Australia’s Carnegie estimates the global wave-power market could be worth $100 billion by 2025, but there’s more than just economic motives with this one. While engineering services company Boustead Singapore has entered into a joint venture agreement for a $75 million solar power project in Japan.Indian state of Kerala’s Finance Minister K.M. Mani announced that a wind farm with a capacity to generate 200 MW would be set up with the help of National Thermal Power Corporation. Another wind farm with 22 MW capacity would come up at Kanjikkode. Read More

By Tim Boreham for The Australian (9 March 2013):

MICRO-CAP stocks are lowly valued for a reason, but we can’t help thinking this one is on the crest of a special wave.

At least you would think so, judging by Carnegie’s ability to attract Barack Obama’s most senior military adviser for a look-see.

Carnegie last week won a $1.27 million federal grant to add a desal component to a proposed power plant at the Garden Island naval base near Perth, using its fully owned CETO technology.

Unlike other wave-power methods, CETO is based on out-of-sight buoys which are tethered to the sea floor and move in harmony with the waves, creating pressurised water and power.

The project has already attracted $9.9m of Canberra grants, with the WA government chipping in $7.76m.

Carnegie estimates the global wave-power market could be worth $100 billion by 2025, but there’s more than just economic motives with this one.

Garden Island, Australia’s biggest naval base, must diversify its power source in case an enemy (say, Rottnest Islanders with killer quokkas) attack.

Where CETO comes into its own is as an alternative source for island nations, which rely on hugely expensive diesel power for both power and desal. At Reunion Island, Carnegie and French energy giant EDF have entered into a financial arrangement, by which EDF uses the CETO technology under licence to build a two megawatt power plant.

On Bermuda — which also suffers with the world’s most expensive power and water — Carnegie has a less advanced tie-up with Triton Renewable Energy.

Chief executive Mike Ottaviano attributes the share weakness partly to the cash-strapped AIM-listed Renewable Energy Holdings selling down its 20 per cent stake last year. Half of these shares were picked up by a consortium including infrastructure guru and ex-footy player Mike Fitzpatrick.

REH agreed to put the other half into escrow and since then REH has come under control of Utilico, which has power interests in Bermuda.

The alternative power sector is deeply out of favour but Carnegie has some 7000 “passionate” individual holders.

While cognisant of the alternative energy sector’s poor listed record, we’ll call Carnegie a spec buy. By way of comparison, in January France’s DCNS paid $150m for 60 per cent of Irish tidal play OpenHydro, which is in pre-revenue stage and is a similar size to Carnegie.

Source: www.theaustralian.com.au

By Teo Si Jia for Business Times (16 March 2013):

Boustead in Japan solar power

ENGINEERING services company Boustead Singapore has entered into a joint venture agreement that will lead to the undertaking of a $75 million solar power project in Japan.

The joint venture vehicle, Kinnon Green, owns the rights to a 20 megawatt solar photo voltaic power generation portfolio in Kyushu, Japan.

Through wholly owned Boustead Knowledge, the group will subscribe for 73,001 shares in Kinnon Green at $1 each for a total consideration of $73,001, while the remaining 73,000 shares will be held by Kinnarii Power Assets.

Boustead said that the $75 million total implementation cost of the project will be financed by a mixture of equity and long-term bank loans.

The Board of Directors of Boustead Singapore Limited (“Boustead” or the “Company”) is pleased to announce that the Company’s wholly owned subsidiary, Boustead Knowledge Pte Ltd (“Boustead Knowledge”) has on 15 March 2013 entered into a joint venture (the “Joint Venture”) with Kinnarii Power Assets Pte Ltd (“Kinnarii”), a Singapore-based regional-focused renewable project developer, to develop utility-scale solar photo voltaic projects in Japan. To this end, Boustead Knowledge has entered into a shareholders agreement dated 15 March 2013 (the “Shareholders Agreement”) with Kinnarii and Mr Choi Wai Keong, a shareholder of Kinnarii and covenantor to the obligations of Kinnarii under the Joint Venture.

2. The Joint Venture

Pursuant to the Shareholders Agreement, Boustead Knowledge will subscribe for 73,001 new shares of S$1 each in Kinnon Green Pte Ltd (“Kinnon Green”), amounting to 50% of the of the total issued share capital in Kinnon Green plus one share. The total subscription amount of S$73,001 will be financed by the conversion of S$73,001 out of a loan of S$147,001 already extended to Kinnon Green by the Company as part of a collaboration agreement with Kinnon Green. Kinnarii will hold the remaining 73,000 shares of S$1 each in Kinnon Green.

Kinnon Green owns the rights to a 20MW (10x2MW) solar photo voltaic power generation portfolio in Kyushu, Japan (the “Portfolio”). Half of the Portfolio (5x2MW or 10MW in total) has been given the final interconnection agreement from Kyushu Electric, the regional power off-taker and grid operator, with the other half expected by end March 2013. The development of the Portfolio will take place in stages – the total implementation cost is estimated at around S$75 million and will be financed by a mixture of equity and long term bank loans.

3. Rationale for the Joint Venture

The Directors are of the view that the Joint Venture presents an excellent opportunity for Boustead Knowledge to expand its expertise in renewal energy projects and will mark its first foray into utility-scale solar photo voltaic projects in Japan.

Source: www.boustead.sg

R. RAMABHADRAN PILLAI reports from India 18 March 2013

Budget proposes solar, wind projects to meet energy needs

The host of renewable energy projects announced in the State Budget suggest that Kerala has finally decided tap the resource to meet its energy demands.

Finance Minister K.M. Mani on Friday announced that a wind farm with a capacity to generate 200 MW would be set up with the help of National Thermal Power Corporation. Another wind farm with 22 MW capacity would come up at Kanjikkode.

The new proposals come at a time when neighbouring Tamil Nadu has virtually exhausted its wind energy potential.

According to experts, wind speeds in several parts of the State are comparable to that in Tamil Nadu.

Lack of favourable policies had limited the State’s options to tap the wind energy potential. Wind energy projects in the State were also hit by various other factors. The wind turbines set up at Attappadi had run into trouble due to the controversy over acquisition of adivasi land.

Kerala has an unused wind energy potential of at least 2,000 MW, according to a study conducted by a private agency in the wind energy sector. About 1,500 megawatt wind power can be generated at Walayar and nearby areas, the study said.

However, the State’s wind energy potential was grossly underestimated by an assessment conducted several years ago by Agency for Non-conventional Energy and Rural Technology (ANERT). The study placed the potential at a mere 600 MW. Ramakkalmedu in Idukki district was considered one of the potential sites and a few wind turbines were installed there.

One of the initiatives announced by the Finance Minister was the setting up of solar energy panels at reservoirs. The panels could be fixed on floating rafts to tap solar energy. R.V.G. Menon, an expert on solar energy, said the model has been functioning well in several countries. Mr. Menon said the proposal was a good option considering the lack of large tracts of land in Kerala. The problem could be overcome by establishing solar panel rafts in reservoirs in the State, he said.

“Idukki reservoir has an area of 60 sq. km. If at least 10 per cent of the area can be utilised for the project, then 600 MW can be generated,” he said. The project was proposed about five years ago, but no one seemed to realise the need then, he said.

However, M. George, an entrepreneur in the solar energy sector, criticised the proposal to set up solar panels on reservoirs and said the government could instead look at the prospect of setting up rooftop solar panels at government offices.

Source: www.eai.in