Page 12 - AsiaElec Week 26

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AsiaElec
coal power plants.
Greenpeace Korea is campaigning against
the country’s o cial export credit agency, and at the weekend projected laser messages onto the bank’s headquarters reading: “Stop investing in coal- red plants” and “President Moon Jae-in, when are you going to halt nancing coal plants?”
Greenpeace said it had staged the protest to call on the government and Eximbank to stop nancing coal power.
“Such investments cause environmental pollution and damage to human health in the areas where coal plants are built. e coal industry is also not free from chronic corruption problems,” said Chang Ma-ri, a Greenpeace campaigner.
Greenpeace gave the example of the bank’s support for the Cirebon 2 coal- red power plant in Indonesia.
e project, for which Eximbank is providing $517mn, is also mired in a bribery scandal.
South Korea is the world’s second-largest investor in the global coal- nancing market following China.
Eximbank has itself spent KRW6.1 trillion ($5bn), accounting for 53 percent of the total investments. It is followed by Korea Trade Insurance Corp. and the Korea Development Bank
Eximbank has also said it would invest in the Jawa-9 and Jawa-10 coal- red power plants in Indonesia.
Eximbank said it is taking a cautious stance on coal projects by strictly abiding by the OECD sector understanding on export credits for coal- red electricity generation as well as international environmental standards.
Coal to fall behind gold in Australian export earnings
Australia expects gold to overtake thermal coal as its fourth-largest export earner in the coming nancial year as coal prices fall on subdued demand from Asia, while global tensions prop up gold prices.
Asian demand for the heating fuel
is expected to top out this year, as large consuming countries, including China, turn to cleaner energy such as hydropower, nuclear and renewables, Australia’s Department of Industry said in its Resources and Energy quarterly report.
Australia is the world’s second-biggest exporter of thermal coal, behind Indonesia, shipping out an estimated 209 million tonnes last nancial year. Some 39 percent of its exports go to Japan, and roughly a quarter to China.
“ e trend for world imports ... is likely to be slightly downwards. Imports from most developed countries are forecast to decline, as governments phase out coal- red power generation,” the report said.
It also pointed to signs that Japan would pivot away from thermal coal more quickly than expected, a er the country shelved two coal- red power projects in the past six months with a third also likely.
Australia’s exports were forecast to grow slightly in 2020/21, but the report forecast a fall in benchmark Newcastle spot prices from $105 a tonne in 2018 to $83 a tonne this year and $75 in 2020.
At the same time, exports from the world’s second-largest gold producer are set to climb 12 percent in the 2019/20 nancial year from 329 tonnes in the year to end-June, while gold prices are expected to rise.
RENEWABLES
Etrion seals green bond for Niigata solar project
Toronto-listed Etrion Corporation, a solar independent power producer, has signed a nancing deal to build the 45MW Niigata solar project in Japan.
e Etrion Green Project Bond, rated BBB, was arranged by Goldman Sachs Japan Co.
“I am very pleased to announce the nancing of our Niigata 45MW project.
With the addition of Niigata, we will be
nearly doubling our capacity in Japan to
over 100MW. e nancing was executed awlessly, securing a green bond at a nancing cost less than a half the cost of prior projects,” Marco Northland, Etrion’s CEO said.
Niigata is a 45MW ground-mounted xed- tilt solar PV project. Construction-related works has begun, and the solar project is expected to be fully operational by the fourth quarter of 2021.
e solar power plant will be built on 75.7 hectares of owned land and will supply power to Tohoku Electric Power Co.
e project company entered into an e ective eighteen-year power purchase agreement (PPA) with Tohoku and will receive JPY36 ($0.33) per kWh.
Once operational, Niigata is expected to produce 47 GWh of solar electricity per year, enough to supply more than 13,000 Japanese households.
In addition, the project is expected to generate average annual revenues from sale of electricity of US$15.5mn, EBITDA of US$13.7mn and free cash ow at project level of US$3.6mn.
e total project cost is expected to
be approximately JPY16.7bn ($154.2mn) including VAT, which has been nanced 95% through a non-recourse loan with a tenor of construction period plus 16.8 years.
Etrion already owns and operate 57 MW of solar capacity in Japan.
Ormat Technologies buys
into Indonesia’s Ijen
geothermal project
New York-listed Ormat Technologies has is to acquire a 49% stake in the Ijen geothermal project company from Indonesia’s Medco Power. Ijen holds a geothermal licence to develop the Ijen project in East Java.
Ormat will commit to additional funding for the project exploration and development, subject to speci c conditions.
A subsidiary of Medco Power will retain 51% ownership in the company. Ormat and Medco will develop the project jointly.
“We have established a tremendous relationship with Medco, including partnering on our Sarulla plant, and we are excited to extend this relationship to a second major project in Indonesia,” commented Isaac Angel, Chief Executive O cer.
e government of Indonesia has announced plans to produce more than 9,000 MW of geothermal power by 2025, becoming the world’s leading geothermal energy producer. is would account for 5% of Indonesia’s total energy needs, creating signi cant opportunities for additional geothermal expansion.”
e Ijen project assets, whose nal capacity will be determined a er exploration, include
a geothermal concession and 30-year PPA for up to 110 MW capacity.
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Week 26 02•July•2019