Speech by Mr Lim Swee Say
Minister for the Environment

At the Opening Session of Cogeneration Day
23 April 2004, 9.00am at York Hotel Singapore

HE Vassilis Bontosoglou

Head of Delegation, European Commission

Dr Ludovic Lacrosse

Executive Director of the EC-ASEAN COGEN Programme

Ladies and Gentlemen

Good morning. Co-generation Day is an annual event held in ASEAN countries under the auspices of the EC-ASEAN COGEN Programme. I congratulate the organizers on the successful staging of today?s event here in Singapore.

Global demand for energy is growing steadily, at about 3% a year. The International Panel on Climate Change forecasts that about two-thirds of the growth in global energy demand up to 2020 is expected to take place in developing countries. From a development point of view, this is positive and not unexpected since economic growth is closely associated with higher energy consumption.

From the environmental point of view, what may be of concern is that this rapid growth in energy consumption could potentially lead to increased emissions of greenhouse gases, adding to global warming and climate change.

The question then is, should we expect developing countries to slow down the increase in energy consumption so as to help protect the global environment, at the expense of slower economic growth and social progress? The answer is clearly ?no?.

For developing countries to achieve social progress, they must continue to strive for economic growth, to create the wealth and resources necessary for the building of economic infrastructure and social amenities such as schools, hospitals, public utilities, highways and telecommunication. The list goes on.

Yet at the same time, the global community, developing countries included, cannot afford to disregard the potential impact of economic growth and social progress on our environment. This is because the day we run out of fresh air, safe drinking water and clean land, will also be the day we run out of economic growth and social progress.

In short, instead of having to choose between environmental protection on the one hand, and economic development and social progress on the other, the challenge we face as a global community is to strengthen the three key pillars of sustainable development: namely economic growth, social progress and environmental protection, all at the same time, and at all times.

Can this be done? The answer has to be a resounding ?yes?, because we simply have no other choice. It may not be possible for most, if not all of us, to reduce energy consumption as we increase production and services, and improve on our standard of living. However, it is certainly possible for every one of us to find ways to increase energy efficiency, and decrease the rate of greenhouse gases emission. More can certainly be done to promote and share our expertise and experiences in the use of cleaner fuels and renewable energy sources, as well as adopt energy-efficient technologies and practices, including co-generation that can increase energy efficiency and reduce greenhouse gases emission by as much as 40%.

The EC-ASEAN COGEN Programme deserves our strong support. Started in 1991, the Programme aims to reduce ASEAN?s dependence on conventional fuels by harnessing the abundant biomass residues such as wood and agro-industrial residues available in the region.

During the first two phases of the COGEN Programme, 16 Full Scale Demonstration Plants were constructed in ASEAN countries covering wood, paper, rice, palm oil and biogas. The Programme has integrated the two concepts of renewable energy and energy efficiency into a single solution. This is indeed commendable, as it will help reduce the environmental impact of rising energy consumption.

Here in Singapore, energy efficiency and conservation are close to our hearts. We have no significant energy resources, and have to import all the oil and gas we consume. We have developed Jurong Island for the oil and petrochemical industries. The industries are supported by a centralised cogeneration plant fired by natural gas built there by Sembcorp Cogeneration, as well as in-house cogen facilities built by ExxonMobil and Seraya Chemicals. Outside of Jurong Island, Shell also has its own in-house cogeneration plant on Pulau Bukom. Large industrial plants such as the oil and petrochemical facilities are therefore quite familiar with cogen technology, and are already making use of it quite extensively.

However, companies outside of Jurong Island may still lack awareness of cogen technology and expertise in operating such facilities. They may also hold the perception that the cost of conversion and operation is high. Some may also find it challenging to maximize the efficiency as they strive to balance their requirements for both heat and electricity.

It is therefore important to support demonstration projects involving in-house cogen plants. I am happy that the EC-ASEAN Cogen III initiative has supported two Full Scale Demonstration Plants in Singapore to highlight the benefits of cogen. This will help create more awareness so that more companies with heat requirements can better assess the merits of adopting cogen.

The first demonstration plant is owned by ECO Special Waste Management Pte Ltd, which has installed a 530 kW cogeneration plant to convert wood waste efficiently and safely into electricity and steam. I am told that this plant has been successfully commissioned and many of you will be visiting it later today.

Bee Joo Industries Pte Ltd is installing the second demonstration plant using waste wood as fuel to generate 1 MW of electricity and also produce heat for their recycling operations.

I am confident that the setting up of these two demonstration plants, together with existing cogen plants on Jurong Island and Pulau Bukom, will further encourage our industries to consider implementing cogen systems wherever feasible. This will help maximise energy efficiency, strengthen business competitiveness and above all, contribute to environmental sustainability. My colleagues at the Ministry of the Environment and the National Environment Agency look forward to working closely with the EC-ASEAN Cogen team to further promote this technology in Singapore.

Once again, I congratulate you on the successful staging of this event. I wish you all a fruitful seminar on cogeneration, and a pleasant stay in Singapore.

Thank you.