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23-04-2014, 02:00 PM
PUBLISHED APRIL 23, 2014
Gas producers exploring coal gasification
They are said to be Soxal, Linde Gas and Keppel's genco unit
BYRONNIE LIM
ronnie@sph.com.sg
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Industrial gas producers such as Soxal and Linde Gas, as well as Keppel Corp's genco unit, are said to be exploring plans by Singapore for a coal gasification project, which besides utilities, can produce synthetic gas for use as an alternative, competitive feedstock for petrochemical plants and refineries on Jurong Island - PHOTO: SPH
[SINGAPORE] Industrial gas producers such as Soxal and Linde Gas, as well as Keppel Corp's genco unit, are said to be exploring plans by Singapore for a coal gasification project, which besides utilities, can produce synthetic gas for use as an alternative, competitive feedstock for petrochemical plants and refineries on Jurong Island.
Following an earlier Request For Proposals (RFP) called by the Economic Development Board, discussions with the authorities are continuing, though approval has not been given for the project yet, The Business Times understands.
"It is still at an exploratory stage," said a spokesman for Singapore Oxygen Air Liquide, adding that the company is more keen on the project's production of synthetic gases such as carbon monoxide and hydrogen, rather than in the utilities, that is electricity and steam. This is because Soxal already has its own in-house cogen plant to meet its utilities needs.
"The project size and investment are still unclear . . . there are also environmental issues," the spokesman added.
Soxal has invested well over $1 billion here, including in a $500 million complex on Jurong Island recently - half of which went to a world-scale hydrogen plant to supply the feedstock to customers such as Neste Oil's renewable fuel plant. Hydrogen is used to reduce sulphur content in automotive fuels and is needed to process heavy crude into useable fuels.
A Linde Gas official told BT that following the RFP for the coal gasification plant in 2012, it has continued discussions with EDB. Like its competitor Soxal, Linde Gas also has its in-house unit to provide utilities. "So the possibility of a joint venture with a power generating company will depend on the project scope. We have to explore various options," the official added.
This is where a genco such as Keppel Merlimau Cogen can come in. With its new combined cycle gas turbines (CCGTs) in operation, the genco's share of the power market here jumped to 13.3 per cent last year from 8.8 per cent in 2012, marking its highest market share level since it joined the electricity market in 2006.
Asked about market talk of its interest in the coal gasification project, a Keppel spokesman said: "Keppel notes all key developments in the energy market with keen interest. We are constantly evaluating opportunities where we can grow our business."
But while the cost of generating power from a coal-fired station is lower than that by a gas-fired one, one obstacle for the coal gasification project is that recent new CCGT plant building here by gencos to capitalise on LNG supplies has led to Singapore power generation capacity/supply exceeding demand.
Energy Market Company figures show that while the monthly CCGT supply reached a new high of 7,000-plus MW, forecast demand rose at a much slower pace.
Another issue is environmental sustainability. EDB earlier indicated that while the main disadvantage of coal is its environmental impact, coal gasification technology provides potential for a "clean coal" plant and the use of technologies such as carbon capture to reduce the project's carbon footprint. But it also cautioned that a potential carbon tax, in view of a possible international agreement on carbon mitigation, could affect the project economics.
Gas producers exploring coal gasification
They are said to be Soxal, Linde Gas and Keppel's genco unit
BYRONNIE LIM
ronnie@sph.com.sg
PRINT |EMAIL THIS ARTICLE
Industrial gas producers such as Soxal and Linde Gas, as well as Keppel Corp's genco unit, are said to be exploring plans by Singapore for a coal gasification project, which besides utilities, can produce synthetic gas for use as an alternative, competitive feedstock for petrochemical plants and refineries on Jurong Island - PHOTO: SPH
[SINGAPORE] Industrial gas producers such as Soxal and Linde Gas, as well as Keppel Corp's genco unit, are said to be exploring plans by Singapore for a coal gasification project, which besides utilities, can produce synthetic gas for use as an alternative, competitive feedstock for petrochemical plants and refineries on Jurong Island.
Following an earlier Request For Proposals (RFP) called by the Economic Development Board, discussions with the authorities are continuing, though approval has not been given for the project yet, The Business Times understands.
"It is still at an exploratory stage," said a spokesman for Singapore Oxygen Air Liquide, adding that the company is more keen on the project's production of synthetic gases such as carbon monoxide and hydrogen, rather than in the utilities, that is electricity and steam. This is because Soxal already has its own in-house cogen plant to meet its utilities needs.
"The project size and investment are still unclear . . . there are also environmental issues," the spokesman added.
Soxal has invested well over $1 billion here, including in a $500 million complex on Jurong Island recently - half of which went to a world-scale hydrogen plant to supply the feedstock to customers such as Neste Oil's renewable fuel plant. Hydrogen is used to reduce sulphur content in automotive fuels and is needed to process heavy crude into useable fuels.
A Linde Gas official told BT that following the RFP for the coal gasification plant in 2012, it has continued discussions with EDB. Like its competitor Soxal, Linde Gas also has its in-house unit to provide utilities. "So the possibility of a joint venture with a power generating company will depend on the project scope. We have to explore various options," the official added.
This is where a genco such as Keppel Merlimau Cogen can come in. With its new combined cycle gas turbines (CCGTs) in operation, the genco's share of the power market here jumped to 13.3 per cent last year from 8.8 per cent in 2012, marking its highest market share level since it joined the electricity market in 2006.
Asked about market talk of its interest in the coal gasification project, a Keppel spokesman said: "Keppel notes all key developments in the energy market with keen interest. We are constantly evaluating opportunities where we can grow our business."
But while the cost of generating power from a coal-fired station is lower than that by a gas-fired one, one obstacle for the coal gasification project is that recent new CCGT plant building here by gencos to capitalise on LNG supplies has led to Singapore power generation capacity/supply exceeding demand.
Energy Market Company figures show that while the monthly CCGT supply reached a new high of 7,000-plus MW, forecast demand rose at a much slower pace.
Another issue is environmental sustainability. EDB earlier indicated that while the main disadvantage of coal is its environmental impact, coal gasification technology provides potential for a "clean coal" plant and the use of technologies such as carbon capture to reduce the project's carbon footprint. But it also cautioned that a potential carbon tax, in view of a possible international agreement on carbon mitigation, could affect the project economics.
