15 biomass deals open to foreigners
The Energy Ministry has short-listed 15 local biomass power plants for foreign companies investing in clean energies outside their home countries under the UN's Clean Development Mechanism (CDM) of the Kyoto Protocol. Energy Minister Piyasvasti Amranand said the transaction could be worth more than Bt300 million annually.
He said the Cabinet would soon consider the CDM guidelines, in order to pave the way for the deals. "The greenhouse effect could be an obstacle in long-term development, but it can also offer opportunities. Thailand's carbon emissions are still lower than those of countries listed in Annex 1 [under the United Nations Conference on Climate Change, or UNFCCC]," he said. He said his ministry was committed to facilitating clean-energy investment to promote alternative fuels and recyclable power. "The transaction value involving the 15 companies is expected to provide Bt321.28 million per annum [from an actual value of US$7.10 (Bt254) per tonne]. Importantly, it will reduce carbon dioxide emissions by 1.25 million tonnes a year." The CDM, established under the Kyoto Protocol for curbing greenhouse gases, allows countries that are unable to meet emission reduction targets to invest in "clean" projects in developing countries and receive carbon credits that can be offset against their commitments. Thailand ratified the UNFCCC in December 1994. Asian countries are emerging as the largest suppliers for such credits that can also be traded on the market. The demand comes from companies in Europe, Japan and Canada, whose governments have ratified the Kyoto Protocol and imposed national limits. One of the buyers in this case is Japan's New Energy and Industrial Technology Development Organisation (Nedo), which approached Thai company Surat Thani Green Energy for investment. While the Thai firm receives payment from Nedo calculated on the price of carbon dioxide emitted from its plant, Nedo's transaction will reduce Japan's need to reduce greenhouse-gas emissions at home, a process known as "carbon credits". Aside from Surat Thani Green Energy, other Thai companies are Dan Chang Bio-Energy, Phukiaw Bio-Energy, AT Biopower, VCF Farm Khorat Waste to Energy, two projects of Sima Interproducts, Palm Oil Nature, Khon Kaen Sugar Industry, Surin Electricity, Charoen Somphong, Gulf Electric, Chumporn Palm Oil Industry and Northeast Tapioca (1987). Pongsak Liangsiri, managing director of Power Prospect, operator of a rice-husk-powered plant, said the Cabinet should quickly endorse the CDM regulations, in order to pave the way for carbon-credit transactions. "Biomass and biofuel projects have higher operating costs and need new funding. Right now, we only receive low-rate financing," he said. Thailand ratified the Kyoto Protocol in 2002. Energy Reporters The Nation
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