Friday, May 2, 2008

Reliance Power acquiring coal mine in Indonesia



Business Daily from THE HINDU group of publications
Friday, May 02, 2008

Coal supplies for mega projects in AP, Maharashtra

Rahul Wadke

Mumbai, May 1 Reliance Power Ltd, the recently listed power generation company of the Anil Ambani group, would be investing about $1 billion (Rs 4,000 crore) in acquiring and developing a coal mine in the South Sumatra province of Indonesia.

The sub-bituminous coal would be supplied to the company’s 4,000-MW Ultra Mega Power Project at Krishnapatnam in Andhra Pradesh, which would be on stream by 2013. Coal would also be supplied to the 4,000-MW Shahapur power project in Maharashtra, which has a thermal power component of 1,200 MW.

The mine has enough spare capacity to supply to an additional mega coastal power project.

Sub-bituminous is a type of coal whose properties range from lignite to bituminous coal. It is primarily used as fuel for steam-electric power generation.

Talking to Business Line, Mr J.P. Chalasani, CEO of the company, said that $600 million would be invested in the mine acquisition and another $400 million would be spent in setting up the 100-km railway line for transporting coal and setting up a captive jetty, he said.

Mr Chalasani said that mine has coal resources of about 2 billion tonnes. The exploitable reserves are about 1.2 billion tonnes. The mining rights are currently with a local company and have received all the regulatory clearances. There are no court cases pending against the mine. The mine will start producing coal by 2012-13, he said.

“There would be no upfront payment for acquisition. Payment is linked to the coal production and money would be paid on tonnage. Therefore, our Indonesian counterpart has additional incentive in developing the mine faster,” Mr Chalasani said.

Reliance Power is the second large domestic power company to acquire coal mines in Indonesia. In March 2007, Tata Power had invested $1.1 billion to purchase 30 per cent equity stake in two major Indonesian thermal coal producers, PT Kaltim Prima Coal and PT Arutmin Indonesia and a related trading company owned by PT Bumi Resources Tbk.
Up coming projects

Reliance Power is developing 13 projects of which three projects are likely to come up by 2010. The Rosa-I of 600 MW would be on stream by 2009 and Rosa-II of 600 MW by 2010. The Butibori captive power of 300 MW will come up in 18 months, a company official said.

More Stories on : Overseas Investments | Power | Coal

Monday, April 28, 2008

Italy Switching back to coal ?

Europeans switching back to coal
Tuesday, April 22, 2008

CIVITAVECCHIA, Italy: At a time when the world's top climate experts agree that carbon emissions must be rapidly reduced to hold down global warming, a leading Italian electricity producer, Enel, is converting its massive power plant here from oil to coal, the dirtiest fuel on earth.

Over the next five years, Italy will increase its reliance on coal to 33 percent from 14 percent. Power generated by Enel from coal will rise to 50 percent. And Italy is not alone in its return to coal.

Driven by rising demand, record high oil and natural gas prices, concerns over energy security and an aversion to nuclear energy, European countries are slated to build about 50 coal-fired plants over the next five years, plants that will be in use for the next five decades.

The fast-expanding developing economies of India and China, where coal remains a major fuel source for more than two billion people, have long been regarded as one of the biggest challenges to reducing carbon emissions.

But the return now to coal even in eco-conscious Europe is sowing real alarm among environmentalists who warn that it is setting the world on a disastrous trajectory that will make controlling global warming impossible. They are aghast at the renaissance of coal, a fuel more commonly associated with a sooty Dickens novel and which was on its way out just a decade ago.

There have been protests here in Civitavecchia; at a new Vattenfall plant in Germany; at a plant in the Czech Republic; as well as at the Kingsnorth Power station in Kent, which is slated to become Britian's first new coal-fired plant in over a decade.

European power-station owners emphasize that they are making the new coal plants as clean as possible. But critics say that "clean coal" is a pipe dream, an oxymoron in terms of the carbon emissions that count most toward climate change. They call the building spree short-sighted.

"Building new coal-fired power plants is ill-conceived," said James Hansen, a leading climatologist at NASA's Goddard Institute for Space Studies. "Given our knowledge about what needs to be done to stabilize climate, this plan is like barging into a war without having a plan for how it should be conducted, even though information is available.

"We need a moratorium on coal now," he added, "with phase out of existing plants over the next two decades."

Enel, like many electricity companies, says it has little choice but to build coal plants to replace aging infrastructure, particularly in countries like Italy, which prohibit nuclear power. Fuel costs have risen 151 percent since 1996, and Italians pay the highest electricity costs in Europe.

In the United States, fewer new coal plants are slated to go on line, in part because it is becoming hard to get regulatory permits for those previously planned and in part because nuclear power is an alternative, politically unacceptable in much of Europe.

In terms of cost and energy security, coal has all the advantages, its proponents argue. Coal reserves will last for 200 years, rather than 50 like natural gas and oil. It is relatively cheap compared to oil and natural gas, although coal prices have tripled in the past few years. More important, many countries export coal - there is not a coal cartel - so there is more room to negotiate prices.

"In order to get over oil, which is getting more and more expensive, our plan is to convert all oil plants to coal using clean-coal technologies," Gianfilippo Mancini, Enel's head of generation and energy management, said. "This will be the cleanest coal plant in Europe. We are hoping to prove that is will be possible to make sustainable and environmentally friendly use of coal."

"Clean coal" is a term coined decades ago by the industry, referring to its efforts to reduce local pollution. Using new technology, clean coal plants sharply cut down the number of sooty particles spewed into the air, as well as gases like sulfur dioxide and nitrous oxide. The technology has no effect on carbon.

In contrast, the technology that the industry is counting on to reduce the carbon emissions that add to global warning - carbon capture and storage - is not now available for coal. No one knows if it is feasible on a large, cost-effective scale.

Enel says it will only start experimenting with the technology - in which carbon emissions are pumped into underground reservoirs rather than released - in 2015, in the hopes of "a solution" by 2020.

"That's too late," said Jeff Sachs, head of Columbia University's Earth Institute.

In the meantime, new coal plants will be spewing more green house gas emissions into the atmosphere than ever before, meaning that current climate predictions - dire as they are - may still be "too optimistic," he said. "They assume the old energy mix even though coal will be a larger and larger part."

The problem is that carbon capture and storage, the holy grail of clean coal, will take global coordination and billions of dollars in investment, Sachs says, which no one country or company seems inclined to spend.

There are a few dozen small demonstration projects in Europe and in the United States, most in the early stages. But progress has not been promising.

At the end of January the administration of President George W. Bush canceled what was previously by far the biggest carbon capture demonstration project in the United States, at a coal-fired plant in Illinois, because of massive cost overruns.

The European Union had pledged to develop 12 pilot carbon capture projects for Europe, but said that was not enough. There is a new coal-fired plant going up in India and China every week and most of those are not constructed in a way that is amenable to carbon capture, even if it were developed.

Many have likened carbon capture's road from the demonstration lab to a safe, cheap, available reality as a challenge equivalent to putting a man on the moon. Norway, which is investing heavily to test the technology calls carbon capture its "moon landing." In fact it may be even harder than that. It is a moon landing that must be replicated daily at thousands of coal plants in hundreds of countries, many of them poor.

Plants that are capable of capturing carbon gases - those that generate pure carbon as an efflux - cost 10 percent to 20 percent more to build and only a handful exist today. For most coal power plants the costs of converting would be "phenomenal," concluded a report by the U.S. Environmental Protection Agency.

More to the point, while capturing carbon involves technology, storing it is at some level inherently local. Geologists have to determine whether there is a suitable underground site for storing the emissions, calculate how much carbon it can hold and then equip it in a way that prevent leaks and insure safety. A massive leak of underground carbon could be as dangerous as a leak of nuclear fuel critics say.

"Figuring out carbon capture is really critical - it may not work in the end - and if it is not viable, the situation with respect to climate change is far more dire," Sachs said.

On many fronts, the new Enel plant is a model of efficiency and recycling. The nitrous oxide is chemically altered to generate ammonia, which is then sold. The resulting coal ash and gypsum is sold to the cement industry. An on-site desalination facility means that the plant generates its own water for cooling. Even the heated water that comes out of the plant is not wasted: it heats a fish farm, one of Italy's largest.

But Enel's plan to deal with the new plant's carbon emissions consists mostly of a map of Italy with several huge white ovals superimposed - subterranean cavities where CO2 could be potentially be stored. The sites have not been fully studied by geologists as yet to make sure they are safe storage sites and well sealed. There is no infrastructure or equipment that could move carbon into them.

The new Enel plant here opens its first boiler in two months. It will immediately produce fewer carbon emissions than the ancient oil boiler it replaces, but only because it will produce less electricity, officials here admit.

In the towns surrounding Civitavecchia the impending arrival of a massive coal plant, with its three silvery domes, is being greeted with a hefty dose of dread.

"They call it clean coal because they use some filters, but it is really nonsense," said Marza Marzioli, spokesman for the "No Coal" citizens group in the nearby ancient Etruscan town of Tarquinia. "If you compare it to the old plant yes its better, but it's not 'clean' in any way."

The group says that Enel has won approval for a dangerous new coal plant by buying machines for local hospital and through massive public relations. Enel ads for the project show a young girl erasing a electricity plant's smokestack. A 2007 local referendum voted no, but the plant went ahead anyway, the group said.

The European Union, through its emissions trading scheme, has tried to get power plants to consider the costs of carbon by forcing them to buy "permits" for emissions. But with the price of oil so high, coal is far cheaper even with the cost of permits to pollute factored in, Enel has calculated.

Stephan Singer, head of European energy and climate office of the environmental group WWF in Brussels, says that math is shortsighted: The cost of coal and permits will almost certainly rise over the next decade.

"If they want coal to be part of the energy solution, they have to show us that carbon capture can be done now, that they can really reduce emissions" to an acceptable level, he said.

Friday, March 28, 2008

Chowgule Steamships Signs Concession Agreement for Development of Jaigad Port

Stock Report

Chowgule Steamships Signs Concession Agreement for Development of Jaigad Port

Chowgule Steamships Ltd has announced that on March 28, 2008 Chowgule Ports & Infrastructure Pvt Ltd (CPIPL), a Company co-promoted by Chowgule Steamships Ltd, has signed a Concession Agreement with Maharashtra Maritime Board (MMB) inter alia for development of a minor port at Jaigad.

CPIPL is a Special Purpose Vehicle (SPV) floated to undertake the port infrastructure development and Ship Repair projects at Jaigad. The port development projects would be undertaken under BOOST basis. In terms of the Concession Agreement, MMB has also an option to contribute up to 11% in the eventual capital of CPIPL.

The stock was trading at Rs.37.05, up by Rs.1.75 or 4.96%. The stock hit an intraday high of Rs.37.05 and low of Rs.37.

The total traded quantity was 3546 compared to 2 week average of 79267.

Source: Equity Bulls

Posted On: 3/28/2008 3:22:24 AM

Click here to send ur comments or to feedback@equitybulls.com
(Ref: http://www.equitybulls.com/admin/news2006/news_det.asp?id=26866)

Monday, March 17, 2008

JSW in $2 bn deal with Japan’s K Line for transporting coal

JSW in $2 bn deal with Japan’s K Line

JSW is setting up a 1,200MW coal-fired power plant in Jaigad, Ratnagiri district, Maharashtra, and a similar plant at Simar in Gujarat

P. Manoj

Bangalore: India’s JSW Group has signed a $2 billion (Rs8,160 crore), 10-year deal with Japan’s third biggest shipping firm by sales, Kawasaki Kisen Kaisha Ltd (or K Line), for transporting coal that will be used to fire the company’s steel and power plants, an arrangement that will ensure that the company is not affected by an increase in freight rates.
K Line will deploy 10 dry bulk carriers to ship coking and thermal coal from mines owned by the OP Jindal group in Indonesia and Mozambique, as well as coal from mines in Australia and China.
For JSW, the deal is beneficial as it will insulate the company from any escalation in freight rates, said a company executive who does not want to be named. Dry bulk shipping rates have been rising mainly due to demands for shipping raw materials into China and India.
The contract was signed by Hiroyuki Maekawa, president of K Line, and Sajjan Jindal, vice-chairman and managing director of JSW Steel Ltd and chairman of JSW Energy Ltd.
The group needs more coal as it has some new plants coming up. JSW is setting up a 1,200MW coal-fired power plant in Jaigad, Ratnagiri district, Maharashtra, and a similar plant at Simar in Gujarat.
It is also planning a 900MW power plant close to its steel plant at Vijayanagar, Bellary district, Karnataka. The company currently operates a 450MW plant in Bellary, which, apart from meeting its own captive needs, sells power to Power Trading Corp. Ltd.
Besides, JSW Steel is expanding its existing steel mill in Vijayanagar and plans to build two new mills in Jharkhand and West Bengal. JSW Energy, the group’s power generation unit, plans to expand to 15,000MW by 2015 (including coal thermal and hydropower plants).
The contract with K Line will start later in 2008 with two panamax ships. Five capesize ships and three more post-panamax ships will be deployed from 2011-12. By 2015, when all the ships enter service, JSW will be importing about 12 million tonnes of coal. “Freight revenue from the 10 vessels is expected to be over $200 million a year,” K Line said in a statement.
JSW had earlier concluded ship charter contracts with K Line for three vessels—a panamax starting 2008 and two post-panamaxes starting 2009. Thus, the total volume of coal K Line will transport for JSW by 2015 is expected to be around 15 million tonnes per annum, which is more than 40% of the total volume of coal to be imported by the two companies.
Panamax ships are called so because they are the biggest ships that can sail through the Panama Canal fully laden.
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Ref: http://www.livemint.com/2008/03/17231143/JSW-in-2-bn-deal-with-Japan.html

Monday, March 3, 2008

Mega power plant in Lalitpur, UP

Mega power plant in Lalitpur
2 Mar 2008, 0223 hrs IST,Pankaj Shah,TNN

LUCKNOW: In a major leap to achieve self-sufficiency by 2012, the UP Power Corporation Limited (UPPCL) has decided to set up a 4,000 mw ultra mega thermal power plant in Lalitpur district.


This would be the biggest plant to be set up by the corporation with the help of National Thermal Power Corporation (NTPC).

The plant, larger than the gas-based Dadri Power plant proposed in the NCR region, is expected to come up by 2012, by when most of the other proposed plants are also expected to be completed.

Chairman, UPPCL, GB Patnaik said that they would be entering into an agreement with the NTPC "within 30 days" for setting up of the mega project.

"Our target is to have power generation of 10,000 mw which is the basic requirement of the state," he said while talking to TOI. Interestingly, such type of power plants are set up in areas which are either on the sea coast or in the coal belt.

"We cannot change the geography of the state, but we can still try to have that," he said.

The decision to install the mega project comes barely days after a 'separate coal block' in Chedipura district of Orissa was allocated to UP along with Chhattisgarh and Maharashtra at the cost of Rs 40,000 crore by the Centre.

According to the arrangement, UP would be the biggest partner with 50 per cent share.
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(Ref: http://timesofindia.indiatimes.com/Lucknow/
Mega_power_plant_in_Lalitpur/articleshow/2830238.cms)

Sunday, March 2, 2008

168 power projects cleared in 3 years

Environmental clearnace givrn to 168 power projects

01 March 2008

168 power projects have been accorded environmental clearance during the last three years. This includes 128 thermal power projects, 39 hydroelectric projects and 1 nuclear power project.

As of 15th February, 2008, 43 power projects are pending for environmental clearance, which include 37 thermal power projects, five hydroelectric projects and one nuclear power project. To facilitate early decision on these projects, their status is monitored continuously.

The environment impact assessment (EIA) notification, 2006, provides for appraisal of the impact that a project will have on the environment. This is done through EIA reports submitted by the project proponents and assessed by the multi-disciplinary expert appraisal committees constituted by the ministry of environment and forests.
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(Ref: http://www.domain-b.com/industry/20080301_environmental.html)

Friday, February 29, 2008

PM to lay foundation stone for 1,980 MW Tiroda STPP

PM to lay foundation stone for thermal power station in Maharashtra
9 Feb, 2008, 1135 hrs IST, AGENCIES

GONDIA: Prime Minister Dr. Manmohan Singh will lay the foundation stone for the 1,980 MW Tiroda super thermal power station in Maharashtra's Gondia District today.

State Chief Minister Vilasrao Deshmukh, Union Agriculture Minister Sharad Pawar and Energy Minister Sushilkumar Shinde will attend the function.

Union Civil Aviation Minister Praful Patel, Minister of State for Coal Dasari Narayan Rao, Deputy Chief Minister R R Patil and host of cabinet ministers from the state will also present on the occasion.

During his one-day visit, Dr. Singh will also lay the foundation stone for the establishment of Rajiv Gandhi National Flying Training Institute of the Airport Authority of India (AAI) at Birsi airport in Gondia.

Before returning to Delhi, the Prime Minister will also attend the annual day function of Gondia Education Society headed by Praful Patel
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Ref: (http://economictimes.indiatimes.com/News/News_By_Industry/Energy/PM_to_lay_foundation_stone_for_thermal_power_station_in_Maharashtra/rssarticleshow/2769020.cms)