Firm starting 2 ocean thermal energy projects

By Amy R. Remo
Philippine Daily Inquirer

DEEP Ocean Power Philippines Inc., the country’s first and lone company to harness ocean thermal energy, targets to generate as much as 3,600 megawatts of electricity in 36 prospective sites, according to company officials.

“The Philippines is one of the premier locations in the world for our technology due to the extreme thermal difference between the warm surface water and the deeper cold water ... and we have a deep shelf here in the Philippines,” noted Doppi vice president Derek T. Murray.

“We feel that the oceans here are the oil of the Philippines and so we hope to locate them ... to help reduce the cost of energy,” he added.

Murray said the company’s plan was to put up ocean thermal energy projects with an initial capacity of 20 MW each, and slowly ramp this up to cost-effective levels.

“As we progress here locally, we will increase in size up to 100 MW ( per site) with the next several projects. Our goal is to maximize and use all 36 [sites]. But as of today, we’re starting with the first two,” Murray added.

On Friday, Doppi was granted two renewable energy service contracts for the development of ocean energy resources in Anini-y, Antique and Sablayan, Mindoro, said Doppi chair Alberto V. David Jr.

For an initial capacity of 20 MW, investments for these two projects are seen to reach $66,000.
Murray said it would take Doppi—which has formed a joint venture with the US-based Deep Ocean Power Inc.—three years to complete the projects, with commercial operations to start by 2012.

He said the company was in the process of completing the feasibility studies for the two projects.
Investments required for ocean energy projects are comparable with or a little higher than the investments needed for wind and solar projects, which require $2.5 million to produce a megawatt of electricity.

Murray said that unlike these two renewable energy sources that may be intermittent, ocean energy could be a more stable source of electricity.

Town where San Roque Dam sits relies on solar power

Philippine Daily Inquirer

DAGUPAN CITY—The agricultural town of San Manuel which hosts San Roque Dam has turned to solar power to energize its public areas and vital installations.
“We may host the dam but we don’t get free electricity, which is very expensive,” said San Manuel Mayor Salvador Perez of the dam which generates 365 megawatts of electricity.
The dam’s operator, San Roque Power Corp., like all independent power producers (IPPs), sells power to the National Power Corp. (Napocor) which in turn sells it to electric companies or cooperatives, like the Pangasinan Electric Cooperative III which covers San Manuel in eastern Pangasinan.
Perez said he decided to try solar energy in 2006 after seeing its benefits during trips abroad. In Hawaii he saw how solar energy powered heaters in homes.
San Manuel (pop: 48,000) bought its first solar panel and battery, worth P2.4 million, in 2006. It was installed in front of the public cemetery and used to power street lights and those at the Doña Carmen Park in the town plaza.
Lower power bill
The town bought a second solar panel and battery for P7 million last year to energize the Don Laureano Perez Memorial Clinic which is managed by the local government, the police station and several street lights.
By harnessing the sun’s energy, the monthly power bill of the municipal government has gone down from an average of P140,000 to about P90,000.
“If we save P50,000 monthly, it means we save P600,000 yearly or P6 million in 10 years,” Perez said.
He said the local government was planning to buy another solar panel to power the town’s auditorium and more street lights.
The solar panels have a minimum life of 25 years while the batteries could last 10 years. The town spends less than P1,000 monthly for battery maintenance.
The San Manuel government bought the solar panels with its P22-million share of the national wealth tax paid by Napocor for hosting the dam.
The town received P14 million as its share from 2003 to 2006 and P8 million from 2007 to 2009.
Public school subsidy
From these funds, the local government has set aside a P20,000 monthly subsidy for the electric power consumption of 27 public schools in the town.
The villages that host the dam—San Vicente, Narra and San Roque—also receive their shares of the national wealth tax—P4 million for San Roque, P2.4 million for San Vicente and P2 million for Narra.
Perez said San Roque and San Vicente used their shares to buy smaller solar energy panels and batteries to power street lights.
Narra officials, on the other hand, had set aside funds to subsidize the power consumption of the village residents.
For hosting San Roque Dam beginning in 2003, San Manuel also earns money from permits and other taxes yearly, depending on the sales of the SRPC.
This year, the town collected P21 million from the dam operators as payment for its business permit.
It also collects realty taxes from Napocor amounting to P1.4 million annually.
Last year, the town collected P233,000 in realty taxes from the SRPC.
Pangasinan officials and residents earlier blamed the widespread flooding that hit 38 towns and cities in eastern and central Pangasinan from Oct. 8 to 10 on the sudden release of excess water from San Roque Dam.
Heavy rains dumped by Tropical Storm “Pepeng” at the time nearly filled the San Roque reservoir, which has a critical level of 290 meters above sea level, forcing dam officials to release water. Yolanda Sotelo, Inquirer Northern Luzon

Understanding embodied energy

By Isabel Berenguer Asuncion
Philippine Daily Inquirer


HOW DO you attempt to help save the environment in simple and achievable ways?

While sustainable design is promoted aggressively as the alternative approach in design practice, sophisticated systems and high technology for environment-friendly finishes, alternative sources of power, filtration systems and materials can all be quite expensive. Aside from the cost of the systems themselves, there is also the cost of hiring consultants that can give advice on the suitability and proper utilization of the new systems.

There is also a need to properly detail the design so that it performs optimally and as intended. The simple exercise of designing a sustainable project sometimes becomes all too complicated and financially prohibitive.

A simpler approach would be to carefully pick the materials to be used. The prudent selection and usage of these can help in both cutting costs and savings in terms of carbon footprint.

One aspect of measure to consider for materials is “embodied energy.” This is the amount of energy that a material utilizes from the time it is acquired as a raw material, processed into a useful product, transported to its place of use, and installed or applied.

Embodied energy is important to understand since we often forget that there are various ways to produce a material and get it to its place of use. The amount of energy used can vary tremendously and can spell out in clear numbers how much damage its use can do to the environment.

Biodegradable

Because the purpose of environmental awareness is to decrease what we take from the earth and also to return into earth what we have taken, we often select materials that are biodegradable.

Sometimes what we take from the earth cannot be easily returned into it, but when it can be put to use for a prolonged period of time, it discourages frequent consumption and waste. For building materials, permanence and durability are two of the most important characteristics to consider.

While some materials may have low embodied energy, they may not be easily renewable materials. Natural stone is one example of this. It has very low embodied energy, yet it takes years for Mother Earth to produce it. Therefore there should be a certain amount of caution when using stone lest we one day run out of this material to harvest.

On the other hand, bamboo is an easily renewable material. Its use therefore, does not put much risk to the environment until it is processed into another type of material and its embodied energy increases. Laminated bamboo flooring, for instance, has lower embodied energy than high-pressure laminate flooring since for the latter, the production of the laminate alone takes a toll on the carbon footprint.

Difficult to reproduce

Wood is another material that has very low embodied energy, but unfortunately very difficult to reproduce. The massive deforestation globally proves that our usage has outrun its ability to renew. There are now sustainable tree farms but they are never enough for the high demand for timber. Sadly, many illegal loggers and middle-men still peddle local timber. We can only wish that consumers have enough conscience to veer from the temptation of using much prized narra and other local hardwood, and explore more sustainable alternatives.

Lower embodied energy does not necessarily define a better option. Aluminum has very high embodied energy but its use in buildings where its benefit runs to more than 50 years justifies its utilization as its embodied energy spreads through many, many years of use. Hopefully, there will be no need for its replacement during the building’s entire lifetime.

Embodied energy can be a very useful gauge for sustainability provided it is measured by its usage and lifespan. Depending on source, suppliers, methods, origin and site location, embodied energy of various materials, components and systems can vary greatly. As buildings become more energy-efficient and as the cost to operate them decreases, embodied energy becomes a more important factor. It is never the sole consideration for the selection of a material but it is a good place to start.












  

Energy firm eyes gov’t hydro plants

By Amy R. Remo
Philippine Daily Inquirer

LISTED FIRM TRANS-ASIA Oil and Energy Development plans to bid for the management of National Power Corp.’s independent power producer contracts of three hydroelectric power plants.

According to Trans-Asia president and chief executive Francisco Viray, the company is keen on bagging the IPP administrator contracts for the 30-megawatt Benguet Mini-Hydro; 345-MW San Roque Multi-Purpose Hydroelectric Power Plant in Pangasinan; and the 70-MW Bakun Hydroelectric Power Plant in Ilocos Sur.

Viray said the company wanted to participate in the previous auctions held by the Power Sector Assets and Liabilities Management Corp., but had failed to push through with its bid.

With its intent to bid for the three hydro IPPAs, Trans-Asia hopes to expand its energy portfolio beyond its proposed wind power projects, which are expected to produce some 400 MW and which will need some $1 billion in new investments.

IPPs are currently contracted to supply power to state-run Napocor. When management of IPP contracts are turned over to the private sector, the winning bidders will then manage the contracted capacities of the government in IPP power plants.

PSALM has already opened the bidding for the three hydro IPPAs, urging interested parties to submit on Sept. 18 a Letter of Interest to the committee.

As a prerequisite to the receipt of the bidding package, interested parties must execute a Confidentiality Agreement and Undertaking pursuant to Section 78 of Republic Act 9136 and pay a nonrefundable participation fee of $10,000.

Interested companies have until Sept. 14 to undertake a due diligence of the facilities, PSALM said. A prebid conference is set on Sept. 30, while the bid submission deadline has been slated on Nov. 11.

Singapore firms betting big on RP

By Amy R. Remo
Philippine Daily Inquirer


THE VOLATILITY OF global crude oil prices continues to wreak havoc on the finances of the Filipino consumer.

Although crude oil prices are much lower this year compared to 2008, there’s no guarantee that could protect Filipinos—especially the riding public and transport sector—in case oil prices bounce back to last year’s record high of $147 a barrel.

As it is, some analysts are claiming that crude oil prices may go up to as much as $150 a barrel within the year, according to Randall Antonio, CEO of Callandra LCNG Fuels Corp.

The country currently imports 98 percent of its oil requirements, thus making the Philippines extremely sensitive to any price movements in the global market.

As such, the Department of Energy has been exploring ways to cut the country’s dependence on costly fuel imports, which include harnessing renewable energy and alternative fuel sources.

However, it may take a while before investments come in and the benefits from such projects materialize.

Clean CNG

One immediately available alternative is to use compressed natural gas (CNG), which is clean burning and emits lower levels of potentially harmful byproducts into the air unlike traditional fossil fuels, according to Callandra.

Callandra—an affiliate of Singapore companies Callandra Holdings Pte. Ltd., and CNG Capital Pte. Ltd.—believes that CNG, being a cleaner type of fuel, could help reduce pollution.

And since it is an indigenous natural resource, it could likewise help curb costly oil imports.

For this reason, Antonio said Callandra was investing $160 million to put up six CNG “fueling districts” or refilling stations in Metro Manila and one processing plant in Batangas.

Antonio explained that these refilling stations, which would be enough to fuel some 5,000 CNG-fed buses by 2014, will be set up in the Mall of Asia area, Manila, Las Piñas, Pasig, Quezon City and Monumento.

According to Antonio, the use of CNG in 5,000 buses is expected to displace some 83 million gallons of diesel yearly.

Callandra is the first firm accredited by the government to develop the country’s first fully commercial CNG fueling infrastructure for the local bus transport sector.

Supply corridor

With its proposed project, Callandra said it targets “to open a new gas supply corridor for Mega Manila and other key population areas, delivering very cost-effective natural gas sources; to contribute to the security of fuel supply for the Philippines; and to strengthen the role of the gas as an environmentally cleaner, cheaper form of alternative fuel in the Philippines.”

“Using CNG as an alternative fuel could offer significant fuel cost savings to the bus operator, aside from the various incentives and tax benefits that the Philippine government has to offer,” the company said.

Antonio said each fueling district would have about 10 pumps with dual dispensers to cater to 20 buses at a time.

He added that the fueling districts will also have faster turnaround time of about six minutes.

By mid-2010, Antonio said Callandra expect two of the fueling districts to be fully operational, catering to some 2,000 buses. By 2012, the firm expects the number of CNG-fed buses to increase to 3,500, and by 2014, to 5,000 buses.

“We’re now talking to various banks. There were already (financing) offers,” Antonio said.

He disclosed that the company plans to tap the debt market to finance about 70 percent of the $160-million investment cost, while the remaining 30 percent will be funded through equity.

Lower prices

Antonio noted that prices of CNG will be lower compared to local petroleum products by about 25 percent.

At present, only Pilipinas Shell offers CNG to 35 buses servicing Batangas, Laguna, Manila and Quezon City, through its “daughter” station in Biñan City in Laguna.

Shell’s main or mother CNG station is near its refinery in Tabangao, Batangas.

Shell’s mother-daughter stations are part of the government’s Natural Gas Vehicle Program for Public Transport (NGVPPT), a seven-year pilot program that will peg the price of CNG at P14.52 a liter, less than half the price of diesel, for participating bus operators.

As part of the pilot program, Shell has exclusive rights to the area where it operates.

Other firms interested in putting up CNG facilities could do so in other places.

Benguet finds oil treasure in ‘petroleum nut’

Philippine Daily Inquirer
First Posted 23:26:00 07/02/2009

LA TRINIDAD, Bebguet -- Agriculturists and villagers are propagating seedlings of a “petroleum nut” locally known as apisang which, they say, could be an alternative source of fuel and energy.

Michael Bengwayan, an agriculturist, said the oil extracted from the nut could be used for cooking and lighting.

More than 30,000 seedlings have been produced since 2007, he said. The first batch was planted by 23 farmers in Kapangan and Kibungan towns.

Agriculture scientists see the nut, or resin cheesewood (scientific name Pittosporum resiniferum), as a source of sustainable fuel in the Cordillera and the answer to India’s jatropha (Jatropha curcas), which is now being promoted by biodiesel advocates all over the world.

“Why does the government have to spend P125 million for jatropha when we have our own source of alternative fuel?” asked Bengwayan in a press forum here.

He presented research results on the nut that showed its prospect as an alternative fuel that, he said, could energize rural households.

Bengwayan, also a director of the Pine Tree, a non-profit organization working on ecological education, training, research and information, said the nut has a higher rate of octane, which was more combustible than jatropha.

The Benguet State University is doing research on areas where the apisang trees thrive, the germination of the seeds, multiplication of the seedlings and their sustainability, Bengwayan said.

The tree is endemic to the Philippines and is believed to be the country’s “most promising biofuel treasure, which could provide energy to rural areas and reduce global warming,” he said.

It thrives in Benguet, Nueva Vizcaya, Mt. Province, and Ifugao and is also known locally as hanga (Tagalog), dingo (Mt. Province) and sagaga (Abra).

Bengwayan said the extracted oil could be used for cooking when blended with kerosene (with a ratio of three parts oil and one part kerosene) and for lighting.

The oil could also be used to cure stomachache and prevent skin infection, he said.

Propagating the seedlings can help contribute to the region’s carbon sink, a process that helps reduce carbon dioxide in the environment and reduce global warming, he said.

Bengwayan said more seedlings would be distributed to farmers and villagers.

“They may sell the oil if they have an excess supply. But the important factor here is we are able to save and not destroy the environment,” he said.

Bengwayan’s group has established a seed bank in the village of Longlong here to keep the seedlings. It has been training farmers to maintain their own seed bank. Desiree Caluza, Inquirer Northern Luzon