Recommendations and Strategies by the Economic Strategies Committee

The Economic Strategies Committee (ESC) has completed its work and has submitted the report of its key recommendations to the Prime Minister. The report is released today and can be downloaded at the ESC website.

The ESC was formed in May 2009 to:

develop strategies for Singapore to build capabilities and maximise opportunities as a global city in a new world environment, so as to achieve sustained and inclusive growth.

The ESC is chaired by Tharman Shanmugaratnam, Minister for Finance, and comprises members from the government, the labour movement, the private sector as well as academia.

Key Recommendations:

We must achieve higher productivity growth of 2 to 3 percent per year, enabling our GDP to grow on average by 3 to 5 percent per year over the next decade.

Increased productivity is not achieved merely through increased efficiency, but restructuring our economy to provide more room for rapidly growing and innovative enterprises.

7 Key Strategies:

1. Growing through skills and innovation
2. Anchor Singapore as a Global-Asia Hub
3. Build a Vibrant and Diverse Corporate Ecosystem
4. Make Innovation Pervasive, and Strengthen Commercialisation of R&D
5. Become a Smart Energy Economy
6. Enhance Land Productivity to Secure Future Growth
7. Build a Distinctive Global City and an Endearing Home

Here’s the ESC’s recommendations on Smart Energy Economy in the report: Read more

Clean Coal and Biomass Cogeneration Plant by Tuas Power: A Chronology

This is a chronology of the news and responses on Tuas Power’s clean coal and biomass cogeneration plant.

14 Mar 08 – Tuas Power sold to China Huaneng Group (Temasek successfully completes divestment of Tuas Power by Temasek Holdings)

27 Mar 08 – Tuas Power announced that it is looking at building a $2 billion coal-fired plant (Tuas Power may build $2b coal-fired plant by Business Times)

2 Apr 08 – We think it is highly possible that Tuas Power would take the coal route and expressed our concerns (Red dot goes black? by AsiaIsGreen)

26 Sep 08 – Tuas Power announced plans to build a $2 billion steam and electricity production plant to run on clean coal and biomass on Jurong Island (Tuas Power to build $2b ‘clean’ plant by Straits Times) Read more

Update on Tuas Power’s clean coal plant (part 2)

The Straits Times did not publish our reply letter so we sent the following email to NEA, EMA and Tuas Power:

I refer to the reply letters, “Clean coal: Assurance by Tuas Power” by Tuas Power and “Plant balances cost and green concerns” by the National Environment Agency and Energy Market Authority. It is reassuring that Tuas Power and the Government are committed to environmental sustainability.

In the reply from NEA and EMA, I find that the comparison of carbon emissions between the new plant and existing oil-fired plants is inappropriate. Singapore generates 80 per cent of its electricity by natural gas-fired plants, which are more efficient and less carbon
intensive than oil-fired plants. Since gas-fired plants are the main type of technology used in Singapore, new plants to be built should be using technologies that produce carbon emissions at a level that is equivalent to or better than the existing gas-fired plants, and not the oil-fired plants.

I would appreciate an answer from NEA, EMA or Tuas Power on the following question: What is the carbon emission per unit of electricity generation for Tuas Power’s new plant, and is it less or more than a gas-fired plant?

If Singapore is committed to do its part in global efforts to tackle climate change, we should be using fuel and technologies that reduce carbon emissions.

Thank you.

This is NEA and EMA’s reply: Read more

Update on Tuas Power’s clean coal plant

Tuas Power, National Environment Agency and Energy Market Authority replied to our letter on the new clean coal plant being one step forward and two steps backward in Singapore’s green efforts. This is our reply to The Straits Times:

I refer to the reply letters, “Clean coal: Assurance by Tuas Power” by Tuas Power and “Plant balances cost and green concerns” by the National Environment Agency and Energy Market Authority. It is reassuring that Tuas Power and the Government are committed to environmental sustainability. However, I find that the comparison of carbon emissions between the new plant and existing oil-fired plants is inappropriate.

Singapore generates 80 per cent of its electricity by natural gas-fired plants, which are more efficient and less carbon intensive than oil-fired plants. Since gas-fired plants are the main type of technology used in Singapore, new plants to be built should be using
technologies that produce carbon emissions at a level that is equivalent to or better than the existing gas-fired plants, and not the oil-fired plants.

Is the carbon emission per unit of electricity generation for Tuas Power’s new plant less or more than a gas-fired plant?

If Singapore is committed to do its part in global efforts to tackle climate change, we should be using fuel and technologies that reduce carbon emissions.

Tuas Power vs Senoko Power

Which power plant is greener? Tuas Power or Senoko Power?

Tuas Power is building a clean coal and biomass plant:

Mr Lim Kong Puay, chief executive of Tuas Power, said: “The efficient use of the cogeneration technology coupled with biomass and clean coal allows us to achieve savings, and this saving will be passed on to our industrial consumers.”

‘Overall, we are able to produce one unit of energy at a more competitive cost,’ said Tuas Power president and CEO Lim Kong Puay.

Senoko Power is converting its plants from oil-fired to gas-fired:

Senoko had considered using coal, which is a cheaper fuel, Mr Adair said, but was very conscious of its carbon footprint which is two-and-a-half times that of natural gas. On the other hand, the carbon footprint of gas is also only 60 per cent that of oil. The genco will be seeking carbon credits for the project, he added.

Tuas Power is building Singapore’s first ‘clean coal’ power plant

Tuas Power is going ahead with its plan to build Singapore’s first clean coal and biomass plant. We expressed concerns about Tuas Power’s proposed plans in our previous post, Red dot goes black?, and our worries have come true.

We wrote the following letter to The Straits Times to express our concerns about the use of coal by Tuas Power:

I refer to the article, “Tuas Power to build $2b ‘clean’ plant” by Clarissa Oon (ST Sep 26).

Clean coal is an oxymoron as coal is associated with multiple environmental problems such as habitat destruction, acid rain and global warming. Burning coal produces higher levels of carbon dioxide, sulphur oxides, nitrogen oxides, particulates and mercury.

With these environmental impacts in mind, Tuas Power and the National Environment Agency need to reassure the public and concerned environmentalists on the use of coal in the new plant.

Would the new plant meet the relevant air emissions and environmental regulations? Are carbon emissions per kilowatt hour higher for the new plant as compared to a natural gas-fired plant? Would the use of coal in the new plant lead to greater use of coal by other power generation companies?

This switch to using coal by Tuas Power seems to contradict the government’s efforts and plans on sustainable development. The new plant should not increase Singapore’s environmental impacts, especially our carbon emissions. If not, it would seem that we are moving one step forward and two steps backward on our green efforts.

Red dot goes black?

China Huaneng Group, a Chinese state-owned enterprise has recently bought over Singapore’s Tuas Power, a power plant that produces about 26% of Singapore’s electricity. According to the Business Times, Tuas Power is planning to convert its standby capacity of 1,200 MW that is currently generated by steam plants to be generated by either natural gas-fired plants or coal-fired plants.

Tuas Power’s CEO Lim Kong Puay explained that the capital costs of coal-fired plants (about $2 billion) would be higher than natural gas-fired plants (about $700 to $800 million), but coal-fired plants have lower operating costs. Tuas Power could also tap on its new owner, Huaneng’s vast experience in coal-fired plants in China.

We think it is highly possible that Tuas Power would take the coal route as it wants to tap on the expertise of Huaneng on coal and cut its costs before its competitors (such as Power Seraya and Senoko Power) also acquire new owners and become more competitive. Once there is a coal-fired plant in Singapore, the worry is that other power plants will follow suit and build more coal-fired plants as coal is still more cost competitive than oil and natural gas.

We are against the use of coal for generating electricity because coal is still a dirtier fuel source that emits more carbon dioxide, thus contributing to global warming. A cleaner coal-fired plant such as a modern Integrated Gasification Combined Cycle (IGCC) plant still emit about twice the carbon dioxide amount as compared to a natural gas-fired plant. The future zero emissions coal plant using carbon capture and sequestration technologies are still in research and not commercially available yet.

In Tuas Power’s Health, Safety and Environmental Policy, they commit to:

Conducting operations in an environmentally responsible manner through maximizing our plant efficiency, resource conservation, reducing waste and controlling emissions

We hope that Tuas Power would remember its own environmental commitment to control emissions and reject the idea of building coal-fired plants in Singapore. If there is a go-ahead by the government to allow Tuas Power to start using coal to generate our energy, does it mean that we are contradicting our stand on sustainable development and climate change?

Source: Business Times via Wildsingapore; Tuas Power. Image attribution: Wolfiewolf.