical pesticides and a drastically
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information
green, it uses only post-consumer recycled paper, all its electronic wastes are sent for repair, reuse or recycling, and 60–65% of its waste are diverted from the landfill into recycling and compost, including waste from 1.5 million visitors a year. Also, 70% of the staff use public transit, or bike or walk to work.
Singaporean companies not walking the talk
The California Academy of the Sciences celebrated its third birthday being honoured with the US Green Building Council’s Double Platinum LEED certificate for sustainable building. The 400,000 sq foot San Francisco building with a living roof is the first museum in the world to earn the award. It is also only the fifth building in the world to earn the green honour, and the largest. It was a challenge for Italian architect Renzo Piano to create a design that was both environmentally-friendly and able to house an aquarium, a planetarium and a natural history museum. The academy incorporates sustainability in its purchase decisions. Among its long list of green achievements are that its electronics are •
Singaporean companies know the importance of green IT but are not as active in implementing supporting activities, says a study commissioned by Fuji Xerox Singapore that was released late September. Respondents of the survey reported that their companies are already implementing eco-friendly IT measures, with 81% practising better management of their desktop PC power usage and 74% having adopted videoconferencing. Server virtualisation also saw rising adoption with 44% using the technology, but costs and technical complexity deter higher uptake. However, the study also showed that while 76% of respondents recognise the need for green IT certification or training of staff, only 6% had any programmes in place. The majority (80%) do not have plans to equip their staff, while 11% say they are exploring
reduced carbon footprint. “The current produce supply chain is broken,” Lightfoot says. Half of the cost of a head of lettuce in New York comes from transporting it from some far-off field on a carbon-spewing refrigerated truck, and because it’s been in transit, it wilts more quickly. The same goes for other perishable vegetable or fruit. (Source: Fast Company)
options. The study, conducted by Connected Insights, polled 150 local companies of more than 100 employees each. They were assessed according to seven criteria: green office practices; green procurement; green document management; green technology adoption; green IT certification or training; green IT outsourcing; and carbon trading awareness. (Source: www.zdnetasia.com)
Swedish award goes to Chinese solar entrepreneur A Chinese citizen won, for the first time, one of the four awards under the Right Livelihood Awards since the prize was instituted in 1980. The honorary award, announced on October 2nd, went to solar energy entrepreneur Huang Ming “for his outstanding success in the development and massdeployment of cutting-edge technologies for harnessing solar energy, thereby showing how dynamic emerging economies can contribute to resolving the global crisis of anthropogenic climate change.” Right Livelihood Foundation executive director Ole von Uexkull says growing climate
Norwegian photovoltaics (PV) group REC is closing three wafer and cell plants in Norway and firing some 700 workers. In May, REC began temporary layoffs and idling production capacity in Norway in response to falling prices, even as it continues running its new factory in Singapore at full throttle. Over the summer, REC extended the shutdowns and issued increasingly pessimistic proclamations about the PV industry. It has now indicated that the bulk of its production will take place in lower-cost countries for the foreseeable future. The company will pull the plug on 775 MW of production capacity at its oldest polycrystalline wafer plants at Heroya and Glomfjord, as well as 180 MW of capacity at its cell plant in Narvik. Outside of Norway, REC’s 700 MW integrated wafer, cell and module factory in Singapore and its 19,000-tonne polysilicon plant in the US are running at full steam. (Source: Rechargenews. com)
Treasure hunt for energy efficiency More and more companies are turning their employees into hunters with one purpose: to identify and quantify energy saving opportunities. Over the last decade, GE uncovered US$150 million in energy-savings through 200 treasure hunts. To differentiate itself from other lenders, GE Capital, Americas, GE’s commercial lending and leasing arm, offers its best customers training and assistance in conducting energy-efficiency treasure hunts. An exercise at Exopack’s facility in Griffin, Georgia, ended with a road map of projects that, if implemented, could slash the plant’s
Singapore-based supermarket chain Cold Storage has joined the WWF Singapore Sustainable Seafood Group and announced it will stop selling all shark fins and shark products at its 42 outlets in the island state. The seafood group that was launched in April provides businesses with the guidance to source and promote sustainable seafood. Cold Storage is the first supermarket in Singapore to implement a “no shark fins policy”. It is also Singapore’s first retail food chain to source and offer sustainable seafood recommended by WWF, and offers Marine Stewardship Council (MSC)-certified seafood such as An Exopack treasure hunt team surveying the plant for energy-saving opportunities
energy costs by 30%. Employees discovered over US$400,000 worth of opportunities to reduce energy spend at that plant, which spends US$1.5 million a year on energy. (Source: www. greenbiz.com)
the hake fillet from South Africa. The supermarket is a subsidiary of Dairy Farm, a leading pan-Asian food retailer that operates more than 5,300 outlets and employs some 80,000 people in the Asia Pacific region. Some 100,000 tonness of seafood is consumed each year in Singapore, making it one of the biggest seafood consumers in the Asia Pacific region. (Source: www. panda.org) ence in aviation biofuel flight tests. It will work with Boeing, Petro China, UOP and other key stakeholders to implement the first biofuel flight in China late this year. Significantly, the biofuel is produced from locally grown plants. A trans-Pacific biofuel flight is also expected to be implemented later. (Source: Air China)
Kyocera PV modules for Nagoya expressway
Air China to use sustainable fuel
REC shuts down in Norway, full throttle in Singapore
No shark fins for sale at Cold Storage
chaos is the greatest challenge for humanity, and a key solution is to use renewable energy as much and as rapidly as possible. “If China does not take a leading role in this effort, the rest of the world will not be able to do enough and will not choose to do enough.” (Source: www.asianscientist.com and scandasia.com)
Air China has announced its intention to join the Sustainable Aviation Fuel Users Group (SAFUG), the first Chinese airline to do so. Established in 2008, SAFUG supports the commercial use of lower-carbon renewable fuels derived from environmentally and socially sustainable sources to achieve carbon-neutral growth across the industry. Twenty-three other airlines are in the group. By joining this group, Air China will participate in studies on aviation biofuels, and share its experi-
Kyocera Solar Corporation, a sales subsidiary of Kyocera Corp, has supplied about 9,500 photovoltaic (PV) modules to the Nagoya Daini-Kanjo Expressway (called “Mei-nikan”) that is managed by Central Nippon Expressway Co. Two megawatts of PV modules have been installed at three locations on the Ueda, Arimatsu and Narumi sections of the Mei-nikan. The total power capacity will be the largest among PV systems installed on Japanese highways. The system is expected to generate 2,180 MWh •
Kingspan rescues wind turbine maker Proven Energy Ireland-based Kingspan Renewables snapped up Scottish wind turbine maker Proven Energy after the latter collapsed following discovery of defects in its largest model. The sale was arranged by receiver KPMG after a bidding process. However, Kingspan says it will not be responsible for Proven’s outstanding guarantees. Nearly 60 workers were retrenched in September after Low Carbon Accelerator, Proven’s principal financial backer, withdrew support following discovery of design problems in the P-35-2 turbine, rated at 12.1 kW. Kingspan, a building products supplier which diversified into rooftop solarthermal, air-source heat pumps and other renewables-related kits in recent years, says it plans to launch 6 kW and 3 kW turbines based on Proven’s P-11 and P-7 models. Kingspan trades on the Irish stock exchange with a market capitalisation of over 1 billion euros (US$1.37 billion). It intends to continue manufacturing from Proven’s existing facility in Stewarton, southwest Scotland. (Source: Rechargenews.com
Food chain with non-electric automatic sliding doors Ohsho Food Service Corporation, a company running the Chinese restaurant chain Gyoza-no-Ohsho in Japan, has installed automatic sliding doors that do not use electricity. The first AutoZeroZone were installed at its restaurant in Suita, Osaka and at a new restaurant in Kanazawa, Ishikawa, in July 2011. The Suita restaurant was •
annually, enough to power some 460 households. The generated power will cover part of the electricity used for lighting and operating toll gates, which amounts to 40% of the annual energy use of the Mei-nikan (between Nagoya Minami and Takahari junctions). Kyocera now has the largest share of PV systems on highways in Japan in terms of capacity. (Source: http://www. japanfs.org)
honoured as one of Osaka’s “electricity saving challenge shops”. The AutoZeroZone was developed in 2009 by Yuki Corporation, a material processing firm in Fukushima prefecture. When a person steps onto a plate embedded in the floor in front of the door, a mechanism uses his or her weight to open and close the door. The under-40kg door can be opened with just 20 kg. Although its installation is 20% more expensive than that for a regular electric door, the AutoDoorZero saves energy and works even in a blackout. The doors have also been installed in schools in Tohoku, highway rest areas and banks. (Source: http:// www.japanfs.org)
Mitsubishi Electric begins full-scale smart grid tests
Mitsubishi Electric Corporation has begun full-scale tests of smart grid and related smart-community technologies in Japan, targetting to sell 1.3 trillion yen (about US$17 billion) worth of products, including commercial systems, equipment and solutions, by March 2016. Since 2010, Mitsubishi has been developing smart-grid infrastructure worth 7 billion yen, including systems for supply and demand management, next-generation distribution management, and advanced metering and energy management. The testing will focus on four main areas: demandsupply balancing (technologies and algorithms to manage a large amount of renewable energy connected to the grid), distribution network management (technologies and equipment for voltage control), total grid operation for the future (comprehensive evaluation of the environment in 2020) and specific operations (technologies for independent micro grid such as
islands). The tests will also look at performances in severe conditions, such as damage to the grid by earthquakes and lightning. (Source: Mitsubishi Electric Corporation)
US makers challenge Chinese dumping of solar panels US producers of solar cells and panels, led by SolarWorld Group, SolarWorld Industries America Inc, have submitted a four-volume petition to the US Department of Commerce and the US International Trade Commission, against unfair trade practices by the Chinese government. The group is challenging the Chinese solar industry that is flooding the US with solar cells and panels at dumped prices. This action against unfair trade practices is one of the largest against China in the US, and it is the first in the field of renewable energy worldwide. Yingli Green Energy Holding Company Ltd, one of the world's largest vertically integrated photovoltaic manufacturers said it is reviewing the petitions and reminded everyone that such petitions obviously present “only the views of one side and only a partial view of a very complicated story.” “We intend to mount a vigorous defense,” Yingli says in a press statement. (Source: Solarbuzz)
GE names Colorado site for largest US solar panel factory General Electric (GE) will build its 400 MW solar panel plant – set to be the largest in the US – in Aurora, Colorado. The site is near the home of PrimeStar Solar, which GE acquired to gain its thin-film PV technology. GE says it will start production in 2012, with panels becoming commercially available in 2013. The investment – part of the US$600 million GE is investing in solar – signifies confidence in the US solar market and in GE’s ability to compete with China products. GE aims at producing very lowcost PV modules. Vic Abate, GE vicepresident of the renewables business, says companies must achieve costs “well under US$1 a watt” to survive,
and that GE has targeted a conversion efficiency of at least 14% for its modules. (Source: Rechargenews)
Malaysian women weave low-carbon baskets Over the last eight years, Salaam Wanita in Malaysia has helped at least 300 disadvantaged women work from home. The project by eHomemakers teaches women to weave eco-baskets from old magazines, which are then varnished for water-resistance. YTLSVCarbon Sdn Bhd helped Salaam Wanita calculate the carbon footprint of the various-sized baskets to be between 0.54 and 9.98 kg of CO2 (excluding shipping) per basket. Soo Yoke Cheng, a single mother, depends on basket weaving to feed her school-going children. Agila, who suffers from a nerve disease, partly finances her medicine bills through work done in this project. At least 70% of the basket price goes to their makers, way above Fair Trade requirements of 25%. The project depends mainly on corporate buyers to keep production going. Baskets are also sold online at www.justmarketing.info
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EnviroAsia 2011 (5th International Environmental Technologies Exhibition & Conference) 22nd-25th November 2011 Suntec, Singapore www.enviro-asia.com The Arab Renewable Energy Congress 29th-30th November 2011 Grand Hyatt, Amman, Jordan www.greenpowerconferences.com/AREC2011
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World Bank eyes issue of green sukuk The World Bank is in talks with governments of developing countries on the viability of issuing green Islamic bonds, or green sukuk, to fund lowcarbon development or environmental projects. World Bank senior counsel Wong Sau Ngan says the sukuk can be an effective financial instrument for development. The bank is already issuing World Bank Green Bonds to support projects that help countries mitigate climate change. However, Wong says, there are challenges on quality, complexity and legal certainty, adding that the World Bank is collaborating with the Islamic Financial Service Board (ISFB) to identify issues for Islamic institutions should there be insolvencies. She says Malaysia has the capacity to offer green sukuk, being a leader in the sukuk market. (Source: Bernama)
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Unplugged: Electric vehicle realities versus consumer expectations DTTL Manufacturing Industry Group
Unplugged: Electric vehicle realities versus consumer expectations
A survey was conducted earlier this year by Deloitte Touche Tohmatsu Limited’s (DTTL) Global Manufacturing Industry Group to examine the gap between consumer expectations of electric vehicles (EVs) and what current EV technology is able to provide at prevailing price points. The online survey, which captured the views of more than 13,000 consumers in 17 countries across the Americas, Asia and Europe, asked respondents a range of questions, including how likely they would be to consider an EV when they buy or lease their next vehicle. The results showed the highest levels of consumer interest in Argentina, Brazil, China, India and Turkey. Unrealistically high EV performance expectations were the trend. In each of the countries surveyed, most drivers expect EV ranges to be far longer than EV batteries permit and beyond their typical weekday driving needs. Most also expected an EV to recharge its battery in two hours or less. Only a small percentage considered eight hours – the current recharge time for typical EV batteries – acceptable. •
Over 50% of respondents in most countries expected to pay the same price or less for an EV, although more from China, Korea, and India seemed prepared to fork out a price premium. It would also take significantly higher fuel prices to move consumers in most countries to pick an EV over a comparable traditional internal combustion engine (ICE) vehicle – a scenario that is unlikely in the short term for most countries except the US, where fuel prices and consumer price tolerance for EVs are both relatively high. In the conclusion, the
this team also anticipates that for some time yet, hybrids and high-efficiency ICE vehicles will enjoy wider adoption than pure EVs. You may access the report on Deloitte’s website via this page: www.greenpurchasingasia.com/content/ deloitte-ev-global-survey
Vertical greenery for the topics Kelly Chiang, Alex Tan (editors) Centre for Urban Greenery and Ecology, Singapore National Parks Board, National University of Singapore, Building and Construction Authority
For some time yet, hybrids and high-efficiency ICE vehicles will enjoy wider adoption than pure EVs. authors share their views on the near- and long-term prospects for the global vehicle market, as well as the role that governments and corporations can play to steer auto markets towards both greater profits and public good. Energy policies concerning the generation and distribution of electricity, electric utility investment recovery and infrastructure build-out are expected to play a key role in this industry. Government-backed research incentives and consumer incentives for the adoption of EVs (or potential penalties for the continued use of ICEs) could also have a significant effect, along with fuel-efficiency standards affecting automotive powertrain technologies, which could “cut both ways” in terms of market impact. As with most other thought leaders on the topic,
In recent years, skyrise greenery has come into vogue as green building certification moves into mainstream consciousness in major cities across the world. Much has been published about incorporating vegetation into urban planning to beautify cities, reduce sound pollution and the urban heat island effect, mitigate rainwater runoff and provide general health benefits to city dwellers. A lot of the literature on green walls (the vertical counterpart to green roofs, or rooftop greenery) is still geared, however, towards addressing conditions in temperate climates, where skyrise greenery is more established, making otherwise excellent books on the topic unsuitable for landscapers and building designers in tropical regions.
One valuable exception to this is Vertical Greenery for the Tropics – a full-colour illustrated introduction to planting green walls where sunshine, heat and humidity are abundant nearly all year round. Written with Singapore’s “City in a Garden” vision in mind, the book features illustrated examples of green walls from around the island republic. Also included are studies, supported with relevant data, charts and diagrams, that can be used to make a business case for investing in vertical greenery as a means to enhance property value with screening/privacy benefits, acoustic insulation, facade protection, or lower energy bills from the thermal impact of plant shading. Those new to the topic will find this book accessible introductory reading. This slim 100-pager walks the reader through basics like green wall typologies (support vs carrier systems); key planning considerations such as indoor/outdoor application, desired shading ability, lighting and wind intensity, and suitable profile thickness; installation and maintenance considerations; and irrigation types, including options to incorporate rainwater harvesting into the system. There is also an appendix on suggested plants with the appropriate tolerance or needs for variables like temperature, climbing support, sunlight intensity, soil moisture and growth media. The second appendix is a list of suppliers and irrigation specialists in Singapore that may be useful to local readers. Those interested in this publication may purchase it online at www.cuge.com.sg/ research/catalog.php