| 1. What is the business of BLCP Power Station? |
| BLCP Power Station is one of the private power producers under the Electricity Generating Authority of Thailand (EGAT) initiated Independent Power Producer (IPP) project and generates up to 2x717 megawatt of power using high quality bituminous coal as fuel. The power plant uses environmentally responsible technology, the impact of which on the environment is well controlled. The power plant produces electricity in an environmentally responsible and safe manner using well-established technologies and tried and proven operating practices. |
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| 2. When did construction of the BLCP Power Plant begin? |
| BLCP Power Station began to prepare the land for construction in July 2002 and construction of the power plant will begin in July 2003. Construction look up to 42 months and the plant began supplying electricity to EGAT in October 2006 from the first unit and in February 2007 from the second unit. |
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| 3. Where is the BLCP Power Plant located? |
| At the Map Ta Phut Industrial Estate, which is part of the Industrial Estate Authority of Thailand (IEAT), and at the second phase of the Map Ta Phut Industrial Seaport, Map Ta Phut Municipal, Rayong Province. |
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| 4. Who are the investors in the BLCP Power Plant? |
| The power plant is a joint venture 50:50 between Banpu Company Limited and Electricity Generating Public Company Limited. |
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| 5. Please provide details of the BLCP Power Plant’s development and operation plan. |
| - EGAT invited the private sector, as IPPs, to bid for the sale of power to EGAT on December 15, 1996. - EGAT announced BLCP as one of the winners of the second stage of bidding on December 20, 1996 - After the announcement, EGAT and BLCP commenced negotiations on the terms and conditions of the Power Purchase Agreement (“PPA”) and signed the PPA on November 19, 1997. - Following the economic crisis in Thailand electricity consumption decreased and EGAT requested a deferment of the planned date of production of electricity by BLCP, which was then extended by 4 years. This meant that the company would begin supplying power to EGAT on October 1, 2006 from the first unit and on February 1, 2007 from the second unit. - The company complied with EGAT’s request and negotiated a PPA Amendment to reflect the deferment. The PPA Amendment was signed on December 30, 1999. - The company negotiated a lease agreement with the Industrial Estate Authority of Thailand (“IEAT”) to construct the power plant on reclaimed land at the Map Ta Phut Industrial Estate in its phase two area. The rental contract was signed on June 30, 2000. - In 1996, after the company signed the first PPA, the company conducted an EIA for the projected power plant and the coal unloading facilities. Office of Environmental Policy and Planning (OEPP) approved the power plant and the coal unloading facilities EIA on January 11, 2001 and February 25, 2002, respectively. |
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| 6. What is the total area of the BLCP Power Plant and how much power can it produce? |
| The total area covers 602.25 rai. The plant’s maximum power generating capacity is approximately 1,400 megawatts. |
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7. How does BLCP dispose of gas, liquid and solid wastes from the power plant? |
| Air: A FGD (Flue Gas Desulfurization) system will treat oxide of sulfur. The power plant has been designed to reduce oxide of nitrogen to the extent possible. Water: No water is released from the plant without prior treatment. A water treatment plant will be constructed to treat all water collected in the appropriate manner. Ash: BLCP intends to sell ash on the open market. The cement industry is a potential consumer of such ash. |
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| 8. What kind of fuel is used to generate electricity at the power plant? |
| The BLCP Power Plant is designed to generate electricity using high quality bituminous coal imported from Australia and Indonesia. |
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| 9. Did BLCP move its project from other locations to Rayong due to construction problems? |
| No. The BLCP power plant project was originally proposed to be located in Rayong Province in 1996 and has not been moved from another province. |
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| 10. Is BLCP confident that it will not create environmental problems such as bad smell, polluted water, etc? |
| - The company is giving importance to environmental concerns by choosing environmentally responsible emissions control systems and implementing measures to reduce any environmental impact. - The company uses high quality bituminous coal as fuel, which has less than 0.70% sulfur and averages less than or equal to 0.45% per year (Sulfur in lignite coal used at the Mae Moh Lignite Power Plant is 3-5%) - The company selects the machines used in generating power and highly efficient equipment for environmental impact control, which are modern-technology devices equipped to eliminate emissions. The furnace is specifically designed to minimize emissions. A high efficiency electrostatic precipitator is utilized to minimize any particulate emissions, which are emitted through a 200-meter high stack. - A continuous monitoring system will record seawater and air emissions conditions. The operational monitoring of the facility will be also supplemented by periodic manual tests by the appropriate government agencies. |
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| 11. What is the difference between bituminous and lignite coal? |
| In terms of quality, bituminous coal is better than lignite coal due to its high heating value, which is almost double that of lignite. Additionally, bituminous coal has a lower sulfur content with BLCP agreeing to not use coal with a sulfur content in excess of 0.7%. An average sulfer content throughout the year should not be exceeding 0.45%. Lignite coal has a sulfur content of approximately 3-5%. |
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| 12. Where is the source of the bituminous coal? |
| It is imported from Australia and Indonesia. |
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| 13. Can BLCP provide a 100% guarantee of control of environmental impact? |
| It is BLCP’s policy to be a responsible corporate citizen, which includes being fully compliant with all laws and regulations. Additionally, BLCP has agreed to more stringent requirements than the Thai regulations require as a result of its environmental impact analysis. If BLCP does not meet the Thai laws and regulations then it would fully expect to be subject to the penalties and damages stipulated by the Thai laws and regulations. |
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| 14. Is it possible that in the future the BLCP Power Plant will lower its operating costs by shifting from bituminous coal to lignite coal or another substitute? |
| No, the plant is designed to use only bituminous coal. Lignite coal cannot be used as a substitute. |
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| 15. What are the logistics for coal transport and will it affect nearby neighborhoods? |
| Coal is transported by ship directly to the power plant. A semi-closed and closed conveyor belt system is used to convey coal from the Coal Unloading Facilities to the power plant itself. Water will be sprayed to prevent coal dust from spreading to the water or surrounding air at unloading hoppers. The water used in this process will be collected and treated for reuse. |
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| 16. How does the FGD system work? Doesn’t it discharge environmentally damaging heavy metals? |
| Seawater will be used as a scrubber agent. Oxide of sulfer will be transformed to bi-sulfer (HSO-4) which is normally available as a component of seawater. There will be no heavy metal from the FGD process. |
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| 17. Why must we build a power plant? |
| Power is necessary to facilitate continued economic growth and prosperity as outlined in Thailand’s development plans. |
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| 18. What is the size of water treatment facility? |
| Due to its EPC Turnkey Contract, the water treatment facility will be designed after the commencement of power plant’s construction. |
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| 19. Why must there be land reclamation? Will there be an environmental impact? |
| The Industrial Estate Authority of Thailand (IEAT) is responsible for the land reclamation program as part of its governmental mandate. BLCP is a tenant of the Map Ta Phut Industrial Estate, and will carry out the reclamation necessary to construct the power plant in 2002 and 2003. The reclamation process has been previously approved by the Thai government. |
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| 20. Why must sea sand be used in the construction of the seaport? |
| A limited amount of dredging will be undertaken alongside the plant site in order to allow large coal vessels to unload coal. The dredged material is approximately equal to the material necessary for the reclamation thus optimizing the efficiency of the dredging and reclamation works. |
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| 21. Why didn’t the government build its own power plant? |
| The use of private international companies to build, own and operate the power plant allows EGAT to reduce its investment requirements and allows the Thai electricity system to become more efficient as international companies bring different perspectives and skills which can add value to the operations of the Thai electricity network. |
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| 22. What measures will be used to prevent dust during the transfer of coal? |
| The coal will be unloaded by large cranes onto a conveyor to be transported to the coal stockpiles to await use to generate electricity. Water will be sprayed onto the coal at the various points in the process where coal dust could be produced. The stockpiles will be compacted and either sprayed with water or protected by a cover to prevent dust from arising from the stockpiles. It should be noted that the coal to be used by BLCP is actually a very hard substance, which is not conducive to producing a significant amount of dust. |
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| 23. What are the direct and indirect benefits from the power plant? |
| Benefit to the country - BLCP can reduce the government’s burden in large project investment to maintain the country’s power reserve. Benefit to the community - BLCP provides job opportunities for up to 1,400 people during the peak period of construction and 280 employees will be hired during operation. This does not include benefits that local people within the area will have when the power plant starts operation and benefits for the associated businesses, which are necessary to support the power plant’s operations such as the food industry and other industries. - BLCP generates income for the community in terms of taxes, especially household, land and business taxes totaling around 20 million baht annually. This figure does not include value-added tax, income and commercial taxes. - The company has a policy to contribute to a better quality of living for the local people in many ways including; - Promotion of occupational and income earning development - Educational and skill development for children/young people - Environmental development and health improvement of people in the community The company will consider activities that respond to the needs of, and are appropriate for, each community. |
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| 24. How is the fuel quality controlled? |
| The coal will be analyzed both on the loading of the ship and at the discharge at the power plant by a third party. |
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| 25. Will electricity prices come down after the completion of the power plant? |
| BLCP was selected because of its low price of electricity, which is among the world’s lowest cost of electricity, and below EGAT’s costs to produce electricity. The cost per unit of electricity generated from a natural gas-fueled power plant is higher than when coal is used as fuel. This is due to the price of natural gas, which is affected by the movement of oil prices in the global market. At present, Thailand uses natural gas for up to 70% of its existing power production while coal used as fuel for only 19% of power production. The cost of fuel affects the price of electricity due to the price fluctuation value (Fuel Tariff, FT) which is calculated based on the average fuel price. Therefore, with higher use of low-cost fuel, power can be produced with a lower FT value so bringing down the price of electricity. |
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| 26. What safety measures will be implemented regarding the storage of coal? |
| - Coal will be heavily compacted to ensure that no oxygen will cause unnecessary combustion. - Additionally, water spraying will be carried out corresponding to the speed and direction of the prevailing wind. Finally, the long-term stockpile will be covered to protect the stockpile from the elements. |
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| 27. Will the construction of the BLCP power plant have any effect on the sea currents or cause corrosion of the shore within the area? |
| No. |
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| 28. What is the cause of the protests against the construction of the Bor Nok – Hin Krud power plants in Prachuab Kirikhan? Why should there be a problem when the 2 power plants claim they have good environmental management? |
| - BLCP does not know the details of other power plants and therefore cannot comment. However, BLCP has a clear policy of ensuring transparency and is open to allowing members of the community participate in inspections during the construction and operational periods. - BLCP is different from the other facilities in that it will be constructed on reclaimed land which is effectively 4 kilometers offshore and is located in an area designated for industrial development by the government. |
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| 29. Why is BLCP building a coal fired power plant in Thailand when they have ceased construction of coal-fired power plants in the United States and Europe? |
| - For the U.S. and Europe, coal has been widely used for electricity generating. To balance their fuel usage not to be depending too much on one fuel which will result in a severe problem to the country in case of a shortage of the particular fuel, these countries have diversified to other alternative fuel, i.e. gas, nuclear and biomass. - For Asian region, new coal-fired power plants are being constructed in many countries, inclusive of Japan, Indonesia, China and Malaysia, the country with 10 times more reserve of gas than Thailand, due to the same reason. |
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| 30. Why are we building a dirty coal-fired power plant when Thailand has plenty of natural gas to be used in gas-fired power plants, which are environmentally better? |
| Thailand currently uses gas for its 70% of electricity generating. This ratio is too risky for the country. In the light of the gas shortage or an increase of oil price, there will be a severe damage to the country and the power price will be increased accordingly. |
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| 31. What measures are being taken by BLCP to reduce environmental impact? |
| Air: - BLCP will install the following high-quality measures: 1) Sulfur emissions are reduced by the use of a Flue Gas Desulfurization (FGD) system in addition to using low sulfur coal. 2) The coal boiler has been specially designed to reduce Nitrogen Oxide emissions 3) A high efficiency (approximately 99.96%), Electrostatic Precipitator to eliminate dust and particulate emissions from flue gases. Fresh water: - Water that is collected on site from either rain or used in the various process is treated to remove any impurities and either recycled for further use or discharge to the sea after satisfying Thai purity requirements. Seawater: - Seawater is used for the cooling system and seawater FGD. The systems have been designed to operate within Thai environmental requirements at a variety of background temperatures to control discharge water temperatures. The sea water will also be chemically processed ensure that the water meets Thai purity requirements. Coal ash: - BLCP will collect the ash following the combustion process for use, as possible, as a raw material for cement manufacturing or landfill uses. |
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| 32. Is it true that BLCP selected coal as fuel because Banpu Plc., a joint-venture of BLCP project, is a leading coal producer. Banpu will increase its coal sales by supplying coal to BLCP. |
| No, Banpu will not supply coal to BLCP as it does not have enough coal with the required consistently high quality. |
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| 33. If Thailand’s electricity demand is so low because of the economic crisis why do we need this power plant in Rayong. |
| Because it takes 4-5 years for construction of a power plant. According to responsible government agencies, Thailand electricity demand will certainly increase late of this decade (A.D.2550 or B.E.2007). BLCP power plant construction will not be completed until late of 2006, in line with the country’s demand situation. |
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| 34. What are the monitoring processes? |
| Fuel: - Every shipment of coal will be analyzed by a third party to ensure that the coal meets specifications. Air: - Dust density will be measured at 3 areas, north and south of the coal stock yards and at the Takuan community. - A Continuous Emission Monitoring System (CEMS) will be installed at the stack and manual monitoring will be carried out at the stack every 6 months. - 4 monitoring stations will be set up to automatically monitor air quality in the surrounding communities. Additional manual monitoring will be carried out around the plant every 6 months. Water: - Water quality after treatment will be monitored every 6 months at the point of treatment and in the sea. - There are automatic sensors at the water release site to monitor temperature and acidity. The sensors are online to a control center and will sound an alarm should the water temperature or acidity exceed the set limits. - BLCP will monitor seawater temperatures at 13 locations 500 meters from the water release site every 3 months. |
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| 35. What kind of fuel is used to generate electricity at the power plant? |
| The BLCP Power Plant is designed to generate electricity using high quality bituminous coal imported from Australia and Indonesia. |
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| 36. Will the construction of the BLCP power plant have any effect on the sea currents or cause corrosion of the shore within the area? |
| No. |
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