Energy

Bringing Lebanon out of the dark, naturally

At his goat farm in the remote Bekaa Valley town of Qaa near the Syrian border, Hasan Istaytiyyah is enjoying a rare luxury in Lebanon: 24-hour electricity. For the past seven months, the house on his farm has been running on a solar-powered system that has replaced unreliable state-run electricity, which was provided for only six hours per day. He has even discarded his noisy, expensive and polluting generator. Istaytiyyah says his farm’s electricity is “better and cheaper than anywhere in Lebanon. Now, at my remote farm, I can be connected to the world via satellite TV and the Internet, which is only possible through my photovoltaic electricity system.” He adds that despite his farm’s secluded location, the new system has brought him “closer to the civilized way of life.” Like many other Lebanese, Istaytiyyah lived with daily power outages, typically for 18 hours a day. Without a solid national energy plan on the horizon, he decided to take the initiative himself and install solar panels after seeing an online advertisement for them by Eco Friendly, an environmental consultancy firm that opened two years ago. Patrick Ardahalian founded the company in 2010, having returned to Lebanon from abroad. Although he spent the bulk of his life overseas, Ardahalian never gave up on his ambition to help solve Lebanon’s energy problems. Similarly, George Abboud, founder of Earth Technologies, makes his clients’ production systems more energy efficient. One of his latest projects was the Dora Flour Mill, where he cut the company’s annual energy costs by $227,000 by replacing their regular lights with LED (light-emitting diodes) bulbs and their refrigerators’ air conditioning with ACs that run on solar technology. “I think the potential in Lebanon is great, because there’s a great need,” Ardahalian says. He points out that this is no longer the case in other countries. “In Cyprus, almost every building has solar panels, so the market is saturated.” Indeed, while the potential for alternative energy in Lebanon remains largely untapped, demand for electrical power is growing. Ever since the 15-year Civil War ended in 1990, the country has faced daily power outages, which have gotten worse with time, as supply has fallen far behind what is required by the population. Demand for electricity currently exceeds 2,400 megawatts a day, while production struggles at less than 1,500 MW. Endemic power cuts have worsened in recent months, as maintenance takes its toll on electricity supply. The deteriorating situation has prompted large-scale protests throughout the country, particularly in rural areas where power cuts are most severe. Much of the blame has been directed at Water and Energy Minister Gibran Bassil – like his predecessors – for failing along with the Cabinet to implement the energy plan that would supposedly reduce power rationing. Today, the country’s energy problems appear intractable, with profound political mistrust between the government and the opposition exacerbating the matter. “What [politicians] don’t understand is that it’s happening with normal people, but they’re treating it as a political problem,” Samir Skaf, national secretary of the Green Party, tells The Daily Star. “Politicians always have hot water.” At his office in Boushrieh, northeast of Beirut, he pulls up a copy of the government’s latest national energy plan on his computer – at which point the power goes out. He shakes his head in frustration, and proceeds to outline the problems he has found with the plan. He believes that, as it currently stands, the government proposal would not efficiently meet Lebanon’s energy needs, particularly when it comes to green alternatives. It appears to allocate no more than 6.6 percent to renewable energy, far short of the goal set at the 2009 United Nations Climate Change Conference in Copenhagen, where Lebanon agreed to reach 12 percent of alternative energy by 2020. However, Pierre Khoury, manager at the Lebanese Center for Energy Conservation, which is affiliated with the Water and Energy Ministry, says that the plan does cover 12 percent alternative energy because of the possibility of making use of the country’s natural gas resources. He also believes that Lebanon, along with Tunisia, has become one of the most advanced countries in the region in terms of energy efficiency, pointing to low-power public lighting and solar-powered hot water heaters that have been installed in recent years. But Skaf still isn’t convinced of Lebanon’s energy efficiency, nor does he believe the government can deliver on its plan. But he maintains that Lebanon’s potential should enable it to allocate more than 12 percent to alternative energy by 2020 – and that the country had better get started. “By that time [2020], we’ll be well behind Europe,” he says. “Denmark will be at 62 percent [renewable energy] by then, and all of Europe will be at 80 percent by 2050.” The 39-page government proposal, written in Arabic and issued in 2010, devotes only a small section to renewable energy. In fact, the plan calls for more fuel to be used. Under the renewable energy paragraph, article B, the only mention of solar power refers to studying the possibility of creating solar farms. Skaf wonders, “What happens after that? What’s the impact on our health and the environment? What are they waiting for?” Ironically, Lebanon, which has one of the world’s worst carbon footprints per capita, has some of the best potential for renewable energy, most of which has yet to be tapped. The country enjoys 300 days of sunlight, ideal for solar power, while in the north strong wind offers the possibility of generating power through windmills. Yet prevailing laws and social norms mean that green energy in Lebanon appears to be a distant prospect. Abboud founded the company Earth Technologies two years ago after working as a manager in construction companies, and seeing what he describes as “green washing” – public relations spin intended to make buildings appear environmentally friendly, when in fact they are not. His business is doing well, thanks to a growing clientele that comes mainly from abroad, including Africa, where he says there is far more environmental awareness than in Lebanon. Still, he laments his own country’s lack of investment in green technology. “We’ve done a lot of presentations over the past year and a half. We get standing ovations. But at the end, people can’t sign and invest $70, 000,” he says, even if it means a high return on investment in the long term. “The main problem in Lebanon is cash flow,” Abboud says. “People want to pay in installments because they don’t have savings and investments. Companies do their calculations monthly. They work with a short-term mentality.” He also blames the government for such shortsightedness, noting that the customs fees for his energy-efficient LED bulbs are 15 percent, while those for regular bulbs are 5 percent. And last year he was unable to import electric cars for a taxi company he wanted to establish, because he was told that all cars imported into Lebanon are required to run on fuel. With these basic impediments and an overall lack of awareness among many people regarding the availability and benefits of renewable energy, environmentalists say they will likely continue to fight an uphill battle for the foreseeable future. Abboud says, “Unfortunately, people who can do the most care the least.” Source: The Daily Star

Closing Strait of Hormuz would halve Iraq’s oil exports

Iraq's planning minister has said the country could lose more than half of its oil-exporting capability if neighboring Iran shuts the vital Strait of Hormuz shipping lane, Reuters has reported. "What worries us is the closure of the Strait of Hormuz because it means Iraq will lose more than half of its oil exporting capabilities," Ali Al-Shukri told the news service, adding that no immediate alternatives would make up the shortfall. "Today we are trying to look for alternatives to export Iraqi oil," said Shukri. Source: AMEinfo

Schneider Electric awarded KNX lightning control contract for Presidency of Meteorology & Environment building

Schneider Electric, the global specialist in energy management, announced it has been awarded a contract to provide automated lighting controls system for the Presidency of Meteorology and Environment (PME) center in Jeddah by Setra e.Vision, the project's system integrator. The SAR120m project scheduled to be completed in August 2012 spans over 50,000 square meters with an impressive architectural design comprising 19 floors of offices and service & control areas. The new center will be responsible for compiling and correcting meteorological bulletins from the GCC countries, other Arabian territories, several African countries and adjacent seas and oceans. The center will subsequently disseminate the data to the World Meteorological Organization for global and regional exchange. Schneider Electric will install KNX products in the building that control and monitor lighting systems including presence sensors, switching and Dimming which will create a green building that saves the energy and make it more efficient. Hesham AboRejal, Vice-President - LifeSpace and Residential Business at Schneider Electric, said: "Leading technical and commercial companies have been competing for the prestigious PME center and we are delighted to be awarded the contract. We presented our offerings to Al Angari, the project contractor, AD Consultant, the project consultant, as well as SETRA e.Vision on the basis of the high quality service Schneider Electric engineers have achieved and will contribute towards this project." Upon the completion of the building, Jeddah will be one of the world's four regional telecommunication hubs (RTH) that has the receiving/transmission capability in addition to Beijing, New Delhi and Tokyo. Schneider Electric has enjoyed a presence in the Saudi market for more than 30 years. The company has two manufacturing plants and three regional branches in Riyadh, Jeddah and Al-Khobar, in addition to five local sales offices that ensure proximity to partners and customers. Source: AMEinfo

UAE: Abu Dhabi oil pipeline to be in full operation in few months

Abu Dhabi is putting the final touches on an oil pipeline that will allow the emirate to bypass the congested Strait of Hormuz, through which about 40% of all sea-borne crude is currently shipped, Global Arab Network reports according to OBG. Completion of the project is viewed as increasingly timely, not only in reducing congestion in the Straits but also as geopolitical tensions with Iran have escalated in recent months. The Abu Dhabi Crude Oil Pipeline (ADCOP), which will enable the emirate to answer any challenges to its oil-exporting capabilities, is a 370-km-long, 1.2-metre-wide pipeline running from Habshan in south-western Abu Dhabi to Fujairah’s export terminals, located on the Gulf of Oman. Costing some $3bn, the line will be able to transport 1.5m barrels per day (bpd) of crude oil. Although an exact date for the project’s completion has yet to be formally announced, the pipeline is expected to be fully operational in summer 2012. The Abu Dhabi-based International Petroleum Investment Company (IPIC), the overseas energy investment arm of the Abu Dhabi government, and China Petroleum Engineering & Construction Corporation, a subsidiary of the China National Petroleum Corporation, are leading the project, which was launched four years ago. Abu Dhabi Company for Onshore Oil Operations (ADCO), the majority state-owned enterprise, has been tasked with the pre-commissioning, commissioning, start-up, performance testing and handover of the project facilities. While most analysts say that it is unlikely that Iran would follow through with its threats to close the Strait of Hormuz, many suggest that this is not really Tehran’s plan. Instead, a low level campaign could be waged, which could push up freighting charges, insurance costs and the price of oil itself. The importance of developing an alternative export route gains even greater significance as Abu Dhabi pursues its plans to ramp up production to 3.5m bpd before the end of the decade, up from the present output levels of about 2.7m bpd. Abu Dhabi National Oil Company (ADNOC) has said that it expects onshore production to rise by 213,000 bpd in 2012, with further increases in output to come from offshore fields. IPIC also has plans to develop a large-scale refinery close to the end point of the pipeline at Fujairah, which would mean Abu Dhabi could not only continue to export crude should there be a disruption to tanker traffic in the Strait of Hormuz, but the emirate would also be able to maintain sales of value-added processed fuel products. If all goes according to schedule, the $3bn refinery will be operational by 2016. ADCOP may not be the last word in Abu Dhabi’s program to safeguard the flow of oil. A second pipeline to the Fujairah terminal is reportedly in the works, one that would carry product from Abu Dhabi’s offshore fields, which is heavier than the take from the emirate’s onshore reservoirs. This second line would also be able to carry oil from some of Abu Dhabi’s neighbors, earning ADNOC and the government additional revenue through transit fees. With ADCOP, Abu Dhabi will have another connection to global oil markets, one that will strengthen its position as a leading oil exporter and – by guaranteeing supplies – could help smooth out some of the fluctuations in oil prices. Source: Oxford Business Group

US nuclear group opens Abu Dhabi office

Enercon Services, a leading engineering, nuclear licensing, environmental, technical and management services firm based in US, has opened its new global office in Abu Dhabi. The announcement comes following the opening of Enercon's international office in Brussels, Belgium in line with its Europe expansion plans. This brings the total of the company's offices to 21. Enercon provides a broad range of professional services to private, public, and government sector clients throughout the US. With 19 US offices and over 1,200 professionals in a broad range of disciplines, the group has substantial capabilities that help clients address both today's and tomorrow's energy and environmental needs, said a senior official. 'Our new plant services division has opened offices in Europe and the Middle East to respond to the growing demand for superior services in engineering, licensing, operations and outage support,' remarked Enercon president John Richardson. 'The opening of these two offices focuses resources on developing business in new nuclear power markets in Europe, especially Central Europe, and the Middle East, where a number of countries are looking to develop new nuclear power programs, or expand their existing nuclear power programs in light of the Fukushima accident. Many countries recognize that nuclear power is an essential element in improving energy security and in reducing carbon emissions that can contribute to global warming,' he added. In 2011 Engineering News Record (ENR) had ranked Enercon in the top 200 of all international design firms and third in the US for nuclear plant design firms. Source: TradeArabia News Service

Kingdom petrochemical capacities expanding

By 2015, the Kingdom's ethylene and propylene capacities will rise to 16.52 million TPA and 6.55 million TPA respectively, with Saudi Kayan's commercial operation in 2011 set to contribute most to the increase, BMI said in its latest "Saudi Arabia Petrochemicals Report". Compared with 2010, total PE capacity will rise 20 percent to 8.86 million tap, PP will rise 11 percent and PS, PET and PVC capacities will remain unchanged. Ethylene capacity in 2015 is forecasted to be more than double that of 2008 levels, with Jubail and Yanbu the focus of petrochemicals developments. The projections for petrochemical capacity are based on planned projects, but it is possible that some may not come to fruition as a result of the restriction on ethane feedstock and a possible lackluster recovery in the Chinese market - at a time of rising Chinese capacities, the report added. Joint ventures are being established to build and operate units aligned with Saudi Arabia's National Industrial Clusters Development Program, which aims to expand and diversify its manufacturing sector and create opportunities in downstream industries such as construction, automotive, electronics, medical technologies and appliances. SABIC seeks to use its basic petrochemicals projects as raw material for processing. The decision by Dow Chemical and Saudi Aramco to go ahead with the integrated $20 billion Sadara Chemical Company JV complex will significantly boost downstream chemicals growth going forward. The complex will include a cracker with capacities of 1.5 million TPA ethylene and 450,000 TPA propylene with feed comprising 55 percent ethane and 45 percent naphtha and will produce more than 3 million TPA of high value-added chemical products and performance plastics, including amines, glycol ethers, propylene glycol, polyether polyols, isocyanates and solution process LLDPE, LDPE and elastomers. BMI believes it unlikely that the target completion date of 2015 will be reached. The complex is envisaged to sustain downstream industries, such a wire and cable, packaging, automotive parts and consumer products. Similar projects were announced in mid-2011, largely directed as capitalizing on the growth in the Asian automotive industries, particularly tires. Kemya has also announced plans for an elastomers complex that will be built at the Kemya site. The complex will have capacity to produce more than 400,000tpa combined of butyl rubber, styrene butadiene rubber (SBR), butadiene rubber, ethylene propylene diene monomer rubber, thermoplastic specialty polymers, and carbon black. Sahara Petrochemicals and Saudi Arabian Mining Company (Ma'aden) is going ahead with a $750 million project at Jubail with capacities of 250,000tpa caustic soda and 300,000tpa EDC. SABIC and Mitsubishi Rayon have announced a new JV company to build and operate plants with methyl methacrylate (MMA) and polymethyl methacrylate (PMMA) capacities of 250,000 TPA and 40,000 TPA respectively. The proposed Saudi Japanese Acrylonitrile Company (Shrouq), a JV between SABIC, Asahi Kasei and Mitsubishi Corporation, will build and operate plants with capacity for 200,000 TPA of acrylonitrile and 40,000 TPA of sodium cyanide in Jubail. Source: The Saudi Gazette